UK GDP flat in third quarter but recession avoided this year

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UK GDP (gross domestic product) was flat in the three months to September, compared to the previous quarter, in which the three months to June saw a 0.2% expansion. It mirrors the Bank of England’s expectations of a flat economy in 2024. In output terms there was a 0.1% fall in the services sector, which offset a 0.1% increase in construction output and broadly flat output in the production sector. Meanwhile, in expenditure terms, an increase in the volume of net trade was offset by falls in business investment, household spending and government consumption. Month on month, the economy showed growth of 0.2% in September, following a 0.1% rise in August (having been revised down from 0.2%) and a 0.6% fall in July 2023, suggesting the UK has managed to avoid recession this year. Expectations have been beat, however, of a 0.1% fall in GDP. Ben Jones, CBI lead economist, said: “Forecasts for the UK economy have generally been edging down recently and the latest growth figures lived up to this gloomier view of near-term prospects. “It’s clear that higher interest rates are starting to bite, and demand has become less resilient. CBI surveys agree with that overall picture and suggest that private sector activity is likely to stagnate in the coming months. “The Bank of England’s latest forecasts make for particularly grim reading, with the economy expected to be flat next year – before growing at feeble rates in both 2025 and 2026. But action from the Chancellor in the Autumn Statement in a couple of weeks’ time could change that outlook. “Unlocking business investment across the economy by making full expensing permanent could – according to CBI analysis – lead to a 2% increase to GDP by the end of the decade.”

Recruitment company makes Oberoi Business Hub move

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A recruitment company which specialises in industrial and commercial job roles has chosen Oberoi Business Hub in Pride Park as its springboard office premises. Omega Management Group has been operating in logistics across the industrial heartland of the UK for nearly three years and decided that serviced offices in a prime business location were a key component in their ambitious growth plans. Managing Director Aaron Waller explained: “We operate in a highly competitive industry and keeping control of costs without compromising on the working environment and support services is crucial for a company such as ours at this stage of our development. “Moving to serviced offices at Oberoi Business Hub is already paying dividends. We know exactly what our costs are with transparent terms and conditions; the support from the Oberoi team is fantastic; the offices are high quality, easily accessible and with plenty of parking and there is superb mobile phone and wifi coverage. “The whole team is extremely happy with the move and it has given us the lift we needed to take the company forward, expand our service proposition to both clients and candidates and move positively towards the new year.” Oberoi Business Hub manager Jodie Brady continued: “We pride ourselves on making an office move simple and straight forward so that our businesses can concentrate on their own operations.” And founder and Managing Director Kavita Oberoi OBE concluded: “Omega Management Group are the perfect fit for us – an SME who benefit from a prestigious serviced office location and address with their sights set on growth. “We look forward to them settling into the Oberoi business community and supporting them with their ambitious plans.”

Leicestershire supplier to F1 teams secures £3.25m lending facility

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K.S. Composites Ltd, which manufactures carbon fibre and fibre glass components for major automotive companies, has secured a £3.25m lending facility from Praetura Commercial Finance as it looks to expand into new territories and sectors. The Leicestershire-based company supplies Formula 1 teams with both structural and non-structural carbon fibre components from chassis parts to body panels. It also is a key supplier to supercar manufacturers and automotive original equipment manufacturers (OEMs). K.S. Composites is now using the funding from Praetura to expand into new areas of the luxury market, located largely in the U.S. Overseas it will focus on the production of fibre glass and carbon components for luxury hotels and super yachts. It is also working to expand into other new sectors including defence, where there is an increasing demand for sophisticated carbon fibre components. The business has also recently secured a new civil engineering contract with Network Rail, using its materials to construct more sustainable composite footbridges. Jamie Smith, Managing Director of K.S. Composites, said: “Since the business started in 1985, our remit has grown to new sectors and territories, drawing on our reputation as the UK’s leading fabricator, renovator and repairer of glass reinforced plastic body work. “Since then, the company has continued to evolve each year, and we are looking forward to evolving again with the help of Praetura Commercial Finance, who have really bought into our plans and vision.” Stuart Bates, commercial director at Praetura Commercial Finance, said: “You need only look at some of the standout names on K.S. Composites’ customer list to know that this is a truly great British manufacturing business. “From the get-go, we were inspired by the business’s story and heritage but also its plans going forward, which shows just how far the business has come since the days of only specialising in car parts.”

New group HSE manager for Adey Steel

Charlotte Huband has been appointed as the new group HSE manager at the Adey Steel Group.

The 26-year-old joins the Loughborough-based steel fabrication infrastructure specialist from the VF Corporation, the global apparel and footwear company, where until recently she was health & safety advisor.

She will be responsible for the overall management of health, safety and the environment for both Adey Steel and Adey SteelShop.

Charlotte started her career in health & safety with Leicestershire County Council, where she worked as a health & safety technician after completing her apprenticeship with the local authority.

“I am thrilled to be joining the Adey Steel Group,” explained Charlotte. “It’s a highly progressive, forward-thinking company within its sector and I look forward to working closely with the team to deliver our industry-leading Safety First approach to health, safety and the environment within our day to day operations.”

Charlotte, who lives with her partner and two dogs Luna and Ruby in Abbots Oak in North West Leicestershire, actually began her professional life with horses after a career competing in eventing at international level. She worked for several years as an equine physio alongside supporting Team GB show jumper Holly Smith before moving into health & safety.

Robert Hall, group operations director of the Adey Steel Group, added: “We are delighted to welcome Charlotte to the Adey Steel Group. Her experience, energy and enthusiasm will be a huge asset to the business as we look to ensure even higher levels of health and safety across our business.”

Bowling complex wins approval in Coalville

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The regeneration of Coalville has taken a further step forward following the approval of a bowling alley complex for the town centre. North West Leicestershire District Council’s (NWLDC) Planning Committee unanimously approved the plans submitted by owners of the neighbouring Belvoir Shopping Centre, Gylo and Holland Park Leisure. The proposals will see the part-demolition and changes to the Emporium nightclub on Belvoir Road and the creation of a leisure building and an apartment block. The plans are the latest step in NWLDC’s work to support and regenerate Coalville town centre, featuring as a key project in the council’s Coalville Regeneration Framework. The development will include:
  • 28 one-bedroom apartments
  • Bowling alley
  • Restaurant with outdoor terrace
  • Mini golf and gaming area
  • Demolition of 83 Belvoir Road
  • New access to Belvoir Road
  • Changes to the Emporium nightclub.
During a meeting, councillors discussed the design of the development, the loss of trees and car parking provision but positively welcomed the investment which would contribute to regeneration of the town centre providing a new leisure facility and much need small homes. Once a section 106 legal agreement has been signed the planning permission will be granted to allow work to commence. Holland Park Leisure will operate the complex. Councillor Richard Blunt, Leader of NWLDC, said: “The regeneration of Coalville cannot be achieved by the public sector alone, so this proposal by Gylo will further enhance what the town has to offer. “This mixed development has something for everyone, supporting the work to make Coalville a family-friendly town. I look forward to seeing it take shape, along with other aspirations featured in the Coalville Regeneration Framework.” On behalf of Gylo, Nick Harcus said: “Vibrant town centres rely on a combination of uses to attract visitors and inject spending power both during the day and at night. In partnership with Holland Park Leisure, we believe that we have identified a creative approach combining new leisure, food and beverage outlets and much needed new homes. “After years of inactivity prior to our ownership, this is yet another stage in our revitalisation of the Belvoir Shopping Centre following the multi-million pound spend to date on refurbishment, improvements to public spaces and the new Iceland unit due to open prior to Christmas. “Now we have received the unanimous support of North West Leicestershire District Council we will get to work on delivering this further new investment in the heart of Coalville.”

Rolls-Royce signs MoU with Dutch firm over SMR deployment in the Netherlands

BAM Infra Nederland and Rolls-Royce SMR have signed an MoU to explore the opportunities for collaboration to support deployment of Rolls-Royce SMRs in the Netherlands. Rich Everett, Group Head of Supply Chain for Rolls-Royce SMR, said: “We are delighted to explore opportunities for collaboration with BAM Infra Nederland, which builds on the successful partnership we have developed with BAM Nutall in the UK – which is also part of the BAM Group.” BAM Infra Nederland has been building the infrastructure of the Netherlands for more than 150 years and has significant experience in key pieces of large civil engineering projects, including in the nuclear industry. Sander den Blanken, Director Commercial Business Development at BAM Infra Nederland, said: “Together with our strategic partner Rolls-Royce SMR we are forging a long-term plan that contributes to the energy transition in the Netherlands. We can achieve this by developing a robust and modular solution, bringing an alternative energy source for our country one step closer. We bring innovation at a scale that minimises speed and risk through our industrial approach and, with this development, we take a significant step towards a more sustainable Netherlands.” Rolls-Royce SMR is a British solution to the global energy security and decarbonisation challenge. This ‘factory-built’ nuclear power plant will provide 470MW of low-carbon electricity for at least 60 years – enough to power a million homes. In 2022, Rolls-Royce SMR signed an exclusive agreement with Dutch development company ULC-Energy, to deploy Rolls-Royce Small Modular Reactor (SMR) power stations in the Netherlands.  

East Midlands manufacturer awarded £3m contract to fit out one of UK’s first Passivhaus secondary schools

Mansfield-based Deanestor has been awarded another major contract in the education sector – a project worth over £3m to fit out the new 1,600-place Perth High School. The school is one of the first secondary schools in the UK to be built to Passivhaus standards. This will be Deanestor’s 14th contract for Robertson Construction and it follows its successful completion of a number of school projects in Scotland. Deanestor will be fitting out 274 rooms across the new campus and will manufacture or procure more than 2,700 items of fitted and loose furniture, including storage solutions, changing benches, teaching kitchen, learning walls, tables and chairs, equipment for sports and arts, workbenches and tools for technology and engineering. William Tonkinson, Managing Director of Deanestor, said: “This project will provide a fantastic learning and teaching environment for young people, and we are delighted to be playing our part and working with the Robertson team once again. “We have successfully delivered a number of projects for Perth & Kinross Council and have a strong track record in fitting out Passivhaus schools. We are looking forward to starting on site next year.” Brian McQuade, COO of Robertson Group, said: “Not only will this be a high-quality building, but it will support and enhance the experience of learners utilising a ‘fabric first’ and heat recovery approach in its construction that will deliver against the low carbon agenda.”Gary Bushnell, Chief Executive of hub East Central Scotland, added: “We have worked closely with Perth & Kinross Council and partners from the inception of this project and it is great to see work now progressing well on site. It will provide another high-quality, highly sustainable facility that will serve the community for many years to come.” Due to open Summer 2025, the new Perth High School is being built adjacent to the existing 1960s school, which will then be demolished.

Jobs at risk as Nottinghamshire bike manufacturer reveals restructuring plan

Jobs are at risk at bike manufacturer Raleigh, following the company’s announcement of a restructuring plan. The plan will see some staff made redundant and the firm’s Nottinghamshire headquarters relocated. The decision comes due to a challenging market, according to ITV reports, which reveal the proposals would see Raleigh’s parts and accessories business shut and its warehousing and logistics department contracted out. Accell, which acquired Raleigh in 2012 for £62m, says the Raleigh HQ will still remain in Nottinghamshire. A consultation is underway.

An Accell spokesperson told ITV News Central: “To ensure Accell UK remains competitive in what is a challenging market, we have recently concluded a detailed review of the business, aimed at helping to position Accell for sustainable growth in the UK and internationally.

“Following the outcome of this review, we have developed a proposal to better integrate Accell UK into the wider Accell Group business so it can benefit from existing resources, functions and expertise, while retaining the Accell UK HQ in the Nottingham area.

“This will better position our operations for sustainable growth. Formal consultations on the proposal will begin immediately and we welcome input from all parties involved as we work closely with them during this process.

“We remain committed to supporting our staff should this proposal be adopted and keeping them informed throughout the consultation process, as well as maintaining our service to our bike shop partners and customers.”

Return of Made in Chesterfield to inspire next generation of manufacturers and engineers

A campaign which aims to close skills gaps in Chesterfield by providing young people with tours of manufacturing, engineering and construction businesses is returning for the tenth time. Made in Chesterfield has already introduced more than 3,600 young people to the prospect of a career in STEM (science, technology, engineering, and maths) sectors, with more set to gain valuable insights this November. The campaign, coordinated by Destination Chesterfield and Direct Education Business Partnership and sponsored by Chesterfield College, was officially launched at a celebration event alongside the town’s network of Chesterfield Champions. Figures published in East Midlands Chamber’s Q3 economic survey revealed that 58% of manufacturers across the region which tried to recruit experienced problems in finding suitable staff. At the same time, Chesterfield Borough Council has forecast that 3,750 people are expected to be working in the sector across the borough by 2030. These figures outline the requirement for a strong, skilled pipeline of talented individuals to secure the future growth of these industries across the town. During Made in Chesterfield, secondary school pupils will gain access to firms such as Weightron Bilanciai – an international firm that makes industrial weighbridges, Superior Wellness, a hot tub manufacturer listed as one of the UK’s top 50 fastest-growing businesses, and Dalton Roofing, a family-run business operating in Chesterfield’s property and construction sector. Ivan Fomin, Managing Director at MSE Hiller and Destination Chesterfield Board Member, said: “Made in Chesterfield continues to play an important role in showcasing the wide range of career options available to young people in our town. “Having hosted several tours at my own business, I’ve seen first-hand how the campaign inspires those thinking about their future options. We know a career in manufacturing can be extremely rewarding, and our sector needs to keep generating a strong pipeline of talented individuals for the future to keep our business and wider economy thriving.” Julie Richards, Principal and CEO of the Chesterfield College Group, said: “Having sponsored Made in Chesterfield for the past few years I’ve seen the real impact the initiative has. As a stepping stone between student and employer, we are proud to help this campaign inspire young people considering a rewarding career in Chesterfield’s growing manufacturing, engineering and construction industries. “With work on our new cutting-edge Engineering, Manufacturing and Science Centre due to commence this year and our partnership with the Construction Skills Hub now running in Staveley we’ll continue to equip more local people with the right skills required to build a successful career and help to strengthen the local and regional economy.” Clare Talati, CEO of Direct Education Business Partnership (DEBP), added: “Made in Chesterfield makes an important contribution to the CEIAG (Careers Education, Information, Advice and Guidance) offer across the area; providing context for learners of the world of work, showcasing local opportunities, and enabling employers to meet potential future employees.”

Are we facing a meteoric rise in mediocrity? By James Pinchbeck, partner at Streets Chartered Accountants

James Pinchbeck, partner at Streets Chartered Accountants, considers how career progression has changed. How often, especially if you are on LinkedIn, have you seen a post or received news that someone you know has been promoted? How often does such promotion seem to be a somewhat significant step up or change from an existing role? Whilst a career trajectory from assistant to a C suite role in a matter of a few years might seem unplausible, it does seem increasingly possible. It seems gone are the days that one’s career progression is based on a number, if not many, years of work and being mentored and supported by a more senior person, with such progression dependent even on the retirement of the person in the role above. Certainly, such advancement was inevitably based on past performance, a track record and achievements. It might be said that people had to earn their stripes and prove their worth. Why then might we be seeing more fast-tracked careers? Perhaps one, if not the key reason, for seeing such changes is the phenomenal pace of change we are all facing not just in our work lives but in our personal lives. Change in what work we do, the way we work and for who we do that work would appear constant and perhaps even unrelenting. As a result, having a job or role that involves you doing the same thing for many years has been jettison to the history books. We need and quest as businesses new ideas, skills and techniques which invariably means new team members. We have also seen, not least on the back of the pandemic, an increase in those opting for earlier retirement, which along with the fact that long lengths of service are perhaps a thing of the past, has meant that organisations have had to possibly bring people on sooner. What then is the impact on our work or the work we do? Whilst in the past you might recruit someone to fill a defined role based on an understanding of what the role requires it would seem organisations are having to recruit roles that are subject to constant change, even with a risk of being defunct. It is then often difficult to determine what is required in the roles, both in term of experience and skills, even attitudes. In the past you may have recruited for a role based on an individual’s past performance. In the new order it would seem we are having to recruit more on the basis of potential achievement or the ability to make things happen as opposed a person’s track record. The speed of change also impacts how we recruit to fill roles, perhaps with a need to fill vacancies more with people that can adapt and respond, even thrive to change. It would also seem that we need to review roles more frequently to ensure that they are aligned to the needs of the organisation. Perhaps one of the biggest challenges though is measuring the performance of work colleagues. In the past the repetitive nature of work, year on year, meant it was easier to assess the productivity and impact of team members. Line managers had a good grasp on what was required in terms of the contribution and value of their staff. However it does seem, not least where we take people on that bring new skills and techniques to an organisation, increasingly challenging to measure outcomes and performance. Many employers are now facing situations where they are bringing staff in who have skills, knowledge and experience that they don’t. In light of this background, it would appear business leaders are undoubtedly facing an unprecedented challenge around determining workforce requirements, recruitment, ensuring productivity and measuring performance. Perhaps of real concern is that no longer is past performance an indicator of future outcomes and we are increasingly reliant on the skills and attitudes of colleagues, along with our own ability to adapt to and even embrace change if we are to thrive and succeed.   See this column in the November issue of East Midlands Business Link Magazine here.