Manufacturing output set to ‘surge’ in new year as exporters and food & drink producers get busier
Manufacturing output in the East of England is set to surge in the opening months of 2024 thanks to an upturn in export orders and the strength of the region’s food & drink sector, according to a key survey. Output in the sector is set to jump to a balance of 15 per cent at the start of the new year, up from 5 per cent in the previous quarter, according to a fourth quarter manufacturing outlook survey from Make UK and BDO. Total manufacturing orders for the next quarter improved significantly to +ten per cent – boosted by food & drink – and recruitment intentions in the sector, at +19 per cent are “…very strong by historic standards and above the national average”, according to the survey. However the survey says East of England manufacturers are seeing a mixed picture. Business confidence indicators are showing promising signs of a more stable economic environment and Make UK has upgraded its growth forecast for manufacturing in 2023 to +0.8 per cent. But it is forecasting growth in 2024 of just +0.1 per cent as domestic orders remain weak. Chris Corkan, region director for the East of England at Make UK, said: “After the economic and political shocks of the last few years there is some semblance of stability returning for manufacturers in the East of England. While growth is not exactly supercharged, the positive announcements in the Autumn Statement can at least allow them to plan with more certainty without having to constantly fight fires.”
Clean energy innovation hub proposed to drive growth in Harwich
A multi-million-pound innovation hub should be set up in Harwich to support the town’s ambition to be a national leader in clean energy, says a new report. It identifies Harwich as a prime location for cultivating a cluster of businesses and organisations involved in clean energy to drive growth in the area. The Essex coastal town is established in offshore wind with businesses in maritime, logistics, and engineering for clean energy. The plan includes constructing a new £10 million plus dedicated building, with a separate green energy hub at Bathside Bay to cater for growth in clean fuels and take advantage of the area’s position within Freeport East. The report, by sector specialist Opergy Group and commissioned by Tendring DC, the University of Essex and Freeport East,said: “The proposed iconic innovation hub, inspired by successful models like OrbisEnergy in Lowestoft, is viewed as pivotal to this vision. Not only would such a facility be a testament to Harwich’s commitment to innovation, but it also holds the potential to boost economic development, innovation, and employment.” In the short-term it suggests a “pop-up hub” is set up to showcase Harwich’s potential with a team to support the cluster.
Outlook for 2024 brightens as firms’ hopes grow for interest rate cuts
Private firms in the East of England saw a fall in new business volumes for the fifth month running in November but it was at a slower rate and the 12-month outlook has brightened on hopes of interest rate cuts, according to a survey of purchasing managers. The NatWest East of England PMI business activity index rose from October’s 46.7 to 49.0, signalling only a marginal rate of contraction. Companies noted that high interest rates were weighing on demand and manufacturers reported steeper declines in new orders than service providers. But companies in the region have high hopes for output growth over the next 12 months and confidence rose to its highest in five months on hopes that inflation will fall further. Expectations in the East of England were among the strongest in the UK. Although input price inflation rose slightly, it remained close to a three-year low, while charges rose the most since July. Rashel Chowdhury, NatWest Midlands and East regional board, said: “Although output fell again in November, the rate of decline slowed and was only marginal. This, combined with a slower reduction in new orders and sustained employment growth in the services sector, raises hopes that the region’s downturn may be easing.”
Anglia Ruskin named ‘university of the year’
Anglia Ruskin University, which has campuses in Cambridge, Chelmsford, Peterborough and London, has been named the Times Higher Education University of the Year 2023, a major prize in the sector. Other universities shortlisted for the prize – awarded at a ceremony in Liverpool – included the University of Exeter, Liverpool School of Tropical Medicine and the University of York. The launch of ARU Peterborough and its leadership on public service education were cited amongst its achievements. Times Higher Education said: “The impact of the best universities on cities and regions is transformational. A university can be a focal point for community, a hub for innovation, and turn aspiration into reality. Anglia Ruskin University does all this, not just in one city but across multiple centres spanning the east of England – with the institution extending its reach and impact significantly in 2021-22.” It is one of a series of awards ARU has collected recently.
Profit expectations slide at mid-market firms
Profit expectations at mid-market companies have plummeted since October, with one in three businesses now expecting a fall in profit in the next six months, according to Grant Thornton’s December business outlook tracker. It suggests business optimism continued a downward trend across all indicators, whilst investment expectations also fell. The survey showed profit expectations have fallen by 20 percentage points (pp) since October to 46 per cent although optimism on economic growth stayed flat since October at 58 per cent. Revenue growth expectations fell 12pp below the rolling average to 58 per cent. Meanwhile, investment expectations continue to slow down with all expectations down or the same as in October. James Brown, practice leader for Grant Thornton UK in the Central and East region, said: “Throughout most of 2023, businesses have remained relatively optimistic about the economy and their ability to weather the many challenges. This latest set of business outlook data suggests that businesses are now starting to come face to face with hard realities resulting from a combination of poor economic performance, biting covenants, higher interest rates, relatively high levels of inflation, energy cost increases, political uncertainty, and decreased investment expectations.
Work on £50 million affordable homes project set to start in Huntingdon
Affordable homes provider Countryside Partnerships has bought two parcels of land for a £49.6m regeneration project to build 178 new homes on disused land in central Huntingdon. The new one, two, three- and four-bed homes off George St. will be owned and managed by MTVH, a housing provider, following a forward-sale agreement. The hope is that the development will trigger a wider regeneration of the area with investment being made in nearby roads. Planning permission has been granted and work is expected to start early next year. Greg Wood, land and development director, Countryside Partnerships South East Midlands, said: “There’s a crippling shortage of affordable homes across the UK and we’re scaling up our ambitions to tackle that shortage and to provide homes where they are needed most.”
Cashflow boost and healthy start-ups raises hopes for recovery
A sharp drop in debts owed by firms in liquidation in East Anglia and fewer local companies with overdue invoices has given a cashflow boost to the region’s businesses, according to the Eastern branch of R3. Debts owed by businesses in liquidation in the region fell by 16 per cent in November compared to the previous month. The number of local companies with invoices overdue for payment has continued to fall since May although the November figure, at 62,167,remains high. Meanwhile, there were 8,062 start-ups in East Anglia in November, up nearly eight per cent on the month a year earlier and the highest of any UK region outside London. R3 Eastern chair Hayley Watson, associate director at McTear Williams & Wood, said: “It is encouraging to see some improvements in cashflow conditions, as well as evidence of entrepreneurial appetite, but as we head into 2024, inflation remains high and core prices continue to rise. It’s impossible to predict whether the current Christmas trading period will be a badly-needed boost for local firms or the final blow. It’s critical, therefore, that directors are alert to any signs of financial distress and act on them promptly.”
Toy collection initiative brings Christmas cheer
Meet Cambridge, the conference and events bureau, is marking the end of its 25th anniversary year by supporting a local initiative drive to donate toys to children and young people who might not receive a gift this Christmas. Meet Cambridge, which invited representatives from its 53 venues to bring along a toy to its recent agm and members’ meeting (photo, right) is working with Westminster College to support the Grafton Gifting Tree, sponsored by Star Radio. Now in its 17th year, the project aims to collect 10,000 toys and gifts which are distributed through various charities within Cambs. The appeal also supports Ukrainian families who have resettled in the county. Judith Sloane, head of Meet Cambridge, said: “We were really pleased to be part of this very worthwhile appeal and give back at the end of our anniversary year. Asking our member venues to bring along a toy donation follows on from our very successful drive to contribute to the Cambridge Foodbank earlier in the year. “
