< Previous10 Business Link www.blmforum.net COMMERCIAL PROPERTY T hrough tragedy and adversity, there can often be found a silver lining. So it is with the pandemic with led to a highly successful, profitable year for the logistics industry. As we moved into 2021, this trajectory has continued unencumbered. Indeed, the ‘UK Logistics Market Summary’ for Q1 2021 from CBRE shows that total take-up reached 5.2 million square foot to include five deals signed within Yorkshire and the North East with total take-up reaching 0.9 million square foot. Specifically, Yorkshire and the North East regions saw an increase in prime big box rents in Q1, following in the footsteps of the other regions which saw rental growth during 2020. Lack of available stock for larger space is driving occupiers to look at smaller, built units to satisfy immediate demand requirements. Available space in Yorkshire and the North East fell by fifty-three per cent – down to its lowest point in more than four years with just 1.6m sq ft of space available. With that in mind, new developments have arguably never been more pressing of all kinds of warehousing and distribution. One of the biggest developments in recently months saw temperature-controlled food distribution business, Reed Boardall, complete work on the UK’s largest cold store – expanding its dedicated single site operation in North Yorkshire. As volumes through the company’s cold store and transport operation have continued to increase in line with the growth of customers’ businesses, Reed Boardall had put plans in place to expand capacity to 168,000 pallets prior to the start of the pandemic last year. With four state-of-the-art cold stores at the company’s 55 acre site in Boroughbridge, the 110,000 square foot extension to its newest cold store will give Reed Boardall capacity to handle its A spike in space With a spike in logistics take up across our region, this month we highlight a number of important new distribution are warehousing developments. customers’ continued growth going forward and to seamlessly manage peaks in usage. Led by Andrew Baldwin, MD of Reed Boardall’s cold storage division, the project got underway in March 2020 with Leeds-based Marshall once again acting as primary contractor. “Our customers’ ongoing organic growth has resulted in increased storage and distribution needs and we are happy to invest in the infrastructure which will enable us to continue to look after their best interests and to grow alongside them,” said Mr Baldwin. “We have undertaken this project to align ourselves with our customers, and, as a business, it’s vital that we continue to move forward.” Marcus Boardall, Chief Executive of Reed Boardall, added: “Despite intense pressure on the supply chain in 2020, we were able to undertake and complete the extension project on schedule. From the storage storage 10-13.qxp_Layout 1 01/06/2021 12:52 Page 1www.blmforum.net Business Link 11 COMMERCIAL PROPERTY 13 Á turmoil of the pandemic to uncertainties around Brexit, we and our customers have faced some real challenges over the last year, and this latest investment makes us well-placed to continue to swiftly and efficiently respond to our customers’ changing logistics requirements.” Continuing with the food theme, plans have been submitted to North East Lincolnshire Council for a new HSH Coldstores temperature-controlled storage facility at Developer Wykeland Group’s Europarc business park in Grimsby include three-storey offices and a refrigeration plant room, altogether adding up to 171,000 sq ft of floorspace. The £15 million development will create up to fifty new jobs at a business park on the south bank of the Humber. Family-run HSH Coldstores, which has South Lincolnshire Food Enterprise Zone (L-R) Graeme Richardson, Andrew Baldwin and Marcus Boardall inside Reed Boardall’s extended cold store 10-13.qxp_Layout 1 01/06/2021 12:52 Page 2Armstrong house Armstrong House, Armstrong Street, Grimsby 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 Easy in/out terms A range of affordable office sizes 3 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, 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 call 01472 310301. 10-13.qxp_Layout 1 01/06/2021 12:52 Page 3www.blmforum.net Business Link 13 COMMERCIAL PROPERTY three existing sites in the town and another at Redditch in the West Midlands, provides flexible supply chain solutions for frozen, chilled and ambient food products, offering cold storage, transport or both. Driven by growing customer demand, it is planning to expand its business by investing in the flagship new facility, which will accommodate HSH’s fleet of Large Goods Vehicles, with 28 dock doors for loading and unloading goods. The planning application is for a temperature- controlled storage facility, three-storey offices and a refrigeration plant room, altogether adding up to 171,000 square foot of floorspace. “This expansion is needed due to increasing demand for storage from existing and potential new customers,” said Anthony Howard, Managing Director of HSH Coldstores. “I’m extremely when complete, could see the creation of around 1,500 new jobs. Wakefield Hub is also one of the largest regeneration projects of its kind in the UK. Regenerating the former Newmarket Colliery site, the development will secure vital inward investment and create thousands of new jobs. Wakefield Hub is being delivered by Newmarket Lane Ltd, a joint venture between HBD and Yorkcourt. Ed Hutchinson, Managing Director of HBD, said: “We are very pleased that the planning committee has approved the application for this latest development at Wakefield Hub – it’s brilliant news for Wakefield and is a huge vote of confidence in the city as a place to invest.” For more on logistics, be sure to check out our dedicated ports and logistics feature on page 28. excited that we’re growing and Europarc is the perfect location, with its fantastic road links and other food–based businesses on site, for this exciting new facility.” Subject to planning consent, HSH Coldstores is aiming for it to be operational by mid-2022. Lastly this issue, we cast a wider net. Planning permission has been granted for a new 2,000,000 square foot distribution warehouse at Wakefield Hub, a 200-acre industrial and logistics scheme located adjacent to Junction 30 of the M62 in Yorkshire. The joint application was made by Newmarket Lane Ltd and Mountpark and the decision allows for works to start on site in May, which will include a new spine road through the scheme and extensive landscaping. This will pave the way for the delivery of the warehouse by Mountpark which, © Shutterstock /vectorfusionart D.D.S ROOFING Tel: 01472 267709 • Mobile: 07980 962009 • Email: derrick.saxby@homecall.co.uk Enhance your old tired roof to an elegant distinctive modern style • all roof repairs • insurance work • free estimates • slate and tile roofs • re-roofing • storm damage • gutters and fascias • slating & tiling • flat roofs and felting • fibre glass roofing 10-13.qxp_Layout 1 01/06/2021 12:52 Page 414 Business Link www.blmforum.net AGRI-BUSINESS SPOTLIGHT © Shutterstock /Konstantin Zibert The future of farming With an eye on the future, the agri-business sector continues to adapt to challenges – be they social or environmental. Post-Brexit and post-pandemic, this sector will be more crucial than ever. 14-17.qxp_Layout 1 01/06/2021 13:10 Page 1www.blmforum.net Business Link 15 AGRI-BUSINESS SPOTLIGHT Agri-food is the largest manufacturing sector in the UK, employing 3.9 million people and generating a GVA of £108 billion. Yorkshire and Lincolnshire together form perhaps the most important agricultural region nationally, supporting a myriad of jobs across the supply chain and contributing massively to the economy both domestically and in terms of exports on the world stage. Driven by the explosion in global population, political pressures and the impacts of climate change, evolving the current agri-food model is less a want now and more a need. Already farmers have invested in renewable energy solutions such as wind turbines and anaerobic digestors, whilst others have embraced innovative new solutions such as using drones to monitor farmland and provide actionable data. In our region, Greater Lincolnshire is leading the charge towards a more innovative agricultural sector, adopting new training methods, upscaling agri-food robots and building on the region’s early steps into the new age of food, animal and crop production. It’s not a moment too soon either, with Britain currently possessing the lowest density of robots in manufacturing among the G10 nations. As our biggest manufacturing sector, it’s time for the agri-food sector to chance that. Robots and smart robotic systems improve efficiency, output and competitiveness and, far from coming to steal jobs, can instead safeguard jobs and improve workplace conditions all round. Indeed, robots can undertake the difficult and repetitive aspects inherent in farming faster and more efficiently than a human workforce, as well as undertaking tasks beyond the ability of flesh and blood workers – i.e. measuring the level of sunlight falling on a field. Taking the agri-food industry into the future isn’t simply a case of setting robots to work in the fields, but overhauling production methods and, in some cases, doing away with tradition all together as much for production gains and profitability as for greener, more environmentally-friendly solutions. The massive growth in the hydroponics market, which does away with the need of soil to grow fresh produce, is testament to this. Hydroponics is an innovative method of growing plants in a water-based nutrient-rich solution rather than soil. Instead of traditional planting and growing methods, the root system is supported using an inert medium such as peat moss, clay pellets or rockwool. It works by allowing plant roots to come into direct contact with the nutrient solution whilst also having access to oxygen. Not only does this mean that plants grow bigger, but they also mature twenty-five per cent faster than those grown in soil. The downside, however, is that it does require a significant investment, not just financially speaking but also in terms of time. Not only does a hydroponic system take a lot of time to set up, but managing these systems require plant Ph and nutrient levels to be 16 Á 14-17.qxp_Layout 1 01/06/2021 13:10 Page 216 Business Link www.blmforum.net AGRI-BUSINESS SPOTLIGHT monitored daily. Turning towards the future is a necessity for any business, regardless of industrial sector, but not at the expense of the present. Indeed, agri-businesses must be cognizant of the risks facing their industry and supply chain. According to the results of the annual ‘Monitor Farm’ survey from the Agriculture and Horticulture Development Board (AHDB), more farmers in the UK are actively recording their costs while benchmarking has risen. Of those farmers who record costs, the percentage of those benchmarking their business against others has almost doubled, rising from 46.6 per cent in 2018 to eighty-five per cent in 2019. The survey found that approaches towards risk management in general are also improving with 49.3 per cent of farmers who took part in the survey agreeing that monitoring farm projects improved their risk management. Of course, one of the biggest risks facing the agri-food sector recently has been COVID-19. At first glance, it might appear as if the crisis worked in farmer’s favours. After all, supermarkets have been posting better than expected results and a spike in sales first as consumers panic brought and then during the lockdown as people had little other choice but to spend time in and around the home. However, farmers in our region and beyond serve a wide range of customers. Of course, supermarkets are a major customer for many farmers and agricultural businesses, but they are far from the only one. The forced shutdown of restaurants, bars and markets dealt a major blow to farmers. Not only did it see them cut off from important revenue streams as key customers closed their doors, but also led to a rise in food waste. According to the AHDB, the financial disruption has cost dairy producers alone an estimated £28 million across April and May. Similar figures can likewise be seen across the spectrum. Part of the issue stems from labour – or rather, the lack of it. Last year, with travel restrictions in place throughout lockdown, farms were unable to access their usual labour pool from overseas. Instead, local people were encouraged to ‘Pick For Britain’ with a campaign evoking wartime spirit to get people to do their bit. But securing labour is far from the only issue farmers and agribusiness have had to contend with in light of the pandemic. In many cases, businesses have been forced to adapt they way they operate in order to comply with social distancing measures. For machinery suppliers, coronavirus has meant they’ve had to shutter showrooms. However, over the last few months, savvy suppliers have still processes machinery and spare orders as well as undertaking urgent repair works. It’s put them in a good position for when ‘non-essential’ retailers are allowed to open again in mid-June. As with other industries, the farming sector had little to no advance warning of the pandemic, and certainly not how pervasive and far reaching the effects would be. Farm businesses have, essentially, had to adapt overnight to navigate sudden disruptions and increasing demand from local communities and key customers (those © Shutterstock /MONOPOL Y919 14-17.qxp_Layout 1 01/06/2021 13:10 Page 3www.blmforum.net Business Link 17 AGRI-BUSINESS SPOTLIGHT Dexter & Sharpe – the perfect agribusiness partner Dexter & Sharpe, the Lincolnshire-based chartered accountants, has more than 130 years’ worth of rural experience. During this time, the firm has learnt first-hand the trials and tribulations that the agricultural industry and every farmer faces. Consequently, it is perfectly aligned to agri-businesses. It has an in-depth understanding of the different cropping cycles, crop yields, business structures, tax issues and even the effect of the British weather on your business. Through its regular client meetings, seminars and topical newsletters, the firm ensures that you are kept up to date with issues affecting your business. Specialist advice can be obtained on: * liaising with banks and financial institutions * stock takes and valuations * renewable energy and diversification projects * forward planning * succession planning * tax planning for all forms of business The firm can provide cost-effective VAT, payroll and bookkeeping services for farming clients. Moreover, it provides efficient trading structures for farming. To find out more, visit www.dextersharpe.co.uk. © Shutterstock /Paz2670 that weren’t forced to closed, that is). While there’s still many pressing issues here in the present, farmers are also rightfully concerned about what the future holds. Specifically, there is a worry that future trade deals struck by the government could undercut the current high standards set up by UK farmers. Though these issues predate the pandemic – i.e. opening the UK to imports of chlorine washed chicken and hormone treated beef etc. – there’s fears the outbreak will only make matters worse. Securing the future of farming has never been more pressing in light of COVID-19. Not only does there need to be greater investment in education, but also in innovative technologies such as robotics and hydroponics. This current crisis can serve as a catalyst to usher in a step change in agribusiness and ensure Britain maintains its high standards and output going forward. © Shutterstock /N_Sakarin 14-17.qxp_Layout 1 01/06/2021 13:10 Page 418 Business Link www.blmforum.net CONSTRUCTION MACHINERY AND EQUIPMENT Of course, there are highly useful advances with already commonplace machinery, and the constant evolution of engines. While these certainly improve on what is already available substantially, there is also more dramatic, industry changing machinery and equipment coming into play, more so than ever before, particularly with the acceptance of the digitisation of construction. These changes have been attributed to Industry 4.0 and the key technologies driving it: VR and AR, robotics and automation, 3D printing, machine learning, artificial intelligence, the industrial Internet of Things (IoT) and connectivity. Due to its noted rigidity in the past, construction has been considered rather resistant to embracing major technological changes that other industries are now using such as AI. However, if the UK construction industry is to keep up with the global pace of change, it needs to fully embrace innovation, especially while it is facing major problems around employment, efficiency and sustainability, which can all be assisted with incoming and future machinery and equipment. Perhaps the industry is now ready to Building the future Building the future While traditional equipment is continuing to be popular in sales, the equipment used in the construction industry is becoming ever more innovative as we explore. 18-21.qxp_Layout 1 01/06/2021 13:13 Page 1www.blmforum.net Business Link 19 CONSTRUCTION MACHINERY AND EQUIPMENT © Shutterstock /Dmitry Kalinovsky fully embrace the digitisation in front of it with drones performing surveys, Building Information Modelling (BIM), and autonomous driving vehicles all being used on site. On a smaller scale, apps are now being integrated into machines on site. They can be key for increasing a construction worker’s productivity by illustrating how to complete a task quickly and safely. On a grander scale, AI machinery is now being argued by many as the next step for construction. It is becoming popular for streamlining work to increase efficiency. AI can also be beneficially used to monitor malfunctions in heavy machinery, track equipment, reduce or even eliminate human error and, perhaps most importantly, improve safety on site. Resulting from strides with AI, robots may be the next “big thing”. With this wave of advancement in technology and machinery, it is predicted by Balfour Beatty in its ‘Innovation 2050’ report that building sites may be worker free by 2050, with “drones flying overhead … sending instructions to robotic cranes and diggers and automated builders”. Often ignored on this front, however, is that robots and other autonomous equipment are key for reducing risk, as robots can enter sites to assess their level of danger and stop people doing jobs that are excessively dangerous. Then again, this may result in a culture of remote working by less workers, and we need to consider: is this what we really want? Concerns also arise from potential cyber-attacks on AI. In 2017, for example, 200,000 businesses and 150 countries were affected by the now infamous ‘WannaCry’ ransomware. The rise in – and acceptance of – AI, on the other hand, could be a necessary solution to the skills shortage. The Arcadis Talent Scale reports that if the government is to reach its housing targets, the UK will need to recruit 400,000 people a year until 2021. AI machines could be helpful here as less people would need to be employed, filling the gaps many businesses are facing. Despite the technological advancement observed in the construction machinery and equipment market over the last few years, it is far from immune from the effect of the continuing coronavirus crisis – something that can be seen in the decline in sales of machinery and equipment. According to the Construction Equipment Association (CEA), retail sales of construction and earthmoving equipment in the UK market fell by 21.8 per cent in the first quarter of the year compared with the same quarter in 2019. This significant decline lays bare the extend of COVID-19’s impact on the 20 Á 18-21.qxp_Layout 1 01/06/2021 13:13 Page 2Next >