Bradford industrial site let
Yorkshire & Humber business activity contracts for fourth month running, but downturn cools
The headline NatWest Yorkshire & Humber PMI® Business Activity Index – a seasonally adjusted index that measures the month-on-month change in the combined output of the region’s manufacturing and service sectors – signalled a fourth successive month of falling private sector output across the region.
However, having risen to 48.4 in November, from 45.2 in October, the headline index pointed to a contraction in activity that was modest and the weakest seen over the current sequence of decline. According to panel members, subdued demand conditions led output volumes to shrink, with the recent completion of projects and low client confidence reportedly restricting sales growth.
The seasonally adjusted New Business Index remained in sub-50.0 contraction territory in November, but rose to a four-month high, signalling a slower deterioration in demand for Yorkshire & Humber goods and services. Panellists commented on subdued market conditions, in part due to weaker client confidence.
As has been the case throughout 2023 to date, the trend in new business in Yorkshire & Humber was weaker than seen for the UK overall.
Private sector businesses across Yorkshire & Humber remained strongly optimistic towards the 12-month outlook for activity in November. Furthermore, the level of positive sentiment strengthened and was above the UK-wide average.
Expectations of greater new orders underpinned growth forecasts, in addition to new product launches and marketing initiatives.
The seasonally adjusted Employment Index moved back into expansion territory during November, posting above the 50.0 mark for the first time since August to signal renewed job creation across Yorkshire & Humber.
Increased workforce numbers locally contrasted with a fractional drop at the national level. Additional staff were recruited in line with business requirements, anecdotal evidence showed.
Companies in Yorkshire & Humber reported a further reduction in the amount of work pending completion midway through the fourth quarter. The decrease in outstanding business was sharp, despite easing from October’s near three-and-a-half-year record, and among the fastest seen of all 12 monitored parts of the UK. Operating expenses faced by private sector companies in Yorkshire & Humber rose in October amid reports of increased wage costs. That said, the rate of inflation slowed to a 39-month low. According to anecdotal evidence, pressures were alleviated by reductions in raw material prices.
Yorkshire & Humber firms’ operating expenses rose at a sharp and accelerated pace during November. According to respondents, greater insurance fees, wage pressures and supplier price increases led to steeper cost rises. The rate of inflation was the quickest in four months and broadly in line with that seen for the UK overall.
Private sector businesses in Yorkshire & Humber raised their prices charged once again in November, reflecting firms’ efforts to protect margins due to further increases in costs. The extent to which selling prices were raised was strong and the greatest since July.
That said, the local rate of inflation was among the weakest seen across the monitored parts of the UK, with only Wales, the North West and Northern Ireland posting slower rises.
Malcolm Buchanan, Chair of the NatWest North Regional Board, said: “The direction of travel was positive in November – the downturn in business activity once again lost momentum. However, Yorkshire & Humber continues to lag behind the UK as a whole, which moved back into growth territory for the first time since the summer.
“Disappointment on the output and demand front is being offset by positive movements in other areas, as businesses grew more optimistic towards the outlook for the next 12 months. Subsequently, we saw firms step back into hiring mode, as employment rose for the first time since August. It seems that companies do not expect the current weak patch to persist for long in 2024.”
Urban logistics scheme reaches practical completion at Leeds Valley Park
Second phase of Wakefield employment park complete
Property consultancy acquires auctioneer
Leeds-headquartered property consultancy, Eddisons, has become one of the country’s largest property auction houses by volume after acquiring SDL Property Auctions in a deal worth up to £3.25m. The acquisition will increase the number of auction lots offered annually by Eddisons to over 3,000.
Led by Managing Director Andrew Parker, Nottingham-based SDL Property Auctions sells residential and commercial properties across the UK, offering around 2,000 lots for sale annually. Employing 46 people, the firm is particularly active in the South East, Midlands and Scotland, complementing Eddisons’ property auction strengths in Yorkshire and the North West.
The acquisition builds on Eddisons’ auction business, which trades under the Pugh and Mark Jenkinson brands, with SDL Property Auctions set to integrate with the Eddisons team post-acquisition.
Eddisons managing partner Anthony Spencer said: “I am very pleased to welcome the SDL Property Auctions team to Eddisons. The acquisition significantly increases the scale of our auction business and I look forward to working with Andy and the team in the future.”
He added: “This is the fourth acquisition of the year for Eddisons and we continue to seek further opportunities for expansion across the UK.”
Andrew Parker, SDL Property Auctions Managing Director, said: “Through our team of talented people who place our clients’ interests at the forefront of everything we do, SDL Property Auctions has developed an award-winning reputation for selling property by auction.
“We are excited to be joining Eddisons and I look forward to working with like-minded individuals to develop the opportunities that the deal presents.”
2024 Business Predictions: Shakeel Adli, CEO, Zunikh
Zunikh currently has an office in Sheffield and as such is constantly monitoring the market in Yorkshire (and nationally given we operate nationwide). That said, we believe it is important to look at local market predictions in the context of the national (and even international) landscape. This is because it is often the case that micro market conditions are driven by global events.
Noting that 2023 has been a particularly unusual year following on from Covid and with the continuing war in Ukraine, we expect that 2024 will see markets begin to settle. We can already see inflation beginning to ease and with this we expect that interest rates will slowly come down. Within the property market we anticipate that this will ultimately result in private sales picking up as consumers recover from higher costs of living and the cost of borrowing comes down. This will be aided by likely reductions in the costs of building and building materials, again attributable to the easing of inflation which may bring the price of stock down in the short term. Markets like Sheffield and South Yorkshire should benefit from this and housing prices may start to increase fractionally as demand for stock grows.
We also anticipate that build-to-rent schemes will continue to be popular amongst institutional investors in places like Sheffield and in the region generally given the strength of the rental market, however yields may start to drop as more consumers return to the private sales.
Our outlook for 2024 is generally positive and we expect Sheffield and the surrounding region to reap the rewards of this in due course.
NHS hopes to have diagnostic centre in Hull, with Vinci Building creating it
HMRC cracks down on till fraud at restaurants and takeaways
Forgemasters clears audit hurdle ahead of expansion in nuclear industry
East Riding and Hull urged not to fall behind in embracing devolution
Company boss invests £1.5m in a new workspace, believing in an end to ‘work from home’
Polluter will always pay, says Government as it introduces unlimited fines
- Breach of permit conditions from sites that discharge into rivers and seas – for example from sewage treatment works and permitted storm overflows;
- Illegal discharges to water where there is no permit, such as in the event of agricultural pollution from slurry stores;
- Illegal waste offences, such as from illegal scrapyards or unpermitted waste management facilities;
- Permit breaches from manufacturing industries and power stations which contribute to air pollution.
“The threat of uncapped financial penalties should boost compliance with environmental laws – helping us provide stronger protection to the environment, communities and nature.”
Environment Secretary Steve Barclay said: “Polluters should be in no doubt that if they harm our precious habitats and waterways they will pay. “By lifting the cap on these sanctions, we are simultaneously toughening our enforcement tools and expanding where regulators can use them. These changes will deliver a proportionate punishment for operators that breach their permits and cause pollution.“Through the launch of the Water Restoration Fund, the money raised from penalties imposed on water companies will go towards restoring and protecting our waters. This is part of the increased investment, stronger regulation and tougher enforcement we are delivering through our Plan for Water.”
Pinc College doubles size of its facility at Dean Clough
Pinc College, which specialises in supporting neurodivergent young people in creative sector education, has doubled the size of its campus facilities at Dean Clough in Halifax, taking occupation of a 4,000 sq ft first floor studio at Dean Clough.
As an arts education social enterprise Pinc College delivers art, digital art, and complementary study programme pathways for 16-25 years olds. It provides an alternative approach for neurodivergent young people with additional support for high needs routes to wellbeing, attainment, sustained engagement, and employment.
Dean Clough is one of four campus locations in Yorkshire for Pinc which has 13 around the UK in total. The team select locations carefully with strict criteria for heritage sites of cultural interest that can inspire students. Other campus sites include Cartwright Hall in Bradford and Yorkshire Museum in York.
Lee Clough, Campus Lead at Pinc College, said: “We are pleased to be able to expand our facility at Dean Clough into an even more inspiring space for our students with glorious panoramic views and separate learning spaces to suit our learners’ individual needs.
“Many of our learners have had negative experiences of education before they come to us, but this isn’t about rescuing people, creativity is a vital 21st century skill and divergent thinking is the core ingredient. If you are neurodivergent then you are practically wired for that, with art and culture the most natural vehicle to develop it.
“Fundamentally, inclusion is about the value you have within your community, therefore it is important to us that our students go to college in places of cultural and historical importance. However, Jeremy and the team at Dean Clough have taken it a step further, they haven’t just got us in the building, they’ve put us front and centre. We feel a genuine sense of value and importance here.”
Jeremy Hall, Chairman and MD at Dean Clough Ltd, said: “We are thrilled to accommodate Pinc College with growth space at Dean Clough and it’s wonderful to have their students immersed in the Dean Clough community. Their facility is directly connected to our gallery spaces, and we encourage them to view the free exhibitions and studio programmes and make use of the fantastic breadth of amenities available at Dean Clough.
“Education and personal growth are inherent in the Dean Clough community where thought inspiring exhibitions, installations, theatre productions, wellbeing amenities and an ongoing cultural programme are an integral part of the Dean Clough offer. Indeed, Calderdale College also operates its Creative Arts with Contemporary Art and Design degree course here at Dean Clough.”
South Yorkshire launches new apprenticeship hub
- Information, advice and guidance services to apprentices, parents, and employers
- Help for businesses (SMEs in particular) to access technical talent across the region to tackle skills shortages
- Progression pathways and opportunities into and out of high-quality Level 2 and 3 apprenticeships
- Helping support the development of a public sector approach to apprenticeships, including flexi-job apprenticeships.
Ron’s free Christmas lunch returns to Leeds
A charity event providing free festive celebrations for Yorkshire’s lonely and vulnerable returned to Leeds this December amid the continued cost-of-living crisis.
First held in 2018, with a two-year hiatus due to the Covid-19 pandemic, Ron’s Christmas Lunch brought together more than 130 elderly members of the Yorkshire community to celebrate with a free Christmas lunch, disco and entertainment at the Marriot Hotel in Leeds.
In partnership with Age UK Leeds, the event was created by Mike Day whose late father, Ron, was active in supporting the region through fundraising and organising trips for elderly and lonely people in the community.
Mike, Head of Sales at Bibby Financial Services, said: “I’m really proud to continue my Dad’s legacy in this way. For many of those who attend, it’s the only festive celebration they will be invited to, so it makes a massive difference to their lives. Not only does the event provide an chance for them to celebrate Christmas, it also gives them an opportunity to meet new people and to bring them some joy during what can seem like the loneliest time of the year for many.”
Last year’s event raised a total of £7,300 through sponsorship and donations from individuals and businesses in Yorkshire, as well as match funding from BFS as part of its Compass initiative. This December, Mike has his sights set on an even higher amount to help with increased costs.
Mike added: “The support we receive from the community in Yorkshire and beyond is truly incredible, and enables us to provide everything from meals and drinks, to entertainment and transport. With the cost-of-living crisis and inflation remaining sky-high, the overheads of the event have inevitably increased so this year we’re targeting £10,000. We’re hugely thankful for any support individuals and businesses can offer, no matter how big or small.”
Lisa Burnett, Income Generation Director at Age UK Leeds said: “There are more than 30,000 people classified as lonely and vulnerable in Leeds and Christmas is often the most difficult time of year for this group. Ron’s Christmas Lunch is a fantastic event that brings together the local community to provide not only festive joy, but also a network for Yorkshire’s lonely and vulnerable. With the pressure people are under due to rising costs, this event is more important than ever in supporting those in need.”
Yorkshire & Humber manufacturers see strong picture as they approach 2024
Yorkshire & Humber manufacturers are seeing a strong picture as they end the year, with business confidence indicators showing promising signs of a more stable economic environment after the global and domestic uncertainty of the last few years.
However, while Make UK upgraded its growth forecast for manufacturing in 2023 to +0.8%, it is forecasting growth in 2024 of just +0.1%. This reflects the anaemic economic picture for the UK overall and weak growth in the Eurozone, which remains the UK’s biggest market.
The findings come in the Q4 Manufacturing Outlook survey published by Make UK and business advisory firm BDO. According to the survey, output in the Yorkshire & Humber is set to surge at the start of next year to a balance of +53% in Q1, which is substantially above the national average.
This is down to the growth in domestic orders, which are significantly ahead of export orders, reflecting the demand for steel and construction products as well as the ongoing strength of the region’s food and drink sector. The total order picture for the next quarter stands at +67%, which is very strong by historic standards and is resulting in similarly strong recruitment intentions as the demand for skills continues to increase.
Dawn Huntrod, Region Director for the North at Make UK, said: “After the economic and political shocks of the last few years manufacturers in the Yorkshire & Humber are beginning to see far greater stability and much better trading conditions.
“While one swallow doesn’t make a summer, hopefully the positive announcements in the Autumn Statement can at least allow them to plan with more certainty without having to constantly fight fires.”
Steve Talbot, Head of Manufacturing at BDO in Yorkshire, added: “Manufacturers across Yorkshire have been calling on the Government to provide targeted support to help stimulate growth and investment for some time, and it feels like some headway was made in last month’s Autumn Statement.
“Yorkshire firms are ending the year on a relatively stable footing with some certainty at least in the tax environment to support their long-term investments in the UK. The hope now is that the region will deliver on its recruitment and order intentions and continue to grow next year.”
Sheffield successful in funding application for Gleadless Valley Masterplan extension
South Yorkshire firm transforms storage warehouse into base to trial cancer-curing therapies
Council launches Storm Babet recovery grant scheme for SMEs
- an SME; and;
- have been trading at or from the property in West Lindsey at the point that the property was impacted by Storm Babet (19 October 2023 to 25 October 2023).
- directly impacted by Storm Babet – for instance the business suffered flood damage to the business premise; or;
- indirectly impacted by Storm Babet – for instance access to the business premise was severely restricted as a result of flooding, including no/highly restricted access for customers, suppliers or staff.
Cash boost for Keighley businesses
