< Previous East Midlands Business Link CONSTRUCTION MACHINERY AND EQUIPMENT T he UK has always had a strong export market for construction equipment and machinery, enjoying a thriving trade and the kudos of importing less than it exports, resulting in a net profit for the country and the industry as a whole. That said, trade in the wake of Brexit to the EU has fallen drastically, going from 50% of our export market to 44% in 2022. Despite that, sales of construction equipment finished in 2022 higher than they had in 2021, and the highest they had been since the financial crash. One of the leading reasons for the industry’s success has been the adaptation of greener machines. According to statistics, sales of construction machinery involving electric engines doubled in 2022 from 2021, showing a clear and explosive market for more sustainable machines across not only the EU, but further afield. The economic situation in the UK and our regions has led to more of a focus on retrofitting older machines however, indicating that much of the growth is in other countries purchasing out equipment for their own profits – by no means a bad thing, but not ideal either. The construction industry in our region has been doing well of late, but Net Zero 2050 has created both challenges and opportunities; the new requirements for buildings have resulted in more work, including work to modify existing properties, but the increasing complexity has been a burden on smaller construction companies who have less capital to throw around at these things. There is a lot of talk in the industry currently about what the future of construction equipment will be, and whether AI can be utilised in it in some way. AI is still in the early stages of being used commercially, and it’s harder to wave away accidents on a construction site versus a spelling mistake in a Embracing new technology Embracing new technology New technology in AI may be a gateway to new developments in construction machinery. East Midlands Business Link CONSTRUCTION MACHINERY AND EQUIPMENT document. Still, companies are exploring how AI can be used to assist and streamline processes, and where it can safely be used. Some suggestions are in autonomous machinery for less complex jobs such as moving construction material across a site, and others are taking more gung-ho measures in seeking to introduce driverless machinery. A middle ground that feels much more realistic has been unveiled overseas, and sees vehicles remote controlled by drivers in simulation cabs back in a main office. These cabs are deigned to mirror the interior of the vehicle itself, including controls, but allow the driver to control © stock.adobe.com/Lichtwolke99 22 Á © stock.adobe.com/Linus East Midlands Business Link www.eastmidlandsbusinesslink.co.uk CONSTRUCTION MACHINERY AND EQUIPMENT any given piece of equipment from a central location. Not only does this mean less chance of injury or accident at a site, but it also offers up the potential for a singular operator to be on multiple sites at once, by doing one job in one part of the region, and then connecting to another vehicle in another, reducing downtime and allowing construction companies to cut costs by having their drivers operate multiple machines. This obviously does not mean multiple machines at once (though that could be a future development) but given that sometimes a piece of machinery is only needed for a few key jobs through the day, a single driver could perform those jobs at five or six sites without being moved around. Not only might this allow for less labour costs, but it could also be a solution to difficulties recruiting skilled machinery operators, as any given construction firm would need less staff. Many of these developments are still in their early stages, and implementation of AI has yet to be fully regulated by the government (it is expected that some laws might be introduced about it in the coming years) but seeing as how much of the talk about using it is to support a human operator, rather than replace them, it is unlikely that they will all be dismissed out of hand. The construction industry may be looking at a rapid paradigm shift in the coming decade toward fully electric, greener vehicles autonomously capable of action, and controlled by operators working off-site or in specially constructed facilities. If so, this may not only revitalise the construction industry, but create an incredible demand among manufacturers of construction machinery and equipment. The important part is embracing the new technology early so that our region, and our country, can benefit. Because innovative new ideas are already being explored in the US, EU and ASEAN regions, and the UK does not want to be left behind. © stock.adobe.com/Gorodenkoffwww.eastmidlandsbusinesslink.co.uk East Midlands Business Link INSURANCE Business insurance is often seen as a requirement to be fulfilled as cheaply as possible, but big companies often invest in additional forms of protection, and it might be time for businesses in our region to consider the same. A s business owners will know, there are certain insurance policies that are required to operate. Primarily, employers are obligated by law to have employers’ liability insurance, and this requirement remains unchanged in the proposed regulatory reform. This insurance policy will bear the expenses associated with work- related injuries or illnesses, encompassing both employee compensation and pertinent legal fees. Additionally, if a company utilizes motor vehicles for transportation or deliveries, it must obtain business motor insurance. The minimum coverage required is ‘third party only,’ which safeguards against damages and injuries inflicted upon third-party vehicles and drivers. It is also legally mandated to provide coverage for employees who will be operating company vehicles. But what about additional policies? Public and product liability insurance, whilst not mandatory, are standard policies taken out by a growing business. Public liability insurance is to provide financial protection to individuals or businesses if they are held liable for Covering all angles 24 Á © stock.adobe.com/Michail Petrov East Midlands Business Link www.eastmidlandsbusinesslink.co.uk INSURANCE causing injury, property damage, or other losses to third parties. This insurance coverage is designed to cover legal costs, compensation claims, and any associated expenses that may arise from incidents occurring in public spaces or on third- party premises. Public liability insurance ensures that individuals or businesses are adequately protected against the financial risks and potential legal liabilities that may arise from accidents or incidents involving members of the public. Product liability insurance is to provide financial protection to businesses or manufacturers should their products cause harm or damage to consumers or users. This type of insurance coverage is specifically designed to cover legal costs, compensation claims, and any associated expenses that may arise from product- related incidents or defects. Product liability insurance helps safeguard businesses from potential financial losses and legal liabilities that may result from claims related to product defects, manufacturing errors, design flaws, inadequate warnings or instructions, or other product-related issues. It provides reassurance and financial security to businesses by mitigating the risks associated with potential product-related claims and ensuring they have the means to address any resulting legal or financial obligations. The downside to the above is that they would constitute two separate policies, meaning higher premium payments. Acquiring public liability insurance comes with a premium cost. The exact amount depends on various factors such as the nature of your business, coverage limits, and claims history. For some businesses, especially smaller ones with limited budgets, the cost of insurance may be perceived as a disadvantage. Furthermore, these policies are by their nature restrictive. Public liability insurance policies often have exclusions and limitations. Certain high-risk activities or types of claims may not be covered, or coverage may be limited in specific circumstances. It is crucial to thoroughly understand the policy terms and conditions to ensure that you have adequate coverage for your business needs. Public liability insurance may attract false or frivolous claims, potentially leading to increased premiums or reputational harm. While insurance providers have mechanisms to investigate and defend against fraudulent claims, the process can still be time-consuming and may impact the business’s operations. Once again, the usefulness of such policies depends on the nature of the business. Public facing businesses, particularly those that deal in advice or specialist services, may benefit from the specialist cover that public or product liability insurance provides. For businesses less prone to defamatory actions, general liability insurance will often suffice. General liability insurance is a broader term that encompasses a wider range of liabilities faced by businesses. It includes public liability coverage, but it also extends to other areas such as product liability, completed operations liability, and advertising liability. General liability insurance provides coverage for a variety of potential risks and claims, including bodily injury, property damage, personal injury, and reputational harm. It is a more comprehensive insurance policy that addresses a broader spectrum of liabilities that businesses may face. As may be expected, the more comprehensive cover of general liability insurance typically comes at a higher cost. For new businesses, reputation is worth everything. When choosing which assets to protect, opting for a more www.eastmidlandsbusinesslink.co.uk East Midlands Business Link INSURANCE specialised cover at a lower cost may make more sense. However, if your business is in manufacturing or product sales, a more generalised policy to cover defective products is advised by experts. For company directors, it may also be prudent to consider extended coverage which reaches to defamatory claims against the person rather than exclusively against business operations. Directors and Officers Liability Insurance, often abbreviated as D&O insurance, is a type of liability insurance that provides financial protection to directors and officers of companies in the event they are personally sued for alleged wrongful acts committed in their capacity as company leaders. This insurance coverage is designed to protect directors and officers from legal expenses, judgments, settlements, and other costs associated with such lawsuits. The purpose of D&O insurance is to safeguard the personal assets of directors and officers, as well as attract and retain qualified individuals for leadership roles within organizations by offering financial protection against potential lawsuits. It helps mitigate the financial risks associated with legal actions, promotes confident decision-making, and provides peace of mind to directors and officers in fulfilling their duties. It’s important to note that D&O insurance, by necessity, has specific policy terms, coverage limits, and exclusions. Finally, for businesses that trade in consulting or advice, Professional Indemnity (PI) insurance may be useful. PI insurance provides protection to professional businesses against claims made by their clients due to any harm caused by professional negligence. Obtaining this type of coverage is considered good practice for consultants, especially for national or global clients. Your contractual agreement may necessitate the acquisition of PI insurance, with the minimum amount of coverage required also being specified. One should note that those who operate as sole proprietors will likely be personally responsible for financial damages without PI insurance. © stock.adobe.com/crizzystudio East Midlands Business Link www.eastmidlandsbusinesslink.co.uk KONSILEO INSURANCE Q&A Where did the name Konsileo derive? "Konsileo" is derived from the Esperanto word "konsili" which means "to advise" or "to counsel". The company chose this name to reflect its focus on providing tailored advice and guidance to its clients in the insurance industry. Konsileo aims to be a trusted advisor to its clients, helping them to navigate the complex world of insurance and make informed decisions about their coverage. Who are Konsileo? Konsileo is an independent chartered commercial insurance broker that offers a unique value proposition to its clients. Providing bespoke insurance solutions tailored to the specific needs of our clients. Konsileo achieves this by using a digital platform that combines technology with a human touch. Clients are assigned a dedicated Client Director who works with them to understand their business and its unique risks. The Client Director has access to over 100 insurance markets from household names to specialist niche insurance and are able to provide the right policy to match our clients’ specific requirements. Another key aspect of Konsileo’ s USP is its focus on transparency and accountability. Konsileo is committed to providing its clients with clear and concise information about their insurance policies, including pricing and coverage. Konsileo also aims to build long-term relationships with its clients, which is reflected in its customer-centric approach. Overall, Konsileo offers bespoke insurance solutions through a combination of advice and technology, with a focus on transparency and accountability, which sets it apart from traditional insurance brokers. How can insurance from Konsileo help your organisation? Insurance from Konsileo can help your organisation in several ways. Here are a few examples: Protection against financial loss: Insurance is designed to protect organisations from financial loss due to unexpected events such as accidents, natural disasters, and legal action. With the right insurance coverage in place, your organisation can be better prepared to manage and mitigate these risks. Customised insurance solutions: Konsileo works with its clients to understand their unique risks and develop customised insurance solutions that provide the right level of protection. This can help ensure that your organisation is not over-insured or under-insured, and that you have the cover you need to protect your business properly. Compliance with legal requirements: Depending on your industry and location, you may be required by law to carry certain types of insurance coverage. Konsileo can help ensure that your organisation is in compliance with these requirements, and that you have the right coverage to meet your legal obligations. Peace of mind: Knowing that your organisation is properly insured can provide peace of mind and help you focus on running your business. With Konsileo’ s support, you can have confidence that you have the coverage you need to protect your organisation and its assets. Overall, insurance from Konsileo can provide valuable protection and support to your organisation, helping you to manage risk, comply with legal requirements, and focus on your core business operations. Why is Konsileo Lincolnshire different? Konsileo Lincolnshire is a local branch of Konsileo that focuses on serving clients in the Lincolnshire area and beyond. There are several factors that make Konsileo different from other insurance brokers in the region: Local expertise: Konsileo Lincolnshire is staffed by insurance professionals who are familiar with the unique risks and challenges faced by businesses in the Lincolnshire area. This local expertise allows them to provide tailored advice and guidance to clients that is specific to their region. Technology-driven approach: While Konsileo Lincolnshire is focused on serving clients in a specific region, it still leverages Konsileo’ s proprietary technology platform to enable collaboration across the brokerage. This technology-driven approach allows them to efficiently and effectively match clients with the right specialist Customer service: Konsileo is committed to providing exceptional customer service to its clients. This includes being responsive to client needs and concerns, and working closely with clients to develop customized insurance solutions that meet their specific requirements. Transparency: Like the wider Konsileo organisation, Konsileo is committed to transparency and accountability in its operations. This includes providing clear and concise information to clients about their insurance policies, including pricing and coverage. Overall, Konsileo Lincolnshire is different from other insurance brokers in the region because of its focus on local expertise, technology, customer service, and transparency. By leveraging these factors, Konsileo provide a unique value proposition to its clients in the Lincolnshire area. Q&A Konsileo InsuranceRICK WALES - Client Director With nearly 40 years of experience working in diverse broking roles, I am perfectly positioned to support and service the local business community, offering advice for a wide range of industries. My specialities lie within Construction, Haulage, and Property Owners, and my previous experience has given me exceptional knowledge in business development and strategic planning. 07779 337 168 | rick.wales@konsileo.com www.eastmidlandsbusinesslink.co.uk East Midlands Business Link KONSILEO INSURANCE Q&A Meet your Konsileo Team JACK GENNEY - Client Director With 12 years experience, I have a strong appetite to build long-standing relationships and ensure my clients are adequately protected in a cost-effective manner. With the ability to both identify and mitigate the risks businesses face, I provide my clients with the ‘peace of mind’ that in the event of a loss, I’m right by their side. Whilst possessing vast knowledge of all sectors, I specialise in Large Construction Risks, Engineering, Motor Trade, Property & Transport. 07943 172 207 | jack.genney@konsileo.com KRISTINA FROST - Client Director Having supported local businesses over the last 10+ years, delivering bespoke insurance programmes and guiding clients through the minefield that is the insurance market. I pride myself on the level of service and commitment I provide, along with an extensive range of knowledge across all insurance products and sectors. I specialise in Manufacturing, Wholesale/Retail, Hospitality & Leisure risks. 07859 910 694 | kristina.frost@konsileo.com specialisms include, Corporate, Financial Lines, Professional & Large Haulage risks. 07361 233 827 | alan.horton@konsileo.com MICHELLE MARKHAM - Client Servicing Director I have specialised in commercial insurance for the past 5 years, gaining knowledge and experience quickly. I particularly enjoy problem-solving industry-specific risks with my specialisms lying in Fleet, Property Owners, Shops, and Offices. I am a people person by nature and so I enjoy getting to know clients and working closely with colleagues; constantly improving and tailoring the insurance process per client. 01472 810 059 | michelle.markham@konsileo.com NICK TAYLOR WARD - Client Director My 30 years of experience have allowed me to fine-tune the process of designing unique insurance solutions for every client. I am also able to provide high quality risk mitigation advice so my clients are able to have that added level of security. My ACII qualification gave me strong foundations in all things insurance, which means that I can appreciate the complexity and enjoy the challenge of working with an eclectic mix of business environments. 07976 090 701 | nick.taylorward@konsileo.com business, should you suffer a financial loss or experience an accident within the workplace. 07772 605 078 | jackilyn.jack@konsileo.com Konsileo Insurance, Suite GO4 McCue House, 70 Wilton Road, Wilton Road Industrial Estate, Humberston, DN36 4AW East Midlands Business Link www.eastmidlandsbusinesslink.co.uk TAX James Pinchbeck, partner at Streets Chartered Accountants, breaks down the process of strategic planning. T here seems to be renewed vigor to embark on strategic planning sessions by both private sector and third sector organisations, their Boards and senior leadership teams. Whether this is the result of needing to get to grips with pressures facing them around workforce challenges, supply chain issues, rising costs or simply in what seems to be an ever-changing world, there does seem to be a need to determine the overall direction of travel. In any event, who could disagree with taking time out to spend time on the business as opposed to in the business. The process of strategic planning for some may involve some form of facilitated away day, with exec and non-exec directors, for others it might be spending time in the office, or working from home to develop a plan. Regardless of the choice of approach, the process for developing the strategic plan invariably is the same. In essence the best starting point is looking at where we are now, and perhaps reflecting on the last plan. By looking at what has been achieved and the challenges faced we can then start to look at what the future looks like. It’s always useful to consider whether the prior years have been as intended, expected or desired. Before diving into future strategy, it is also good to review or consider the purpose of the organisation. Whilst many will probably look to re-visit their ‘mission’ increasingly it seems to be more appropriate and effective to focus on ‘purpose’ - the reason why the organisation exists not just for its customers and those that own or run it, but also its wider stakeholders. In essence, what is the reason for your organisation’s being! Looking ahead to the future we start to consider the what, why, when and where of what you are looking to achieve. This tends to be determined by having an in-depth understanding of the environment in which you operate, the opportunities presented and the challenges you face. Having prepared a draft, which doesn’t have to be War and Peace, many find it useful and beneficial to review this with the wider members of the team, perhaps even external stakeholders. This engagement piece certainly can play a role in honing the plan as well as potentially getting greater buy in to its delivery. Whilst Boards and senior teams may determine and detail an organisation’s overall strategy, and promote the same, its delivery or rather the how you make it happen tends to be more the work of the wider team. Looking at the overall approach to strategic planning is always a good thing. If you are embarking on a strategic planning session soon it is also worth looking at why plans don’t work, don’t come to fruition or deliver what was intended. There are a number of key reasons why strategic plans don’t deliver - these include the fact that from the start they were ill conceived, even perhaps delusional in their expectations. This could be down to a failure to really get into the weeds and base it on detailed data and intelligence. It could also be down to the mindset or influence of one or more individual’s overpowering influence and/or personal desires or goals. Often strategic goals are not realised because they are too broad or ill defined, there is no clear or easily communicated strategic intent or direction. Moreover, there is a long list of desires, activities as opposed to a single or limited number of objectives. Certainly, a failure to communicate effectively and bring alive the strategy can lead to a failure to deliver. How many plans have been produced that just sit on the bookshelf or in a file on the computer? It can also be the case that when looking at delivery of the plan, consideration wasn’t really given to the resources and skills needed to deliver it. There are no doubt many more reasons why strategic plans are not realised, but we will finish on the fact that many fail to actually use the plan as a management tool measuring performance and outcomes against the plan on a regular basis. Next >