East Midlands manufacturers see tough year ahead

Tess Egginton
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East Midlands manufacturers see tough year ahead

Manufacturers in the East Midlands are looking at a tough twelve months ahead with the sector likely to contract in the face of a deteriorating economic outlook at home and abroad according to a survey published today by Make UK and business advisory firm BDO.

The forecast was made in the Make UK/BDO Q4 Manufacturing Outlook survey which shows manufacturing contracting by -3.2% in 2023. This comes on the back of a forecast -4.4% contraction this year, although Make UK stressed the number for this year is relative to a very strong 2021 which reflected the pandemic bounceback.

However, given Make UK has consistently been revising down its forecasts for manufacturing growth in 2022 throughout this year from 3% in March to 1.7% in July, 0.6% in September and now, a contraction of -4.4% (1), it highlights the extent to which conditions for the sector have weakened significantly, especially in the final quarter of the year.

In the last quarter, output in the East Midlands held up in line with the national picture at a balance of +12%, although total orders in the last quarter dropped substantially to a balance of -12%, which is likely to feed through into depressed output in the future. Despite this recruitment intentions remain strong in the East Midlands given labour shortages and the scramble to attract and retain talent.

As well as downgrading its forecasts for manufacturing Make UK is forecasting GDP growth of +4.4% this year but, a contraction next year of -0.9%.

In response, Make UK warned of the danger of policymakers sleepwalking into an acceptance of little or no growth as a normal economic scenario. It re-iterated its call for Government to develop a wide-ranging industrial strategy with a long-term vision at national and regional level.

Furthermore, while the Chancellor took some welcome measures in the Autumn Statement to help ease the short-term pressures on business, Make UK said more measures will be needed if economic prospects continue to weaken. These should include:

  • Alleviating labour shortages with temporary easements to the migration system and ensure manufacturers have the funds to train and retrain employees by expanding the tax exemption for work related training into a wider Training Investment Allowance.
  • Tackling the increased cost to business by extending business rates reliefs for retail hospitality and leisure to manufacturing
  • Spurring on much needed immediate investment by allowing first year allowances
  • Re-thinking recent decisions on the R&D tax relief for small businesses to ensure manufacturers are not deterred from investing in critical innovations

Charlotte Horobin, region director for Make UK in the Midlands, said: “There is simply no sugar-coating the outlook for next year and possibly beyond. Even for a sector as resilient as manufacturing these are remarkably challenging times which are testing even the best and most successful of companies to the limit.

“As a result, while the Chancellor has already brought in some welcome measures to help ease the cost pressure on companies in the short term, it may not be too long before we see him having to bring more firepower to ease cost pressures.

“However, the bigger issue is that the UK risks sleepwalking into an acceptance that little or no growth is the norm. Government needs to work with industry as a matter of urgency to deliver a long-term industrial strategy that has growth at national and regional levels at its heart.”

Jon Gilpin, head of Manufacturing at BDO in the Midlands, said: “The new government recently put forward welcome measures to assist the sector in the short term. However, the government needs to provide a plan on how they intend to support the sector in the long term. Businesses need to be able to plan their future with confidence that the government will support them.

“Without adequate government assistance, businesses will be inclined to hold onto their funds to keep the doors of their business open, rather than investing in technologies and capabilities which will make them competitive in the longer-term. For instance, manufacturers may delay investing in automation technology and green initiatives, thus impacting the future competitiveness of the sector.”

SME Flotec to upgrade entire fleet of trains for Northern

Tess Egginton
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SME Flotec to upgrade entire fleet of trains for Northern
As the second largest train operator in the UK, it is of upmost importance that Northern maintains its fleet of trains to the very highest of standards. Northern plays a vital role in the north of England by connecting tens of thousands of people to work, leisure, education and more every day. The Northern engineering team were aware that much could be done to improve the efficiency and reliability to its fleet of legacy diesel trains and approached potential suppliers to develop an appropriate engineering solution. Loughborough-based Flotec was successful in its proposal and through a rigorous tender process, has recently been awarded a multi-million-pound contract to modify the complete fleet of Northern 15x class trains. This substantial investment highlights the Northern commitment to offering a best-in-class service to the passengers who rely on its network. The award win is also a major commercial success story for SME Flotec. The modification focuses on the engine cooling system, primarily the fitment of the award winning, reverse pitch fan and electronic fan control, solely distributed in the UK by Flotec and developed to maintain the efficiency of the radiators by periodically reversing the air flow through the radiator to remove contaminants collected during its cooling cycle. This becomes a particular problem during the spring pollen season on many Northern routes. The fleet modification also consists of a complete hose replacement with the introduction of the Bluestripe EPDM coolant hose and PowerGrip clamp solution. This product has proven to eliminate premature coolant hose failures, which creates many traffic RTI’s during regular service. All hydrostatic hoses are to be replaced with the new Railtec market leading hose and MegaCrimp couplings, which will also eliminate Hydro leaks and premature failures during service. A 4-year trial with Northern and several successful fleet installations, with other operators, provided the confidence for the Northern reliability team to commit to this product and the benefits it will bring to the existing DMU fleet. The fleet upgrades will be completed before the end of 2023 and will support Northern in reducing downtime, increasing vehicle efficiency, and delivering environmental benefits. To find out more about Flotec’s latest rail innovations, call the team on +44 (0) 1509 230 100 or email rail@floteconline.com Alternatively, head to www.flotecindustrial.co.uk/rail

2023 Business Predictions: James Pinchbeck, partner, Streets Chartered Accountants

Tess Egginton
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2023 Business Predictions: James Pinchbeck, partner, Streets Chartered Accountants
It’s that time of year, when Business Link Magazine invites the region’s business leaders to offer up their predictions for the year ahead.  It has become something of a tradition, given that we’ve been doing this now for over 30 years. Here we speak to James Pinchbeck, partner at Streets Chartered Accountants. Looking to the new year ahead often comes with a mix of excitement and in trepidation as to what the next 12 months might have in store. Perhaps though in doing so it is useful to reflect on what one predicted for the last 12 months. Therein lies the rub, all too often and not least in a Vuca world (volatile, uncertain, complex and ambiguous) the predictions we have at the beginning of a period of time invariably don’t always turn out to be exactly as we thought. The one thing we have seen in recent years is there is little in the way of certainty. This aside, looking ahead to 2023, there is a real sense that the challenges around staffing and skills shortages will play an ever-important role on business performance and sadly customer experience and satisfaction. It is not unreasonable to think we will face further industrial action within the public sector, but also, we should be prepared for further workforce challenges within the private sector. This may be around not just pay, but also working arrangements along with mental health and wellbeing. In the belief that with adversity comes opportunity, we should more optimistically see greater heightened levels of innovation and enterprise. Certainly, as we all get to grips with the cost-of-living crisis we are likely to see the launch of new products and services that are born out of the problems and challenges we face. We should also expect to see much more in the news of start up and scale up businesses engaged in realising the potential of technology to improve productivity and people’s lives, whether this is using artificial intelligence, augmented and virtual reality, the internet of things, or the metaverse. As we continue to reflect on the pandemic and growing concerns about the impact of climate change, 2023 should see a greater appreciation of and focus on ESG (Environmental, Social and Governance) by not just corporate enterprises but also more and more businesses. Finally, 2023 is the Chinese zodiac year of the rabbit or to be precise the water rabbit. The sign of the Rabbit is a symbol of longevity, peace, and prosperity in Chinese culture. 2023 is predicted to be a year of hope. People born in a year of the Rabbit are called “Rabbits” and are believed to be vigilant, witty, quick-minded, and ingenious. Certainly such characteristics would be a real attribute for the year ahead.

East Midlands businesses ramp up video marketing in 2022

Tess Egginton
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East Midlands businesses ramp up video marketing in 2022

Glowfrog has a ThreeBestRated® award, recognising it as one of the very best video production services across Derby, Nottingham and the Midlands.

Major framework win for Aggregate Industries

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Major framework win for Aggregate Industries
Aggregate Industries has been selected as part of a multi-million framework to construct, repair and maintain Edinburgh’s roads. The construction materials supplier, which has its headquarters at Coalville in Leicestershire, was successful in tendering on the City of Edinburgh Council’s Roads and Transport Infrastructure Construction Framework 2022-26. The framework, which is valued at £101.76 million, is to provide major carriageway and footway maintenance and renewal to the city. Aggregate Industries was successful on two lots for schemes where the estimated value of works which will be delivered across both lots is £6.6m per annum or £26.4m. The services within this contract will include planing, road surfacing, minor civils, street lighting, pedestrian crossings, road markings and traffic management. Aggregate Industries is one of a number of contractors to be appointed to the framework. John Mackenzie, Scotland regional director for Aggregate Industries, said: “We’re really excited to be appointed to this framework covering Edinburgh’s roads and pavements. “It demonstrates Aggregate Industries is a key player in this market both in terms of quality and customer service. “We have a strong established capability in Scotland and a history of delivering on major projects across the country.”

Bolsover councillors vote against Combined County Authority proposals

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Bolsover councillors vote against Combined County Authority proposals
At a recent Bolsover District Council meeting, councillors overwhelmingly agreed to write to the local MP and the ‘Levelling Up’ Minister voicing their opposition to the proposed East Midlands Combined County Authority. The proposal would see an election take place for an Elected Mayor in May 2024 and they would represent more than two million people across Derbyshire and Nottinghamshire, with the new authority having strategic powers in areas such as transport and economic policy. Something which the Council has voted against four times now. Councillor Duncan McGregor raised the issue and asked for the Council Leader to express the Council’s views on the proposal, which is of huge local significance. Council Leader, Councillor Steve Fritchley said: “This is the fourth time we have debated this issue and every time we have voted against it. There is a lot of objection to the proposal, not only here in Bolsover District, but across Derbyshire as well, as it will have a real, significant effect on democracy in Great Britain. “I have been asked to write to our local MP and urge him to vote against the Bill that is going through Parliament – which is what I will now do as councillors have voted and agreed to it.” Councillor McGregor moved the proposal and Councillor Ray Heffer seconded it.

Nottingham secures £10m of Government prosperity funding

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Nottingham secures £10m of Government prosperity funding
Nottingham City Council has secured over £10m from the Government’s UK Shared Prosperity Fund which aims to support local residents, businesses, and communities. The £10,454,325 allocation announced for Nottingham by the Government will be used to fund activity that builds pride in place, supports high quality skills training, supports pay, employment and productivity growth and increases life chances in Nottingham. This funding is available until 2024/25 with an element being used this financial year, delivering local benefits straight away. The UK Shared Prosperity Fund (UK SPF) is the successor programme to the previous European Structural Investment Fund driving economic prosperity across regions. In Nottingham it will be used to deliver support across four investment priorities:
  • Communities and Place
  • Supporting Local Business
  • People & Skills
  • Multiply Adult Numeracy.
The City Council established and consulted with the Nottingham UK SPF Stakeholder Advisory Group bringing together a range of partners from across the public, private and third sectors, as well as undertaking wider community engagement, to define Nottingham’s Investment Plan priorities. The themes of Inclusion, Productivity and Carbon Neutrality will run through the heart of Nottingham’s UK SPF Investment Plan. Based on consultation feedback, local evidence, and strategic priorities, Nottingham’s UK SPF Investment Plan was submitted to Government last summer. The funding will be used in a combination of ways, including the council providing grants to public or private organisations, commissioning third party organisations, procuring service provision and direct delivery of services by the Council. Portfolio Holder for Skills, Growth & Economic Development, Cllr Rebecca Langton, said: “The funding we have secured from the Government’s prosperity fund is very welcome and will help us and local organisations deliver services and schemes which can make a real difference to local people. “While the funding available is significantly less than the previous European funding, this announcement during the current cost-of-living crisis is timely, as it can be used for a range of things from growing businesses and creating new jobs or tackling social deprivation.”

Burton Company Undertakes national environmental awareness survey as enquiries for its solar panels soar

Michael Fisher
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Burton Company Undertakes national environmental awareness survey as enquiries for its solar panels soar
A survey released today by Burton-based solar panel retailer and installer, Project Solar UK, shows the real impact of the COP 27 summit on Brits behaviour. Following the coming together of nations to progress climate change initiatives, Brits were asked for their opinions  and understanding of what happened at the recent get together in Sharm El-Sheikh While 62% of those surveyed correctly said that it was a climate conference, 4% thought COP 27 was a TikTok channel, 5% thought it was a car model, 4% thought it was a famous landmark, 5% said it was a TV model and most worryingly, 20% admitted to not knowing what it was. In the aftermath of the highly publicised environmental event, the survey revealed some encouraging statistics: 68% stated that their household now takes steps to reduce waste 56% stated that their  household now takes steps to reduce emissions 69% stated that their household now takes steps to reduce electricity usage Trying to reduce how much expensive electricity we power through each day is clearly high on the agenda for two thirds of Brits. Project Solar UK, the country’s leading installer of solar panels, which convert the natural resource of the sun into energy, has seen enquiries rise by over 180% in the past 6 months from those who are keen to find alternative ways to heat and light homes and run  domestic appliances.  The company, with a base in Lancaster Business Park in Burton on Trent, is the leading retailer and installer of solar panels, and is managing installations across the country. Simon Peat, CEO of Project Solar UK, says, “Our survey shows that COP27 has piqued the interest of many people who are looking at real alternatives to burning fossil fuels for their energy.  People are taking practical steps to reduce their energy usage, emissions and waste and COP 27 has had a massive part to play in keeping these issues at the forefront of peoples thinking. Installing solar power in the home is a  way we can each address climate issues in a practical sense and we are here to offer free information and advice to anyone considering making the change.”

Harborough district to benefit from Government funding

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Harborough district to benefit from Government funding
Harborough District is set to benefit from over two million pounds (£2,172,095) after the Government formally approved Harborough District Council’s investment plan for its allocation of funding.
The money from the UK Shared Prosperity Fund (UKSPF), which is part of the UK Government’s Levelling Up agenda, will be spent over the next two and a half years on activities to improve communities and places, support local business, and invest in people and skills. A large portion of the funding – one million pounds – will be put towards the delivery of the Lutterworth and Market Harborough town centre masterplans, which will include improvements to cycling and walking infrastructure, as well as minor improvements to the centres of the four larger villages: Broughton Astley, Kibworth, Fleckney and Great Glen. Nearly half a million pounds (£468,000) will be used to support the local business sector, including town centre retail businesses and tourism, as well as funding business advice, including grants for small businesses. The final section of funding – just over £140,000 – will help to support people to access employment and develop their skills through training courses. Cllr Phil King, leader of Harborough District Council, said: “This Government funding is tremendous news for the district’s market towns and surrounding areas. Not only will it help us to help deliver the town centre masterplans in Lutterworth and Market Harborough; it will also enable us to further support local businesses and the development of employment skills in the wider area with additional initiatives and activities.” Neil O’Brien, MP for Harborough, Oadby and Wigston, said: “I am delighted that UKSPF funding from Government has been approved which will make a real difference to communities in my constituency. “I am particularly looking forward to seeing the ambitious masterplan for Market Harborough rolled out over the next few years which will help to regenerate the town centre by planting new trees, creating welcoming entry routes, and improving facilities for pedestrians and cyclists. “It is also welcome news that Fleckney, Great Glen and Kibworth will see improvements to their village centres. The funding will also help to encourage local enterprise and boost employment skills. I’d like to thank Harborough District Council for putting together these exciting plans, which can now begin to be delivered.” The main aim of the UKSPF is to build pride in place and increase life chances across the UK.

North Notts BID welcomed to new office space in Worksop

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North Notts BID welcomed to new office space in Worksop
Bassetlaw District Council has welcomed North Notts BID to its new office space at Middletons Yard in Worksop. The North Notts BID team is the first of many businesses that will be based at Middletons Yard, a brand new managed office space that has sympathetically regenerated three historic buildings with a blend of old and new architecture. Following an initial five-year term based at West Retford Hall in Retford, the North Notts BID team has relocated to the offices 22 and 23 at Middletons Yard. And, following a successful YES vote to secure a second term at ballot in June, the BID has made the decision to move to a different area of the district. Sally Gillborn, Chief Executive of North Notts BID, said: “We have had a brilliant five years in our former offices in Retford but felt it was time to relocate to a different town within the district. “Having reviewed various options, the new Middletons Yard offices will work perfectly for us. As a business-managed venture, we have found the right sized office for our small team. It is town centre based, fully serviced and enables us to reduce our operating costs, allowing us to commit to more spending that delivers the initiatives that matter to businesses.” Cllr Jo White, cabinet member for regeneration at Bassetlaw District Council, said: “I’m delighted to welcome Sally and the rest of the North Notts BID team to Middletons Yard and hope they will be very happy in their new home. “The Council and the BID share the same objectives, to support business growth and success in our district that will improve the local economy, and to create exciting events and initiatives that bring more people into our town centres and surrounding areas. I believe this is the perfect new location for North Notts BID and I look forward to welcoming even more occupants to Middletons Yard in the near future.” Middletons Yard is operated and managed by Bassetlaw District Council and offers 30 modern office spaces for start-ups, small businesses and growing companies with wrap-around business support. It also provides virtual tenancies, in addition to conferencing facilities and meeting rooms that come equipped with digital conferencing for hybrid meetings, plus an onsite cafe. Sally added: “The move out of Retford will have no impact on the services that we deliver here or district-wide but will enable us the opportunity to support the economy in Worksop while still keeping us connected to businesses across the whole district. “We’ll be continuing to support our BID businesses across Bassetlaw through our projects and services while organising our flagship community events from this different location.”
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