East Midlands output growth quickens to fastest for three months
Latest Regional Growth Tracker survey data from NatWest signalled a sharper upturn in business activity at East Midlands firms as 2024 came to a close.
The headline NatWest East Midlands Business Activity Index picked up to 50.7 in December, from 50.1 in November. The latest data indicated a marginal expansion in output across the region’s private sector, but one that was the steepest for three months.
That said, the rise in activity belied a faster decline in new business in December. The quicker fall in new orders led firms to cut their staffing levels sharply as backlogs of work were depleted to the greatest extent in 15 months. Cuts to part-time work and the non-replacement of voluntary leavers in a bid to lower costs were key drivers of the fall in employment, according to panellists.
Despite subdued demand conditions, firms were able to hike their selling prices at a faster pace in December in response to sharper input cost inflation. Anecdotal evidence stated that companies sought to pass through higher costs to customers. At the same time, the degree of confidence in the outlook improved to the strongest since last September.
Lisa Phillips, Regional Managing Director, Midlands and East, Commercial Mid Markets, said: “The East Midlands private sector ended 2024 on a mixed footing as, despite a sharper rise in output, new business contracted to a greater extent. Cost cutting remained a key priority as customers and businesses alike reduced their spending. As such, employment declined at the fastest pace since August 2020 amid greater evidence of spare capacity.
“On a more positive note, although input prices increased at a quicker pace, firms were able to pass-through higher costs to customers via the fastest rise in output charges since March 2024. Confidence to hike selling prices reflected greater optimism in the outlook for output, with expectations the strongest since last September.”
Performance in relation to UK
The East Midlands was one of only three monitored regions and areas of the UK to register a rise in output during December, alongside London and the North East. Moreover, the pace of activity growth seen in the region was slightly faster than the UK average.
East Midlands firms recorded a third successive monthly decline in new orders in the final month of 2024. Moreover, the pace of contraction quickened to the fastest since last June and was moderate overall. The rate of decrease was sharper than the UK average, however.
Nevertheless, companies were more upbeat in their expectations regarding output levels in the coming year in December. The degree of confidence in a rise in activity over the next 12 months was the strongest in three months and broadly in line with the long-run series average. Firms in the East Midlands were the most optimistic of the 12 UK regions and areas monitored by the survey.
December data signalled a loss of jobs across the East Midlands private sector, as has been the case on a monthly basis since July 2023. The pace of decline in employment quickened substantially, and was the steepest since August 2020. Moreover, the rate of job shedding was sharper than the UK average, with only Wales, the South East and West Midlands registering greater decreases in staffing levels.
Meanwhile, spare capacity reportedly burgeoned as backlogs of work contracted at the quickest pace since September 2023. Reduced new order inflows enabled firms to process outstanding business, according to anecdotal evidence.
East Midlands businesses registered a faster rise in input prices during the final month of 2024, with cost burdens increasing at the sharpest pace since last July. The rate of cost inflation was slightly softer than the UK average, however.
Despite weak demand conditions, firms were able to raise their selling prices at a steeper pace in December. The rate of inflation was the quickest since last March and was slightly faster than the UK average.
Daltons Wadkin appoints new specialist to drive Fiber Laser growth
Daltons Wadkin, a Nottingham-based multi-material machine solution supplier, has expanded its team by hiring a specialist to lead the company’s fiber laser and sheet metal offering.
Adrian Wright has joined the family-run business as a Fiber Laser Sales Manager, bringing over three decades of experience in the fiber laser and sheet metal market, working for some of the most prestigious names in the industry.
He will now lead on managing Daltons Wadkin’s exclusive partnership with CNC and fiber laser producers, Kimla, to grow the fiber laser installations across the UK and Ireland.
In 2022, Daltons Wadkin announced that it had become the sole distributor for Kimla’s range of CNC routers and fiber laser cutters, following a 15-year partnership.
Managing Director Alex Dalton said: “We’re excited to welcome Adrian to lead our fiber laser division. His deep expertise in the sheet metal arena and fiber laser sector is exactly what we need to propel our growth.
“Kimla’s fiber laser technology is truly cutting-edge, supported by our robust network of trained engineers across the UK and Ireland. Adrian’s appointment is the final piece, allowing us to bring these components together and advance confidently in the market with a dedicated expert.”
Adrian Wright said: “I can’t wait to join the team at Dalton Wadkin, and especially the fantastic opportunity to show customers and companies alike the Kimla range of products, including the incredible Kimla Fiber Lasers machines.
“Kimla and Dalton Wadkin have built up a tremendously close working relationship over the past 15 years, and I intend to fully utilise and embrace introducing these machines to customers.
“Key to our success will be showcasing our machines to their fullest potential via live demonstrations in either Nottingham or Poland. Kimla are not just machine builders but are true innovators invested in developing the fiber laser machine from the ground up.
“Designing and manufacturing their own linear motors, coupled with their unique machine design, are just two examples of what makes a Kimla Fiber machine cut materials faster with unrivalled part quality.”
Fire-damaged former cinema to go under the hammer as redevelopment opportunity
The former Savoy Cinema in Spalding, which, with a 1,500-person seating capacity, was Lincolnshire’s largest cinema when it opened in 1937, is to go up for auction this month with a guide price of £250,000-£270,000.
Converted to a bingo hall after audiences declined in the 1970s, the imposing building was damaged extensively by a fire in 2021 and has since remained disused.
Now the 15,000 sq ft cinema, which stands on a 0.7 acre site, is being offered for sale by joint auctioneers SDL Property Auctions and Eddisons Peterborough.
The auctioneers believe the building would be suitable for redevelopment and South Holland District Council has confirmed it would support proposals for a mixed-use commercial and residential scheme on the site. The Westlode Street property is close to the town centre, within Spalding’s conservation area.
Andrew Parker, auctioneer and partner at SDL Property Auctions, said: “This was once a splendid building that was a real asset to the town of Spalding and it has been disused and unloved for over three years since the fire.
“It would be great to see an imaginative mixed-use scheme bring the site back to life, perhaps retaining the original 1930s art-deco façade. Needless to say, the council’s support for a redevelopment scheme makes this a fantastic investment opportunity.”
Clegg Construction starts work on £8.1m Derbyshire school project
Contractor Clegg Construction has begun work to deliver a new primary school.
Drakelow Primary School will be part of a 2,200-home residential estate currently under construction by Countryside Partnerships on the former Drakelow power station site.
The 420-pupil primary school, being built on Marley Way, has been designed to be flexible in use and meet a range of requirements. Both the indoor and outdoor areas will maximise the learning experience, with classrooms flowing onto outdoor teaching spaces to allow for integration of inside and outside teaching, linking to the main play area.
New sports facilities, including a 3G pitch, will be included, as well as a habitat area to provide forest school experiences.
The scheme will also feature a 26-place nursery and a 45-space staff car park.
The building’s heating capacity will be met by externally mounted air source heat pumps and the school will benefit from underfloor heating fed from a low-temperature hot water system from the central heat pump plant.
Drakelow Primary School, designed by multi-disciplinary consultants ONE Creative environments, is due for completion by the end of 2025.
Michael Sims, managing director at Clegg Construction, said: “We are very pleased to have started on site to deliver this new primary school in South Derbyshire which will serve the community currently being developed on the site of the former Drakelow Power Station.
“Drakelow Primary School is a welcome addition to our strong portfolio of design and build schemes delivered across the education sector, and we are delighted to be part of the team appointed to create this important addition to the local community.”
During the development of Drakelow Primary School, the project will be registered with the Considerate Constructors Scheme and follow the CCS Code of Practice (Care for the Environment, Protect the Workforce, Respect the Community). Clegg Construction will also identify opportunities to engage with and enhance the local community and environment throughout its time on site.
Michael Moore, operations director at Countryside Partnerships, said: “Having worked together to develop the reserved matters application for Drakelow Primary School, we are pleased to now appoint Clegg Construction for the delivery phase of this exciting project.
“The new building will be a valuable addition to the Drakelow development, providing a modern, sustainable and attractive environment in which students can learn and thrive.”
Becki Smith, Associate Director – architect and education lead at ONE Creative environments (ONE), said: “We are delighted that work has started on site for the new Drakelow Primary School.
“Working closely with the Academy Trust, South Derbyshire District Council, Clegg Construction and Countryside Partnerships, we have designed the school to maximise the potential of the indoor and outdoor spaces to support a range of teaching opportunities, as well as support the community.
“Flexibility has been built into the design to meet the school’s requirements now and in the future to provide the best possible learning experiences.”
Nottinghamshire-based solicitors firm acquired
Smalleys Solicitors, based in Arnold, Nottinghamshire, will now be able to offer more legal services to businesses and individuals after being acquired by Coventry-based Askews Legal LLP, along with Cocks Lloyd Solicitors in Nuneaton, and John Mohamed & Co in Bedworth.
Key to the acquisitions is the desire to maintain the identities of the local businesses, which each have long-standing histories in their towns, while helping them to expand their offer to their communities. This will include modernising processes and aiming for further growth.
In each case, the existing partners were retiring and wanted their practices to be taken on by someone who would protect the brand and reputation they have spent years developing. All staff and the physical office locations have been retained and retiring partners are assisting with the transitions.
Smalleys Solicitors has over 20 members of staff, specialising in various aspects of law including conveyancing, wills and trusts, and family law. As well as the existing services, Smalleys’ clients will now also be able to access the additional specialisms offered across the wider Askews group.
Askews Legal LLP is a full service law firm, taking care of legal matters across criminal law, civil litigation, commercial property, public family law, conveyancing, wills, estates and trust, and all aspects of corporate and employment law.
The size of the business has doubled as result of the investment, both in terms of revenue and number of employees, which has increased from 60 to 120.
Practice manager, Pritpal Chahal, said: “We have always had a vision of growth, but we wanted to spend time developing a good solid base from which to achieve that, while at the same time setting ourselves apart as a modern law firm, flexible to the needs of today’s clients and employees.
“We felt the time was right to accelerate our plans for growth and these acquisitions are a massive step forward. We put a lot of time and effort into finding the right businesses to bring into the Askews group, and equally, they had to choose us too.
“The partners at Smalleys, Cocks Lloyd and John Mohamed & Co have all put their heart and soul into these businesses over many years and they didn’t want them to be swallowed up by a big regional business. It was important to them to see their names and reputation continue because they have built up so much respect in their communities, and we are also keen to see that continue.
“The acquisitions allow us to expand the Askews offering into new locations, while bringing more legal services to the Nottingham, Nuneaton and Bedworth areas.”
Smalleys retiring partner, Deanne Taylor, said: “Smalleys has had a presence in Arnold for around 30 years and we’ve built up an excellent reputation in that time. I’m delighted that the firm’s future has been secured by becoming part of a wider group that shares our values, ethics and commitment to providing the best possible service to each individual client.”
Rushton Hickman completes investment sale of Burton property
Rushton Hickman has completed the investment sale of 23 Station Street in Burton upon Trent. This was a rare opportunity with a strong tenant in situ.
The property is in a pedestrianised location of Burton, benefitting from high footfall. The area is well populated with nearby occupiers including Costa Coffee, Isabel’s, Coral and Domino’s.
Currently, the space is occupied by Gizili, a Turkish Street Food restaurant that has revitalised the space.
Reflecting on the sales process, former owner of the property, Mrs Jones said: “When we decided to sell the property, we were very keen to minimise any disruption to our commercial tenant in the property, Gizili Turkish Street Food.
“The Rushton Hickman team did a great job of marketing the property to create interest – and they then worked very effectively with our tenant to best schedule all the viewings. We were able to make a quick decision on the sale thanks to the enthusiasm and professionalism of the Rushton Hickman team.”
Taylor Millington, who facilitated the deal, added: “This successful transaction is a win-win for our client, the purchaser and the tenant. Each party achieved positive outcomes, which is always our goal.”
Rescued manufacturer falls back into administration
Administrators have been appointed to five entities of the Fablink Group: Wharfside Industrial Ltd, Fablink (Evenwood) Ltd, Fablink (Luton) Ltd, Fablink (Northampton) Ltd and Fablink (Wolverhampton) Ltd.
The group, employing 427 people, specialises in the manufacture of metal pressings, fuel and hydraulic tanks, operator cab assemblies and other complex structures.
It was acquired out of administration in September 2024, but since then it has lost the business of certain key customers.
The group’s management team has worked to find a viable solution to rescue the business, however, the significant loss of business has severely impacted the group’s future viability. As a result, the directors have determined that they have no option other than to place the group into administration.
On 7 January 2025, Dan Hurd and Lucy Winterborne of EY were appointed as joint administrators.
Given the lack of ongoing business, the majority of employees have been made redundant whilst the joint administrators continue to explore a sale of certain parts of the group and its assets. All employees impacted are being offered support and advice.
Aggregate Industries wins £20m contract for Leicester road maintenance
Leicester-based Aggregate Industries has won a £20m two-year contract to resurface and maintain the city’s roads.
The contract builds on a four-year contract with Leicester City Council, during which it delivered major road improvements and maintenance schemes across the city.
The business has previously held the contract for Leicester City Council’s carriageways between 2020 and 2024, and this latest contract will run for a period of a further two years, with an option of two extensions of 12 months each.
Kevin Murgatroyd, MD for Aggregate Industries’ Contracting division said: “We’re thrilled to be part of this ongoing project in our hometown of Leicester. Securing this contract is a great win for our team and showcases our proven track record in working for Leicester City Council.”
Martin Fletcher, City Highways Director, said: “After a robust procurement process, Leicestershire based supplier Aggregate Industries UK has secured a two-year contract with the city council. The company has a strong history of delivering road maintenance schemes in the region, including Leicester. We look forward to continuing our collaboration to enhance the safety, quality and longevity of Leicester’s roads for both residents and visitors alike.”
Sperry Rail works with University of Derby to bring AI into railway maintenance
An three-year project using artificial intelligence to revolutionising the railway industry has been launched by the University of Derby and Sperry Rail.
Funded by Innovate UK, the Knowledge Transfer Partnership will investigate the application of AI to automatically detect cracks in railway lines.
Dr Alaa AlZoubi, Senior Lecturer in Computer Science at the University of Derby, is leading the project. He said: “Sperry Rail are world-leaders in rail health solutions. Our partnership to develop advanced AI for railway surface inspections highlights our commitment to innovation and strong academic-industry collaboration.
“This project offers a unique opportunity to integrate novel AI technologies with a deep understanding of railway inspection needs, driving greater efficiency and intelligence in the industry.
“While existing inspection methods are effective, they often require significant time and labour resources. By integrating cutting-edge AI models with railway inspection protocols, this initiative will create automated systems capable of data analysis and predictive maintenance, reducing false detections, minimising service disruptions, and extending the lifespan of railway assets.
“It also provides a valuable platform for knowledge exchange and showcases the transformative potential of academia-industry collaboration in developing solutions that advance technology and its real-world applications.”
Bobby Gilbert, Senior Director Digital Transformation at Sperry Rail, said: “I am excited to be working in partnership with the University of Derby.
“By combining our expertise in non-destructive testing for rail flaws with advanced AI developments and the knowledge available through the University, we are well-positioned to accelerate our efforts in improving rail flaw detection. I am impressed by the calibre of the University research team, who significantly enhance the strength of our data science team.
“I believe we will see our existing AI technology greatly enhanced by developing new AI in the area of data fusion.”
2025 Business Predictions: Sam Berry, Managing Director of the Berry Group
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 Sam Berry, Managing Director of the Berry Group.
As we look ahead to 2025, we predict a year of both challenges and opportunities for the East Midlands construction sector and the wider economy.
With on-going economic pressures, including rising interest rates and inflationary costs for materials, businesses in the construction industry will need to remain agile and innovative. However, we also foresee significant opportunities driven by government investment in infrastructure, housing, and sustainability.
The East Midlands is ideally placed to benefit from its strategic location and strong transport links, making it a hub for logistics and distribution projects. This, coupled with increased demand for affordable housing, is set to result in a surge in residential developments, especially in urban regeneration areas like Derby, Nottingham, and Leicester.
Sustainability will remain a key focus for the industry in 2025. The push for net-zero targets and stricter regulations around energy efficiency and carbon reduction means construction companies must prioritise green building practices, energy-efficient designs, and the use of sustainable materials.
This shift not only aligns with environmental goals but also meets the growing demand from clients who value eco-conscious projects.
Technology will play an increasing role in shaping the future of construction. From Building Information Modelling (BIM) to drones and AI-driven project management tools, innovation will be crucial for improving efficiency, reducing costs, and ensuring high-quality outcomes.
The skills shortage remains a pressing issue, and we hope to see a greater focus on apprenticeships and collaboration with local educational establishments to build a skilled workforce capable of delivering all the ambitious projects on the horizon.
Despite these challenges, the East Midlands is well-positioned for growth in 2025, driven by its central location and strong SME base.
However, rising material costs and interest rate fluctuations could still pose challenges, emphasising the need for careful planning and innovative approaches.
At the Berry Group, we remain committed to delivering high-quality developments that support the region’s economic ambitions and create vibrant spaces for businesses and communities to thrive.
