2023 Business Predictions: Joshua Toon, director at Armsons Barlow
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 Joshua Toon, director at Armsons Barlow, which provides Project Management, Construction Cost Management/Quantity Surveying and Building Surveying Services from its base in Derby.
2022 was an interesting year for business, as the impact of COVID-19 finally lessened, only to be replaced by the pressures on the economy, with a cost-of-living crisis, rocketing energy bills and an impending recession.
Unsurprisingly, the industry has seen a relatively steady start to Q1 2023, with many institutional investors opting to take stock of the current market conditions before re-engaging with schemes. I predict scheme re-engagement will take place towards the latter end of Q2 2023, thus enabling investors to take a view on inflationary trends and the state of the market before making any medium to long term commitments.
As far as construction costs are concerned, I would expect material costs to finally stabilise this year and ‘construction related inflation’ to become less prominent, which should provide a boost for the sector.
A trend I expect to see this year, and beyond, is a larger drive for sustainable construction methods. Many businesses are now looking to reduce their carbon footprint and become more environmentally friendly through adoption of sustainable construction techniques, where able to do so.
The increase in energy costs will almost certainly lead to a greater uptake in adoption of sustainable construction methods, and I predict this will filter through to all sectors. This, factored with the stabilisations of material costs, will hopefully ensure a wider adoption of sustainable construction techniques throughout the construction industry.
All in all, I think we have reason to be cautiously optimistic for 2023. The construction sector has faced economic challenges many times in the past and I’m confident the industry will be able to come out the other side of this ‘economic crisis’ in a healthy position.
Further four buildings to be delivered at Markham Vale
Property developer HBD will bring forward a further four buildings at Markham Vale as planning permission is approved for an additional 107,250 sq ft.
The industrial and logistics scheme will see another six acres developed to deliver the new units, with the potential to create a further 150 jobs at the site.
Sustainability will be a key focus for each of the new buildings, which will be designed to achieve BREEAM “Excellent” and will be available on either a freehold or a leasehold basis.
Richard Hinds, senior development manager at HBD, said: “Markham Vale is one of the region’s most successful destinations for industrial, logistics and warehousing space so it’s great to be able to expand the scheme to meet demand for well-located Grade A space.
“The decision to approve a further 107,000 sq ft is testament to the longstanding partnership between HBD and Derbyshire County Council and our commitment to continuing to progress crucial regeneration schemes like Markham Vale when the economic outlook is more challenging.
“We are currently in discussion with several occupiers looking for bespoke design and build units and expect work to start on site in the second half of the year.”
Derbyshire County Council’s Cabinet Member for Clean Growth and Regeneration, Councillor Tony King, said: “This marks the beginning of another exciting chapter for Markham Vale which continues to prosper despite the difficulties of the current financial climate. We look forward to welcoming more businesses bringing more jobs in the future.”
Markham Vale is a 200-acre joint venture scheme between property developer HBD and Derbyshire County Council. It is one of the region’s flagship industrial schemes, attracting new businesses and creating a total of 2,702 new jobs to date.
Just 11 acres now remain for development, accommodating a further 190,000 sq ft.
WestBridge Group completes Rowanmoor SSAS book acquisition
WestBridge Group (WestBridge), the independent provider of SSAS services and tax experts, has completed the acquisition of Rowanmoor Executive Pensions Limited’s book of 3,500 small, self-administered schemes (SSAS), for an undisclosed sum.
The firm has also taken the opportunity to rebrand the business to WBR Group to reflect the larger organisation.
The Group is headquartered in Leicester and following completion now has offices in Bolton and Salisbury providing support to clients across the UK. There are now over 4,000 SSAS and almost 150 employees across the three sites.
WBR Group provides specialist tax advice to the owner-managed business sector and high net worth individuals in addition to independent administration, consultancy, actuarial and trustee services for SSASs. Established in 2016, the firm boasts an executive team that has over 150 years’ experience providing advice to business owners and other professionals seeking guidance on tax planning opportunities and the benefits of using a SSAS pension.
Tom Moore, CEO of WBR Group, said: “We have made no secret that we are acquisitive for the right books of business and have shown how we can successfully integrate them into the model. This is the second major acquisition we have made and follows the purchase of the James Hay SSAS book in March 2021.
“We are creating a hub of SSAS excellence, with a dedicated account manager model that is hard to beat. We have been really pleased at the response we have had from clients, staff, financial advisers and other intermediaries and can’t wait to continue to develop our people and grow our business.
“The business has grown and evolved since its launch in 2016, particularly in the last two years, and we want to ensure that our brand and identity work continues for many years to come.
“It is important to acknowledge the businesses that have joined us through acquisition and to have a clear business strategy that everyone understands and can focus on. That is why we have also unveiled a fresh and modern brand identity and a new name, WBR Group. WBR Group will continue to provide service excellence, high levels of technical support and specialist assistance to clients.”
Planning granted for Emmanuel House emergency accommodation in Nottingham
Independent homelessness charity Emmanuel House Support Centre has received planning permission from Nottingham City Council to change the use of the first and second floors of its premises on Goose Gate, Hockley, in the city centre.
The scheme includes the creation of 20 bedrooms that will provide short-term emergency accommodation for people who find themselves homeless. The charity’s ground floor will continue to provide day support while the first and second floors will be converted into bedrooms providing 24-hour emergency care.
Following the successful planning application, which was approved on Friday 27 January, phase one of the development will start in the coming months. The replacement of the support centre’s existing windows will be the first element of the development to be delivered. New double-glazed aluminium windows are currently being procured by the project team, which will significantly improve the thermal performance and aesthetic appearance of the building.
Denis Tully, CEO at Emmanuel House, said: “This is fantastic news for the charity as it means we’re one step closer to our ambition of providing short-term emergency respite care becoming a reality, contributing to reducing the number of people who are homeless in Nottingham.”
The project team is made up of Nottingham suppliers such as architectural practice CPMG Architects, project managers EDGE, structural and civil engineers Hexa, and mechanical and electrical engineers Chord Consult.
Steve Milan, associate at CPMG Architects, said: “The journey that Emmanuel House is embarking on has only just started, but an important milestone has been reached and we’re proud to be working within a highly skilled project team that cares about the city of Nottingham. We look forward to moving forward with the project and supporting with fundraising efforts.”
Geoff Tindsley, director at EDGE, said: “We’re grateful to Nottingham City Council for its quick approval of a project set to significantly change homelessness support in Nottingham. Helping Emmanuel House make its new vision a reality has already been an exciting process to date, and we’re looking forward to continuing to work closely alongside the trustees and project team in this next phase, offering our expertise in any way we can.”
Fundraising for the project, which is predicted to cost the charity £2 million, will start when the team has completed the preparatory work.
James Garment, director at Hexa, said: “We’re incredibly pleased to be working with Emmanuel House on a scheme that will make such a difference to the local community. With the project involving significant remodelling of the internal layout of the existing building, collaboration across the project design team, which has a long-standing and proven record of delivering successful projects together, will ensure that the finished development really stands up to the charity’s vision.”
Denis added: “We’re continuing to work with Nottingham City Council and our consultants before we can go out for funding. We have more work to do before we can start the crucial fundraising stages. The immediate need for Emmanuel House remains the significant task of raising vitals funds for our Winter Appeal, which will support people in crisis and at risk of homelessness over winter.”
Construction of 96 new energy efficient homes begins in Ancaster
Bellway has begun building 96 energy efficient homes at a new housing development in Ancaster.
The Willows is one of the first developments being delivered by the housebuilder’s Eastern Counties division where all homes will be fitted with environmentally friendly air-source heat pumps instead of gas boilers.
Construction work is now under way at the site off Wilsford Lane after South Kesteven District Council granted planning permission for the development in 2022.
The development will comprise 67 properties for private sale, including a range of three to four-bedroom houses, as well as 29 affordable homes for local people through shared ownership or low-cost renting.
There will also be a public open space, a play area and a green edge with a footpath around the site.
The heat pumps, which run on electricity instead of natural gas, consume significantly less energy and will enable homeowners to minimise their fuel bills and reduce their carbon footprint.
Rhiannon Jones, head of sales for Bellway Eastern Counties, said: “This development marks a significant step in our push for greater sustainability because it will be one of our first sites to exclusively feature homes supported by an eco-friendly heating system.
“As part of our ongoing commitment to future proof our homes, we are also providing electric vehicle charging points for all residents at The Willows to enable the switch away from petrol and diesel cars.
“We are expecting the development to be particularly popular with families due to the site’s proximity to Ancaster Church of England Primary School, which has been rated good by Ofsted and is located just half a mile from The Willows.
“Commuters will appreciate the good transport links, as the development is less than a mile from Ancaster railway station and just a 10-minute drive from the A15.”
Bellway is planning to release the first homes at The Willows onto the market in April 2023, with the first properties due to be completed later in the same year.
East Midlands business confidence falls in January but remains in the black
Business confidence in the East Midlands fell 18 points during January to 10%, according to the latest Business Barometer from Lloyds Bank Commercial Banking.
Companies in the region reported lower confidence in their own business prospects month-on-month, down four points at 24%. When taken alongside their optimism in the economy, down 31 points to -2% this gives a headline confidence reading of 10%.
East Midlands businesses identified their top target areas for growth in the next six months as diversifying into new markets (33%), evolving their product and service offering (31%) and investing in their team (29%).
The Business Barometer, which surveys 1,200 businesses monthly, provides early signals about UK economic trends both regionally and nationwide.Businesses in the region expect staff levels to remain the same over the next year. This is up from December when a net balance of 37% of businesses reported plans to make new hires.
Overall UK business confidence climbed in January, with firms reporting their highest confidence levels since July last year.
Business confidence increased by five points to 22% and the net balance of businesses feeling optimistic about the economy doubled on December’s reading to 16%.
Ahead of National Apprenticeship Week (6-12 February) 30% of businesses across the UK reported that they are looking at opportunities to grow by investing in staff development and training. A net balance of 17% of firms reported plans to create new jobs in the next twelve months.
Dave Atkinson, regional director for the East Midlands at Lloyds Bank Commercial Banking, said: “Despite a challenging business environment, it’s pleasing to see that the region’s firms are feeling upbeat and are focused on investing in skills to help set them up for growth.
“Upskilling forms a key part of the recently agreed East Midlands Devolution Deal, which contains a fully devolved adult education budget, tailored to match the skills need of local businesses. For firms in the region making the most of these education opportunities and investing in training will reap rewards and will build a platform for the region’s growth for years to come.”
For the second month in a row, confidence in the manufacturing and service sectors increased, with manufacturing rising to 28% (up 15 points) and services up to 25% (up seven points). Business confidence in construction was down two points to 27%, while retail confidence fell for the second month in a row to 7% (from 13%), the lowest level since February 2021.
Hann-Ju Ho, senior economist, Lloyds Bank Commercial Banking, said: “Business confidence continues to improve following the December boost. Firms are clearly more optimistic about the wider economy and this is driving the increase, helped by precursory signs that wage and other cost pressures may be easing.
“It is still a tough environment for businesses, with high energy bills remaining a concern during the winter months, but there are grounds for optimism for 2023 if inflation starts to trend lower.”
Spire Recruitment expands into new Clowne offices
A Chesterfield recruitment company has marked further growth with a move to offices at Van Dyk Hotel in Clowne.
Spire Recruitment provides a tailored, personal service to both SMEs and large businesses in and around Chesterfield and Derbyshire in a variety of different industries.
The move to the new offices will enable the company to provide client and candidate meetings in a fantastic environment with beautiful surroundings.
The new office is off-grid, which will also make the company more sustainable, and provides good outdoor space which will enhance the wellbeing of staff and clients.
Lee Ashley, director at Spire Recruitment, said: “Being based in North Derbyshire is really useful to us being a recruitment company, we do quite a bit of travelling and one of the reasons we moved to our chosen location was the amazing transport links.
“We are right next to the M1 motorway and we also have good links to Nottinghamshire and South Yorkshire from our base, this will enable us to gain more clients and be able to push our coverage further. We also have several industrial estates within minutes of the office, so this again gives us nice options to expand our client base further.”
Lee was also excited about the future growth of Spire Recruitment following the company’s relocation.
He added: “Once we have settled into life in our new office, we will then kick on and be looking to expand the team. We will be looking at options as to whether we go down the apprenticeship route, or if the company is in a position to need a recruitment agent who is experienced and can hit the ground running.”
£7m for local transport, housing, and skills programmes in the East Midlands approved by Government
Just under £7 million in funding for local improvements in the East Midlands has been approved by the Government.
The funding which has been given the green light is part of an early investment offered to our area as part of devolution negotiations. It is not dependent on devolution proposals going ahead.
It is part of £18 million on offer from the Government to the region for investment in different projects supporting local priorities, which relate to housing, the environment, infrastructure, skills, and transport in Derbyshire, Nottinghamshire, Derby, and Nottingham.
The programmes which are being funded are:
- £750,000 for a new cycling and walking route in Derbyshire, a 1¼ mile link connecting Markham Vale to the existing cycle route in Staveley.
- £1.5 million for the new roundabout on the A6 at Fairfield in Buxton, Derbyshire, allowing access to housing development land. The roundabout provides access to sites for 461 new homes, including 30% classified as affordable. It also brings work to an area of social deprivation. This work has been completed, with the funding which has just been approved going towards the cost.
- £1.5 million for a new growth through green skills. The investment will enable the creation of a new £5.4 million flagship skills centre and low carbon demonstrator in our region, to be operated by West Nottinghamshire College, as well as two electric minibuses for getting students to and from the site, to support the growth of a future low carbon economy as we work towards net zero.
- £2 million for a new long-term private rental scheme to address homelessness in Nottingham City and Derby City and reduce the use of bed and breakfast accommodation for housing.
- £1.22 million for more affordable housing in Derby City, where there is currently a shortage, to provide 15 extra social houses to be let at an affordable rent. It will mean less reliance on temporary bed and breakfast placements and shorter waiting times for longer-term accommodation.
Rushton Hickman expands team
Commercial property agent Taylor Millington has joined Rushton Hickman in Burton as the company’s new agency surveyor and will play an important role in the company’s plans to further expand its team and geographical reach.
Taylor graduated from Nottingham Trent University in 2018 and has extensive experience in the commercial property market including at PPH Commercial and Derbyshire County Council.
He will focus on expanding the agency side of the business including sales, lettings, acquisitions and disposals and will take a lead on the company’s growing client portfolio across the region.
Taylor Millington said: “Being born and raised in Burton I was keen to join Rushton Hickman who have a superb reputation in the commercial property sector both locally and regionally. The company is the perfect fit for my knowledge and expertise and I look forward to working with the team to further grow the business.”
Director Graham Bancroft added: “We are delighted to have added Taylor to the team and this further strengthens our agency operations at a crucial time in the local and regional commercial property market.
“Taylor’s friendly, proactive and client first way of working fits in perfectly with the way the team operates and I am confident that with his knowledge and expertise we now have an even stronger team in place to provide the full range of property services to our clients.
“The start of the new year has seen a further increase in demand for all types of commercial property in the region and so Taylor has joined us at a very exciting time.”
Loughborough University spinout closes seed investment round to take nanotech solution to the drinks industry
Loughborough University spinout Figura Analytics has successfully closed a seed funding round, led by a syndicate of angel investors, to bring its nanopore technology to the drinks market this year.
Taking equity in the high potential start up, in return for cash and know-how, the high-net-worth ‘angel’ individuals join SFC Capital in backing Figura to enable drinks manufacturers to rapidly and accurately detect abnormalities and contaminants through the production process, saving them time and money.
Founded in 2021 by Chemistry researchers Dr Mark Platt and PhD graduate Dr Rhush Maughi, Figura has been on a fast track since launching in LUinc., the University’s incubator on its science and enterprise park, LUSEP.
Following a highly successful first year building prototypes, testing and validating them in industry, Figura has just launched its new testing service for drinks manufacturers. This year will see the first commercial customers take delivery of this innovative hardware and software solution.
Jason Druker, investment manager at SFC, said: “We have been delighted with the progress that Figura has made since our initial investment in 2021. This follow-on investment will see the commercial launch of their technology to the drinks market, as well as the continued R&D that is required to ensure a successful long-term business.”
Nick Whitehurst, Figura CEO, said: “We are delighted to have received the backing of our existing and new investors as we bring our new analytical technology platform to market in 2023. The team have worked tirelessly over the last 12 months to validate and pilot our solution in industry and this investment is testament to their hard work and dedication.”
Professor Dan Parsons, pro vice chancellor, research and innovation at Loughborough, said: “Congratulations to the team and Figura on securing this investment for the commercial roll out of their innovations. The team continues to grow on its LUSEP base, creating a suite of new high quality skilled jobs in the region. This is great news for Figura, the University, the local economy, the drinks manufacturing sector and UK innovation more broadly. I share their excitement for the future.”
