< Previous20Business Link www.blmforum.netSUPPORTING BUSINESS GROWTHGoingforgrowthPHOTO: SHUTTERSTOCK.COM/ALEX KOLOKYTHAS PHOTOGRAPHYGoingforgrowthIt’s been a year of politicaland economic upheaval,and for businesses lookingto grow in the coming year,there are as manyopportunities as challengesto the contrary. 20-23_Layout 1 29/11/2016 11:46 Page 1www.blmforum.netBusiness Link 21The end of any year gives businesses andindividuals a chance to take stock of the lasttwelve months, charting the peaks andtroughs and coming to some sort ofretrospective. Politically speaking, 2016 hasbeen a tumultuous year, with theramifications of the Brexit result in the UKand the surprise Trump win in America onlynow becoming clear. As well as drawing oneyear to an end, December also offers theopportunity to look ahead.A new year is symbolic of reinvention, ofrising above one’s weaknesses and becomingthe best you (and other such platitudes). Thesentiment, however, does have a place in thecorporate world. Going into January willlikely see plans laid while others come intofruition, but the agenda will likely be focussedon growth. As if the growth hadn’t alreadybeen a top priority, the vote to leave the EUhas upset the status quo, with many of ourregion’s import and exporters suddenlyforced to look further afield. But this is by nomeans a bad thing, in fact it can herald thedawn of a golden new chapter for abusinesses and strengthen links between theNorth East and Africa, China and, yes,America. The latter poses an interestingprospect for businesses, with President-electDonald Trump himself stressing theimportance of relations between the US andUK. Although the word of Mr Trump hashardly been reputable, or even particularlyfactual, throughout the messy campaign thatpreceded his election, on this we can gleansome kernel of truth. For many UK businesses, America stillholds the same appeal that it did for thoseMersey Beat bands back in the early sixties.Near every band that followed has tried to“break” into the US. Although the balance ofpower is shifting, with many businessesturning instead to the lucrative Chinesemarket to make it, America is still a vitaleconomic powerhouse. And yet, theemphasis is too often placed on the North.Exporters can certainly do worse thancourting the Latin American countries, manyof which are experiencing economic upturnsand booms in trade. In any case, governmentinitiatives are in place to help businessesbranch out into exporting. ‘Exporting is Great’, for example, offers awealth of advice for interested businesses, aswell as partnering with a range of companiesand organisations to put would-be exportersin touch with banks, chambers of commerceor other experienced organisations. It alsoprovides information for overseas companiesinterested in investing in the UK. Trade is atwo-way relationship and we should beencouraging investment into our region, aswell as trading abroad. On a more domestic level, technology ischanging the business landscape. Business isnot only mobile, but interconnected andinteractive. The lines between client,consumer and the corporate have blurred,BGF reaches £1 billion investment milestoneBGF has now invested £1 billion into businesses across Britainfollowing an £11 million investment in holiday park operatorCoppergreen Developments. The firm, which has an office in Leeds, is on track to invest morethan £370 million this year, compared to £250 million in 2015.Over 150 small and mid-sized companies have taken BGFfunding since October 2011.More than £700 million of the £1 billion has been investedoutside of London and the South East, including £215 million in theNorth.Nationally, BGF invested more than £100 million in the thirdquarter of 2016, compared to £60 million in the same quarter lastyear. BGF was the top institutional investor in the three monthsfollowing the EU Referendum by number of deals completed,against a backdrop of an overall slowdown in investment activity.Stephen Welton, CEO, BGF, said: “While growing businesses willbe affected in different ways and to varying degrees during the Brexit negotiations and beyond, our long-term approach means that we have nointention of slowing down our new activity or support for the companies we back.”22 Á20-23_Layout 1 29/11/2016 11:46 Page 222Business Link www.blmforum.netSUPPORTING BUSINESS GROWTHand technology will only continue toplay a vital role in our lives. With changecomes the inevitable fear of theunknown. It’s understandable thatbusinesses would be hesitant, orreserve judgement on what can be anexpensive and disruptive change, yetthey needn’t be. Resisting technologicaldevelopment is tantamount to turningyour back on the future, but embracingchange isn’t always easy, and this canbe detrimental to SMEs. Funding exists to help ease thetransition into a more digital workplace,while other sources are availablespecifically aimed at tapping ourregion’s digital sector. Leeds, especially,is a flourishing tech powerhouse, withglobal property consultancy KnightFrank dubbing the city a “centre ofdigital excellence”. One such fundcomes from Leeds City Council who isoffering almost £4 million worth offunding aimed at building owners andcompanies in the digital sector. The aimis to nurture the creation of innovativeand logistics & material handling allexperiencing a dearth of skilled workers. Solutions have come from all sides,with some saying strengthening linksbetween academia and business is theanswer. Certainly tightening the bondsbetween universities and business issomething we should be pursing, but italone is not enough to fend off theshortage. The apprenticeship levy, onthe other hand, provides young peoplethe chance to bypass universityaltogether and go straight into the worldof work. The only drawback being thechangeover period where new workersare learning the skills while thedesperate needs for said skills is now. Others have said that “going local” isthe way forward. Siemen’s mammothinvestment in Hull, and its subsequentrecruitment drive with its emphasis onlocal workers, proves the validity andimportance of such claims. With theBrexit threatening legions of essentialPre-funded projects to helpYorks businesses harnessbioeconomyThe BiorenewablesDevelopment Centre, aUniversity of Yorksubsidiary, has securedfunding from theEuropean RegionalDevelopment Fund to helpmore companies growthrough bio-basedinnovations. Following the BDC’sprevious business supportprogrammes helping morethan 200 local SMEs overthe last three years, theBDC is now able to offer120 pre-funded projects for eligible Yorkshire businesses by 2018, to be delivered by their teamof professional scientists or business specialists.The BDC works with organisations of all shapes and sizes to help develop and scale-upgreener processes and products using plants, microbes and unavoidable wastes. BDC’sprevious ERDF programmes have helped local companies gain scientific insights to informtheir business strategy, drive investment and develop improved bio-based products. Overall, the previous programmes led to 6 new companies setting up in the region, morethan 80 new or saved jobs and stimulated a £12.5 million increase in GVA. With this newprogramme the team have set ambitious targets to support the development of 10 newbusinesses, 80 new products and 100 new jobs.projects throughout the city. The new fund follows a decision bythe Council back in October, where a£3.7 million grant provided by theDepartment of Culture, Media andSport, was allocated towards thedevelopment of a Leeds Tech Hub Fundto further assist the work currentlybeing undertaken to encourage furthergrowth in the city’s fast-growing digitalsector. If the growing digital sector ispresenting businesses with exciting newgrowth opportunities and a means ofdiversifying, then the skills shortagethreatens to hamstring thatdevelopment. To put the problem incontext, an annual CBI survey foundthat of the 500 businesses queried, 69per cent were concerned about notbeing able to find enough highly trainedstaff, compared with 55 per cent theyear before. The industries that aremost at risk are largely the STEMsectors, with engineering andaccountancy, as well as construction20-23_Layout 1 29/11/2016 11:46 Page 3www.blmforum.netBusiness Link 23foreign workers in the UK, utilising localworkers will prove ever more importantin the years to come. It has been a trying year forbusinesses and individuals alike, and aquick look back over our BusinessServices pages shows just some of thepitfalls. Whether it’s getting to grips withthe changes in employment law,grappling with auto enrolment,struggling with broadband speeds orany of the topics listed above, it’s fair tosay 2016 has been a testing ground. Thecoming year will of course bring newchallenges, but it will also bringopportunity and that’s something weshould all be looking forward to.Online Health and Safety Training CoursesHow would you like to save time and money on your next IOSH or NEBOSH trainingcourse? Health and safety training doesn't have to be expensive or boring. Book your course now and you can start within five minutes.Newlands House, Newlands Science Park, Hull, HU6 7TQ01482 211989 • info@wiseglobaltraining.com • www.wiseglobaltraining.comPHOTO: SHUTTERSTOCK.COM/ESB PROFESSIONAL7 in 10 firms plan to increaseor maintain innovationspending in light of BrexitAs the UK develops its economicrole in the world outside of the EU,companies are planning to bolsterspending on innovation to drivebusiness growthA CBI survey of over 800businesses - supported by Deloitteand Hays - shows that 70% ofrespondents plan to increase ormaintain their innovation spendingfollowing the vote to leave the EU.Only 7% plan to reduce theirinvestment.Last year business invested almost£21 billion on innovation, allowingBritish firms to develop cutting-edgeproducts and services, attract global investment and expand internationally. The challenge forbusinesses is that while the UK innovation system has world-class attributes, it does notcurrently match their ambitions. Businesses rate the UK as 10th in the world for innovation.While some firms view the UK as a world-beater in areas such as access to scientificresearch (35%) and tax incentives to support investment (30%) – the UK lags behind in othercritical areas. 20-23_Layout 1 29/11/2016 11:46 Page 424Business Link www.blmforum.netENGINEERING AND CONSTRUCTIONAs far as engineering andconstruction are concerned, any givenyear is filled with trials and tribulations,and yet 2016 has been particularlytrying. Heavy industries are constantlyevolving, and looking ahead, rather thanbehind, is the prevailing attitude acrossour region. Although not all of thesector’s setbacks can be resolved with achange in outlook, coming atengineering from a differentperspective, or looking at constructionwith fresh eyes, could help give thetwin industries a boost. Despite many misconceptionsregarding the engineering andconstruction industries, one thing thatcan be agreed upon is that each is asgood as their respective tools andequipment. Earlier in the year, beforethe whole messy business of the Brexitand the US election reached its zenith,we covered the benefits of plant andtool hire as a means of offering acompany an advantageous alternativeto purchasing new equipment outright.The crux of the argument is thatadditional equipment entailsexpenditure, and for acompany looking to bolster orreplace its offering, it requiressignificant investment. Hiring heavy machinery orequipment is by no means acure-all solution, nor does itsuit the needs of everycompany, but it does offer a degree offlexibility for smaller firms looking tokeep expenses down, or looking todiversity their offering. Hiring machineryin this way is part and parcel of the job,a kind of unspoken agreement, and yetas the toolbox a company can pick fromexpands, the hiring side of things mightbe lagging behind. Given the breakneckspeed that the engineering andconstruction sectors are evolving, it’shardly a surprise. In our Novemberissue we explored the proliferation andeffect of new technologies such as 3DFutureforecast Looking ahead will put the engineering and construction sectorsin good stead for the year to come. PHOTO: SHUTTERSTOCK.COM/GYN903724-27_Layout 1 30/11/2016 09:59 Page 1www.blmforum.netBusiness Link 25printing and drones. Lincolnshire has positioned itselfas the UK’s wind power capital withmassive investments in and aroundthe Grimsby area as well as off theYorkshire coast. Indeed, Siemensand DONG Energy have becomesynonymous with our region. Aswind power is still a relatively newindustry, it is developing alongsideother nascent technologies. Withtheir ability to capture incrediblehigh-definition footage from allmanner of angles, drones are idealfor inspections, particular fortypically hard-to-get places such aswind turbines. Construction sites canalso benefit from this, as a dronecan complete a real-time inspectionin a fraction of the time of a humanPHOTO: SHUTTERSTOCK.COM/DMITRY KALINOVSKY26 ÁHousebuilders optimisticdespite market uncertainty &skills shortageDespite challenges including thecurrent planning system, a skillsshortage and uncertainty followingthe EU Referendum, housebuildersare forecasting increased growthand investment in the sector.The second annual Lloyds BankCommercial Banking report on theUK housebuilding sector analysesthe state of the industry, and theopportunities and challenges itfaces in the future.The report is the first in-depthstudy of the sector following thedecision to leave the EuropeanUnion in June 2016. Although over a third of firms (36%) said that the uncertainty following theEU referendum result is the biggest challenge to their business, the industry is relativelyoptimistic; planning to grow, invest and create jobs. The research found that, in the face of ongoing uncertainty, optimism about the future of thehousebuilding industry has picked up slightly from 7.1% last year to 7.2% in 2016, with 10%representing the highest level of expectation.The remaining challenges that the sector highlighted, after the EU referendum result, includethe rising cost of materials and the current planning system. PHOTO: SHUTTERSTOCK.COM/BILDAGENTUR ZOONAR GMBH24-27_Layout 1 30/11/2016 09:59 Page 226Business Link www.blmforum.netENGINEERING AND CONSTRUCTIONcounterpart. It wasn’t hyperbole whenwe described the drone as a ‘watershedmoment in engineering’ – truly, thefuture of this industry is inextricablylinked with the drone and the dronewith engineering. 3D printing, on the other hand, has anumber of financial benefits tobusinesses it can, for example,dramatically cut down on the cost ofprototyping, and the short lead timesoffer greater flexibility. Productionmethods require specific measurementsof materials, meaning there’s less likelyto be any wasted product. As acomponent needs to be intricatelydesigned in a computer beforehand, anyflaws and problems can be resolveddigitally rather than occurring inproduction. As the construction industry is one ofthe worst in terms of health and safety,it’s understandably a topic we’veexplored at length over the last year.Indeed, the industry is one of the biggestoffenders when it comes to life-threatening, life-changing or fatal injuries. The Government’s Health and SafetyExecutive has Construction Design andManagement regulations in place toimprove health and safety throughoutthe industry. It advocates sensiblyplanning work so that the risks involvedare managed from start to finish; havingthe right people for the right job at theright time; cooperating andcoordinating work with others; havingthe right information about the risks andhow they are being managed;communicating this informationeffectively to those who need to know,and consulting and engaging withLeeds engineeringgroup acquires railspecialist for £5mRenew, the Leeds-based engineering services group,has acquired Giffen Holdings in a deal worth £5 million. Giffen, which is based in St Albans, specialises inmechanical, electrical and power services within therailway environment, working for both Network Rail andLondon Underground as well as a select number of TrainOperating Companies. Following the acquisition, Giffen, whose entiremanagement team is remaining with the company, willreport into Amco Rail, Renew’s rail infrastructure business.For the year ended 30 September 2016, Giffen isexpected to record revenue of approximately £22 millionand an adjusted profit before taxation of £0.7 million. The acquisition cost is £5 million for the whole of theissued share capital with a further £2 million beingrequired to redeem loans from Giffen’s current privateequity owners. The whole consideration will be paid fromRenew’s existing cash resources. At completion, Giffen hada cash balance of less than £75,000.By acquiring the complementary skills of Giffen, AmcoRail will be able to offer an expanded range of servicesacross the rail network as well as creating opportunitiesfor the Group to provide services to London Underground.PHOTO: SHUTTERSTOCK.COM/ZHANGYANG13576997233PHOTO: SHUTTERSTOCK.COM/CHRISTIAN LAGEREKThe uk’s leading under waterengineering servicesince 1963Oslo Road • Sutton Fields Ind Est. • Hull HU7 0YN • Tel: +44 (0)1482 227276 (24-Hours)Email: contact@northerndivers.co.uk • www.northerndivers.co.uk24-27_Layout 1 30/11/2016 09:59 Page 3www.blmforum.netBusiness Link 27Tel: 01482 325676 • Email: sales@kingston-engineering.co.uk • www.kingston-engineering.co.ukKingston Engineering are specialists in precision engineering, based in Hull. As one of the region’s leading companies in their sector, Kingston Engineering canprovide specialised power screw products, specialist leadscrew and ex-stock powernuts and screws. In addition, they can provide expertise and guidance in factoryand production machinery installation, commissioning, maintenance and repair.workers about the risks and how theyare being managed. If we consider our region, there arecertain things that spring to mind,whether it’s renewable energy, or thefood industry. Engineering, however,goes without saying. 75 per cent ofUK’s manufacturing lies within a fewhours of the Humber, making it a nexusof manufacturing excellence and plays avital role in the engineering market. Asthat’s the case, advancements inengineering play a key part in theregion. As is evidenced by the rise ofdrone technology and 3D printing,advancement is ushering in greaterlevels of efficiency and freedoms. Anyof our readers who regularly frequentour engineering pages will know weregularly cover automation. The fourthindustrial revolution will be built onautomation as machines make somehuman roles redundant. Naysayersargue that this will put great swathes ofpeople out of work, but there willalways be a place for a humanworkforce if only to tend to themachines. But until artificial intelligenceis truly on par with our own, there isn’ttoo much to be wary of (at least not inour lifetimes). Despite its steely determination andimpressive successes over the last 12months, both the engineering andconstruction sectors still have a way togo. One of the biggest hurdles is notonly attracting more high-skilledworkers into the fold, but making thesectors more inclusive for women andminority workers. At the rate it isdeveloping, we can only hope that it issooner rather than later.No-dig tech willincrease pipeworklifespan by up to75 yearsYorkshire Water plans to use a new no-dig pipe lining systemto increase the lifespan of its underground sewers and watermains by up to 75 years.Use of the no-dig technology is also expected to save the firmaround £1 million by renewing large sections of its undergroundinfrastructure without having to replace it.It consists of a carbon fibre spray lining application thatrapidly sets to create a ‘pipe within a pipe’, creating a 3mm thickextra layer of structural integrity that protects against cracksand bursts.The technology can also be applied without having to dig upthe road surface, which will result in less road closures and trafficdisruptions.Mark Gregory, Project Manager at Yorkshire Water, said: “Byapplying this technology we will substantially reduce the risk offailure to our ageing underground assets and also improve thelife span by 75 years. It is a cost effective solution with a lowcarbon footprint.”Yorkshire Water plan to initially use the new technology onvulnerable rising main sewers and following a review aim toexamine future applications on its wider waste and clean waternetwork.24-27_Layout 1 30/11/2016 09:59 Page 428Business Link www.blmforum.netFOOD, CHEMICALS & PROCESS INDUSTRIESLooking into 2017, efficiencyis sure to be a biggerconcern than ever within ourregion’s manufacturingsector. Despite this, localcompanies are still behindthe curve when it comes tocontrol and automation. The manufacturing industry isparamount within our region, which iswhy there is a need to look towards thenew year and what is to come in 2017.The 2016 year has been touted bymany as a terrible one for business,what with the Brexit and thepresidential election weighing down oninternational trade. All businesses aregoing to be faced with questions onwhat they can do in order to improveefficiency and drive a leaner, morestreamlined business moving into thenext year. One way to maximiseproductivity – particularly in amanufacturing facility – is to embracehigher levels of robotics andautomation.The UK is falling far behind othercountries when it comes to automationand the adoption of robotics, especiallywithin the food and drink industry.These were the findings of a recentstudy into robotics within the industry,which found that even within Europe,the UK is ranked 15th in terms ofrobotics usage. To give an idea of whatthat means, the UK is behind countriessuch as Germany, Sweden and France –but also now falls behind Slovakia,Slovenia and the Czech Republic. Thebigger problem still is that the changesin robotic investment within the UK aresome of the lowest in the bloc, withmany food manufacturers not seekingto make changes and instead relying onoutdated and expensive labour models.With the introduction of the NationalLiving Wage this has to change, butthere are some who fear it couldalready mean UK manufacturers cannotcompete with their rivals. WithYorkshire and Lincolnshire being primelocations for food manufacturing, this isof particular concern to businesseswithin our region.A big problem is that thisphenomenon of the UK falling behind isactually quite limited to the food anddrink industry. As an example, the UK isstill highly competitive in the automotiveindustry, despite robust competitionfrom other countries, and lo and behold,the UK automotive industry is a hugeinvestor in robotics and automationequipment. In years past there mighthave been a fear that the initialinvestment into robotic systems was tooinhibitive (though clearly not tooAutomatingthe new yearAutomatingthe new year28-30_Layout 1 29/11/2016 11:53 Page 1www.blmforum.netBusiness Link 29inhibitive for our European neighbours),but even if we consider that the price inthe UK was somehow ten times whatwas offered elsewhere, advancementsin technology have caused that price tofall dramatically. Nowadays a roboticunit such as a pallet stacker can costless than the wages of what labour itwould replace. The good news for companies is thatautomated solutions are becomingcheaper and more flexible by the day.From basic assembly machines to leak-test fixtures and laser profiling devices,the latest innovations in automatedtechnology are helping businesses toreduce labour overheads and preventcostly wastage.In the past, no matter how skilled theoperative, there was always potentialfor error on the production line. Today,we are looking at the possibility of100% error and waste-free production,all thanks to factory automation. Take,for example, the hydraulic leak-testfixture, a once-niche technology that isnow commonly used in engineeringand food and drink production. Thesesimple-to-operate machines are used totest for flaws in hydraulic components,valves, pipes and so on. Pressure andflow measurement techniques areutilised in order to assess the integrityof each component – something that isespecially important if dangerous gasesor wastewater are being piped.Readings are then transmitted directlyto integrated software. Although thesemachines need to be operated bytrained staff, the potential cost-savingbenefits are obvious: flawedcomponents equal waste, and wastecan be financially deleterious for bigand small companies alike. Quite simply, automated solutionshelp to speed up production. Product30 ÁPHOTO: ANDREI KHOLMOV / SHUTTERSTOCK.COMHull bioethanolproducer callsfor E10 fuel tosupport farmersBioethanol producer Vivergo Fuels is callingon the Government to provide greater certaintyto UK farmers by pushing forward with theintroduction of E10 fuel, which will cultivate analternative domestic market for their produce.On the back of the harvest, Vivergo isboosting the fortunes of farmers to the value of£1 million per month, compared to the smallerexport value they would receive. The companytakes up to 100,000 tonnes of animal feedgrade wheat each month to create its ethanol,which is then blended into petrol.However, Vivergo, which operates a £350million plant at Salt End near Hull, says it canplay an even bigger role and is asking theGovernment to increase the ethanol blendingratio in petrol from current levels (5%) to 10%,through the introduction of greener fuel, E10. This will boost the UK economy bysupporting UK farmers and UK jobs, as well ashelping to meet strict and legally-bindingenvironmental targets.PHOTO: SHUTTERSTOCK.COM/MARIDAV28-30_Layout 1 29/11/2016 11:53 Page 2Next >