Manufacturing activity strengthens, but stock adequacy hits another record low
UK manufacturing output growth in the quarter to December accelerated to its fastest pace since July, according to the latest monthly CBI Industrial Trends Survey.
The survey of 258 manufacturing firms saw output increasing in 15 out of 17 sub-sectors, with growth being mostly driven by the food, drink & tobacco and motor vehicles & transport equipment sub-sectors.
Total order books in December were judged to be ‘above normal’ to a similar extent to last month’s record high, while export orders were rated as broadly ‘normal’.
However, manufacturers’ inventory positions deteriorated further in December, with stock adequacy of finished goods worsening to a new record-low position for the second month in a row.
Respondents also said they expect price pressures to remain acute in the next three months.
Anna Leach, CBI deputy chief economist, said: “UK manufacturing demand remains strong, and output accelerated to meet this demand in December. However, behind the scenes, firms are battling pressures on a number of fronts.
“Stock adequacy of finished goods worsened to an all-time low for the second month in a row, and continued expectations for sharp price growth are a further challenge for the sector.
“The spread of the Omicron variant will have been a blow to business confidence. However, firms will welcome the Government’s decision to move from isolation to testing as a method of controlling the virus without unduly impacting their ability to operate.”
Tom Crotty, group director at INEOS and chair of the CBI Manufacturing Council, said: “While it is positive that manufacturing activity has remained strong, we have also seen a further worsening in stock adequacy of finished goods. At a time of continuing global supply chain difficulties, labour shortages and material shortages, the government should seek longer-term solutions that promote growth and investment in UK manufacturing.
“On Covid-19, the government must offer clear guidance in good time for manufacturers to continue operating safely as the country grapples with the Omicron emergency.”
The Source urges South Yorks bosses to help Traineeship teens find their futures in 2022
A Sheffield charity is appealing to South Yorkshire businesses to give young people a chance to turn their lives around in the New Year after the devastating effect the epidemic had on their schooling .
The Source Skills Academy is a not-for-profit organisation which exists to get people into jobs and upskill the employed.
It has moved swiftly to expand its Traineeship programme, which has been successfully re-setting the futures of jobless 16-18s for over four years.
Over 18 weeks, its tutors help students prepare for work, building confidence, improving Maths and English skills, helping them gain qualifications and a professional attitude.
There will now be four courses a year but The Source needs local businesses to give Trainees work placements, a crucial, life-shaping element of the programme.
“Our Traineeships are even more vital now. Many teens have been badly affected by the pandemic. They lost time in the classroom and missed out on the customary work experience placements which help prepare them for employment. Without that, even the lowest rung of the career ladder is out of reach,” said Chloe Granger, Traineeships Delivery Team Manager.
“Our programme gives them the chance to make a new start but it’s vital we find our Trainees relevant, on-the-job work experience. It makes a huge difference to their confidence and communication skills. They develop a firmer idea of their career path, discover their worth and aim higher,” said Chloe.
Already a number of local businesses have answered the call. One of them is Vulcan Engineering at The South West Centre, Troutbeck Rd, Sheffield, one of the world’s leading mechanical and encapsulated seal manufacturers.
Founded in 1986, its products are used in everything from dialysis machines to swimming pools, water sewerage plants to oil refineries – and the household washing machine.
It employs 110 people in Sheffield and at its sister company in Minneapolis, which serves the North American market.
A number of its staff found their place in the company via the 1980s Youth Training Scheme for school-leavers.
One of them, Louise Ebdon, Group HR Executive Manager, commented: “Work experience gave me a career in a sector I would never have known about and the fact that Vulcan showed faith in me when I was young is the reason I love bringing people into the business and developing them, an important part of my HR role.”.
“Vulcan is currently training eight apprentices. It’s part of the company’s culture to provide people with the opportunity to prove themselves and that’s why we have signed up to The Source Academy’s Traineeship programme,” said Louise. “We really see the value in this initiative.”
Vulcan’s first work placement Trainee is Rotherham 16-year-old Adil Ali. He is working two days a week, gaining mentoring and training in warehousing, assembly and picking and packing.
Trainees have 110 hours of work experience with local employers over 10 weeks.
Quality placements in customer service, warehousing and admin are being sought with companies across the SCR.
Employers get support from The Source and companies could just find their perfect new apprentice, says Chloe: “Bosses can get to know trainees and evaluate how they would fit into their business long-term.”
Reprocessing firm acquired by sustainable packaging company
Reprocessing firm, Bright Green Plastics, has been acquired by IPL Global from AIAC. The acquisition will allow the manufacturer of sustainable packaging solutions for environmental, returnable packaging and industrial markets to offer a full recycling service for its products.
Bright Green Plastics’ West Yorkshire-based reprocessing site, which currently recycles around 40,000 tonnes of plastic waste each year with a 130-strong workforce, will continue to operate under the existing management team.
IPL plans to invest in equipment and innovative projects to increase the recycling capacity and capabilities of the business, which will ensure the continued supply of high-quality recycled compounds to customers across many sectors.
Ian Farquhar, UK Managing Director at IPL Global, says: “We are delighted to have Bright Green Plastics as part of our network of businesses. Our shared values, coupled with impressive breakthroughs in the development of recycled polymer formulas for a wide variety of applications, meaning that together we can offer sustainable solutions the market is looking for.
“It’s this passion and commitment to innovation that first attracted us to the company, and we’re excited to see the value that Bright Green Plastics is set to bring to our business as we, in turn, contribute to its ongoing growth and success in the worldwide marketplace.”
Steve Spencer, General Manager at Bright Green Plastics, adds: “Anyone that comes across our business knows we are passionate about plastic recycling.
“This acquisition will provide the global assistance to accelerate significant technical developments, ensuring as much recycled plastic as possible is ploughed back into the manufacturing cycle, whilst lessening reliance on virgin plastic.”
The acquisition was completed on 8 December 2021. Steve Spencer, who joined Bright Green Plastics in 2019, will continue to control and oversee all business operations.
3 of the best ways to help small businesses
It was common for small businesses to be engulfed in turmoil even before the pandemic struck. Today, many of them are in a very vulnerable position.
Still, though many businesses have struggled, their fighting spirit has not wavered, and a sense of community must be built and felt. The nation needs to band together to keep firms afloat, and you may be wondering what part you can play in these proceedings.
Consequently, here are some of the best ways you can help small businesses in your area today.
Use Social Media
It doesn’t take much to open an account on Twitter or Facebook or to use them as savvy tools for business purposes.
Try to shout businesses out if possible. An online post that highlights a firm’s capabilities, services, and excellent service could really help them. You could provide links to stock pages, eco-friendly measures, or charitable causes they are supporting, highlighting their work ethic and strong moral character. If possible, don’t just like, share, and retweet – put your admiration into your own words for a more effective promotional effort.
Be sure to include relevant keywords and hashtags to boost the visibility of your posts. Additionally, if you’re promoting an event of some kind for a firm, it could be worthwhile building up some hype before you make any big announcement. That way, you can ensure that you reach as many people as possible. Remember, many firms compete for shoutouts, so receiving them for free could be a big win for them.
Invest in Them
If you have capital at your disposal, investing in early-stage businesses that are going through their initial stages of growth could be a good idea, albeit with significant risk. There are specific schemes set up which provide growth opportunities and potential tax advantages.
All of this is made possible within the Oxford Capital Growth EIS fund. You can back a diverse portfolio of UK early-stage companies in a range of sectors, including eCommerce, fintech, artificial intelligence.
Cash injection into start-up businesses opens up an ever-expanding series of doors for them, propelling their growth going forwards. Remember, in doing this, you’re not just helping the small business succeed. You’re helping people earn their livelihoods, and you’re helping to keep the UK economy moving.
Be Mindful of Your Interactions
There are lots of things that customers can do that waste a firm’s time. These can be:
- Asking questions of customer service personnel that are answered by reading their web copy/FAQ pages.
- Engaging in small talk with staff who are clearly busy.
- Disputing price points and shipping arrangements.
- Cancelling tables in restaurants at the last minute.
National Infrastructure Commission to open Leeds office
The National Infrastructure Commission will open a new office in Leeds by the end of 2023.
The new office in Yorkshire will form the base for around 40 per cent of the Commission’s secretariat in the future, with others continuing to work from a base in London.
The move is part of the government’s commitment to move 22,000 civil service positions out of London and the South East by 2030, through the ‘Places for Growth’ programme.
Sir John Armitt, chair of the National Infrastructure Commission, said: “It’s great to be establishing a second base in Leeds. It is not only a great city to live and work in, but the move underlines the Commission’s role in advising government on the role infrastructure can play in boosting local economies and improving quality of life right across the UK.
“We look forward to continuing to work with local leaders as the Commission starts work on our next major assessment of the country’s infrastructure needs for the future, to be published in 2023.”
As an independent executive agency of HM Treasury, the Commission liaises with government on property arrangements and certain other central services, while retaining complete discretion to determine its own work programme and policy recommendations.
Grosvenor enters Leeds office market with acquisition of landmark building
Grosvenor Britain & Ireland has completed the acquisition of Toronto Square, a landmark office building in Leeds, from a fund advised by J.P. Morgan Global Alternatives.
The building, which holds a BREEAM Excellent rating, provides 88,500 sq ft of Grade A offices and is 96% let to occupiers including CBRE, Bevan Brittan, Franklin Templeton and Quilter.
Keith Bailey, investment director, Grosvenor Britain & Ireland, said: “Toronto Square is a highly respected sustainable prime office building, which has proven to be popular with Leeds occupiers.
“Following on from the recent refurbishment works undertaken by J.P. Morgan, we will continue to invest in the building’s amenities and environmental performance to maintain its reputation as one of the market’s landmark office locations as supply of new space tightens and levelling up opportunities increase.”
GBI’s Investment team actively manages a c£1 billion UK property portfolio, comprising assets and projects outside of its Mayfair and Belgravia holdings. Its focus is on income producing assets where it can enhance their environmental, social and commercial performance and build scale in new markets.
In June 2021, Grosvenor completed its first acquisitions under the new strategy: 134 Edmund Street, an 85,000 sq ft office building in Birmingham’s central business district, and The Hive, an 80,000 sq ft office building in Manchester’s Northern Quarter. The portfolio also includes Grosvenor’s Strategic Land business and stake in Liverpool ONE.
JLL acted for Grosvenor and Savills and CBRE for J.P. Morgan Global Alternatives. The terms of the transaction are not disclosed.
New Leeds-based commercial broker Attis Insurance reports rapid growth and eyes £50m premium in 2022
Newly launched commercial risk and insurance broker Attis Insurance has reported strong growth in its first nine months trading. The business expects premium to top the £50m barrier in 2022, and since its launch in Leeds in February this year, has opened a total of six offices across the north, with a headcount of 75.
The firm is backed by chairman and industry veteran Joe Henderson, who sold his Leeds-based, 30-year-established Henderson Insurance Broking Group to global professional services firm Aon for £90m in December 2017.
Since the launch of its Leeds head office, which is led by directors and former Henderson employees Keith Browne, Neil Beck and Justin Chadwick, Attis Insurance has opened five further offices to cover the Manchester, Halifax, Teesside, Lincolnshire and Leicestershire regions, with plans to open a London base next year.
Attis director Keith Browne said: “Our rapid growth is a reflection of our strategic drive to scale the business so that we can provide a really strong regional presence for commercial customers across the UK and across a range of industries.
“We are differentiating ourselves quite clearly from other brokers in the market, as a modern and dynamic business helping directors protect their balance sheets from risk with bespoke insurance cover planned properly by people who actually understand clients’ businesses and the sectors they work in.”
He added: “Because everything is actioned in-house we are able to guarantee swift decision making and innovative support for our clients at all times. Throughout the challenges presented by Covid we have been determined to put our clients first, providing a level of personal service and professionalism that has been massively appreciated.”
Further growth is planned for Attis Insurance into 2022 with more hires scheduled and potential organic acquisitions in the pipeline for the coming months.
Neil Beck added: “As we continue to recruit, creating quality jobs, in Leeds and across the north and Midlands, we are very much aware that we are aiming to be an employer of choice, creating the best brokerage by attracting and retaining the best people. We’re really proud of what our team have achieved in our first six months and by investing in people and their careers we hope to make the next six months and beyond even more successful.”
Over 33 years, Joe Henderson grew his previous venture from a sole-trader outfit in Scunthorpe to a 400-strong brokerage with 16 UK offices before its sale to the US-based insurance group Aon. In 2019, he was awarded an MBE for services to business and the community in Lincolnshire, where he lives.
Four associates join Leeds law firm
Clarion’s team continues to grow with the appointment of another four associates.
Anna-Elise Harvey joins the employment team as a specialist in employment and business immigration, with four years’ experience of advising on day-to-day HR issues, corporate mergers and acquisitions, and contentious matters in the Employment Tribunal. Anna specialises in business immigration and has particular expertise in conducting right to work checks, and also advises on all aspects of sponsoring migrant workers. Anna provides further strength and depth to Clarion’s business immigration offering.
Zaigham Jaffri has become the latest member to join the real estate team. With experience of property finance transactions, representing banks and other institutional lenders, he is able to advise lenders about security relating to purchases, refinances and development, secured over a wide range of commercial and residential property.
Jack Farrer further strengthens the commercial team. Specialising in data protection and privacy law, he has experience of advising both private and public sector clients. His expertise includes the auditing of business functions to ensure compliance with data protection and privacy law; and the preparation and negotiation of data processing and data sharing agreements, privacy and cookies policies and other internal data protection policies. In addition to Jack’s general commercial experience, he will support Clarion’s corporate team by assisting in due diligence exercises on both the buy and sell sides of corporate transactions.
Finally, the costs and litigation funding team has also welcomed a new associate. Having spent over ten years as a costs lawyer, Andrew Crisp advises on a wide range of costs matters including those that have proceeded all the way to the Supreme Court. He often attends hearings, and also advises on a variety of funding and retainer issues. Having worked both in-house and for specialist costs firms, Andrew really understands what is required by law firms and what can be achieved on their behalf. He prides himself on his technical ability and regularly advises legal teams on process improvements and on costs issues.
Roger Hutton, joint managing partner, comments: “After another very busy year, we are committed to further investing in expanding and developing our team as demand for our services continues to grow alongside our clients.
“We are pleased to welcome all four talented young lawyers to Clarion – we know they will make a vital contribution to helping us to provide high levels of client care, and we look forward to supporting their career progression.”
Clarion has a 285-strong team, including 30 partners. Having previously been recognised in the Sunday Times ‘Best Companies to Work for’ list, attracting and developing talent remains one of its core values.
South Yorkshire wins £12m bid to establish an Institute of Technology
A collaboration of educators and employers from South Yorkshire have successfully secured over £12m to establish a new South Yorkshire Institute of Technology (IoT).
The Department for Education (DfE) made the announcement as part of the second wave of IoT bids to have funding confirmed by the government.
New employer-led IoTs offer higher level technical education to help close skills gaps in key STEM areas. They are part of the government’s plans to reform technical training to help employers get the skilled workforce they need and offer local people rewarding jobs.
The South Yorkshire IoT joins Further Education institutions, Higher Education institutions and local employers together to provide pathways from STEM based T-Levels to Higher Technical Qualifications, apprenticeships, and degrees. The IoT will also offer flexible courses for adults looking to reskill or upskill.
The collaboration includes DN Colleges Group, Sheffield Hallam University, Barnsley College, and the University of Sheffield AMRC Training Centre as core education partners. RNN Group, the Sheffield College and the National Centre for Advanced Transport & Infrastructure (NCATI) are also associate partners.
In addition, the core employer partners include AESSEAL PLC, Engie UK, HLM Architects and WANdisco. They will have a place on the Board of the IoT and one of them will be chair.
The South Yorkshire IoT will work closely with employers to provide specialist provision for over 1,500 learners, aiming to meet the demand for construction, digital, engineering/manufacturing, and healthcare science higher level technical skills within the region. The IoT will target key sectors and occupations, making a substantial contribution to increasing the region’s productivity and ability to attract and retain employers with higher-level technical skilled roles.
Mick Lochran, CEO of DN Colleges Group, which has led on the formation of the IoT, said: “I am so proud that South Yorkshire has been awarded an IoT as it has the potential to change the whole dynamic of our region. The working partnerships, between employers and education providers, has been amazing and provides a sound foundation to deliver a successful IoT.”
Provision will be designed to be accessible to people across the region and target underrepresented groups. Investment will see IoT sites established across the region, including:
- DN Colleges Group will be delivering provision from within the existing Doncaster College site;
- Barnsley College will reconfigure and refurbish its existing Church Street building to create a dedicated IoT centre in the centre of Barnsley;
- Sheffield Hallam University will create a dedicated IoT space within the existing campus in Sheffield City Centre;
- The University of Sheffield’s AMRC Training Centre is planning to refurbish and upgrade a dedicated space at its Rotherham site with industry standard digital engineering laboratories.
2022 Business Predictions: Konrad Czajka, Managing Director of Czajka Care Group
It’s that time of year, when Business Link Magazine invites the region’s business leaders to offer up their predictions for the year ahead.
It has become something of a tradition, given that we’ve been doing this now for over 30 years.
Here we speak to Konrad Czajka, Managing Director of Czajka Care Group.
Brexit has done the care sector no favours whatsoever. Next year we will continue to have huge challenges around recruitment, retention, compliance and operational issues, including the complications surrounding compulsory vaccinations for staff. In 2022, there will be massive inflationary pressures, especially on pay rates, utilities and insurance.
There are 1.4 million older people with unmet needs. 43% of people over 85 years of age require some form of support, but only 20% of those people are receiving it. The government now realises that if they want a functioning, effective NHS, they will need a strong and sustainable social care sector. A well-funded and good quality social care sector is fundamental to a healthy nation and well performing NHS.
The social care sector will continue to care for the most vulnerable members of our society, and it is worth remembering that our complex levels of support, will protect the NHS from being overwhelmed. We will continue to care for people at the end of their life, dispense medication prescribed by clinicians, support individuals with mental health issues and those with complex dementia or physical disabilities.
The social care sector will care for more people than the NHS and employ more staff than the NHS and social services put together – 1.75 million to be precise! Our investment returns over £4.3 billion into the economy and in many local areas social care is the biggest employer and drives economic activity.
The fear and anxiety caused by the pandemic has been immeasurable and the scars of the past two years have been the most painful in our professional careers. In 2022 we will engage with the Commissioners and the Care Quality Commission to ensure that the older, infirm and disabled people living amongst us receive the quality care they deserve.
Despite the enormous challenges we have faced over the last few years, I am still optimistic about what the future holds for the social care sector. Next year the Care Associations will continue to work together through the Care Association Alliance to ensure a strong and influential representation at national level. Together we will, and we are, making a difference!
