Manufacturers battle with ‘rocketing costs’ as confidence slides post-Budget
Manufacturers in the East have been hit by sharply rising costs and the Budget and output is set to fall in the new year but firms’ investment plans remain healthy, according to a fourth quarter Make UK/BDO survey of the sector. It says business confidence among manufacturers in the region dipped sharply to the lowest level in a year in response to ‘rocketing costs’ and the Budget. While output was positive in the last three months at +12%, it is forecast to fall ‘significantly’ in the next three while orders remain flat. Recruitment turned down in the final quarter and is set to remain down in the next three months but investment intentions in the region picked up to a relatively strong balance of +19 per cent. The downbeat picture contrasts with the previous survey when almost six in ten companies saw a brighter economic outlook under a new government. According to the latest survey, 70% of manufacturers in the East of England have seen their costs already increase by up to a fifth in the last year. Most face higher costs due to the Make Work Pay reforms. After changes to national insurance contributions in the Budget, Make UK has cut its forecast for manufacturing to contract by -0.2pc this year and grow by just 0.7pc in 2025. Chris Corkan, region director at Make UK in the East of England, said: “Having faced a cost creep for most of the year, manufacturers in the East of England are now facing a cost crisis which has brought a sharp dip in their confidence. … There is now an urgent need for Government to look at other measures which might mitigate the impact of the rocketing costs that businesses are now facing.”
Separately, 92 per cent of private business owners in the East of England are confident of delivering growth in 2025, according to KPMG UK’s first private enterprise barometer. It surveyed 1,500 private business owners – including 130 from the East – across sectors such as professional services, technology, finance, industrial manufacturing and retail. Just over half of firms in the East of England reported increased demand for their products and services.
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Norfolk steelwork firm shares pressing issues with local MP
Pressing issues facing the construction steelwork sector such as cash retentions and rises in the minimum wage were on the agenda when Norfolk MP Jerome Mayhew recently visited sector specialist TSI Structures, based at Rackheath near Norwich. The MP for Broadland and Fakenham heard about the widespread issue of delayed payments to steel contractors, who can wait years for payment until projects are finished. Meanwhile, the upcoming rise in minimum wage is narrowing the gap between skilled and unskilled workers and risks worsening skills shortages in the sector. The MP also heard about decarbonisation initiatives, particularly electric arc furnace technology. Jonathan Clemens, CEO of the British Constructional Steelwork Association, said: “The team at TSI Structures did a fantastic job of hosting Jerome and highlighted the importance of the steelwork sector for the UK’s infrastructure and housing ambitions, whilst also addressing key challenges preventing firms like TSI from unlocking its full potential.” Established in 1995, TSI Structures, employs 46 staff and works across a wide range of sectors.
Photo: Norfolk MP Jerome Mayhew welding.
Global valve distributor takes warehouse in Mid-Suffolk
A freehold warehouse unit at Lawn Park Business Centre at Woolpit near Bury has been sold to AIV Europe , a global distributor of high-quality valves and actuators. Penn Commercial was involved in the sale of warehouse unit 3 of over 41,300 sq ft with offices of around 5,700 sq ft on behalf of a long-standing client. Other occupiers on the site are Precon Products and Bacton Transport. Established in 1991 as a resource for hard-to-find, exotic alloy and specialty valves, AIV has a reputation as a premier master distributor in the sector. Lawn Park Business Centre lies between Bury St Edmunds and Stowmarket, easily accessible to the A14.
‘Surge in activity’ keeps law firm’s corporate team busy
The corporate team at law firm Greene & Greene has been busier than ever in supporting entrepreneurs and businesses to achieve their commercial goals resulting in a 20 per cent annual increase in output. The team has been working collaboratively with other departments, including employment and commercial property, as well as external accountancy, business brokers and corporate finance firms. In the weeks leading up to the Autumn Budget, the firm saw a significant uptick in activity as businesses prepared for potential changes. During October, the team completed 20 transactions, including the sale of UK estate agency, Miles & Barr Holdings and advising the management team in the buyout of TMJ Interiors. It also supported several clients throughout the region and beyond with equity investments, group reorganisations, restructurings, and updates to shareholder arrangements. Since the Autumn Budget, the firm has seen continued deal flow and a pipeline of transactions targeting completion before the next changes in April 2025. Partner Mark Daly (photo, above right) said: “This has been a demanding and dynamic period for our corporate team, with the run-up to the Autumn Budget and its aftermath bringing a surge of activity across all sectors. I’m immensely proud of how our team—and the firm as a whole—has risen to the challenge, adapting quickly to new developments and delivering excellent results for our clients.”
Law firm relocates Ipswich operations to new larger offices
Ellisons Solicitors has relocated its Ipswich operations to new, larger premises in the town’s business district. The new premises at Connexions, 159 Princes Street provide around 9,000 sq ft of premium Grade A office space on the first floor, with 75 desks, a reception area, and on-site client parking. The office includes multiple meeting rooms to accommodate a range of needs and balcony views of Ipswich Town FC’s stadium. Managing partner Guy Longhurst said: “…The new office, in the very heart of Ipswich’s business district, provides an outstanding space for our growing team and ensures we are well-positioned to continue offering exceptional service to current and future clients whatever their legal needs.”
Lorna Denton-Cardew, head of the Ipswich office, said: “We’re thrilled to be able to bring our colleagues, who were previously located at Arcade Street and Wherstead Park, together under one roof. This move allows us to unite our teams, improving collaboration and creating a seamless experience for our clients.”
Cambridge company marks ‘a year of giving’
Cambridge company Domino has supported more than 40 different charitable causes during 2024 – both through employees’ fundraising projects and direct donations. Domino and its employees have helped local, national and international charities with nearly £32,000, many of which are reliant on external funding to survive. Regional causes helped during 2024 include: Bar Hill British Legion, Bar Hill Cricket Club, Bar Hill Fete, Bar Hill Primary School, Air Ambulance, Comberton United Football Club, Cottenham Theatre Workshop, Dry Drayton School and Girton United. National charities supported included Alzheimer’s UK, Parkinson’s UK, Woodlands Trust, Brain Tumour Charity and Mental Health UK. An international educational charity, the Children of Kabale in Uganda, benefitted from funds to help establish a school. Sharon Viccars, Domino internal communications manager, said: “2024 saw another successful year during which Domino continued to support a range of charities, regionally, nationally and internationally. We are very grateful and proud of the many employees who enthusiastically took on challenges to raise funds for these very worthwhile causes.”
Photo: Christmas Jumper Day at Domino raises money for Save The Children.
