< Previous10Business Link www.blmforum.netSomething to say? Write to: Business Link Magazine, Armstrong House, Armstrong Street, Grimsby,North East Lincolnshire DN31 2QE or email: letters@blmgroup.co.ukReaders’LETTERSReaders’LETTERSOn the upDear Sir,I was interested to read the latest positive set ofemployment figures, which just goes to show that ourflexible jobs market works. Firms are hiring at a fasterpace, the number of people out of work is at a five-yearlow and the majority of new jobs are full-time. I’ve alwayssaid that as growth picks up more people will feel thebenefits. Businesses are creating jobs across all sectorsand real wages in the private sector are rising. Long may itcontinue.J RawlingsYorkBuilding blocks of growthDear Sir,Ed Miliband’s recent speech on promoting regional growth wasinteresting. I believe we need to do more to promote growthacross all parts of the UK, by having a coherent industrial strategythat drives trade and investment and plays to local strengths.After a slow start, some LEPs are starting to make an impact – asyour recent report on Lincolnshire’s SME funding revealed.Further action to strengthen these bodies alongside challenginglocal authorities to work together more effectively is a goodinitiative.The focus should be on getting Britain building - to lay theessential foundations for growth. Better roads, train links, morehigh-speed broadband and more housing.D StrawsonWakefieldShow us the moneyDear Sir,As your recent budget reportsuggests, confidence is beginning totranslate into increased demand forgrowth finance across firms of all sizes.It’s particularly encouraging to seeanother uptick in long-term capitalinvestment activity, which will helpcontribute to a sustainable recovery.But the improving conditions for largerbusinesses now need to filter throughmore widely. Banks have a crucial roleto play in the economic recovery andmust step up to the plate and supportlending to smaller firms too.H RobertsScunthorpeReaching out Dear Sir,The size of the exports prize for public servicesfirms in emerging markets is growing at a rate ofknots, driven by a ballooning middle class and anageing population. This is a huge opportunity for UKbusinesses, which have an established track recordin many key growth areas like health, transport andrecycling. But winning public contracts in thesecountries is often an uphill battle, so firms need a legup. I agree with the CBI which wants the UKGovernment to set up contracting agencies withpriority markets, to help them navigate theprocurement maze. I, like them, also want the EU-UStrade talks to prioritise public procurement.D BarrocloughLeeds10:Layout 1 29/4/14 09:08 Page 1Business Link 11www.blmforum.netFINANCE & BUSINESS BANKINGAlthough Britain’s banks now seem tobe over the worst of the bail-outs andbonus scandals of the past few years,the recent problems at the top of theCo-Op Bank mean that for many, thereare still concerns – and for businesseslooking to obtain financing, this canlead to something of a dilemma.The banking sector certainly seems inmuch ruder health than previous years.The latest ICAEW/Grant Thornton UKBusiness Confidence Monitor has foundbusinesses in Yorkshire andLincolnshire are expressing aboveaverage confidence in their economicimprovement – now standing at +46.6,well above the UK national average of+37.2 – and banking is one sector thatis reporting particularly strong profitsand employment growth. But what doesthis success mean for those who needto lend?Although much work has beencarried out by the government in recentyears to encourage the banks toprovide more lending opportunities forbusinesses, many companies still reportdifficulties when approaching theseinstitutions. Indeed, lending cansometimes be hard to obtain thanks tothe banks applying particularly tightcriteria when considering a businessloan, such as having a good businessplan, a solid track record and certainpersonal and property guarantees.It’s perhaps understandable that, sincethe credit crunch, banks are oftencautious about with whom they invest,and have therefore increased theirprotection schemes to avoid potentialdisasters. Yet this is no benefit for thosestarting up their first company, orworking in high risk industries such asproperty developing, where even thoughthey may have an exceptional businessplan and a host of talent involved, banks12 Rosehill Polymers in Sowerby Bridge is using a £250,000 businessloan from Finance Yorkshire to boost its expansion plansSupport youcan bank onIdeas require investment – and there’s a growing number of opportunities to obtain it11-13:Layout 1 29/4/14 09:27 Page 112Business Link www.blmforum.netcan still get cold feet if the benefits aren’timmediate and obvious.That’s not to say that banks aren’tlending at all, and numerous companiesin our region have benefited fromfunding from financial institutions. Forexample, MTS Nationwide of Wakefieldis extending its hire fleet and opening itsfirst Scottish base after receiving a£500,000 funding package fromYorkshire Bank. The deal was arrangedby Pete Sumners, business developmentmanager at the Bank’s Business andPrivate Banking Centre in Leeds.A substantial proportion of thefunding provided by Yorkshire Bank willbe used to boost MTS Plant Hire andSales’ hire fleet, while the expansion isexpected to support four new jobsinitially, with scope for the creation offurther employment as business grows.Pete Sumners says, “Businessconfidence is beginning to grow and itis extremely rewarding to know that wecan play a part in supporting theaspirations of ambitious and innovativefirms like MTS.”Despite this success, manycompanies are looking towards otherforms of finance, and Finance Yorkshireare reporting record numbers ofattendance at their annual roadshowsto learn more about the success of itsinvestments in the region’s SMEs. Morethan five hundred financialintermediaries were at the fourroadshows held in York, Leeds, Hull andSheffield, each one supported by theLocal Enterprise Partnerships.Alex McWhirter, Chief Executive ofFinance Yorkshire, says, “There was areal appetite among the audiences atthe roadshows to learn more about thesuccessful investments we have alreadymade as well as the fundingopportunities that continue to beavailable to Yorkshire and HumberSMEs. We are seeing strong demand forinvestment from businesses – a factorreinforced by the considerable interestshown at the roadshows – and we areconfident of making further significantinvestments across a wide range ofsectors in the coming months.”The latest figures reveal that morethan £68 million has been invested inSMEs by Finance Yorkshire – equatingto a total of 545 investments. Amongthe most recent includes the £600,000equity investment into Hull-basedEnvirodoor. Managing Director Markde-Villamar Roberts says, “Theinvestment from Finance Yorkshire hasprovided the support we needed notonly to maintain our position as a keyplayer in the European specialist doormarket, but to grow. The investmentwill be used to support the company’smarketing, recruitment and researchand development programmes.” Meanwhile, Rosehill Polymers inSowerby Bridge is using a £250,000business loan from Finance Yorkshire toboost its expansion plans. The fundinghas been used to assist with thepurchase of new plant and machineryto support the development of a newproduction line at its head office. Dr Alex Celik, Group MD at RosehillPolymers, says, “Our aim is to increasesales across all sectors, especially in theoffshore energy, rail and highwaysmarket where we have witnessed themost significant growth. FinanceYorkshire has enabled us to start ourexciting expansion project and hasprovided the catalyst for our biggerPHOTO: SHUTTERSTOCK.COM/RONFROMYORK11-13:Layout 1 29/4/14 09:27 Page 2Business Link 13www.blmforum.netFINANCE & BUSINESS BANKINGplan, which we hope to be an overall £4million investment in our company.”This isn’t the only funding option,however, and many of the LEPs,Chambers and Councils can locate andidentify funding opportunities forbusinesses in their region, often thanksto the work of the Regional GrowthFund. One recent success story camewith Lincolnshire Chamber of Commercewhere, following support from theGreater Lincolnshire LEP, the FSB andLincolnshire County Council, they havereceived a £2 million pot which willbecome the Greater LincolnshireBusiness Capital Growth Fund.This is a capital grant programmewhich will provide grant funding on acompetitive basis and support forbusinesses in preparing an application.Grants ranging between £10,000 and£250,000 will be available to localbusinesses and inward investors.Simon Beardsley, Chief Executive ofthe Lincolnshire Chamber ofCommerce, says, “We have beenlistening hard to what our members andcounty businesses have been sayingabout the challenges they faceaccessing business finance. As a resultwe have actively searched for newfunding streams that will help addressthe problem. This news will be mostwelcome to companies that have highgrowth potential but need financialsupport to make the next move.“The dedicated business advisor willbe beneficial to SMEs who have growthpotential but may have been put off inthe past by the amount of paperworkneeded to benefit from such a scheme.Through the RGF funds, our emphasiswill be on helping Greater Lincolnshirecompanies grow and develop, which inturn will create new jobs and supportthe local economy. Giving businessesaccess to finance which will supporttheir capital expenditure aspirations willalso put them on a level playing fieldwith other regions of the UK that havebenefited from this support in the past.”Elsewhere in our region, funding isalso on offer. York, North Yorkshire &East Riding Enterprise Partnership andLeeds City Region Local EnterprisePartnership have combined to offerBusiness Support Grants to businessesin their region.Seven York firms – Choc Affair,Eborcraft, Andrews Signs and Engravers,Trustspan Timber Engineering, Mercersof Yorkshire, Yorvale Ice Cream andMuddy Boots Nursery – are among thelatest to benefit from this. Jill Andrews,owner of Andrews Signs and Engravers,says, “We recently submitted anapplication for funding to the LocalEnterprise Partnership to invest in newequipment and it was assessed andapproved within a week. The councilwere very helpful and the processcouldn’t have been easier.”It’s clear that money is available forlocal businesses if the ideas forinvestment are there, and schemes suchas the Regional Growth Fund offeralternative funding opportunitiesinvolving organisations with a particularinterest in the well-being of their region’scompanies. With the banking sectorenjoying improved confidence too, youwould expect that loans would be moreforthcoming, so the potential is certainlythere if you’re confident of your businessplan. In all instances, our region’saccountants and advisors will be able topoint you in the right direction.Finance Yorkshire are reporting recordnumbers of attendance at their annualroadshows to learn more about thesuccess of its investments in the region’sSMEsGrants ranging between £10,000 and £250,000 will be available tolocal businesses and inward investors11-13:Layout 1 29/4/14 09:27 Page 3RELOCATION & COMMERCIAL PROPERTY14Business Link www.blmforum.netThe north/south divide is often something that comes upwhen discussing Yorkshire and Lincolnshire’s fortuneswhen compared with the rest of the country. Recently,figures have been revealed that foreign investors havespent nearly £1 billion buying up chunks of commercialproperty in the Yorkshire region over the last two years,where London in the meantime, failed to hit the mark forplace or price.Over the past ten years, overseas investment accountedfor a relatively modest 12% of investment into Yorkshire’scommercial property market. However, figures from KnightFrank’s latest Wealth Report, for 2012 and 2013 combined,show overseas investment in the region has accounted formore than a third of total investment, with just under £1billion worth of transactions.Ultra High Net Worth Individuals, the richest people in theworld, have become increasingly interested in investing incommercial property assets, primarily attracted by London,but with other cities in the UK like Sheffield and Leeds oftenproviding the most efficient and cost effective solution forinvestors.In South Yorkshire, investments included a £20 milliondeal in 2013 by a private Middle Eastern client for thelandmark ‘cheesegrater’, St Paul’s car park and casino/retailPHOTO: BANKS, LONG & COTheregionhas itYorkshire and Lincolnshire are undergoingchanging fortunes when it comes to commercialproperty. With more work being done toincrease relocation to the area, this could trulybe the start of something new.14-16:Layout 1 29/4/14 09:25 Page 1Business Link 15www.blmforum.netRELOCATION & COMMERCIAL PROPERTYunit on Arundel Gate in Sheffield.Strong interest led to a competitivebidding process.Bradford’s 117,000 sq ft GodwinStreet office development, head officeof Provident Financial plc, was securedin a £25.5 million deal just last monthby a Amercian-based investor, whileLeeds’ Princes Exchange, home to DLAPiper and Regus, was purchased by aSwiss company for £36.6 million in2012.Leeds is also a city seeing other high-profile investment coming its way in theshape of Teach First’s residentialtraining events, which will be worth£5.5 million to the city this year andnext. The successful bid for this camefrom Leeds Metropolitan University andthe University of Leeds.The universities worked together tosecure the University-based element ofTeach First’s Summer Institute, a hugeevent which, in previous years, hastaken place at the University ofWarwick. Partners First Direct Arena,and accommodation providers Unite,Downing and Grey Star, will provideadditional venue space and bedroomsfor the delegates’ 28,000 bed nights.Teams from Well Met Conferencing atLeeds Metropolitan University andMEETINLEEDS at the University ofLeeds spent months in talks with TeachFirst’s congress consultants, vfi 360,who explored over 45 different cities onbehalf of Teach First, Leeds winning thebid based on its’ scope for developmentand ease of access.It is the first time the universities havecollaborated so closely on an event,and it is hoped that this will provide amodel for attracting further large-scaleevents in the future.From 19th July to 2nd August, morethan 3,000 delegates will attend the finaltwo weeks of Teach First’s SummerInstitute, where they will be providedwith seminars, tutorials and socialactivities to prepare them for teachingin schools in England and Wales fromSeptember.Professor Susan Price Vice Chancellorof Leeds Metropolitan University, says,“We are incredibly proud to be part ofthis collaborative project and to havesecured an event of such high profileand stature. It is not only great forLeeds – which now can prove that it hasthe capability and the muscle to hostcongress business of this kind – it alsodemonstrates that when we combineforces, Leeds Metropolitan Universityand the University of Leeds are aformidable partnership.” Vice Chancellor of the University ofLeeds, Sir Alan Langlands, says, “Thisclosely-knit collaboration betweenourselves and Leeds MetropolitanUniversity has been absolutely crucial16 Lincoln recently welcomed a delegation ofChinese business figures to the city whereChinese investment has already had an impact.Investment in Lincoln’scommercial property isevident, such as thenew Joules store at294-295 High Street.Recently, figures have been revealed that foreign investors havespent nearly £1 billion buying up chunks of commercial property inthe Yorkshire region over the last two years14-16:Layout 1 29/4/14 09:25 Page 2RELOCATION & COMMERCIAL PROPERTY16Business Link www.blmforum.netto the success of this bid. We havelearnt that together we can achievegreat things for Leeds, as neitherpartner would have been able to securethis event without the help of the other.The Teach First Summer Institute willbe a vibrant addition to the city’sconference calendar.”Looking up for LincolnshireIt’s not just in Yorkshire that demandis increasing. For example, demand forcommercial office space atGainsborough’s Marshall’s Yard hasstepped up in recent months – seen asa sign that the region is starting to seeeconomic recovery.A number of commercial units at theMarshall’s Yard’s Pattern Storedevelopment have been let recently.A&C Cycles and ACE Studio have bothconfirmed they’re taking space at thePattern Store - showing there can bealternative uses made out of office unitsand the benefit of running a thrivingbusiness from the town centre’sshopping centre. Jackie Helliwell, Marshall’s Yard’sCentre Manager says, “We have beenfortunate through the difficult economicclimate to keep an excellent occupationrate within the office sector atMarshall’s Yard and rarely havinganything other than 100% occupancy inthe retail units.“It’s fair to say however that we didsee the number of enquiries dip in thelast couple of years but since we’vegone into 2014 there has definitely beena shift and we are getting moreinquiries about our commercial andoffice space. “We now only have two office unitsleft available for the first time since thecentre opened. We are also fully let stillon the centre itself with a waiting list inplace for retailers eager to come on andadditional space recently createdespecially for new tenants MountainWarehouse and Poundland.”There’s already been investment inLincolnshire from Chinese companies,but even more efforts are being madeto encourage further trade from theeast. The Chinese Embassy’s Ministerfor Economic and Commercial Affairsand a delegation recently visited Lincolnto see how the city is strengthened byits two sister city arrangements. City of Lincoln Council Chief ExecutiveAndrew Taylor invited the group to visitthe city and meet key local stakeholdersrecently at the Guildhall. Guests, including seniorrepresentatives from the Chamber ofCommerce, Dynex, the three highereducation institutions, LincolnshireCounty Council and the China BritainBusiness Council, were hosted by theMayor and Chief Executive anddiscussed opportunities to maximisethe potential of the City Council’s links Lincoln has a long-standingcollaboration with Tangshan and therelationship between the city andcountry was added to only weeks agowhen a similar arrangement was signedwith Nanchang. Chinese International Students whochoose to study in the city are alreadyestimated to bring in more than £32million to the local economy each year. Minister Counsellor Zhou Xiamongsays, “We have been deeply impressedby the beauty of Lincoln and itsgrowing connections with China. “We see strong potential for tradeand investment in both directions,especially education, advancedengineering particularly as the ties withthe sister cities of Tangshan andNanchang grow.” It’s looking like 2014 may well be aturning point for inward investment andcommercial property prospects. Asense of hope and optimism, ratherthan doom and gloom is taking overand it is refreshing to see so muchhappening.Leeds Metropolitan University’s ViceChancellor Professor Susan Price, TeachFirst’s Director of Leadership, ReubenMoore and the University of Leeds’ ViceChancellor Sir Alan Langlands.14-16:Layout 1 29/4/14 09:25 Page 3BUSINESS SCENEFor the last time this season, the Lincoln Sportsmans Clubwelcomed some sporting legends to the Bentley Hotel in Lincoln.The star guests this time were two former stars of NottinghamForest.Mark Crossley and Steve Hodge together made some sixhundred appearances for the famous old club when it was aregular in the top flight. Mark was renowned for his penalty-savingheroics, being the only keeper to foil Matt Le Tissier from thepenalty spot, while Steve played for England in the 1986 WorldCup and famously swapped shirts withMaradona.Mark and Steve both told tales from theirlong football careers and presented adonation to Abbie Donnelly, Rebekah Wardand Catrina Thomas, members of theLincoln Wellington Club, who are hotlytipped as some of the UK’s most promisingmiddle distance runners.Although this was the Club’s last dinner ofthe season, they will be holding their hugelypopular annual Spring Ball on Friday 9thMay, which features live music and is one ofthe city’s top social events.The Kelly Bloom partyDavid Winfield, Glynn Hardy, Russell and Dave WardNeil Smith and WayneMcKintoshPHOTOS BY RICHARD PICKSLEYAbbie Donnelly, Rebekah Ward, Catrina Thomas, Mark Crossley, Steve HodgeForest favourites inLincolnPaul Coldron, Phil Grundyand Eric GledhillMartin Morgan, AndyPerry and ScottMorganThe Pete Hammond partyBusiness Link 17www.blmforum.net17:Layout 1 29/4/14 09:09 Page 1SUPPLY CHAIN MANAGEMENT18Business Link www.blmforum.netThe recent announcement ofSiemens’ investment in our region hasbeen hugely welcomed by many – andnot just those in the renewable energysector. It’s definitely the case that itsarrival will have a huge impact on manyaspects of the local economy, and willparticularly emphasise Yorkshire andLincolnshire’s prowess when it comesto the supply chain.As Richard Wright, executive directorof Sheffield Chamber of Commerce,points out, “This major investment isgood news for the Sheffield City Regionbecause the decision to source andassemble the manufacturing facility inthe UK should benefit our engineeringsupply chains.“Renewable energy is always goingto be a major part of the futureeconomy and it needs to be a biggerproportion than it currently is. Investingheavily in wind energy from the NorthSea highlights two other big investmentrequirements - the need for a moreeffective distribution system and theneed to store energy being generated.Our requirements will always be patchyso storing the energy effectively willallow us to tap into that power whenrequired.”The importance of effective supplychain management for the renewableenergy sector is one of the majoraspects that will be discussed at theforthcoming Global ManufacturingFestival at Sheffield’s AdvancedManufacturing Research Centre in June.This is the biggest supply chain eventfor companies involved in specialmaterials, metal forming and precisionengineering in the UK and emphasisesthe region’s role as a vital cog in thesupply chain.The arrival of major Europeanbusinesses in this sector is testament toour region’s position as a leadinglogistics hub – with exceptionaltransport facilities to both the rest of theUK, and the wider world. Many bluechip companies have taken theopportunity to locate majorwarehousing and distribution facilities,and in recent months Marks & Spencerhave taken 626,000 sq ft over twobuildings at SIRFT in Sheffield andWren Kitchen purchased of the formerKimberly Clark facility at Barton-Upon-Humber comprising 801,350 sq ft. The408,000 sq ft taken by SCA TimberSupplies and additional 140,000 sq fttaken by ASOS in Barnsley alsoillustrate the quality of, and demand for,the supply chain infrastructure in ourpart of the world.These large scale developments areproving particularly valuable at a timewhen home shopping becomes morepopular. In this case, distributionAs the supply chain gets longer and more complex, Yorkshireand Lincolnshire is excelling in providing the skills andsupport to guarantee qualityOperations such as Asda’s HomeShopping Centre in Morley in Leedsnow take over the responsibility for alarge geographical areaStrengthening thesupply chains18-21:Layout 1 29/4/14 09:28 Page 1Business Link 19www.blmforum.netSUPPLY CHAIN MANAGEMENTcentres find themselves not justworking as a hub where huge quantitiesof products are sent out in bulk tonationwide retails, but also as a kind of“virtual supermarket” themselves.Whereas internet shopping orderswould previously have been handled byindividual branches, operations such asAsda’s Home Shopping Centre inMorley in Leeds now take over theresponsibility for a large geographicalarea.The advantages of a developmentsuch as this is that, rather than havingto work around shoppers in a busystore, orders can now be made up anddispatched to individual consumers in acontrolled setting not open to thegeneral public. It allows for muchgreater flexibility and convenience,using a conveyor system to speed upthe process and more accuratelymonitor the products being sold. Thisdoes, however, require substantiallymore space, hence the value of largescale developments.The emphasis on scale means thatconsolidation is now a familiar part ofthe supply chain, and there are obviousadvantages with this approach. In thepast everything was carried out in-house but these days outsourcing andcollaboration have become much morecommon, allowing for huge savings tobe made in maintaining and managinglarge scale warehouses and anextensive fleet of vehicles. Thisapproach also has obviousenvironmental benefits, as vehicles areonly used when they’re required andcan save space by transporting goodsfrom numerous companies at once.To emphasise this new approach, ahuge number of logistics specialists arenow working together under theumbrella of PLUS Logistics. Launchedby the national Palletline network, theintention is to offer the UK and Europea new range of contract logisticsservices, including warehousing andstorage, through the night, pick andpack and consolidation services,through to click and collect, through thecombined resources of 69 memberorganisations working across 79locations. This provides the opportunityfor the companies to collaborate andwork effectively as an organisation andwin larger contracts.Consolidation does bring with itissues of traceability and it’s vital that,when making use of networks andpooled resources, everyone involvedcan accurately locate and identify thespecific products at every step of theway. The changes in the industry20 A huge number of logisticsspecialists are now workingtogether under the umbrella ofPLUS Logistics18-21:Layout 1 29/4/14 09:29 Page 2Next >