Half of Midlands construction firms not confident they will achieve net zero by 2050
As the urgency for the shift to a net zero economy becomes more prominent, a brand-new piece of research has identified that nearly half (43%) of the UK construction industry is not confident they will achieve net zero by 2050 and this is even higher in the Midlands at 49%.
For the sector, which contributes over 40% of the UK’s total carbon footprint, to reduce
emissions and achieve net zero by 2050, it needs to address three key challenges, according to a piece of industry research commissioned by Bramble Energy – a hydrogen fuel cell technology startup:
1. Education and an understanding on the solutions available
2. A net zero ambition which is realistic and ultimately, achievable
3. Full transparency on the government funding available.
Research specific to the Midlands follows the national trend. Over three quarters (81%) of
participants believe the government can be clearer in how it expects the construction industry to hit carbon targets and ensure the net zero ambition is not a pipedream.
The survey also revealed that over four fifths (81%) of the construction industry, 82% regionally, has not taken advantage of any hydrogen government funding schemes available to them. In the Midlands, only 37% of the industry know funding is available – nationally it is just under a half (48%).
Chief product officer, Peter Sayce, at Bramble Energy says: “Inherently the construction industry is a heavy carbon emitter and continues to be the focus of many planned government initiatives and policies, as well as public scrutiny. The urgency to act on climate
change has never been greater, and the construction industry – like all others – has a moral and legal responsibility to address the climate emergency and accelerate sector decarbonisation.
“The construction industry is already demonstrating clear intent with the launch of major
projects like HS2. Yet our survey revealed some genuine challenges that continue to face the sector in order to achieve net zero. Yes roadmaps are being put into place by industry experts but the picture being painted is that all parties have to take their share of the responsibility. Construction firms have to become better educated on solutions and support available, and the government has to be more transparent in its support.”
Earlier this summer, the UK government tipped hydrogen as being one of the country’s carbon cutting solutions by launching a dedicated strategy to kick-start the UK in becoming a world-leading hydrogen economy. The vision promises to unlock up to £1 billion in UK
government support for hydrogen and other low carbon technologies, including over £400m for hydrogen specifically. This received huge criticism from industry experts claiming the amount of funding will mean the UK will struggle to deliver at scale because it is dwarfed by the billions earmarked by European counterparts like Germany and France.
Earlier this month more than 100 organisations led by the UK Green Building Council (UKGBC) launched the Whole Life Carbon Roadmap – a vision and actions for achieving net zero carbon in the construction and demolition of buildings and infrastructure.
The benefits of hydrogen power are well documented. Not only does it help reduce carbon
footprint, it is reliable and easy-to-use, its only emission is water and when in operation is
virtually silent. Yet what is stopping the construction industry from implementing it, is cost with 65 percent of participants claiming it was their biggest barrier to entry – from cost of raw materials and overall operating costs to cost of replacing legacy equipment and initial
investment.
The survey did reveal that four percent of the construction industry have already started to
implement hydrogen, with another six percent considering it in the very near future. The good news is innovation continues. Last year Siemens Energy installed a zero-emission hydrogen fuel cell to provide off grid power to the National Grid’s Viking Link construction site and JCB announced earlier this year its development of the construction’s first ever hydrogen powered excavator.
“As more and more construction firms start to strategically prioritise or consider the pursuit of a sustainable world, the more change becomes a reality in how the industry currently powers its sites. The race to net zero is proving to the world that hydrogen will be part of the solution in tackling carbon emissions – for today and tomorrow. After all the talk, it is time for action!
“The climate crisis is the biggest challenge humanity faces and speed is of the essence. COP26 presented a stark warning of the dangers involved when ignoring climate change and lack of action. Everyone has a part to play – this includes the construction industry, but more importantly, those who have access to insight, knowledge and tools to bring it to the forefront and make tackling climate change a collaborative effort,” concludes Sayce.
Booster for business investment needed to sustain the recovery & unleash UK’s potential – CBI economic forecast
The foundations for the UK’s economic recovery remain firm despite global supply challenges weighing on growth in the near-term, according to the latest CBI economic forecast.
However, short-term headwinds – including rising costs and shortages – have grown since the business group’s previous forecast in June. Longer-term challenges, notably persistently poor productivity, underline the need for a booster for business investment to support sustainable growth.
The CBI is forecasting 6.9% growth in GDP over 2021 and 5.1% in 2022, revised down from 8.2% and 6.1% respectively. It should be noted that this largely reflects weaker than expected outturn data since the CBI’s previous forecast. The business group’s forecast expects supply chain frictions to largely dissipate by the middle of next year. Earlier in the Autumn, the Government formed the supply chain advisory group to grip these issues.
Overall, household spending remains the key driver of GDP growth, generating 90% of growth in 2022, and two-thirds in 2023. This is supported by a further improvement in real income, and households running down excess savings accumulated during the pandemic.
The resilience of the UK’s labour market has been a real success story, thanks largely to the Government’s Job Retention Scheme, which helped stave off potentially large-scale job losses. Continued employment growth over the next couple of years also supports household spending.
Business investment appetite has recovered somewhat and, spurred by continual economic growth, it rises briefly above its pre-pandemic level at the end of 2022 (growing by 8.2% over the year as a whole). However, this recovery is short-lived, with capital spending falling from mid-2023, as the super-deduction comes to an end and the rise in corporation tax kicks in. As a result, business investment will continue to lag other advanced economies.
The recovery in exports is also expected to be lacklustre, following disappointing growth over this year so far.
The forecast predicts CPI inflation to peak at 5.2% in April next year. It is set to remain above the Bank of England’s 2% target until Spring 2023, which will hit pay packets and offsets some of the positive underpins to consumer spending.
Tony Danker, CBI Director-General, said: “The challenge for January 1st is now very clear for the UK economy. Significant headwinds and rising costs of living threaten the extent of recovery and prospects for economic success. These hurdles for firms will provide a major test for Government – can they foster sustainable UK investment and growth?
“The UK’s New Year resolution must be to give firms the confidence to go for growth. We should be raising our sights on the economy’s potential and seizing the moment. “I know from speaking with firms of all sizes that they have an ambitious investment mindset, and are anxious to implement growth plans.
“But while intentions have thawed, we’re coming up to a cliff-edge in 2023. The super-deduction is a welcome catalyst, but a one-hit wonder isn’t enough to make up for four decades of underperforming business investment. We must build on its success with targeted measures encouraging the scale of investment we need, particularly in green technologies. A booster for growth is needed to protect and build on our recovery.
“But this isn’t just a challenge for government. It’s also up to businesses to step up and be part of the solution. Investment in technology and skills are among the most important steps firms can take now that will power productivity growth.
“Government has key levers at its disposal to back business: pro-investment and pro-innovation regulation to help build new markets, a competitive tax regime that incentivises business investment across the board and new market-making interventions, for example on clean energy. Getting this mix right will pay dividends over the longer term, jumpstarting the UK’s flatlining productivity and set us on course for a brighter new year.”
Rain Newton-Smith, CBI Chief Economist, said: “We expect a pretty firm economic recovery ahead, though understandably the emergence of Omicron poses another downside risk to our forecast.
“Ultimately this underscores the need for equitable distribution of vaccines across the world – supporting lives, livelihoods and freeing our international travel sector, boosting trade too. The emphasis must be on testing and using all the tools at our disposal to keep as many global routes open as possible.
“Increasing exports is also a vital component of sustainable growth. Exporting companies are more productive, resilient and help create internationally competitive UK regions.
“Let us be candid: UK exports are being outpaced by our global peers which, if allowed to continue, will negatively impact our economy in the long term.
“We must continue to address market access barriers globally while supporting all businesses to seek growth internationally.
“The export strategy is a positive step forward with the extension of the new Export Support Service, and a welcome focus on the UK’s world-beating services sector. We now need to follow through on delivery.
“And there’s more we can do at home, too. By matching our peers on R&D spending we can build on existing UK strengths in areas like life sciences, higher education and decarbonisation to become the science superpower we all want to see.
“But let’s not forget the importance of normalising relations with the EU – our biggest and nearest trading partner – which will aid cooperation in a host of other areas.”
Key forecast data:
Jobs and household spending
- Household spending is set to increase by 7.6% in 2022 and 3.1% in 2023 as real incomes recover, and employment growth strengthens
- Recovery in the labour market continues with early data indicating only a minimal impact on jobless numbers following the end of the Job Retention Scheme.
- The CBI expect a relatively short-lived rise in jobless numbers at the end of this year, after which unemployment falls back steadily, ending the CBI’s forecast (3.8%) at its pre-COVID level.
- However, CPI inflation is expected to pick up further ahead, peaking at over 5.2% in April 2022 – driven by a combination of base effects from 2020, rises in Ofgem’s energy price cap, higher fuel prices and supply chain pressures. This will hit living standards, with real wages set to fall year-on-year for much of 2022.
- Business investment continues to recover over the coming year, rising briefly above its pre-pandemic level by 2022. However, it then falls from mid-2023 and ends the CBI’s forecast 3% below its pre-COVID level at the end of that year
- At the end of 2023, the CBI expect GDP to still be 3% below its pre-COVID trend.
- Poor productivity persists over the CBI’s forecast: despite the recovery over the next few years, output per worker remains 17% below its pre-2008 trend at the end of 2023
- With the recovery in UK exports lacklustre in the CBI’s forecast, and imports growth kicking off on a stronger footing, the CBI do not expect any support to GDP from net trade.
- The CBI expect global GDP growth (in purchasing power parity terms) at 5.7% in 2021, 4.7% in 2022 and 3.8% in 2023. Most of the economies that the CBI forecast are set to surpass their pre-pandemic levels of GDP at the end of 2022.
- But the global recovery is also likely to be very skewed, with emerging economies lagging behind, due to slower vaccine rollouts and limited space for policy support.
Christie & Co announce the sale of Derby’s iconic Old Bell Hotel
Specialist business property advisor, Christie & Co is delighted to announce one of Derby’s oldest buildings and last surviving coaching inns, the iconic Old Bell Hotel is up for sale with a guide price of £1,500,000.
Set in the heart of Derby’s historic Cathedral Quarter, this charming inn dates back to 1650 and was once considered one of the most prestigious coaching inns outside of London. From Bonnie Prince Charlie’s army to Paul McCartney, the Grade II listed building has played host to many guests over the years.
The current owner, local businessman Paul Hurst acquired the hotel in 2012 and set about an award-winning three year restoration project worth over £1 million, that saw the hotel transformed into a popular destination venue for shows, corporate events and weddings.
Mr Hurst comments, “After a decade of hard work, it is time to hand the baton over to someone else who can take the business to the next level. That is why we engaged Christie and Co, who I know will find the right owner to look after the building and fully appreciate its heritage and importance to our city.
“One of our greatest assets here is our fabulous team,” he continued, “who share the same passion and drive for the building and our customers, to ensure they have the very best experience, whether popping in for a pint, relaxing with a coffee, enjoying a show or getting married! It has been an absolutely honour and priviledge to be the custodian of The Old Bell, working with such an incredible team. I really am dreading my last day as I am sure it is going to be very emotional.
“Following the sale, I will be proud to join a long list of people who have made their mark on this incredible building over its 372 year history but our many loyal customers should be reassured that it will continue to be business as usual throughout the transition to new ownership.”
The substantial building features five bars and several function rooms, including its Grand Regency Ballroom, as well as a 60-cover restaurant. The former hotel rooms are currently used as storage and office space, presenting a fantastic development opportunity for an incoming owner to reintroduce an accommodation offering.
Gavin Webb, Senior Business Agent at Christie & Co comments, “The Old Bell Hotel is a property of historic significance in Derby and opportunities of this nature rarely come to the market. New owners will have the opportunity to further develop the business by creating up to 12 letting bedrooms in the upper floors of the premises”
DHP Family backs team with promotions for key marketing roles
DHP Family has made two key promotions within the marketing team as it continues its commitment to develop talent within the company.
Following a recruitment process open to internal and external candidates, Anwyn Williams has been promoted to head of marketing and Matt Newton is stepping up to become marketing manager.
Anwyn will lead the team, overseeing marketing output across DHP’s concert and festival roster, including some of the company’s biggest arena and theatre tours working with artists such as James Blunt, The Human League, Sam Fender, Rufus Wainwright and Happy Mondays.
Anwyn also manages the marketing for the Dot To Dot Festival, and is a member of the internal teams that deliver the Women in Music initiative, set up to address the gender imbalance within the music industry, and Beat The Streets, a multi-venue event in Nottingham to combat homelessness that has raised nearly £250,000 for the charity Framework.
Originally from Leamington Spa, Anwyn moved to Nottingham to study at Nottingham Trent University in 2010 and became involved in the music scene through performing and promoting herself as an artist.
Staying on after graduation for the city’s vibrant music scene, she began working at DHP as an assistant in 2014, before rising through the ranks of the marketing team based at the company’s head office.
Anwyn said: “I’m extremely proud to be taking on this next challenge with DHP, a company that has encouraged and helped me to grow and develop throughout my career in the music industry.
“Having worked at every level of DHP’s marketing department since joining seven years ago, I’m very pleased to have the opportunity to lead and shape our amazing team, and I’m certain that we’ll see many more talented people rising through the ranks for years to come.”
Newly promoted marketing manager Matt Newton also started out as a marketing assistant less than five years ago and praised the company’s commitment to its staff.
“DHP Family has always been about nurturing staff and developing people to the best of their abilities. I feel privileged to be another example of this in my new position.
“In this new role I will be leading the marketing for DHP Family’s 25,000 capacity Splendour Festival as well as many more concerts and tours. I’m really looking forward to helping continue DHP’s reputation for creativity and innovation under Anwyn’s leadership.”
MAG to host virtual ‘Runway to Recovery’ event for SMEs close to Manchester, London Stansted and East Midlands airports
Small and medium sized businesses can learn more about how they could become a supplier to the UK’s largest group of airports. Manchester Airports Group (MAG) will host a ‘Runway to Recovery’ meet the buyer event on Wednesday 8th December.
The virtual event will be free to join for all and will be hosted by senior leaders from across the Group. The Managing Directors of all three MAG airports – Manchester, London Stansted and East Midlands – will provide an overview of their respective businesses, alongside information from MAG’s procurement team about the process of becoming a supplier, and current available opportunities.
Businesses from across the airports’ surrounding areas in the North West, East Midlands and East of England can sign up to the event here to learn more about their local airport and the wide ranging business opportunities they provide.
The Group works with hundreds of partners and suppliers at each of its airports, spending more than £780million annually. Suppliers are critical to the effective running of the airports’ operations, which collectively welcomed over 60 million passengers in 2019.
As well as gaining insight into working with MAG, businesses can also learn about how to become a leader during changing times through the use of innovation and technology, as well as have an opportunity to network with like minded businesses.
MAG had previously hosted a meet the buyer event at London Stansted Airport for a number of years, and after its long running success, decided to roll the scheme out across the Group to promote the creation of local supply chains which support local businesses.
Neil Robinson, MAG CSR and Airspace Change Director said: “Our ‘Runway to Recovery’ meet the buyer event will provide SMEs from the areas local to all three of our airports with the opportunity to get a unique insight into how they could do business with us.
“By hearing from our airport Managing Directors and our procurement teams, businesses can see how their product or service could contribute to our supply chains which help our airports run seven days a week, 365 days a year.”
Link to event sign up:
Registration Form – Runway to Recovery (weareumi.co.uk)
Long Eaton marina operator completes strategic acquisition of counterpart
Aquavista, the Long Eaton-based marina operator, has expanded its marina portfolio with the strategic acquisition of Castle Marinas.
The Midlands-based firm will see its portfolio expand with an additional 11 marinas added to its footprint at new locations, including Crick Marina, home of the world-famous Crick Boat Show, and the Birdham Pool Marina at Chichester Harbour.
Speaking following the announcement, Aquavista CEO, Steve de Polo, said: “We are delighted to announce the acquisition of Castle Marinas and look forward to the exciting opportunities that this will bring to our customers across all 29 of our UK-based marinas.
“Aquavista believes that life is better by the water and our purpose is to help our customers live that life. Since 2019 we have invested more than £3m into our marina estate, improving marina facilities and helping to deliver a great waterside experience, whether you live, visit, or work at an Aquavista marina.
“Both Castle Marinas and Aquavista have a proven track record of providing a high-quality experience to our customers and we look forward to continuing that tradition through our new combined offering.
“At Aquavista we pride ourselves on investing in our waterside teams, ensuring that our customers’ lives are made as easy as possible. I am delighted to have already begun to meet with the waterside teams at the 11 Castle Marinas to hear their views on how we can work together to further improve the marina experiences.”
Operations director, Mike Braidley, from Castle Marinas, said: “Castle Marinas is very pleased to have reached an agreement with Aquavista. It is clear how closely our mission statements align, and we believe Aquavista is ideally placed to continue to deliver and indeed improve on our commitment to be ‘Big enough to cope, small enough to care’. This transaction will support our waterside teams to continue providing a friendly, helpful and professional service at all our locations.”
rg+p promotes three new directors
Multi-disciplinary design practice, rg+p, has promoted three longstanding employees to directors.
Melvyn King becomes technical director, John Roberts is technical associate director for housing, and Ben Walton is design director.
Collectively the trio has amassed over three decades with rg+p, delivering some of the firm’s flagship schemes including Royal Warwick Square in Kensington and Chelsea, Leicester’s Sock Island waterfront regeneration, the award-winning Passivhaus homes at Heathcott Road and the 692-bed student scheme at The Bendigo Building in Nottingham.
“Melvyn, John and Ben are significantly talented architects, with a breadth of knowledge and expertise that the practice draws upon regularly,” said James Badley, rg+p’s director.
“They each champion the creation of sustainable buildings through design quality and technical accuracy, and as such, have become well-respected by both our team and clients. My co-directors and I were pleased to reward these three professionals with well-deserved promotions and begin a new phase of business growth.”
Whilst Melvyn, John and Ben’s promotions have specific practice-wide responsibilities, each is also expected to train the next generation and will lead in-house forums, review boards, CPD workshops and seminars.
Melvyn will also continue his longstanding partnership with De Montfort University where he provides lectures and tutorials for undergraduates studying towards BA Architecture and BSc Architectural Technology as well as mentoring and guidance aligned to the PEDR (Professional Experience Development Record) programme.
James added: “It’s really important that we continue developing new talent and we’re confident that Melvyn, John and Ben are excellent role models for our aspiring architects. The pandemic has caused swathes of changes to the architectural landscape and it’s an exciting time to be re-imagining our homes, communities, places of work and leisure.
“However, it’s also indefinitely altered the patterns of our working life. With further positive companywide changes soon to be announced, we agreed the timing was right to make these promotions to provide continuity and reassurance.”
These promotions take rg+p’s senior management to a team of nine, with Melvyn, John and Ben joining existing directors, James Badley, Alex Briars, Mitch Dale, Grant Giblett, Chris Lindley and Rob Woolston.
2022 Business Predictions: Mark Richardson, partner at BB&J Commercial
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 Mark Richardson, partner at BB&J Commercial.
I expect 2022 to be much like 2021 in terms of activity. Demand for good quality commercial freeholds has been high, and I expect once again we will see competitive bidding where investments come to the market.
On several occasions when instructed to sell we have been to ‘best bids’ not only on investments but also on land where a scarcity of opportunities has pushed prices upwards.
I think business owners are looking to sit tight and ride out any remaining uncertainty, and as such I suspect that where freehold sales do come to the market then competition between potential purchasers will be even keener in 2022 than it has been this year.
We have seen some evidence of office uptake increasing a little, and this may accelerate as and when there is more long-term certainty over economic performance.
Surprisingly, demand for retail units has been reasonable, particularly for freehold units with potential for conversion of parts to residential. Hopefully this is a sign that there is gathering momentum behind a trend to repurpose our town and city centres.
On a related front there does not seem to be any waning of developers appetite to secure funding for new build schemes, and encouragingly no seeming shortage of lenders looking to provide finance.
This is only empirical evidence but based on our own activities and work this year it does give comfort that those who are willing to put their money on the line in terms of both borrowing and lending are feeling confident in what they are doing.
£500k funding boost for Leicester’s garment industry
Leicester’s garment industry is set to benefit from a new £500,000 business support project.
The sector has received a boost after the city council was successful in a bid to the Government’s Community Renewal Fund (CRF).
It means Leicester City Council will receive £500,000 to work together with partners Fashion-Enter Ltd and De Montfort University (DMU) to offer co-ordinated support to textiles manufacturers and local textiles workers.
The project will see all three partners providing lots of practical support to participating businesses to ensure ethical compliance and best practice, support innovation and develop their workforce skills.
Deputy city mayor, Cllr Adam Clarke, said: “This is great news for Leicester and demonstrates our commitment to the garment sector locally, which is a vital part of our economy. We’re determined to help raise standards and promote best practice in the industry – and this funding will help us to do that, by working intensively with local businesses.
“We are very pleased to be working with our partners Fashion-Enter and De Montfort University on this project, both of whom bring substantial valuable expertise to the project. Specialist training providers Fashion-Enter are also working with us on our fashion technology academy, while DMU is well known for driving innovation in the fashion industry.
“Together, we can combine our expert local and industry knowledge to support businesses to become beacons of best practice, in turn sharing what they learn with other businesses to create a wide-reaching positive impact.”
DMU will be mapping all the textiles activity in the city from companies and dye houses to brands. The university will then work with companies to develop a sector growth plan – providing leadership training and shifting the focus from low cost and non-compliance to high quality products. New business models will be developed, focusing on new production systems and more sustainable methods and fabrics.
Professor Katie Normington, Vice-Chancellor of De Montfort University, said: “The city of Leicester and DMU share a rich history in fashion and textiles, and the university is delighted to be part of this far-reaching project. We will be working closely with companies of all sizes on this plan, which has the potential to re-imagine business models and develop a more sustainable future for the industry.”
Jenny Holloway, CEO of Fashion-Enter, said: “Following on from the launch of the fashion technology academy, this is more good news for Leicester! The CRF revenue will allow for a wider range of training initiatives that will offer further wrap-around support to factories and workers.
“This will include information on new learner technologies, workers’ rights and e-commerce websites for brand development. It’s time to really establish Leicester as a major quality ethical manufacturing centre of excellence.”
The project will work with local manufacturers and textiles workers on accredited skills and training via the newly-launched Fashion Technology Academy, develop links to research and innovation to drive productivity, offer support for manufacturers to adopt best practice ethical compliance procedures, and work to promote the best of Leicester manufacturing.
The funding award is part of an overall £3milllion package secured by Leicester City Council from the Community Renewal Fund, with four further projects also benefitting, including schemes to support people into employment, provide English lessons for speakers of other languages, help women in business and provide mentoring and digital support to businesses.
Parent company considering sale of Boots
Boots’ parent company is reportedly considering a sale of the Nottingham-based business, which would see it valued at over £5bn.
According to Sky News, Walgreens Boots Alliance (WBA) is lining up Goldman Sachs to advise it on a review of options that could see new owners for the retailer.
Sky News further noted that the process would be exploratory, and may not lead to an ownership change, with a floatation being considered also.
A pharmacy-led health and beauty chain, Boots has over 2,000 stores and a team of over 50,000 colleagues.
