Friday, April 25, 2025

Output volumes fall in final quarter of 2024 as growth expectations weaken further

Tess Egginton
-
0
Output volumes fall in final quarter of 2024 as growth expectations weaken further
Manufacturing output volumes fell at the fastest pace since mid-2020 in the quarter to December, according to the CBI’s latest Industrial Trends Survey (ITS). Manufacturers expect another steep drop in output over the next three months. Total and export order books deteriorated sharply relative to last month, with the volume of total orders falling to its weakest since late 2020. Against a backdrop of weak demand, manufacturers’ stocks of finished goods remain relatively high, at levels last seen during the early stages of the Covid pandemic. Meanwhile, expectations for selling price inflation picked up noticeably in December, with the rate of selling price inflation during the next three months expected to be comfortably above the long-run average. The survey, based on the responses of 331 manufacturers, found:
  • Output volumes fell in the three months to December (weighted balance of -25%, from -12% in the quarter to November), the steepest decline since August 2020. Manufacturers expect output to fall again in the quarter to March 2025 (-31%), with expectations weaker than at any time since May 2020.
  • Output decreased in 15 out of 17 sub-sectors in the three months to December, with the significant fall driven by the furniture & upholstery, glass & ceramics and motor vehicles & transport equipment sub-sectors.
  • Total order books were reported as below “normal” and deteriorated markedly relative to November (-40% from -19%). The level of order books in December was the weakest since November 2020 (and far below the long run average of -13%).
  • Export order books were also below “normal” in December (-37% from -27% last month). This was also below the long-run average (-18%).
  • Expectations for average selling price inflation picked up in the quarter to December (+23% from +11% in November), with the balance of manufacturers expecting prices in the quarter ahead to rise above the long-run average (+7%).
  • Stocks of finished goods were reported as more than “adequate” in December and to a similar extent as in November (+20% from +21%), which was the highest reading since August 2020. Stock adequacy stands well above the long-run average (+12%).
Ben Jones, CBI Lead Economist, said: “Manufacturing output appears to have contracted during the fourth quarter, with conditions across the sector looking more challenging than at any time since the Covid pandemic in 2020. “Manufacturers are facing a perfect storm of weakening external demand on the one hand, amid political instability in some key European markets and uncertainty over US trade policy. And on the other hand, domestic business confidence has collapsed in the wake of the Budget, which has increased costs and led to widespread reports of project cancellations and falling orders. “Manufacturers are heading into 2025 with no expectation of any near-term improvement. As firms continue to work through the challenges of the Budget, the Government could help support business confidence by accelerating measures that could restore some headroom for investment, such as delivering flexibility to the Apprenticeship Levy or signalling a faster timetable to reform business rates. “And working in full partnership with boardrooms to develop a long-term industrial strategy would send the right signals to the markets and investors that the UK is a trusted and competitive destination to do business.”

Nursery group celebrates following national award win

Tess Egginton
-
0
Nursery group celebrates following national award win
Storal, a nursery group which operates 27 nurseries across the East Midlands, has been named ‘Nursery Group of the Year (Medium)’ at the 2024 Nursery Management Today Awards (NMT Awards). This is the second year in a row that Storal has won the sought-after Nursery Group of the Year Award, which is testament to the consistency and hard work of its nursery teams and the high-quality care and early education it provides. The company saw off strong competition from rival companies across the country to win the award which recognises and celebrates the achievement of leading nursery providers across the UK. Storal, which recently expanded its presence in the region following the acquisition of Long Eaton based Children 1st Day Nurseries, operates nurseries in Woodville (Derbyshire), Stamford, Lincoln, Sutton in Ashfield, Bilborough, Toton, Plumtree, Newark, Grantham, Chesterfield, Clowne, Long Eaton, Syston, Hathern, Shepshed, Birstall and Leicester city centre. All nurseries are judged to be either Good or Outstanding by Ofsted. On receiving the award, Sarah Mackenzie, CEO of Storal, said: “This incredible achievement is a reflection of the care, dedication, and expertise of our amazing teams across all our nurseries. We are focused on providing the best possible nursery provision for our children, and that wouldn’t be possible without the commitment of our teams. It is a moment of huge pride for everyone associated with Storal.”

Downturn in East Midlands business confidence

Tess Egginton
-
0
Downturn in East Midlands business confidence
Falling sales, orders, investment and profit expectation have been reported by the region’s businesses in East Midlands Chamber’s latest Quarterly Economic Survey. Confidence in making profit has dropped 38% over the last quarter and turnover expectation is down 31%. A minority of East Midlands businesses (36%) said they expect profit to improve over the next three months. 30% of businesses in the Q4 survey reported a drop in UK sales, up from 23% in the last Quarterly Economic Survey, while more than a third (34%) saw a drop in UK orders. Internationally, the story is similar with 27% of businesses having experienced a drop in overseas sales and 33% reporting a drop in orders. The figures have risen sharply since the last Quarterly Economic Survey was published. On price pressure, the majority of businesses (56%) said they expect to increase their prices, with labour costs cited as the main driver. On recruitment, most businesses that attempted to recruit (72%) struggled to find the right candidate, while there was a 9% drop over the last quarter in those that had attempted to recruit. Concern over corporate taxation, inflation and business rates have risen to the top of worries reported by the region’s businesses. The survey, which took place over a 4-week period in November, measures a combination of sentiment and measurable data and is a key indicator of challenges and opportunities faced by businesses across multiple sectors, highlighting their concerns and the level of confidence they have for the months ahead. East Midlands Chamber Director of Policy and Insight Richard Blackmore said: “These findings paint a difficult picture for East Midlands businesses right across the board – from sales to price pressure, recruitment to the level of confidence in profit and turnover, with all key indicators showing notable decline. “If we break down what’s going on, it’s clear several headwinds are at work, impacting expectations and experience. Weakness in demand is driving a drop in sales and orders in the UK and internationally, while we’re seeing a pattern of protective measures creeping in as businesses seek to contain their cost base. “That’s demonstrated by things like a pullback on intended investment in plant, machinery and training. “This stall in investment intention is further underlined by a dip in recruitment. On one hand we have the skills gap making hiring the right candidate difficult, but seeing a 9% drop in businesses attempting to recruit in the first place is a concern. “That suggests businesses are, for now, hitting the pause button on hiring as another protective layer, but what we don’t know, at this stage, is whether this will be a sustained trend going forward or is a knee-jerk following the Autumn Budget. “We heard NI contributions for businesses would rise to 15% from next April, the threshold for payment drop and the national minimum wage increase. The emerging picture in the East Midlands is a widespread tightening of the belt and it’s telling that labour costs were reported as the greatest force behind price pressure. “There are signs of resilience within the findings of the survey, with 60% of businesses expecting to hold steady on investment intentions in plant, machinery and equipment, for example, but with the overarching picture showing the extent of downturn in confidence and experience across so many measures, it’s absolutely essential that political leaders prioritise supportive measures for business in the East Midlands.”

Budget fallout and rising costs force up company insolvencies

Tess Egginton
-
0
Budget fallout and rising costs force up company insolvencies
Fallout from the Budget and rising overheads have driven up this month’s corporate insolvency figures, with struggling businesses set to face further challenges in 2025 when wage costs increase. This is according to the Midlands branch of insolvency and restructuring body R3 and follows latest statistics published by the Insolvency Service which show that corporate insolvencies in England and Wales increased by 12.8% in November, with numbers rising from 1,743 in October to 1,966 last month. R3 Midlands Chair Stephen Rome, a partner at law firm Penningtons Manches Cooper in the region, said: “These figures remain significantly higher than those seen both during the COVID-19 pandemic and between 2014 and 2019. “After years of rising outgoings and falling margins, businesses are facing further increases in wages as a result of the Budget, and this could be an expense too far for some firms. “R3 Midlands members are telling us that enquiries have increased over the last month, with business owners looking to restructure or have early conversations about their financial concerns or their insolvency options ahead of the new year. “This kind of activity won’t be reflected in the current set of insolvency statistics, but it provides an insight into the mood, challenges and concerns of the local business community as we come to the end of another difficult twelve months. “As we head towards 2025, we urge anyone who is worried about finances to seek advice as soon as they possibly can. Discussions with a qualified advisor at the earliest possible opportunity will provide more options for improving the situation and more time to take a decision about the next step. “Most R3 members will give prospective clients a free initial consultation so they can learn more about their circumstances and outline any potential solutions for improving them.”

White paper unveiled to drive £20bn green energy transformation in the Midlands

Tess Egginton
-
0
White paper unveiled to drive £20bn green energy transformation in the Midlands
The Midlands Engine Partnership has launched the Midlands Energy Security White Paper, a  vision and roadmap for delivering secure, low-carbon energy and unlocking economic growth across the region. Home to a quarter of the UK’s fossil fuel generation capacity, a high concentration of energy-intensive industries and with England’s highest regional rate of fuel poverty, the Midlands epitomises both the challenges and opportunities of the clean energy transition. Drawing on the region’s energy innovation ecosystem, manufacturing expertise and cutting-edge research, the White Paper highlights how the Midlands is leading the UK’s journey to energy resilience. With £20bn of investment potential and the opportunity to create nearly 200,000 green jobs by 2041, the Midlands is central to achieving the Government’s ambition to become a clean energy superpower. The White Paper underscores the critical role of the Midlands in delivering the clean energy transition, decarbonising its industrial clusters, and leveraging its energy and advanced manufacturing expertise and research excellence to meet national net zero objectives. It sets out the opportunities for investment, job creation and innovation, building on the Midlands’ position as home to 21% of the UK’s electricity generation capacity. Key highlights include:
  • Innovative projects driving resilience: Projects such as Nottinghamshire’s STEP fusion programme, Coventry’s Greenpower Park and Humber 2030 Vision showcase the Midlands’ role in pioneering clean energy technologies, from fusion energy to battery innovation, carbon capture and hydrogen power.
  • Integrated energy system planning: The region is driving forward place-based,  ‘whole-system’ energy planning, developing Local Area Energy Plans and initiatives such as Project PRIDE. These efforts ensure energy supply and demand are better integrated, supporting businesses and communities.
  • A green jobs revolution: By 2041, the Midlands could achieve nearly 200,000 new green jobs, including in low carbon hydrogen, clean energy and smart energy systems clusters.
The White Paper emphasises how the Midlands is integrating local and national priorities, from industrial decarbonisation to community-led solutions. Projects across the region are demonstrating the diverse mix of solutions required including new financing mechanisms, including a Midlands Green Bond, and industry-led skills initiatives. Sir John Peace, Chairman of the Midlands Engine, said: “The Midlands has the ability, ambition and assets to drive the UK’s clean energy future. This White Paper showcases how our region can lead in creating secure, sustainable power while delivering economic growth and high-quality jobs. Together, we can honour the Midlands’ legacy of innovation and secure a brighter future for generations to come.” Lord Ravensdale, Chair of the Midlands Energy Security Taskforce, said: “Through collaboration, the Midlands will drive the UK’s clean energy transformation. This White Paper is a bold step towards building a sustainable energy system that benefits businesses, communities, and future generations.” Claire Ward, Mayor of the East Midlands, said: “The East Midlands is leading the way in the clean energy revolution, from STEP Fusion in West Burton to cutting-edge hydrogen and battery technology. This White Paper sets out a bold vision to harness our region’s innovation and industrial strength, creating well-paid green jobs and sustainable growth.”

Shoe Zone makes profit warning amidst “very challenging trading conditions”

Tess Egginton
-
0
Shoe Zone makes profit warning amidst “very challenging trading conditions”

Shoe Zone has issued a profit warning following the first two months of its financial year and the first half of December, in which it says it has experienced “very challenging trading conditions.”

This includes weakening consumer confidence and unseasonal weather, both of which have decreased revenue and profit.

The company shared: “Consumer confidence has weakened further following the Government’s budget in October 2024, and as a result of this budget, the Company will also incur significant additional costs due to the increases in National Insurance and the National Living Wage. “These additional costs have resulted in the planned closure of a number of stores that have now become unviable. The combination of the above will have a significant impact on our full year figures.”

The business now expects adjusted profit before tax for the financial year ending 27 September 2025 to be not less than £5m, down from previous expectations of £10m.

Step forward for Buxton town centre regeneration

Tess Egginton
-
0
Step forward for Buxton town centre regeneration

Plans to regenerate Buxton town centre have moved a significant step forward after High Peak Borough Council’s Executive agreed to appoint Capital&Centric as the development partner for Revitalising Buxton.

It means work can now start in earnest on the £100m plus scheme to redevelop The Springs shopping centre, Spring Gardens and Station Approach; a scheme that became possible after the Council received £6.6m of Future High Street Fund money from the Government that it used to buy the shopping centre in 2022. The Council has added £4m of its own funds to the scheme. Councillors made their decision following a rigorous selection process, and after hearing the results of a community engagement programme held earlier this year which showed a desire for a more resilient town centre with leisure, hospitality, public space, new venues and much-needed new homes. Capital&Centric plans to repurpose the 1980s indoor shopping centre into a vibrant mix of hundreds of new homes, workspaces and independent shops, bars and cafes. The vision is to give pedestrians easy access through the site from Spring Gardens up to the rail station, while also seeking to open up the River Wye, creating green public spaces for al fresco food, drinks and events. Capital&Centric will take forward the results of the community engagement and begin working up the scheme in advance of a planning application to be submitted in about 10 months’ time. The Manchester-based developer will oversee the development and construction phases subject to the application being approved. Leader of the Council, Councillor Anthony McKeown said: “Over the last few years we have gathered hundreds of ideas from the local community for the future of this part of the town. In order to move these ideas to reality we are thrilled to announce the next steps for this transformational project for Buxton by announcing a development partner. “Capital&Centric has presented a confident vision, aligned with our aspirations for this site. We now want everyone to have the opportunity to help shape the proposals through further consultation and engagement next year.” Councillor Damien Greenhalgh, Deputy Leader and Executive Councillor for Regeneration, Tourism and Leisure, said: “We promised to revitalise Buxton town centre and that’s what we’re doing. “As regeneration projects go, this is huge for Buxton and presents an enormous opportunity to diversify what we have in the town centre, whilst at the same time ensuring what is proposed compliments the great assets we already have here that are cherished by residents and visitors alike. “We look forward to working with our new development partner as we work together on this bold and exciting scheme we aim to have completed in 2029.” Capital&Centric’s recent projects include a new award-winning garden neighbourhood at Kampus in Manchester, the re-booting of Farnworth town centre in Bolton, and creating a new community at the Goods Yard in Stoke-on-Trent. Managing Director of Capital&Centric, John Moffat, said: “Surrounded by the Peak District National Park, Buxton’s a town with so much going for it – from its stunning Georgian and Victorian architecture, to its healing spa waters and buzzing food and drink scene. “The shopping centre is in an amazing location right in the heart of the town, with a huge opportunity to revitalise the spaces for shops, cafes and bars whilst bringing in new people to live here.” Engineering services company AtkinsRéalis is working with the Council on the project. Emma Davies, Project Director and UK Lead for Regeneration, AtkinsRéalis, said: “We have been advising High Peak Borough Council for over two years on Revitalising Buxton, where we have led the development of the Council’s vision for the centre of Buxton. “Through the use of our bespoke digital tools to generate data about the various uses of the town centre and its people, we have been able to connect the Council’s ambition and the needs of Buxton’s residents with a developer that understands what the regeneration project needs to achieve. “We are delighted the Council has chosen Capital&Centric as their partner and look forward to working with them both over the coming months.” Nearly 750 people responded to the community engagement over the summer and early autumn. Respondents called for more things for young people to do, shared community space, diverse options for housing, more public toilets, an increase in the variety of shops, and more greenery. All of the comments shared will enable the development partner and the Council to prepare more detailed proposals. These are expected to be out for consultation next spring.

Jobs secured after physical entertainment distributor sold to Hinckley firm

Tess Egginton
-
0
Jobs secured after physical entertainment distributor sold to Hinckley firm

Hinckley-based supply chain solutions provider, DP World Logistics UK Limited (DP World) has bought the business and assets of physical entertainment distributor Utopia Distribution Services Limited (UDS).

It follows the appointment of Mark Supperstone and Ben Woodthorpe of Evelyn Partners as joint administrators of the business on 13 December.
UDS operates out of a 25,000 square metre, state-of-the-art facility in Bicester UK. The warehouse ships more than 30 million units (including CDs/DVDs/vinyl) annually and distributes more than 60% of the UK’s physical entertainment products for a number of high-profile record labels and retailers. Several assets were acquired in the transaction, including IT systems, and it is expected that all UDS employees will transfer to DP World via TUPE. The transaction follows bankruptcy proceedings being initiated against UDS’ Swiss parent, Proper Group AG (formerly Utopia Music AG) in September 2024. Mark Supperstone, Joint Administrator of UDS and Partner at Evelyn Partners, said: “It is unfortunate to see a business such as UDS that benefits from high-quality facilities and prominent clients in the music industry encounter these difficulties. “However we are encouraged that the business is expected to operate as usual following the sale to DP World, with all jobs saved.” A DP World spokesperson said: “We are pleased to confirm that we are taking on responsibility for full day-to-day operation of our distribution centre at Bicester, following our recent purchase of the business and assets of Utopia Distribution Services out of administration. We look forward to working closely with our entertainment partners in this expanded role. “This facility has now been open for more than a year and is proving to be an outstanding success, supplying physical music and home entertainment to the growing UK market. Our reliable and competitive service, which includes state-of-the-art technology across the centre, enables our customers to distribute to the whole of the UK from a single site. “DP World is committed to playing its part in ensuring the continued success and growth of the physical music and home entertainment sectors in the UK.”

Self-storage company expands footprint with Grimsby site

Tess Egginton
-
0
Self-storage company expands footprint with Grimsby site
A self-storage company is building its presence across the country with a new site in Grimsby. Kangaroo Self Storage has purchased a large former retail warehouse on M Park Alexandra, the retail park in Grimsby. The site was previously occupied by home improvement retailer, Wickes. The large format building occupies a prime site on the Retail Park and already has B8 consent, enabling the site to operate as self-storage with immediate effect. The store will deliver a net floor space of 80,000 sq ft, trading over three levels. When fully fitted, the Grimsby store will be one of the storage company’s largest stores. Gareth Dougherty, Acquisitions Manager at Kangaroo Self Storage, said: “M Park Alexandra is the perfect location for trialing our new retail park presence. It’s a very visible and convenient site with easy access and ample parking. “As the need for storage becomes more lifestyle-driven, a site like this supports our ambition to bring storage directly to our customer base. We are delighted that M Park Alexandra landlords have been flexible and forward thinking – considering the current and future uses of sites like this.”
Chris Stevens, CEO at Kangaroo Self Storage, said: “Strategically, we see this as a significant transaction in the future repurposing of retail into other use classes. We expect to do more transactions like this as Kangaroo continues to expand its presence in the UK.” The transaction was led by George Kearney at LCP, part of M Core, the owners of M Park Alexandra. Their advisers were Henry Phipps of Edgeley Simpson Howe and Osborne Clarke. George Kearney, Senior Asset Manager at LCP, said: “We are thrilled to support Kangaroo Self Storage in developing their retail park presence at M Park Alexandra. With its prime location and excellent infrastructure, this site is perfectly positioned to serve the Grimsby community’s growing need for flexible and accessible storage solutions.” Kangaroo Self Storage was advised by MBM Commercial, Temple Bright and JLL.

2025 Business Predictions: Victoria Templeton, Knowledge Manager at HR Solutions

Tess Egginton
-
0
2025 Business Predictions: Victoria Templeton, Knowledge Manager at HR Solutions
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 Victoria Templeton, Knowledge Manager at HR Solutions. With significant developments on the horizon, now is the time to consider how HR must evolve to be ready to protect businesses in 2025 and beyond. With the Employment Rights Bill, and the upcoming Equality (Race and Disability) Bill, we’re expecting 28 different reforms to worker rights and protections, which, collectively, will bring the most significant developments in employment law in decades. Other Bills which will also have an impact on employment are the Children’s Wellbeing Bill and the Digital Information & Smart Data Bill, which is expected to incorporate rules and standards for AI. HR must embrace this technology to stay ahead of any competitors. There’s never been a more important time to keep up with employment legislation. With this comes training needs. Not just for managers and employees, but for your HR team, since they advise the business on how to remain compliant. Data analytics is also a must so that HR practitioners can gain insights needed to make informed decisions that will go on to shape both the people and business strategy. A clearly defined people plan is vital to ensure the right structure, resource and skills to support the delivery of business goals and objectives.
1...102103104...988Page 103 of 988

ABOUT US

We offer an exciting opportunity in the East Midlands for companies to plan innovative advertising campaigns alongside consistently excellent reporting. Our newsletters are sent directly chief executives, chairmen, managing directors and senior managers across the East Midlands. We also reflect on the importance of SMEs, with numerous companies from all sectors – from manufacturing to technology – benefiting from our mix of news and features. If you’re in business, East Midlands Business Link is for you.

Contact us: sales@blmgroup.co.uk

FOLLOW US

© Copyright 2024 - East Midlands Business Link

By continuing to use the site, you agree to the use of cookies. more information

The cookie settings on this website are set to "allow cookies" to give you the best browsing experience possible. If you continue to use this website without changing your cookie settings or you click "Accept" below then you are consenting to this.

Close