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 Marc Abrams, senior office partner at KPMG UK’s Nottingham office. I think my predictions are more new year wishes! Talking to businesses around the East Midlands inadequate transport connections in the region consistently comes up as a topic of conversation, so my wish is that we see some progress on this in 2024. Discussing this with colleagues elsewhere in the country, the further you are away from London, the more that the inequality in major infrastructure spend is felt. During all the ‘storm’ of the cancellation of HS2 north of Birmingham in the Autumn and the political ‘rebuttals’ coming out of the West Midlands and Greater Manchester, it felt as if the East Midlands was silent on this. Irrespective of the rights and wrongs of HS2, my other wish is that the East Midlands region finds a voice and an identity, so it can get itself in the heart of these and other national debates and secures the much-needed investment for the region. East Midlands devolution clearly presents an opportunity and I hope our political leaders seize the opportunity to create a similar impact of their mayoral equivalents in other regions.

The East Midlands’ unemployment rate has remained at 3.7% for the fifth month running, new figures by the Office for National Statistics (ONS) show. It puts the region near the top of the list for having a low proportion of over-16s out of work and significantly below the UK average of 4.2%. The data, for the period between August and October 2023, means the region’s unemployment rate has now been under 4% for the past two years, having last been above the threshold in the three months to October 2021. The economic inactivity rate for 16 to 64-year-olds – which measures the number of working-age people who have dropped out of the labour market for reasons such as retirement, caring duties, long-term ill health or studying – remained at 20.9% for the East Midlands for the third consecutive month, above a pre-pandemic trend around the 19% mark. East Midlands Chamber Chief Executive Scott Knowles said: “The fact our region’s unemployment rate has remained at a relatively low level for such a prolonged period is testament to the efforts and resilience of our region’s business community in the face of significant economic challenges. “Rising economic inactivity has been one of the greatest concerns over the past couple of years as it led to a dwindling labour market, which has restricted capacity – and therefore the ability to grow, raise productivity and bring prices down. “While this rate remains above pre-Covid levels, it’s pleasing to see this has now come down by about 2% throughout this year, giving firms more room to manoeuvre. “However, our own research shows there is no room for complacency. Our Quarterly Economic Survey shows a net 7% of businesses have increased their workforce during the final three months of 2023, compared to a net 15% in the previous quarter – an indication of the tough trading challenges that persist. Over the next three months, a net 17% expect their workforce to expand in size, so prospects may improve. “Many employers continue to face challenges with filling job vacancies. More than half (55%) of organisations attempted to recruit during Q4, and more than seven in 10 (72%) of these experienced problems in finding suitable staff. There are particular shortages to fill skilled manual and technical roles, as well as professional and managerial positions.” East Midlands Chamber published its regional economic blueprint, titled A Centre of Trading Excellence: A Business Manifesto for Growth in the East Midlands and Beyond, in November last year, urging Government to focus on the “four Is” of investment, innovation, infrastructure and international trade. It set out a list of policies to encourage businesses to invest in their people, including introducing flexible incentives for businesses that invest in staff training and bringing forward the introduction of the Lifelong Loan Entitlement to support retraining and the retainment of an older workforce. Scott added: “We really need a dedicated Government policy that supports companies to invest in their people, whether that be in upskilling their existing workforce or reskilling prospective employees to fill skills gaps. “We must also tailor policies to recognise the diversity of people who are out of work and avoid a one-size-fits-all solution. We would also like to see Government work with businesses to offer support, and share best practice, on what a flexible and inclusive workplace looks like as this is another vital ingredient in enticing people back to work.”

The headline NatWest East Midlands PMI^® Business Activity Index – a seasonally adjusted index that measures the month-on-month change in the combined output of the region’s manufacturing and service sectors – posted 47.1 in November, down slightly from 47.5 in October.

The latest data signalled a solid drop in output, thereby extending the current sequence of contraction that began in August. Companies in the East Midlands noted that the decline was due to weak client demand, with some reports of order cancellations and postponements. Of the 12 monitored UK regions, only the North East recorded a steeper drop in activity.

East Midlands firms registered a fifth successive monthly decrease in new business during November. The rate of contraction eased slightly but remained strong overall. Anecdotal evidence suggested the drop in new orders was due to weak client confidence and lower customer purchasing power. The East Midlands indicated the sharpest fall in new orders of the 12 monitored UK regions.

Business confidence in the East Midlands slipped to the lowest since December 2022 in November. The level of positive sentiment was weaker than the UK average and was historically subdued with regards to the region’s long-run series trend. Although optimism was driven by hopes of a pick up in client demand and investment in new products, high interest rates and subdued demand conditions reportedly weighed on confidence.

November data indicated a further contraction in staffing numbers at East Midlands firms. The rate of job shedding quickened slightly and was the second-fastest since January 2021. Moreover, of the 12 monitored UK areas, only Wales and the North East signalled stronger contractions in employment.

The decrease in workforce numbers was linked to lower new order inflows and cost cutting initiatives.

Private sector firms in the East Midlands recorded a solid drop in incomplete business midway through the fourth quarter. Companies noted that lower levels of unfinished business were linked to a further reduction in new orders and sufficient capacity to process incoming work.

Backlogs of work fell for the fourteenth successive month, but at the weakest rate since July.

East Midlands firms recorded a pick up in the rate of cost inflation during November, as the pace of increase quickened from October’s recent low. That said, cost burdens rose at the second-slowest pace in almost three years amid lower prices for some raw materials. Nonetheless, the rate of inflation was broadly in line with the UK average.

The increase was led by the service sector, as manufacturing costs were broadly unchanged.

Companies in the East Midlands increased their output charges at a sharp pace during November. The rate of inflation eased slightly to the slowest in three months and was marginally weaker than that seen across the UK as a whole, but remained above the region’s series average. Firms attributed higher selling prices to efforts to pass-through greater costs to customers.

Rashel Chowdhury, NatWest Midlands and East Regional Board, said: “East Midlands firms saw further drops in output and new orders during November, as the region heads for a challenging end to 2023. The contraction in new business was the strongest of the 12 monitored UK regions, as companies struggled to spur demand, with total activity also suffering.

“Underlying data highlighted further anticipated difficulties over the coming months, as firms cut workforce numbers again and business confidence slumped to the lowest in 2023 to date. Lower employment stemmed from cost cutting efforts, as input prices increased again.

“Although much slower than the average over the last two years, the rate of cost inflation quickened. Meanwhile, a trade-off between protecting margins and passing costs on to clients led to only a fractional moderation in charge inflation. Further historically elevated hikes in selling prices suggest pressure on customer purchasing power will remain a key theme in the coming months.”

Microlise Group, a provider of technology solutions, has secured a new partnership with McCulla, an Irish logistics company. McCulla has selected the Group’s suite of software solutions to optimise its fleet operations, with an expected go-live date in January 2024.

McCulla will be implementing Microlise’s solutions to improve the overall performance of its extensive fleet. Through an agreement that encompasses a wide range of Microlise products, the refrigerated transport expert will be using Fleet Performance, Journey Management, SmartPOD, TruAnalysis, and TruChecks before the end of Q1 2024.

In addition to these core offerings, Microlise will assist McCulla in temperature monitoring for its 209-trailer fleet, integrating with Thermo King and Carrier to obtain critical temperature updates. The data will be accessible via Microlise’s platform, providing real-time insights and ensuring the safe transport of temperature-sensitive cargo.

In line with its sustainability commitment, McCulla is also embracing a Circular Economy Green Haulage approach which can reduce carbon emissions by 93% and, using Microlise software, promote efficient driving.

Ian Kirkwood, Microlise Group’s Head of New Business, said: “We are excited to partner with McCulla, a company renowned for its commitment to excellence in logistics. Our comprehensive solutions will empower McCulla to streamline its operations, at the same time enhancing its service quality and ensuring both safety and compliance.”

Brian Beattie, McCulla’s Operations Director, added: “After identifying at Senior Management level the need to further develop the technology solution to run our ever expanding fleet and keep us at the leading edge of innovation, Microlise were soon identified as the ideal company to partner with.

“We have been very impressed with the Group’s onboarding process and the level of training and customer care we’ve received throughout the implementation phase.

“I look forward to using the advanced analysis and detailed information Microlise will provide us with to identify and reduce waste, increase our efficiency in fleet management and driver utilisation.”

Mazars, the audit, tax, and advisory firm, and FORVIS, the eighth largest public accounting firm in the United States, will create a new, top 10 global network.

As a result of this global network, Mazars in the East Midlands will benefit from collaboration with, and greater access to, specialist US expertise.

The network will operate under a single brand worldwide, Forvis Mazars. With around €4.7bn ($5bn) in revenue, Forvis Mazars will be a new entrant in the top 10 global network rankings.

Both network members will remain owned by their current respective partnerships.

Steve English, Office Managing Partner, Mazars in the East Midlands, said: “We are incredibly excited to be part of this global network and look forward to the opportunities it will offer us and our clients.

“Through collaboration with our new colleagues and greater access to specialist expertise in the US, we will be able to enhance our offering and service for our clients, especially those with US and international needs. We look forward to working closely with them on future opportunities and the successes we will enjoy together.”

“I am really delighted that Mazars and FORVIS have taken this transformational step and am excited about the opportunities it presents for both firms in serving our clients and supporting our people,” says Hervé Hélias, Chairman of the Executive Board, Mazars Group.

“We’re proud to bring a pioneering new network model to our industry and are excited to continue this journey together. At Mazars, we are committed to helping our clients confidently build and grow their businesses, and forming this two-firm network with FORVIS complements our existing international integrated partnership and significantly advances Mazars’ international strategy.

“We are proud to offer our clients the strength of our international integrated partnership in 100 countries and the benefits of FORVIS’ large national partnership in the U.S. who truly works as one firm across the U.S. It gives us the scale and expanded presence that we have been striving for in the U.S. and marks us out as a top 10 global network with extensive scale and coverage.”

In the dynamic business world, operational efficiency is the key to unlocking significant cost savings. However, the landscape is often cluttered with inefficiencies that impede progress and drain valuable resources. This concise guide will explore the journey from identifying inefficiencies to implementing streamlined business processes that result in tangible cost savings. Unravelling inefficiency Think of your business as a well-oiled machine, with each department playing a critical role in its smooth functioning. Inefficiencies are like clogs in the gears, leading to wasted time, resources, and, ultimately, unnecessary expenses. These inefficiencies can manifest in various forms, from redundant workflows to communication bottlenecks – a widespread problem – and outdated technologies, disrupting the seamless operation of the business. Identifying inefficiencies: a systematic approach The first step in streamlining business processes is a meticulous audit of your workflows. Engage with your team to understand their challenges and identify obstacles in day-to-day operations. Pinpointing inefficiencies requires a critical examination of existing processes and a willingness to question established norms. Communication challenges: addressing the issues Communication breakdowns are a common source of inefficiency within organisations. Messages lost in translation, delayed responses, and misaligned objectives can lead to costly errors. Streamlining communication channels, fostering transparency, and leveraging collaboration tools can significantly improve the flow of information across the organisation. Leveraging employee expertise: an internal source of efficiency Within the intricate machinery of your business, your employees are the engineers and operators who understand the nuances of day-to-day operations. Harnessing their expertise is a powerful tool in identifying and rectifying inefficiencies. Regular training programs, open communication channels, and a culture that values continuous improvement can unlock the potential within your workforce to contribute to streamlined processes. Recognising and utilising internal knowledge fosters a sense of ownership and promotes a collective effort toward operational efficiency. Outsourced financial teams: a strategic approach to efficiency One of the most impactful ways to streamline financial processes is by leveraging the expertise of an outsourced financial team. A partner like Price Bailey, with its specialised financial services, can bring a wealth of experience to the table. From managing complex financial tasks to ensuring regulatory compliance, the benefits of an outsourced finance team are many and diverse. Arguably the biggest advantage is the way they allow businesses to focus on their core competencies. This strategic approach improves efficiency in financial operations and contributes to significant cost savings by eliminating the need for an extensive in-house finance team. Outsourced financial teams are equipped to handle tasks such as bookkeeping, tax compliance, and financial analysis with precision and efficiency. Their specialised knowledge ensures that financial processes are streamlined and optimised for maximum cost-effectiveness. By entrusting these critical functions to experts, businesses can navigate the intricate financial waters with confidence, knowing that their financial ship is in capable hands. Continuous improvement: nurturing an adaptive culture Streamlining business processes is not a one-time endeavour; it’s a continuous journey of improvement. Cultivate a workplace culture that embraces change and values ongoing refinement of processes. Regularly review performance metrics, gather feedback from employees and customers, and stay abreast of industry trends. This proactive approach ensures that your business remains agile and responsive to evolving market dynamics. By nurturing an adaptive culture, you empower your team to identify and address inefficiencies in real-time, creating a resilient and forward-thinking organisation. Investing in technology for long-term efficiency gains Technology serves as the backbone of modern business operations, and investing in the right tools can yield substantial efficiency gains. Whether it’s adopting advanced project management software, customer relationship management systems, or automation tools, technology can streamline processes across various departments. By reducing manual workload, minimising errors, and enhancing collaboration, these technological investments contribute to both short-term efficiency improvements and long-term cost savings. Regularly assess the technological landscape to stay abreast of innovations that can propel your business toward greater operational efficiency and financial success. Data-driven decision making: precision in operations In the realm of business, data serves as a critical navigator, offering insights into performance metrics, customer feedback, and market trends. Implementing data-driven decision-making processes ensures that every adjustment is purposeful and contributes to long-term cost savings. Ripple effect: cost savings across operations As you streamline business processes, a ripple effect occurs, influencing every aspect of your operation. Reduced lead times in production, faster response times in customer service, and a more agile approach to market changes all contribute to significant cost savings. The efficiency gained in one area positively impacts the entire business, creating a holistic effect on the bottom line. Final thoughts: toward sustainable success In the expansive landscape of business, streamlining processes is not merely a way to operate efficiently; it is the core of sustainable success. By identifying and addressing inefficiencies, businesses can save costs and position themselves as agile contenders in the market. As we move forward into an uncertain future, let streamlined processes guide your business to new horizons where efficiency and cost savings drive success.

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 Ben Slater, Chartered Financial Planner and Director at Stephen Eve Financial Planning Ltd. As a Financial Adviser, I’m often asked ‘what will stock-markets do next year’. The honest answer is I don’t have a clue, and no one does. The markets have been impacted by ‘once in a lifetime’ events each year since 2020 that anyone making predictions could not have foreseen. I’ll therefore predict how the wider economy is looking, and how this might play into stock markets. I look forward to being proved wrong in 12 months’ time! Many economic forecasts are seeing another tough year for growth across all sectors and countries, but it’s felt the ‘hard part is over’. We are likely to see inflation continuing to fall, with ‘normal rates’ expected by the end of 2024 after the post Covid, War in Ukraine and ‘Mini Budget’ shocks have passed. This also plays into the labour market, with wage inflation expected to flatten. It’s felt that most global Central Banks have eased off on interest rate hikes, with the desired goal of slowing inflation achieved. This will help people plan things like re-mortgages and savings with more ease. All of these factors should therefore see global stock markets perform positively with less volatility. Here’s hoping that we aren’t in for another ‘once in a lifetime’ event and that 2024 will be a little more dull! We tell all our clients that investing is for the long term, and we are therefore not focused on the next year too much. That said, given the flat and volatile years since 2020, we’re due a positive year and all the economic factors are heading in the right direction.