Midlands sees slowest rise in permanent placements in 16 months
The latest KPMG and REC, UK Report on Jobs: Midlands survey highlighted a slower rise in the number of permanent placements in the region at the midpoint of 2022.
The rate of increase was the softest in the current 16-month sequence, albeit still strong overall. Meanwhile, temp billings saw the rate of increase decelerate steeply to only a modest pace.
Demand for permanent and temporary staff rose also rose at a softer pace, as growth in permanent vacancies was the softest for 15 months. At the same time, the downturn in staff availability intensified for both permanent and temp workers.
The KPMG and REC, UK Report on Jobs: Midlands is compiled by S&P Global from responses to questionnaires sent to around 100 recruitment and employment consultancies in the Midlands.
Permanent placements rise at slower pace
The number of permanent staff appointments across the Midlands increased further in June. While strong overall, the latest expansion was the softest in the current 16-month sequence of rising placements. Survey members often linked hiring to additional capacity requirements as demand increased, although some recruiters commented on a lack of suitably skilled candidates.
The uptick in permanent placements in the Midlands was the joint-fastest of the four monitored regions.
Temporary billings across the Midlands continued to rise at the end of the second quarter, though the rate of increase slowed sharply from May. Despite rising consistently for two years, the latest increase was the softest in this period and only modest. According to panellists, temporary staff were taken on amid difficulty in sourcing permanent staff, however there was evidence that firms were cutting back on temps due to increased cost burdens. The Midlands saw temp billings rise at the softest pace of the four monitored English regions.
June data highlighted another robust increase in the number of permanent vacancies in the Midlands. The upturn slowed from the previous survey period however, and was the slowest for 15 months. Moreover, the Midlands noted the slowest rise of the four monitored regions.
Demand for temporary staff also rose at a softer pace. The rate of increase remained strong, yet eased to the slowest since February 2021.
Permanent staff availability falls at quicker pace
Recruiters across the Midlands signalled a reduction in the supply of permanent staff for the fifteenth consecutive month during June. The reduction was commonly attributed to candidate shortages and hesitancy to change roles amid cost of living increases. The pace of the decrease accelerated from May and was the quickest recorded for eight months. The fall in the Midlands was the second-weakest of the monitored regions, ahead of the North of England.
The availability of temporary staff in the Midlands decreased further in June. According to anecdotal evidence, some suitably skilled staff had taken on roles already, resulting in a lack of available contractors. The reduction was the sixteenth in as many months and the steepest since February.
At the regional level, the decrease in temp candidates was broad-based, with the Midlands seeing the second-slowest fall, behind London.
Substantial rise in permanent starting salaries
Latest data highlighted a sustained substantial rise in salaries awarded to new permanent joiners in the Midlands at the end of the second quarter. The rate of increase eased from May, yet remained considerably above the long-term average.
Across the four monitored regions, the Midlands recorded the strongest rise in permanent salaries.
Recruiters across the Midlands recorded a nineteenth consecutive monthly increase in hourly pay rates for short-term staff during June. The rate of temp wage inflation rose for the first time in three months and was rapid overall. At the regional level, the Midlands saw the second-slowest rise in temp pay, ahead of London.
Commenting on the latest survey results, Kate Holt, people consulting partner at KPMG UK, said: “Although the Midlands saw a further increase in the number of permanent job placements in June – its sixteenth consecutive monthly rise – demand for temporary workers in the region slowed sharply, a sign that economic pressures may be beginning to impact employers’ confidence to grow.
“As more candidates become hesitant to change roles amid the spiralling rise in cost-of-living, employers in the region face the prospect of needing to offer greater financial incentives to retain talent, thereby exacerbating wage inflation. All this suggests that, after a sustained period of growth, the Midlands jobs market is becoming increasingly fragile.”
Neil Carberry, Chief Executive of the REC, said: “The labour market is still strong, with demand for new staff high. That said, today’s data show that we are likely to be past the peak of the post-pandemic hiring spree. That pace of growth was always going to be temporary – the big question now is the effect that inflation has on pay and consumer demand over the course of the rest of the year. Whether we will see the market settle at close to normal levels, or see a slowdown, is unpredictable at this point.
“Part of the reason for unpredictability in the market is a slower economy accompanied by severe labour and skills shortages. These are already proving a constraint on growth in many firms. The government should be thinking about how to ensure all its departments enable greater labour market participation and encourage business investment funds to help address this.
“It is important to note that plenty of hiring is happening in this tight market – there are candidates out there for firms who get it right. Skilled recruitment professionals are at the heart of this, making a difference to opportunity and growth for companies and workers.”
Derbyshire nutritional supplements business acquired by US company
A family business which is one of the UK’s leading online retailers of nutritional supplements has been acquired by a Californian company for an undisclosed sum.
Nutri Advanced, which is based in Whaley Bridge, High Peak, has been sold to Metagenics Inc, which is backed by US-based private equity firm Gryphon Investors. Dow Schofield Watts advised Nutri Advanced on the deal.
Nutri Advanced was set up in 1981 by naturopath Norman Eddie and his son Ken to bring specialist nutritional supplements into the UK. The company, which now employs 40 staff, develops and supplies a range of nutritional supplements, primarily through its own ecommerce website, to consumers and practitioners in the UK and Ireland. It is renowned for its innovative products, education and training offering. The acquisition will provide an exit for Ken Eddie, who now owns the business.
Ken Eddie, founder and Managing Director of Nutri Advanced, said: “I feel extremely lucky to have spent the last 40 years working on my passion, which is to enable people to improve their health and lifestyle through nutrition and education. Over those years we have built a great business with an enviable reputation for product quality and become the number one brand in the professional nutrition market in the UK.
“In more recent years, expansion of our online B2C marketplace has transformed the business growth and attracted many new users. We have worked closely with Metagenics for over 30 years and so I’m very pleased that they will now take Nutri Advanced to the next level of growth and take forward the legacy that I started with my family.”
The Dow Schofield Watts team consisted of Dan Walker, Alex Odlin and Philip Price. Dan Walker said: “Nutri Advanced and Metagenics have a long history of working together, particularly in product development. It was clear from the start that Metagenics would be a great home for the business, and one where it could continue to flourish in a world where the demand for proactive health and wellbeing solutions has never been higher.”
Stijn Oste, vice president Metagenics EMEA, said: “For Metagenics the acquisition is part of a strategy to have a direct presence in all major EMEA countries, and to exploit the synergies of a pan-European activity in nutrition-based products and concepts for helping people to lead a healthier, happier life.”
Piers Dryden and Shaun Little of Beyond Corporate Law provided legal advice to the shareholders.
Rolls-Royce secures funding to build Direct Air Capture demonstrator in Derby
Rolls-Royce has secured £3m from the UK Government to build a demonstrator Direct Air Capture (DAC) system, which could play a vital role in keeping global temperature rises to below 1.5C by removing CO2 from the atmosphere.
The demonstrator funding comes from the Net Zero Innovation Portfolio (NZIP) through the Department for Business, Energy and Industrial Strategy (BEIS) and helps deliver on the UK Government’s 10 Point Plan for a Green Industrial Revolution. It follows initial Phase 1 funding of £250,000 awarded in 2021, that allowed Rolls-Royce to design the demonstrator in partnership with the Commonwealth Scientific and Industrial Research Organisation (CSIRO).
The demonstrator, to be built in Derby, will be operational during 2023 and be capable of removing more than 100 tonnes of CO2 per year from the atmosphere. CO2 removed from the atmosphere by such systems can be stored ensuring that it no longer contributes to global warming. It can also be recycled to make fuel for hard to decarbonise sectors such as aviation, enabling the more rapid phase out of fossil fuels.
A full-scale version of this plant could remove 1 million tonnes per year. The UK’s target is to remove 25 million tons of CO2 per year by 2030; and the International Energy Agency (IEA) forecasts that 980 million tonnes a year will need to be removed globally to limit global warming to 1.5C.
Jess Poole, Direct Air Capture lead for Rolls-Royce, said: “Every credible climate change model requires us to decarbonise today’s emissions, as well as removing CO2 already in the atmosphere via carbon negative technologies such as DAC. Our system combines our expertise in moving large quantities of air efficiently and integrating complex systems, which have been gained from designing world-leading jet engines, with novel DAC technology developed by CSIRO.
“Together the system works like a giant lung, sucking in air, absorbing the CO2, and releasing what is not wanted. We use a water-based liquid to wash around 50% of the CO2 from the captured air. Our technology is distinctive because very little water is used, and the liquid is recycled at low temperatures, making it energy efficient. Other technologies consume a lot of water and require substantial amounts of energy to generate heat for the separation of the CO2.
“This funding is great news for the team, and we’re excited about the future potential of this technology to help fight climate change.”
The demonstrator system will be built and operated by an in-house team at Rolls-Royce in an existing aerospace test facility, called Test Bed 52, on its Derby campus. This facility was previously used to test jet engines and is built for drawing in air and measuring how well new technologies perform.
Plans approved for Extra Care scheme in Northamptonshire
Planning permission has been secured for Housing 21 to provide 65 new affordable homes in Oundle.
The Extra Care scheme, located on St. Christopher’s Drive, will provide much-needed one- and two-bedroom apartments for older people with the assurance of an on-site care team for residents if and when they need it. There will be an option to purchase through shared ownership or to rent.
Peter Smith, construction project manager at Housing 21, said: “We are very pleased that planning permission has been secured for this Extra Care scheme which will be Housing 21’s first in North Northamptonshire. The site on St. Christopher’s Drive is well-placed to serve the people of Oundle and beyond. We look forward to working with members of the community to create a development that meets their expectations.”
Michelle Jeffrey, land director at Persimmon East Midlands, said: “We are delighted to work with North Northamptonshire Council and Housing 21 to enable them to deliver this much-needed scheme.”
The apartments were designed by Saunders Boston Architects.
Residents will benefit from a range of communal facilities, including a resident’s lounge, activity room, guest suite and assisted bathing suite. Additional facilities will also be available for use by the wider local community including a café/bistro and hair salon.
It is hoped that construction will begin in early 2023 with the scheme scheduled to open in late 2024.
Showcase excellent work at the East Midlands Bricks Awards 2022
A key event in the business calendar, showcasing the excellent work of the region’s property and construction sector, the East Midlands Bricks Awards 2022 will return on Thursday 15 September, at the Trent Bridge Cricket Ground.
Nominations for the prestigious event are open, and now is the ideal time to make your submissions, ahead of next month’s deadline (August 19th).
Shine a light on your projects and team, reward their hard work, and boost morale.
To submit a business or development for the East Midlands Bricks Awards 2022, please click on a category link below or visit this page.
After winning an award at the 2021 event, Allan Joyce Architects said: “We are delighted to have won Architects of the Year at the East Midlands Bricks Awards. It is lovely for the whole team, who always work incredibly hard to create amazing designs, to be recognised in this way. It was wonderful to attend the event in person and to hear about all of the great projects happening in our region and the companies involved in them.”
Find out who last year’s winners were here.
Thanks to our sponsors:
- 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
- Overall winner (this award cannot be entered, the winner will be selected from those nominated)
Book your tickets now
Tickets can now be booked for the awards event – click here to secure yours. The special awards evening and networking event will be held on 15 September 2022 in the Derek Randall Suite at the Trent Bridge County Cricket Club 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. The event will also welcome John Forkin MBE DL, Managing Director at award-winning investment promotion agency Marketing Derby, as keynote speaker. Dress code is standard business attire.
To be held at:
Funding boost to help with completion of Kettering’s flagship cultural quarter regeneration project
Progress on Kettering’s flagship cultural quarter regeneration project will be discussed at a meeting of North Northamptonshire Council’s Executive this week.
Cornerstone aims to revitalise and unify the town centre site which includes Alfred East Art Gallery, Kettering Library and Kettering Museum.
Once complete there will be significant improvements to the Alfred East Art Gallery and Kettering Library and a new two-storey extension to the rear of the Art Gallery.
Executive will consider a report that recommends a further boost of capital funds to ensure that the main building work will be completed this summer.
Since the last Executive report in March, as this important project has progressed, further details and challenges have had to be addressed, including supply of building materials and the co-ordination of their delivery, which is a challenge not just being faced in this project and is impacting construction projects nationally.
Because of the challenges, and the fact that the cost of materials has now increased, an additional £412,000 contingency is now needed to cover additional costs and ensure the summer deadline is met to prevent further costly delays.
Cllr Helen Howell, the council’s deputy leader and executive member for sport, leisure, culture and tourism, said: “It’s really positive that the project is progressing despite the challenges and we’re starting to see the many elements coming together. Once complete it will be a wonderful addition to the town and also to the wider North Northamptonshire area.
“It’s essential that now the main capital works are so near to completion that we get the project over the line and this new funding boost will make that a reality.”
Cllr Jason Smithers, leader of the Council, said: “It’s important that the building works are finished as soon as possible to avoid further costly delays.
“Cornerstone will bring many benefits to the wider community and attract visitors, helping boost the local economy. I’m really looking forward to seeing it complete.”
A total of £3million funding for the project has come from the Getting Building Fund, which is administered by South East Midlands Local Enterprise Partnership (SEMLEP), with the remainder from local authority funding.
Once complete, Cornerstone will provide:
- Flexible workspace and exhibition space supporting start-ups, with support provided by the British Library led Business and IP Centre (BIPC) Northamptonshire, providing the correct environment for creative and cultural businesses to start up and grow.
- Increased engagement with schools and educational institutions to deliver collaborative programmes, to build curiosity, develop creative and cultural talent, creating future user and visitor opportunities.
- Two new events / workshop spaces, café and external terrace and improved public gardens on the site, enabling a wider range of events and activities including commercial events and opportunities.
- External curtain glazing and roof lights installed
- Internal studwork within the new extension complete
- Gallery ceiling painting complete
- Lift installed
- Museum betterment works complete
- Ramp construction and brick work underway
- Hit and miss brickwork (design-type of bricks) over the new entrance underway
- Drainage connection complete
Multi tenanted Derby residential investment sold
Acting on behalf of private clients FHP Property Consultants have sold a residential investment property in Derby.
Carlton House, which is situated on London Road, Derby comprises a Grade II Listed four storey building. The property comprises six 1 bedroom flats, eight 2 bedroom flats and benefits from a private car park to the rear.
When fully let, the building produces an income in the region of £80,000 per annum. The quoting sale price was £1 million and a deal was agreed at that level reflecting a Net Initial Yield of 7.59%.
Darran Severn of FHP Property Consultants says: “I am delighted to have completed this sale which has been a great result for all involved. Given the nature and location of the property I was not surprised at the strong interest we received for the building. This enabled us to strike a deal within a matter of weeks. There is great demand for freehold properties, both occupied and vacant, particularly lot sizes under £1 million from local investors.”
Daniel Holder, the purchaser, says: “I am thrilled to take ownership of Carlton House, a few bumps in the road along the way but with the help of FHP and the managing agents Phoenix Lettings Derby we managed to complete the purchase.”
New letting at landmark Derby office building
A new letting has been secured at Cardinal Square, a multi tenanted landmark office building within Derby City Centre.
Smile Dental Triage have signed a new 6 year lease at a rent of £14.00 per ft² on 1,260ft² situated within the Third Floor South at Cardinal Square.
Darran Severn of FHP Property Consultants said: “Smile Dental Triage are a great addition to the mix of tenants already at Cardinal Square.
“We have had success letting suites between 1,000ft² and 3,000ft² over the last 18 months, so much so that we are now dividing up the Third Floor East to provide three newly refurbished suites ranging in size between 1,111ft² to 3,748ft², the larger benefiting from dual aspect windows.
“In addition, the office garden has been redesigned and now provides an excellent outdoor space providing meeting pods, breakout areas and outdoor games such as table tennis and golf.”
Xerox acquires Leicester marketing firm
Xerox has acquired Go Inspire, a Leicester-based print and digital marketing and communication services provider, to grow its global Digital Services presence.
Go Inspire serves customers throughout Europe, the Middle East and Africa (EMEA).
“We’re focused on widening the scope of Xerox’s Digital Services and Customer Engagement Services,” said Darren Cassidy, UK & Ireland Managing Director and senior vice president, EMEA Global Document Services at Xerox.
“Go Inspire’s capabilities will support the transformation of our transactional and direct mail services into multi-channel communications, accelerate growth in EMEA and create new avenues for us to help current and new clients.”
“We are thrilled to join the Xerox team and eager to contribute to the growth of Xerox Digital Services,” said Patrick Headley, Chief Executive Officer at Go Inspire. “Together with Xerox, we will expand the portfolio of high value services for our expanding client base throughout the UK and beyond.”
Terms of the transaction were not disclosed.
Boost morale at the East Midlands Bricks Awards 2022
Celebrating the region’s property and construction industry, and offering a prime opportunity for networking, the prestigious East Midlands Bricks Awards will return on Thursday 15 September, at the Trent Bridge Cricket Ground.
Nominations for the event are open, and now is the perfect time to make your submissions, ahead of next month’s deadline (August 19th).
Shine a light on your team, reward their hard work, and boost morale.
To submit a business or development for the East Midlands Bricks Awards 2022, please click on a category link below or visit this page.
Thanks to our sponsors:
- 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
- Overall winner (this award cannot be entered, the winner will be selected from those nominated)
Book your tickets now
Tickets can now be booked for the awards event – click here to secure yours. The special awards evening and networking event will be held on 15 September 2022 in the Derek Randall Suite at the Trent Bridge County Cricket Club 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. The event will also welcome John Forkin MBE DL, Managing Director at award-winning investment promotion agency Marketing Derby, as keynote speaker. Dress code is standard business attire.
To be held at:
