- The balance of manufacturers expecting to raise prices in the next three months rose to a survey record high in March (+80% from +77% in February, a question first asked in Jan 1975).
- Output volumes continued to grow at a robust pace in the three months to March (balance of +27% from +26% in the three months to February), with a similar rate expected in the three months ahead (+30%).
- Output increased in 10 out of 17 sectors, with growth driven by the motor vehicles and chemicals sub-sectors.
- Total order books matched the record level seen in November 2021 (+26% in March, from +20% in February, question first asked in April 1977). Export order books were above normal to the greatest extent since March 2019 (+7% from -7% in February).
- Stocks of finished goods were seen as inadequate in March but improved for the third consecutive month (-8% from -14%).
Manufacturing price expectations hit new high
UK manufacturing output grew at a brisk pace in the three months to March, but the balance of manufacturers expecting to increase prices rose to a survey record high, according to the latest monthly CBI Industrial Trends Survey.
The survey, based on 229 responses, found:
Construction gets underway on £12m Lincolnshire housing scheme
Work has begun on a £12m development that will create 39 new homes in Marton, Lincolnshire.
The two to four-bedroom single and two-storey homes in Stow Park Road are being delivered by E5 Living UK, which is promising a new generation of high specification eco-friendly homes including air source heat pumps for buyers looking for more sustainable heating options.
Marton Meadows is the second venture in the county for E5, which is also building nearly 100 new homes at King’s Park in Grimsby and has further sites in Market Rasen and Caistor primed for residential development.
E5 has teamed up with its King’s Park architect, the Cleethorpes-based Hodson Architects, for the project. It will be built by Kenmore Design, an experienced residential construction contractor that works across the UK, and the selling agent will be Lincoln’s Mount & Minster. The first properties are expected to come to market in the autumn.
E5 director, Kevin Stevens, said: “We are delighted to bring these much needed new homes to Marton, particularly as there’s a nationwide shortage of single storey and eco-friendly homes. People want to live cleaner and take responsibility for themselves concerning the environment we all live in.
“Our experience in Lincolnshire to date has shown that buyers are keen on the open plan contemporary style properties we deliver as they offer more flexible living and suit the way we use our homes today.”
E5 has already started building links in the community, building a new car park at the neighbouring Marton Academy and is looking to further support local charities and organisations during the build.
Andy Miles, director of Kenmore Design, said: “Working with E5 Living UK and in this area of Lincolnshire is an exciting development for us. We will be building on our supply chain network here, which will have a valuable impact on the local economy.
“E5 has a clear vision for a new generation of homes at Marton Meadows and we’re looking forward to delivering them.”
James Ward, partner at Mount & Minster, added: “It is a fantastic opportunity for environmentally conscious buyers who demand the highest standards of build quality and luxury finishes.
“E5 has really listened to what the market is asking for and the new homes in Marton will deliver this with style. I am excited to bring to market a development of extremely well designed and built high spec properties; it is a perfect fit with the Mount & Minster brand.”
You must stabilise business confidence, CBI tells Chancellor
The CBI is calling on the Chancellor to tomorrow’s Spring Statement to stabilise business confidence and get firms investing by doubling down on green energy and creating a permanent investment deduction.
Making commercial buildings more energy efficient would help reduce demand from sources overseas, reduce emissions and spur investment, says the organisation, adding that setting out a ‘Contracts for Difference’ model on hydrogen could keep us ahead of international rivals in a new green market.
Amidst geopolitical turmoil, a cost-of-living crisis and the lingering impact of the pandemic, CBI Director-General Tony Danker is urging the Chancellor to deliver on his Mais Lecture vision of a ‘high growth, low tax economy built on a new culture of enterprise’ – otherwise, it will disappear into the rear-view mirror if action isn’t taken to stabilise business confidence immediately.
Mr Danker said: “With economic turbulence meaning a rocky spell in recent months, the time for action is now to not only mitigate as best we can, but also set the UK on a higher trajectory of economic growth. The Chancellor may have wanted to delay taking decisive moves on the economy but that no longer makes sense.
“Despite labour shortages, rising cost pressures and supply chain disruption, most firms still had growth and much-needed investment firmly in their sights.
“But the tragic outbreak of war in Ukraine threatens to sap that post-pandemic optimism. This is a chance for the Chancellor to signal that the UK can continue to grow independent of Putin’s actions.
“With expected tax rises also thrown into the mix, all-important investment plans could be shelved unless we act to boost confidence. That’s why we need a substantive and permanent replacement for the successful super-deduction.
“The Chancellor must put growth and economic resilience front of mind when delivering his Spring Statement. We must leverage North Sea production as we manage our energy transition, but we also need to now go full throttle in pursuit of green growth. It was always good for humanity but it’s now essential for national security. It’s also the greatest economic opportunity for businesses to thrive and to level up the United Kingdom.”
Private Equity investor acquires Bradford bathroom products business
TPA Capital has invested in Bradford-based Barwick Bathroom Distribution, a UK B2B distributor of premium bathroom products.
Founded almost 40 years ago, Private Equity investor TPA Capital has acquired the business from the original founders, John and Michael Barwick, who have put a talented team in place to lead the continued success of the business.
The transaction comes on the back of significant growth in recent years, underpinned by a buoyant market for home improvements. TPA’s investment will support the business as it continues to grow through expansion into new geographies as well as increased penetration in existing markets, leveraging Barwick’s strong brand, partnerships and product portfolio.
TPA will support the team in building on John and Michael’s legacy, utilising experience from investing in adjacent sectors and supporting transitions from private ownership.
RSM’s corporate finance partner Steve Hubbard and associate director, James Atkinson, advised Barwick Bathroom Distribution on the sale. Paul Mann, Louise Parker, Josh Headley and Patrick Ford from Squire Patton Boggs provided TPA with legal and tax structuring advice. Debt advisory services were provided by RSM’s debt advisory partner Gregory Morton.
Steve Hubbard, corporate finance partner at RSM UK, said: “We are delighted to have advised a strong business as it transitions to the next chapter in its development. I am confident that with its quality management team, market position and the strategic advice from its new investor the business will continue to develop and grow.”
Paul Mann, partner and European head of private equity at Squire Patton Boggs, said: “We are pleased to have played a part in a transaction supporting a strong Yorkshire business as it looks to the future. With the investment from TPA Capital, Barwick will be in a good position to continue developing its existing business, whilst taking the opportunity to expand into new markets.”
Gary Campbell, Managing Director of Barwick, said “We are excited to be partnering with TPA on the next stage of our growth journey. Having known the Barwick brothers for over 25 years, as well as having had the honour of leading their business over the last six, I’m delighted that we have the opportunity to build on their legacy with TPA’s support.
“TPA’s investment allows us to remain an independent distributor with a reputable brand that will continue going from strength to strength.”
KPMG’s Financial & Tax due diligence team led by Richard Dwight and Gareth Wainwright; and PMSI’s Commercial due diligence team led by Gareth Elliott also advised TPA. Ward Hadaway’s Adrian Balham, Jonathan Pollard and Olivia Brown provided legal advice to Barwick Bathroom Distribution.
Work starts to bring new family homes and a city gateway community to Wakefield’s Kirkgate area
Plans to revitalise Wakefield’s Kirkgate area are getting underway, starting with the demolition of the ABC cinema to make way for much needed new housing in the city centre.
It’s the first step towards implementing the Wakefield Masterplan and comes swiftly on the heels of public endorsement and Cabinet approval of the plan.
The blueprint will see a modernised city centre that residents and businesses will be proud of and which will attract more visitors. The city will be modernised to meet the needs of future generations, reverse the decline of the high street and introduce more sustainable and active travel.
Cllr Denise Jeffery, leader of Wakefield Council, said: “We are moving at pace to implement this blueprint to ensure that we stay abreast of developments and demands by our residents, visitors and businesses so that Wakefield city can remain the bustling and vibrant hub of our local economy that it has always been.
“These exciting plans, for the creation of a Kirkgate Innovative Neighbourhood Gateway to the city, will see the creation of approximately 90 new homes, car parking facilities and improved public spaces.”
Cllr Darren Byford, Cabinet Member for Economic Growth, Regeneration and Property, said: “This is not about bricks and mortar. People are at the heart of this transformation that will make residents feel prouder and safer in the place they call home, create a vibrant high street and have great connections that appeal to residents and visitors and build a fairer future for all.
“Though it is led by the Council, which has secured millions of pounds in government funding, these plans are co-produced by residents and businesses who have shared their aspirations for a modernised city centre that stays in step with the trends across the UK to ensure city centres remain vibrant and attractive to all.”
The creation of the new ‘15-minute-village’ is part of the plan to create vibrant communities to help drive the local economy and improve the standard of living.
Demolition of the ABC Cinema is expected to start in April and be completed in the summer. The site will be home to approximately 90 new homes, car parking facilities and improved public spaces.
When demolition of the ABC cinema is completed in the summer 2022, the land will be temporarily landscaped and become a public open space pending the completion of acquisitions of other properties on the block.
Some of the older 1950s properties, which are reaching the end of their lifespan, will also be demolished later in 2022. The Harewood Arms, and some surrounding buildings, will remain.
Once acquisitions are completed and the site has been prepared, in late 2022 to early 2023, it will be put on the market for purchase by a developer for delivery of housing.
This is one of four projects being financed through the Government’s Towns Fund which has allocated £24.9 million for Wakefield city.
The Council’s investment in the city centre will see the creation of 4,000 square metres of new commercial space and a new 120-bed hotel at the old Westgate station and around 100 new homes to radically extend the city living offer.
The other projects are the Kirkgate Phase 2, Cathedral Precinct Public Realm Improvements.
Overall, the Council has secured more than £80million, primarily from Government funding, and will help in repurposing and positioning the city and towns to be thriving places that work for local communities to build a fairer future for all.
Construction phase of new Darley Street Market begins
Representatives from construction company Kier, met with Councillor Alex Ross-Shaw, Bradford Council’s Executive Member for Regeneration, Planning and Transport and representative from the council’s regeneration and markets teams, to mark the start of the construction phase of the new Darley Street Market.
The main demolition phase of the project which started in May last year has been completed and now work has started on the construction of the new multi-million pound market.
The development will also include an outdoor square for concerts and events, will occupy a prominent and large site on Darley Street and is part of the ongoing cultural and physical regeneration of Bradford city centre, complementing what’s on offer across the district and enhancing Bradford’s destination status.
Councillor Alex Ross-Shaw, Bradford Council’s Executive Member for Regeneration, Planning and Transport, said: “It was great to be on the site of the new Darley Street Market to see the construction phase begin. Modern markets need to be more than just places to shop, people also want culture, leisure and entertainment and this new market in the city centre will deliver that.”
Dan Doherty, regional director for Kier Construction, said: “We are delighted to see the new build phase of the project commence now all the demolition works are complete. We look forward to seeing the new building come to life for the community of the Bradford district and beyond.”
Keighley and Shipley Towns Fund projects get the go ahead
The first set of business cases for Towns Funds in the Bradford district worth over £7million have been given the go ahead to proceed.
The projects in the Keighley and Shipley Towns Fund areas both include funding to help local businesses to grow. This is funding to support businesses to become more productive, helping them to modernise and diversify to be more competitive and to increase productivity and safeguard jobs.
The other projects in Keighley are:
- Funding for Keighley Creative Community Hub to create a cultural destination in Keighley, joining up other creative enterprises and running outreach programmes with schools, communities and businesses across the Keighley wards.
- Funding for Keighley Art and Film Festival working with Keighley Creative to support the development of the annual festival, along with a year round programme of celebratory and engaging events.
- Funding for the Women Employment Project to establish a textile academy delivering a bespoke skills training package for local women from diverse backgrounds. The funding will provide an annexe to an existing building to house sewing machines and equipment within a learning and working environment.
Trio of new AMP buildings granted detailed planning permission
Creation of three new buildings at South Yorkshire’s Advanced Manufacturing Park has inched closer with the granting of detailed planning permission.
Permission was sought to create buildings measuring almost 93,000 sq ft, and which would be divided into 11 units.
Rotherham Council has now granted planning permission for the development, subject to conditions, under delegated powers. An officer’s report said: “It is considered that the scheme has been sympathetically designed, taking account of the characteristics and constraints of the site and the character of the surrounding area.
“Therefore the scheme is considered to be of an appropriate size, scale, form, design and siting that would ensure it would enhance the quality, character, distinctiveness and amenity value of the borough’s landscapes and will be visually attractive in the surrounding area.”
Outline planning permission was granted in July 2021 for up to 242,000 sq ft of new business, manufacturing and office floorspace at the AMP.
The new units will range in size from 5,750 sq ft to 11,000 sq ft and have been designed to match the existing buildings at the AMP. Proposals include 130 car parking spaces, with parking for disabled users and electric vehicle charging points.
York security ID specialist accesses all areas with German acquisition
A York company that supplies security ID cards, and the print equipment used to create them, is significantly expanding its product and service range, after acquiring a German counterpart that specialises in access control systems for large-scale events.
cards-x has acquired Adon Development, which is based in Ratingen near Dusseldorf and is one of the world’s most prominent suppliers of turnstiles, barriers, gates and electronic door systems.
Its access control systems operate alongside an advanced online, browser-based event registration system that is fully customisable in terms of look and feel, enabling it to incorporate event branding and other features relevant to any event.
It can also be tailored for individuals attending the event, offering everything from access to special zones through to food and drink credit in hospitality areas. The company’s products are available to lease or rent, serving clients including the Eurovision Song Contest, Ski World Cup Croatia, as well as global motor racing events.
Adon Development’s founder, Peter Mooshage, and its six-strong team will all remain with the business, which is being rebranded to cards-x Development.
cards-x chief operating officer, Andy Reeves, said: “cards-x is now at the forefront of the market in terms of security ID cards and the print equipment used to create them, and this latest acquisition is a key part of our ambition to become much more than a distributor and manufacturer.”
Norman Kämmerling, CEO at cards-x, added: “Adon Development is a world leader in access control systems with an innovative product range that is supported by an advanced online system that can provide an array of bespoke services to ensure sports fans, music lovers, exhibition attendees, and anyone else visiting an event, have an outstanding experience.
“It’s very exciting to be able to incorporate these products and services into our offering and the acquisition will enable us to continue growing our client base throughout the UK, Europe and beyond.”
This latest deal follows cards-x acquiring the eco-friendly manufacturer of ID card holders, Evohold at the end of 2020.
Food price rises inevitable, says FDF Chief Executive
Today the Food and Drink Federation’s Chief Executive is expected to give a stark warning to the UK Government and British shoppers during her organisation’s annual conference.
Karen Betts believes Russia’s invasion of Ukraine has been a genuine geopolitical, energy and commodity shock that will have serious ramifications across Europe and globally.
She predicts President Putin’s assault on Ukraine will lead to rising costs, rising inflation and unpredictable supply chains that will mean food price rises are now inevitable.
“The effects of the war are already being felt in the supply chain. Energy prices are soaring while shortages of sunflower oil and wheat are causing huge spikes in global market prices. These impacts are hitting an industry only just starting to recover from the strains of the COVID-19 pandemic,” she said.
The chief executive will use her speech to call on the UK Government to act now to ease the supply chain pressures on food and drink companies and support the millions of vulnerable households already suffering from the mounting cost-of-living crisis.
Ms Betts will ask ministers to react quickly and with greater flexibility for when ingredients become unavailable; will call for a National Food Security Council to enable industry and Whitehall to react in real time to supply chain impacts; and to urgently review all upcoming regulation to avoid unnecessary costs being placed on businesses and ultimately shoppers, claiming “the UK Government was once a beacon for the better regulation agenda – it should strive to be so again.”
There will also be a message to the food and drink sector itself. The FDF’s chief executive will tell its members that it is “critical for our industry’s long-term growth and success, and to the economy more broadly” that they continue to invest in productivity and growth.
She will set out the case for more money to be spent on skills, new technology and more sustainable products, while the manufacturers must not lose sight of their Net Zero ambition and endeavour to seize new trade opportunities.
