< Previous20 Business Link www.blmforum.net FREIGHT, STORAGE AND MOVEMENT © stock.adobe.com/teamjackson Freight for the future 20-23.qxp_Layout 1 07/03/2023 12:27 Page 1www.blmforum.net Business Link 21 FREIGHT, STORAGE AND MOVEMENT T he roads in our regions are already at max capacity in many cases, and badly damaged in others, and the rail systems in place, while functional, are nothing to write home about. Transport Secretary Mark Harper has spoken recently about the need to “take politics out of railways.” The plan, first proposed in 2021, would see the formation of a new body called Great British Railways (GBR) which Mark Harper has assured will be an arm’s length body, and not Network Rail 2.0. GBR would own the infrastructure, receive money in terms of fares, and contract private partners to run trains and provide services. While a lot of GBR’s plans are indeed set for rail by way of passengers, Mark Harper did go onto mention his excitement for expanded freight opportunities, and how sending more goods by rail would greatly reduce the carbon footprint and environmental impact of a similar number of HGVs on the roads. The benefits of improved rail systems are obvious but the costs involved might be more problematic. The UK’s existing infrastructure is limited, both in rail and As the UK seeks to become more independent in terms of trade and supply, there is a predictable necessity for greater infrastructure surrounding freight movement and storage within the country. 22 Á © stock.adobe.com/offcaania 20-23.qxp_Layout 1 07/03/2023 12:27 Page 222 Business Link www.blmforum.net FREIGHT, STORAGE AND MOVEMENT by road, and the regions in the midlands and the north suffer especially from poor quality roads dotted with potholes and in need of repair. Similarly, existing rail lines are very old and often require repair and maintenance of their own. The Govt has drawn parallels to Japan for how integrated, versatile, and effective their own rail system is, but Japanese rail is taken very seriously by the people there. It is well-funded, well-kept, and very modern, whereas our own is well behind the times. The UK would need – and likely does need if it wants to hit Net-Zero targets by 2050 – a great investment in the rail system. Some have estimated that figure to be close to £96 billion. Problems come in the form of apathy among much of the public however, who only see the price tag and don’t understand the benefits. This can be seen in the development of the HS2 which continues to see complaints across the country, but especially in London where voters cannot grasp how the midlands and the north might need or deserve such investment. What a newly updated and advanced rail system would also do is enable the development of new commercial land around the rail sites for warehouses and storage. Mark Harper highlighted that he wanted to expand commercial opportunities around land and property near stations. This would be a much needed boon to our region, as warehouse space here is already both limited and highly profitable, so offering up more space for usage as such would do a lot to 20-23.qxp_Layout 1 07/03/2023 12:27 Page 3www.blmforum.net Business Link 23 FREIGHT, STORAGE AND MOVEMENT lessen supply chain woes in the region. Of course, all these new opportunities might not be all too useful if more work isn’t done to draw more talent into the workforce in these industries. High employment rates across the country have led Jeremy Hunt to try and draw people out of retirement (which is unlikely to see much success) and Brexit has prevented many companies taking on workers from the continent. As a result, all these new measures and jobs created, while great to hear, might only make recruitment woes worse for companies in the local area. More needs to be done to appeal to younger people in schools and get them interested in jobs in rail and freight ahead of when they are looking for jobs. The industry at the moment simply isn’t an attractive one to younger generations, and for good reason. It’s often seen as a low-skilled, low-pay job without much in the way of excitement. With so many jobs available, and so few workers looking, the simple fact is that younger people can afford to shop around for the right job for them, so the freight industries need to do more to lure in talent. One area this can work in, and one are not being utilised, is through sustainability and environmental drives. Rail freight will be great for the environment, and younger generations care greatly about environmental matters, so boasting of the work being done, and showing real commitment to such causes, can make a business more attractive to younger people. © stock.adobe.com/donvictori0 20-23.qxp_Layout 1 07/03/2023 12:27 Page 424 Business Link www.blmforum.net FINANCE Rising interest rates, staggeringly high inflation and governmental chaos – it’s pretty much the recipe for what you want your economy “not” to look like, and that’s having a knock-on effect on the region’s finance and its ability to do business. Investment in the UK is directly tied to how attractive its markets are, and how much investors think they stand to gain. While Yorkshire and Lincolnshire are no doubt good places to do business, it’s still marred by the overall state of the country’s economy and finances, meaning that investors – including banks – are likely feeling a little shy at the moment. That is predictably making it difficult to source finance, or at least to The region’s finance The spring budget approaches and Yorkshire and Lincolnshire – along with much of the UK – needs a support. Will we get it? 24-27.qxp_Layout 1 07/03/2023 12:29 Page 1www.blmforum.net Business Link 25 FINANCE source it on good terms. There are always those prepared to take advantage of the harsher conditions to demand greater shares or higher rates than businesses would normally get. The levelling-up funds were released recently as well, which caused no small amount of controversy because of a generalised spread of the funding all across the country, including in London. Where the stated goal was to level up less advantaged areas, it seems instead that the money has been distributed evenly across the country. This is problematic in our region where a lot of it will have to be put into our ailing road infrastructure, which in some regions (such as Lincolnshire) has been labelled as some of the worst roads in the country. Simply put, it never feels as though there’s enough money to go around, and these cashflow problems are being reflected in local businesses. A culture of late payments has worsened over the © stock.adobe.com/Kittiphan 26 Á 24-27.qxp_Layout 1 07/03/2023 12:29 Page 2FINANCE last few years, leaving many to struggle to recoup invoices, and that’s to say nothing of business closures leaving many debts unpaid. Financial concerns are always part and parcel of a bigger picture, usually the state of the economy, which is in itself influenced by any one of a hundred factors. That is what makes it especially vulnerable to shakes in the market. High levels of employment and a difficulty finding staff as a result of that, and the loss of international hires from Brexit, has led many companies to struggle. The work is there, as is the profit, but without staff to hold positions they’re unable to make the most of it, or have to pay far more than they did before to attract people. This has a knock-on effect on a company’s finances, impacting their suppliers, and sending the tremor down the chain until many more companies are impacted. The spring budget will be something that many businesses will be looking to specifically, as the Conservatives will be desperate to try and regain some of their lost reputation, and give a convincing reason (one would hope) as to why they should not be voted into oblivion in the next general election. The budget may not be as bleak as feared either, as falling energy prices – even if those haven’t passed onto consumers – and better- than-expected tax revenue may give Jeremy Hunt something to work with, but the treasury has already established that major tax-cuts are off the table despite the windfall. Major focuses within the budget are expected to focus on attempting to address the stated problems about a lack of good recruits – with efforts in store to draw more retirees back into work, and also getting the long-term sick into work as well. Both of these have gained somewhat negative reviews among experts, and among the retired who feel that even a year or two without income tax would not be enough to get them 26 Business Link www.blmforum.net 24-27.qxp_Layout 1 07/03/2023 12:29 Page 3Business Link 27 interested in the 9-5 grind once more. There is an anticipated fuel duty cut, though how much of a cut this will be is up for debate. Fuel costs are expected to rise by RPI inflation (7p) in April, and a temporary 5p fuel tax cut put in place by Rishi Sunak is also set to expire. Therefore Hunt may decide to continue or extend the cut, which won’t actually mean anything has changed – and in fact fuel will be more expensive per litre. On the other hand, there is the possibility of a greater than 5p cut, which could have some benefit. Unfortunately, and by far the most problematic, has been that Corporation Tax is expected to rise. This is despite a chorus of protests and evidence put forward by businesses that this is the last thing the economy needs at this time. The CBI have already hinted that the Conservative party has stopped being seen as the party for business, and decisions like this are likely to inflame that line of thinking. Worse still, some investment incentives may also be axed to save money, making the UK even less of an attractive investment target. All of this is subject to change and we will be covering the budget when it is released. © stock.adobe.com/davidionut © stock.adobe.com/William www.blmforum.net 24-27.qxp_Layout 1 07/03/2023 12:30 Page 428 Business Link www.blmforum.net MATERIALS AND COMPONENTS W hilst the demand for commercial construction in 2023 is forecasted to be less than infrastructure and housing, it is nevertheless expected to grow by approximately 2.5%. Within this growth is companies seeking to construct buildings or alter existing ones to incorporate more sustainable materials. Many industries are looking to increase their sustainability credentials in line with consumer concerns, and to secure their future in the face of the depletion of certain natural resources. As a growing trend, the market for and availability of sustainable construction materials is growing rapidly. Interesting new resources have recently hit the market, Waste not Waste not Construction needs to become more sustainable, which is why many are now looking to the materials and components used – to see if those can’t be the deciding factor. 28-31.qxp_Layout 1 07/03/2023 12:31 Page 1www.blmforum.net Business Link 29 MATERIALS AND COMPONENTS with positives and drawbacks for each. Firstly, a sustainable material can be defined as one that does not deplete non-renewable resources and has no adverse environmental impact when used. When reviewing that definition, the first thing that likely comes to mind is recycling, and yes, recycled, or reclaimed building waste is a sustainable material. Arguably, this is the most sustainable way of constructing new buildings if ‘closed loop thinking’ is employed. The easiest way to operate closed loop construction is to re-use materials or components in situ, so using an existing building or parts of buildings (this extends to foundations, frames, and façade masonry) and upgrading specific areas as necessary. If the structure no longer remains, the existing ground floor slab could be built upon. This would mean fewer hazardous materials such as concrete would have to be used, lessening the environmental impact of each project. 30 Á 28-31.qxp_Layout 1 07/03/2023 12:31 Page 2Next >