< Previous10 Business Link www.blmforum.net COMMERCIAL PROPERTY The commercial property sector faces a stark challenge over the Government’s Net Zero plans, and yet it is one every company in the region will need to address if they wish to avoid fines. I t all began in June 2019 when the UK Government became the first of the major economies to legislate for Net Zero carbon emissions, with the goal to bring the country’s net carbon emissions to zero by 2050. Where the commercial property sector comes into this is that building stock accounts for 31% of the country’s carbon emissions. Obviously, a conflict of interest was to be found, and many have claimed that commercial property is where the war on carbon will be won or lost. The short of it, in as blunt a term we can manage, is that commercial property will be required – by law – to reach an EPC standard of B by the year 2030, at an investment cost of which a white paper in December of 2020 estimated would reach £5 billion. Failure to reach these targets will result in fines, making the matter of Net Zero a mandatory investment for any commercial property owner, whether they use it themselves or rent it out to another business or businesses. This may be more easily attainable for newer builds – these tend to have higher energy efficiency, and may need less work, but older buildings are likely to require not insignificant investment to bring them up to a B rating. In fact, the Government believes that 10% of non-domestic buildings in the UK have an EPC rating of below E, The battle for Net Zero The battle for Net Zero 10-13.qxp_Layout 1 04/04/2022 15:11 Page 1www.blmforum.net Business Link 11 COMMERCIAL PROPERTY 13 Á and these might require significant, even extensive, changes to the architecture of the buildings to bring the rating higher. Many commercial property owners and landlords have been slow to act on the Net Zero pledge but may now be sitting on a ticking time bomb. Though the legislation was implemented pre-COVID, the pandemic itself may have proved too much a distraction, but now with only eight years to go (or less as you’ll read later), commercial property at below a B rating may become increasingly more difficult to sell, or even drop in value. Beyond having to improve the EPC rating of buildings, from April 2025 (a mere three years away) all non-domestic © stock.adobe.com/IRStone rented buildings must have a valid EPC, meaning that many landlords and businesses must have up-to-date EPC tests carried out, especially if their previous ones had expired. The Government’s implementation of Net Zero will also not be a sudden or faraway concept. It is set to be introduced in stages, with “compliance windows” set along the way. For instance, while a non-domestic building will require an EPC rating of B by 2030, it must be able to present an EPC report of C by April 1st, 2025 – and if they cannot do so, they will have until April 2027 to fix the issue and present an updated EPC. What’s more, while fines will not come into place until 2030 for buildings that do not have a rating of B or higher, the Government will request a new EPC with a minimum rating of B on April 1st, 2028. Any landlord or business whose building is not EPC B or higher would than have until April 1st, 2030, to submit an updated EPC where it meets said criteria. This means there can be no suggestion that the Government will simply “not notice” a lower EPC, or that many will slip under the radar. The offenders will already be known by 2028, and fines could well be pre-penned and set to be 10-13.qxp_Layout 1 04/04/2022 15:11 Page 2Armstrong house Armstrong House, Armstrong Street, Grimsby, North East Lincolnshire DN31 2QE Tel: (01472) 310301 Email: s.fisher@blmgroup.co.uk Superb Location - - Close to the ports of Grimsby & Immingham - Great motorway links - Close to the town centre Secure off street parking High speed internet availability A range of affordable office sizes 3 3 3 3 Last remaining office suites Prime location in Grimsby Offering a prime position in Grimsby, Armstrong House on Armstrong Street is ideally located. Close to the ports of Grimsby and Immingham, motorway links and the town centre, off-street parking is also available for all staff and visitors, meaning it’s convenient too. Our spacious, welcoming offices are located on the ground floor and are both secure and CCTV-monitored, giving you the ultimate peace of mind. At Armstrong House, when it comes to affordability and with a range of office sizes there are opportunities for all types of business. If you require virtual office services, prices start from just £15 per month. For more information, or to discuss your office requirements call 01472 310301. 10-13.qxp_Layout 1 04/04/2022 15:11 Page 3www.blmforum.net Business Link 13 COMMERCIAL PROPERTY sent on their way by 2030. Of course there are exemptions for extreme cases, but what those are or may be are best discussed by legal professionals with expertise in the law. The Government is considering options wherein tenants can share a part of the legal responsibility wherein the tenant’s business or fit-out causes the EPC rating of the building to drop. This will obviously come into effect where the building had, prior to occupation, been rated at EPC B or higher, but where the specific business energy demands of the tenant have compromised that. There are other exemptions, but the onus to prove said exemptions will be on the landlord, and the building shall be considered applicable for the requirements until proven otherwise. When it comes to improving the energy efficiency of commercial property it can be difficult to know where to begin – an updated EPC report is an obvious first step, and will be necessary before 2025 anyway, so businesses might as well get started. EPC inspectors can and should be able to offer advice or highlight areas of significant concern, which should be the first areas to be addressed as they can often have the greatest improvement, saving costs elsewhere. Heat loss from walls and roofs is a common problem for many older buildings. Research has found that 66% of an office’s heat is lost through the walls and ceiling, compared to just 8% through doors and windows. Improvement in a building’s insulation can drastically reduce this, improving the buildings efficiency and even cutting heating cost in the long run. Draught prevention, double-glazed windows and updating boilers or air conditioning systems will also be on the cards, but more expensive measures such as installing heat source pumps or solar arrays should hopefully not be necessary. That said, focus should first be on identifying the costs through an EPC and then fixing them, as while overhauling the interior of a building, changing lighting to LED and other matters may be cheaper, it might ultimately prove fruitless if too much heat is being lost due to poor insulation. It is far cheaper to get an updated EPC and identify the problems then to try and solve them blindly. There are many ways, not all expensive, to improve the EPC rating of a commercial property, but it may also be impossible – or inhibitively expensive – and seeking an exemption may be the only recourse. Knowing that in advance is half the battle, but with a rating of C or better expected to be handed in by April 2025, there isn’t time to wait. Landlords and building owners may well be sitting on ticking time bombs, and the clock is ticking. © stock.adobe.com/Andrey Popov Understanding fines! Lest the severity of the legislation not be fully understood, we have compiled some of the punitive measures that are in place to ensure compliance. * Renting out a property in breach of EPC requirements for under three months – 10% of the rateable value of the property (Min: £5,000 – Max: £50,000) * Renting out a property in breach of EPC requirements for over three months – 20% of the rateable value of the property (Min: £10,000 – Max: £150,000) * Proving misleading or false exemption information – Max: £5,000 * Failure to comply with a compliance notice – Max: £5,000 10-13.qxp_Layout 1 04/04/2022 15:11 Page 414 Business Link www.blmforum.net FACTORY AUTOMATION SPOTLIGHT T he manufacturing sector is in a state of constant flux. Never stalling or stopping, it continually evolves to meet changes in consumer demand, new laws and regulations and, more so over the last decade, responding to environmental pressures. COVID aside, the latter is perhaps the single greatest challenge currently facing the sector. Pressure from advocacy and campaign groups, greater regulatory scrutiny, and a public shift towards greener, more sustainable manufacturing has had a dramatic impact on the industry. Companies can now no longer afford to ignore the environmental agenda but should instead meet the challenge head on the same as they do with labour shortages and the widespread move towards smarter, automated factories. It should go without saying that replacing old and outdated machinery will not only boost a company’s efficiency and output but will also reduce carbon emissions, but too many producers still rely on old machinery rather than investing in new or refurbished replacements. It’s a false economy and counterintuitive besides, yet worryingly commonplace. A McKinsey report found that the average food processing plant, for instance, is more than two decades old. With the continuing market proliferation of smart technologies (more on that later), companies risk making themselves obsolete. Investing in machinery and equipment that can deliver cost savings will, of course, be a motivation alongside efficiency gains, but Innovation, adaptation, automation The manufacturing sector within our region has ever been strong, but the pandemic and the lockdown introduced vulnerabilities that can no longer be ignored. Automation may have been an ideal before, but soon it may become a necessity – but perhaps not in the way most people expect. 16 Á 14-17.qxp_Layout 1 04/04/2022 15:12 Page 1www.blmforum.net Business Link 15 FACTORY AUTOMATION SPOTLIGHT © stock.adobe.com/Nataliya Hora 14-17.qxp_Layout 1 04/04/2022 15:13 Page 216 Business Link www.blmforum.net FACTORY AUTOMATION SPOTLIGHT part of the criteria also needs to be environmental impact. As well as the specific machinery that’s used, there’s also the way in which they’re used that needs to be considered. A good analogy here is a car: you’re going to get more miles out of a tank of petrol or charged battery if your car is regularly and thoroughly serviced and maintained, if you drive at consistent speeds and plan ahead for breaking and cornering. The same is true of production and processing where regular inspection and maintenance can sustain efficiency and identify causes for concern before they result in extended disruptions. This will also ensure that machines are running at optimum levels and, thus, at their most environmentally friendly. Reducing energy consumption during processing can also be accomplished by addressing and altering the cooking techniques themselves. Research carried out by the University of Lincoln, UK in collaboration with industry partner OAL, found that using novel approaches to a process called Steam Infusion can reduce energy consumption by seventeen per cent, cutting close to nine tonnes of greenhouse gas emissions per production line each year. Steam Infusion technology is unique in that it reduces carbon emissions directly at the site of manufacturing, which can support businesses’ plans to incrementally cut emissions throughout their facilities, while the technology enables alignment to UN Sustainable Development Goals. As well as the ongoing issues that producers and processors have been facing for many years now – including staff shortages and the continuing skills gap – more challenges have arisen over the last twenty-one months. Namely, © stock.adobe.com/Monkey Business 14-17.qxp_Layout 1 04/04/2022 15:13 Page 3www.blmforum.net Business Link 17 FACTORY AUTOMATION SPOTLIGHT Tel: 01482 325676 • Email: sales@kingston-engineering.co.uk • www.kingston-engineering.co.uk Kingston Engineering are specialists in precision engineering, based in Hull. As one of the region’s leading companies in their sector, Kingston Engineering can provide specialised power screw products, specialist leadscrew and ex-stock power nuts and screws. In addition, they can provide expertise and guidance in factory and production machinery installation, commissioning, maintenance and repair. social distancing measures and self- isolation. The impact COVID has wrought on the industry cannot be overstated. Despite a relative return to normal, coronavirus remains a very real concern for many companies, especially with spiking rates in China and the possibility the same could once again happen here (if not with COVID then with some other, future, pandemic). Companies are now aware of just how prepared they need to be, so that the next pandemic doesn’t leave them with the constant fear that production can be impacted, or halted entirely, due to an on-site outbreak or a high number of staff self-isolating. These issues are being mitigated and managed with the use of collaborative robots. These robots – often termed ‘cobots’ – are cost-effective, safe and flexible to deploy, making them an increasing popular option in factories. Added to this is the fact that, as the name suggests, they are collaborative, designed to share a workspace with humans. They can allow even small and mid-sized companies to automate where before it would have been prohibitive or even impossible before. Although cobots have far-reaching applications and capabilities across the entire industrial spectrum, where the manufacturing industry is concerned, they are ideally suited to work alongside humans in delicate processes such as pick and place – though a risk assessment will need to be undertaken first. With all that in mind, many have touted cobots as the future factories. Looking at the data, it’s hard to disagree. Research from Interact Analysis found that in 2018, global revenues from cobot production exceeded $550 million – an almost sixty per cent increase over 2017. The market researcher forecasts that revenues for cobots will reach $5.6 billion in 2027, accounting for almost one-third of the total robotics market. There’s no single solution to meeting the ongoing challenges facing the manufacturing industry. However, automation and smart technologies can not only boost efficiency and output but can also help to reduce carbon emissions. Now, more than ever, automating is affordable and within reach for smaller firms. The future is indeed now. 14-17.qxp_Layout 1 04/04/2022 15:13 Page 418 Business Link www.blmforum.net HEALTHCARE H ealthcare insurance plans for businesses are a substantial investment and additional expenditure for business owners and employers and sometimes it might feel unnecessary. However, there are several benefits that come with providing employees with a business healthcare plan, and not just for the employees themselves, but for the employer as well. Even the most basic business healthcare plan offers employees a series of perks and advantages that are meant to make people’s lives easier and allow them to get easy access to the highest of standards of private healthcare without having to suffer NHS waiting lists and times. A business healthcare plan prevents absenteeism and boosts productivity. If ill employees are able to get treatment quickly, they will also be able to go back to work quickly once treated. Further, healthcare plans often allow employees to extend the coverage to their immediate family, like spouses and children; this feature too boosts productivity and allows employees to focus on working without having to worry about the health and wellbeing of their loved ones. Healthcare insurance companies have been offering a lot of services that provide cover for cancer and related costs, like access to cutting edge There are several reasons why a business healthcare plan is extremely beneficial for both employers and employees, despite the initial investment. If you have never considered investing in a business healthcare plan, it might be time to start thinking about it. A brilliant benefit There are several reasons why a business healthcare plan is extremely beneficial for both employers and employees, despite the initial investment. If you have never considered investing in a business healthcare plan, it might be time to start thinking about it. 18-21.qxp_Layout 1 04/04/2022 15:14 Page 1www.blmforum.net Business Link 19 HEALTHCARE © stock.adobe.com/ jirsak technologies, treatments and drugs, the possibility to choose whether to do chemotherapy at home or in a clinical facility, coverage of costs of wigs and other prosthetics, coverage of scalp cooling treatments and access to home nursing or hospices. Because cancer unfortunately hits a large part of the population, this kind of offer represents an incredible asset for employees. Lately, healthcare insurance providers have also been focusing on mental health and have been offering not just access to services, councillors and practitioners, but to helplines and support services too, stressing the importance of mental wellbeing in the work environment. There is a series of add-on services insurance companies offer to make business healthcare plans more inclusive, like dental, physiotherapy, optical, along with access to scanning, faster diagnosis and prescription services. The number and quality of add-ons depend on the coverage the employer wants to provide the employees with and how much they are willing to spend for it; costs of insurance packages depend on several factors, like average age of the employees, occupation and type of work, where the business is based and where the employees live and obviously what type of services the employer wants to get covered. 20 Á 18-21.qxp_Layout 1 04/04/2022 15:14 Page 2Next >