JANUARY 2013 £3.50YORKSHIRE & LINCOLNSHIRE’S LEADING BUSINESS MAGAZINEwww.blmgroup.co.ukVOLUME 28ISSUE 1A NEWBEGINNINGWhat does the futurehold for our region?PRODUCTIVITY &EFFICIENCY Making manufacturingmore effectiveCORPORATEFINANCEBacking the big ideasCORPORATELAW Make sure you’re upto date01:Layout 1 20/12/12 12:41 Page 1PLANT/HAULAGE/AGGREGATES/EARTHWORKS:T: 01472 341499 E: info@brianplant.comSKIP HIRE/WASTE TRANSFER STATION: T: 01472 241342 E: waste@brianplant.comwww.brianplant.comSKIPS - HOUSEHOLD & COMMERCIALMINIS MIDIS BUILDERS & ROROFAST RELIABLE SERVICELICENSED WASTE TRANSFER STATION & TIPPING FACILITY02:Layout 1 19/12/12 12:50 Page 144EnergyThe recent publication of the Energy Bill should,it’s hoped, make things a lot clearer forbusinesses – especially in our region.47Recycling & Waste ManagementThe amount of business opportunitiesavailable within the recycling and wastemanagement sector should be obviousto everyone. The sheer amount ofinterest means our region is leading theway.Regulars4From the Editor5News8Taxation2013 - a time to grow byJames Pinchbeck,Marketing Partner, StreetsChartered Accountants9LettersReader’s letters andreplies44AutoLinkVauxhall have entered thecompact SUV market with theirsubstantial but classy take on the growingmarket for city-capable yet countryside-comfortable rides• Battling the winter blues50EventsWe take a look at business eventshappening around Yorkshire andLincolnshire52Classified53Appointments54And finally…Features10Commercial propertyWith reports of industrial estates and new businessunits being taken up with new tenants rolling in, it’s nosurprise to find our region at the forefront of this trend.14Employment LawNew guidelines on flexible working and the rise ofsocial media has brought more informality to theworkplace – but at what price?19Corporate FinanceTimes may feel lean for the majority of businesses atthe moment, but scratch the surface and there seem tobe myriad ways to apply for funding for a whole varietyof industries in our region. 22New Year PredictionsAn expert panel offer their vision on what 2013 has instore.25TrainingApprenticeships are becoming increasingly popular butbusinesses need to ensure they put their share of effortinto their success30ConferencingOur region’s conferences are regularly setting theagenda – and that’s great news for the local economy32LAMMAThe UK’s leading farm machinery equipment andservices show returns to the Newark Showground 33Supply Chain SoftwareAs the supply chain becomes more sophisticated,those companies that can make software work for themmost effectively have a vital competitive advantage34ManufacturingWith prices spiralling and customers requiring productsfaster than ever before, efficiency and productivityduring the manufacturing process is no longerdesirable but essentialEnvironmentalBusiness Link Environmental is your ultimate guide tothe expanding world of green business.42Environmental newsThe latest news from this fast-moving sectorContentsJanuary 20131014304403:Layout 1 20/12/12 09:47 Page 1The New Year always brings a sense of optimismshining through, and, as I sit writing these notes inthe pre-Christmas rush, here’s hoping January 2013is no different.It’d be foolish to deny that 2012 has beenanything but a slog for businesses in Yorkshire andLincolnshire. Talk of a triple-dip recession greetedus in December, and this most peculiar ofrecessions – which has seen a low insolvency rate combine with comatosegrowth – makes it seem like the economy is drifting along in some kind ofnetherworld.However, as usual, the businesses within our part of the world continueto inspire us. This issue, as is traditional, we invite leading names to offerup their opinions on what 2013 has in store for the economy in general andour region in particular. We also have our regular environmental section,which again focuses on a huge growth sector that has the potential tomake Yorkshire and Lincolnshire a world leader.To this end, you might have noticed that we’ve upgraded and revampedour news website at www.blmforum.net, which is helping you keep up todate with the latest business news in the gaps between issues.Whatever this year brings us – and let’s hope it’s some good news –we’ll continue to chronicle the achievements of those out there at thecoalface, the people who are putting in all the hours, often against all theodds, to get our region back to where it belongs. It might be a long road,but we all know we’ll get there in the end.Happy New Year!W S FisherEditorEditorSteve Fisher (s.fisher@blmgroup.co.uk)JournalistsSteve Williams (s.williams@blmgroup.co.uk)Mike Shields (m.shields@blmgroup.co.uk)Michael Fisher (m.fisher@blmgroup.co.uk)Editorial contactnewsdesk@blmgroup.co.ukTel: (01472) 310305 Fax: (01472) 310317Sales DirectorTeri Cooper (t.cooper@blmgroup.co.uk)AdvertisingTel: (01472) 310310Kim Collins (k.collins@blmgroup.co.uk)Kelly Robertson (k.robertson@blmgroup.co.uk)Ashley Spink (a.spink@blmgroup.co.uk)Accounts & SubscriptionsAngela Sharman, Dawn Cook, John DownesTel: (01472) 310301 Fax: (01472) 310311Design & ProductionGary Jorgensen, Mark Casson, Rachel GreenTel: (01472) 310304 Fax: (01472) 310314(studio@blmgroup.co.uk)E-Mail:yorks-lincs@blmgroup.co.ukWebsitewww.blmforum.netAddressHaychart Ltd, Armstrong House, Armstrong Street, Grimsby, N.E. Lincs., DN31 2QE.ISSN No:1462-2092All rights reserved. No part of this publication may bereproduced, transmitted, photocopied, recorded or otherwisewithout express permission of the copyright holder, for whichapplication should be addressed first to the publisher. Whileevery reasonable care is taken, neither the publisher nor itsparticipating agents accept liability for loss or damage toprints, colour transparencies, negatives or other material ofwhatever nature submitted to this publication. The viewsexpressed in this publication are not necessarily the views ofthose held by the publisher.This magazine is now fully recyclable. By recyclingmagazines, you can help reduce waste and add to the 5.5million tonnes of paper already recycled by the UK paperindustry each year. Before you recycle your magazine,please ensure you remove all plastic wrapping, free giftsand samples. If you are unable to participate in a recyclingscheme, then why not pass your magazine onto a localhospital or charity?The magazine that caresWE CARE because we want to leave our world a better place than wefound itBusiness Link believes that being socially and environmentally responsible is the key tomaintaining a flourishing business that our customers will be pleased to use and our staffwill be proud to be part of.Community-From a very local point of view, we strive to be a ‘good neighbour’. We alsoextend that into the much broader local community, through financial support of local causesand charities. Environment-Our actions extend to: conservation of energy and natural resources,minimisation of waste and ensuring our trading partners do likewise.From theEDITOR…Yorkshire-Lincolnshire-Business-Link @blmforumblmforum.netCOVER PHOTO: WWW.SHUTTERSTOCK.COM/TRAUDL04:Layout 1 20/12/12 12:15 Page 1Lincoln businessman calls for a levelplaying fieldA Lincoln businessman hascalled for a fairer, level playingfield for county manufacturersafter he was engaged in anexposé of the cash flowadvantages enjoyed byChinese manufacturers overtheir western competition.Terence O’Halloran ofO’Halloran FinancialManagement Services says, “Adecision by Sainsbury’s toextend its credit payment to UKsuppliers from thirty days to 75 days for settlement of their accounts afterdelivery of goods, combined with a Chinese manufacturer being paid 50%with order and 50% before the goods leave Chinese shores, exemplifies thearrogance and opportunism of the great and the good in our society.“Cash flow is the lifeblood of businesses and small businesses in particular but thiskind of preferential treatment which favours Chinese manufacturers is damaging and insome cases killing our own manufacturers.”Jobs boost for BarnsleyA manufacturing company expects to create aroundsixty new jobs in Barnsley as it moves to a huge state-of-the-art factory in the borough.Ellbee is transferring all of its operations at three sitesin Leeds to the Nexus 36 unit at Ashroyd Business Park,close to Junction 36 of the M1, within the next fourmonths. It is currently recruiting for an initial thirty postscreated by the relocation, which is being assisted byBarnsley Development Agency. Ashroyd BusinessPark is amongdevelopments along theM1 corridor making upSheffield City RegionEnterprise Zone, whereincentives are availableto encourage growthand investment bymodern manufacturingand technology basedfirms. Ellbee, which hasbeen established forover 65 years, has signed a fifteen-year lease for the Nexus 36 unit – a single-span, new-buildacross 205,000 square feet. Business Link 5www.blmforum.netLATEST NEWSAuthority gets £1.7 million to kick-start home-buildingNorth Lincolnshire Council has been awarded more than £1.7 millionthrough the New Homes Bonus scheme for helping to get Britain homebuilding.The New Homes Bonus is a grant paid by central government to help withhousing growth. Projects that will be supported by the New Homes Bonuswill create more than sixty homes, including ten refurbishments and ten forpeople with learning difficulties. Coun Liz Redfern, Leader of North Lincolnshire Council, says, “This isfantastic news for North Lincolnshire. The New Homes Bonus will enable thegrowth of housing to benefit the local community. Last year was the firststage of the housing project in North Lincolnshire and this round of fundingwill help us progress even more. We have some great projects planned for2013/14 and people will see the rewards of new developments.”Rixonway serves uprecord performanceRixonway Kitchens has announced record ordersand its busiest ever quarter as increasing new builddevelopments fuel demand in the sector. The Dewsbury business has seen itsoutput increase by 25% over the lastmonth, providing the business with arecord month and promptingRixonway to add an extra shift to itswork pattern and take on anadditional fourteen members ofstaff including five apprentices tohelp meet demand. Rixonway Chief Executive PaulRose says, “These figuresdemonstrate that following a slowstart to the year, largely due tothe economic situation anduncertainty surrounding thechanges in Social Housing finance,we are now seeing a significantincrease in order confirmations frommajor new contracts across the socialand affordable housing sector. “It remains a challenging economicclimate, but we’ve repositioned the business bylistening to our customers and responding to thechanging market conditions.”Scunthorpesteel andconstruction wholesalebusiness Fender Steel hasswitched its business banking toHSBC Commercial Bank as itprepares for growth. The company ison the lookout to open new depotsafter a period of consolidation. FenderSteel was founded in 1981 and thebusiness has grown from one with aturnover of £650,000 per year toover £8.3 million last year. Thecompany employs 35 peopleacross six sites, includingtwo in LincolnshireM2,the print ITservices company hasopened a new regionaloffice in Wakefield, at CalderBusiness Park. M2 is a nationalbusiness which has seensignificant growth and seesmaterial growth potential in vibrantcities such as Leeds, Sheffield,Derby, Leicester and Nottingham.The Company’s new Easternoffice will enhance its serviceand support to thesemetropolitans.05-07:Layout 1 19/12/12 12:49 Page 1SREG inspires Northern Paper Board to aimfor higher growthA high-growth freementoring service fromthe Skipton and RiponEnterprise Group hasinspired Northern PaperBoard to embark on anambitious developmentplan. With the help ofSREG, Northern PaperBoard is introducing newmanagement processesdesigned to take itsperformance from good to outstanding andtriple its turnover over the next three years.SREG has 35 mentors active in sectors suchas retail, manufacturing, professional services,industry, finance and construction. They havementored 66 local companies. Northern Paper Board began using SREG mentors in 2011, seeking help toovercome strategic and operational challenges and find ways to drive future growth, as well as manage dailybusiness demands.Managing director John Curran says, “The key asset we have gained from SREG mentoring is that ourperceptions of running a small business have been positively challenged – and changed for the better.”LATEST NEWS6Business Link www.blmforum.netKC Contact Centres on track with NetworkRail contract Network Rail has chosenKC Contact Centres, part ofthe KCOM Group, to run itsNational Helpline andCommercial PropertyHelpdesk for a five-yearperiod. The contract is worth£2 million and will create 30new jobs at the outsourcedcontact centre in ProspectStreet, Hull.KC Contact Centres will provide Network Rail with a 24 hour call handling service, dealingwith more than 180,000 enquiries each year about the day to day operations of the UK’srailway infrastructure. It was chosen from a shortlist of three outsourced contact centreproviders including Network Rail’s existing supplier.Head of KC Contact Centres Tony Jopling says, “Network Rail was looking for anoutsourcing partner that can handle the large volume of calls they receive withoutcompromising on service. We were able to demonstrate our ability to do this, and to provideinnovations and ways of working that continually improve both efficiency and the service wedeliver.”OPUN announces designsupport for local authoritiesOPUN, the Architecture Centre for the East Midlands,in partnership with East Midlands Councils, hasannounced its design support package for 2013-14.This will help all councils in the region access theseimportant, independent services at an affordable price.Through EMC, and at a cost of £3600, OPUN willprovide councils with an independent, bespoke designadvice service throughout the year, up to twodiscounted design review panel sessions for specificdevelopments and tailored training packages, includingfor Building for Life 12, the new national benchmark forwell-designed housing in England.Julie Tanner, OPUN’s Chief Executive, says,“Evidence shows that badly designed buildings andplaces often lead to social issues and further costimplications down the line for the taxpayer. Theresimply isn’t the money available to rectify these sortsof problems, and so localauthorities know theyhave to get schemesright first timeround.”SHE Knows to the rescue in First Aid trainingupheavalA Hull health and safety training provider is warning of the potential impact to businesses ofimpending changes in regulations covering first aid. From April, the Health and SafetyExecutive will no longer be responsible for the approval and monitoring of HSE approvedtraining organisations in the UK. Linda Crossland-Clarke, managing director of SHE Knows Health & Safety, says, “Thisrevocation means there will be no such thing as an HSE approved qualification, or an HSEapproved first aid training organisation. Instead, employers will be responsible for the selectionof training providers that offer training meeting the regulations.”SHE Knows Health & Safety is looking to support companies with the launch of its virtualreality simulation Mission Room training facility. This cutting-edge, transportable 360 degreefacility offers cost-effective, bespoke first aid training for learners in any type of theoreticalindustrial and business environment.RIBAEast Midlandsis seeking the bestexamples of new Britisharchitecture, with practicesbeing invited to enter projectsof architectural excellence inthe region for the 2013 RIBAAwards. Last year’s local winnerwas Caistor Arts & HeritageCentre, and as well as the RIBANational Awards, the 2013 Awardsprogramme includes the RIBAEast Midlands Awards forArchitecture 2013 and Regionalspecial awards. Eligibilitydetails and the entry formare available atwww.architecture.com/awards.05-07:Layout 1 19/12/12 12:49 Page 2Business Link 7www.blmforum.netLATEST NEWSBarnsley & Rotherham recognisedat National Chamber AwardsBarnsley & RotherhamChamber of Commercehas been recognised bythe national Chambermovement afterspearheading agroundbreakinglobbying campaignthroughout 2012. TheChamber wascommended in the MostEffective Campaigningcategory at the BritishChambers ofCommerce’s ChamberAwards.The Chamber washonoured for driving a year-round programme of campaigning andlobbying initiatives to promote an agenda of economic growth and jobcreation, working with Derbyshire & Nottinghamshire, Doncaster andSheffield Chambers. Andrew Denniff, Executive Director at Barnsley & Rotherham Chamber,says, “We are very proud that the tremendous success of our manifesto,the preceding conference and the ongoing lobbying campaign has beenrecognised by the national Chamber network in this way. This recognitionis a genuine reward for the hard work that we have put into our aim ofbeing the leading voice for businesses in Barnsley and Rotherham.”Point Engineering Groupannounces Gateway expansionA £1.2 million Point Engineering expansion will combine two of itsGateway companies’ production facilities and a satellite office tooperate from one 2.8 acre site on the Sutton Fields Industrial Estate,North Hull.The Point group of companies includes Point Engineering, PointFabrications, Gateway Chassis and Gateway Fabrications. The Gatewaycompanies are openking for production in January 2013.Site modification works and alterations to the new facility havecommenced and this work will prepare the 40,000 sq ft building for thewelding, fabrication and assembly processes used to manufacture therange of chassis products currently supplied and also provide muchneeded goods marshalling space. Gateway Fabrications will operatefrom the same site to offer design, welding & fabrication services forvarious new market sectors, including renewables.Funding for the expansion project is supported by HSBC and FinanceYorkshire.No sting in tale as Scorpion getsgo aheadA striking 14ft high steel scorpion will sit at the entrance to SheffieldForgemasters’ 64 acre site – built by the company’s own apprenticesand using recycled materials. Sheffield City Council has grantedplanning permission for the steel scorpion sculpture to sit at thenumber two gate entrance on Brightside Lane.The contemporary sculpture measures four metres high, two metreswide and six metres long and will feature a pair of grasping claws, anarrow, segmented tail in a characteristic forward curve over the back,ending with a sting.It was the brainchild of Forgemasters’ chief executive GrahamHoneyman and designed by public arts sculptor Robin Widdowsonfrom Gotham-D and involved guest artist Sara Beavan. It will be madeby a team of volunteer apprentices from Forgemasters, headed up bySteel Propeller project director Tony Lyons.21 apprentices have volunteered to work on the project which isexpected to take four months to complete and will be finished in Spring2013.05-07:Layout 1 19/12/12 12:49 Page 3TAXATION8Business Link www.blmforum.netDon’t forgetyou can now read Business Linkon thego!Digital Editions now available on iPad & iPhoneWWW.BLMFORUM.NETIdeal for those who spendtime away fromtheir office2013 - atime to growby James Pinchbeck, Marketing Partner,Streets Chartered AccountantsGiven there has been littleor no growth in the overalleconomy in the last few years,why should 2013 be a yearbusinesses look to grow? Withlittle prospect of an upturn todrive growth, increasedeconomic prosperity will haveto come from increased levelsof business activity.Businesses without anappetite for growth tend tostagnate, experience decliningprofitability and find it difficultto attract new customers andretain key staff. Such businesses often find funding investment achallenge. In extreme cases, such businesses can be subject toinsolvency and liquidation.In essence there are four ways a business can achievegrowth. Typically they are by selling more to existingcustomers, by selling to more customers, by selling newproducts to new markets and by improving the way in whichyou do business.In addition, growth could be achieved through a morestrategic, or tactical, approach. Such approaches perhapsaccelerate the growth strategy, or reduce the risk or quickeningthe pay back, especially for those operating in stagnant markets.Those with cash reserves, management flair or othercompetitive advantages are often better placed to exploit suchopportunities, be it a merger, acquisition or strategic alliance.Equally, it’s often the case businesses can achieve heightenedgrowth rates through divesting themselves of non-core activitieswhich frees up resources to focus on core business.Whatever your route to growth your accountant shouldundoubtedly be on hand to give commercial advice, challengeand support you along the way. In particular, their focus will bearound assessing and advising on risk and exposure,profitability and scalability, forecasting and planning. Inaddition, they will give advice on the tax implications andopportunities to capitalise on reliefs and planning strategies;together with advice on securing funding.Over the last few years, it’s been easy for many a business tomaintain a status quo, but without the prospect for an economicupturn to boost sales, it must now be down to business itself tocreate its own prosperity. Surely 2013 must be a year to kickstart your business.James Pinchbeck is Marketing Partner with StreetsChartered Accountants, a top 40 UK accountancy firm.Telephone 0845 880 0320, email info@streetsweb.co.uk or visitwww.streetsweb.co.uk.08:Layout 1 19/12/12 12:48 Page 1Business Link 9www.blmforum.netSomething to say? Write to: Business Link Magazine, Armstrong House, Armstrong Street, Grimsby, North East Lincolnshire DN31 2QE or email: letters@blmgroup.co.ukReaders’LETTERSReaders’LETTERSYouth clubDear Sir,I was intrigued to read the news on your websitethat the majority of businesses across Yorkshirefavour the reintroduction of a default retirement age.Maybe this will act as a wake up call to thegovernment if, as pointed out, almost a quarter ofbusinesses fear that without it, they are at greater riskof losing their best younger members of staff due to alack of promotion opportunities.At a time when businesses are under enoughpressure as it is, the last thing we need is to benervous about how we manage our staff. Thegovernment should take note.G JollingsLeedsThe longest daysDear Sir,Your recent article highlights the growing concern by financedirectors about the continued effect of bank lending policies andthe fact this is a year on from the first such survey is indeedworrying.As the survey shows 54% of finance directors now feel thatlending policies were driving up debtor days for SMEs, an increaseof 12% since the same question was posed twelve months ago.Until banks step up their lending then growth will continue toflatline – something the economy can ill afford.R StubbinsLincolnLe YorkshireDear Sir,North Yorkshire County Council, asone of the sponsors of the bid, isabsolutely delighted that the organisersof the Tour de France have agreed toinclude Yorkshire in the 2014 event.As one of the world’s premiersporting events, the Tour de Francebrings enormous international exposureand interest in its wake, and theinclusion of Yorkshire can only beexcellent news for the economy ofNorth Yorkshire, and its hugelyimportant tourism businesses.Councillor John WeighellNorthallertonInvest in the futureDear Sir,I am all in favour of the new Youth Contract. Its mix ofvoluntary work experience, sector-based workacademies, apprenticeships and wage incentives foremployers hiring young people should make a hugedifference.However, hardly any of the employers I’ve spoken toeven seem to know about what the Youth Contract canoffer. While it is being marketed regionally, surely it’stime for the Government to extend this to the rest of theUK.A MarshallLouth09:Layout 1 19/12/12 12:48 Page 1Next >