Driving forward industrial energy efficiency key to achieving Net Zero targets
Manufacturers have been hit by soaring gas and electricity prices hitting record highs, leaving businesses desperate to cut their energy use, according to a new report Driving Industrial Energy Efficiencies, published by Make UK and Inspired PLC.
The new research delves into how energy-efficient practices and technologies can help companies save money and boost productivity while at the same time moving towards their Net Zero targets.
Net Zero is a priority for 92% of businesses and 68% have already made investments to start on that journey with two-fifths (22%) planning to in the next 12 months.
Over the past two years, the cost of energy has been highly turbulent, exacerbated by an increase in operational costs. This has left manufacturers forced to operate with a significantly reduced margin, making introducing energy efficiency projects an attractive proposition.
The report shows that businesses have been taking a two pronged approach to reducing energy consumption, from low-cost, low effort measures to more costly investments which deliver equipment and process upgrades. Simple steps such as getting the right energy supplier and securing an advantageous contract is critical.
Monitoring energy use through smart metres and sub-metering can further cut consumption, providing more granular detail of unnecessary use. One rubber compound manufacturer saved £62,734 through a better energy contract and over £48,000 by reducing waste through circuit-level (sub-meter) monitoring.
Equipping plant machinery with meter reading tools or sensors, can offer real time data access by connecting it to the cloud (Internet of Things Technologies), enabling faults to be spotted as they happen.
Implementing Voltage Optimisation, which only allows the exact amount of energy a business needs to be brought in from the National Grid, can also make significant savings. While overhauling compressors – which account for 10% of all industrial energy used – can cut energy consumption by 50%.
One energy intensive company which galvanises plant equipment introduced digital controls to deliver variable on-demand power to its furnaces, saving £400,000 on energy bills and reducing its carbon output by 1000 tonnes.
Faye Skelton head of policy, Make UK, said: “Britain’s manufacturers have made significant steps to cut carbon emissions and move towards Net Zero. But in order to supercharge that journey, business needs Government to play its part in driving the process forward.
“To that end, Government needs to commit to introducing a National Advisory Energy Service similar to the model of Made Smarter which helps SMEs digitalise their production processes. This should provide smaller funding to companies of up to £20,000, include an energy audit, sub metering and an implementation plan as well as helping businesses access the right funding.
“We need to see also an immediate extension of the 12 months of 100% business rates relief on green plant machinery and equipment and building improvements to three years to reflect the business payback period.”
With the abolition of the Energy Efficiency Taskforce (EETF) which had expected to put forward policy proposals to support greater energy efficiency, Make UK is calling on Government to use the upcoming Autumn Statement to help companies transition to net zero through energy efficiency measures.
Among these calls included in the report, is for Government to undertake a gap analysis of the tax incentives available on energy efficiency to check no type of business falls between the cracks.
Heat recovery may have the biggest potential to improve energy efficiency, but as yet is almost untapped. It uses the steam or waste heat from machinery (e.g., compressors, ovens/furnaces, galvanisation baths) or high temperature processes, to heat up other parts of the process (low temperature), hot water, or for the space heating of the building. It can also be used to produce electricity via the Organic Rankine Cycle, a type of thermodynamic process which can use low temperature industrial waste heat.
Construction company appointed to build new 20,400 sq ft regional hub for logistics firm
Construction company Glencar has been appointed by Verdant Regeneration to design and build a new 20,400 sq ft regional hub for DX (Group) plc, a provider of delivery solutions including parcel freight, secure courier, 2-Man and logistics services, at a new 200-acre development site in Ilkeston, Derbyshire.
The DX regional hub project which will also include construction of offices and external works will be built to a high standard with a raised dock and onsite car parking.
The new hub and depot will provide significant additional regional capacity, improve efficiency by reducing stem mileage, delivering environmental and customer service benefits. PC is expected by early April 2024.
Pete Goodman, Managing Director – UK Midlands, North and Ireland, said: “We are very happy to have been appointed by new customer Verdant Regeneration on what will be the first development to come out of the ground at this brand new strategically located development site which has been a long time in the planning.
“This development has been designed with sustainability at the core which when combined with large amounts of amenity and green space at New Stanton Park will see fishing ponds, rural walkways and cycle tracks all enhanced to link the site and wider communities.
“Glencar are fully committed to sustainable construction and a sustainable future. Our ESG approach has been deliberately designed to help us to create a positive impact on the world in which we operate as well as a more innovative, resilient and successful business for the future.
“We are committed to being a responsible business and to supporting customers in achieving their own sustainability targets and look forward to working closely with Verdant Regeneration and the broader project team.”
David Grier of Verdant Regeneration said: “Having acquired the site in 2020, we have worked hard across the team to quickly bring forward an outline planning application for a development of 2.6m sq ft on what is one of the largest regeneration projects within the region.
“We are delighted to have now successfully secured outline planning consent and thank Erewash Borough Council for the professional manner and efficiency in which they have dealt with the planning application.
“New Stanton Park offers an excellent strategic location, blending an active rail connection with strong private and public transport connectivity, plentiful labour, large power supply and high volume water connection.
“When combined, we are confident this will result in a highly successful development with the next chapter set to positively transform and improve the area, bringing forward large scale job creation in the process.”
Paul Ibbetson, Chief Executive Officer, DX (Group) plc, said: “DX is delighted to be announced as the first business taking space on New Stanton Park Industrial Estate, a redevelopment scheme near Nottingham. The purchase of this 25,000 sq ft site will enable us to create a major new regional hub and depot to service our Group’s parcel freight activities.
“The new hub and depot will provide significant additional regional capacity, improve efficiency by reducing stem mileage and is in line with our plans to make strategic property investments.
“We also look forward to creating further job opportunities in the area. Construction, which will benefit from a raised dock and mechanisation, is expected to be completed during Q2 2024.”
New Stanton Park has outline planning permission for the construction of 2.6m sq ft of industrial/warehouse units from 11,000 sq ft up to 1,068,00 sq ft in a single building with the potential to deliver up to 4,000 new jobs once fully developed.
East Midlands unemployment rate below 4% for two years
The East Midlands’ unemployment rate has remained at 3.7% for the fourth month running, new figures by the Office for National Statistics (ONS) show.
The data, for the period between July and September 2023, means the proportion of working-age people in the region who do not currently have a job but are actively looking for work has been below 4% since the three months to October 2021 – almost two years.
Nationally, the unemployment rate is half a percentage point higher at 4.2%, although the economic inactivity rate for 16 to 64-year-olds – which measures the number of working-age people who have dropped out of the labour market for reasons such as retirement, caring duties, long-term ill health or studying – is 21% for both the UK and East Midlands. This remains above a pre-pandemic trend around the 19% mark.
East Midlands Chamber Chief Executive Scott Knowles said: “The fact our region’s unemployment rate has remained at a relatively low level for such a prolonged period is testament to the efforts and resilience of our region’s business community in the face of significant economic challenges.
“Rising economic inactivity has been one of the greatest concerns over the past couple of years as it led to a dwindling labour market, which has restricted capacity – and therefore the ability to grow, raise productivity and bring prices down.
“While this rate remains above pre-Covid levels, it’s pleasing to see this has now come down by about 2% throughout this year, giving firms more room to manoeuvre.
“However, our own research shows there is no room for complacency. Our Quarterly Economic Survey has highlighted a slight growth in the region’s workforce, with 60% of East Midlands businesses adding to headcount in the first quarter of 2023, rising to 62% in Q2 and 63% in Q3.
“Employment prospects look weaker going forward with the proportion of firms expecting to recruit in the coming months falling by a net 8%, amid slowing demand for our region’s businesses products and services from both domestic and international customers.
“Many employers continue to face challenges with filling job vacancies. While 58% of organisations attempted to recruit during Q3, two-thirds (67%) of those experienced problems in finding suitable staff.
“This illustrates how we really need a dedicated Government policy that supports companies to invest in their people, whether that be in upskilling their existing workforce or reskilling prospective employees to fill skills gaps.
“In our regional economic blueprint, A Centre of Trading Excellence: A Business Manifesto for Growth in the East Midlands and Beyond, investment is one of the ‘four Is’ we urge Government to prioritise – and next week’s Autumn Statement provides a great opportunity to address this.
“We have set out a list of policies we believe will make the required difference, including introducing flexible incentives for businesses that invest in staff training and bringing forward the introduction of the Lifelong Loan Entitlement to support retraining and the retainment of an older workforce.
“We must also tailor policies to recognise the diversity of people who are out of work and avoid a one-size-fits-all solution. We would also like to see Government work with businesses to offer support, and share best practice, on what a flexible and inclusive workplace looks like as this is another vital ingredient in enticing people back to work.”
New NTU partnership set to improve sustainability in logistics
Nottingham Trent University (NTU) and Baxter Freight have been awarded funding for a Knowledge Transfer Partnership (KTP) focused on sustainability within the logistics sector.
The funding will allow Baxter Freight to work with leading academics from Nottingham Business School, part of NTU, within the field of supply chains, sustainability, organisational change and marketing, as well as to recruit an associate to work within the organisation.
The logistics and transport sector is essential to the global economy, helping supply chains to keep moving, transporting essential goods around the globe. However, it contributes just over a third of global carbon dioxide emissions, making it the largest-emitting sector in numerous developed countries.
The Nottingham-based freight forwarder is focused on driving sustainable innovations within supply chains and decreasing its impact on the environment. In the UK alone there are around 61,303 road freight businesses who need to evolve their operations to be more sustainable and future ready.
From 2025 Scope 3 reporting, the indirect emissions in a company’s value chain that are typically responsible for 70-90% of an organisation’s carbon footprint (Carbon Trust), will become mandatory in Europe.
However a recent survey by Baxter Freight found that 47% of their customers aren’t ready. The company works very closely with hauliers and customers and has found that many of them are still unsure what Scope 1, 2 and 3 is and how it impacts them and their operations.
Richard Jeggo and Tom Isler, who are leading the KTP at Baxter Freight, are working to support customers and suppliers and the KTP will be key to that.
Tom Isler, Baxter Freight Innovation & Sustainability Manager, says: “Collaborating with NTU and NBS is an opportunity for us to see how we can create clarity for our partners, whether they are suppliers or customers on this complex issue of Scope 1, 2 and 3, net zero and sustainability.
“If we can help even a handful of businesses to not only report on scope 3 but find more sustainable solutions because of it, then we will have already made a positive impact.”
Dr Stuart Carnell, Senior Lecturer at Nottingham Business School, said: “It is inspiring to see an organisation such as Baxter Freight who are redefining sustainability and net-zero within the freight industry and creating a forum for stakeholder interaction as part of this Scope 3 initiative.
“Furthermore, the team at NTU are proud to support and facilitate this initiative as part of this knowledge transfer programme.”
Over the coming months Baxter Freight will be growing their innovation team as they recruit for the new KTP associate.
Manufacturing company fined £500,000 after forklift truck death
The mother of a man who was killed when the forklift truck he was driving overturned says she still feels angry as he “simply went to work and didn’t come home.”
Jamie Anderson was killed on 4 June 2019, when the forklift truck he was operating overturned at a depot in Newark.
The 35-year-old father of one was found in the car park trapped under the roll cage of the vehicle. He had been using a counterbalance forklift truck to move waste material when it clipped a kerbstone at the edge of the roadway and overturned. He was not wearing a seatbelt.
His mum Sarah Anderson, a care assistant from Newark, said: “No mother should lose a child and for Jamie’s son Harley he has lost a loving father.
“As a family we have gone through all emotions, and I still feel angry as Jamie simply went to work and didn’t come home. This should not have happened.
“He was a happy-go-lucky boy and would do anything for anyone. It’s the everyday things that remind me of him and I miss his smile and blue eyes. He’s missed so much.”
An investigation by the Health and Safety Executive (HSE) found that The Barcode Warehouse Ltd failed to enforce the use of seatbelts by forklift truck operators. They should have properly risk assessed the use of forklift trucks on their premises and enforced the use of seatbelts. Instead, it was left to individuals to choose whether to wear a seatbelt or not.
At Nottingham Magistrates’ Court on 8 November the Barcode Warehouse Ltd of Telford Drive, Newark pleaded guilty to breaching Section 2(1) of the Health & Safety at Work Act 1974. They were fined £500,000 and agreed to pay costs of £7,039.55.
Speaking after the hearing HSE inspector, Tim Nicholson said: “This tragic incident led to the avoidable death of a young man. Jamie’s death could easily have been prevented if his employer had acted to identify and manage the risks involved and enforced the use of seatbelts by forklift truck operators.”
This HSE prosecution was supported by HSE lawyers Nathan Cook and Jonathan Bambro, and Paralegal Officer Rubina Abdul-Karim.
Work progresses on transformation of Derby Racecourse into vibrant community space
Work is progressing on transforming Derby Racecourse into a vibrant community space with the development of the Football Hub. The Hub will host a community building with three new outside full-size 3G football turf pitches (FTPs) and refurbishment of the existing FTP.
The benefits of the Football Hub extend beyond sports facilities and Derby Racecourse will be much more than just a place to play sports. The vision is to bring life into the park offering a wide range of activities for everyone in the community to enjoy.
The Derby Racecourse transformation involves the revitalisation of play areas and the outdoor gym, which will include accessible equipment. A new basketball court suitable for 3×3 player games will be installed and the trim trail has already been revamped to offer a more engaging recreational experience.
Plans have been submitted for approval for the extension of pathways around the Racecourse Park, ensuring improved accessibility, and the addition of new benches. The project also includes an increase in parking spaces to accommodate visitors more comfortably. Furthermore, a community café with a Changing Places WC will be provided to enhance the overall experience for all park visitors.
Derby Racecourse, which is located in the northern part of the city has traditionally been a focal point for football activities. However, these activities have resulted in extensive areas of closely mowed grass with relatively low biodiversity. The Racecourse Football Hub project is committed to improving the park’s biodiversity.
To achieve this, the project aims to plant new trees along access routes and in unused areas to provide more diversity to the park. Careful consideration will be given to choosing tree varieties that can resist diseases and adapt to changing climates. Additionally, the project plans to create wildflower areas to add variety to the closely maintained pitches and attract essential pollinators to the park.
The transformation of Derby Racecourse and the development of the Football Hub project have been made possible through collaboration between Derby City Council and financial support from the Premier League, The FA, and the Government’s Football Foundation. After completion in early 2024, the facilities will be leased to the National Football Trust and operated on their behalf by Leisure United.
The transformation promises a positive impact, providing an inviting and dynamic space for all to enjoy while enhancing recreational opportunities and biodiversity in the city.
Councillor Nadine Peatfield, Derby City Council Cabinet Member for City Centre Regeneration, Culture and Tourism, said: “Derby Racecourse is evolving into a vibrant community space with the Football Hub project. The transformation promises a positive impact, offering an inviting and dynamic space for all.
“While it’s already a well-used community space for football, the Football Hub project will elevate it beyond just a muddy field. It ensures year-round use, proper facilities, and increased biodiversity, enriching our city’s recreational opportunities.”
Creative Notts businesses to benefit from funding
Creative businesses across Nottinghamshire are set to benefit from new targeted support to help attract investment and create jobs.
A county-wide consortium, known as Creative Growth Nottingham and Nottinghamshire, is one of six areas set to share £10.9m worth of government funding as part of the latest round of the Create Growth Programme. This will help creative businesses access private investment and scale-up advice, to turn today’s start-up founders into tomorrow’s CEOs.
Creative Growth Nottingham and Nottinghamshire is a partnership between D2N2 LEP, Invest in Nottingham, NBV Enterprise Solutions Ltd, Nottingham City Council, Nottinghamshire County Council, Nottingham Trent University and The University of Nottingham.
The Culture Secretary is doubling the areas covered by the programme, announcing six new areas, including Nottinghamshire, that will help deliver targeted business support, bringing the total number of creative organisations expected to be supported by the programme to 1,800.
Culture Secretary Lucy Frazer said: “From the famous pottery of its past to fashion brands of today, the Midlands are a place where creative industries can thrive. I want to maximise the potential in the next generation of the region’s creativity and talent for years to come.
“We’re already making progress towards the ambitious goals set out in our sector vision, unveiling millions in new funding to drive growth in our grassroots and scale ups and banging the drum for creative careers.”
Councillor Keith Girling, Cabinet Member for Economic Development and Asset Management, said: “As a county already renowned for creativity and innovation, this investment is great news.
“We are proud to be part of this partnership which will help creative businesses thrive, create more jobs and opportunities, especially for younger people, which will boost our economy.”
Representing the wider consortium, Sajeeda Rose, Corporate Director for Growth and City Development at Nottingham City Council, added: “Securing this funding is a significant boost for our local economy, helping to support one of our priority sectors across our city and county, after all we are an area which is well-known for creative innovation and world-changing pioneers.
“This government funding recognises the fantastic potential of our creative and digital sector and provides an opportunity to support them to realise that potential and achieve growth for them, and our economy. We look forward to delivering this support with our local consortium partners.”
The support is expected to be launched in the New Year and it is hoped will benefit more than 60 businesses in this sector.
Demand pushes forecast overspend higher at Derby City Council
Derby City Council is now forecasting an overspend of £6.5m at the end of this financial year without further mitigation. This is an increase of £0.5m on the position at the end of June.
Rising demand on services, especially in adult and children’s social care and housing demands for temporary accommodation, is placing continued pressure on Council budgets. High inflation continues to impact on all services, but especially on energy costs and the annual pay award, which is set nationally.
The current financial position is outlined in the Quarter 2 Financial Monitoring report, which records the first six months to October and will be considered by Cabinet Members at their next meeting on 21 November.
It does not include the costs incurred as the result of recent flooding due to Storm Babet. These are still being calculated and the Council will be looking to claim through the Government’s Bellwin Scheme.
Without further mitigation the Council could consider using its reserves to meet the overspend, however these would have to be replenished over the medium term.
The Council is already taking action to drive down costs having mitigated £2.6m of the costs of the annual pay award through controls on job vacancies. To avoid drawing so much on its reserves, it will need to cut its in-year spending, and limit recruitment, even more than it is already doing.
Like councils across the country, Derby is facing unprecedented financial challenges. Some councils including Birmingham, Thurrock and Slough have declared a Section 114 notice, meaning they can no longer deliver a balanced budget. In these cases they have faced specific, local issues but this has happened against a backdrop of deep cuts to local government funding since 2010.
Paul Simpson, Chief Executive of Derby City Council, said: “Taking our usuable reserves down to the levels outlined in this report is our absolute last resort and we will be doing everything we can to mitigate against this, in the face of continued economic uncertainty and rising demand.
“The long-awaited reforms of local government funding need to be bought forward to ensure that local authorities can be financially sustainable. Councils have to be there to provide and care for the most vulnerable people in our society.
“We won’t have confirmation of how much Government funding we’ll get for 2024/25 until late December, by which time we will be presenting our budget proposals, which look set to be very challenging indeed.
“Above all, we’re a strong Council and remain ambitious for our city. We will do everything we can to keep us on a stable financial footing.”
Millions to be invested into business growth and sustainability by West Northants Council
West Northamptonshire Council (WNC) has launched a competitive commissioning round to identify partners to deliver key elements of its multi-million-pound investment plan which will benefit the local economy and support businesses’ sustainability goals.
The Council is inviting suppliers to submit tenders to deliver two leading projects; Decarbonisation and Growth & Innovation. Both projects have been allocated £625k from the Council’s UK Shared Prosperity Fund (UKSPF). The Fund, which is managed for the Government by the Department of Levelling Up, Housing and Communities supports the Government’s levelling up agenda.
Among the plans for the UKSPF funding include providing business support and revenue grants up to the value of £20,000. The fund will encourage businesses to innovate and understand how they can grow their sales, profits, workforce and business as well as supporting employers to understand their energy usage and the measures they can implement to reduce emissions, increase efficiencies, and save on energy costs.
The chosen supplier for the Decarbonisation project will distribute grant funding and work with local businesses to develop sustainability plans which specifically outline how they can achieve a Net Zero future and utilise Government funding to address carbon emissions: having a beneficial impact on their business, the local area and the planet as a whole.
The chosen supplier for the Growth & Innovation project will distribute grant funding and work directly with businesses to deliver measures to help progress their growth journey and implement actions to increase productivity, including 121s, training, webinars and dedicated expert advice.
In addition, over £800,000 of Rural England Prosperity Funding (REPF) will soon be available to support businesses in eligible rural areas. Across the three projects activities will target investment in supporting the drive to net zero, increasing business productivity and growth, and capital investment to support transformative rural initiatives.
Cllr Daniel Lister, Cabinet Member for Economic Development, Town Centre Regeneration and Growth, said: “We are a local authority that recognises local employers as the lifeblood of our economy and it is for this reason, we are thrilled to be delivering the majority of our UK Shared Prosperity Fund to support local employers, improve and create jobs, boost the local economy and raise the profile of West Northants as an area where everyone can thrive with the support of a Council which is dedicated to strengthening business growth and potential.
“As a Council, we’ve worked hard to carefully plan how to use this funding to realise our growth aspirations for our area and ensure this funding has a beneficial impact on the local economy whilst addressing specific challenges and opportunities as identified from the data and consultation which informed our UKSPF Investment Plan.
“We have a comprehensive range of projects, initiatives and activities taking place between now and March 2025 which aim to deliver impactful interventions that will benefit the whole community; from public realm improvements to voluntary grants, to business support and upcoming funding dedicated towards supporting local people and enhancing skills.
“We are looking for delivery partners who share our ambition for inclusive and resilient growth in West Northants and are particularly interested in suppliers that can provide innovative and creative approaches for both the Growth & Innovation and Decarbonisation projects.”
Cllr Jonathan Nunn, Leader of West Northamptonshire Council, said: “We are delighted to be investing this UKSPF funding into local businesses. We want our funding to be inclusive and to really make a difference, to benefit the many thousands of businesses we have in this area to prosper.
“These projects will not only help to grow our local economy and future-proof employment by creating a more inclusive market which is resilient to the impacts of climate change, they will also enable local businesses to diversify and invest in new technologies and energy saving measures which save them money and work towards reaching West Northants’ sustainability goals.
“We strongly believe that by working together to implement sustainable practices, initiatives, and investments and considering the small but vital steps we can all make, together we can achieve our shared mission to become Net-Zero by 2045.”
The tender closing date for the Decarbonisation and Growth & Innovation projects is Friday, 8 December 2023. Projects are expected to commence in spring 2024 and will run to the end of March 2025.
Delivery giant launches £12m project in Erewash
A delivery giant that is building a huge new logistics centre in Erewash welcomed the mayor to the launch of its £12m project – as the first spades were put in the ground.
The hub is at the New Stanton Park Industrial Estate on the edge of Ilkeston – formerly home to the famous ironworks.
DX Group has become the first commercial tenant as the brownfield site is brought back into use. Planning permission for the new 25,000 sq ft regional hub was granted as part of the nationwide delivery firm acquiring 4.5 acres.
Mayor Councillor Frank Phillips was joined by Erewash council leader James Dawson and local MP Maggie Throup. Councillor Dawson said: “This is fantastic news for the borough. It means that the DX building alone will bring up to 138 jobs.”
The hub will include a raised dock to service DX’s parcel freight activities. The new site will also include a depot serving the local area. The Slough-based firm’s Chief Executive Paul Ibbetson said: “The investment will increase our capacity, drive efficiency improvements and enhance customer service.”
The hub is expected to be constructed within a year.
