< PreviousNominate yourself or another company here now www.eastmidlandsbusinesslink.co.uk/mag/bricks-2020 Over 150 property and construction professionals gathered at Trent Bridge County Cricket Ground for Business Link Magazine’s East Midlands Bricks Awards 2019, which saw professionals recognised for their achievements in the 2018-19 period. This year, our 2020 Bricks Awards aims to be bigger than ever. The East Midlands Bricks Awards, organised by East Midlands Business Link Magazine, is an independent awards and publicity programme, recognising development projects and people in commercial and public building across the region – from offices, industrial and residential, through to community projects such as leisure schemes and schools. The awards are split into 10 categories covering every aspect of the property sector and will celebrate the achievements and standards set by both companies and individuals. The Bricks Awards will be held on the 25th of March 2020, at the Trent Bridge Cricket Ground. The event begins at 4:30pm and continues until 7:30pm with time for networking included. Come and join us at the East Midlands Business Link Bricks 2020 10-11.qxp_Layout 1 03/02/2020 15:14 Page 1Categories and sponsors: We hope you will join us on 25th March 2020 at Nottingham's stunning Trent Bridge Cricket Ground, for this one-of-a-kind event. Most active agent Excellence in design Deal of the year Developer of the year Residential scheme of the year Commercial scheme of the year Architects of the year Sustainable development of the year Contractor of the year Last years’ awards sold out in advance and saw 150 professionals from the construction, development and property sectors in the region attend the ceremony. Overall Winner Tickets available www.eventbrite.com/e/east-midlands-bricks-awards-2020-tickets-84605225507 Responsible Business 10-11.qxp_Layout 1 03/02/2020 15:14 Page 212 East Midlands Business Link www.eastmidlandsbusinesslink.co.uk 2020 BUSINESS PREDICTIONS James Pinchbeck Marketing Partner at Streets Chartered Accountants Whilst 2019 certainly was a year in which everyone seemed to be pre-occupied and consumed by Brexit, 2020 looks set to be one of renewed optimism, opportunity and an expectation of the out of ordinary. The outcome of a pre-Christmas election has helped to remove the sense of uncertainty and though still early days has helped to re-kindle business confidence. With many parliamentary constituencies, including those across the East Midlands, having elected for the first time a Conservative member of parliament we should expect to see the benefits of such representation and lobbying as their part of the party in power. In particular it would be reasonable to think that we might see heightened levels of public sector investment in the region in line with the Government's pledge to address economic imbalance and to improve economic prosperity. Hopefully such initiatives and investment will include a focus on addressing the workforce skills gap with much need funding for the region's Further Education sector, which was been subject to serious under funding for over a decade. In terms of business trends, we should expect, not least on the back of the recent devasting environmental disasters and increased lobbying etc, to see greater consumer pressure around the supply and development of more environmentally friendly products and services. Too, perhaps, we will continue to see changes in the way we all live our lives, with greater consideration to the choices we make and the impact we make on the environment. 2020 is likely to see for example a marked increase in the purchase of electric/hybrid cars. With regard to work it is likely that we will see continued challenges for employers balancing the benefits of embracing wellbeing and work life balance, along with changing ways of working with the needs of their own organisation. At the time of writing this the Chinese New Year, the 25th January is rapidly approaching. 2020 will be the Year of the Rat. According to Chinese superstition the rat is an animal which symbolises wealth and the beginning of a new day. Perhaps then this is sound justification to be upbeat in 2020. Looking ahead It’s that time of year, when East Midlands 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. While none of us possess a crystal ball, it is uncanny how accurate some of these forecasts have been over the years. 12-15.qxp_Layout 1 03/02/2020 16:06 Page 1www.eastmidlandsbusinesslink.co.uk East Midlands Business Link 13 2020 BUSINESS PREDICTIONS Annette Forster Group Marketing Director at Ibstock Plc As we look ahead to a new decade for the construction industry, it’s clear that one of the most important issues facing the sector is a widening skills gap .According to a report by the Federation of Master Builders (FMB), 22% of the industry’s workforce are over 50, with a further 15% in their 60s. So, with as many as 40% of construction professionals heading towards retirement over the next decade, it’s vitally important for businesses across the sector to commit to developing the talent of tomorrow. Whether that is investing in upskilling and training programmes for current staff, to the development of meaningful apprenticeships and graduate schemes, the onus is on the whole construction industry to be effectively harnessing the next generation of professionals. For architects, specifiers and manufacturers alike, it’s also important to keep updated with the latest housebuilding legislation. With the government pledging to build 300,000 new homes per year, demand for construction components such as brick is likely to remain buoyant. What’s more, changes to safety legislation, particularly as response to the Grenfell Tower Fire, will encourage architects and specifiers to ensure their projects – and the products used within it – are fully compliant. Sally Saunders Founding Partner at Provantage Corporate Finance I am cautiously optimistic for M and A activity in 2020. Some of the uncertainty has gone away with the recent election and the main drivers behind shareholders wanting to sell, such as age, remain a reason to sell. Companies are under pressure to evolve and grow in this rapidly changing, global economy. M&A is often the fastest route to navigate current and potential barriers to growth and proactively respond to evolving changes. At the same time, companies are divesting to unlock the required capital to make acquisitions and adding to this, private equity need to invest, creating all the components to a sustained level of M&A activity where prices seem to be holding up. There remains an active overseas buyer pool as an abundance of high-quality assets make the UK a desirable marketplace for acquisitions. Sectors of interest are in companies with recurring income such as IT, and Technology attracts a high level of interest. Threatening the upbeat feeling in the UK M&A market is the suggestion of abolishing Entrepreneurs Relief which allows a 10% capital gains tax rate compared to 20%. This was suggested by the Labour party, but since the election, it has been mentioned again by the Institute of Fiscal Studies think tank who suggested it would provide £2.4bn in taxes. This could result in a delay in shareholders selling as they recoup the lost gain by trading longer. Donald Ward Commercial Manager from metal, recycling and waste management specialist Ward Without doubt 2020 will be the year that people make a significant shift towards sustainability. The global climate crisis is really resonating with people thanks to the high-profile campaigns by climate activist Greta Thunberg, programmes from environmentalist and national treasure David Attenborough and international protests such as Extinction Rebellion. It is vital that we stop our collective reliance on finite natural resources in production, packaging and manufacturing and use local sources for food and supplies. We need to completely rethink our use of plastics, construction materials and look at how to develop a truly circular economic approach. We will see more sustainable materials like metal and glass, that can be used over and over again, being reintroduced. Increasing our recycling rates and continually innovating to turn waste materials such as food, wood and oils into renewable energy sources is also going to be essential to meet our Zero Carbon emissions targets. Household and commercial recycling rates will be significantly increased to fuel this demand. It is hoped the developments at British Steel will now secure jobs but the outlook for many steelworks remains uncertain. As a country we need to continue to support UK Steel production and protect UK manufacturing. Those businesses that don’t have strong eco credentials will suffer, the ability to demonstrate best practice in minimising waste to landfill and increasing recycling rates will be a factor in buying decisions, as businesses and consumers will want to be seen to be doing the right thing. 12-15.qxp_Layout 1 03/02/2020 16:06 Page 2Parry Leggett Independent Financial Adviser at George Square Financial Management The turbulent economic and political climate has produced some unique challenges for us at George Square Financial Management in making medium and long-term predictions for our clients. Perhaps surprisingly, in recent years, investment returns for clients have been relatively good, however, it would be a mistake for us to rest on our laurels – the coming months, and possibly years, we believe may well be bumpy. We have entered 2020 with major indices at an all-time high; consumer spending remains healthy and central banks are supportive. Although global manufacturing is weak, there are now signs of recovery. But, despite this positivity we need to be ready to change and adapt when circumstances dictate. Brexit is as good as done, but it is by no means clear where we will be in twelve months’ time, and what the ongoing years will hold for investors. We believe diversification is key for investors, coupled with investing in global economies. In this climate it is paramount that we take a comprehensive view of worldwide market conditions and not just focus on the local economy. There are risks on many fronts, which impact our financial markets, that we must stay alert to: The Chancellor has confirmed that the resulting negotiations with the EU will be good for some industries but not for others. Unfortunately, he failed to identify which was which. The ongoing trade dispute between the US and China is also hurting business sentiment, which has a knock-on effect on financial markets. It remains to be seen if or how the recent agreement reached between the two countries will improve global economies. Consumers and businesses in the UK are also likely to be affected by rising oil prices, caused by the heightened tensions between the US and Middle East, if prices continue to rise during 2020. Financial markets across the world will be closely watching the run up to the US presidential election in November. It is very likely that Donald Trump will be the Republican nomination, but it’s less certain who will have the Democrat vote. In the UK, an end to austerity will provide some support to the economy, but the uncertainty of the UK-EU negotiations is still there. The possibility of a disorderly Brexit may deter both internal and foreign investment. Mandy Watson Managing Director of Ambitions Personnel While we enter 2020 with a great deal of optimism and good intentions, we must consider several things that the year might bring. It sounds obvious, but the impact of Brexit continues to dominate boardroom discussions and it’s often the fact the labour market is just one of the many casualties of any form of economic uncertainty, so it remains to be seen the extent of the impact this might have. The newly elected Conservative government gives businesses a degree of ability to be able to pre-empt how 2020 will play out - but it's still impossible to measure the impact Brexit and the knock-on effect of these changes will have on employers. A trend throughout 2019 which we anticipate will only maintain or worsen within 2020 is a struggle to attract talent across the board as the candidate-driven market trend continues. Different industries are affected in different ways - reduced immigration from EEA countries, which forms an important part of the labour supply chain, has resulted in labour shortages for many industries - such as food production and manufacturing who require unskilled staff, often in high volumes. Whereas at the senior end of the market, economic uncertainty can see candidates less keen to make a move, placing job security over career progression. This understandable way of looking at things may lead to more employees seeking to progress within organisations where they are already working. Businesses need to shift focus to attraction over assessment, overhauling their recruitment processes to be more candidate centred and accessible. It's necessary for businesses to keep an eye on what their competitors are doing to avoid being left behind when it comes to recruiting. You should really be aware where you are looking for staff, for example, are you expecting them to come to you, or can you go to them? The opportunities that are afforded by social media make this very easy. Also, how are you looking for staff? Are you still pushing outdated job adverts full of jargon with unnecessary 'essentials' or are you offering brilliant perks like flexible working? Elements such as company culture also come into play as much as basic salary these days. Are you standing out amongst your competitors? If not, why not? 14 East Midlands Business Link www.eastmidlandsbusinesslink.co.uk 2020 BUSINESS PREDICTIONS 12-15.qxp_Layout 1 03/02/2020 16:06 Page 3Andrew McFarlane Holt MRICS FAAV Director at Wells McFarlane Like many, I will look back at 2019 as a year dogged by prolonged political uncertainty and with that an inevitable cautiousness within the UK property sector, both commercial and residential. As we look forward to 2020, I predict a very different picture will be painted over the next 12 months’, with this fuelled in the main by the December General Election producing a large majority government that promises to simply get things done. In the days that followed the General Election, Rightmove released its latest House Price Index and with that predicted an average 2% rise in residential property coming to market in 2020 as consumer confidence increases and stability is restored. With this I predict we will see an increase in residential properties coming to market and an increase of much needed housing stock for UK agents, as consumers go ahead with plans to move house and invest in property. The commercial property sector will paint a similar picture in 2020, I forecast a strong year as companies make bolder moves and plans that have perhaps been stalled during uncertain times will come into fruition. With this an increase in investment and activity within the commercial property sector. Similarly I envisage a strong year for housing development as councils and developers strive to meet government housing targets, with The Home Builders Federation stating almost 380,000 more homes are in the pipeline over the coming year, up on the 240,000 new homes built between 2018 and 2019 according to official government figures. And we cannot summarise without a mention on Brexit, I believe Britain leaving the European Union will not have the impact that so many within the media have predicted, I think as business leaders we will manage the inevitable change that will follow, rather than allowing the change to manage our business. And with a clearer political landscape, I feel very optimistic about 2020. Andrew Macmillan Employment partner, head of the Nottingham Gateley office and head of the national Employment & People Services group at Gateley Legal We are set for an interesting year in employment law as we start our first decade outside of the EU in almost 50 years! A Brexit-related challenge many employers will face relates to preparing for the impending restrictions on immigration. The exact details of the Government’s immigration system (due to be introduced January 2021) are yet to be finalised, meaning preparation at this stage is difficult. There is also concern over the UK’s future ability to attract workers from the EU, particularly for those businesses who rely heavily on this pool of low-skilled workers. Moving away from Brexit, some exciting employment cases are coming up this year with a focus on discrimination: Veganism - Although an Employment Tribunal in September 2019 held that ‘vegetarianism’ is not a protected philosophical belief, ‘ethical veganism’ is next to be considered. Transgender rights - Expect further debate around transgender rights following the ruling against researcher, Maya Forstater, who lost her job due to transphobic tweets. Sexual orientation and religion - Similarly, discussion around the competing protected characteristics, sexual orientation and religion is likely. An application has been made to the European Court of Human Rights regarding the case where Christian bakery owners refused to bake a cake with the words “Support Gay Marriage” for a gay customer. Paternity - Direct and indirect sex discrimination will be tested as the UK Supreme Court consider whether it was discriminatory not to pay two male employees enhanced shared paternity pay. www.eastmidlandsbusinesslink.co.uk East Midlands Business Link 15 2020 BUSINESS PREDICTIONS 12-15.qxp_Layout 1 03/02/2020 16:06 Page 416 East Midlands Business Link www.eastmidlandsbusinesslink.co.uk ENGINEERING SPOTLIGHT As the UK and its businesses face challenges of productivity, poor infrastructure, climate change and skills shortages, amongst others, engineers, as innovators, are called upon as problem solvers. The East Midlands holds a strong history as a hotbed for engineering and manufacturing. A variety of large and small firms are well established in the area, with Rolls-Royce, Toyota and Bombardier in Derby, perhaps representing the most famous examples of such organisations. The region also continues to attract big hitters like Talgo, the specialised rolling stock engineering company, which recently established a head office in Chesterfield with ambitions to create an Innovation Centre. The importance of manufacturing and engineering to the region has been emphasised with the formation of science and enterprise parks such as MIRA Technology Park, Europe’s largest automotive R&D cluster, and more recently where funding was secured in September for a new Digital Manufacturing Centre at Silverstone Park, led by high-performance engineering consultancy KW Special Projects, whose goal is to “create a hub of engineering innovation that sees the best and most creative minds working side by side to develop the technologies of tomorrow.” The centre will provide on-site access to digital manufacturing facilities including additive manufacturing technologies, develop new and high-value engineering opportunities, help over 100 SMEs, and is forecast to contribute £9 million gross value added to the region. Universities in the East Midlands have too invested in boosting engineering talent and supporting engineering firms. For instance Henry Brothers handed over Nottingham Trent University’s new £23 million engineering facility last year, and in 18 u engineering engineering The East Midlands holds a long tradition of engineering expertise, with large and small firms committing to the region and universities consistently investing to boost the industry. 16-19.qxp_Layout 1 04/02/2020 11:57 Page 1www.eastmidlandsbusinesslink.co.ukEast Midlands Business Link 17 © SHUTTERSTOCK.COM / CHAOSAMRAN_STUDIO ENGINEERING SPOTLIGHT 16-19.qxp_Layout 1 04/02/2020 11:57 Page 2July, the University of Derby, which already hosts the Institute for Innovation in Sustainable Engineering, unveiled a £1.4 million rail innovation centre. Meanwhile, boosting engineering in the space industry, the University of Leicester continues to work on Space Park Leicester in collaboration with local, national and international partners, to provide high-tech facilities for research, development and manufacturing. It is to host companies covering an end-to-end capability, from satellite design and engineering, through to downstream data and its applications. Engineering company, Omnidia is expected to be the first tenant at the new Space Park, bringing research and development projects to the UK and focusing on manufacturing, with innovative processes, and testing of spacecraft propulsion elements. Additionally, a new three-year project is being run by the University of Nottingham which will also support engineering in the region. ‘Driving Research & Innovation’ involves the Precision Manufacturing Centre, Chemistry Innovation Laboratory and Food Innovation Centre at the University and will provide support to 240 SMEs in Nottinghamshire and Derbyshire. While the project is available to SME businesses from all sectors, it includes a focus on food and drink, chemistry using businesses, and engineering and manufacturing. The project is aiming to help businesses improve their innovation culture, competitiveness and productivity through utilising the knowledge, skills and technology accessible through the University. While there is a lot to highlight and praise in the region, the skills gap remains a key point of concern in engineering across the UK, alongside the general failure to encourage young people into the variety of roles the industry holds. While 124,000 engineers and technicians with core engineering skills are needed annually in the UK, there is a 50,000 shortfall each year in engineering graduates to fill these roles and, according to the Institution of Engineering and Technology’s (IET) 2019 Skills and Demand in Industry report, sixty per cent of employers say that the recruitment of engineering staff with the right skills is anticipated to be the biggest barrier to business objectives over the next three years. In overcoming the skills gap eight-one per cent of firms believe that businesses must support the move from education and training into the workplace, yet just twenty-three per cent of employers are entering schools or attending career events to promote engineering careers to young people. Further, as fifty per cent of the roles on the Shortage Occupation List are based in engineering, more needs to be done to attract people to the profession, and better communication must be established with the education system if a sustainable talent pipeline is to be created - this goes all the way back to primary and secondary schools. While, according to the IET, there has been progress in © SHUTTERSTOCK.COM / GORODENKOFF 18 East Midlands Business Link www.eastmidlandsbusinesslink.co.uk 16-19.qxp_Layout 1 04/02/2020 11:58 Page 3improving the view children have of engineering, with children in 2019 less likely to describe engineering careers as messy or dirty in comparison to 2015, instead describing them as modern, professional and interesting, the number of children saying they enjoy STEM subjects has declined, while fifty-two per cent of 11-19 year olds “probably” or “definitely” don't want to become an engineer. Additionally, highlighting another problem in education, according to Engineering UK, though ninety-six per cent of teachers would recommend a career in engineering to students, less than a third of secondary school STEM teachers say they have a high level of knowledge of what engineers do, and the majority express a lack of confidence in giving students or children careers advice on the profession, showing a need for more professional development for teachers, and more direct interaction between engineers and schools. The need for quick and resilient digital infrastructure to support the future of engineering is also of concern as new digital technologies and processes enter the scene. How products are being engineered and designed is changing, with new technologies supporting human workers and creating new solutions humans have never thought of. With the adoption of the Internet of Things (IoT), one technology on the rise is digital twins. Used to create exact virtual replicas East Midlands Business Link 19 www.eastmidlandsbusinesslink.co.uk ENGINEERING SPOTLIGHT of something physical with algorithms and data, rather than materials, one can build virtually before using real resources, find design flaws, and engineers can see how their creation will perform in different circumstances. This also reduces the length of the development and production process. Generative design meanwhile is being used to assist engineers. Utilising AI software and cloud systems, design solutions are being created that humans couldn't envisage at any fast pace. In this process, engineers provide an algorithm with design parameters, and software will then navigate through possible combinations to create hundreds of design options, which the engineer can then explore the viability of. Utilised across a variety of industries, one instance of its use is in the automotive sector where the technology is being employed for light-weighting components. Additive manufacturing also continues to be useful to engineers and holds a key place in designing products, allowing for the speedy creation of prototypes. Many of the world’s largest manufacturers are investing in 3-D printing across the automotive, aerospace and medical industries, requiring more skilled engineers. Overall, the demand for engineers will continue to rise, particularly as the focus on process optimisation across design, production and the supply chain increases. This will see a greater need for high-end engineers, quality analysts and control specialists amongst other engineering experts. The rise of Industry 4.0 too is seeing a booming need for AI, automation and big data engineers. Moreover, growing numbers of sustainability projects are seeing engineers in high demand, with optimising resource use, light-weighting, energy conservation, waste reduction, electric vehicles and developing renewable energy sources and eco-friendly materials on the agenda. © SHUTTERSTOCK.COM / ND3000 16-19.qxp_Layout 1 04/02/2020 11:58 Page 4Next >