< Previous30 Business Link www.blmforum.net NEW YEAR, NEW SUPPLIERS For many, there are also good relations with suppliers to consider, perhaps friendships or times where their directors have wined and dined you. Keep in mind that this is intentional, however. Most businesses do it. Key customers are worth taking the time to ingratiate yourself with, and it’s ultimately nothing more than a means of building loyalty. A business owner or manager should never feel beholden or indebted to a supplier because their service has already been repaid. However, there is risk in bringing in a new and untested supplier, which is why it’s so important to do your research and ensure they will be a good fit for a company. While there’s less risk of intentional fraud and scams with big national companies, accidental hiccups early in a new relationship can be just as devastating, and there are so many big names in the industry. Picking out the right business for the job can be tricky. And there’s always the question of whether a supplier being replaced would really make the job any cheaper. Sometimes big-name companies aren’t the best choice, as they have more customers to work with and more staff who might be put in front of you. You’re less important to them, and that can lead to less effort being put into your problems. Smaller companies can’t afford to upset clients and will often work harder to keep new ones, and family businesses especially tend to consider the long-term value of their reputation, since the business may be left with their own children. That’s why before replacing them at all it’s a good idea to quantify their performance, and the first few www.blmforum.net Business Link 31 NEW YEAR, NEW SUPPLIERS months of the year are the best time to take a look at this. Ask your managers who deal directly with the suppliers what their experiences have been, how helpful the suppliers have been and whether there were any issues. It can sometimes be a surprise to discover just how difficult things have been; or that staff have had numerous problems with suppliers but have simply dealt with it on their own and not felt the need to inform upper management. To them, it may feel like it is their job to work around the issues, when in reality this could be taking valuable employee time away from more profitable work. It’s universally considered a good thing when operational managers can show this kind of initiative, but it can also disguise problems that could be dealt with, so open channels of communication and make sure everyone is aware they can, and should, raise issues. It may well be that a business already has the best suppliers it can have, that nothing is discovered and that the suppliers have been both attentive and capable. Discovering such is not a waste of time or effort, however. Efficiency in any aspect of business can only be attained if manufacturing lines are quantified, if employee retention is monitored, and if sales teams work to targets. In business, everything should be quantified and measured at all times. How else will managers know what can be improved? Don’t take the attitude that the same does not apply to suppliers. They are a key part of your business focus, and their performance must be measured. If they’re not good enough, it may well be time to look for new service providers. © stock.adobe.com/MP Studio32 Business Link www.blmforum.net LOGISTICS AND TRANSPORT The future of our portswww.blmforum.net Business Link 33 LOGISTICS AND TRANSPORT At the core of this transformation lies the understanding that freeports are zones where conventional tax and customs regulations no longer apply. Whether maritime or airport facilities, these designated zones offer simplified customs procedures and tariff exemptions. Businesses lucky enough to be operating close to these ports will find themselves empowered to export free from otherwise extensive procedure. However, a certain balance of responsibility must be maintained, as goods exiting freeports bound for other parts of the country need to adhere to the complete import process, including tariff payments. Freeports are different from free zones or ‘enterprise zones’, in that they are designed to incentivise businesses engaged in importing, processing, and re-exporting goods, unlike broader initiatives with a focus on general business support or regeneration objectives. This refined economic strategy positions freeports as engines for trade specialisation, their unique advantages ripe to be harnessed for sustained economic growth. Amid the promise of freeports, challenges persist for all UK ports. The aftermath of Freight logistics in the UK is poised for a transformative journey driven by the potential of freeports. 34 Á © stock.adobe.com/annaspoka © stock.adobe.com/KOTO34 Business Link www.blmforum.net LOGISTICS AND TRANSPORT Brexit introduced complexities in trade regulations, customs procedures, and border checks, which have collectively led to a prolonged adjustment period to our new norm. Ports grapple with the need to adapt, raising concerns about vulnerabilities in port connectivity, and the long-term efficiency of trade flows. Regardless of the additional system and administrative requirements introduced by Brexit however, ports have benefitted from increased scrutiny of routing choices by shipping stakeholders. There has been a noticeable uptick in services to various areas as individuals explore different routes for moving goods to and from the EU. A study earlier in the year found that there are over £2 billion worth of goods languishing in Yorkshire warehouses due to supply chain issues. The study went on to claim that over 66% of businesses in the region are affected, at a cost of up to £900,000 per company in some cases, with the most affected industry being food and drink. When quizzed, 86% of manufacturers in the region said their customers were being affected and facing delays. Furthermore, 60% claimed they were planning to increase prices in the new year to deal with rising costs, but 90% went on to say they expect their business to grow. This may seem a polarising message to many but is pretty much a view of the logistics industry in Yorkshire and Lincolnshire right now. It is a sector with huge potential for growth, constantly increasing demand, but too few people www.blmforum.net Business Link 35 LOGISTICS AND TRANSPORT to address it. Normally when this happens businesses grow or crop up to take their share of the profits, but that isn’t possible when new companies cannot hire enough staff to man their fleets. The skills shortage we have talked about many times continues to rear its head, and this time there are quantitative figures behind it. The simple fact is that the sector is a lucrative and successful one that – despite soaring fuel costs – has incredible potential to grow, but all the potential in the world is meaningless without employees. Brexit has closed off the ability to bring in foreign workers, and the logistics industry is one with the least uptake among younger people, who see it as uninteresting labour with minimal pay. The latter is not true in many cases, but the truth matters little if the perception is otherwise, and this only goes to show that the industry is not doing enough to reach out and change the minds of young people. While logistics firms are doing their best to lobby to younger audiences to try and get more people interested in the industry, it’s hard to know how effective this has been. Shocking new research published nationally suggested that 25% of young people feel they are not prepared to enter the workforce, up to and including having no idea what they want to be. While it’s naïve to say that is 25% of young people the logistics industry can be targeting, they can at least aim for a portion of that number. © stock.adobe.com/kokliang198136 Business Link www.blmforum.net RENEWABLES Navigating the UK’s green wave Navigating the UK’s green wave www.blmforum.net Business Link 37 RENEWABLES © stock.adobe.com/fadi UK businesses stand at a green crossroads as renewable energy capacities surge. From wind power dominance to legal considerations, we explore the profitable path to sustainability. O ur collective commitments to decarbonisation in the UK have been sparking such surges in renewable energy capacity, that businesses need only choose how they’re going to back the cause. Funding promises and incentives for private investment all support a national effort to achieve net-zero greenhouse gas emissions by 2050, an agreement that will have been five years in the undertaking by June of this year. Wind power leads the charge in the UK’s renewables drive, dominating the industry. Among the many sources of natural energy generation, the applications of wind have received substantial funding, with £19 billion in investments just between 2016 and 2021. Offshore wind, in particular, benefits from the East of England’s large offshore capacity, thanks to shallow waters and high wind speeds in the North Sea. All this behind-the-scenes investment in broadening horizons for readily available sources such as these, means that switching to renewable energy suppliers has become a quick, effective way for businesses to reduce energy costs and enhance their green image. But before diving into renewable energy technology, care should be taken to ensure that all legal and compliance matters are arranged in advance. You and your business should consider factors such as planning permissions, connection requirements, and regulatory obligations. A thorough business renewable energy site survey, compliance with the Microgeneration Certification Scheme, and long-term lease agreements for premises ownership are crucial prerequisites. From here on out however, renewable energy offers a variety of options tailored to a multitude of businesses, with all their unique sets of needs and possibilities. Wind power utilises the now-iconic turbines for electricity generation inland as well as offshore, making them ideal for land-rich areas. If you don’t have lots of land or sea at your disposal but are situated near flowing water, hydroelectric power is a dependable resource once the specific site needs are covered. But by far, one of the 38 Á38 Business Link www.blmforum.net RENEWABLES most reliable and available providers of renewable energy is sun, even in our changeable climes. In solar power sectors, familiar solar panels harness sunlight for electricity and can be easily fitted on building sides. Solar thermal energy simply uses sunlight to heat water, an effective and space efficient option for hospitality, leisure, food service, greenhouse farming, and more applications besides. Heat and electricity generation have more debateable solutions in anaerobic digestion, which produces heat and electricity by burning methane from organic material breakdown, or biomass systems. The latter also burns organic matter, including coal, and both are more maligned for not necessarily being carbon-neutral. Geothermal and ground source heat pumps use low-level ground heat for heating and cooling, less common than solar power but similarly space-friendly through the use of panels. Simultaneous production of electricity and useful thermal energy (like steam or hot water) from a single fuel source, such as natural gas, can be used to cut down on fuel in a method known as combined heat and power, which is more responsible but costly to install. Understanding the expenses and payback periods is key for businesses considering renewable energy investments, as cost can range from £2000-£6000 for small turbines. Combined heat and power is perhaps the most pricey single-payment solution at £32,500, which means a wait of 10.5 years to see results from payback. But hydroelectricity and anaerobic digestion charge at scaled rates by the kilowatt, so www.blmforum.net Business Link 39 RENEWABLES careful budgeting is a must before installation plans are set in motion. As we look ahead this year, several emerging technologies hold promise for revolutionising the renewable energy landscape. Wave generation, leveraging the power of our plentiful coastlines, could contribute as much as 14% of the nation’s energy demand. Enhanced geothermal, drawing hydraulic stimulation from porous rock, shows potential for generating heat efficiently. Plans to capture solar power from space could introduce a new dimension to renewable energy sources. Nanotechnology-driven processes, known as artificial photosynthesis, may emerge as well and offer a sci-fi solution to generating methanol for industrial and vehicle fuel sustainably. As a hydrogen- rich substance, methanol is also being considered a potential candidate for carrying liquid organic hydrogen for energy storage, transportation and decentralised energy systems. Bringing things back down to earth for now, adopting renewable energy offers numerous everyday advantages for UK businesses. Stable energy costs assured by non-harmful natural resources are unaffected by price fluctuations, and additional income can be generated by selling excess electricity back to the grid. Improved energy management allows for better planning, emissions reduction aids in meeting carbon reduction targets, and an enhanced reputation demonstrates commitment to sustainability. Most obviously but also most importantly, sustainable energy reduces dependence on finite fossil fuels, which cannot be held as responsible energy resources in the years and decades ahead. Civil society plays a crucial role in the promotion of renewable energy in the UK, a fact that should be respected by businesses if they’re to remain relevant in a future-conscious consumer market. The environment consistently polls as one of the top three issues for the British public. Our country’s shared concern is fuelling the rise of responsible investing, together with a strong activist shareholder culture, which benefits the renewable energy sector so it can become increasingly advanced, varied and accessible. At a community level, on- site distributed renewable generation and storage projects have grown, underpinned by environmental concerns, technological innovation, and government policy. The anticipated trends for 2024 bring promise of further technological advancements and burgeoning investment opportunities, providing viable solutions to global issues such as climate change and dwindling natural resources. In this field, the UK’s social and governmental commitments to renewable energy continue to offer new possibilities for businesses seeking to embrace sustainability and contribute to a greener future. We’re being driven by ambitious targets to eliminate carbon from the power mix by 2035, a stepping stone on the way to net-zero goals. As the nation works towards a greener future, businesses have a unique opportunity to contribute to this transition, while reaping the financial and status benefits of sustainable practices. © stock.adobe.com/SoonthornNext >