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 Sarah Parkin, director at Hollybeck.
What a 2022 it has been! In my 20 years in the mortgage industry, never have I seen such turbulence and chaos than that of the latter part of 2022.
And I believe that with interest rates continuing to rise, and property prices set to decline, 2023 will continue to have its challenges.
Experts predict a 5-7% reduction in property prices for 2023. This will stabilise a bullish property market and put the buyer back onto some equal footing after some serious bidding wars! After an increase of over 12% during 2022 for the East Midlands*, this is a welcome calming of the property market for first time buyers and those moving up the ladder.
Whilst the mortgage figures for house purchases will reduce in 2023, we expect a big increase in the ‘remortgage’ numbers. With around four million people set to come off fixed rates in 2023, it’ll be another busy year for mortgage brokers. People will be worried about their future interest rate and, as we have seen these past few months, more and more people will turn to brokers for advice.
Mortgage affordability is under pressure due to the cost of living and interest rates, with many mortgage lenders reviewing their affordability models. Customers will find that they cannot borrow as much as they could because of tighter affordability and so we expect to see higher numbers of customers sticking with their current lender, as no affordability checks are made when switching to a new rate. Lenders have shown us that they intend to reward customer loyalty with lower interest rates, which is great news for customers.
As an industry we’ve weathered many storms. There is no doubt that 2023 is going to be a tough year – our clients will be affected by many of the global issues affecting all families. We’ll keep a positive attitude, have a clear plan and work hard to come out of the other side stronger than ever.
*Source: Nationwide House Price Indicator.
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 Russell Rigby, director of commercial property specialists Rigby & Co.
Faced with a cost of living crisis, rocketing energy bills and further economic instability, it is going to be difficult to offer any cast iron predictions around any emerging trends in the commercial property market this year.
The only sector where I believe we will see spectacular growth is the flexible office space market. During 2022, more and more companies adopted hybrid working policies which drove demand in the flex workspace market, and companies using serviced offices hit a record level.
Demand for this type of space in the UK has increased by a staggering 25% in the last 12 months alone and shows no signs of slowing down.
Flex office space is no longer just the domain of start-ups and tech companies and big businesses are now rethinking their property strategies to support flexibility to help retain and attract talent.
Further economic-driven uncertainty will continue to influence office businesses keen to incorporate flex space into their workplace strategy as more and more occupiers move to a more agile dynamic way of working and I predict that this market will be the strongest performing sector in 2023.
I expect to see more and more office occupiers, aware of the tough times ahead, placing greater emphasis on team cohesion and productivity. High quality managed workspaces such as Cubo and Connect Derby create an environment and spaces that encourage staff interaction and collaboration and will continue to attract an enticing mix of businesses.
The introduction of new Government regulations this year will also see a scheme’s ECG credentials become an increasingly important factor for office occupiers.
Following a successful and record year in business, recruitment consultancy Prescient Group has announced its growth and expansion plans for the next three years.
As 2022 saw the business increase its turnover by 107% – with plans to grow this by another 96% this year – seasoned recruiters Joel Fletcher, Charlotte Churm and Ed Robinson have appointed Paul Jacobs as non-executive director to support the delivery of their strategic goals and fast growth plans.
Co-founder and director of Jump Advisory Group, Paul has more than 40 years’ experience working within the recruitment industry – successfully accelerating growth for multiple businesses – having held previous positions as Managing Director of Office Angels and LoveWorkLife Recruitment.
Within the last month the Prescient team has grown from eight recruitment professionals to 11 – with the additional of Paul and consultants Alex Payne and Craig Catley joining the Manchester office. The firm plans to expand by a further nine employees this year and is currently recruiting for three Nottingham roles – including a temps consultant, resource and delivery consultant and an internal digital marketing manager.
To accommodate the team growth, the Nottingham office has moved to a bigger space within Bridlesmith Walk – which is their third move since 2020 – and the Manchester office is also moving for a third time within Spinningfields.
Having built up a portfolio of 80 UK and international clients, Prescient Group grew its client base by 86% in 2022, in comparison to 2021. As part of its three-year plans, the company will look to expand its services across the software solutions, law, transport, financial, banking and accountancy, property, digital marketing services and energy sectors.
Director Joel Fletcher said: “Last year was a record year in business for us and as we reflect on our plans for 2023 and beyond, it’s amazing to see all that we have achieved in such a short time.
“To help us accelerate our strategy, business goals and ambitious growth plans we have appointed Paul, who has a successful track record in developing strategies to enable businesses to scale up at a fast pace.
“We set out to create and be known as a highly respected and ethical recruitment consultancy and myself, Charlotte and Ed are very proud of not only our success, but the brand and team we have built. We’re looking forward to seeing more of our vision and plans come to life this year.”
Mercia Asset Management – the capital providers to SMEs – invested over £120m in 159 companies during 2022, with 79% going to businesses outside London.
Mercia, which is based in Henley-in-Arden, invested £17.4m in 24 Midlands businesses during the year. They included Leicester-based HR tech StaffCircle, Loughborough-based rebate management platform e-bate and Marriott Drilling Group of Chesterfield.
Dr Mark Payton, CEO of Mercia, said: “Approximately 60% of the capital we manage is in venture focussed on young businesses with significant growth potential. Venture capital plays an important role in developing the industries of the future but with the majority of funding focused on London, the remaining regions of the UK continue to be underserved. Through our Venture funds and teams operating across the UK, we aim to address that gap.
“Despite the near term economic headwinds as a nation we face, we passionately believe in continuing to support new businesses and our existing portfolio. While many other funders have become more risk averse, Mercia will continue to invest throughout 2023 and we look forward to supporting many more businesses, through our national network of offices across the UK, in the year ahead.”
In 2022 Mercia also successfully exited some of its earlier investments including Sheffield-based Faradion, a world leader in sodium-ion battery technology, which was acquired for £100m by Indian conglomerate Reliance Industries.
During the year Mercia acquired Birmingham-based SME lender Frontier Development Capital (FDC) in a deal that took its assets under management to circa £1.4bn. It also opened new offices in Bristol and Hull.
East Midlands Freeport (EMF), the UK’s only inland Freeport, has appointed Tom Newman-Taylor as CEO.
Tom is an experienced senior leader in Government having latterly held positions in the Department for Levelling Up, Communities and Housing (DLUHC) and Department for Transport. He has a strong track record in delivering major commercial and strategic projects across the transport, energy and housing sectors, within and outside Government.
As a Deputy Director in the Maritime Directorate he established and ran the cross-Government Critical Freight Taskforce, preventing a catastrophic failure of international and domestic freight networks during COVID-19. This included implementing a multi-million subsidy regime for the international freight sector.
He has developed strategies for Government across housing and transport, including a long-term environmental strategy for the maritime sector as part of the Government’s Maritime 2050 Strategy. Earlier in his career he also helped deliver billion-pound Government investments into train and railway improvements.
He spent a period in industry as Commercial Projects Lead with Associated British Ports where he was responsible for establishing ABP’s port master planning programme, delivering long-term commercial and geospatial plans for ports across the country.
In announcing the appointment, EMF Chair, Nora Senior CBE, said: “We are delighted to have attracted an individual of the calibre and with the experience that Tom brings. His knowledge of Government departments and policies will be a significant advantage in allowing the Freeport to access and build on trade and innovation opportunities to the benefit of prospective occupiers on the site.”
Tom Newman-Taylor added: “I am hugely excited by the potential which EMF offers to bring growth to a strategically significant part of the UK. A successful Freeport will bring lasting benefits to the East Midlands by attracting significant new investment and creating high quality jobs for the communities who live around our sites. I cannot wait to help realise this ambition and help bring together local public and private sector partners on behalf of the East Midlands and the UK.”
Tom starts his position with EMF in March.
SPLtrack, a Leicestershire-based environmental consultancy, has been acquired by Hydrock, a British-owned integrated engineering design, energy and sustainability consultancy.
Founded in 2013 and led by Chris Beale, SPLtrack delivers real-time noise, vibration, and air quality monitoring data, supporting industries such as motorsport, live music and construction achieve strict regulatory compliance.
Ric Hampton, regional director and director of acoustics and air quality at Hydrock, said: “This is a fantastic addition to the acoustics and air quality division. We’re over the moon to have the opportunity to add such specialist expertise to our already high-performing team.
“With clients such as Silverstone and MSV circuits, we’re able to accelerate our capabilities in real-time environmental monitoring and play an important role in addressing the public health crisis and meeting new WHO guidance.”
Chris Beale, director of SPLtrack, said: “SPLtrack has taken the leap from a small but successful independent company to join the wealth of skill and experience that is Hydrock.
“The SPLtrack team are excited to work with new colleagues to unlock the strength of our technologies, the ADAhub platform, and to bring new opportunities to the group. Personally, I am delighted to be working alongside engineers that I have known for many years within a company I greatly respect.”
Car retailer Pendragon has hailed a positive fourth quarter as financial performance was slightly ahead of expectations.
In a new trading update for the year ended 31 December 2022, the Nottingham-headquartered company said a strong Q4 underlying trading performance more than offset higher operating and interest cost pressures.
The firm added that trading during the quarter was underpinned by strong volume growth in new cars, with the group delivering like-for-like volume growth of 4.6%, and outperforming the retail new car market growth of 1%. Used car volumes also grew by 5.2% on a like-for-like basis in Q4, a notable improvement on the declines seen in the third quarter.
As a result of this performance, group underlying profit before tax for the year is expected to be approximately £57m, down from £83m in 2021, but slightly ahead of market expectations.
Bill Berman, Chief Executive of Pendragon, said: “We closed out the year with a positive performance in the final quarter, which saw volume growth in both new and used vehicle sales.
“Despite the numerous challenges we have faced across our markets and in the economy at large, we performed strongly in 2022 and this shows the benefits of the improvements made across the business in recent years.
“Whilst market challenges will persist in 2023, we enter this new year with confidence and good momentum, and we look forward to making further progress against our strategic objectives.”
Last month Hedin Group abandoned its £400m takeover bid for Pendragon, due to challenging market conditions and an uncertain economic outlook.
Melton Mowbray-based sustainability specialist, Clean Air Power, is part of a consortium that has successfully secured £250,000 to deliver a major clean maritime project.
Clean Air Power is working alongside global engineering consultancy MAHLE Powertrain and the University of Nottingham, to help develop potential green propulsion systems for marine users such as the Royal National Lifeboat Institution (RNLI). The project, named HyJet, is now under way.
The funding has been secured via Innovate UK, a non-departmental public body which provides money and support to organisations to make new products and services.
The consortium will explore the use of sustainable fuels, such as green hydrogen, methanol or ammonia, that would produce zero or near zero pollutants in smaller marine engines. The RNLI has an overall fleet of 400 vessels including all-weather lifeboats and inshore rescue vessels.
Clean Air Power are specialists in decarbonised fuelling and will develop and supply the engine’s fuel injection systems, through its DigiJet range of valves and injectors.
Dan Skelton, Managing Director of Clean Air Power, said: “We are thrilled to be a partner in this successful bid, and are looking forward to working with the RNLI and the other partners to investigate potential sustainable solutions for the future. We have two decades of experience working on innovative injection and fluid control projects and are pleased to see this expertise recognised, both by our sustainability partners and the UK authorities, as we move to net zero with the marine sector.”
Innovate UK offered funding via the Clean Maritime Demonstration Competition. HyJet was one of 22 projects to win funding out of a total 45 applicants.
The HyJet project is part of the Clean Maritime Demonstration Competition Round 2 (CMDC2) which was launched in May 2022, funded by the Department for Transport and delivered in partnership with Innovate UK. As part of the CMDC2, the Department allocated over £14m to 31 projects supported by 121 organisations from across the UK to deliver feasibility studies and collaborative R&D projects in clean maritime solutions.
The CMDC2 is part of the UK Shipping Office for Reducing Emissions (UK SHORE) flagship multi-year CMDC programme. In March 2022, the Department announced the biggest government investment ever in our UK commercial maritime sector, allocating £206m to UK SHORE, a new division within the Department for Transport focused on decarbonising the maritime sector. UK SHORE is delivering a suite of interventions throughout 2022-2025 aimed at accelerating the design, manufacture and operation of UK-made clean maritime technologies and unlocking an industry-led transition to Net Zero.
Property developer, Graftongate and global investment manager, BlackRock have completed a deal for the final available unit at Leicester Distribution Park (LEDP).
The joint venture partners have completed the letting of a 150,000 sq ft distribution and logistics unit on a 10-year lease to a global transportation services provider.
Built to BREEAM ‘excellent’ standard, Unit 2 was developed as part of the final phase of the 44-acre scheme, off the A47 near Leicester city centre.
Graftongate and BlackRock carried out three phases of development at LEDP during a six-year period, creating eight Grade A logistics units totalling 715,000 sq ft.
The first phase was pre-let, with the remaining seven units speculatively built and all let within six to nine months of completion.
Established occupiers include Blanson, CCL Components, Piping Rock, Samworth Brothers, Power Towers, Company Shop Group and Leicester Tissue Company.
Colin Beasley, director at Graftongate, said: “This is an excellent letting and completes a very strong occupier line up at LEDP. We are extremely proud to have worked in partnership with BlackRock to build one of the highest quality distribution and logistics locations in the East Midlands.
“Demand at LEDP has been consistently high, even before its practical completion, which is testament to the strength of the regional market and the scheme’s superb connectivity at the heart of the UK’s distribution network.”
The letting team of M1, CBRE and Innes England acted for Graftongate and BlackRock throughout the project.
FHP has let Unit 2, Albert Martin Business Park, Kirkby Road, Sutton in Ashfield to Crytec Limited.
The unit comprises 13,702ft² of warehousing/manufacturing space close to Junction 28 of the M1.
Anthony Barrowcliffe of FHP said: “I am really pleased with this letting. Crytec Limited are a great addition to this estate with ample room to aid their rapid expansion.
“We have lots of exciting opportunities still on the Albert Martin Business Park and I welcome any conversations with any live requirements within the East Midlands market.”
Matt Cryans of Crytec Limited said: “We needed additional warehousing at short notice and Anthony was extremely quick in getting us the right space.”
PwC has appointed Alex Hudson as the new market senior partner for East Midlands.
A tax partner, Alex has been with the firm since 2002 and worked in the East Midlands office for the duration of her career. Alex will oversee the strategy and direction for PwC in the East Midlands and the wider region. The role includes connecting with local businesses and communities to support talent, growth ambitions and place and purpose within the city.
Speaking about her new role, Alex said: “I’ve spent my whole PwC career in the East Midlands and recognise the value of the talent and opportunities here that benefit the firm nationally. The office in Donnington Court has achieved fantastic growth already, and the team works on some of our biggest national clients and has been involved in some landmark wins for the firm globally.
“I’m committed to maintaining and enhancing our fantastic office culture to create the best experience in which our people can develop, flourish and have fun.”
Matthew Hammond, PwC UK Midlands regional market leader, said: “It’s fantastic to have Alex on board as our new senior partner for East Midlands. She will play a pivotal role in achieving our goals across the region. This includes our growth ambitions, as well as focussing on culture, talent and how we can support the local communities in which we operate.”
Peak NDT Ltd has been honoured with two prestigious Queen’s Awards for Enterprise. The 2022 Awards were officially presented by Mrs Elizabeth Fothergill, CBE, HM Lord-Lieutenant of Derbyshire, during a celebration event which was held at The River Mill in Darley Abbey on Friday 20 January 2023. Mrs. Fothergill was accompanied by Mr. Peter Ellse, DL.
The event was attended by around 40 guests made up of Peak NDT employees, alongside a number of the firm’s suppliers and clients including Derbyshire’s own Rolls Royce and Transform NDT. Also in attendance was the Mayor of Derby, Councillor Robin Wood and Councillor David Wilson, chairman of Derbyshire County Council.
Peak NDT was chosen to receive a Queen’s Award in both the Innovation and International Trade categories and the company, which is based in Jubilee Business Park, is one of only seven firms throughout the whole of the UK to achieve double award status.
Established in 1995, the company is a designer and manufacturer of high-performance multi-channel conventional and phased-array ultrasonic instrumentation used for non-destructive testing (NDT) in a wide range of advanced engineering sectors including Nuclear Power Generation, Aerospace, Oil & Gas and Renewables.
For many years, Peak NDT’s MicroPulse technology has been at the forefront of ultrasonic NDT technique development and used by leading research organisations. The company was recognised in the Innovation category for the development of a flexible, compact, lightweight and enclosed version of their premium instrument system range which incorporates novel solutions to achieve high performance and low power operation.
The company was recognised in the International Trade category for outstanding short term growth in overseas sales over the last three years. Its main markets are the US, Canada, China, Germany, Hong Kong and Switzerland and annual overseas sales have doubled over the past three years, growing from 58% to 71% of total turnover. New customers have been established in most regions of the world, with recent sales channels being developed in India, Japan and Singapore, and new developments mean sales are set to increase significantly per annum, mostly overseas.
Peak NDT’s Managing Director, Simon Parke, said: “We are delighted to have been selected for these awards for Innovation and International Trade. They recognise a long history of innovation and export sales at the company and are a fantastic endorsement of the achievements that the whole team has delivered over many years.
“This acknowledgement will help us to continue to develop our technology and export sales for our customers around the world and I would like to personally thank everyone who has worked hard to help Peak NDT reach this outstanding achievement.”
Now in its 56th year, the Queen’s Awards for Enterprise are the most prestigious business awards in the country, with winning businesses able to use the esteemed Queen’s Awards Emblem for the next five years.
Architects Lathams has secured planning permission to transform a building in Derby steeped in rail history into apartments.
Derby City Council’s planning committee recently approved plans to turn part of the former Midlands Railway Institute, in Railway Terrace, into 31 apartments.
The building, opposite Derby Midland Station, is currently home to The Waterfall pub, which will remain open, but reduce in size to make way for the new apartments.
In a statement, Lathams, which applied for planning permission on behalf of a private developer, said: “We’re delighted to announce that we received planning approval for a 31-apartment development in the heart of Derby at the locally listed Midland Railway Institute.
“The project will bring a semi-derelict heritage asset back into use and conserve Derby’s historic railway character.”
The property first opened as the home of the Midland Railway Institute in 1895.
At the time, the organisation had around 2,300 members and served as a cultural and educational centre for the Midland Railway workers.
However, according to the planning application, parts of the building have since fallen into a state of disrepair.
The new-look building will feature the existing pub, 15 one-bed apartments, 15 two-bed apartments and another two-bed flat to accommodate four people. A new courtyard will also be created.
The scheme sits within the Railway Conservation Area, where the city council itself has plans to make improvements.
Back in December, its Heritage and Conservation Committee discussed plans to improve the streets surrounding Derby Midland Station in a bid to make it more pedestrian and cyclist-friendly.
This includes refurbished roads, widened and repaved footpaths, new street lighting and bollards and a new look for the war memorial structure.
Part of the works would include improvements to the junction between Railway Terrace, Station Approach and Siddals Road, including wider footpaths and carriageway resurfacing.
Lincolnshire-based commercial joinery company APSS has delivered six new lockable shredding cupboards to Age UK Lincoln & South Lincolnshire, in partnership with Lindap, saving the charity around £1,500 a year in compliant disposal costs.
Age UK Lincoln & South Lincolnshire had been looking for small ways to reduce costs to make a big difference during the challenging climate and identified their secure waste shredder units as an item to look at. The secure units allow GDPR guidelines to be complied with and allow for the safe disposal of documentation. It had approached Lincoln-based charity Lindap to help. Lindap specialises in designing and making special equipment for people with disabilities when there is no commercial product available.
APSS design director, Stuart Wall, also a volunteer at Lindap, took the request and made it a reality.
APSS has an onsite joinery workshop that creates bespoke storage and office furniture which happily compliments the commercial refurbishment, design, and construction side of the business.
The company assisted with the design and production to create the six bespoke shredding units for Age UK’s Lincoln City Centre branch.
Stuart Wall said: “It is great to help out local charities in this way and work for a charity that supports the needs of local people and the community. It is wonderful to have the support of APSS with these projects.”
Tom Ellis, technical services and facilities manager for Age UK, said: “Everyone across the county is looking for ways to tighten their belt and help save those pennies where they can. Being a local, independent charity, we take great pride in using every penny provided to give as much to our local, older community as we possibly can. It’s about making a direct difference for people to live better.”
The CEO of NAHL, the Kettering-headquartered company behind the National Accident Helpline brand, is “pleased” with the financial performance of the group in its latest financial year, as the firm returned to growth.
According to a new trading update for the year ended 31 December 2022, the marketing and services business, focused on the UK consumer legal market, is expecting to report revenues of £41.5m, up from £38.9m in the year prior.
Profit before tax meanwhile is expected to be approximately £0.6m, growing from £0.2m.
James Saralis, CEO of NAHL, said: “Despite the well-documented headwinds across the economy, I’m really pleased with the financial performance of the group during the year. NAHL returned to growth, with revenues increasing by 7% and operating profit by 14%, and we continued to invest for the future whilst significantly reducing our debt, which exited 2022 at £13.3m.
“Both our Consumer Legal Services and Critical Care divisions advanced their strategies, with our Personal Injury business returning to profit. This is an important milestone in our plan to build a more sustainable and profitable business in the medium-term.
“Looking ahead, whilst the personal injury market remains subdued, we are cautiously optimistic that the investments we are making leave us well placed to continue our growth and strong cash generation in 2023. Finally, I would like to take this opportunity to thank all of our people who worked tirelessly throughout the year to strive for the best results for all of our stakeholders.”
Van Elle, the Nottinghamshire-headquartered ground engineering contractor, has hailed record half year revenue in its interim results for the six months ended 31 October 2022.
Van Elle says all its divisions operated with high activity levels throughout the period.
Revenue grew to £80.8m from £60.1m in the same period of the year prior, while pre-tax profits rose from £1.9m to £3.3m. EBITDA increased to £6.4m from £4.8m.
Mark Cutler, Chief Executive, said: “Strong trading momentum was sustained throughout the period despite a challenging macro environment. All divisions operated at high activity levels throughout, with significantly increased revenues delivered in Housing and General Piling, Rail activity in line with expectations and the group as a whole reporting record revenues.
“The group is benefitting from improved future work visibility, primarily due to being appointed to several strategic frameworks in highways and rail, all of which require an integrated delivery approach across our specialist capabilities.
“Market conditions in the short term, especially in respect of new build housing, are expected to be more challenging, however Van Elle is well positioned to benefit from opportunities across its breadth of end markets and diverse customer base. The Board therefore remains confident in the delivery of our medium-term strategy, and in achieving market expectations for the full year.”
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 toPaul Morris, development director at St James Securities.
Whilst there are a lot of reasons for doom and gloom at present, I prefer to start a new year on a positive note.
Although 2023 is set to be another challenging year for the economy with the cost of living crisis and record inflation, on the demand side a number of sectors are currently bucking the trend, both locally and nationally.
There continues to be a major housing shortage and this will result in significant growth in the Build to Rent (BTR) sector, which will go from strength to strength in 2023.
St James Securities are currently considering future phases of BTR at our award-winning Becketwell Derby scheme, which will go some way to meeting the demand for high quality rented accommodation in the city centre.
The student accommodation market also remains pretty strong and I believe the demand for purpose-built student accommodation will continue to increase over the next few years as more young people choose to go to University.
The office market is set to see a strong focus on energy efficiency as the drive towards achieving carbon zero continues. By 2030, all non-domestic rented buildings will need to meet EPC Band B, which is a substantial raising of the bar. Buildings moving towards carbon zero will lease well and I hope this will result in an overall improvement in the quality of rented accommodation.
The pandemic has strengthened the demand for flexible office space, and this is set to continue this year and beyond, with hybrid working now part of the fabric of the workplace.
As leases come up for renewal, more and more businesses are likely to reassess their accommodation strategies and consider a move towards flexible office space.
Employers need to make it attractive for employees to come back to the office and they will need to offer a great working environment in order to attract the best calibre of staff.
I believe the hotel sector will remain reasonably resilient. In Derby there is latent demand for an upper mid-scale four-star hotel. We have plans to meet this demand with the introduction of a hotel into a future phase of the Becketwell scheme.
Overall, the general outlook is definitely one of caution. We as developers have been through challenges like this before in the early 1990’s, 2002 and 2007-2010 and are in it for the long haul.
As we all know, business is full of challenges and we just need to work through any setbacks and find different ways to achieve our aims.
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 John Crockett, health and safety manager at Acorn Safety Services, an independent health and safety consultancy based in Northampton.
With businesses across the UK facing the threat of recession and economic uncertainty fears are growing that some may choose to cut corners when it comes to keeping on top of their health and safety obligations.
In the past year, we have already seen a steep increase in the number of businesses being fined for not carrying out regular surveys and assessments, something I believe we could see continue well into 2023 and beyond.
But turning your back on health and safety is the worst thing you can do. In fact, being proactive and engaging with a health and safety expert at the very beginning of your project could be the best decision you ever make.
Take asbestos for example. If you think it’s a problem from the past, think again.
Despite being banned from all new buildings since 1999, a report published by the Asbestos Testing and Consultancy Association (ATaC) has highlighted the enormous scale of the asbestos problem currently facing the UK. Of more than 128,000 buildings surveyed between October 2021 and March 2022, a staggering 78% were found to contain asbestos. In total more than 700,000 individual items of asbestos were found and 71% of those were damaged, posing a significant threat to health.
On some construction sites, building work has begun without an asbestos survey even taking place, putting everyone on site at risk of developing deadly mesothelioma.
While next year will undoubtedly be challenging for many businesses, health and safety in all its forms should remain right at the top of everyone’s agenda.
Despite gloomy economic forecasts, business leaders in the East Midlands are optimistic about their growth opportunities for the year ahead.
According to data from Grant Thornton UK LLP’s latest Business Outlook Tracker, mid-market optimism in the East Midlands has rebounded across all indicators monitored:
Revenue growth expectations have risen +36 percentage points (pp) since October
Profit growth expectations are rising – increasing +24pp since October
Economic optimism has risen +22pp since October
The results indicate that businesses are confident they can weather this economic downturn. Optimism regarding their funding position has risen +20pp since October. Almost three quarters (74%) are also confident that they have sufficient working capital to manage the impact of a recession for six months or more.
The top concerns for the region’s mid-market heading into 2023 are the rising tax burden and wage increases, both of which they feel sufficiently prepared to manage.
The mid-market continues to struggle to attract and retain talent, with 64% of respondents experiencing unusually high attrition rates. Over half (62%) are also struggling to recruit for open roles.
Employers are pulling out all the stops in a bid to remain competitive. Over three quarters of respondents (84%) are planning to offer their people a pay rise in line with, or above, inflation, while 76% are also reviewing their employee benefits package to make it more competitive. Almost half (44%) are also planning to invest more in skills development over the next six months.
The research also finds that the mid-market is starting to look for ways to reduce its reliance on people. Over three quarters (76%) agree that they are increasing their use of automation and digital.
James Brown, partner and practice leader at Grant Thornton UK LLP, said: “The market’s positivity levels are surprisingly at odds with the forecasts from the Bank of England and the government. Optimism levels have rebounded significantly since the shock and uncertainty from October’s mini-Budget plummeted mid-market optimism to some of the lowest recorded in our Tracker.
“The certainty provided since last October seems to have reassured the market. Even though we know the economy is not likely to significantly improve anytime soon, it is perhaps better to know what is happening even if the news is bad rather than grappling with surprises that can’t be planned for.
“While a potential recession seems to be looming, our survey shows that the labour market remains a concern. Employers are trying to improve efficiency and productivity, while also managing cost levels, which is demonstrated by high investments in technology and people.
“Having seen first-hand how our region responded to the challenges of recent years with determination, agility, enterprise and innovation, I am confident that businesses in the East Midlands will find a way to survive and thrive during the months ahead. Given the encouragingly high optimism levels, it would seem that the local market shares this confidence in its prospects for 2023.”
Modular housing company ilke Homes has started work to deliver 146 energy-efficient, affordable homes at the Glenvale Park development in Wellingborough, as part of Man GPM’s community housing focus.
The announcement marks the second time ilke Homes and Man GPM have worked together to deliver an affordable-led scheme, having struck a £31 million deal in December 2020 for a 226-home affordable housing development in Grantham, Lincolnshire.
The 7.8-acre site forms part of phase one at Glenvale Park, which once complete, will deliver a total of 3,000 homes, over 200 acres of parkland, a new local centre and two new schools.
The wider masterplan for Glenvale Park is expected to generate more than 3,000 jobs and £1.4 billion in economic impact for the area – with £2 of social value generated for every £1 spent during construction.
Having received approval from North Northamptonshire Council, ilke Homes has started work delivering a mix of multi-tenure single family houses, apartments and maisonettes, ranging in sizes from one to four bedrooms homes.
The homes – which are due for completion in 2024 – are being manufactured offsite at ilke Homes’ 25,000 sq ft factory in North Yorkshire, where precision-engineering techniques enable the company to deliver highly sustainable modular homes.
ilke Homes can therefore commit to delivering energy-efficient housing, with a likely EPC rating of A, putting the properties in the top five percent nationally for energy efficiency, with the knock-on effect of saving consumers hundreds of pounds a year on energy bills.
Thanks to most of the build stage taking place offsite, traffic disruption to the local community will be kept to a minimum.
Tom Heathcote, executive director of development at ilke Homes, said: “This scheme is testament to the continued confidence our customers have in our product, and we’ve enjoyed working with local planning officials and other stakeholders throughout the planning process and into the construction phase. After the success of our first joint scheme in Lincolnshire, we’re delighted Man Group have shown the confidence in us to deliver a second sustainable urban development scheme together.
“Through our accredited modular methods of delivery, we can ensure the scheme aligns with Man Group’s own stringent ESG criteria, while also providing much-needed, energy-efficient and well-designed homes for the local community.”
Shamez Alibhai, Managing Director and head of Community Housing at Man GPM, said: “Our partnership with ilke Homes has demonstrated that it is possible to address the UK’s housing crisis with affordable, energy-efficient homes. The development at Wellingborough is an exciting demonstration of how like-minded partners can deliver homes that address the housing challenges of families. ilke’s track record on housing delivery and its commitment to innovation fits naturally with our focus on social and environmental responsible investment.”
Mark Best, director of Midtown Capital Ltd, managing partner of Glenvale Park LLP, said: “As a leading provider of sustainable modular properties, we’re delighted to welcome ilke Homes and Man Group to Glenvale Park. With the range of properties and mix of tenures available, the new homes will be an exciting new offering to our growing community.
“With hundreds of families calling Glenvale Park home, there is already a strong sense of community spirit within the development. We can’t wait to see that grow further, as we welcome new residents into their brand new ilke homes.”
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