< PreviousUniversity engineers 3D print face shields Engineers from the University of Sheffield are responding to a national call for help in the fight against coronavirus by 3D printing face shields. The response, led by Dr Pete Mylon from the University’s Faculty of Engineering, is utilising the engineering facilities in the university’s Diamond building to rapidly manufacture face shields for frontline NHS staff working in hospitals and healthcare practices. Following a national call for help made by the 3DCrowd UK initiative to provide PPE to healthcare workers using 3D printing, Dr Mylon got to work by assembling an interdisciplinary team of engineers with a range of different specialisms. The team has developed a manufacturing process that allows them to maintain social distancing. All materials entering the building are cleaned and the completed face shields are disinfected prior to shipping. Following their quick response, the University of Sheffield team is now the Yorkshire hub for the 3DCrowd UK initiative. 10 Business Link www.blmforum.net NEWS COVID-19 Our region’s response to coronavirus Mattress maker works 24/7 to meet NHS demand A Wakefield-based foam mattress maker is working around the clock to help the NHS meet the urgent need for thousands of extra beds. GNG Group has dedicated all production to its healthcare division and has mobilised its entire workforce which is now working 24 hours a day to meet the massive demand during the coronavirus crisis. The company, which manufactures sports, healthcare, safety and mattress products, has paused production in all other divisions in order to enable a 90-strong team to focus on production of healthcare mattresses destined for the NHS Nightingale project and several key NHS suppliers manufacturing hospital beds. Having recently been awarded ‘key supplier’ status by the NHS, GNG’s 40,000sq ft production facility is now operating three shifts 24/7; and has increased the capacity of its healthcare division tenfold. As well as having thousands of healthcare mattresses on order for the UK, GNG is also receiving enquiries from Europe and the US. Kromek to manufacture medical ventilators for COVID-19 fight Kromek, a listed supplier of detection tech, is to begin manufacturing and selling medical ventilators for the fight against COVID-19. The company, whose R&D centre is based in Huddersfield, will make and sell the ventilators in the UK and globally under a license from Metran, a Japanese developer of medical products and technology. Production is expected to begin before the end of April and Kromek said it will produce up to 1,000 units within eight weeks with up to 2,000 within twelve weeks. “We have been working through the British Embassy in Japan with substantial help from the Department of International Trade and are delighted to be progressing this technology transfer,” said Dr Arnab Basu, CEO of Kromek. “By combining our existing manufacturing skills with Metran’s proven technology, we expect to commence the manufacture of these robust ventilators from next week and deliver in a rapid manner.” Clinova accelerates Covaflu respirator production Science-led consumer healthcare company Clinova, co-founded by Yorkshireman Arsalan Karim, is increasing production of its respirator flu mask – Covaflu – to five million per month to support the UK government. The move will help provide both NHS and key workers with the personal PPE they need to help fight the COVID-19 pandemic. Clinova recently agreed to supply 500,000 FFP2 Flu Masks to staff at Lloyds Pharmacy, Britain’s second- largest pharmacy chain. Ocado and WHSmith have also agreed to list Covaflu to allow their customers easier access to flu masks. “We have increased the production of our masks by more than 5 million a month in order to support the essential work being done by the NHS at this time of increased need,” said Mr Karim. “It’s important that we ensure smooth supply for all UK businesses, hospitals and pharmacies during the pandemic to ensure the ongoing safety of frontline workers. We have also added a Pandemic Flu section in our Caidr app with detailed information on the signs and symptoms of COVID-19 and some tips on how to reduce the spread of the virus.” Arnab Basu, CEO with Ventilator © Doug Moody Photography 06-12.qxp_Layout 1 06/05/2020 09:38 Page 5www.blmforum.net Business Link 11 NEWS COVID-19 AMRC produces AR headsets to manufacture medical ventilators The Advanced Manufacturing Research Centre (AMRC) in Sheffield has produced augmented reality (AR) headsets enabling aerospace and automotive production line operatives to rapidly switch to the manufacture of medical ventilators. The AR equipment is critical to the success of a powerful industrial consortium which has come together to accelerate the production of thousands of ventilators before the COVID-19 pandemic reaches its peak and risks overwhelming the ability of NHS doctors and nurses to treat a sudden surge in patients suffering from the virus. The industrial consortium, Ventilator Challenge UK, came together after the Prime Minister, Boris Johnson, made a plea for an additional 50,000 ventilators to be delivered to the NHS within a matter of weeks. “What we are seeing in South Yorkshire and in North Wales is part of a truly nationwide and global response to the COVID-19 pandemic,” says the AMRC’s Head of Digital, Professor Rab Scott. Avacta to co-develop, manufacture rapid test for COVID-19 Wetherby-based biopharma, Avacta Group, is collaborating with Cytiva to develop and manufacture a rapid test for COVID-19. Together with Cytiva (formerly GE Healthcare Life Sciences), AIM listed Avacta will manufacture a point-of-care rapid test based on its Affirmer biotherapeutic technology. The test will be intended for screening of large populations to diagnose the COVID-19 coronavirus infection. Avacta is already generating Affimer reagents that detect the COVID-19 virus and together with Cytiva will develop and manufacture a test capable of diagnosing the infection in minutes using a respiratory sample such as saliva. Cytiva will transfer this diagnostic assay onto its proprietary point- of-care test strip platform and both companies will work together to complete analytical and clinical validation of the test as quickly as possible. Avacta will own the intellectual property relating to the COVID-19 Affimer-reagents and will retain all the commercial rights to future products. © Avacta Group An Affirmer molecule Forgemasters devotes 3D printing to manufacture NHS visitor components Sheffield Forgemasters has devoted its 3D printing facility to help protect vulnerable frontline NHS workers and assist in the UK’s fight against the COVID-19 pandemic. The steel casting and forging specialist’s Research, Design and Technology (RD&T) department has started to produce 3D printed components for protective visors used by NHS staff, in response to a request from 3D print solutions provider, Solid Print3D. RD&T uses its 3D printing output to produce models and prototypes for ultra-large, complex steel components, but with the ability to 3D print the visor components, the business is more than happy to play its part in assisting the fight against the pandemic. “We normally use our 3D print output to establish what we can achieve in large-scale engineering terms and so it is very much utilised on a bespoke basis rather than for production runs, but we are up for the challenge and really want to help out,” said Forgemasters CEO, David Bond. 06-12.qxp_Layout 1 06/05/2020 09:38 Page 612 Business Link www.blmforum.net NEWS COVID-19 Our region’s response to coronavirus Burberry begins manufacturing PPE at Yorkshire factory Listed fashion brand, Burberry Group, has begun manufacturing personal protective equipment (PPE) at its trench coat factory in Castleford, West Yorkshire. According to CEO Marco Gobbetti, the factory is manufacturing non-surgical gowns for use by frontline medical and care workers. The group is also supply surgical masks through its supply chain and supplying them to the NHS and charities such as Marie Curie. To date, it has donated more than 100,000 pieces of PPE. The group has taken a number of key steps to reduce spend on non-essential areas – such as pay cuts for senior leaders – and redirected to vital areas of the business. Monies will be going towards procuring and distributing PPE, helping foodbanks and supporting healthcare charities around the world, the group said. © Burberry Yorkshire gin maker switches production to hand sanitiser A Yorkshire gin and whisky distillery backed by the University of Hull has swapped production to hand sanitiser to combat the spread of COVID-19. Cooper King Distillery, founded by Chris Jaume and Abbie Neilson in 2016, received support in its early years from the SparkFund, a grants programme for SMEs delivered by the University of Hull. The business, which now supplies retailers including Harvey Nichols and Ocado, was hit hard by the outbreak of Coronavirus, and lost around 85 per cent of its trade overnight. The founders took the bold decision to switch production from gin to hand sanitiser, to play their part in tackling the spread of COVID-19. Products are sold to individuals and businesses, with profits being donated to the NHS and health organisations in the form of free sanitiser. Cooper King Distillery, based near York, has to date produced around 1,000 litres of sanitiser for the public, A&E departments, ICU units and mountain rescue organisations across the country. Hull Uni raises funds for face shield materials A University of Hull appeal to raise £25,000 for additional materials to meet the high demand for the production of face shields for the NHS and other healthcare organisations in the region has raised more than £22,500. The campaign will fund the increase in materials needed for the production of the new face shield design partnership project being led by engineers at the University of Hull. “This project is delivering vital equipment at a time of unprecedented and critical need. It has already seen incredible success and is testament to the value of working together to achieve remarkable results,” said Professor Susan Lea, Vice Chancellor at the University of Hull. “The response from the healthcare staff who are receiving this much-needed equipment, through to that of our graduates who have crowdfunded the increase in materials needed for us to keep up with demand, has been uplifting and inspiring.” © Shutterstock/Wright Studio 06-12.qxp_Layout 1 06/05/2020 09:38 Page 7Delivery Details Name:............................................................................................ Position:......................................................................................... Company:...................................................................................... 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Minimum term of 12 months / 1 Year 2 Years 3 Years Please charge my: Subscribe NOW Subscribe now and receive Business Link every month, delivered to your door www.blmforum.net Business Link 13 MANUFACTURING GROWTH PROGRAMME Yorkshire & Humber SME manufacturers need urgent financial support as job losses loom amid coronavirus crisis SME manufacturers in Yorkshire and Humber are calling for greater and faster financial support from the Government, as they confront plummeting sales, production volumes and the prospect of job cuts amid the ongoing COVID-19 pandemic. The latest Manufacturing Barometer, which surveyed 82 firms in the region, reveals a stark picture of how the virus is affecting industrial confidence, with 85% of respondents experiencing a drastic decline in production volumes, while a similar number (83%) are expecting sales to drop over the next six months. Conducted by the Manufacturing Growth Programme (MGP) and South West Manufacturing Advisory Service (SWMAS), the report also shows that 52% of firms believe they will need to cut jobs between now and October, despite the business grants on offer and the furloughing scheme designed to boost employee retention. The overwhelming majority of manufacturing SMEs surveyed (93%) say they require urgent financial support to get through the current climate, the largest number of any English region questioned. Only 13% are confident that the Government is doing enough to help the sector cope with the pandemic. Martin Coats, Managing Director of the Manufacturing Growth Programme (MGP), said: “COVID-19 is having a huge impact across Yorkshire and Humber, but it is especially problematic for our sector as manufacturing cannot be carried out remotely, relying as it does on physical interaction with machinery and parts. “Current restrictions and the ongoing lockdown measures mean that capacity is dramatically reduced, therefore the majority of businesses are reporting an unprecedented fall in production volumes. “Top of the wish list for SME manufacturers is stronger financial assistance and for Government to go ‘faster and further’. While the existing package of measures has been welcomed, there remains a pressing need for a deeper level of sector-specific advice and support.” For further information, please visit www.manufacturingrowthprogramme.co.uk/ market-data/barometer 13.qxp_Layout 1 06/05/2020 09:40 Page 114 Business Link www.blmforum.net PROPERTY The coronavirus crisis is changing the commercial property landscape with demand shifting in some quarters and spiking in others. Here we explore the effect on logistics and warehousing and how the office market is holding its own. © Shutterstock / Marina J From logistics to office space 14-17.qxp_Layout 1 06/05/2020 09:42 Page 1www.blmforum.net Business Link 15 PROPERTY T he continuing coronavirus crisis is having a two-fold effect on the commercial property market. As explored in our previous issue, the pandemic has led to a decline in investment transactions, leaving valuers unable to assess their properties, and stalling certain quarters of the market. However, the lockdown and other social distancing measures has led to a spike in online shopping and deliveries. Demand has been most keenly felt in the supermarket sector, with all of the nation’s biggest supermarkets drafting in hundreds – if not thousands – of extra workers to scale up their delivery services. But demand has been felt across a multitude of retail markets, with Amazon reporting a major spike in sales in its first quarter results. Meeting this unprecedented consumer demand has led to a rise in the need for short-term industrial space. Driven by demand for short-term space from supermarkets and the pharmaceutical and public health sector, some landlords are now considering short-term lettings to capitalise on the market shift. The latest ‘Industrial Outlook’ from real estate services firm, Cushman & Wakefield, reveals that despite the increase in demand for short-term space, total take- up of industrial space in the UK fell thirty- two per cent to 5.5 million sq ft across forty-one deals as many retailers operating in ‘non-essential’ sectors – such as fashion and homewares – temporarily close their online operations in response to employee health and safety concerns. The availability of industrial space edged up slightly during the first quarter of the year to 72.4 million square foot and is up by twenty-two per cent from the same period last year. The lockdown is also disrupting construction activity, with several speculative schemes paused or delayed. So far, 2.5 million square foot has completed this year with another four million square foot underway. Despite the current uncertainty, Cushman & Wakefield says that the long- term outlook for the logistics sector remains positive, with COVID-19 likely to accelerate ongoing structural trends such as a greater penetration of online shopping and manufacturers and retailers considering holding more stock domestically to protect themselves against future supply chain disruptions. “The Yorkshire and Humber markets continue to perform well with take-up exceeding the ten-year average,” said Dave Robinson, Partner, Logistics & Industrial agency at Cushman & Wakefield in Leeds. He highlights the strong start to the year, with the letting of the former 546,970 square foot Poundword unit in Wakefield to retailer The Range in January. There are also several existing buildings also under offer, he said, and some significant pre-lets in offering. Despite the pandemic, he said the outlook for the year “is positive”. “Whilst there is speculative development in South Yorkshire and to a less an extent in West Yorkshire, there remains a lack of deliverable opportunities,” he said. “The supply / demand imbalance does not look likely to change which points towards a continued trend of strong rental levels and land values. Opportunities will emerge for the sector as a whole and the Yorkshire market has an excellent supply of labour and operators ready to capitalise.” The escalation of the COVID-19 pandemic is also being felt in the investment market, with very few sales launched over the last few weeks and several deals put on hold. However, the firm says the long-term outlook for the sector remains optimistic. Looking at Leeds Where Leeds, specifically, is concerned, the office market remains positive despite the pandemic. Encouragingly, a new special COVID-19 report from estate agency Knight Frank suggests that the regional economy is strong enough to withstand the global pandemic. Indeed, work on some projects has begun and, in some cases, continued which the agency says underlines the “positive long-term” view on growth in cities across the UK. In Leeds, work is continuing on several crucial projects whilst, of course, observing social distancing rules. These include Rushbond’s Majestic (66,000 square fooot), Town Centre Securities’ 123 Albion Street, formerly the Cube, (60,000 square foot) and CEG’s first building at Temple, Globe Point which is 40,000 square foot. “In the marketplace, there is still a willingness to continue transacting but because of the challenges with conducting due diligence, the velocity of deal flow will inevitably slow down in the months ahead,” said Darren Mansfield, partner of commercial research at Knight Frank. “However, the market is more balanced than before the global financial crisis. Office vacancy across the UK cities is much lower in 2020 that it was at the onset of the crash. The development pipeline is also more constrained now. “As at March 2020, there was close to seven million square foot scheduled for 17 Á 14-17.qxp_Layout 1 06/05/2020 09:42 Page 2Armstrong house 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, the flexible in/out terms of contract mean confidence 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, give Scotts Property a call today on 01472 267000 and ask about Armstrong House. Last remaining office suites Prime location in Grimsby 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 Easy in/out terms A range of affordable office sizes 3 3 3 3 3 Armstrong House, Armstrong Street, Grimsby DN31 2QE Tel: (01472) 310301 • Email: s.fisher@blmgroup.co.uk www.shutterstock.com/terekhov igor www.shutterstock.com/Yentafern 14-17.qxp_Layout 1 06/05/2020 09:42 Page 3www.shutterstock.com/Yentafern www.blmforum.net Business Link 17 PROPERTY © Shutterstock /SAKhanPhotography completion across the UK cities between 2020 and 2022. Much of this has already been let with four million square foot speculative. Between 2008 and 2010, development completions were close to fourteen million square foot meaning market oversupply post crisis is less of a risk today.” Office space in Sheffield As with Leeds, our regions second largest city, Sheffield, has reported a positive office take-up for the first quarter of the year despite the coronavirus threat. According to the latest market statistics from Commercial Property partners reveals that during Q1, over 73,000 square foot of office space was transacted across Sheffield, both in and out of town. According to the data, seventy-three per cent of the deals related to city centre properties, with no evidence of a reduction in values due to the pandemic. The first quarter also saw an increase in the amount of floor space transacted in out of town deals, with 14,860 square foot let to commercial risks solutions company Aon at Hallamshire Business Park, located on the fringe of the city centre. Another significant out of town deal was the lease of 8,950 square foot office space to leading dispute resolution firm SSB Law at Navigation House, located at Victoria Quays in the city. “Sheffield has seen a successful start to the year with no evidence from the recorded transactions to suggest any immediate reduction in values, however, the terms of these deals will have been agreed before the extent of the pandemic was known,” said Rob Darrington, Partner at CPP. “The market is clearly strong but looking forward it is expected that office activity will be significantly lower due to the COVID-19 lockdown. The way occupiers use their office space will inevitably come under scrutiny, with many companies having to adapt to new working practices due to the current situation. “Given social distancing requirements some businesses may choose to designate more of the floor plan to break-out areas and meeting rooms, whereas others may look to adopt a more flexible approach to how they work, including encouraging home working, hotdesking, or taking advantage of local amenities including cafes.” Commercial property markets well positioned to weather the storm and, in many cases, are continuing business as usual. Experts agree that the regional market is well positioned to continue after the pandemic though, as with all areas of the corporate world, nothing will be the same as before. Expect changes ahead. DDS Roofing We are a local and independent roofing firm with over thirty years’ experience. We have been serving the local community for over ten years. All our team are friendly and professional and take pride in the high standard of workmanship that we provide. For more information, call us today! We cater for domestic and commercial clients in need of quality roofing for their homes or businesses. Our comprehensive range of services includes: • Roofing service • Re‐roofing • Slating • Tiling • Fascias and Soffits • General property maintenance 35 College Street, Grimsby, North East Lincolnshire DN34 4TN Telephone: 01472 267709 Mobile: 07980 962009 Email: derrick.saxby@homecall.co.uk 14-17.qxp_Layout 1 06/05/2020 09:42 Page 418 Business Link www.blmforum.net CORPORATE FINANCE L ate payments are one of the biggest pitfalls facing businesses, especially for smaller firms and start-ups. According to the Federation of Small Businesses, late payments contribute to 50,000 insolvencies every year, costing the economy £2.5 billion. Though much of the blame here lies with the billed party not paying in the specified time period, the companies themselves do bear some of the burden. The ‘Taking Notice of UK Business’ white paper found that as much as seventy-five per cent of SMEs would fear taking action against a late payment for fear of damaging client relationships. For these reasons, invoice finance has become a literal lifeline. This is the simplest means of releasing cash tied up in a businesses’ outstanding invoice. It essentially sees a business sell its invoices to a third party who will advance some of the funds it is worth up front for a cut. Thousands of businesses rely on this kind of financing to maintain a healthy cash position, whilst others use it to take back control of cash flow issues that arise from late and unpaid invoices. Perhaps the biggest draw is that businesses can be paid most of an invoice within forty-eight hours instead of the typical thirty-day period specified on most invoices. As with all forms of financing, however, there are things businesses should consider – namely the kind of invoice finance a company requires. There are several different kinds, from invoice discounting to spot factor, so finding the right one is key. It’s also important to look at individual providers themselves, as some will insist on managing credit control themselves which could, understandably, alienate some customers. Securing corporate finance can be a literal lifeline for struggling businesses, especially at a time when the entire economy is facing financial insecurity. Business Link explores the ways in which businesses can unlock funding and weigh up the pros and cons. lifeline Securing a 18-21.qxp_Layout 1 06/05/2020 09:44 Page 1www.blmforum.net Business Link 19 CORPORATE FINANCE Of course, invoice financing is far from the only finance solution businesses can draw from. Asset-based finance, for example, is a specialised method of providing companies with working capital and term loans that use accounts receivable, inventory, machinery, equipment and real estate as capital – essentially, any loan to a company is secured by one of that company’s assets. This option is commonly used to pay for expenses when there are gaps in a company’s cash flow, but it is also frequently used for start-up financing as well as refinancing existing loans, financing growth, mergers and acquisitions, as well as management buy- outs (MBO) and management but-ins (MBI). Although it’s not suited to meet every business requirement, it can prove useful for those that have stretched their credit limits with vendors and reached lending capacity at the bank. Private equity, on the other hand, is where investors provide long-term equity capital investment in a company in return for either shares, a percentage stake in the business and/or, sometimes, a seat on the board. The draw for businesses is that private equity can be used to finance MBOs, or to provide equity capital to support growth plans. Although many businesses might be loathe to dilute their ownership, private equity does offer a good option of raising capital for businesses that aren’t ready to list on the stock exchange. For those looking for capital quickly, it’s important to bear in mind that securing private equity is often a time-consuming process and securing funds isn’t always guaranteed. Another form of private finance is an © Shutterstock /Andrey_Popov 20 Á 18-21.qxp_Layout 1 06/05/2020 09:44 Page 2Next >