Shift in customer spending a top challenge for Midlands businesses

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A shift in customer spending is one of the biggest challenges facing Midlands businesses over the next six months, as the cost of living crisis continues to bite. According to BDO LLP’s bi-monthly Economic Engine survey of 500 mid-market businesses, more than half of regional companies (59%) said a decision by customers to cut back on spending is their biggest concern. Supply chain issues also continue to cause a significant headache for 31% of Midlands businesses, as problems such as delayed deliveries, stock shortages and cost increases, persist in the market. The survey by the accountancy and business advisory firm found that as purse strings tighten, businesses are having to explore ways to save money in the coming months. More than a third of Midlands businesses (36%) are reducing their energy usage as a way of cutting overheads, with 49% admitting that they are tapping into Government support schemes, such as the Energy Bills Discount Scheme and the Industrial Energy Transformation Fund, to ease the pressure. The knock-on effect of rising costs is that 38% of Midlands businesses are being forced to shelve expansion plans, such as eyeing international markets, as they attempt to balance the books. Kyla Bellingall, regional managing partner in the Midlands, said: “Customer spending habits have always dictated how many regional businesses approach day-to-day operations and longer term growth. “As the battle with inflation continues to impact all facets of the regional economy, Midlands companies are having to be laser focused on business priorities for the remainder of 2023, with debt financing and restructuring workforces at the top of the list for businesses. “What is reassuring to see is, despite the continued pressures facing businesses, growth ambitions remain firmly on the agenda, with 28% of Midlands companies looking to recruit more people with the right skills, as a way of meeting strategic aims.” However, according to BDO’s Economic Engine survey, Midlands businesses still believe the Government has a significant part to play in helping the regional economy to weather the ongoing storm. Bellingall added: “Midlands businesses recognise that in order to bring in the right talent there needs to be a concerted effort on the Government’s part to provide support around specific skills shortages facing certain market segments, whether that’s additional funding for apprenticeships, or more investment in education for specific roles. “Central to future success in the region is the ability for businesses to remain ambitious, focused on growth, and hungry for innovation. Unsurprisingly, 34% of Midlands businesses want the Government to offer more financial support to help them meet those specific aims. “Without more generous funding packages, replacing the likes of Horizon Europe, then regional businesses will continue to struggle in the face of ongoing pressures.”

BSP Consulting appointed on NHS Shared Business Services Framework Agreement

East Midlands-based civil and structural engineering company BSP Consulting has been named as a supplier on an NHS Shared Business Services (NHS SBS) Framework Agreement.

BSP won a place on the Healthcare Planning, Construction Consultancy and Ancillary Services (HPCCAS) Framework Agreement to provide civil and structural engineering services.

The appointment opens up a pipeline of opportunities for the company, which has its headquarters in Nottingham and offices in Derby and Leicester.

BSP Managing Director Carl Hilton said: “This is great news for BSP Consulting. Over many years we have completed numerous projects, including new build hospitals and health centres and the re-modelling on many existing hospital sites to help to improve facilities and patient care.

“Being awarded a place on this NHS SBS Framework Agreement highlights our expertise in this field and gives us the opportunity to increase our work with hospitals and other healthcare operators in the future.”

BSP was previously on an NHS SBS Framework Agreement as a sub-consultant but has now been awarded a position in the company’s own right. The framework agreement runs for four years.

“We are currently on more than 20 framework agreements, which is providing a wealth of opportunities for the business – helping to cement our position as one of the largest independent civil and structural engineering companies in the East Midlands,” added Carl Hilton.

New commercial scheme set for central Lincoln

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Lincoln contractor, Stirlin, has revealed details for a new commercial scheme in central Lincoln. The scheme, Witham Enterprise Park, is planned to offer nine new industrial units with sizes starting from circa 956 sq ft, designed by Johnathan Roberts Architects and constructed by Stirlin. The 1.22-acre site, located off Newark Road, adjacent to the Esso fuel station and the River Witham, serves as a prime gateway into Lincoln City Centre. Split across three phases, Witham Enterprise Park will provide over 16,000 sq ft of employment space. Tony Lawton, Managing Director of Stirlin, says: “We’re delighted to collaborate with our joint venture partner to bring forward Witham Enterprise Park. The existing site will greatly benefit from a complete regeneration and there is a notable lack of sufficient contemporary industrial space within the city centre. “We are looking forward to delivering another fantastic project that will boost the county’s economic growth and support the local business base. With its excellent access to Lincoln City Centre and the A46, Witham Enterprise Park will act as the perfect hub for a variety of both local and national enterprises.” Jasper Caudwell, Chartered Surveyor at Pygott & Crone, says: “We are delighted to be named as sole agents on another one of Stirlin’s leading developments in Lincoln, Witham Enterprise Park. The scheme sits in an extremely attractive and strong strategic position located just off Newark Road and will fill a much-needed gap in the market for accessible, modern warehouse space. “The success of the scheme has already been proven by the early interest off-plan, with two units already under offer. We recommend interested parties to get in touch at the earliest to see how your business could benefit from being located at Witham Enterprise Park.” Site preparation works are underway, with construction due to commence imminently.

New plan to uplift skills for Derbyshire and Nottinghamshire’s people and businesses launched

A new localised strategy to arm people with the skills Derbyshire and Nottinghamshire’s businesses most urgently need to meet economic, technological, climate and social challenges has been published. The Local Skills Improvement Plan (LSIP) is a UK Government Department for Education (DfE) project designed to place local employers at the heart of a specific region’s skills system. This means consulting with employers of all sizes and sectors to understand what skills, capabilities, qualifications, and attributes local companies need from their staff to meet growing productivity, tech, environmental and economic issues, and working with training providers to deliver the right range and calibre of courses. The LSIP for Derbyshire and Nottinghamshire has been led and delivered by the local branch of the Federation of Small Businesses (FSB), due to their close but independent connections to local employers, stakeholders and training professionals. Derbyshire and Nottinghamshire’s new skills plan has found that while the area has enormous economic potential in manufacturing, transportation, healthcare, tourism, and technology, there are a range of skills and labour vulnerabilities in the counties that could threaten growth and productivity if not addressed. Work readiness, digital capabilities and navigating Net Zero opportunities were all found to be of concern among employers, while growing occupational gaps in construction, information and communication technologies, engineering and conservation particularly must be closed to maximise opportunities in service industries, infrastructure, energy security and industrial decarbonisation. The LSIP report outlines the needs of local businesses, especially in light of recent shifts in the workforce such as the impact of Covid lockdowns, remote working and changes to how young people gain exposure to the workplace. Local problems in recruiting skilled tutors in certain sectors has been highlighted as an urgent need to be tackled. Understanding how the area’s vast size – as well as having several areas of deprivation – create challenges for people accessing education and work factor into the plan. Evolutions in Artificial Intelligence, automation, and the pressures of adapting to climate change also shape the LSIP’s recommendations. The LSIP has put forward 18 actionable priorities that require local training providers, councils, trade bodies and other regional stakeholders to make changes before June 2025. The plan has been formally approved by the Secretary of State for Education The Rt Hon Gillian Keegan MP. Local lead for the LSIP and author of the approved report, Natalie Gasson-McKinley MBE, development manager for FSB, said: “I’m delighted that Government has granted approval and officially unveiled our strategy aimed at providing the local community with the precise skills required by businesses in Derbyshire and Nottinghamshire. “The LSIP encompasses both a structured methodology and a comprehensive blueprint, focusing on active engagement with employers. This approach ensures a thorough grasp of their critical skill deficiencies, challenges, and prospects, while aligning these requirements with local skills provision. It represents a bold stride towards the future, with the welfare of Derbyshire and Nottinghamshire’s people and businesses at its core. “We are instigating reforms tailored to a workforce spanning generations. The task of catering to diverse generational needs and expectations across Derbyshire and Nottinghamshire is undeniably challenging, yet it’s a challenge that we, alongside local training providers and stakeholders are eager to embrace. “A robust skills foundation in any locality is intimately tied to business efficiency and the well-being of individual employees. The opportunity to play a role in enhancing these vital facets has been truly rewarding. With the official release of the plan, I eagerly anticipate collaborating with our local educational institutions, independent training providers, governing bodies, skill development entities, and industry leaders to transform this vision into reality.” Following approval and publication of the LSIP, the Federation of Small Businesses can now continue to work with these stakeholders – as well as monitor and report progress – over the next two years.

Chesterfield firm wins packaging deal for Estee Lauda ranges

Chesterfield’s Robinson Paperbox Packaging has been commissioned to manufacture two promotional boxes for Estee Lauder’s premium haircare brand Aveda. Pierre-Alexandre Latimier – marketing assistant for Aveda EMEA said: “We have used Robinson Paperbox Packaging for a number of projects previously. Their pricing and service levels are one of the main reasons we chose them for this project. With demanding lead times to work to it’s great to have a supplier that can deliver on time and in full.” Jon Walker, new business development manager for Robinson Paperbox Packaging said: “These boxes were manufactured on our new SATE rigid box line which has been recently installed. This machine is the most advanced on the market and produces exceptional quality boxes”.

Nomination deadline approaches for the East Midlands Bricks Awards 2023

With only a short time remaining until nominations close on Thursday 31 August for the East Midlands Bricks Awards 2023, submit your entries NOW! Reward the hard work of your team and showcase your successes. The annual East Midlands Bricks Awards celebrate the region’s property and construction industry, its people, and outstanding developments. Award categories 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, sustainable development of the year, contractor of the year, and overall winner. Winners will be revealed at a glittering awards ceremony on Thursday 28 September, at the Trent Bridge Cricket Ground – an evening that will also provide plenty of opportunities to forge new contacts with property and construction professionals from across the region. To enter your (or another) business/development for the East Midlands Bricks Awards 2023, please click on a category link below or visit this page:
The Overall Winner of the East Midlands Bricks Awards 2023 will also be awarded a year of marketing/publicity worth £20,000. After winning the Deal of the Year award at last year’s event, Trevor Wells, director at Wells McFarlane, said: “For Wells McFarlane, the Broadnook Garden Village deal involved more than a decade of work, requiring extensive collaboration and detailed local knowledge to navigate its numerous complexities. The sale completed in July [2022] and will allow for the creation of an entirely new community comprising homes, businesses, a primary school, leisure facilities and natural open space. It’s fantastic news that our years of hard work are now recognised as the East Midlands’ most significant deal of 2022. We would also like to thank East Midlands Business Link for organising such a successful and well-attended event.”

Book your tickets now

Tickets can now be booked for the East Midlands Bricks Awards 2023 – click here to secure yours. The special awards evening and networking event will be held on Thursday 28 September 2023 in the Derek Randall Suite at the Trent Bridge Cricket Ground from 4:30pm – 7:30pm. Connect with local decision makers over canapés and complimentary drinks while applauding the outstanding companies and projects in our region, and hear from Mike Denby, Director of Inward Investment and Place Marketing at Leicester City Council, our keynote speaker. Dress code is standard business attire. Thanks to our sponsors:                                                             To be held at:

Banking on “discretion” a PR disaster for Coutts: by Greg Simpson, founder of Press for Attention PR

Greg Simpson, founder of Press for Attention PR, reflects on the Coutts/Farage situation and the impact of taking a political stance as a business.  Imagine carefully building a global brand over three centuries that is essentially based on discretion and then it is all undone in a matter of moments after the very modern “cancel culture” card is waived. The irony of course being that this stellar reputation has just been annihilated by none other than its own Reputation Committee. That’s what has happened to Coutts after a certain N Farage was put onto a “glide path” from his Coutts accounts to a generic NatWest account because he no longer met the criteria to qualify for Coutts’ exclusive services. In an internal document it transpired that the bank views Nigel as a “disingenuous grifter” who promoted “xenophobic, chauvinistic and racist views.” Now, that may well be the opinion of the bank and perhaps many readers of this column. It may well be the absolute opposite. The problem is, the banking brand that is built on discretion has been found wanting for that exact corporate value and it probably couldn’t have happened with a worse client in mind given Nigel’s skill in riding the media waves when the tide turns his way. Never one to let personal embarrassment get in the way of an opportunity, Farage has skillfully turned the topic into a wider debate about “cancel culture” recognising that this will strike chords with folk who follow him or perhaps had forgotten about him post-Brexit. “If they can cancel me, they can cancel you,” Nigel warned. Dame Alison Rose (the head of parent company NatWest) issued a public statement on Thursday and even wrote a letter to Farage apologising for the way Coutts had handled its decision to cut ties with the Brexit campaigner. This came after a series of interventions by the prime minister and senior members of his cabinet, and more than two weeks after Farage went public about Coutts no longer wanting him as a client. Rose said the comments, prepared for Coutts’ wealth reputation risk committee, “do not reflect the view of the bank,” adding: “No individual should have to read such comments and I apologise to Mr. Farage for this.” However, she stopped short of reinstating Farage as a Coutts client, instead reiterating an offer to open a basic account for him at NatWest. Ouch! Farage then accused Rose of being forced into an apology: “…so thank you Dame Alison for apologising. What I’ve actually been told quietly, privately, is that you were forced into doing this by the Treasury. “But at least you’ve done it, I suppose. But the whole letter smacks of ‘not me, guv, I mean I’m just the chief executive, I mean, don’t blame me for what the banks under my direct control are doing’.” Here’s the clever bit from Nigel. He turns the debate away from himself and shines the spotlight back onto the average person, suggesting there were thousands in the same position as him, as he vowed to battle on: “I’m afraid I can’t just walk away from this. I’ve started this, and I’ve got to continue. So thank you for the apology. It’s a start, but it’s no more than that.” Rose had said it was not the bank’s policy “to exit a customer on the basis of legally held political and personal views.” However, the problem here is twofold. Coutts is being dragged into an unseemly public debate which is all very much “poor form” and not what one would expect of a brand that has banked every royal family since way back. It is also in danger of “virtue signalling” as it tries to attract a younger clientele that is distinctly not Nigel but yet was happy enough to bank former Chilean dictator Pinochet and many more, less than savoury characters. Now, some might argue that Coutts is making a good start and that they should take a stand. Maybe it will attract a new generation of clientele to Coutts who will be delighted by this booting out of Nigel. “No such thing as bad publicity” etc. etc. etc. Nonsense. If one banks with Coutts, darling, one expects a tad more decorum and discretion. Whoever one is. A former business journalist, Greg Simpson is the author of The Small Business Guide to PR and has been recognised as one of the UK’s top 5 PR consultants, having set up Press for Attention PR in 2008. He has worked for FTSE 100 firms, charities and start-ups and conducted press conferences with Sir Richard Branson and James Caan. His background ensures a deep understanding of every facet of a successful PR campaign – from a journalist’s, client’s, and consultant’s perspective.   See this column in the August edition of East Midlands Business Link Magazine here.

Building materials supplier acquires highways waste recycling solutions provider

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Building materials supplier Aggregate Industries, a member of the Holcim Group, has acquired OCL Regeneration Limited, a provider of highways waste recycling solutions. The acquisition of the Kent-headquartered business will further strengthen Aggregate Industries’ asphalt and surfacing operations, where it is a key player on National Highways and local authority contracts. OCL was founded in 2006 as a recycled highways construction materials business. It focuses on recycling a selection of materials from highways maintenance and construction projects including aggregates, asphalts, concrete and tar, which otherwise would have to be specially disposed of. The materials are reprocessed and reused in new highway construction or maintenance projects as low carbon products, resulting in reduced emissions and in support of the circular economy. It has six depots situated in Avonmouth, Medway, Hampshire, Lincolnshire, Northumberland and Oxford. Dragan Maksimovic, CEO of Aggregate Industries UK, said: “OCL Regeneration has made great strides in the reuse of highways planings and the development of low carbon products and solutions. “This is very much in sync with our own strategy and commitment to achieve our sustainability goals and continue to deliver on our green growth objectives as a business. “The acquisition further enhances Aggregate Industries’ position in the UK highways and surfacing market and puts us at the forefront of circular construction supply and delivery. “We will gain further industry expertise and innovation through the work and product portfolio OCL has developed over the last 16 years. It also gives us a further foothold in important geographic locations and aligns with our ambition of being the leading supplier of sustainable construction materials and solutions in the UK.” Stuart Gready, founder and Managing Director of OCL Regeneration, said: “OCL is thrilled to be joining Aggregate Industries. This allows us to underpin the health and growth of the company and the security and development of our teams and services. “We look forward to optimising our existing client offering, while also having increased support to develop new and exciting innovations in the highway circularity and decarbonisation space. “Holcim and Aggregate Industries UK have an impressive portfolio of low carbon products and solutions which we are very pleased to become a part of. We will gain access to new opportunities, assets and geographies which align well with our growth strategy.”

East Midlands start-ups rise, despite historical summer lull and increasing interest rates

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Entrepreneurial spirit in the East Midlands has not been dampened by the wet weather and any historical summer lull, with the number of start-up businesses in the region increasing despite spiralling interest rates and the approach of the holiday season.

Research from the Midlands branch of R3, the UK’s insolvency and restructuring trade body, shows that East Midlands start-ups rose by 4.23% last month, from 2,269 in June to 2,365 in July. This contrasts with the same period last year when start-ups fell by 2.85%.

R3 Midlands’ figures, which are based on an analysis of data from business intelligence provider Creditsafe, also show that the monthly number of start-ups in the region has increased by almost a half [41.70%] since the end of last year, when December saw 1,669 businesses set up in the East Midlands.

The research further reveals that the monthly total of the region’s businesses with late payments on their books has continued to fall consistently since the 2023 high in February but, despite the drops, the figures remain high, with July registering 23,503 local companies with overdue customer invoices.

R3 Midlands chair Stephen Rome, a director at local law firm Thursfields, said: “It’s evident that business confidence is still there in our region, despite sizeable economic challenges, not least yet another rise in interest rates.

“Some of the factors working in our favour are the lower cost of workspaces here compared to the capital, as well as our position at the centre of the UK transport network. For start-ups having to be particularly careful with their finances, the East Midlands is an appealing economic option.

“However, while there is still scope for growth in the current environment, it is crucial that our entrepreneurs receive the best support possible to overcome the current challenges, which include stubbornly high inflation, rising costs of materials and wages as well as a squeeze on consumer spending.

“Should significant cash flow difficulties arise, there is a significant amount which can be done to rescue local companies, beyond traditional insolvency solutions, if help is taken early enough.

“It’s worth knowing that many R3 members offer a free initial consultation to those who want to explore their options.”

Create Finance wins prestigious industry award

Specialist Derby-based mortgage broker Create Finance have been awarded the title of Mortgage Broker of the Year at the Mortgage Strategy Awards 2023. The company, which is based at Connect Derby’s Friar Gate Studios, scooped the coveted award at a ceremony which took place at the JW Marriot Grosvenor House Hotel in London. Create Finance beat off competition from fellow mortgage brokers Coreco, Connect Mortgages, Mortgage 1st, The Mortgage Mum and The Mortgage Store to win the award. The company was founded in 2015 by experienced mortgage broker Gindy Mathoon. Gindy Mathoon, senior mortgage broker at Create Finance, said: “This accolade is testament to the hard work and dedication of our team. Create Finance will be celebrating its eighth birthday this year, so to be recognised as the best the industry has to offer is a real celebration of all we have worked for. “The future looks very bright, and we look forward to expanding our already excellent staff and taking the whole team with us on this brilliant journey.” Ann Bhatti, head of Connect Derby, added: “Massive congratulations to Gindy and his team for winning this fantastic national award. “To be named Mortgage Broker of the Year is a tremendous accolade and is testament to all the company’s hard work over the past eight years as a Connect Derby tenant. We would like to wish them every success for the future.” Judges at The Mortgage Strategy awards added: “Widely recognised as the ‘Oscars’ of the mortgage industry, the accolades are not awarded lightly. Several rounds of shortlisting take place before a selection of expert judges’ comb through each entry to decide on a winner. “A culmination of all the hard work and effort made by the industry over the past twelve months, the rigorous judging process associated with the Awards ensures that winning one of the 28 categories really is a mark of excellence.”