BQ North East Yearbook 2014 by We Are UMi

YEARBOOK 2014

NORTH EAST

The life and soul of business.

NORTH EAST

Tees Valley Unlimited is helping Tees Valley grow by attracting new investment, building better transport links, training our workforce and creating more jobs.

Darchem Engineering in Tees Valley produces high precision products for the aerospace, nuclear, defence, oil and gas and automotive industries across the world.

Tees Valley â&#x20AC;&#x201C; providing real business opportunitees Find out more at www.teesvalleyunlimited.gov.uk or call 01642 524 400. @TVU_LEP

@Tees-Valley-Unlimited

@tees-valley-unlimited

bq-magazine.co.uk NORTH EAST EDITION

WELCOME Picking up fast We look to 2014 with enthusiasm. It’ll be a few years yet until the nation’s economy is normal again and, sadly, quite a few incomes will have been depleted by then. But in the North East, things are picking up fast. A healthy spirit of enterprise, and a newly imbued recognition of the values of innovation, are both gathering pace. Also, as many firms still struggle to access money to grow, the situation has improved. Underpinning these advances is the work going on to improve the region’s skills, and to better equip young people to be career conscious. Areas of the North East economy, such as infrastructure and tourism, still need urgent attention. On infrastructure, it’s not just woeful under-investment that deters private sector input, but mistaken priorities. The case for HS2 is not proven, whereas the case for a dualled A1 all the way to Scotland is. The recent instance of the one millionth passenger to fly from Newcastle Airport to Dubai since Emirates airline introduced a daily service in 2007, and the prospect soon of that link to many more parts of the world becoming twice daily, indicates just how much the North East will gain if and when a daily direct link to the USA is secured. At the other side of the air transport picture, though, is the sad spectacle of the company running the region’s second airport struggling to reestablish a viable business plan. The North East fought hard to get Teesside an airport, and some attitudes of

indifference now, outside its immediate catchment area, are indefensible. While business is regathering momentum, unemployment remains unacceptedly high, prompting belief that a regional development agency or somesuch needs to be re-introduced. The way the North East is being short changed, in central support of its culture for example (which otherwise improves the region’s appeal to inward investment) is another indication of what has yet to be confronted. Divide and rule served colonial purposes but does not serve those of the English regions. Whatever the outcome of the Scottish vote on independence – and the issue is more critical to North East England than to regions southwards – a better way to run the regions is needed than exists now. Unfortunately there’s a common attitude within our region that what we have now is what we’re stuck with and there’s no going back – a sort of “yes, minister” but in obeisance rather than the obstinacy of Sir Humphrey. Scotland’s First Minister Alex Salmond realised a long time ago, that “shy bairns get nowt” and it’s acceptable to be abrasive (not rude) to any government that has issues of myopia. People of the North East need to consider this. It’s only what the Mayor of London practices. Brian Nicholls, Editor

advertising Heather Spacey [e] heather@room501.co.uk Richard Binney [e] richard@room501.co.uk or call 0191 426 6300 Editorial Brian Nicholls [e] b.g.nicholls@btinternet.com Design & production room501 [e] studio@room501.co.uk Photography KG Photography [e] info@kgphotography.co.uk Chris Auld [e] chris@chrisauldphotography.com

The life and soul of business. room501 Publishing Ltd, Spectrum 6, Spectrum Business Park, Seaham, SR7 7TT www.room501.co.uk room501 was formed from a partnership of directors who, combined, have many years of experience in contract publishing, print, marketing, sales and advertising and distribution. We are a passionate, dedicated company that strives to help you to meet your overall business needs and requirements. All contents copyright © 2013 room501 Ltd. All rights reserved. While every effort is made to ensure accuracy, no responsibility can be accepted for inaccuracies, howsoever caused. No liability can be accepted for illustrations, photographs, artwork or advertising materials while in transmission or with the publisher or their agents. All information is correct at time of going to print, December 2013. room501 publishing Ltd is part of BE Group, the UK’s market leading business improvement specialist. www.be-group.co.uk

BQ Yearbook is published annually by room501 ltd.

cont bq-magazine.co.uk

06 REGIONAL Economy The scene is set for an upturn in the region’s

economic fortunes after five years of stagnation

22 nEW Economy Innovation is the new buzzword in business and the North East has much to offer

36 MANUFACTURING & OFFSHORE The revival of North Sea oil and gas creates new optimism, and manufacturing hits an 18-year high

46 SMALL BUSINESS

In association with:

How SMEs play a vital role in the region’s economy, despite the difficulties they face

COMMUNICATION & TRANSPORT How the North is back on the road to growth, as questions remain about the viability of HS2

78 WHO’S WHO Invaluable information on some of the North East’s most prominent private and public sector players

102 MONEY MAtterS A new optimism is making it easier for SMEs to access funding to help grow their businesses

UNIVERSITIES In association with:

Academia is making a valuable contribution to business success across the North East

62 giving back ”Corporate kindness” is helping companies to engage more effectively with customers

tents bq-magazine.co.uk

106 SERVICE SECTOR In association with:

Why a back-to-basics approach, and identifying niche’ markets, could be the way forward

116 BUSINESS SUPPORT The importance of embracing change and communicating what the region has to offer

126 EXPORTING Selling the North East to the world – the opportunities that exist for firms of all sizes

146 CONFERENCING, HOSPITALITY & EVENTS In association with:

New projects hoping to boost tourism, and why we already have 2015 in our sights

158 EVENTS Look forward to the top business events of 2014

130 BUILT ENVIRONMENT In association with:

Why improving infrastructure will help breathe new life into the region’s built environment

140 TRAINING & RECRUITMENT Why the right skills and qualifications count more than ever in today’s highly competitive jobs market

124 05

regional economy After five years of contraction and stagnation, the stage is set in 2014 for a sustained upturn in economic fortunes. Ambitious and dynamic businesses will lead the delivery and we must encourage innovators in this.

bq-magazine.co.uk opinion

regional economy

Banking on success After five years of contraction and stagnation, the stage is set for a sustained upturn in the UK’s economic fortunes. Ambitious and dynamic businesses will play the lead role in delivering it, says Andrew Hebden When Bank of England Governor Mark Carney declared, as he unveiled November’s Inflation Report, that “you no longer need to be an optimist to see the glass as half full”, it wasn’t just a steady stream of encouraging data and survey results that gave him reason to believe the UK economy was finally on the mend. That perspective is increasingly one shared by the hundreds of business leaders that my colleagues and I in the Bank’s agency network visit every month. For it is here, in the large, small and medium-sized businesses of the North East and across the UK, that we need to see confidence continue to return if the recovery we have seen signs of, during the second half of 2013 in particular, is to be maintained. As the confidence of these firms begins to rise, so many of them will hopefully begin to invest in their people and new plant and equipment, boosting their output and demand through their supply chains. We’re not quite there yet. Amid all the encouraging signs in the recent data, at the time of writing, levels of business investment continue to disappoint. The Bank’s Agents report that many firms have dusted off their growth plans and are ready to spend but want to see further evidence of the recovery before they commit to it. That’s understandable. We’ve been through a recession that’s not just

harmed the productive capacity of our economy and damaged our financial system, but left psychological scars which will take time to heal. As for the Bank of England, we’re doing our best to help that rebuilding process. We recognise that what businesses crave above all as they prepare their plans for the future is certainty and stability. Through our control of monetary policy, and in particular our role in setting Bank Rate, we want to help provide that. Under the Monetary Policy Committee’s Forward Guidance, we’ve announced that – provided there’s no prospect of inflation getting out of control, or any threat to the stability of the financial system – the MPC won’t consider raising Bank Rate until unemployment falls to at least 7%. And, even when it does, if the members of the MPC judge the best option for

helping the UK economy to continue to recover is to leave rates at their current historic low levels, that’s what they’ll do. Although recent economic data has been encouraging, the Bank is certainly not complacent: significant challenges remain. Unemployment, particularly in parts of the North East, remains high, yet, paradoxically, many of the firms we visit tell us they can’t find the skilled staff they need in order to grow. Internationally, meanwhile, the UK’s trade performance continues to disappoint and substantial external shocks – particularly from the Eurozone – could yet knock us off course. The recovery to date has been led by consumer spending and the revival in the housebuilding sector. But, as demand recovers, that improvement needs to be more broadly spread across the economy – across a greater number of sectors and more evenly across the UK. And we need businesses to invest again. After five years of contraction and stagnation, as we move into 2014, it’s clear the stage is set for a sustained upturn in the UK’s economic fortunes. And it will be ambitious and dynamic businesses that will play the lead role in delivering it. n Andrew Hebden is Deputy Agent for the Bank of England in the North East.

bq-magazine.co.uk

regional economy

opinion

Stand up and shout We’ve long extolled virtues of the great industrialists of North East history and now we must encourage today’s great innovators, says Ian Dormer Business owners can – for the first time in a few years – look forward with real optimism to the next 12 months. The economy is growing, orders are up, and the country’s finances are beginning to look a little healthier. Headwinds remain, of course. Too many businesses find finance difficult to come by. Employment law and unnecessary regulation continue to hold back expansion efforts, and our local infrastructure is in desperate need of improvement. So while members of the Institute of Directors are more confident than at any time since 2008, it’s still abundantly clear that government has more work to do to support British business. Britain is bursting at the seams with entrepreneurs with fresh ideas and ambition. It is Westminster’s responsibility to ensure the business climate is right for them to succeed, from improving the quality of education in our schools to creating a fairer tax system that rewards rather than punishes wealth creation. It is government’s duty, too, to match its rhetoric about expanding international trade with actions, by giving the go-ahead for increased aviation capacity and by bringing down Air Passenger Duty, the highest tax on flying anywhere in the world. But, more than anything, British businesses need government to stand up and loudly declare that business is

The only way to restore the public’s faith in the private sector is to be open, transparent, and accountable – and demonstrate the good that successful businesses do for society good for Britain. Free markets and bold, brave companies have been the driving force behind centuries of human progress, and it is the private sector, not the State, that has ensured that generation after generation has had a better life than their parents. In the past our region extolled the virtues of the great industrialists such as Parsons or Stephenson. We need to

encourage today’s great innovators. I met a Tech City entrepreneur last week who recently spent some time on a business trip in Silicon Valley, and she said that while there she had never felt more proud to be in business – with a supportive media and sympathetic government that recognises jobs and prosperity are hard-won and hardearned. She arrived back in the UK to see Russell Brand tell her fellow countrymen that profit was a moral sin. The contrast is stark. The private sector is not perfect. Individual firms have made huge errors, both commercially and ethically, and they have eroded the British public’s belief in capitalism. The only way to restore the public’s faith in the private sector is to be open, transparent, and accountable – and demonstrate the good that successful businesses do for society. Over the next 12 months, as the recovery matures, I hope we’ll see a step change in the attitude of the government and the public to business – to one that celebrates, rather than denigrates. Perhaps that, more than anything, will embolden all of us to invest a little more, to consume a little more, and push the UK towards real growth once again. n Ian Dormer is chairman of the Institute of Directors and managing director of Rosh Engineering Ltd.

bq-magazine.co.uk

regional economy

overview

Plenty to go at Inward investors are knocking at the UK’s door but who from the North East is there to answer, Brian Nicholls asks More than 60 multinationals would like to complete global and regional headquarter relocations into the UK in the next 18 months or so. So say business advisors Ernst and Young who, 12 months earlier were working with 40 such companies, 20 of which have now completed while others progress their ambition. It’s tantamount to more than 5,000 extra high value jobs, potentially, for the UK. But how many can the North East or, indeed, some other regions expect? As the lion’s share of inward investment goes to London and the South East – in the absence now of a regional development agency to fight tooth and nail for a fair share of incoming investment (to the consternation of the National Audit Office) – it may reasonably be asked whether a sufficiently powerful ground force exists to make the strikes these days for our region. There is of course a regional UKTI team, and now a Newcastle and Gateshead initiative with added inward investment responsibilities (as distinct from powers) tinged at this point with ambiguity. There are two local enterprise partnerships doing what they can to settle in any newcomer. But they have been formed by the Department for Business, Innovation and Skills primarily to help determine local economic priorities and lead economic growth and job creation within the local area.

None of this suggests a resource to outflank, for example, a counterbid for investment in Scotland, which has greater access to funds. That’s challenge one. Challenge two is that businesses in the North want real action for badly needed improvements to infrastructure. But a survey among executives of more than 500 businesses in our region indicates that 65% think government policies in that respect lack tangible impact. While energy has overtaken transport since 2012 as the biggest future concern, and major anxieties also grow about security and cost, disappointment over doubts surrounding development to infrastructure remains significant, the findings of KPMG and the CBI suggest. The CBI’s John Huddleston stresses: “Quality infrastructure is vital to boost exports, to unlock business investment across the North East, and to support our leading firms – an essential element of a meaningful industrial strategy. “Ministers share our enthusiasm for progress, but the government has talked the talk on infrastructure for two years now with too few signs of action. The faltering speed of delivery on infrastructure creates a worrying sense that politicians lack political will to tackle some major issues head-on.” His comments came before Transport Minister Robert Goodwill announced a spend next year of more than £1.9bn

on England’s roads – more than double the amount invested this year. More than 209 road schemes will be started, ongoing or finishing in 2014. However, of all England’s regions, the North East gets fewest projects (12 compared with 31 in the South East) and with the smallest investment and the fewest jobs promised. It receives around £64m of investment to support 300 jobs. While the North East is the smallest region, per head of population, it has over some years now been repeatedly undercapitalised. Critics suggest an amount compensating for past unfairness – by the previous as well as the present government – should have been made. More investment in infrastructure would ease the region’s unemployment. While the national level fell to 7.6% in November, the North East remained the hardest hit part of the country with unemployment at 10.2%. Heather O’Driscoll, managing partner at Tees Valley business advisors Waltons Clark Whitehill, says: “While the Bank of England Governor Mark Carney has stated that changes to interest rates will be considered when unemployment reaches 7%, the North East might still be almost 3% higher, so this must be borne in mind by the Bank. “As with many national statistics – house prices, for example - the figures tell a different story in the North East to the overall picture painted.” n

bq-magazine.co.uk

regional economy

opinion

Unlimited in progress Results are coming through that demonstrate real progress in growing Teesside’s economy, says Stephen Catchpole We at Tees Valley Unlimited have set ambitious objectives. But we are starting to see rewards and aims and goals shared by all our partners coming together. It is an exciting time to be part of Tees Valley. Tees Valley Unlimited – the Local Enterprise Partnership for Darlington, Hartlepool, Middlesbrough, Redcar & Cleveland and Stockton on Tees – is charged with helping to grow the local economy by attracting investment, improving infrastructure, creating new jobs and giving the area a strong voice in the halls of Westminster. The last 12 months have demonstrated strong foundations, and established roots are showing significant results. There are now 11 companies on Tees Valley Enterprise Zone, all benefiting from rate relief and thriving in the renewables, advanced manufacturing and process sectors. This includes Air Products – the largest private sector investment on an enhanced capital allowances site, and Tracerco, one of the largest business rate relief projects in terms of build at 61,000sq ft. Construction on both is well underway with the projects contributing to the £440m of private sector investment that the EZ has attracted, and the 317 new local jobs created. More funding is coming to Tees Valley to support new, growing and established companies with the promotion of the Jeremie Access to Finance Scheme resulting in

some 22% of the allocation of funding in the last quarter going to Tees Valley companies. This is a 12% rise on the previous year. TVU’s relationships with the local business community enables a better understanding of investment plans with valuable support offered throughout the Regional Growth Fund application process. Across the four rounds of RGF, the total earmarked for Tees Valley is almost £164m. To date, 13 private sector projects have started which will see £300m invested in manufacturing activities across Tees Valley. TVU continues to work closely with Let’s Grow partners, the RGF programme which supports North East projects looking to secure between £50,000 and £1m grants: 15 out of the 48 projects approved in rounds 1 and 2 are Tees Valley based – equating to more than a third of funding allocated. Furthermore, Tees Valley is home to the UK’s first and only RGF-backed performance and warranty bond programme. Tees Valley Contract Catalyst, launched in June, is a £10m fund that will enable locally based companies to bid for contracts larger than they can at present, opening up new markets and opportunities. It is

anticipated the first company bond will be awarded in early 2014. So what else for 2014? TVU has high expectations for the area. It is anticipated that the Tees Valley City Deal will be finalised by end of 2013 / early 2014 and will further strengthen the working relationship with the government.There will be approval to Tees Valley’s European Funding Spending Proposals – an expected £170m for the period 2014 to 2022, alongside TVU securing government support for Local Growth Expenditure in 2015/16. Infrastructure plans are underway to unlock development on key strategic sites, and TVU will look to roll out a programme helping local businesses to create new jobs for local people. Above all, we anticipate a real improvement in the local economy in terms of private sector job growth and reduction in numbers of unemployed. We look forward to welcoming in 2014. TVU values the engagement with the local business community and continues to deliver events, consultations and update sessions throughout the year. n Stephen Catchpole is the managing director of Tees Valley Unlimited.

Above all, we anticipate a real improvement in the local economy in terms of private sector job growth and reduction in numbers of unemployed

bq-magazine.co.uk

regional economy

opinion

Ambitious targets, major hits Ten sites stamped EZ have resulted so far in 451 jobs and brought millions of pounds’ investment, giving grounds for optimism about the recovery, says Paul Woolston The North East Local Enterprise Partnership has set ambitious targets and brought major funds to the region in its first two years, including European Structural Funding 2014-2020, Regional Growth Funds and Growing Places Funding, the latter two of which allowed us to create the £55m North East Investment Fund. The North East LEP’s first two years are hallmarked by significant achievements such as the commissioning and production of the North East Independent Economic Review, led by Lord Adonis, which creates a blueprint for regional growth up to 2020. ‘More and better jobs for the North East’ is our priority and it is heartening that the LEP has already created or safeguarded thousands of jobs through the North East Enterprise Zones, support for major developments and improved access to finance for SMEs. The LEP’s Investment Panel has approved more than £38m from the North East Investment Fund for schemes such as Newcastle’s Stephenson Quarter, Teal Farm Park in Sunderland, South Shields 360 and West Chirton Business Park in North Tyneside. The fund has drawn in around £142m of additional direct economic activity and created 1,486 direct jobs. More than 400 jobs have been safeguarded and more than 2,500 indirect jobs are set to be created.

Future projects being considered include further investment in the growth of the subsea industry for new and renewable energy projects and the development of new trading links. The £7.5m extension of the Jeremie Fund for start-up and knowledge-based firms is also forecast to create 700 jobs and safeguard 400. The North East Enterprise Zone has attracted £56m of private and £59.3m of public investment, created 451 jobs and led to the development of almost 16 hectares of land to date. The Enterprise Zone covers 10 sites on land next to the A19 and Nissan at Sunderland, the North Bank of the River Tyne and the Port of Tyne, and also land next to the Port of Blyth. We were delighted to welcome Professor Roy Sandbach this year to head the LEP’s innovation growth work. The former Procter & Gamble innovation leader is developing a strategy to be published in 2014. Collaboration with the region’s universities is high on the agenda, and his work will be strengthened with the involvement of two senior secondees from Newcastle University, Professor Michael Whitaker and Katharine Paterson. The North East LEP is one of three in the UK piloting a local skills system, designed to provide key skills that regional employers need. The four-year Youth Contract programme running in Newcastle, Gateshead, North Tyneside, Northumberland and County

Durham has won £5m of public money and £4.6m from the private sector to train around 13,000 young people and create thousands of jobs. Skills development is key to business growth across the region. We are working to reduce transport congestion and improve internet usage to boost connectivity and business competitiveness. The LEP is also working with universities and stakeholders to develop the region as a centre for low carbon vehicles. We are also pleased to be involved with the pilot Rural Growth Network project – one of five in England – which is on track to create 40 new businesses, create or safeguard 300 jobs, and provide help for 200 existing businesses. The North East LEP has made some major strides forward in its work to boost the region’s economy this year. We started work during the recession, and now the economy appears to be gaining sustained momentum, we are looking forward to seeing our strategies bear fruit. There is still much to do, but I believe we have now established a firm foundation for regional growth, based on the private and public sectors and universities working together across the North East. n Paul Woolston is chairman of the North East Local Enterprise Partnership.

bq-magazine.co.uk

regional economy company profile

Global Web Sales Soar for Psyche Psyche of Middlesbrough’s global sales have soared. They are now shipping to every worldwide destination…except North Korea! From humble beginnings in Middlesbrough 1982, Psyche is now a worldwide fashion phenomenon! Shipping orders to every country in the world (with the sole exception of North Korea) Psyche’s global sales have soared in the past 6 months following major investment by the Middlesbrough based online retailer. Psyche has attracted international attention, not just in the UK, but in far flung places such as Tokyo, Singapore and New York, as well as many parts of Europe. Last year Psyche.co.uk was voted the 34th Best Website in the WORLD by The Times, listed by Vogue Magazine as one of the Top 25 Stores in the UK and now voted by GQ Magazine as one of the Best UK Shops 2014!! The website growth has supported Psyche’s global status and a strong international following has emerged with 28% of the company’s online revenue generated by export orders. Following a surge in online growth, Psyche has constructed five purpose built offices onto the top floor of The Psyche Building including a photography studio and a designated picking and packing department, taken on a PR agency and recruited 14 extra staff to meet the demands of additional orders (taking the overall number of staff at Psyche to 72 in just six months)! “Cyber Monday hit Psyche in a huge way” says Dr Steve Cochrane, Founder and MD of Psyche.co.uk. “We have recruited extra web staff but still struggled to keep up with the demand of our online sales orders. All staff

Psyche, Middlesbrough including myself, the buying team, even cleaners and all back office staff have been picking orders and shipping them off to far flung places. It really caught us off guard!” Numerous key investments, including the store’s complete redesign, have contributed to Psyche’s most successful year to date (32 years) with a sales increase of 16% on last year and a whopping 40.6% on 2011!!! “We believe the key to succeeding in times of recession is to continue investing and expand out of economic adversity by ensuring we continue to evolve and provide the ultimate retail experience at a time when all our competitors are cutting back – a high risk strategy, but one that is achieving significant returns” says Steve. “In recession many managements batten down hatches, we’ve done the opposite. We have refurbished entirely, taken on staff and more stock than ever, and have exciting new brands,

as well as upping our marketing spend and taking on a PR company, high risk strategy but one we are reaping the rewards for. In the past 12 months alone, we have invested more than £428,000 into interior transformations with 22 exclusive new in-store boutiques!!” 2014 is just as exciting with a number of big projects in the pipeline including further investment to Psyche’s ever-growing online store, extending the childrens and ladieswear offering as part of the on-going revamp of Psyche’s 35,000 sq. ft., department store and opening another site to match the success of the flagship store in Middlesbrough. n

THE UK’S PREMIER RETAIL DESTINATION

157-187 Linthorpe Rd, Middlesbrough. 01642 888 333 www.psyche.co.uk

bq-magazine.co.uk

regional economy

overview

Value of goods exported, relative to the size of local economy, greatest in the North East at 33% of GVA:

UK average 22%

Exports more goods outside the EU than inside. Manufacturing generates 15.5% of regionâ&#x20AC;&#x2122;s GVA, human health and social work

Highest unemployment in the country

11%

Over 20% of employed North East people work in public sector

One of the nationâ&#x20AC;&#x2122;s highest rises in the rate of business start-ups

North East GVA

3.2%

of UK GVA

Change in business birth rates and death rates in England North East London North West East Midlands West Midlands

Disposable household income

15% below UK average: lowest of English regions

South West South East East

Deaths

Yorkshire & The Humber

Births

-1.5 -1.0 -0.5 0.0 0.5 1.0 1.5 2.0

Source: Office for National Statistics Notes: 1. Birth and death rates are expressed as a percentage of active enterprises

bq-magazine.co.uk

regional economy

overview

Credit where due Encouraging news – insolvencies are falling. Not so encouraging, says Brian Nicholls, is the persistently high unemployment and some other statistics too Credit where credit’s due. Government policies, overall, do seem to be benefiting the North East. The latest regular study by Lloyds Bank Commercial Banking has found: • Sharpest expansion of new orders since March 2010 • Job levels rising at the secondstrongest rate in 21 months • Solid increase in output charges. Craig McNaughton, area director SME banking in the North East and Cumbria, describes Q4 as giving the North East’s private sector economy a solid start. “Backlogs of work have risen and the sustained increase in client demand suggests firms will continue to expand workforce numbers.” That would align with the national outlook the Chartered Institute of Personnel and Development expects. It sees employers, medium term, planning for steady rather than spectacular job growth, even if economic growth is sustained.” And further KPMG findings in the region, based on contact with around 100 recruitment and employment consultancies across the North, are that the latest trend, on the face of it, is great news. Mick Thompson, KPMG’s senior partner in Newcastle, says: “Higher numbers of job opportunities are emerging alongside the sharpest increase in permanent wages for almost six years.”

Bill MacLeod, incoming senior partner at PwC Newcastle, affirms: “After a couple of sluggish years the North East economy is now gathering real momentum.” Medium size businesses (MSBs) have made a vital contribution, as a CBI report concludes, towards speeding a recovery of the North East economy. Companies employing 50–499 people, and with turnovers of £10m to £100m generated almost £40bn in sales from 2012 to 2013. Despite only representing 2.2% of firms, they employ 13.4% of the workforce and create 48% of the revenue. The CBI says that with the “right support” firms like these could add £20bn more to the economy by 2020. Encouragingly, 88% of MSBs nationwide expect their business situation to improve in 2014. But while North East economic growth could pick up from around 0.8% this year to around 1.8% next on PwC’s estimates, that will compare with national growth expected of around 2.4%. Latest Treasury figures show the average spending per head for the North East – as in the rest of England – is £8,529, compared with £10,876 in Northern Ireland, £10,152 in Scotland and £9,709 in Wales. Yet public services in the North East expect their spending power to be slashed by up to 57% more than national average.

The Archbishop of Canterbury, the Most Reverend Justin Welby, will not have exaggerated when saying that travel between the North and South of England is like moving between two different countries. Lord Adonis, who chaired the recent North East Independent Economic Review, is emphatic that the government must devolve money, power and responsibility to the region. Edward Twiddy, director of NELEP, points out the private sector is still £2,000 to £3,000 at least per head below the national average in gross value added. On the other hand, the think tank IPPR points out more must be done to attract foreign money here, otherwise the North as a whole could miss out on 120,000 jobs over the next 10 years. The government’s City Deal should benefit both Tyne and Wear and Teesside, however. One definite positive is that insolvencies have been falling faster in the North East than anywhere else, Experian finds. Public investment trickles into the North East in a manner making it hard to say with certainty how much the government is committing to accelerate the region’s progress. One thing is certain, though. The apportionment so far is only a tiny fraction of what the former Tory deputy prime minister, Lord Heseltine, urged in a government report should be piled into regional economic funding. n

bq-magazine.co.uk

regional economy company profile

Keeping Porsche in the fast lane Ahead of the launch of Porsche’s latest game-changing model, Scott Stevenson – who heads up the North East’s only Porsche dealership – tells BQ why 2014 is set to be another year of growth for the brand in this region. When Porsche’s new compact crossover SUV the Macan rolls off the production line later this year it will mark another major chapter in the ongoing evolution of the brand. While the enduring 911 – that most quintessential of sports car – turned 50 in 2013, other models have emerged in recent years which have taken Porsche into pole position in other categories. The Macan, the German brand hopes, will be the latest stage in this. In the North East, Porsche buyers are served by the brand’s official dealership at Silverlink, North Tyneside. Scott Stevenson, Centre Principal of the dealership, believes with the impending launch of the Macan, as well as improving financial conditions, 2014 is shaping up to be a strong year for the business. “Since 2012 nearly every model in the range has been updated,” he says. “Add to that the launch of the Macan and it’s almost like an entirely new era of Porsche is beginning.” Scott oversees the only Porsche dealership in the North East - the nearest ones being in Leeds and Edinburgh – and so works with customers from a considerable radius. And among existing and new customers he has witnessed a mark upturn in

spending power as economic recovery gathers pace. “We’ve definitely noticed a change recently and there are a lot of people who, because of improvement in a lot of sectors, are coming back to the franchise. “But now businesses seem to be doing well and new jobs are being created so people are starting to spend their money again. “A lot of people are coming out of the woodwork who are doing well in the North East who are looking to start their journey with Porsche.”

In navigating his own business through the recession, Scott says much of the focus has been on enhancing the customer experience. “We’ve seen a dramatic change in customer satisfaction. We’ve invested resources into training and recruitment and numerous people have undertaken NVQs to improve their understanding of the business. We’ve changed the culture of the business to make every person a leader in their own right and to take responsibility for every part of the customer journey. This manifests itself in what Scott calls a “celebrity service”.

bq-magazine.co.uk

regional economy company profile

longevity of the cars’ value. “We believe every customer should be “Because Porsche numbers are limited, treated like a celebrity,” he says. “Every that creates residual values that are customer gets a courtesy car when pretty high because there’s not much they need one, they also get breakfast volume. For example, a Cayenne diesel or lunch – that’s one of the niceties of has a residual value after three years the Porsche” of around 65% of its original value.” Porsche Centre Newcastle sold in the Easing financial conditions also region of 190 cars in 2013, an increase contribute to growing demand. of around 60 on 2012 and 90 in 2011. “The finance options to get into a Looking ahead, Scott aims to further Porsche are opening out now and so the expansion of the business and more people can touch it,” he says. believes there is enough demand in Increasingly, thanks to a wider choice of the North East to potentially open models within the Porsche range, more two more dealerships in the region in women are also coming to the brand. the next two years. Other than “Currently we have around a 70/30 Porsche’s universal appeal in the high split between male and female end sports3928-9775 market,PAdvA-1L strong demand Newcastle 175x120OLHR.pdf 1 13/12/2013 16:34 customers but we expect this to for the brand is also driven by the

continue to balance out in the coming years, especially once the Macan is launched.” In dealing with such a low volume product as Porsche, Scott is keen to ensure that as many Porsches he sells remain on North East roads to help grow the brand within the region. “Our customers come from absolutely all over but I’ve made it a priority of the business that the latest products are kept in the North East. We used to get a lot of people ringing up from London and the South East wanting to take the newest models out of the region. I’ve stopped that now because we only want to serve this region and we want the cars to be seen in the North East.”n

north east in the city Gains for major stock indices look likely, though not without one or two setbacks. But, based on continued improvement in the economy, there should be improvement also in the earnings of many North East Plcs.

bq-magazine.co.uk opinion

north east in the city

Understating triumph Firms from the North East are showing they don’t need to make the six o’clock news to ensure their listing is an encouraging triumph, says Nick Williams In a sign of the more optimistic, confident and expansionary times, Twitter and Royal Mail came into the public domain during 2013, floating on the stock market with much fanfare. Both are currently trading significantly in excess of the price at which their shares were offered and, as such, their listings can be considered initial successes. But North firms have also proved you don’t need to make the TV news to ensure your listing is a triumph. We have had two home-grown stock market debuts this autumn. Both have listed on the AIM market, and both were spun out of Durham University at different times. Maker of imaging and detection technology, Kromek Group, based at Sedgefield, has performed well since its mid-October debut. Its technology is applied in airport security, medical imaging and nuclear detection. More recently, Wilton-based Applied Graphene Materials also floated on the AIM. The company sold its shares at 155p and, at the time of writing, they were trading at over 450p. Graphene is being termed a new ‘wonder-carbon’, and it is truly a phenomenal material. It is one hundred times stronger than steel, stiffer than diamond, 60% more electrically conductive than copper, impermeable, optically transparent and a natural lubricant. But there is a broader trend at work, reflected in a notable uptick in companies coming to

the market, either for the first time or to raise further funds. Indeed, the market in new listings seems to be as strong as we’ve seen for some time, although it is worth noting that any recovery has been from a low base. The AIM saw new listings fall from 462 in 2006 to 71 in 2012 as companies focussed on survival first. However, it would appear that companies are more inclined to discuss growth plans again. Newcastle-based e-Therapeutics issued further shares in February, raising £40m in so doing, enough to fund their development programme until 2017. Their issue was backed heavily by fund house Invesco, led by the departing star fund manager Neil Woodford, who has an eye for the exciting, particularly in

the biotech space. The year was actually disappointing for the company’s shares, as they fell by just over 17%, but the company is on a firm financial footing and has exciting plans for 2014. In addition to our region’s newest listings, mention must be made of a company which consolidated its debut as a public entity in the previous year. Top of the class in the shareholder returns stakes goes to Utilitywise, which posted a searing 176% rise to reflect a near-70% jump in pre-tax profit. Having dealt with some of our newer listings, let’s not forget that the area is home to several big names with a more mature stock market presence. In the ‘Billion Club’ we have Sage, Bellway and Barratt Developments. Sage, our only FTSE 100 representative, finished the period 30% firmer. The company has a credible growth plan for between now and 2015. Bellway and Barratt Developments continued to benefit from an improving domestic economic picture as well as a pick up in the housing market. Bellway shares posted gains of 40% with Barratt Developments gaining in excess of 70%. Other stocks exposed to the property sector in differing ways were natural beneficiaries of recovery, with LSL Property Services and Grainger both posting strong double-digit share price gains. The benefits of domestic

bq-magazine.co.uk

north east in the city economic recovery, as well as the opening of new branches, were also felt by vehicle hire firm Northgate, which is underlining the new found growth outlook by planning further expansion of its branch network over coming years. The company’s shares advanced by more than 70%. To put the figures into context, compare the above numbers with growth of 18.5% in the FTSE All Share Index and 29.7% in the FTSE 250. Indeed, of all North Eastern companies to have had their shares traded publicly throughout the entire 12 months, the average gain was 31.8%. While shares outperformed all other major asset classes, there were trends within that asset class too. The mid-caps generally outshone their larger counterparts. So, too, did small caps generally outdo all their larger brethren. The FTSE Small Cap index improved by 33.9%, at least in part reflecting the steadying of the UK economic ship, with small caps more reliant on their home market. That said, we mustn’t overlook the continued scaffold-like effect that ongoing monetary printing by the Federal Reserve is having on global markets. Over the Pond, $85bn a month is still being printed to buy bonds until the Fed say it isn’t, at which point it is natural to expect some form of correction in asset prices. If 2012 was the year when recovery began to take hold, 2013 was the year it became entrenched. For 2014, we can see gains for major stock indices, although not without setbacks. But, based on a continuation of economic growth, it is easy to see improvement in the earnings of many of our own Plcs. n Nick Williams is assistant director, Brewin Dolphin Investment Management.

opinion

Price Changes, 1 NOVEMber 2012 - 31 October 2013 COMPANY

Price Change

AMEC PLC

13.5%

APPLIED GRAPHENE PLC

New listing

BARRATT DEVELOPMENTS PLC

72.1%

BELLWAY PLC

46.4%

CARR’S MILLING INDUSTRIES PLC

73.3%

E-THERAPEUTICS PLC

-17.6%

FILTRONIC PLC

72.7%

GO-AHEAD GROUP PLC

35.3%

GREGGS PLC

-5.9%

GRAINGER PLC

79.5%

GLAXOSMITHKLINE PLC

25.3%

HELIUS ENERGY PLC

-61.1%

HARGREAVES SERVICES PLC

39%

IMMUNODIAGNOSTIC SYSTEMS HLD

70.7%

KROMEK

New listing

LSL PROPERTY SERVICES PLC

75.3%

NORTHERN BEAR PLC

76.1%

NORTHGATE PLC

75.0%

NORTHERN VENTURE TRUST

30.8%

OPSEC SECURITY GROUP PLC

15.9%

PETARDS GROUP PLC

-52.5%

STADIUM GROUP PLC

6.1%

SAGE GROUP PLC

30.4%

TANFIELD GROUP PLC

-33.3%

UTILITYWISE PLC

176.1%

VIANET GROUP PLC

-22%

VERTU MOTORS PLC

54.3%

ZYTRONIC PLC

-35.6%

Colour key: Blue is positive performance. Red is negative performance. Black is market capitalisation. The value of investments can fall and you may get back less than you invested. Past performance is not a guide to future performance.

The value of investments can fall and you may get back less than you invested. The opinions expressed in this article are not necessarily the views held throughout Brewin Dolphin Ltd. No director, representative or employee of Brewin Dolphin Ltd accepts liability for any direct or consequential loss arising from the use of this document or its contents.

bq-magazine.co.uk opinion

north east in the city

Waiting in the wings There is a strong line of North East firms contemplating others in the region who have recently opted for a public flotation, Mark Fahy reports London Stock Exchange has seen a resurgence of IPOs during 2013 – 82 so far in 2013, compared with 67 in 2012. More than £11bn has been raised at admission, against £6bn last year. High profile floats from issuers such as Royal Mail and Merlin Entertainments have shown London is open for business, and that has been replicated on AIM, London Stock Exchange’s growth market. We have seen a notable increase in technology and life science issues in London, with over 20 technology firms admitted to our markets at time of writing – the strongest showing since 2007. This has included two North East companies in three recent months. Kromek, a 3D imaging specialist and Applied Graphene Materials, a graphene manufacturer, are Durham University spin-offs that have chosen the public markets to fund their next phase of development. Both are trading above their IPO price, which benefits the company, its shareholders and the local economy through job and wealth creation. As well as the obvious primary fundraising function, the public markets continue to be used as a critical, ongoing source of capital: investors who are convinced by a company’s performance and prospects are often willing to support it by buying into further share issues. Despite the difficult

Taking stock: Mark Fahy says stock market activity in London is on the up economic environment, companies on AIM raised over £2.4bn in further fundraising last year. Utilitywise and e-Therapeutics have utilised AIM for further issues in 2013. To complement our existing routes to market, we launched the High Growth Segment in March. It’s designed to appeal to entrepreneurs with exciting companies who need an injection of capital but want to retain a controlling stake in their business. By allowing

them to open their business to investors with a minimum initial free float of just 10%, the High Growth Segment offers an alternative route to market to help talented leaders achieve their vision. AIM was launched in 1995 and remains true to its goal of helping smaller companies raise the capital they need to expand and develop, while enabling investors to support them and share in their success. In the last 18 years more than 3,400 businesses have joined the market, raising over £80bn in new and further issues. UK firms, including many from the North East, have used AIM both to fuel their growth and to act as a springboard to raise significantly their profile. There is a strong line of companies from the North East looking at a public flotation to access the capital they need to grow. Although life as a public company is not suited to all, the strength of the UK public markets and its financial community means there is an exceptional infrastructure to help those seeking to take that step. n Mark Fahy is head of UK small & mid-cap companies at London Stock Exchange.

Investors who are convinced by a company’s performance and prospects are often willing to support it by buying into further share issues

new economy Only a quarter of British firms see product innovation as an important priority in the next year, compared with almost a third globally. Innovation, though, can be seen as a team game involving institutions, businesses and innovation agencies, with innovation hubs and support networks.

bq-magazine.co.uk opinion

new economy

Innovating wins rewards A spinout firmâ&#x20AC;&#x2122;s rocketing share price shows how being first with something new carries value, says Nigel Perry

bq-magazine.co.uk

new economy The North East of England is well known as being a hub for the process industry in the UK. Home to chemical companies of significance such as Sabic UK Petrochemicals, SanofiAventis and Avecia Biologics, the region is a globally significant cluster in the world of chemicals. Despite this regional strength, the financial crash of 2008 brought into sharp focus the UK’s reliance on a service-based economy and clarified the need to address innovation in manufacturing. Although the UK is one of the world’s biggest manufacturers, production only constitutes about 12% of Britain’s total GDP. However, this year has seen manufacturing continue to grow month on month in response to higher export demands, indicating that Britain is taking control of the wheel once more, both figuratively, as the government invests heavily in innovation, and literally, as UK automotive production enjoys its highest output since 1995. However, the high risks associated with innovation in the chemical using industries have created a barrier in the private sector, preventing investment in the process of development. Although the UK is historically good at coming up with great ideas, it has struggled to scale these up, to launch these as commercial products. PricewaterhouseCoopers’ 2013 innovation survey highlights a direct link between a company’s successful innovation and faster growth, yet only a quarter of British companies see product innovation as an important priority in the next year, compared with almost a third of companies globally. The UK research base is strong. It ranks second in the world but other countries have been extremely successful at translating research ideas (invention) into business (innovation) by reducing the risks associated with

opinion

Encouragingly, in the past 12 months, innovative North East companies have taken the leap from innovation to commercialising their ideas validating an idea, and prototyping and demonstrating a product via intermediate centres for collaboration. In Germany, these are the famous Fraunhofer Centres; in Finland it is VTT; in the Netherlands it is TNO; in France the pôles de compétitivité; in Singapore it is A*Star; in Japan they are the technology institutes; and in the US various centres such as the Batelle centres. These centres are public and privately funded and work to reduce the risks for the private sector in innovation, so making it more attractive for investment into new products and processes. Here the UK government is investing heavily to ensure companies are in a position to refocus their innovative efforts and increase their growth. By forming the High Value Manufacturing Catapult – of which we at CPI have been appointed as the process element – the gap can be bridged between

early innovation (the validation of the scientific concept using analytical testing and laboratory studies, where the UK has traditionally been strong) to industrial-scale manufacturing, where the real wealth is created. Encouragingly, in the past 12 months, innovative North East companies have taken the leap from innovation to commercialising their ideas. Plaxica and AGM (both spinout companies from academic institutions Imperial College London and Durham University respectively) have announced the commissioning of production facilities close to CPI in Wilton, Redcar. AGM’s recent flotation on the AIM resulted in share prices that rocketed by over 200% in one day, highlighting the value associated with innovative products. n Nigel Perry is chief executive of the Centre for Process Innovation.

Doorway to life The recent announcement that CPI will establish the National Biologics Manufacturing Centre, based in Darlington, is also excellent news for the North East. The new centre is part of the government’s Strategy for Life Science to help strengthen the UK’s life-science sector. This will help UK companies to develop a competitive foothold in the growing global biopharmaceutical market. Although these are promising times for the process and manufacturing industry in the North East, challenges remain, to keep the focus on innovation and to attract the people and skills needed to keep the industry flourishing in the face of tough economic times. The potential role a centre such as CPI can play in supporting the evolution of the manufacturing industry, and the many diverse sectors it shapes, has not been fully explored or exploited. The possibilities in the process industry are countless; they simply need to be harnessed and focused to ensure tangible benefits are realised, both by the industry and the wider world.

Chasing chemicals: The government is investing heavily to ensure companies are in a position to refocus their innovative efforts and increase their growth

bq-magazine.co.uk

new economy

opinion

On winds of progress Narec’s expertise and facilities at Blyth have a key role in the quest to ensure the right balance in the future market of electricity, says Andrew Mill The past 12 months have seen exciting and substantial developments at Narec, the National Energy Renewable Centre. Earlier this year we celebrated our 10 year anniversary as well as the opening of our new 15MW drive train testing facility designed to replicate real-life conditions in a controlled environment. This has helped us to improve reliability and our understanding of turbine performance to derisk the offshore renewables industry. The opening of this new facility also saw the arrival of Samsung Heavy Industries’ 7MW nacelle, signalling the next step in the evolution of mega-sized technology that will be used in the Round 3 offshore wind zones. Samsung’s nacelle is being used to commission the facility, as well as being Narec’s first commercial testing customer. In June, Siemens-owned MCT arrived on site to test the prototype power train for their SeaGen-S 2MW device. The six month test programme, using our 3MW drive train test facility, will help prove the performance of next-generation tidal turbines. Offshore, Narec enjoyed a boost with dual planning consents being given for the construction of the UK’s largest offshore wind demonstration site and the onshore substation. We’re currently in talks with potential investment partners to build out the demonstration site, and we expect construction of the first array to be completed in 2015.

We have also recently launched a validation service for offshore floating LiDAR (a remote sensing technology that measures distance by illuminating a target with a laser and analysing the reflected light). Alongside our infrastructure programme, Narec has demonstrated a strong track record of success by initiating and delivering around £50m of National and European collaborative R&D programmes which are addressing key challenges associated with the offshore renewable energy sector. One such project, Renewable Energy Technology Accelerator (RETA), which Narec established, is a regional focused programme helping North East supply chain companies to develop new engineering technology for the offshore renewables market. Also, Narec has

been appointed the UK contracting party for the IEA Wind organisation, and Narec’s chief technology officer, Ignacio Marti, has recently been elected vice-chair of the executive committee for the International Energy Agency Wind Implementing Agreement (IEA Wind). He is the contact for UK organisations wishing to engage in IEA Wind research activities. Finally, Narec’s services have been awarded IEC 17025 accreditation by UKAS, for the testing of power cable systems and small wind turbines in accordance with MCS requirements; complementing our existing 17025 accreditation for blade testing. n Andrew Mill is chief executive of the National Renewable Energy Centre at Blyth.

A vital milestone From an industry perspective, the recent Electricity Market Reform (EMR) package is an important milestone towards building long-term security and confidence for the offshore renewable energy industry. It is vital that the government strikes the right balance and utilises the policy to safeguard the UK’s leading position in offshore wind power generation, and to encourage further investment and trust in the sector. Technology development will act as an important catalyst for moving the industry forward and reducing the levelised cost of energy. Narec looks forward to the year ahead and working closely with industry partners to further galvanise market support. Our expertise and facilities will play a critical role in accelerating the development cycle and ensuring the right balance is achieved.

bq-magazine.co.uk

Narec has demonstrated a strong track record of success – initiating and delivering around £50m of National and European collaborative R&D programmes

The sentinel: Narec’s offshore platform off Blyth, measuring windforce and velocity

bq-magazine.co.uk

new economy

overview

Smart switch: Under chairman Geoff Ford, Ford Engineering Group on South Tyneside, once heavily reliant on shipbuilding, is now into the aircraft and automotives industries, and doing well

Doing it differently Innovation is the new mantra covering all aspects of business now, and the burgeoning digital sector is just one area where it has a chance to take root, says Brian Nicholls

bq-magazine.co.uk overview

First it was ‘lean manufacturing’ and now ‘innovation’ is the widely heard mantra in developing the North East’s new economy. International innovator Professor Roy Sandbach, who spent three decades with global consumer products giant Procter & Gamble, leads the strategy via the North East Local Enterprise Partnership. Prof Sandbach, the current David Goldman visiting professor of innovation and enterprise at Newcastle University Business School, says a new sense of focused collaboration must feature in innovation and be actively supported. The death recently of Marshall Meek, an outstanding naval architect, sharply reminds us of the long-term cost to an economy that ignoring innovation can cause. He designed Britain’s first container ship but failed to persuade our shipyards to go with the innovation. The consequences, as we know, have been disastrous. In one instance Blue Funnel ordered ships from both Mitsubishi in Japan and Vickers on Tyneside. Mitsubishi’s two ships, the cheapest, were delivered on time. Vickers, by comparison, delivered five up to one year late. Compensation paid hastened the yard’s closure. Sandbach sees innovation as a team game involving institutions, businesses and innovation agencies. The North East LEP is already building on innovation hubs and support networks. “We want this region to be recognised for innovation,” he says. “It is in our DNA.” Universities are collaborating on important sectors such as the automotive industry, to share their collective expertise for the benefit of the North East economy. The digital economy is estimated to be growing

new economy seven times faster than any other sector in the UK, and the North East is said to be creating more digital startups than any region outside London. Information technology as a whole employs more than 25,000 people in the North East, and is still growing. Unity gives strength and a number of organisations have linked to form North East England IT Forum, which includes businesses, schools, universities – and, importantly, the strategic IT support hubs of DigitalCity, Software City and Digital Union. DigitalCity, based at Boho One building in Middlesbrough, fosters a cluster of commercial digital, media and related enterprises. It serves

Gateshead Council. Codeworks was a digital media innovator and not-forprofit investment company set up by regional development agency One North East and led by Herb Kim, its American chief executive. When the development agency was closed last year Thinking Digital survived and Codeworks joined with Gateshead Council to form Digital Union, whose aims include lobbying for the region’s digital and creative industries, and analysing skills shortages in the sector. Through these and other groups, North East IT companies aim to develop apprenticeships and work together to

The digital economy is estimated to be growing seven times faster than any other sector in the UK and the North East is said to be creating more digital start-ups than any region outside London entrepreneurs with just a germ of an idea, established businesses looking to grow, start-ups and relocations, and it works with Teesside University. Companies there include Double Eleven, Coatsink and 3D animation firm Animmersion. Double Eleven, founded in 2009 by former Rockstar developers Lee Hutchinson and Matt Shepcar, is a handheld and mobile game developer creating for Sony platforms such as the PlayStation Vita. Sunderland Software City includes the Software Centre which opened last spring and is attracting businesses, some from other parts of the North East. It has 62 high-spec offices, conference and meeting rooms, shared spaces and a cinema. Digital Union at Gateshead is an operation linking Codeworks with

attract able candidates. Outstanding digital firms include Atom Hawk Design of Gateshead, Durable Technologies at Hartlepool and Pitbull Studio at Sunderland. Meanwhile the globally outstanding and independent driving and racing game developer, Eutechnyx, has a new division now that could revolutionise car buying. The company whose multi-million selling video games have won numerous awards for brothers Brian and Darren Jobling, has created a proprietary software that replicates vehicles from engineering data, so enabling customers to explore various configurations while interacting with lifesize 3D models on displays. The firm employs 170 altogether at Gateshead, Hong Kong and the United States. The outstanding business in IT

bq-magazine.co.uk

new economy

overview

Fast growing: Thirty years ago the North East had fewer than 10 technology businesses. Now there are more than 300 with only London showing a higher rate of such start-ups

and software is Sage, of course, a Newcastle creation that is now the world’s third largest supplier of business software – indeed, the largest supplier to small businesses. The only FTSE 100 technology company, after 32 years it now has more than six million customers globally. It is the platform upon which the region has built an entirely new sector, and its will to support and inspire local enterprise in software remains as strong as ever. Co-founder Graham Wylie, who retired in 2003, has since founded Technology Services Group (TSG), an IT support and services operation now employing 500 staff throughout the UK. Other companies that have sprung up,

Sage, the only FTSE 100 technology company, has more than six million customers. It is the platform upon which the region has built an entirely new sector, and its will to support and inspire local enterprise in software remains as strong as ever widening the region’s expertise, include Scott Logic, which provides strategy advice and bespoke software to investment banks, hedge funds and other financial services at home and abroad from Newcastle and three other locations. Companies such as Virgin Money, British Telecom, Tesco Bank and British Airways all have offices and back office

technical functions in the region, and in 2010 the world’s biggest management consulting, technology services and outsourcing firm Accenture upgraded its Tyneside location to a UK global delivery centre. And, recently, the Centre for Digital Business has opened an office at the North East Business and Innovation Centre (BIC) in Sunderland. n

bq-magazine.co.uk

new economy

overview

Just the tonic It makes big money but it spends big money. The pharmaceutical industry in the North East, as elsewhere, always walks a tightrope, says Brian Nicholls Pharmaceuticals took root in the North East when Glaxo, in Barnard Castle, began producing penicillin to treat wounded servicemen of the Second World War, and today the pharmaceutical industry is a major earner for the North East economy. Glaxo alone – now GSK – has invested £80m since 2007 into its Barnard Castle plant where 1,000 people are employed. While much of the region’s pharma work involves manufacturing rather than research and development, almost inevitably all will be affected by the government’s recent conclusion of a new five year pricing deal which Health Secretary Jeremy Hunt believes will ensure patients receive the best and most advanced medicines, whilst keeping costs under control. A £12bn spend by the NHS on branded medicines will remain flat for two years, followed by increases of less than 2% over the next three years. The major companies point out that Britain pays less for its medicines than almost anywhere else in Europe, with the spend representing less than 10% of all NHS expenditure. They feel a better return is deserved to support the investment they need to bring a new drug to market. This can take up to 12 years and involve hundreds of research scientists at an average cost of £1.2bn. Even then, 19 out of 20 drugs fail to get that far.

However, they are now stuck with the new agreement, which will have a bearing on the growth of companies whether they research and develop directly themselves or not. The industries that spend most on R&D besides pharmaceuticals and health are computing and electronics, and automotive, according to the 2012 Global Innovation 1,000. All of these are active in the North East. Yet a paucity of R&D in this region is one of its major weaknesses, and as things stand businesses that outsource their R&D overseas are more likely to innovate than those that outsource at home, according to research from Warwick Business School and SKEMA Business School in France. A shortage of R&D career opportunities limits the number of graduates and post-graduates who will be persuaded to stay in the North. Transformation of the North East economy has gathered speed during 2013. Car manufacturing and offshore platform, rig and floating vessel construction, all replacing shipbuilding, are advancing. A modern chapter in train manufacturing is under way.

Thirty years ago the region had fewer than 10 technology businesses. Now there are more than 300, the North East Chamber of Commerce estimates, with only London showing a higher rate of such start-ups. Printable electronics, biofuels, personalised medicines, mass waste recycling and a thriving digital sector are all frontline now. Britain’s 100 fastest growing private technology firms include SMD the subsea ploughmaker of Wallsend, Visualsoft, a developer and host of e-commerce websites based in Stockton, and Nomad Digital, a Newcastle specialist in broadband communication for transport. One of the early contract winners in the new trainbuilding industry, Hitachi, is setting up at Newton Aycliffe. Others look capable of entering that 100. Orla Protein Technologies, for example, spun out from Newcastle University in 2003, and focuses on the major medical research activity around stem cells. And in mid-November shares in Petards, newly enlisted on the AIM, soared by 69% concurrent with a fifth contract win in three months – a £7m deal under which the Gateshead manufacturer will supply and support

A paucity of R&D in this region is one of its major weaknesses – a shortage of career opportunities limits the number of graduates and post-graduates who will be persuaded to stay in the North

bq-magazine.co.uk

new economy secure radio equipment for the RAF. While warships and tanks are no longer built in the region, the NDI cluster of defence suppliers includes many North East suppliers. The £200m turnover Reece Group, noted particularly for its anti-mine safeguards used in Afghanistan and Iraq, is now diversifying also into offshore work. BAE Systems has sold its famous Vickers Defence factory at Newcastle to the Reece Group, for a relocation to one site of 500 jobs from Reece’s earlier workplaces at Walker and Team Valley. The North East, inspired by innovation

within Nissan, Zero Carbon Futures and local universities, is pioneering a new era of rechargeable electric transport. First it was the British version of the Leaf, the world’s first 100% electric, zero-emission car designed for the mass market. Now Nissan, working with Gateshead College, British Gas and Hitachi Capital Commercial Vehicle Solutions, is piloting the country’s largest electric commercial vehicle trial; 28 all-electric Nissan e-NV200 vans. British Gas is rigorously testing eight of the vehicles in the North East, and 10 each in Glasgow and

Confronting the crisis Scientists are intensively examining ways to resume coal mining viably in the North East without the human cost in lives and health the industry once knew. Quality reserves still exist, enough for about 300 years it is said. Under the British sector of the North Sea lie perhaps 3,000bn tonnes of coal that could be harvested by offshore coal gasification. Prospects for shale gas are also good. Five Quarter, a Newcastle University spinout, is exercising a licence to conduct offshore gas work in this vein. As Britain edges towards a world leading clean energy economy costing more than £100bn, the North East is playing a major part. It is already Europe’s waste recycling capital, says Stan Higgins, chief executive of the North East Process Industry Cluster. As availability of energy and power supplies nears a crisis for the UK, Earthly Energy, an anaerobic digestion plant at Middlesbrough, prepares to turn waste into electricity by 2015. RES has plans approved for a £250m biomass power station at Battleship Wharf on the River Blyth, promising electricity for more than 170,000 homes a year. Back on Teesside, Sita UK and Sembcorp UK have a 30 year contract worth £1.2bn to turn more than 430,000 tonnes of Merseyside’s household waste into energy yearly at Wilton from 2016. Air Products is creating 50 jobs at a gasification plant in Billingham, the largest of its type in the world, to divert non-recyclable waste from landfill. And the local Scott Brothers Group and O2N of Devon expect to build, at a cost of £75m, the UK’s biggest facility of its kind, Billingham Energy gasifier, on the former ICI Billingham site in Haverton Hill. Northumbrian Water was the UK’s first water utility to create its own energy from sewage – processed at Bran Sands on Teesside and Howdon Treatment Works on Tyneside. Emerald Biogas’s anaerobic digestion (AD) plant, an £8m facility on Newton Aycliffe Industrial Estate, is the North East’s first commercial food waste facility, generating enough energy to power 2,000 homes a year. Meanwhile, Hartlepool’s nuclear power station – due to close in 2019 – will now stay open until 2024, since it remains safe and economically viable, its French owner EDF Energy says.

overview

West London. Sevcon in Gateshead is a pioneer of controls for electric cars. The North East pioneered electric vehicle manufacturing back in 1920 when Smith Electric Vehicles began making battery powered vans and trucks in Gateshead – milk floats especially. Today, following a 2011 buyout by its US subsidiary for $15m, it is headquartered in Kansas City, claiming to produce the world’s largest range of commercial electric vehicles. Proton Power Systems in Newcastle has created powerful hydrogen fuel-cell range extenders to boost the distance electric buses and other vehicles can travel between charges. Green gas buses are being tried out on North East routes, notably by Arriva. Through its German subsidiary, Proton Power has also developed the first battery and fuel cell operated electric commercial vehicle in the 7.5 to 12 tonne weight class. It has also launched a solar storage product to help systems bank their power for release at times when demand and power costs are higher. Biofuels firm Ensus, launched in 2010 to produce bioethanol for greener vehicle fuel – with byproducts such as high protein animal feed and CO2 for food and drink industries – had production stoppages for “business and economic” reasons. Now, however, the firm, which employs 100 at its Yarm headquarters and Wilton plant, has been bought for £250m by the German firm CropEnergies, whose pledge of £50m investment should stabilise production. That innovation is possible in longstanding processes is borne out by the launch in the Lake District of The One, a new concept in blended whiskies, drawing on products of Scotland, Ireland, Wales and Eastern England. Bottling will be carried out by a young company on Teesside. n

LOOK NO FURTHER

The North East has a booming IT industry with growth from corporates servicing national government, international business and local champions. There are thriving software and digital firms. We want local firms to look us up so we can work together. We are an industry led group aiming to grow the local IT economy: skills, collaboration, innovation. Get in touch.

www.dynamonortheast.co.uk

bq-magazine.co.uk

new economy company profile

DEAL OF THE YEAR IS FANTASTIC NEWS FOR THE REGION In April, UK Land Estates completed the buyout of the Homes and Communities Agency’s interest in their joint venture known as North East Property Partnership. The transaction was awarded Deal of the Year at this year’s Insider Dealmakers Award. It was a landmark for UK Land Estates, the North East’s largest commercial property company, and also fantastic news for businesses throughout the region. UK Land Estates is a 50:50 joint venture between management and property fund managers Highcross who have a current portfolio of more than 19 million sq ft. of industrial and office space, in major towns and cities across the UK. North East Property Partnership was established in 2004 when the Regional Development Agency sought a private sector partner to manage and operate its commercial property interests. These interests extend across the whole of the region and include many of its key industrial and commercial centres – for example, Team Valley Trading Estate in Gateshead and Teesside Industrial Estate on the outskirts of Middlesbrough. The venture was a huge success, with the estates housing some of the North East’s most vibrant and growing businesses – for example Express Group, Cotswold, Decorative Panels, Culpitt, Gateshead College, Rettig, De La Rue and Rolls Royce. The buyout ensured that the operation and ownership of these key North East assets remained firmly located in the region as UK Land Estates has its head

Newcastle Airport Southside (Computer Generated Image) office in Team Valley and a management team that has lived and worked in the North East for a number of years. The Managing Director, Michael Spriggs, said “These business parks represent an exceptional asset for the North East where engineering, manufacturing and exporting are flourishing. This deal ensures that going forward these parks are managed and invested in for the benefit of the business community and the North East’s economy generally. The holdings also include several sites suitable for development to meet future demand for new and expanding businesses” With the economy now showing definite signs of recovery, many firms in the region are taking the decision to invest in the future success of their business by purchasing machinery,

increasing product lines and exploring new markets. This investment has resulted in a significant increase in the take up of industrial properties in the region to the extent that the supply of vacant buildings is now at an all-time low. There is a genuine risk that business expansions could be stifled by a lack of new properties. The good news is that UK Land Estates are uniquely positioned to provide much needed new developments. The buyout of North East Property Partnership means that it has an extensive portfolio of sites and the financial backing to deliver much needed modern buildings in outstanding industrial locations. Developments such as Dukesway Central, in Team Valley will provide up to 200,000 sqft of high quality

bq-magazine.co.uk

new economy company profile

Dukesway Central Development, Team Valley (Computer Generated Image) industrial accommodation. With start on site aimed for early 2014, buildings will be available for occupation within 12 months. John Seager, Director in charge of developments in Team Valley, is happy to provide further information on the developments “This is an exciting time for new developments in the region. Dukesway Central is just the start of it with further sites such as the former Huwoods Factory being one of various projects we are pushing forward. We are already in established talks with a variety of companies wishing to take advantage of early discussions regarding bespoke developments on favourable terms and we would encourage any firms who will be thinking about a similar move to contact us in the near future.” Most importantly, Newcastle

International Airport and UK Land Estates have just signed a ten year development agreement for sites on the south side of the airport and in December obtained minded to grant planning permission for an c. 200,000 sq. ft. office park adjacent to the Callerton Metro station. The old, restrictive use condition has been removed to make it available to all users. There will be a further application for c.400,000 sq. ft. of industrial and warehouse space adjacent to the new runway apron. Tim Witty, Director in charge of the airport sites commented, “These developments will help transform the airport and complement the exciting activities there, in particular the growing network of destinations now serviced from the regional hub.” With 2013’s Deal of the Year in the

bag, UK Land Estates now have the building blocks in place for 2014 to see the start of the first major commercial building programme since the recession. This will help meet the demand from North East businesses for top quality space, allowing the region to continue to strengthen economically and further secure our claim to be the only UK region with a trade surplus. n

Any enquiries in respect of UK Land Estates’ development programme should be directed either to John Seager or Tim Witty on 0191 440 8880

manufacturing & offshore The biggest cost issue for companies – rising energy costs – needs addressing in the Chancellor’s 2014 Spring Budget. Offshore, however, the supply chain’s development of new technologies, supportive tax regimes and the price of oil have all helped to increase levels of investment.

bq-magazine.co.uk opinion

manufacturing & offshore

Afloat with optimism George Rafferty says itâ&#x20AC;&#x2122;s easily seen that the North Sea offshore industry is riding strongly with the revival of North Sea oil and gas

bq-magazine.co.uk

manufacturing & offshore The recent arrival of the giant floating production storage and offloading vessel, the EnQuest Producer, at OGN Group on the River Tyne is the most visual indication yet of the impact the renewed focus on the North Sea oil and gas industry is having on the North East’s supply chain. The vessel is moored at OGN’s Hadrian Yard for commissioning works ahead of its deployment to EnQuest’s Alma/Galia field, which is the revitalisation of the North Sea’s first producing field, Argyll. For anyone still believing the UK oil and gas industry has an uncertain and particularly short future, Alma/Galia proves that the North Sea continues to offer worthwhile investment opportunities for operators. Despite Argyll first producing oil in the mid-1970s, and having been decommissioned twice during its lifespan, EnQuest is confident it can maximise the remaining resources with 34m barrels of oil equivalent still to be recovered. This type of activity is possible thanks to the supply chain’s development of new technologies, supportive tax regimes and the price of oil, which has helped increase the level of investment in the UK Continental Shelf (UKCS). It is predicted that £100bn has been earmarked for new developments and improvements to existing assets and infrastructure in the North Sea, which includes more than £13bn for projects over the next 12 months. The support of an experienced and technology-led supply chain will be vital to ensure operators get maximum benefit from their investments, which is creating considerable opportunities for companies based in the North East. The North East has historically been at the heart of the North Sea oil and gas industry. Within NOF Energy, more than

opinion

It is predicted that £100bn has been earmarked for new developments and improvements to existing assets and infrascruture in the North Sea 230 NOF Energy members are based in the region and, together, generate a £2.5bn turnover, the majority coming from oil and gas. There is no reason why, with this new round of investment in the North Sea, that this should not continue. Companies from the region have developed world-leading products, services and competencies that have become an intrinsic part of the oil and gas sector, which make them exceptionally attractive to operators. In addition, the increase in North Sea activity should also encourage companies from other industries with complementary products and services to look to secure a proportion of the growing North Sea industry. The challenge for new entrants is to

secure a route into the market that will enable them to engage with potential key clients. However, in our experience, Tier 1 and 2 companies building supply chain networks are open to engaging with new entrants to the market, if they can offer something that meets their high standards and project requirements. For the region’s technology-led companies, quality manufacturers and specialist service providers, whether they are currently operating in the sector or not, the future is definitely bright and now is the time to grasp the opportunities available with both hands. n George Rafferty is chief executive of NOF Energy.

bq-magazine.co.uk opinion

manufacturing & offshore

Grasp the energy nettle There’s a top priority now for the Chancellor’s spring Budget as far as industrialists are concerned, says Andy Tuscher Over 2013 we have seen a turnaround in prospects for manufacturing, with the pick-up expected to strengthen going into 2014. This is on the back of both the domestic and export markets having shown increasing signs of life, while more stable economic conditions in some of our major markets – particularly in Europe – have supported orders right through the supply chain. However, our most recent survey did show a slight dip in export orders, a reminder that uncertainties in the global economy remain. Also notable is that these positive expectations for trading conditions in early 2014 remain fairly broad based across all the subsectors covered by our survey. Crucial to the long term health of manufacturing and its contribution to the wider economy is translating improving output, orders and profitability into firm plans to increase jobs and new investment in capital equipment. Encouragingly, all the indications point to strong intentions among manufacturers on both these points in the months ahead. Through these more positive conditions, in line with improving sentiment across the sector and in other non-manufacturing indicators, EEF has made upward revisions to our forecasts for both manufacturing and GDP growth in 2014. While the strong

results in this quarter tee up a better year for industry, and some risks of the recent past have begun to diminish, challenges to the recovery linger. As companies seek to invest, recruit and grow, they must do so in the context of a competitive business environment that keeps costs down and unlocks the finance and skills

manufacturers need to get on top. So it is important that pursuit of growth must remain a priority for government in the remainder of this parliament. The Autumn Statement was a chance for the coalition to set out how it would drive forward its investment and reform agenda over the coming 18 months. But we believe the Chancellor missed the opportunity to send a strong signal to industry that now is the time to invest and create the jobs we need. In particular, he failed to address the biggest cost issue currently facing companies – rising business energy costs. We will look to the 2014 spring Budget for him to address this omission. Still, next year looks promising for manufacturers. Right across our region there are success stories of world leading companies, both large and small. Our recent award winners demonstrated a wealth of successful, innovative businesses with highly skilled people, their biggest asset. The challenge as we enter the new year is to grow more of them. n Andy Tuscher is regional director – North, EEF.

We believe the Chancellor missed the opportunity to send a strong signal to industry that now is the time to invest and create the jobs we need

bq-magazine.co.uk

manufacturing & offshore

overview

Making it magnificently North East manufacturers set a hot pace as UK manufacturing returns to its strongest for 18 years. Brian Nicholls looks at some highlights Growth of UK manufacturing is at its strongest for 18 years, the CBI reckons. The size of total order books and the pace of output growth as good as today’s were last seen in 1995. The North East is leading by example. Witness offshore manufacturers like OGN, which has announced a 70% jump in 12 month profits from designing and building energy platforms at Wallsend. It is taking on 600 more workers. And while Tyneside mainly has developed the subsea skills and technologies, Tees Valley has a cluster of contractors successful at home and abroad. And in 2014 the region will see further evidence of its big revival in railway manufacturing, as the Darlington based lead contractor Shepherd gets construction underway of Hitachi’s rail plant at Newton Aycliffe, reputedly the region’s most significant inward investment since fellow Japanese giant Nissan set up at Sunderland in the 1980s. The £82m investment with a £4m state grant raises prospects of the UK once again exporting trains – to Europe initially. Some 150 jobs are coming with the site construction, and altogether 730 people will be directly employed when Agility Trains (main shareholder, Hitachi Rail Europe), actually starts building from a factory area the size of six football pitches, to be completed in

mid-2015. First on the rails will be the fleet of 122 Class 800 series trains for the East Coast Main Line and the Great Western Main Line, part of the Intercity Express Programme. Merchant Place Developments in Newcastle was the firm that persuaded Hitachi to favour the North East above other sites in the country. Local suppliers are being used where possible and Alistair Dormer, executive chairman and chief executive of Hitachi Rail Europe, says most of the workforce will also be local. Meanwhile Nissan, now Britain’s biggest car maker, presses ahead with a £250m expansion of its Sunderland plant, making it the largest in British automotive history. It has taken the plunge but warns that Britain should vote to stay in the EU in the event of any referendum. The Japanese manufacturer, whose 1986 opening offset the closure of Wearside shipyards, needs the additional facilities to produce a new upmarket model, Infiniti. With a 2015 launch scheduled, it may employ 7,000

before long. Models already turned out there include the Qashqai, Juke, Note and the all-electric Leaf. A new-look Qashqai was launched in November, and the Infiniti will be the first new car made in the UK on the scale envisaged for 23 years. Nissan also talks about producing driverless vehicles. Global boss Carlos Ghosn, encouraged by the successful production of Britain’s version of the all-electric Leaf there, thinks Sunderland could suitably build robot vehicles if tests prove positive. It has been a less successful year for Komatsu UK, the excavator builder a few miles from Nissan at Birtley. It reported a £13.3m loss. But it is inevitably hit by the construction malaise. That it has only reduced its 395 employees by six suggests a major pick-up is expected. Nissan’s success does a world of good, however, for the many automotives firms of the region, such as Gestamp Tallent Automotive in Newton Aycliffe, which produces for other major manufacturers also. n

Nissan warns that Britain should vote to stay in the EU in the event of any referendum

bq-magazine.co.uk

Pamela presses on: Newton Aycliffe is seeing major diversification in manufacturing also with a move by Ebac into air source heat pumps, freezers and a revival for the UK of washing machine production. The firm, already renowned for dehumidifiers and a market leader in European production of water coolers, has added a factory to its estate

bq-magazine.co.uk

manufacturing & offshore

overview

Making the sparks fly When it comes to surviving the worst, there are wills of steel on Teesside, says Brian Nicholls A truly inspirational story in the North East’s revival of heavy industry has been the rebirth of steelmaking at Redcar. Mothballed in 2010, it looked a fatal blow for Teesside’s near 170 year history of steelmaking, especially as Tata Steel, also on Teesside, was about to announce redundancies. But the Redcar plant, now owned by Thai firm SSI, could have at least 30 more years of production ahead, especially with a £60m-plus deal in the USA imminent, as well as German business worth about £62m a year. It was the last steel plant built in the UK and production resumed there in 2012. A first year loss of £274m was blamed on cashflow problems through costly delays in resuming production. But £1bn more has been invested, and introducing pulverised coal injection is expected to save £60m a year. So far only one out of three blast furnaces has been operating. But Win Viriyaprapaikit, succeeding Phil Dryden as head (a hero of the rescue), believes links with South East Asia will further strengthen SSI’s future at Redcar and safeguard 1,800 jobs there. So many manufacturing and engineering firms of the region excel presently that picking a paragon is difficult. But Cleveland Bridge, the Darlington builder since 1877 of structures like the Victoria Falls Bridge in Africa and the Bosphorus Bridge

Much North East prosperity in engineering stems from firms that have diversified from established lines into value-added products and services in Turkey, has recovered from having had to shed nearly half its 500-strong workforce in recession, and divert energies to resolving a contract dispute over its role at the new Wembley Stadium. Now it is making the massive U-shaped steel sections that will bear the weight of the new Forth Road Bridge, is building 210 bridges for rural Sri Lanka, and has seven contracts in London’s Crossrail project. Much North East prosperity in

engineering stems from firms, too numerous in all to name, that have diversified from long established lines into value-added products and services. Express Group is one. In its 40 years of progress it recognised early on, under former North East Business Executive of the Year Chris Thompson, that traditional metal bashing was not enough. It is now a leading group of diversified subcontractors employing 375 workers

bq-magazine.co.uk

Turning to advantage: Geoff Turnbullâ&#x20AC;&#x2122;s company has made big inroads by cashing in on new European legislation on emissions

bq-magazine.co.uk

Up a level: Brian Palmerâ&#x20AC;&#x2122;s company has taken its reputation to a higher level with a custom design and build service

bq-magazine.co.uk overview

manufacturing & offshore

Someone has said, with reason, that you never know what the North East will turn up next at Gateshead. Stokesley and Sao Paolo in Brazil, and engineering with precision for aerospace, defence, subsea oil and gas exploration and production, power generation, and even medical equipment. It excels partly because Thompson has given some of his best managers a channel into entrepreneurialism. Similarly Geoff Turnbull, a former 15-year-old apprentice, now chairs his own GT Group, an environmental engineering firm he founded in 1980, and which is now a Sunday Times International Track 200 company excelling in sales to Russia and elsewhere. Using new European legislation on emissions to advantage, GT shows foreign growth of 61.9%, its exports providing more than half of turnover. This could be £40m in 2014, with the exports up to 70% of total. The specialist engineering product designer and manufacturer sells in more than 60 countries, notably

with its innovative engine emission control systems much wanted by on and off highway diesel engine manufacturers, with which it often collaborates on projects. Headquartered in Peterlee, it also has sites in Consett,

Newton Aycliffe and Sunderland. Its customers include JCB, Shell, Exxon, Mobil, Scania, and John Deere. Tharsus Engineering in Blyth, almost 50 years in business, is outstanding both in exports and in output per employee because it re-applied its welding and sheetmetal working skills to custom design and build services. The Middlesbrough entrepreneur Colin Scarsi has introduced the manufacture of punctureless green tyres for cycles, wheelchairs and carts. Their quality has been impressively shown twice over. The Belgian explorer Louis Philippe Loncke had them on his desert cart when claiming a first ever known crossing of Australia’s Simpson Desert from north to south through its centre. And another explorer, Ripley Devenport achieved a record 1,012.4 miles walk through Mongolia in 52 days, eight hours and 49 minutes, with a similarly tyred desert cart. Someone has said, with reason, that you never know what the North East will turn up next. n

Recruitment Services in Manufacturing, Engineering, Warehousing & Industrial Services Tel: 0191 273 2233 / 0191 256 5006 Fax: 0191 273 0876 Mob: 07448 025 935 / 07466 462 955 Email: jobs@unitedrecruitment.net Web: unitedrecruitment.net United Recruitment & Employment Ltd | Newcastle Enterprise Centre Lynnwood I-8 | Lynwood Terrace | Newcastle upon Tyne | NE4 6UL

small business In association with

Late payments and soaring business rates need checking if small business is to fulfil its potential. In human resources, the astute and progressive employer will invest in training needs of individuals, in line with growth opportunities, to ensure business growth.

bq-magazine.co.uk

small business

opinion

The Scourge of small firms Late payments and soaring business rates seriously need checking if small business is to fulfil the role it is capable of in speeding economic recovery, says Simon Hanson Some familiar challenges have confronted small businesses across the North East during 2013. Even so, members of the Federation of Small Businesses in the region have remained bullish – especially as they led the way in terms of confidence in the first two quarters of 2013 and waited for the rest of the UK to catch up. They are still confident looking forward. However, getting finance for small businesses at an affordable cost remains a challenge for too many. Fortunately, signs indicate this may change. The Funding for Lending scheme reported increases in small business lending, and the Enterprise Finance Guarantee Scheme showed signs of growing. While we waited for banks to increase lending to SMEs, alternative sources have started to fill the gap. The North East Finance funds continued to invest in and help ambitious small firms, and some of the Business Bank backed alternatives, like Funding Circle, also began to make a footprint in the region. So we hope affordable finance to small businesses will remain available. Late payment continues to be a scourge for far too many. Despite all the rhetoric to help clamp down on this, we have seen payment terms increase to 180 days for some. Research from BACS showed that late payment was costing £30.2bn across the country, with small businesses in the North

reportedly owed on average £39,000. Also, most have been waiting at least eight working weeks for payment. The cost of chasing late payment is £700m – almost half the total Regional Growth Fund budget. More must be done in 2014 to clamp down on this. Selling to the public sector has always been a key market for many small businesses across the region. For every pound spent with a small business, 64p stays in

the local community. Despite continuing cuts to public sector spending, we have seen some increases in councils’ spending with small firms in Durham and Sunderland. The introduction of the Social Value Act allows the public sector to look beyond just cost when awarding contracts. In 2014 we hope North East councils will use the flexibility to help small businesses win more contracts. At the close of 2013 the increasing cost of business rates was causing many small businesses a big headache. In some places we have seen business rates rise to more than the cost of rent. Making permanent Small Business Rate Relief would help many firms in the region. But we need to see the system reformed too. Working together we can make 2014 a great year for small businesses in the North East. n Simon Hanson is development manager in the North East for the Federation of Small Businesses.

Blessed relief Simon’s Hanson’s article in this section was written before the Chancellor’s Autumn Statement. There has since been some praise in small business circles for the capping of business rates at 2% and the scrapping of employers’ National Insurance contributions for staff aged under 21, as well as the £1,000 rate cuts for firms moving into some high street premises. Intervention on energy bills and the freeze on petrol prices is also expected to help many.

bq-magazine.co.uk

small business

opinion

Seize opportunities vital to growth Donâ&#x20AC;&#x2122;t collect badges but do equip tomorrowâ&#x20AC;&#x2122;s workforce with expertise, Paul McEldon urges With start-up activity on the rise and established firms experiencing a growth boom, the number of active businesses in the UK reached 2.82m â&#x20AC;&#x201C; up from 2.73m last year, according to the latest Entrepreneurs Index report from Barclays and Business Growth Fund. This entrepreneurial spurt is good for the nation, as early adopters are quick to seize market opportunities and lay foundations for future generations. But with the average business in the UK employing just four people, how can we ensure businesses continue to expand? I believe the answer lies in access to training. As busy managers, we all know finding the time to invest in bringing colleagues up to speed in order to hand projects over is never easy yet it is vital; necessary to free us up to do other things and to enable others to develop their own skills. This lesson applies to companies regardless of size, for if we do not invest in opportunities today, we will feel the economic implications tomorrow. Regardless of whether you are looking at introducing a new system and need to bring everyone up to speed, or require specialist qualifications and skills, training does require investment. So it is vital that objectives are linked to organisational and personal key performance indicators (KPIs) that can be measured and assessed on an ongoing basis.

Many standards exist helping organisations to do so, including Investors in People and Customer First. These standards focus on developing not only processes but also people, by identifying areas that will help improve businesses. I do not advocate badge collecting for the sake of it. But having recently attained the Customer First standard at the North East Business and Innovation Centre (BIC) I know first hand the cultural benefits of this programme. Even so, it is a challenge for business owners to keep operating costs down, while trying to grow the

both individuals and businesses developed through the support of these institutions. Likewise, colleges and training providers are doing much to promote apprenticeship programmes. Traditionally associated with engineering and manufacturing, the apprenticeships continue to stand the test of time, and today are very popular in a wide range of other industries including the service sector and creative industries. Designed to help trainees learn on the job, they offer a viable alternative to academic routes, one which embraces and promotes

In the North East we are all aware of the implications of the brain drain, as skills are lost when graduates are unable to find work business. Likewise, employing and training new staff can be costly. In the North East we are all aware of the implications of the brain drain, as skills are lost when graduates are unable to find work in the region. Thankfully, our local universities are working hard to help reverse this situation, implementing internships and short term employment programmes, which allow businesses and graduates alike to benefit. I have seen many BIC tenants take advantage of such programmes, and can testify that

continuous learning, so benefiting both the apprentice and the employer. Programmes such as these instil the importance of investing in the training needs of the individual, in line with growth opportunities of an organisation. It is the astute and progressive employer that will effectively manage them in order to ensure business growth. n Paul McEldon is chief executive, North East Business and Innovation Centre.

bq-magazine.co.uk

Freelancing often follows redundancy â&#x20AC;&#x201C; the switch from employee to employer is not always easy, but for many seems worthwhile

bq-magazine.co.uk

small business

overview

Little smashers Prospects for many SMEs would be even brighter if the government’s stated intention of making more public work available to small businesses looked more effective, says Brian Nicholls Small businesses mean more to the North East economy than many may realise. They contribute £24bn and employ more than 333,000 people. Among them is a fast-growing army of freelance workers, whose number nationwide rose in 2013 by one million to 4.2m. Nationwide, too, they are contributing roughly £202bn worth of sales each year, and are earning more money. They stacked an average £50,820 in 2012 – well above the median annual wage of £26,500. So despite recent tough economic times, they have bucked the trend of frozen or, in some cases, falling salaries. One-man-band, micro businesses and freelancers are all setting a hot pace according to Crunch Accounting, which estimates that in 2013 they invoiced on average £6,401 a month – a 27.4% rise on 2011. An online marketplace for small firms, freelancer.co.uk, believes Newcastle and Brighton are setting up more micro-firms than anywhere else and are seeing the highest growth in microbusinesses at 24%. Freelancing often follows a redundancy, whether voluntary or compulsory. A person bowing out of paid employment or a collapsed business decides to reapply their skills to their own gain. And there have been plenty of opportunities for that in the North East. The switch from employee to employer

is not always easy, but for many it seems to be well worthwhile. If they’re still thriving after three years they may be heading towards building a bigger business. Prospects for many SMEs would be even brighter if the government’s stated intention of making more public work available to small businesses looked more effective. Most companies surveyed believe it has become harder to win public contracts in the past two years. Despite attempts to cut red tape and intensify competition, only 6% of SMEs believe it has become easier, with 26% saying it has become harder, market research by Fujitsu found. However, there are public bodies that recognise the value SMEs can bring. Narec, the national renewable energy centre in Blyth, has introduced a £2.8m scheme to support SMEs keen for a foothold in the prospering offshore sector. Further support generally has come through the Bank of England’s decision to refocus its Funding for Lending on small businesses. Alexander Jackman, head of policy at the Forum of Private Business, says: “Not only will this cool fears around the mortgage sector but, more importantly, it will focus the finance on the real need in the economy, our growing small businesses.” But there’s not so much satisfaction yet about the high street banks. Bully-

Banks, a group campaigning against misconduct, wants an investigation into the behaviour of high street banks in their dealings with SMEs. Following the Tomlinson Report alleging RBS pushed businesses into default to allow a purchase of devalued assets, the campaign group is calling on the government to set up a Select Committee to carry out the inquiry. Bully-Banks believes the conduct of the banks concerning each of the following activities requires impartial and independent investigation: • The sale of financial products to SMEs, • Provision of finance and other banking facilities to SMEs, • Re-valuation by banks of assets held as security, and the imposition of additional charges by when a business is moved into ‘support’ management, • Appointment of insolvency practitioners by the banks, • Management of the administration, liquidation or insolvency of an SME when a bank is the largest creditor, • Conduct of the banks’ internal complaint processes and the banks’ conduct of complaints raised by SMEs with the Financial Ombudsman Service. Jeremy Roe, chairman of Bully-Banks, says: “We estimate the mis-sale of just one product (Interest Rate Swaps) by the banks has cost the economy over 300,000 jobs.” n

bq-magazine.co.uk opinion

small business company profile

Harlands Accountants looking to take control of the future

Managing director of Harlands Accountants, Glyn Davison talks about their exciting new look and why he and his team are committed to helping build better businesses in the North East. Established by Ian Harland in 1982, Harlands now has three branches (Consett, Sedgefield and Newton Aycliffe), employing 20 members of staff, and offering a range of accountancy, tax, business advisory services. Following a management buyout in 2011, business growth specialist Glyn Davison became managing director at Harlands and has developed the vision and a new look that shows they want to be more than just accountants to their clients. “Ian wanted to help clients take control and support them in building better businesses and when the new directors and I took over, we wanted to continue that ethos,” explains Glyn. “Accountancy is just the start for us!! For our team, a tax and business advisory service is the natural next step in our working relationship. Our accountancy compliance work tells us so much about a client’s strengths and challenges, their opportunities and limitations. We are therefore ideally placed to help businesses identify openings and release potential and knowing that the finances are straight gives business owners the control they need to take on everything else” Harlands understand that all businesses and owners are different, and have developed a range of services to help all ages, shapes and sizes. Glyn continues,

“Clients enjoy what they are good at. That’s why we love sorting out their tax, compliance and audit requirement. At Harlands we have created a core offering that removes the stress and fear which can limit business owners, giving them the space to focus on taking the business forward” Glyn, who began as a trainee at Harlands in 1992, also sees the practice’s ability to adapt to changes in the industry as key to its longevity and future success. “In the last 30 years the accountancy profession has changed a lot,” he reflects. “Technology has had the biggest impact on our industry, especially over the last 10 to 15 years. People communicate very differently now. “We’ve invested heavily at Harlands so that we can cope with these changes. This has ensured we can make communication easier and has included implementing cloud technology; utilising cloud based accounting systems (such as xero) and most recently, iPads.” “Accountancy is no longer a nine-tofive profession. We need to be there for our clients whenever they need us. That may be a text to a business owner at 9pm or an early morning email because that’s when he or she needs help and support.”

Glyn and the team at Harlands celebrated the rebrand with a Christmas Launch party in December 13. The event was a huge success with over 100 north east businesses attending and listening to a keynote speech by Durham based marketing guru Geoff Ramm. However, the accountancy practice is not stopping there, and is still looking to the future. The forward thinking practice now has plans to expand its team and locations in the coming 12 months. This is hugely in part to Glyn and his fellow partners’ belief in continually developing a team culture that all have a clear vision of aiming to improve the lives of business owners across the North East. “The thing we enjoy most about working at Harlands is the People – helping them to improve their lives – team members and clients. It’s so important to me that what I do makes a difference – we aren’t on this planet long enough to waste our time.” n

To find more information on Glyn and the team at Harlands Accountants call (01207) 581717, visit www.harlandsaccountants.co.uk or email glyn.davison@harland.co.uk

universities In association with

Universities of the region have a diverse selection of programmes lined up to meet business skill needs, whether itâ&#x20AC;&#x2122;s at executive, middle management, junior or pre-entry level. Adding value to business is a key goal five universities work towards in their individual ways.

bq-magazine.co.uk

universities

opinion

Where young talent excels A quick tour of the region’s five universities soon throws up inspiring examples of academia’s contribution to business success, says Brian Nicholls Northumbria University closed 2013 with a hat-trick of noteable successes. BIM Academy, a joint venture between Northumbria University and Ryder Architecture, beat other teams from around the world in a “clock racing” virtual challenge to create the best building proposal for a new $1bn Sydney Convention and Exhibition Centre. Peter Barker, BIM Academy’s managing director, said university staff collaborated on the winning project with colleagues from Norway, Australia, New Zealand, and elsewhere in the UK. The university also won a Queen’s Anniversary Prize for exceptional work by its Student Law Office. The prize is the highest form of national recognition open to a UK academic or vocational institution, And Northumbria was felt to have “a university law clinic making a distinctive contribution to the needs of the local community and to legal education.” Meanwhile, the effectiveness of its travel and tourism courses was borne out by two of its graduates clinching a clutch of silverware at the British Travel Awards. The Activity Travel Company at

Stannington, Northumberland, set up 11 years ago by Alistair McLean, picked up three awards. Around half of his 14 staff are fellow Northumbria graduates. McLean also has two sister companies; Activities Abroad, which offers familyfocused activity breaks, and The Aurora Zone, a company specialising in trips to view the Northern Lights. Perfect Weddings and Honeymoons, set up by Danny Waine, 25, of Middlesbrough, won its category for a third year running. Waine set up the business after spotting a niche in the market during a year-long work placement as he studied for his honours degree in Travel and Tourism Management. The award tops a record year for the business with sales up over 150%, against 2012. Teesside University has been changing the centre of Middlesbrough over the past decade with £150m investment in the campus and its environment, and it is hoped soon to have a new £20m teaching and conference building. At University of Sunderland a knowledge transfer partnership (KTP) with a North East print company has

The effectiveness of Northumbria University’s travel and tourism courses was borne out by two of its graduates clinching a clutch of silverware

generated £2m of new business for the company, winning the university an ‘outstanding’ rating in a national assessment. Imprint Group wanted to convert its largely manual business process into IT. Computer software graduate Kris Carr spent two years bringing about the transformation. Newcastle University’s reputation for sound research into rural economies and societies has been recognised with the award of a Queen’s Anniversary Prize. University staff and students are also currently working with policy makers, the private and public sectors and researchers from across the globe, investigating how digital technology can better help local government services to meet the needs of their communities. Durham University has led a successful bid to share £350m of government funding to train the next generation of scientists, engineers, industrial leaders and entrepreneurs. Postgraduate students will be linked with industry in the field of soft matter, polymers and colloids – materials found in everyday items from toothpaste and food, to the paint used for decorating houses and cars. Soft matter will underpin solutions for challenges arising over low carbon impact transport, renewable energy and smart therapeutics. n

bq-magazine.co.uk

universities

overview

Blended learning: Durham University Business School

bq-magazine.co.uk

universities

overview

DURHAM UNIVERSITY A flexible, modern approach Durham University Business School has set out to offer one of the world’s best global blended (online and residential) MBA programmes – one that featured in the Financial Times’ Online MBA Listing 2013. The programme offers students unparalleled freedom and flexibility in choosing how to study. By offering a combination of online modules and block-taught residential modules, they can experience the school’s stunning facilities in historic Durham, as well as learning through comprehensive online modules via a virtual learning platform. This flexibility and investment in technology has helped bring about a student cohort drawn from all five continents. The Global MBA programmes, based on a research-led teaching model, focus on real industry issues. Rather than just learning theories, real-world business situations apply, with the support of experienced faculty. Given the increasing internationalisation of business, international electives are also offered in a variety of countries, which give experience of working with companies abroad, and also include classes in local universities. The Global MBA is tailored to the realities of modern business. The course includes modules in social media. Students can also choose

Contact point: The new Student Engagement Centre at Newcastle Business School, Northumbria University elective modules in areas such as crisis management, sustaining change in organisations and entrepreneurship. Twitter, Facebook, Google+ and Skype are all used to interact with students across the globe. The Business School has set an ambitious goal of providing a fully integrated, flexible and top-class education to students from around the world.

The Business School has set an ambitious goal of providing a fully integrated, flexible and top-class education to students from around the world

NEWCASTLE BUSINESS SCHOOL Student companies set to work Newcastle Business School, part of Northumbria University, is recognised as an international centre for excellence in business management education. It extends its reputation further in plans for 2014. The school has 4,000 campus-based students, up to 1,500 at partner institutions overseas and an academic and support staff of 200. A new Entrepreneurial Business Management degree programme will have students setting up team businesses early in the New Year. Students are taught in teams by qualified coaches. Two student companies will be launched at the

bq-magazine.co.uk

universities Northern Design Centre, with the students involved in all aspects of establishing, owning and trading in the real world, and learning through setting up and running ‘real’ businesses. Yorkshire Bank and law firm Watson Burton LLP will provide banking, mentoring and legal support. The North East Chamber of Commerce will offer the students free membership while they run their business. As a hub for creative and design-led businesses with incubator units for start-ups, the Northern Design Centre is considered an ideal partner for the business school. Also in 2014 the new Student Engagement Centre, housed in Newcastle Business School, will be the first point of contact for students entering the building. It will encourage all types of experiential learning. These include volunteering, internships and business clinic and placements, which all impact positively on student employability. This business school also has excellent long-term relationships with multinational companies such as Disney and Proctor and Gamble. It also encourages students to consider careers in smaller businesses, social enterprises and business start-ups. Continuing the focus on experiential learning, the school will extend use of its Bloomberg Trading Suite. Northumbria is the first university outside London to install Bloomberg financial services terminals. Students thus gain hands-on experiences in portfolio theory,

overview

securities analysis, derivatives, investment banking, financial engineering, foreign exchange and international trade – all reflecting the need for student learning in this sector to be broad, deep and global.

NEWCASTLE UNIVERSITY BUSINESS SCHOOL Added value to business A member of the elite Russell Group of universities, Newcastle University Business School is one of the largest schools at Newcastle University, with more than 3,000 students representative of over 80 nationalities. Across a diverse suite of academic, industry-relevant programmes, students are encouraged to challenge themselves, and one another, and to think ethically as well as globally. Its research-active faculty is segmented into subject groups: accounting and finance; economics; leadership, work and organisation; and marketing, operations and systems. Within these groups, the school’s academic community specialise in research areas such as innovation, entrepreneurship, and strategy. As well as an award-winning university careers service, the business school has developed successful models for global work placements and internships that benefit both employers and students. These opportunities allow students to get involved in valuable ‘reallife’ projects that take their student experience beyond the lecture theatre.

Newcastle Business School has excellent long-term relationships with multinational companies such as Disney and Proctor and Gamble

The busy events schedule – 70 events in 2013 alone – can provide free advice, best practice and latest academic thinking on ‘business’ to add value to the vibrant North East business community. Also, the business school has a number of Visiting Professorships in practice, such as the current David Goldman Visiting Professor of Innovation and Enterprise – Roy Sandbach. These external figures support the school and work with students and faculty to apply theory to industry practice.

UNIVERSITY OF SUNDERLAND Aiming now for the top On the back of some of its best league table results ever, the faculty looks to secure its place as the pre-eminent business school in the region. So a key priority during 2014 is to continue growing its connections with businesses and employers across the region. The aim is to make it easier for businesses of all kinds to talk to the faculty about their priorities. To help achieve this, a new faculty advisory panel will meet for the first time in January 2014. The panel is made up of a mix of business leaders from across a range of public and private sector enterprises. The faculty has made a point of inviting representatives of very large companies as well as brand new start-ups, and vigorous debate about the faculty’s role in the community over the next 12 months is eagerly expected. Raising research profile will be another key priority. The launch of a new International Centre for Research into Innovation, Sustainability and Enterprise has brought together some leading thinkers in law, business and tourism, and it is supported by a network of

bq-magazine.co.uk

universities

overview

internationally renowned Visiting Professors. One objective will be to make the business community more aware of the remarkable impact some research has already made. To that end, there will be a week-long festival of research in April. It will be organised and run by second year events management students – an example of the kind of work-focused teaching that is the faculty’s aim. In addition, the University of Sunderland’s Business Services team continues to create strong and effective links between employers and the university, providing access to students, graduate and academic expertise as well as facilities to meet the needs of businesses and organisations.

TEESSIDE UNIVERSITY Royally recognised Teesside University has a simple business mission: to help ambitious companies grow through a unique combination of knowledge, innovation, facilities and ideas. It’s an approach that has been royally endorsed, with the recent award of the Queen’s Anniversary Prize for creating entrepreneurship and opportunity in the local economy, particularly through digital start-ups. This prestigious biennial prize recognises outstanding world-class work in higher and further education. Working in partnership to put innovation at the heart of business

Ready for business: University of Sunderland campus growth, currently in the spotlight of government policy, is also at the heart of Teesside’s plans to help exploit opportunities for Tees Valley and North East businesses. With major new regional developments like the National Biologics Manufacturing Centre in train over the next couple of years, the university will play a key part in delivering critical growth services for business through: Digital enablement: building on the longstanding success of regional partnership initiative DigitalCity to help critical growth sectors improve

Teesside University was recently awarded the Queen’s Anniversary Prize – recognising world-class work in higher and further education

performance and productivity through digital technologies Leadership, R&D and innovation: targeted support for high-growth companies, through skills delivery, resource efficiency, academic know-how, graduate recruitment and national and international business networks. Growing the start-up culture: working with strategic partners through DigitalCity and wider enterprise initiatives to harness the region’s entrepreneurial talent and generate the strong new businesses that are the foundation of regional growth and prosperity. Add to these a single point of contact, a client-based approach and high customer service standards, and Teesside University says it is well placed to help North East companies grow and prosper. n

bq-magazine.co.uk

universities company profile

Business Services at the University of SunderlanD Access specialist people, knowledge and facilities to drive your business forward. The University of Sunderland provides expert support to business and organisations of all sizes and sectors. A team of dedicated, professional staff in our Business Services department help employers to access the University’s specialist people, knowledge and facilities. Examples tell their own story.

from children to the elderly; suggesting areas for improvement based on the results. A revamped site went live in November 2013. Kerry Leng, Marketing Manager at Nexus commented that, “our work with the Sunderland has given us a roadmap for how we can enhance our offering, to the benefit of all our site visitors.”

KNOWLEDGE TRANSFER - GROW YOUR BUSINESS A Knowledge Transfer Partnership (KTP) project between the University and Imprint Creative Print Solutions helped the company to generate £2m of new business and was nationally commended as ‘Outstanding’ by the Technology Strategy Board. KTPs bring together a company, University experts and high calibre graduates to work together on strategic projects aimed at delivering profits and growth. With subsidies of up to 60% available, KTPs are a tremendously cost effective means of tapping into the wide array of expertise available at the University and taking businesses to the next level.

DEVELOP YOUR WORKFORCE Our Corporate and Professional Education offer is based on the principle that we work with you to design programmes that actively develop your staff, positively impacting your business. Sue Welch, Learning and Development Consultant at BT Retail stated, “Sunderland have demonstrated creativity, innovation and professionalism in their approach to bespoke accredited learning and I would highly recommend them.”

CONSULTANCY EXPERTISE Transport operator Nexus is on track to improve its website experience for customers thanks to an expert consultancy project from the University. Nexus required an evaluation of their main website, assessing its performance and how it is used by visitors ranging

SMALL COMPANIES ACCESS GRADUATE TALENT We connect small businesses with talented graduates via our successful Graduate Internship Scheme where support from the European Regional Development Fund assists with wage costs. Michael Simpson was named as Sunderland University Intern of the Year after creating a successful Software App for internet marketing company 4th Aspect Ltd. After impressing with his work and enthusiasm during

his internship, Michael is now fully employed at the company. Dave Glynn, 4th Aspect Director, said: “We could not be happier with Michael’s performance. He is a credit to the University, 4th Aspect and the North East’s software industry as a whole.” INTERNSHIPS FOR LARGER EMPLOYERS Sunderland Intern Factory Ltd is a new subsidiary company of the University. Interns carry out graduate level projects for client employers with periods of work ranging from 3 to 12-months. Business Services worked closely with Nissan to help them to recruit two excellent Sunderland graduates to work in their battery plant. Ross Laws and Katie Darling, both with Biomedical Sciences backgrounds, played a key role in the plant’s analytical laboratory. As a measure of their success, both graduates were transferred to permanent staff at Nissan. GET IN TOUCH To access our specialist people, knowledge and facilities:

Telephone: 0191 5153555 Email: Businessgateway@ sunderland.ac.uk www.sunderland.ac.uk/business

giving back Business leaders and companies of all types can make a difference by giving effective, tangible and relevant support to areas where they operate and where their employees and customers live. They will find it also a sound way in which to engage and develop staff.

bq-magazine.co.uk opinion

giving back

Helping as you grow The Community Foundation Tyne & Wear and Northumberland recently marked its 25th birthday having raised an endowment of £50m-plus, and having awarded over £90m in grants. Rob Williamson tells of the corporate kindness behind it When community is your cause a connection to where people live and do business is crucial. Our region already had a great tradition of philanthropy and a strong sense of place. Our job at Community Foundation Tyne & Wear and Northumberland was – and is – to build on that culture, enabling people and businesses who might never think of themselves as philanthropists to be just that. No one understood that mission better than our founding chairman, Professor Grigor McClelland CBE, who sadly died this year. It was Grigor who, in the late 1980s, set about convincing others to support this untried venture in philanthropy. He brought to the enterprise an impressive résumé. At 43, Grigor had set up Manchester Business School, one of the first in the country. He later gave up his academic career to turn around the family-owned supermarket, Laws Stores.

Grigor’s business mind was never divorced from his personal ethics and concern for communities

bq-magazine.co.uk

giving back

opinion

Gentoo gesture: Caroline Gitsham and John Ford from Gentoo mark the firmâ&#x20AC;&#x2122;s donation to the Give2 Sunderland Fund As chairman of Washington Development Corporation, Grigor was also one of the small group of people who helped bring Nissan to Sunderland. Grigorâ&#x20AC;&#x2122;s business mind was never divorced from his personal ethics and concern for communities. We see that philosophy mirrored by the many businesses and business leaders with whom we work. Some have their own charitable foundations or have set up a company fund at the Community Foundation. Others have given in collaboration with others to support local causes or have engaged in backing the arts. Several

In 2014 we want to encourage business leaders and companies of all types to make a difference. A local focus makes giving effective, tangible and relevant to the area in which a company operates and its employees and customers live have taken up the opportunity of having donations matched through our schemes like Community First, Give2 and the North East Fund for the Arts. And there is now more reason than ever to ensure entrepreneurs connect with charitable causes on their doorstep. In 2013 we published our

Vital Signs reports for Tyne & Wear and Northumberland which, through publications, website and social media, identify the challenges and opportunities our area has, and the steps donors can take to respond. On both the urban and rural parts of our patch, the importance of work,

bq-magazine.co.uk

giving back

opinion

Million up: Colin Smith of Ringtons (right) with North Tyneside Disability Forum growing the local economy and supporting young people has been highlighted. To better address these and other needs, we need to continue to grow in scale and impact, so we can hand on a baton to those who will, one day, mark the Community Foundation’s 50th, 75th and 100th birthdays, and beyond. So, in 2014 we want to encourage business leaders and companies of all types to make a difference. A local focus makes giving effective, tangible and relevant to the area in which a company operates and its employees and customers live. It can also be a great way to engage and develop staff, and to connect a firm

to the wider community of companies and individuals who are already giving locally. And companies that give money to charity may be eligible for Corporation Tax Relief. Thanks to Grigor McClelland’s pioneering work, many an aspiring manager now goes to business school. But here in the North East, his legacy too is that many an aspiring philanthropist – individual or corporate – has a means to give effectively to support local causes. n Rob Williamson is chief executive of Community Foundation Tyne & Wear and Northumberland.

Getting into it For more information about Community Foundation Tyne & Wear and Northumberland visit www.communityfoundation.org.uk. Similar bodies in the south of the region include: Tees Valley Community Foundation (tel 01642 260 860, info@teesvalleyfoundation.org) Middlesbrough and Teesside Philanthropic Foundation (www.teessidecharity.org.uk) Darlington Cares (www.darlingtoncares.co.uk)

communication & transport A crucial period for rail and air communication, and for ongoing expansion of high speed broadband. Lobbying must continue for upgrades to the East Coast Main Line, a fairer approach to Air Passenger Duty and better access to North East ports.

bq-magazine.co.uk opinion

communication & transport

On the road to something better With a little bit of polish, progress achieved over the past 18 months can and will be sustained, says James Ramsbotham

In true fairy tale tradition, the road to economic recovery will be fraught with hidden dangers and pitfalls â&#x20AC;&#x201C; but at least weâ&#x20AC;&#x2122;re on the road. Challenges our firms will face in the coming 12 months will not be removed by the wave of a magic wand; genuine and sustained recovery is not going to be easy. But we are getting there, and the slow but steady growth across the region over the past 18 months is a clear sign

things are improving. It is vital this progress is not derailed. For the last two years, the North East Chamber of Commerce has led the fight for a fairer deal for our region,

and has championed the effort and achievement of our many groundbreaking businesses. The North East is a diamond in the rough. We recognise its potential worth to the UK, but we need

Challenges our firms face in the coming 12 months will not be removed by the wave of a magic wand; genuine and sustained growth wonâ&#x20AC;&#x2122;t be easy

bq-magazine.co.uk

communication & transport

We have the land, resources, skills and enthusiasm to become an economic powerhouse and lead the UK recovery from the front support to help polish it and present it to the world. With a united voice, great strides have been made throughout 2012, with government promising to create a motorway from the capital to Tyneside, to address key traffic pinch points and to look into dualling the A1 through Northumberland. But we still must lobby for essential upgrades to the East Coast Main Line,

a fairer approach to Air Passenger Duty and improved access to our excellent ports. Energy prices present a real challenge to our growth, with the British Chambers of Commerce warning that if they continue to go unchecked then we face a genuine a cost of business crisis. As well as continuing to fight for the region, we must also celebrate its achievements. As a champion for North

opinion

East business, and the region’s largest business membership organisation, NECC naturally welcomes the opportunity to shout about the many successes of our firms. We’re fortunate to have some of the best parts of the economy on our doorstep. Our traditional strengths in manufacturing and engineering continue to underpin our economy. However, after a tough few years, the service sector is coming back strongly despite a few setbacks along the way. NECC’s own Quarterly Economic Survey indicates it is now growing faster than most manufacturers. Growth continues to be our key focus, and accelerating growth in our businesses is paramount to everybody in the current economic climate. Business is stepping up to the mark as we all play our role in trying to rebalance the economy. Under the guidance and support of NECC, companies are engaging with schools, colleges and universities; knocking on the doors of the Local Enterprise Partnership and councils to play a more active role in attracting inward investment and uniting to lobby against unfair procurement legislation. We remain the only English region with a positive balance of payments in exports. At a time when the politicians at the three main party conferences are bemoaning that the UK has become a net importer, the region continues to buck that trend. We have the land, resources, skills and enthusiasm to become an economic powerhouse and lead the UK recovery from the front. So let’s be prepared for another year of hard work, celebration and, hopefully, the happy ending all good stories need. n James Ramsbotham is chief executive of the North East Chamber of Commerce.

bq-magazine.co.uk opinion

communication & transport

Fibre network fires up the economy Farooq Hakim explains how BT is creating a long lasting legacy to the good of businesses in the North East

Farooq Hakim, BT Regional Director, North East Independent research shows that fibre broadband is already providing a major economic boost to local communities. Six out of every 10 of the small and medium size enterprises (SMEs) surveyed said that their business is growing because of the new technology, while more than a quarter have either created or safeguarded jobs as a direct result of the efficiency and innovation that fibre broadband encourages. In addition, the latest Ofcom UK Infrastructure Report has

highlighted the UK’s strong position compared with major EU countries, and the US in particular, against the key government targets of SFBB coverage, take up and overall speed. The report also highlights that most of the growth in coverage results from BT’s continued investment in fibre and recognises that the Broadband UK programme will help to address this going forward. This is good news for the North East as, alongside BT’s commercial rollout, we are making great progress with our Broadband UK partnerships across the region. Go Digital Newcastle, iNorthumberland and Digital Durham are all helping to ensure that even more communities can reap the benefits that fibre technology can bring. Businesses all over the UK now see the benefits of upgrading to fibre broadband, including companies such as BeeBox Systems in Northumberland. Stuart Landreth, a co-founder and director of BeeBox, says:”Superfast fibre broadband has transformed the range and quality of services we can

Sport spins out jobs The success of BT Sport is fantastic news – not only for sports fans. It is also helping to drive fibre broadband take-up, which can only have a positive impact across the region. BT Sport has also safeguarded and created jobs in both its Gosforth Call Centre in Newcastle and its Harton Quay offices in South Shields, with advisors handling sales and customer support calls from BT Sport customers.

Telethons – that’s us BT takes its social responsibilities seriously. It is working with organisations such as the Transformation Trust to help overcome the digital divide, and encourage those first steps to getting online via its Digital Champions programme. BT also provides the technology and support for national telethons such as Children in Need. This year more than 100 staff in the North East gave up their time to staff phones and take donations.

offer and has helped our business go from strength to strength.” We are also delighted to be working with Rothbury, which many will know as a beautiful and remote town of the North East. Yet Rothbury is setting a superfast pace and is on track to become the first community in the UK to roll out fibre broadband using the government’s Rural Community Broadband Fund (RCBF). Working with the iNorthumberland project, this unique partnership brings together the Department for Environment, Food and Rural Affairs (DEFRA), Northumberland County Council, local consultants, the community and BT, and has created a solution to deploy fibre broadband and transform broadband speeds in what is a highly challenging geography. Bringing public, private and community interests together in partnership has made fibre broadband infrastructure development for this isolated, rural town feasible. It stands as a model for what can be achieved in other challenging areas across the UK. n Farooq Hakim is BT’s North East regional director.

bq-magazine.co.uk

We must embrace globalisation and the cross-fertilisation that will make us a better hybrid workforce

bq-magazine.co.uk opinion

communication & transport

Dynamo cracks the IT code A new group has got together to fulfil the maximum potential of the North East’s business software community. Charlie Hoult explains what could result

A new forum called Dynamo, still in its infancy, is already providing a hub for corporate computing in the North East. Run by volunteers, it helps bring together many of the sector’s different strands – skills, collaboration, opportunity and R&D. Focal points exist for many other local business groups – advanced manufacturing, renewables, digital, screen media, start ups, gaming or music. Dynamo’s members felt an organisation was needed to unite the business software community. Perhaps we are too often working ‘head down’ on national clients so not engaging in the regional agenda? But we are ideally placed to help create more, better jobs – for which read ‘careers and prosperity’. The Information Revolution is still in its infancy as our homes, cars and pockets continue to add micro-chips and computer power. The North East is already harnessing many avenues of opportunity, but pitfalls threaten along the way. Everyone knows of Sage, but how many have been to the HQ with 2,000 staff on Newcastle Great Park – running somewhat like Newcastle United with key positions covered by Frenchmen? And have you heard of Scott Logic, which took the biggest Newcastle city centre lease of 2012, when exLehman and Ashington-bred Gary Scott expanded his PhD-heavy firm of software rocket scientists?

Who knows that the NHS has its biggest computer department in Newburn? Or stopped to think about the number of IT staff at Her Majesty’s Revenue and Customs and the Department for Work and Pensions in Benton? Know anything about telematic motor insurance? Insure the Box has grown from zero to 500 staff at Quorum Business Park on Tyneside in under five years. Sky, Tesco Bank, Accenture, P&G, Balfour Beatty – significant service

collaboration – Newcastle healthcare professionals with Nissan? Oil industry with ship insurance? Already, we see a global workforce beating a path to software jobs in the North East, and locals in key IT positions at corporations (Burberry, BA, UBS). We must embrace globalisation and the cross-fertilisation that will make us a better hybrid workforce. As ever, this region needs to fly the flag – not just to lead local self-esteem, but to fill the order book worldwide. We

We believe Dynamo can make a difference to the chances of continued growth and success here centres, all, in the North East. Student Loan Company? No fewer than 500 in Darlington. Try some of these world-beating systems in our midst: Gearbox testing software, Rightmove, Software for social housing, Online identity checking, US prisons, Norwegian aluminium smelting, Just Dance wii games... all headquartered within 20 minutes of the Tyne Bridge. Dynamo’s roots are strong, even if the fruit has yet to become clearly visible. All these firms are seeing growth but our workforce must keep up with change. Apprenticeships are vital; the universities and education system must embrace more coding. And as competition becomes more global, new innovation will come from

are ‘the Germany of Great Britain’ with our trade surplus, continuing stream of engineering heroes and our can-do workforce. How to leverage this for further growth? We believe Dynamo can make a difference to the chances of continued growth and success here. Look out for us, contact us and, to paraphrase JFK, ask not what Dynamo can do for you, but what you can do for Dynamo? n Charlie Hoult is a co-founder of Dynamo and chairman of Opencast Software, a corporate software business, and Tomorrow People, a digital recruitment firm. He runs Hoults Yard, a business park in Byker with over 60 client firms and 500 staff.

bq-magazine.co.uk

communication & transport

overview

All change in 2014 Ports are in good shape but big question marks needing early and positive answers hang over railways and air travel in the North East, says Brian Nicholls

It’s going to be a critical 2014 for the region’s rail and air links. A new operator will be announced next October to run East Coast Main Line. Fierce government pressure will be applied throughout the year to advance the HS2 ultrafast express project that the North East would not be part of for decades (if at all) though its taxpayers, like other taxpayers, will bear much of the estimated £40bn or more. A torrent of indulgent spending is already under way. And the long-term future for the troubled Durham Tees Valley Airport should become clearer. The new operator for the East Coast Main Line looks dangerously like

Directly Operated Railways has paid almost twice as much back to the treasury as its privately-run predecessor

remaining the political football it is at present. Should it continue to be state-run, or should it be sold back to the private sector which has previously failed it twice over before? From 1996 to 2005 the service was run successfully by GNER (alias Sea Containers, a Bermuda registered business). It got a new seven year franchise in 2005 with prospects of a three year extension but financial problems of its parent company, caused partly by overbidding £1.3bn to get onto the line, led to bankruptcy and the stripping of its tender. GNER continued on an interim basis until 2007 when National Express was given a seven years-plus franchise. Again through an overambitious bid, this time of £1.4bn, the private contractor defaulted. Four years ago the state-funded Directly Operated Railways took over. Turnover has risen and more than £800m has been returned to the taxpayer. Directly Operated Railways has been paying almost twice as much back to the Treasury as its privately run

predecessor, and a campaign to give it the next franchise that will run 11 years has drawn 20,000 signatures. But the government is determined to privatise it once more – “to refresh it”. Virgin Money boss Sir Richard Branson is “very keen” to get the job, which would start in February 2015. Eurostar cross-Channel company is also expected to bid – jointly with Keolis. The new franchise would start in February 2015. Keolis, like Eurostar majority owned by the French railway company SNCF, already operates four UK franchises including the TransPennine express serving the North East. Supporters of Directly Operated Railways may justifiably ask why the government might rule out a British public operator in favour of a French public operator already firmly entrenched in the UK? Also, since it is often felt desirable to have a private sector company compete with a public one to establish benchmarks, why not vice-versa – especially if the public one is doing a good job financially? n

bq-magazine.co.uk overview

communication & transport

Case still unproven A weakness of successive UK governments in recent years has been their failure to consider air and rail communication in tandem. The main UK airport, Heathrow, is increasingly unfit for purpose and a high speed rail project, HS2, is proposed that looks increasingly impossible to defend financially – particularly because the claim that it will benefit regional economies is not standing up to scrutiny. It might if it were to be built from the North downwards. But the plan is to have the 250mph trains running between London and Birmingham by 2026 and between Manchester and Leeds by 2032. The North East has been an afterthought, prompting one to ask that even if benefits to all the North were true, what investment would remain for the North East five years after Leeds and Manchester got the lion’s share? Supporting bodies in the North East seem largely motivated by an “us too” consideration. If HS2 is inevitable, the North East should be included. But ordinary public opinion in the region and elsewhere, polls show, is that only one in five support it. A contributory factor may be the undertones echoing deceptions of the public over Iraq: too much PR spin, questionable arguments, burial of facts weakening the proposal, and too much moving of goal posts. For example, the proclaimed saving of 33 minutes on journeys between London and Newcastle comes down to 16 when you factor in the faster speeds that will be attained by HS1 trains about to be built at Newton Aycliffe.

Even 16 minutes saved may also be lost because HS2s will not necessarily use existing halting places and will put a strain on existing transport connections. Once the faster times claim was forcefully disputed the argument for was switched to capacity, and it was said upgrading prevailing lines would not meet growing capacity needs, whereas they could with longer station platforms and the introduction of double-deck carriages as used in other countries. In any case, an early estimate

behind the times and obsolete even as it was introduced. Even now a high speed service between Lisbon and Madrid has been abandoned. Bullet trains linking Holland and Belgium were also abandoned in technical chaos after two months. And a similar Los Angeles and San Francisco project is sinking into financial anarchy. On the day Prime Minister David Cameron said doubters lacked vision, the government announced a doubling of the cost of taxpayer-funded aircraft carriers, and this when the national

Why should the public enthuse when barely half of MPs voted at the fifth attempt to get HS2 accepted? has indicated the capacity claims made for HS2 are suspect. It is further argued upgrading existing lines would mean 14 years of weekend closures, whereas the whole East Coast line was electrified with five and a half years of closures and HS2 itself will require seven years of closures. Business travellers will be absolutely vital to defray the still uncertain cost, whereas enthusiasm for the project is diminishing from that quarter already since the government learned that, contrary to its arguments, many business people often work as easily on existing trains as at the office, a convenience likely to be curtailed by faster times proposed. Why should the general public enthuse when barely half of all their MPs voted at the fifth attempt to get HS2 accepted? Perhaps the other half accept that HS2 might be 30 years

debt is growing. A firm cost cannot be put on HS2 – £40bn is widely accepted, but double that has been speculated. For six years from 2015, HS2 would take 42% of all money spent on the railways. The National Audit Office has pointed out that twice already the benefit to cost ratio has contained errors in respect of benefit to regional economies. Lord Adonis, though in favour, is concerned about management abilities to contain costs. Edward Twiddy, director of the North East Local Enterprise Partnership, seems to have voiced the view of a majority in describing it as “bonkers on the biggest scale possible.” And while it’s true that Hitachi, which builds Japan’s bullet trains, could build HS2 trains at Newton Aycliffe, it’s also true it could probably build something equally practical for the next generation, but less costly. n

bq-magazine.co.uk

communication & transport

overview

USA, here we must come Newcastle International Airport handled 4.4m passengers in 2012 and hopes almost to double that figure by 2030. Given the North East’s outstanding qualities as an exporter, the think tank IPPR North, and others, believe a daily North East flight to the USA is now a must. The argument rests, justifiably, on benefits to the North East economy since Emirates flights were introduced daily between Newcastle and Dubai in 2007. Emirates may step up this service to double daily flights within two years. By March 2013 a 35% leap in passenger numbers had been seen year on year. The service also handles more than 200 tonnes of cargo in and out of Newcastle monthly – a quadrupling since the service began. The Dubai flights give convenient access also to more than 100 other destinations, and may since 2007 have saved North East firms about £20.3m in travel time equivalent. Meanwhile, a new twice daily return flight to Dublin, started last October by Aer Lingus Regional, gives Newcastle passengers indirect access to New York, Chicago, Boston, Orlando and San Francisco from Dublin. From next March also, a double daily service by Bmi will connect Newcastle to Europe’s power base, Brussels. Also from March twice-daily flights, six days a week, will be operated between the North East and Gatwick aboard aircraft of Easyjet, which is taking over the route from Flybe. It will be Easyjet’s 15th from Newcastle. Jet2.com has announced two new holiday destinations from 2014,

A think tank believes a daily North East flight to the USA is now a must. The argument rests on the benefits to the region’s economy covering Fuerteventura and Madeira from Newcastle. Captain Thomas Holland and First Officer James Haskins (pictured above) toasted the new routes with a slice of Madeira cake. The story is less happy at loss-making Durham Tees Valley Airport. But the Peel Holdings management there is laying plans for revival over a decade. It proposes to keep scheduled services to Aberdeen and Amsterdam going. To that end it wants to build up to 400 homes on part of its land, to fund developments such as a new terminal building, more aircraft hangars, warehouses and offices. A new fire training centre is planned, as well as an aircraft demolition operation. It is hoped rent from an expanding Northside Employment Park would

wipe out the business’s £4m loss. But the housing proposal is meeting public objections and the entire project is under consultation. Peel also hopes to get government backing for a Southside Employment Park, ultimately creating up to 3,800 jobs. The airport has endured five bad years since losing its Heathrow connection. It has announced an end to holiday charter business there, bar a link with Jersey. Meanwhile, it has failed twice to get funding from the Regional Growth Fund. A 12% drop in passenger numbers sees the total now at 168,756 and turnover has fallen to £4.82m against £5.1m the year before. Peel believes a new road can unlock other phases of development, open up 2m sq ft of brownfield land, draw in £40m of private investment and create 1,400 jobs. Local authorities, the North East Chamber of Commerce and Tees Valley LEP have cautiously welcomed Peel Holdings’ moves in principle. But acceptance remains some way off. Ironically, DTVA is particularly convenient for Wilton, where about 70% of businesses are foreign. n

bq-magazine.co.uk

communication & transport

overview

NEWCASTLE AIRPORT: AS PROJECTED 87,500

6.1

72,500

4.4

2012 2021

62,200

2030

AIRCRAFT MOVEMENTS

(millions)

passenger numbers

8.5

2012

2021

2030

bq-magazine.co.uk

communication & transport

overview

Well connected and speedy PD Ports claims to be the UK’s best connected feeder port, Port of Tyne the UK’s fastest growing deep-sea port. Over a decade Port of Tyne has pumped more than £120m into developing its business in cargo, car terminals, cruise and ferry, logistics and property. It has been named North East Business of the Year and is the UK’s biggest vehicle-exporting point. It has set £180m aside to expand wood pellet handling, and has shown a third year of cargo volumes almost doubling. Brookfield Ports, which has both PD Ports and Hartlepool port, has invested £16.7m in upgrading the container terminal at Teesport. The deepwater port employs 650 to meet the needs of more than 5,000 vessels calling yearly, and handling millions of tonnes of container, ro-ro, steel and bulk cargoes. A new weekly multi-modal logistics service at Teesport connects the North East with Iberia, Sweden and Poland. It is run by new customer MacAndrews, part of the CMA-CGM Group.

Port of Tyne has been named North East Business of the Year and is the UK’s biggest vehicleexporting point

Ready for action: Port of Tyne got another crane during 2014. It arrived fully assembled from Liebherr in Germany. The £3.5m mobile crane will handle bulk and conventional cargoes, as well as outsize equipment for subsea and offshore At Hartlepool, PD Ports recently welcomed the world’s first purpose built wind turbine installation vessel – the first time a vessel that size has been handled there. On the Wear, Port of Sunderland has seen profit restored as commercial vessels berthing rose 84%. Offshore

energy firms are setting up there too. Imports arriving at Sunderland, the UK’s second biggest municipally owned port, include timber, non-ferrous metals, steel, aggregates and refined oil products. Exports include agricultural limestone, chemicals and maritime cranes. n

bq-magazine.co.uk overview

communication & transport

Heads in the cloud For many companies the current IT and communication dilemma is whether to take to cloud computing â&#x20AC;&#x201C; outsourcing their computer services in a way akin to how electricity supplies are outsourced. It can be used without worry about where the service is from, and they only pay for what they have consumed. Lots of room for growth in the UK remains for companies to see how it can help them implement projects faster for customers using fewer resources. Cloud computing is being used as

applications or services offered over the internet. Companies can use it by requesting more services when tackling a specific project, then switch off when itâ&#x20AC;&#x2122;s no longer required. They are promised economies of scale, so reducing budgets and increasing their flexibility

in technology. However, it is still an evolving service and security is still a reservation many have. In fact, a majority are still reluctant to use it for sensitive and critical business information. But a number of industry specialists say the risks are no greater than within their own network. n

Companies opting for cloud computing are promised economies of scale, so reducing budgets and increasing their flexibility in technology

bq-magazine.co.uk

whoâ&#x20AC;&#x2122;s who Helen Ager

James Allen

EXECUTIVE PARTNER MAIN BUSINESS: Legal

MANAGING DIRECTOR MAIN BUSINESS: Creative marketing communications DWF, Great North House, Sandyford Road, Newcastle upon Tyne, NE1 8ND 0191 233 9700 helen.ager@dwf.co.uk www.dwf.co.uk

Guerilla, 4 St James Street, Newcastle upon Tyne, NE1 4NF 0191 261 9799 james@guerilla.co.uk www.guerilla.co.uk

Katherine Aitken

John Anderson CBE

EVENT PRODUCTION MANAGER MAIN BUSINESS: Audio visual & event production

CHAIRMAN MAIN BUSINESS: Business space & consultancy services

Big Purple Productions Ltd, Unit 36 Stella Gill Industrial Estate, Pelton Fell, Chester Le Street, DH2 2RQ 0191 388 0988 katherine@bigpurple-productions.com

North East Business and Innovation Centre (BIC), Wearfield, Enterprise Park East, Sunderland, SR5 2TA 0191 516 6200 john.anderson@bicne.co.uk www.ne-bic.co.uk

Shelagh Alderson

Sandy Anderson

HOSPITAL DIRECTOR MAIN BUSINESS: Hospital

CHAIRMAN MAIN BUSINESS: Public and private sector Local Enterprise Partnership for Tees Valley

Spire Washington Hospital, Picktree Lane, Rickleton, Washington, NE38 9JZ 0191 415 1272 info@spirewashington.com www.spirewashington.com

Tees Valley Unlimited, Cavendish House, Teesdale Business Park, Stockton on Tees, Tees Valley, TS17 6QY 01642 524 400 www.teesvalleyunlimited.gov.uk

Chris Alexander

Lee Andrews

CHIEF OPERATING OFFICER MAIN BUSINESS: Events

DIRECTOR MAIN BUSINESS: Recruitment

Sunderland Live, Sunderland Software Centre, Tavistock Place, Sunderland, SR1 1PB 0191 561 8412 info@sunderlandlive.co.uk www.sunderlandlive.co.uk

Solutions Recruitment, Yorkshire Chambers, 112-114 Pilgrim Street, Newcastle upon Tyne, NE1 6SQ 0191 221 0402 / 0779 183 6143 lee@solrecruit.co.uk www.solrecruit.co.uk

bq-magazine.co.uk

who’s who Vinay Bedi

David Armstrong DIRECTOR MAIN BUSINESS: Commercial management consultancy

EXECUTIVE DIRECTOR MAIN BUSINESS: Wealth management UBS Wealth Management, 2 St James’ Gate, Newcastle upon Tyne, NE4 7JH 0191 211 1015 vinay.bedi@ubs.com www.ubs.com/uk

Armstrong Consultancy Services (ACSL) Ltd, Wellington House, Westminster Business Centre, Wynyard Business Park, Wynyard, Teesside, TS22 5TB +44(0) 1740 665 010 / +44(0) 793 902 8044 dave@armstrongcsl.co.uk www.armstrongcsl.co.uk

Richard Blackett

Mark Armstrong DIRECTOR MAIN BUSINESS: Insurance broking & risk management

DIRECTOR MAIN BUSINESS: Independent financial advisers. Portfolio management services, min. investment £70k

Todd & Cue Ltd, Kingfisher House, Kingsway, Team Valley, Gateshead, Tyne and Wear, NE11 0JQ 0191 482 0050 mark.armstrong@toddcue.com www.toddcue.com

Dame Margaret Barbour CHAIRMAN MAIN BUSINESS: Manufacturer & retailer of casual clothing

Blackett Walker Ltd, BW House, 2/3 Park Road, Gosforth Business Park, Newcastle, NE12 8DG 0191 653 1025 info@blackett-walker.co.uk www.blackett-walker.co.uk

Jonathan Blair MANAGING PARTNER MAIN BUSINESS: Law Firm Bond Dickinson LLP, St. Ann’s Wharf, 112 Quayside, Newcastle upon Tyne, NE1 3DX 0845 415 0000 info@bonddickinson.com www.bonddickinson.com

J Barbour & Sons Ltd, Simonside, South Shields, Tyne & Wear, NE34 9PD 0191 455 4444 info@barbour.com www.barbour.com

Shawn Bone

Mike Baxter

CORPORATE FINANCE DIRECTOR MAIN BUSINESS: Corporate finance

TAILORING MANAGER MAIN BUSINESS: Retail Psyche, 175 - 187 Linthorpe Road, Middlesbrough TS1 4AG 01642 707290 mbaxter@psyche.co.uk www.psyche.co.uk

Cavu Corporate Finance, City Quadrant, 11 Waterloo Square, Newcastle upon Tyne, NE1 4DP 0191 255 7772 shawnbone@cavucf.com www.cavucf.com

THE UK’S PREMIER RETAIL DESTINATION

bq-magazine.co.uk

who’s who Gary Boon

Jonathan Brown

CEO MAIN BUSINESS: Digital strategy, mobile, web development and digital marketing

MANAGING DIRECTOR MAIN BUSINESS: Wealth management UBS Wealth Management, 2 St James’ Gate, Newcastle upon Tyne, NE4 7JH 0191 211 1003 jonathan.brown@ubs.com www.ubs.com/uk

Shout Digital, Keel House, Garth Heads, Newcastle upon Tyne, NE1 2JE 0191 231 2377 gary@shoutdigital.com www.shoutdigital.com

Dr Harry Bradbury

Simon Brown

CHAIRMAN AND CEO MAIN BUSINESS: Energy company - unconventional gas

ASSOCIATE PARTNER MAIN BUSINESS: Head of charity and not-for-profit

Five-Quarter, Rotterdam House, 116 Quayside, Newcastle Upon Tyne, NE1 3DY 0191 206 4092 hbradbury@five-quarter.com www.five-quarter.com

Tait Walker Chartered Accountants, Bulman House, Regent Centre, Gosforth, Newcastle upon Tyne, NE3 3LS 0191 285 0321 simon.brown@taitwalker.co.uk www.taitwalker.co.uk

Andrew Bradley

Sean Bullick

SHOPPING CENTRE DIRECTOR MAIN BUSINESS: Real estate

CHIEF EXECUTIVE MAIN BUSINESS: Business improvement district company

Land Securities, The Bridges, Sunderland, Tyne and Wear, SR1 3DR 0191 515 4880 andrew.bradley@landsecurities.com www.landsecurities.com

Newcastle NE1 Ltd, Suite D3a, Milburn House, Dean Street, Newcastle upon Tyne, NE1 1LE 0191 235 7094 sean.bullick@newcastlene1ltd.com www.newcastlene1ltd.com

Mick Brophy

Margaret Byrne

MANAGING DIRECTOR OF BUSINESS, INNOVATION AND DEVELOPMENT MAIN BUSINESS: Education and training

CHIEF EXECUTIVE MAIN BUSINESS: Football club

Gateshead College, Quarryfield Road, Baltic Business Quarter, Gateshead, NE8 3BE 0191 490 2212 mick.brophy@gateshead.ac.uk www.gateshead.ac.uk

Sunderland Association Football Club, Stadium of Light, Sunderland, SR5 1SU 0871 911 1200 enquiries@safc.com www.safc.com

bq-magazine.co.uk

who’s who Professor Bernie Callaghan

Stephen Catchpole

DEAN MAIN BUSINESS: Higher education

MANAGING DIRECTOR MAIN BUSINESS: Public and private sector Local Enterprise Partnership for Tees Valley

Faculty of Business and Law, University of Sunderland, Sir Tom Cowie Campus, Sunderland, SR6 0DD 0191 515 3226 bernie.callaghan@sunderland.ac.uk www.sunderland.ac.uk/faculties/bl/

Tees Valley Unlimited, Cavendish House, Teesdale Business Park, Stockton on Tees, Tees Valley, TS17 6QY 01642 524 400 www.teesvalleyunlimited.gov.uk

Vaun Campbell

Jacqui Chapman

WORKS DIRECTOR MAIN BUSINESS: Power generation

DIRECTOR MAIN BUSINESS: Events

Lynemouth Power Limited, Ashington, Northumberland, NE63 9NW 01670 844 447 vaun.campbell@lynemouthpower.com www.lynemouthpower.com

Jacqui Chapman Events Ltd (JC Events), 2.26 One Trinity Green, Eldon Street, South Shields, NE33 1SA 07734 155 928 Jacqui@eventsjc.co.uk www.eventsjc.co.uk

Paolo Capaldi

Nicki Clark

MARKETING MANAGER MAIN BUSINESS: Retail

CHIEF OPERATING OFFICER MAIN BUSINESS: Business improvement, supply chain development, events & publishing

Psyche, 175 - 187 Linthorpe Road, Middlesbrough TS1 4AG 01642 707284 pcapaldi@psyche.co.uk www.psyche.co.uk

BE Group, Spectrum 6, Spectrum Business Park, Seaham, SR7 7TT 0191 426 6179 nicki.clark@be-group.co.uk www.be-group.co.uk

THE UK’S PREMIER RETAIL DESTINATION

Stephen Carmichael

Steve Cochrane

RELATIONSHIP DIRECTOR MAIN BUSINESS: Provides Corporate Banking services to trading businesses between £25m and £50m turnover

MANAGING DIRECTOR MAIN BUSINESS: Retail

Santander UK, Tyne & Wear Corporate Banking Centre, Level 9, Baltic Place, Gateshead, Tyne & Wear, NE8 3AE 07808 397625 Stephen.carmichael@santander.co.uk www.santander.co.uk

Psyche, 175 - 187 Linthorpe Road, Middlesbrough TS1 4AG 01642 888333 steve@psyche.co.uk www.psyche.co.uk

THE UK’S PREMIER RETAIL DESTINATION

bq-magazine.co.uk

who’s who Linda Conlon

Jon Cummins

CHIEF EXECUTIVE MAIN BUSINESS: Public engagement in science and the support of world class science in the region

MANAGING DIRECTOR, LEARNING AT WORK; COMMERCIAL DIRECTOR, LEARNING CURVE GROUP MAIN BUSINESS: Specialist education publisher

Centre for Life, Times Square, Newcastle upon Tyne, NE1 4EP 0191 243 8200 linda.conlon@life.org.uk www.life.org.uk

Learning at Work, part of Learning Curve Group, Unit 51-53 Innovation House, 26 Longfield Road, South Church Enterprise Park, Bishop Auckland, DL14 6XB 0845 094 9110 jon.cummins@learning-work.co.uk www.learning-work.co.uk

David Coppock

Martyn Cuthbert

REGIONAL DIRECTOR, UK TRADE & INVESTMENT MAIN BUSINESS: UK government

MANAGING DIRECTOR MAIN BUSINESS: IT business solutions

UK Trade & Investment, Moongate House, 5th Avenue Business Park, Team Valley, Gateshead, NE11 0HF 0191 497 8575 david.coppock@ukti.gsi.gov.uk www.ukti.gov.uk

Ontrac Ltd, Baltic Place, South Shore Road, Gateshead Quays, Newcastle upon Tyne, NE8 3AE 0191 477 4951 enquiries@on-trac.co.uk www.on-trac.co.uk

Peter Cromarty

Glyn Davison

HEAD OF SALES MAIN BUSINESS: Asset based lender

MANAGING DIRECTOR AND GROWTH COACH MAIN BUSINESS: Accountancy, tax and business advisory

Bibby Financial Services, 5A Tower House, St Catherine’s Court, Sunderland Enterprise Park, Sunderland, SR5 3XJ 0191 516 5925 pcromarty@bibbyfinancialservices.com www.bibbyfinancialservices.com

Harlands Accountants LLP, Prospect House, Prospect Business Park, Leadgate, County Durham, DH8 7PW 01207 581 717 glyn.davison@harland.co.uk www.harlandsaccountants.co.uk

Stevan Cue

Pat Dellow

CHAIRMAN MAIN BUSINESS: Insurance broking & risk management

AREA COMMERCIAL DIRECTOR MAIN BUSINESS: Commercial banking

Todd & Cue Ltd, Kingfisher House, Kingsway, Team Valley, Gateshead, Tyne and Wear, NE11 0JQ 0191 482 0050 stevan.cue@toddcue.com www.toddcue.com

HSBC Bank plc, Maingate, Kingsway North, Team Valley Trading Estate, Gateshead, NE11 0BE 07767 006 679 patdellow@hsbc.com www.hsbc.com

bq-magazine.co.uk

who’s who Nick Devitt

Samantha Doyle

DESIGN ASSOCIATE MAIN BUSINESS: Business support

AREA SALES MANAGER - NUFC/TYNE & WEAR MUSEUMS MAIN BUSINESS: Conference and banqueting venues

Design Council, Abbotts Hill, Baltic Business Quarter, Gateshead, NE8 3DF 0191 499 8373 / 07714 294 242 nick.devitt@associate.designcouncil.org.uk www.designcouncil.org.uk

Sodexo Prestige, NUFC, St. James Park, Newcastle upon Tyne, NE1 4ST 0191 201 8525 samantha.doyle@sodexo.com www.nufc.co.uk www.twmuseums.co.uk

John Dickson

David Dunn

GROUP CHAIRMAN MAIN BUSINESS: Civil engineering. Construction contractor

CHIEF EXECUTIVE MAIN BUSINESS: Driving and supporting the growth of the software industry in the North East

Owen Pugh Group, Dudley, Cramlington, Northumberland, NE23 7PR 0191 250 0315 enquires@owenpugh.com www.owenpugh.com

Sunderland Software Centre, Tavistock Place, Sunderland, SR1 1PB 0845 872 8575 david.dunn@sunderlandsoftwarecity.com www.sunderlandsoftwarecity.com

Professor Rob Dixon

Aidan Dunstan

DEAN OF DURHAM UNIVERSITY BUSINESS SCHOOL. PROFESSOR IN MANAGEMENT ACCOUNTING MAIN BUSINESS: Education

EXECUTIVE DIRECTOR MAIN BUSINESS: Wealth management UBS Wealth Management, 2 St James’ Gate, Newcastle upon Tyne, NE4 7JH 0191 211 1006 aidan.dunstan@ubs.com www.ubs.com/uk

Durham University Business School, Mill Hill Lane, Durham, DH1 3LB 0191 334 5200 deans.office@durham.ac.uk www.durham.ac.uk/business

Judith Doyle

Lee Durham

PRINCIPAL & CHIEF EXECUTIVE MAIN BUSINESS: Education and training

PARTNER AT DURHAMLANE MAIN BUSINESS: Outsourced sales, business development & sales recruitment

Gateshead College, Quarryfield Road, Baltic Business Quarter, Gateshead, NE8 3BE 0191 490 2200 judith.doyle@gateshead.ac.uk www.gateshead.ac.uk

durhamlane, Nº13 Windsor Terrace, Newcastle Upon Tyne, NE2 4HE 07813 989 457 / 0191 481 3800 lee@durhamlane.co.uk www.durhamlane.co.uk

bq-magazine.co.uk

who’s who Paul Dutton

Anne Elliott

SENIOR OFFICE PARTNER MAIN BUSINESS: International law firm

SOLICITOR & MARKETING PARTNER MAIN BUSINESS: Legal services

Eversheds LLP, Central Square South, Orchard Street, Newcastle upon Tyne, NE1 3XX 0845 497 9797 paulnsdutton@eversheds.com www.eversheds.com

Latimer Hinks Solicitors, 5-8 Priestgate, Darlington, DL1 1NL 01325 341 500 aee@latimerhinks.co.uk www.latimerhinks.co.uk

Rachel Eade

Tim Evans

NATIONAL AUTOMOTIVE SECTOR LEAD MAIN BUSINESS: Manufacturing business support, supply chain specialist

PARTNER MAIN BUSINESS: Leading real estate consultants Knight Frank LLP, St Ann’s Quay, 124 Quayside, Newcastle upon Tyne, NE1 3BD 0191 221 2211 tim.evans@knightfrank.com www.knightfrank.co.uk

Wolverhampton Science Park, Wolverhampton, WV10 9TG rachel.eade@mymas.org 07968 025 406 www.mymas.org

Linda Edworthy

Mark Fahy

DIRECTOR OF POLICY AND STRATEGY MAIN BUSINESS: Public and private sector Local Enterprise Partnership for Tees Valley

HEAD OF UK SMALL & MID-CAP COMPANIES MAIN BUSINESS: Financial services

Tees Valley Unlimited, Cavendish House, Teesdale Business Park, Stockton on Tees, Tees Valley, TS17 6QY 01642 524 400 www.teesvalleyunlimited.gov.uk

London Stock Exchange plc, 10 Paternoster Square, London, EC4M 7LS 07795 257 517 mfahy@lseg.com www.londonstockexchange.com

Andrew Elliot

Professor Peter Fidler

EXECUTIVE DIRECTOR MAIN BUSINESS: Wealth management

VICE-CHANCELLOR AND CHIEF EXECUTIVE MAIN BUSINESS: Higher education

UBS Wealth Management, 2 St James’ Gate, Newcastle upon Tyne, NE4 7JH 0191 211 1013 andrew.elliot@ubs.com www.ubs.com/uk

University of Sunderland, Edinburgh Building, City Campus, Chester Road, Sunderland, SR1 3SD 0191 515 2036 peter.fidler@sunderland.ac.uk www.sunderland.ac.uk

bq-magazine.co.uk

whoâ&#x20AC;&#x2122;s who Brendan Flattery

Brian Foreman

CEO UK & IRELAND MAIN BUSINESS: Global provider of business management software

CORPORATE DIRECTOR MAIN BUSINESS: Corporate banking Barclays, 71 Grey Street, Newcastle upon Tyne, NE99 1JP 07500 891071 brian.foreman@barclays.com www.barclays.com/corporatebanking

Sage Group Plc, North Park, Newcastle Upon Tyne, NE13 9AA 0191 294 3000 brendan.flattery@sage.com www.sage.com

Alan Fletcher

David Foster

MANAGING PARTNER MAIN BUSINESS: Law firm/professional services

MANAGING DIRECTOR MAIN BUSINESS: Asset and motor vehicle finance

Square One Law LLP, Anson House, The Fleming Business Centre, Burdon Terrace, Jesmond, NE2 3AE 0843 224 7900 alan.fletcher@squareonelaw.com www.squareonelaw.com

Anglo Scottish Asset Finance Ltd, 12 - 14 Lumley Court, Drum Industrial Estate,Chester Le Street, Durham, DH2 1AN 0845 1111 070 david@angloscottishfinance.co.uk www.angloscottishfinance.co.uk

Chris Ford

Andy Foulds

MANAGING DIRECTOR MAIN BUSINESS: Precision machining and pressing of components and assemblies for a range of industries

COMMERCIAL DIRECTOR MAIN BUSINESS: Airport/aviation Durham Tees Valley Airport, Darlington, Tees Valley, DL2 1LU 01325 331 003 av@dtva.co.uk www.dtva.co.uk

Ford Aerospace Limited & Ford Component Manufacturing Limited, East Side, Tyne Dock, South Shields, Tyne & Wear, NE33 5ST 0191 454 0141 chris.ford@ford-aerospace.com www.ford-aerospace.com

Geoff Ford MBE

Hilary French

CHAIRMAN MAIN BUSINESS: Precision machining and pressing of components and assemblies for a range of industries

HEADMISTRESS MAIN BUSINESS: Education

Ford Aerospace Limited & Ford Component Manufacturing Limited, East Side, Tyne Dock, South Shields, Tyne & Wear, NE33 5ST 0191 454 0141 geoff.ford@ford-aerospace.com www.ford-aerospace.com

Central Newcastle High School GDST, Eskdale Terrace, Jesmond, Newcastle upon Tyne, NE2 4DS 0191 281 1768 cnhs@cnh.gdst.net www.newcastlehigh.gdst.net

bq-magazine.co.uk

whoâ&#x20AC;&#x2122;s who Bernard Garner

Ian Gilthorpe

DIRECTOR GENERAL MAIN BUSINESS: Public transport services in Tyne & Wear

SENIOR PARTNER MAIN BUSINESS: Law firm / professional services

Nexus, Nexus House, 33 St James Boulevard, Newcastle, NE33 4AX 0191 202 0747 customerservices@nexus.org.uk www.nexus.org.uk

Square One Law LLP, Anson House, The Fleming Business Centre, Burdon Terrace, Jesmond, NE2 3AE 0843 224 7900 ian.gilthorpe@squareonelaw.com www.squareonelaw.com

Martin George

Dr Simon Goon

HEADMASTER MAIN BUSINESS: Education and learning

MANAGING DIRECTOR MAIN BUSINESS: Business support

Durham School Quarryheads Lane, Durham City, DH1 4SZ 0191 386 4783 hmsec@durhamschool.co.uk www.durhamschool.co.uk

Business Durham, Northumbria House, Aykley Heads, Durham, DH1 5TS 03000 265 510 simon.goon@businessdurham.co.uk www.businessdurham.co.uk

Robin Ghurbhurun

Alan Gowling

DEPUTY PRINCIPAL MAIN BUSINESS: Education and training

DIRECTOR - TYNE AND WEAR MAIN BUSINESS: Business banking

Newcastle College, Rye Hill House, Rye Hill Campus, Scotswood Road, Newcastle, NE4 7SA 0191 200 4767 robin.ghurbhurun@ncl-coll.ac.uk www.newcastlecollege.co.uk

Natwest, 1 Trinity Gardens, 2nd Floor, Broadchare, Quayside, Newcastle upon Tyne, NE1 2HF 07788 567 340 alan.gowling@rbs.co.uk www.natwest.com/ahead

Steve Gibson

Michael Grayson

PRINCIPAL MAIN BUSINESS: Education

DIRECTOR MAIN BUSINESS: Recruitment

Newcastle Sixth Form College, Westmorland Road, Newcastle upon Tyne, NE4 7SA 0191 272 1001 www.newcastlesixthformcollege.ac.uk

Solutions Recruitment, Yorkshire Chambers, 112-114 Pilgrim Street, Newcastle upon Tyne, NE1 6SQ 0191 221 0402 / 0773 628 8278 michael@solrecruit.co.uk www.solrecruit.co.uk

bq-magazine.co.uk

who’s who Alasdair Greig

Jack Hanwell

DIRECTOR MAIN BUSINESS: Venture capital

MANUFACTURING SECTOR DEVELOPMENT MANAGER MAIN BUSINESS: Manufacturing supply chain development

Northstar Ventures, 5th Floor, Maybrook House, 27-35 Grainger Street, Newcastle upon Tyne, NE1 5JE 0191 229 2770 Alasdair.greig@northstarventures.co.uk www.northstarventures.co.uk

South Tyneside Manufacturing Forum, One Trinity Green, Eldon Street, South Shields, NE331SA 0191 481 3480 jack.hanwell@st-mf.co.uk www.st-mf.co.uk

Sarah Hall

Phil Harburn

MANAGING DIRECTOR MAIN BUSINESS: PR and marketing

CREATIVE DIRECTOR MAIN BUSINESS: Print and design

Sarah Hall Consulting, 11 Arcot Avenue, Whitley Bay, Tyne & Wear, NE25 9DX 07702 162 704 / 0191 289 5834 sarah@sarahhallconsulting.co.uk www.sarahhallconsulting.co.uk

Mt Print and Design, North Park House, Whessoe Road, Darlington, DL3 0YL 01325 463 171 phil.harburn@mtprint.co.uk www.mtprint.co.uk

Derrick Halliwell

Dr Colin Herron

GROUP MANAGING DIRECTOR MAIN BUSINESS: Security solutions, systems and services

MANAGING DIRECTOR MAIN BUSINESS: Low carbon vehicles / automotive

The Protector Group Limited, Protector House, Station Approach, Team Valley Trading Estate, Gateshead, NE11 0ZF 0800 316 1144 derrick.halliwell@protectorsecurity.co.uk protectorsecurity.co.uk

Zero Carbon Futures, Skills Academy for Sustainable Manufacturing and Innovation, Washington Road, Sunderland, SR5 3HE 0191 490 2382 colin.herron@gateshead.ac.uk www.zerocarbonfutures.co.uk

Darren Hankey

Gary Hindmarch

PRINCIPAL & CHIEF EXECUTIVE MAIN BUSINESS: Further and higher education

PRINCIPAL (SOUTH SHIELDS MARINE SCHOOL) MAIN BUSINESS: World class marine and nautical training

Hartlepool College of Further Education, Stockton Street, Hartlepool, TS24 7NT 01429 295 000 dhankey@hartlepoolfe.ac.uk www.hartlepoolfe.ac.uk

South Shields Marine School, South Tyneside College, Westoe Campus, St George’s Avenue, South Shields, Tyne & Wear, NE34 6ET 0191 427 3900 gary.hindmarch@stc.ac.uk www.stc.ac.uk

bq-magazine.co.uk

who’s who Lorraine Holmes

Sharon Howey

AREA DIRECTOR OF MANUFACTURING ADVISORY SERVICE – NORTH & WEST ENGLAND MAIN BUSINESS: Group CEO of WMMC, business and consultancy support services

CORPORATE SALES DEVELOPMENT MANAGER MAIN BUSINESS: Premier league football club Newcastle United Football Club, St James’ Park, Newcastle upon Tyne, NE1 4ST 0844 372 1892 sharon.howey@nufc.co.uk www.nufc.co.uk

Wolverhampton Science Park, Wolverhampton, WV10 9TG lorraine.holmes@mymas.org 01902 838 300 www.mymas.org

Simon Honeywood

Matthew Hunt

CREATIVE DIRECTOR MAIN BUSINESS: Digital. Design. Brand

PORT DIRECTOR MAIN BUSINESS: Port and marine services

Readysalted Design, 2.9 Howard House, Howard Street, North Shields, Tyne and Wear, NE30 1AR 0191 257 2472 digital@readysalted.co.uk www.readysalted.co.uk

Port of Sunderland, Capstan House, Greenwells Quay, South Docks, Sunderland, SR1 2BU 0191 553 2131 matthew.hunt@sunderland.gov.uk www.MAKEitSunderland.com

Peter Houlis

Bob Huntington

MANAGING DIRECTOR MAIN BUSINESS: CCTV and access control systems

MANAGING DIRECTOR MAIN BUSINESS: Power generation

2020 Vision Systems Ltd, 28 Northumberland Square, North Shields, Tyne and Wear, NE30 1PW 0191 296 2662 phoulis@2020cctv.com www.2020visiontechnology.com

Lynemouth Power Limited, Ashington, Northumberland, NE63 9NW 01670 844 448 bob.huntington@lynemouthpower.com www.lynemouthpower.com

Charlie Hoult

Gary Hutchinson

MANAGING DIRECTOR MAIN BUSINESS: Entrepreneur

COMMERCIAL DIRECTOR MAIN BUSINESS: Football club

Hoults Yard, Walker Road, Newcastle upon Tyne, NE6 2HL 0191 265 4282 charlie.hoult@houltsyard.co.uk www.linkedin.com/in/charliehoult

Sunderland Association Football Club, Stadium of Light, Sunderland, SR5 1SU 0871 911 1200 enquiries@safc.com www.safc.com

bq-magazine.co.uk

whoâ&#x20AC;&#x2122;s who Craig Iley

Martin Johnson

REGIONAL DIRECTOR MAIN BUSINESS: Corporate banking North East & Cumbria

PARTNER MAIN BUSINESS: Accountancy, tax and business advice

Santander, Baltic Quays, South Shore Rd, Gateshead, Tyne & Wear, NE8 3AE 0551 147 7310 craig.iley@santander.co.uk www.santander.co.uk

UHY Torgersens, Somerford Buildings, Norfolk Street, Sunderland, Tyne and Wear, SR1 1EE 0191 567 8611 m.johnson@uhy-torgersens.com www.sunderland.uhy-uk.com

Eldon Jobe

Carol Jordan

CEO MAIN BUSINESS: Cloud Based recruitment software called HRS

BUSINESS DEVELOPMENT MAIN BUSINESS: Apprenticeships and employer training

RecruitmentForce (HRS), 2 Collingwood Street, Newcastle upon Tyne, NE1 1JF 0203 475 5775 eldon@getHRS.com www.getHRS.com

Darlington College, Central Park, Haughton Road, Darlington, DL1 1DR 01325 503 210 cjordan@darlington.ac.uk www.darlington.ac.uk

Darren Jobling

Neil Kenley

CEO EUTECHNYX/ZEROLIGHT MAIN BUSINESS: Game & Technology developer

DIRECTOR OF BUSINESS INVESTMENT MAIN BUSINESS: Public and private sector Local Enterprise Partnership for Tees Valley

Eutechnyx, Waterside Drive, Gateshead, Tyne & Wear, NE11 9HU 0191 460 6060 dj@eutechnyx.com www.eutechnyx.com / www.zerolight.com

Tees Valley Unlimited, Cavendish House, Teesdale Business Park, Stockton on Tees, Tees Valley, TS17 6QY 01642 524 400 www.teesvalleyunlimited.gov.uk

Mike Jobson

Carole Kitching

PROGRAMME MANAGER MAIN BUSINESS: Delivery of the Business Northumberland High Growth Programme

PRINCIPAL MAIN BUSINESS: Education and training

Oxford Innovation, Ashington Workspace, Lintonville Parkway, Ashington, Northumberland, NE63 9JZ 01670 528 403 m.jobson@oxin.co.uk www.oxin-northumberland.co.uk

Newcastle College, Rye Hill House, Rye Hill Campus, Scotswood Road, Newcastle, NE4 7SA 0191 200 4013 carole.kitching@ncl-coll.ac.uk www.newcastlecollege.co.uk

bq-magazine.co.uk

who’s who Noel Lambert

Martin Lawlor

OPERATIONS DIRECTOR MAIN BUSINESS: eCommerce, order fulfilment and contact centre services

CHIEF EXECUTIVE MAIN BUSINESS: Ports & Harbour Port of Blyth, South Harbour, Blyth, Northumberland, NE24 3PB +44(0)1670 352066 commercial@portofblyth.co.uk www.portofblyth.co.uk

Spark eCommerce Group, Follingsby Avenue, Follingsby Business Park, Gateshead, NE10 8HQ 0191 495 9999 noel.lambert@sparketail.com www.sparkecommerce.com

Richard Lane

David Laws

PARTNER AT DURHAMLANE MAIN BUSINESS: Sales consultancy, training and coaching

CHIEF EXECUTIVE MAIN BUSINESS: Aviation services Newcastle International Airport, Woolsington, Newcastle upon Tyne, NE13 8BZ 0191 214 3330 dlaws@newcastleinternational.co.uk www.newcastleairport.com

durhamlane, Nº13 Windsor Terrace, Newcastle Upon Tyne, NE2 4HE 07545 881 442 / 0191 481 3800 richard@durhamlane.co.uk www.durhamlane.co.uk

Zara Lane

Kevin Lee

ASSOCIATE DIRECTOR MAIN BUSINESS: Corporate finance

OPERATIONS DIRECTOR AND GROWTH COACH MAIN BUSINESS: Accountancy, tax and business advisory

Grant Thornton UK LLP, 75-85 Grey Street, Newcastle upon Tyne, NE1 6EF 0191 203 7793 zara.lane@uk.gt.com www.grant-thornton.co.uk

Harlands Accountants LLP, Prospect House, Prospect Business Park, Leadgate County Durham, DH8 7PW 01207 581717 kevin.lee@harland.co.uk www.harlandsaccountants.co.uk

Phil Langton

Joanne Leng MBE

CHIEF EXECUTIVE MAIN BUSINESS: Enterprise and business support

DEPUTY CHIEF EXECUTIVE MAIN BUSINESS: Business Support for the oil, gas, nuclear and offshore renewables sector

NBSL, 6 Esther Court, Wansbeck Business Park, Ashington, NE63 8AP 01670 813 322 phil.langton@nbsl.org.uk www.nbsl.org.uk

NOF Energy, 1st Floor, Thames House Mandale Business Park, Belmont Industrial Estate, Durham, DH1 1TH 0191 384 6464 jleng@nofenergy.co.uk www.nofenergy.co.uk

bq-magazine.co.uk

who’s who Chris Lines

Professor John MacIntyre

OWNER/DIRECTOR MAIN BUSINESS: PR, strategic communications, social media

PRO VICE-CHANCELLOR MAIN BUSINESS: Higher education University of Sunderland, Edinburgh Building, City Campus, Chester Road, Sunderland, SR1 3SD 0191 515 3266 john.macintyre@sunderland.ac.uk www.sunderland.ac.uk

Right Lines Communications Ltd, The Manor House, West End, Sedgefield, County Durham, TS21 2BW 07971 868 329 chris@rightlines.info / @chrisjlines www.rightlines.info

Catriona Lingwood

Brian Manning

CHIEF EXECUTIVE MAIN BUSINESS: Construction business support

CHIEF EXECUTIVE MAIN BUSINESS: Construction and property services

Constructing Excellence in the North East, Allergate House, Belmont Business Park, Belmont, Co. Durham, DH1 1TW 0191 374 0233 catriona@cene.org.uk www.cene.org.uk

Esh Group, Esh House, Bowburn North Industrial Estate, Bowburn, Durham, DH6 5PF 0191 377 4570 enquiries@esh.uk.com www.esh.uk.com

Bill Lynn

Phillip Marsh

DIRECTOR MAIN BUSINESS: Commercial property consultants

DIRECTOR OF BUSINESS SERVICES MAIN BUSINESS: Higher education

Storeys Edward Symmons, part of the ES Group, Higham House, New Bridge Street West, Newcastle upon Tyne, NE1 8AU 0191 206 8703 bill.lynn@es-group.com www.es-group.com

University of Sunderland, Unit 4 Technology Park, City Campus, Chester Road, Sunderland, SR2 7PT 0191 515 2011 phillip.marsh@sunderland.ac.uk www.sunderland.ac.uk

Alastair MacColl

John Marshall

CHIEF EXECUTIVE MAIN BUSINESS: Business improvement, supply chain development, events & publishing

VICE CHAIRMAN MAIN BUSINESS: Law firm

BE Group, Spectrum 6, Spectrum Business Park, Seaham, SR7 7TT 0191 426 6404 alastair.maccoll@be-group.co.uk www.be-group.co.uk

Bond Dickinson LLP, St. Ann’s Wharf, 112 Quayside, Newcastle upon Tyne, NE1 3DX 0845 415 0000 info@bonddickinson.com www.bonddickinson.com

bq-magazine.co.uk

who’s who Jonathan Mathews

Paul McEldon

COMMERCIAL DIRECTOR MAIN BUSINESS: Symantec IT consultancy/development

CHIEF EXECUTIVE MAIN BUSINESS: Business space and consultancy services

Protirus, 7-15 Pink Lane, Newcastle, NE1 5DW 0191 222 9910 jonathan.mathews@protirus.com www.protirus.com

North East Business and Innovation Centre (BIC), Wearfield, Enterprise Park East, Sunderland, SR5 2TA 0191 516 6200 paul.mceldon@ne-bic.co.uk www.ne-offices.co.uk

Rob Mathieson

Peter McIntyre

CEO MAIN BUSINESS: Web and software development

GROUP MANAGING DIRECTOR MAIN BUSINESS: Northumberland development company

AYO Digital, Northern Design Centre, Baltic Business Quarter, Gateshead, NE8 3DF 0191 490 9470 info@ayodigital.com www.ayodigital.com

Arch: The Northumberland Development Company, Ashington Workspace, Lintonville Parkway, Ashington, Northumberland, NE63 9JZ 01670 528 400 enquiries@arch-group.co.uk www.archnorthumberland.co.uk

Alison Maynard

Eddie McKay

PRINCIPAL (PROFESSIONAL AND VOCATIONAL) MAIN BUSINESS: Education & training for life

DIRECTOR MAIN BUSINESS: Audio visual & event production

South Tyneside College, Westoe Campus, St George’s Avenue, South Shields, Tyne & Wear, NE34 6ET 0191 427 3900 alison.maynard@stc.ac.uk www.stc.ac.uk

Big Purple Productions Ltd, Unit 36 Stella Gill Industrial Estate, Pelton Fell, Chester Le Street, DH2 2RQ 0191 388 0988 eddie@bigpurple-productions.com

John McCabe

Joe McLean

MANAGING DIRECTOR MAIN BUSINESS: Public relations consultancy

PARTNER MAIN BUSINESS: Advisory

Round Table Solutions Ltd, 18 Denshaw Close, Cramlington, Northumberland, NE23 3FP 01670 730 601 john@roundts.co.uk www.roundts.co.uk

Grant Thornton UK LLP, 75-85 Grey Street, Newcastle upon Tyne, NE1 6EF 0191 203 7790 joe.mclean@uk.gt.com www.grant-thornton.co.uk

bq-magazine.co.uk

who’s who Brenda McLeish

Andrew Mitchell

MANAGING DIRECTOR MAIN BUSINESS: Education and training for young people and adults

CHIEF EXECUTIVE MAIN BUSINESS: Venture capital holding fund manager

Learning Curve, part of Learning Curve Group, Unit 51-53 Innovation House, 26 Longfield Road, South Church Enterprise Park, Bishop Auckland, DL14 6XB 01388 777 129 brenda.mcleish@learning-curve.co.uk www.learning-curve.co.uk

North East Finance, St James’ Gate, Newcastle upon Tyne, NE1 4AD 0191 211 2300 enquiries@northeastfinance.org www.northeastfinance.org

Craig McNaughton

Andrew Moffat

AREA DIRECTOR COMMERCIAL – NE & CUMBRIA MAIN BUSINESS: Banking

CHIEF EXECUTIVE OFFICER MAIN BUSINESS: Conventional and bulk cargo, car terminals, estates, cruise & ferries, logistics

Lloyds Banking Group, 4th Floor, 102 Grey Street, Newcastle upon Tyne, NE1 6AG 07970 586 261 craig_mcnaughton@bankofscotland.co.uk www.lloydsbusiness.com

Port of Tyne, Maritime House, Tyne Dock, South Shields, Tyne & Wear, NE34 9PT 0191 455 2671 andrew.moffat@portoftyne.co.uk www.portoftyne.co.uk

Andrew Mill

Andrew Moorby

CHIEF EXECUTIVE MAIN BUSINESS: Accelerating the deployment of offshore renewable energy technologies

MANAGING PARTNER MAIN BUSINESS: Managing partner and tax specialist Tait Walker Chartered Accountants, Bulman House, Regent Centre, Gosforth, Newcastle upon Tyne, NE3 3LS 0191 285 0321 andrew.moorby@taitwalker.co.uk www.taitwalker.co.uk

National Renewable Energy Centre (Narec), Offshore House, Albert Street, Blyth, Northumberland, NE24 1LZ 01670 359 555 andrew.mill@narec.co.uk www.narec.co.uk

Ammar Mirza

Judith Moran

FOUNDER AND CHAIRMAN OF ASIAN BUSINESS CONNEXIONS & AMMARM (UK) LIMITED MAIN BUSINESS: Business and property development

CHIEF EXECUTIVE MAIN BUSINESS: Education and training for young people and adults

Asian Business Connexions/AmmarM (UK) Limited, The Beacon, Newcastle upon Tyne, NE4 9PN 0191 2308040 ammar@ammarm.com www.abconnexions.org

Learning Curve Group Ltd., Unit 51-53 Innovation House, 26 Longfield Road, South Church Enterprise Park, Bishop Auckland, DL14 6XB 01388 777 129 judith.moran@learning-curve.co.uk www.learning-curve.co.uk

bq-magazine.co.uk

who’s who Philip Murray

Paul Newbold

COMMERCIAL DIRECTOR AND GROWTH COACH MAIN BUSINESS: Accountancy, tax and business advisory

PARTNER MAIN BUSINESS: Accountancy, tax and business advice

Harlands Accountants LLP, Prospect House, Prospect Business Park, Leadgate, County Durham, DH8 7PW 01207 581 717 philip.murray@harland.co.uk www.harlandsaccountants.co.uk

UHY Torgersens, Somerford Buildings, Norfolk Street, Sunderland, Tyne and Wear, SR1 1EE 0191 567 8611 p.newbold@uhy-torgersens.com www.sunderland.uhy-uk.com

Richard Myers

Keith Nicholson

DIRECTOR MAIN BUSINESS: Funding, support and mentoring for startup businesses

HEAD OF TINY LIVES TRUST MAIN BUSINESS: Charity Tiny Lives Trust, 9th Floor Cale Cross House, 156 Pilgrim Street, Newcastle upon Tyne, NE1 6SU 0191 230 2112 keith@tinylives.org.uk www.tinylives.org.uk

Transmit Start-Ups, Gateshead International Business Centre, Mulgrave Terrace, Gateshead, NE8 1AN 0845 094 3670 rich@transmitstartups.co.uk www.transmitstartups.co.uk

Alex Nelson

Mike O’Brien

STATIONMASTER MAIN BUSINESS: Rail travel

MANAGING DIRECTOR MAIN BUSINESS: Enterprise IT software & consulting

Chester-le-Track, The Railway Station, Station Road, Chester-le-Street, Co. Durham, DH3 3EE 0191 387 1387 / 07860 953 981 burnopfield@yahoo.co.uk www.chester-le-track.co.uk

Opencast Software Ltd, Hoults Yard, Walker Rd., Newcastle Upon Tyne, NE6 2HL 0191 276 5656 mike.obrien@opencastsoftware.com www.opencastsoftware.com

Gordon Nelson

Helen Oliver

GENERAL MANAGER MAIN BUSINESS: Lexus dealer

SENIOR LADIESWEAR BUYER MAIN BUSINESS: Retail

Lexus Newcastle, 22 Benton Road, Newcastle upon Tyne, NE7 7EG 0191 215 0404 gordon.nelson@jardinemotors.co.uk www.newcastle.lexus.co.uk

Psyche, 175 - 187 Linthorpe Road, Middlesbrough, TS1 4AG 01642 707283 helen@psyche.co.uk www.psyche.co.uk

THE UK’S PREMIER RETAIL DESTINATION

bq-magazine.co.uk

whoâ&#x20AC;&#x2122;s who Gordon Ollivere MBE

Chris Petts

CHIEF EXECUTIVE MAIN BUSINESS: Innovation & technology consultants

DIRECTOR MAIN BUSINESS: Advisory

RTC North, Hylton Park, Wessington Way, Sunderland, Tyne & Wear, SR5 3HD 0191 5164400 enquiries@rtcnorth.co.uk www.rtcnorth.co.uk

Grant Thornton UK LLP, 75-85 Grey Street, Newcastle upon Tyne, NE1 6EF 0191 203 7787 chris.petts@uk.gt.com www.grant-thornton.co.uk

James Pain

Gareth Pickles

DIRECTOR MAIN BUSINESS: Commercial agents and property consultants specialising within NE industrial market

CUSTOMER SERVICES DIRECTOR, DOMESTIC MAIN BUSINESS: UK energy supplier npower Ltd, Cygnet Way, Rainton Bridge Business Park, Houghton le Spring, DH4 5QZ gareth.pickles@rwenpower.com www.npower.com

Frew Pain & Partners, Collingwood Buildings, 38 Collingwood Street, Newcastle upon Tyne, NE1 1JF 0191 229 9517 / 07841 871 710 james.pain@frewpain.co.uk www.frewpain.co.uk

Mark Parkinson

Joanne Pratt

WEALTH MANAGEMENT PARTNER MAIN BUSINESS: Wealth management & employee benefits

FUND MANAGER MAIN BUSINESS: Fund manager and investment company

Tait Walker Wealth Management, Bulman House, Regent Centre, Gosforth, Newcastle upon Tyne, NE3 3LS 0191 285 0321 mark.parkinson@taitwalker.co.uk www.taitwalker.co.uk

FW Capital, Suite 306, Rotterdam House, 116 Quayside, Newcastle upon Tyne, NE1 3DY 0191 206 4730 / 07789 776 276 joanne.pratt@fwcapital.co.uk www.fwcapital.co.uk/northeast

Nigel J Perry FREng

John Pratt

CHIEF EXECUTIVE OFFICER MAIN BUSINESS: Product and process development

MANAGING PARTNER MAIN BUSINESS: Legal services

CPI Head Office, Wilton Centre, Wilton, Redcar, TS10 4RF 01642 455 340 www.uk-cpi.com

BHP Law Kepier House, Belmont Business Park, Belmont, Durham, DH1 1TW 0191 384 0840 JohnP@bhplaw.co.uk www.bhplaw.co.uk

bq-magazine.co.uk

who’s who Chris Pringle

Pat Ritchie

SALES ASSOCIATE MAIN BUSINESS: Commercial and personal insurance

CHIEF EXECUTIVE MAIN BUSINESS: Local authority

NFU Mutual, Unit 6, Telford Court, Loansdean, Morpeth, NE61 2DB 01670 511 252 morpeth@nfumutal.co.uk www.nfumutual.co.uk/morpeth

Newcastle City Council, Civic Centre, Barras Bridge, Newcastle, NE1 8QH 0191 211 5000 pat.ritchie@newcastle.gov.uk www.newcastle.gov.uk

Keith Proudfoot

Damon Roberts

REGIONAL DIRECTOR, NORTHERN AND SCOTLAND MAIN BUSINESS: Chartered accountancy membership organisation

GENERAL MANAGER (Chairman of the North East Hotels Association) MAIN BUSINESS: Hotel industry, tourism, meetings and events

ICAEW, PO Box 417, Newcastle upon Tyne, NE3 9AS 0191 300 0531 keith.proudfoot@icaew.com www.icaew.com/northern

Thistle Hotel Middlesbrough, Fry Street, TS1 1JH 01642 232 000 damon.roberts@thistle.co.uk www.thistle.com/middlesbrough

George Rafferty

Daniel Robinson

CHIEF EXECUTIVE MAIN BUSINESS: Business Support for the oil, gas, nuclear and offshore renewables sector

CHAIRMAN & CEO MAIN BUSINESS: Construction, mechanical and electrical engineers

NOF Energy, 1st Floor, Thames House Mandale Business Park, Belmont Industrial Estate, Durham, DH1 1TH 0191 384 6464 grafferty@nofenergy.co.uk www.nofenergy.co.uk

Gus Robinson Developments Ltd, Stranton House, West View Road, Hartlepool, TS24 0BW 01429 234221 dan.r@gusrobinson.com www.gusrobinson.com

Chris Rigg

David Robinson

CHIEF EXECUTIVE MAIN BUSINESS: Recruitment

GROUP CHIEF EXECUTIVE OFFICER MAIN BUSINESS: UK ports business with logistics operations

NRG, Lloyds Court, 56 Grey Street, Newcastle upon Tyne, NE1 6AH 0191 232 1222 chrisrigg@nrgplc.com www.nrgplc.com

PD Ports, 17-27 Queen’s Square, Middlesbrough, TS2 1AH 01642 877 200 david.robinson@pdports.co.uk www.pdports.co.uk

bq-magazine.co.uk

who’s who Andrew Robson

Lorraine Schapira

MANAGING DIRECTOR MAIN BUSINESS: Trusted provider of full service IT solutions including managed services, infrastructure and software development

MANAGING DIRECTOR MAIN BUSINESS: Public relations Yellow Dog PR, Unit 1.05, One Trinity Green, Eldon Street, Newcastle upon Tyne, NE33 1SA 0845 340 4161 lorraine@yellowdogpr.co.uk www.yellowdogpr.co.uk

Perfect Image, Newcastle Technopole, Kings Manor, Newcastle upon Tyne, NE1 6PA 0191 201 2111 hello@perfect-image.co.uk www.perfect-image.co.uk

Cameron Ross

Chris Scott

LEAD MANUFACTURING ADVISOR NORTH EAST MAIN BUSINESS: Manufacturing business support

MD & CO. SEC MAIN BUSINESS: Insurance broking & risk management

Wolverhampton Science Park, Wolverhampton, WV10 9TG cameron.ross@mymas.org 07834 307 903 www.mymas.org

Todd & Cue Ltd, Kingfisher House, Kingsway, Team Valley, Gateshead, Tyne and Wear, NE11 0JQ 0191 482 0050 chris.scott@toddcue.com www.toddcue.com

Jean-Louis Rostaing

Jonathan Scott

MANAGING DIRECTOR MAIN BUSINESS: Subsea umbilical systems

COMMERCIAL DIRECTOR MAIN BUSINESS: Power generation

Duco Ltd, Nelson Road, Walker Riverside, Newcastle Upon Tyne, NE6 3NL 0191 296 7286 jlrostaing@ducoltd.com www.technip.com

Lynemouth Power Limited, Ashington, Northumberland, NE63 9NW 01670 844 450 jonathan.scott@lynemouthpower.com www.lynemouthpower.com

Ralph Saelzer

Ian Shard

MANAGING DIRECTOR MAIN BUSINESS: Manufacturer of ship and offshore cranes

MANAGING DIRECTOR MAIN BUSINESS: UK’s leading independent provider of specialist software solutions to the public and social housing sectors

Liebherr, Liebherr Sunderland Works Ltd, Ayres Quay, Deptford Terrace, Sunderland, SR4 6DD 0191 514 3001 ralph.saelzer@liebherr.com www.liebherr.com

Orchard, Newcastle Technopole, Kings Manor, Newcastle upon Tyne, NE1 6PA 0191 203 2500 info@orchard-systems.co.uk www.orchard-systems.co.uk

bq-magazine.co.uk

whoâ&#x20AC;&#x2122;s who David Simpson

Michael Smith

EXECUTIVE DIRECTOR, WEALTH MANAGER MAIN BUSINESS: Private banking & wealth management

CORPORATE FINANCE PARTNER MAIN BUSINESS: Disposals & acquisitions, fundraising, MBOs

Coutts, Trinity Gardens, Broad Chare, Quayside, Newcastle upon Tyne, NE1 2HF 0191 269 1396 david.simpson@coutts.com www.coutts.com

Tait Walker Corporate Finance, Bulman House, Regent Centre, Gosforth, Newcastle upon Tyne, NE3 3LS 0191 285 0321 michael.smith@taitwalker.co.uk www.taitwalker.co.uk

Amanda Skelton

Michael Spriggs

CHIEF EXECUTIVE MAIN BUSINESS: Local government

MANAGING DIRECTOR MAIN BUSINESS: Commercial property lettings, development & investment

Redcar & Cleveland Borough Council, Redcar & Cleveland House, Kirkleatham Street, Redcar, TS10 1RT 01642 444 003 amanda.skelton@redcar-cleveland.gov.uk www.redcar-cleveland.gov.uk/regeneration

UK Land Estates, Ground Floor North, Building 7, Queens Park, Queensway, Team Valley, Gateshead, NE11 0QD 0191 440 8909 (DD) michael@uklandestates.co.uk www.uklandestates.co.uk

Peter Slee

Fiona Standfield

GROUP DIRECTOR MAIN BUSINESS: eCommerce, order fulfilment and contact centre services

DIRECTOR MAIN BUSINESS: Newcastle Science City Devonshire Building, Devonshire Terrace, Newcastle upon Tyne, NE1 7RU 0191 208 4122 fiona.standfield@newcastlesciencecity.com www.newcastlesciencecity.com www.newcastlesciencecentral.com

Spark eCommerce Group, Follingsby Avenue, Follingsby Business Park, Gateshead, NE10 8HQ 0191 495 9999 peter.slee@sparkresponse.com www.sparkecommerce.com

Alan J Smith OBE, DL

Phil Steele

CHAIRMAN MAIN BUSINESS: Architecture

GENERAL MANAGER MAIN BUSINESS: intu Eldon Square Shopping Centre

Red Box Design Group Ltd, St Nicholas Chare, Newcastle upon Tyne, NE1 1RJ 0191 245 5555 ajs@redboxdesign.com www.redboxdesign.com

intu Eldon Square Centre Management Offices, Eldon Court, Percy Street, Newcastle upon Tyne, NE1 7JB 0191 261 1891 phil.steele@intu.co.uk www.intueldonsquare.co.uk

bq-magazine.co.uk

whoâ&#x20AC;&#x2122;s who Philip Stephenson

Rob Tait

ASSOCIATE DIRECTOR MAIN BUSINESS: Advisory

GENERAL MANAGER MAIN BUSINESS: Hotel, wine & bistro

Grant Thornton UK LLP, 75-85 Grey Street, Newcastle upon Tyne, NE1 6EF 0191 203 7791 philip.stephenson@uk.gt.com www.grant-thornton.co.uk

Hotel du Vin & Bistro Allan House, City Road Newcastle upon Tyne, NE1 2BE 0191 229 2200 rob.tait@hotelduvin.com www.hotelduvin.com

Scott Stevenson

Eugene Taylor

DEALER PRINCIPAL MAIN BUSINESS: Bentley dealer

DIRECTOR MAIN BUSINESS: Commerical banking - Newcastle and Tees Valley

Bentley Newcastle, Silverlink Park, Newcastle upon Tyne, NE28 9ND Tel: 0191 295 8050 scott.stevenson@bentleynewcastle.com www.bentleynewcastle.co.uk

NatWest, 2nd Floor 1 Trinity Gardens, Quayside, Newcastle upon Tyne, NE1 2HF 0191 269 8700 eugene.taylor@natwest.com www.natwest.com/ahead

Sarah Stewart

Kathryn Taylor

CHIEF EXECUTIVE MAIN BUSINESS: Destination management and marketing agency

MANAGING PARTNER MAIN BUSINESS: Law firm Gordon Brown Law Firm LLP, Mains House, 143 Front Street, Chester le Street, DH3 3AU 0191 388 1778 kathryn.taylor@gblf.co.uk www.gblf.co.uk

NewcastleGateshead Initiative, 9th Floor, Baltic Place East, South Shore Road, Gateshead, NE8 3AE 0191 440 5720 info@ngi.org.uk www.NewcastleGateshead.com

Dave Stubbs

Keith Taylor

CHIEF EXECUTIVE MAIN BUSINESS: Local government authority

HEAD OF MEDICAL SERVICES MAIN BUSINESS: Specialist medical accountants and tax advisers

Hartlepool Borough Council, Civic Centre, Victoria Road, Hartlepool, TS24 8AY 01429 266 522 dave.stubbs@hartlepool.gov.uk www.hartlepool.gov.uk

BW Medical Accountants Ltd, BW House, 2/3 Park Road, Gosforth Business Park, Newcastle, NE12 8DG 0191 653 1022 enquiry@bw-medical.co.uk www.bw-medical.co.uk

bq-magazine.co.uk

who’s who Caroline Theobald

Dave Townsley

MD BRIDGE CLUB LTD/FIRST FACE TO FACE - Honorary

EXECUTIVE DIRECTOR NDI UK LTD MAIN BUSINESS: Specialist supply chain sourcing & development

Consul, Sweden; Chair, International Newcastle; chair BQ Live Debates

MAIN BUSINESS: B2B networking and event facilitation

service for the defence, space, aerospace & security sectors

Bridge Club Ltd, Aydon Castle Farm, Corbridge, NE45 5PJ 0191 406 9081 c.theobald@bridgeclubnorth.com www.bridgeclubnorth.com

NDI, BE Group, Spectrum 6, Spectrum Business Park, Seaham, SR7 7TT 0191 426 6376 david.townsley@ndi.org.uk www.ndi.org.uk

Geoff Thompson

Fergus Trim

CEO MAIN BUSINESS: Utility management

DEVELOPMENT DIRECTOR MAIN BUSINESS: Commercial property development

Utilitywise plc, Utilitywise House, 30-31 Long Row, Market Dock, South Shields, NE33 1JA 0870 626 0559 info@utilitywise.com www.utilitywise.com

The Hub, Dukes Walk, Quorum Business Park, Benton Lane, Newcastle, NE12 8EZ 0191 287 1149 fergus.trim@quorumbp.co.uk www.quorumbusinesspark.co.uk

Peter Wagstaff Chartered MCSI

Ian Thompson CORPORATE DIRECTOR (Regeneration & economic development) MAIN BUSINESS: Regeneration & economic development

DIRECTOR, WEALTH MANAGER MAIN BUSINESS: Wealth management Coutts, Trinity Gardens, Broad Chare, Quayside, Newcastle upon Tyne, NE1 2HF 0191 269 1397 peter.wagstaff@coutts.com www.coutts.com

Durham County Council, County Hall, Durham, DH1 5UQ 03000 267 331 ian_thompson@durham.gov.uk www.durham.gov.uk

Julian Thomson

John Wall

DIRECTOR MAIN BUSINESS: Fine art auctioneers and valuers. Valuations for sale, probate and insurance Anderson and Garland Ltd, Anderson House, Crispin Court, Newbiggin Lane, Westerhope, Newcastle upon Tyne, NE5 1BF 0191 430 3000 j.thomson@andersonandgarland.com www.andersonandgarland.com

100

CHAIRMAN/ CHAIRMAN OF THE PRINCE’S TRUST NORTH EAST DEVELOPMENT COMMITTEE MAIN BUSINESS: Hydrogen Fuel Cells Proton Power Systems PLC 5 Tamarin Close, Beadnell, NE67 5JE 07802 917615 john_wall@btinternet.com www.protonpowersystems.com

bq-magazine.co.uk

who’s who Deborah Walton

Jennifer Welch

FINANCE DIRECTOR MAIN BUSINESS: Power generation

DIRECTOR, RICS NORTH & MIDLANDS MAIN BUSINESS: Royal Institution of Chartered Surveyors

Lynemouth Power Limited, Ashington, Northumberland, NE63 9NW 01670 844 449 deborah.walton@lynemouthpower.com www.lynemouthpower.com

RICS North East, c/o Northumbria University, Room 116/117, 1st Floor, Ellison Building, Ellison Place, Newcastle upon Tyne, NE1 8ST 01429 835 223 jwelch@rics.org www.rics.org/northeast

Andrew Ward

Carole White

MANAGING DIRECTOR MAIN BUSINESS: Clothing

HEAD OF BUSINESS AND OPERATIONS MAIN BUSINESS: Business support

Workwear Express Ltd,Cathedral Park, Belmont Ind. Est., Durham, DH1 1TF 0191 370 7790 andrew@workwearexpress.com www.workwearexpress.com

TEDCO Business Support Ltd, North East Business and Innovation Centre (BIC), Wearfield, Enterprise Park East, Sunderland, SR5 2TA 0191 5166105 cwhite@tedco.org www.tedco.org

Professor Andrew Wathey

Lindsey Whiterod

VICE-CHANCELLOR & CHIEF EXECUTIVE MAIN BUSINESS: Education

CHIEF EXECUTIVE MAIN BUSINESS: Education and training, maritime training, academy sponsorship

Northumbria University, Ellison Building, Ellison Place, Newcastle upon Tyne, NE1 8ST 0191 227 4002 andrew.wathey@northumbria.ac.uk www.northumbria.ac.uk

South Tyneside College, Westoe Campus, St George’s Avenue, South Shields, Tyne & Wear, NE34 6ET 0191 427 3900 lindsey.whiterod@stc.ac.uk www.stc.ac.uk

Clare Weirs

Oliver Wickham

DIRECTOR BUSINESS SERVICES MAIN BUSINESS: Business Support for the oil, gas, nuclear and offshore renewables sector

DIRECTOR MAIN BUSINESS: Signage design, manufacture & installation

NOF Energy, 1st Floor, Thames House Mandale Business Park, Belmont Industrial Estate, Durham, DH1 1TH 0191 384 6464 cweirs@nofenergy.co.uk www.nofenergy.co.uk

Rapid 9, 5 Cobblestone Court, Hoults Yard, Newcastle upon Tyne, NE61AB 0191 276 4587 oliver@rapid9signs.com www.rapid9signs.com

101

bq-magazine.co.uk

whoâ&#x20AC;&#x2122;s who Jonathan Willett

Professor John Wilson

DIRECTOR MAIN BUSINESS: Commercial Insurance Broker

DIRECTOR MAIN BUSINESS: Education

Henderson Insurance Brokers Ltd, MAP House, 3 George Stephenson Court, Westland Way, Stockton On Tees, TS18 3FB 01642 659300 jonathan.willett@hibl.co.uk www.hibl.co.uk

Newcastle University Business School, 5 Barrack Road, Newcastle upon Tyne, NE1 4SE 0191 208 1500 john.wilson4@ncl.ac.uk www.ncl.ac.uk/nubs

Ian Williams

Lucy Winskell

DIRECTOR OF BUSINESS INVESTMENT MAIN BUSINESS: Business investment

BUSINESS AND ENGAGEMENT MAIN BUSINESS: Region, engagement and partnerships

Sunderland City Council, Sunderland Software Centre, Tavistock Place, Sunderland, SR1 1PB 0191 561 1507 ian.williams@sunderland.gov.uk www.MAKEitSunderland.com

Northumbria University, Ellison Building, Ellison Place, Newcastle upon Tyne, NE1 8ST 0191 243 7200 lucy.winskell@northumbria.ac.uk www.northumbria.ac.uk

Simon Williams

Geoff Woodcock

PR/CORPORATE PHOTOGRAPHER MAIN BUSINESS: Commercial photography

MANAGING DIRECTOR MAIN BUSINESS: Land and development

Crest Photography, 2 Church Lane, Bedlington, NE22 5EL 0788 953 2545 simon@crestphotography.co.uk www.crestphotography.co.uk

Esh Developments, Esh House, Bowburn North Industrial Estate, Bowburn, Durham, DH6 5PF 0191 377 4570 enquiries@esh.uk.com www.esh.uk.com

Jill Williamson

Vincent Woods

EXECUTIVE DIRECTOR MAIN BUSINESS: Horse racing/event & venue hire/ wedding venue

EXECUTIVE CHAIRMAN MAIN BUSINESS: Event management

Sedgefield Racecourse, Sedgefield, Stockton-on-Tees, TS21 2HW 01740 621 925 jwilliamson@sedgefield-racecourse.co.uk www.sedgefield-racecourse.co.uk

102

Benchmark Conference & Events, 14 Blandford Square, Newcastle Upon Tyne, NE1 4HZ 0191 241 4523 vincent@benchcom.co.uk www.benchmarkevents.org

Insight, news and analysis to help grow your business

A refreshing star t to your day

BQ Breakfast the only way to start your day

Register now at bq-magazine.co.uk to receive our free early morning daily business intelligence and news service for entrepreneurs and business leaders across the North East.

money matters The North Eastâ&#x20AC;&#x2122;s small and medium size businesses are fortunate in having access to a number of publicly backed investment funds, and these funds must continue if these businesses, the lifeblood of the regionâ&#x20AC;&#x2122;s economy, are to flourish.

bq-magazine.co.uk opinion

money matters

By Jeremie, we’re joyful! Funding flow looks secure for SMEs in 2014, thanks to a year of solid progress among a wide variety of providers, says Geoff Hodgson The North East’s SMEs are fortunate in having access to a number of publicly backed investment funds, and continuation of these funds is vital if these businesses, the lifeblood of the region’s economy, are to flourish. Thanks to numerous events in 2013, their future looks secure for some time yet; 2013 saw significant further activity from the existing Jeremie programme run by Finance for Business North East, for example. The funds carried out a wide range of investments. Probably most significant was the first Initial Public Offering on the AIM of a Jeremie-backed company, Applied Graphene Materials. Perhaps the most welcome development, though, was an extension of the current Jeremie programme, which will now run until the end of 2015. Also important has been the creation of the Let’s Grow fund, administered by Business and Enterprise Group, UNW and ncjMedia. This is of tremendous importance as it has allowed SMEs to apply for Regional Growth Funding; a form of state aid which, until now, was only available to large businesses. One of NEA2F’s main roles is helping start-ups and SMEs navigate their way through the funding options available to them. To that end we carried out a series of exercises. In February we launched our North East Access to Finance Guide website http://www.

Access all areas: Geoff Hodgson says securing funding is vital for SMEs

nea2fguide.co.uk – highlighting the various funding sources available to SMEs. This has so far been viewed more than 52,000 times. Also, to help start-ups and SMEs keep up with ongoing developments in access to finance, we launched a weekly news update – accessed from the home page of our website at www.nea2f.co.uk. And we commissioned EKOS to carry out the first ever research into the historical access to finance intervention in the region, and are using this to draw up recommendations for future programmes. Throughout 2013 we have assisted both LEPs with their plans for Access to

Finance in the future. Also notable this year was the Adonis report, produced by North East LEP, which had the Access to Finance agenda at its heart. For these and many other reasons, my view is that 2103 will be remembered as a successful year when building blocks were laid for the future. In 2014 it will be interesting to see what impact the new Business Bank will have. At North East Access to Finance, we will continue to work with our partners to map out future programmes post2015, and build on the achievements of the past 12 months. n Geoff Hodgson is chairman of North East Access to Finance (NEA2F).

105

bq-magazine.co.uk

money matters

overview

So much but how much? As confidence returns, it seems the business glass is half full when it comes to accessing funding, but appearances can be deceptive, warns Brian Nicholls

One day some institution with research resources beyond BQ Yearbook’s will produce an authoritative comparison of figures between how much money was available to North East business pre-recession through loans and grants from state, quango and private sources, compared with what is accessible now. So many announcements flow from so many sources that business in the region looks to have a fountain of largesse unprecedented. This may be pleasing enough to the government, but lenders themselves would agree appearances are sometimes deceptive, whichever side of a desk you sit at. Thus, you pursue where you can, and manufacturers of the North East at least are gaining unexpected access to capital for growth with mentoring besides through £539,000

secured to encourage job creation. The Manufacturing Advisory Service (MAS) got the funding from the North East European Regional Development Fund Programme. It will assist a further 122 manufacturers across the region. And for the first time, MAS can provide ‘transformational’ support of up to £10,000 to help firms looking to grow significantly by entering new markets, developing products or implementing strategic change projects. Lorraine Holmes, MAS area director, says: “This funding reinforces our ability to give specialist advice and guidance that unlocks potentials.” MAS is delivered in the region by WMMC and funded by the Department for Business, Innovation and Skills (BIS). Emphasis will be on change that can improve processes, develop supply chains, diversification and, ultimately, bring the extra jobs.

Filling the void Bank lending for growing businesses has still not returned to its pre-recession levels, says Entrust business support agency. Yet Yorkshire Bank reckons 98% of small firms in the North East plan to expand business in 2014 with new equipment, training and products topping their list for investment. Entrust, at Newcastle, perceives a growing gap in the market. In June it launched its £2.4m Growth Fund to complement an existing Microloan fund, giving customers an opportunity to borrow anything from £1,000 up to £50,000. It invites any small firm planning organic growth, or which may want additional borrowing but finds access to traditional routes of finance blocked, to get in touch.

106

Member companies of the Forum of Private Business – all but 6% – still face an uphill battle making ends meet. Business costs are rising, mainly for energy. Some entrepreneurs and other bosses, unable to coax support from banks or capital funds, are resorting to asset lenders, such as Borro. One of its borrowers has pledged a McLaren SLR Roadster with a loan value of £120,000. Another secured a £100,000 loan on a single stone ring. A third used an Andy Warhol painting to get a £70,000 loan. Since its launch in 2008, Borro has lent £29m to business owners, £12m of it over the last 12 months. The average SME loan is £24,000. On another personal note, taxpayers using self-assessment should ensure their tax affairs are “apple pie” given figures showing HM Revenue and Customs (HMRC) clawed back an extra £609m in 2012/13 by investigating personal tax returns. Graham Purvis, partner at Newcastle accountants Robson Laidler LLP, says the figure is 38% up in a year, suggesting HMRC’s toughened stance on tax compliance is delivering results. HMRC is focusing on sectors where it believes people may not be meeting their tax obligations. It offers reduced penalties for people coming forward with any undisclosed tax liabilities.

bq-magazine.co.uk overview

money matters

Away she goes: Huntsman, which opened a £2m centre at Wynyard Business Park two years ago, is floating off its North East pigments business Appeal to inward investors grows Britain’s appeal to inward investors is up a couple of notches, a global ranking of effective business tax systems shows for the second year running. It now stands 14th in the PwC, World Bank and IFC Paying Taxes study, which ranks countries by assessing the tax costs and compliance burden for a case-study manufacturer. The UK’s improved position is put down to the steady lowering of corporation tax. As the UK also scores quite well on compliance processes, it outperforms other countries with lower tax rates still. Lee Stamp, tax director at PwC Newcastle, says: “With further corporate tax reforms still to take effect, there’s a chance we could make the top 10 when the corporation tax rate reaches 20% in April 2015. Reducing the compliance burden would help.” The government has set up a one-stop shop to help international investors identify and fund regeneration opportunities in the UK. The Regeneration Investment Organisation (RIO) is run by UK Trade and Investment, with an “independent”

advisory board of “big hitters” from British business and government. Is it chaired by someone intimately associated with recovering regions like the North East? No, that job has gone to the former Lord Mayor of the City of London Sir Michael Bear, who is more closely associated with the economically overheated capital. But he was educated in Bristol and Bedfordshire. James Ramsbotham has stressed how a “front of house” system to act as a single point of contact for enquiries is vital to the North East if there is to be a united front to attract overseas investors, providing clarity for businesses and a stronger offer in the global market place.

MONEY BRIEFS High Street Boutique Finance reports demand for its product tailored to SMEs. The North East lender has been running its Cash Tap funding facility since 2012. Part of the High Street Group, it offers SMEs credit of up to £100,000, the approved amount being determined against invoices agreed by the client. Deals confidence was broadly positive throughout the first nine months of 2013, and although deal volumes were down 17% against the previous equivalent, activity in the final quarter was only slightly down. Chemical giant Huntsman will float off its North East pigments business as part of a £904m deal to acquire a rival operation and four other businesses from Rockwood Holdings. Huntsman set up a £2m centre at Wynyard Business Park two years ago, relocating 300 staff from Wilton and Billingham. Building societies are getting back to business as usual, accountants KPMG report. Out of 46 building societies, 35 had increased their assets by 2012, and both the Newcastle and Darlington Building Societies reported better times. NVM Private Equity, which typically invests between £2m and £10m in suitable companies, has a £100m investment sum open to profitable SMEs in the North East and Yorkshire. n

Help for technology firms A new fund to help technology start-ups in the UK has been launched on Teesside. Called TwentyThreeMiles it is the brainchild of Clicksco, a group of global technology firms based in Dubai and fronted by investment specialists Paul Weavers and Paul Callaghan, the latter being the former business development director at DigitalCity Business. He is heading the fund after five years of bringing global investment into Teesside’s tech community and nurturing tech talent in the North East. Each business invested in will be eligible for up to £30,000 and further support that includes 12 months commercial accommodation around the DigitalCity technology hub on Teesside.

107

service sector In association with

Whenever there is a race to the bottom price war, it makes sense to focus on service delivery or service excellence. Once the so-called green shoots appear, the service sector tends to be quicker to recover and it is niche or ultra-specialist providers that benefit first.

bq-magazine.co.uk opinion

service sector

Results are critical now Clients now demand results-driven services, and will pay for them – which could become the benchmark for the most successful businesses, says Neil Warwick Whatever label you attach to it – service sector, professional services, knowledge intensive businesses – the service sector is either a bell weather or an early warning system for what is about to happen in a recessionary cycle. Even before the collapse of Lehman Brothers Bank officially announced the start of the recession in 2008, the service sector had begun to feel the pain, particularly niche providers of services. All businesses know cash is king when there are economic difficulties. So it is vital to make savings and conserve cash. One way is by cutting discretionary budgets. For service providers this means budgets for regulatory compliance, training, marketing and consultancy all become at risk quickly and to a greater extent than capital budgets. It is not easy to reduce your property overheads by a significant percentage, whereas you can save 100% of the cost of your compliance budget by cancelling all external training and making do with what’s already in place. So when recession hits, service providers can find their business pipelines not just reduced but completely cut off. The immediate effect in pure economic terms is an oversupply in the market. Normal reaction to an oversupply in the market is to compete on pricing, but this can affect a sector viciously, provoking a race to the bottom to

provide the same service at the lowest cost. Essentially, service businesses sell time for money. If they reduce the amount of money they generate, the amount of time does not go down correspondingly. You then become faced with the option of taking on more work or reducing costs further, or both. Many would argue that, as every sector had to tighten its belt during the recession, why should services be different? But whenever there is a race to the bottom, when the recovery comes it does not necessarily follow that prices will immediately rise accordingly. You then have the problem that you now do not have enough time. As the workloads have increased and margins have eroded, so has your profitability. The normal answer then is to focus on service delivery or service excellence. Once the so-called

green shoots appear, the service sector tends to be quicker to recover and, again oddly enough, it is the niche or ultra-specialist providers that benefit first. For example, the businesses that cut compliance budgets either have to get back up to speed quickly or, more commonly, have problems because they have reduced their budgets. Those providers of in-demand services then begin to differentiate through the quality of service they provide. Eventually demand will overtake supply and prices increase as the market self corrects. The service sector – and professional services in particular – started to get much busier at the end of 2012. This steadily increased throughout 2013 to a point that it is almost too busy in some areas. However, a new trend is emerging to replace the commodity pricing versus service excellence debate. This recovery has thrown up clients who now demand a results-driven service and are willing to pay a premium for it. So if the service sector truly is an indicator of economic trends, the expectation of a results driven service will emerge as the new benchmark for the most successful businesses. n Neil Warwick is chairman of Service Network, and a partner and head of EU and competition at Bond Dickinson LLP law firm.

109

bq-magazine.co.uk

service sector

opinion

CONFIDENCE AND EXCITEMENT IN EQUAL MEASURE Innovate more, make more and export more – it’s a winning formula, says Alastair MacColl Just occasionally, we might be accused of not shouting loudly enough about the fantastic achievements of our business community in the North East of England. That’s why publications like the BQ Yearbook are so important. They help “raise the decibel level” and remind everybody that the North East is an enormously important UK asset. An ambitious and dynamic region with exceptional businesses and manufacturing facilities, an enviable international reputation, world class universities, ports and airports. The list goes on and on. Increasingly, we know that the people who matter are talking about the opportunities provided by our businesses, our people and our appetite for innovation. They know that businesses in the North East are great at adapting to meet the challenges and possibilities of rapidly changing markets. That’s why our businesses are playing such a big role in developing an increasingly ambitious and competitive private sector in the UK. For those of you that haven’t worked with the BE Group yet, we specialise in business information, events and commercial development programmes. With a number of offices across the UK and a substantial level of international activity, we’re also making a competitive advantage out of anticipating change and adapting to it.

110

Banging the drum: Alastair MacColl is keen to promote the region’s achievements

Increasingly, the people who matter are talking about the opportunities provided by our businesses, our people and our appetite for innovation That’s why we invest so consistently in our comprehensive portfolio of products and services; all designed to help businesses succeed and grow. The pages of this yearbook are packed with individuals and businesses that are building on the enviable track record of the North East for producing world class brands, products and services. By continuing to make more, innovate more and export more than our domestic and global competitors.

By continuing to invest in skills and apprenticeships. And by extracting every ounce of benefit from the supply chain opportunities provided by our strongest and most potentially rewarding sectors. It’s a winning combination that should inspire confidence and excitement about the future in equal measure. n Alastair MacColl is chief executive of BE Group.

bq-magazine.co.uk opinion

service sector

Five simple ways to find a winning formula for success in 2014 It’s a good time to go back to basics, remind yourself what being in business is really all about then run a checklist, says Keith Proudfoot Each new year is a chance to review and decide what each of us wants to achieve in the year ahead. This also applies to businesses. An SME owner/operator is particularly dependent on their company’s health. When you’re running a business day to day, it’s all too easy to get overwhelmed by events and be frantically busy – working so hard in the business there is no opportunity to work on the business. Every now and then, it’s important to find a time to step back and recap, and the beginning of another year provides that opportunity. When times are not easy, as has been the case in this region for many sectors for a while now, it’s good to go back to basics. Remind yourself what being in business is really all about. We reckon it’s actually quite simple. You have to have five key areas to any healthy business. These we call your ‘permanent priorities’ – i.e. areas you need to keep tabs on all the time. First and foremost are your customers. Concentrate always on winning and keeping customers. Continually improve your understanding of them, and the competitive environment in which you’re operating. Refine your marketing plans and take advantage of new opportunities. And don’t forget to promote your business and your products. Second is cashflow. This, of course,

is the balance of all money flowing in and out of your business, with the main inflow generally coming from sales. ‘Cash is King’ so look ahead for peaks and troughs. The more warning there is, the more time you have to deal with those troughs. You must know when to focus completely on sales, and getting your invoices paid. Planning ahead will make it easier to line up any further funding you may need. Then there are employees. They are a critical component of any business machine. Make sure everyone in your team is performing well, and overcoming any problems. Start by recruiting the right people, then keep them informed about what is going on in the business. You must lead and motivate staff and monitor performance by holding regular reviews. If cash is King then communication is Queen; discuss and resolve any problems and frustrations, otherwise people will leave. Selling skills are critical. If you don’t subscribe to the hard-sell, ABC

mantra that you should Always Be Closing, you should at least be aware that as you are the representative of your business, you are always being evaluated and judged. Make sure you develop the right attitude, training and approach. Constantly develop selling skills, above all else. Finally, remember costs. A business needs to control costs carefully. Apart from anything else, this is often the easiest way to improve short-term profitability – generating the cash you need to sustain your business. Understand your customers, cashflow, employees, selling skills and costs, and you’re well on your way to a winning formula for success in 2014.You can find more articles and reports ICAEW have produced on the www.businessadviceservice.com And do, please, join the discussion in our Business Advice Service LinkedIn Group. n Keith Proudfoot is regional director of the Institute of Chartered Accountants in England and Wales.

You must lead and motivate staff, and monitor performance. If cash is King, then communication is Queen; discuss and resolve any problems and frustrations, otherwise people will leave

111

bq-magazine.co.uk

service sector

overview

Shop till they floP The Chancellor’s token cut in blatantly unfair business rates will take the boards off very few high street shop windows, says Brian Nicholls Though more shops have been closing than opening generally around the country, a clear North-South divide damaging to the entire national economy shows up in retail. Any overall improvements during 2013 were mainly because 2012 was the worst year ever for retailers. On average, almost one in seven shops on high streets fell empty. And 22 of the 25 strongest performing high streets were in the South.

The North West, where some high streets had a one in five vacancy rate -– more than double that of London – was perhaps worst hit, on Local Data Company’s findings. But not even pop-up and charity shops, or illusionary shopfront facades hide the difficulties North East shops and stores have also been enduring. It’s ‘Tough’ with a capital T when big names like Greggs and Fenwick report lower sales. The Chancellor’s so-called reform of business rates, the very rates causing severe financial pain for many store managements and shopkeepers, will do little to lift either high streets or suburban shopping parades. The 2% cap relieves that pressure a little but – despite a discount for tiny businesses – falls short of the meaningful. Amanda Vigar, managing partner of V&A Vigar (Darlington) – a specialist in SMEs’ tax and accountancy affairs explains: “Tax will remain based on rental values, re-calculated

only every five years. So retailers are paying rates set in 2008 – before rents nosedived in most places. Worse, the next revaluation has been pushed back from 2015 to 2017. “Scandalously, then, businesses in areas where rents have fallen are paying much higher rates than they should, while those in hotspots where rents have risen have benefited. So retailers in Middlesbrough, to take a single example, are almost subsidising better off luxury jewellers and boutique shops on London’s Bond and Sloane Streets.” Online shopping, another common high street grievance, is another matter. Yes, around 20% of non-food items are now bought online, the British Retail Consortium estimates. What is surprising is the number of shop owners who bleat about this “leakage” yet do little to provide enticing websites themselves. Many feet are bogged in custom and practice while lots of enterprising little businesses in many out of the way

Businesses in areas where rents have fallen are paying higher rates than they should, while those in hotspots where rents increased have benefited Forward thinking: John Hays at Hays Travel has mastered the knack of multi-exploitation of opportunity

112

bq-magazine.co.uk overview

places are skimming good business simply with attractive and easily navigable websites plus prompt sale or return. Department stores now make around 10% of their sales online, following a 40% jump in their internet sales over the past year. The challenge is here to stay. Retailers of all kinds must consider an integrated strategy – not digital this side and non-digital that, which may only increase costs. Firms that have mastered the knack of multiexploitation include Hays Travel in Sunderland, still on the acquisition trail and prospering as the UK’s largest independent travel agent, by its clever meshing of online, high street and call centre initiative. An interesting spat went on during 2013 between the ‘Queen of Shopping’ Mary Portas and Bill Grimsey, boss of Iceland and Wickes, each with their own remedies. Portas made her recommendations as the government’s chosen retail archangel (making no charge). Grimsey prepared his because Grimsey is Grimsey. Too many political cooks are spoiling the broth, he suggested; the government needs to appoint a dedicated High Street Minister. He believes – hands up in horror - there are too many shops. Many shoppers would reply there are only too many shops that seem too much alike. He suggests ‘hyper-local’ deals to catch passing pedestrians’ attention, with accompanied targeting through social networking on mobile phones and email. Or, also on mobiles, relieve the queuing bugbear by letting people opt into facial recognition ways of payment. Dan Wagner, chief executive of

service sector

e-commerce and mobile payment innovator Powa Technologies, naturally champions mobile point of sale (mPOS). Some retailers have already introduced a system enabling browsing and buying to be interlinked using mobile payment strategies. And as shoppers who have placed orders online perhaps come to collect, the retailers have another chance to catch their eyes with offers and attractive displays. Mobile point of sale, it is suggested, reduces waiting time in busy stores and merchants can accept payments on the move wherever they are within the shop. Argos, despite some recent financial setback, has gone further than many other stores in

on Redcar’s high street, some business rates are five times the level of the rents landlords ask. Parking charges and time restrictions, too, are regularly blamed for dwindling numbers of high street shoppers. Grimsey also wants a one-off levy imposed on major stores and leisure groups to fund high street regeneration. That sounds a crude alternative to the more constructive Business Improvement Districts (BIDs) now taking root around the world. They must have some merit or New York would not have 57 of them. Under a BID, key shopping areas are given value-added qualities paid through a regular levy on the major shops, stores and other facilities

Department stores now make around 40% of their sales online, following a 40% jump in their internet sales in the past year. The challenge is here to stay

making online ordering for personal collection uncomplicated. Portas says high streets have to be social hubs more – taking in crèches, health clinics, markets and coffee bars. What? More coffee bars? Ten out of 12 test areas selected to receive funding from a £1.2m pot to finance novel ideas, including Newbiggin in Northumberland and Stockton, actually saw an increase in their empty shops, despite attractions they tried. But the high business rates are still considered prime culprit. Redcar’s MP Ian Swales told the Commons how,

standing to benefit, and with a business-led initiative to call the shots. Particularly successful in the UK is NE1, the independent company which in Newcastle has rolled back conventional shopping hours, laid on free entertainments, co-ordinated retail and entertainment offers, and generally made the city centre more appealing to all ages. Its £250m Alive after Five programme raised footfall in the city centre by 5.4% compared with an average decline for regional cities of 2.2%. And retailers’ satisfaction was expressed through the overwhelming

113

bq-magazine.co.uk

Vote of confidence: NE1 chief executive Sean Bullick believes Business Improvement Districts could play a role in breathing new life into the regionâ&#x20AC;&#x2122;s high streets

114

bq-magazine.co.uk overview

vote of confidence given when NE1 sought a second five-year term; 78% of businesses involved voted in a high turnout to finance it. Chief executive Sean Bullick who, incidentally, won the city council round to agreeing parking concessions, says: “I don’t think BIDs are the complete answer to the ills of the high streets but I certainly think they’re one of the answers. It has to be about an experience you can’t get elsewhere and is good enough to make you come in and then come back again.” Another North East BID, Distinct Darlington, seems by comparison to stutter a bit and skirt round rather than tackle challenges, though it is still in its

service sector BIDs are not the complete answer to the ills of the high streets, but I think they’re one of the answers. It has to be about an experience you can’t get elsewhere – good enough to make you come back infancy. Sunderland businesses have voted for a BID and that city has the volume and mix of retail that could make it succeed. Portas’s stress on restoring street markets is sound. In Newcastle, again, the social and commercial appeal of Grainger Market has been raised beyond recognition with an application of colour and Continental effect. As

for the high streets, they need to revive arcades of little shops to counter shoppers’ department store fatigue. Otherwise, high street shopping’s true potential will surely only be estimable when the economy is nearer full recovery and many shoppers no longer have to count every penny. Many believe the boom seen until 2008 was unsustainable anyway. n

company profile

Professional support There is a clear need for expert advice which helps SMEs and start-up businesses become the engines of growth which are key to the region’s economic recovery says Keith Proudfoot, ICAEW Regional Director

ICAEW chartered accountants can do so much more than prepare accounts and deal with the taxman.

They have the professional experience and expert knowledge to examine business ideas, evaluate potential and advise for the best chance of success. Local businesses can find this out for themselves. ICAEW’s Business Advice Scheme (BAS) offers SMEs advice on how to overcome the challenges they face in today’s economic climate. There’s an initial free session of up to 2 hours with a qualified ICAEW member and no future obligation. Keith feels it’s not just government’s responsibility to help businesses survive and thrive. “As a profession that acts in the public interest, we recognise our responsibility to offer crucial guidance” n

www.businessadviceservice.com to find your nearest BAS participating chartered accountant.

ICAEW (Institute of Chartered Accountants in England & Wales) is a professional membership organisation supporting over 142,000 chartered accountants around the world. For information please visit www.icaew.com

115

bq-magazine.co.uk

service sector

overview

Something new, something old As the services sector grew at its fastest since 2006, a notable development in North East legal circles was the merger of Dickinson Dees, the North East’s biggest law firm, with Bristol based Bond Pearce Bond Dickinson, as it is now, is focusing on energy, transport and infrastructure, retail and consumer goods, chemicals and manufacturing, private wealth, real estate and financial institutions. Conversely, an instance of tradition holding good, was Darlington law firm Latimer Hinks celebrating its 121st year. But with a number of North East law firms facing unprecedented challenges to their financial stability, accountants Baker Tilly have warned law partners they could face significant personal costs if their firm ceases to trade without a successor practice in place. A new Baker Tilly report, including

116

advice to lawyers on how to reduce risks of financial disaster, suggests perhaps half of all partners are unaware of the effect that their firm’s insolvency would have on them personally. Baker Tilly had earlier been involved in sweeping up a broken business in its own field. It recently acquired RSM Tenon’s profitable trading operations as Tenon, with 35 UK offices including Sunderland, went into administration. It was £10m in the red and had more than £80m of debt when Deloitte came in as administrator. The selective acquisition enabled all 2,450 Tenon staff, including 83 at

Sunderland, to keep their jobs. Among architects, 2013 was particularly notable for Ryder Architecture’s 60th anniversary. This national practice started in Newcastle, its original creators Gordon Ryder and Peter Yates being eminent designers of new town architecture in the early post-World War II North East. Today’s senior partner is Peter Buchan, and many of Ryder’s major achievements are still seen on home ground – Newcastle’s new Central Library for example, and a new facade in the refurbishment of the city’s grand old Central Station. n

bq-magazine.co.uk opinion

service sector

Law firms must change too Big mergers mooted, more firms going out of business... clearly lawyers are affected by changing times too, says Ian Gilthorpe The business of law is going through unparalleled change, and this will continue to gather pace. There are new entrants, offering alternative working models and coming into an increasingly oversupplied marketplace. Indeed, a recent report by accountants PwC said 83% of the top 25 firms report merger discussions, and these are increasingly likely to be with nonUK based firms as they look beyond the UK market to grow. There is also an increased number of firms going out of existence. Following a number of well publicised law firm insolvencies during the year, the legal sector has come under increased scrutiny from the banks and the sector’s UK regulator, the Solicitors Regulation Authority (SRA). The SRA now has 1,200 law firms on its financial stability watchlist. Clients are becoming increasingly sophisticated legal purchasers. They are, quite rightly, more demanding of their legal advisers. This requirement will only increase as the economic recovery takes hold. In response, law firms must find new and innovative ways to deliver legal services that meet the changing needs of their clients’ marketplaces. Two key areas will be making best use of technology and managing people so they are more efficient and effective. This is good news for clients. It means

there is greater choice and the North East is well represented with a range of law firms with differing client propositions. The firms with foresight, ambition and a clear strategy will outperform those unwilling to change. Two and a half years ago, Alan Fletcher and I saw opportunity in this shifting legal landscape and started Square One Law. To create a new legal brand in today’s competitive legal sector we needed to look for a gap in the marketplace and have a relentless focus on what clients want. They told us they wanted experienced lawyers who have a real understanding of their business and market sector; they did not want to be delegated to inexperienced members of a larger team. In the same way companies have had to streamline their businesses and become more entrepreneurial to stay competitive, at Square One Law we’ve stripped out rigid corporate structures, have not based ourselves in expensive city centre offices, and have invested in new cloud-based, technologies which allow us to work in a more efficient and responsive way. We are leaner, more agile, and have invested in people who have proven quality and experience.

Our offering also differs in that we have access to a wide network of other specialist lawyers and consultants where additional skills are required. We project-manage their contribution as an integral part of our client service team, at no cost to our client, to ensure a seamless service and a successful outcome. We have grown rapidly in two years and are now 11 partners and a total of 50 people, and we are involved in some of the region’s leading projects. Our diverse client base includes Able UK, Shepherd Offshore, Tharsus, Miller and Vardy Group. We are also working for clients in London and acted for Aker Solutions on its new headquarters site at Chiswick, opened by David Cameron. The PwC Law Firm’s Survey 2013 states: “The most agile firms are anticipating change and adapting. The medium term future of firms who don’t adapt cannot be assured.” This creates a real challenge for law firms, but will mean more options and improved service delivery for clients, which must be a good thing. n Ian Gilthorpe is senior partner of Square One Law.

Clients are becoming increasingly sophisticated legal purchasers – more demanding of their advisers

117

business support Innovation must feed into strategy, especially around inward investment. The overwhelming message from successful entrepreneurs is to embrace change and enable growth opportunities to be sought out and taken up.

bq-magazine.co.uk opinion

business support

Change for the better A year’s teamwork has gone into preparing a new thrust for inward investment into three key sectors. Paul Callaghan explains It’s been a year of change in the region, with shifting organisational structures, the publication of Lord Adonis’ independent economic review, shoots of economic optimism in the private sector and the challenges of ongoing funding reductions for public bodies and local authorities. Amidst this change, NewcastleGateshead Initiative is an organisation – a successful example of public private partnership in action – continuing to thrive. Everything it does is about delivering economic growth for NewcastleGateshead through national and international work to attract to the area visitors, conferences, events, students, investment and jobs. Joining the organisation as Chair at this time is an exciting prospect. I believe passionately in the region and want to see it grow and prosper, which is only possible by encouraging a vibrant cultural environment, nurturing and supporting entrepreneurs, developing indigenous businesses, attracting inward investment and extending education to create a talented and skilled population. The work of NewcastleGateshead Initiative is critical to these aspirations. NewcastleGateshead is the region’s capital, its most important conurbation. If the North East is to be successful, then NewcastleGateshead must be successful, and NewcastleGateshead

Drive to thrive: Paul Callaghan is passionate about the North East Initiative’s role is fundamental in helping to shape and drive that. An inward investment team is the newest addition to the organisation. In just over 12 months, it has forged ahead with ambitious work to secure investment from the UK and overseas. To attract the right businesses, the team, supported by consultants in

America and India, has spent the past year honing the proposition, to promote the area’s economic strengths effectively to potential investors. Three target sectors have been identified: creative and digital; marine and offshore; and science and health – areas where we have genuine strengths, where there’s maximum market potential globally, and where we can show our academic excellence with available talent. A collaborative approach with Newcastle City Council and Gateshead Council, as well as partners across the wider region, ensures that investment enquiries are responded to as one voice, to create compelling bids which attract investment, leading to more jobs and healthier local and regional economies. This client-focused and highly targeted system already yields results. To date, nine new investments have been secured, with 192 jobs. The team is currently proactive with 68 more businesses. An innovative soft landing programme – something unique to the region - has

If the North East is to be successful, then NewcastleGateshead must be successful, and NewcastleGateshead Initiative’s role is fundamental in helping to shape and drive that

119

bq-magazine.co.uk

business support

120

opinion

bq-magazine.co.uk opinion

business support

been developed exclusively to support overseas businesses wanting to establish long term in NewcastleGateshead. It provides impartial advice and a range of services, making it easier to locate and succeed in the area. There is also a refreshing approach to involving the private sector in business winning, from supporting investment projects and feeding into the sector propositions, to harnessing ambassadors who can act as independent and powerful advocates. As we explore and start to shape, as a region, the economic priorities and future direction for North East England, it’s critical that innovation feeds into the strategy, especially around inward investment. It must be a forward thinking and dynamic approach, focussed firmly on the end user to deliver the best possible service and system to secure new investment for the region. A co-ordinated and strategic approach

to business winning must also be combined with targeted and impactful marketing communication. If we can’t effectively articulate, position and promote what we have to offer, why should a global enterprise give us a second glance? Outward-facing activity to champion this great place we call home, and put us firmly on the national and international map, remains critical to long-term economic success. As we drive forward ambitious projects across all areas of work at NewcastleGateshead Initiative, I’m keen that we are actively engaged with the challenges and opportunities for the region, in 2014 and beyond. I believe we have a valuable role. Ability to collaborate, to innovate and to adapt will stand us in good stead. The same can be said for the North East. n Paul Callaghan is the newly appointed chairman of NewcastleGateshead Initiative.

If we can’t effectively articulate, position and promote what we have to offer, why should a global enterprise give us a second glance?

121

bq-magazine.co.uk

business support

opinion

Together we take on the world Nigel J Mills relays the questions that, answered correctly, can transform a business for the better

We live in a world of constant change and there is no more of a recognisable change than the transition from one calendar year to another. The Entrepreneurs Forum recently held its autumn conference during Global Entrepreneur’s Week at the world class, multi-award winning Rockliffe Hall Hotel near Darlington in the Tees Valley. The conference was attended by a sellout audience of more than 150 entrepreneurs who own and manage their own businesses ranging from small (fewer than 50 employees) to the largest businesses (more than 250 employees) in the region. They all had one thing in common; they were eager to meet new people, learn from each other and return to their businesses with at least one new idea or connection giving them an additional competitive edge. Many entrepreneurs and business leaders work in a narrow

122

business environment, be it in the confines of their own workplace or the industry they trade in, so can become myopic in their thinking and outlook. The speakers were refreshingly open and honest about their own experiences both in business and life. Their presentations were given a warm reception by the entrepreneurs who had made the bold decision to leave the comfort of their workplaces for a day, for the rare opportunity to reflect on their business journeys – and in that reflection lies the secret of success. All the speakers talked of the importance of mentors; when did someone last ask you awkward questions about your business model? When did you last allow the time and space to reflect on the unique skills and products that enabled your business to grow and prosper? Are those things still as relevant now in a changing market as they were in the past? Are there challenges ahead you are not aware of, or opportunities you are missing which could be taken advantage of by a competitor that will threaten your company’s future at worst, or restrict your ability to grow at best? These are important questions, which a mentor will help answer. The overwhelming message from these successful entrepreneurs was to embrace change to enable you to seek out growth opportunities. One

of the most effective ways to ensure you recognise these challenges and opportunities is to meet business people from all walks of life and, where appropriate, be mentored by them to help gain the competitive advantage that constantly presents itself as a natural by-product of change. During 2013 the Forum hosted more than 30 inspirational events attended by over 2,000 delegates. It provided the catalyst for over 400 members to seek mentoring advice from fellow entrepreneurs from all business classes. The change in calendar year gives us all an opportunity to pause, reflect and focus on changes that have occurred over the past 12 months. However, we then have two choices: more of the same or to change, step out from our routines and challenge the norm. For entrepreneurs and business leaders who grasp that opportunity, 2014 will be a year of change for the better. And if they attend future events hosted by the Entrepreneurs Forum they could not only gain mentoring support, but – by sharing their own business experiences – help others to grow. To quote Sir Peter Vardy, a co-founder of the Forum, ‘none of us got to where we are in business today without a lot of help along the way’. n Nigel J Mills is chairman of the Entrepreneurs Forum.

FUNDING SEARCHES (£49)

TENDERS & CONTRACTS (£149)

Bespoke report containing all grants, loans and equity schemes that are suitable for your company. Suitable for all types of businesses.

Bespoke searches for business opportunities automatically sent to you daily. Over 8,000 new tendering opportunities added every week. Suitable for all types of businesses.

INTELLECTUAL PROPERTY LANDSCAPING SERVICE (£300) Analysis of relevant information from patents, revealing valuable information about your competitors and markets.

VIRTUAL OFFICE AT NETPARK (FROM £199) Let us handle your business post and phone calls. Discounted prices for meeting rooms equipped with state-of-the-art presentation facilities.

These are just some of the many great quality business support services you can access with us. Talk to one of our Innovation Development Executives about these services and for details on how NETPark NET can help your business!

03000 265 505 www.uknetpark.net

NETPark NET NETPark Thomas Wright Way Sedgefield TS21 3FD

durhamlane is an independent thought leader on sales performance with a mission to raise the bar of the sales profession At the heart of everything we do is our Selling at a Higher Level™ sales methodology. Underpinning our proven methodology are our Sales Mantas. These have been designed to support people as they learn to understand the importance of developing the maintaining the right mindset for consistent commercial success. 1: BUSINESS FIT. Business value. Long-term relationships. Focus on identifying ways you can help your customers to serve their customers more effectively. 2: PROFESSIONAL, HUMBLE, COURTEOUS. Pro-active, Hungry, Ambitious.Think, act and behave professionally; always. At the same time be pro-active, always think how you can create new opportunity and find new people to help. 3: BE INTERESTED TO BE INTERESTING. The more interest we show in others, the more interesting we tend to become to them. Diagnose whether there is a problem before jumping in and presenting a solution. 4: UNDER PROMISE. OVER DELIVER. OVERWHELM. Lots of small successes quickly build trust. Set realistic expectations then do better.

5: QUALITY X QUANTITY X CONSISTENCY = HIGH PERFORMANCE. Do everything to the best of your abilities, do it often and make it consistent. Consistency is possibly the hardest piece of the sales jigsaw. 6: 24 HOURS TO CELEBRATE OR WALLOW IN MISERY. Enjoy success but recognise when things do not go right. Get back to business within 24 hours. It is vital the wheel of business development keeps turning. 7: ESTIMATE THEN VALIDATE, NEVER ASSUME. One of the biggest challenges sales people make is that they assume too much, too often. Estimate what you think a client wants or needs then validate these estimates through the careful use of questions. When you think like this you will have better business conversations.

Get in touch on 0191 481 3800 to see how we can help your business grow

bq-magazine.co.uk

business support

opinion

Designs on success From biometric sensors to sports equipment, the cutting edge contribution that good design can make to the commercial success of products is being realised at the Northern Design Centre. Terry McStea explains

Networked inspiration: Varied events run by Design Network North during 2013 included an annual conference, Design Means Business, and a 3D Challenge at the Discovery Museum in Newcastle Design Network North, now in its fifth year, has seen major changes in 2013. The team has grown to five, based in the Northern Design Centre at Gateshead, and has launched a number of new services, all aimed, of course, at increasing the awareness and impact of design in North East businesses. The Design for Growth programme, which offers funding for design projects, has supported more than 30 projects during the year, in areas including biometric sensors, film and video production, interior design, sports equipment, safety systems for the petrochemical industry and waste purification. Altogether 25 start-up companies

124

have attended the Evolution Bootcamp, an intensive five day programme prepared to equip them with the skills and knowledge to start their business. Three more Bootcamps are planned for 2014. And through its Design for Business workshops, companies have been helped to understand their customers, identify new products and apply design thinking to all areas of their business. The annual conference, Design Means Business, was held again at The Sage, and featured speakers from Orange and Philips, as well as local companies DECIDE and Eutechnyx. It also launched the first 3D Challenge, a design competition for young people. DNN can say confidently that 2014

promises to be even more exciting. The team is partnering with the Design Council to deliver its Design Leadership Programme, a bespoke package of support and coaching to help companies innovate and grow through design. Design Council also have an office in the Northern Design Centre, and will be using that as a base for further regional activity. DNN will be hosting some events in Yorkshire, where the teams has a number of members already, aiming to replicate some of the successes theyâ&#x20AC;&#x2122;ve seen in the North East. n Terry McStea is network manager of Design Network North.

bq-magazine.co.uk

business support company profile

Design Council Partnership Propels North East Companies to Success During 2013 Design Council formalised a partnership with Design Network North (DNN) to deliver its design-led business support programme to North East businesses. During 2013 Design Council formalised a partnership with Design Network North (DNN) to deliver its design-led business support programme to North East businesses. Working alongside DNN is Nick Devitt, one of the Design Council’s Design Associates. Nick is based at the Design Council’s Office at the Northern Design Centre a couple of days a week and on hand to speak to any SMEs in the region who want to know more about the Design Council’s Design Leadership Programme and how design can support their business growth. With a track record in helping SMEs to achieve their goals, from strengthening their position in the marketplace to diversifying their offer, the Design Council welcomed three new North East companies on to its Design Leadership Programme in 2013: Aide Memoire Ltd, First Contract Clinical and Cell Pack Solutions Ltd. The Design Council is pleased to work with many more North East businesses during 2014. In September, the Design Council’s Chief Executive, John Mathers, visited the North East to meet with the Design Leadership Programme’s former clients. Abigail Wilson, from Newcastle- based ‘Let’s Live Here’ spoke positively about the difference the Design Council made to her organisation; “Design really helped to grow our business. After working with the Design Council, our new name and the look and feel of

the office really helped us stand out and we became a talking point.” As we move into 2014, Nick Devitt is confident about the difference the programme can make to keep local businesses growing and innovating: “In the new year we’re expecting to engage with even more businesses in the area. We have plans to work alongside Gateshead Council, which will put us right at the very heart of the community and ready to provide design support.” And it’s not just SMEs the Design Council works with – the programme also offers support to public services. South Tyneside Council and Northumberland County Council have both enrolled on the programme. Through the tried and tested method of pairing public sector organisations with one of the Design Council’s

Design Associates, they work together through a process which introduces the organisation to the strategic value of design and helps identify opportunities for projects which will result in increased levels of customer and staff satisfaction, developed policy, transformed staff processes and training, improved risk management and created dramatic efficiency savings. n If you’re a business or public sector organisation, and you’re interested in finding out what the Design Councils business support programme can do for you, then contact Nick Devitt at the Northern Design Centre on 0191 499 8373 or directly on 07714 294 242. or email nick.devitt@designcouncil.org.uk

125

bq-magazine.co.uk

business support

overview

Fight for your dues The spirit to succeed is here. Determination to clear financial hurdles has to be firm too, says Brian Nicholls Encouraging for the North is that, despite its present disadvantages when compared with other parts of the country, its entrepreneurs are capitalising on the biggest opportunities for growth and are the most optimistic about the economy. Entrepreneur-led firms across the top welt of England achieved 24% growth in turnover in the past year, leading their counterparts in London and the South (19%), Scotland (17.1%) and the Midlands (12%). This is according to an analysis of 128 fast-growing businesses interviewed in a study for business advisors Ernst and Young. Figures from finalists in EY’s Entrepreneur Of the Year, split evenly across the UK, found that among business leaders in the North 83% expect significant turnaround in the economy. This compared with Scotland (43%) London and South (36%) and Midlands (30%). All expected improvement in the next year, however. A highlighted example of North East success was Geoffrey Thompson, chief executive of South Shields based Utilitywise, a leading energy management consultancy providing services business to business. He started the consultancy in mid-2006 with three employees. In year one the company did £100,000 worth of business, and made £5,000 profit. Despite heavy investment in IT systems

126

Growing nicely: Geoffrey Thompson’s firm in year one, 2006, did £100,000 worth of business. Turnover now is around £25m and management products and services, this has since reached a projected revenue of £25m and expected earnings of £6.9m before interest, taxes, depreciation, and amortization. Simon Whiteside, EY director and North East Entrepreneur Of The Year leader, says: “The importance of entrepreneurs in leading the economic recovery is clear. The impact on regional economies and confidence cannot be overstated.” Yet firms could be stimulated further, while companies at the other end of the scale could be helped towards stability. Experian data shows that the

UK’s largest firms are paying overdue bills three days later than a year ago, and 15 days later even than the UK’s smallest businesses. Ade Potts, managing director of the SME division at the global information services company, warns: “Late payment is creeping up again, especially at the larger end of the business world.” He advises SMEs to monitor credit closely to differentiate between debtors unable to pay, those that can but habitually pay late, and those willing and able to pay. Defining these customers opens the way to a strategy for getting paid.

bq-magazine.co.uk overview

Experian has a web portal, Business Express, that helps protect businesses from financial risk. Its simple online products help improve cash flows and reduce risks of bad debt. Eventually a company may have to resort to a small claims court or to publicly shaming the debtor. Either way, sadly, it may risk losing an otherwise valued contract altogether. Prime Minister David Cameron has pledged a consultation, but victims wonder how much talk will go on before more effective measures are introduced. YouGov research suggests 85% of small firms experienced late payments over the past two years, despite the government-backed Prompt Payment Code, in 2008. Although some 1,500 firms are signed up to this scheme some, it is claimed, have still stretched out settlement periods to 120 days – despite an EU directive stating businessto-business payments must be made within half that time. Experian says more than 50 companies are failing daily; 1,564 firms became insolvent in April, 688 had 10 or fewer employees and many probably had money owed to them. The Forum of Private Business wants firmer measures through the Chancellor to tackle late payment. Easing cashflow concerns is one of its members’ main anxieties. But banks, insistent on proof of efficient cash handling prior to making a loan, will cover the shortfall. Gary David Smith, co-founder of Prism Total IT Solutions which supplies systems to more than 1,000 UK SMEs, reckons bank lending to SMEs is in reverse across Europe and business growth could disappear through this. He says: “I know several profitable businesses whose bank charges have been raised in the last few months, and the Bank of England has reported that many small businesses are losing their overdraft facilities completely.” The Bank of England’s survey into

business support business conditions has seen SMEs report that even where they have found a loan, interest rates and fees have gone up within the last few months. “Banks are happy to lend to big businesses since they can make their money on charging for all sorts of other banking services. For small business, even profitable ones, the situation is still dire,” Smith claims. “Yet they will have to fuel our financial recovery and create badly-needed new jobs.”

Further research suggests 40% of SMEs have failed to secure funding from their bank. A disenchanted third wouldn’t bother asking again. And a quarter have been unable to take business opportunities forward because of the dearth of funding available. Ted Salmon, North East regional chairman of the Federation of Small Businesses, adds: “Reforms are urgent on business rates, energy charges and banking.” n

10 tips to secure payment Lovetts plc, a law firm specialising in commercial debt recovery, offers 10 tips to tackle late payment. 1. Make sure your customers know you want paying on time. Many firms give wrong signals, by failing to check their invoices have arrived safely and are on their customers’ ledgers. Keep the credit function properly resourced. 2. Tell customers early on, as part of good relationships, that legal action will be taken against non-payers. It needn’t get personal at this point, just be clear. 3. Count up the costs of going legal early on – i.e. interest, late payment compensation, indemnity costs under contract (make sure your T&Cs allow for this). Then tell the customer what that figure is. Explain your reluctance to escalate costs unnecessarily – £1,200 debts can easily grow by 50%, and businesses owe it to their customer to point this out! 4. Use a late payment demand (LPD), not just a letter before action (LBA). It should cost the same. 5. Use a draft winding-up demand for debts over £750 against companies, not just a letter! Worried about their financial stability? Move fast. Consider investing in a letter enclosing a draft winding-up petition. Maximum impact guaranteed, since it carries a risk of public advertisement. 6. Make a call before you issue a claim to remind them of the escalating costs in tip 3. 7. Make sure you tell your legal representatives to include your contractual costs, compensation and interest if you are entitled to them all. 8. After the claim is issued, ask the debtor if they want to pay to avoid judgment, which will hit their credit rating. More than 50% will. And be sure to get all the costs in tip 3. 9 If any issues or disputes arise with your debtors, obtain fixed fee advice from a specialist solicitor before sending an LBA. The advice will give you a better understanding of your legal position and the strength of your case. It will also set out tactics to resolve the case, and likely costs of taking legal action before you get sucked in unnecessarily. 10. Remember – being tough this time might save you the bother next time.

127

exporting Virtually any company can export its products and services – from single-owner operations to large corporations employing hundreds – and plenty of opportunities exist for North East businesses. In the year ahead there are a host of “high growth” markets worth looking at.

bq-magazine.co.uk opinion

exporting

Best ever export turnout A string of nations with high growth markets offers sales potential to North East companies. David Coppock reports Exporting is GREAT – great for the economy, great for jobs and great for your business. That’s the focus of a new campaign launched by UK Trade & Investment to encourage more SMEs to take the plunge into international trade. The campaign got underway in November at the start of UKTI’s biggest-ever Export Week, which it is hoped will encourage more firms to export. Nearly 5,000 companies took part in events up and down the country, with trade experts travelling to the UK from more than 70 countries. In the North East alone we welcomed around 680 delegates – our best ever turnout – at events across the region, many of them from companies that have never exported before. We’re

We know the UK’s future prosperity will not come from relying on domestic markets alone – exports are vital to our continued growth

129

bq-magazine.co.uk

exporting

delighted so many took the time to join us, and I hope we were able to inspire and inform them as they take their first steps towards overseas success or explore new markets. But our efforts are not confined to Export Week; we work tirelessly throughout the year to help companies realise their global potential. We know the UK’s future prosperity will not come from relying on domestic markets alone. Exports are vital to our continued growth, which is why we’re committed to helping Britain in the global race. More than £12,862bn worth of goods and services were exported from the North East in 12 months to the end of June 2013. But the number of exporters is still relatively low. We know more has yet to be done. The new campaign will target almost 3m people nationally to generate 3,000 appointments with UKTI’s international trade advisors (ITAs) and drive £1.2bn in export revenue. And with businesses earning £100,000 on average in additional sales within 18 months of working with UKTI, there is significant incentive for firms to contact us. UKTI has a dedicated team of ITAs to offer expert help and access to a

130

opinion

wide range of services that will help companies reach new markets. In the North East we also have two MidSized Business (MSB) ITAs that work exclusively with companies that have an annual turnover between £25m and £500m, to help push them to the next level of international success. Virtually any company can export its products and services – from singleowner operations to large corporations employing hundreds – and plenty of opportunities exist for North East businesses. In the last year we’ve seen strong growth in exports in the food and drink sector, as well as in manufacturing and machinery, while the automotive, chemicals and pharmaceutical sectors remain strong performers in the region. In the year ahead there are a host of “high growth” markets worth looking at including Vietnam, Indonesia, South East Asia, Mexico, Columbia and other Latin American countries. And UKTI is here to help every step of the way. Last year more than 640 North East companies took advantage of the wide range of support services available and I would urge companies to take up

the export for growth challenge and contact UKTI to find out how we can help. n Tel 0845 05 05 054 or email: enquiries@uktinortheast.org.uk. Also on twitter.com/UKTINorthEast. David Coppock is regional director for UK Trade & Investment (North East).

Delight is in the detail Export orientated Intertek at Wilton has 40 scientists who solve problems and carry out advanced materials testing, analysis and characterisation expertise for customers around the globe working on research and development (R&D) and production activities. Laboratory director Dr Ben Cliff says: “Worries that foreign safety and material needs are complicated and expensive to meet can stop companies exporting. But with the right information, support and expertise, firms can access new markets effectively and within budget.”

bq-magazine.co.uk

exporting

overview

Selling abroad is Surreal Company size is unimportant when considering a venture into export markets, as a strategic marketing agency has recently shown. Brian Nicholls reports No matter how small the firm, it can make it big in exporting. A prime example is Surreal Creative, a strategic marketing agency in Houghton-leSpring, which now draws more than half its businesss from the Continent following a strategic reshuffle of its business when recession began to grip the UK. Its international clients include one of the world’s leading medical technology firms, US-based Stryker, and the relationship has developed to a point where Surreal now handles Stryker’s creative portfolio across Europe. This marks a change in strategic direction to become recognised as an international branding agency, and now with help from UKTI the firm has launched its new digital agency in Porto, Portugal. Ian Smith, managing director of Surreal Creative, says: “We thought it might be a pipe dream to win clients across Europe when we signed up to a Passport to Export scheme. But with help from UKTI, a well planned Overseas Market Introduction Service and building up strong links with both the UKTI Lisbon and New York offices we were able to strengthen our vision. “Having now used Gateway to Growth (G3) and further OMIS support, we have been able to identify why Porto was a good base for a new arm to the business. Next stop America!”

North East ports are well equipped to ship anything from a new car to a new pin anywhere, and help to bring revenue into the region The Netherlands remains the largest single market for North East goods (£1.531bn exported in 12 months to September 2013). Exports to nine of the region’s top 20 markets grew during the past 12 months. Thailand is still the region’s fastest growing market with an increase of £376m, which may reflect on the output in SSI steel plant at Redcar. South Korea saw an increase of £29m or 36.04%; Turkey an increase of 33.41% and Sweden an increase of 29.26%. And exports of iron and steel showed very strong growth – 84.45%. Despite all this, the latest quarterly figures from HM Revenue & Customs show exports from the North East have fallen again, but there are grounds for optimism with strong growth in

some industry sectors. During the third quarter of 2013, the total value of exports from the region was £2.939bn, compared with £3.031bn in the previous quarter – a 3.17% slip. This gave a 12 month rolling value of £12.346bn, a 13.68% fall compared with the 12 months rolling total up to the end of June 2013. Nationally, total annual UK exports fell by 0.24%. David Coppock says that while a further decrease in exports is disappointing, the annual total remained higher than the period immediately following the start of the recession, and there are signs of strong growth in some industry sectors and specific markets. “Follow the footsteps of Surreal Creative,” he suggests to firms that may be considering selling abroad. n

131

built environment In association with

Recognising the North East as a stand-alone region in spend allocation, thereby making some amends for earlier shortfalls, the government could enable the regionâ&#x20AC;&#x2122;s employers to train more apprentices. That would reduce unemployment and raise skills levels.

bq-magazine.co.uk opinion

built environment

Three steps promise progress Low demand has held the North East’s property sector at a standstill during much of 2013. But 2014 could be different if major proposals of restructure in administration go through, says Kevan Carrick

Several major proposals, if approved, could benefit the economy and the property sector of the North East immensely. Seven local councils in the region comprising Durham, Tyne & Wear and Northumberland have proposed a Combined Authority (CA) to deal with strategic transport, economic development and job creation. The government was due to end consultation on 2 January 2014. A strong positive response might see the CA established by spring 2014 and chaired by Councillor Simon Henig, Leader of Durham County Council. This will be especially positive if

the councils and the private sector collaborate to create a marketing vehicle for the region to attract inward investors and work in partnership with UKTI. The seven local councils and the North East Local Enterprise Partnership have also collaborated on a submission to secure £500m for infrastructure funding, and the establishment of a JESSICA or North East Urban Fund, aimed at supporting development with funding. This will boost £50m or so that the NELEP Investment Fund is lending to kick start both development under the Growing Places Fund and job creation under the Regional Growth Fund. A way must be found of using the fund for lending to grow viable development in the region, so that the monies can have a big impact. The joint approach from the NELEP and the seven councils has applied to the creation of a North East Strategic Economic Plan, which if approved will form the basis from which the CA and NELEP will operate. This plan could have many synergies

with the Adonis Economic Review published by the NELEP during 2013. If these three initiatives happen by spring 2014, I foresee a highly competitive, expanding economy in the region, and one beneficial to the property and construction sectors. While the region is doing reasonably well, it needs to do better. The NELEP commissioning a report to identify the priorities for infrastructure spending will help focus delivery of physical regeneration for the region. We have the established City Deal for Newcastle and Gateshead and the emerging City Deal for Sunderland and South Tyneside. This allows councils to borrow on the potential business rates and invest in the region’s infrastructure and development. Doing so in partnership with the private sector will be a significant opportunity to provide jobs when shortages in industrial units and city centre offices are already becoming apparent. In the south of the region, Tees Valley

A way must be found of using the fund for lending to grow viable development in the region – so the monies can have a big impact

133

bq-magazine.co.uk

built environment A tale of two halves We have a UK property market of two halves: London and the South East are forging ahead in commercial and residential terms, whereas the North East and other regions are still suffering low demand and low growth. This is despite indications the recession is being left behind. A recently published Competitive Survey 2013 showed that Newcastle had improved its position relative to the South East but the cities and large towns in the South continued to outperform. Also the Local Enterprise Partnerships in the South were more competitive, judged by development, than the North. I argue that is an oxymoron; the economy in the South East is fuelled by demand, whereas the North is not. In fact, we are doing reasonably well in the North East. We have the only positive contribution to Gross Value Added through our exports compared with all the regions bar the South East. We are outperforming all the other LEPs in delivery of jobs and in the performance of its Growing Places Fund. Quality industrial property is evident in the prime location of Gateshead Team Valley, while Washington in Sunderland head toward a shortage. Grade A office supply in city centres is diminishing, but rent levels out of town are highly competitive. While we could do with more demand in the market, the region has not done too badly over 12 months. I am preparing for an optimistic 2014.

134

opinion

If these three initiatives happen by spring 2014, I foresee a highly competitive, expanding economy in the region, and one beneficial to the property and construction sectors

Unlimited – the Local Enterprise Partnership for Darlington, Hartlepool, Middlesbrough, Redcar & Cleveland and Stockton – has worked alongside local authority and private sector partners to create the Tees Valley City Deal now announced. This secures £12m allocated directly through the City Deal with £22million

announced previously through programmes during the City Deal process. Low demand has kept the property sector in a stasis for much of 2013. I am optimistic of change in 2014. n Kevan Carrick is a partner in JK Property Consultants LLP.

bq-magazine.co.uk opinion

built environment

A fall between two stools As things stand, a stark divide in recovery is set to widen further when infrastructural projects such as the Thames Tideway begin in the South, say Douglas Kell and John Dickson Autumn statements come and go. And each time the North East’s requests for government backing to get its infrastructure up to standard fall like leaves from the trees. Those trees are bare again, despite the Treasury’s recent announcement of a new national infrastructure drive of more than £375bn of planned public and private sector investment – in energy, transport, flood defence, waste, water and communications up to 2030 and beyond. Between the UK and Scots parliaments together, the big spends are scheduled above and below the North East geographically. Has someone in Whitehall Tipp-exed an entire region off their maps? Trends now show an onset of recovery elsewhere in the UK’s infrastructure and building work, which will exacerbate even more the damaging difference in workloads between the North East and the South of England. An online advertising site has observed how almost 50% of all construction jobs it advertises have been in the South, and only 3% in the North East. Places like Cambridge, Guildford, Reading and Oxford have twice as many vacancies as jobseekers; places like Sunderland have 20 people chasing each job. Member firms of the Civil Engineering Contractors Association (North East), which is working with the Institution of Civil Engineers and the Association

135

bq-magazine.co.uk

built environment of Civil Engineers in this region to convince the government of the North East’s poorer position, is stressing how, in the South and South East, shortages of labour and skills are raising costs and thus prices of new houses there to a point where the Bank of England has felt it had to remove its support package for mortgages. In the North East, firms see the government’s agenda now moving on in consequence from investment in infrastructure to addressing a skills shortage. But without action to restore regional balance, young people entering the industry from here will simply be trained to move south – if they can afford it. London for Transport (LfT) has said £2,750 a head is spent in the London area but only £5 a head in the North East. The industry here is not looking for the £2,745 difference per head, although it does note that infrastructure resulting from the £8.92bn cost of London’s Olympics remains to the permanent benefit of London. A mere £5 to £10 a head extra from the Treasury, though, would not only raise the North East’s potential to secure more private inward investment, but also improve the prospects of young people, some of whose families may have three generations out of work presently. Recognising the North East as a standalone region in spend allocation – only making some amends for earlier shortfalls, after all – would enable the region’s employers to engage and train more apprentices. That would meet two of the government’s aims ahead of the next election – reducing unemployment and raising skills levels. We would therefore welcome the Chancellor’s help to supply our industry with less deciduous trees now and more evergreens. He could speed up

136

significantly the investments already announced for our region. Or funds should be sanctioned (say, £100m), run by the North East and Tees Valley Local Enterprise Partnerships – to be accessed by local authorities in tranches of no more than £2.5m – for designated (small) infrastructure improvement projects. This would stipulate the money is spent before the end of 2014. It would be for improving and not repairing infrastructure – so not simply more money for potholes.

opinion

As things stand, the North East is about to fall between two stools, and a stark divide in recovery is set to widen further when projects such as the Thames Tideway begin in the South. n Douglas Kell is director of the Civil Engineering Contractors’ Association (North East). John Dickson is chairman of the association, and also of the Owen Pugh Group.

bq-magazine.co.uk

built environment company profile

2013 SHOWS IMPROVEMENT PARTICULARY FOR THOSE LINKED TO HOUSING Lets hope 2014 sees the improvement spread to all areas of construction Last year at Esh Group we talked about our HCA grant of over £10m to provide over 500 affordable homes kick starting our workload. It certainly did that and although maybe only halfway through the delivery of the houses which are due to be completed by March 2015 other areas of the housing market have contributed to a very busy year for Esh. Our allocation alongside other Housing Associations (finally getting sites on the ground after the long haul of planning in many cases) and the improvements in the ‘houses for sale market’ has had a domino effect on construction related to housing. The Governments ‘help to buy’ scheme has certainly underpinned the sales market and allowed more purchasers to enter the market. At Esh this does not just affect the physical build of the house carried out by Esh Property Services but is linked to our Lumsden & Carroll Civil Engineering arm putting in infrastructure such as roads/sewers and foundations not only for the house builders but also infrastructure owners such as Northumbrian Water. Likewise our Deerness Fencing and Landscaping business has had its busiest year since 2007 doing what it says on tin across all areas of housing. This then spins out to the plant hire market where again we are represented by Mechplant who have felt the benefit by being

138

able to increase plant utilisation across housing sites. Unfortunately one area we don’t have control over is the supply of materials such as bricks, blocks and roofing tiles. With the uplift in demand material manufactures and suppliers have struggled to keep pace and production has been affected. The problem we’re seeing is that many have cut capacity after the downturn and investment going forward may be on hold pending a sustainable recovery. What we do have though is a massive amount of goodwill based on integrity and trust over the last 40 years and we need to thank our suppliers who have kept us going as the pace has been raised. Likewise the increased workload is highlighting the problem we had pre 2008, that of a shortage of skilled workers. Lets praise the highly skilled workforce we have within construction;

people will need increasing and this is very much on our agenda with plans to increase our intake of apprentices to over 100 in the next 3 years. I have talked a lot about housing and that maybe says it all, for the rest of the market which we would describe as very mixed, utilities has always been there and is a vital part at all times. Retail has some good spots but mainly subdued, commercial build is steady but produces very low margins. The maintenance sector was predicted for growth with the thought that many organisations would look to outsource more to save costs; it has been a slow burn however turnover in this sector with Esh Facilities is flat at around £10m per year. The Green and Eco market is unpredictable being at the mercy of government policies which seem to be forever changing with adjustments

Esh are committed to ‘Added Value’ via our many schemes working with young people to make them employable and supporting communities in which we work we at Esh have certainly seen a rise in standards over the last 10 years and a workforce that has been resilient over the last 5 years with the many challenges to face. Investment in young

and delays to feed in tariffs, recent changes to the method of recovering the costs of these measures and doubts over government commitment. In some respects we can understand it as it is

bq-magazine.co.uk

built environment company profile difficult to come to terms with this relatively new market however many companies who have built or moved their business in the direction of Green/ Eco business have found it difficult. At one stage it looked like being the next treasure island for all involved but in our industry this rarely happens and there is always a evening out factor. Our strategy at Esh as always has been to be cautious and whilst having the capabilities to do the work we run it within our existing operations and avoid all out commitment to one particular area. Moving to the future and what 2014 may hold for construction, ‘oh for a crystal ball’. Will recent announcements by the Bank of England on the FLS (funding for lending scheme) to end it a year early negatively affect the housing market? If the housing market recovery continues will that confidence filter into other sectors? Can regional companies like us see some light at the end of tunnel as far as the battle for a level playing field in the area of public procurement goes? We obviously hope that the momentum gained in 2013 can be built on in 2014 either way our view has always been to make sure the business offering is diverse and able to quickly react to market changes, I suppose that is a facet of being a regional player. Our diversity recognises that customers require quality work, built to programme for an agreed price, this is expected now but the question is what else can we offer our customers? We at Esh are committed to ‘Added Value’ via our many schemes working with young people to make them employable and supporting communities in which we work. Young people are needed to keep the industry revitalised and we must do

more to sell the many rewarding careers that construction now offers. Young people sometimes still see it as bricklayers, joiners, plumbers etc and whilst these areas are vital rewarding careers there are many new opportunities brought about by the changing face of the industry. We need

IT skills, business development and marketing specialists, administrators, accountants, Health & Safety managers, alongside engineers and quantity surveyors. These are just a few of the wide ranging opportunities that will be available as we look to future proof our workforce. n

139

training & recruitment In professional and technical staffing, shifts are aligned to the investment and development of technology, cloud, telecommunications and digital services. At apprenticeship level, lots more can be done to attract high calibre entrants.

bq-magazine.co.uk opinion

training & recruitment

Skills scarcity boosts salaries The enthusiasm shown by the government for developing New Economy augurs well for career building in the North East, says Therese Liddle In the round, 2013 has still been tough in the North East markets following much optimism coming out of 2012. And while challenges remain going into 2014, there is clear room for optimism in many sectors. Clients have continued with caution in hiring and that, in itself, has engendered some caution in professional candidates holding on to current roles rather than risking a move That said, we have seen continued demand at executive level. appointments. In the public sector weâ&#x20AC;&#x2122;ve seen ongoing demand in education where transformation programmes in higher education are creating opportunities for executive talent and, indeed, creating specialist permanent and interim opportunities, not least in digital and technology, and procurement. Uplift in financial services is creating opportunities for contact centre recruitment in this region and beyond as we see full lifecycle financial requirements â&#x20AC;&#x201C; in mortgage lending, in credit card sales increase, in collections and ultimately in debt recovery. One skill shortage facing the sector is CEMAP, the qualification required by the FCA for regulated sales. Many businesses are making further Tough times: Therese Liddle, however, believes there is still room for optimism

141

bq-magazine.co.uk

training & recruitment Many businesses are making further investment in training and qualifying existing staff, but those with the qualification are in high demand investment in training and qualifying existing staff but those with the qualification are in high demand. In the wider context of volume recruitment, there are clear signs of a shift to higher paid roles in volume centres – where multi-skills are necessary – in shared service centres or BPO (business process outsourcing) operations, where we are seeing demand for financial / accounting skills, technical and helpdesk support, and an ongoing increase in demand for Eastern European languages, as businesses centralise back office functions. A clear positive indicator is the reversing trend to onshore processing centres that were typically offshored to India in recent years.

In professional and technical staffing, the two identifiable shifts in our region and indeed in the wider UK are aligned to the investment and development of technology – cloud, telecommunications and digital services, where the skill demand is evident not only in the SME digital business community but also in blue chip and corporates. The government describes this as the New Economy, and for the North East this is a significant sector for future employment, as we have the highest number of new technology company start-ups outside London. Our regional universities provide a strong base from which graduates can enter these organisations and

opinion

develop this regional niche excellence for the future. Without question, the greatest demands for skilled staffing remain in engineering, where we see the continued demand for level 3 and 4 qualified engineers. The region is unable to meet the market demand from employers across manufacturing. In oil and gas and wider energy markets, the demand for project managers exceeds supply, and escalated salary trends will continue for the foreseeable future. While progress is being made in apprenticeships and vocational training, further supported by transitional employment from the armed forces and military, longer term skill needs may be addressed. But in the short and medium term, industry grapples with the skills shortage and escalating salary trends, not least in the contractor market. n Therese Liddle is managing director of NRG Group.

Tomorrow’s talent today Anne Isherwood, aware of the important role apprenticeships play in the North East economy, recounts their progress so far, and details what more she believes must be done to ensure they stay firmly on the agenda With more than 38,000 starts in 2011/ 2012 – a 107% increase on 2009/2010 – it is clear progress has been made with North East apprenticeships over the past three years, helped by some strong initiatives to drive interest among employees. However, we

142

must do more, particularly around the benefits apprentices can offer SMEs, to convince more businesses to take this route. Some nervousness is still apparent among smaller firms about apprenticeships. Where big businesses

are more likely to take a chance on recruitment, small businesses consider every penny vital. A ‘one size fits all’ doesn’t always work. More must be done to sell a compelling message to the SME market, highlighting that they could be adding

bq-magazine.co.uk opinion

training & recruitment

Demanding more: Anne Isherwood wants more employers to take on apprentices

The more engaged employers are in the process, the more likely they are to buy into apprenticeships a valuable resource to their workplace. Not only is it cost-effective to take on an apprentice, they are getting someone whose skills are matched to the specific needs of their business – something vital for any business, particularly SMEs. Strong economies can’t be built on big business alone. SMEs have a significant role, and supporting them in recruiting skilled people who can strengthen their offer is key. Although more needs to be done, some progress has been made. The Richard Review commissioned by the government to look at improving the current system has brought about reforms that will see the money goes directly into the hands of the employer rather than the provider. This switch in power will give them more of a say over the training framework. Although this creates challenges for providers, it will also have huge long-terms benefits. The more engaged employers are in the

process, the more likely they are to buy into apprenticeships. Plans revealed by the Prime Minister in October brought further welcome news. His proposals include placing a greater focus on quality for the learner and ease of use for employers. We at Sunderland College fully support this aspiration and are looking at how to reduce administrative burdens for employers. I would also like to see more done to encourage participation among key growth sectors. There is a danger that the region’s burgeoning engineering and manufacturing sectors, as well as other growth areas, will stagnate unless more is done to attract people to careers in these fields. The North East Economic Review developed by Lord Adonis, on behalf of the North East LEP (NELEP), highlighted the importance of guiding people into struggling sectors. It is the job of further education establishments, schools and local authorities to

understand these needs and guide young people into relevant sectors now, to future-proof these industries. In terms of attracting apprentices, Sunderland College’s intake highlights that more young people are seeing the benefits of becoming workready following school. We added apprenticeships to our offer in 2008 and we’ve quickly gone from a standing start to more than 300 apprenticeships completed in the last academic year – and with overall success of 77%. In fact, around three quarters of our intake are enrolled on one of our 100 vocational courses. While progress is clear, lots more can be done to attract high calibre apprentices. The grading system due to be introduced – whereby apprentices will be graded with a pass, merit or distinction – will help remove any misconceptions that apprenticeships are only associated with blue collar work. They will help encourage bright, ambitious students along this route, attracting more employers in turn. The period of change taking place in education, particularly the increase in university fees, presents an opportunity to drive further the ‘earn while you learn’ message. Our information, advice and guidance (IAG) team works directly with students in schools to discuss their aspirations and makes suggestions geared towards the needs of the regional economy, where appropriate. Advice teams must challenge young people so they make the right choices early on – not only for them, but also for the future of the region’s economy. n Anne Isherwood is principal at Sunderland College and a board member for the North East LEP with a responsibility for economic regeneration through skills development.

143

bq-magazine.co.uk

training & recruitment

overview

Values recognised: Ralph Saelzerâ&#x20AC;&#x2122;s company Liebherr at Sunderland has been exemplary in training apprentices to succeed an ageing workforce

Work from the bottom up The apprentice to boardroom trend returning to manufacturing and other businesses will surely inspire school leavers if earlier examples can be put across, says Brian Nicholls

144

bq-magazine.co.uk overview

Consider the bosses of three successful yet very different North East businesses and ask what silver spoon they started out with. Vic Young owns his own eponymous motor sales and services company, turning over £17m at South Shields; Bryan Burn set up Nortech Solutions, at Wynyard on Teesside less than three years ago and already turns over £8.2m through engineering design and project management expertise; Keith Miller, managing director of Ecco Finishing Supplies at Middlesbrough, has transformed his £40 initial investment into a £4m a year turnover SME. All three started out as apprentices, in fact. Even David Harrison, managing partner of a second multi-million pound financial services firm he has developed in Newcastle, True Potential, was apprenticed once to Consett Iron Company. And the new North East Business Executive of the Year, Mike Matthews, European head of the multinational car parts manufacturer growing at breakneck speed in Eaglescliffe, is an ex-apprentice too. Anyone wondering how apprentices might fit effectively into their organisation today would do well to visit Liebherr’s Sunderland Works on the banks of the Wear. It is one of the nation’s top 100 employers on the list of UK firms supportive of apprentices, as judged by City and Guilds and the National Apprenticeship Service. The firm, employing 200 people, has helped train more than 60 apprentices over five years. Currently more than 15% of its workforce are apprentices. Managing director Ralph Saelzer says: “We recognised years ago we had an ageing workforce. We needed to address it quickly to ensure we could continue to meet customer demand. We are proud to deliver apprenticeship programmes. I strongly advocate

training & recruitment this route for businesses of all sizes, operating across all sectors – not just manufacturing. “We have a responsibility, as employers, to bring through the next generation, and our commitment to apprenticeships is one way of doing just that.” Nearly 860,000 young people nationwide have been taking part in an apprenticeship during 2012/13 – almost 370,000 more than three years ago. And, says the Skills Funding Agency, more than 1.5m people have signed up for an apprenticeship since 2010.

Opting for youth In a major vote of confidence for young job hunters, Food giant Nestle has pledged, over the next three years, to create 1,600 jobs for school leavers and graduates, many of them at Newcastle. These will include paid work experience placements with opportunities from shopfloor to management training. The firm’s Tyneside factory at Fawdon is Nestle’s second biggest UK operation. Its current workforce of 500 will be expanded.

Government plans have now been announced for new ‘tougher’ apprenticeships, as Anne Isherwood outlines elsewhere in this section. However, with more than a million young people still out of a job, education or training, the CBI believes more yet must be done to narrow the gap between career guidance essential to them, and what they are actually receiving. A survey of 2,000 14-25 year olds, run with expertise from Barclays, showed 93% felt they lacked enough information to make informed choices on a career. Around twothirds surveyed had been guided on

A Level choices (62%) and university (65%), but only a quarter (26%) had information on starting an apprenticeship and even fewer (17%) on what vocational qualifications might be available. School leavers who show initiative of their own, even by just digging out information at their local library, are obviously advantaged. But some school leavers coming to employers and training organisers are found to lack even basic attitudes to work in general, such as punctuality, tidiness, politeness and initiative. Some wonder why habits such as staying earplugged into music, clutching a mobile phone throughout the day or wearing a baseball cap back to front in the office are not acceptable. But almost 20% of children in the region live in a home where no-one works, and some families have three generations unemployed, largely through no fault of theirs (other than that a number do not now volunteer to retrain). The CBI feels progress on school reforms over a year has not been positive but enough. John Cridland, CBI’s director-general, says business needs young people who are rigorous, but also ‘rounded and grounded, with characteristics like determination, optimism and emotional intelligence.’ “Too many young people are failed by a system primarily focussed on getting them through exams rather than nurturing and developing the whole person,” he argues. The Chartered Institute of Personnel and Development says corporate backed volunteering - where businesses support young people to deliver social action projects, boost local communities and help smash barriers between young people and employers is helpful. A lot of this goes on already, certainly in the North East, but perhaps could be stepped up. n

145

conferencing, hospitality & events In association with

Thereâ&#x20AC;&#x2122;s a wealth of opportunities to grow the number of leisure and business visitors to the North East â&#x20AC;&#x201C; not least the Rugby World Cup in 2015. And there are major developments under way to broaden the tourist appeal of the region.

bq-magazine.co.uk opinion

conferencing, hospitality & events

Suddenly, the golden county County Durhamâ&#x20AC;&#x2122;s stunningly successful year of events shows whatâ&#x20AC;&#x2122;s possible when everyone pulls together, says Melanie Sensicle

147

bq-magazine.co.uk

conferencing, hospitality & events Fresh from winning seven golds at the North East Tourism Awards, I don’t think I am overstating it to say 2013 has been a stunningly successful year for Durham. From the dales to city, from vale to coast, we have celebrated our heritage and landscapes, our people and places as never before. A focus on festivals and events is how we have chosen to do it and Visit County Durham has been on hand to get involved and tell more and more people why they should visit Durham. The county was profiled in The Times and The Independent, at Kings Cross and Edinburgh Waverley stations, across the internet and in specialist magazines during Durham’s biggest ever national marketing push. The campaign reached millions and changed perceptions. So, a quick run through of what made it possible. It started in April with Beamish’s Great North Festival of Transport and the Bishop Auckland Food Festival and moved into summer with the BRASS and Streets of Durham Festivals. As autumn approached, the Durham Book Festival swung into action along with the new North Pennines Walking

Festival – and our extreme cycling experience the Etape Pennines. To round it all off, we invited everyone to indulge in that great English pastime, shopping, at the Durham City Christmas Festival. I haven’t forgotten the big three – Lumiere, the Ashes Test and Lindisfarne Gospels Durham. But it seems important to note that the county’s regular programme of culture and sports is in good health. The sheer quantity, quality and range of stuff that happens in our attractions, venues, museums, towns, villages and communities is fundamental in giving people a great experience when they visit. It is also what makes them return year after year. Lumiere – what a spectacle! The astounding sight of a giant elephant trumpeting and stomping around on Elvet Bridge will stay with me a long time. The Ashes Test – what a thrill! I was lucky enough to witness England bowl out Australia in a few short hours and retain the Ashes. Durham County Cricket Club has gone on to win two national ECB awards including Best Team. Of course they did. Lindisfarne Gospels Durham – what emotion! The event sold out, welcomed

opinion

people from over 50 countries and was the catalyst for a region-wide celebration from Berwick to York, from South Shields to Carlisle. The event won two golds at the regional tourism awards and goes forward as a contender at the nationals next spring. As the county catches its breath and prepares for 2014, work has begun to see what benefits culture delivered in 2013. They are expected to be substantial. For the visitor economy we predict culture-led regeneration will be reflected in increased occupancy levels for our accommodation providers, higher footfall at our visitor attractions and healthier bottom lines for many hospitality and retail businesses. Yet for me the most satisfying aspect of 2013 was witnessing the pleasure and pride that so many people got from taking part in our year of culture. We all did our jobs, we all played our part, and we all had a lot of fun along the way. n Melanie Sensicle is chief executive at Visit County Durham, a destination management and marketing agency working to grow the county’s visitor economy.

A year to remember: 2013 was an eventful 12 months for Melanie Sensicle, above, and her team at Visit County Durham

148

bq-magazine.co.uk opinion

conferencing, hospitality & events

the limit for visitors A hat-trick of enterprise and good fortune looks certain to brighten Northumberland’s revenues from hospitality, says Brian Nicholls Funny how things turn out. When plans for Kielder Water were announced in the late 1960s, the UK’s largest artificial lake to be surrounded by the already existing largest man-made woodland in Europe, protest raged. ‘Drowning the countryside, destroying farms’ and other criticisms had to be countered before Kielder was opened by the Queen in 1981. That its existence rested on predictions of soaring industrial demand for water made its new appearance the more questionable after thirsty industries declined, and more water-efficient industrial processes, together with better control of water supply leakage, took effect. “White elephant”, it was called in the Commons. Yet now Kielder is acclaimed the UK’s best tourist experience in latest VisitEngland awards, and ‘the darkest place in Europe’ – ideal for seeing the night sky at its clearest and finest. The International Dark Skies Association having given it gold tier status, we may safely assume that the 250,000-plus visitors a year who already enjoy the leisure attractions which accompanied Kielder’s development will be joined now by many more star gazers. Hotels and other rural businesses there should benefit, as should those in the vicinity of two new projects underway elsewhere that could benefit Northumberland’s hospitality industry

Behind Widdrington: Greg, Chris and Ben Davies who have put up the plan by over £7m a year in all if predictions are realised. A £50m tourism resort, projecting up to 700 jobs on 800 acres of reclaimed surface mine land near Widdrington (also in the north of the county) has initial planning permission. The outcome could be the UK’s first Active Lifestyle Resort, a template for elsewhere. Meanwhile, westward towards Carlisle at Once Brewed on the Military Road (B6318) skirting Hadrian’s Wall between Heddon and Greenhead, a £10.5m landscape discovery centre and youth hostel called The Sill is taking shape in Northumberland National Park. Proposals for Widdrington’s short break adventure park include a four star holiday village with a 50-acre lake, snow slopes, gorges and canyons, mountain bike trails, off road 4x4

vehicle courses and the UK’s biggest tree house adventure playground. Up to 100 camping pods for younger guests will feature, as well as a fun pool and a climbing wall. The construction industry might benefit by £13m during the two year build. It is then estimated that, after a summer 2016 opening, extra spend to the local economy would top £8m. Members of Northumberland County Council’s Planning and Environment and Public Rights of Way Committee have approved a central hill area to serve the ski hill, canyoning, mountain biking and rock climbing – once a fully detailed plan is accepted. Chris Davies, chief executive of Active Leisure Resorts, has been planning the facility for eight years, with his sons Ben and Greg. He promises it will be “one of the most original and exciting leisure experiences created in decades.” Owen Michaelson, chief executive of Harworth Estates, which owns the land, sees it as a delivery of new jobs and a positive legacy following 25 years of continuous mining. There have been more than 700 job losses nearby within 18 months, following the closure of Alcan Smelter in Lynemouth and Northumberland Foods in Amble. The centre beckoning visitors to where the Once Brewed now stands could provide up to 156 jobs after 2016. Up to 120,000 visitors are expected annually. n

149

bq-magazine.co.uk

conferencing, hospitality & events

opinion

A great year for visiting There’s a lot to celebrate in the region’s conference and hospitality sector, says Sarah Stewart

In November, the region’s tourism industry came together at the North East England Tourism Awards to celebrate what has been a great year for the sector. More than 90 businesses entered the awards and over 460 people attended the event at St James’s Park in Newcastle. In NewcastleGateshead there’s been a lot to celebrate. Higher overnight visitor numbers and ongoing investment in the hotel

150

and retail sectors show growing business confidence. The role of NewcastleGateshead Initiative is to inspire people to visit and to live, learn, work, and invest in the area. Its national marketing campaigns (partly funded by Regional Growth Fund support via VisitEngland) attract growing numbers of visitors from across the UK. And, working with partners such as Aer Lingus, easyJet and DFDS, overseas

Making waves: DFDS is a major partner in attracting mainland European visitors to the North

NewcastleGateshead’s visitor economy is worth £1.3bn – 2013 figures suggest further growth

bq-magazine.co.uk opinion

conferencing, hospitality & events

visitors are attracted too, particularly from Ireland and Holland. Our visitor website has been listed among the top ten ‘coolest tourist board websites in the world’ by The Sunday Times. The visitor economy in NewcastleGateshead is now worth £1.3bn; in 2012 the number of overnight visitors rose by 14% and latest figures for 2013 suggest continued growth this year. The summer saw a packed calendar of events – including the Ashes, the British Science Festival and the Great North Run – resulting in 84% weekend hotel occupancy over summer and a 6% increase in bed nights sold versus last year. NGI’s own programme of festivals and events, including the increasingly popular EAT! and Juice Festivals again attracted thousands of visitors and won widespread Press coverage, building awareness of the varied and vibrant cultural offer in NewcastleGateshead. Building positive perceptions encourages capital investment in NewcastleGateshead. Most recently work has started on Crowne Plaza, a luxury hotel project within the Stephenson Quarter, set to open in time for the Rugby World Cup 2015 matches at St James’s Park. Meanwhile, the redevelopment at Monument Mall has attracted quality leisure and retail businesses; further reinforcing the quality of our retail offer – vitally important, since 50% of visitors coming to NewcastleGateshead come to shop! Within the visitor economy, meetings and conferences also play a vital role. Business visitors spend significantly more than leisure visitors. Our Conference Ambassador Programme involves leading academics and professionals to attract major events. In 2013, NewcastleGateshead hosted 14 international conferences and 6,300 delegates, including the International Ethological Conference (‘Behaviour

Looking ahead: After great 2013, Sarah Stewart is optimistic about the year ahead 2013’), which alone contributed £1.4m of delegate spend to the local economy. It’s important to take this enthusiasm for growth into 2014. There’s a wealth of opportunities to grow the number of leisure and business visitors in years ahead, not least the Rugby World Cup in 2015. With RGF funding for our national campaigns in place until

2015, we’ll be working with our partners to continue to raise the profile of NewcastleGateshead and the wider region in the run-up to the largest sporting event in the UK since the Olympics. n Sarah Stewart is chief executive of NewcastleGateshead Initiative.

JOIN US FOR LUNCH & DINNER, TO MEET OR CELEBRATE The former Tyne Tees Steam Shipping Company houses our trademark Bistro serving great classic dishes. We’ll be hosting some fantastic wine tastings, wine dinners and exclusive ‘Sommeliers laroche dining table’ experiences throughout the coming months.

08447 364 259 info.newcastle@hotelduvin.com www . H O T E L D U V I N . c o m HOTEL DU VIN & BISTRO NEWCASTLE, ALLAN HOUSE, CITY ROAD, NEWCASTLE UPON TYNE, NE1 2BE

151

bq-magazine.co.uk

conferencing, hospitality & events

overview

Wanted: joined-up thinking

152

bq-magazine.co.uk overview

conferencing, hospitality & events

Tourism and business events promotion needs to be intensified to enable the North East to reach its full potential in a sector that also influences inward investment, Brian Nicholls says It’s been a good year, then, for tourism, conferencing and events in the North East. Co-ordinated marketing is credited with earning nearly £9m extra in six months. Breakdown suggests visitors spent £4.3m of that in Northumberland and £4.5m in Tyne and Wear. County Durham figures were about to be released as we went to press. But in these two areas of the region alone nearly 170 jobs are estimated to have resulted, and more probably came about in County Durham also. Credit goes to Northumberland’s Historic Spirit and Have the Tyne of Your Life campaigns, part of VisitEngland’s three-year, Growing Tourism Locally activity funded by the Government’s Regional Growth Fund (RGF).

100th anniversary of the remarkable and historic Cragside house and estate at Rothbury. And of course the 500th anniversary of the Battle of Flodden. Success of the latter’s commercial exploitation will be interesting to compare with how well the Scots in 2014 make money out of their celebration of the 700th anniversary of the Battle of Bannockburn in Scotland. Coupling all these fortuitous North East incentives with good weather, regular attractions such as Europe’s biggest free air show at Sunderland, the Great North Run, the weekend break appeal of Tyneside – and above all – a holidayat-home trend, the region did indeed have a lot going for it. Now, can even better be achieved in 2014? Much good should come out of rugby’s World Cup for the North

Do the foot soldiers of North East tourism have enough direct involvement in shaping policies? VisitEngland works on the campaigns with Northumberland Tourism, NewcastleGateshead Initiative and Visit County Durham. Well done, all. However, anything less would have been failure indeed. Unusual attractions of 2013 included the temporary return of the Lindisfarne Gospels to Durham, drawing more visitors than usual both to Durham City and to Holy Island in Northumberland. Also Northumberland marked the

East but that’s not until 2015. There’s a year to fill in before then. And who will fight to see that the North East – the real North East, not just LEP territory features in future in Trip Advisors’ top 10 lists of destinations favoured by foreign and domestic visitors? Also, do the foot soldiers of North East tourism – the boarding house landladies, boat hirers, cafe and caravan park owners – have enough direct say in shaping tourism policies,

and might their contribution be stepped up? What more can be done, if anything, to bring about a truly national conference centre at Gateshead with no further financial downsizing – something capable of hosting, say, the BBC Sports Personality of the Year event as Leeds has just done at its First Direct Arena? Some joined-up thinking may also be necessary to create unique tourism packages. Think of the Romans and the Reivers – and the universal interest in railways which the like of Switzerland, Canada and France, do well out of. As the birthplace of the railways, shouldn’t the region have co-ordinated tours by now, taking in Darlington, Stockton, Shildon, Newcastle, Wylam, Causey Arch, Alnwick, the North Yorkshire Moors and starting perhaps from the National Rail Museum at York? Or since that involves the territories of both North East LEPs would a special visa have to be devised? No, we’re only joking. As regards business visitors, disturbing suggestions circulate of visitors associated with inward investment arriving in the North East without anyone to meet and settle them in. A warm greeting alone doesn’t win an international company. But it sets a mood. One reason Nissan opted to operate in the North East back in 1986 was the remarkable steps taken then to make the Japanese welcome. Today is not 1986. n

153

bq-magazine.co.uk

conferencing, hospitality & events opinion

This way to a superior experience When business or holiday visitors check into Rockliffe Hall, or some of the other hotels of class and distinction found on Teesside and in Cleveland, they will be sure of a convivial stay, says Brian Nicholls

154

bq-magazine.co.uk opinion

conferencing, hospitality & events

It’s not a tourist bureau but a hotel that signposts the standards of excellence for Teesside’s facilities in conferencing and hospitality. Visit Tees Valley, the tourist arm of Tees Valley Unlimited (TVU), was shut down three years ago following cuts in funding to TVU in the wake of the government’s axing of the regional development agency One North East. Tourism was tossed onto the workload of five local authorities whose budgets were similarly slashed. ”Teesside is not the Costa Blanca, but that does not mean we do not have significant visitor potential,” an irate Tom Blenkinsop, Middlesbrough South and East Cleveland Labour MP, has complained. “We do have the potential. Many thousands of people visit the area every year.” And he, as it happens, is also now having to fight alongside other local MPs to try to get the business graph rising again at loss-making Durham Tees Valley Airport, an airport being a key asset to the business and leisure aspirations of any area. It’s a painful contrast from 2006 when Visit Tees Valley was launched with confident expectation of boosting tourism and leisure’s contribution of £540m a year to the area’s economy, and of building on the 11,000-plus jobs directly and indirectly supported. But five star Rockcliffe Hall Hotel, Spa and Golf is an outstanding example of what the right business spirit can do for the sector. Multi-millionaire Steve Gibson, who had already put Teesside on the sports map as chairman of Middlesbrough football club, and the industrial map as boss of Bulkhaul, decided Teesside should have a hotel to compare with the country’s best.

Take it easy: Comfort is assured on Teesside whether you’re a business visitor, holidaymaker or a golfer The outcome is Rockliffe Hall, opened in 2009 following a skilfully grafted extension to a family seat built in 1863. The standards set almost from day one are reflected in the awards that the hotel has won during the past few months:

The standards set [at Rockcliffe Hall] almost from day one are reflected in the awards that the hotel has won in the past few months

• Gold in the large hotel of the year category of the North East England Tourism Awards • The only North of England hotel to receive the AA’s five red stars status • The Good Spa Guide’s recognition as best UK spa for customer service. As it prepared to take its place among finalists for the VisitEngland Awards for Excellence in 2014 – an honour it received in 2012 – managing director Nick Holmes said: “They do a fantastic job in showcasing what the North East has to offer. They really boost tourism.” Another thing certain is that when visitors check into Rockliffe Hall, or some of the other hotels of class and distinction spread throughout Teesside and Cleveland, they will be sure of a convivial stay. n

155

bq-magazine.co.uk

conferencing, hospitality & events company profile

Making a splash! A new North East company, Big Purple Productions, has had an extraordinary start. Director Eddie McKay set the company up in April 2013 from premises in County Durham alongside colleague Katherine Aitken. The company started small, without major expectation of quick growth, but like most things in business you donâ&#x20AC;&#x2122;t have control over this, and as such the company grew rapidly within the first few months. Now going into its tenth month of trading, Big Purple Productions has responded to clientsâ&#x20AC;&#x2122; needs and requirements, traveled the width and breadth of the country and gone on to employ additional members of staff, in order to deliver and produce world-class corporate events. Eddie McKay has over 25 years of experience in audio visual and he has seen the industry change massively as new technology has been introduced over the years. Having worked on world wide events, Eddie has used his experience and knowledge to develop a focused small business which keeps an eye on the developing trends in AV, to ensure the company can offer local and national companies an impressive service. Video mapping onto buildings, designing and manufacturing microphone balls, developing lighting shows and delivering quality sound and

Eddie McKay and Katherine Aitken, Big Purple Productions projection are all part of the companies portfolio. Most recently Big Purple Productions are proud to be involved in the development and delivery of the newly established BQ Executive Summits. An event environment designed to bring

Video mapping onto buildings, designing and manufacturing microphone balls, developing lighting shows and delivering quality sound and projection are all part of the companies portfolio

key business leaders together to debate and influence strategy within their industry. Alongside BQ Magazine the company offers services to other prestigious companies such as Close House, The Percy Hedley Foundation, TDR, Care Awards and Constructing Excellence, to name but a few. With a firm belief in delivering what you are good at and collaborating with other like-minded professional companies, the future is looking strong for Big Purple Productions. n

157

bq-magazine.co.uk

conferencing, hospitality & events BUSINESS EVENTS BQ’s business events diary gives you lots of time to forward plan. It also helps event organisers to avoid clashing dates. To add your event to the list send details to b.g.nicholls@btinternet.com. The diary is updated daily online at www.bq-magazine.co.uk

JANUARY

MARCH

SEPTEMBER

8 Handling Enquiries, Planning and Implementing Communication, RTC North, Sunderland (8.45am). enquiries@uktinortheast.org.uk, 0845 05 05 054

1 to 8 UKTI Indian Trade Visit. enquiries@ uktinortheast.org.uk, 0845 05 05 054

4 NOF and British Forces Resettlement Society, Military to Energy Careers, Catterick

5 Export Communications Workshop, RTC North, Sunderland (8.45am). charlotte.henderson@ uktinortheast.org.uk, 0845 05 05 054

15 ICAEW, Finance Act 2014, County Durham (2pm). www.icaew.com/events#result

Xxxxxx

16 Prepare to Enter the Global Market, John Harrison at UKTI event, Middlesbrough Job and Learning Centre (8.45am). enquiries@ uktinortheast.org.uk, 0845 05 05 054 21 IoD North East meeting, Return on Energy, Ward Hadaway, Newcastle (7.30am), www.iod.com 22 Global English, Translation and Interpreting Needs, Northern Design Centre, Gateshead (8.45am). enquiries@uktinortheast.org.uk, 0845 05 05 054 23 NOF Networking Lunch with Total E&P UK, Hardwick Hall, Stockton (10.30am). www.nofenergy.co.uk/n25events 28 NOF Oil and Gas Sector Workshop, Village Hotel, North Tyneside (9.30am). www.nofenergy.co.uk/n25events 29 Preparing for Market Approaches (visits, exhibitions, building relationships, cultural differences (8.45am), Northern Design Centre, Gateshead. enquiries@uktinortheast.org.uk, 0845 05 05 054 30 NECC event, Brazil: Joint Ventures, Preparing for Success. www.necc.co.uk/events-and-news.

FEBRUARY 3 NOF Oil and Gas Business Visit to Norway: Oslo and Stavenger. 11 ICAEW, Auto Enrolment is Happening: business management and finance, Newcastle (8.30am). www.icaew.com/events#result 17 to 21 UKTI Australian Trade Visit. enquiries@uktinortheast.org.uk, 0845 05 05 054 22 to 26 – UKTI Dubai Trade Visit. enquiries@uktinortheast.org.uk, 0845 05 05 054 27 – IoD North East Business Leaders’ Dinner, Steph McGiven and Graeme Leech, Radisson Blu, Durham (7pm).

158

12 NECC Durham Review of 2013 and AGM, Emirates Durham County Cricket Ground, Chester le Street (11.30am) 12 (tbc) Prepare to Enter the Global Market, John Harrison at UKTI event, Middlesbrough Job and Learning Centre (8.45am). enquiries@ uktinortheast.org.uk, 0845 05 05 054 13 NOF Annual Conference, Hilton Gateshead 19 Handling Enquiries, Planning and Implementing Communication, Northern Design Centre, Gateshead (8.45am). enquiries@uktinortheast.org.uk, 0845 05 05 054

APRIL 1 ICAEW, Payroll Update, Durham (1.30pm). www.icaew.com/events#result 14 ICAEW, The Changing Face of Accounts for Small and Micro-businesses, Durham (1.30pm). www.icaew.com/events#result

MAY 8 ICAEW Chairman’s Dinner, Newcastle (7pm). www.icaew.com/events#result 13 EEF briefing, New TUPE and Making it Work for You, EEF House, Gateshead (9.30am)

JUNE 2 ICAEW, The Reporting Requirements of Small Companies, Durham (2pm). www.icaew.com/events#result

JULY 8 ICAEW, Direct and Indirect Tax Issues of Property Transactions, County Durham (2pm) www.icaew.com/events#result

OCTOBER 7 ICAEW, Non-audit Work, How to be Compliant, Cost-effective and Manage risk, County Durham (1.30pm). www.icaew.com/events#result 20 ICAEW, Tax-efficient Reorganisations for the Smaller Company, (2pm) tba

NOVEMBER Equae voloria 5 ICAEW, Twentyspient Ways to quatus Add Valuedolorem. to Your Client Relationship, Durham (2pm). Ciis aditas iumet,County ilit qui as ius www.icaew.com/events#result

DECEMBER 9 ICAEW, VAT Update and Specific Business Sector Issues, County Durham (2pm). www.icaew.com/events#result Please check beforehand with contacts given that an event is not members only, and that the arrangements stated have not changed. Events organisers are also asked to notify us at the above e-mail address of any changes or cancellations as soon as they are known. Key: Acas = Advisory Conciliation and Arbitration Service, CIM = Chartered Institute of Marketing, CECA (NE) = Civil Engineering Contractors Association (North-East), HMRC = Her Majesty’s Revenue and Customs, ICAEW = Institute of Chartered Accountants in England and Wales, ICE = Institution of Civil Engineers, IoD = Institute of Directors, NCBF = Northern Counties Building Federation, NEA2F = North East Access to Finance, NECC = North-East Chamber of Commerce, Nepic = The North East of England Process Industry Cluster, NSCA = Northern Society of Chartered Accountants, FSB = Federation of Small Business, Tba = to be arranged, Tbc = to be confirmed, Tbf = to be finalised

Business interests across the North East, Scotland, Yorkshire and West Midlands?

Subscribe to BQ!

www.bq-magazine.co.uk

ISSUE TWENTY ONE: SPRING 2013

WHY LOYALTY PAYS

Career building champion shares his secrets

PASS THE PARCEL

Inside the region’s booming treasure trade

How fund seekers have found a new lifeline

RIPE FOR RECOVERY

The multi-millionaire and lifetime City achiever who believes the North East is truly on the up BUSINESS NEWS: COMMERCE: FASHION: INTERVIEWS: MOTORS: EVENTS

NORTH EAST EDITION

Business Quarter Magazine

£2.95

The new indispensible online companion to BQ. Register now. www.bq-magazine.co.uk

Corporate a nd Individual p ackages available fro m only

£14.95

www.bq-magazine.co.uk

SOLID FOUNDATIONS

The nimble housing group that’s fighting back

KEEP ON PUSHING Around the world with pram maker Silver Cross COCKTAIL FOR SUCCESS

Taking on the drinks industry giants and winning

SERIAL STAR The prolific Yorkshire entrepreneur behind a seemingly constant stream of start-up ideas

BUSINESS NEWS: COMMERCE: FASHION: INTERVIEWS: MOTORS: EVENTS

YORKSHIRE EDITION

Business Quarter Magazine

www.bq-magazine.co.uk

ISSUE TWO: SUMMER 2013

www.bq-magazine.co.uk

ISSUE ELEVEN: SPRING 2013

The inside track on Jim McColl’s route to the top

THE BULLION BOY

A TIGHT-KNIT PLAN The cashmere queen plots her next move in retail

Meet the young entrepreneur who struck gold

FASHIONING A NICHE Tailor’s tweets set a new trend

PAR FOR THE COURSE

How an IT man got his wings in angel investment

CARRYING THE TORCH Keeping momentum going after the Games

SUCCESS ON TAP The luxury bathroom designer with a steady flow of famous clients

BUSINESS NEWS: COMMERCE: FASHION: INTERVIEWS: MOTORS: EVENTS

WEST MIDLANDS EDITION

£2.95

The new indispensible online companion to BQ. Register now. www.bq-magazine.co.uk

DEALS IN MOTION

Inside the Queen’s bank of choice

Business Quarter Magazine

£2.95

CHANGE MAKER Charting Scotland’s growth as a land of entrepreneurs

EXTRA MILES

BQWM_MAG_FRONT.indd 1

ISSUE SIXTEEN: SPRING 2013

NEVER TOO OLD Secret millionaire on keeping business dreams alive

The new indispensible online companion to BQ. Register now. www.bq-magazine.co.uk 30/05/2013 11:02

ISSUE ELEVEN: SPRING 2013: SCOTLAND EDITION

BQ is no ordinary business publication. With unique content and a style determinedly its own, its aim is to inspire, enlighten and empower, embracing and reporting business success wherever it is found. Order your copies today to ensure you don’t miss out.

THE IN CROWD

ISSUE SIXTEEN: SPRING 2013: YORKSHIRE EDITION

You can subscribe to BQ Magazine each quarter ensuring you receive your copy direct. There are a number of subscription packages available to ensure best value for you and your business.

SUNRISE INDUSTRY

Winning the race to a lucrative offshore market

ISSUE TWENTY ONE: SPRING 2013: NORTH EAST EDITION

Providing the inside track on what drives leading businesses and business people, BQ offers a unique and refreshing mix of business news, commentary and profiles of the most inspirational entrepreneurs across the North East, Scotland, Yorkshire and West Midlands. Published in four separate editions with content unique to each area, BQ aims to get to the heart and soul of business people to find out what drives, inspires and motivates them towards their ambitions. Each quarter BQ also brings its readership a wealth of regional business intelligence and information, whilst looking ahead to forthcoming events and reporting on recent developments that will have a significant impact on the business landscape.

A POINT TO PROVE

The Scottish stars who’ve created emerging businesses on the back of sporting success BUSINESS NEWS: COMMERCE: FASHION: INTERVIEWS: MOTORS: EVENTS

SCOTLAND EDITION

Business Quarter Magazine

£2.95

The new indispensible online companion to BQ. Register now. www.bq-magazine.co.uk

To place your order visit www.bq-magazine.co.uk/subscribe

bq-magazine.co.uk

conferencing & hospitality

opinion

Header header header Header header header Udipsa cum dolor sandipitate volut excepe eaturit iatur? Qui nonsequ atempor mi, velit que quia volorescia nonectem fugia volentemodis dem aciliqu ibusanit. Xxxxxx

Equae voloria spient quatus dolorem. Ciis aditas iumet, ilit qui as ius

Pere molecul lectiament experro cuptaque pa doles voles ea dellupta sin cusam in ex eum quas qui nectur aut ut et vit maximi.

160

Sponsor logo