Member News

Employers passionate about developing their organisation’s culture, engagement levels and workplace environment can now register to take part in Best Employers Eastern Region 2020 and book a place at the launch event.

Best Employers, which supports the economic growth of the East of England through increased employee engagement, returns for the fifth time in 2020. Founded by professional recruitment specialists Pure with psychometrics experts eras ltd, Best Employers has become a force for culture and organisational change which businesses across the Eastern region are using to shape and develop their employee engagement strategies.

Sponsored by Archant and Birketts, Best Employers Eastern Region 2020 will launch with a leadership conference on Wednesday 18 March 2020 in Newmarket. As with all Best Employers events, business leaders and HR executives will be able to network with like-minded professionals to share ideas and solutions on evolving workplace culture and hear insights from industry experts on increasing engagement. Guest speakers will include David Smith, who has 35 years’ experience of change management, including 15 years spent in the turnaround of the Asda Retail Business. David will share how he took Asda from a bankrupt broken business to a high-performance retailer, leading the changes which created a productive performance-based culture.

The conference will mark the opening of the 2020 employee engagement survey at the heart of the Best Employers Eastern Region initiative. The free, expertly designed employee survey is run every two years to enable businesses to discover their current engagement levels, track their progress and benchmark their organisation against some of the region’s top employers.

Lynn Walters, Executive Director at Pure and founder of Best Employers Eastern Region, said: “Employee engagement drives productivity and creates sustainable short and long-term success. As a professional recruitment consultancy, Pure supports businesses in the Eastern region with talent recruitment, retention and succession planning. We see first-hand the significant impact employee engagement and workplace culture has in giving businesses a competitive edge when it comes to recruiting and retaining the best people. This is especially important when talent is in high demand, as it is currently, and businesses are having to work harder than ever to stand out.”

Best Employers Eastern Region supports business at all stages of their engagement journey through inspiring events, analysis and expert insights. By participating, organisations enhance their employer brand by commiting to creating highly engaged employees, while the prestigious Best Employer awards and accreditations have become an exceptional showcase of the businesses people want to be a part of. In 2018, over 140 organisations and 15,000 survey participants, took part in the initiative with eight Best Employer awards and 40 gold and platinum accreditations presented.

Lynn added: “The Best Employers survey, provided by eras Ltd, gives businesses the information they need to understand their current levels of engagement. The more employees who participate, the more reflective the feedback will be, which creates the best possible tailored survey report and bespoke action plan for each organisation. This high level of participation has made the data for businesses to track their progress and benchmark their organisation against other top employers incredibly valuable.”

For more information on Best Employers Eastern Region visit: www.best-employers.co.uk or click here to book a place at the launch event which will be held at Tattersalls in Newmarket on 18 March 2020.

Yesterday The Maddermarket Theatre launched their partnership with contemporary restaurant, The Iron House. This exciting new partnership between the two popular venues in the Norwich Lanes entitles Maddermarket Theatre ticket holders to receive a generous 20% off food and drinks bill for pre-show dining at the prestigious, city-centre restaurant. The cast of Steel Magnolias, The Maddermarket Theatre’s up-coming in-house production, joined The Iron House’s Staff yesterday afternoon to launch the partnership with a photoshoot- just in time for the show’s opening night. Steel Magnolias opens this Friday 18th October. The play written by Robert Harling and presented by The Maddermarket Theatre’s very own in-house company The Norwich Players is a hilarious and touching comedy-drama that is a real testament to the power of female friendship. Set in the 1980’s, in the deep American South the moving story sees Truvy and her girls gossip, laugh and sport some truly wonderful 80’s hairstyles. But when tragedy strikes, the women’s bond is tested like never before. Having inspired the much-loved 1980’s cult-classic film starring Dolly Parton, the show is not one to be missed – and now can be enjoyed after a freshly-cooked, pre-show meal at The Iron House, just a 60 second walk from the theatre!  General Manager of The Maddermarket Theatre, Alice Wright, said, “We are really excited to announce The Iron House as our exclusive restaurant partner. We cannot wait to work with them and support a fellow Norwich Lanes venue. The opportunity to extend the theatre experience to this wonderful local eatery is a really special addition that we are delighted to be able to offer to our audiences.” Jeremy King owner of The Iron House said, “It’s a privilege to work closely with such a well-respected venue known for its varied and eclectic repertoire. We look forward to being part of the experience enjoyed by the theatre’s audiences.” Get your tickets for Steel Magnolias online at www.maddermarket.co.uk or via the box office on 01603 620917, then book a table at The Iron House either online at www.theironhouse.co.uk or via telephone on 01603 763388. If you already have a ticket to one of the many shows at the Maddermarket Theatre, be sure to take advantage of this fantastic new partnership, by contacting The Iron House to book a table now.  

Steel Magnolias by Robert Harling Friday 18 – Saturday 26 October 2019 7.30pm Mon-Sat & 2.30pm Sat 19 & Sat 26 October Tickets £12 (£10 concessions) Maddermarket Theatre, St John’s Alley, Norwich, NR2 1DR This is an amateur production by arrangement with Samuel French Ltd. Find out more and book tickets: https://maddermarket.co.uk/event/steel-magnolias/

A ground-breaking ceremony has marked the official construction start of a £7 million aircraft maintenance hangar and workshop at Norwich Airport, a member of Norfolk Chambers of Commerce.

Due for completion by August 2020, the facilities underline the airport’s reputation as a centre of excellence in the Maintenance, Repair and Overhaul (MRO) aviation sector.

The hub provides KLM UK Engineering, which employs 390 staff at the airport, with additional capacity to provide high-quality aircraft maintenance and repair services to customers worldwide.

Norwich Airport, owned and operated by Regional & City Airports (RCA), which also owns and operates Bournemouth Airport, Coventry Airport and Exeter Airport, is investing £7 million.

It is part of RCA’s vision to help smaller regional airports prosper through effective management and collaboration, enabling them to benefit from economies of scale and sharing of best practice traditionally enjoyed by larger hub airports.

Norwich Airport managing director Richard Pace said: “This is a great milestone and is the next step in our aspirations to make Norwich a world-class centre of excellence for aviation MRO.

“KLM UK Engineering is a major employer locally, with hundreds of skilled staff, and the new hangar and workshop facilities will be a superb and much-needed asset.

“Our economic input is already a proud one here at Norwich Airport; we have 274 staff and support, directly and indirectly, 1,240 jobs, with approximately £70 million contributed to the local economy.”

Rigby Real Estate, the group’s property division, is managing the project, with a 54,000 sq ft hangar and 15,500 sq ft workshop.

MJS, a regional contractor in East Anglia, has been appointed as the construction company.

Peter van der Horst, managing director at KLM UK Engineering, said: “I am delighted to be breaking ground on our hangar project, especially today as it is a very significant week for the AFIKLM E&M brand, with all areas celebrating the KLM 100 Years.

“We will be celebrating both these significant milestones with our team in Norwich and look forward to the building of these great new facilities.”

KLM UK Engineering also delivers aircraft engineering apprenticeships and training through its technical training college located in the neighbouring International Aviation Academy Norwich.

Headquartered at Norwich, where it has operated for 40-plus years, KLM UK Engineering currently has five fully-equipped heavy maintenance bays across three hangars at the airport.

It has extensive experience on many aircraft types including Embraer170/190, Boeing 737 (all series), Airbus A320 family, BAe 146 and Avro RJ, and Fokker 70/100 types.

The new hangar gives Satys Air Livery UK the opportunity to take on the hangar vacated by KLM UK Engineering, consolidating Norwich as the head office of Aftermarket and VIP Painting Division of the Satys Group and the largest place in Europe for repainting narrow body aircrafts (four hangars).

In the year to March, RCA welcomed 2.4 million passengers and handled 227,000 flights, serving as gateway for the seven million people that live in the airports’ passenger catchment areas. Turnover increased to £58.1m (2018: £45.2m) with EBITDA at £17.3m (2018: £7.5m).

There were just under 37,000 aircraft movements at Norwich Airport, for the year ending March 2019, with passenger numbers at just over 543,900.

A ground-breaking ceremony has marked the official construction start of a £7 million aircraft maintenance hangar and workshop at Norwich Airport, a member of Norfolk Chambers of Commerce.

Due for completion by August 2020, the facilities underline the airport’s reputation as a centre of excellence in the Maintenance, Repair and Overhaul (MRO) aviation sector.

The hub provides KLM UK Engineering, which employs 390 staff at the airport, with additional capacity to provide high-quality aircraft maintenance and repair services to customers worldwide.

Norwich Airport, owned and operated by Regional & City Airports (RCA), which also owns and operates Bournemouth Airport, Coventry Airport and Exeter Airport, is investing £7 million.

It is part of RCA’s vision to help smaller regional airports prosper through effective management and collaboration, enabling them to benefit from economies of scale and sharing of best practice traditionally enjoyed by larger hub airports.

Norwich Airport managing director Richard Pace said: “This is a great milestone and is the next step in our aspirations to make Norwich a world-class centre of excellence for aviation MRO.

“KLM UK Engineering is a major employer locally, with hundreds of skilled staff, and the new hangar and workshop facilities will be a superb and much-needed asset.

“Our economic input is already a proud one here at Norwich Airport; we have 274 staff and support, directly and indirectly, 1,240 jobs, with approximately £70 million contributed to the local economy.”

Rigby Real Estate, the group’s property division, is managing the project, with a 54,000 sq ft hangar and 15,500 sq ft workshop.

MJS, a regional contractor in East Anglia, has been appointed as the construction company.

Peter van der Horst, managing director at KLM UK Engineering, said: “I am delighted to be breaking ground on our hangar project, especially today as it is a very significant week for the AFIKLM E&M brand, with all areas celebrating the KLM 100 Years.

“We will be celebrating both these significant milestones with our team in Norwich and look forward to the building of these great new facilities.”

KLM UK Engineering also delivers aircraft engineering apprenticeships and training through its technical training college located in the neighbouring International Aviation Academy Norwich.

Headquartered at Norwich, where it has operated for 40-plus years, KLM UK Engineering currently has five fully-equipped heavy maintenance bays across three hangars at the airport.

It has extensive experience on many aircraft types including Embraer170/190, Boeing 737 (all series), Airbus A320 family, BAe 146 and Avro RJ, and Fokker 70/100 types.

The new hangar gives Satys Air Livery UK the opportunity to take on the hangar vacated by KLM UK Engineering, consolidating Norwich as the head office of Aftermarket and VIP Painting Division of the Satys Group and the largest place in Europe for repainting narrow body aircrafts (four hangars).

In the year to March, RCA welcomed 2.4 million passengers and handled 227,000 flights, serving as gateway for the seven million people that live in the airports’ passenger catchment areas. Turnover increased to £58.1m (2018: £45.2m) with EBITDA at £17.3m (2018: £7.5m).

There were just under 37,000 aircraft movements at Norwich Airport, for the year ending March 2019, with passenger numbers at just over 543,900.

Following a rebrand in 2019 MHA Larking Gowen found themselves with an excess of old branded canvas bags. As the bags are great quality, rather than leave them to waste, MHA Larking Gowen are pleased to announce that two local charities have benefited from the donation. 

The first charity to benefit was a local fun run, with the bags being given out as goodie bags to the runners. The second batch of bags have been given to the local RSPCA Branch based in Martlesham. The Branch will be selling the bags for a small charge in their shops and at fundraising events with all proceeds going back into running their animal centre.

Kerry-Anne Lyme, Business Development Manager at MHA Larking Gowen, said, “We didn’t want to waste the bags and it was important for us that the bags were put to good use. I’m really pleased that the Branch will benefit from the donation. Please do go along to one of their four shops and support them and purchase a bag whilst you’re there.”

The RSPCA Suffolk East & Ipswich branch exists to help animals in need in our local area, through rehoming, rehabilitation and provision of services such as veterinary care, neutering, microchipping and advice.

Kim Puttock, Branch Manager at RSPCA Suffolk East & Ipswich, said, “We are very grateful to MHA Larking Gowen for this kind donation, every little helps in our fundraising activities. We don’t receive any money from the Government, or the National Lottery, and as the Branch is a separately registered charity from the National RSPCA, we are responsible for our own fundraising.

“In 2017, 95% of our income came from our own fundraising efforts, including events, our shops, donations from members of the public and legacies.” 

If you would like to find out more about the Branch and how you can help, please go to www.ipswich-rspca.org.uk or call 0300 9997321.

Foster is proud to announce a contract extension with Marston’s until 2024.

Foster has worked in partnership with Marston’s since 2013, supplying the UK’s leading independent brewing and pub retailing operator with back of house and front of house refrigeration solutions including storage cabinets, counters and coldrooms.

“Our award-winning products are perfectly engineered for busy professional kitchens like those operated by Marston’s,” said Dan Pratt, National Account Manager for Foster and Gamko.

“This commitment from Marston’s allows us to continue to strengthen our relationship and work together on future innovation and supply performance. In uncertain times, we’re proud to offer supply stability to our customers.”

Andy Kershaw, Group Head of Facilities & Capex for Marston’s added: “We are really pleased to be extending our contract with Foster. We have been working directly with them since 2013, so to commit to another five years is testament to their knowledge and expertise in our industry.”

Foster’s award-winning products are manufactured in its factory in King’s Lynn, as they have been for 50 years.  

New Anglia Local Enterprise Partnership has launched a call for innovative projects which support growth across Norfolk and Suffolk.

The £1.5million Innovative Projects Fund invites submissions from new revenue projects which help to deliver the ambitions of the Economic Strategy and Local Industrial Strategy.

Successful projects will have the potential to support the delivery plan for the Economic Strategy for Norfolk and Suffolk on the themes of driving inclusion and skills, our offer to the world, driving business growth and productivity, collaborating to grow and competitive clusters close to global centres.

The first call of the Innovative Projects Fund was made in October 2018. Schemes awarded funding in that round include Growing the Year Round Economy (led by Visit East of England), a schedule of events on the newly-refurbished Ipswich Corn Hill and work to support the international positioning of Great Yarmouth’s energy sector.

This Innovative Projects Fund call brings together £500,000 from income from the business rates generated by New Anglia LEP’s Enterprise Zones, £500,000 of pooled business rates from Norfolk local authorities and £500,000 of pooled business rates from Suffolk local authorities.

Chris Starkie, Chief Executive of New Anglia Local Enterprise Partnership, said: “This is a fantastic opportunity for projects to bid for revenue funding to deliver new exciting projects which help to deliver economic growth. We are delighted that local authorities are matching our investment into the Fund through pooled business rates.

“The first initiatives to be supported by the Innovative Projects Fund a year ago are already delivering outputs and making a difference so we’re keen for more ambitious schemes to come forward and bid for funding this time.

“Delivering on the ambitions in the Economic Strategy is key to everything we do and this fund gives ideas which push the boundaries the chance to start making a difference.”

Interested organisations should contact tanya.nelson@newanglia.co.uk for more information and to request an application form.

The final deadline for applications is Friday 20 December 2019.

Project appraisals will take place in January and February 2020, with the announcement of successful projects anticipated to take place in spring 2020.

Projects must:

• Represent new innovative activity;
• Be able to demonstrate their contribution to the delivery of both the Economic Strategy and where applicable the Local Industrial Strategy through direct and indirect outputs;
• Wholly benefit Norfolk or Suffolk residents or businesses;
• Be State Aid compliant;
• Be able to demonstrate the need for funding and the additionality achieved by the funding;
• Plug a funding gap that cannot be met by other grant programmes;
• Be for revenue funding only, although purchase of small plant, equipment etc could be admissible;
• Match funding up to 50% would be an advantage, this can be match funding in kind (e.g., staff time) but must be for new activity (existing staff positions working on the new project must be backfilled);
• Support inclusive growth.

The region’s ambitions for future growth are set out in the Economic Strategy for Norfolk and Suffolk for the period 2017 to 2036. The Local Industrial Strategy builds on the priorities and targets set by local partners in the Norfolk and Suffolk Economic Strategy and is a local blueprint for inclusive growth and productivity gains, with an overall goal to transform the economy into one of the best places in the world to live, learn, work and succeed in business. 

Barclays have a number of events taking place this November on Preparing for Brexit and Beyond.

You know your business better than anyone and that it never stands still. We know we can help you thrive today and tomorrow. That’s why we’re committed to backing the UK and helping our customers succeed through Brexit and beyond.

• Learn how to prepare your business for the future
• Explore trading abroad, regulation of goods and services, cyber security, cashflow and access to talent
• Learn how to assess and prepare your business for future changes.

Preparing for Brexit and Beyond Events

• Friday 8th November at The Open, 7.30am – 9.30am
• Tuesday 12th November at The Bridge, Wroxham, 9.30am – 11.30am
• Tuesday 19th November at The George Hotel, Dereham, 8am to 10am
• Tuesday 26th November at The White Hart, Hopton, 7.30am – 9.30am

Places are limited, so don’t miss out on this opportunity to share your experiences and network with other business owners.

RSVP. To confirm your place please see the email on the flyer. 

By sharing your journeys with a Liftshare partner, you can split the costs and that’s effectively what you’re doing.

There are many reasons why using Liftshare is such a great way to help you travel, but one of the main reasons that members love Liftsharing is how much they save on fuel and parking costs.

We want to get even more people sharing and saving money, especially as the average regular sharer on our platform saves over £1000 per year! Not only that, but they also save the equivalent in weight of 27 Orangutans in CO2 per year!!

Sign up to liftshare.com to save on your fuel costs

What better time to get involved and start making savings than during this year’s Liftshare Week – happening from Monday 7 to Sunday 13 October.

Win a £150 Red Letter Days experience voucher…

Any member that forms a Liftshare team between 30 September and 20 October 2019 will be entered into a prize draw to win a Red Letter days voucher up to the value of £150.

Get involved today!

All you need to do is sign up via Liftshare.com, add your journey and find your match. It’s that easy.

If you’re already a member but don’t have a liftshare, you can log back into your account, review your matches and find someone new going your way. https://liftshare.com/uk/account/register

For the second year running, BDODrive is proud to sponsor Tech Nations Rising Stars, the newest and most exciting pitch competition for early-stage tech businesses.

Tech Nations Rising Stars objective is to identify East Anglia’s best tech start-ups and provide them with the support, mentoring and advice to unlock their future growth.

Companies shortlisted by Tech Nation Rising Stars will benefit from a business plan diagnostic, delivered by our BDODrive team. Alongside a comprehensive review of your business plan, our team will provide feedback and challenge to help you assess the areas of development and ensure you are investor ready.

Reviewing your business plan through an ‘investor lens’, we will look at a range of requirements from venture capitalists, and will identify potential gaps. Before the Grand Final, our local teams will visit you in person to play back development areas, enabling you to maximise your chance of securing investment.

The competition is open to any company that:

• Is HQ’d in the UK
• Has been established for 1-3 years
• Is a digital, tech-enabled business
• Is at seed to pre-Series A funding stage, or if bootstrapped has max annual revenues of up to £1.5m
• Has ambition to grow and scale
• Can commit to Rising Stars competition dates outlined in the timetable.

Previous year’s Tech Nation Rising Stars finalists from East Anglia included:

• Thyngs
• Developing Experts

To find out more about the competition, prizes, the timeline and how to enter, simply click the link below. Applications close at midnight on 3 November 2020.

Find out more about Tech Nation Rising Stars

About the local BDODrive team

Emma Smith leads the BDO Drive team and is keen to work with local Tech businesses, her contact details are Emma.L.Smith@BDO.co.uk  if you have any questions about this

BDODrive delivers business services to support ambitious, entrepreneurial businesses. As part of BDO, you’ll have access to experts across our global business to enable your business’ growth and help make doing business easier.

Find out more at www.bdodrive.co.uk

Fast-growing cities, attractive commercial development sites and growing Enterprise Zones make Norfolk & Suffolk ripe for investment, key property industry figures are to be told.

Norfolk & Suffolk Unlimited – the new brand for the region – will be showcased at MIPIM, the UK’s leading property event, as part of a concerted campaign to attract new investment.

An estimated 2,300 property professionals from around the world will attend the re-energised MIPIM summit, which is being held at Old Billingsgate in London on Monday 14 and Tuesday 15 October. 

Ipswich was listed fourth and Norwich eighth in the UK in a recent report forecasting future growth from 2016 to 2036, pointing to a bright future for companies looking for development opportunities.

Significant investment is already being attracted to growth locations such as Ipswich, Norwich, Great Yarmouth, Lowestoft and King’s Lynn and along busy transport routes, maximising the opportunities around London, Cambridge and Felixstowe. 

Large-scale industrial, warehousing and office development opportunities exist along the global trade corridor of the A14 and the Cambridge Norwich Tech Corridor offers science park, office, industrial and residential development potential.

A massive £133 million in private investment has been unlocked by the 16 Enterprise Zone sties across the two counties which offer business rate discounts, simplified planning and superfast broadband.

There is also huge interest in Great Yarmouth, Lowestoft and other coastal areas due to growth in key sectors such as offshore wind, ICT digital and agri-food.

Six sites will be specifically marketed at MIPIM:

• North Quay/Conge, Great Yarmouth
• Hornbill Business Park Enterprise Zone, Beccles
• Norwich Research Park
• Snetterton Heath, A11
• Western Way, Bury St Edmunds
• Nar Ouse Enterprise Zone, King’s Lynn

Doug Field, chair of New Anglia LEP, said: “Norfolk & Suffolk’s economy is one of the fastest growing in the country and it is a diverse region rich with opportunities for property developers and investors. Rents and rates here are better value than in many parts of the UK, we have excellent connections to London, Cambridge and overseas markets and our Enterprise Zones deliver a package of benefits, including a business rate discount of up to £275,000 over five years.

“A new Local Industrial Strategy has been developed, a new brand launched and the high growth we have seen is forecast to continue, so there has never been a better time for companies to invest in this region.” 

Norfolk & Suffolk’s buoyant economy has driven economic success in the construction and development sector. The Construction Industry Training Board (CITB) is based at Bircham Newton in Norfolk and the sector has an emerging specialisation in modern construction and sustainable design, with the Fabric First Institute at Easton & Otley College.

The sector employs around 70,000 people, supporting more than 10,000 businesses with major opportunities such as the UK’s largest urban extension in Broadland. 

Norfolk & Suffolk Unlimited will be exhibiting at Pod P1 on the first floor of Old Billingsgate where a team will be available to provide potential investors with information about the region and specific sites.

A business brunch on Tuesday 15 October will meanwhile focus on Norwich and Ipswich as fast growth locations and developer Chancerygate will give its perspective on investment in the region.

You can find out more about development and investment opportunities and download our brochure at www.newanglia.co.uk/inward-investment

As the Chief Executive of a charity which supports some of the poorest communities of Norfolk, taking the plunge to become an accredited Living Wage employer was a no-brainer. Future Projects provides education services, advice and guidance, employment support, volunteering, and training and skills to those most in need. The very reason our charity exists is to look after those less well-off than us, so of course we should pay a Living Wage, right?  But, aside from it being expected of us, why should we – the Voluntary and Community sector – be the ones leading the way when it comes to fair pay?  Our work is heavily affected by austerity and cuts to public funding. Generally, our terms and conditions are considerably worse than our private and public sector counterparts – even though recent studies have shown on average we are better qualified. Many charities struggle to pay the bills, and it is not unheard of for leaders to sacrifice their pay to keep the charity afloat.  Some charities are on a very real knife-edge.  Everything points towards us using low wages to keep the sharks at bay, yet it might surprise you to know that 11 of the 34 local accredited Living Wage Employers are charities or social enterprises. Yes, one in three!  But you would be wrong if you thought this was simply because it’s in our ethos. For many of us, the decision to pay our staff more is all about business.   Yes, it means also increasing the pay of non-Living Wage staff to keep differentials intact. Yes, it means committing to long term, ongoing increases in staff costs. Yes, it’s a risk in some cases. But… in return we see a range of benefits: staff are less likely to leave so we benefit from reduced recruitment and training costs, not to mention avoiding harmful disruption to the business.  Our productivity has risen as absenteeism and sickness absence has declined. We have become a more desirable employer, better able to attract talented and qualified personnel who want to work for a company that has a culture of fairness and equality. We’ve experienced a boost in morale, commitment and enthusiasm from staff, not just amongst those on the Living Wage, but at all levels as our teams take pride in our commitment to fair pay. Adopting the living wage has also given us a competitive advantage when it comes to securing contracts and new work. For example; Norwich City Council requires that any organisation tendering to provide services on its behalf is an accredited Living Wage employer. This effectively reduces the competitive pool; if you don’t accredit, you simply cannot bid.  Since Future Projects adopted the Living Wage we have grown our annual turnover from £800k to almost £1.9m – at a time when austerity has seen many of our counterparts shrink or disappear entirely. We have grown our workforce from around 25 employees to 55. But the impact of our decision doesn’t stop there; the extra pay we offer our employees is being spent directly in the local economy, and higher wages are boosting inclusive growth and social mobility as we hire and train local people to fuel our growth.  So, when I see large or established employers taking a risk-averse approach to the Living Wage, as a businessman and a leader in my sector I can see the missed opportunities. I want us all to recognise the benefits of fair pay, and for more employers to get on board and join us in the Voluntary and Community sector in paying a fair day’s pay for a hard day’s work.   As businesses move towards measuring success not just by profit, but also by their social and environmental impact, the Living Wage provides an opportunity to increase business performance across a number of these indicators and should not be overlooked.  Living Wage Norwich will be hosting an event during Living Wage Week in November. In partnership with AVIVA plc and Norwich City Council, we will be celebrating the Living Wage, networking, and hearing from employers and employees about the benefits accreditation has provided them.  Please do join us at the Forum on Wednesday 13th November, 6pm-7.30pm to find out how paying a Living Wage to your lowest paid employees could also benefit you and your business!

The UK construction industry has experienced a further year of slowdown in sales, turnover and profits, pointing to a sustained downward trend, according to the latest UK Construction Sector Report from MHA, the UK-wide group of accountancy and business advisory firms of which MHA Larking Gowen is a member.   • Turnover growth continues to slow with larger firms hit hardest  • Year-on-year decline puts squeeze on profit margins • Sales cool as depressed demand and Brexit uncertainty bites • Stalling profits highlight potential labour costs exposure    Turnover in the last year grew 5.3% but was in marked contrast to the 14.1% increase recorded over the past two years, revealing a slowdown in the industry’s growth. Larger businesses, those with turnover of £200m and over, continue to experience a decline in turnover levels, with the average dropping by 13.8% this year.    In the face of this decrease, larger firms have reduced their workforce numbers from last year, with the average number of employees reducing from 878 to 777. Elsewhere, staffing levels remain static. The extension of the IR35 legislation ‘off-payroll’ rules for the private sector, which comes into force in April 2020, is likely to see employment numbers rise and with it, the potential impact on prices or further squeeze on margins. However, there appears to be no apparent material increase in employment numbers at this stage.    While the average gross profit margins are in double figures across the board, it is the smaller companies (under £25m turnover) that have seen the highest margins of between 20-25%. For mid-tier firms (£100-150m) the margins drop to just over 14% (14.4%) and larger firms have seen a decline to 11.2%    Overall, average margins are declining year on year and for the larger firms the fall in turnover and the desire to maintain workforce continuity, as well as general competitive pressures, are behind the squeeze. In a post Carillion world, the report seems to indicate these firms are looking to improve profitability rather than chase turnover.   A slowdown in the sector is further emphasised by the biggest fall in new work for a decade, according to the IHS Markit/Cips UK construction PMI survey. This together with a lack of new infrastructure projects and major developments and a depressed demand created by Brexit uncertainty, are also contributing to the slowdown. All these factors contributed to a decline in sales growth across all turnover brackets with the largest companies actually contracting over the past two years.   Whilst there is a general upward trend in dividends, the levels have fluctuated across the different sizes of firms. The smaller firms have either remained static or seen a decline. Most notably, those in the £5-10m turnover bracket saw a significant decrease in pay-outs of 85.6%; this is in marked contrast to a leap of nearly 250% the previous year. For the largest businesses, there was a 60% decrease in dividends from last year compared to a 17.1% rise over a three-year period.    The overall construction industry’s profit before tax performance showed a decline in 2019, with only small firms experiencing increases, although these were lower than two years ago. For the larger companies, who saw the biggest declines – the largest drop being from £46m last year to £26.3m in the current year – lower profit before tax is the inevitable result of reduced turnover and margins. Companies in this group will undoubtedly try to reduce overheads, but this tends to be difficult in the short term as certain costs are fixed. This does raise the prospect of future labour cost-cutting.   Robert Dowling, Head of Construction and Real Estate at MHA, said:   “It remains a challenging time for the UK’s construction industry. Nationally, firms have managed to maintain similar levels of profitability with slightly lower gross profit margins than last year. But the indications of a downward trend are there. Declining workloads and the potential impact these may have on profits could mean tougher times ahead for some firms. At such times it is important that firms adopt and maintain disciplined and strong management, whether that is remaining focused on your core specialisms or strengthening the balance sheet by retaining higher levels of profit.    “Firms should look at technology investment and the implementation of strategies to reduce tiers of management whilst retaining key personnel and the adoption of robust project risk management; all of which can enable firms to ride the downturn and even prosper.”   Robert Dowling continued: “It is impossible to talk about the future prospects of the industry without mentioning Brexit. Beyond the impact of the current uncertainty, the industry could even stand to gain from a post-Brexit boost and any UK government commitments and plans for infrastructure investment will be warmly welcomed.”   MHA’s national outlook on the UK construction sector used company accounts information published by credit reporting agency Experian, for construction firms in England, Scotland and Wales with an annual turnover of between £5 and £200m+.