It’s that time of year, when Business Link Magazine invites the region’s business leaders to offer up their predictions for the year ahead.  It has become something of a tradition, given that we’ve been doing this now for over 30 years. Here we speak to Elizabeth Wright of Admin and More, the provider of virtual PA support for businesses across the UK. Focusing her thoughts on the Access to Work programme, Elizabeth says that whilst the programme is a fantastic resource, delays in the system must be fixed soon if employer confidence is to remain. The government’s Access to Work scheme is a fantastic initiative, especially when you consider that from July to September 2022, the disability employment rate fell, whilst the non-disabled employment rate rose, meanwhile a November 2023 report by the TUC highlighted a shocking ‘pay gap’. Access to Work is a huge part of redressing this situation, helping disabled employees into the workplace and helping their employers with access to funding and support. The problem is, the system is struggling to keep up and sadly, many employers are beginning to feel the pinch as payments are being delayed. They often do not have the skillset, let alone the time or resources to process these claims if they do not have external support from companies like ourselves and other skilled partners. We are at a crucial crossroads here in terms of balancing supply and demand which needs urgently looking at. The demand is sky-high. We have never been busier within our Access To Work division in terms of processing claims and payments on employers and employees’ behalf but we are hearing lots of suppliers and employers are losing faith. It can create a real cashflow crisis when the funds are delayed because the employees still need to be paid, whatever the delays in the system. I fear that if this continues, employers may lose confidence in Access to Work which would be a crying shame because the difference it can make is genuinely life-changing for so many people. Here’s hoping these delays can be sorted because this is a scheme that can really make a difference for everyone.

Business confidence in the East Midlands rose four points during January to 38%, according to the latest Business Barometer from Lloyds Bank Commercial Banking.

While firms in the region reported lower confidence in their own trading prospects month-on-month, down 12 points to 39% in January, their optimism in the wider economy climbed 20 points to 37%. Taken together, this gives a headline confidence reading of 38%.

East Midlands businesses identified their top target areas for growth in the next six months as evolving their products and services (42%), investing in their team (39%), and introducing new technology (27%).

A net balance of 26% of businesses in the region also expect to increase staff levels over the next year, down 14 points on last month.

The Business Barometer, which surveys 1,200 businesses monthly, provides early signals about UK economic trends both regionally and nationwide.

National picture

Overall, UK business confidence rose nine points in January to 44% – its highest level since February 2022 and its strongest start to a year since 2016. Firms’ outlook on the overall UK economy rose ten points from 27% to 37%, while businesses’ optimism in their own trading prospects also climbed three points month-on-month to 51%.

Companies’ hiring intentions increased marginally, with 33% of firms intending to increase staff levels over the next 12 months, up four points on the month before.

London and the North East were the joint most confident parts of the UK in January – each posting a headline confidence of 62% – followed by the West Midlands (56%) and Yorkshire & the Humber (44%).

The East of England (38% in January vs. 45% December) and Northern Ireland (29% vs. 36%) were the only two regions to reporting declining levels of confidence. The majority of the data was collected before the December ONS inflation data was announced on January 17th.

Sector insights

Three of the four sectors tracked in the Barometer reported rises in confidence. The most significant increase was in services which accelerated 15 points to 45%, up from December’s 16 point drop. Manufacturing confidence also increased to 49%, while construction rose eight points to a 10-month high of 45%.

There was a more mixed picture in retail however, dipping three points to 41% with anecdotal evidence of weaker footfall and sales in December as shoppers hit the streets earlier than usual in November. Nevertheless, some companies still reported stronger sales over the festive period.

Dave Atkinson, regional director for the East Midlands at Lloyds Bank Commercial Banking, said: “It’s encouraging to see East Midlands business start the year on a confident footing after a challenging 12 months for businesses in the region and across the UK.

“While hiring intentions have dipped, more than third of businesses are planning to invest in their teams over the next six months. By putting short-term plans in place like this, they are setting themselves up for long-term success as economic conditions improve.

“We know we’re not out of the woods in terms of wider geopolitical challenges, but by playing close attending to areas like working capital, firms can bolster their resilience against future headwinds. We’ll continue to be by the side of firms as we help them move forward in the strongest position possible.”

Hann-Ju Ho, senior economist, Lloyds Bank Commercial Banking, said: “Businesses are feeling more confident following the cautious end to 2023, with this being the strongest start to a year since January 2016. The reduction in inflation, albeit with the recent uptick, and the belief that interest rates may have peaked is likely driving the rise in confidence among firms.

“With ongoing geopolitical issues and a general election on the horizon, businesses will have factored these into their risk radars and will be working to prepare for any potential impacts on their trading prospects.

“Also, half of all companies say they’re planning to increase headcount in the coming year. Despite that and the changes to minimum wage that will come into force in April, expectations for staff pay fell back following last month’s increase.”

The developers of Hinckley’s Big Pit have been served a community protection warning letter to require that all mud is cleared from the road surrounding the Ashby Road building site.

It’s that time of year, when Business Link Magazine invites the region’s business leaders to offer up their predictions for the year ahead.  It has become something of a tradition, given that we’ve been doing this now for over 30 years. Here we speak to Andy Priestley, Managing Director of DSP (Interiors) Ltd. As the economy finally shows signs of recovering from the slow-down triggered by soaring inflation and multiple interest rate rises, we expect to see an upturn across a number of sectors in 2024. This includes UK manufacturing, but predominately service sectors such as laboratories, research and development, and other service sectors such as IT (particularly considering the inevitable influence of Artificial Intelligence). I predict there will continue to be increasing demand for manufacturing facilities, fueled by the dynamic evolution of ‘factories of the future’ – future-oriented manufacturing companies that embrace industry changes. Research from S&P Global UK manufacturing and the Chartered Institute of Procurement and Supply’s index for manufacturing supports my views, suggesting signs of stronger demand with 53% of companies in the industry intending to expand activity over the coming year, linked to a wider economic recovery and a stabilisation of market conditions. Likewise, the emphasis on personal health following the pandemic, rising concerns about getting a GP appointment and a growing market for personal health screening have all contributed to increasing demand for UK laboratories and Science R&D manufacturing facilities that focus on a range of health supplements and services. We have personally seen this in our projects for SureScreen Diagnostics and Nutrivitality. Over the past 12 months we have created a large new facility for the R&D and manufacturing of health supplements to assist their exponential growth. SureScreen predict that in the near future their health screening products will help the NHS become more efficient by identifying ailments sooner and help direct patients to the correct health service. Another effect of the pandemic has been the increase in demand by employees to have the ability to work from home for at least some of the week. This has fuelled the ‘hybrid office’ revolution. We are seeing this time and time again from our clients with larger office spaces that are looking to entice their workers back into the office more. We have been creating agile workspaces for a number of years, but the hybrid working has been a catalyst for the changing office landscape. Rather than rows of open plan workstations, clients are looking to better support the way their staff want to work, providing a variety of workspace types – assisted by the developments in connective technology and ensuring adequate acoustics. There is also a much greater awareness of the importance of staff well-being through healthier building fit outs. Having reached the peak of the mortgage rate rises it is widely thought that rates will fall this year, encouraging capital investment in commercial property. This is echoed by the rising demand for quality commercial premises and the speed in uptake from listing. Here at DSP (Interiors), we have seen we a significant increase in orders across all these sectors. This is partly due to the changing face of the sector, but also our design and fit out expertise. Over the past 12 months, we have worked with a dynamic range of businesses, including SureScreen Diagnostics and Nutrivitality, where we delivered new state-of-the-art production facilities at Sherwood Business Park in Nottingham. The flexible, agile nature of the facilities have allowed both companies to adapt their technology quickly and efficiently to address new challenges facing both the UK and overseas. We are currently delivering a turnkey project for the Hayley Group, a leading supplier to Rolls-Royce Plc, and MasterMovers who specialise in electrical tugs. Both turnkey projects involve transforming empty building shells into large bespoke offices and warehouse facility to accommodate continued expansion. 2024 promises to be a year of renewed growth, with those companies with a commitment to innovation and adaptability across their factories and supply chains well-positioned to thrive.