< Previous20 East Midlands Business Link www.eastmidlandsbusinesslink.co.uk 2025 BUSINESS PREDICTIONS Iain Hibbert, CEO, Devello Group In the 2025 the UK property market is projected to experience moderate growth, influenced by factors such as easing borrowing costs, stamp duty changes and regional variations. However, these factors are susceptible to change as the impact of the Autumn budget works its way through. Key predictions include: Mortgage Rates: Average two- and five-year fixed mortgage rates are projected to decrease to around 4% by the end of 2025, enhancing buyer affordability and confidence. House Price Growth: House prices are expected to rise by 2% to 4% in 2025, driven by reducing mortgage interest rates. Stamp Duty Land Tax Changes: From 1 April 2025 SDLT thresholds will be lowered, increasing moving costs for many buyers. This may lead to a surge in transactions before the deadline followed by a potential slowdown. Investor Considerations: Increased SDLT surcharges for second homes and potential regulatory changes may influence investment decisions, particularly in the buy-to-let sector. Rental Market: Rents are forecasted to rise by approximately 17.6% between 2025 and 2029, outpacing wage growth, due to persistent supply-demand imbalances. Planning and Development: Due to the significant “shake up” introduced in the form of the new National Planning Policy Framework 2024, and the Government’s pledged commitment to delivering 1.5 million new homes, activity in this sector is expected to be both significant and buoyant with land promotion taking centre stage. This may be hampered however by the ability of the planning system to cater for the increased volume of applications and appeals. Overall, we think the 2025 UK property market is set for steady growth, with regional disparities and policy changes playing significant roles in shaping market dynamics, despite what is expected to be a year of general economic stagnation. Mark Futcher, Executive Director, Thrive Online Group UK Digital marketing is poised for a significant shift in 2025, particularly among small and medium-sized enterprises (SMEs). After years of financial uncertainty and global crises, many SMEs have deprioritized their marketing efforts, resulting in outdated online presences and minimal investment in upgrades like website enhancements, social presence and SEM rankings. The disruption caused by AI, which introduced confusion about its role in digital marketing, further complicated the landscape, causing uncertainty and indecision. However, SMEs are inherently adaptable and resourceful. Despite the challenges of recent years, including the financial turbulence from 2021 to 2024, they’ve streamlined operations and weathered the storm, opening budget opportunities for marketing. Now, as the economy stabilises, signs are emerging that SMEs are regaining confidence and looking to reinvest in their digital strategies. Two of the key trends expected to define 2025 for digital marketing when considering SMEs: - Early Adopters Taking the Lead: Businesses that act quickly to enhance their digital presence and position their brands ahead of more cautious competitors will reap the benefits of this renewed focus. - Agencies with a Partner-First Approach: Agencies that can provide comprehensive, collaborative support to SMEs, without overpricing their services, will be the biggest beneficiaries. These agencies will cater effectively to SMEs, offering the right balance of expertise and affordability to foster long-term partnerships. The void in SME digital marketing is beginning to close, creating opportunities for growth on both sides. By collaborating with daring yet accessible agencies, proactive SMEs will lead the charge in driving digital innovation and contributing to broader economic growth. This synergy between SMEs and the right agencies will be a major force shaping the business landscape in 2025.www.eastmidlandsbusinesslink.co.uk East Midlands Business Link 21 2025 BUSINESS PREDICTIONS Victoria Templeton, Knowledge Manager, HR Solutions With significant developments on the horizon, now is the time to consider how HR must evolve to be ready to protect businesses in 2025 and beyond. With the Employment Rights Bill, and the upcoming Equality (Race and Disability) Bill, we’re expecting 28 different reforms to worker rights and protections, which, collectively, will bring the most significant developments in employment law in decades. Other Bills which will also have an impact on employment are the Children’s Wellbeing Bill and the Digital Information & Smart Data Bill, which is expected to incorporate rules and standards for AI. HR must embrace this technology to stay ahead of any competitors. There’s never been a more important time to keep up with employment legislation. With this comes training needs. Not just for managers and employees, but for your HR team, since they advise the business on how to remain compliant. Data analytics is also a must so that HR practitioners can gain insights needed to make informed decisions that will go on to shape both the people and business strategy. A clearly defined people plan is vital to ensure the right structure, resource and skills to support the delivery of business goals and objectives. Zeynep Guzelkasap, Operations Manager, Acorn Safety Services The world of health and safety will see a continued focus on fire prevention during 2025. Following the introduction of new high-rise regulations as part of the Building Safety Act 2022 we have seen a dramatic uptick in requests for fire safety support and this is very likely to persist in the months ahead. Fire safety will play a big part in health and safety going forward as accountable individuals take all reasonable steps to prevent building safety risks. Health and safety companies will need to embrace technology and investigate how it can support business goals if it fits the budget. There is likely to be growth in software and wearable devices to measure exposure and collect more data. Technology can also make people feel more looked after within the industry. The year ahead will also see a great emphasis on mental health in the workplace and how to deal with stress. It is vital that employers recognise that work can have a massive impact on health and should be well trained to spot any signs of struggling. We have a duty of care to look after employees and be aware that some people might not have additional support outside of work and instead rely on colleagues. It is imperative to offer an open door so that employees know that they have someone to talk to. Legal recruitment expert Jane Biggs, Managing Director, Bygott Biggs 1) Back to office working policies are definitely making recruitment more challenging, as candidates are voting with their feet to join law firms and in- house teams who offer hybrid or remote working opportunities. 2) Similarly candidates want to see a commitment to ED&I and improving diversity statistics at all levels within law firms. Strong CSR initiatives also help attract the best talent which increasingly focus on what firms are giving back. 3) Generally speaking, law firms continue to publish healthy growth with revenues up year on year. Consolidation still seems high on the agenda and looks set to continue. With a new government there looks set to be a focus on growth in particular legal specialisms such as infrastructure, planning, construction and renewable energy. They would be my three key predictions. Of course there is also the Budget, where it remains to be seen what the impact will be on areas like corporate, banking and real estate which experienced high levels of activity in the lead up to the Budget. 22 East Midlands Business Link www.eastmidlandsbusinesslink.co.uk 2025 BUSINESS PREDICTIONS David Roberts, Owner and Founder, JDR Group 2024 has been a pivotal year for the marketing industry, particularly for SMEs. More business owners are recognising the importance of digital marketing, not just to attract customers but to streamline operations, align marketing and sales and improve decision-making through data- driven insights. The ability of CRMs to automate processes, track KPIs, and predict outcomes is becoming a fundamental part of business strategy and companies which invest in CRMs and AI-driven platforms are reaping the benefits. Both these technologies had a significant effect on SMEs during 2024. Demand for marketing agencies remains strong, but there’s a noticeable trend of businesses attempting to bring marketing in-house. While this can provide a sense of control, it often leads to challenges in managing marketing and sales effectively, resulting in missed opportunities. Marketing agencies that stay ahead of technological advancements, especially in AI, and demonstrate their value to clients will continue to thrive. Agencies will need to demonstrate they can deliver better results faster, which requires constant upskilling and investment in technology, and they will need to clearly communicate their value and show measurable results to retain clients. The biggest factor influencing businesses in 2025 will be uncertainty, particularly regarding the new government’s policies, taxation, and economic trends. New employment laws, rising taxes, and energy policy changes are all likely to affect SMEs. These factors could have a knock-on effect on smaller businesses in their supply chains or local economies, so businesses will need to plan ahead, understand their ideal customers and implement systems to attract and retain those customers. Marketing agencies will need to be proactive in helping them with this, while they will need to also be mindful of new technology which will affect the marketplace. Sam Berry, Managing Director, 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. www.eastmidlandsbusinesslink.co.uk East Midlands Business Link 23 2025 BUSINESS PREDICTIONS Alex Bennett, Managing Director, MEC Consulting Group We are of the opinion 2025 will be a year of opportunity. Having negotiated a turbulent five years with Covid, the cost-of-living crisis and political instability, we now have some certainty, and the property and construction industry can collectively start to drive the economy forward. We are expecting a big push on residential development to meet the government’s 1.5m homes target, and have already felt an increase in activity in recent months. Now with the release of the new NPPF confirming increased housing targets, unlocking grey belt land and accelerating affordable housing delivery, residential development should progress at a faster pace and on more of an open-door policy than we’ve experienced in recent years. This activity will hopefully drive more business growth, give confidence for additional investment in people and training, and enable us to escape ‘survival mode’ that has been de rigueur for the past five years. But of course it is wise to approach these opportunities with a degree of trepidation. How will the industry, its people and systems cope? Especially with the small matter of geopolitical issues that cause economic uncertainty. The private and public sector is significantly under-resourced and heavily reliant on fundamentally broken systems. Plugging the skills shortage is a huge challenge with new funding, training and policies desperately needed to achieve these ambitious targets. In summary, if 2025 is going to present opportunity, then we must approach this sustainably and not act in haste that we create a vacuum of ‘what’s next’? We must learn from previous mistakes and not fall into the trap of a boom and bust strategy. Claire Taylor, Director, Creationz Marketing Tough trading conditions call for smarter marketing With economic challenges predicted for 2025, many businesses may be tempted to scale back marketing budgets. However, history shows that businesses maintaining or even increasing their visibility during downturns often emerge stronger. The focus will shift to smarter, data-driven marketing strategies that maximise ROI, ensuring every campaign delivers measurable results. Companies that stay visible and connected with their audiences will be better positioned to weather the storm and seize opportunities. Clever marketing will be the order of the day! AI continues to change the face of marketing AI will continue to be a powerful tool in marketing, changing how businesses create and deliver content. However, the rise of AI-generated material will increase the need for brands to retain their human touch. Consumers will crave authentic connections, leading to a surge in storytelling, behind-the-scenes content, and personalised interactions. Successful businesses will strike a balance—leveraging AI for efficiency while ensuring their marketing remains relatable, engaging, and uniquely human. As the top two predictions look at the marketing industry, it is important to also look at the skills and competencies of what it takes to be a marketer in 2025. Curiosity and adaptability will define successful marketers With new tools, communication channels, and approaches emerging year on year, marketers will need to be more curious than ever—embracing change, exploring innovative methods, and continually upskilling. Agile and flexible professionals will stand out, as the ability to adapt will become a core requirement. Seeking guidance through coaching and mentoring will be essential for marketers to navigate the complexities of their roles, grow their expertise, and thrive in this dynamic environment. 24 East Midlands Business Link www.eastmidlandsbusinesslink.co.uk PRODUCTIVITY AND EFFICIENCY SPOTLIGHT The little things When it comes to productivity and efficiency in the manufacturing line, one aspect that many people fail to consider is that of line clearance and efficiency. Simply put, line clearance is the time it takes to empty a line of completed products and get it working again. T his is less about a robot moving product off the line, and more about quality control, safety checks and the like. It can also refer to when a product line shifts over from one product to another. For instance, many factories nowadays work on multiple products – a good example being FMCG with different recipes for different foods, etc. The transition period between clearing the line of one product and then altering the recipe, changing batches, making sure it’s all set to make the new product, is a period of down-time that can cost a company millions over the course of a year. The reason this is so problematic is that much of line clearance is still done by human hands. Automation has quite often focused on making products be manufactured quicker, and packaging them quicker, but then falling behind when it comes to quality control. Part of this is because making a robot that screws a cap on a bottle of pop is easier than making one that accurately scans it for any imperfections and particles, but it’s also a case of this part of a line being overlooked. It’s not uncommon to still see workers looking over hundreds or thousands of products on a line, turning them over one by one to make sure no packaging is ripped and no foreign material has found their way inside. This is a slow 26 Á The little things www.eastmidlandsbusinesslink.co.uk East Midlands Business Link 25 PRODUCTIVITY AND EFFICIENCY SPOTLIGHT26 East Midlands Business Link www.eastmidlandsbusinesslink.co.uk process by any means, and also a risky one as humans are prone to losing focus when repeating the same task over and over, and human error remains one of the big problems leading to product recalls. As line clearance is an oft-overlooked part of manufacturing, it also becomes one in which great savings can be made – and these go beyond simply making a line quicker. If clearance and set-up of a new product line is enhanced, then a factory can take on a wider product portfolio, pumping out extra batches or even an extra product entirely. This allows companies to make their existing assets work harder for them and save on investment in new factories – which can be expensive both in financial terms and also in time. A proper factory can take up to five years to be completed, and then will require new staff and training. Being able to enhance existing lines to take on more products saves on all of this. In terms of making line clearance and new line set-up as efficient as possible it’s best to fully embrace Industry 4.0 and digitalisation. If quality control and assurance is taken care of by vision inspection machines, then these can flood a line and be used at every stage to flag and highlight defective product, which can then be quickly and easily removed by employees. This is easier if products are serialised, because the machine and database can then reference the defective serial number with a quick scan and highlight where it is kept, saving further time. In addition, this can then be backtracked if there is any foreign material in a food product for instance, to identify if that happened in the factory or if it was a problem when the raw material came in. It can even PRODUCTIVITY AND EFFICIENCY SPOTLIGHT www.eastmidlandsbusinesslink.co.uk East Midlands Business Link 27 identify every potentially contaminated product in the batch served by that material, and flag them for removal. The amount of time this can save is staggering, and it can also be applied to line set-up when a factory line needs to work on a new product. Traditionally, everything needs to be changed by hand when lines are switching, which is a time-consuming exercise, but a smart factory system can use pre- programmed templates for different products, and alter checkweighers, conveyors and packaging machines to suit the new product. This not only makes change over quicker and easier, but also removes another potential point for human error, as a single missed decimal place on a food ingredient, or a forgotten spool of packaging changed on a child’s toy, could lead to an entire batch of flawed product that needs to be scrapped. Industry 4.0 and digitalisation is by no means new, but it is being adopted far too slowly in our region – and in our country. The technology has been a staple in China for the longest time, which is why Chinese products are being produced cheaper and more efficiently than things here. With countries – especially ours – wanting to become more independent however, there will be renewed focus on protecting the UK’s manufacturing sector, and it will be up to ours to adopt and adapt these new technologies or be left behind. 28 East Midlands Business Link www.eastmidlandsbusinesslink.co.uk TAX Ghosting is not just a dating phenomenon James Pinchbeck, partner at Streets Chartered Accountants, delves into the problem of ghosting in business. T he term ghosting is widely known or referred to in the world of dating, when a person suddenly or unexpectedly experiences an end to all contact or interaction with a person - a date or partner. Any attempts to gain a response or engage in communication is fruitless. However, the world of dating is not the only place it is experienced. It seems that ghosting is increasingly prevalent in the world of business. Its escalation, perhaps in part, is a legacy of lockdown when we worked remotely and were less connected to people, with face- to-face interaction switched to more faceless and less personal digital interactions. Hybrid and remote working, which has been more widely adopted post pandemic, may also be a contributor. So too may be the wider use and adoption of digital communication and working practices. Everyone also seems to be busier than ever, and juggling workload and work pressure has meant people don’t do or can’t do things the way they might have in the past. It is perhaps a little cynical to think that standards, behaviours and ways of working are just not what they used to be. How then might you experience ghosting in the workplace? Interviews - you invite someone to attend for an interview, they accept but fail to turn up and don’t tell you they are not attending or make any contact. Hiring - you make a job offer and give a start date, but the person doesn’t turn up or tell you they are not starting. Quitting - someone decides they no longer want to stay in your employment and without going through due process leaves without notice. Leavers - an employee is let go or leaves by agreement and prior to their departure they are given the cold shoulder or experience a sense they are not a part of the team or organisation. Prospects - you have pitched or quoted for some business. The process seems to be going swimmingly then it ends abruptly, and you hear nothing and get no response. Networking - you meet someone at a conference, networking event, or connected with them on LinkedIn and seem to really hit it off, agree to get in touch but never hear from them again or get a response. Meetings - how many of us have sat in meetings and experienced the person more interested or engaged in their mobile phone? When it comes to online meetings there seems to be a host of people that neither have their camera or sound on - are they ‘in the room’? Emails, calls and texts - you try to communicate with someone but find you get no response from a work colleague, someone you line manage or external contact. Ghosting behaviour certainly adversely impacts the performance and productivity of an organisation, as well as, if widely experienced or prevalent, has a negative effect on culture, morale, recruitment and behaviours. Perhaps it might be understandable, if not acceptable, in difficult situations. It does seem to be increasingly rife in circumstances where individuals prefer or just don’t want to deal with things, either because it is outside their comfort zone, it makes them anxious or more anxious, they avoid or can’t deal with conflict, might get a kick back, they are just too busy or even perhaps because they don’t care. It may even be learnt behaviour from more senior colleagues or peers. Managing or considering how your business or organisation might be affected by ghosting surely is a matter which cannot be ghosted. Whilst individuals may have experienced some work-related ghosting few have probably considered its more widespread impact. Next >