South Yorkshire Chambers call for Government action of ‘cost-of-doing-business’ crisis

Stuart Pearcey
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South Yorkshire Chambers call for Government action of ‘cost-of-doing-business’ crisis
In a joint statement the CEOs of Doncaster, Sheffield and Barnsley & Rotherham Chambers of Commerce say it’s a testament to the strength of our businesses in South Yorkshire that, despite the tough backdrop, many remain optimistic about their prospects for growth – but costs are continually driven upwards. In a letter to Government the CEOs say: “The major story is the relentless rise in the cost of doing business. The majority of businesses responding to our landmark survey, the QES, expect prices to rise in the next three months. Six in ten cited inflation as a major concern compared to four in ten just last quarter. “The ongoing rise in prices for raw materials and fuel explains some of this sentiment. But a hike in national insurance payments and the change to the energy bill cap were also on the horizon.  We saw some positive moves to address rising costs in the Spring Statement like the cut in fuel duty that will support our logistics sector. But it’s not too late to move further – introducing an energy cap for small businesses would broaden the range of companies receiving support. “Our survey shows that cost pressures can encourage some businesses to innovate.  But the bigger driver of innovation – which underpins the long-term health of our economy – are the changes businesses make to serve more customers and bigger markets. On this, government can make a big, positive step by awarding Doncaster as the home of the new Great British Railways HQ. South Yorkshire’s rail and logistics cluster has huge growth potential for our region and the UK. GBR would open up many new opportunities for business investment and industry collaboration.” Highlights from the South Yorkshire Quarterly Economic Survey:
  • The share of firms reporting growth in domestic sales fell from 46% to 38% but the greater number 47% saw no change. The share of firms reporting a decline in exports exceeded those reporting growth for the first time since Q1 2021.
  • South Yorkshire businesses continue to report a tight labour market. Businesses indicate strong intentions to hire but most who try experience recruitment difficulties (93%).
  • Pressure on finances are strongly evident: 21% of businesses report worsening cashflow this quarter, compared to 19% over the last three quarters. 61% of businesses expect prices to increase in the next three months, the highest proportion since the beginning of 2020.
  • Four out of five South Yorkshire businesses spent less than 10% of turnover on innovation costs in the last 12 months. Around 75% of South Yorkshire businesses predict that they will spend less than 10% of turnover on innovation in the next 12 months.

Industrial real estate developer plans for 417,570 sq ft scheme at Doncaster Sheffield Airport

Tess Egginton
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Industrial real estate developer plans for 417,570 sq ft scheme at Doncaster Sheffield Airport
Panattoni, the industrial real estate developer, is planning to develop one of the largest speculative logistics facilities in South Yorkshire. The development, called Panattoni Doncaster 420, will be a 417,570 sq ft facility at GatewayEast, Doncaster Sheffield Airport. Panattoni has acquired the 18.4-acre site, which has outline planning consent, from Peel Land and Property. Panattoni expects to start construction later this year with the intention of delivering the facility in Summer 2023. Panattoni Doncaster 420 is targeting BREEAM ‘Excellent’ and EPC ‘A’ ratings. Occupiers will also benefit from a range of standard sustainability features and green build options. Dan Burn, development director at Panattoni, said: “This well-located site with direct access to local, regional and global markets is a superb addition to our speculative development programme. “South Yorkshire is rapidly forging a reputation as one of the UK’s prime distribution locations. Record take up across Yorkshire in 2021 has resulted in the supply of units over 100,000 sq ft dipping to the lowest level ever seen.” Burbage Realty acted for Panattoni.

Inflationary pressures reach uncharted territory

Tess Egginton
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Inflationary pressures reach uncharted territory
The British Chambers of Commerce’s Quarterly Economic Survey (QES) for Q1 2022 – the independent survey of business sentiment and a leading indicator of UK GDP growth – shows inflationary pressures on firms reaching levels never previously recorded in its 33-year history. The survey of over 5,600 firms also revealed a continuing stagnation in the proportion of firms reporting increased domestic sales and investment, while cashflow weakened slightly in Q1. 42% of respondents overall reported increased domestic sales in Q1, down from 45% in Q4. 18% reported a decrease, up from 16% the previous quarter. 62% of firms expect their prices to rise in the next three months, which is another record high figure for this metric and an increase from 58% in Q4. Only 1% overall expect a decrease in their prices. For production & manufacturing firms, this rises to 75% and stands at 75% for retailers and wholesalers, 70% for construction firms, and 72% for transport and distribution firms. These are also the highest on record. When firms were asked what pressures they were facing to raise prices, from a list of factors, 92% of manufacturers cited raw materials, 56% cited other overheads (the majority of respondents comments related to energy costs and transport costs), 34% cited pay settlements, and 19% cited finance costs. When asked what was more of a concern to their business than three months ago, 77% of firms cited inflation which was the highest on record and a rise from 66% in Q4. The percentage citing interest rates as a concern also rose in the quarter. Nearly 1 in 3 (32%) reported interest rates as a concern, up from 27% in Q4. Indicators for both cash flow and investment have shown no sign of recovery since the start of the COVID-19 shutdown. For firms overall, 28% reported an increase to cash flow, a drop from 31% in Q4. 26% reported a decrease, up from 23% in Q4. Investment in plant, machinery, or equipment continued to stagnate, with 27% overall reporting an increase, while 58% reported no change, and 15% a decline. This metric remains largely unchanged since Q2 2021.
Suren Thiru, Head of Economics at the British Chambers of Commerce (BCC), said: “Our latest survey points to a solid first quarter for the UK economy, as the release of pent-up demand following the end of Plan B restrictions and reduced consumer concerns over Omicron helped support activity in the quarter. However, our figures also highlight the significant headwinds facing the UK economy. “Historically high price pressures suggests that the current inflationary surge will escalate significantly in the coming months. The reversal of the hospitality VAT cut, the higher energy price cap and soaring energy and commodity prices amid Russia’s invasion of Ukraine, should lift inflation well above 8% in the near term. “The continued sluggishness in cash flow is a key concern as it leaves firms more vulnerable to economic shocks, including the damaging impact of soaring energy bills, higher inflation, and tax increases. “The first quarter may be the high point for the UK economy with activity likely to stall in subsequent quarters as surging inflation, rising energy bills and higher taxes increasingly drags on activity. “Russia’s invasion of Ukraine has raised the risk of a renewed economic downturn by aggravating the financial squeeze on businesses and households and disrupting the supply of commodities to key sectors of the UK economy.”
Responding to the findings, Director General of the British Chambers of Commerce, Shevaun Haviland, said: “Our latest survey lays bare the huge financial stress that firms across the country are under. “The level of inflationary pressures has soared to record levels and we are now truly in uncharted territory. Firms cite cost increases coming at them from all angles, ranging from energy bills to raw material prices and the imminent rise in National Insurance. “We need to be absolutely clear: this cost of doing business crisis is squeezing firms’ finances, driving further increases in prices and directly fuelling the cost-of-living crisis. “The Spring Statement was a missed opportunity to ensure business have greater resilience to weather the uncertain and volatile times ahead. “The Government must provide urgent financial support, through the expansion of the energy bills rebate scheme, to include small firms and energy intensive businesses, and he must introduce an SME energy price cap to protect smaller firms from some of the price increases. “We also urge the Treasury to rethink and postpone the damaging National Insurance increase. A failure to act now will leave businesses with no option but to continue to raise prices – leading to more difficult months to come for both firms and households.”

British Chambers of Commerce DG to appear at business awards event

Stuart Pearcey
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British Chambers of Commerce DG to appear at business awards event
Director General of the British Chambers of Commerce Shevaun Havilland will be the guest of honour when the Hull & Humber Chamber of Commerce hosts the Northern Lincolnshire Business Awards 2022 at Grimsby Auditorium on 13th May. She became Director General of BCC at the end of April last year, having joined the organisation from the Cabinet Office where she led Business Partnerships. She joined the Government in 2016 and also ran the Inclusive Economy Partnership for HMG. Shevaun started her career in consultancy in London and New York. She then moved to the Walt Disney Company in strategic planning before joining Disneyland Paris, opening the second theme park. Shevaun then joined the agency world, running global accounts for Millward Brown, Mindshare and WPP. Following this, she became a partner in a start-up digital innovation agency and venture builder, Independents United, where she also became an Advisor for the Danson Foundation. Most recently, Shevaun was the New Ventures Director for Avado, building new businesses in Edtech and founding the Academy of Digital Business Leaders. Shevaun has a passion for business as a force for good. She is a social impact investor, sits on the Ventures Advisory Board of UnLtd, and is Trustee of Barefoot College International as well as a board member of Women of the World Foundation. She will be making a short address on the night, before presenting a Hull & Humber Chamber of Commerce Special Award.

Yorkshire insolvency expert warns of winding-up legislation changes

Michael Fisher
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Yorkshire insolvency expert warns of winding-up legislation changes
Eleanor Temple, chair of insolvency and restructuring trade body R3 in Yorkshire and a barrister at Kings Chambers in Leeds, is warning the region’s directors to seek advice if their business is distressed, following a change in the winding-up petition threshold on the 1st April. Companies can now face a winding-up petition for debts of £750, after temporary legislation which had previously set the winding up petition threshold at £10k expired on March 31st. Ms Temple is warning this could result in distressed businesses facing action from their creditors if they haven’t already come to an agreement about managing their debts. “Now, more than ever, it’s critical company directors seek advice if they’re worried about their businesses or concerned about their ability to pay staff, landlords or suppliers,” she said. “If they don’t, they could face the financial, operational and emotional effects of contesting winding-up petitions in court over a debt of £750.” Ms Temple continues: “Over the last two years we have seen a number of instances where creditors have recognised that that engagement leads to better outcomes then enforcement. “Many creditors appreciate the climate that businesses are operating in, and are willing to have a conversation about how and when they can be paid, but that needs to take place sooner rather than later. “Company directors need to have the conversation about the financial situation they’re in, what they owe and who they owe it to with an expert so they can develop a plan for settling their debts, before creditors resort to legal action to recoup what they are owed.” Restrictions preventing commercial landlords from issuing winding-up petitions against limited companies for unpaid rent during the pandemic also expired on March 26th. Ms Temple is urging businesses who are concerned about this to seek advice about their problems. “Rent is typically one of a business’ largest expenses – especially in the retail and service sectors, and many directors may have found the amount they owe has increased if the pandemic has affected their ability to trade,” she says. “It will be a while before the business environment returns to pre-pandemic levels, and companies will already have to face the prospect of increased fuel and energy costs affecting their bottom line and their cashflow levels, which will make balancing the books a lot harder without any kind of specialist help. “If you’re worried about your business’ financial position, or you’re having problems paying suppliers, taxes or staff – which is a clear sign your business is financially distressed – seek advice from a qualified source, someone who can outline the potential options open to you for resolving the situation your business is in. “We know how hard it is to talk about your concerns about your business, but doing so typically leads to better outcomes if it’s had earlier than later – and gives you more potential options and more time to take a decision than if you’d waited until the problem worsened.”

£250,000 digital transformation investment pays off as Conservatory Outlet back on track with production

Michael Fisher
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£250,000 digital transformation investment pays off as Conservatory Outlet back on track with production
Investing in a major digital transformation programme has helped one of the UK’s leading fabricators of windows, doors, home extensions and conservatory products to bounce back from global supply chain disruption and rising energy prices. Wakefield-based Conservatory Outlet, which supplies a 27-strong network of home improvement retailers across England and Scotland, is now back at 98.5% on time in full (OTIF) for the last four weeks and is aiming to build on this even further over the next six months. The company has had to manage increased lead times for material and unprecedented demand from customers, who have been benefitting from the massive surge in spending on homes and domestic office spaces. At the heart of the approach has been a £250,000 investment in creating a live tracking system in the factory, meaning that everyone in the business has real-time information on where a product is in the manufacturing process, starting from initial order right through to dispatch. Led by Group Head of IT Craig Schmidt, the digital transformation has also given it critical information on improved order planning, material utilisation and predictive maintenance on machines, reducing downtime in the process. “The whole team has worked tirelessly over the last six months to get production back to what we saw prior to Covid-19 with a stable supply chain and full control of the factory,” commented Michael Giscombe, Managing Director of Conservatory Outlet. “This has basically translated into lead times being brought back into what customers would normally expect, despite volumes increasing by 20% since March 2019.” He continued: “We had been looking at introducing more digitalisation to the shopfloor, but the pandemic accelerated how quickly we did this, and the live tracking manufacturing system has been a real gamechanger for the business, delivering efficiencies we didn’t deem possible six months ago. “Craig and his IT team have opened our eyes now and this will be the first of many steps along our digital transformation journey.” Whilst technology is playing an increasing role in production, Conservatory Outlet continues to be committed to developing its workforce and recruiting the talent of the future. The company, which recently achieved Investors in People for the first time, is putting all the office team through an intensive product training programme to allow them to better respond to any customer service or product related issues. A new training academy for attracting and developing future sales talent is also set to be launched shortly and will be rolled out across its network of retailers. Michael concluded: “There are so many fabricators out there worrying about the ‘next big thing’ that sometimes they forget the basics. It’s been a tough challenge over the past two years, but we can confidently say we have quality and reliability nailed on for our customers and we’re back to pre-pandemic levels of service, consistently. “A big thank you to our clients who have been patient during the initial disruption and worked with us to collectively get the right result for our sector.”

Advanced Manufacturing Park gears up for engineering technology exhibition

Stuart Pearcey
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Advanced Manufacturing Park gears up for engineering technology exhibition
The Nu-Tech Engineering & Technology Solutions Exhibition is coming to South Yorkshire’s Advanced Manufacturing Park (AMP) in collaboration with the Nuclear AMRC. The event, on May 25th this year, will bring together engineers, technologists, scientists and other key representatives from companies across the Park to meet exhibiting suppliers, see product demonstrations, discuss practical problem-solving, and find potential engineering and technology solutions through networking and supplier engagement. Partnering with the Nuclear AMRC and University of Sheffield AMRC, the exhibition will  create a forum for the promotion of technology transfer and innovation, while also allowing for the valuable sharing of best practice between multiple industry sectors.

Social Change UK certifies as a B Corporation

Tess Egginton
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Social Change UK certifies as a B Corporation
Social Change UK has been certified by B Lab, the not-for-profit behind the B Corp movement, as having met rigorous social and environmental standards which represent its commitment to goals outside of shareholder profit. The B Corp certification addresses the entirety of a business’s operations and covers five key impact areas of Governance, Workers, Community, Environment and Customers. The certification process is rigorous, with applicants required to reach a benchmark score of over 80 while providing evidence of socially and environmentally responsible practices relating to energy supplies, waste and water use, worker compensation, diversity, and corporate transparency. Social Change UK scored 109. Most businesses score between 40 and 100, with 80 points required to become certified. A score of over 100 is considered outstanding. The Lincoln-based agency is now part of a community of 4,600 businesses globally that have certified as B Corps. The B Corp community in the UK, representing a broad cross section of industries and sizes, comprises over 600 companies and include well-known brands such as The Guardian, innocent, Patagonia, The Body Shop, and organic food pioneers Abel & Cole. Social Change UK is only the SECOND business in Lincolnshire to certify as a B Corp and one of only 14 businesses in the East Midlands certified. Chris Turner, executive director of B Lab UK, said: “We are delighted to welcome Social Change UK to the B Corp community. This is a movement of companies who are committed to changing how business operates and believe business really can be a force for good. We know that Social Change UK are going to be a fantastic addition to the community and will continue driving the conversation forward.” He continued: “We are pleased to have B Corps of all shapes and sizes as part of our community – from start-ups to multinationals and across many different industries. Welcoming Social Change UK is an exciting moment because they have an opportunity to lead the way within the marketing and research industry. “We and the rest of the B Corp community are really pleased to support Social Change UK in paving the way for a new way of doing things. Their commitment to doing business differently will be an inspiration to others and will really help spread the idea that we can redefine success in business to be as much about people and the planet as it is about profit.” Kelly Evans, Chief Executive of Social Change UK, said: “We are thrilled to certify as a B Corp and join a community of businesses who we greatly admire and respect for pursuing purpose and putting people and the planet ahead of profit. The values and ethos of B Corp have always been at the core of our business since it was founded back in 2010. In our heart we have always been a B Corp – but I wanted to officially certify to prove that we are true to our word and we will always pursue purpose before profit.” Social Change UK is behind several successful social purpose driven campaigns in recent years. The agency scooped a prestigious Drum Social Purpose Award for their “Jiggle, Wiggle” sexual health campaign beating Dove, WWF, Mastercard, and the British Red Cross to the accolade back in 2019. Only a year later they were shortlisted for another Drum Social Purpose award for a breastfeeding campaign. The company has gone from strength to strength over the last three years becoming a leading behaviour change agency in the UK.

Council funds Chamber of Commerce to support York businesses

Tess Egginton
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Council funds Chamber of Commerce to support York businesses
City of York Council has provided £20,000 of funding to the West and North Yorkshire Chamber of Commerce to undertake a programme of York business support activity.
The funding comes from a £40,000 allocation made by the council as part of its 2021 to 2022 Budget to promote the benefits of business membership organisations working in York, and aid businesses’ recovery from the pandemic. West and North Yorkshire Chamber of Commerce will provide subsidised membership to York businesses, with the council’s funding covering 75% of the costs of the Chamber’s membership subscription for new members with less than 50 employees. This offer is only open to businesses who have not been a Chamber member within the previous 12 months. Businesses interested in accessing the subsidised membership offer can get in touch with the Chamber via info@wnychamber.co.uk. In addition, the Chamber will undertake research and engagement with a number of important sectors in York to improve the council’s understanding of:
  • businesses’ workforce development and recruitment needs
  • office space requirements
  • the impact of technological change on the economy
  • new international trade opportunities following the UK’s withdrawal from the European Union
A series of bespoke and dedicated reports will be produced for the council which will be used to inform future strategies and activities to support businesses across the city as York recovers from COVID-19. Laurence Beardmore, president, West and North Yorkshire Chamber of Commerce, said: “One of the key learnings to come from the COVID-19 crisis has been the importance of collaboration which has developed between City of York Council and the Chamber and the important role we both play in supporting local businesses. “We are therefore delighted to be able to help the wider York business community by providing subsidised membership to enable small firms to access the range of services to help them recover from the impact of the last 2 years. “Chamber services include debt recovery, free legal and HR support, access to networking opportunities and to connect with the wider membership across West and North Yorkshire along with a range of other services. We will also be working with the council to provide vital business intelligence which will help inform and shape policy interventions to the benefit of all across the city.” Councillor Andrew Waller, the council’s Executive member for Economy and Strategic Planning, said: “We are very excited for our forthcoming partnership with West and North Yorkshire Chamber of Commerce. “We’re aware of the various benefits businesses can have by being a part of a business membership organisation. The programme of activity proposed by the Chamber will support York businesses directly by allowing them to access the Chamber’s valuable membership offer and wide range of resources at a subsidised rate. “Not only this, the Chamber’s proposed programme of research and engagement will help us understand and identify future market trends as well as develop effective support solutions. It will aid us to comprehend the needs and expectations of York’s business community as we recover from the pandemic. “We look forward to a very fruitful collaboration with the West and North Yorkshire Chamber of Commerce, providing new opportunities for York’s businesses and enables the city’s economy to thrive.”

Council allocates £210k to boost York’s COVID-19 economic recovery

Tess Egginton
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Council allocates £210k to boost York’s COVID-19 economic recovery
York and North Yorkshire Growth Hub, Make it York and York BID are set to receive funding to deliver a range of initiatives to improve York’s post-pandemic economic recovery.
To date City of York Council has received a total of £7,789,802 of funding from Central Government under the Additional Restrictions Grant (ARG) scheme to support businesses severely impacted by COVID-19 restrictions. With £7,514,691 already spent on various initiatives to strengthen York’s economy, including £6,671,401 paid directly to local businesses as grant support, the council is keen to utilise the remaining funding to deliver additional business support activity in York. City of York Council will provide £120k of funding to York and North Yorkshire Growth Hub to deliver a wide-ranging programme of business support to assist businesses with their recovery from the pandemic, and to aid their resilience. A further £90k has been allocated evenly between Make it York and York BID to support the delivery of local projects designed to improve city centre footfall and boost trade. Both organisations play a key role in supporting a vibrant city centre and have been adversely affected by the pandemic. This funding will enable both organisations to deliver an exciting range of initiatives over 2022/23 that will boost the city centre’s economic recovery. Andrew Raby, manager of the York & North Yorkshire Growth Hub, said: “There will be a range of support offers thanks to this funding which will make a real difference to small and medium sized businesses in the city. “We’re delighted to be working in partnership with City of York Council to take this opportunity forward. The York & North Yorkshire Growth Hub is an experienced team, providing free and impartial business support, which is tailored around the needs of our region and this funding allows us to significantly increase that support. ” Sarah Loftus, Managing Director, Make It York, said: “Make it York are pleased to receive the ARG funding which will help support an Art Trail in York later this year. We will be working with partners to develop the trail and will unveil the plans over the coming months. This is a really exciting project and will be lots of fun for everyone.” Andrew Lowson, executive director, The York BID, said: “The York BID is pleased that it can support City of York Council by using government ARG money to help the recovery of the city centre post COVID. We have done this successfully in the past with our outdoor seating projects and we will ensure this funding is specifically used on projects this year to encourage footfall and benefit trade for our businesses.” Cllr Andrew Waller, the council’s Executive Member for Economy and Strategic Planning, said: “The ARG scheme has been a lifeline to local small businesses. The council has decided to allocate the last of the ARG funding to our partners – York and North Yorkshire Growth Hub, Make it York and York BID – who will deliver a wide range of support for additional business activities around the city. “We hope that this provides a welcomed boost to York businesses, whether that is through targeted programmes of business support or initiatives designed to increase footfall in the city centre and help businesses to flourish. “Previously, the ARG scheme funded the council’s very successful Business Growth Voucher Scheme that funded 434 projects to take place in York, connecting businesses wanting support with local providers of business support. In addition, the council also made direct payments to 116 businesses across York to provide them with financial aid during the rise of the omicron variant.”
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