Hiring intentions remain strong despite recession fears
Hiring intentions among UK businesses remain strong despite a turbulent outlook across output and inflation, according to the latest Business Trends report from accountancy and business advisory firm, BDO.
The BDO Employment Index soared to 114.79 in July, its highest level since January 2019, up 0.23 points on June. Staff shortages heightened by Brexit and the COVID-19 pandemic have been driving a buoyant labour market as firms push hard to recruit. This can be seen in the unemployment rate which stood at 3.8% in the three months to May.
However, BDO’s Inflation Index shows no sign of slowing, reaching a further record high of 118.72. Growth was driven by increases across both the input inflation and consumer inflation indices, with the former recording its highest ever reading of 121.19 due to a weakening currency, supply side shortages and significant supply chain disruption.
This tough inflationary environment and the threat of a recession look to diminish employers’ hiring intentions towards the end of this year, mirroring the trend of decline that was seen by the Employment Index during the 2008 financial crisis.
In line with the decline in economic activity, BDO’s Optimism Index fell 0.30 points to 101.53, its lowest point since April 2021. While both the services and manufacturing subindices experienced a fall, the overall decline was driven mostly by the latter with a 0.69-point decrease.
Lower business confidence aligns with an overall dip in BDO’s Output Index, which remains below 100, the measure indicating long-term growth, for the second consecutive month. However, the Output Index posted a slight increase overall of 0.42 points in July to reach 98.66, led by an uptick in consumer activity across the manufacturing and services subcomponents.
Kyla Bellingall, partner and head of the Midlands at BDO LLP, said: “Reports of a less optimistic outlook are by no means surprising as the economy now faces the prospect of a recession towards the end of the year. Although it’s encouraging to see recruitment intentions remain strong, we know that talent shortages are an issue, with many businesses reporting they are struggling to find people with the right skills.
“Despite the current hiring activity, we’re likely to see demand for labour and the Employment Index decline later in the year, with employers devoting their resources to managing inflation, interest rate rises, and ever-growing energy costs.”
£8m Levelling Up boost for Grimsby to repair vital bridges and boost local industry
Vital bridges connecting Grimsby and Immingham will be repaired to boost the local key industries and tourism, prevent road closures and secure future jobs for the region, Levelling Up Secretary Greg Clark has announced.
In the latest step to level up Grimsby, £8 million of funding has been confirmed to help fix damaged bridges along the A180 – a vital route that connects the region’s key ports, serves residents and tourists and provides an estimated £2.5 billion to the local economy’s Seafood Cluster each year.
The funding will prevent months of disruption and closures for residents, as well as making sure local industries can continue to grow and helping to create more skilled jobs in the area.
Grimsby was the pilot Town Deal area, and the Government has awarded over £45m through the Pilot and its flagship Towns Fund and Future High Streets programmes to support plans to renew and reshape the town centre. This includes plans to build 129 new high quality, low carbon homes in the town.
Secretary of State for Levelling Up Greg Clark said: “The work to level up vital towns like Grimsby requires acting on what local people say is important and acting on what local people want – including local infrastructure.
“The funding we are announcing today will provide a vital lifeline for Grimsby’s industry now and in the future and I am looking forward to seeing how our investment is helping local communities to flourish and further unlock the area’s potential.”
DLUHC arm’s length body, Homes England, will assist North East Lincolnshire council to develop plans to revitalise the town centre, including for the 129 homes on Garth Lane.
Cllr Philip Jackson, the leader of North East Lincolnshire Council, said: “I am delighted that our collaboration with Government on the levelling up agenda is bearing fruit. The key infrastructure investment announced today, as well as our work with Homes England, focused on Garth Lane and wider town centre regeneration, are essential elements of our drive to deliver sustainable local economic growth for our residents, our communities and our businesses. I look forward to our collaboration with Government continuing.”
Western School site housing development moves a step closer for Grimsby
An opportunity to create the housing development on the former Western School site has been released to tender this week.
The 22.9 acre brownfield site will eventually see a community of up to 297 properties including potentially one to four bedroom houses, including affordable housing and retirement dwellings. In a separate arrangement, the Council will also provide an extra care facility on the site.
The major ‘spine roads’ into the site and work to bring utilities to the site were completed last year and the Council is now looking for a developer to come forward for the project.
The site received outline planning permission in 2021.
One of the main features of the site is the planned sustainable drainage system. With the weather now being more unpredictable and extreme weather and rainfall more common, it is right that the site should have a sustainable drainage network.
The Former Western School and Playing Field site received funding from Homes England and the Accelerated Construction Fund, to provide enabling works including planning permission, spine roads and services up to the site.
Councillor Philip Jackson, leader of North East Lincolnshire Council, said: “I’m really pleased to see this brownfield housing development progressing now. We know we need more housing, particularly starter houses and ones pre-adapted for our older population, in the borough. We have to get the balance right to meet the needs of our residents.”
The procurement process is a two-stage one, where interested developers can submit a selection questionnaire initially (with a deadline of Tuesday 13 September). Selected developers will then take part in a competitive dialogue, followed by an invitation to submit formal tenders to develop out the site.
It is expected that work could begin on the site as early as 2023.
Plans in for major mixed use scheme in Leicester
Plans have been submitted for a major new mixed use scheme in Leicester.
The development would involve the demolition of existing buildings at the adjacent sites of 150 St. Nicholas Circle and 3-5 Bath Lane, Leicester.
The application proposes the construction of a mixed-use development of student accommodation, ground floor retail accommodation and top floor private rental apartments, with associated communal, amenity and ancillary space.
The 4, 7 and 9 storey building would host 108 student studios, two three bed cluster flats and 11 four bed cluster flats, as well as two one bed private rental apartments.
A design statement submitted to the council says: “The site is a prominent location in the urban grain, at a gateway location to the city and at an important node in the road network. The existing buildings currently under-use the site in terms of use and contribution to the street scene.
“Their impact on the character of the area is mixed, the former bakery building is considered to make a positive contribution, but the single storey frontage of 150 St. Nicholas Circle and the associated 1990s building on Bath Lane to the rear are of low quality and ultimately make a poor contribution.
“The application proposes a comprehensive redevelopment of the site, with the demolition of the existing structures and the construction of a mixed-use development of student apartment accommodation, ground floor retail and top floor private rental apartments, together with associated communal, amenity and ancillary space.
“Proposals are intended to be in line with the planning context of the area, with aspirations of high quality design and usage that helps to enhance and regenerate the area.”
Green light recommended for Goose Gate student scheme
Plans redevelop and extend a former retail and office building in Nottingham to provide purpose built student accommodation and a commercial unit have been tipped for approval.
The proposals from Clarendon Nottingham relate to 38-46 Goose Gate, a thee storey building and a courtyard and parking area to the rear. The ground floor of the Goose Gate frontage was last used as a bar/restaurant.
The new development would provide 100 student bedrooms in a variety of studios and cluster flats on the upper floors, with shared recreation facilities, amenity space and cycle parking. The ground floor would host a commercial unit.
The project would involve retaining and converting the existing three storey building that fronts onto Goose Gate, while rear parts of the building, together with other buildings that front onto Woolpack Lane, would be demolished to allow redevelopment at the back of the site.
The development at the rear of the site would comprise a four storey extension immediately behind the retained Goose Gate building. This extension would increase in height to six storeys along the Woolpack Lane frontage but step down to five storeys towards Hockley House.
Strong trading momentum for Marks Electrical despite challenging market back-drop
Marks Electrical Group, the online electrical retailer, has reported a strong trading period for the first four months of its new financial year – against a challenging market back-drop.
According to an update for the four months ended 31 July 2022, revenue grew 13.7% to £27.7m, compared to £24.3m in the same period last year.
The Leicester-based business, which floated on AIM last year, said its strong performance was driven across categories but particularly in televisions, vacuum cleaners, washers & dryers, and air conditioning.
Mark Smithson, Chief Executive Officer, said: “We’ve started the year well despite a very tough market back-drop with the group’s sales for the first four months up 13.7% compared with the online MDA and CE markets being down over 20% in the first months of our FY23.
“We’ve seen strong competitive activity both in pricing and marketing, with heavy discounting of headline prices and higher cost per click marketing expenses. Despite this, we have maintained our tight control on inventory, cost management and disciplined capital allocation, ensuring we are in a healthy cash position and remaining focused on profitable market share gains.
“Our differentiated operating model, leading customer service and free next day delivery provides a unique offering that sets us apart from the competition. I’m proud of the performance our team has delivered in a very challenging market. Whilst the remainder of the year is difficult to predict, our focus on maintaining a market leading customer proposition and healthy cash flow provides us with the best platform to generate continued profitable market share growth.”
Celebrate outstanding property & construction businesses, projects and people at the unmissable East Midlands Bricks Awards 2022
Place the spotlight on exceptional businesses and projects, and reward the teams behind them, by submitting a nomination for East Midlands Business Link’s esteemed Bricks Awards before entries close on Friday 19 August.
The East Midlands Bricks Awards celebrate the region’s property and construction industry, its people, and outstanding developments. Award categories include: most active estate agent, commercial development of the year, responsible business of the year, residential development of the year, developer of the year, deal of the year, architects of the year, excellence in design, sustainable development of the year, contractor of the year, and overall winner.
Winners will be revealed at a glittering awards ceremony on Thursday 15 September, at the Trent Bridge Cricket Ground – an evening that will also provide plenty of opportunities to forge new contacts with property and construction professionals from across the region.
Thanks to our sponsors:
William Crooks, Managing Director of Cawarden, reflected on winning an award at the 2021 event: “After being named Contractor of the Year at the British Demolition Awards at the start of September, we were absolutely thrilled to win the same accolade from the East Midlands Bricks Awards a few weeks later.
“The event is a real showcase for the regional property and construction sector and we are proud to be recognised for our project and service delivery expertise as a leading specialist contractor. It was a great night and provided an opportunity to catch up with some familiar faces as well as meeting new with the wonderful Trent Bridge Cricket Ground as a backdrop.
“Well done to the Cawarden team for continuously going above and beyond and maintaining high standards for our valued clients. Congratulations must also go to all the other awards finalists and award winners on the night.”
To submit a business or development for the East Midlands Bricks Awards 2022, please click on a category link below or visit this page.- Most active estate agent
- Commercial development of the year
- Responsible business of the year
- Residential development of the year
- Developer of the year
- Deal of the year
- Architects of the year
- Excellence in design
- Sustainable development of the year
- Contractor of the year
- Overall winner (this award cannot be entered, the winner will be selected from those nominated)
Book your tickets now
Tickets can now be booked for the awards event – click here to secure yours. The special awards evening and networking event will be held on 15 September 2022 in the Derek Randall Suite at the Trent Bridge County Cricket Club from 4:30pm – 7:30pm. Connect with local decision makers over canapés and complimentary drinks while applauding the outstanding companies and projects in our region. The event will also welcome John Forkin MBE DL, Managing Director at award-winning investment promotion agency Marketing Derby, as keynote speaker. Dress code is standard business attire.
To be held at:
Well known Brigg Hotel sold to local business
The Exchange Coach House Inn and Tavern in Central Brigg has been acquired by the Hunt Group.
The historic Exchange Coach House Inn along with the Exchange Hotel and Exchange Tavern have been closed since 2020 and will be refurbished, renovated and fitted out by their property development business ahead of re-opening later this year.
Robert Smithson, associate director of Hotels Agency at Colliers advised Joseph Mullen on the sale after almost four decades of ownership, marketing the central Brigg complex for offers in the region of £950,000.
He said: “We are delighted to have advised Mr Mullen who successfully operated the business for the last 38 years. This sale highlights the strong levels of interest in regional UK hotels and in particular those which present a new owner with significant opportunities to grow trade in this post-pandemic market.”
Located across a large proportion of central Brigg, the property offers 42 ensuite bedrooms plus substantial public areas including four bars, two restaurants, several function/meeting rooms and an architecturally pleasing alfresco courtyard seating area. The original grade II* listed property was formally a gentleman’s club built in around 1760 and has been frequented by a number of local dignitaries as well as Winston Churchill during World War II.
Shaun Hunt, CEO of the Hunt Group, said: “The Hunt family are absolutely delighted with this acquisition and becoming the new custodians of this sizeable hotel and food and beverage complex in the very heart of the historic market town of Brigg.
“This is the family’s home town and we are committing ourselves to a very significant investment throughout the site. Whilst the ‘vibe’ in Brigg is already good we shall strive to make it even better, hopefully making Brigg the place to go in North Lincolnshire.
“This will undoubtably require the help, support and combined efforts of all local businesses, including all existing and new food and beverage operators. The plans for our own site currently includes a sports and live entertainment venue, large restaurant with gin bar, a more traditional pub bar, plus fully refurbished and updated ensuite bedrooms.”
Report shows support for LLEP Careers Hub from partners, employers and schools
The LLEP Careers Hub has been praised by careers leaders in a report setting out its impact – with value placed on the Hub’s practical approach to supporting local schools and colleges.
The Careers Hub, which is part of the Leicester and Leicestershire Enterprise Partnership (LLEP), was established in 2018 with 20 trailblazer schools and colleges. It now works with all of the 91 secondary schools and colleges in its city and county.
The LLEP commissioned an independent report from Little Lions Research to coincide with the Hub’s third anniversary and research progress and impact made in careers provision at the original group of 20 schools.
It has now concluded that the Hub is valued by partners and stakeholders for its joined-up approach, providing strategic direction to local schools and colleges, and providing help with funding and peer networks.
Careers leaders were also positive about insights provided by the Hub into the local labour market, as it enabled them to design programmes relevant to the local economy.
Data shows that the LLEP Careers Hub was ahead of national averages in five of eight performance benchmarks when research was conducted at the start of the year.
There have been particular gains made in publishing careers programmes on school websites, involving governors in careers, and giving pupils meaningful encounters with FE colleges.
But the report notes that challenges remain, with four in five careers leaders reporting that they continued to face at least one barrier to further progress.
The three biggest challenges cited were lack of staff time, lack of funds and difficulties in tracking activities.
Andy Reed OBE, interim chair of the LLEP Board, said: “The report is really encouraging and shows the positive impact that strategic planning of careers resources is having in schools and colleges across our region.
“We know that there is more to be done and that the disruption of the Pandemic forced changes. However, it’s great to read about the value our careers leaders are placing on the Careers Hub’s offer.
“The Careers Hub is spearheading a joined-up approach, offering support with funding, and providing young people and careers leaders with genuinely useful information about the local labour market.”
Enterprise Advisers (EAs) are one of the ways that the Careers Hub is helping shape how schools and colleges embed practical labour market information and opportunities into their careers programmes.
EAs are industry volunteers who go into schools to offer the benefit of their first-hand experience of what industry really needs.
The report notes that 79% of careers leaders surveyed found the support and advice provided by local EAs to be useful and the LLEP is currently recruiting 10 more business representatives to act as volunteer EAs.
Gerarde Manley, LLEP Careers Hub manager, said: “Commissioning an independent report has been a really useful exercise in tracking gains made in our original cohort as the Careers Hub has grown from 20 to 91 of our schools and colleges.
“The report contains several recommendations for making further progress and these have been mapped to our strategic plan through to March 2023 and beyond.
“As a Careers Hub, we will continue to build capacity and listen to stakeholder feedback as we play our part in delivering the LLEP’s strategic priority of making Leicester and Leicestershire more inclusive for all.”
Extend your network at the East Midlands Expo
On Monday 14 November 2022 the East Midlands Expo will return, offering an ideal day for networking and business generation – meet more potential clients in one amazing cost effective day, than it would take months out on the road.
An established event of over 20 years, for which Business Link is a proud partner, the free to attend expo is well targeted and aimed at the construction, property, business, investment, finance, professional services and related B2B markets.
Taking place at the East Midlands Conference Centre, Nottingham, the exhibition will open to attendees at 9am, with a seminar taking place between 10:45am and noon.
A special networking lunch (for which tickets can be purchased here) will then take place between 12:15pm and 2:15pm, and the exhibition will close at 3:30pm.
For more information on exhibiting at the event click here.
To register to attend the event for free click here.
To secure tickets for the networking lunch click here.
From property agents to developers, architects, contractors, investors, PR firms, and more, see the list of current exhibitors here.