This page contains a Flash digital edition of a book.
36 finance


The outlook is good for Solent manufacturers


While the manufacturing sector may have seen a dip at the end of last year, Amanda James, associate director and manufacturing specialist at Grant Thornton UK LLP in Southampton, says there is optimism ahead in the Solent region


It’s understandable that the slowing of the manufacturing sector at the end of 2014 caused headlines. The sector, which accounts for around 10% of the UK’s economic output, had been performing strongly throughout the year and the news from the last CIPS/ Markit survey showing the index had fallen from 53.3 in October and November to 52.5 in December was somewhat of a blow.


Here in the Solent, particularly with its plethora of marine manufacturing businesses, the news raised some concern. However, it is important to remember that December is traditionally the slowest month for the industry, with many businesses shutting down for longer periods of time over the break. This could very well account for the dip. Similarly, the fact that the figure is still above 50 is encouraging news, because it still counts as expansion.


Despite the fall in December, the latest research from Grant Thornton’s International Business Report shows that the UK ended 2014 as one of the world’s most optimistic countries. This optimism is well founded, particularly within the manufacturing industry in the Solent where historic challenges are starting to be met.


The skills gap was a heavy talking point for the region’s manufacturers in 2014 and already strides are being taken to plug the gap. The opening of Fareham College’s new CEMAST centre, which is now training 900 full and part- time students in advanced manufacturing, could very well provide a new stream of highly-skilled workers for the industry. In addition, it is promising that Solent Local Enterprise Partnership (LEP) has secured funding for a composites centre on the Isle of Wight. The proposed National Centre is a once in a lifetime opportunity for the Solent area to steal a march internationally in the design and manufacturing of large composite structures across a range of key industry sectors, including marine, maritime, oil and gas, construction and rail industries.


Of course, attracting young people into the manufacturing industry continues to be challenging, with the perception of the sector remaining one of dirty factories and ’old style’ manufacturing. This is a far cry from today’s modern manufacturing facilities and, with STEM subjects and apprenticeships being much more in the limelight in recent years, steps are being taken to address this misconception and plug the gap.


www.businessmag.co.uk


Movement is also being made in the bid to give manufacturers in the Solent access to finance. Solent LEP is currently running a £2.793 million grant funding programme for advanced manufacturers based on or moving to the Solent Enterprise Zone at Daedalus. It is also running countless other funding programmes that could kick-start growth plans for other manufacturers across the wider region.


More business support is also on the horizon for manufacturers in 2015. Last year Grant Thornton joined forces with NatWest, Thomas Eggar, GrowthAccelerator and MAS to create The Manufacturers’ Hub, which gives local manufacturers vital news and advice to help them grow. The hub has big plans to help even more businesses in 2015 and will host a key event in the spring, which I would urge all manufacturers to keep an eye out for.


Bringing businesses together to discuss challenges, opportunities and best practice has been a key theme for Grant Thornton in 2014 as we hosted a number of private breakfast events for senior leaders of local manufacturing firms.


We’ll be continuing the events in 2015, with the first taking place at Hotel Terravina on March 25. All business leaders who wish to attend can get in touch to reserve a place by contacting me on the details below.


With the overall outlook for 2015 appearing to be uncertain – particularly with the UK General Election and continuing eurozone ’crisis’ – there is concern in the manufacturing community on how this could impact business in 2015. Our next event offers business leaders the opportunity to discuss these concerns, assumptions being made in the sector about what could happen, the potential effect on business and what processes they may have put in place to address these.


Details: Amanda James 023-8038-1168 amanda.j.james@uk.gt.com www.grant-thornton.co.uk


Top issues for manufacturers in 2015


Increasing energy efficiency


According to research, spiralling energy costs remain a concern for many manufacturing businesses. Looking at ways to increase energy efficiency, such as installing LED lighting, will help manufacturers keep costs as low as possible.


Plugging the skills gap


Ensuring there is a new wave of highly-skilled workers is important to the longevity of any business. Our client Griffon Hoverwork is a prime example of a Solent business that’s seeing commercial success through talent development. Head to its website to see how it is using apprentices to move its business forward.


Accessing investment for growth


Access to capital is improving as the economy recovers but businesses are still finding it difficult to find cash to fund their growth plans. Our team at Grant Thornton can help advise on the best routes to investment, just give us a call.


Upcoming events


February 12 – Growth Insights Breakfast, Bournemouth We share with senior business leaders our insight and perspectives on successful strategies for growth in this uncertain and unpredictable environment.


February 25 – Logistics Business Leaders Forum, Southampton Breakfast discussion for senior business leaders in the transport and logistics sector


March 3 – FRS 102 Workshop, Southampton


Practical workshop to support businesses preparing for the transition


March 4 – Growth Insights Breakfast, Southampton We share with senior business leaders our insight and perspectives on successful strategies for growth in this uncertain and unpredictable environment.


March 10 – Global Mobility Services Workshop, Southampton A practical and interactive workshop addressing the areas companies should consider when deploying people cross-border, from the initial strategy stage right through to their repatriation.


March 25 – Manufacturing Business Leaders Forum, Southampton Breakfast discussion for senior business leaders in the manufacturing sector.


To find out more or to register for any of these events, contact Gemma Shannon at Grant Thornton Southampton on 023-8038-1197, or email: gemma.r.shannon@uk.gt.com


THE BUSINESS MAGAZINE – SOLENT & SOUTH CENTRAL – FEBRUARY 2015


Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12  |  Page 13  |  Page 14  |  Page 15  |  Page 16  |  Page 17  |  Page 18  |  Page 19  |  Page 20  |  Page 21  |  Page 22  |  Page 23  |  Page 24  |  Page 25  |  Page 26  |  Page 27  |  Page 28  |  Page 29  |  Page 30  |  Page 31  |  Page 32  |  Page 33  |  Page 34  |  Page 35  |  Page 36  |  Page 37  |  Page 38  |  Page 39  |  Page 40  |  Page 41  |  Page 42  |  Page 43  |  Page 44