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Yorkshire and Humber poised to become ‘renewables super cluster’

David Baggaley — Fri, 16 Dec 2011 10:33:12 +0000

“The pressure to source renewable energy has never been greater”, said Insider editor Richard Abbot, introducing the Yorkshire Renewables Debate yesterday (15/12/11) in Leeds. And, while growing the sector presents major challenges, there are also massive opportunities that affect everyone from the largest PLC down to the smallest SME.

Rising oil and gas prices, combined with the drive to meet EU-mandated targets for carbon reduction, are forcing the debate about alternative energy sources onto the agenda. But, as speakers at the debate pointed out, there is still no coherent cross-departmental government energy strategy or policy on renewables.

According to Jeremy Tomkinson, from the National Centre for Biorenewable Energy, Fuels and Materials, the region’s natural assets and potential put it in an ideal position to take advantage of growth in the renewables sector. However, the supply chain and infrastructure is only now becoming established. “Three or four years ago this was all conceptual but Yorkshire and the Humber now has the opportunity to become a key player in the sector for years to come.”

Meanwhile, could the ‘dash for gas’ slow the uptake of renewable energy sources and technologies? Experts agree that fossil fuels will continue to be part of the energy mix. “The UK will need a base load of fossil fuels power generation for the foreseeable future,” Tomkinson acknowledged. “But government has the power to drive adoption of renewable technologies through carbon reduction targets and the renewable energy obligation on power generators.”

Market dynamics have an equally important role to play, said David Shepherd, group development manager for Able UK, which is developing the Able Marine Energy Park on the east coast. “Turbine manufacturers will not place facilities her in the UK until they have market certainty that allows they to achieve economies of scale and drive down unit costs.”

Government subsidy is therefore vital, he argued, at this stage in the development of the renewables sector. “Offshore wind is a new industry. Subsidies are there to support it through the early phases until it can reach critical mass. A lot also depends on how high the grid price for non-renewables goes.”

Uncertainty in the money markets is also slowing development of the industry, according to John Powell, corporate director at Barclays. “We’re still in the pump priming phase. The investment required is massive and the wholesale money market, which is where the investment is going to come from, has its own challenges right now.”

As Tomkinson points out though, the renewables industry is not just about energy. In some sectors such as plastics and polymers derived from natural sources, the economics already make sense. “If you understand the waste supply chain, these are entirely renewable resources,” he said.

So how can SMEs make the most of emerging opportunities in the sector? To date, the main opportunity has been abound Solar PV but recent changes to feed in tariffs have challenged this. Longer term opportunities, according to panelists speaking at the debate, are in the supply chain for large projects such as the Humber offshore wind farms.

SMEs will, of course, need access to finance and that’s likely to be provided for by standard bank lending arrangements. “Visibility of orders will be a key issue in making the business case for investment and the key question is how quickly the industry can get going. Once orders become demonstrable, it is simply an issue of banking risk,” siad Powell.

Panelists agreed that the bid to locate the Green Investment Bank in the region could provide a major catalyst for the development of the sector. The government plans to release funding in tranches of £100 million that will be rolled into the Green Investment Bank once it is up and running in 2015. And, while there are 20 bids from all parts of the country, commentators say only a handful are credible. Given the strength of the financial services sector in Leeds and, with the Humber looking as though it will become a super cluster for renewables, bringing the Green Investment Bank to Leeds could have a major transformative effect on the regional economy.

Order books weakening for manufacturers – CBI

David Baggaley — Fri, 16 Dec 2011 09:29:26 +0000

Manufactureres have reported a further slight weakening in total order books in December, while export orders remained well below their long-run average, the CBI has said.

As a result, firms expect production to fall over the coming quarter, according to the CBI’s latest monthly industrial trends survey.

Of the 434 manufacturers who responded, 18% reported total order books to be above normal, while 41% said that they were below.

The resulting survey balance of -23% is the lowest since October 2010 (-28%).

Export demand also remained depressed with 44% saying export order books were below normal expectations.

In line with weakened order books, manufacturers expect to reduce production over the next three months, the research found.

Ian McCafferty, CBI chief economic adviser, said: “Conditions in the UK manufacturing sector remain difficult, with demand both at home and abroad subdued. The weaker export performance no doubt reflects on-going instability in the Euro area, our biggest export market, and its knock-on impact on prospects for the real economy.

“A clear and orderly resolution to the crisis remains essential to prevent further adverse effects on both UK manufacturing and the wider economy, and to lift business confidence.”

Published with permission of TheBusinessDesk.com

Symington’s mops up with sauce brands

David Baggaley — Tue, 09 Aug 2011 08:58:41 +0000

Symington’s, the Leeds-based food business, has added to its portfolio of leading names by acquiring the Chicken Tonight and Ragu brands.

The purchase of the two names from Unilever by the Leeds-based business is expected to boost its annual gross sales to around £150m.

It follows the recent acquisition of salad crouton brand La Rochelle and the re-introduction of the Campbell’s soup brand to British supermarket shelves by Symington’s.

Other brands in the Symington’s growing portfolio including Ainsley Harriott, Aunt Bessie’s, Mugshots, James Martin and Golden Wonder.

David Salkeld, chief executive at Symington’s, said: “The Unilever acquisition is a significant step for our business and we are delighted to have completed the deal.

“We have a proven track record of taking on heritage brands, rejuvenating them and introducing new product developments.

Read full story>>>

Xiros showcase creativity at the heart of UK manufacturing

David Baggaley — Tue, 29 Mar 2011 11:53:07 +0000

With great play being made of manufcturing’s role in helping to ‘rebalance’ the UK economy, the Financial Times has launched a new video series looking at what qualities the companies of the future will need. The series opens with UK manufacturing editor Peter Marsh visiting Xiros, the Leeds-based pioneers in artificial ligaments. Marsh talks to chairman and technical director Bahaa Seedhom and explores the company’s relationship with academia, engineers and surgeons, highlighting its British mix of creativity, enthusiasm and attention to detail as key to its success. The series continues with Marsh interviewing Andrew Cook, chairmain of William Cook Castings, and Brian Thomas of Briton Engineering Developments.

>>> View video: http://video.ft.com/v/821966229001/Creativity-at-heart-of-UK-manufacturing

Manufacturing key to future of UK economy says business minister

David Baggaley — Mon, 13 Dec 2010 14:14:46 +0000

According to reports on TheBusinessDesk.com, the government has invested £50m in the Manufacturing Advisory Service and launched a review into the future of advanced manufacturing in the UK.

The move comes after the government abandoned plans to publish a manufacturing framework in favour of incorporating its plans for the sector in its wider “growth review” which will report next year.

Business minister Mark Prisk said: “A strong manufacturing base is essential for a balanced economy, where exports and investment drive growth, not debt and unsustainable government spending.

“The review into advanced manufacturing will see the government align with industry in our shared ambition to put manufacturing industries on a more solid footing than in the past decade.

“I am looking forward to the manufacturing summit which will be an opportunity to agree actions that government, industry and education can take over the next 10 years to meet our challenging ambitions.

“While recent statistics have shown the future is bright for manufacturing the job losses announced by BAE systems show that there remains challenges that the government will need to work with industry to address.”

The government has announced plans for an “advanced manufacturing summit” in January to be attended by manufacturers and key Ministers including Deputy Prime Minister and Sheffield Hallam MP Nick Clegg.

Meanwhile the Department for Business, Innovation & Skills has published the Growth Review Framework for Advanced Manufacturing, examining how we can remove the barriers that are preventing the UK becoming Europe’s leading exporter of high value goods and stopping people from seeking a career in engineering.

Smart move for school uniform manufacturer

David Baggaley — Mon, 11 Oct 2010 09:05:54 +0000

MORE than 20 new jobs have been created at a Yorkshire school uniform company thanks to a strategy combining traditional garment tailoring and niche internet retailing. Specialising in school uniforms, Perry Uniform, based in Bramley, Leeds, has grown significantly over the past two years and is on target to achieve annual sales of £2.5m.

The Business Desk reports that Perry Uniform recently relocated to Bramley in a £300,000 self-funded move that created 23 new jobs in an 18,000 sq ft complex that houses production, a design studio and sales call centre. The company, which has a 38-strong workforce, has further expansion plans for its customer service department.

Mananging director Bernard Bunting said: “We operate in a cut throat and competitive market but our value added services set us apart from the multiple retailers. We are available 24/7 – 364 days of the year and we carry stock all year round – not just during the peak back to school period.

“Importantly, we use hard wearing, long lasting cloth milled in Yorkshire for our blazers, jackets and suits; we embroider school crests on garments to establish a sense of belonging and identity that reflects the ethos and heritage of the school.”

Perry Uniforms also sews in personalised embroidered name tapes and offer free delivery and returns of orders direct to home or offices. It has also introduced a repair and alteration service.

Yorkshire Resilient Nature Paying Off

Guest Blogger — Fri, 04 Jun 2010 08:15:55 +0000

Blog from Jason Whitworth, partner and manufacturing expert based at BDO in Leeds

There’s no denying the region’s manufacturing businesses have had a tough time, but we are starting to see Yorkshire’s resilient nature pay off, as more companies report signs of improving demand and are looking to the future with greater confidence about prospects for recovery.

We have seen a larger than expected improvement in output and orders since the start of the year and Yorkshire’s manufacturing companies are starting to feel more confident and upbeat since the financial crisis began in mid-2007.

A number of risks to manufacturers’ prospects still remain and should not be overlooked. Not least uncertainty about how to repair the public finances, ongoing access to finance issues and the sustainability of recovery in export markets. As a result, I would expect to see investment intentions remain muted for a while to come.

Yorkshire manufacturers look to be making impressive gains in exports and it is hoped that the weakness of the pound enables further inroads to be made. In the short to medium term it is difficult to see significant growth in the developed nations of Europe, so as the new economic world order changes, manufacturers need to focus efforts towards high growth emerging markets.

We all need to remain vigilant of the environment in which we are operating, continuing to monitor the health of all major customers, identifying and acting if aged debts begin to mount, and reviewing the security of our supply chain. We also need to be thinking long-term in preparation for competition from a number of countries that will become economic powerhouses over the coming five years.

In terms of the recovery, manufacturers are considerably better placed to bounce back than other sectors that are more reliant on consumer spending to fuel their recovery. While I welcome George Osborne’s plan to protect manufacturers under a new corporation tax framework, there needs to be a clear strategy that rebalances the economy and encourages exporting. This means removing red tape, providing specific support to mid-market manufacturers and supporting emerging technologies, whilst not forgetting the UK’s traditional industrial base.

Manufacturing currently represents around 12 per cent of UK GDP. We need to get back to producing things and personally I would like to see manufacturing push it’s way back up towards 20 per cent of GDP with the right investment and support from the government. In the region, the manufacturing sector is 11 per cent of the total output per year, so any recovery in this sector will be a welcome positive sign that the economy is rebalancing.