Huge opportunity for East Midlands to develop new supply chains in low-carbon economy, event finds
The Midlands should seek to become a hotbed for emerging supply chains in the low-carbon economy, while end users must be front and centre of our new energy systems.
These were two of the key findings at the Midlands Energy Summit, held by East Midlands Chamber in partnership with the University of Nottingham earlier this week.
Reflecting on the outcomes of COP26 and wider trends in the energy industry, including continuing price increases, it featured keynote speeches and discussions involving companies such as Siemens Energy, Cavendish Nuclear and Consultus International Group.
Chris Hobson, director of policy and external affairs at East Midlands Chamber, said: “What is becoming increasingly apparent is the huge scale of the challenge we face globally, and how a shift in mindset is required now to address this because we need to travel further, faster.
“Rather than this being a daunting prospect though, there are equally significant opportunities at a localised level, particularly in supply chains. The East Midlands, with our energy-intensive manufacturing heritage and world-leading universities, is already at the cutting edge of many future technologies that will guide the energy transition. We now want SMEs to understand that they have a key role to play in the emerging supply chains being built in our region.
“Beyond supply chains, new industries will grow in the space between existing ones. We need to be ready to take advantage of this, while also recognising that taking a user-centric approach is key to bringing people along with us on this journey – viewing our energy consumers as part of the solution, rather than a barrier to change.”
The Midlands Energy Summit, held online on Tuesday (30 November), featured a keynote speech from University of Nottingham vice-chancellor Professor Shearer West. She explained how its Energy Institute is addressing three key societal challenges – energy generation and management, transport and mobility, and communities and the built environment – via a series of sustainable energy research projects.
She said: “Energy is absolutely vital for our survival but our existing energy systems present an existential threat.
“In COP26, we saw a lot about the interconnections between energy and climate change. The transition to net zero relies on a deep thinking for our energy system – not just the technologies we use but our expectations and behaviours.”
There were also presentations about the Midlands Engine’s Ten Point Plan for Green Growth in the Midlands Engine and its work in developing hydrogen technologies, as well as a talk by Cavendish Nuclear’s Michael Dunnett on the growing importance of small modular reactors in making nuclear energy supplies more flexible for industry.
Steve Atkins, head of global trades at Leicester-based energy consultancy Consultus International Group, explained about how a cold winter could cause another spike in gas prices due to relatively low resources, while more investment in zero-carbon energy infrastructure was key to unlocking subsidy-free renewables in the future.
Stephen Scrimshaw, vice-president of Siemens Energy UK & Ireland, focused on how Britain should adopt a “twin track approach” to developing blue and green hydrogen – and, just as importantly, the infrastructure behind it – as part of its net zero strategy.
Work to start on new health and wellbeing centre in Derbyshire village
Work on the much anticipated multi-million pound Creswell health and wellbeing centre is due to start in early 2022.
Working with partners, the project is being built by Elmton-with-Creswell Parish Council with assistance and funding from Bolsover District Council, Elmton-with-Creswell Parish Council, Derbyshire County Council, Viridor, Big Local and Bolsover Partnership.
Creswell Leisure Centre closed its doors in 2016 and Councillor Duncan McGregor set about looking at proposals for a brand new facility for the village. One that would not only provide people with the chance to participate in an active and healthy lifestyle, but one that could link with the importance of the Crags and provide an educational resource.
Five years down the line and contractors Robert Woodhead Limited are due to start work on the £2million+ development. Located on Colliery Road, adjacent to the Model Village, the new facility will provide the following:
- 27 station gym
- Climbing wall and caving experience
- One group exercise studio
- Soft play area
- Two badminton court sports hall
- Café
New fashion academy launches in Leicester
A new fashion academy has launched in Leicester to help train people in the skills they need to work in the textiles industry.
Leicester City Council has invested £300,000 in the project and teamed up with training provider Fashion-Enter Ltd to develop a new skills centre, which will be called The Fashion Technology Academy (Leicester).
£100,000 of the £300,000 funding has come from the local business rates pool, administered by the Leicester and Leicestershire Enterprise Partnership (LLEP).
The academy will offer apprenticeships and accredited training for people who work in, or want to work in, the textiles industry.
Current courses are free to people who are unemployed and apprenticeships at various levels are available to employers.
The academy is based in Stonebridge Street, at the heart of Leicester’s garment industry, sharing a state of the art building with renowned local clothing company Ethically Sourced Products Ltd, which has made the second floor of its premises available for the project.
Trainees have already started on some of the academy’s first courses, with an event held for partners, industry professionals, fashion retailers and guests on Tuesday 30 November marking the official launch of the project.
Deputy city mayor, Cllr Adam Clarke, said: “The opening of this academy is the result of years of hard work, and ideas that were first formulated at a ground-breaking textiles coalition event hosted by Leicester’s city mayor in 2017. This project has been developed to help tackle the problems that we know exist in the garment industry locally and are determined to address – despite having no enforcement powers ourselves.
“Leicester has the second largest concentration of textiles and fashion businesses in the UK, so this is a hugely important industry to our local economy, and it is one we are determined to support.
“Creating a highly-skilled and specialist workforce is an important and crucial step in creating workplaces where staff are valued, leading to higher standards of workplace compliance.”
Jenny Holloway, director of Fashion-Enter, said: “The opportunity for ethical ‘speed of response’ fashion from Leicester is enormous for retailers and etailers today. Fashion-Enter is delighted to be working collaboratively with partners to train a further generation of multi-skilled workers. Thank you to all involved; this is just the start!”
Kevin Harris is chair of the LLEP Board of Directors. He said: “I’m delighted that the Fashion Technology Academy (Leicester) officially launches today. Our textile sector has a long local history and has faced some tough times, so the LLEP is pleased to support this initiative with a £100,000 investment from the business rates pool that we administer. I look forward to seeing the academy developing the workforce and skills of our future textile specialists.”
The new academy will work closely with local textiles and fashion manufacturing businesses as well as with retailers, with representatives from companies including Asos attending the launch event.
Simon Platts, responsible sourcing director at ASOS, said: “We’ve worked with Fashion-Enter in London since 2010 and financed its Stitching Academy in 2015, helping to grow and retain vital textile manufacturing skills. Now the launch of Fashion Technology Academy Leicester will undoubtedly bring similar benefits to Leicester, helping to turn the city into the fashion centre of excellence that we know it has the potential to be.”
Other partners supporting the project include suppliers Triumph Needle and Alvanon, plus fashion etailer I Saw It First, which has invested £150,000 in training to be delivered by the new academy.
Greg Pateras, CEO of I Saw It First, said: “I Saw It First is committed to the British textiles industry, and our latest investment in the academy reinforces our desire to strengthen the sector and improve standards.”
In a further boost to the industry locally, a recent successful bid to the Government’s Community Renewal Fund means the city council will receive £500,000 to work together with partners Fashion-Enter and De Montfort University to offer co-ordinated support to textiles manufacturers and local textiles workers.
The city council’s adult skills and learning team is also working closely with the academy to offer English courses at the venue for speakers of other languages.
Pledges sought for Christmas Dinner Project – bringing a festive treat to families in need
To make someone’s Christmas Day extra special, Pepperells Solicitors are running the Christmas Dinner Project again in 2021 – and are looking for pledges.
Those who get involved in the Christmas Dinner Project will be helping some of the most needy families in our area enjoy a festive treat.
Morrisons have kept the meal pledge amount the same this year, so for £25 a family can be provided with the festive ingredients they need to make a traditional Christmas meal.
The Christmas Dinner Project works in partnership with churches and food banks to provide a meal for families that would otherwise go without. Many of the families it works with do not have presents under their tree and for them Christmas is just another day.
Last year a record 450 dinners were provided to local families in Lincolnshire, East Yorkshire and the North East.
If you would like to pledge, get in touch with Clare Williams at Pepperells Solicitors: Clare.Williams@pepperells.com
Sills & Betteridge lead sale of Hemswell-based International Security Group in multi million pound deal
In a deal which took many months of negotiation, led by Sills & Betteridge Corporate Partner Martin Walsh, Tag Security Holdings Ltd (TSH) has now been acquired by The Smartwater Group, supported by its primary investment partner, Freshstream. As part of the newly expanded group, TSH, which operates as Tag Guard in the UK, and BetaGuard in Europe, will continue to supply mobile security systems (including site intruder detection and access control products and services), and plans to provide an even broader range of technologies which deter crime and maximise the chances of a successful criminal prosecution. The multi million pound transaction involved the sale of TSH, an English holding company with subsidiaries in Holland, Belgium, Germany and Canada, requiring Martin Walsh to co-ordinate multiple advisors and jurisdictions. Commenting on the sale, Martin Berends, Managing Director of TSH, said: “Until completion of the sale of TSH, I was a majority shareholder, a Dutch national and resident, heading the international businesses of the group. I had little knowledge of the complex English legal process concerning selling shares in an English company. It was therefore absolutely vital for us to find and instruct a lawyer of Martin’s calibre. “Martin smoothly guided us to a successful completion following a very lengthy and intensive sales process during which Martin provided the legal and commercial expertise, reassurance and confidence that only comes with more than 30 years of International Merger and Acquisition legal and transactional experience. Martin came to us very highly recommended. He delivered on all counts.” Martin Walsh said: “I am delighted that Martin and the other shareholders were so pleased with the outcome of the deal. Now TSH is part of a much larger global group with an increased product range, their future looks to be very strong and I wish them every success.”
Wealth management firm secures chartered status for sixth consecutive year
Wealth management and financial advice firm, The RU Group, has once again achieved Chartered Status from the Chartered Insurance Institute (CII), the premier professional body for the insurance and financial planning profession.
This is the sixth consecutive year that the Nottingham headquartered firm, with offices in Derby and Sheffield, has been accredited with Chartered Status and recognised as an exemplar in the field of financial management, planning and advice.
Following an extensive review of The RU Group’s professional conduct and management of its business operations, the firm was awarded the coveted accreditation of Corporate Chartered status. It demonstrates that the high professional standards required by the CII are deeply embedded within the culture, as well as the practice, of The RU Group.
The news comes just months after the firm reached another milestone and celebrated award success. Announcing more than £600million of assets under management for its clients in September, the team was then crowned SME Business of the Year at the 2020/21 Nottingham Business Awards in October.
Ian Browne, head of advice at The RU Group, explains: “The CII requirements are getting more difficult for a firm of our size. Achieving Corporate Chartered status requires a larger percentage of the company’s financial planners to be Chartered themselves, which is an increasing challenge as we grow.
“However, we have successfully embedded a ‘culture of learning’ into the business to encourage ongoing professional development. As such, our clients work with a team of highly skilled, knowledgeable financial planners who are focused on achieving excellent results.”
Ian adds: “Being recognised by the CII, achieving a record level of assets under management and being named as the Best SME in the Nottingham Post Business Awards has given the team a real boost as we reach the end of a challenging year. We look forward to what we can achieve in the year ahead.”
Trading ahead of expectations at Belvoir
Trading is ahead of expectations at Belvoir, for the ten months to the end of October 2021, with both of the group’s divisions, property and financial services, achieving year-on-year growth.
The Lincolnshire-headquartered company noted that its property division, which contributed 77% of the group’s gross profit, achieved gross profit growth of 29%.
Income from lettings was 21% up on 2020 resulting from unprecedented demand for rental properties with rents increasing in all areas of the UK, as well as the acquisition of Nicholas Humphreys, a predominantly student lettings network.
Meanwhile, income from sales was up 65%, mainly a result of the strongest market for property transactions seen since 2007.
The financial services division, which contributed 18% of the group’s gross profit, continued its strong growth with gross profit up by 39%.
Belvoir’s network of mortgage advisers increased by 21% from 202 at the start of the year to 245 by the end of October. This represented a net increase of 43, which arose through organic recruitment and 21 from the acquisition of Nottingham Mortgage Services, the mortgage arm of The Nottingham Building Society.
The group remained focused on meeting the demand for house purchase mortgages for much of 2021, and now, given signs that interest rates might rise, are benefitting from a busy period for remortgages.
The group’s operating activities continue to be highly cash generative underpinned by Belvoir’s significant recurring lettings income stream. As of today, net debt is down to £2.7m (31 December 2020: £3.7m) despite having deployed £4.0m of cash in March to acquire the Nicholas Humphreys network and £0.6m in July to acquire Nottingham Mortgage Services.
Current substantial pipelines of house sales and written mortgages support Belvoir’s end of year forecasts. Consequently, the board expects that the performance for the full year, in terms of profit before tax, will be ahead of management’s expectations for 2021 and substantially ahead of 2020.
Dorian Gonsalves, CEO, said: “In 2021 we have seen our franchisees and mortgage advisers take advantage of an exceptionally strong sales market. The sector undoubtedly benefitted hugely from the Government’s decision to extend the stamp duty holiday until September 2021, following which we have seen a predictable slowing in the number of new instructions as the market normalises.
“We anticipate that given the ongoing pent-up demand from buyers, the market will return to more usual transaction levels in 2022. In the meantime, our current pipelines remain strong and support outperforming our end of year forecasts.
“The board is mindful that 2022 is likely to present further challenges for the wider economy, but we are confident in our business model of supporting entrepreneurial franchisees and mortgage advisers to achieve their business ambitions, and that our growth strategy of organic growth coupled with investment in profitable property franchise and mortgage networks will continue to prove successful and deliver long-term shareholder value.”
Leicester named among global leaders on climate action
Leicester has been named as a leader on climate action and transparency, achieving a place on a global ‘Cities A List’.
International climate research charity CDP has named Leicester as one of only 95 places in the world – including Paris, Helsinki, Stockholm and Reykjavik – to achieve its top ‘A’ grade for leadership in environmental transparency and action.
It is also one of just 11 in the UK – including Bristol, Greater Manchester, Newcastle and Nottingham – to receive the top rating.
To score an A, a city must disclose publicly its city-wide emissions, have set an emissions reduction target and a renewable energy target for the future; and have published a climate action plan. An A List city must also have a climate adaptation plan to demonstrate how it will tackle climate hazards and it must be making progress towards achieving its ambitious goals.
Over 1,000 cities disclosed their climate data through CDP in 2021. Fewer than one in ten received the top grade.
Deputy city mayor, Cllr Adam Clarke, who leads on environment and transportation, said: “We’re very proud to achieve an A grade and to be recognised by CDP for our ongoing work to reduce carbon emissions across our city and do our bit to tackle the climate emergency.
“As a city we have almost halved our carbon emissions since 1990 – and as council we’ve cut our own carbon footprint by two-thirds in just over ten years. Last year we published the first Leicester Climate Emergency Strategy and will continue to deliver important projects and develop our ambitious plans to help us become a carbon neutral and climate-adapted city by 2030
“Being named as one of just 95 cities globally that are leading on climate action and transparency is a huge endorsement that we’re on the right track, but we’re under no illusion that we still face an enormous task.”
Kyra Appleby, CDP Global Director of Cities, States and Regions, said: “We are thrilled to champion the 95 cities from around the globe on CDP’s 2021 Cities A List. A new generation of climate conscious cities is showing what is possible when action replaces words – implementing innovative solutions to cut emissions and adapt to climate change, and demonstrating determined leadership on the defining issue of our time.
“We hope the example of A List cities’ efforts and actions will encourage far greater numbers of cities to ramp up their climate ambition, and work together with government and business, to safeguard our planet for generations to come.”
Leicester City Council declared a climate emergency for the city in 2019 and launched the first Leicester Climate Emergency Strategy last year.
Since then, the city council has led on a range of initiatives and secured external funding of over £100million to invest in low carbon schemes across the city.
These include:
- Investment of £13.5million in construction of the UK’s first carbon neutral bus station building as part of the St Margaret’s Gateway regeneration project.
- A successful bid for £19million of Government funding towards a £47million investment in increasing the city’s fleet of electric buses to over 100, backed by local bus operators Arriva and FirstBus.
- Securing over £24million of Government funding through the Salix Public Sector Decarbonisation Scheme for a programme of low carbon, energy efficient improvements to more than 90 council buildings, including schools, leisure centres, libraries and community centres.
- Progress on an ambitious £80million citywide programme of investment in sustainable transport backed by £40million from the Department for Transport’s Transforming Cities Fund (TCF).
- Developing plans to build 38 new A-rated low carbon council houses in the Saffron Lane area and launching a £3.1m programme to fit external wall insulation and other energy efficient measures to about 250 homes – including 80 council houses – by Spring 2022. The council has also recently submitted a bid for over £4million from the Social Housing Decarbonisation Fund to further extend this work across the city.
Manufacturing input prices rise at 30-year survey record rate as supply chain pressures remain intense
UK manufacturers continued to face a challenging operating environment in November, as severely stretched supply chains disrupted production schedules and drove up input prices to the greatest extent in a survey’s 30-year history.
The seasonally adjusted IHS Markit/CIPS Purchasing Managers’ Index® (PMI®) rose to a three-month high of 58.1 in November, up from 57.8 in October. All five of the PMI components had a positive influence, as production, new orders, employment and stocks of purchases rose and supplier lead times lengthened.
Output increased for the eighteenth month running in November, with the rate of expansion accelerating slightly from October’s eight-month low. Companies reported that improved new work intakes – especially from the domestic market – and efforts to build safety stocks supported increased output.
There remained widespread mention of input and labour shortages stymieing efforts to raise production, however. This led to existing stocks being depleted to satisfy customer orders.
The strain on supply chains also led to further substantial lengthening of average vendor lead times. Resulting shortages of components and commodities, combined with input demand outstripping supply, led to a survey record increase in average purchase prices. Around three-quarters of manufacturers reported a rise, compared to less than 1% seeing a fall. Cost and market pressures also affected selling prices, which rose at a rate close to October’s series-record.
November saw inflows of new business increase for the tenth straight month, underpinned by stronger UK market conditions, returning customers and rising client confidence. The trend in new export orders worsened, however, with intakes dropping for the third month in a row. There were reports of weaker demand from China, disruption to trade with the EU (in part due to ongoing Brexit complications) and the cancellation of some orders due to extended lead times.
Capacity also remained stretched at UK manufacturers during November, with backlogs of work rising to a near record extent. This supported further job creation in the sector, with employment rising for the eleventh month running and at the quickest pace since August.
Purchasing activity rose for the tenth month running in November. Increased input buying reflected rising production needs, safety stock building and efforts (including overpurchasing) to minimise supply chain delays. Input stock holdings expanded solidly as a result.
UK manufacturers maintained a positive outlook during November, with business optimism rising to a three-month high. Over 63% of companies expected output to rise over the coming 12 months, with only 6% forecasting a decline. Positive sentiment was linked to COVID recovery, economic growth, new product launches, planned marketing campaigns, business expansions, diversification, innovation and reduced supply chain stress.
Commenting on the latest survey results, Rob Dobson, Director at IHS Markit, said: “Although November saw rates of expansion in output and new orders gain some traction, growth remains lacklustre compared to the first half of the year. Manufacturers are facing a challenging backdrop, with rising supply chain disruptions, staff shortages and inflationary pressures stifling growth while ongoing difficulties caused by Brexit and logistical headaches restrict opportunities to expand into overseas markets. New export sales fell for the third straight month.
“Firms costs meanwhile continue to surge relentlessly higher, rising at the steepest pace in the three decades of survey history. Stretched supply chains, component shortages and a vast mismatch between demand and supply are all exerting massive upwards pressure on input costs. This is also filtering through to prices charged at the factory gate, which rose at a rate close to October’s record high.
“For those concerned about the strength of the jobs market as support schemes are withdrawn, positive news is provided by a further solid rise in manufacturing headcounts.
“The current mix of supply-side constraints, cost increases, skill shortages and rising demand for labour will add to the expectations of an imminent rate increase by the central
bank, but the survey highlights how the subdued rate of manufacturing growth and export decline leaves industry in a vulnerable position to any new headwinds, not least the Omicron variant.”
Duncan Brock, Group Director at the Chartered Institute of Procurement & Supply, said: “Sluggish global supply chains remained uppermost in the minds of manufacturers this month. Disruption led to a new three-decade high in terms of mounting prices and supplier
delivery times increased for the 29th consecutive month holding back further output.
“New orders flows exacerbated the problem in manufacturing capacity with the fastest intake for threemonths, and it was the domestic market that made up the majority of the new work. Export orders dropped back again as long lead times, port and shipping difficulties caused some clients to lose patience and opt to source elsewhere.
“This didn’t detract from the optimism in the sector as 63% of manufacturers that conditions would continue to improve – if only in fits and starts. With more success in finding skilled labour they are preparing for supply chain issues to even out and for price rises to subside. 74% of supply chain managers paid more for their goods in November, as prices charged also accelerated at a rapid pace raising fears that the UK economy could over inflate if supply chain disruption doesn’t subside in the first quarter of 2022.”
Programme of financial help for Leicester businesses approved
Additional funding has been approved for the latest series of measures to help Leicester’s economic recovery post Covid-19.
£370,000 has been set aside to deliver a programme of long-term support and development of the city’s creative and cultural economy.
The funding will focus on four key areas, designed to build on existing strengths and set out a sustainable framework for future work.
A total of £30,000 is earmarked for projects working with partners, including both universities, to support research and new thinking into the major economic, social and environmental challenges facing the city, focusing on areas such as support for more ‘green jobs’ in the local economy.
£125,000 will be invested in support for the city’s cultural and creative economy, looking at the viability of major cultural development projects, and devising a longer-term vision for expanding the city’s cultural and creative industries sector. This funding will also support the creation of a new archive celebrating the contribution to the East Midlands of communities from Africa and the Caribbean.
£65,000 will be put into work to attract inward investment into the city, by developing a long-term city growth plan to highlight opportunities for potential investors and developers and support other initiatives to attract investment and drive business recovery.
A programme of “Animating the City” activities, building on the success of the Summer in the City programme, will receive £150,000, to draw up a diverse range of activities to encourage people into the city in 2022.
The work marks the latest stage of work by the city council as part of its Economic Recovery Plan, which was drawn up a year ago to set out a framework for ensuring the city bounced back from the disruption of 2020 and the first part of 2021.
The latest funding will be drawn from money set aside to finance Covid-19 recovery measures.
City Mayor Peter Soulsby said: “We drew up the Economic Recovery Plan back in November 2020 as a roadmap to ensure the city’s economy was able to come back in a strong position after the upheaval caused to the lockdowns.
“This additional funding will help accelerate that recovery as we move forward. The measures set out here are all designed to enable short and long-term growth in the economy, attracting investment, generating footfall and promoting the city, which are all vital steps to ensure we emerge from Covid-19 in as strong a position as possible.”
