UK businesses have almost £59 billion worth of assets sitting idle
New research reveals UK businesses have nearly £59 billion worth of capital tied up in working assets and equipment they no longer need.
As pressure mounts to find new ways to reduce the cost of doing business, reuse specialist, Ramco, is urging businesses to contribute to the circular economy and find new homes for idle items – rather than letting them go to waste.
The new data shows 67% of respondents – as many as 3.7 million UK businesses – admit they have good quality, working equipment they no longer need. The survey also revealed individual organisations could have an average of over £10k worth of assets sitting idle.
Conducted by Censuswide, Ramco’s research highlights 75% of senior managers dislike the idea of unwanted equipment being scrapped or left to ruin in their business. Despite this, 59% say they have disposed of working equipment by sending it to landfill in the last five years.
With demand for second-hand business assets at the highest point in Ramco’s 26 years of operation, founder and MD Neil Sanderson says the research findings are frustrating: “The second-hand market for consumer goods is booming through platforms like eBay, Vinted and the rise of fashion rental. It’s the same picture for the commercial second-hand market so to discover businesses have such huge capital tied up in good assets they no longer use when costs for doing business are rising, is hard to hear.”
Topping the list of second-hand business equipment sought by Ramco’s buyers are electrical goods, followed by industrial and plant machinery. And 66% of businesses say they regularly seek to purchase second-hand equipment before looking to buy new.
Neil continues: “It’s frustrating to see how much untapped potential there is when it comes to second-hand business goods. From catering equipment to plant machinery and vehicles, across the country there’s a mountain of good quality items being unused and left to ruin.
“As the cost of doing business spirals, we’re urging businesses to use this opportunity to review their assets and where they’re no longer needed, give them a new lease of life instead of letting them go to waste. It’s an opportunity to reduce an organisation’s carbon footprint, minimise storage costs and generate capital. None of us can afford to waste resources – for the planet and for profit.”
To help organisations see the potential in their unwanted equipment, Ramco has launched a new value finding tool to illustrate the carbon savings and financial return which can be generated by giving assets a new lease of life.
Business confidence remains steady in East Midlands reveals new report
As Business confidence fell in six of the UK’s twelve regions and nations, the East Midlands has managed to hold steady reveals a new report.
The Business Barometer from Lloyds Bank Commercial Banking reveals that firms’ expectations for wage growth eased back this month, with the proportion expecting 3% or more for their staff in the next twelve months falling to 26% from 29%. Nevertheless, pay growth expectations remain high relative to pre-Covid outcomes and suggest that difficulties persist in finding the right staff to fill vacancies.
Hiring intentions rose for the first time in five months. Firms’ expectations regarding their staffing levels for the year ahead improved for the first time in five months. Nevertheless, with the net balance trending lower in recent months, it still points to slower employment growth ahead for the economy. Forty-two percent (up from 39%) anticipate a higher headcount and 21% (down from 23%) forecast a smaller workforce. The resulting net balance rose to 21%, from 16%, a three- month high but still lower than the first half of the year.
Business confidence in the manufacturing sector across the UK fell for a fifth straight month, down 1 point to 13%, the lowest since February 2021. Weaker confidence was also evident among firms in retail and services. Confidence in the retail sector declined 6 points to 9%, while services confidence edged down 1 point to 16%, both the lowest since early 2021. Construction confidence moved up 10 points to 20%, but it remains weaker than in the first half of the year.
London, the North West and the West Midlands were the most upbeat regions, with confidence above the UK average and rising by between 8 and 16 points, while the East of England and Wales also recorded stronger confidence, albeit from a lower base.
Commenting on the figures, Hann-Ju Ho, Economics & Market Insights for Lloyds Bank Corporate & Institutional Banking says: “While business confidence has marginally fallen this month, along with a drop in forward looking economic optimism, it is encouraging to see businesses still looking to increase their headcounts. However, cost pressures remain evident as businesses raise prices to protect their margins and wage pressure continue to be impactful.”
Paul Gordon, MD for SME and Mid Corporates for Lloyds Bank Business & Commercial Banking adds: “While confidence has marginally decreased this month, this also comes at a time of great economic uncertainty. The fact that it has only fallen by 1% suggests that businesses are showing resilience. As we head into the winter months and pricepressures continue, energy price increases will start to bite and we are seeing continued pressure on pay expectations…”
Former Aston Martin VP joins Browne Jacobson Manufacturing & Industrials sector board
Law firm Browne Jacobson has appointed former Vice President and Chief Planning Officer (CPO) of Aston Martin Lagonda, Nikki Rimmington as its first Non-Executive Director (NED) of its Manufacturing & Industrials sector strategy board.
This is one of several sector-driven appointments for the firm’s corporate sector in recent months which includes leading General Counsel (GC), Anneliese Reinhold as the firm’s first Non-Executive Chair of its corporate sectoral strategy board.
Working closely with partner Declan Cushley who leads the firm’s corporate sector market group, and partner and head of Browne Jacobson’s Corporate Manufacturing & Industrials sector, Paul Kirkpatrick, Nikki brings significant expertise in strategic planning and implementation, corporate finance, project delivery, operational performance management and business transformation which will support the firm and its lawyers in driving the Manufacturing & Industrials sector strategy, which is part of the firm’s wider corporate sector strategy.
Nikki has over 20 years’ experience predominantly in the automotive and industrials sector but has worked across various other business service lines during her career. Nikki is currently the Strategy Development Director for InoBat Auto – a European company specialising in the pioneering research, development, manufacture and recycling of innovative electric batteries. Before that, Nikki spent 13 years working in multiple roles at Aston Martin which included being Vice President and CPO where she was responsible for product lifestyle planning, the implementation of major revisions to the product plan, leading on business performance analysis and being involved in a significant restructure of Aston Martin’s planning function. Before that, Nikki worked as an associate at A.T. Kearney Management Consultants and spent five years at Jaguar Land Rover as a vehicle safety integration engineer.
This appointment endorses the firm’s commitment to making the legal profession more diverse and inclusive. It also follows on from its official partnership with O Shaped in May 2022, which is an innovative movement with a mission to drive positive change within the legal sector.
Speaking on the appointment, Declan Cushley, said: “We are delighted to have appointed Nikki as the NED for our growing Manufacturing & Industrials sector. She has had a very successful career in the automotive industry, working with some of the UK’s finest motor brands and has a deep understanding of market changes and trends including the challenges that the assembly line and supply chain is coming up against, the technological landscape and the key legislative changes that are changing the face of both the UK and global automotive sectors, as well as the wider industrial sector.”
“Nikki’s appointment underpins our commitment to bolstering our Manufacturing & Industrials offering and to being an O Shaped law firm that is striving for effective change, not only in the legal landscape but across the sectors and industries we are supporting .”
Paul Kirkpatrick added: “Nikki is an absolute expert in her field and was an essential part of Aston Martin’s ambitious and successful growth strategy over a 13-year period so we are pleased to welcome her to our board, where she will support us to work even more creatively with our broad manufacturing client base and gain a deeper understanding of how this fast moving sector is going to transform in the future and what impact this will have on our clients and on the consumer.”
Nikki commented: “Browne Jacobson has a strong reputation for continuously providing its clients with creative solutions to complex problems. They have extensive experience of working with some of the world’s leading brands and suppliers, helping them make the right decisions for their business and connecting them to the right commercial opportunities. They are also deeply invested in having a positive impact on a host of societal issues that affect their clients such as sustainability, so I am pleased to be supporting this dynamic and forward looking firm and practice in continuing to deliver great results to its clients.”
Browne Jacobson’s national Manufacturing & Industrials practice has a diverse range of specialist industry knowledge from our experience of advising and representing a rich portfolio of world-leading brands and household names from across the automotive and the food and drink sector. The team works with manufacturers, suppliers, distributors, national retailers, restaurant chains and principal businesses within the supply chain. The team specialise in business-critical projects, multi-jurisdictional data protection and privacy issues, commercial issues, regulatory and compliance matters, mergers and acquisitions, trading arrangements, brand protection, competition issues, property management and a variety of employment matters.
GXO Logistics expands into 170,000 sq ft facility in Wellingborough
Logicor, a leading European owner and manager of logistics real estate, has let its 170,598 sq ft Wellingborough distribution / production facility to GXO Logistics, on a new long- term lease.
Wellingborough170 will be used by the leading supply chain partner to help their customers fulfil increasing orders.
Located on Park Farm Industrial Estate to the West of Wellingborough, a strategic logistics location in the East Midlands, with access to the M1 and A14 East Coast ports, Wellingborough159 is positioned in an established industrial and logistics park. Nearby occupiers including TNT, DHL and Co-Op.
Jack Garrett, Senior Asset Manager – UK, Logicor comments: “Increasing numbers of occupiers are being attracted to the connectivity credentials offered by this location, along with its strong population growth and highly skilled local workforce.
“GXO Logistics already have a presence nearby and know the area well, making this refurbished, high-quality distribution facility the ideal choice for them.”
Burbage Realty and DTRE advised Logicor.
All remaining employment and trade units snapped up at Nottingham development
A leading investor in UK urban logistics has completed the acquisition of all the trade and employment units at a mixed-use development at Teal Park in Nottingham.
Northwood Urban Logistics has purchased the third and final phase from joint-developers Warwickshire-based AC Lloyd Commercial (ACL) and Nottingham-based Henry Davidson Developments (HDD).
Selling the six large employment units totalling 116,835 sq ft is the final part of the deal, meaning the specialist investor in UK logistics sites now owns the entire park with the exception of Storage Giant.
Northwood Urban Logistics had already acquired phase one and two of the 56,511 sq ft trade park which includes Toolstation, Screwfix, Howdens, Trent Valley Windows, Trent Vehicle Charging, Karcher UK and Paintwell.
Mark Edwards, managing director at AC Lloyd Commercial, said Teal Park was proving to be a huge success for businesses from a wide range of sectors.
He said: “This was our first major development in the East Midlands and the Teal Park site has proved to be a fantastic success.
“The final piece of the jigsaw has been the legal work on selling the final phase of the employment and trade units to Northwood Urban Logistics which has been completed, and Teal Park is certainly thriving.”
Richard Croft, director at HDD, added: “The final six employment units which range from 9,606 sq ft to 31,553 sq ft are now under the ownership of Northwood Urban Logistics who will have responsibility for marketing the site. The development is a real success story for the local area, so far Teal Park has attracted a number of high-quality operators and I’m sure it will go from strength to strength.”
Multi Million proposal for retirement/care village in Lincolnshire
Plans for a new retirement/care village in Welton have been submitted to planners by Saunders Boston Architects on behalf of Lace Housing.
The plans allow for some 62 apartments featuring communal and staff facilities, and 10 bungalows complete with gardens, vehicle access and parking.
A design and access statement states: “The main objective of the proposed development is to enable older people to live as ordinary a life as possible in their own homes”
It continues: “The proposed accommodation will be purpose built to meet the changing needs and requirements of older people. Residents will able to access support and enablement services.
The company is looking to develop land to the north western edge of the wider development, bordering Prebend Lane to the east to encompass up to 72 extra dwellings; specifically for elderly residents.
The design of the development, according to the developer, seeks to create a modern, relaxed, spacious and welcoming addition to the housing stock within the town using a mix of local materials and spatial planning to integrate the proposals into the existing fabric of the town and the surrounding new development.
The development will also promote the feeling of a community that integrates residents of both the apartments and the bungalows with the wider development through the creation of new high quality public spaces and pedestrian links through the site.
An essential element of the service is the effective management of both the accommodation and access to a provision of support services that allow residents to regain and retain a level of independence.
The design of the facilities provided also ooks to offer older people a wide range of social, recreational and intellectual opportunities. It will be designed to offer flexibility so that some space is available for additional uses, which may be demanded in the future.
West Lindsey planners will discuss the proposal at their upcoming meeting.
Co-op completes £600m sale of forecourt estate
The Co-operative Group has completed the £611m sale of their petrol forecourts estate to Asda as stated on the London Stock Exchange this morning.
The transaction includes 129 petrol forecourt sites, spread across the UK and represents 5% of Co-op’s retail estate of 2,564 stores.Recently appointed Shirine Khoury-Haq, the Chief Executive at the Co-op Chief Executive at the Co-operative Group comments: “This transaction is in line with our strategy to move away from operating petrol forecourts and supports our vision of Co-operating for a fairer world while building our core leading convenience business.
“I would like to thank our incredible colleagues in these stores, and we will work closely with Asda to ensure a smooth transition.”
The transaction is due to complete in Q4 2022, although the acquisition is subject to review by the Competition & Markets Authority (CMA).
The co-op has stated that its primary focus is on developing further its leading core convenience proposition, and the proceeds from the sale of its relatively small non-core petrol forecourt business, will be used to:
· Reinvest into Co-op’s leading core convenience business centred around its retail estate, as well as its growing wholesale, franchise and e-commerce operations, including new convenience stores in the heart of more communities
· Invest in Co-op’s pricing, store operations, technology, and logistics
· Support the reduction of Co-op’s net debt
Reopening the Ivanhoe Line would have significant business benefits, says East Midlands Chamber
A bid to reopen a passenger railway line between Burton upon Trent and Leicester has taken a significant step forward – and East Midlands Chamber says there could be significant benefits for businesses along the route.
The Campaign for Reopening the Ivanhoe Line (CRIL) has led a movement to restore the 31-mile line, which was sacrificed in the 1960s and 1970s as part of the Beeching Cuts – when British Railways chairman Dr Richard Beeching closed thousands of stations and hundreds of branch lines to make the nationalised railways profitable again.
After receiving Government funding to conduct a feasibility study on its reopening last year, the Department for Transport announced in June that CRIL’s scheme was among nine – chosen from 39 schemes – rail projects authorised to move on to the next stage as part of the Restoring Your Railway initiative.
Network Rail will now provide funding to conduct a detailed study of the costs of construction and scrutinise the benefits as part of a full outline business case. If this confirms the line’s viability, it will carry out design work and, subject to Government approval, work could begin in mid-2024 should it receive parliamentary approval ahead of a potential opening 2026 opening date.
The route includes eight possible railway stations – in Drakelow & Stapenhill, Castle Gresley (for Swadlincote), Moira, Ashby-de-la-Zouch, Coalville, Ellistown, Meynell’s Gorse and Leicester South. However, at this stage of the project, only Gresley, Ashby, Coalville and Leicester South are included in the business case Network Rail is reviewing.
East Midlands Chamber is now supporting CRIL to engage with businesses along the route, with a member of the group presenting at a recent forum for Leicestershire-based members.
The Chamber’s chief executive Scott Knowles said: “Following the monumental efforts from the CRIL team of volunteers to reopen this historic railway line, bringing the project into the scope of Network Rail is a welcoming development and will raise hopes it can be brought to life.
“While there is still a long way to go, bringing this important rail route back to life would provide a boost to the economy for the many communities along the route by opening up further connections with the rest of the region and country.
“Improved connectivity would enable companies to tap into a wider labour pool across Derbyshire and Leicestershire. The proposed Leicester South station, meanwhile, would complement Leicester City’s plans for an expanded King Power Stadium and wider development scheme.”
Network Rail and Campaign for Reopening the Ivanhoe Line want to engage with businesses
CRIL, which was founded in 2019, will support Network Rail as a member of the programme board by engaging with local politicians and businesses. The relevant local authorities will decide on where stations, access and car parking are located. The group’s business liaison manager Stacey Ash said: “The decision to take our project to the next stage is a fantastic boost for the communities along the Ivanhoe Line, which could benefit from improved journey times and better connectivity across the region, regeneration of areas surrounding stations and a healthier environment. “We now need to engage even more closely with our local stakeholders, including businesses and residents, to help us understand their needs so we can fully articulate the benefits a reopened Ivanhoe Line will deliver.” A Network Rail spokesperson said: “We welcome the opportunity to work with all stakeholders along the line to further develop the business case to justify the reopening of the Ivanhoe Line to passengers, building on the work done so far by CRIL. “We encourage businesses to think about how a reopened line may be incorporated into their future business plans and to feedback via CRIL any economic or employee benefits they feel it might bring to them.” To speak with CRIL about how the Ivanhoe Line would support their business or employees, contact Stacey Ash at crilbusinessliaison@gmail.com. For more information on the CRIL, visit www.ivanhoeline.org.Two weeks to go until the East Midlands Expo!
In just two week’s time, on Monday 14 November 2022, the free to attend East Midlands Expo will return!
Taking place at the East Midlands Conference Centre, Nottingham, the established event of over 20 years has everything you require for a great day of business generation, with the chance to meet more potential clients in one amazing cost effective day, than it would take months out on the road.
A well targeted exhibition and networking opportunity, aimed at the construction, property, business, investment, finance, professional services and related B2B markets, register to attend the event for free here.
The day, for which Business Link is a proud partner, will begin with exhibitor breakfast networking, with the exhibition opening to attendees at 9am.
A seminar will take place between 10:45am and noon with BSP Consulting’s directors Mark Rayers and Tony Goddard lined up to present ‘Sustainability and how engineering plays its part’.
Not to be missed, a special networking lunch (for which tickets can be purchased here) will then take place between 12:15pm and 2:15pm, and the exhibition will close at 3:30pm.
For more information on exhibiting at the event click here.
To register to attend the event for free click here.
To secure tickets for the networking lunch click here.
From property agents to developers, architects, contractors, investors, PR firms, and more, see the list of current exhibitors here.Businesses advised to act now ahead of 2025 landline switch off
Businesses are being urged to act now ahead of the switch off of the UK’s analogue phone network in 2025.The move will see the traditional landline system transfer to a fully digital phone network in order to meet the demands of modern internet and mobile technology, with telephone wires and buried copper cables becoming a thing of the past.
Colin Hewitt, BT Product Specialist with Integrity IT Solutions, is advising any businesses which still rely on the analogue network to make the switch to digital now so they can take advantage of better connectivity and communications.
He said: “The transition to a digital phone service has been underway for some time, with many businesses and organisations having already made the move.
“This is an opportunity to not only ensure that you are ready for the future but also to make the most of the improved connectivity which comes with it. From making calls on any device from anywhere on the same number, to linking business applications with video calls and chat, the technology is there to help your business operate more efficiently and effectively.”
In 2015, Openreach announced that the existing copper Public Switched Telephone Network (PSTN) and ISDN (Integrated Services Digital Network) network would be switched off by the end of December 2025, with calls instead routed over Internet Protocol (IP), a faster, more reliable and more cost effective voice system.
Colin said: “These traditional technologies have been the backbone of the UK’s landline network for decades but we’re now demanding much more from them than they were designed to deliver. It’s a similar situation to when the UK switched from analogue to digital television in 2012.
“Although 2025 may seem like a long time away, from September 2023 Openreach will not install any new PSTN or ISDN lines so it’s worth looking into the alternatives sooner rather than later so your business isn’t caught out.”
Colin said upgrading to a digital system offered opportunities to change the way you communicate.
He said: “It’s not just about doing what you do now but digitally; it brings new ways of working. For example, rather than simply choosing like-for-like hardware replacements, consider how your current set up could be improved, taking into account how your team currently uses technology.
“Most businesses use phone lines for more than just calls so you’ll need to identify items such as alarms, door entry systems, payment terminals or cash machines and plan how these devices will operate in the future.
“By making the move to digital now, you will see immediate benefits to your business including reduced ongoing costs, seamless maintenance and upgrades to software and services, and better security thanks to the reliability and flexibility of cloud-based applications.”
The 2025 switch off covers the whole of the UK, including any rural areas where broadband is not currently available. As part of the process, these areas will be upgraded or services accessed via alternatives such as 5G solutions.
