< Previous10 Business Link www.blmforum.net 2025 BUSINESS PREDICTIONS Looking ahead 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. www.blmforum.net Business Link 11 2025 BUSINESS PREDICTIONS Alexandra Fogal, Partner, Head of Private North at EY The outlook for Yorkshire’s private mid-market appears bright and full of potential for 2025. Indeed, despite ongoing economic headwinds, including increasing employment costs and geopolitical tensions, there are reasons for optimism as we look forward to the year ahead. There are several investment hotspots in Yorkshire, including renewables, as the UK’s drive towards net zero continues. Indeed, the focus from companies within the private mid- market on their ‘sustainability in business’ practices, especially led by regulation, ramped up substantially in 2024 – a trend that appears likely to continue throughout 2025. Meanwhile, technology is another area with significant growth potential in 2025. The adoption of Artificial Intelligence (AI) and the integration of clean technology have been recent priorities for businesses in the region, and throughout the UK, which bodes well for tech growth prospects going forward. Diving deeper on technology, the manufacturing industry is embracing significant transformation through the adoption of robotics, while the growing prominence of e-commerce is driving sustained changes in consumer habits, as well as supporting supply chain resilience. Property is another area in which investment prospects appear bright for 2025 in Yorkshire, with urban regeneration real estate projects on the rise as businesses look to embed themselves in their communities to help drive regional growth. An apt recent example of this was EY’s move to its new Leeds office at Wellington Place. Furthermore, for both Yorkshire and the UK more broadly, prospects for the Private Equity (PE) market appear promising for 2025, with market activity steadily increasing of late, and businesses likely to have access to higher levels of capital in the new year to help support and drive investments. 12 Business Link www.blmforum.net 2025 BUSINESS PREDICTIONS Jeremy Hughes, Director at RBH Properties and developer of Pennine Five in Sheffield Following a challenging 2024, marked by continued political uncertainty and the Autumn Budget, the commercial property market is entering 2025 with far more clarity. While some economic challenges remain, occupiers and landlords now have a clearer vision of what’s needed – high-quality, flexible spaces that not only appeal to employers but also meet the needs of employees. The good news is that the ‘return to the office’ is definitely happening. Businesses are starting to take their office space seriously again and understand the crucial role it plays in attracting and retaining talent. I expect this trend to gain even more momentum in 2025. However, due to the challenging business environment of recent years, not every business can afford to step into a new Grade A development. And even if they can, many cities, Sheffield being one, have a limited supply of brand-new commercial developments – an unfortunate legacy of Covid-19. Therefore, it’s essential for cities to strike the right balance in their commercial offering – delivering more affordable high-quality spaces that still feature outstanding amenities and flexible leasing terms, to complement flagship developments. We’re seeing this combination prove very popular at our revitalised Pennine Five office campus in Sheffield, which is attracting a diverse mix of technology SMEs, innovation firms, and serviced office providers like Spaces. I’m confident that 2025 will be a strong year for the commercial property sector. Richard May, CEO of virtualDCS Survival hinges on the speed of recovery in 2025 In 2025, speed will become the ultimate differentiator in the face of cyber incidents. With breaches taking longer to detect and contain, organisations that fail to invest in rapid restoration technologies risk prolonged downtime, reputational damage, and client attrition. Advanced failover systems, automated recovery tools, and real-time monitoring will no longer be a luxury – they will be critical for businesses looking to maintain competitive advantage. Closing the Microsoft 365 responsibility gap will become a top priority Reliance on cloud platforms like Microsoft 365 will continue to grow, but 2025 will see organisations take accountability for their data protection under the shared responsibility model. Businesses can no longer assume their data is inherently safe. Instead, proactive measures, such as third-party backup solutions and robust configuration monitoring, will be essential to prevent accidental losses and counteract growing cyber threats. Diversified backup strategies will be non-negotiable As cybercriminals increasingly target both live systems and backups, the principle of geographic and provider diversification will become non-negotiable. In 2025, businesses must verify that backups exist in entirely separate environments to withstand worst-case scenarios. Those who fail to decouple backup storage from live operations will risk total compromise in the event of a breach. Proactive preparedness will drive strategic resilience From the NHS Synnovis breach to the British Library and Transport for London (TfL) cyberattacks, 2024 offered hard lessons on how unpreparedness compounds the fallout of cyber incidents. In 2025, businesses will no longer have the luxury of reactive planning. Comprehensive incident response plans must account for every stage of a breach, from containment to recovery, regulatory compliance, and customer communication.www.blmforum.net Business Link 13 2025 BUSINESS PREDICTIONS Martyn Kendrick, Regional Director of Yorkshire and the Humber at Lloyds As we look ahead to 2025, Yorkshire’s diverse and dynamic economy is well- positioned to drive growth across key sectors. The technology sector continues to lead the way, with businesses ramping up investment in digital transformation and automation to tackle longstanding productivity challenges in the North. From AI-driven tools to cloud-based platforms, these innovations are helping firms operate more efficiently and stay competitive in an evolving landscape. Yorkshire’s professional services sector, anchored by Leeds’ position as home to the second-largest legal hub outside London, is also set to thrive. As businesses navigate more complex regulatory challenges, the demand for expert advice is rising, solidifying the region’s reputation as a thriving leader in legal and professional services. Industrial manufacturing remains a cornerstone of Yorkshire’s economy, with a renewed focus on sustainability and innovation. By adopting energy-efficient processes and leveraging advancements in green technologies, manufacturers are staying competitive while contributing to the region’s net-zero ambitions. Yorkshire’s attractiveness lies in its diversity, and by embracing its many sectors’ strengths, businesses across the region are creating opportunities for long-term prosperity in 2025 and beyond. Alexis Krachai, President for Sheffield Chamber of Commerce and Industry Goodbye 2024. Hello 2025. What will you bring for businesses across Yorkshire and Lincolnshire? On a global scale, welcome back Mr. Trump. He’s discussing making it harder for companies outside the U.S. to sell products and services there. The UK has a special relationship with the U.S., but if you’re exporting to America, stay in touch with your local Chamber of Commerce and inform your MP about tariffs that could impact your business. Closer to home, the UK economy is either turning a corner or under pressure, depending on who you ask. The increases in national insurance and other tax rises were not well-received towards the end of last year. The government needs to act quickly to rebuild business confidence. Expect reassuring words but pay attention to the Spending Review in June. The government will set its big spending priorities for the coming years, and it’s crucial they support local businesses by not cutting business support. Lastly, if you run a business, how can you navigate what is likely to be a challenging and interesting year ahead? Get out and about. Growing your network isn’t just about finding new customers and clients; it’s about getting the inside track on the wider economy, understanding political changes that can impact your business, and learning how to harness new technologies. If 2024 was the year we woke up to artificial intelligence, 2025 is likely to be the year many more businesses start using this technology to fuel growth. We live in interesting times. Carrie Webb, Head of Communications at The Bigger Boat Audience-driven communications will be key in 2025 Trust building and truthtelling. Informing decision making. Meeting heightened expectations for digital and physical experiences… There’s a lot riding on your brand’s content, yet it needn’t be a tall ask of your content marketers. When it comes to understanding and delivering on your customers’ needs, your content strategy is the driving force in communicating crucial messaging. And it cannot be empty words. In 2025, your content must be perfectly attuned to your audience segments and their customer journey, i.e. it must go so much further than simply meeting them at each brand interaction. It should be steeped in solid research that’s gotten under the skin of who your customers are, and what drives their decisions and frustrates them. You should glean insight from your stakeholders, and extract data from pivotal moments of the customer journey to understand the why behind their behaviour. Only then, armed with a thorough view of the customer experience, will meaningful content truly engage audiences and ‘perform’ (a word that’s bandied around often but suffers from very different perceptions attached to it). 14 Business Link www.blmforum.net COMMERCIAL PROPERTYwww.blmforum.net Business Link 15 COMMERCIAL PROPERTY 2024 closed with a number of fresh deals across Yorkshire and Lincolnshire, with investors, businesses and developers setting their sights on the region. Y orkshire and Lincolnshire concluded 2024 with a plethora of major deals across offices, industrial sites, and residential schemes, as the region continued to attract investors, businesses, and developers. A key acquisition in Leeds saw the prime office building 6 East Parade sold for in excess of £10 million. Acting on behalf of Bridges Fund Management and Evenacre, CBRE’s Leeds Investment team completed the sale, with STR Capital swooping for the 16 Á Bridgewater Place16 Business Link www.blmforum.net COMMERCIAL PROPERTY site for a private client. The Grade A office building comprises 44,000 sq ft of space over seven floors with 13 basement parking spaces and is multi-let to tenants including Dentsu, DLA Architects, Claranet, Iwoca, Muse, Overbury and ABS Limited. Alex Whiting, Senior Director at CBRE, said: “6 East Parade is a high quality refurbished building in a prime location and investor interest in the property was strong. This multi-million pound deal highlights the continuing improvement of the Leeds investment market.” Marcus Langlands Pearse, Partner at STR Capital, added: “6 East Parade follows on from our recent acquisition of 2 office buildings in Tunbridge Wells. Bridges have done an excellent job of repositioning this Leeds City Centre office and we look forward to further enhancing the space. 6 East Parade complements our current strategy of buying well let, future proofed buildings in strong locations.” Additionally in central Leeds, at Bridgewater Place, the 30-storey office- led, mixed-use tower, Martley Capital Group agreed terms with premium commercial amenity and workspace provider x+why to occupy 33,990 sq ft. The significant deal will see x+why take the first, second and ninth floors of Bridgewater Place and a new 5,000 sq ft roof top terrace on a ten-year agreement, in addition to the operation of a newly designed building reception and coffee bar. This expands their portfolio of over 430,000 sq ft of flexible office, receptions and food & beverage led clubspaces in sustainable buildings across London, Birmingham, Manchester, and Milton Keynes. Since purchasing the tower in 2022 following years of underinvestment, the current owners have raised £35 million to carry out a complete refurbishment, with the aim of creating a high quality, fully repositioned, energy-efficient building, to return Bridgewater Place’s best-in- class credentials and secure its status as a Leeds landmark. x+why’s offering will present flexible working space, private enterprise suites, meeting rooms, event space, food and beverage, a clubspace and extensive roof terrace. Eamon Fox, Partner and Head of Development for Knight Frank, which represents Martley Capital, said: “Securing x+why is brilliant for the asset and the wider Leeds business community and our approach is to excel in the mandatory characteristics of best-in-class buildings. The baseline for the future office is being reset at Bridgewater Place.” Elsewhere, investors snapped up a 14- acre site in Hull’s growing industrial, manufacturing and renewables sector heartlands in a multi-million-pound deal. The Century Yard site is opposite Green Port Hull on Hedon Road, where Siemens, alongside Associated British Ports (ABP) and Hull City Council have invested more than £300m into creating wealth and employment for the region. Now, commercial property specialists Garness Jones have facilitated a transaction seeing another huge industrial site sold to BVG Property Investments. Managing Director David Garness says it offers ‘a land of opportunity’ to its new owners: “This has been a very pleasing deal to be involved with at Garness Jones as it is rare for the freehold of a site of this size, in a location of such strategic importance to the region with regards to its proximity to the dock facilities, Green Port Hull and other major businesses, to become available on the market. Having gone to market an excellent price was secured for the vendor, and it really is a land of opportunity for BVG Property Investments, an expanding commercial property company who now have this site which has more than seven acres still undeveloped.” Moreover, contracts were exchanged ahead of the planned transformation of the 15-hectare former Cummins site in Stamford, with South Kesteven District Council and landowner partner Burghley House Preservation Trust Ltd reaching purchase agreements with Morris Homes, Inspired Living and Burghley Land Ltd. This makes way for the ‘St Martin’s Park’ development, which will consist of a designated commercial area, mixed-use area, 6 East Paradewww.blmforum.net Business Link 17 COMMERCIAL PROPERTY retirement village, a range of residential properties including affordable homes, and areas of green and open space. South Kesteven District Council bought the Cummins site in 2018, to ensure part of it would be used to provide jobs after the Cummins factory closed, which, combined with adjacent land owned by Burghley House Preservation Trust, makes up the 14.7-hectare development site. Morris Homes will provide the residential development; Inspired Living the retirement village; and Burghley Land Ltd the commercial development. Outline planning permission for the site was granted in 2021 and the next stage in the planning process will see the three developers submit reserved matters applications early in 2025 for their parts of the development, along with an overall scheme to deliver joint infrastructure works on the site. Finally, in a deal bolstering a property group’s residential pipeline, Keyland Developments, the property trading arm of Kelda Group and sister-company to Yorkshire Water, has sold its interests in Templegate Developments Limited to joint venture partner Evans Property Group. Templegate Developments Limited is behind Skelton Gate, a 170- acre former open-cast colliery site to the east of Junction 45 of the M1. To date the partnership of Evans and Keyland has gained planning permission for Phases 1 & 2 which includes up to 1,100 homes, a new school, public open space, a local centre, and a food store. An application is currently running for Phase 3, which, if approved, will provide an additional 700 homes and infrastructure. The scheme is already making a contribution to housing targets with the sale of the 27-acre Phase 1 in January 2022 to Avant Homes and Evans Homes for the delivery of a combined 415 homes. Following the sale of Keyland’s interests, Evans will continue to drive the development forward. Rob Marshall, UK Managing Director, Evans Property Group, said: “The Skelton Gate site is one of the most significant in the Leeds City Region and our successful, long-term partnership with Keyland Developments has brought the scheme to an exciting stage. Three housebuilders are already building and selling houses on Phase 1 of the scheme; Avant Homes, Vistry and our own Evans Homes business. By acquiring 100% of Phase 2 and 3 we have secured a significant pipeline for Evans Homes as we continue to grow that business, adding to existing sites at Tockwith and Skelton, and future sites at Whinmoor and Brayton. We thank our valued partners Keyland for their work on the scheme up to this point and for opportunity to follow our growth strategy for our Evans Homes residential business.” Skelton Gate18 Business Link www.blmforum.net PRODUCTIVITY AND EFFICIENCY Line clearance www.blmforum.net Business Link 19 PRODUCTIVITY AND EFFICIENCY W hen it comes to productivity and efficiency in the manufacturing line, one aspect that many people fail to consider is that of line clearance and efficiency. Simply put, line clearance is the time it takes to empty a line of completed products and get it working again. This is less about a robot moving product off the line, and more about quality control, safety checks and the like. It can also refer to when a product line shifts over from one product to another. For instance, many factories nowadays work on multiple products – a good example being FMCG with different recipes for different foods, etc. The transition period between clearing the line of one product and then altering the recipe, changing batches, making sure it’s all set to make the new product, is a period of down-time that can cost a company millions over the course of a year. The reason this is so problematic is that much of line clearance is still done by human hands. Automation has quite often focused on making products be manufactured quicker, and packaging them quicker, but then falling behind when it comes to quality control. Part of this is because making a robot that screws a cap on a bottle of pop is easier than making one that accurately scans it for any imperfections and particles, but it’s also a case of this part of a line being It’s no good having a fast production line if it takes too long to check and approve the finished goods, or to switch the line over to a new batch. 20 ÁNext >