- Output volumes were broadly unchanged in the quarter to July (weighted balance of -3%, from +3% in the three months to June). Firms expect volumes to grow in the next three months (+25%), the strongest expectations since March 2022.
- Output rose in 6 out of 17 sub-sectors, with growth in the motor vehicles & transport equipment, chemicals, mechanical engineering and electrical goods sub-sectors offsetting declines in furniture & upholstery and metal manufacturing sub-sectors.
- Total new orders fell in July, at a similar pace to the previous quarter (balance of -9% from -6% in April). Domestic orders fell through the quarter (-15% from -6%), while the volume of new export orders was broadly unchanged (+3% from -14%). Manufacturers expect total new orders to be essentially unchanged over the next three months.
- Business sentiment fell in July, after rising in April for the first time in nearly three years (balance of -9% from +9% in April). Export optimism for the year was flat after rising last quarter (0% from +6%).
- Investment intentions for the year ahead generally strengthened compared with April. Manufacturers expect to raise investment in product & process innovation (a balance of +18% was the strongest since January 2022, up from +15% in April), in training & retraining (+7%, from +1%), and in plant & machinery (+6%, from +2%). Investment in buildings is set to fall (-11%, from -3%).
- The main constraint on investment was uncertainty about demand (cited by 44% of manufacturers), followed by inadequate net return (35%), a shortage of labour (20%), and a shortage of internal finance (19%). Concerns around the cost of finance have retreated from a 33-year high set in January (excluding the pandemic period) but remain double the long run average (10%).
- Average costs rose rapidly in the quarter to July (balance of +52%, from +39% in April; long-run average of +18%). Costs growth is expected to remain elevated in the quarter to October (+36%).
- Average domestic prices increased over the three months to July (balance of +15%, from +10% in April). Export price inflation also accelerated from April (+22% from +9%, and the fastest pace in over a year). Both domestic and export price growth are expected to slow in the next three months (+2% and +6%, respectively).
- Stocks of work in progress (balance of +4%) rose marginally in the quarter to July, while stocks of finished goods (+2%) and of raw materials (-1%) were broadly stable.
- Manufacturers expect stocks of work in progress (+13%) to rise at the fastest pace in over two years during the next three months, with stocks of raw materials (+7%) and of finished goods (+5%) also set to increase.
- Numbers employed were unchanged in the quarter to July, after falling in April (balance of 0% from -6%). Firms expect numbers employed to rise modestly in the next three months (+16%).
Manufacturing output expectations strongest since 2022
Optimism among manufacturers fell slightly in July, after rising in April for the first time in nearly three years, according to the CBI’s latest quarterly Industrial Trends Survey.
Output volumes were broadly unchanged in the quarter to July, following a similar result in the three months to June, and under-performed expectations for modest growth. However, manufacturers continue to expect output to increase over the next three months, with growth expectations the strongest since March 2022.
Total new orders fell in the quarter to July but are expected to be broadly stable over the next three months. Inventory building is expected to provide some support to output in the months ahead. Stocks of work in progress are expected to rise at the fastest pace in over two years, with stocks of raw materials and finished goods also set to increase.
Average cost growth accelerated compared with April and remained elevated compared to historical norms. Cost growth is expected to slow in the quarter to October, while remaining historically strong. Domestic and export price inflation also accelerated but are both expected to slow in the next three months.
Meanwhile, manufacturers expect to raise their headcount in the next three months (and at the fastest pace for a year), and investment intentions for the year ahead have generally improved.
Ben Jones, CBI Lead Economist, said: “Sentiment among manufacturers has cooled a little over the past few months, as output growth consistently underperformed expectations. But the near-term outlook for the sector remains positive amid an ongoing recovery in the wider UK economy.
“Manufacturers appear confident that output growth will pick up in the quarter ahead, with expectations the strongest in over two years. Firms are looking to increase stock levels to meet expected demand. And the share of manufacturers working below capacity has fallen sharply over the last quarter, feeding through to a more positive outlook for both hiring and investment.
“Last week’s Kings Speech, with welcome measures to reform planning and speed up approvals for major infrastructure projects, has the potential to give businesses the confidence they need to grow, invest and drive economic growth. And as the economy picks up steam, firms will want to see a relentless focus on delivery from the new government, to turn proposed measures into swift and bold action.”
The survey, based on the responses of 257 manufacturing firms, found:
East Midlands businesses urged to benefit from government training programme
Small and medium sized businesses in the East Midlands are being offered their last opportunity in 2024 to take advantage of a government training scheme delivered by De Montfort University’s Leicester Castle Business School (LCBS).
The Help to Grow: Management scheme is delivered via Small Business Charter accredited business schools for companies with ambitions to scale up and grow.
LCBS has helped over 200 local SMEs realise their growth ambitions since launching the course in 2020. The programme, worth £7,500, is 90% funded by the government with the remaining 10% paid for by an LCBS bursary.
A few places are still available for the upcoming course, which will take place over 13 weeks, beginning with an introductory online session on September 2nd.
The programme will be delivered via a combination of nine online sessions and four in-person modules at Harborough Innovation Centre. This hybrid approach offers participants the opportunity to forge in-person relationships with professionals with similar concerns and challenges while maintaining the convenience of a predominately online format.
The course is designed to fit in alongside the demands of full-time work and the tutors assigned to each module are professionals with real-world experience in their specialist areas which include digital transformation, winning new markets, marketing strategy, employee engagement and financial management.
As well as the weekly sessions focusing on one topic, participants are assigned a mentor to support them in creating a bespoke Growth Action Plan. Peer-to-peer learning is also a key part of Help to Grow: Management, with professionals forming valuable support networks that last beyond the duration of the course.
“We’re really looking forward to welcoming participants to our third and final intake of 2024,” said LCBS’s Help to Grow: Management programme director, Dr Danny Buckley. “As always, we’re anticipating great demand for the course, so we encourage interested parties to secure their place as soon as possible to end 2024 on a high and enter the new year armed with the resources and skills they need to make 2025 their best year yet.”
This chance to grow their business is open to any decision-making professional with at least one direct report in a UK-based business employing between 5 and 249 staff, which has been operational for at least a year.
2023 participant Mark Massetti, Managing Director of Watford Control Instruments Limited, said: “The course was a complete game changer for me. As business owners, we think we know stuff but we don’t have any real way of benchmarking ourselves.
“Unsurprisingly, and without a doubt, the content on digitisation was absolutely transformative for our business. We have saved hours of staff resources and these can now be redeployed into looking after our customers or generating revenue. I also found the modules on marketing really well explained and very helpful.”
Nationally, 90% of participants reported improved leadership and management of their business six months following Help to Grow: Management. Not only that, 80% cited improvements in employee engagement in the same period.
Following the programme, participants have access to alumni events, and many continue to engage with the peer network they establish as course members.
“Implementing the process of asking how efficient and streamlined the business is and taking action has been a big takeout from this for me,” adds Mark Massetti. “Also, it was great to meet the other participants – we had some really good times on the course!”
26 acre Sherwood Oaks development site sold in multi-million pound deal
With a multi-million pound deal, heb have announced one of the region’s biggest land transactions.
Acting on behalf of Arron Kendall of Moorfields, as Administrator for Sherwood Oaks Homes Ltd and Sherwood Oaks Holdings Ltd, heb Surveyors have confirmed completion of the sale of the 26 acre Sherwood Oaks development site to Persimmon Homes.
The sale comprises some 30 fully finished, high quality houses together with the remaining part-serviced development land which has consent for a further 283 new homes.
Chesterfield-based Stancliffe Homes have simultaneously acquired the completed dwellings from Persimmon, and are able to immediately begin the process of selling individual homes to occupiers.
Persimmon will shortly recommence construction of the remainder of the development, which has been re-branded as Regency Grange. A sales office is expected to open for business this August.
“We are delighted to secure a successful disposal of this substantial and complicated site for our client Arron Kendall at Moorfields, and in as short a time as possible,” said Robert Maxey at heb Chartered Surveyors.
“We have been acutely aware that the local community has been keen to see this stalled development brought back to life, and it is always satisfying to assist with bringing much needed new family housing to the market.”
Gareth Hankin, regional MD of Persimmon Homes, said: “We are really excited to be bringing the Persimmon brand to this part of Mansfield. It really is a great location – within easy reach of the town centre and with a wealth of local amenities. On top of that there is fantastic open countryside just minutes away.”
“Interest in the existing houses is already strong, due in part to the fantastic build quality on offer,” added Sam Jones of Stancliffe Homes. “Our reputation for delivering quality is incredibly important to us. When became aware of the opportunity it was immediately apparent that the high specification of the houses was a great fit with our brand.”
Future secured for iconic dancehall with 100 year history
One of Nottingham’s best loved venues with a history stretching back almost 100 years is set to open its doors once again this September.
The 2,500-capacity venue, most recently known as Pryzm, will be returning to its original incarnation of “The Palais” ahead of celebrating its 100th year in 2025.
Plans are already underway by new owners DHP Family for a rejuvenation of the iconic space on Lower Parliament Street, with a new stage, PA, and other works to restore the venue to its historically high standard.
The Palais is set to re-open its doors from mid-September, providing a diverse array of events for Nottingham and bringing dancing back to its well-trodden dancefloor.
The Palais de Danse first opened 24 April 1925 as a dance hall and billiard saloon. The dance hall was considered to be one of the finest of its kind outside London and its exterior architectural features were distinctive, particularly the large ornate globe. It hosted dancing in the evening and daily afternoon tea dances, as well as private hire every Tuesday and Friday.
During the late 1980s, it reinvented itself as a nightclub, most well-known for hosting the popular TV show Hitman and Her, and has been known by several names including the Ritzy and Oceana.
Now the venue prepares for its next chapter, set to once again become an important cultural asset for Nottingham as an event space for private hire, with the diary open for bookings.
The Palais manager Sam Dye said: “As a local business deeply rooted in Nottingham’s music scene, we feel it’s only right to recognise the heritage of the venue and revive Nottingham’s original dancehall. So many generations of families have danced at this iconic venue, so we’re delighted to be bringing it back into use once again.”
Olympics springboard doubling of export documents
In the run-up to the Paris 2024 Olympics, East Midlands Chamber has seen the number of documents it processes to take items to the EU double, compared to the same time in 2023.
In July the Chamber saw a surge in requests for ATA Carnets – a travel document required by border officials when temporarily exporting items like sports equipment – twice as many as July 2024.
East Midlands Chamber International Trade Manager Lucy Granger said: “The Olympics seem to have heightened people’s awareness of the documents they need to have when exporting items like sporting equipment to the EU.
“In the same way an Olympic athlete doesn’t want to be told at the border that their javelin can’t go with them to France, people are realising – as we’ve seen by the doubling of requests we’ve had this July, compared to last – that to temporarily export items like a drum kit to play in a band, they’re going to need this paperwork sorting.
“An ATA Carnet tells those guarding international borders that the drum kit is going, then coming back to the UK.
“This summer we’ve had requests for things ranging from canoes to D-Day beacons and even a Porsche 991.”
4D Medicine raises £3.4m
4D Medicine – a Nottingham-based company whose innovative biomaterial has potential to be used for a wide range of 3D printed implants and surgical devices – has raised £3.4m ($4.4m) in a Series A investment.
The funding round was led by Oshen Holdings and backed by DSW Ventures, SFC Capital, Boundary Capital and private investors including several leading scientists and surgeons. It will enable the company to complete pre-clinical testing of its first product range and seek FDA clearance for entry into the US market.
A spin-out from the Universities of Birmingham and Warwick, 4D has developed a resorbable biomaterial, 4Degra, that is being used to develop implants such as orthopaedic devices or soft tissue scaffolds to help patients recovering from surgery or injuries. Preliminary testing has shown that as healing progresses, the biomaterial gradually erodes and is resorbed by normal metabolic processes as natural tissue grows back in its place.
4Degra promises some key advantages over existing resorbable biomaterials used for implants. With some materials, the entire product breaks down rapidly, creating acidic by-products that can cause pain, inflammation and cysts. By contrast 4Degra degrades gradually, starting from the surface, and does not release harmful acidic by-products.
4Degra can be 3D printed to create complex geometries. As it can be produced in both soft and hard formulations, it also has the potential to be used both for flexible products such as films and membranes, or where a more rigid product is required such as plates, pins and bone scaffolds.
4D Medicine was founded in 2020. The latest funding brings the total raised to date to £5m. The company is now preparing to raise a Series B investment early next year.
Philip Smith, the company’s CEO, said: “I would like to thank all our investors for their trust and support. Our success in continuing to raise investment despite the difficult market conditions over the last few years is testament to their belief in the company’s commercial potential and our world-class team.
“The funds will be used to complete the pre-clinical testing of our first medical device product range and our preparations for entry into the orthopaedic market.”
Didier Cowling, Partner at Oshen Holdings, added: “We were delighted to lead this deal and we look forward to working with the 4D team. The company is now poised to make a substantial impact in the bioresorbable medical device space. We believe that 4Degra is a real game-changer that is enabling 4D to develop novel bioresorbable medical devices with unique properties.”
Doug Quinn, Partner at DSW Ventures, said: “4D’s novel biomaterial platform opens up new possibilities for implants and devices. The company has already attracted attention from large industry players including a potential acquirer. This funding will enable it to apply for regulatory clearance in the US and target opportunities in the £5bn market for resorbable medical devices.”
Jason Druker, Portfolio Manager at SFC Capital, said: “We are delighted to refresh our commitment to Phil and the 4D team. Since we first invested four years ago, they have made great progress and we’re excited to see the impact of their first medical device products.”
A team from Addleshaw Goddard led by George Danczak provided corporate legal advice to the company, with Hill Dickinson advising on matters including the requirements of the National Security Investment Act. Eleanor Baird at Weightmans advised DSW Ventures and Mercia.
Vision shared for future of Castle Meadow Campus
An event at Castle Meadow Campus hosted by G F Tomlinson and Henry Brothers Construction provided an opportunity for Fbe and ProCon members and guests to look at the new University of Nottingham city centre redevelopment site.
The collaborative event was held at the Grade II Listed site where current works include the transformation of the former HMRC headquarters – the Central Building being delivered by G F Tomlinson, and the remodelling of Buildings D and F, by Henry Brothers, into modern office spaces.
Encompassing seven buildings, the complete redevelopment is set to establish the Castle Meadow Campus as a vibrant hub for innovation and entrepreneurship, featuring state-of-the-art facilities for its community of students, academics, and industry partners.
60 members of the Fbe (Forum for the Built Environment) East Midlands and ProCon Nottinghamshire – both of which are professional regional construction and property groups – attended the event, and were treated to a morning of insightful presentations, networking opportunities and firsthand experiences of the ongoing redevelopment works.
While enjoying breakfast sandwiches and hot refreshments, representatives from the University of Nottingham, Arup, and Bond Bryan provided detailed site plans, offering a comprehensive overview of the campus scope and objectives.
Visitors were given guided tours of the current works by G F Tomlinson and Henry Brothers, providing a unique insight into the intricate renovation processes. A highlight of the event was the demonstration of the large-scale Projection Augmented Relief Model (PARM) by Dr. Gary Priestnall from the University’s School of Geography. The interactive 3D model of Nottingham city centre showcased the innovative use of digital and data tools in urban planning and development.
Led by Director, Prof. Paul Grainge, University of Nottingham, ‘City as Lab’ also presented work on leveraging digital and data innovation to address real-world challenges in the Nottingham city region, emphasising the role of the campus as a catalyst for technological advancement and community engagement.
G F Tomlinson, a longstanding partner of the University of Nottingham, is leading the refurbishment of the Central Building, including the complex replacement of the tensile fabric roof and the addition of a new mezzanine level, designed to enhance the building’s functionality and sustainability.
Adrian Grocock, Managing Director of G F Tomlinson, said: “The event at Castle Meadow Campus was a fantastic opportunity to showcase the extensive work being done to transform the Central Building.
“We were delighted to share our progress with the community and our industry peers and we are extremely proud to contribute our expertise to such a landmark project.
“We have a long-standing working relationship with the University of Nottingham, with this being our 8th scheme working together. It is a real pleasure to combine our university and heritage experience to help the university to deliver another world class facility.”
Henry Brothers Construction, alongside a consortium of industry experts, is nearing completion of the remodelling works on Buildings D and F. Managing Director of Nottingham-based Henry Brothers Construction, Ian Taylor said: “The Castle Meadow Campus is a hugely exciting project for the University of Nottingham and for the city as a whole and we are proud to be playing a part in it.
“Henry Brothers has extensive experience of working with universities across the Midlands to improve their facilities. This is our first contract with the University of Nottingham, and we are really pleased to see the partnership creating such fantastic new facilities in our home city. They will be a tremendous asset to the community, and we are honoured to have jointly hosted this event for our peers in the local construction and property sector.”
James Hale, Building and Design Lead for Castle Meadow Campus, University of Nottingham, said: “We’re pleased to be working together with our partners on the Castle Meadow Campus development. The chance to welcome ProCon and Fbe members and guests to showcase the great work that’s already happening to transform the site was excellent.
“We’re pleased that members and guests showed a keen interest in this historically significant site. With more work to come, we are determined to create an accessible and sustainable world-class campus environment.”
Revenue and profits grow at Derby recruitment group
Revenue and profits are on the rise at RTC Group, the Derby-based engineering and technical recruitment group, according to unaudited results for the six months ended 30 June 2024.
The first half of 2024 saw revenue increase to £49m, up 7.5% compared to the same period in 2023. Profit before tax, meanwhile, grew to £1.2m from £1m.Andy Pendlebury, Chairman and Chief Executive, said: “I am delighted to announce that the first half of 2024 saw a further enhancement in performance for the Group, building upon the success achieved in 2023.
“Throughout the first half of 2024, we have continued to make investments in training our people, increasing our headcount, and developing our systems and technology solutions to drive productivity, elevate our client offerings, and secure future business opportunities.
“Our balance sheet remains in a very healthy position with no term debt and no borrowings other than lease liabilities.
“Whilst we are in the early days of a new Government, which inevitably brings some uncertainty regarding long-term strategy, we are encouraged by the proposed 10-year infrastructure plan outlined in Labour’s manifesto, which includes significant investment in the sectors where we are focused.
“Combined with anticipated improvements in the UK’s macro-economic conditions, such as lower inflation and subsequently decreasing interest rates, we are optimistic that this will create an environment where our business can continue to grow.
“Despite the ongoing uncertainties facing the recruitment sector, we remain encouraged and optimistic about our short, medium, and long-term prospects.”
Ground engineering contractor delivers “resilient” results
Van Elle, the ground engineering contractor, has “delivered a resilient performance” in the year ended 30 April 2024 (FY2024).
Results for the year show growth in pre-tax profit, which stood at £5.6m, up from £5.4m in the year prior. Revenue, however, decreased from £148.7m in the year prior to £139.5m, though this was in line with expectations.The business was hit by the impact of a softer housing market, though partially mitigated this through a diverse customer base including partnership and affordable housing customers.
Looking ahead, market conditions are expected to remain challenging throughout the remainder of calendar year 2024.Mark Cutler, Chief Executive, said: “Van Elle delivered a resilient performance in the year, benefitting from the breadth of its capabilities and end markets, despite very challenging market conditions across most sectors.
“The Group has continued to expand its offering, grow geographically and enter new sectors, through the acquisition of Rock & Alluvium, its strategy for the water and energy sectors, and the establishment of rail operations in Canada.
“We start the new financial year with a strong order book and multiple framework agreements. Our focus on key customer partnerships and strategic markets is expected to deliver significant growth opportunities over the medium term.”
Five-step plan revealed to supercharge small business exports
A new paper geared at unleashing a new wave of small business exporters has been released – setting out five priorities to make that goal a reality.
The Federation of Small Businesses (FSB) was asked to lead on an SME Export Taskforce by Jonathan Reynolds MP when he was Shadow Business and Trade Secretary, to address the fact that only 10 per cent of small firms trade internationally.
The taskforce, which features input from companies such as Amazon UK, EY, and Santander, found that the current rules make trading difficult, that Government support is confusing and not always helpful, and the firms that do trade do not have adequate advice.
The paper highlighted five key priorities:
- A cross-Whitehall approach to policy: International trade should be made a priority for all Government departments. Domestic and trade policies must be aligned to ensure the UK maximises the benefits from Free Trade Agreements. This means other Whitehall departments and regulators need to be more aware of trade goals and actively contribute to trade negotiations.
- An open relationship with business: Legislation and trade deals should be developed through open and honest discussions that prioritise the needs of small businesses. A Senior Exports Council should also be created to ensure continuous and meaningful engagement with the business community.
- Global leadership on digital trade: The UK should lead the way on paperless trading across the global supply chain.
- Open to export from day one: SMEs should receive immediate support when they start trading internationally, including robust expert guidance and efforts to overcome mindset-related barriers.
- Addressing the finance gap: Improving SME access to trade finance and reducing the financial barriers to trade.
