Manufacturing output volumes fall at fastest pace in over two years while selling price inflation remains high

UK manufacturers reported a fall in output volumes in the three months to December, at the fastest pace since the three months to September 2020, according to the CBI’s latest Industrial Trends Survey. This fall was largely driven by the food, drink & tobacco, paper, printing & media, and mechanical engineering sectors. The survey found that selling price inflation is expected to accelerate slightly in the next three months (though below the record high reached earlier this year). Total order books as well as export order books were reported as below normal, while stocks of finished goods were seen as adequate. The survey, based on the responses of 220 manufacturing firms, found:
  • Manufacturing output volumes fell in the three months to December (weighted balance of -9%, from +18% in the three months to November), and at the fastest pace since September 2020. Output is expected to fall at a similar pace in the three months to March (-10%).
    • Output fell in 11 out of 17 sectors in the three months to December. The decrease in overall output reported this quarter was driven by the food, drink & tobacco; paper, printing & media; and mechanical engineering sectors.
  • Total order books were reported as below “normal” in December, to a similar extent as in November (-6% from -5%). However, the balance remains above the long-run average (-13%). Export order books were also seen as below normal and to a greater extent than last month (-19% from -7%). This was broadly in line with the long-run average (-18%).
  • Average selling price inflation is expected to accelerate slightly in the next three months (+52%, from +47%). Although expectations for selling price inflation were comfortably below the multi-decade high seen earlier in the year (+80% in March), they remained well above the long-run average (+6%).
  • Stocks of finished goods were seen as adequate in December, with the balance rising slightly compared to November (+7% from +5%).
Anna Leach, CBI deputy chief economist, said: “The corrosive effect of higher inflation on demand is increasingly clear, as manufacturing output contracting at the fastest pace in two years over the last quarter. While some global price pressures have eased in recent months, cost and price inflation will likely remain very high in the near term, with rising energy bills a key concern for manufacturers. “Government support for energy costs has been considerable already, buying time for businesses to adapt to Europe’s new energy landscape. And with the UK economy set to be in recession through much of 2023, there remains a strong case for further support in the coming year.”

IT firm completes year of fundraising by donning festive knits for Christmas Jumper Day

An IT company in Derby is doing its bit for good causes in the run-up to Christmas. L.E.A.D. IT Services, who are based in the CUBO co-working space in Victoria Street, Derby, raised £80 for Save the Children UK by wearing festive jumpers. It completes a busy 12 months of fundraising for various charities. In September, staff at L.E.A.D. IT Services participated in the annual Macmillan Coffee Morning while earlier in the year, they completed a sponsored walk raising money for the British Heart Foundation. Director Lee Jepson said: “The annual Christmas Jumper Day is an event that we always enjoy taking part in, and it’s for a great charity, too. “This year has been challenging for so many people and after an extremely busy year, it’s nice to be able to pull together and do something festive.” L.E.A.D. IT Services – which works with schools across the country – are also sponsors of Notts County FC Girls for the 2022/23 season and have previously sponsored the England Dodgeball Team and Derby-based Mickleover FC Girls. Lee said: “Girls and ladies’ football is one of the fastest growing sports in the country and, after England Ladies’ success at the European Championships, there has never been a better time to be involved in women’s football. “Community is a big thing for us; we like to get involved wherever we can and are absolutely delighted to be one of the sponsors of Notts County FC Girls.” Formed in 2010 as Noel-Baker IT Services, the IT firm specialises in working with schools and multi-academy trusts including East Midlands-based Embark Federation and Reach2 Academy. They also work across the L.E.A.D. Academy Trust of schools – which includes Da Vinci Academy and Noel-Baker – after becoming part of the multi-academy trust in 2016. L.E.A.D. recently welcomed Eight out of 10 Cats star Jon Richardson and his wife Lucy Beaumont to Noel-Baker where more than £14,000 was raised for local families feeling the pinch. “It was a fantastic evening and the money raised will go a long way towards supporting families in the area over the winter months,” added Lee.

Government’s underinvestment in East Midlands illustrates why it must back region’s Centre of Trading Excellence, says Chamber

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Chronic underinvestment from central Government shows it is time for policymakers to “back the East Midlands to back the UK.” That is the view of East Midlands Chamber after the latest Treasury figures indicated the East Midlands continues to receive the lowest public investment of all regions in the UK. In 2021/22, spending per head in the region was £10,528 – below the UK average of £11,897. Last month, Chamber delegates were joined by members and MPs at a reception in Parliament to launch a blueprint for growing the regional and national economy, titled A Centre of Trading Excellence: A Business Manifesto for Growth in the East Midlands and Beyond. It presented Government with “the big opportunity” to further develop the East Midlands as a “Centre of Trading Excellence” via a series of policy asks including investing in infrastructure projects like HS2 East, Midland Main Line electrification and the A50/A500 growth corridor. East Midlands Chamber director of policy and external affairs Chris Hobson said: “For years, the East Midlands has been bottom of the pile when it comes to public investment and it’s held back our potential. “Recent analysis by the Chamber and East Midlands Councils found we receive just 64.7% of the UK average for transport infrastructure spending – a gap worth £1.26bn per year to the East Midlands – while we also ranked bottom or near the bottom for spending on health, education, and economic and social affairs. “If the Government is truly serious about levelling up, it must prioritise regions like ours and work with businesses to understand where it can target investment to grow the economy. “Our Business Manifesto for Growth offers a useful starting point in this respect as we have set out a formula for how the Government can not only grow our economy but across the country too – in other words, it can back the East Midlands to back the UK.”

Former bank gains new identity with US fried chicken giant

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A former city centre bank and retail store is gaining a brand new identity with the rapid expansion of US fried chicken giant, Popeyes® UK, the master franchise for the United Kingdom. Marketed by East Midlands commercial property specialist Andrew + Ashwell, the deal for the Gallowtree Gate former bank premises has now been completed. It will soon offer a taste of Louisiana with Popeyes® UK’s famous menu, as the chain is set to refurbish, recruit and start trading within the next month. Popeyes® now has more than 3,000 outlets across the USA, having first opened in New Orleans in 1972. The brand made its debut in the UK in London only last year with ambitious plans to launch hundreds of restaurants. Midlands branches have opened in Nottingham and Derby, soon to be followed by Leicester. The original banking hall, with an impressive arched atrium and marble columns, offers an open sales area covering over 2,100 sq ft of space at ground floor level, plus storage and offices on the first and second floors. For many years the building was also a popular Dorothy Perkins and Burtons clothing store. This folded early last year following the demise of the Arcadia Group. Tom Crowley, CEO of Popeyes® UK, said: “We’re excited to be growing our presence in the Midlands with a brand new restaurant in the heart of Leicester as part of our accelerating UK rollout. We look forward to opening our new restaurant before Christmas.” Kelvin Wilson, associate director for A+A, said Popeyes® is in an ideal location for the changing face of Leicester. “City premises have faced major challenges everywhere over the past few years. Shopping habits are changing and today there is more of a focus on food-led eating outlets that will create an attractive leisure offering to bring people back into the centre. “Popeyes® is a landmark building right at the heart of Leicester, close to the Clock Tower, with the Highcross and Haymarket shopping centres nearby, as well as major stores, including M&S and Boots just along the street. “It will add an exciting new element to the various restaurants and takeaways already established around the vicinity, giving even greater choice for visitors to enjoy.”

Work to start in New Year as construction contract signed for Campus for Future Living

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East Lindsey District Council has officially appointed Lindum Group to construct the £8.5m Campus for Future Living in Mablethorpe.

The signing of the build contract is a significant milestone for the Council as it marks the first council-led Town Deal project moving to the delivery stage in 2023. The flagship project for the Lincolnshire coast and wider East Lindsey has received £8.5m from the Mablethorpe Town Deal funding from the Government’s Levelling Up agenda, supported by the Connected Coast Board. Work will now begin on site in January with turf cutting scheduled for early February. The build is scheduled for completion and handover to the Council in 2024. Led by a coalition of local, regional, and national partners, the Campus for Future Living offers significant potential in reducing health inequalities in Mablethorpe as well as across the district. It presents an opportunity to put Mablethorpe at the forefront of medical technology and innovation, offering a centre for health and care related teaching, training, research and development. Accommodation, a coffee hub and parking facilities are also part of the scheme. Cllr William Gray, portfolio holder for communities and better ageing at East Lindsey District Council, said: “The signing of the construction contract is a milestone for the Campus for Future Living and I am delighted the council has Lindum Group on board. “The possibilities the Campus of Future Living offers residents and the opportunities it will bring to people in Mablethorpe and our communities are truly exciting. “The Town Deal, particularly with this project, gives us an opportunity to improve the lives and wellbeing of residents and for that change to have a lasting impact for generations. “I look forward to seeing work start on site in the New Year.” Lindum Group MD Freddie Chambers said: “We are delighted to be here today to sign the construction contract and we anticipate work starting on site at the end of January. “It is a great project for Lindum to be involved in, not just because it’s the area’s first Towns Fund scheme but also because it should have a positive impact on local health care, which as a large employer of Lincolnshire people, is important to us too. “We have been working closely with the council to develop the design of the building which also has many ‘green’ credentials. Using BREEAM Excellence guidelines as a benchmark, it will incorporate air source heat pumps, solar panels and battery storage systems. There will also be electric charging stations for mobility scooters and lots of natural ventilation. All these elements will help to reduce the running costs and operational carbon impact of the finished building.” Julian Free CBE, deputy vice chancellor, University of Lincoln, said: “We are very excited about the Campus for Future Living and are confident it will have a positive impact on the people of Mablethorpe and beyond. “It is fantastic to have the Campus for Future Living construction contract with Lindum signed. We are now firmly advancing to the delivery of what will be a transformative project in Mablethorpe driving better health and social care outcomes for the local community. The University is pleased to have played its part in getting to this stage and looks forward to being an active participant in the completed Centre.” Chris Baron, chair of Connected Coast, said: “The signing of the construction contract is a significant milestone for the Campus for Future Living that brings us ever closer to getting started on site. “With the Campus, we will have a national exemplar in medical technology and innovation in our area that is set to bring jobs, investment, and opportunities for our local communities. “I look forward to seeing work begin and the exciting vision for this project translate into delivery on the ground.”

Opinions invited on amended plans for Ratcliffe on Soar power station site

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Following consultation earlier this year, residents and interested parties are invited again to have their say on the latest plans for the Ratcliffe on Soar power station site. A draft Local Development Order (LDO) that could give the green light to new industry and business projects and the potential of thousands of permanent highly-skilled jobs at the site is being finalised by Rushcliffe Borough Council. A design guide and masterplan for the site has been prepared to support the redevelopment, which will guide growth and development over the coming years including the proposals linked to the previously announced East Midlands Freeport and the Development Corporation projects that could create further jobs and significant investment. The Borough Council has made some revisions to the draft LDO in response to the consultation, comments and feedback received to date and wants to hear further views on the latest proposals by Thursday January 19, 2023 by completing the online form. The revisions include:
  • Amending the range of permitted uses on the Southern Area and land south of the A453 to those limited specifically to low carbon energy production and storage or manufacturing uses delivering the net zero transition.
  • To place greater limits on the extent to which the height of buildings on the Southern Area can go above 30 metres.
  • Limiting the amount of development which can be occupied before road improvements are delivered or there is agreement for their delivery. This is to ensure that the roads are able to cope with increased traffic levels and to enable the road improvements to be designed to also accommodate other major developments that are planned to come forward in the local area.
  • To require a public transport strategy to be approved before new development can be occupied or brought into use. This is to help increase the number of people who will travel to and from the site by bus and train.
  • To require a contribution to a traffic management study for local roads at and around nearby villages and the implementation of its proposed recommendations.
  • Amendments to the LDO’s Design Guide to help better ensure that a quality new environment is delivered when the power station site is redeveloped.
The power station, owned by international energy company Uniper, will close at the end of September 2024 in line with government policy to end coal-fired power generation. If agreed, the LDO would grant planning permission for a range of modern industrial uses on the redeveloped site, including potentially advanced manufacturing, low-carbon energy production, battery production, energy storage, logistics, and research and development. The vision for the site sets out the guiding principles by which the development would be brought forward, and seeks to deliver:
  • A zero-carbon technology and energy hub for the East Midlands
  • Highly skilled jobs
  • Modern industry and business uses, served by on-site sustainable energy generation and storage
  • Advanced manufacturing, for example to produce electric car batteries
  • A hub for research, development, and innovation, through links with universities, business support organisations and established industry.

Rolls-Royce UltraFan technology demonstrator build complete and getting ready to test in Derby

Rolls-Royce has completed building and is preparing to test its UltraFan technology demonstrator. In a major milestone for the programme, the demonstrator engine was transported from the build workshop and into Testbed 80 in Derby, where it was mounted in preparation for testing. The first test of the demonstrator is expected to take place early next year and will be operated using 100% Sustainable Aviation Fuel. Chris Cholerton, president of Rolls-Royce Civil Aerospace, said: “Seeing the UltraFan demonstrator come together and getting ready for test in Testbed 80 is a great way to end the year. “We have all been waiting for this moment, which is such an important milestone for the programme and for the team who have worked on it. The next stage will be to see UltraFan run for the first time on 100% Sustainable Aviation Fuel in 2023, proving the technology is ready to support more sustainable flight in the future.” Combining a brand new engine design with a suite of technologies to support sustainable air travel for decades to come, the UltraFan demonstrator has a fan diameter of 140 inches and offers a 25% fuel efficiency improvement compared with the first generation of Trent engine. UltraFan offers a variety of sustainability solutions that will support the journey to net zero aviation. In the nearer term, there are options to transfer technologies from the UltraFan development programme to current Trent engines to deliver enhanced fuel efficiency and reductions in emissions. In the longer term, UltraFan’s scalable technology from ~25,000-110,000lb thrust delivers the potential to further improve fuel efficiency of both narrowbody and widebody aircraft by up to 10 per cent. Testbed 80, the world’s largest and smartest testbed, was designed and built especially to accommodate the size and technical complexity of the UltraFan demonstrator. It was opened in 2020 and has already completed many hours of experimental engine testing. The UltraFan technology demonstrator programme has been supported by the UK’s Aerospace Technology Institute and Innovate UK, the EU’s Clean Sky programmes plus LuFo and the State of Brandenburg in Germany.

Former Lincolnshire County Council offices hit the market

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Lambert Smith Hampton (LSH) have been appointed by Lincolnshire County Council to dispose of its former offices at The Avenue, Lincoln. The offices, which are distributed across two pairs of semi-detached buildings and a further detached building, offer some 15,780 sq ft of accommodation between them. The period buildings occupy a prominent location within Lincoln city centre and will be offered for sale as a whole or in up to three separate lots. Andrew France, associate director at LSH, said: “This is a rare opportunity to acquire some landmark heritage assets in a prime central location. The configuration of the buildings offers enormous redevelopment potential and we are looking forward to seeing proposals come forward.”

Nottingham City Council makes senior finance appointment

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Nottingham City Council has made a permanent appointment to a key role on its senior management team. Ross Brown will take up the role of corporate director for finance and resources and Section 151 Officer on 3 January, taking over from Clive Heaphy who has held the position on an interim basis. Ross is an experienced senior officer who has worked in local government for more than 17 years, including as Section 151 Officer at the London Borough of Ealing. Ross said: “I am delighted to be joining Nottingham City Council at this key stage of its transformation and improvement journey. “The council’s challenges are well documented and while I don’t underestimate the scale of the task ahead, I’m excited to be joining an ambitious and determined authority which is committed to addressing the issues which led to Government intervention and transforming itself into a better-run council. “I’m confident that with the support of committed and dedicated colleagues, we’ll work together to build, develop and enable a Finance and Resources Directorate at the heart of the council’s vision for delivering together for Nottingham’s residents and businesses.” Chief Executive Mel Barrett said: “I congratulate Ross on his appointment and I and my colleagues look forward to working with him when he takes up his post in the New Year. “I’d also like to pay tribute to the work carried out over the past two years by Clive Heaphy and wish him the very best for the future.” Councillor David Mellen, leader of Nottingham City Council, said: “We welcome the experience that Ross will bring to a key role within the council’s operation. He further strengthens the senior leadership team at a time when our budgets are being placed under real pressure.”

Galaxy Row set to progress

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The submission of a Summary Document to Government for the proposed Galaxy Row redevelopment project, part of the Long Eaton Town Deal, has been approved by Erewash Borough Council. On December 13 Council Executive considered the project summary to claim the remainder of the £3.5m Towns Fund grant funding from the government that is needed for the project. The aim of the project is to remove the eye sore of the former derelict Galaxy cinema on Derby Road and replace it with a new development made up of commercial and residential units, including a courtyard/car park, that enhance the town centre. This would be part of a larger development which includes the former cinema, a tyre depot, adjacent shop fitter’s store and former Stage 1 bar and nightclub. Galaxy Row is one of six projects that form the town deal. The development would create new jobs and benefit the town centre economy. If funding is secured it will be necessary for the council to use compulsory purchase powers to acquire the buildings in order for the development to proceed. Richard Ledger, chair of the Long Eaton Town Deal Board, says: “The submission of the summary document to secure Government funding will be a big step forward for this exciting project, which is central to the Long Eaton Town Deal. With this funding in place the plans for Galaxy Row can really start to gain pace and we look forward to sharing further news of town centre regeneration with residents.” In July 2021 Council Executive approved heads of terms with government to deliver the projects in the investment plan using £24.8 million of town deal funding. The other projects are:
  • West Park visitor attractions, including an events space and waterfront.
  • Stable Block Managed Workspace Units. Conversion of a former stable block into office space.
  • Pedestrian and cycleway improvements, including bridges at Broad Street which connects West Park to the town centre and Britannia Road.
  • Improving Derby Road Junctions around Long Eaton Green.
  • Long Eaton High Street.