WARWICKSHIRE MEANS BUSINESS

Welcome

Welcome from leader of the council, Cllr Izzi Seccombe

Hello everyone. A happy and prosperous new year to all.

Welcome to the first Warwickshire Means Business of 2018 - the first of our new monthly editions.

From today we will be bringing out WMB every month to keep you right up to date with all the latest business trends, news and information about funding and the many other strands of business support available from Warwickshire County Council and our partner organisations.

Many of our partners will be represented at the fourth Warwickshire County Council Skills Conference at Stoneleigh on March 7th. We are proud that the Skills Conference has become such a significant milestone in the region's business calendar. It provides a great bridge between the worlds of business and education and I urge you to book your places as last year's very successful event was a sell-out.

Another event which has immediately established itself as a feature in the business calendar is the Coventry & Warwickshire Business Festival. The inaugural festival, in November and December, featured a brilliant series of events and it was both enlightening and inspiring to be reminded again of the breadth of enterprise and innovation possessed by this county's business community.

In this edition of WMB you can read about several examples of such enterprise, including the story of how Nuneaton-based Optical People, who have been helped by our Small Capital Grants scheme. To find out more about the Warwickshire County Council Small Capital Grant, please call us on 01926 41806.

It is no surprise that Warwickshire possesses a great reputation as a prime location for businesses, large and small, in many sectors, and at Warwickshire County Council we are doing all we can to ensure that remains the case far into the future. That future will be increasingly digital, of course, which is why the county council has thrown its weight - and investment - so strongly behind the CSW Broadband scheme which continues to go from strength to strength.

I hope you enjoy this edition of Warwickshire Means Business. The next update will be in February.

Featured News

Support for firms affected by Carillion liquidation

Warwickshire County Council is working with partners to ensure that support is available where needed for those affected, or potentially affected, by the collapse of Carillion Plc.

It was confirmed on Monday 15th January that Carillion, one of the UK’s biggest construction firms and government contractors, has gone into liquidation.

The Official Receiver has been appointed by the court as liquidator of Carillion Plc and it was announced that PwC have been appointed as Special Managers to assist the Official Receiver.

The move has put 20,000 UK jobs at risk and a significant number of businesses (and their associated workforces) which supplied the company will also be affected.

Warwickshire County Council, along with its partners, is doing all it can to offer support and fully understand the potential impact locally and what additional help may be required.

The Coventry and Warwickshire Chamber of Commerce has joined forces with partners across the West Midlands to provide immediate help. A central support line and email address has been established by the Black Country Chamber of Commerce and any firm from Coventry and Warwickshire affected by this development is urged to contact that helpline in the first instance.

Please call 01902 912322 or email carillionhelp@blackcountrychamber.co.uk.

Further information on the situation can also be found at the following website, providing information for employees, creditors and suppliers:

https://www.gov.uk/government/news/carillion-declares-insolvency-information-for-employees-creditors-and-suppliers

PWC have also set up a website to provide further information: https://www.pwc.co.uk/services/business-recovery/administrations/carillion.html

Note: The helpline has been set up by the Carillion taskforce group, which includes representatives from the City of Wolverhampton Council, Black Country LEP, Department for Work and Pensions, West Midlands Combined Authority, Black Country Chamber of Commerce and Department for Business, Energy & Industrial Strategy.

This is brought to you through a partnership with the local West Midlands Chambers of Commerce and Growth Hubs.

Skills Conference will bring business and education together

The worlds of business and education will be brought together at Warwickshire County Council's fourth Skills Conference in March.

The Skills Conference will take place on Wednesday 7th March from 8am-10am (free buffet breakfast from 7.30am) at the National Agriculture & Exhibition Centre, Stoneleigh.

Its central focus will be how business and education can work together to improve the supply and demand of talented young people for the Warwickshire workforce.

Business speakers will include Peter Jarvis, managing director of Warwick-based, Contechs, which recently made The Sunday Times Top 300 for international sales. He will describe the problems he has in filling vacancies in his workforce and talk about new approaches he is trying to tackle shortages and what support he would like to receive from local schools, colleges and government.

The conference will reveal the latest forecasts for future Skills supply and demand in Warwickshire. It will also provide an overview of new initiatives and investment announced in the government’s new Industrial Strategy.

The conference is free to attend but places must be booked in advance in light of last year's sell-out attendance.

Among subjects to be discussed will be: The impact of Brexit; the Skills Gap; current supply (with the very latest analysis); and potential changes ahead.

"The overall objective of the conference is to get people from business and education in the same room to discuss what we can do to bridge the skills gap now and in the future," said Warwickshire County Council skills for employment manager Glenn Robinson.

"To have a healthy supply of talented, well-trained motivated young people coming through the education system to start careers is in everybody's interests. To be work-ready at ages 16, 17 or 18, young people need to have made right choices already so they need the right guidance at 14 and 16.

Another speaker at the conference will be Careers England chief executive Steve Stewart, who will discuss the new national careers strategy and the new requirements it makes for schools to work more closely with business.

There will also be a Q&A with a panel including a Lee Gray, headteacher of Studley High school, and representatives from business, a university and the local enterprise partnership.

To obtain a full programme, please email skillsforemployment@warwickshire.gov.uk

http://www.warwickshire.gov.uk/skillsforemployment.

Places at the conference can be booked at https://www.eventbrite.co.uk/e/the-warwickshire-skills-challenge-how-can-we-meet-it-tickets-41276691696?aff=es2

 

Major investment in broadband will make the region's businesses more efficient

Coventry and Warwickshire companies will be catapulted into the digital age in 2018 thanks to a range of support available.

Major investment has been made in the broadband infrastructure across the region and that is set to continue, giving firms across the city and the county the opportunity to bolster their business through better and more efficient use of ICT.

The Coventry and Warwickshire Chamber of Commerce is offering companies match-funded connection vouchers on projects up to a maximum of £2,500 that will help them to transform their digital capabilities.

The voucher can be used on a superfast connection to the internet as well as equipment or networking capacity that would mean companies can make the most of new technology to help grow their business by moving from slow internet connections to a minimum of 30Mbps – and much more in many areas.

Companies must be based in Coventry or Warwickshire postcodes and must have a broadband speed of less than 30Mbps to qualify for the vouchers.

The vouchers are part-funded by the European Regional Development Fund (ERDF) which is part of a larger project, working with the Warwickshire County Council-backed CSW Broadband, which operates across the region to improve broadband speeds.

"We are delighted to work with the Chamber to offer this support," said Councillor Kam Kaur, Portfolio Holder for Customer and Transformation for lead partner Warwickshire County Council.

"The county council has led the CSW Broadband infrastructure investment programme that has invested tens of millions in superfast broadband. The scheme goes from strength to strength and we encourage all businesses to take advantage of the new opportunities that it presents."

The new scheme sits alongside the recently-launched UK Government Gigabit Broadband Voucher Scheme, which is aimed at companies looking to access 1,000 Mbps.

Coventry and Warwickshire is one of a handful of pilot areas where grants of up to £3,000 are available towards the installation costs of new gigabit capable broadband connections.

The Gigabit Voucher Scheme is being administered by Coventry City Council, on behalf of the Coventry and Warwickshire Local Enterprise Partnership.

Keely Hancox, Operations Manager of the Coventry and Warwickshire Chamber of Commerce, said: “There is a real opportunity here for companies to take advantage of support – and funding – that will help to move them into the digital age.

“Coventry and Warwickshire businesses can really catapult themselves forward in the New Year by taking advantage of this help.

“A fast broadband connection is key to so much of what we do in business – whether it’s downloading big files or, for some, accessing their servers via cloud-based computing. So we would urge companies of all sizes to get in touch, because there is a very strong possibility that they will be able to benefit from what’s on offer.

“With Coventry now the UK City of Culture in 2021, we will want to be as far advanced as possible when it comes to our digital capabilities, so that the whole region can benefit from the possibilities that are opened up through the use of digital technologies.”

For more information, please call Coventry and Warwickshire Chamber of Commerce on 024 7665 4321.

 

Small capital grant was worth "more than just the money" to Ravi

Setting up, and then trying to grow, a small business is a pretty stressful process.

At such a time, all support is welcome - and when Ravi Saigal expanded his business, Optical People, into Warwickshire, the support he received from Warwickshire County Council was appreciated beyond the finance fillip it brought.

The small capital grant of £35,000 went towards the major investment in fitting out Optical People's new optician and frame studio in Market Place, Nuneaton, and that was important in itself. But the grant also gave Ravi a lift in morale as he tackled the many complexities of finding a location in Warwickshire to add to his thriving outlet in Sapcote, Leicestershire.

"It is tough going for any small business setting up, especially in the early stages," Ravi said. "And we are operating in a particularly competitive market place so when you are working 14 hours a day in that sort of environment it can be hard to stay positive and, just as important, healthy. So the county council grant was worth more than just the money.

"It was great to know we had that little bit of support towards the big project we were undertaking. It sounds strange but psychologically it gave me a real lift. Most of the grant money went into fitting the new shop but I looked at it as though we were having the rates paid for a year."

Ravi spoke to Business Ready advisor Alex Toft, based at the University of Warwick Science Park, and accessed the county council grant after identifying a location in central Nuneaton which he felt would work well.

"The practice in Sapcote is ticking over nicely and people clearly like the concept so we wanted to go forward," he said. "We wanted to expand into Warwickshire and looked at one or two places but just couldn't afford it. It is a big financial hit.

"Then a friend of mine in Derby mentioned some support she had received from their council so I googled Warwickshire County Council and found out about the Small Business Grants.

"I chose Nuneaton because that's where I trained and I know the town. I found a location that I felt would work and, though we could have opened in Nuneaton without the grant, it would have been more difficult and taken longer. I would certainly recommend that any small business looking to grow should find out how the county council can help."

  • To find out more about the Warwickshire County Council Small Capital Grant, please contact WCC on 01926 41806. 
  • To find out more about the range of support available to grow your business, please contact the Growth Hub on 0300 060 3747.

 

County council "opened doors" for groundbreaking autonomous vehicle business

A company which relocated to Warwickshire from Argentina has received a grant from the Coventry & Warwickshire Innovation Programme to develop its latest self-driving autonomous vehicle.

Baro Vehicles, based at Mira Industrial Park in Nuneaton, design and produce connected and autonomous compact vehicles and have now received funding support to further develop their groundbreaking project, Baro One.

Baro One is a compact vehicle specifically designed to transport people in private spaces such as university campuses, business parks and golf courses. Using sophisticated engineering, it offers unprecedented levels of technology, comfort and design.

The new product will be the first of its kind to enter the market and sets out to transform conventional ideas about how to drive a car by replacing the steering wheel with a joystick.

Baro have developed their own artificial intelligence software that allows the vehicle to learn from experiences which it can apply to the next journey. 

The Coventry & Warwickshire Innovation Programme grant will be used to produce 10 prototypes for testing and developing. It will also help source the external expertise needed to complete the company's human interface machine. 

Baro was introduced to the programme by Warwickshire County Council inward investment officer Stephanie Williams who encouraged and advised the company's relocation and investment into the UK from Argentina.

Throughout the application process, Baro have been supported by Warwickshire County Council and the Department for International Trade.

Baro chief executive Gabriel Giani Moreno said: "On behalf of the whole team at Baro Vehicles, I send a big thank you to the team at Warwickshire County Council for believing in us and giving us great support.

"By building a self-driving vehicle, we are being part of the history of the pioneers in this field and we are here because when we arrived in this incredible country, the county council opened all the doors and encouraged us. They told us 'Do what you know how to do' - and here we are, working hard to achieve it.

The Coventry & Warwickshire Innovation Programme, partly funded by the European Regional Development Fund, supports local SMEs to develop innovative products or services that will be new to the market.

Companies looking to innovate are urged to speak with a representative from the C&W Innovation Programme and can obtain more information by contacting Kai Cott at kaicott@warwickshire.gov.uk

Fantastic feedback from first Coventry & Warwickshire Business Festival

The inaugural Coventry & Warwickshire Business Festival proved a resounding success with 86 per cent of business people in attendance confirming that their business was positively affected by the event.

Thoughts are already turning towards the second Festival, next November, after the first, which closed on December 1st, attracted thousands of visitors from the local area, the wider region and around the world.

The fortnight-long festival featured 114 events, of which 17 were filled to capacity. Ticket bookings overall reached almost 5,000 and 23 per cent of attendees were visiting Coventry and Warwickshire from outside the region.

Remarkably, for its first year, the festival even gained international presence with visitors from Italy and Nigeria as well as delegations flying in from France, Catalonia and Sweden specifically for events at the Coventry & Warwickshire Business Festival events.

In its first year, the festival, developed by the Coventry and Warwickshire Local Enterprise Partnership (LEP) and the Coventry and Warwickshire LEP Growth Hub, secured headline partnership from the Manufacturing Technology Centre (MTC). It was also supported by a range of public and private sector organisations, including Warwickshire County Council, which understood the importance and relevance of the festival and recognised its potential.

Businesses and organisations from across the region pulled together to make the festival the biggest business event in the region in its inaugural year.

A huge variety of events spanned the whole region, from North Warwickshire down to Stratford-on-Avon in the south and from Coventry, Warwick and Leamington across to Rugby in the east. These events encompassed everything from virtual reality, logistics, tourism & hospitality, HR, data protection and digital workshops and seminars, through to an impressive food and drink expo, showcases from the region’s two first-class universities, trade shows, a small business conference and prestigious annual business award ceremonies.

An abundance of innovation, learning and sharing, networking and collaboration went on with 99 per cent of businesses rating the events they attended as ‘good to excellent’ while 86 per cent confirmed their business was positively affected.

The Business Festival succeeded in placing Coventry & Warwickshire on a national stage, highlighting the amazing knowledge, commerce and culture present and truly showing what the region has to offer to investors.

Margot James, then Minister for Small Business, Consumers and Corporate Responsibility, who spoke at the launch, gave a fantastic endorsement to the Business Festival and all the great work going on in Coventry and Warwickshire.

Planning is already underway for the 2018 Business Festival and it’s not too early for businesses and individuals to sign up now to pledge their support– whether through sponsorship, hosting events or becoming a venue partner.

For more information or to get involved please email hello@cwbusinessfestival.com, visit the Business Festival website www.cwbusinessfestival.com.

County will get major boost from Coventry's City of Culture status

Warwickshire shared the celebrations when Coventry was named the 2021 UK City of Culture last month - and businesses across the county will share the economic impetus from the accolade in the years ahead.

When Coventry came up trumps on that momentous night in December, their bid team was quick to voice their appreciation of support received from beyond the city boundary. Support from the wider region was absolutely crucial to Coventry winning, a point that was specifically mentioned in the judges' feedback.

Warwickshire played a significant part in that support, providing ongoing backing for the bid which culminated in a prestige event at Warwick Castle.

Now the serious planning starts, not just for what will happen in 2021 but events in the lead-up to it with Warwickshire's economy sure to receive a major boost from increased tourism and investment.

Evidence from Liverpool, which was European Capital of Culture in 2008, showed a 34 per cent rise in visitors to the region, generating a direct spend of £754 million. Hull, the UK City of Culture in 2017, has received a commensurately huge lift in profile.

For Warwickshire, the years around 2021 amount to a fantastic opportunity, believes Mark Ryder, head of transport and economy at Warwickshire County Council.

"For Coventry to win the bid was just brilliant," he said "Brilliant for Coventry and also for the wider region including us in Warwickshire.

"Coventry's bid fully-deserved to win. It was a really well-researched, evidence-based bid which we were proud to support.

"Now, as the dust settles, the planning gets underway. There is a lot for the bid team to do, of course, so we have just said to them that we are ready to get involved again whenever they want our input.

"In the meantime, we will think about what we can do in Warwickshire. We have such a culture-rich county, there is massive potential and we want to ensure that every corner of Warwickshire, north, south, east and west, shares the benefit."

More good news for the region arrived when Birmingham was named as host city for the Commonwealth Games in 2022.

Jonathan Browning, chair of Coventry and Warwickshire Local Enterprise Partnership said: “Following hot on the heels of Coventry winning the bid to be UK City of Culture in 2021, it is great news our area will be very much involved in Birmingham being the Host City for the Commonwealth Games just 12 months later.

“We will be further building on our national and international profile since netball will take place at the Ericsson Indoor Arena at the Ricoh Arena and lawn bowls at Victoria Park in Leamington which will attract thousands of visitors from all corners of the globe to Coventry and Warwickshire."

Are you an SME manufacturer who could benefit from a grant?  

SMEs in the manufacturing sector have access to free advice and support from the Manufacturing Growth Programme.

The programme, backed by the European Regional Development Fund, is currently looking to expand in Warwickshire and the West Midlands so if you are a manufacturing SME, please get in touch for a free, no-obligation Manufacturing Strategic Business Review.

You will then be guided through the rest of the process by a dedicated Manufacturing Growth Manager.

The objective is to enable SMEs to bring in external skills, coaching, mentoring or bespoke consultancy to drive growth. Support is bespoke so each SME gets exactly the assistance they specifically require.

Improvement projects which we can support you with include:

  • Sales and marketing
  • Quality systems
  • Supply chain development
  • Leadership and management training
  • Productivity and capacity
  • Innovation and R&D
  • Lean manufacturing

The Manufacturing Growth Programme (MGP) is designed to help SME manufacturers access funding towards specialist external consulting and coaching support to help overcome operating challenges and grow the business.

Grants can be claimed for up to 35% of the total cost of a project (average project: £4,000, grant: £1,400). Grants are available subject to eligibility.

Accessing the Manufacturing Growth Programme is quick and easy. Please contact your local Manufacturing Growth Manager, Michelle Connor, at michelle.connor@egs.live, call 07790 358 674 or visit www.manufacturinggrowthprogramme.co.uk

The programme is Delivered by Economic Growth Solutions Ltd, funded by ERDF.

Clean air solutions happening in Warwickshire

London's famous black cabs are chugging round the capital in greener and more economical fashion thanks to the expertise of a groundbreaking small business based in Warwickshire.

Vehicle Repowering Solutions, near Alcester, have responded to the Government's ambition to cut air-pollution around major cities in the most practical way - by devising technology which repowers the oldest and most polluting cabs with low emission petrol engines while retaining the novel driving features of the iconic vehicles.

Created in March 2017 by directors Andrew Sanders, Richard Gough and Auke Faber, the forward-thinking company is at the cutting-edge of fast-moving technology designed to reduce emissions. And it chose Warwickshire as its base after deciding that the county offers "everything we could have wanted."

The company relocated from Birmingham to Alcester after an initial chat with Steph Williams, a member of Warwickshire County Council's Inward Investment office.

Jagdish Soor, a Business Advisor for Warwickshire County Council’s Economy and Skills team, assists on the delivery of the council's Small Capital Grants scheme, so he engaged with the client through the ERDF-funded Business Ready Programme.

Managed by the University of Warwick Science Park, Business Ready provides focused support and advice to innovative and technology-led businesses. Through this programme Jagdish alerted the company to an ERDF-funded, Proof of Concept Grant, run by Coventry University Enterprises, and guided them through the application process.

A Proof of Concept grant enabled VRS to conduct durability testing for the new engines to meet the stringent criteria set by Transport 4 London. To do this, a cab with the new engine must travel 10,000 miles (at taxi speed) around London while meeting strict emission tests that will be undertaken at HORIBA Mira in Nuneaton.

Testing is now underway - and it's all systems go for VRS.

"It is a very exciting time for us, and we feel we have the perfect base here," said director Andrew Sanders. "Previously I was disappointed by business advice and support offered in other areas but in Warwickshire it has been everything we could have wanted. From my first conversation with Steph Williams, everyone has been really enthusiastic and helpful and Jagdish has pointed us in a lot of good directions."

Most importantly, the company has an excellent, innovative product to take to market. Taxis are amongst the highest air-polluters on the roads so a solution was needed to enable taxi-drivers to continue to trade but in a far more environmentally-friendly way.

At the company's Alcester base, cabs are fitted with brand new engines which run on Liquid Petroleum Gas. The new conversion is not only significantly cleaner but far cheaper as reducing nitrogen oxides by 80% means the fuel running cost is cut by 20%.

VRS has won approval from Transport for London to repower TX diesel taxi models to give the vehicles an extra five-year life extension. Many city centres are now instigating clean-air zones and 63 Birmingham taxis have been converted to LPG as part of a scheme led by Birmingham City Council to tackle air quality in the city. VRS was at the forefront of this project and cab drivers were pleasantly surprised by the reduction of noise and vibration from the engine, along with the fuel savings.

Now the business is set to go from strength to strength in Alcester.

"The premises and location are perfect for us," Andrew said. "We saw the premises on the internet 20 minutes after they were put up, travelled straight there and liked it. The next stage was talking to Steph and the enthusiasm and helpfulness was there straight away. Looking for premises is not easy so it was great that we felt comfortable immediately and soon discovered that Alcester is so friendly too.

Steph Williams added: "It is great to see firms like Vehicle Repowering Solutions choosing to come to Warwickshire. They are a really impressive, innovative business which has responded brilliantly to the evolving market and environmental demands.

"Their expertise will provide UK taxis with fuel savings and extended vehicle-life while providing cities with cleaner air as we transition into the electric/ hybrid vehicle market."

Is your business ready for the GDPR?

With just months to go before the introduction of the General Data Protection Regulation (GDPR), Linsey Luke, Midlands area development manager for the Federation of Small Businesses, explains how businesses need to ensure they are ready.

GPDR is a new data protection regulation that provides individuals with more control over their own personal data. This will change the way businesses must legally handle an individual’s personal data and will mean further responsibilities for businesses who will have to meet the new regulations.

Research from Federation of Small Businesses (FSB) shows that data protection is definitely on the minds of small business owners, with almost 60 per cent of members ranking data protection laws as a significant regulation they have to deal with. This statistic may paint the picture that smaller firms are also aware of, and are preparing for, the introduction of GDPR in May.

Unfortunately, this doesn’t appear to be the case, with many small businesses either unaware of the upcoming changes or having not started preparing for them yet. Earlier this year, YouGov surveyed British businesses about the upcoming data protection changes, specifically GDPR. The results were concerning, with just 29 per cent of UK businesses saying that they had started preparing for GDPR, while 38 per cent said they were unaware of the new rules.

One of the key issues for many smaller firms is that they do not understand the scope of the changes and what they will be required to do. Many people class GDPR as an IT issue, which mainly concerns computer systems and how businesses store personal data. This includes business processes such as how client files and passwords are stored. However, it could also affect other processes across a business, from project management to networking and from sales to customer service.

The main shift of GDPR is that the new law will give more rights to the individual and make companies that handle their data more accountable. This means that record-keeping becomes a lot more important as businesses will need to be able to prove how they obtained this data, what permission they had to retain it, how they are using it and how they removed it if they have been ask to by an individual. It will also be a requirement to obtain, and keep a record of, an individual’s consent to hold the data in the first place.

As a result of the new rights of individuals, businesses may have to alter their current data handling procedures. For example, a good starting point is to look at exactly what personal data is currently being held, and what it is used for. Is the information that is being collected more information than is strictly necessary for the purposes of the meeting? GDPR cracks down on frivolous data collection, meaning that businesses should only collect and keep exactly what will be used.

There are a number of excellent resources available for smaller firms. FSB has a section of its website dedicated to providing GDPR tips, while the Information Commissioner’s Office (ICO) is also a great resource.

Come and join us in the Digital Evolution

The latest from Tech Central, by Sarah Windrum

As the Digital Lead for the West Midlands Combined Authority’s (WMCA)Productivity and Skills Commission, I recently met with Andy Palmer, CEO of Aston Martin, who heads the commission.

I am now workingwith the data with which we were presented to make recommendations for the final report in March - and the data is not what I expected.

I knew that productivity in the West Midlands is down against the national average, but I did not expectthat to apply to the digital sector. Across digital, productivity is nearly £9,000 per person below the national average. I believe the key to productivity is better use of digital - so why is our digital sector not leading the way?

Creating a Culture of Digital

Last summer, the West Midlands Digital Group presented a 'Digital Transformation Call to Action' to West Midlands Mayor Andy Street. It made the case for digital transformation as crucial to improved productivity across the region and discussed the three mainbarriers;connectivity, skills and culture.

One solution I have already discussed in Warwickshire Means Business is the Urban Challenge - a WMCA competition to identify technology companies with potential solutions to address four key challenges in local government: housing; digital citizenship; health & well-being; and youth unemployment. The challenge closes on January 31 and I urge anyone working in this space to visit - www.urbanchallenge.io.

Access to investment and access to a scalable market will certainly improve the productivity of our digital sector and it is great to see local government leading the way. Why do West Midlands venture capital investors travel to London to invest in new technology when it is right on our doorstep?!

Small digital businesses also struggle to gain traction with large public sector organisations and their procurement processes, so the challenge includes a period of mentorship as well as financial investment and customer demand.

Connectivity is a Two Way Street

Infrastructure is crucial. In my role as CEO of the Emerald Group I often advise customers on the limitations of their digital infrastructure. “You can’t run motorway traffic on a B road” is an-oft-used phrase.Sometimes the problem is with servers and hardware but mostly it is limitations ofconnectivity to the premises.

Digital companies are also affected. We chose our current site based on the fibre connectivity yet we still struggle with capacity now the business park is built up. We haven’t invested enough in our digital infrastructure, and like our power network, I fear the worst is yet to come.

Connectivity is a two-way street, requiring investment from both private and public sectors. The Local Full Fibre Network Fund from the Department of Digital, Culture, Media, & Sport supports this dual investment with two current waves.

Wave 1 is a voucher scheme for gigabit connectivity already in place as a pilot across Coventry & Warwickshire (https://gigabitvoucher.culture.gov.uk/).

Wave 2 is a potential game-changer - funding to deliver fibre to all public buildings across a region, giving gigabit connectivity to more rural areas where none has existed before. It offers the opportunity to turn our public buildings into Digital Hubs to best serve communities. A brilliant idea.

Collaboration Succeeds

A Digital Hub at the centre of the community is only as good as the people who use it. And what about the talent pipeline we need to keep our technology evolving to compete with the rest of the world?

We are moving in the right direction. When I look at what we have achieved for the digital sector through the Coventry & Warwickshire Local Enterprise Partnership, Warwickshire County Council, local businesses, and other stakeholders working in collaboration, I am reassured. From Digital Schoolhouse, launched for our Warwickshire primary schools, to a new Next Gen Skills Academy diploma starting in September 2018, to a joint Coventry and Warwick University bid submitted before Christmas to strengthen our Creative Clusters - working together has achieved so much and will achieve so much more.

Please join us. Whether you are passionate about culture, infrastructure, or skills, please join the Digital Evolution and contact me on sarah@emerald-group.co.uk or look out for our next Tech Central event in February 2018.

Free workshop to help SMEs increase design and production skills

Warwick Manufacturing Group has arranged a free two-day workshop for manufacturing SMEs to improve their awareness and understanding of key design and production-related techniques.

The workshop will take place on Wednesday 21st and Wednesday 28th February 2018 at WMG's base in Coventry.

Entitled ‘Design it, Make it, Break it,’ the workshop has been developed to provide insights for SMEs into the product design and development process using 3D Computer Aided Design (CAD) software.

It will also cover a review of how Additive Layer Manufacturing (ALM) can increase the rate of product development and consider the use of Finite Element Analysis (FEA) to ensure your design survives real world scenarios.

To find out more and register please visit: https://design-make-break.eventbrite.co.uk. For further details please email wmgsme@warwick.ac.uk or call 02476 574 299.

Meanwhile, the WMG SME Group has developed a specialist internship programme for SMEs looking for additional resource and expertise to overcome technical and strategic business challenges.

Since the programme launched, over 130 internship projects have been completed and many businesses have reported major transformational benefits which have helped inspire new product development, improve process efficiency and generate improved ways of working.

The internships typically take place for eight weeks over the summer and attract both students and graduates from the University of Warwick and other local higher education establishments. A further 30 internships will be on offer for the 2018 programme. Projects usually relate to the expertise covered by the WMG SME Group including manufacturing, materials, product development, digital systems, factory 4.0, automation and business models, but other project ideas outside these areas will be considered.

Alongside the intern, SMEs on the programme will also benefit from having access to selective equipment at WMG and support with supervision from the WMG SME Group. WMG will pay 50% of the project costs (approximately £2,000), which covers the first four weeks of the internship. The SME would then be expected to cover the cost of the remaining four weeks of the programme.

If you are interested in securing a part-funded internship, please contact us via wmgsme@warwick.ac.uk with a brief idea of the project you would like the intern to conduct. Intern projects will be allocated on a first come, first served basis.

* The WMG SME Group, part of the University of Warwick, is a multidisciplinary team pioneering support for innovation. Our 10-year track record has seen us accelerate innovation, productivity and growth within hundreds of SMEs. By helping them utilise research-led tools and techniques we have built many profitable, collaborative and sustainable relationships.

Breathing new life into Rugby's business community

A creative agency in Rugby is planning to breathe new life into the town’s business community as it executes a five-year growth strategy.

Oxygen, based in Albert Street, is run by couple Malcolm Freeman and Natalie Hughes and provides a range of design, digital and print services to a cross-section of companies – from micro-businesses through to large manufacturers.

It was established eight years ago, employs six people and now has exciting plans to grow the team and the services it offers, following support from the Coventry and Warwickshire Chamber of Commerce and after becoming official Google Partners.

The pair are scouring the area for new commercial space that would allow them to open a business centre for Rugby including a café, hotdesk and meeting facilities to benefit other local firms.

They were advised by Helena Bassett, of the Coventry and Warwickshire Chamber of Commerce, on everything from planning through to work-life balance.

Malcolm said: “I was made redundant eight years ago and started up two weeks afterwards. There are always challenges in life, and in business, but I’ve really enjoyed starting up the company and growing it.

“I met Natalie around the same time and she got involved in the business and it works really well.

“We’ve got two children now so we are striking the balance of working as hard as we can to grow the company but, also making sure it doesn’t impact too much on family life.

“We have two new staff joining us in the New Year and see opportunities to bring in new business and expand further.

“We also feel there is a gap in the market for a business hub in Rugby where people can pop in and get a coffee and work out of the centre – we are actively looking into that opportunity because we feel it would be good for the town and good for business too.”

He added: “Helena from the Chamber has been great. She didn’t come in and read from a script – she understood what we were going through as parents trying to run and grow a successful business.

“We could really see she cared and the advice really came from the heart. The meetings with Helena really sparked our imagination and we are now looking to grow the team and the business.”

The support from the Chamber came via the Coventry and Warwickshire Business Support Programme, which is funded by the European Regional Development Fund, in partnership with Coventry City Council, Warwickshire County Council and the District and Borough Councils. 

Keely Hancox, operations manager at the Coventry and Warwickshire Chamber of Commerce, said: “Oxygen have very exciting plans for the future and they are doing an amazing job of balancing their business expansion with their family life.

“That’s something that many small businesses find challenging and I am very pleased that we have been able to help with that and support their growth.”

For more information or to book on to the Business Support programme, call the Chamber on 024 7665 4321 or log onto www.cw-chamber.co.uk

Guest column

Exploring the business benefits of using freelance professionals

Michelle McHugh is founder and director of Contrect Ltd, a Warwickshire SME which is supported by Warwick University Science Park. Michelle established Contrect Ltd with a bold mission to transform the UK contracting market by making engaging freelance contractors more affordable and accessible, particularly for small businesses. Here, she explains the how the UK labour market is changing and outlines the benefits and opportunities this offers businesses.

 

There is no doubt that the UK labour market is changing. Technological advances and changing attitudes to work over recent years have led to a significant increase in the number of self-employed and freelance professionals across all sectors of the UK economy.

Latest figures show there are currently two million freelancers in the UK, contributing £119 billion to the UK economy, and some estimates show that over half of the working population could be freelancing by the year 2020.

Individuals willing to risk the certainty and stability of permanent employment in exchange for flexibility and better work/life balance are increasingly moving to freelancing through choice - and eight out of ten contractors confirm they are more satisfied as a result. However, the business benefits of tapping into the growing freelance economy are less well documented or discussed.

Here are the top five reasons why businesses should consider using skilled freelance professionals:

  1. Organisational politics

Freelancers operate above organisational politics. They are not interested in a long-term career within your organisation. Their views are genuine perceptions of your organisation, people and culture – without a vested interest. If you want an honest view of your business, ask a freelancer.

  1. Breadth of experience

The nature of contracting means freelancers have a breadth of experience across numerous different organisations, sectors and cultures on individual assignments. This variety gives a breadth of experience and wider networks that generally isn’t replicated with permanent employees. If a contractor hasn’t been involved in a particular business scenario or overcome a certain challenge, they will know someone who has.

  1. Organisational agility

Accessing skills across a broad range of professions by working with freelancers is a flexible way to enhance your internal capacity and capability. Managing peaks in workload, or addressing internal skills gaps by building up a network of trusted freelancers to compliment your own team builds resilience in your business.

  1. Flexibility

The nature of engaging freelancers inevitably means there is no long-term commitment, so if the demands of your business change you can part ways without any hard feelings. This is particularly important for SMEs and start-ups where being nimble and reactive to demand plays a vital role in keeping the business profitable.

  1. Continuous personal development

Freelancers are serious about their personal development. Why wouldn’t they be? They are continuously in a competitive market place and only as good as their last contract. Without the luxury of an employer to invest in their development, freelancers invest in their own learning with a natural instinct to continually evolve and remain ahead of the competition.

With the chancellor having announced in the Autumn Budget Statement that the Government plans to consult on changes to tax-rules for freelance contractors (IR35) working in the private sector, businesses should be prepared to change their approach to contracting to ensure these business benefits are not lost. This will need to involve moving away from advertising contracts as ‘jobs’ to adopting more outcome-based contracts, based on key outputs, milestones and quality criteria.

The Contrect Portal is specifically designed for outcome-based contracting, helping organisations increase their internal skills and capacity by using freelance contractors as a flexible solution to their business needs. To find out how we can help your business contract smarter, better and cheaper please contact us at service@contrect.com.

 

Events

Upcoming events...

JANUARY

How to Build Assets for your Business Workshop: Mon 22nd Jan, 09:30 - 16:30, Slate Art Gallery, 44 Oxford Street, Leamington Spa, CV32 4RA (£75 - £125)

https://www.eventbrite.co.uk/e/how-to-build-assets-for-your-business-workshop-tickets-38806880424

 

Cyber Security: Tues 23rd Jan, 09:00 - 16:30, Solihull College & University Centre, Blossomfield Campus, Blossomfield Road, Solihull, B91 1SB (Free)

https://www.eventbrite.co.uk/e/cyber-security-tickets-41379942522

 

Negotiation and Influencing: Tues 23rd Jan, 13:15-16:30, Warwick Innovation Centre, Warwick Technology Park, Gallows Hill, Warwick, CV34 6UW (Free)

https://www.eventbrite.co.uk/e/negotiation-and-influencing-registration-40905427234

 

CW Champions January Meeting: Wed 24th Jan, 07:30 - 09:30, Ettington Chase Hotel, Banbury Road, Stratford upon Avon, CV37 7NZ (Free)

https://www.eventbrite.co.uk/e/coventry-warwickshire-champions-event-2018-tickets-41242934728

 

First Steps for Starting Your Business: Wed 24th Jan, 10:00 - 13:00, Unit 6, Serious Games Institute, Coventry Innovation Village, Cheetah Road, Coventry, CV1 2TL (Free)

https://www.eventbrite.co.uk/e/business-essentials-for-start-ups-first-step-for-starting-your-business-tickets-41210461600

 

How to Complete Your Online Tax Return (Webinar): Wed 24th Jan, 10:00 - 11:00, Online. (Free)

http://www.cwgrowthhub.co.uk/event/how-complete-your-online-tax-return-webinar-9

 

CUE Business Solutions - Evening of Business Support: Thu 25th Jan, 17:30 - 20:00, Unit 6, Serious Games Institute, Coventry Innovation Village, Cheetah Road, Coventry, CV1 2TL (Free)

https://www.eventbrite.co.uk/e/cue-business-solutions-evening-of-business-support-tickets-41272828140

 

Midlands Business Network January Expo: Fri 26th Jan, 10:00 - 15:00, NAEC, Warwick Hall, Stoneleigh, CV8 2LZ (Free)

http://themidlandsbusinessnetwork.co.uk/events/midlands-business-network-january-expo/

 

Intro to Social Media - Facebook: Mon 29th Jan, 09:30-12:30, Rugby Borough Council, Evreux Way, Rugby, CV21 2RR (Free)

https://www.eventbrite.co.uk/e/warwickshire-start-up-an-introduction-to-how-facebook-can-support-your-start-up-business-rugby-tickets-37038465046

 

Coventry Start Up - Business Planning and Finance: Weds 31st Jan, 09:30-16:00, St Peters Centre, Charles Street, Coventry, CV1 5NP (Free)

https://www.eventbrite.co.uk/e/coventry-start-up-business-planning-finance-tickets-41212860776

 

Warwickshire Start Up - Winning and Keeping Customers: Weds 31st Jan, 09:30-13:30, Althorpe Enterprise Hub, Althorpe Street, Leamington Spa, CV31 2GB (Free)

https://www.eventbrite.co.uk/e/warwickshire-start-up-winning-keeping-customers-leamington-tickets-41208788596

 

Warwickshire Start Up - Business, Vision and Strategy: Weds 31st Jan, 09:30-13:30, Atherstone Town Council, South Street, Atherstone, CV9 1DE (Free)

https://www.eventbrite.co.uk/e/warwickshire-start-up-business-vision-strategy-atherstone-tickets-41461952817

 

FEBRUARY

 

Startup event: Tue 6th Feb, 18:00 - 2-:00, Village Hotel Coventry, Dolomite Avenue, Coventry Business Park, CV4 9GZ (Free)

https://www.eventbrite.co.uk/e/youve-started-your-businessnow-reach-for-the-sky-tickets-42270617555

 

Thinking of Starting a Business, Rugby: Tue 6th Feb, 09:30 - 13:30, Rugby Borough Council, Evreux Way, Rugby, CV21 2RR (Free)

https://www.eventbrite.co.uk/e/warwickshire-start-up-thinking-of-starting-a-business-rugby-tickets-41274235349

 

An Introduction to how Facebook can Support your Startup: Tue 6th Feb, 09:30 - 12:30, Venture House Business Centre, Birmingham Road, Stratford upon Avon, CV37 0HR

https://www.eventbrite.co.uk/e/warwickshire-start-up-masterclass-an-introduction-to-how-facebook-can-support-your-start-up-tickets-37038690721

 

HR Skills - Managing for Performance, Managing Grievance: Wed 7th Feb 09:15 - 12:30, Business Innovation Centre, Binley Business Park, Harry Weston Road, CV3 2TX (Free)

https://www.eventbrite.co.uk/e/hr-skills-managing-for-performance-managing-grievance-registration-40905734152

 

Leamington Hour’s Networking Event: Wed 7th Feb, 19:00 - 21:00, The Star and Garter, 4-6 Warwick Street, Leamington Spa, CV32 5LL (Free - £150)

https://www.eventbrite.co.uk/e/leamington-hours-networking-event-tickets-38831670572

 

Business Continuity & Managing Risk: Wed 7th Feb, 13:15 - 16:30, Business Innovation Centre, Binley Business Park, Harry Weston Road, CV3 2TX (Free)

https://www.eventbrite.co.uk/e/business-continuity-managing-risk-registration-40906300847

 

Aston Centre For Growth: Information Breakfast Meeting: Thu 8th Feb, 08:00 - 09:30, Enterprise Centre, Coventry University, Technology Park, Puma Way, CV1 2TT (Free)

https://www.eventbrite.co.uk/e/aston-centre-for-growth-information-breakfast-meeting-coventry-tickets-37310201818?aff=es2

 

What You Need to Consider for Your Website for Startup: Thu 8th Feb, 09:30 - 12:30, Atherstone Town Council, South Street, Atherstone. CV9 1DE (Free)

https://www.eventbrite.co.uk/e/warwickshire-start-up-masterclass-what-you-need-to-consider-for-your-website-for-startup-business-tickets-41701698904

 

Empowering Business Growth: Thu 8th Feb, 09:30 - 13:30, Venture House Business Centre, Birmingham Road, Stratford upon Avon, CV37 0HR (Free)

https://www.eventbrite.co.uk/e/warwickshire-start-up-masterclass-empowering-business-growth-tickets-41498643560

 

Business Planning Workshop: Thu 8th Feb, 09:00 - 16:00, Ramada Coventry, The Butts, Coventry, CV1 3GG (Free)

https://www.eventbrite.co.uk/e/business-planning-workshop-tickets-42047811135

 

Thinking of Starting a Business & Marketing: Tue 13th Feb, 09:30 - 16:00, St Peters Centre, Charles St, Coventry, CV1 5NP (Free)

https://www.eventbrite.co.uk/e/coventry-start-up-thinking-of-starting-a-business-marketing-tickets-41213932983

 

Winning and Keeping Customers: Tues 13th Feb, 09:30 - 13:30, Rugby Borough Council, Evreux Way, Rugby, CV21 2RR (Free)

https://www.eventbrite.co.uk/e/warwickshire-start-up-winning-keeping-customers-rugby-tickets-41274394826

 

Business Planning: Wed 14th Feb, 09:30 - 13:30, Althorpe Enterprise Hub, Althorpe St, Leamington Spa, CV31 2GB (Free)

https://www.eventbrite.co.uk/e/warwickshire-start-up-business-planning-leamington-tickets-41208884884

 

Winning & Keeping Customers: Wed 14th Feb, 09:30 - 13:30, Atherstone Town Council, South Street, Atherstone, CV9 1DE, (Free)

https://www.eventbrite.co.uk/e/warwickshire-start-up-winning-keeping-customers-atherstone-tickets-41490829187

 

Beginner’s Twitter Workshop: Mon 19th Feb, 11:00 - 13:00, The Fat Pug, Guys Cliffe Rd, Leamington Spa, CV32 5BX (Free)

https://www.eventbrite.co.uk/e/beginners-twitter-workshop-tickets-41755881967

 

How to Build Assets for your Business (Light) Workshop: Mon 19th Feb, 14:00 - 16:00, The Fat Pug, Guys Cliffe Rd, Leamington Spa, CV32 5BX (Free)

https://www.eventbrite.co.uk/e/how-to-build-assets-for-your-business-light-workshop-tickets-42048092978

 

Marketing Your New Business: Tue 20th Feb, 08:15 - 16:00, Ramada Coventry, The Butts, Coventry, CV1 3GG (Free)

https://www.eventbrite.co.uk/e/marketing-your-new-business-tickets-40481167261

 

Business Essentials for Startups - Finance & Cash Flow: Sat 24th Feb, 10:00 - 13:00, Unit 6, Serious Games Institute, Coventry Innovation Village, Cheetah Road, Coventry, CV1 2TL (Free)

https://www.eventbrite.co.uk/e/business-essentials-for-start-ups-finance-cash-flow-tickets-41211203820

 

Business Vision & Strategy: Tue 27th Feb, 09:30 - 13:30, Venture House Business Centre, Birmingham Road, Stratford upon Avon, CV37 0HR (Free)

https://www.eventbrite.co.uk/e/warwickshire-start-up-business-vision-strategy-stratford-tickets-41207230937

 

MARCH

Writing Your Business Plan: Thu 1st Mar, 09:15 - 12:30, Enterprise Centre, Wellesbourne Enterprise Park, Wellesbourne Campus, Wellesbourne, CV35 9EF (Free)

https://www.eventbrite.co.uk/e/writing-your-business-plan-registration-41489961592

 

Effective Finance Tools: Thu 1st Mar, 12:15 - 16:30, Enterprise Centre, Wellesbourne Enterprise Park, Wellesbourne Campus, Wellesbourne, CV35 9EF (Free)

https://www.eventbrite.co.uk/e/effective-finance-tools-registration-41490301609

 

Digital Marketing (Essentials) - How to Develop your Online Presence: Tue 13 Mar, 09:15 - 12:30, Eliot Park Innovation Centre, 4 Barling Way, Nuneaton, CV10 7RH (Free)

https://www.eventbrite.co.uk/e/digital-marketing-essentials-how-to-develop-your-online-presence-registration-41490372822

 

Communication Skills - Standing Out Front & Presenting: Tue 13th March, 13:15 - 16:30, Eliot Park Innovation Centre, 4 Barling Way, Nuneaton, CV10 7RH (Free)

https://www.eventbrite.co.uk/e/communication-skills-standing-out-front-presenting-registration-41490567404

 


OTHER USEFUL EVENT PAGES TO FOLLOW:

Tech Central

http://techcentraluk.com/events.html

 

Business Ready

https://www.eventbrite.co.uk/o/business-ready-12629314668

 

Coventry University Enterprises

https://www.eventbrite.co.uk/o/cue-business-solutions-13651209205

 

Coventry & Warwickshire Chamber of Commerce

https://www.cw-chamber.co.uk/events/

 

Coventry & Warwickshire Growth Hub

http://www.cwgrowthhub.co.uk/events

 

CW Champions

https://www.coventry-warwickshire.co.uk/events

 

Midlands Business Network

http://themidlandsbusinessnetwork.co.uk/events/

 

Leamington Hour

https://www.eventbrite.co.uk/o/leamington-hour-7578817945

News in Brief

All the latest news-in-brief from our region...

Results success for Mercia after investment levels rise

Warwickshire-based investment group Mercia Technologies has reported a rise in revenue and profits for the first six months of its current financial year.

The company made £4.8m in revenue for the period to 30 September 2017, an increase from £2.8m during the same period in 2016. Pre-tax profits have also risen from £1m to £1.8m.

https://www.insidermedia.com/insider/midlands/results-success-for-mercia-after-investment-levels-rise?utm_source=westmidlands_newsletter&utm_campaign=westmidlands_news_tracker&utm_medium=business_article

Former Birmingham Airport CEO appointed chairman in Leamington Spa

The former chief executive of Birmingham Airport has been named as the new chairman of a Warwickshire-based technology company.

Paul Kehoe, who was also in charge of Bristol, Luton and Belfast airports, will start work at the Leamington Spa-based Realtimeknowledge.com, which gives regulators and stakeholders a digital compliance data record.

https://www.insidermedia.com/insider/midlands/former-airport-ceo-appointed-chairman

Nine-year sales high for Aston Martin

Sell-out demand for Aston Martin's DB11 model as well as special editions has helped drive up the luxury vehicle manufacturer's sales by 58 per cent to the highest in nine years.

Car sales exceeded 5,000 for the first time since 2008 and the group, which is headquartered in Warwickshire, expects to exceed full-year EBITDA guidance of at least £180m on revenues of more than £840m.

https://www.insidermedia.com/insider/midlands/nine-year-sales-high-for-aston-martin

Landmark year hailed for employment scheme

A National Lottery-funded employment support scheme has celebrated 12 months of success, having helped 700 people in Coventry and Warwickshire tackle major barriers to work and self-employment.

The £3m Accelerate project is part of ‘Building Better Opportunities’ programme, funded by the European Social Fund and the National Lottery, through the Big Lottery Fund.

https://www.insidermedia.com/insider/midlands/landmark-year-hailed-for-employment-scheme

Holland & Barrett double global HQ size in Warwickshire

Health and wellness retailer Holland & Barrett has doubled the size of its global headquarters in Warwickshire.

The company has added a further 48,000 sq ft to its base at Eliot Park, Nuneaton, which is the hub for more than 1,500 stores.

https://www.insidermedia.com/insider/midlands/holland-barrett-double-global-hq-size

AAA studio Rebellion acquires Radiant Worlds

One of the largest independent games studios in the UK announces the acquisition of Radiant Worlds. The takeover will further strengthen the already thriving games development cluster known as Silicon Spa

https://rebellion.com/blog/2018/1/6/radiant-worlds-acquisition

Heating firm sets up charitable trust to help more people

A boiler firm has set up a charitable trust to support good causes throughout the UK and Ireland.

Baxi Heating UK, which has a registered office in Coventry Road, Warwick, sought advice from Leamington law firm Wright Hassall on how to focus all its charity fundraising and donations in one place.

https://www.coventrytelegraph.net/news/business/heating-firm-sets-up-charitable-14115742?platform=hootsuite

Lockwood Publishing opens Leamington studio

The team behind the hugely popular game Avakin Life has opened a new studio in Leamington Spa.

Lockwood Publishing says the aim is to attract console and PC developers as it looks to grow its hit mobile project.

http://www.gamesindustry.biz/articles/2017-12-01-lockwood-publishing-opens-new-uk-studio-in-leamington-spa

Oak Furniture Land arrives in Rugby

Oak Furniture Land has opened its first showroom in Rugby and its 90th store nationwide.

Featuring a mezzanine floor, the 16,548 sq ft furniture store is located at the Elliott’s Field Retail Park.

The new showroom has created seven new jobs and is part of the company’s ongoing expansion plans.

https://www.insidermedia.com/insider/midlands/milestone-opening-for-oak-furniture-land

Revenue rise in company’s first listed year

Revenue has increased at a Warwickshire-headquartered automotive components manufacturer, which started life making parts for the original Mini, in its first full year since its IPO in August 2016.

Autins Group, which is based in Rugby, has reported £26.4m in revenue for the year to 30 September 2017, an increase from £20.4m the year before. Pre-tax profits also rose from £186,000 to £207,000.

https://www.insidermedia.com/insider/midlands/revenue-rise-in-companys-first-listed-year

GVA sign two-year contract with PropTech pioneers Nimbus® Maps

One of the UK’s leading real estate advisory businesses, GVA, has signed a two-year contract to use Nimbus® Maps throughout their entire UK office network.

http://www.eastmidlandsbusinesslink.co.uk/mag/news/gva-sign-two-year-contract-proptech-pioneers-nimbus-maps/

Warwickshire Outlook

Muted spending paints mixed picture for retailers over Christmas

By Warwickshire County Council head of Economy & Skills Dave Ayton-Hill

In the last Warwickshire Means Business Economic Outlook, I talked about the importance of the Christmas trading period for the retail sector.

The strength and volume of consumer spending during the Christmas period is always a good barometer for the underlying health and confidence within the economy - so how did Warwickshire's retail sector fare over Christmas 2017?

Overall, the picture seems mixed. A number of listed retail companies have published their festive trading figures and there are clearly some winners who have seen increases in “like for like” growth (i.e. comparing sales from last year based on the same retail footprint, so therefore ignoring any new stores that may have opened that would distort figures around “growth” in sales). These include some supermarkets (Tesco, Sainsbury, Waitrose), stores with good on-line presence (Next) and newer, purely on-line companies such as Boohoo and AO which are doing extremely well.

However, others have struggled, including retail giants such as Marks & Spencer, House of Fraser and Debenhams. These figures seem to reinforce the importance of focused consumer targeting, competitive pricing and strong on-line platforms to the retail sector.

The data emerging also suggests that, while some businesses may have benefited from growth in sales, profit margins are being squeezed as a result of heavy discounting to attract consumers through the doors. For instance, while John Lewis has seen growth in sales, they have warned shareholders that profits are likely to be down, largely as a result of their price-matching pledge. 

The British Retail Consortium has released figures on high street spending for December and their data suggests that spending increased only modestly by 0.6%, much of which was down to higher prices due to inflation. Moreover, growth was focused in food sales (+2.6%), while overall non-food sales fell by 2.2%. VISA (the card payments firm which accounts for a third of all UK consumer spending) also reported an overall fall in consumer spending, with a fall of 1% compared to spend in the previous December. This is the first fall in Christmas spending they have recorded in five years.

So it would seem that while some retailers have been successful during the festive period, the overall picture is that of muted consumer spending and determined “bargain hunting” by households on the more discretionary items of spend. This has led to a drop in overall spending and a reduction in profit margins for business and suggests a subdued economic situation, as households watch their spending in light of tightening budgets and static (or falling) real wages.

Like for like sales

Global economic growth accelerates

Recent data published by the International Monetary Fund paints a positive picture about accelerating economic growth across the world and, in particular, key markets for the UK (including the Euro-zone, the US, China and India). 

The graph below provides the latest predictions and highlights the significant exporting opportunities that this global growth generates for UK companies. The buoyant global economy has been a key part of the strength of the UK’s manufacturing sector over the past 12-18 months, helped significantly by the devaluation of sterling since the referendum result. 

The latest surveys from the manufacturer’s organisation EEF, national PMIs for the manufacturing sector and local results from the Warwickshire County Council/C&W Chamber of Commerce Quarterly Economic Survey all point to high confidence within the manufacturing sector about future orders and future sales, particularly in overseas markets. 

Indeed, the fourth quarter figures for our local Quarterly Economic Survey show record high levels of confidence and growth within the manufacturing sector. The strong growth across all parts of the global economy is absolutely key to this confidence.

Global economic forecast

Taylorfitch. Bringing Newsletters to life