Manufacturing output volumes fall as cost pressures increase
Sentiment across the manufacturing sector fell at the fastest pace in over two years in January, according to the Confederation of British Industry’s (CBI) latest quarterly Industrial Trends Survey.
Manufacturing output volumes fell over the quarter to January, though less sharply than in the quarter to December. Output is expected to fall further in the three months to April.
The volume of total new orders decreased in the quarter to January, reflecting steep declines in both domestic and export orders, with the latter falling at the fastest pace since July 2020.
Over the next three months, manufacturers expect the volume of total new orders to fall at the fastest pace since the onset of the COVID pandemic in April 2020, with 79% of respondents citing the condition of order books as a factor likely to limit output over the next quarter (the highest share since July 2020).
Manufacturers reported increased cost pressures: growth in average costs accelerated in the quarter to January, compared with October, while expectations for growth in costs in the three months ahead rose to their strongest in over two years.
Domestic and export selling price inflation was muted in the three months to January, but both are expected to rise rapidly in the three months to April.
Investment intentions for the year ahead have deteriorated markedly across all categories. Manufacturers expect to reduce spending on buildings, plant & machinery, product & process innovation (which saw the weakest balance since 2009), and on training & retraining.
Manufacturers cited uncertainty about demand, inadequate net returns and access to internal finance as key factors constraining investment.
The outlook for hiring has also weakened. Manufacturing headcount fell slightly in the quarter to January, and manufacturers expect numbers to fall again in the quarter to April, and at the fastest pace since July 2020.
Ben Jones, Lead Economist, CBI, said: “Manufacturers have entered the New Year in a grim mood. Confidence has evaporated over the last three months as orders have dropped.
“A fall in domestic deliveries comes amid widespread concerns over the impact of the increase in National Insurance contributions, minimum wages and changes to employment law on firms’ operating costs. And a strong focus on managing operational expenditure is leading manufacturers to cut back their investment and hiring plans.
“Meanwhile, export prospects appear worse than at any time since the pandemic, reflecting a slowdown in overseas demand and reports of ongoing difficulties securing supply contracts with customers based in the EU.
“In comments to the survey, several firms noted concern that negative sentiment risks becoming self-fulfilling.
“The government can play a role in re-booting confidence by sending clear signals of intent on policies that could support the manufacturing sector, notably delivering an industrial strategy that helps the UK win the global race for growth, matching skills to economic needs, and accelerating our energy transition and resilience.”
Felicia joins charity on a year’s secondment from Wilkin Chapman
A senior lawyer from Wilkin Chapman joining charity Our Future and working with leaders across North East Lincolnshire to build a thriving future in the region.
Felicia Linch, a senior associate in the regulatory and public law department at Wilkin Chapman, has joined the team on a secondment for a year working on the first Our Future area, covering Grimsby and North East Lincolnshire.
As well as her experience working as a solicitor in Grimsby, Felicia has served as a governance advisor to several British Overseas Territories in the Caribbean under the sponsorship of the Foreign and Commonwealth Office. She has also worked as a director of transformation and a programme director in the Caribbean, Latin America, Africa and UK.
Felicia will be responsible for engaging leaders from every sector to design and build the civic infrastructure needed to secure long-term funding and support to help Grimsby prosper in future.
She said: “Since joining Wilkin Chapman, I have focused on economic, social and environmental sustainability. Our social sustainability is in our firm’s DNA, so we aligned our ESG Strategy to several UN Sustainable Development Goals, including the ambition to make cities and human settlements inclusive, safe, resilient and sustainable. This secondment is a natural extension of our sustainability commitment as a firm. I have been welcomed by the region’s community, especially in Grimsby, and I look forward to helping bring the vision to life.”
Wilkin Chapman is the leading law firm in Lincolnshire and East Yorkshire and its roots in the area go back more than 120 years. With well-established niche expertise in specialist services and sectors, it is a trusted law firm at the heart of the local community. The organisation shares Our Future’s belief that a thriving future can be built if everybody contributes to creating the places we love.
Chris Grocock, Senior Partner at Wilkin Chapman said: “Our law firm has grown with the communities in which it is based in Grimsby, Lincoln, Beverley and Louth. Actively playing our part to contribute to the wellbeing of those communities makes us stronger, more diverse and more successful. We are delighted to lend Felicia’s unique skills, talents and energy to help Our Future deliver positive change in Grimsby and the surrounding area in the next 12 months.”
Survey reveals extent of crime against South Yorkshire businesses
Shoplifting, assault, fraud, and blackmail are blighting more than 40% of South Yorkshire firms, and have experienced financial loss as a direct result of crime, according to the findings of a recent poll.
A survey of 300 companies conducted by the region’s chambers of commerce covering Doncaster, Sheffield, Barnsley & Rotherham highlights how frequently firms in South Yorkshire are targeted by illegal activities.
Cybercrime was cited as the most commonly encountered offence here, with more than a quarter of respondents indicating that they have been victims of it in the past twelve months. Yet despite this prevalence, very few businesses in the region know about the support that is available right on their doorstep to help protect themselves from — cybercrime. For instance, only 34% are aware of the Action Fraud website and even less (8%) are aware of the North East Business Resilience Centre.
Theft from motor vehicles and burglary emerged as the next most widespread offenses, affecting 26% and 22% of South Yorkshire firms respectively. As for the impact that business crime has on the region overall, 2 out of 5 survey respondents indicated that they have suffered both financial loss and disruption as a result of illegal activity, while around a quarter of them reported a negative impact on customer wellbeing.
Chief Execs for all three regional chambers of commerce issued the following joint statement: “These results will enable us, as well as our strategic partners, to better understand the scale of the problem when it comes to business crime in South Yorkshire and it’s clear that there is a lot of work to be done here. In particular, there is an obvious need to crack down on burglaries and vehicle theft — which are causing disruption and financial loss throughout the region — as well as to signpost firms to the support that is available to help them deal with cybercrime.
“However, while the prevalence of this illegal activity is itself a problem, we are also alarmed to learn that only 58% of firms are reporting it with any degree of consistency. Indeed, two fifths of businesses told us that they do not always report a crime when they have been targeted by it, and 20% said that they have never once done so.
“The reasons cited for such inaction on their part range from them not believing that they will be taken seriously, to them simply having had negative experiences in the past. On a related note, only 30% of our survey respondents expressed that they have been at all satisfied with the response to any reports that they have filed in the past which, suffice it to say, is a very concerning statistic.
“For us to have a truly business friendly environment here in South Yorkshire — and one that is conducive to economic growth — these issues must be urgently addressed. After all, our businesses need to feel assured that the region does indeed have their best interests at heart and that somebody is fighting in their corner here; especially if we ever hope to improve the number of firms who are willing to give back by employing ex-offenders or sitting on prison employment boards.”
South Yorkshire’s Mayor and Police and Crime Commissioner Oliver Coppard said: “I am working with South Yorkshire Police, experts and communities across South Yorkshire to develop my first Police and Crime Plan, setting out our policing priorities for the next five years. This type of in-depth, detailed feedback will help shape that Plan.
Groundbreaking event highlights benefits of employing SEND workers
Employers are being invited to find out about the benefits of hiring people with special educational needs and disabilities at a ground-breaking event in Lincoln in March.
The Greater Lincolnshire LEP’s Careers Hub is to stage its first-ever SEND-focused event for employers during Neurodiversity Week on Wednesday 19th March 2025 at the EPIC Centre on the Lincolnshire Showground.
It’s called Innovate and Include: Harnessing SEND Talent and aims to help business owners to understand the benefits of recruiting people with special educational needs and disabilities and how targeted recruitment can help fill skills gaps and drive innovation.
This event is being supported by Talentino Careers and will appeal to business owners and managers, HR professionals, educators and school administrators, and anyone interested in inclusive recruitment practices.
Alex Nightingale, Operational Hub Lead at the Greater Lincolnshire Local Enterprise Partnership, said: “By attending the event employers will not only enhance their recruitment strategies but also learn how to effectively collaborate with schools, including those that support pupils with additional needs and disabilities,” said
“This can help businesses build a diverse talent pipeline, foster community relations and demonstrate a strong commitment to social responsibility. Investing in an inclusive approach to recruitment and educational support is a powerful way to drive innovation and create a more equitable workplace.”
Kirstie Payne from energy business Sureserve said: “Our collaborative work with SEND schools has enabled us to carve out a model that suits our business needs and helps individual pupils flourish in the world of work.
“Quite aside from the overwhelming feel-good factor, each activity we’ve engaged with has helped fulfil our talent pipeline, support our corporate social responsibility ambitions and further educate our teams on matters relating to equality, diversity and inclusion.
“Our company is incredibly proud to be part of such an inclusive and supportive partnership model.”
Council offers SMEs access to pool of graduate talent
Businesses in West Yorkshire will be able to recruit from a talent pool of hundreds of professionally-trained graduates under a new scheme just launched by regional mayor Tracy Brabin.
The Graduates West Yorkshire scheme is the first of its kind for the region, and will see up to a thousand graduates undergo rigorous employability training, to prepare them for jobs in the regional economy.
The graduates will then be matched with small and medium-sized businesses in the region, progressing on to interviews, six-month work placements and, in some cases, permanent employment.
More than 100 graduates have completed the award-winning development courses so far, which are delivered by higher education careers consultancy Gradconsult.
The Mayor is now encouraging SMEs to register their interest for the free graduate scheme. Firms that apply will receive wrap-around support with the recruitment and retention of a graduate that is right for their business.
She said: “Here in West Yorkshire we have seven leading universities producing thousands of talented graduates every year, alongside thousands of local businesses that are crying out for skilled workers.
“Yet the path from university to employment isn’t always clear, with young people too often feeling that they lack the real-world transferable skills they need to be an asset to a business.
“With this new grad scheme, we’ll ensure that our small and medium-sized firms can access the reliable talent they need, by equipping our graduates with the skills they need to contribute to a stronger, brighter region.”
Mandy Ridyard, Business Advisor to the Mayor of West Yorkshire, said: “This graduate scheme is a direct result of our conversations with businesses, who tell us they need better access to talent.
“This scheme is free to our SMEs that have a compelling entry-level offer, but who are struggling to compete with the big grad schemes of multinational companies. Joining the dots between our businesses and talented graduates from our universities can help drive growth, and is a great example of devolution in action.”
Yorkshire chocolatier gobbled up by food group
Bramble Foods Group, a supplier of branded ambient foods, has acquired Whitakers Chocolates, Yorkshire’s renowned chocolatiers since 1889.
This strategic move strengthens the Bramble Foods portfolio, uniting two family-owned brands.
Whitakers Chocolates has been at the heart of British chocolate-making for 135 years, crafting luxurious confectionery for retail, private label, and food service markets. The acquisition builds on a trusted working relationship spanning 17 years, during which Whitakers has been a key supplier to Bramble Foods Group.
Tony Foster, Managing Director of Bramble Foods, said: “We are delighted to welcome Whitakers Chocolates to the Bramble Foods Group and look forward to working with William and his team to further develop the business.
“Whitakers is a well-run business with a long history of producing excellent products, this coupled with a broad customer base and dedicated team of employees attracted us to the business. As a family, Whitakers is our longest standing supplier having worked together for over 40 years.”
Founded in 2008 by brothers Nigel and Tony Foster, alongside Chris Neville and Ken Osborne, from its Market Harborough headquarters Bramble Foods produces a wide range of premium products, including its largest category confectionery, traditional cakes, award-winning preserves, and chutneys, while supporting local employment and suppliers.
William Whitaker, Managing Director of Whitakers Chocolates, said: “As a fourth-generation member of the Whitaker family, chocolate has been at the very heart of my life for as long as I can remember.
“I am delighted that Whitakers Chocolates have joined the Bramble Foods Group as it is a wonderful opportunity to share our knowledge and invest for the future together. Whilst I will always carry the immense pride and heritage we’ve built over 135 years, I recognise that now is the right time to pass on our cherished traditions to a company that can develop the business further.”
The Whitakers Chocolates management team, led by William Whitaker, will remain in place.
Bramble Foods was backed by LDC, the private equity investor which is part of Lloyds Banking Group, in 2022 and since then LDC has supported Tony and the wider management team as they deliver their organic and acquisitive growth strategy.
Doncaster bid consultancy acquired by Manchester firm
Bespoke Bids, a Manchester provider of bid management consultancy services, has acquired Doncaster-based Carley Consult, an award-winning bid consultancy specialising in education, employability and justice.
This strategic acquisition marks a significant step in Bespoke Bids’ journey to becoming the largest bid management consultancy in the UK.
Leon Bright, Managing Director of Bespoke Bids, said: “This is an incredibly exciting milestone for Bespoke Bids. Carley Consult has a fantastic reputation in the education sector, and their expertise perfectly complements our existing capabilities.
“By uniting our teams, we can expand our reach, refine our processes, and help more clients achieve outstanding results. We’re extremely grateful to Jim Carley for his leadership and the outstanding business he has built over 17 years.”
Outgoing Managing Director of Carley Consult, Jim Carley said: “It’s been an honour to lead Carley Consult and see the company grow over the last 17 years. I’m confident that under the Bespoke Bids leadership, this will create new opportunities for our clients and team members. I look forward to seeing the combined company flourish.”
The integration of the two firms will be phased over the next six months.
ABP appoints Head of Engineering for Humber region
Brad Crumbleholme has been appointed as ABP’s Head of Engineering & Asset Management for the Humber Region.
Brad has been supporting the team on the Humber on an interim basis for several months in addition to his current accountabilities as Head of Engineering & Asset Management across Wales & Short Sea Ports and leading the ABP wide Energy Project.
He said: “I am excited to take on this new role and to be working with the Humber team in a permanent capacity. We have great opportunities ahead and having got to know the team here it is clear that we are well positioned to drive Continuous Improvements to the benefit of our customers.”
Brad started at ABP in 2018 and reshaped the W&SSP Engineering function, its people and processes.
He spent 10 years at Peel Ports covering the Mersey Division, and before that 10 years working in manufacturing for a global stainless steel manufacturer. Brad’s heavy engineering career started in precision engineering where he was an apprentice toolmaker.
He will retain oversight of Engineering and Asset Management in W&SSP until a replacement is found. He will report directly to Regional Director for the Humber ports Andrew Dawes, and will be part of the leadership team on the Humber with a key focus on continuous improvement as part of Keeping Britain Trading and Enabling the Energy Transition.
Mr Dawes said: “Brad has done an excellent interim job supporting the engineering teams here and we look forward to the opportunity the role will give him to help shape the engineering function and the wider ABP business. His work is a vital component for us to keep Britain trading and help deliver with our energy transition internally.”
Millions face £100 fine for late filing of tax returns
More than three million people are running the risk of a £100 for failing to file their 2023 to 2024 tax return before the deadline of January 31st.
Myrtle Lloyd, HMRC’s Director General for Customer Services, said: “Time is running out for the millions still to file their Self Assessment tax return by 31 January. Help and support is available for those who have not yet started their return. Visit GOV.UK and search ‘Self Assessment’ to find out more.”
She emphasised the importance of including bank details as part of their tax return to ensure that if there is any repayment due, it can be done quickly and securely, adding that customers’ reasons for not paying their tax bill or arranging a payment plan by the deadline would be considered individually. While customers who provide HMRC with a reasonable excuse may avoid a penalty, those without reasonable excuse face will be issued with a penalty including:
- an initial £100 fixed penalty, which applies even if there is no tax to pay, or if the tax due is paid on time
- after 3 months, additional daily penalties of £10 per day, up to a maximum of £900
- after 6 months, a further penalty of 5% of the tax due or £300, whichever is greater
- after 12 months, another 5% or £300 charge, whichever is greater
Forgemasters’ lathe developments reach critical milestone in Germany
The first of 11 bespoke Vertical Turning Lathes being built for Sheffield Forgemasters’ new machining facility, has passed a milestone test with its German manufacturers ahead of shipping it to the UK.
Thew machines are being designed and built by WaldrichSiegen, and will be capable of working with pieces weighing up to 120 tonnes.
John Cocker, Recapitalisation Machine Tool Lead at Sheffield Forgemasters, said: “The completion of factory acceptance testing for our first new Vertical Turning Lathe is a critical milestone for Sheffield Forgemasters and essentially underpins our confidence in WaldrichSiegen to deliver the remaining machines for our recapitalisation programme.
“Despite the size of these machines, the VTL has the capability to work to the finest tolerances and deliver significantly improved efficiency gains.
“The machine has advanced probing technology that will improve our machining and inspection accuracies when machining large forgings and castings for the defence sector.
“The VTL underwent highly rigorous FAT procedures to ensure absolute operational accuracy before shipment to the UK and to see a machine of this scale and complexity, assembled and tested to such exacting standards, is a very exciting development for us, and for UK manufacturing.”
Sheffield Forgemasters’ new machine shop will cover 35,000m2, housing 21 new heavy-duty machine tools from Waldrich Siegen and nine large cranes to deliver crucial components for the UK defence programme. It will be the most advanced facility of its kind in Europe, providing highly-skilled jobs for decades to come and work has already started on a 21-acre plot of brownfield land in the Meadowhall district of Sheffield, which the company purchased last year to house the facility. Piling for that development is 70% complete.
