Manufacturers to tighten purse strings as uncertain second half looms
Manufacturers in the East of England are seeing a mixed economic picture for the second half as concerns of a downturn loom due to a slower consumer spending and weaker overseas demand. After a robust performance in the first half, the trend has reversed as global markets soften, according to a survey from Make UK and BDO. This is reflected in in negative output figures of -14 per cent. But output and order levels for the final quarter in the region are notably strong (+36 per cent and +38 per cent respectively) and well above the national average Recruitment in the region, which was strong in the last quarter, is projected to weaken and investment intentions have also dropped, falling below the national average. Keith Ferguson, head of manufacturing at BDO in the East of England, said: “East of England manufacturers are starting to feel the squeeze as the Bank of England’s plan to stamp out inflation takes hold. In the absence of an overarching industrial strategy from government, businesses will be tightening their purse strings, protecting margins and focusing on building operational efficiencies over the next few months.” Make UK and BDO are predicting a contraction of -0.5 per cent, a slight decline from the earlier forecast. Forecasts for 2024 have also been downgraded, with expected growth at just 0.5 per cent, down from the earlier estimate of 0.8 per cent.
Freeport East to set a lead on transport decarbonisation
Freeport East, including the Port of Felixstowe, could become a pivotal UK hub for transport decarbonization, according to a new study. It emphasizes the potential to foster international partnerships and investments for the Green Hydrogen Hub. With over 4,000 vessels passing through the freeport annually, there is potential demand for 180 tonnes of hydrogen daily for green maritime fuels, or 450MW of new electrolyser capacity. Freeport East’s substantial container capacity gives it a key role in developing hydrogen-enabled green shipping corridors through global collaborations. Investing in local hydrogen refueling infrastructure could also reduce carbon emissions from A14 traffic. Steve Beel, chief executive of Freeport East, said: “This latest report confirms our goal for Freeport East to act as a hub for transport decarbonisation, reducing emissions both on land and at sea. It highlights opportunities to build new partnerships that will support maritime decarbonisation on a global level, while also providing local economic and employment opportunities within the Freeport East area.”
‘Strategic analysis of the role of hydrogen in driving green corridors and transport decarbonisation at Freeport East’ can be found here.
Call for support to maintain universities’ key role in region’s economy
Universities contribute £9.6 billion to the East of England’s economy and support 56,900 full-time equivalent jobs yet the sector faces challenges – including a £1 billion funding gap in domestic student tuition fees – and reforms are needed to sustain their economic impact, say the Universities UK group. Professor Dame Sally Mapstone, president of Universities UK, said: “The East of England is a thriving region with universities at the beating heart of so many of its local communities. As economic hubs in their own right, universities support and create a huge number of jobs across multiple sectors, meaning people up and down the country benefit financially, whether or not they have a degree. They also play a crucial role in creating the graduates, spin outs and start-ups that provide the basis for economic growth in future.” Nationally, universities support over three-quarters of a million jobs and contribute £116 billion to the UK economy, rising to £130 billion with international student spending. The report highlights the diverse sectors benefiting from university activities, emphasizing the need for investment in the sector to secure future economic growth. Record figures show a surge in student start-up businesses and forecasts show universities will play a key role in attracting funding for local regeneration projects.
Separately, a Birmingham-based driverless car company, Conigital, has recognised the University of Essex after it secured £500 million in funding. The firm was supported by the Angels@Essex team and an Essex team identified the company as a hot prospect in 2020 after a pitching competition. Founder Don Dhaliwal said: “The University of Essex and its Angels@Essex team have been behind us all the way on this incredible journey of ours.”
Cambridge drug discovery raises £1.89 million
Cambridge-based drug discovery firm Kuano has closed a £1.8 million seed funding round led by Mercia Ventures. The funds will support the advancement and validation of Kuano’s quantum simulation platform, which combines quantum mechanics and AI for the precise design of enzyme-targeted drugs. Traditional methods have limits in understanding dynamic enzyme states, but Kuano’s platform allows for accurate targeting without affecting other enzymes. The innovation holds significant potential for more effective drug design, validated across disease areas including bowel cancer and lymphoma. Kuano’s total investment now stands at £2.8 million. ACF Investors, Ascension Ventures, o2h Ventures, Meltwind Advisory and individual angel investors also took part in the fund-raising.
Separately, Arm, the Cambridge-based semiconductor giant, saw its share price rise 25 per cent when it made its debut on the New York Stock Exchange last week, valuing the company at over $65 billion at one stage. It also raised hopes that the flotation would help revive the the number of initial public offerings across the wider tech sector.
Cambridge conference & events bureau marks 25th anniversary with record year
Meet Cambridge, the official conference and events bureau for the city, has marked its 25th anniversary with its most successful year to date. The bureau handled a record 3,590 event enquiries, valued at £25.2 million in the year to end-June 2023. They were spread among its 50-plus member venues, including colleges, hotels, museums, and unique properties. Nearly nearly half of the enquiries originated from the academic sector, while 32 per cent came from the corporate sector. Over three quarters of the enquiries were from organizations within a 30-mile radius of the city. Judith Sloane, head of Meet Cambridge, said: “After some very challenging years for the business events sector during the pandemic, it is so heartening to see that our clients are back – and with renewed enthusiasm for in-person gatherings – whether they be conferences, day meetings or dinners and celebrations….We also know from talking to event organisers that confidence is returning in terms of association events, organisations are starting to plan ahead again, and we have several new enquiries for larger international conferences that will come to Cambridge within the next two to three years.”
Work set to start on pioneering net zero school
Construction is set to start on one of Essex’s first net zero school buildings in Beaulieu, Chelmsford. The expanded Beaulieu Park School is a collaboration between R G Carter, Essex County Council, and developer Countryside and L&Q and will house 420 additional primary students. The two-storey building will house reception and classrooms on the ground floor, alongside a new sports hall, kitchen, and dining space. Sustainable features like PV panels and air source heat pumps will be included. Colchester-based Ingleton Wood have been appointed by R G Carter to provide multi-disciplinary design services including architecture, structural and civil engineering support on the project. James Wilson at R G Carter said: “The team are very much looking forward to starting the build of this Net Zero solution and providing a school building which will not only become a fun and educational space for the new pupils but will also benefit the environment and future generations to come.” Completion is expected for the autumn 2024 term.
Separately, developer Chancerygate and Bridges Fund Management, have achieved practical completion on a new 200,000 sq ft multi-use development in Peterborough. Set next to Maskew Retail Park, Bourges View has three drive throughs, trade counter units and nine industrial and warehouse units ranging from 2,800-34,500 sq ft. The scheme has an estimated gross development value of £30m and it is hoped will create up to 280 jobs.
A number of occupiers have taken pre-lets of units at the development. Costa Coffee, fast food chain Taco Bell and US burger giant Wendy’s, will occupy the drive-through units. Trade merchants Toolstation, Wurth, Brewers, CareCo and self-storage provider Lok’nStore also committed to the scheme in advance of practical completion.
New property associate joins Suffolk law firm
Suffolk-based law firm Sprake & Kingsley has bolstered its property team with the addition of associate solicitor, Clare Gissing, who brings ten years of residential conveyancing experience.She said: “The firm’s name has always been synonymous with great client service and there’s a palpable sense of ambition under new managing partner, Karen Phillips. I knew it was a great place to work because a former colleague, Anna Farquharson, joined Sprake & Kingsley just under a year ago as one of three new partners.”
Managing partner Karen Phillips said: “As an instinctive, highly personable property lawyer, she’s one of the very best and we’re thrilled that she has chosen to join our team.” Sprake & Kingsley is known for its boutique residential and commercial property services as well as its private client and family work.
Photo (l-r): Karen Phillips, Anna Farquharson and Clare Gissing.
Power station group to host meet the buyer event in north Suffolk
Global industrial and energy company Mytlineos is hosting a ‘Meet the Buyer’ event in Suffolk to connect with local talent and businesses for its Progress Power Station project. The Open Cycle Gas Turbine power peaking plant will provide backup electricity and operate up to 1,500 hours yearly, benefiting energy security. Construction is set for completion in spring 2025, with operational management by Drax. Mytilineos is actively recruiting for various roles, emphasizing opportunities for local participation. The event is at Brome Grange Hotel on Sept 27th, 4pm-8pm. Those interested can register via [email protected].
Start up loans pass milestone
The Start Up Loans initiative, managed by the British Business Bank, has passed a significant milestone. It has exceeded £1 billion in loans to more than 105,000 UK businesses since it was set up in 2012. The East of England has received over £73 million through 7,508 loans, with an average loan size of £9,793. Essex was the leading county beneficiary, securing over £19 million for more than 2,000 businesses, followed by Hertfordshire with £16 million for just over 1,600 enterprises. Almost almost 40 per cent of the loans were granted to female entrepreneurs a fifth were supporting individuals from black, asian, and other ethnic minority backgrounds. Nearly 70 per cent of the funding went to businesses outside London.
