- Output volumes fell marginally in the three months to June (weighted balance of -6%, from -10% in the three months to May). Output is expected to rise slightly in the three months to September (+4%), with expectations mildly positive again after briefly turning negative last month.
- Output fell in 12 out of 17 sub-sectors in the three months to June. The largest contributions to the fall came from the mechanical engineering and food, drink & tobacco sub-sectors.
- Total order books were reported as below “normal” in June, to a broadly similar extent to May (-15% from -17%). This leaves them standing marginally below the long-run average (-13%).
- Export order books were also seen as below normal and deteriorated marginally from last month (-29% from -26%). This was also weaker than the long-run average (-18%) and leaves export order books in their weakest position since February 2021.
- Expectations for average selling price inflation in the three months ahead fell slightly in June (+19%, from +21%), the sixth consecutive monthly fall, to stand at their softest since February 2021. Although selling price inflation expectations were comfortably below the multi-decade high seen in 2022 (+80% in March 2022), they remained well above the long-run average (+7%).
- Stocks of finished goods were seen as comfortably above “adequate” in June (+15% from +10% in May) and remained broadly in line with the long-run average (+12%).
Manufacturing output declines for fifth month running
Manufacturers’ order books remained weak in June, according to the CBI’s latest Industrial Trends Survey.
Output of UK manufacturing firms fell marginally in the three months to June, for the fifth successive month, though at a slower pace than in April and May and in line with expectations. Output volumes are expected to rise slightly in the three months to September.
Total order books were reported to be below normal, to a broadly similar extent to May. Export order books were also seen as below normal, but deteriorated slightly, leaving them in their weakest position since February 2021.
The survey, based on the responses of 233 manufacturing firms found:
East Midlands businesses awarded Create Growth grants worth up to £30k each
The first group of successful Create Growth grant applicants has been announced – with up to £400,000 of funding now heading to the East Midlands.
Fourteen grants, each worth between £10,000 and £30,000, have been awarded to creative businesses in Leicester and Leicestershire, Derby and Derbyshire, Rutland, Lincoln and Greater Lincolnshire.
The successful applicants to the Innovate UK-funded scheme were revealed as Government announced new plans to maximise the potential of the UK creative industries and grow the economy.
Recipients of funding include fashion firms, gaming tech companies and businesses in the music, design, production and video sectors.
The Athlete Place, based at LUinc. on the Loughborough University Science and Enterprise Park, is an online platform providing guidance and support for parents of aspiring young athletes.
Founder Joe Fuggle said: “We are thrilled to be among the first beneficiaries of Create Growth funding.
“By receiving support, we will be able to enhance the production value of our content and education through collaboration with experienced professionals in the creative industry.
“It’s a massive opportunity to explore previously out-of-reach projects and improve our investment readiness and is very exciting.”
The fourteen successful funding applicants were:
-
Gumbo, Leicestershire
-
Th!nk FC, Leicestershire
-
Super Hyper Instant Future Time, Derbyshire
-
Future Proof Creative, Derby
-
Floop Group, Lincolnshire
-
Graphic Workman, Derbyshire
-
Rubitek Solutions, Leicestershire
-
Biomatics, Lincoln
-
The Athlete Place, Leicestershire
-
Lyndon Media, Leicestershire
-
Cocoa Amore, Leicester
-
Haarlem, Derbyshire
-
Derby Swap Shop, Derby
-
Apnakey, Leicester
The Creative Industries Sector Vision, published by Government last week, aims to grow the creative industries by £50 billion by 2030, create one million extra jobs, and deliver a creative careers promise that builds a pipeline of future talent.
Culture Secretary Lucy Frazer said: “This Sector Vision is about driving innovation, attracting investment, and building on the clusters of creativity across the country.”
Elsewhere, as part of the wider Create Growth agenda, the East Midlands Creative Consortium (EMC²) is recruiting to a separate programme supporting businesses operating in the creative sector.
EMC² is among the first six regions to run the scheme, which will offer bespoke development packages which increase business skills and help businesses get better prepared to capitalise on future finance options as they become available.
It runs across Leicester and Leicestershire, Rutland, Lincoln and Greater Lincolnshire, Derby and Derbyshire, with the first cohort starting in September.
The free programme of support will ultimately work with 100 regional businesses to help them accelerate business growth, create jobs, and prepare for investment.
OMS adds to its course portfolio
For the second half of 2023, OMS are delighted to be able to add a series of health and safety training courses to their portfolio. And they are sure they’ll be 4.9 star rated on Trustpilot soon, just like OMS’ other courses already are.
IOSH SHE
OMS have been offering IOSH training courses for the last 17 years, with their trainers experts in their field, and provide a range of IOSH courses already. The newest addition to the offering is the IOSH SHE for Construction Site Managers. The construction and building products sector is OMS’ speciality as they’ve worked with many of the brilliant businesses located in the East Midlands over the years.
The first IOSH SHE courses start on the 31st July and OMS are looking forward to seeing their training centre full of site managers and H&S managers who’re looking to gain this respected qualification.
Construction NVQs
OMS have added a range of NVQs designed specifically for different tiers within the construction sector; their NVQ Level 2 courses are for the operational level, so people doing the ground works for example could gain an NVQ at this level in modular paving.
Moving onto the next level, NVQ3 is designed for site people to progress their construction career and understand what supervision of sites requires. NVQ4 provides a full qualification for site supervisors and covers planning, quality control, health and safety. Then the NVQ Level 6 is created for site managers to prove their competence and gain the much sought after CSCS Black Card Manager.
NEBSOH Diploma
When it comes to NEBOSH, OMS are a gold training partner. There’s been over 600 delegates on the NEBOSH course over the last nearly 20 years that OMS have been running them at their training centre in Leicestershire.
“Having trusted partners to deliver the NEBOSH training courses is paramount, OMS have long been one such partner. The team at OMS have always focused on putting the customer first and this is proven with 25 successful years in business,” said Ian Cooke, Head of Corporate & Consumer Services at NEBOSH.
The NEBOSH Diploma is the most highly respected health and safety qualification in the country. It’s the perfect choice for anyone in any sector to progress with a H&S career.
OMS can offer open courses where one or more team members join the course at their Leicestershire-based training centre, or training can be delivered in house on site, bespoke to business needs.
All courses can be viewed and booked via www.oms.uk.com.
Housebuilder submits plans and exchanges contracts to deliver £20m residential development in Matlock
Housebuilder Honey has submitted plans and exchanged contracts on a 10.5-acre site in Matlock to deliver a £20.35m, 75 new home development.
The proposed site, which will be called Hazel, is located opposite Matlock Golf Club on Chesterfield Road and was acquired from strategic land promoter Richborough Estates for an undisclosed sum.
Subject to planning, Hazel will comprise a mix of one-, two-, three-, four- and five bedroom homes and will include maisonettes, terraces, semi-detached and detached properties.
The development is Honey’s second in Derbyshire, with the company recently being granted planning permission to build its £14m, 50-new home Amber development in South Normanton, near Alfreton.
Sheffield-headquartered Honey says its housetypes have all been specifically designed to combine “style, substance and sustainability” for the benefit of buyers. Prices for homes at the development will be released at a later date.
If given the go ahead by Derbyshire Dales District Council, work at Hazel is anticipated to start in December with the first residents expected to move into their new homes next August.
As well as providing new homes for the area, if planning is granted, Honey will also make a £670,000 contribution to initiatives that will benefit the local community.
Honey Chief Executive Officer, Mark Mitchell, said: “It’s fantastic to have submitted planning for our Hazel development, which will deliver new homes that combine style, substance and sustainability for the benefit of discerning buyers.
“There is strong demand for high quality, high specification new homes in Matlock and we now look forward to Derbyshire Dales District Council considering our plans for the site.”
Briony Stenhouse, land and planning manager at Richborough Estates, said: “We’re thrilled to have secured this land sale to Honey, delivering a great result for our landowners and supporting the growth of a new housebuilder.
“Subject to planning, we look forward to Honey starting work on this attractive development of high-quality new homes that meet the needs of the local area.”
Honey was founded by former Avant Homes Chief Executive Officer, Mark Mitchell, in October last year. The company is backed by private equity firm Alchemy Partners and its Alchemy Special Opportunities Fund IV which has £937m of fully committed capital.
SMEs have shouldered average 26% energy price hike this year, survey finds
Nine in 10 UK SMEs have reported hikes in their energy costs in 2023, with companies increasing their own prices and investing in their operations to help mitigate the impact, Paragon Bank research has found.
Paragon’s survey of more than 500 businesses, conducted on behalf of the bank by Opinium, found that, on average, companies experienced a 26.6% increase in their energy bill during the first three months of the year.
Four in 10 reported an increase of between 20% and 50%, with one in 10 recording an even larger energy bill hike.
The increase in energy costs reflects the broader inflationary pressure facing UK SMEs. Businesses reported an average cost increase for raw materials of 22.6% during the period, and 21.4% in the cost of new equipment and machinery. Additionally, employee salary costs were up 17.7% on average.
Businesses have implemented a range of measures to mitigate the energy cost increase. The most common action was to increase the price of their own goods or services, implemented by 54% of SMEs and being considered by a further 26%.
Companies have also invested in their own operations to make themselves more energy efficient – 38% of businesses said they have made investments in greener equipment, such as more energy efficient machinery, with 36% making changes to their premises, such as the installation of solar panels.
Other measures implemented by companies included encouraging more employees to work from home (27%), refinancing or extending loan terms on assets (20%), seeking new equity finance (21%) and taking out additional loans to fund the business (19%).
Conversely, SMEs said they had cut planned investment (33%), whilst one in five had reduced production output (19%).
John Phillipou, Paragon Bank SME Lending MD, said: “The cost of energy has negatively impacted the majority of business throughout the UK, even with the Government support package. Businesses have responded in several ways, with price increases being the most obvious way to mitigate the increase.
“However, it’s also positive that companies have been looking at ways they can reduce their energy bills by making themselves more efficient. We have seen businesses invest in their operations with the addition of more energy efficient equipment, whilst we have also funded changes to premises, such as the addition of solar panels. These are positive steps towards a greener future.”
More than 200 firms forced to pay workers left out of pocket by minimum wage law breaches
Over 200 employers including WH Smith and Marks & Spencer have been named by government for failing to pay their lowest paid staff the minimum wage.
The 202 employers – who’ve now paid employees the balance – were found to have failed to pay their workers almost £5 million in breach of National Minimum Wage law, leaving around 63,000 workers out of pocket.
Companies named include major high street brands, small businesses, and sole traders, in a clear message from government that no employer is exempt from paying their workers the statutory minimum wage.
Minister for Enterprise, Markets and Small Business Kevin Hollinrake said: “Paying the legal minimum wage is non-negotiable and all businesses, whatever their size, should know better than to short-change hard-working staff.
“Most businesses do the right thing and look after their employees, but we’re sending a clear message to the minority who ignore the law: pay your staff properly or you’ll face the consequences.”
The businesses named have since paid back what they owe to their staff and have also faced financial penalties. The investigations by His Majesty’s Revenue and Customs concluded between 2017 and 2019. The employers named today previously underpaid workers in the following ways:- 39% of employers deducted pay from workers’ wages.
- 39% of employers failed to pay workers correctly for their working time.
- 21% of employers paid the incorrect apprenticeship rate.
“Regular naming rounds should be a useful tool in raising awareness of underpayment and helping to protect minimum wage workers.”
The full list of companies and the amounts by which they underpaid employees can be found here.Applications open for projects to enhance Mansfield town centre businesses’ kerb appeal
Mansfield District Council has reopened the application process for town centre businesses to apply for grant support to improve shop fronts and enhance their building’s design quality.
The Mansfield Townscape Heritage Project, funded by the National Lottery Heritage Fund and delivered in partnership with Mansfield BID, Vision West Nottinghamshire College and Nottinghamshire County Council, focuses on parts of Leeming Street, limited properties on Stockwell Gate and the Market Place conservation area.
The project forms part of a wider vision by the council to improve the appearance and vibrancy of the town centre and to put Mansfield on the map as a great place to live, work, invest and visit.
Following a pause in the scheme’s delivery due to the Covid-19 pandemic, supply chain issues and inflationary pressures, the council is now working with Focus Consultants to encourage property owners to review the project and consider the opportunity to apply.
The circa £1.3m scheme helps landlords, property owners, and businesses with a lease that has at least ten years left to carry out property repairs and refurbishments to enhance the architectural quality of the buildings.
Councillor Stuart Richardson, Portfolio Holder for Regeneration and Growth, said: “Property owners will be able to apply for co-funded grants of up to 75 percent to help with the cost of making improvements, which are in sympathy with their building’s heritage.
“The long-term strategy is to try to help Mansfield meet the challenges of the changing face of the high streets – a phenomenon happening across Britain – by encouraging more independent retailers and making the centre as much a place for socialising, entertainment and living in, as it is a place for shopping.
“The council already provides business start-up, growth and shop front improvement grants to help reduce vacancy rates and encourage more independent retailers to the town and works with our partners to support established businesses to grow. The support of the National Lottery Heritage Fund and their patience over the past few years is hugely welcomed. We are delighted to be working with Focus and our town centre partners to bring the project forward.
“Times have changed significantly since the scheme was started, yet the funding pot remains, and we want to ensure everyone is given a fair opportunity to access this vital funding.”
Jay Rowlinson, CEO of Mansfield BID, added: “We are delighted that the Townscape Heritage Programme is being given a boost, and we fully encourage our town centre businesses and the property owners to engage in exploring the support that may be available.
“This is another important part of the town centre jigsaw, to create a place that is valued, appreciated and attracts new investment.”
The deadline for applications to be received is Sunday 16 July 2023.
Council launches grants for rural Harborough businesses
Businesses in the Harborough district are being invited to apply for grant funding through the new Harborough Rural Grant Scheme.
Eligible applicants can benefit from grants between £5,000-£20,000 to support their business to diversify, innovate and grow. A total of £120,000 is available.
The council is keen to support exciting projects that will help local businesses and the wider economy and community.
The scheme spans across four themes:
- Farm Business Diversification
- Innovate and Grow
- Green Technology
- Rural Tourism
Derby expansion for digital agency
A digital marketing agency has doubled its footprint in Derby by moving into a new office following a period of rapid growth both in headcount and new clients.
Alphageek Digital has moved into Century House, in St James’ Court, after expanding its team to 20 members of staff – a growth of 33% in the last six months.
Making the move to the 167 sq m office space is allowing the firm to increase its client portfolio further.
Alphageek currently looks after the online activity for around 50 companies in four continents across a range of industries including Derby-based Project D, restaurant chain Tamatanga and international brands HUUB, Casio and Do Not Age.
The new office space has the capacity for the firm, which is run by three friends Art Lindop, Alex Mills and Kieran Flynn, to expand on to the next floor.
Operations director Kieran said: “This move is another positive step forward in our development as a business and because we are committed to growing the firm sustainably, and attracting the best talent to serve our clients, having more space at our disposal means we are ready to hit the ground running when we recruit.
“We have an ongoing commitment to providing a high-quality and collaborative working environment for colleagues and this new space gives us several offices as well as an area for downtime and even has space for our table tennis table.
“We want our people and clients to come and experience the refreshing culture that we’ve built and the new premises helps this to thrive further as we’ve made it our own.
“We are all ready to write the next chapter in Alphageek’s story. We’re really proud that Derby has the fastest-growing economy of any city in the East Midlands, and it has a growing reputation as a centre of excellence for technology.
“It’s a really exciting time for us. We are still recruiting for more staff and have just landed one of the most exciting projects we’ve ever been able to work on, which will be announced in the next few weeks.”
New partners join PwC Midlands senior leadership team
PwC Midlands has made changes to its senior leadership team in the region, responsible for driving the local strategy and supporting the wider firm.
From 1 July 2023, Will Dowsett and David Teager will join the Midlands senior leadership team, with Matt Tombs expanding his role within the team.
David Teager, audit partner, will join the senior leadership team as central regional leader for audit. Having built a career with PwC since 1998, David has worked across the globe including China and the Middle East, and is currently based at the firm’s Donington Court office. David’s priorities in the leadership role will include working with new and existing clients and growing the financial audit, stakeholder assurance and capital markets businesses.
Will Dowsett will step into the role of central regional leader for tax, covering a variety of offices including Birmingham and Donington Court. Will joined the firm in 2008 and was admitted into the partnership in 2015. Based in the Birmingham office, Will leads a number of the firm’s relationships with some of the biggest private companies and family businesses both in the region and nationally, and will focus on continuing to build the market leading tax practice in his new role.
Matt Tombs, deals partner, is expanding his role on the senior leadership team as the new industrial manufacturing & services industry leader for deals. Matt has over 26 years’ experience with the firm, most of which has been spent in the Midlands region. Matt is committed to building on the strength and depth of the Deals team, both locally and nationally, to support clients in the Industrials and Business Services industry sector.
Matthew Hammond, PwC UK Midlands regional market leader & Birmingham senior partner, said: “It’s fantastic to see both David and Will appointed to lead our Audit and Tax businesses across the Midlands, West and Wales. They both bring fantastic experience and international perspectives to our clients.
“Matt’s industry specialism reflects our Deals business focus through industry and sector lenses to ensure we bring the best specialist insights to our clients. With over 50% of PwC’s people based outside London, these appointments reflect the ability of talented team members to develop into senior practitioners and leaders through developing their careers in UK regional markets.”
