Latest Regional Growth Tracker survey data from NatWest signalled a renewed decline in business activity at the start of 2025 amid subdued demand conditions. The headline NatWest East Midlands Business Activity Index registered at 49.8 in January, down from 50.7 in December, to signal a renewed fall in output at firms in the region. The decrease in activity was the first seen since July 2024, albeit only fractional overall. Panellists noted that subdued demand conditions drove the decline, as new orders fell again. Nonetheless, East Midlands firms remained confident of a rise in output over the next year. Average cost burdens faced by firms increased at a sharper pace in the opening month of 2025. Higher input prices were linked to greater wage bills and increased energy tariffs. In a bid to protect margins, East Midlands firms raised their selling prices during January. The pace of charge inflation picked up to the fastest since December 2023 and was sharper than the series average. Panellists sought to pass through greater costs to customers. Lisa Phillips, Regional Managing Director, Midlands and East, Commercial Mid Markets, said: “Whilst the opening month of 2025 saw a challenging demand environment for East Midlands firms, the region started the year in a more stable place than other parts of the country, however. “Businesses remained upbeat in their outlook for the coming year. “Encouragingly, firms were able to pass through some of the increase in costs to their customers, via higher selling prices. Inflationary pressures were strong, but nonetheless, input price and output charge hikes in the region were less marked than at the UK level. “The Bank of England’s interest rate cut last week means that policy is now less restrictive, with further loosening expected in the year ahead.” Performance in relation to UK The fall in output at firms in the East Midlands was only fractional, but contrasted with a marginal increase in activity seen at the UK level. Panellists noted that subdued demand conditions drove the decline, as new orders fell again, and at the fastest pace since June 2024. Lower new orders were often attributed to weak customer confidence amid challenging economic conditions, and the resulting efforts by clients to reduce costs. The fall in new orders was stronger than the UK average, meanwhile. Nevertheless, businesses were positive in their expectations regarding the outlook for output over the coming year in January. Optimism among companies reportedly stemmed from new product development, investment in new facilities and hopes of stronger demand conditions. That said, the degree of confidence slipped from that seen in December. Of the 12 monitored UK areas, only the West Midlands and London were more upbeat regarding their prospects. Meanwhile, anecdotal evidence suggested that lower employment was due to reduced new order inflows and cut-backs to temporary and part-time workers. The rate of contraction was strong and the second-fastest since September 2023. The pace of decline was broadly in line with the UK average, however. At the same time, companies in the East Midlands depleted their backlogs of work at the weakest rate in three months at the start of the year. Panellists stated that subdued demand conditions enabled them to work through incomplete business. Although sharper than the long-run series average, the pace of decline was slower than the UK average. Cost burdens rose at a quicker pace in January. The rate of input cost inflation was historically elevated and the fastest since April 2024, albeit just below the UK average. Subsequently, firms raised their output charges in January, although the rate of increase in selling prices was slightly less marked than the UK average.

The Construction Skills Hub has launched a new degree level apprenticeship programme to help people access the skills they need for a great career in Chesterfield. At the Hub students will be able to undertake an apprenticeship and earn a degree in Construction Management, Quantity Surveying or Civil Engineering from the University of Derby. The Construction Skills Hub, funded through the Staveley Town Deal,  is run in partnership between Chesterfield Borough Council, Chesterfield College and the University of Derby. Currently more than 40 students are studying on the site earning trade-based qualifications in things like groundworks, brickwork, joinery and more through Chesterfield College. Councillor Tricia Gilby, Leader of Chesterfield Borough Council and Vice Chair of the Staveley Town Deal Board, said: “It is fantastic that this qualification can now be delivered through the Construction Skills Hub – for our economy to grow we need to build, and I know this facility will help create the next generation of skilled construction workers. “Apprenticeships offer a great opportunity for anyone to develop their skills whilst also earning, and it was important that through the Construction Skills Hub we can support apprenticeships that offer higher level skills. “I look forward to welcoming the new students to the site when they begin their studies in September.” The launch of the new degree apprenticeship programme coincides with National Apprenticeship Week – a chance to celebrate apprenticeships and recognise the important role they play in helping to develop skills for life. Professor Chris Bussell, Pro-Vice Chancellor and Dean of the College of Science and Engineering at the University of Derby, said: “The University of Derby is delighted to be in partnership working with Chesterfield College and Chesterfield Borough Council, to deliver real-world applied learning through apprenticeships across the construction sector. The Construction Skills Hub provides fantastic opportunities for learners to gain valuable qualifications in construction management, quantity surveying and higher-level construction skills. “The University of Derby has vast experience in delivering apprenticeships with the recent OFSTED provision highlighting many of the good aspects of our provision. Apprenticeships provide an excellent opportunity for people to earn whilst they learn and to achieve qualifications through to degree level that will provide them a strong basis for a successful career in their chosen field. “Working closely with industry, as we are through the Construction Skills Hub, is a strategic priority for the University and we are delighted to be working across Chesterfield to provide multiple opportunities to learners.”

The latest KPMG and REC UK Report on Jobs survey, compiled by S&P Global, saw the number of permanent staff placements fall for the eighth consecutive month across the Midlands at the start of 2025. The decrease was marked and softened only slightly from that seen in December. Temp billings meanwhile, rose only fractionally as the rate of increase eased to the softest in the current ten-month sequence. Demand for staff was contracted, as vacancies for both permanent and temporary roles reduced during January, with the latter seeing the steepest fall since May 2020. On the pay front, permanent salary inflation gained momentum for the second month in a row and was at a four-month high. Similarly, temp pay rates rose at the quickest pace since last October. The KPMG and REC, UK Report on Jobs: Midlands is compiled by S&P Global from responses to questionnaires sent to around 100 recruitment and employment consultancies in the Midlands. Eighth consecutive decrease in permanent staff appointments The number of staff placed into permanent roles fell across the Midlands in January, extending the current sequence to eight months. Recruiters linked the sustained reduction to a lack of demand from clients as well as reports of recruitment freezes in response to upcoming changes in employment law. All four monitored English regions saw permanent placements fall in January, with the Midlands seeing the second-softest decline, after London. January data saw the number of billings received for temporary staff employment broadly stall across the Midlands. The seasonally adjusted Temporary Billings Index was only just above the neutral 50.0 threshold, as recruiters mentioned a lack of jobs coming through agencies. Although fractional, the Midlands was the only region to post a rise in temporary billings. Latest data pointed to an eighth consecutive monthly decrease in demand for permanent staff in the Midlands. The pace of reduction eased slightly but remained robust overall. Of the four monitored regions, only London saw a softer fall in vacancies than the Midlands. Temp vacancies fell for the fifth month in a row in January. The decrease was sharp and the most severe since May 2020. Nevertheless, the downturn was the softest of the four monitored English regions. Permanent staff availability rises at softer yet still marked rate Adjusted for seasonal factors, the Permanent Staff Availability Index signalled a twenty-second consecutive monthly increase in permanent candidate numbers in January. There were reports that the uplift in staff supply was linked to a rise in redundancies. The rate of increase was marked but the least prominent in three months. The rise in the Midlands was the strongest of the four monitored regions. Temp staff availability across the Midlands picked up again at the start of 2025, extending the current sequence to 21 months. Recruiters mentioned a lack of temporary contracts being available which pushed candidate numbers higher. The rate of growth in temp staff supply slowed from December and was the softest since last August. Starting salary inflation gains momentum in January Recruiters across the Midlands continued to record an increase in starting salaries for permanent workers in January, thereby stretching the current sequence of uplifts which began in March 2021. Some panellists mentioned that the rise was due to higher salary offers to attract suitably skilled staff. The rate of starting salary inflation strengthened from the previous survey period to reach the highest since last September. The Midlands recorded the strongest salary growth of the four monitored English regions. Average hourly pay for short-term staff rose for the second time in as many months at the start of the year. Where temp wages increased, anecdotal evidence suggested the rise was due to a shortage of skilled staff. The rate of increase was solid, and the steepest for three months. Kate Holt, People Consulting Partner at KPMG in the Midlands, said: “Businesses in the Midlands are maintaining a highly cautious approach when it comes to making permanent hires, and the eight-month trend of declining appointments is likely to be extended until the new tax year at least. “Growth of temporary billings in the region have also stalled, in a clear sign that the impending employers National Insurance rate rise alongside ongoing economic pressures are weighing heavy on employers’ confidence. “Wage increases also continue to dominate the local market, with starting salaries for both permanent and temporary staff in the Midlands now escalating above the national average. As employers are forced to offer higher starting salaries to attract and retain talent, this will only serve to exacerbate wage inflation further. All this points to the Midlands job market remaining challenging throughout 2025.” Neil Carberry, REC Chief Executive, said: “Businesses entered the year uncertain on the growth path, and that has driven a ‘wait and see’ approach to hiring. Around the country, REC members report that clients have plans and are hopeful for the year ahead – but firms are slowing investment until they see more momentum in the economy. “This explains why temporary staff employment broadly stalled across the Midlands, although the Midlands and London had softer declines in permanent hiring than elsewhere in England, however. “Last week’s move on interest rates was timely as a way of boosting confidence. The more central role of growth in Government thinking since the Chancellor’s speech last month will also help. But it takes time, and real action, to build business confidence. “An autumn of fiscal gloom, difficulty navigating significant upcoming tax rises and little progress on the practicalities of a costly new approach to employment rights are all acting as brakes on progress. As well as the monetary stimulus to growth, it’s time for greater clarity on how the Government will use its industrial strategy to drive the growth of the whole economy.”

Light Science Technologies Holdings (LSTH) has signed a new distribution deal that could expand the Derbyshire-headquartered firm’s reach in the UK and Europe. The agreement with Agrolux, a global horticulture lighting supplier, gives LSTH exclusive rights to sell its partner’s LED lighting system in the UK and Ireland under the ‘Agrolux presented by Light Science’ brand. There’s also potential to take the partnership further into Europe over time. For growers, this means more options when it comes to energy-efficient lighting. LSTH will offer Agrolux’s LED Wega product line alongside its own nurturGROW sustainable lighting range, combining these with its sensor and installation services. The deal strengthens Light Science’s position in the controlled environment agriculture market, where it already has a growing pipeline of potential projects. If all goes well, the partnership could work both ways, with Agrolux eventually selling Light Science products through its global network. The initial pipeline of quoted projects in the UK and Europe stands at over £10 million, with Light Science aiming to convert these opportunities by leveraging Agrolux’s 20 years of expertise in agronomy. Agrolux is part of Gavita International, which is owned by Scotts Miracle-Gro, a major player in the lawn and garden industry with a market cap of $3.9 billion. “We are delighted to have established this distribution agreement with such a prestigious partner that is part of the Scotts Miracle-Gro group,” said LSTH Chief Executive Simon Deacon. “The opportunity to work with Argolux and provide an expanded product range to existing and new clients provides an exciting opportunity for us to target a wider end audience. “This partnership presents significant potential future benefits for us to expand our global presence and reach as we work on complementary opportunities.”