News: AESSEAL wins prestigious national business award

Rotherham-based manufacturer, AESSEAL has won national recognition at this year's prestigious EEF Future Manufacturing Awards.

With its global headquarters at Templeborough, the £170m turnover company manufactures mechanical seals for a wide range of industries, including oil and gas, food, water, mining and pharmaceuticals.

The Engineering Employers' Federation (EEF) is the UK trade organisation dedicated to the future of manufacturing. Its Future Manufacturing Awards highlight the resilience, determination and ingenuity of the UK's manufacturing community, providing a fantastic opportunity to showcase everything that is great about the industry.

Rothbiz reported in November that AESSEAL had been successful in the regional EEF awards.

AESSEAL won the Developing Future Talent award, sponsored by Randstad Inhouse Services. This award recognises the manufacturer that has done the most across the country to build skills, talent and develop their employees internally and promote engineering and manufacturing careers through activities within the community.

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A panel of judges drawn from business leaders, industry experts and academics were suitably impressed, stating: “This company demonstrated a multi-faceted approach to developing young talent within the sector. This included a schools outreach programme, an award-winning manufacturing apprenticeship programme, support for initiatives to attract and support women in engineering, and a dedicated team including a member of the Enterprise Adviser Network, Prince's Trust Mosaic Mentors and apprentice ambassadors."

Michael Rich, test house manager at AESSEAL, said: "This award is testament to our hard working and dedicated team, and we are delighted to have won. We put a lot of work into developing our people and to be recognised for this is magnificent. I'm thrilled that we have former apprentices here with me tonight celebrating this award."

Sally Cleary, managing director of Randstad In-house Services, said: "The competition within this category was fierce, the entries were truly inspirational and is testament to the talent the industry is nurturing. As an in-house recruitment partner to so many of the UK's manufacturers, we work hard to support our clients in providing solutions within the sector skills shortages. This is why it was so important for Randstad to be part of the recognition of future proofing inspiring talent and celebrate and share in your success stories. I'd like to thank all of the finalists and congratulate AESSEAL on their win on the night. AESSEAL is a great role model to entice more talent into manufacturing."

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Stephen Phipson, CEO at EEF, added: "Developing future talent is vital for all manufacturers. The sector is changing at a phenomenal pace so I encourage other manufacturers' to take a leaf out of AESSEAL's book by taking positive steps in up skilling their workforce and preparing for change."

AESSEAL website
EEF website

Images: AESSEAL / EEF

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News: AESSEAL wins prestigious regional business award

AESSEAL's successful year continues as the Rotherham manufacturer wins regional recognition at the prestigious EEF Future Manufacturing Awards.

With its global headquarters at Templeborough, the £170m turnover company manufactures mechanical seals for a wide range of industries, including oil and gas, food, water, mining and pharmaceuticals.

The Engineering Employers' Federation (EEF) is the UK trade organisation dedicated to the future of manufacturing. Its Future Manufacturing Awards highlight the resilience, determination and ingenuity of the UK's manufacturing community, providing a fantastic opportunity to showcase everything that is great about the industry.

AESSEAL walked away with the Developing Future Talent Award, sponsored by Randstad Inhouse Services. This award recognises the manufacturer that has done the most to build skills, talent and develop their employees internally and/ or promote engineering and manufacturing careers through activities within the community.

AESSEAL was up against stiff competition from a range of innovative businesses - small and large - from across the region. It was selected by a panel of judges drawn from business leaders, industry experts and academics after impressing them with the way they adapted and modernised a long-running programme embedded in the culture of the organisation and allowed further expansion.

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Richard Halstead, membership director for the North at EEF, said: "This award is testament to the hard working and dedicated team at AESSEAL. As a recognised name in the sector it puts them on the map for the Yorkshire region as a modern and innovative company and goes some way to demonstrate the valuable contribution made by local manufacturers, to the employees in our region. I'm sure they will be sharing this news with their staff, customers and suppliers."

Sally Cleary, managing director at Randstad Inhouse Services, added: "People are critical to the success of any business. As the UK manufacturing sector continues to make a global impact, there has never been a more important time to develop and foster the skills of employees to remain at the forefront of innovation, particularly as the industry faces a skills shortage. Doing so is essential for any company wishing to stay competitive. AESSEAL fully deserves this award for the fantastic work that they do in nurturing their employees' skills. We wish them the best of luck in the national finals."

The National Award Winners will be announced at the EEF National Gala Dinner in January.

This year, AESSEAL invested £500,000 to double the intake of apprentices to 40 - 12 apprentices for its machine shop, and a further 28 people in other support roles. It has previously won recognition for its bespoke Manufacturing Apprenticeship programme.

Rebecca Clubbe, marketing communications manager at AESSEAL said: "Today's new recruits are tomorrow's leaders and providing them with the skills and tools to excel will ensure our businesses future for the long term. The change happening in manufacturing as we move into the fourth industrial revolution is huge and it is this new generation who will have the ideas and the skills to meet the challenges."

AESSEAL website
EEF website

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News: Brexit wouldn't help Tata Steel

Leaving the EU would not help the UK steel industry and if Tata decides to remain in the UK it will need to do a lot of rebuilding with its staff, according to local MP, John Healey.

The decision by Indian-owned steelmaker to explore all options for portfolio restructuring including the potential sale of Tata Steel UK, in whole or in parts, has led to much debate over the future of the steel industry.

IMechE, the independent engineering society working to raise the profile of mechanical engineering, hosted a debate on the issues in Sheffield this week bringing together industry players, politicians, lobby groups and chambers of commerce.

The panel discussed the competitiveness of UK steel in comparison other nations such as Germany. Whilst European producers had all been hit by Chinese dumping, it was concluded that the UK is being further impacted by the lack of a long term industrial strategy and uncompetitive business rates and energy costs.

Andrew Douglass, engineering director from TATA Speciality Steels in South Yorkshire, explained that on the 600,000 tonnes produced via the Electric Arc Furnace (EAF) at Aldwarke in Rotherham, the company loses an estimated €40 per tonne due to energy costs and tariffs - that's on specialist steel that sells for €600 per tonne.

He also explained that energy and infrastructure could affect the future of the industry and the "green steel" method discussed by potential buyer, Liberty Steel, adding: "The UK exports some nine million tonnes of scrap but we have a barrier to using it through the EAF route. Whilst it is technically possible to build a new EAF, the infrastructure needed will cost the same again. Connecting to the grid, with the huge amount of power needed in seconds, means it is not liked by energy providers who can't ramp up generation as fast."

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Douglass was positive for the future of speciality steels in South Yorkshire - a £275m of turnover business, specialising in carbon, alloy and stainless steels for demanding applications like aerospace, motorsports and oil and gas. Until recently it employed over 2,000 people.

Douglass said: "The future is around vertical integration and specialisation. The blast furnace at Port Talbot has been turned around since the much publicised £1m a day losses and is now comparable to IJmuiden [Tata's Dutch plant], but it doesn't have the capacity to galvanise the steel it produces, which is where the added value is.

"Speciality is an example of vertical integration using the EAF route. The strategic focus on sectors such as aerospace means that the margins are much better on refining the steel than producing it.

"It's been a privilege to work with an ambitious company and Tata have invested heavily. Where do we want to be? It's a big opportunity and I'm optimistic of the challenge."

Wentworth and Dearne MP John Healey, whose constituency includes the Aldwarke plant congratulated the IMechE on securing the debate in South Yorkshire, "as the crisis goes beyond Port Talbot. Rotherham is the forgotten town."

The MP told that debate that all parties agree that the UK needs a steel industry and added: "We have seen intense pressure in the last year. I think David Cameron doesn't want to see the end of the UK steel industry whilst he is Prime Minister."

Healey was critical of the Government's action so far with changes to tariffs that could have been brought in much sooner and no changes to a business rates system that is seen to punish investment.

He also continues to raise concerns over Tata's sale process, stating: "The sale of Long Products to Greybull took two years. The current tight timescales are too short and I don't want to see the future of the operations jeopardised by haste."

There has been conjecture that Tata may even stay in the UK and keep some of its assets, especially as the Government examines pension liabilities and offers financial support. On this Healey said: "Having talked for years with members of staff, if Tata stays, there will be a lot of rebuilding needed with the workforce."

The final point of the debate saw the panel conclude that leaving the EU would not help the UK steel industry.

Andy Tuscher, regional director of membership organisation, EEF, which lobbies the Government on steel and other engineering sectors said: "A third of UK steel is exported to the EU and two thirds of steel imported is from the EU. Leaving would create even more uncertaintity on top of the issues that we already face."

John Healey added: "The EU is the single biggest market. To think that Britain on it's own could negotiate a trade deal with China on favourable terms is for the birds. They wouldn't even have us in the room."

Indeed, Tata Steel employees have been sent a memo ahead of next week's referendum stressing how important the EU market is. It reads: "access to that market is fundamental to our business."

The panel was chaired by Master Cutler Craig McKay and featured panelists John Healey MP for Wentworth and Dearne, Andrew Douglass, engineering director from TATA Speciality Steels, Andy Tuscher, regional director, EEF and Andrew Denniff, chief executive of Barnsley & Rotherham Chamber of Commerce.

Tata Steel website
IMechE website

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News: Budget representations made

Business groups and membership organisations have put forward representations on what they'd like to see in today's Budget.

HM Treasury welcomes representations as part of the policy-making process and interest groups, individuals or representative bodies submit them with the aim of commenting on government policy and suggesting new policy ideas for inclusion in the Budget or Autumn Statement.

The British Chambers of Commerce (BCC) is urging the government to back long-term business investment, by introducing a permanent Annual Investment Allowance of £500,000.

Britain's manufacturers are pressing the Chancellor to use the last Budget of this Parliament to focus on measures which will continue to have a measurable impact on sustaining and underpinning support for economic growth.

Among a series of measures, The Engineering Employers' Federation (EEF), the UK trade organisation dedicated to the future of manufacturing, is calling for the compensation package for energy intensive industries to be brought forward to offset the crippling cost of energy which is a competitive threat and is undermining industries such as steel-making in the UK. The Department for Business has indicated that approval for such a measure under state aid rules from Brussels could come as early as September.

In last year's Budget, the government accepted the need to compensate energy intensive industries and announced plans to extend the compensation for the cost of the Carbon Price Floor (CPF) (a carbon tax) and EU emissions trading system to 2019-20. It is also set to introduce a new compensation scheme, to help energy intensive industries with higher electricity costs resulting from the renewables obligation and small-scale feed in tariffs for renewable generation, from 2016-17.

The EEF, which has offices in Rotherham, is also seeking support from the Chancellor for a scheme that puts employers in the driving seat in the training and funding of apprenticeships and calling for an extension of the Annual Investment Allowance as part of a wider review of capital allowances, together with measures to encourage more companies, especially SMEs, to make use of research and development tax credits.

The Federation of Small Businesses (FSB), the UK's largest business organisation representing around 200,000 small businesses, has called on the Chancellor to focus on delivering further supply side reforms, building on initiatives already underway.

The FSB highlighted taking forward tax simplification measures, improved broadband delivery and increased transparency and accountability for LEPs, as well as prioritising the opening up of Government procurement by fast tracking the delivery of the Lord Young reforms so that businesses see the benefits.

The issues of business rates is continually raised with the Government announced further details this week of "the most-wide ranging review of national business rates in a generation."

HM Treasury website

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News: AMRC research “pays dividends for business”

The benefits to business generated by the partnership between industry and academia at the University of Sheffield Advanced Manufacturing Research Centre (AMRC) with Boeing, have been highlighted in a recent paper by the EEF.

Based on the Advanced Manufacturing Park (AMP) in Rotherham and a partner in the HVM Catapult (the government's strategic initiative that aims to revitalise the manufacturing industry), the AMRC focuses on advanced machining and materials research for aerospace and other high-value manufacturing sectors. It is a partnership between industry and academia, which has become a model for research centres worldwide.

The Engineering Employers' Federation (EEF) is the UK trade organisation dedicated to the future of manufacturing, and recently published a specially-commissioned report - Manufacturing, Britain's Future.

The report sets out how the 4th industrial revolution is at hand, and how, in the global battle for dominance, innovative firms can take the lead and help position Britain as the manufacturing and technology hub of Europe.

Terry Scuoler, CEO of EEF, said: "Our sector's ability to remain on top of the 4th industrial wave hinges on the decisions made now and over the next decade by consecutive governments. We must continue to establish the foundations to support our manufacturing renaissance, particularly alleviating the pressure that Industry 4.0 will place on investment and skills. It is vital that the Government steps up to this challenge and works hand-in-hand with manufacturers and academia to ensure that the UK is not left behind.

"We can no longer afford to be short term in our thinking. A visionary future requires a visionary approach. We have to think in terms of our requirements to 2050 and beyond."

In a section detailing those companies and organisations that are shaping the future of manufacturing, the EEF uses the AMRC as a key case study stating that AMRC research "pays dividends for business." It highlights work that the AMRC has done with companies ranging from Rolls-Royce to smaller, innovative companies like Performance Engineered Solutions and Technicut Ltd.

The AMRC has more than 70 members and has worked with hundreds of businesses to enhance the industry's performance. A good example of this is the development of a new manufacturing method, which has dramatically reduced the machining time and increased the quality of the gas turbine discs used in Rolls-Royce jet engines.

The report states: "Through commissioned projects companies can use the facilities and expertise at the AMRC to try out new innovations or resolve production problems. They can undertake this research without having to change their day to day factory operations and therefore benefit from fewer risks and significantly lower costs."

Looking ahead, the report highlights the AMRC's Factory 2050, currently under construction on the Sheffield Business Park. The £43m development will be the UK's first fully reconfigurable assembly and component manufacturing facility for collaborative research, capable of rapidly switching production between different high-value components and one-off parts.

"Not content with addressing today's manufacturing challenges, the AMRC is building a new Factory of the Future, Factory 2050, which is designed to be the most advanced factory in the world," says the report.

"It will be possible to quickly and easily reconfigure the layout and the machinery to meet changing demand as the drive for customised products increases."

Professor Keith Ridgway CBE, executive dean at the AMRC, said: “We are proud to receive such a ringing endorsement from the UK's leading manufacturers' organisation.

"Terry Scuoler is right to say the UK cannot afford short term thinking and needs a visionary approach. Factory 2050 and the work the AMRC Training Centre is doing to bridge the engineering skills gap are a key part of that forward looking approach."

AMRC website
EEF website

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News: Manufacturers less confident

Manufacturers' bullish expectations at the beginning of 2014 have eased back, leaving firms cautiously confident as they head into 2015, according to the annual EEF/Aldermore Executive Survey.

The Engineering Employers' Federation (EEF), the UK trade organisation dedicated to the future of manufacturing, offers business services, government representation and industry intelligence and around a quarter of the UK's manufacturing businesses are members and many more use its services to help them work.

Manufacturers taking the survey expecting UK economic conditions to improve almost halved from 70% to 37% this year. At the same time, the number expecting conditions in the UK to deteriorate has tripled, rising from 5% in 2014 to 17% this year. However, global economic conditions are of greater concern for manufacturers - 38% expect them to take a turn for the worse in 2015 (compared to just 5% at the beginning of 2014).

Seven in ten manufacturers (70%) say that the UK will be a competitive location for them in 2015. They are also confident that their staff numbers, sales, margins and productivity, will be heading in the right direction with those expecting an increase in these core measures consistently outstripping those expecting a decline. Almost seven in ten (69%) expect to improve productivity, while 58% expect to boost UK sales. Just under half (49%) expect to be taking on more permanent staff.

Export sales also look positive – albeit expectations are down on last year. Just under half of manufacturers (49%) expect to see an increase in 2015, while three in ten (30%) expect sales to remain steady.

Terry Scuoler, Chief Executive of EEF, says: "Manufacturers' confidence at the beginning of last year was very high - one year on and, while still positive, it has very evidently eased back. The realities of 2014 have taken the edge off future forecasts and what we are now seeing as we head into 2015 is a far more muted outlook, tempered by a backdrop of difficulties in the EU and wider geo-political concerns.

"The sector is still making good strides, but confidence can be fragile and with an election on the way it is vital that uncertainty and disruption are kept to a minimum. Recovery is by no means guaranteed and we would urge party leaders – and the next Government of whatever shade - to remain focussed on delivering a fully balanced, stable economy where manufacturing is enabled to expand and grow."

The EEF opened its new offices in Catcliffe, Rotherham last year.

EEF website

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News: Business organisations prepare for Autumn Statement

Business organisations have submitted their calls on the Government for what they would like to see in the upcoming Autumn Statement.

To be given to MPs by the The Chancellor of the Exchequer, George Osbourne on December 3, the Autumn Statement is an update on the government's taxation and spending plans.

The Federation of Small Businesses (FSB), the UK's largest business organisation representing around 200,000 small businesses, has called on the Chancellor to continue supporting business confidence by reforming business rates, taking forward tax simplification, and investing in infrastructure to strengthen and rebalance the economic recovery.

The British Chambers of Commerce (BCC) focuses on new measures to accelerate the progress of infrastructure projects that are critical to businesses, both locally and nationally, urging the Government to enhance the compensation and incentives available to those affected by nearby infrastructure projects such as rail and housing, and commit funding to repair deteriorating roads over the next five years.

The Engineering Employers' Federation (EEF), the UK trade organisation dedicated to the future of manufacturing, is calling for a massive boost to infrastructure and innovation to build on the strong economic recovery and, lay foundations for longer-term economic growth. It wants to see funding for the Catapult network increased and the Energy Intensive Industry (EII) compensation scheme announced at Budget 2014, implemented as soon as possible.

Gordon Millward, regional chairman of the FSB, said: "Businesses want an Autumn Statement that delivers stability and certainty, and provides them with incentives to grow and create employment.

"That means investing in our infrastructure to match the world’s best, whether that be broadband, road, rail or air. Regional connectivity, particularly between our great cities in the North, must be improved if the region is to reach its full potential and challenge the economic prowess of London. We encourage the Chancellor to progress plans to set out how that vision might be fulfilled. Likewise, we would like to see sights set far higher on broadband connectivity to power the UK's digital economy.

"On taxes, businesses will be looking for measures to ease the cost of business rates, and a commitment to fundamental reform of the current, outdated system. To support business growth and reduce costs, further efforts to simplify our complex tax system should also form a central part of the Statement.

"The FSB has also long called for simplified and sharpened business support to match businesses' growth ambitions. Unfortunately current schemes have not had the impact they should have, which is why the FSB has called for reforms. We are pleased the Government has reviewed the current offer this year, with a view to making it easier to access. We now look forward to seeing what progress has been made."

FSB website
EEF website

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News: Deputy PM opens EEF HQ

Deputy Prime Minister, Nick Clegg has officially opened manufacturers' organisation EEF's new offices in Rotherham.

The Engineering Employers' Federation (EEF), the UK trade organisation dedicated to the future of manufacturing, signed up to take nearly 7,000 sq ft of office space at Advantage House, Poplar Way, Catcliffe in a deal secured by BNP Paribas Real Estate.

The EEF offers business services, government representation and industry intelligence and around a quarter of the UK's manufacturing businesses are members and many more use its services to help them work. The modern new offices will now be EEF's new regional headquarters, putting it in a prime position on the doorstep of the Advanced Manufacturing Park (AMP).

The move further underlines EEF's strong commitment to manufacturing in the region. Recently it boosted its support for local manufacturers by creating and investing in a second, dedicated regional director role. Earlier this week, EEF also announced that it was taking over the ownership and day to day running of NDI (Northern Defence Industries) – the trade body representing companies involved in the defence sector.

Nick Clegg MP, said: "I'm delighted to be able to open EEF's new offices, right on the doorstep of our world class advanced manufacturing hub here in South Yorkshire. We are fast becoming the envy of the world when it comes to high value manufacturing. Extra support for local manufacturers has to be a good thing and can only enhance this reputation even further.  

"British manufacturing is a great news story not just in South Yorkshire, but across the wider UK economy. There is a real sense of optimism emerging, albeit cautiously, about the future.

"Our economy is growing again and we have more people in work than ever before - with manufacturing businesses adding around 10,000 new jobs to our economy every month. That's no accident. It's down to the hard work of businesses and workers to help Britain get back on its feet. Together, we’ve got to ensure that the hard work of the last four years continues to pay off."

Terry Scuoler, CEO of EEF, added: "We're delighted to be boosting our support to manufacturing in this region. Sheffield and the Yorkshire and Humber region have a rich history and reputation for producing goods that are recognised and valued around the world. Our new offices provide a physical link between that strong legacy and the dynamism and creativity of modern manufacturing.

"More importantly, however, this move signifies our belief in the important contribution manufacturing still has to make in the region and our determination to ensure that it continues to grasp opportunities to adapt, innovate and grow."

After opening the new offices, Mr Clegg visited MTL Group, an EEF member company based in a 300,000 sq ft manufacturing facility in Brinsworth, Rotherham. MTL Group is one of Europe's fastest growing project manufacturing specialists in the metal sector and is a global exporter of secondary steelwork. It works with a global blue-chip customer base in the defence, construction equipment, rail and off-shore wind energy sectors.

Managing director Dr Henry Shirman gave Mr Clegg a guided tour of the premises, demonstrating the company's investment in high technology equipment, most recently in new robotic welding equipment following the success of a large export order for armoured hulls. This £750,000 investment allows MTL to compete on a global basis, with exports now accounting for 40% of total sales for the present financial year.

Dr Shirman explained how MTL works closely with its customers in the defence, recycling and off-highway sectors to improve their products through its "Design for Manufacture" service. This service is now a core feature of its business and has resulted in customer products being made with lighter, stronger materials at a lower cost.

EEF website
MTL Group website

Images: BNP Paribas Real Estate

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News: UKTI and EEF sign partnership deal

The Engineering Employers' Federation (EEF), the UK trade organisation dedicated to the future of manufacturing, has signed a partnership agreement with the Government’s trade body, UKTI, to help boost exports and attract more businesses to invest in the UK.

The deal demonstrates a commitment from EEF, which represents manufacturers ranging from global corporations to small and medium sized businesses, to support UKTI in achieving the Government's £1 trillion export target by 2020.

The agreement, signed by UKTI CEO Dominic Jermey and EEF CEO Terry Scuoler, will see both organisations working closely together to build stronger partnerships with manufacturers, boost overseas trade missions and raise greater awareness of the support available from UKTI.

Terry Scuoler, CEO of EEF, said: "Improving our export performance is key to helping Britain achieve the better-balanced economy needed to deliver long-term stability and growth. UKTI has a vital role to play in helping companies to increase their global footprint. We will now work together to ensure that manufacturers are aware of the support it provides in finding new markets overseas, as well as smoothing the way for new exporters."

Dominic Jermey, CEO of UKTI, added: "As part of our strategy to build stronger relationships with our partners, I am delighted to be working closer with British manufacturers through EEF to drive towards sustainable economic growth through exports. The scale of ambition to achieve our £1 trillion export target by 2020 will require a full team effort with Government and business working together. This partnership will be a very positive step forward towards this goal."

A recent economic survey from the EEF showed an area of caution in exports where demand weakness in key markets and the appreciation of sterling is adding to uncertainty, resulting in a small decline in the number of Yorkshire manufacturers confident of achieving export growth in the third quarter of the year. With the Eurozone economy flagging significantly, political risks increasing and a stronger Sterling exchange rate, export orders UK-wide are turning negative for the first time since the start of 2013.

The EEF recently acquired a new headquarters in Rotherham, taking nearly 7,000 sq ft of office space at Advantage House, Catcliffe.

EEF website
UKTI website

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News: Yorkshire manufacturers power on amidst uncertainty overseas

Manufacturers in Yorkshire are continuing to power on, reporting positives across every key indicator of business health and outperforming the UK average, according to an industry survey.


The data, published in the latest quarterly Manufacturing Outlook survey by EEF, the manufacturers' organisation, and accountancy and business advisory firm, BDO LLP, reveals that despite a more difficult trading environment overseas business confidence in Yorkshire has firmly taken root, with this quarter's findings showing that manufacturers' strong first half of the year is being sustained in the third quarter.

A balance of 32% of manufacturers in Yorkshire are reporting an increase in output in Q3 (compared to UK average of 10%), with a further 27% seeing growth in order books and a balance of 33% looking to recruit.

One area of caution is in exports, resulting in EEF issuing a warning that the demand picture is now more uncertain than for some time. With the Eurozone economy flagging significantly, political risks increasing and a stronger Sterling exchange rate, export orders UK-wide are turning negative for the first time since the start of 2013.

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Jason Whitworth, partner and head of manufacturing at BDO in Yorkshire, said: "The results come as welcome news to our regional economy and jobs market. There is nervousness surrounding overseas market, so a strong recovery in exports this year is still uncertain. I would urge companies to avoid using this as an incentive to focus investment on domestic markets, as this is not where long term sustainable growth will lie."

Andy Tuscher, Yorkshire and Humber region director at EEF, added: "Growth in manufacturing remains positive in Yorkshire, although it is understandably starting to return to more moderate and sustainable levels as the pent-up demand which built up during the recession begins to expire.

"However, there are clearly risks overseas which could threaten the pattern of growth going forward. In the face of this, while politicians may be focused on next year's election it is critical that efforts over the rest of this parliament remain focused on sustaining growth across manufacturing and the economy."

Nationally, EEF is continuing to forecast strong manufacturing growth at 3.3%, with a return to more normal long-term growth of 2.1% in 2015.

The Engineering Employers' Federation (EEF), the UK trade organisation dedicated to the future of manufacturing, recently announced that it had acquired a new headquarters in Rotherham, taking nearly 7,000 sq ft of office space at Advantage House, Catcliffe.

EEF wesbite
BDO LLP website

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News: Yorkshire manufacturers remain positive

Yorkshire manufacturers are outperforming the other regions in the UK, according to the latest quarterly Manufacturing Outlook survey by EEF, the manufacturers' organisation, and accountancy and business advisory firm, BDO LLP.

The data, published today, reveals that business confidence in Yorkshire has firmly taken root, with this quarter's findings showing that manufacturers' strong start to the year was sustained in the second quarter. Firms reported positives across every key indicator of business health.

A balance of 54% of Yorkshire-based manufacturers reported an increase in orders in Q2 – higher than all other UK regions. Yorkshire was only pipped to the post by East of England for output.

39% of manufacturers have ramped up recruitment during Q2 (second only to the South West), with a further 28% planning to invest further during the year ahead.

The one area of caution is in exports where demand weakness in key markets and the appreciation of sterling is adding to uncertainty, resulting in a small decline in the number of Yorkshire manufacturers confident of achieving export growth in the third quarter of the year.

The strong results for the region mirror the national picture and EEF is now forecasting 3.6% manufacturing growth, a substantial upgrade from the 2.7% forecast at the beginning of the year.

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Jason Whitworth, partner at BDO LLP in Yorkshire, said: "Government manufacturing policy is clearly paying dividends and is creating an environment in which Yorkshire manufacturers are comfortable enough to commit to future investment, both in terms of employment and capital. This is a very positive indicator for the rest of the year. What is now needed is for this success to be replicated abroad.

"We would encourage the Government to introduce more supportive measures for exports, especially given the tentative nature of economic recovery in Europe."

Andy Tuscher, Yorkshire Region Director at EEF, added: "There is a palpable sense of mounting confidence amongst manufacturers here in Yorkshire and this set of results tells us that it is fully justified. The continuing trend for strong positives is a further boost for businesses emerging from the shadow of the recession and a further boost to the local economy and the job market.

"Manufacturers in this region will also have an important role to play in helping to sustain broad based growth across the UK."

The Engineering Employers' Federation (EEF), the UK trade organisation dedicated to the future of manufacturing, recently announced that it had acquired a new headquarters in Rotherham, taking nearly 7,000 sq ft of office space at Advantage House, Catcliffe.

EEF website
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News: EEF take advantage in Rotherham

The Engineering Employers' Federation (EEF), the UK trade organisation dedicated to the future of manufacturing, has taken nearly 7,000 sq ft of office space in Rotherham.

The EEF offers business services, government representation and industry intelligence and around a quarter of the UK's manufacturing businesses are members and many more use its services to help them work.

The organisation has has leased 6,878 sq ft of office accommodation at Advantage House, Poplar Way, Catcliffe in a deal secured by BNP Paribas Real Estate.

EEF has secured the second floor, which comprises self-contained modern, high quality offices within close proximity of the M1 and on the doorstep of the Advanced Manufacturing Park (AMP).

Stuart Waite, senior surveyor at BNP Paribas Real Estate, said: "Advantage House is located in a prominent position next to the Sheffield Parkway and in close proximity to the M1 motorway, which is one of the reasons why EEF chose this building. The deal itself is positive for the local market, as it is one of the largest deals to complete so far this year."

Newcastle-based JK Property Consultants acted for the EEF in buying its new Rotherham headquarters. JK was able to secure the second-floor offices at a rent of just under £9.50 per square foot before incentives are deducted. The deal allows EEF to move in rent-free for six months and then pay half-rent for the next 12 months during the initial four-year lease.

Andy Tuscher, North East Region director at EEF, said: "This move demonstrates our ongoing commitment to local and regional businesses and ensuring that they have easy access to advice and support.

"As the recovery picks up pace, they will probably need even more help tackling things such as HR issues, legal problems and health and safety concerns. We will now be even better-placed to provide this expertise."

Energy Alloys, the American oil field metals business which has its UK head office at Advantage House, has recently secured planning permission for alterations to the office space within its manufacturing and warehouse facility at Canklow, also in Rotherham. The site processes and holds long products for the energy, stainless and engineering markets and 36 employees are set to move to Canklow from across Rotherham.

EEF website
Energy Alloys website

Images: BNP Paribas Real Estate

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News: Yorkshire manufacturers report high demand

Manufacturers in Yorkshire and Humber are reporting record high demand as well as rising outputs and headcounts in the first quarter, according to the latest quarterly Manufacturing Outlook survey published by EEF, the manufacturers' organisation, and business advisers and accountancy firm BDO LLP in Yorkshire.

According to the survey, 47% of local manufacturers reported order growth in the first three months of the year. This is the strongest reading ever recorded for the first quarter, which typically has the lowest trading levels, and sits above the peak demand level for four years.

Output, employment and investment all increased, resulting in mounting regional confidence. Manufacturing outputs reached a balance of 41%, marking the highest level since mid-2011, whilst a balance of 47% of companies also increased headcounts.

Looking ahead, improving trading conditions have led to a balance of 30% of local companies to plan on increasing investments in Q2 to maximise potential growth opportunities.

The findings indicate that Yorkshire is well on course to mirror the UK as a whole, where the recovery is well underway and key indicators such as output, orders, employment and investment intentions are approaching or have already hit record highs.

Andrew Tuscher, Yorkshire region director at the EEF, said: "Looking ahead to the next quarter, this is the most positive set of indicators we have seen for some time. Here in Yorkshire it looks like we're well and truly steaming down the right road. Manufacturers are clearly feeling more confident as their order books fill up and exports are strong. It is now vital that Government does all that it can to underpin support for companies, giving manufacturers the confidence to fulfil their investment and recruitment plans."

Jason Whitworth, partner at BDO LLP in Yorkshire, added: "Yorkshire has seen an unprecedentedly good start to the year with record high demand and a significant increase in employment and manufacturing outputs, boding well for the coming year. We expect to see the region continue to strengthen as the wider UK recovery takes hold.

"The broad nature of the recovery that this survey points to is a source for particular encouragement as it has been some time since all sectors have been moving in the right direction. The fact that this is underpinned by a significant strengthening of exports, especially to Europe, adds further stability to the foundations of growth. This should also give confidence to the Government that its support for the sector is starting to achieve the desired results and if implemented in a clear and carefully targeted fashion will continue to reap benefits."

As manufacturing firms look ahead with intentions to invest and hire more staff, the EEF is calling on The Chancellor to use today's Budget to secure the best possible business conditions to support these investment and growth ambitions. This includes competitive UK energy costs, improved lending to business, further action on skills and a long term vision for infrastructure investment.

EEF website

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News: Survey shows companies are continuing to reshore manufacturing

The gradual trend towards reshoring production in-house and sourcing UK based suppliers, is continuing according to a major report released this week by EEF, the manufacturers' organisation and global law firm Squire Sanders.

According to the report "Backing Britain – a manufacturing base for the future," one in six companies have reshored production back to the UK in the last three years. This compares to one in seven companies in 2009.

In January, UK Trade & Investment (UKTI) joined forces with the Manufacturing Advisory Service (MAS) to launch Reshore UK, a new one-stop-shop service to help companies bring production back to the UK.

UKTI recently identified 1,500 manufacturing jobs reshored in the UK since 2011 and a MAS survey showed companies citing costs, quality and reducing lead times as the top three reasons for moving production back to the UK. The EEF survey also shows that the main reason for reshoring production is to improve the quality of products and components, cited by 35% of companies.

Some 84% of survey respondents emphasise an advantage to their business brand and reputation from the production of UK-made goods, the quality of which is held in high regard around the world.

Terry Scuoler, chief executive at EEF, said: "The trend may be gradual but is highly encouraging to see more re-shoring continuing. While it will always be two-way traffic, the need to be closer to customers, to have ever greater control of quality and, the continued erosion of low labour costs in some competitor countries means that in many cases it makes increasingly sound business sense."

Reshore UK will provide a matching and location service, access to advice and support and a named individual to help each company. MAS's role is to help support small and medium sized businesses to be globally competitive and to ensure there is capacity in the UK supply chain to take advantage of the reshoring opportunities. UKTI will use its global networks to attract foreign companies to invest.

Lombard, the UK's largest asset finance provider, has also seen evidence of the reshoring trend. Lombard recently celebrated its 150 years in business since it began hiring out rolling stock to the railways as the North Central Wagon and Finance Company in Rotherham in 1861. It still has around 600 staff in Manvers and specialises in products such as hire purchase, operating lease and sale and leaseback.

Richard Hemsley, managing director of Lombard, said: "We have worked with a number of customers recently who have made the decision to bring a greater proportion of the manufacturing process back to the UK. These customers have found it both more cost effective and efficient, speeding up productivity and delivery of lead times as well as providing wider benefits such as the creation of new jobs.

"We are eager to identify how the asset finance industry can support the investment requirements for others adopting the approach to "Make it in Britain.""

EEF website
Lombard website

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News: Yorkshire manufacturers enjoying strong demand

Yorkshire and Humber manufacturers are continuing to see strong conditions with increasing confidence being reflected in recruitment and investment intentions, according to a major survey published today by EEF, the manufacturers' organisation, and business advisers and accountancy firm BDO LLP in Yorkshire.

According to the survey, manufacturing output and orders remained strong in the final quarter of the year with positive balances of +22% and +32% respectively. This is resulting in increased demand for skilled people with a recruitment intention balance of + 19% for the last three months, compared to the forecasted +12%.

The percentage of Yorkshire manufacturers intending to take on staff remained strong at 20% for the first three months of the year, thanks to expected further increases in output (+44%) and order balances (+35%) in Q1 2014.

EEF is forecasting that this picture will continue into 2014 with the sector growing by 2.7% in 2014 compared to 2.4% for the economy overall. The improved performance during 2013 has also resulted in EEF revising its forecasts for this year, showing manufacturing contracting by just 0.1% and the economy growing overall by 1.4%

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Andy Tuscher, Yorkshire region director at the EEF, said: "Over the course of the year we have seen a definite turnaround in prospects for manufacturing and this looks set to continue into next year.

"This increased confidence is evident in companies looking to increase their headcount and, most importantly for balanced growth, step up their investment. However, uncertainties in the global economy remain and a sustained recovery is not secure. As a result, growth must remain a priority for government over the remainder of this parliament, starting with the Autumn Statement this week."

Jason Whitworth, partner at BDO LLP in Yorkshire, added: "Continued strong demand within the domestic market is very encouraging and this does suggest that a sustainable manufacturing recovery has gained a foothold in the region.

"However, international markets hold the key to a fully-fledged and meaningful improvement and these markets remain frustratingly fragile. We haven't missed the boat yet, but companies need to stand ready and be supported by an accessible Government-backed export framework in order to take full advantage of the recovery on the continent and beyond."

EEF website

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News: Kiveton Park Steel Limited wins future manufacturing award

Rotherham-based, Kiveton Park Steel Limited, a quality manufacturer of bright engineering steel bar and wire, has been recognised for its export success at the recent EEF Future Manufacturing Awards 2013.

The awards are designed to celebrate manufacturing businesses that have shown excellence in their innovation. The Engineering Employers' Federation (EEF) is a UK trade organisation dedicated to the future of manufacturing.

Established in 1922, the family company originally produced items used within the UK mining industry and also supplied specialised products into the defence and aircraft industries. It has developed its unique range of production equipment to ensure that the manufacturing facility at Dog Kennel Hill in Kiveton Park is suited to supply chain requirements for critical parts within the global automotive markets, principally supplying Tier 1 and Tier 2 companies.

Queen's Awards winning Kiveton Park Steel was named as the North East, Yorkshire & Humberside regional winner in the Export Development Award category and will go on to compete at the national finals of the EEF Future Manufacturing Awards 2013.

The major subsidiary of Kiveton Park Holdings, which has interests in steel processing, international distribution and trading, has seen export activities increase rapidly over recent years with current levels representing over 60% of total sales, initially to European markets but now extending into many deep sea destinations including Latin and South America, India and the Far East.

The company is closely associated with the global automotive sector supplying quality products in supply chains leading to diesel injection, steering, engine and suspension parts and providing a full service package for a wide range of material specifications.

Yaser Rauf of Rotherham contract manufacturing specialist, MTL Group, was named as the regional runner up for the Outstanding Achievement by a Final Year Apprentice Award.

Kiveton Park Steel website
MTL Group website

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News: Surveys pick out positives for region's manufacturing sector

Two influential reports on the state of Yorkshire's manufacturing sector show that firms are experiencing a surge in activity with 70% predicting future increases in sales turnover.

According to the quarterly EEF/BDO Manufacturing Outlook survey, a balance of 31% of companies in Yorkshire reported increased output, up from 18% in the last quarter and the highest for more than a year. Orders balances also increased to the highest level of 2013 to 23% (from 13% in the last quarter and -3% in Q1), significantly higher than the 16% previously forecast.

The latest Manufacturing Advisory Service (MAS) Barometer, revealed that 79% of firms surveyed in Yorkshire have gained new sales as a result of introducing new products or services in the past two years and 62% of SME manufacturers reported an increase in sales in the first half of the year.

MAS, which is funded by the Department for Business, Innovation and Skills (BIS), works for manufacturers and through experienced advisors can help shape strategy, create new products, reduce waste and review supply chains.

Both surveys indicated that many manufacturers see positive signs of continued success in the future with the EEF research showing that Yorkshire firms are forecasting output (40% of firms surveyed) and orders (42%) will increase further in the run up to Christmas. The MAS Barometer recorded 70% of SME manufacturers predicting further growth over the next six months – a record high.

The positive signs mean that nearly half (48%) of companies questioned by MAS expect to spend more on new machinery and premises over the next six months, a 7% rise on the same period last year.

David Caddle, area director at MAS, said: "Manufacturers tend to be very cautious and traditionally would need significant confidence in the long-term future to relax the purse strings.

"Encouragingly, the latest Barometer provides the clearest indication yet that companies are prepared to invest in new machinery and their premises in a bid to remain competitive and take advantage of significant opportunities both at home and abroad."

According to the EEF, the only membership organisation dedicated entirely to the manufacturing industry, the improved outlook is also translating into better job prospects, with a balance of 12% of manufacturers in Yorkshire and Humber increasing headcount in the last three months compared to just 4% in the previous quarter. Looking forward, a balance of 16% expect to continue recruiting in the final quarter of the year whilst the MAS survey highlights that 41% of SMEs are planning to hire new people with a further 48% expecting to keep workforce levels the same.

Jason Whitworth, corporate finance partner at accountancy network, BDO in Yorkshire, said: "With a domestic market at its strongest for almost three years, backed by export sales at a two year high, manufacturers across all sectors and throughout the supply chain are feeling the benefits of an impressive return to confidence."

Andy Tuscher, Yorkshire and Humber region director at EEF, added: "While the signs of recovery that have emerged so far this year are positive, the need for better balanced growth from net trade and investment remains a necessity. As companies become more confident about their growth prospects, we need to see this translate into commitments to invest in new capacity, and for this to take place in the region.

"Government cannot afford to rest on its laurels at the first signs of positive economic news. We need on-going action to ensure the UK is a competitive location for manufacturers to invest and grow."

Manufacturing remains the most important sector to the Rotherham economy. It is responsible for 20.0% of GVA (the value of goods and services produced in an area), compared to 14.3% nationally.

The picture shows saw blades manufactured under the Bahco brand by SNA Europe in Bramley, Rotherham.

The Markit/CIPS UK Manufacturing PMI figures released today also gave a positive overview of the national manufacturing sector, showing that output and new orders rose at the fastest rates since 1994.

MAS website
EEF website

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News: Manufacturers meet at DavyMarkham

Sheffield heavy engineering specialist, DavyMarkham, showcased its inspirational business turnaround story at an industry networking event.

The company hosted a Member Connect event in partnership with the Engineering Employers Federation (EEF) for manufacturing managers, operations directors, apprentice programme leaders and businesses interested in lean manufacturing and operational excellence.

The programme consisted of presentations by Andy Tuscher, region director – north at EEF, John Watson, director of production at DavyMarkham and Peter Winebloom, director of apprentices and skills at EEF.

The event included a tour of DavyMarkham's shop floor at Darnall for delegates from businesses including MTL, Newburgh Engineering, and Darron SBO.

John Watson, who has worked for the company for 22 years, said: "The Member Connect event was a great opportunity for DavyMarkham to strengthen our reputation as leading industry experts and to share best practice and expertise with our peers.

"I spoke about the challenges the company has faced in the last four years, such as an ageing workforce and the need to invest in apprentices. Four years ago the working practices of the company were entrenched in the 70s but communication and engagement with the whole workforce has been central to successfully turning things around.

"The event was a huge success and I received lots of positive feedback about what we have achieved at DavyMarkham."

John also spoke about how the company introduced the Japanese housekeeping 5s programme, which has been implemented throughout DavyMarkham's production departments and workshop, providing higher levels of efficiency and creating greater capacity to take on key projects.

Andy Tuscher, regional director at the EEF, said: "What DavyMarkham has done to reinvent the company over a short period of time is fantastic. The company has strong leadership, but the changes have involved staff from all areas. I also think it’s commendable that DavyMarkham is investing in apprenticeship schemes.

"John spoke with passion at the presentation and a lot of best practice was identified and shared amongst EEF members."

EEF is the only membership organisation dedicated entirely to the manufacturing industry. They work to ensure that government policies are are in the best interests of manufacturing and offer members a unique insight into emerging trends and the innovative new directions being taken by forward thinking-organisations.

DavyMarkham website
EEF website

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News: Support for Yorkshire manufacturers

The EEF, the manufacturers’ organisation, has published a guide to outline the support available for manufacturing companies in Yorkshire and the Humber. The EEF operates to help manufacturers continue to evolve, innovate and compete through the recession and beyond and operates a number of business services for the sector. The EEF also works with the government on manufacturing policy. The guide covers a number of schemes and initiatives to help with finance, skills, redundancy support and innovation. The guide accompanies the EEF's recently launched "Reality Check" website and blog that offers valuable insights into manufacturing and the economy.
EEF Reality Check website
EEF Yorkshire Guide

Rotherham

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News: Regional forum continues call to support manufacturing

Despite the current economic downturn and predictions of recession, manufacturing in South Yorkshire remains strong, a new business grouping has declared. Order books remain buoyant and there are good long-term prospects in markets like aerospace, oil and gas, medical, and power generation. The new South Yorkshire Manufacturing Forum has been formed to speak up on behalf of local manufacturers to demand practical and sustained support from the Government. It comprises all the Chambers of Commerce in South Yorkshire, the Cutlers' Company and the EEF members, and is calling for the Government to protect the fundamental things that will help manufacturing remain competitive for the next five, 10, or 20 years. Manufacturing Forum member Richard Wright said: "The outlook for manufacturing is good. As well as all the innovative work going on in our region, there are plenty of new opportunities on the horizon. "The Government needs to ensure that manufacturers' tax and regulation burdens do not increase any more - and reduce them where possible. The Government should also be championing flexible labour laws, credit availability, and research and development support. All this will allow manufacturers to invest in new equipment, new products and new skills." Forum chairman and Master Cutler Martin Howell said: "Cash flow is key at this point. This is not a time for banks to be reducing credit availability and one thing we can all do is pay our suppliers on time - small companies will struggle to survive if their customers take longer to pay. This is one area where public organisations in particular could have a really positive impact on SMEs in our region - by paying their suppliers promptly, they will be helping to ensure the future of our local manufacturers."

EEF website

Chamber article

Rotherham

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