The NatWest East Midlands Growth Tracker – a seasonally adjusted index that measures the month-on-month change in the combined output of the region’s manufacturing and service sectors – posted at 48.3, down from 50.8 in June, to signal a modest downturn in output at East Midlands firms, thereby ending a seven-month sequence of expansion. The latest fall was linked to subdued client demand and another drop in new orders. Moreover, firms in the region registered the joint-fastest decrease in activity of the 12 monitored UK areas, alongside Wales. East Midlands firms signalled a second successive monthly decrease in new business in July, albeit at a slower rate. The fall in new orders was only marginal, with firms linking the contraction to weak client demand and increased competition. Manufacturers and service providers alike saw a drop in new sales, with the latter recording the sharper decline. When compared to the UK as a whole, the East Midlands was the only region monitored to record a drop in new orders. Nonetheless, firms were more upbeat in their expectations regarding the outlook for output over the coming year. The degree of optimism picked up to the highest since February and was above the series average. Companies hoped that investment in advertising and new product launches would help boost client demand and overall activity. Dipesh Mistry, Chair of the NatWest Midlands and East of England Regional Board, said: “The second half of the year started on a slightly damper note for East Midlands firms as output returned to contraction amid weak client demand. Evidence of spare capacity led firms to reduce staffing numbers. Although rates of decline in both employment and new business softened, the East Midlands was the only monitored UK area to see a fall in new orders. “Meanwhile, cost pressures picked up for firms. Whilst still seeking to pass higher operating expenses through to customers, selling prices rose at a softer pace. Strain on margins was potentially more keenly felt in the East Midlands as costs rose at a sharper rate than the UK average, but output charges were hiked to a lesser extent. Nevertheless, business optimism was the strongest since February.” Performance in relation to UK In contrast to the UK average which indicated a solid rise in output, East Midlands firms, alongside those in Wales, recorded a fall in business activity. Similarly, the UK as a whole registered a strong increase in new business which contrasted notably with a marginal decline seen in the East Midlands. July data signalled a further and faster increase in input prices at East Midlands private sector firms. The rate of cost inflation picked up to the steepest since April, and was quicker than both the region’s long-run series and the UK averages. The hike in operating expenses was often linked to higher labour, raw material, energy and shipping costs. Nonetheless, companies raised their selling prices at a softer pace during July. Although still solid, the rate of charge inflation was slower than that seen across the UK as a whole. That said, firms continued to note the pass-through of greater costs to clients. Workforce numbers at East Midlands companies declined further in July, thereby extending the current sequence of contraction that began just over a year ago. In fact, the region was one of only two to see a drop in staffing levels (alongside the neighbouring West Midlands), with the fall contrasting with the UK trend which signalled a modest rise. Restructuring and the non-replacement of voluntary leavers reportedly drove the decrease. Meanwhile, backlogs of work fell at a solid pace that was sharper than the UK average. The rate of depletion eased from June but was also quicker than the long-run series trend.

A pollution incident at its site in Derby’s Sinfin Lane has cost chemical company Reckitt Benckiser £460,000, made up of £300,000 to prevent a recurrence, £150,000 to the East Mercia Rivers Trust, a charity formed by the merger of Welland Rivers Trust and Lincolnshire Rivers Trust, and more than £10,000 to cover Environment Agency costs. The pollution, said to be 130 times more polluting than untreated sewage, involved an escape of aerosol production trade effluent into the Cuttle Brook as it flowed through Sinfin golf course, causing the death of more than 400 fish and a prolific growth of sewage fungus. The effluent was found to be seeping out of the bank of the brook within the site. It also resulted in low oxygen levels. The company took prompt action to stop the polluting discharge and investigate the cause. It had stopped by the following day. Paul Chambers, Environment Officer for the Environment Agency said: “Enforcement Undertakings allow polluters to positively address and restore the harm caused to the environment and prevent repeat incidents. “The Environment Agency will consider acceptance of Enforcement Undertakings submitted for suitable cases to restore the environment, improve practices of the offending company and avoid longer criminal court cases. However, we will prosecute in appropriate cases. “As well as donations totalling £150,000 to East Mercia Rivers Trust that will bring great benefits to the environment, Reckitt Benckiser has made significant improvements to the Sinfin Lane site drainage system, and particularly its trade effluent pipework. Rachel Butler, Executive Director at East Mercia Rivers Trust said: “The donation from Reckitt Benckiser has directly contributed towards a major river restoration project as part of East Mercia River Trust’s ambition to restore the Upper Witham landscape at scale. “An important limestone river, this watercourse forms the headwaters of the Witham catchment and is home to white-clawed crayfish and brown trout amongst other native flora and fauna.”

With nominations OPEN until Thursday 5th September for East Midlands Business Link’s annual Bricks Awards, shining a light on the region’s property and construction industry, there are 10 categories available to enter, offering an opportunity to showcase outstanding businesses, teams and projects at the prestigious event. One such category is the ever-popular Contractor of the Year, which can be entered here. Celebrating the contractors who work on the project, this award celebrates builders, construction companies and the contractors themselves, and nominees should be those who have gone above and beyond the word of the contract to deliver a truly exceptional service. Last year the award was won by Bowmer + Kirkland, with Cawarden and EE Smith Contracts runners up. Upon winning, Christian Parnell, regional director, Bowmer + Kirkland, said: “Bowmer + Kirkland is celebrating our first one hundred years this year and as our company was started in the East Midlands and we still have our head office here, it is nice to win something on our home patch. This achievement is certainly testament to the hard work and dedication of our staff.” With this year’s Contractor of the Year award sponsored by Environmental Consultancy EMEC, Ed Tripp, Consultancy Director at EMEC, said: “EMEC decided to sponsor Contractor of the Year in order to contribute to rewarding exciting and innovative approaches to sustainable development. “Since Biodiversity Net Gain (BNG) legislation became mandatory in February 2024, new developments will need to deliver a minimum 10% BNG and it’s never been more important for Contractors and Ecologists to work together for the benefit of the natural environment. “Our top advice for any contractors looking to submit an application is to showcase a nature/ecology first approach to their development schemes. We firmly understand the need for new developments in order to drive the economy forward, but we will be looking for contractors who are showcasing an innovative approach to embracing sustainability. Our role as the consultant ecologist is as much about protecting habitats as it is about offering added value advice to the developer so that the communities they create, incorporate diversity.” Submit your nominations for Contractor of the Year here, before entries close on Thursday 5th September. Winners will be revealed at a glittering awards ceremony on Thursday 3rd October, at the Trent Bridge Cricket Ground (4:30pm – 7:30pm) – an evening also offering an opportunity to establish new connections with property and construction professionals from across the region, and hear from keynote speaker Paul Southby. Other award categories open for entry 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, and Sustainable Development of the Year. All entry forms can be accessed here. The Overall Winner award will also be presented at the event. This award cannot be entered, with the winner selected from those nominated for the event’s other awards. The Overall Winner of the East Midlands Bricks Awards 2024 will also receive a year of marketing/publicity worth £20,000.