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ED I T O R’S WORD I ntro duc t ion
EDITOR’S WORD eaders are welcomed to this new edition of East Anglia in Business, in which we share the work of businesses in our region. As these pages attest, there is a lot going on. Issues in our policy agenda have also occupied much of our time, notably our contribution to the debate over business rates. We have pursued our priority of improving connectivity of goods and people, making East Anglia an easy place to run an internationally-oriented business. We continue to monitor closely the health of our economy. Encouragingly, our latest Quarterly Economic Indicators survey, shows respondents to be bearing up well in these uncertain economic times. We also continue to make our voice heard in matters relating to those twin generators of macroeconomic uncertainty for potential investors: The UK’s (actual) decision to leave the European Union
and our (potential) future decision to leave the UK. After what seems like an endless succession of political contests, Chamber representatives from across the network were encouraged that the politicians present undertook to use this respite from elections and referenda to (literally) get down to business. They invited us to make our feelings known as clearly and forcefully as we liked, and we intend to take up that invitation. Issues spring to mind where local Chambers will test the strength of that commitment to engage. The first is business rates, where our Business Rates Advisory Group led our response to the Barclay Review of Non-Domestic Rates in August. Although we identified a flaw in the process – namely that it was pre-determined to be “revenue neutral” and therefore too limited in scope – we were encouraged by its recommendation of a more responsive rates regime. The widespread economic benefits of reducing ADT have been set out on many occasions in many forums, and the Government’s willingness to see its policy through will be an early test of its willingness to use newly devolved powers to benefit the economy. Watch this space!
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C ON T E N T S
wh at s in si d e. . . - Pilot issue -
Editor’s Word An exclusive introduction to the magazine from our in-house Editor to help walk you through the issue’s features.
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Information Technology The most successful businesses are the ones that harness the latest in technology to become more efficient and provide the
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best service to their customers.
Transport It is a simple truth that many businesses would not be able to
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operate without logistics companies.
Bridging the Generation Gap The spread of ages across the workforce – now often covering up to four generations as older workers retire later – has been cited
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by many companies as an increasing source of workplace tension according to new research.
Brenntag goes from strength to strength Growth of Brenntag UK & Ireland reflects the underlying optimism as reported before. Following the series of interviews last year we
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speak to Russel Argo, President Brenntag UK & Ireland, on the 2018 outlook.
Getting private investment for your green business As an entrepreneur, you’re one of a kind. You’ve got the ideas, the vision and the drive. But one thing can stand in the way of you and the big time: securing the right investment for your business.
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C O NT E NTS
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FEAT UR E Tra ns p or t
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FEAT NEURE WS company Tra n s p or t
TAKING THE WORRY OUT OF RUNNING A
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rying to run a manufacturing firm is a massive undertaking. Managers have to worry about designing and making the products, testing them before they leave the plant and ensuring that the packaging is right. This is particularly true as more and more companies trade abroad, seeking out new and emerging markets to compensate for the declines in their traditional ones. That means shipping products, something which some companies may not have experienced on an international scale before, particularly at a time when Europe may look less attractive due to trading conditions but the likes of China, Brazil and Mexico might offer previously non-existent opportunities. The smart companies explore the opportunities and realise that transport is best left to someone else. Because dealing with the logistics of business is very time consuming and takes effort and expertise, logistics companies are seen as an ideal solution. To ease the worry, many businesses outsource the delivery of their products to specialists, allowing them to focus on running and growing their businesses. That makes good business sense as these specialists understand the world of ferries and airports, Eurotunnel and foreign motorways. As a result, the number of logistics firms have grown dramatically over recent years. So what are you looking for in a logistics company? Well, a company with all of the below is well worth hiring, A good way with customers - logistics can be fraught, and delays
caused by everything from road accidents to bad weather can cause all sorts of anxiety for clients. However a good logistics company makes sure its staff handle everything calmly and courteously to put the customer’s mind at rest. And that they are adept at finding solutions when things are going wrong!
Accountability Freight is not an exact science, so many things can come into play once a load is on its way, and a good logistics company will make sure that they keep the client informed of progress.
Technology A good logistics company will make use of the best in new technology, including online tracking systems which allow them to know exactly where a product is at any given time.
Available Successful logistics companies make sure that, even if their teams are out on the road, the client can get hold of someone to find out the latest about their product’s progress. In addition to the firms that carry the large loads, there are also specialist delivery firms handling the likes of important letters and parcels. That has become a growth area as the postal service sees itself opened up to fierce competition. And with Internet shopping growing rapidly in popularity, the presence of efficient companies that can span the world will become ever more important.
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A DVE R T I SI N G F EAT U RE B ur ne s s Pau l
BRIDGING THE GENERATION GAP The spread of ages across the workforce – now often covering up to four generations as older workers retire later – has been cited by many companies as an increasing source of workplace tension according to new research.
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he recent ‘Future Chemistry’ report on workplace issues, compiled by Burness Paull in conjunction with clients across the UK, found that companies with longer-serving employees were “rolling their eyes” at the rights being given to staff such as the opportunity to take shared parental leave. Younger workers expected a better work-life balance and faster career progression, so some organisations were offering them management training at a much earlier stage in order to keep them engaged and to prepare them for future roles within an organisation. Other organisations that had questioned their younger staff found they just wanted higher pay and not other benefits, such as healthcare or pension contributions. It was noted that part of the explanation for so-called ‘millennials’ being less interested in additional benefits – such as shared paternity leave or pension entitlement – was the fact that they were reaching important milestones later in life than previous generations, such as leaving home or starting a family. This was attributed to the higher cost of living, especially in cities such as London.
LEGAL AND TRUST 0191 500 600 info@nea.ac.uk
While at present millennials were understood to be interested in the social contribution being made by their companies, including charity work, some participants identified this as being linked to them making major decisions later in life. Millennials were then expected to revert to more traditional behaviours as their lives changed. Yet discussion about millennials revealed that the blanket term was being used to cover at least two distinct groups: one that wanted to know what a company could do for them and who would move on within, say, nine months if they weren’t satisfied; but also a second – younger – group that had returned to a more traditional outlook of demonstrating what they could offer to a company in order to be recruited or retained. For both groups, making information available online to job applicants was judged to be essential, especially with millennials seeking wider information about a company’s ethics and environmental policies before
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applying for roles. Posting such information was also seen as important for increasing the diversity of the workforce within a company. So how can businesses bridge the generation gap? Many companies said they were bringing younger and older staff together to pass on skills and knowledge. An interesting example to break down the barriers between generations was the use of “upward mentoring”, with younger people mentoring older people on how to use technology and, in the process, getting to better know and understand each other. “To foster an environment where all generations feel engaged, more opportunities must be created for interactions amongst colleagues who may have complementary or indeed conflicting views and experiences,” explains Jennifer Skeoch, employment partner at Burness Paull LLP. “Employers must balance the need to ensure all workers feel respected with the clear need to create an honest forum in which questions can be asked and challenges to stereotypical views can be made, without fear of repercussions. “Within that process, employers could seek to ensure that the “banter” - which many employees view as being a crucially important aspect of their working life – can be retained, without alienating other colleagues. Employers who have a clinical and sanitised culture will no doubt find that engagement levels decrease, so a balance must be struck, and an open and honest atmosphere will go far in achieving that.” She added, “Employers trying to second-guess what the so-called millennials want now, or may want in the future, should be mindful that a fluid approach will be required: it may be that flexible working and few benefits are attractive for those of the younger generation, but as they progress and reach more traditional milestones the traditional concepts of job security and family friendly benefits will likely become important again.”
FEAT URE Inter n at ion a l Trade
REMOVING THE FEAR FROM INTERNATIONAL TRADE International trade has never been more important to the UK economy as companies seek out new markets to address the problems caused by those sectors that declined in recent difficult economic times.
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he Government has already made clear its intention for the country to become a more export-orientated economy, bringing in investments and driving long term sustainable economic growth. Just about everyone agrees that Britain’s future prosperity will be built on its success in international markets but that does not mean that it is actually happening. Far from it; indeed, Government figures suggest that only 20 per cent of UK SMEs trade abroad, compared to the European average of 25 per cent. For those prepared to learn new ways of working, international trade offers great opportunities. Growth in traditional markets such as Europe and the US may have been slow over recent times but the likes of India, China and the Far East are expanding rapidly, and also coming up rapidly are emerging markets in south America. Those new markets are ever-more-important because, according to the Government, the ongoing troubles in the Eurozone show how important it is for companies not to rely on traditional export markets or a single market but to look further abroad. Nearly 45 per cent of UK exports go to the Eurozone but there‘s a big world out there, argue ministers. So why do not more companies trade internationally? One reason is that most companies have a lack of knowledge about how to export and many find the necessary research time-consuming, especially when staff numbers may have been reduced. The resultant lack of knowledge can put people off. They assume that it will be too complicated either to export or attract foreign partners to develop UK projects with them. However, according to the Government, businesses that begin to export gain 34 per cent uplift in productivity and are 11.4 per cent more likely to stay in business. And there are plenty of things that companies can do to ease their path to international success, including: * Understand the culture of the country with which you are trading. Some countries like the direct approach in meetings, others value the slow burn in developing relationships. Learning which one works is crucial * Take time to learn the language, or maybe
employ someone with the right linguistic skills. It is amazing how many foreign countries will welcome someone speaking their language * Send key members of staff abroad to scout out the market conditions. That understanding can help them spot and exploit opportunities * Understand exchange rates so that you can
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IN T H E LI M E LI G H T B re nnt a g
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IN T H E L IMELI GHT B re n nt a g
BRENNTAG GOES FROM STRENGTH TO STRENGTH Growth of Brenntag UK & Ireland reflects the underlying optimism as reported before. Following the series of interviews last year we speak to Russel Argo, President Brenntag UK & Ireland, on the 2018 outlook.
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IN T H E LI M E LI G H T B re nnt a g
W
hen we spoke last spring you indicated the market recently? I recall having a discussion on that 2017 was to be a year of promise for the topic of innovations in the chemical industry Brenntag UK & Ireland. How would you over a decade ago with the CBA members, and I define the year for your company? 2017 has been an continue to be fascinated both by the subject of exciting year for Brenntag. We’ve had very successful innovation and also by the remarkable ability of twelve months with strong growth in our key areas, our industry to innovate for sustainable growth. To delivering on all our answer your question, promises in terms of innovation for added investment in people, value can take a number infrastructure and of forms. The Brenntag Solvents business acquisitions that we For instance, it may set out to achieve in has recently taken delivery of an involve providing the beginning of last additional 50 stainless steel IBCs extensive technical year. to further support growth, whilst and regulatory support The year has not been through an experienced several sites including, Lutterworth without challenges and focused team, and Newcastle have seen as there remains a developing bespoke significant investment in new liquid degree of uncertainty projects with and for filling systems. in the industry about our customers in the the ongoing Brexit laboratory or operational negotiations and the settings, enhancing impact these may customer service and bring. However the agility of Brenntag reach and customer experience, sharing a best practice in strength of our relationships with suppliers allow operational and product safety arena and many us to quickly react to current changes and assist others. our customers to seize opportunities and foster For instance, last October we hosted the first ever innovation and efficiency. Brenntag UK Safety Day in Crewe. We hoped that What do you consider an innovation? What this event, aimed at representatives of businesses innovations has Brenntag UK & Ireland brought to across the chemical industry including suppliers,
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customers, industry associations and advisory bodies, would further facilitate the conversation of safety, quality, service and innovation, as together we strive to make the chemical industry a safe and enjoyable workplace for all. We were overwhelmed by the terrific response from the industry, whose engagement with regards to raising awareness and capacity building in the safety arena has been remarkable. Could digitisation be a source of innovation for a chemical distributor? Absolutely. We are continuing to invest in digital technology to enhance our service offering and are currently rolling out the Brenntag Mobile Delivery Management Platform across our sites for “track and trace” benefits as well as considerable safety improvement opportunities deliverable through this innovative system. I give you an example: each year we make around 100k connections to bulk or semi bulk installations and transfer hazardous liquids into stock tanks from our road tankers or pressure bin systems. Due to our rigorous enforcement of the “Safety First” principles across Brenntag Group, the potential for something to go wrong is minimised; however having real-time tracking and transparency built into the Platform means that we can reduce that risk still further. We previously spoke about Brenntag UK & Ireland strategy – could you give us an update?
Brenntag Colours laboratory in Halifax for coatings and construction, paper and industrial cleaning formulating projects and trials.
We continue to work towards the global Brenntag Group’s vision, which is to be the preferred distributor for specialty and industrial chemicals. Our strategy remains two-fold: organic growth and strategic acquisitions. We are making strides in each of the many environmental, life and material science applications Brenntag operates in, whether through investment in people and skills of our teams, or significant strategic projects to further build on the efficiency of our infrastructure and geographical reach.
Bolstered by some well qualified additional new recruits who recently joined our regulatory team, we are launching the Brenntag Technical Services Hotline to provide our customers with an access to industry expertise. The Hotline is set up to deal with an increasing number and complexity of technical and regulatory queries coming in; speed and quality of response is vital, and we will be providing a twenty-four hour turnaround on customer queries.
The Brenntag Solvents business has recently taken delivery of an additional 50 stainless steel IBCs to further support growth, whilst several sites including Manchester, Lutterworth, Bradford and Newcastle have seen significant investment in new liquid filling systems. Our Sodium Hypochlorite production facility at Thetford received an investment of circa £900k in various safety and infrastructure projects, with further investments planned for 2018. Work has started on the new multi-million pound distribution facility in the North East, due for completion by the end of 2018, which will be home for our Newcastle team. The multi-million pound industrial blending facility in Lutterworth (the latest addition to the UK & Ireland network of Brenntag Blending Services sites) came online in August last year, and the new Food Application Kitchen in Widnes is used extensively for recipes formulating projects, customer days and trials. Our expertise has been greatly strengthened by new high profile appointees to technical and commercial teams, bringing further experience and strategy for growth to our focus areas. We are looking for opportunities to create additional added value in all focus market sectors whether by investing in new facilities or creating synergies available through our existing infrastructure, such as utilising our bespoke
Last year you promised to make a step change in terms of acquisitions. Has 2017 delivered? We have further consolidated our position as a market leader in chemical distribution with two recent acquisitions completed in December 2017. Firstly, we have acquired the Water Solutions Business of CCP Gransden Ltd and CCP Gransden (Ireland) Ltd, which makes Brenntag the exclusive distribution partner for the BASF range of Zetag® and Magnafloc® polyelectrolytes throughout the UK and Ireland, giving our customers access to the full range of BASF polyelectrolyte flocculants across the entire territory. This is a great complementary fit to our significant Water Treatment business in UK & Ireland, and I am delighted to welcome experienced technical and commercial members of the former CCP team who now effectively moved to the Brenntag Group.
BRENNTAG 0191 5678 5775 info@example.co.uk
In addition to the expansion of our water treatment business, we also forged ahead in the food ingredients market by acquiring Kluman & Balter Limited and A1 Cake Mixes Limited. Food has been an incredible growth story for us over the last two years, and it was only right to support our team further with this massive strategic investment.
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FEAT UR E F in a nce
GETTING PRIVATE INVESTMENT FOR YOUR GREEN BUSINESS As an entrepreneur, you’re one of a kind. You’ve got the ideas, the vision and the drive. But one thing can stand in the way of you and the big time: securing the right investment for your business.
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nvestment can play such a crucial role in the growth of a business, but approaching private investors is unchartered territory for lots of entrepreneurs. Some venture capitalists will get 100s of pitches sent to them each year, and it’s estimated that just 1 in 100 applications will get funded. And with the environment so high up the agenda these days, there are lots of businesses in the same space competing for the attention of investors. In a crowded market place, how do you ensure that your proposal stands out from the crowd? Mark Riminton, Clean Growth UK Investment Platform Manager at the University of Brighton’s Green Growth Platform, identifies 3 broad areas that an investor is looking at – marketability, scalability and capability. Marketability
GREEN GROWTH 0795 456 7349 info@greengrowth.co.uk
Is your idea marketable, and do you have the vision, business model, shareholder backing and a plan for increasing the value of the business?
Approaching investors Don’t forget, investors are people too. Each one of them is different, but there are some common rules to follow that will maximise your chances of success. Get the right fit Each investor will have different interests, so you should make sure that your proposal fits with their portfolio. There’s no point in a clean technology startup approaching an investor who’s only ever invested in established businesses in a completely different sector.
Viewing a business through a prism like this enables all parties to increase common understanding of business issues and accelerate the whole process to a successful conclusion.
Take the time to research and go for ones with a portfolio that aligns with what you’re doing. Factors to look at when reviewing previous investments include location, industry, amount invested and business stage.
Have more than just a good idea
Do you have the necessary resources in place to achieve your vision, including people and capital? If you don’t have the right mix of skills, how do you plan to get them? And do you have an innovation strategy to grow the business?
It’s more than likely that someone else will have come up with a similar idea to yours. But that shouldn’t put you off, because a good idea alone won’t get investment. Good ideas need to be backed up by evidence that they will work, and that they solve a problem that a sufficiently large number of people (your market) want solved.
Scaleability
Before approaching investors, get data that shows your idea makes sense.
Capability
Can your business idea be scaled? How does your plan fit with your target market and what does the competition landscape look like? How will you get your product or service to market and how will you get and retain customers? Mark says, “Viewing a business through a prism
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like this enables all parties to increase common understanding of business issues and accelerate the whole process to a successful conclusion.”
Get social proof We’re social creatures, and behavioural science shows us that we value social proof highly. Investors will be much more interested in a proposition that’s backed by other people.
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FEAT UR E
C y b er S e c ur i t y
WHY IT’S TIME BUSINESSES TOOK STOCK OF CYBER SECURITY
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FEAT URE Cy b e r S e c u r i t y
At a time of political volatility when a threat to our critical infrastructure seems more likely than ever, we speak to Barry Searle about why industries should change its approach to cyber security to safeguard their operations. “Businesses need to be taking an informed riskbased approach to their cyber security, not a purely financial or regulatory approach,” explains Barry Searle. “They should be assessing the pros and cons of risk, rather than just looking at greater efficiency.
“More and more these days, cyber attacks are being used as a political tool. Already, the National Cyber Security Centre (NCSC) has warned that a sustained cyber attack on our critical national infrastructure is likely this year.”
“The industry needs to accept that an attack on their critical infrastructure could happen here, as it has in other countries, and take robust steps to mitigate such an attack - especially given so many of their operational systems are now automated and cyberdependent.
Barry is well-placed to comment on matters of security, cyber and otherwise, as his background is in military intelligence. As Director of Training at specialist training provider Intqual-pro, Barry designs and delivers OFQUAL regulated qualifications in intelligence analysis, cyber security and safeguarding, amongst other topics, that are now delivered in over 30 countries.
“In the corporate industry, like almost every other industry, a lot has become automated in recent years, not just customer communications and records, but their operations too. “What the industry needs to grasp is that the cyber threat isn’t merely about data theft – serious though this threat is and huge though the financial implications could prove – especially with the advent of GDPR. “More crucially, the cyber threat has huge ramifications for a water company’s operations. In a number of countries around the world, critical national infrastructure, including water, has been specifically targeted by cyber threat groups and these instances show that it is their critical operations rather than their data that can be targeted.
Intqual-pro was formed in 2014 to provide highquality training and regulated qualifications to intelligence analysts employed in a variety of roles, with trainers that consisted of former military and law enforcement intelligence specialists. Over the last few years their remit has broadened and Intqual-pro are now the UK’s largest provider of OFQUAL regulated vocational intelligence qualifications, with public and private sector clients, including banks and companies running the essential infrastructure. Every day, somewhere in the world, someone will be receiving their cyber stars training.
We deliver training and we also assess people, so organisations know that the people they have in key roles are competent and up to the challenges of the job.
“In one such attack, the chemical controls within a treatment works were compromised and the consequences of such an attack just don’t bear thinking about, but thinking about it is exactly what the industry needs to do.
“Companies need to be asking themselves how they would deliver their critical services in the event of a major cyber disruption. How could they control their operations; and how long would it take them to get their critical services up and running again in the event of a serious and sustained attack?
As Barry explains, “We deliver training and we also assess people, so organisations know that the people they have in key roles are competent and up to the challenges of the job.”
“The crux of the matter is that we simply can’t exist without a safe supply of water. Almost every other part of our critical infrastructure relies on water in one way or another, and when it comes to cyber security, our data centres depend on water to regulate the temperature of their hard drives. “The impact of disruption to a water company’s critical operations is far-reaching, water companies are too complacent and they need to re-think their approach to risk and security.
“Many water companies have automated their operations without putting in place sufficient contingency plans for business continuity in the light of an attack on their automated and cyberbased systems.
“The water industry has benefitted for too long from the fact that their customers had no choice as to whom supplied their water, but the market is opening up and already businesses, charities and public sector bodies can choose their provider.
“The volatile political situation makes putting these contingencies in place all the more important. Cyber crime has no borders, what has happened to Critical National Infrastructure in the Czech Republic, Ukraine and Saudi Arabia could easily happen here.
“Investing in cyber security and related awareness training makes financial, business and reputational sense. Customers are now much more aware and wary of where their data is held and a lack of trust is the main reason customers have for walking away.
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R i s k Ma n a ge me nt
EFFECTIVELY MANAGING YOUR RISKS TO BEST PROTECT YOUR BUSINESS
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isk in business is a given. Having insurance against those risks offers some protection, but it’s how well you understand the risks you face and how to mitigate them that makes the real difference. Nicholas Kerry, risk consultant at UK insurance broker Gallagher, explains how a risk management strategy can help to manage those issues and takes a closer look at a key risk area for all businesses: health and safety. It is a fact that organisations face a multiplicity of risks, and the more risks you can identify and offset, the better protected your business will be to cope with the unexpected. Increasingly, it is legislative requirement or regulatory compliance that is driving firms to identify, plan for and mitigate the risks they face. On paper it’s a chore; in reality it can be a serious challenge, especially if you lack the resources or technical knowledge you need to optimise your risk exposure. Risk management and planning can cover a varied business areas, including:
RISK MANAGEMENT 0795 456 7349 info@greengrowth.co.uk
A key exercise for organisations to undertake when
Viewing a business through a prism like this enables all parties to increase common understanding of business issues and accelerate the whole process to a successful conclusion.
Health and Safety Business Continuity Fire safety Crisis Management Fleet Management Security General maintenance Health & Safety risk management One of the key risk areas affecting all businesses and organisations is health and safety. Managing health & safety at work has been a legal requirement since 1974. Done right, good health and safety risk management will support your business, not stifle it. Creating a robust strategy to mitigate these risks can help to reduce the likelihood of health and safety claims and improve your defensibility. It’s important that you understand
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your legal obligations as they relate to your industry and business, and develop solutions which are fit for purpose. Whilst the easier option may be to utilise generic systems and templates, it’s important that a risk management strategy is tailored to your business.
creating their health and safety risk management strategy is to first undertake a risk assessment. To do this you need to think about what might cause harm to people and decide whether you are taking reasonable steps to prevent that harm. Businesses should: Identify the risks – ask what can harm people in your workplace Who is at risk – identify who is at risk and how Adding controls – looking closer into each risk, decide what appropriate controls are in place, what the gaps are, and what you need to do to bring those controls in line to offer the desired protection Record you risk assessment
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