LEP Chair welcomes devolution announcement
The man leading the Greater Lincolnshire LEP has announced his support for the devolution deal for Greater Lincolnshire.
Professor Neal Juster said: “The deal will move decision making and funding from Westminster to Greater Lincolnshire, which can only be a good thing for our economy.
“In the long term it will bring around £4bn of extra funding to Greater Lincolnshire and, just as importantly, it will give our area a stronger voice and better access to the levers that drive our economy such as transport, jobs, housing and skills. This should lead to improved outcomes and greater prosperity for us all.
“It will bring about new investments in infrastructure and skills to turbocharge business growth, tackle low productivity, protect our environment and unlock high-quality housing.
“The extensive consultation carried out showed that most businesses support devolution, recognising that it has the potential to bring more power, more money and more say over public sector funding. It is essential that we retain a strong Lincolnshire business voice at the heart of the devolution deal.
“We look forward to working with the government and closely with partners to put the new arrangements in place.”
Lupton Fawcett expands leadership team with new partner
Yorkshire law firm Lupton Fawcett has appointed a new partner to help advance its commercial offering.
Julie Evans will take a lead role in the firm’s Commercial Property team.
Her role will involve all areas of expertise relating to commercial real estate including acting on behalf of SMEs and individuals on landlord and tenant matters.
She said: “I’m looking forward to playing a key role in the supervision of junior members of the department as well as working with the leadership team to grow the Commercial Property department.
“Prior to joining the firm I was invited to spend time with the team so that we could get to know each other before my official start date – I think this was such a positive approach and a really warm welcome to Lupton Fawcett.”
Julie, who has more than 20 years’ experience and previously worked at Clarion, will be based at Lupton Fawcett’s Leeds office.
James Richardson, managing partner at Lupton Fawcett, said: “We are really pleased to welcome Julie to the Lupton Fawcett team. She has a broad breadth of experience and has a proven track record in all aspects of Commercial Property.
“Having someone with her knowledge and capabilities joining the team is a tremendous boost in taking the Commercial Property department to the next level. Her no nonsense approach to serving our clients without compromise perfectly complements the Lupton Fawcett ethos.”
Period property transformed from offices into homes fully let within two weeks
A brand-new apartment development in Leeds city centre, consisting of nine, one and two bedroom rental homes, has been let within just two weeks of being brought to the market by Zenko Properties. The city living agency fought off stiff competition to win the contract.
The former office building has been redeveloped by Yorkshire property specialists, Blackshaw Holdings, with a new build zinc clad extension added to Somers Street and the conversion of an original townhouse on Park Square West.
The development now offers a selection of individual apartments. Furniture, appliances and interior design services have been supplied by Leeds-based firm, Kit It Out.
Tobias Duczenko, Managing Director at Zenko Properties, said: “We competed against several other Leeds lettings agents to win this instruction, but we knew it would be a great fit for our portfolio, which already includes a good selection of small-scale but very high-quality schemes in sought after parts of the city.
“This development definitely fits into this mould. It’s very close to Leeds Town Hall and The Headrow, but still enjoys a quiet location overlooking the green and tranquil surroundings of Park Square, with some of the city’s best independent cafes and eateries on the doorstep.
“As a result, we were able to quickly generate interest in the development and let all of the apartments. The city centre rental market continues to go from strength to strength and it is unusual to be able to offer a small, purpose-built scheme of this quality in such a great location.”
Sam Taylor, from Blackshaw Holdings, said: “We invested significant sums in transforming this period property on Park Square from offices into homes, and we are very pleased to have worked with Zenko Properties and appreciate their proactive approach to marketing our development.”
Construction confidence tempered by funding and skills concerns, finds report
Confidence in the Yorkshire & Humber construction sector is tempered by funding and skills concerns, according to the latest Construction Market Intelligence from Yorkshire-based construction and property management consultant Rider Levett Bucknall.
Major developments including Sheffield Policy Campus and West Yorkshire Mass Transit are driving demand across a range of sectors and underpinning confidence in the region’s medium to long-term outlook.
Placemaking is now more prevalent in development opportunities in the region with the new emphasis on living and working within city centres. The demand for flexible, high-quality commercial spaces is still strong as hybrid working remains the norm.
The region’s confidence is being tempered by budget constraints across the public sector and the lack of clarity over the new government’s spending priorities. Labour shortages have continued to add pressure to wage inflation and construction costs, affecting project viability.
Contractors are cautious and their reluctance to take on uncertain commercial risk is a key feature of contract negotiations. This is both slowing progress and further inflating construction costs across the supply chain as contractors strive to maintain a reduced risk profile, says the company.
There has been minimal change in overall pricing levels since the last quarter with the general election dampening new opportunities, and material inflation having settled and reduced in areas. The key challenge remains the labour shortage and the impact this continues to have on labour price inflation.
There is cautious optimism among contractors over their future pipeline of work, but the long-term outlook on tender prices is hard to call until there is clarity on the spending priorities of the new government and given the backdrop of economic uncertainty.
- Steel prices continue to fall while other commodities remain relatively stable, which is reflected in the mixed picture we are seeing.in material prices.
- Material prices have fallen slightly overall with the biggest drops in plywood and reinforcement bar. Metal doors and windows have continued to increase in price.
- Due to the skills shortage in construction, labour prices continue to increase generally adding further pressure to the viability of projects. Facade contractors are in particular high demand.
Business chosen to build Sea Road building in Cleethorpes
JemBuild Ltd, based in Humberston, have won the contract to build the iconic Sea Road building in Cleethorpes.
Committed to using local companies where possible, JemBuild have already been working with North East Lincolnshire Council on the retaining wall works behind the old beach safety offices. Once this has been completed, work will start on the main building.
A new three-storey building will be constructed on the brownfield site on Sea Road, comprising retail or hospitality space, as well as new public amenities and a changing places facility. Work is ongoing to secure the pre-let agreement for the hospitality provider, which will be announced in due course.
Paul Barker, Managing Director of JemBuild, said: “I am delighted to have secured this fabulous contract with North East Lincolnshire Council and look forward to working with NELC along with our construction partners, Hodson Architects and C2C Structural along with our local suppliers on this exciting project that will undoubtedly cement its place on the local landscape to become as iconic as its sister building, the prominent Pier.”
Cllr Philip Jackson, Leader of the council, said: “This is great news for the area and it’s good to see things moving forwards. The Cleethorpes Masterplan, carried out by renowned consultants, Hemingway Design, has helped us create a vision for the future of the resort, based on what people who took the time to respond to the Masterplan want to see. And hundreds of people have been having their say about the future designs for Pier Gardens and Market Place in the last few weeks too.”
Interrupted by COVID, the three-storey Sea Road building was granted planning permission in 2020, and promises to offer new high quality outside space, with public viewing areas as well as balconies. The first floor of the building will be accessible from Pier Gardens, giving a gracious nod back to how the pier was accessed when it was first constructed.
Other elements of the building hark back to the Art Deco seaside style and the buildings constructed around the resort at that time, such as the small retail kiosks on Central Prom, and the former Electricity Board showroom on Isaac’s Hill.
Work to deliver the three key schemes in Cleethorpes, the Sea Road building, Pier Gardens and Market Place, along with a small amount for signage, is being funded by HM Government.
‘Trust deficit’ costs SMEs thousands every year, report shows
Struggling to know who to trust when doing business online has created a ‘trust deficit;’cost SMEs thousands every year, says B2B search platform B2B Stars.
The research highlights how nearly 30% of businesses are struggling to build trust with new contacts, while 29% report finding it hard to distinguish between fake and genuine profiles on places like social media platforms. As a result, SMBs are losing an average of £93,000 a year due to poor decisions driven by unreliable information, false profiles, and misleading claims.
Compounding the financial pressures that many small companies already face, it’s said this lack of trust online leads to inefficiencies and ineffectiveness in finding the right companies to partner with. The ultimate long-term consequence is a reduced competitiveness and growth of the UK’s SMB sector.
Raffaele Apostoliti, CEO of B2B Stars, Said: “The digital landscape has created fantastic opportunities for businesses to connect, but without trust, these connections can become liabilities. Small businesses are particularly vulnerable because they don’t always have the tools to verify whether the companies they’re dealing with are real and which of the companies are the right ones to partner with. And when things go wrong, it’s not just a missed opportunity – it’s a significant financial hit.
“The antidote to this ‘trust deficit’ is community. By fostering online spaces where businesses can connect with transparency and confidence, we can rebuild the trust that’s been lost.”
With nearly a third of SMEs fearing they may be forced to close by the end of the year due to mounting financial pressures according to government data, the lack of reliable insights is compounding existing challenges like rising costs and shrinking demand.
“Small businesses are the backbone of our economy, and they rely on trusted connections to survive and grow,” Apostoliti adds. “But when you can’t tell who to trust, it slows everything down – businesses become isolated, hesitant to take risks, and they miss out on opportunities. We need to create stronger insights online, which can boost trust across businesses.”
Strong levels of M&A activity expected in UK manufacturing
Strong levels of M&A activity are expected across UK manufacturing for the remainder of 2024, as dealmakers see a rise in business confidence.
According to accountancy and business advisory firm BDO LLP, M&A activity looks set to gain momentum in the final quarter of the year, as long as the political and tax backdrop remains conducive to dealmaking. However, reports of a potential rise in capital gains tax in next month’s Autumn Budget could impact sentiment towards M&A transactions.
BDO’s latest Manufacturing Deals Review shows that in the first half of 2024, 307 deals were completed in the sector, across the likes of engineering services, food & drink, building products and packaging and materials. Of these, 18% were buy-outs, with cross-border deals representing a third of transactions (34%).
Roger Buckley, Deal Advisory partner, Industrials and Manufacturing, at BDO, said: “While overall deal volumes remained relatively steady compared to 2023 figures, we expect to see strong levels of M&A activity over the coming months, with the market keeping a watchful eye on the Chancellor’s first Budget announcement at the end of October.
“Manufacturing remains one of the most resilient sectors, with a wide range of market drivers motivating M&A activity. This includes ESG, with the circular economy becoming a growing feature in manufacturing deals, reaching across all sub-sectors. Unsurprisingly, for the third year in a row, the sector has attracted the most circular economy-related investment, accounting for over a third of total deals by volume.”
In 2023, manufacturing saw a 25% increase in circular economy deal volumes, combined with the total deal value soaring to over £400 million of invested capital. The average disclosed deal size increased from £6.7 million to £12.2 million.
Buckley said: “The correlation between manufacturers making their businesses more sustainable and higher circular economy deal volumes is clear to see. More and more UK manufacturers are embracing circularity – a trend that is accelerating due to strong consumer attitudes towards sustainability and investors showing a significant interest in businesses addressing this issue.”
According to a BDO/Make UK survey of more than 200 SMEs in the sector, 40% of respondents believe that operating a circular business model will be more profitable than a linear model, suggesting an increase in manufacturers’ understanding of the economic benefits of circularity. The survey also showed that more than half of businesses (56%) plan to make circular changes in the next three years, with nearly a third (32%) stating that circular or sustainability credentials differentiate them from their competitors.
Rory McPherson, Deal Advisory partner at BDO, added: “Given the pace at which society’s attitude towards sustainability continues to change, it won’t be long before positive environmental credentials are seen as a minimum standard as opposed to a cherry on the top.
“For those who resist change without good reason, the lack of circular and sustainable practices will inevitably become a negative differentiator and dissuade customers from engaging. At the point the customer stops buying, it might be too late.”
Keepmoat signs lease on Alexandra Dock site in Grimsby
A lease that will result in new housing in the Alexandra Dock area of Grimsby has been signed with Doncaster-based homebuilder Keepmoat.
The 6.25-acre town centre site bordered by Fisherman’s Wharf and the River Freshney will eventually see a community of around 130 homes with supporting commercial accommodation.
The brownfield site has been the subject of consultation with developers in the housing market since November last year. This is a process where developers register an interest in the site, and then, through rounds of discussions, submit a final bid to take over the build lease of the site which then allows them to put in a planning application for their proposals.
Investment worth about £7.8m to support the development at this site has already been secured through the Government’s Towns Fund, and the build will be supported by brownfield funding secured as part of the Greater Lincolnshire devolution deal.
Cllr Philip Jackson, Leader of the council, said: “We want to create a place that connects the town and its community with its waterside, creating a fantastic urban living environment.
“North East Lincolnshire must develop as a place where people want to live and work. If that does not happen, we risk stagnating as a borough. We’re committed to making sure that does not happen.”
“There’s a long way to go yet, and developments of this scale don’t happen overnight. But we are working to improve the town centre as a whole and this is part of that vision.
“We want people who work in our borough to also live here as this will maximise the economic benefits to the area.
“Step-by-step, along with other initiatives in the town centre, we’re changing how our town centre can be used safely, and enjoyed by everyone.”
Ben Hindley, Regional Land and Partnership Director at Keepmoat, Yorkshire East, added: “We’re excited to be working in partnership with the Council to regenerate a large parcel of brownfield land and deliver new homes in Grimsby.
“At Keepmoat we pride ourselves on supporting local authorities to achieve their housing targets and we are honoured to be the housebuilder of choice for this project, selected to create much needed quality housing stock for generations to come.
“We are approaching the project in the Alexandra Dock area of Grimsby with healthy life principles in mind, to ensure the scheme is not only visually appealing, but has plenty of available green spaces for walking, cycling and spending time outside.”
Interest rates held at 5%
The Bank of England has held interest rates at 5%, in line with expectations.
The Monetary Policy Committee (MPC), which sets monetary policy to meet the 2% inflation target, voted by a majority of 8–1 to maintain Bank Rate at 5%. One member preferred to reduce Bank Rate by 0.25 percentage points, to 4.75%.
The news follows last month’s reduction in interest rates, which marked the first decrease in four years.
Alpesh Paleja, Interim Deputy Chief Economist, CBI, said: “The Monetary Policy Committee was widely expected to hold fire this month, after the first rate cut in four years in August. There remain very varied views among the MPC around the degree of inflation persistence, and over what horizon this will dissipate.
“Monetary policy will be walking a fine line for a little while yet: between balancing upside risks to inflation, but not being too tight, so as to choke off activity. Developments in fiscal policy in October’s Budget will also be a key consideration for growth prospects.
“We still anticipate another rate cut in November, and a few more next year, in line with the MPC moving at a slow but steady pace. On their own, lower interest rates will be a welcome respite to households and businesses.”
Made Smarter calls for food and drink manufacturers to open up factories for National Manufacturing Day
Made Smarter is calling for food and drink manufacturers to open their factories to schools, colleges and the local community for National Manufacturing Day on September 26.
The government-funded, industry-backed programme, which helps manufacturers connect with technology and skills, is involved in events across the North West, North East, and Yorkshire and Humber.
Run by trade body Make UK, and now in its third year, National Manufacturing Day (NMD24) has become a national celebration of UK manufacturing and a chance to raise the sector’s profile.
Businesses are encouraged to sign up for a UK-wide ‘open house’, allowing members of the public to experience first-hand what manufacturers do, how they make some of our most loved household brands, and how they use the most cutting-edge technology.
With manufacturing vacancies high, the labour pool shrinking and makers needing help finding recruits with the right skills, NMD24 is a golden opportunity to demonstrate potential careers and jobs on offer, from engineering and robotics to data analysis and innovation.
Commenting on NMD24, Donna Edwards, director for Made Smarter North West, said: “I am delighted that Made Smarter and manufacturers involved in our adoption programme are demonstrating support for Make UK’s campaign.
“NMD24 aligns perfectly with the programme’s ambitions to help SME manufacturers achieve their digital transformation with a people-led approach and using technology as a tool.
“It is a fantastic opportunity to celebrate UK manufacturing and emphasise the role of Science, Technology, Engineering, and Mathematics (STEM) to encourage more students to pursue these subjects, something Made Smarter is passionate about.
“By opening their factories, which are normally closed to the public, it is the perfect opportunity for manufacturers to showcase the huge progress that has been made from the traditional oily rag image towards the smart modern factory. I would encourage more manufacturers to join the campaign.”
Elsewhere in the country, Made Smarter Yorkshire and Humber are hosting workshops demonstrating the benefits of better data capture and management, as well as how manufacturers can unlock innovation through new technology.
Made Smarter is also holding a special LinkedIn Live to celebrate the programme’s impact nationwide. The bite-sized broadcast will take place on Thursday, September 26 at 12pm.
From a national perspective, Brian Holliday, co-chair of the Made Smarter Commission, which leads the Adoption and Innovation programme, will share his insights for a special ITN programme to highlight the positive impact of the manufacturing industry. The show, ‘Manufacturing: Industry, Innovation and Impact’, will go out on NMD24 and will feature contributions from Made in Britain and The Manufacturing Technologies Association.
Stephen Phipson, CEO of Make UK, the manufacturers organisation, added: “National Manufacturing Day is a really exciting day where the whole manufacturing sector will come together to celebrate the amazing things that Britain designs and makes.
“Britain’s manufacturing companies are at the forefront of global renewable technology development and some of the most innovative engineering developments seen anywhere around the world.
“This is a sector with amazing opportunities and we hope this third National Manufacturing Day will give people who have never had the chance to see inside their local businesses just what is going on and the opportunities available to them.”
