< PreviousEast Midlands Business Link Bricks 2019 A celebration of those helping to create the landscape for the next generationTo nominate a company for an award visit www.eastmidlandsbusinesslink.co.uk/mag/bricks-2019EAST MIDLANDSEast Midlands Business Link Bricks Award 2019 are now open for entries. The awards are a chance to recognise and celebrate the region’s top projects, as well as the teams behind them. The event will bring together the real stars of the region’s commercial property sector and celebrate those helping to create the landscape for the next generation. The East Midlands Bricks Awards will drill down into what is really happening in the world of property in our region – from offices, through to industrial, residential and community projects such as leisure schemes and schools. 20-21.qxp_Layout 1 04/01/2019 09:38 Page 1Last years’ awards sold out in advance and saw 150 professionals from the construction, development and property sectors in the region attend the ceremony. To book your place at the event or find out more about the date, time and venue, please visit: www.eventbrite.com/e/east-midlands-bricks-awards-tickets-52903127679 Categories sponsors: Sustainable development of the year Contractor of the year Architects of the year Overall Winner Residential scheme of the year Developer of the year Deal of the year Excellence in design We still have sponsor opportunities for: Most active agent Free to enter, the awards will be held on the 28th March 2019 in the Derek Randall Suite at the Trent Bridge County Cricket club where the winners in each category will be revealed. Nominate yourself or another company here: www.eastmidlandsbusinesslink.co.uk/mag/bricks-201920-21.qxp_Layout 1 04/01/2019 09:38 Page 2Moving forwardsMoving forwards22 East Midlands Business Link www.eastmidlandsbusinesslink.co.ukFINANCE AND INVOICE SOLUTIONS© SHUTTERSTOCK.COM / KUNG_TOMPRODUCTIVITY & EFFICIENCY IN MANUFACTURING22-25.qxp_Layout 1 04/01/2019 09:39 Page 1www.eastmidlandsbusinesslink.co.ukEast Midlands Business Link 23 FINANCE AND INVOICE SOLUTIONSAfter a relatively stable start to 2018, the UK manufacturing industry showed a more mixed picture towards the end of the year. Manufacturing growth has slowed noticeably according to PwC in comparison to relatively high rates in 2017. A 2.6% growth in 2017 has become a slower estimated 1.2% growth in 2018, with the expectation of a 1.4% growth in 2019. According to the ‘IHS Markit/CIPS PMI Index figures’, released in October, new orders, output growth and employment plummeted for the first time since July 2016 - since the EU referendum. PMI dropped to 51.1, a 27-month low, and much lower than the market expectations of 53, which businesses are attributing to low levels of new work from overseas - EU countries in particular - and global trade tensions, as well as weak demand for autos. As an export-intensive industry, any more intensifying of international trade tensions in 2019 will see manufacturers face downside risks. The index also reveals, as mentioned, UK manufacturing employment levels reached a 27-month low, however employment in SMEs rose, while decreasing at large companies for the third month in a row. In the quarter to November, meanwhile, a more positive picture appeared as manufacturing output growth was found to have picked up, according to the ‘CBI Industrial Trends Survey’. Order books strengthened after the quarter to October slump and were better than the long-run average. Export order books also improved slightly after a weak October. In addition, the ‘IHS Markit/CIPS UK Manufacturing PMI’, rose from 51.1 in October to 53.1. However more concerns appeared with the subsequent ‘Q4 EEF/BDO Manufacturing Outlook Survey’, which indicated that though output and orders remain positive, the outlook for manufacturers is deteriorating as a result of continued Brexit uncertainty, weaker global growth and the effect of protectionist policies. According to the survey, in regard to domestic orders, companies are planning to increase inventory levels ahead of Brexit, while exports have “hit the brakes,” with export balance halving since Q3. Additionally, the survey also highlights weaker employment and investment intentions. Looking at the most recent annual data for the East Midlands, which is an area traditionally associated with strong manufacturing, the ‘EEF/BDO Regional Outlook 2018’ report found that this year has presented a stark contrast to the “exceptional end” of 2017 where the region’s output balances heralded historic highs. An easing domestic and export demand slowed manufacturing in the region, and the region reported the lowest If the East Midlands manufacturing industry is to keep up with its competitors, manufacturers must amp up their automation offering. 24 uPRODUCTIVITY & EFFICIENCY IN MANUFACTURING22-25.qxp_Layout 1 04/01/2019 09:39 Page 2average total orders balance out of all UK regions. Average balances for the year remain positive however, in double digits, and thanks to the positive end to 2017, investment and employment intentions in the East Midlands are somewhat strong. Employment in the manufacturing industry now makes up 12.3% of our region’s workforce, higher than any other region, and since 2010 the number of manufacturing jobs has increased by 8.8% in the East Midlands, which is close to double the national growth rate. The EEF/BDO report also indicated that the East Midlands accounted for 7.6% of the UK’s manufactured exports in 2017, with 54.9% of exports going to the bloc, which is above the national average, making the region’s manufacturers more vulnerable in the case of a hard Brexit. The slowdown in East Midlands manufacturing, in addition to general UK trade concerns, have been attributed to issues in the region’s main manufacturing sectors. Food and drink for instance, the region’s largest manufacturing sector (making up 20% of East Midlands manufacturing), has been hit this year by the sugar levy and severe weather, which has hindered sales. The region’s dedication to the manufacturing industry has been emphasised in 2018 by the completion of a new 9,000 sqm advanced manufacturing building in Nottingham which will host research groups involved with technologies like automation, precision manufacturing, 3D printing and lightweight composite materials, and provide qualified staff and help to local manufacturing businesses. Another high-profile step forward for manufacturing in the East Midlands, showing its manufacturing prowess, this year was the Talgo train factory bid which saw Chesterfield make it into the final two choices as a location for the Spanish train manufacturer’s first UK factory. On a wider level, the UK’s manufacturing industry is set for a boost with £121m additional funding, announced in the Autumn Budget, for the Made Smarter campaign, which will see the government invest in technological innovation in manufacturing - such as Internet of Things (IoT) - and the transformation of the UK manufacturing industry. The adoption of cutting-edge technologies and further innovation is key to the future success of the UK’s manufacturing industry, if it is to keep up with firms worldwide. UK manufacturing is at a point of revolution where the automation of processes - such as through artificial intelligence (AI), use of robots and machine learning - is leading the way forward, and is vital for improving productivity, efficiency and the overall bottom line. If the UK is to remain competitive, more automated machines are required. While the UK has 71 robots per 10,000 manufacturing workers, Germany has over 300. Manufacturers are beginning to embrace ‘lights out manufacturing’ as a way of meeting demand, increasing production and quality, reducing employee risks, PRODUCTIVITY & EFFICIENCY IN MANUFACTURING24 East Midlands Business Link www.eastmidlandsbusinesslink.co.uk© SHUTTERSTOCK.COM / POPTIKA22-25.qxp_Layout 1 04/01/2019 09:39 Page 3East Midlands Business Link 25PRODUCTIVITY & EFFICIENCY IN MANUFACTURINGaddressing the staffing crisis, and reducing costs. The strategy involves using robotics in automated factories where no human workers are required on site while products are produced 24/7, though very few factories run a full ‘lights out’ strategy, keeping a small number of employees on site for tasks such as quality assurance. The main current downside for ‘lights out manufacturing’ is the expense of implementing it, and thus manufacturers are more inclined to partially automate operations with the opportunity to scale up, and have humans and robots work together to improve productivity. The use of AI and connected factories is the next step for many of the UK’s manufacturers, as they give businesses a real competitive advantage, extend human capabilities, and are essential in a world where production now needs to be flexible and responsive so that products can meet customer specifications when required and so that manufacturers can make production as efficient as possible. Through sensors, connected factories produce significant amounts of data in regard to anything from customer feedback to product production status. AI can be used to make sense of this data so firms are able to optimise operations. For instance AI can detect wear and problems with machinery and ascertain when they might breakdown or need maintenance, allowing one to create a solid predictive maintenance programme that reduces chance of equipment failure, repair costs and downtime. Machine learning, an application of AI which allows systems to automatically learn from experience without being programmed, can also be a real benefit for manufacturers allowing them to alter the production line quickly when required. For instance if there is a fault in a product that one needs to ensure does not reoccur, one can do so easily without time costly programming, creating a more flexible system. In embracing automation and other technological advances, the region’s businesses need to prepare their employees for the workplace and skills of the future. Jobs in the manufacturing industry are changing in coherence with rapid technological developments. Increasing automation of processes means businesses must invest in sustained training and upskilling to meet these changing job roles which will see more employees needed for the creation, maintenance and operation of automated systems. The switch in manufacturing jobs means that fewer human workers are required for repetitive assembly line jobs, which will ultimately free up time for less menial tasks - an extra benefit for businesses embracing automation. www.eastmidlandsbusinesslink.co.uk© SHUTTERSTOCK.COM / PHONLAMAI PHOTO22-25.qxp_Layout 1 04/01/2019 09:39 Page 426 East Midlands Business Link www.eastmidlandsbusinesslink.co.ukTAXNew Year’s resolutions for your business, now there’s a thought... By James Pinchbeck, Marketing Partner Streets Chartered Accountants Looking ahead to 2019, how many New Year’s resolutions have you made and equally how many have you already broken? As well as in your personal life, the start of a new year can be a really excellent time to take stock of your business and your goals. The New Year can often present an uphill struggle, perhaps more so this year following on from the tough economic climate. As in any time or state of the overall economic cycle there will be businesses doing well in tough markets and businesses doing less well in stronger markets. To a great extent, the state of a business is dependent as much upon the strategy and management adopted by its owners, or those running it, as the overall status of the market in which it operates. It is still thoroughly alarming how many businesses are managed without any form of plan or strategy. On the basis that we are unlikely to see a marked upturn in the overall economy in 2019, the time must be right for business owners and managers to consider the options and plans for the year ahead. The last two years have certainly, with the ongoing Brexit negotiations, created commercial uncertainty. The impact of which has dampened, even suppressed many businesses growth strategies and investment plans. Putting off decisions and action though could be more costly in the long term. One way to cope with uncertainty is to create certainty, by identifying specifically what it is that is giving rise to the unknown or anxiety. For some that may be the loss of a key customer or loss of key staff, for others it might be a reduction in profits or the threat of a competitor. Whatever is toying with your mind or keeping you awake perhaps it is a good place to start, looking at a plan of action for a more prosperous or fulfilling year ahead. Other than seeking the advice of work colleagues and perhaps friends, most businesses tend to turn to their accountants for advice. As such, as part of the plan for any business looking to its year ahead, it must be worth meeting with your accountants to discuss strategy. Whatever you decide your New Year’s resolutions are for you and your business you may want to include perhaps an unusual one, in terms of reviewing whether your accountants can provide you with the proactive advice and support you need to make the most of 2019. 26-27.qxp_Layout 1 04/01/2019 09:40 Page 126-27.qxp_Layout 1 04/01/2019 09:40 Page 228 East Midlands Business Link www.eastmidlandsbusinesslink.co.ukCORPORATE HOSPITALITYThe art of wooing clients Businesses have at their disposal an entire arsenal of tools to secure new trade, contacts and contracts. Of all these tools – from social media marketing, exhibitions and networking events – one of the most important is corporate hospitality. Unlike the other aforementioned forms, businesses that have a bad experience and get burned by corporate hospitality so often don’t return to give it another shot. But this New Year, East Midlands Business Link aims to show that corporate hospitality can be a powerful tool within reach of any and all businesses, from SMEs right through to national powerhouses. The first thing to understand is cost. Ultimately, corporate hospitality is about securing new business or, at the very least, ensuring loyal customers and clients want to continue spending their cash with you. This pretence isn’t lost on anyone attending, so don’t try and dance around the financial side of the equation. It’s important to consider both the cost and one’s aims in the early planning stages of any corporate hospitality event – be that wining and dining or taking a slew of clients out to the races or the opera. The budget for any corporate hospitality event should be directly proportional to the amount of new business and contracts a company is hoping to generate. For example, if a company is looking to generate £10 million in new business, then spending £100,000 on an event (or events) is a decent ball park figure. Likewise, if a company is looking to generate £1 million in new business, a budget of £10,000 can be set aside. As the old adage goes, it takes money to make money. Once a budget has been established, a business must then decide on what event or activity it wants to utilise. It’s important not to pick something for the To kick off the New Year, East Midlands Business Link has put together this helpful piece exploring the ins and outs of securing new business and safeguarding existing contracts with the fine art of corporate hospitality. The art of wooing clients 28-29.qxp_Layout 1 04/01/2019 16:01 Page 1www.eastmidlandsbusinesslink.co.ukEast Midlands Business Link 29CORPORATE HOSPITALITYsake of it, or risk using a pin in a catalogue approach. It’s far too scattershot by half and presents an element of risk that threatens to undo all a company’s careful planning. Instead, think of the people you’re looking to invite, whether it’s existing customers or prospective new clients (or a mix of both) and take a view. Of course, you could always come right out and ask, though that does run the risk of feeling too much like a box ticking exercise. With the rise of social media, it’s now easier than ever to find out what a person is interested in, making organising corporate hospitality events easier than it’s ever been. So if the majority of the people you’re looking to invite have a penchant for football, it’s worth hiring a private corporate box at a stadium. Although sporting events are the old faithful when it comes to corporate hospitality – from football right through to horse racing – it’s far from the only event or experience at a company’s disposal. Our region is blessed with all manner of cultural events and world-class venues putting on opera, stage productions and art galleries. All of these are great choices to woo and impress clients and customers, prospective or otherwise. It can be especially advantageous for winning clients from outside of the region, as they’re not only getting to know you and your offering better, but the town or city itself. After all, our region has a lot worth shouting about. The important thing to bear in mind when booking any event is to go through official channels. In a bid to find a cheaper rate of tickets, it can be tempting to utilise some questionable looking websites. Not only can you end up with counterfeit or even non-existent tickets, but should they prove legitimate, might be terrible seats or standing to an event and risk having the opposite effect on customers. A prospective client will hardly look kindly on loosing a day of work for a stressful, time-wasting outing. So always use trusted websites and suppliers, even if it means doing a bit of research first. Planning well in advance will help to ease some of the stress and ensure that every eventually can be catered for should issues arise. That way, when the day of the event comes around, there’s nothing left but to turn up the charm and show clients a good time. © SHUTTERSTOCK.COM / OLEKSII SIDOROV 28-29.qxp_Layout 1 04/01/2019 16:02 Page 2Next >