< Previous20 East Midlands Business Link www.eastmidlandsbusinesslink.co.uk G F TOMLINSON The contractor, which has offices in Derby, Newark and Birmingham, closed the year with a £9m contribution to social value initiatives, created through its many projects undertaken during the year. Other social value highlights include recycling 98% of its construction waste materials and supporting 25 apprentices in their careers, through an extensive programme of on-the-job training, mentoring and funding of academic studies. G F Tomlinson is a partner of Scape - the UK’s leading public sector procurement authority - and has a place on the Scape Regional Construction framework. The contractor uses the Scape social value portal to track its social value contribution. A key highlight of its social value efforts included the delivery of its Local Communities Partnerships Programme, which the company launched in early 2021 in conjunction with Scape, as well as public sector-built environment consultancy Arc Partnership, and property, construction and infrastructure consultancy Perfect Circle. The Dragons Den-style initiative searched for a not-for-profit organisation to collaborate with to deliver an impactful community project on a pro bono basis. The selected charity was Treetops Hospice, which provides care in Derbyshire and Nottinghamshire, and G F Tomlinson provided essential maintenance to its estate, improved accessibility and created spaces for relaxation. In 2022, social value, its carbon zero target for 2030, being a responsible business and working with more partners - specifically in the West Midlands - are G F Tomlinson’s big focusses. Sustainability plays a major role in the contractor’s operations and last year it worked with local authority Amber Valley Borough Council on its Decarbonisation Scheme – helping the council towards its net carbon targets by installing a ground source heat pump at its offices in Ripley, Derbyshire. G F Tomlinson has also played an active role in the protection of wildlife. With guidance from The British Hedgehog Preservation Society, the contractor invested in bespoke fencing to create Hedgehog Highways through residential gardens and provided purpose-built hedgehog houses in and around its sites. It also donated hedgehog houses to Fairfield Prep School in Loughborough, where members of the G F Tomlinson team helped pupils assemble the habitats at their forest school, to support the students learning about hedgehogs’ winter hibernation. The contractor has made strides in its commitment to its team’s wellbeing in the last 12 months, now having 12 in- house, fully trained, mental health first aiders, based at the firm’s construction sites and in its offices. G F Tomlinson is also celebrating a year of successful project delivery in the East and West Midlands which have secured them an impressive six industry awards. The accolades include its flagship Nottingham Castle transformation project, which won Regeneration and Restoration Project of the Year at the East Midlands Property Awards, and Best Non-Residential Conversion at the LABC Building Excellence Awards (East Midlands). G F Tomlinson celebrates achievements in 2021 with £9m of social value generated Midlands contractor G F Tomlinson is celebrating its social value achievements in 2021 - an area the company sees of equal importance alongside its financial performance. 20-21.qxp_Layout 1 10/01/2022 10:23 Page 1www.eastmidlandsbusinesslink.co.uk East Midlands Business Link 21 G F TOMLINSON Its Tower Gardens Pavilion project with Scape, in Skegness, won Best Public or Community Building, and the Medical Technologies Innovation Facility (MTIF) for Nottingham Trent University as Best New Build, both at the LABC Building Excellence Awards (East Midlands). Tower Gardens also won the Integration & Collaborative Working category at the Constructing Excellence Awards (East Midlands). Due to the regional win, the project has been shortlisted for the National LABC Building Excellence Awards - with the winners being announced early this year - and shortlisted for the Greater Lincolnshire Construction and Property Awards in the Development Project of the Year (Under £5 million) category. In addition, G F Tomlinson was named as Responsible Business of the Year and Overall Winner at the East Midlands Business Link Bricks Awards, in recognition of its social value contribution to the communities within the East Midlands. This accolade has been crowned off recently by the company being recognised as a leader in corporate social responsibility (CSR), having achieved Gold Standard CSR Accreditation. 2021 also saw G F Tomlinson secure its place on Public Sector Frameworks including the Pagabo National Framework for Major Works, Crown Commercial Service’s Construction Works and Associated Services framework, NHS Shared Business Services Framework, The University of Birmingham Build Higher Framework and the Department for Education Framework in both the East and West Midlands. Chris Flint, Managing Director of G F Tomlinson, said: “As a contractor, we are committed to carrying out our business with a sense of responsibility for the environment, our customers, team members and the communities we operate in. “2021 has been a stellar year for us – both in terms of our appointment on and the delivery of impressive individual schemes and frameworks, but also our social value contribution to local communities and our environmental efforts, working towards our zero carbon target. “Ending last year with so many accolades and accreditations was really testament to the G F Tomlinson team who not only go above and beyond in their roles, but who share and convey our values. A big thank you to all our team members. “Now we start 2022 with optimism and new ideas and our focuses this year will be to continue working towards our zero carbon target, creating lasting impact through our social value efforts, continuing our commitment to being a responsible business - which we were recognised for last year - and to work with more partners across the midlands with a major growth area for us in the West Midlands. Here’s to a healthy and fruitful 2022.” G F Tomlinson delivered many notable projects throughout 2021 for both Public and Private clients, including schools across the Midlands, blue light work such as a new fire station at Worksop, University schemes in Lincoln and Nottingham as well as logistic warehousing and bespoke manufacturing facilities throughout the region. For more information on G F Tomlinson visit www.gftomlinson.co.uk 20-21.qxp_Layout 1 10/01/2022 10:23 Page 222 Business Link www.blmforum.net 2022 BUSINESS PREDICTIONS Looking ahead 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. Chris Hobson, director of policy and external affairs at East Midlands Chamber The watchword for 2022 is uncertainty as businesses grapple with a growing list of issues – ranging from capacity constraints and skills shortages to price rises and tightening cashflow – which are now putting a drag on what was previously looking like a strong economic recovery. Our latest Quarterly Economic Survey for Q4 2021 showed every single economic indicator had dipped compared to the previous quarter, so the warning lights are flashing. At the same time, there are positive signs for our region. The freeport at East Midlands Airport will be a magnet for international inward investment as we seek to establish ourselves at the centre of the UK’s post-Brexit global trading relationship, hopefully backed by new trade deals in the next 12 months. While we were deeply disappointed with the Government’s recent decision to descope the HS2 Eastern Leg, which we are concerned will place us at a structural disadvantage to the West of our country, there are opportunities in the Integrated Rail Plan that our region must maximise by working together. We should learn more about the East Midlands Development Corporation’s vision for key strategic sites, most notably the future of the Ratcliffe-on-Soar Power Station, which could thrust the region to the heart of the energy innovation that will guide the UK to a net zero future. The ESG (environmental, social and governance) agenda is rising in prominence for businesses and they should be ready to demonstrate how they’re embracing sustainability. This is one policy area where there is a clear direction but we will need our decision-makers to bring more certainty across the entire policy landscape over the next 12 months – giving businesses the confidence they need to invest and rebuild our economy. 22-25.qxp_Layout 1 10/01/2022 08:40 Page 1Amanda Dorel, regional director for the East Midlands at Lloyds Bank Businesses in the East Midlands have shown tremendous resilience throughout 2021. Our Business Barometer has indicated that confidence among local firms has grown steadily throughout the year, rising significantly from a negative reading at the start of the year to an impressive 42% in November. However, the events of the past few weeks have demonstrated that we cannot predict what is around the corner. Firms have had to react quickly to ongoing supply chain disruption, and continue to face uncertainty over the impact of the Omicron variant. Despite this, businesses will still be tentatively looking towards new opportunities in the new year; both at home, aided by more regional investment, and abroad, where new trade deals could open up wider prospects for East Midlands firms. We expect sustainability to be one of the key factors dictating the business agenda in 2022. Eco-friendly credentials are no longer a ‘nice to have’, consumers expect firms to be making the right call on their environmental impact, and the COP26 conference has increased this scrutiny even further. We will be working with businesses to help them become greener through schemes such as our Clean Growth Finance Initiative (CGFI), which provides discounted funding to help businesses transition to a lower carbon, more sustainable future. While there will be challenges in the months ahead, there will also be opportunities. Businesses must ensure they are ready to take advantage of these. www.blmforum.net Business Link 23 2022 BUSINESS PREDICTIONS Frankie Labbate, director at Box Property We will unfortunately see the fallout from the pandemic of the previous two years continue with the end to the rent moratorium looming large on the not- so-distant horizon. Rental values and lease arrangements have changed and will continue to have more emphasis on flexibility. Occupancy rates for commercial property will see some fluctuation with new models of hybrid working becoming the norm. And, the shift in retail habits towards online presents ongoing challenges for retailers. However, this also brings a real opportunity for local independent retailers and agile businesses. Areas of Nottingham such as Bridlesmith Gate and Exchange Arcade that have lacked footfall and failed to meet customer demand, now provide an opportunity for local landlords to reimagine the high street. There’s a real appetite to introduce a new demographic of customers, wanting a memorable retail experience and with the right blend of new brands, high street names and independent outlets. We predicted a few years ago that Hockley would flourish, with national operators appearing alongside successful independents and have worked hard to make that happen. Box Property has delivered on this prediction concluding new lettings to Pho, The Fat Hippo, The Bakehouse and various others. This will continue with Hockley extending further into Sneinton Market, creating a thriving hub of arts, indie retail and hospitality, with a similar vibe to Bristol’s Clifton Triangle and Bold Street in Liverpool. Hockley is thriving, and will remain so, but my tip is to watch out for Sneinton Market. I think it has the potential and the space, both indoor and outdoor, to replicate the successes of Hockley and I envisage positive momentum leading to national interest and lettings. Some of the larger chain restaurants will struggle with some high-profile administrations and closures as customers’ expectations have increased. They now want the authentic product and experience the smaller operators are delivering. It’s all about the small plates and street food served with authenticity, passion and pride. We have amazing independent operators in our city which would trade well in any major UK city. Broadmarsh will continue to be a hot potato but, one thing is for sure, the site provides the city with a once in a lifetime opportunity to DELIVER an environment and solution which is going to be highly influential in shaping the future success of the city centre’s retail and leisure market/shopping experience. 22-25.qxp_Layout 1 10/01/2022 08:40 Page 2Mark Richardson, partner at BB&J Commercial I expect 2022 to be much like 2021 in terms of activity. Demand for good quality commercial freeholds has been high, and I expect once again we will see competitive bidding where investments come to the market. On several occasions when instructed to sell we have been to ‘best bids’ not only on investments but also on land where a scarcity of opportunities has pushed prices upwards. I think business owners are looking to sit tight and ride out any remaining uncertainty, and as such I suspect that where freehold sales do come to the market then competition between potential purchasers will be even keener in 2022 than it has been this year. We have seen some evidence of office uptake increasing a little, and this may accelerate as and when there is more long-term certainty over economic performance. Surprisingly, demand for retail units has been reasonable, particularly for freehold units with potential for conversion of parts to residential. Hopefully this is a sign that there is gathering momentum behind a trend to repurpose our town and city centres. On a related front there does not seem to be any waning of developers’ appetite to secure funding for new build schemes, and encouragingly no seeming shortage of lenders looking to provide finance. This is only empirical evidence but based on our own activities and work this year it does give comfort that those who are willing to put their money on the line in terms of both borrowing and lending are feeling confident in what they are doing. 24 Business Link www.blmforum.net 2022 BUSINESS PREDICTIONS Mandy Watson, MD at Ambitions Personnel 2021 has been somewhat of a hangover from the events of 2020. 2022 will be slightly different, but we envisage staff and skills shortages will continue as the unpredictability carries on. The realities of the issues associated with this are yet to be really perceived by the public. As a result of labour shortages, some employers may have to reign in their product range or level of services. Consumers may well have to accept a more limited array of products to choose from than they are used to and less chance to enjoy perks like same day or next day deliveries. Fulfilment may well be an issue. Employers will also have to continue to increase offerings, although possibly not salaries as these have already been pushed to the limit of what firms are comfortable and able to pay. This is where working conditions and other benefits become important. Therefore, employer branding is more important than ever and those who are simply returning to a ‘business as usual’ model pre-pandemic might find themselves the ones not able to attract talent. As a recruitment operator in the East Midlands, we are already seeing businesses who don’t believe the labour market will become favourable again, they are turning to automation as the solution and we could expect to see a gradual reduction in the demand for low-skilled positions in the longer term. Ian Taylor, Managing Director of Henry Brothers Midlands The construction sector will be extremely busy in 2022 with the roll out of a large number of frameworks and infrastructure projects worth billions of pounds nationally. There’s the £3.7bn New Hospital Programme, the £7bn Department for Education Construction Framework, schemes for the Ministry of Justice and the Defence Infrastructure Organisation, plus the Government’s levelling up agenda to name just a few of the opportunities that are in the pipeline. Although we will have to wait to see if the levelling up delivers for the East Midlands in the way we were all hoping! This huge programme of work will bring greater strain on the demand for materials and labour, leading to a knock-on effect on pricing. Supply chain issues during 2021 led to volatility and this will continue in 2022 as demand increases for the delivery of construction projects and we see inflationary pressures. To avoid pricing volatility, I expect that many clients will procure their developments through frameworks, which have a reduced procurement time over the traditional tender route, and allow projects to get to site more quickly. I also expect that clients and contractors will start working together on schemes as early as possible in the process – working smarter to avoid some of the uncertainties that are likely to arise in 2022. Finally, I predict that there will be an increasing requirement to provide carbon neutral projects. We saw this grow in 2021 and the direction of travel is only one way. In time, all projects will need to show a carbon neutral performance. 22-25.qxp_Layout 1 10/01/2022 08:40 Page 3www.blmforum.net Business Link 25 2022 BUSINESS PREDICTIONS Sam Gadsby, Chief Commercial Officer at Clicky Media I believe that 2022 will see a further resurgence of digital- first adoption by businesses in response to the changing habits of customers. As we continue to live more of our lives online, consumer expectations and demands for a more seamless on and offline experience have never been higher. Businesses who reacted quickly in 2020 are now benefiting from an expedited level of digital maturity that would have otherwise taken many years to develop. This of course means greater competition with consumers having wider choice and buying freedom than ever before - making continued improvement of digital strategies in businesses all the more important. Announcements in 2021 from brands such as Facebook backing their ‘metaverse’ as the successor to the mobile internet suggests further evolution is on its way. Not only are we seeing new digital-native audiences now becoming a consistently larger percentage of buying customer numbers each year, but more traditional audiences and older generations are becoming online first consumers. 2021 saw the biggest increase in global advertising spend on record, the UK representing a notable percentage of this, with digital mediums the highest investment area. This will undoubtedly continue to grow, most notably investment in video content and promotion alongside immersive experiences as we crave an escape. In 2022 I envisage that whilst challenges will remain, as will the need for commercial adaptability, we will slowly see positive improvement in issues that have arisen from the combination of the pandemic and Brexit, across the likes of supply chain and pricing which has impeded the potential of many. I believe we’ll also see a slow down in ‘the great resignation’ as businesses set bolder ESG targets and invest in modernising approaches to remuneration, work life balance and the perks the present day workforce prioritise. There will continue to be skills shortages in many areas, so I hope to see a greater investment in training and development. Much like modern consumers, businesses will need to consider the conflict between convenience and conscience as both talent and customers will increasingly make decisions on ethics. Businesses will need to communicate more openly, with greater transparency and authenticity. Undoubtedly there will be a rocky road ahead, but I believe most businesses will have fully transitioned from a survive to a thrive mentality by the end of 2022. Andrew Mair, partner and head of BDO LLP in the East Midlands There’s little doubt that the last year continued to test the resilience of East Midlands businesses. Impacted by the global pandemic, regional businesses have also had to contend with the fall-out from Brexit – adapting how they operate to manage pressures on domestic and international supply chains, input price inflation, worker shortages and additional red tape and regulation. The emergence of a new variant has reminded us all that the pandemic is an ever-present threat. According to our latest Rethinking the Economy survey, leaders in the East Midlands fear supply chain disruption will affect their ability to offer the usual range of products and services. Nearly half of companies are planning to increase the prices of goods and services as a result. Despite these pressures, more than a quarter (27%) of companies in the region expect to see their revenues return to pre-pandemic levels within three to six months. That sense of optimism translates into plans for 2022, with nearly a quarter of East Midlands companies surveyed prioritising investment in international expansion. M&A opportunities have continued to rank highly in terms of investment priorities in 2021, and we expect this trend to continue into next year. It’s fair to say that the regional marketplace has rebounded from a turbulent 2020, with the uplift in activity leading to eager and cash-rich investors willing to pay over the odds for businesses, skewing valuations. Reassuringly, the fundamental market dynamics remain steadfast, with the appetite of corporate acquirers, private equity, alternative investors and open debt markets showing no signs of abating. Sectors to watch in 2022 are technology, biotech, pharmaceuticals, life sciences and telecoms. The good news for the East Midlands is the re-emergence of ‘forgotten’ sectors - automotive and aerospace, as well as hospitality and leisure. One thing is certain in 2022 and that’s the ongoing debate about the threat of climate change and the role of businesses. As a region that has a rich heritage in manufacturing and exports across the world, the East Midlands has a real part to play in the ESG movement – whether that’s by prioritising the green agenda or focusing on achieving net-zero emissions. The efforts to combat climate change will create real changes to business models, operational costs and regulation – and corporate strategies will have to evolve to manage the shifting landscape. 22-25.qxp_Layout 1 10/01/2022 08:40 Page 426 East Midlands Business Link www.eastmidlandsbusinesslink.co.uk TAX Customs declarations on imports from the EU – have you got to grips with changes from 1 January 2022? By James Pinchbeck, partner at Streets Chartered Accountants and director of SBC Global Alliance, the firm’s international association of professional advisory firms HMRC has warned businesses that customs declarations on imports from the EU will change once again at the start of 2022. Customs declarations From 1 January 2022, businesses will no longer be able to delay making import customs declarations under the Staged Customs Control rules that have applied during 2021. Most businesses will have to make declarations and pay relevant tariffs at the point of import. The tax authority says businesses should consider how they will make their declarations. They can either appoint an intermediary, such as a customs agent or submit the declarations themselves. Further advice is available via the Gov.uk website. Some businesses already have a ‘Simplified Declarations’ authorisation from HMRC that allows their goods to be released directly to a specified customs procedure without having to provide a full customs declaration at the point of release. Businesses that want to use Simplified Declarations will need authorisation to do so. It can take up to 60 calendar days to complete the checks needed for this and therefore a new application may not be authorised until late February or early March at the earliest. From 1 January 2022, businesses must use the correct country code for the country of origin and the country of dispatch when they complete their customs declaration. HMRC says that for EU countries, the individual country code of the relevant member state should be used. The EU country code must not be used and will be removed from HMRC’s systems. Border Controls Ports and other boarder locations will be required to control goods moving between Great Britain and the EU. This means that unless goods have a valid declaration and have received customs clearance, they will not be able to be released into circulation, and in most cases will not be able to leave the port. From 1 January 2022, goods may be directed to an Inland Border Facility for documentary or physical checks if these checks cannot be done at the border. It is important that those involved in transporting your goods are ready and understand how you intend to operate from January 2022. From the start of the year, you must also submit an ‘arrive’ export declaration if your goods are moving through one of the border locations that uses the arrived export process. If you do not follow the correct process from 1 January 2022, the new system will not permit your goods to leave the country and they will be turned away as they will not hold export clearance. If you use a service such as a courier or a freight forwarder to move your goods, you will need to check their terms and conditions about who will make the declarations and what other information they will need from you to do this. Postponed VAT Accounting If you are a VAT registered importer, you can continue to use Postponed VAT Accounting (PVA) on all customs declarations that require you to account for Import VAT, including supplementary declarations, except when HMRC have told you otherwise. With further changes to be introduced from July 2022, including requirements for full safety and security declarations for all imports and for Export Health Certificates, we strongly recommended that you seek advice from professional advisers and government agencies as the new changes are introduced. 26-27.qxp_Layout 1 10/01/2022 08:41 Page 126-27.qxp_Layout 1 10/01/2022 08:41 Page 228 East Midlands Business Link www.eastmidlandsbusinesslink.co.uk PRODUCTIVITY AND EFFICIENCY IN MANUFACTURING AUTOMATED The future is 28-31.qxp_Layout 1 10/01/2022 08:45 Page 1www.eastmidlandsbusinesslink.co.uk East Midlands Business Link 29 PRODUCTIVITY AND EFFICIENCY IN MANUFACTURING © /stock.adobe.com/I V iewfinder © /stock.adobe.com/xiaoliangge Automation is the future. There is no doubt this technology will slowly but steadily become part of our daily life, but when it comes to manufacturing and production this future might be closer than it seems. Talks about the introduction of automated technologies in manufacturing industries has been in the air for some time now, and companies have been investing more and more into the research and development of automation and trying to introduce Artificial Intelligence and robotics into their facilities. There is very little automated technologies can’t do, they are used in a very wide range of industries and can perform almost all tasks down the production line. There are many benefits and advantages that come with the use of automation; however, what has been driving the shift to these new technologies is how automation allows companies to increase their productivity and improve their production rate. Increasing production means increasing profits and it has been predicted the use of automated technologies will be implemented to the point they will contribute up to 15 trillion USD to global GDP by 2030. Another important quality that makes automation attractive for businesses and incredibly efficient is its consistency; machines are able to perform the same task at the same exact standard each time without any variation. This leads to a greater control over product quality and use of materials, resulting in better management time but also of resources and waste and, again, to higher profits. The potential of automation in the manufacturing industry is obvious, however in the last couple of years it has become particularly evident and switching to automated technologies might now be necessary. With the COVID-19 pandemic and all the The robots are not trying to take over, they are just here to help 30 Á 28-31.qxp_Layout 1 10/01/2022 08:45 Page 2Next >