2022 Business Predictions: David Armitage, chairman of York Handmade Brick

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It’s that time of year, when Business Link Magazine invites the region’s business leaders to offer up their predictions for the year ahead.  It has become something of a tradition, given that we’ve been doing this now for over 30 years. Here we speak to David Armitage, chairman of York Handmade Brick, the independent brickmaker in the north of England. These are challenging times but I am confident we can maintain the progress we made this year, despite Covid-19 and the uncertainly caused by Brexit, in 2022. We are flourishing in commercial property and education sectors, whilst residential housing, which has been our staple for a number of years, remains strong. In these testing times, it is vital to spread our work across as many different markets as possible. It is also important to be optimistic. I have been in the brick industry for many years and have seen the peaks and troughs. The signs are that the economy is bouncing back and, when it does, I trust that the housing, construction and manufacturing sectors will be in the vanguard of the recovery. Despite rising inflation, which I hope is temporary, it is important to keep interest rates low. High-profile contracts that we have either started or completed during the past 12 months include Mount Row, a mixed-use development in the heart of Mayfair; a prestigious residential housing development at Kings Cross; and a new library of Magdalene College, Cambridge. Looking ahead more generally, it is encouraging to report that brick remains the building material of choice for many architects and specifiers across the UK. Provided the economy doesn’t implode, we anticipate a very successful and enjoyable 2022. We particularly value the contacts we have built up in the last 33 years with architects, planners, self-builders and developers. We look forward to continuing those relationships in the years to come.

Business confidence edges up in Yorkshire ahead of Omicron impact

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Business confidence in Yorkshire rose four points during December to 35%, according to the latest Business Barometer from Lloyds Bank Commercial Banking. Companies in Yorkshire reported lower confidence in their own business prospects month-on-month, down two points at 26%. However, when taken alongside their optimism in the economy, up nine points to 43%, this gives a headline confidence reading of 35%. The Business Barometer, which questions 1,200 businesses monthly, provides early signals about UK economic trends both regionally and nationwide. The survey captured responses between 26th November and 10th December. The first two cases of Omicron in the UK were confirmed on 27th November and nations began announcing the reintroduction of restrictions in the week commencing 6th December. A net balance of 37% of businesses in the region expect to increase staff levels over the next year, up seven points on last month. Overall UK business confidence was unchanged from November’s reading at 40%. While confidence remained above the long-term average (28%), during the second week of sampling when the Omicron variant emerged, confidence fell to 32%. Despite potential challenges from the new Covid-19 variant on the horizon, firms remained positive about their future trading prospects, up four points month-on-month to 43%. The net balance of businesses planning to create new jobs also increased by three points to 33%. Optimism in the economy overall remained positive at 38%, down just three points on November’s result. Every UK nation and region maintained a positive overall confidence reading in the December barometer, with four reporting a higher reading than last month. Alongside Yorkshire, the North East (up 13 points to 58%), North West (up 14 points to 48%) and East of England (up 12 points to 50%) all had stronger confidence readings month-on-month, with the North East and London (57%) the most optimistic overall. Steve Harris, regional director for Yorkshire at Lloyds Bank, said: “The resilience of businesses across Yorkshire is clear from this month’s figures. Despite ongoing uncertainty caused by Omicron and wider challenges in the economy, such as trade disruption and rising costs, many firms said they were optimistic about the future. “The coming weeks will be difficult to navigate for some, especially those in our region’s hospitality and leisure industries, but whatever the future brings we remain committed to supporting the region’s businesses as they look ahead to 2022.” In the industry sectors, construction recovered to 39% from November’s seven-month low of 28%, following a minor easing in supply-chain disruptions. Despite a slight fall in confidence in manufacturing to 40%, trading prospects in the sector have remained higher than the whole economy throughout this year. There were also small declines for retail (43%) and services (39%) ahead of the festive period. There have been some marked differences in these sectors in recent months, with notable strengths in the professional services sector (including finance) and in IT/communications. However, the current three-month average sentiment among hospitality firms is at its lowest level (24%) since the first quarter of the year (4%). This has been fuelled by a significant monthly drop of 48 points to 6% between November and December. Hann-Ju Ho, senior economist, Lloyds Bank Commercial Banking, said: “It is a challenging end to 2021 as businesses are now having to adapt to the new Omicron variant and resultant restrictions across the UK. Nevertheless, business confidence remains resilient and above the long-term average due to a rise in trading prospects, while pay and price expectations continue to be elevated. “Businesses face into a number of headwinds and challenging trading conditions, including higher interest rates, as we move into 2022, but many remain resilient and hopeful that acute downside risks are not realised.”

Seven-figure cash injection unlocks expansion for hydraulic manufacturer

A Huddersfield manufacturer is on track for double-digit growth after kickstarting a multi-million-pound expansion plan. Hystat, founded in 1976, produces hydraulic and pneumatic cylinders, accumulators and actuators. Primarily supplying to the oil and gas sector, it also provides parts to organisations across the renewables, nuclear, civil engineering and rail industries, and is actively supporting its oil and gas customers in their transition to greener energy alternatives. Last year, the business acquired Washington-based Cylinder Service Centre (CSC), which helped to broaden the firm’s offering with its specialisms in hydraulic cylinder repair. Since the buy-out, Hystat has enjoyed rapid growth, with turnover on track to increase 60% from £7.5million to £12million year-on-year. It has also boosted headcount from 96 to 110 across its Huddersfield and Washington sites. And now, with the support of a £1.2million loan from Lloyds Bank, Hystat is preparing to purchase CSC’s currently rented premises, helping to pave the way for further expansion at the site, and bring key operations, such as boring and holing services, in-house. Simon Wadsworth, Managing Director at Hystat, said: “Our products are playing an increasingly critical role in supporting the transition to green and renewable energy sources, meaning it’s important that we continue exploring opportunities to expand and diversify our offering. “Through this purchase, and through the additional financial firepower it lends us, we can ramp up activity across key services and significantly grow our output, helping us to support engineering best practice across a growing customer base.” Lloyds Bank has supported Hystat for more than two decades, previously providing hire purchase facilities to enable investment in new tooling and equipment. Allie Butterworth, relationship director at Lloyds Bank, said: “Simon and his team have built Hystat into the UK’s leading manufacturer of hydraulic equipment. Growing steadily over the years, the business is now ideally placed to consolidate its market share, with its investment allowing it to free up additional cashflow and focus on expanding organically. “We look forward to continuing to back the team’s ambitions in this next phase of their journey.”

New digital high streets programme to boost local shopping launches across West Lindsey district

A new programme to attract shoppers back to the High Street by harnessing digital technology has been launched in West Lindsey. The initiative, Local Rewards, a collaboration between West Lindsey District Council and social media specialists, Maybe* Tech – aims to help businesses across the council area recover from the impact of COVID-19, by giving them the support they need to reach more customers and make more sales. The programme will go live featuring 4,400 businesses from across the West Lindsey district and will offer free training and tools to companies looking to take part. Leader of West Lindsey District Council, Cllr Owen Bierley urged businesses to sign up for the free support. He said: “We are delighted to have brought Maybe Tech on board for the next 12 months to support our businesses. The impact of Covid 19 changed the way businesses operate and following discussions with local businesses we recognised that we needed to offer additional support. Maybe Tech has proved to be successful in other areas and we want our businesses to benefit too.” Local Rewards (https://www.localrewards.chat/) allows businesses to communicate with, and reward shoppers when they hit the High Streets and has been created with the intention of ‘levelling the playing field’ through enhanced digital skills, enabling small businesses to have access to the same level of tools and know-how as big businesses with bigger budgets. Businesses can also cross-promote and support their High Street neighbours to create an online network of connected traders. The Local Rewards programme already features over 6,900 businesses from across the region, data within the technology shows that in West Lindsey around 900 High Street businesses use social media. Of those retailers on social media around 286 (31 per cent) are active, posting most days. Maybe* Tech insights suggest that the national average within a centre for regular posting stands at around 25 per cent, making West Lindsey businesses among the most active on social media, in the country. Additional research conducted by Maybe* Tech suggests around 66% of consumers spend three hours per day using social media. Nicola Brooksbank, CEO and founder of Nice & Naughty Cafe Bistro, in Market Rasen says: “Since the pandemic I have noticed an increase in businesses working together for the greater good of the high street. We use each other’s shops as much as possible and promote each other. Rather than competition, we realise that our customers are one and the same, so the more we promote each other, the more we all see our takings double. Social media is very important to my business. Not every like returns a sale, but the more you have the more sales you will get. We have doubled both our Instagram and Facebook followers since the pandemic, through targeted posts. We are also doing videos with the aim that we create a large following sharing our beliefs in community, healthy eating, and home-cooked food. This includes recipes and creating a story people can get behind and want to follow. Social media is a positive that can only be good for us all, when used correctly and in a targeted way.” “I’m looking forward to signing up to the programme and hope others will too.” The technology enables shoppers to see businesses near them, view and engage with their social media content and shop with them via Facebook Messenger and WhatsApp. In addition, for every pound a shopper spends “in store” with a participating business they earn a point which can be used to claim rewards offered by local businesses across the county. Every business that signs up to manage their listing on the Local Rewards High Street Guide will also have access to an extensive range of social media tools and training provided by Maybe* Tech. Polly Barnfield OBE, CEO of Maybe* Tech said: “Around two thirds of shoppers regularly look online for inspiration and the Local Rewards programme groups all social media content by location to encourage people to browse their local high street and then rewards them for their local spend. High streets need infrastructure that until now has only been available for online businesses and this programme will help local businesses level the playing field,” adds Barnfield. “They need to communicate with shoppers in real-time and be able to showcase what’s available. In order to compete, High Street businesses need to up their digital game, promote their physical stores and collaborate. Our platforms help them collectively to do that and we are delighted to be working with businesses  across every high street in the West Lindsey district High Street businesses and shoppers can access the Local Rewards programme online at https://www.localrewards.chat/ and can sign up to reap the benefits via Messenger or WhatsApp. The platform has been developed to provide High Street businesses across all sectors, with access to social media, the tools and training to increase their customer base and drive sales. The Maybe* platform also provides practical suggestions and easy to use tools allowing organisations to connect with their audience, improve their return on investment and understand how to stay ahead of their competition. The announcement comes just days after West Lindsey District Council has approved a new Economic Recovery Plan. Encouraging investment, supporting businesses, developing growth and employment opportunities and harnessing the potential of green recovery are the underpinning principles of the Council’s recovery strategy.

Hull’s transformative £96m Albion Square development approved by Hull City Council’s Cabinet

The £96m Albion Square development has been approved by Hull City Council’s Cabinet. The large development in Hull city centre will feature a mixture of residential, office and retail space, as well as a large urban park. The eco-friendly and environmentally responsible project will include solar panels, EV charging points and a bike hub where cyclists will be able to store bikes. Hull’s iconic Three Ships Mural will remain and be incorporated into the new development. Demolition of the site will begin in early 2022 with construction starting in 2023. The transformative project is set to be completed in 2026. Councillor Daren Hale, leader of Hull City Council, said: “Albion Square is a key component in the city’s regeneration. “The large Albion Square site is an important and prominent location in our city centre, so it’s vital that we see it regenerated. “This investment is not only crucial to the future success and prosperity of our city, but it’s also the only viable option for the site. In its current, undeveloped state, the site requires continuous and significant costs in order to keep it safe, and is also an obvious eyesore in what should be one of the most historic and impressive parts of our city. “The only option, and the best option for Hull, is to regenerate the area.” Alan Boyson’s Three Ships Mural will be incorporated and made a key component of the new development, alongside retail space facing Albion Square, adding to the retail offer of Jameson Street and King Edward Street. The Fish Mural and Sponge Mural, currently located on the upper floors of the former BHS Building, will be saved and relocated within the new development. The rear of the development will feature retail units, as well as housing that is sensitive and complimentary to the existing Georgian architecture on Albion Street. This will include family homes and apartments, some of which will have private gardens. At the centre of the site, a new urban woodland will reconnect communities with city centre green space, allowing nature back into our urban areas through rewilding. The urban park will be an example of how we can live with water, showcasing how rainwater can be stored, filtered, drained sustainably, and become an amenity, even play opportunity, for its inhabitants rather than relying on traditional underground drainage networks. The result will be a dynamic and ever-changing park where water levels can rise and fall depending on weather conditions, to create either parkland or urban wetland. The design of the park draws inspiration from Hull’s dramatic estuary landscape and the biodiverse and ecological-rich river banks. Bridges and decks will guide people through the park which will feature water, lush green spaces, seating areas and artistic elements.

A rural task force for North Yorkshire has vowed to take forward a levelling up agenda for the county

The task force, which met for the first time this month, has also stated that working with Government on a meaningful devolution deal for the county will be a priority. The North Yorkshire Rural Task Force, which is chaired by Richard Flinton, our chief executive, includes officers from the county and district councils, North Yorkshire’s two national parks, agricultural colleges, the Yorkshire Agricultural Society, National Farmers Union, Community First Yorkshire and the York and North Yorkshire Local Enterprise Partnership. It was established to take forward the hard-hitting actions and recommendations of the North Yorkshire Rural Commission as set out in its final report “Rural North Yorkshire: the way forward”. Up to 85 per cent of North Yorkshire is classed as ‘super sparse’. This presents a set of key challenges. The Rural Commission, the first of its kind nationally, was established as an independent body in autumn 2019 to re-examine the evidence base and draw conclusions and recommendations, which would help these most rural communities, address the challenges and grow and prosper. The Commission met twenty times, taking evidence from over seventy participants and visiting rural communities. The aim was to bring about the levelling up of rural communities and to transform the region into a rural powerhouse. Commissioners believed their recommendations, if taken forward, would revitalise rural life, address its key challenges, bring back a missing generation of young people and create a vibrant future based around a state-of-the-art green economy. The Rural Task Force will take a lead on the key themes of the economy, energy, digital, farming, schools, housing and transport, to ensure that levelling up progress is made. While it acknowledges that these are issues many agencies across the county are already working on, it believes there is now an opportunity to refocus and to come together to drive forward priorities. Richard Flinton said: “The Rural Commission recommendations are a timely and helpful challenge to us as partners and we have identified leads in the areas the Commissioners set out.  Our job now is to bring about positive actions that can help rural communities in the county to grow and prosper. “Much of the work the task force undertakes will be the bread and butter of the new unitary council.  It will provide strong foundations for work with partners and with Government.” The task force also recognises that progress is already being made in some areas set out by the Rural Commission. For example, Yorbus, the demand responsive rural bus service pilot which aims to plug the gaps between the public transport needs of rural residents and existing scheduled services, is proving highly successful and is now being expanded. North Yorkshire’s successful bid to the Government’s Community Renewal Fund, which secured over £760,000 for plans aimed at decarbonising the county’s energy system is also helping North Yorkshire’s ambitions to thrive economically as England’s first carbon-negative region. “The Rural Commission set us a series of challenges and we wish to thank them for all their hard work on this and for their insight,” said Richard Flinton. “Our job is now to move these forward so that North Yorkshire is at the forefront of the rural levelling up agenda.  We will work with partners and Government on this.  The work of the task force will step up our ability to influence and lobby on the key issues affecting the future sustainability and prosperity of our communities.” The Task Force, which will meet next February, aims to meet quarterly so that members can share progress on the actions they are taking in shaping and meeting the Rural Commission recommendations.  They will support, advise and encourage each other in this. The Task Force will report on progress with stakeholders and the County Council Executive in a year’s time.

Manufacturing activity strengthens, but stock adequacy hits another record low

UK manufacturing output growth in the quarter to December accelerated to its fastest pace since July, according to the latest monthly CBI Industrial Trends Survey. The survey of 258 manufacturing firms saw output increasing in 15 out of 17 sub-sectors, with growth being mostly driven by the food, drink & tobacco and motor vehicles & transport equipment sub-sectors. Total order books in December were judged to be ‘above normal’ to a similar extent to last month’s record high, while export orders were rated as broadly ‘normal’. However, manufacturers’ inventory positions deteriorated further in December, with stock adequacy of finished goods worsening to a new record-low position for the second month in a row. Respondents also said they expect price pressures to remain acute in the next three months. Anna Leach, CBI deputy chief economist, said: “UK manufacturing demand remains strong, and output accelerated to meet this demand in December. However, behind the scenes, firms are battling pressures on a number of fronts. “Stock adequacy of finished goods worsened to an all-time low for the second month in a row, and continued expectations for sharp price growth are a further challenge for the sector. “The spread of the Omicron variant will have been a blow to business confidence. However, firms will welcome the Government’s decision to move from isolation to testing as a method of controlling the virus without unduly impacting their ability to operate.” Tom Crotty, group director at INEOS and chair of the CBI Manufacturing Council, said: “While it is positive that manufacturing activity has remained strong, we have also seen a further worsening in stock adequacy of finished goods. At a time of continuing global supply chain difficulties, labour shortages and material shortages, the government should seek longer-term solutions that promote growth and investment in UK manufacturing. “On Covid-19, the government must offer clear guidance in good time for manufacturers to continue operating safely as the country grapples with the Omicron emergency.”

The Source urges South Yorks bosses to help Traineeship teens find their futures in 2022

A Sheffield charity is appealing to South Yorkshire businesses to give young people a chance to turn their lives around in the New Year after the devastating effect the epidemic had on their schooling . The Source Skills Academy is a not-for-profit organisation which exists to get people into jobs and upskill the employed. It has moved swiftly to expand its Traineeship programme, which has been successfully re-setting the futures of jobless 16-18s for over four years. Over 18 weeks, its tutors help students prepare for work, building confidence, improving Maths and English skills, helping them gain qualifications and a professional attitude. There will now be four courses a year but The Source needs local businesses to give Trainees work placements, a crucial, life-shaping element of the programme. “Our Traineeships are even more vital now. Many teens have been badly affected by the pandemic. They lost time in the classroom and missed out on the customary work experience placements which help prepare them for employment. Without that, even the lowest rung of the career ladder is out of reach,” said Chloe Granger, Traineeships Delivery Team Manager. “Our programme gives them the chance to make a new start but it’s vital we find our Trainees relevant, on-the-job work experience. It makes a huge difference to their confidence and communication skills. They develop a firmer idea of their career path, discover their worth and aim higher,” said Chloe. Already a number of local businesses have answered the call. One of them is Vulcan Engineering at The South West Centre, Troutbeck Rd, Sheffield, one of the world’s leading mechanical and encapsulated seal manufacturers. Founded in 1986, its products are used in everything from dialysis machines to swimming pools, water sewerage plants to oil refineries – and the household washing machine. It employs 110 people in Sheffield and at its sister company in Minneapolis, which serves the North American market. A number of its staff found their place in the company via the 1980s Youth Training Scheme for school-leavers. One of them, Louise Ebdon, Group HR Executive Manager, commented: “Work experience gave me a career in a sector I would never have known about and the fact that Vulcan showed faith in me when I was young is the reason I love bringing people into the business and developing them, an important part of my HR role.”. “Vulcan is currently training eight apprentices. It’s part of the company’s culture to provide people with the opportunity to prove themselves and that’s why we have signed up to The Source Academy’s Traineeship programme,” said Louise. “We really see the value in this initiative.” Vulcan’s first work placement Trainee is Rotherham 16-year-old Adil Ali. He is working two days a week, gaining mentoring and training in warehousing, assembly and picking and packing. Trainees have 110 hours of work experience with local employers over 10 weeks. Quality placements in customer service, warehousing and admin are being sought with companies across the SCR. Employers get support from The Source and companies could just find their perfect new apprentice, says Chloe: “Bosses can get to know trainees and evaluate how they would fit into their business long-term.”

Reprocessing firm acquired by sustainable packaging company

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Reprocessing firm, Bright Green Plastics, has been acquired by IPL Global from AIAC. The acquisition will allow the manufacturer of sustainable packaging solutions for environmental, returnable packaging and industrial markets to offer a full recycling service for its products. Bright Green Plastics’ West Yorkshire-based reprocessing site, which currently recycles around 40,000 tonnes of plastic waste each year with a 130-strong workforce, will continue to operate under the existing management team. IPL plans to invest in equipment and innovative projects to increase the recycling capacity and capabilities of the business, which will ensure the continued supply of high-quality recycled compounds to customers across many sectors. Ian Farquhar, UK Managing Director at IPL Global, says: “We are delighted to have Bright Green Plastics as part of our network of businesses. Our shared values, coupled with impressive breakthroughs in the development of recycled polymer formulas for a wide variety of applications, meaning that together we can offer sustainable solutions the market is looking for. “It’s this passion and commitment to innovation that first attracted us to the company, and we’re excited to see the value that Bright Green Plastics is set to bring to our business as we, in turn, contribute to its ongoing growth and success in the worldwide marketplace.” Steve Spencer, General Manager at Bright Green Plastics, adds: “Anyone that comes across our business knows we are passionate about plastic recycling. “This acquisition will provide the global assistance to accelerate significant technical developments, ensuring as much recycled plastic as possible is ploughed back into the manufacturing cycle, whilst lessening reliance on virgin plastic.” The acquisition was completed on 8 December 2021. Steve Spencer, who joined Bright Green Plastics in 2019, will continue to control and oversee all business operations.

3 of the best ways to help small businesses

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It was common for small businesses to be engulfed in turmoil even before the pandemic struck. Today, many of them are in a very vulnerable position. Still, though many businesses have struggled, their fighting spirit has not wavered, and a sense of community must be built and felt. The nation needs to band together to keep firms afloat, and you may be wondering what part you can play in these proceedings. Consequently, here are some of the best ways you can help small businesses in your area today. Use Social Media It doesn’t take much to open an account on Twitter or Facebook or to use them as savvy tools for business purposes. Try to shout businesses out if possible. An online post that highlights a firm’s capabilities, services, and excellent service could really help them. You could provide links to stock pages, eco-friendly measures, or charitable causes they are supporting, highlighting their work ethic and strong moral character. If possible, don’t just like, share, and retweet – put your admiration into your own words for a more effective promotional effort. Be sure to include relevant keywords and hashtags to boost the visibility of your posts. Additionally, if you’re promoting an event of some kind for a firm, it could be worthwhile building up some hype before you make any big announcement. That way, you can ensure that you reach as many people as possible. Remember, many firms compete for shoutouts, so receiving them for free could be a big win for them. Invest in Them If you have capital at your disposal, investing in early-stage businesses that are going through their initial stages of growth could be a good idea, albeit with significant risk. There are specific schemes set up which provide growth opportunities and potential tax advantages. All of this is made possible within the Oxford Capital Growth EIS fund. You can back a diverse portfolio of UK early-stage companies in a range of sectors, including eCommerce, fintech, artificial intelligence. Cash injection into start-up businesses opens up an ever-expanding series of doors for them, propelling their growth going forwards. Remember, in doing this, you’re not just helping the small business succeed. You’re helping people earn their livelihoods, and you’re helping to keep the UK economy moving. Be Mindful of Your Interactions There are lots of things that customers can do that waste a firm’s time. These can be:
  • Asking questions of customer service personnel that are answered by reading their web copy/FAQ pages.
  • Engaging in small talk with staff who are clearly busy.
  • Disputing price points and shipping arrangements.
  • Cancelling tables in restaurants at the last minute.
Of course, more offences could easily be mentioned, but all of these incidents can add up to significant time loss for a business. Additionally, the old saying is true; time is money. Think about how you could approach each interaction with a company a little differently and keep their pressing needs in mind as you do.