BQ Yearbook 2016

YEARBOOK 2016

Celebrating and inspir ing entrepreneurship.

NORTH EAST

Celebrating and inspir ing entrepreneurship.

EDITOR’S VIEW GETTING TO GRIPS Business begs one condition – stability. What it lacks entering 2016 is – stability. Will we stay in Europe? Will we benefit from a Northern Powerhouse and devolution?

We can answer neither question yet but we do know North East business people will press on, doing their best whatever fate throws up. The region’s fortunate in having two highly placed friends whom the Government has sent in. Lords Heseltine and Adonis.

Lord Heseltine, the latter day Welsh wizard, has been on Teesside to consider the opportunities for remedial investment, following the steel industry’s collapse there.

He did so much in the 1990s towards reviving the Tyne, Wear and Tees riversides. Chairing Teesside’s Inward Investment Initiative now, he is probing prospects for foreign investment. With UKTI, Teesside’s LEP and a Redcar SSI taskforce, he seeks an international profile for the area. The Government meanwhile has committed £80m towards replacing lost jobs.

Lord Adonis, besides chairing a new National Infrastructure Commission (with a new Transport for the North agency part of its remit), recognises the North East’s urgent need of better transport connection. He must also be frustrated that a North East International - an adequately resourced marketing agency and inward investment group to serve all the North East - has yet to materialise three years after it formed part of a vision for the North East that he and other influential figures drew up.

It’s also helpful that the Northern Powerhouse Minister, James Wharton, is a North East MP. As the NECC chief executive James Ramsbotham suggests, while recovery won’t be easy, there are new and emerging technologies that, with government support, could speed their development.

The Entrepreneurs’ Forum reckons more than 70% of North East business owners want devolution. They’ll have been astute enough presumably to have read, in what fine print does exist, that new regional authorities will be

empowered to increase taxes on businesses, including a supplement on business rates to fund infrastructure – if the business led LEPs agree.

Risks and issues will continue for businesses, even if a Northern Powerhouse does come to something substantial. A poker game for three, then – regional authorities, business and central government still.

Central government, for example, will still have to act as a guardian for English regional airports once air passenger duty is devolved to Holyrood. The Chancellor, acknowledging an economic gap widening between North and South over 20 years, apportions £1.3bn more funding to the North East under proposals for devolution: £450m to Tees Valley and £900m to the rest of the region. But that’s a figure undercutting the funds taken away during the austerity cuts, as an alert journalist here has pointed out. The North East, indeed the North, can’t go on as it does now amid excessive financial generosity to London and the South East, and powers devolved already to Scotland, Wales and Northern Ireland. Whatever playing field appears, we should try to raise productivity with three aims: to benefit our companies and our regional economy, to employ more people (including apprentices) where possible (to get our horrendous unemployment down), and to try to take wages closer to national average.

Employees everywhere should benefit from April when Accredited Living Wage employers will pay a new, higher voluntary living wage rate of £8.25 an hour (significantly higher than the £6.70 minimum), and the new minimum £7.20 an hour for over 25s. That’s only a start.

Brian Nicholls, Editor

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CONTENTS 07

REGIONAL ECONOMY An overview of the challenges and opportunities facing the North East

21

NEW ECONOMY How partnerships will give our region an edge at the cutting edge

31

MANUFACTURING AND OFFSHORE The price of oil plummets but new opportunities beckon

41

MONEY MATTERS Banking, investment and finance supporting the economy

47

SERVICE SECTOR Services are growing faster than manufacturing but must contune to innovate

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BUSINESS SUPPORT Help for businesses from government and organisations

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63

BUILT ENVIRONMENT The changing face of our towns and cities

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75

TRAINING AND RECRUITMENT Training brings skills which improve production which improves wealth

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83

WHO’S WHO Essential guide to who’s shaping the North East

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08 THINK ASIA, THINK CHANGE

42 GLOOMY - WHO’S GLOOMY?

173 W H A T, YET MORE HOTELS?

156 REGION’S PROUD RECORD FALTERS

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Celebrating and inspir ing entrepreneurship.

111

RETAIL How shops are working together to attract customers

117

CORPORATE SECURIT Y Criminals are targeting businesses online

121

SMALL BUSINESS SMEs - the bedrock of our economy

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129

IT AND TELECOMS A booming that just can’t get the staff

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141

DIGITAL The North East is a Digital Hub

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149

TRANSPORT AND INFRAS TRUCTURE How devolution might impact road, rail and broadband

155

EXPORTING Spotlight on selling the region’s goods and services overseas

159

UNIVERSITIES AND COLLEGES The interface of business and academia

167

CONFERENCING AND HOSPITALIT Y Big events boost the sector and build the North East’s reputation

175

GIVING BACK How the businesses support the communities in which they operate

82 APPRENTICES OR GRADUATES?

112 DRIVING TOGETHER P AY S

122 QUIDS IN FROM THE S TAR T

172 WHERE THE QUALIT Y’S FOUND

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There are three reasons to be optimistic about the fruit on the money tree, and especially as the North East’s economy is being fitted with wheels

MAGAZINE

L A N O I G E R Y M O N ECO

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Think Asia, think change Within a decade just 600 cities around the world could account for two-thirds of what all the world produces. These cities – 200 perhaps in China – will be the North East’s and the UK’s new competitors.

We must prepare for that, says Sarah Glendinning Christmas has been a wonderful time to reflect and give thanks for what has happened over a year - not just individually but for our colleagues, businesses and our region. And the new year represents an opportunity to look forward; to look forward to achieving new goals, realising new aspirations both personally and professionally.

The refrain “how time flies” is often overused, but 2015

flew by and taking stock of where we find ourselves - our new normal - seems prudent now.

The world at large is changing - it’s a brave new world with big forces at work, competition intensifying and a fourth industrial revolution beginning - robotics, artificial intelligence, the very nature of work itself transforming.

There have been changes at home in the UK too - a new Government with a new mandate no-one expected in May.

REGIONAL ECONOMY in association with

A changing UK, moving ahead with real devolution of real power, and an EU referendum on the horizon that could alter the UK’s future forever.

Our 2015 economic recovery has firm foundations - one of the fastest growth rates in the G7, low inflation and 2m new jobs since 2011. We expect, in the end, 2.4% growth in 2015 rising to 2.6% in 2016, and we now have a golden opportunity to move from recovery to a new era of prosperity across the UK. Regionally we have seen growth and investment in our businesses, from the start of global production of the new Infiniti Q30 at Nissan, Reece Group breathing new life into the Armstrong Works and Hitachi Rail Europe formally opening for business at Newton Aycliffe.

We’ve seen investment increase in our digital communities and our professional services firms, not to mention the outstanding results for our higher education providers such as Gateshead College. Commitment to investing in the low carbon economy continues across Teesside, and the opening of the National Biologics Centre in Darlington in autumn gave a welcome boost to an exciting area of global opportunity the region can be proud of.

Our £4bn visitor economy has seen new successes on large and small scales - the Rugby World Cup having a £43m direct economic impact, and the Land of Oak & Iron which will restore key heritage landscape sites along the River Derwent for example. And, continuing to improve the experience for visitors to the North East, we have the new Crowne Plaza Hotel in the Stephenson Quarter, and air passengers will benefit from the new £14m investment in the departure lounge at Newcastle Airport.

So what will 2016 bring?

Regional devolution and the Government’s drive to create a Northern Powerhouse represent opportunities to drive private sector growth and improve productivity in every region including the North East. These areas will continue to dominate the agenda for many businesses in 2016. We must and will continue to work collaboratively across the region as a business community with our local authorities to drive the opportunities for economic growth devolution represents.

The recent Comprehensive Spending Review was good for longer-term investment in the economy; the Government

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“We must and will continue to work collaboratively across the region as a business community with our local authorities to drive the opportunities for economic growth devolution represents” staying the course on deficit reduction, committing to industrial strategy and nurturing a vibrant business community, and this will impact decisions made in 2016.

Areas of interest for the North East include maintaining spending on infrastructure, ramping up housebuilding, and support for energy intensive industries and advanced manufacturing. Key for 2016 is ensuring we don’t reach tipping point, where the cumulative burden of the living wage, apprenticeship levy and business rates risk hurting competitiveness.

Taking it back to a global perspective, however, one final thought for 2016 for our externally facing, export led region is regarding one of the most dramatic trends of the last three decades - the urbanisation of our world.

An extraordinary demographic transformation before our very eyes which will continue long past 2016.

By 2025, just 600 cities around the world are forecast to account for two-thirds of global GDP…two-thirds of everything the world produces… and according to McKinsey, 200 of those cities will be in China.

These cities are the North East’s and the UK’s new competitors. It’s not about Sunderland and Middlesbrough competing with Swindon and Manchester, but about Sunderland competing with Stuttgart, Middlesbrough competing with Mumbai, Durham with Durban, or a city just being born in Indonesia or India. It’s about great British cities competing with the fastest growing areas across the globe.

We have the history and experience to compete on a global scale, so 2016 must be about continuing on the path to prosperity, embracing opportunities and aligning ourselves to make sure that the North East can and will compete on this global stage. n Sarah Glendinning is director of the CBI North East

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REGIONAL ECONOMY in association with

The chance is ours to take Graham Robb urges people from across communities, who believe they know how devolved powers and funds can make our region stronger, to sign up to put their ideas forward The year 2016 promises to be one in which the North East moves closer to achieving its potential as once again an economic engine room at the heart of growth in the UK, creating jobs and prosperity. Yes, we have had some knockbacks, the collapse of steelmaking in the Tees Valley arguably the biggest of them all, and we are still at least a year away from securing the additional funding and powers that devolution promises. However, I believe we start the year in a strong position, with much to build upon and we will achieve more by looking forward than by licking our wounds or sitting and waiting for new funding to be transferred to our region. While the Government’s official Business Population Estimates, released in November, showed an overall reduction in the number of businesses in the North East, the reality of the situation was largely positive. There were 1,000 more businesses that employ people than a year previously, with the reduction coming from there being significantly fewer non-employing businesses. However, this in itself highlights a problem that must be addressed. The vast majority of those businesses will have been born of necessity - people becoming selfemployed, often as consultants to the very companies and sectors from which they had been made redundant.

However, many have now reverted to the comfort blanket of employment, rather than growing and becoming employers themselves. More needs to be done to highlight the support available for start-up and scale-up businesses, to stop this trend and give new enterprises the best chance of success and growth. We need more jobs and, unless we have more employers, there is a finite number of positions

that can ultimately be created.

The year 2015 also brought progress in the move towards greater devolved resources and powers, with the signing of deals with the Government in both the North East and Tees Valley LEP areas.

While there is some disagreement over the semantics of what the North East agreement in particular means, this is a positive move towards a stronger future for our region.

Our local authority leaders need to work with business to find the best ways of delivering this. As we move into 2016, I would urge people from across our communities, who believe they know how devolved powers and funds can make our region stronger, to sign up to the North East Says Yes campaign and put their ideas forward. North East Says Yes is all about bringing together the best ideas and proposals on a platform – www.northeastsaysyes.org – for the decision makers of devolution to choose from when it comes to driving our region forward. Besides chairing the Institute of Directors in the North East, I’m a board member of the Entrepreneurs’ Forum and, every year, the organisation holds two major conferences: Together We Can Take On The World, and Fortune Favours the Brave. In the North East, we are blessed with a business community where people do support one another, and we are certainly not short of those who have the courage to innovate, create jobs and deliver wealth.

Let’s take the bull by the horns in 2016, be brave, work together and create a stronger North East. n Graham Robb, senior partner, Recognition PR

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There’s scope to build on progress The last 12 months have seen the economic recovery gain some real momentum. Andrew Hebden says that, although significant challenges remain, there’s good reason to be optimistic about 2016 What lies in store for the UK economy during 2016?

Despite a challenging global economic backdrop, there are good reasons to believe the strong growth we have seen in the UK over the past 12-18 months can be sustained.

There are three principal reasons why the Bank of England’s Monetary Policy Committee (MPC) is relatively optimistic about the outlook for the 12 months ahead.

First is the situation in the labour market. The increase in employment has been a defining characteristic of the recovery to date, with the national unemployment rate currently at 6% and projected to fall steadily over the next 12 months. In the North East the picture is more complex: the unemployment rate remains stubbornly high, but there has been a big increase in the employment rate. This apparent paradox is explained by a fall in the region’s rate of inactivity – i.e. the proportion of people who choose not to participate in the labour market at all. This striking pattern has been seen to a much greater extent in the North East than elsewhere. Although more people are in work, growth in take-home pay has been pretty weak. We are now seeing the first tentative signs of this beginning to change, however, with real incomes supported by lower energy, food and other import prices. A second reason for optimism is that consumer confidence appears to remain high, supported by better access to credit, the strong labour market and improved pay prospects. Low interest rates have also been a factor here, and there is some uncertainty over what effect a rise in the Bank’s base rate would have on more indebted households. However, recent research from the Bank suggests that a gradual increase in interest rates from historically low levels - as envisaged under the MPC’s Forward Guidance policy would not have unusually large effects on household spending overall. Finally, and perhaps most importantly, is the outlook for business investment. A year ago, in these

pages, I wrote how businesses in this region and beyond had been telling the Bank’s Agents that they were finally feeling more confident about investing again. The official data suggest that those positive intentions turned into real projects during 2015 with levels of business investment well above historical averages. Such investment will be critical to providing the long overdue improvements to productivity that the UK economy needs if the growth we have seen over the past 18 months is to prove sustainable.

With surveys of North East businesses continuing to strike a positive note as we head into the new year, firms in our region seem well placed to build on what, for most, has been a year of real progress. n Andrew Hebden is deputy agent for the Bank of England in the North East

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REGIONAL ECONOMY in association with

“Whitehall has shown itself incapable of delivering an approach beneficial to the whole country, which is why we must ensure the North East has the chance to make decisions for itself�

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Skills and transport the key With 200 years’ achievement to its credit, the NECC under James Ramsbotham now turns to fight the region’s corner in a new era of devolved funding In its 200th year of illustrious existence the North East Chamber of Commerce set out its priorities no less fearlessly for the region’s needs in a new age, approaching devolution. The chamber has told the Government skills and transport should be key priorities in devolving powers to the region – at the same time warning businesses they must work together if devolution is to succeed.

By reducing the skills gap with the rest of the UK and cutting down journey times between the region and other major cities, the North East would, in the chamber’s view, be fit to make an even stronger contribution to the Northern Powerhouse the Government has spoken of.

Chief executive James Ramsbotham stresses the critical role the North East, albeit a small region, plays in the UK economy, with the best export record in the country, significant energy expertise, capacity for further residential and industrial development and the location of a hub of major industry clusters.

“Despite this,” he declared, “our region has performed below potential for many years. So we believe commitment to devolution is vital to maximise our assets.

Whitehall has shown itself incapable of delivering an approach beneficial to the whole country, which is why we must ensure the North East has the chance to make decisions for itself.”

And one thing more of which he is certain: “While debate exists around which model of devolution would benefit the region, if we are to succeed and make the optimum use of devolution we must have accountability and clarity over strong leadership.”

The chamber will no doubt fight for these causes throughout 2016, and meanwhile can feel proud that

2015’s celebrations marking 200 years of championing business in the North East have proved memorable.

Ramsbotham says: “Throughout that time we’ve stood shoulder to shoulder with the one-man bands and helped many SMEs evolve into regional titans of industry by removing barriers to growth, lobbying government, helping firms sell overseas and training the future workforce. We have been here to help, support and empower our members.”

The NECC’s head explains: “The chamber is an institution plugged into business like no other - a force for good.

While the business landscape has changed in the North East, I firmly believe our whole is much greater than the sum of our parts.”

Traditional strengths in manufacturing and engineering, he points out, continue to make up a large portion of the North East Top 200 Companies, and this ability to make products and sell them overseas sets the region they serve apart from much of the country.

He promises: “We’ll continue to support our firms and further boost the region’s export credentials, whether it’s via upgrades to our roads, improvements to our rail network or continuing the fight against restrictive air passenger duty.

“We are an evolving region. But the principle of business being stronger collectively is as relevant today as it was 200 years ago. We have the land, resources, skills and enthusiasm to become the driving force behind the Northern Powerhouse,” he adds. “We can demonstrate to the rest of the country we are not a problem for them to solve; we are an untapped resource bursting with potential.” n

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REGIONAL ECONOMY in association with

Wheeling and dealing with purpose The North East’s economy is being mounted on wheels for 2016. Production of the Infiniti hatchback is under way at Nissan in Sunderland while, at Newton Aycliffe, Hitachi Rail moves closer to bringing out its first trains in a significant revival of rail manufacturing.

Two swallows don’t make a summer of course, nor will two brilliant pieces of transport engineering lift the total economy of the region stratospherically. But they are big morale boosters, and hopefully will encourage business generally to raise its game.

In 2015 the economy started with a fizz - fastest growing region in England and Wales, an RBS/NatWest tracker concluded. By July its businesses were growing at their fastest in 20 years, the North East Chamber of Commerce reported. Durham, Tyneside and Darlington led the charge, Darlington calculated also to be the seventh best place in Britain to live, with consistently the best North East economy too, and beating all UK regional averages outside London. Progress was being achieved regionally even though foreign investments here had remained unchanged in number over a year, on business consultants EY’s reckoning. But by August the impetus had faltered.

Official figures showed North East cities and towns lagging the rest of the country in creating jobs and making money.

Further home truths appeared; unemployment up, wages down, and women in work earning 22% less, on average, than men. The unemployment at 8.1% highest in the country - compared with 5.6% nationally.

Worse, in Middlesbrough and Hartlepool it was 11.8% and 11.1% respectively - almost five times higher than in the constituency of Chancellor George Osborne, banner carrier for the Northern Powerhouse cause, as The Northern Echo pointed out. Average weekly wage was down by £7 in a year, nationally £14 up.

One in four employees across the North East was being paid less than the Living Wage, according to KPMG, which also found 25% of all 238,000 employees in the region earned below £7.85 an hour, the current Living Wage outside London. Employees in Hartlepool were worst off, 35% earning below the Living Wage. Those in

Redcar, Cleveland and Middlesbrough were little better off, 32% and 29% there being paid under £7.85 an hour respectively. In Newcastle it was 24% - 1% higher than for the whole UK. The growing unemployment stemmed partly from a slowdown in oil and gas markets and a fall in public sector jobs (beefed up in earlier years partly to cushion unemployment in declining heavy industry). The year 2015 ended with unemployment even higher at 8.7% against a lowering national average of 5.2%. The North East starts 2016 with the highest unemployment anywhere. Things had looked brighter when the Prime Minister and the Chancellor of the Exchequer visited the region to co-celebrate a triple success: the new Hitachi rail industry, the further development at Nissan in Sunderland, and in Newcastle Reece Group’s expansion into the famous Armstrong defence works at Scotswood ahead of further diversification in its globally renowned innovative engineering. These three companies were investing £200m-plus in their local facilities, and Rolls-Royce’s choice of the North East as its hub for growth was another morale booster. Hitachi, whose European manufacturing operations here are led by Karen Boswell, former boss of East Coast Trains, promised with its £82m input around 730 jobs directly and many more in its supply chain – and ensured that half the expenditure on its new plant was made within a 50 mile radius of the site. A sunshine day, then, that the Government’s PR machine made the most of – unlike soon after, when around 8,500 jobs were written off in a series of setbacks thus: • Up to 4,000 likely to go directly and indirectly with the SSI steel closure at Redcar • 3,000 more likely with the closure of six North East tax offices in Sunderland, Stockton, Middlesbrough (two), Washington and Peterlee • About 100 people laid off after Caparo Industries shut its Hartlepool foundry, and 44 jobs cut at Tata Steel’s long products division. Contractors providing 700 workers were set back when Air Products suspended the building of a Billingham factory.

• East Cleveland’s biggest employer, ICL UK, said 700 jobs

Morale boost: Hitachi trains built in the North East will be an encouragement

“One in four employees across the North East was being paid less than the Living Wage, according to KPMG, which also found 25% of all 238,000 employees in the region earned below £7.85 an hour, the current Living Wage outside London”

would be shed, by March coming, from its potash mine at Boulby, as reserves dwindled, though it might retain 400 workers remaining to mine polyhalite (polysulphate) from 2018. Alternative work might arise for those prepared to commute or relocate, for Sirius Minerals plans a £2bn project - possibly the world’s largest and highest grade of polyhalite - near Whitby. Affecting as it does the North Yorks Moors National Park, it drew environmental protests, but the park’s planning committee backed the development. This, the UK’s first new potash mine for 40 years, might yield 13m tonnes of polyhalite a year, and together with fracking that may start up in the area, it could ease East Cleveland’s crisis.

The Chancellor, acknowledging a widening economic gap between North and South over 20 years, disclosed that £1.3bn more funding would come to the North East under proposals for devolution: £450m to Tees Valley and £900m to the rest of the region. However, a Regional Growth Fund from which North East firms had secured more than

£300m to drive up performance – and which led to a further £166m of investment being obtained by the firms from elsewhere – was quietly shut off.

On the bright side, unemployment though high is still down on what it has been, and jobs in the private sector are rising. And the North East economy could restore the sort of growth enjoyed in the Victorian era, the think tank IPPR feels, if there is timely investment – presumably via a thriving Northern Powerhouse.

Meanwhile, the North East is forecast in the EY business consultants’ report to be joint slowest growing region of the UK over the next three years, with any Northern Powerhouse unlikely to bear fruit across the North until the next decade.

The prediction is that the region will grow by 1.6% a year in gross value added terms between 2015 and 2018, against a 2.3% UK average. But the three year picture would represent an improvement on the 2015 forecast.

Projections, of course, can often be confounded. n

Lord Adonis has inspected North East potentials in fine detail

What’s it all about, then?

Talk of a Northern Powerhouse is easily arranged. Northern academic and business leaders met early on with government officials to help plot future innovation and collaboration on the matter. Later meetings have included a debate 400 attended at Wynyard Hall, Teesside. Among the business guests was marketing consultant Chris Dobson, who came away bewildered

Despite Northern Powerhouse being something George Osborne wants to see succeed, the breakfast lost time with political arm-wrestling and focus on issues not necessarily about NP. If the role of the North East within NP was clear we’d all feel much more comfortable. Its structure, who’d run it and from where would have been helpful. There was little clarity there. Who’s driving what and why? Tees Valley Unlimited follows its own path, the North East LEP is another vehicle, there’s a North East Combined Authority (NECA – hardly a brand) with the North East Chamber of Commerce adding weight. So lots going on but behind the scenes as the region stutters towards devolution. A Northern Powerhouse we shall have, though, with NP Minister James Wharton determined that ‘the more things we can bolt on the better’. This was not fully agreed. One departing guest told me: “It’s depressing, I’m no further forward, it’s retrograde and I wish I hadn’t come.”

Political fencing over SSI’s closure at Redcar, the need to cut electricity costs for businesses and the creation of a regional investment bank left not enough time to crunch the issues of management, branding, job creation and training and attracting inward investment in a structured way. As it seemed momentum was gathering the final

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How PwC saw the North East economy’s growth measuring up in 2015 Source: PwC analysis

whistle was blown. Inevitably a feeling remained that the North East and Cumbria are add-ons - less important than the ‘powerhouse’ stretching from Liverpool, Manchester, Sheffield across to Hull, drawing in Leeds, York, Huddersfield, Halifax, Bradford, Dewsbury, Wakefield, Barnsley, Harrogate and Skipton. Not only are these large centres of population, 10 sit comfortably under the Leeds City Region banner. Could that happen in the North East, maybe as a Newcastle City Region? Hell, water and freezing come to mind. We remain too parochial to bury hatchets and see bigger pictures. Also the above places benefit from the M62, M18, M6, M1, ports on both sides, international airports with the right connections and proximity to the prospering Midlands. Further north, we’ve fewer commercial centres and many fields, forests and hills.

HS2? That has to work its way northwards and westwards through our friends to the south before we sense any benefit. How that will work beyond York remains open to conjecture. A need for clear debate leading to the correct strategy for the region remains, one the majority can sign up to. What devolved powers will the North East have?

Will we have enough ambition and organisation to succeed? Will local decision-making really prevail over transport, inward investment, housing, culture and tourism?

The North East is a good place in which to live, work and set-up businesses. But stubbornness on branding is a surprise when clear evidence exists of successful branding for Manchester and Leeds already. In the North East presently nothing can compete with rival locations on the global inward investment stage. n

24%

UK

N IRELAND

NORTH EAST

19% 17 % % 16 WALES

SCOTLAND

NORTH WEST

SOUTH WEST

YORKSHIRE/HUMB

WEST MIDLANDS

EAST MIDLANDS

24% 23% 23% 23% 23% 23% 23% EAST ANGLIA

SOUTH EAST

LONDON

31% 29 %

What’s really in it for us?

A previous referendum in the North East rejected selfgovernment as then proposed - mainly, it’s suggested, because it was felt to be an additional and costly layer of government with too few extra powers. There is now widespread public support in the region, however, for devolution of powers to the Northern Powerhouse, a report by Ipsos MORI, the New Local Government Network (NLGN) and PwC has found. But people in the North East remain uncertain that ambitions for a Northern Powerhouse will ultimately be delivered.

Jonathan House, partner and PwC’s local government leader in the North, concludes: “There’s still work to do around communicating what decentralisation and the Northern Powerhouse means. Yet the public apparently think decisions should be made by local politicians, whom they see as more accountable to local people.

Key concern among opponents of decentralisation is the spectre of a postcode lottery - with 65% in the North East suspecting that service levels might vary between areas. Perhaps that is an issue a combined local authority should be addressing by now.”

“There’s still work to do around communicating what decentralisation and the Northern Powerhouse means”

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PROFILE North East LEP

Sharp focus on targeted investment for North East LEP To move forward with clarity and purpose in 2016, the North East LEP has taken stock of past achievements, progress made and outcomes.

This provides the sharpness of thought required to tackle the challenges of the year ahead with fresh motivation and renewed vigour. The North East LEP will continue to align all its activity to the goals set out in its Strategic Economic Plan (SEP).

A roadmap to economic success – the SEP sets out the actions the region needs to take to substantially grow its economy and contribute its true worth to the UK as a whole. At its heart is the goal of creating 100,000 new and better jobs in the North East over the next decade.

No small task. But one which the North East LEP is clear can be achieved. The LEP has a key role to play in this new growth by securing investment from EU and Government to pump prime economic development through new business creation and jobs and back the major projects transforming the regional economic landscape.

It has an outstanding track record of securing funding to support North East business – more than £1.5bn in total since its formation five years ago.

The benefits of this funding in the last year alone are there for all to see. The LEP worked hard with Government to ensure that the £120m JEREMIE 2 business support fund will remain North East managed and exclusively invested into scores of North East firms.

The success of the first round of JEREMIE funding supporting 800 small companies in exciting, booming sectors with £140m in equity loans, made it imperative that its successor followed this template.

Keeping JEREMIE 2 in the North East was a major win for the region last year, one of the real highlights for the LEP team.

Its loan funding will be instrumental in helping entrepreneurs, visionaries and creatives form the next generation of companies that will power the North East economy of the future.

Another notable success for the LEP was securing ten new Enterprise Zone sites,spread from Northumberland to County Durham. Their benefits for new and growing firms will attract an estimated 14,000 new jobs in crucial sectors such as subsea and low carbon technologies.

The LEP took the bold step of appointing the first innovation director for the North East to add focus and renewed drive to the region’s aim of creating a globally competitive innovation eco-system. Hans Moller, former chief executive of Sweden’s Ideon Science Park, is now overseeing the investment of more than £125m into turning this vision into a high-tech reality to make the North East a European innovation ‘hot spot’.

Mr Moller is working closely with the LEP’s innovation board – combining the expertise of business and public sector leaders with senior academics – to help create the conditions for a new and dynamic innovation culture across the North East.

The regional economy showed a continued strengthening in 2015 with more people in work than ever before and a general, longer-term fall in those out of work.

Encouragingly, labour market statistics also revealed more people available and wanting to work in the region.

These important figures clearly point to an economy growing in confidence.

The latest ONS data showed that total annual GVA – which measures the increase in the value of the economy based on the production of goods and services – increased by 2.7% to £35.5bn in the LEP area.

That represents almost £1bn added to the value of the local economy. In the past three years, the North East is one of just four regions in the UK to record increasing growth in successive years. It doesn’t need a crystal ball to look ahead into 2016 and see the impact the devolution agenda will have on the region.

PROFILE North East LEP

The LEP and North East Combined Authority have signed up to the devolution of more autonomy for the region and to the principle of an elected mayor in 2017.

Devolution will undoubtedly mean a changed role for the LEP in future. While it isn’t exactly clear what that will be just yet, the LEP remains fully supportive of the devolution process because of the powers it will give the region to shape its own future.

The next 12 months will be a time of continued delivery for the LEP team. The new North East Growth Hub, northeastgrowthhub.co.uk – bringing comprehensive business support information onto one online platform – is now live, and will continue undergoing testing and development over the coming months. It’s a digital resource that provides access to business information, knowledge and advice, with peer-to-peer support from the local business community as well as regional and national business support providers across the public and private sectors. Collaboration is at the heart of the growth hub.

Members are encouraged to communicate and work together to share ideas, expertise, knowledge and opportunities.

Supporting innovation through funding and encouraging greater collaboration and networks across the North East will

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remain central to the LEP’s activity this year.

The LEP will continue its strategic approach of targeting research, development and innovation support in the North East’s industrial areas of strength.

A detailed study revealed four areas of ‘smart specialisation’ in the North East, sectors of world-class excellence in the vanguard of new economic growth – the automotive, creative and digital, life sciences and subsea sectors.

Backing research, development and innovation in these areas will help give the North East the competitive edge it needs to close the economic gap with the rest of the UK.

For more information visit northeastlep.co.uk @northeastlep

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REGIONAL ECONOMY in association with

IN BRIEF The gap that has yet to be filled An IPPR North report (supported

by KPMG), finds an ‘economic potential gap’ of at least £34bn which represents the economic boost possible if a Northern Powerhouse could just halve the gap between the North’s economic output per head versus the national average.

But a £50bn Investment in transport infrastructure across the North is regarded as necessary to create the connectivity required. An outrageous sum? We’re already on the way to that in the HS2 project which has consultants earning more than the Prime Minister and not a new line in sight. The North could have been prioritised for this spend with arguably better benefit for the national economy. Yet look at the

planned national infrastructure spend on transport per head envisaged in real terms for 2015/16: London £2,604, Yorkshire £391, North East £314, North West £397. If per-capita spending in the North had equalled the UK regions’ average over the past five years an additional £2.5bn would have been spent, the report says.

Richard Threlfall, KPMG’s UK head of Infrastructure, business and construction, says: “The North should be in the premier league of world economies but is currently

condemned to mediocrity because of lack of investment.”

Already, despite Northern Powerhouse talk, work on improving the critical trans-Pennine rail route was temporarily delayed and the Tyne and Wear Metro system, which had reason to expect a £350m input into its £389m modernisation programme, has been told the contribution will only be £317m, leaving cash-strapped local authorities to muster £111m as their share of the investment instead of £72m.

“The North should be in the premier league of world economies but is currently condemned to mediocrity because of lack of investment”

We can only get maximum economic impact from our enviable research and knowledge through working in a partnership of government, academia and industry

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NEW Y M O N O EC

“We collaborate with partners to take the seed of an idea, an industry, or a technology platform and help it grow into something tangible�

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Catapulting to the future Innovation hubs show how private-public collaboration can help transform research, ideas and knowledge into industries the North East needs. Nigel Perry explains The UK Government and industry are investing to ensure companies are in a position to focus their innovation efforts and increase their growth. The Centre for Process Innovation (CPI) helps in this, bridging the gap between invention and industrial-scale manufacturing.

We collaborate with partners to take the seed of an idea, an industry, or a technology platform and help it grow into something tangible. Take graphene, or printable electronics - new technology based industries at the start of their life cycles. These technologies have the potential to become multi-billion pound industries, and the UK is a leading light in their development.

We need to convert our fantastic research and knowledge base into economic impact successfully. We can only do this by working in a partnership of government, academia and industry to create an environment where risk and timescales on new product and process development is reduced. CPI is one of a number successful technology and innovation centres in North East England that are driving future economic growth - not only of the region, but the UK. The North East is home to three Catapult centres – the delivery arm of the Government’s industrial strategy. CPI is the process manufacturing element of the High Value Manufacturing Catapult and is based over three sites in Redcar, Sedgefield and Darlington. The regional office of the Satellite Applications Catapult is based at NETPark in County Durham and the Offshore Renewable Energy Catapult is based at Narec in Blyth.

Our collective aim is to reduce the risks for the private sector in innovation, and so make it more attractive for investment into new products and processes. We are established to drive economic growth and capitalise on the UK knowledge base. Catapult centres provide assets and

technical expertise so that companies can demonstrate their processes and prove feasibility before investing in equipment and training. Companies can also take their products and processes to market faster as all of the process development is completed offsite, meaning there is no downtime in production, while technology transfer teams help to transfer the product or process into fullscale production.

In 2015 CPI has worked with almost 50 UK universities to help translate their research projects and spinouts into proven businesses. CPI is not affiliated to any one university, business or institute and uses this neutrality to create a safe, non-competitive environment enabling collaboration between SMEs, governments, universities and large corporations. These factors have enabled CPI to gain an impressive track record of helping more than 1,000 SMEs. That these SMEs can test and develop their manufacturing processes without having to invest in the facilities and staff means that their money can go further, and investors can gain confidence through funding rounds before being fully commercialised. When it comes to nurturing and developing innovative companies and indeed, industries, it takes more than a collection of machines or facilities. As we have found at CPI, it requires private-public sector collaboration, multidisciplinary expertise, foresight for new technology, connections to supply and research networks and a deep understanding of what it takes to make innovation happen. n Nigel Perry is chief executive officer of the Centre for Process Innovation. A chartered engineer 30 years in the global process industry, he set up CPI in 2003. It employs more than 260 high-calibre scientists and engineers.

Engineering success is a major way ahead

New directions: Chemicals and printable electronics are taking North East business along new paths

It’s reckoned that whatever your engineering need there will be a firm in the North East ready and able to meet it.

The resilience North East companies are capable of in adapting to change is well illustrated at Thomas Swan & Co, the Consett producer of fine chemicals. Started in 1926, it first made its name converting waste slag from the local steel plant to a road building material. Today it is a pioneer in the graphene and nanotechnology area, exporting to more than 80 countries.

Managing director Harry Swan, a Durham University graduate in biology described as one of the UK’s most inspirational manufacturers, wants to move towards plant derived chemicals.

Major attention for now though will probably be on Hitachi Rail, whose initial assembly work is well under way at its Newton Aycliffe production centre. The first carriages of the first train could roll out any time from the start of 2016. By summer the initial train will be running on the rails in tests ahead of making its mainline service debut on the Great Western Line in summer 2017. Along with

the region’s advances in graphene, printable electronics and nanotechnology, which are all expected to create commercial opportunity - Applied Graphene Materials, a Durham University spinout, is already so far on at Wilton as to have patent approval in Japan – there are instances of companies re-investigating past manufactures for new opportunity. Close to the Hitachi work going on in Newton Aycliffe, family run Ebac, a leading maker of dehumidifiers, has invested £7m to revive the UK’s earlier abandoned washing machine industry, and is looking at moving into tumble dryers and fridge freezers. Along the road at Spennymoor new aspects of manufacturing are seen at the Thorn operation of Austria’s Zumbotel Group, which employs 600 people. With its academy of light, it is a key player in the current diversification of lightmaking.

New initiative is seen in Newcastle where Reece Group, already manufacturing for defence, energy, power, construction, medical and subsea customers, has relocated within the city to a £20m transformation of Armstrong Works. There it has also taken a major stake in another

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local firm, Continuous Retorts, to produce food processing equipment. Elsewhere in the city, and indeed in six regional centres, British Engines employs 1,500 and is now creating a £10m subsea engineering centre of excellence.

Newer technologies are gaining ground, in digital for example, while Newcastle’s recognition as one of six UK science cities is seen in the centres of excellence that encourage the commercialisation of biotechnology and medicine. Fast growing Quantum Pharma, a service-led niche pharmaceutical manufacturer, has launched a new range of up to seven in-licensed patented medical devices to ease side effects of cancer treatment. The company progressed further during 2015 when its wholly owned subsidiary Colonis announced a €1.5m deal with a German firm.

E-Therapeutics plc too, situated both in Newcastle and Oxford, is working on cancer treatments, and by last August announced itself almost ready to license out its most promising projects as its commercial focus sharpened.

Shield Therapeutics at Gateshead, excelling in products for treatment of anaemia and kidney disease, is geared up for a stock exchange launch, while QuantuMDx prospers as it moves from Newcastle’s International Centre for Life to a new headquarters on the Quayside, bringing under its wing work previously outsourced. Its handheld diagnostic tool Q-Poc is expected to gain regulatory approval for its use in the NHS and extensively abroad.

In biotechnology, Newcells Biotech, a Newcastle University spinout, is pioneering reproduction of cells without need of embryonic stem cells. A growing number of firms in pharmaceuticals and biotechnology are spinouts from the region’s five universities.

Professor Brian Turner, dean for university enterprise at Durham University, has pointed out that the total income for all English universities from the sale of licences or equity exits from spinout companies only brings in about £100m a year – a sum hardly changed after seven years.

He would like more spinouts. Often, he says, it is hard even to establish a viable commercial management team – hard also to obtain the necessary investment even when the technology has clear commercial potential.

One Durham University spinout that is making serious advances is Kromek, which though still young has an £8m

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turnover in its provision of radiation detection for security, medical and nuclear markets. It operates from NETpark at Sedgefield, where 35% of the people employed at 25 firms there – 400 employees in all – have postgraduate qualifications. Digital has great potential but Lee Perkins, managing director of Sage, has warned SMEs to take digital skills seriously in commerce or risk losing out. That said, there are outstanding firms operating within the sector. Mediaworks and Silverbean being only two. Nomad Digital is internationally renowned for its skills in equipping public transport travellers with interruption-free wi-fi.

Other tech teams capturing attention include Performance Horizon in Newcastle and True Potential, both of which have broken into Deloitte’s UK Technology Fast 50. The latter claims to be the only financial advice firm on that list.

The main talking point in the financial sector will of course be the launch of Atom Bank, challenging the high street operators. The foresight shown by serial financial entrepreneur Anthony Thomson in developing at Durham City the UK’s first branchless but digital bank, using voice, facial and fingerprint identification, has proved so impressive it has been listed eighth in the Fintech 100 even before it has opened for business.

There are 45,000 now earning a living in financial services in the North East. The 1,518 working for Utilitywise, company advisors in utility cost savings at North Tyneside, will soon be joined by 200 more as the £70m turnover firm continues to grow at Cobalt Business Park. Another upstart in the nicest possible way is Scott Logic, which Gary Scott established at Newcastle in 2005. It operates as a software development partner in finance and now has four offices around the country.

Food processing is now big business for the region, considered so important that a regional food hub has been set up at Teesside University to support and promote food professionals throughout the North East.

New opportunities are arising all the time, as we see at The Great Run Company, formerly Nova International, which under medal winning former athlete Brendan Foster gave birth to the famous Great North Run half marathon on Tyneside. It is now organising similar events in other parts of the country as keeping fit shows no decline of enthusiasm. n

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Innovation may come at a cost Manufacturers in the North East are in step with the rest of the UK - so 94% of them are now believed to be into innovation. A survey for the Engineering Employers’ Federation (EEF) and Vodafone UK suggests the region’s manufacturers, while keeping pace, do harbour fears about dropping behind the competition. The main focus for North East manufacturers is apparently on improving their products (86%), and improving their manufacturing processes (83%). But 75% in the region have innovated around improving their organisational methods and systems too.

The innovation doesn’t stop there. More than six in 10 (63%) have innovated to improve their service, while 60% have improved their marketing or distribution methods.

Their biggest incentive is the opportunity to boost margins on existing products and services (65%). However, almost six in 10 are motivated because they want to satisfy existing clients. Interestingly, though, developing existing domestic markets (47%) and also niche or specialised markets (47%) are also motives to innovate in this region.

Liz Mayes, North East region director at EEF, points out: “Innovation is resource-hungry and manufacturers find their results don’t always match ambition. Shortages of expertise, equipment and finance can hold them back.

“Manufacturers want to do more, and every additional pound invested in developing the products and services of tomorrow can help bring the UK closer to a more productive economy. This ambition should be matched by the Government.”

A similar plea could well go out from high tech businesses.

New rules introduced in the recent Finance Bill could jeopardise their growth plans. The Enterprise Investment Scheme (EIS) and Seed Enterprise Investment Scheme (SEIS) are government initiatives which offer attractive tax breaks to small businesses in the UK. EIS offers the breaks to investors buying shares in small private firms, whereas SEIS is aimed at those investing in even smaller companies. Both schemes, along with Venture Capital Trusts (VCTs), have raised billions of

pounds worth of funding for small businesses, and have helped drive investment in many companies – particularly in the technology sector.

But, under EC direction, new stricter rules affecting the EIS and VCT schemes were introduced in the last Summer Budget and Finance Bill, which could harm some businesses’ growth plans. These new rules impose: • A limit on the age of a company that can apply for EIS or VCT finance. The Government had initially proposed an age limit of 12 years, but this has now been reduced to seven years in the Finance Bill, albeit with some exceptions.

• A limit in the total lifetime risk finance funds which are raised by a company of £12m - £20m for knowledge intensive companies.

• The rule that no VCT or EIS funds are to be used to acquire other companies or trades.

Stephen Green, finance partner at RSM (Baker Tilly) says: “These new rules add further to the complexity of these important and successful schemes. My specific concern is that high growth technology businesses in the North East will inadvertently be hit hard.

“These new rules could deter acquisitions made to complement or further develop existing technologies, or to create wider market applications. Ironically, it is these very companies that George Osborne is keen to help grow in the UK. I fear the Government may inadvertently have switched off the tap to a vital source of funding for many businesses in the region.’ n

“These new rules add further to the complexity of these important and successful schemes. My specific concern is that high growth technology businesses in the North East will inadvertently be hit hard”

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Who said the coal era’s closing?

The North East’s role in energy provision is becoming ever more important as the war is cranked up on fossil fuels.

Experiments at Wilton under aegis of the Centre for Process Innovation could lead to a £3m industry converting energy from seaweed, and also at Wilton a £250m investment by Merseyside Energy Recovery is bringing about a waste to energy operation.

A new £650m power station situated between Middlesbrough and Redcar, MGT Power’s Teesside Renewable Energy plant, will convert biomass to supply 600,000 homes, via the National Grid from 2019. A Port Clarence renewable energy plant from 2018 will generate electricity for thousands of homes by wood burning.

While the 320 acre site of the former Rio Tinto aluminium smelter at Lynemouth in Northumberland was bought with intention to redevelop by Harworth Estates, the former estates business of UK Coal, the Lynemouth power station that served the smelter was sold separately to RWE npower. With the closure of the UK’s last deep mine in Yorkshire recently and closure of all coal-fired power stations perhaps by 2023, coal is witheringly discredited and Britain’s production now relies on 16 drift mines, with North East firms Hargreaves Services and Banks the main businesses involved. Banks runs or manages nine of the surface mines but meanwhile has diversified into renewable energy, housebuilding and other activities.

Hargreaves, in face of lower coal prices and less demand from power stations, is having to remodel.

Cheaper foreign coal and government policies such as carbon tax are accelerating the present coal industry’s decline. But coal still has influential champions who maintain that new technology, including carbon capture and storage, could slash CO2 and other harmful emissions.

Confirmation of the possibility came in a study by Edinburgh University that concluded carbon storage from industries such as Teesside’s pharmaceutical sector, in subsea spaces left by North Sea oil gathering, could also initiate new exploration in the area. A Teesside Collective of companies has been canvassing for funding to build Europe’s first carbon capture and storage network, hopeful of making Teesside the clean air capital of Europe with 15m tonnes of CO2 a year stored there and 2,600 jobs created over the next two decades. Belief is growing that the UK won’t be able to give up fossil fuels entirely. By this midsummer a company called Five-Quarter expects to start work on its £30m underground coal gasification demonstration plant. The company was formed when academics from Newcastle University secured licences from the UK Coal Authority to gasify undersea coal reserves. And despite a difficult period the offshore industry has entered, Cramlington based Techflow Marine, which produce products associated with fluid transfer systems, has been named fastest growing business and fastest growing large business in the North East in Ward Hadaway’s 2015 awards.

With every cloud, then, a silver lining. n

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Revving up for further acceleration Closer endeavour and heavy investment will equip the North East automotive sector to ride out any economic storm 2016 may bring. Up to 800 new jobs are already expected in addition to those recently created yet again by Nissan. A report called Driving Innovation says that despite the ongoing global economic slowdown, a check through the supply chains of England and Wales indicates that 60% of respondents plan to bring in new opportunities.

The report by Lloyds Bank Commercial Banking says job creation ambitions detectable are also underpinned by manufacturers’ reshoring activity across England and Wales. While a fifth (20%) plan to bring some part of their manufacturing back to the UK in the next two years, 40% have already done so. The reasons: a wish to control production better, a wish to counter rising labour costs overseas – and just wanting to support the UK economy.

As 78% of all vehicles made in the UK last year were exported, global instability could adversely affect the future for an industry that otherwise has outperformed the broader manufacturing sector substantially since the recession. Local firms see a possible exit from the EU as their prevailing challenge; 40% of respondents cited it as their top worry, along with material price volatility.

They propose, however, to enter new markets (40%), develop new products (40%) and invest in their existing products (40%). Despite fears of a ‘Brexit’, 50% still aim to win new customers in Western Europe, with 50% targeting new business in Russia. Much of the optimism is attributable to Nissan, now turning out at Sunderland the new Infiniti Q30 hatchback model. This, the Daily Telegraph considers, a massive £250m triumph for British industry. It has even been called elsewhere ‘one of the most significant new arrivals in British carmaking this century’. It is, after all, the first time a Japanese car maker has chosen to build an upmarket model in Europe. It marks yet further progress for Sunderland, whose plant for some years has been Europe’s most productive in the industry, and whose output of 500,000 cars a year - bigger than all of Italy’s – accounts for about a third of Britain’s output also. Employment there is now almost 6,800, with every Sunderland worker making an average of 118 cars a year. Up to 4,000 workers have

been retrained for the job and 1,000 more jobs have been created within the local supply chain. To reach all these pinnacles of success, Nissan since 1984 has invested £3bn at the site, previously a disused wartime airfield. With the vehicle industry generally buoyant during 2015, many other firms in the region have enjoyed success. At Eaglescliffe, Nifco UK won its biggest contract yet, worth £50m, to produce plastic parts for Ford. Managing director Mike Matthews, said: “The scope and size of this deal is made even more significant by our having displaced competitors from right around the world.” It will enable Nifco to build a third plant and almost double the workforce. Car chassis parts manufacturer Gestamp Tallent, serving Jaguar, Land Rover, Volvo, Ford, BMW, Nissan and Honda from Newton Aycliffe, now employs 1,300 people. Nearby another automotives firm, ADM Pressings - already in Gateshead and Newcastle - proposed expansion and 28 more jobs with an opening in Spennymoor. Sevcon at Gateshead is enjoying record sales in the growing demand for electric vehicles, while Komatsu the offroad vehicle builder at Birtley is picking up pace now that construction and civil engineering are recovering in this country and abroad.

Meanwhile the American inward invest or Cummins has celebrated 50 years in Darlington, making lorry exhausts and engines now from two sites. In the North East, commitment to innovation remains strong, with investment goals into research and development at an average 18% of current turnover over the next two years, 1% higher than across the UK as a whole. The closer co-operation of all players in the North East has been assured by the formation of a cluster, the North East Automotive Alliance (NEAA). Set up in 2014, it has more than 100 companies in membership, and it unveiled an Innovation and Technology Group at a Westminster launch event. Kevin Fitzpatrick, chairman of the NEAA and Nissan vice-president for manufacturing in the UK, introduced the event, which Paul Butler, chief executive of NEAA, said was about letting the Government know how North East industry is driving the region’s competitiveness.

Fitzpatrick explained: “The launch of NEAA’s innovation and technology group means it now offers support

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Briefing time: Paul Butler (left), chief executive of the North East Automotive Alliance talks with James Wharton, Northern Powerhouse minister, at the NEAA’s Meet the Buyer event in Sunderland. and strategic direction across skills, business excellence and innovation.”

The group is working with key players of the North East to form an innovation hub. This will highlight and develop emerging technology, and also support process innovation working with vehicle manufacturers such as Nissan and Komatsu and their suppliers, to make products more quickly and cost effectively.

A new International Advanced Manufacturing Park, a joint venture between the councils of Sunderland City and South Tyneside is being built on land north of the Nissan site and will provide space for new and expanding innovative businesses to grow.

Butler says SMEs with new technology will have the chance to showcase it and network with the supply chain. Earlier, the NEAA held its first Automotive Expo. That attracted more than 330 delegates from over 200 companies, and brought together regional suppliers and buyers from global carmakers at Sunderland’s Stadium of Light.

Amid the networking more than 150 one-to-one meetings took place. James Wharton the Local Growth and Northern Powerhouse Minister, who attended, finds the region’s sector as one “with a track record of huge potential for growth” and an important role in rebalancing the economy. Feedback from the Lloyds survey suggests many businesses are awaiting breakthroughs in the fields of lightweight, electric and driverless vehicles by bigger and better resourced players before committing further spend to these areas. However, once this technology starts to be more widespread, the supply chain looks set to benefit.

The UK is home to 13 R&D centres, seven of the world’s 10 Formula One teams and 16 of the top 20 global automotive suppliers. “We also have a unique opportunity to lead the development of connected and autonomous vehicles” Mike Hawes, chief executive of the Society of Motor Manufacturers and Traders, predicts.

The Sunderland based NEAA is part funded by the European Regional Development Fund. n

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IN BRIEF Names that make the headlines Enthusiasm is not a quality scarce among entrepreneurs and self-starters in the North East. In recent years a sharp pace has been set by the like of Graham Wylie (co-founder, Sage), Steve Gibson (Bulkhaul, Middlesbrough Football Club, Rockliffe Hall Hotel) and of course Duncan Bannatyne, the former ice cream salesman who has built an empire of health clubs and hotels, as well as becoming a media personality.

An impressive new wave is springing up too, as BQ’s annual award to North East emerging entrepreneurs shows. The value of an £18m centre for healthcare photonics, due to open at Durham NETPark in 2017, has already been heralded by the success of Richard Kirk, chief executive of PolyPhotonix, who has pioneered technology using light to diagnose and treat a range of debilitating medical conditions. His company is in business with a sleep mask he has developed that could improve the quality of life of thousands of

people with diabetic retinopathy, a condition caused by high blood sugar levels damaging cells at the back of the eye. Kirk came to the North East because the scale of support and encouragement he found was second to none. The global OLED lighting materials market in which the company operates is forecast to top £0.85bn by 2018, industry analyst NanoMarkets estimates, and meanwhile Kirk has gone on to win BQ’s national emerging entrepreneur award. His appearance also in The Manufacturer’s Top 100 has put him alongside the like of James Dyson.

By some he has even been regarded as a European inventor of the year.

Previously BQ’s regional award winner was Zoe Farrington who, with Andrew Richardson in 2013, set up Realsafe Technologies and produced a winning app capable of saving motor-

Zoe Farrington: with her team saving motor-cyclists’ lives

cyclists’ lives. They were subsequently grand prix winners in the Faces of British Business competition and then beat 57 rival claimants to win the British leg of a European Satellite Navigation Competition. And what of Nigel King, who built a drone to check whether his house might fall into the sea at Low Hauxley on the Northumbrian coast, and is now a successful drone manufacturer working from Amble?

Further down the east coast at Seaham, cousins Andrew Tomlinson and James Buckle are building a kitchen and home appliance manufacturing business. It started in their homes after one of them found it impossible to buy locally a raclette, a table top grill all the rage in mainland European. A roaring export trade now supports 100 jobs and contributes to over £17m turnover.

“An impressive new wave is springing up too, as BQ’s annual award to North East emerging entrepreneurs shows”

Manufacturing’s time in this country is limited if it wants to flourish in the fourth industrial revolution, and meanwhile the offshore energy industry must readjust

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G N I R U T C A F U N A M E R O H S F AND OF

In association with

All change in energy Be part of a cultural shift required in the oil and gas sector, and broaden activities and markets too – that’s the advice to producers from George Rafferty as petrol prices at the pump fall to under £1 a litre at the turn of the year As we move into 2016, the oil and gas sector is in a position that demands continued change. The industry must build upon the work conducted in 2015 to address cost control issues and the need to operate in a low oil price market, but also increase the drive to diversify; grasp new opportunities that emerge from the challenges we face in our cyclical industry. The oil and gas sector is addressing the current period of serious transition through a greater level of collaboration between the industry, the supply chain and bodies including the Oil & Gas Authority. This will help ensure a more sustainable future for the North Sea, which still holds considerable opportunities for decades to come.

Oil and gas as a sector is cyclical, and many businesses within the industry have been through challenging times before. However, this current period is unique. The challenges are different from previously.

That said, there is a determination within the industry and, in particular the supply chain, to create a sustainable operating environment. This will be achieved by operators and contractors working closely with suppliers to create and bring to market game-changing technologies that address industry challenges.

NOF Energy’s Smarter Supply Chain initiative has seen positive moves from contractors and operators, not only

to engage with suppliers, but to embark on projects with closer working arrangements that will help develop bespoke tailored solutions more efficiently.

There is also, of course, the multi-billion pound decommissioning of North Sea assets on the horizon, which will also require the support of the supply chain.

Companies that can diversify their operations to be part of the decommissioning supply chain will see new opportunities open up for them. This is the clear message the industry, including NOF Energy, is sending out. Be part of the cultural shift required in the oil and gas sector, but also broaden activities and markets. The UK supply chain has to build on its achievements in the North Sea, in new geographic markets and alternative sectors. NOF Energy is supporting members with ambitions to apply their skills, technologies and services into markets across different continents that are keen to utilise UK expertise.

There is a strong track record of companies, many of them NOF Energy members located in the North East, transferring complementary skills, products and services, developed in the oil and gas sector, to other industries.

Most notable example of this is the offshore wind sector where companies from the region such as JDR Cables, DeepOcean, Barrier, Modus Seabed Intervention, SMD,

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In association with

IHC Engineering Business and OSBIT Power, among many others, have succeeded in applying their expertise to renewables projects in UK waters and further afield.

Offshore wind is one of the UK’s real success stories and has been at the heart of the country’s renewable energy transformation. A valuable clean energy resource, it has also provided a major boost for the UK economy, creating a range of new job opportunities. Offshore wind has supported more than 13,000 jobs already, with potential to grow up to more than 25,000 by 2025, particularly if investor confidence is maintained. The country already has five gigawatts of offshore wind installed, around half the capacity across the world. With more offshore wind farms being constructed over the next five years, the UK looks set to continue to build on this momentum. This region’s supply chain, which includes the companies within the Energi Coast group, has made considerable strides in building a reputation for this part of the country in the offshore renewables industry, and DONG Energy Wind

Power is already engaged with local suppliers, including JDR Cables and Offshore Structures Britain, on our projects at Race Bank, off the Norfolk coast, and Burbo Bank Extension, Liverpool Bay. Now is a time to think more broadly, rather than retain a narrow focus upon one sector.

Wherever possible, technological advances should mean greater opportunity, not merely an easier or quicker way to do one job. Ability not only to create wider opportunities for those in our sector is mirrored by those on the outside bringing new ways of working into our industry.

This shared knowledge and diversification is an excellent way of adapting to new challenges and creating new partnerships that are more dynamic, have broader experience and can do existing and new work better.

While 2016 will be a challenging year, it has the potential also to be the start of another pioneering chapter in the story of the energy sector supply chain. n

George Rafferty is chief executive of NOF Energy

Informing, inspiring and innovating in advanced manufacturing via research, industry collaboration, knowledge exchange, and design

Supporting Innovation in Manufacturing • INNOVATION IN DESIGN – through digital engineering and computer aided design, as well as reverse engineering.

• INNOVATION IN PRODUCT DEVELOPMENT – based around product lifecycle management and design for manufacture.

• INNOVATION IN PROCESS IMPROVEMENT – using our expertise in productivity improvements, lean methodologies, and adoption of new technologies to improve the manufacturing process.

“

Our partnership with AMAP was raising the skill levels of our employees, helping us to deliver in a fiercely competitive market STEVE PALLAS NISSAN TRAINING MANAGER

“

Driven by experts with experience of working with, and in, industry, AMAP effectively covers three activities:

For further information contact Roger O’Brien, call 0191 515 3888 or email Roger.OBrien@sunderland.ac.uk or see www.amap.sunderland.ac.uk

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Where the challenges lie Britain’s on the cusp of a global fourth industrial revolution, it’s suggested, expected by 2025. The main obstacles to Britain are considered to be levels of investment required, an availability of skills and ability to keep abreast of advances in technology.

There will also have to be more manufacturing leaders with the dynamism of Geoff Turnbull, chairman and founder of GT Group, who has been named in The Manufacturer Top 100 as one of the most inspirational individuals of UK manufacturing. GT, founded more than 30 years ago, employs 300, incorporates six business units, and now has forward orders of £400m for the next five years – with a projected growth of 100% in 2016. Its international divisions span automotive products, project engineering and fabrication, composite mouldings, seals, process controls and coatings. A staggering 90%-plus of its products and services are sold in more than 60 countries.

Turnbull’s own energies and enthusiasm drive this private business, yet he still finds time to be a successful racehorse owner and breeder and recently invested in the creation of North of England’s newest racehorse stud at Elwick in County Durham. With 2025 in mind, an engineering expert has counselled North East firms to speed the closure of their skills gap by collaborating to change public perceptions of their sector. Professor John Perkins, former chief scientific advisor to the Department of Business, Innovation and Skills, has also been president of the Institution of Chemical Engineers and, significantly, is noted for his review of engineering to the Government published two years ago.

Firms are collaborating on a business to business basis, showcasing their goods. County Durham for example suffered heavily from the demise of deep coalmining. But companies there, which contribute greatly towards filling the unemployment void, are driven by a County Durham Engineering and Manufacturing Network now responsible for the annual Oktoberfest held there.

Exhibitions and accompanying networking like this are a cost effective way to create trade opportunities in particular.

Around 50 firms exhibiting at the latest Oktoberfest at Newton Aycliffe were Cummins (Darlington, builder of vehicle engines), Nifco (Eaglescliffe, maker of plastic parts for vehicles), and Altec Engineering (Bowburn, provider of

electrical and mechanical engineering support).

This event has been running since 2008 and Izumi Products UK for one, which makes, supplies and repairs a variety of machinery from Bishop Auckland, has participated in every one. Similarly enthusiastic, Dyer Engineering the precision engineers of Annfield Plain has certainly secured orders there. A second like event introduced in 2015 was a Manufacturing and Engineering North East presentation at the Metro Arena in Newcastle, one looking likely to become a regular engagement on the calendar, since more than 10,000 small manufacturing and engineering firms beaver within 100 miles of the city. Meanwhile many of the long established companies retain their lustre. Barbour the outdoor clothing manufacturer on South Tyneside has been driving sales up 10%. Ringtons the Newcastle beverages and snacks provider is doubling its factory space after piercing the £50m turnover barrier for the first time in its 108-year-old history, thanks partly to gaining new sales ground in the South of England.

Greggs the largest bakery chain in the country thriving with food on the go, is opening shops at a rate of 50 a year

“With 2025 in mind, an engineering expert has counselled North East firms to speed the closure of their skills gap by collaborating to change public perceptions of their sector” – closing some too, admittedly – but aims to have 2,000 shops around the country. Started as a little family business at Gosforth in 1951, it has become a popular investment on the London Stock Exchange and is the nation’s biggest seller of sandwiches behind Tesco, which has double Greggs’ number of stores. The Government’s realisation that defence cuts are only feasible briefly in a volatile world is good news for Cook Defence Systems at Stanhope. It’s working on a recently won £70m order for tracks to fit to Challenger tanks and Scimitar and Warrior fighting vehicles.

Chairman Andrew Cook says the four years of work will safeguard more than 100 jobs and perhaps lead to further

MANUFACTURING & OFFSHORE In association with

Towards 2025: Geoff Turnbull is the stuff that manufacturing success is made of recruitment. At Barnard Castle, also on the county’s rural western fringes, GlaxoSmithKline the world’s sixth largest pharmaceutical manufacturer is also Teesdale’s biggest employer with 1,000 staff. Also quoted on the stock exchange, it has belied periodic rumours of large staff cutbacks at Barnard Castle and, 70 years into its existence there has the headquarters for its skin division, with a £20m dermatology centre of excellence.

Meanwhile at Peterlee in East Durham, international operations like food and drinks producer Pepsico, Caterpillar and NSK Bearings flourish. Pepsico has its Walkers Crisps manufactured there, a front runner among snackfoods. Offroad vehicle builder Caterpillar is turning out thousands of heavy duty vehicles suited to temperature extremes of the Poles and the tropics. And NSK, one of the North East’s first Japanese inward investors (in Peterlee since 1976) is selling its automotive bearing products to most car makers.

In County Durham’s other ‘new’ town Newton Aycliffe, 3M’s industrial masks protected British army medicals training for deployment to fight the harrowing ebola disease in Sierra Leone. Compound Photonics turns out semi-conductors in the former Fujitsu plant, and speculation that Husqvarna the Swedish garden machine manufacturer might shut shop came to nothing.

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North East firms most recently celebrated in the EY Manufacturers’ League for their diverse feats in key areas such as sales, exports and workforce development included: In Tyne and Wear - Rosewood Packaging, Chirton Engineering and Quick Hydraulics (all of North Shields); Astley Signs, Express Engineering, Gate 7 and Palintest (all of Gateshead); CMR UK (Wallsend); Unipres (Sunderland); Faltec Europe (Boldon); Ford Aerospace (South Shields); and in Newcastle Royston and Houghton International.

In County Durham - Coveris Rigid and Dyer Engineering (both of Stanley); Quantum Pharmaceutical (Burnopfield) and Altec Engineering (Bowburn). And Altec’s managing director David Steel, like Geoff Turnbull, was recognised in the Manufacturer Top 100, selected from more than 200 nominations.

In Northumberland - Piramal Healthcare (Morpeth) and IHC (Stocksfield).

On Teesside - Wilton Engineering Services (Port Clarence); Darchem (Stillington) and ElringKlinger GB (Redcar).

ElringKlinger, under managing director Ian Malcolm who also chairs the North East Skills Group, is remarkable proof of the region’s capabilities in manufacturing. Fifty-one years in business on Teesside, the company was almost despaired of by the German parent that acquired it. But it has capped a turnaround dating from 2012 with a recent £19.5m contract to supply car parts to Ford over five years. The win over fierce American and European competition makes a £40m turnover by 2020 now look feasible.

We can add another name to Stanley’s companies excelling during 2015, that of Hodgson Sayers. Having gained a title in the North East Business Awards, it has gone on to win a national company of the year honour in British Chamber awards for its continuous staff development.

It was the first construction company in the region – and the second nationally – to become Living Wage accredited.

As it bids to raise turnover to £17m (despite weak markets in metal fabrications and fencing), it hopes to get the workforce up to 130-plus with another score or so of hirings. It’s particularly good that Stanley and other Derwentside firms are making their mark, since massive recovery had to be mounted after the area’s steelworks collapsed with a loss of around 4,000 jobs in 1980. Food manufacturing and processing took root but nowhere enough to totally compensate. So it’s good that other activities are now progressing alongside. n

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PROFILE Sunderland College

2016 brings a new era for advanced manufacture and engineering in Sunderland Sunderland College’s new state-of-the-art City Campus will play a pivotal role in meeting the region’s skills needs within the advanced manufacture and engineering sector.

The new campus, which opens in September 2016, will house the college’s advanced manufacture and engineering centre. It will be equipped with leading edge facilities and will transform the teaching and learning of the subject area, delivering work ready students into the industry, and supporting the development of Apprentices’ technical skills.

Iain Nixon, executive director at Sunderland College, said: “There is currently a demand for people with manufacturing and engineering qualifications. Here in Sunderland, we expect that demand to grow with the development of the International Advanced Manufacturing Park.

“We’re working closely with industry experts to align both our curriculum offer and new facilities within City Campus to ensure we can play a central role in meeting that demand.”

City Campus will be the college’s hub for its extensive range of professional and technical courses and the impressive building will offer more than 150 programmes, including 16-18, adult and higher education provision.

Iain commented: “We already have hundreds of students of all ages studying subjects with a view to progressing into a career in engineering. These range from A-Levels and BTECs to apprenticeships and HNDs in engineering. Our vision is to ensure we continue to prepare our students for a successful and long career in the advanced manufacture and engineering industry, whilst at the same time meeting both the current and emerging needs of these sectors.”

Sunderland College also offers a range of support to businesses

“We’re working closely with industry experts to align both our curriculum offer and new facilities within City Campus to ensure we can play a central role in meeting that demand”

Sunderland College’s new state-of-the-art City Campus in the region and has a proven track record in establishing partnerships with organisations to meet their workforce and skills needs. This reputation has been built by placing strong emphasis on working with organisations to deliver results and strengthen their business to make it more efficient and ultimately more competitive. The college views all organisations as unique, and works with businesses on an individual basis to understand their needs and challenges.

Iain added: “People development is at the heart of everything we do, from delivering tailored and bespoke courses and qualifications, to short taster and master classes as well as Continued Professional Development, Apprenticeships and Traineeships to meet a business’s need.”

For further information on Sunderland College please call 0191 511 6000, email employers@sunderlandcollege.ac.uk or visit www.sunderlandcollege.ac.uk

We’re motivated by results

Are you?

We firmly believe that training and development should deliver results – strengthening your business to make it more efficient and more competitive.

So when you’re thinking about your workforce and skills needs, choose a training provider that really understands your requirements, will deliver high quality solutions and provide a clear return on your investment.

Choose Sunderland College We’ve a proven track record of supporting apprenticeships and designing and delivering courses and qualifications for the advanced manufacturing and engineering industry including: Fabrication and Welding Electrical and Electronics Manufacturing Engineering Performing Manufacturing/ Engineering Operations Lean Manufacturing & Business Improvement Techniques To find out more call 0191 511 6000 or email employers@sunderlandcollege.ac.uk

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Other opportunities beckon Thousands of North East jobs have been lost since early 2014 through setbacks in the offshore industries.

Oil and Gas UK says employment on the Continental Shelf fell by 65,000, from 440,000 to 375,000 – equalling the North East’s total workforce in the sector, though the 65,000 affected were from other parts besides. It adversely affected the North East unemployment rate, even so.

On the brighter side, 13 hectares of prime Enterprise Zone site where once the former Swan Hunter shipyard stood is being made into a hub for the offshore, renewable energy and advanced engineering sectors, with lots of opportunity for start-ups. North Tyneside Council is working with construction firm Kier to bring this about.

A redundant wet berth that once served the shipyard is being infilled to provide additional space for development.

Over £100m is being committed, with contributions from the European Regional Development Fund, the Homes and Communities Agency, the North East Local Enterprise Partnership and private and council investment. It is hoped that 1,000 jobs will result.

Meanwhile one of the biggest of the region’s onshore energy employers, GE Oil & Gas at Walker Riverside in Newcastle, has opened an innovation centre to test subsea pipeline technology. And Shepherd Offshore opened Neptune Energy Park for business with a deepwater quay, test and fabrication dry dock and warehousing.

Opportunity exists also for firms to venture into offshore wind energy. Darlington firms Deep Ocean and Modus were among those so benefiting, as too Tekmar, an industry leader in cable laying, and Offshore Structures (Britain), a foundation maker. The Government has declared – better late than never – that it wants to increase the input by British firms on this to more than 50%. Had incentives been offered earlier the position would have been much better by now.

Inevitably in this maelstrom job dissatisfaction has grown, despite - or perhaps because of - salaries having ranged from £35,000 to £250,000.

A survey for recruitment specialist Nigel Wright, based on more than 1,000 respondents, indicates that while pay rose on average by 5% in 2014, increases in many roles and levels had dropped by an average 2.3% in 2015 as falling

Facing reality: Anthony Broadhead sees in a rude awakening a much needed readjustment

“Inevitably in this maelstrom job dissatisfaction has grown, despite - or perhaps because of - salaries having ranged from £35,000 to £250,000” oil prices impacted. Payouts in personal and company performance related bonuses had also fallen.

Non-management had been hit hardest, and pressure was on employees to deliver more for less.

Anthony Broadhead, country manager for Nigel Wright’s energy division, said of the falling oil price leading to slashed capital expenditure and large scale redundancies: “It’s a rude awakening but, some argue, a much needed readjustment.”

As motorists drove towards Christmas delighted that petrol had fallen to under a pound a litre, the other side of the coin was that the energy firms’ shares in their pension portfolios might not be as forthcoming for the foreseeable future. n

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We have the power If there’s anywhere that manufacturers can get off the rollercoaster this time round, it will probably be in the North East, Liz Mayes suggests At the start of 2015 some telltale signs that it would be a bumpy ride for manufacturing were already showing. As the cork popped on the beginning of a new year, firms felt cautiously confident. Previous optimism had been tempered by a hefty dose of realism, with those expecting UK economic conditions to improve almost halving from 70% to 37%. The number expecting conditions in the UK to deteriorate tripled, from 5% in 2014 to 17%. But manufacturers were even more alert to global economic conditions - 38% expected them to take a turn for the worse in 2015 (compared to just 5% at the start of 2014).

How right they have been! For 2015 will be remembered as a year troubled by a global list of economic woes – including uncertainty in Europe, China and Greece – which inevitably cast a shadow over UK manufacturing. A ‘rollercoaster of risks’ from the rest of the world led to a deterioration in all of UK manufacturing’s key indicators and most notably in output and orders, where falling demand at home and abroad took its toll.

The picture in the North East has been slightly more mixed, but still it has been evident that our region’s manufacturers have had a bumpy ride. The million dollar question: will 2016 be any better?

Early indications are not good because now, besides an already long list of woes, we can add the current UK steel sector crisis.

This is starting to have a knock-on effect in our region, not just because of the actual steel sites affected, but also because of the impact on their supply chains. If this crisis rumbles on unchecked and unresolved, inevitably we’ll start to see its effect in order books, output, investment intentions and employment. Against this backdrop, confidence levels are likely to suffer, with more of our region’s manufacturers feeling less upbeat about their own growth prospects.

Everything points to 2016 being tough. And in a year like that it’s particularly important for industry and the Government to work closely together to help offset the risks and support investment and innovation. Lines of communication must be kept open and here, at least, signs are positive with the new Business Secretary Sajid Javid due to give a major address at EEF’s next national manufacturing conference.

It’s also vital our sector continues to remain open, determined and focused on finding innovative solutions.

Last June we held the North East’s first EEF annual manufacturing dinner. This flagship event was a celebration of our region’s dynamic manufacturing and engineering sector, bringing together around 100 leading manufacturers, engineers and senior business people from across the region.

Sponsored by Lloyds Bank, Teesside University and UKTI, the event was set up to encourage networking, greater collaboration and the sharing of new ideas - vital for an industry going through rapid technological change and also facing the challenges we see lying ahead in 2016.

I’ll also leave you with one final positive.

Despite the headwinds of the past year, we identified that North East manufacturers are putting our region on the map.

Almost 6% of the UK’s manufactured exports are being made in our region, and this success story allows our ingenuity, creativity and skills to be recognised around the world. With these types of attributes, if anyone can get over the hurdles ahead it will be the North East’s manufacturers. n Liz Mayes is North East region director of EEF, the manufacturers’ organisation

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IN BRIEF Spreading their wings Some notable North East manufacturers and engineers have spread their wings for various reasons and in different ways. Go-Ahead public transport, the North East’s third largest company by turnover, has won £1.12bn worth of contracts to run trains in Germany from 2019 until 2032. In this it will bring 18 years’ experience of running rail services in the UK to bear. It also won a contract from Singapore. Runaway food success Quorn was sold to Monde Nissin in the Philippines for an enterprise value of £550m. The firm operating from Stokesley and Billingham had topped sales of £150m for the first time, again thanks to soaring exports. Its meat-free products already selling in 15 countries are expected to win favour among the growing populations of Asia. SMD’s undersea plough business at Wallsend has been sold to a Chinese transport giant for £120m, shortly after it trebled profits to £4.2m. Chief executive Andrew Hodgson who is staying on thinks it a brilliant fit, again with Far Eastern markets in mind, SMD’s ambitions having been previously constrained by too little investment power. Seaward, a market leading maker of electronic test and measurement instruments, has been sold to Metrwatt International of Germany but the Seaward brand and operations in Peterlee, the USA and Malaysia will be maintained. Seaward chairman Rod Taylor, like many employers in engineering, had found it increasingly hard to recruit adequately skilled employees in this country.

“SMD’s undersea plough business at Wallsend has been sold to a Chinese transport giant for £120m, shortly after it trebled profits to £4.2m”

Royally recognised North East manufacturers and engineers invariably figure in the Queen’s Awards for outstanding performance and 2015 was no exception. Firms recognised then included Ikon GeoPressure, providing software to the upstream oil and gas industry from Durham City, Cordex Instruments at Middlesbrough providing safety equipment for hazardous areas, Integrated Display Systems, as well as Catalytic Technologies, supplier to the food and drinks packaging industry.

JDR Cables, a Cambridgeshire and Hartlepool firm, had its exporting rewarded. Northumbrian Water, continuously recognised royally in this way for a decade, again had its sustainable development recognised.

Good news, too, in a different way for another utility... Sembcorp got back into the black at Wilton after testing times brought about by retrenchments elsewhere.

Who can be gloomy about money when there’s a £120m fund to turn to, and a groundbreaking new bank springing up in the North East?

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Gloomy - who’s gloomy?

A shiny new money box and a new-look bank give us something to look forward to

January is often that month of financial gloom, when bills mount and account credits fall. But this time round, since we’re all in it together, we can at least relish some doubly good news generally for the North East, and especially if we are in business. First, we start the year knowing the region’s £120m Jeremie Fund, such a great support for blooming businesses and jobs, will run for a second term.

Second, we should see the launch of Atom Bank, the North East’s own challenger bank and Britain’s first allmobile, wholly digital operation. It will employ around 150 staff in Durham City and offer loans and other support within the region as it builds on its early resources.

The region won Treasury support to retain and control Jeremie after the money looked likely to be absorbed into a new Northern Powerhouse Investment Fund detailed in Chancellor George Osborne’s recent spending review.

The North East LEP board’s determination to keep a new Jeremie 2 fund within the region won the day, however, against some expectations to the contrary.

The original programme, Jeremie 1, officially the Finance for Business North East Fund, proved its value by investing £142m in equity and loans from its Newcastle base over the last five years into more than 800 local SMEs. It has helped create more than 2,600 new jobs, safeguarded 3,000 more and secured £180m in private sector investment. The fund was launched in 2010 following the phase-out of regional development agencies and a redistribution of resources. It has since been acknowledged as the most successful of its type in the UK. Overseen by North East Finance, it has seven funds, each dealing with different levels of the market, from start-ups to larger specialist technology firms. It has also been one of the ways through which Teesside and the rest of the North East could retain a link, even though they have separate LEPs. North East Finance made a point of raising awareness of financial options available to start and grow businesses last autumn, when it supported Venturefest North East, a free full-day event that brought together businesses,

corporates, investors, academics and advisors with expertise in innovation. Its ‘meet the investor’ contribution encouraged would-be start-ups to become investmentready and find funding. Besides being introducing to multiple sources of funding, the initiative refined attendees’ propositions to make them as attractive as possible to potential funders.

Helen Golightly, chief operating officer of the North East LEP, has believed all along that retention of the Jeremie fund, run within the North East for the North East, offers best possible use of the money. Now a separate Northern Powerhouse Investment Fund will have £400m invested in firms in Tees Valley, the North West, Yorkshire and Humberside, with the British Business Bank running it from Sheffield. Paul Woolston, chairman of the North East LEP, said at the time of the announcement: “It would have made no sense to let Jeremie 2 leave the region when we have the proven track record of exceptional delivery and return on our investment.”

The North East LEP has committed much of its European structural funds to Jeremie 2, along with match funding from the European Investment Bank. North East Finance in Newcastle is the holding fund manager, and the new fund will operate as its predecessor did, through proven delivery channels with repaid loan funding being piled back into yet more growing local businesses.

Atom Bank - founder, Anthony Thomson its chairman - had been expected to be operating by now, but is nevertheless well on the way towards launch. A £45m investment made, enabling Spanish banking group BBVA to become a major shareholder with 29.5% stake, allowed Atom to finalise its £135m fundraising drive since the founding team got together 18 months earlier.

Regional investors in the bank so far named include Sir Peter Vardy (a great admirer of Thomson’s entrepreneurial skills), recruitment group NRG’s Lorna Moran, British Engines and another North East entrepreneur, Jeremy Middleton. Others include Jim O’Neill, former chairman of Goldman Sachs Asset Management, Polar Capital

“Within five years 60% of all banking could be on mobile devices. That drove my idea. Mobile digital can be a lower cost provider.” and Anthemis Group. Why such a bank? Thomson, who earlier founded successfully the Metro bank operating in London and the Home Counties, summarises his thinking behind his fourth business start-up saying that while branch banking and fixed desktop internet usage is falling, growth in mobile phones and tablets is ‘explosive’. He told BQ magazine: “Within five years 60% of all banking could be on mobile devices. That drove my idea. Mobile digital can be a lower cost provider.”

Designs for the bank’s three storey premises at Aykley Heads have been publicly displayed and officially approved. Rivergreen Developments got permission from Durham County Council for the 4,242sq m commercial office building.

The county council has also subscribed to more than 150,000 shares in lieu of rent for Atom’s current base in Northumbria House at Aykley Heads. Design of the new premises is by JDDK - the award-winning Newcastle architects Jane Darbyshire and David Kendall.

Atom Bank’s personal and business banking products in waiting will be delivered initially using mobile apps, with a desktop version to follow. Strict formalities with the financial regulator, to secure a banking licence, have also been met successfully.

More than a score of challenger banks are being set up,

Sir Peter Vardy: a big admirer of Antony Thomson’s skills

or contemplated, to raise competition for the main high street banks. This is being encouraged by the Government, the Bank of England and many bank users in wake of the industry’s scandal that fuelled a five-year mess-up of the national economy.

A recent report suggests about 48% of SMEs can now be considered as permanent non-borrowers where banks are concerned. They are business owners who haven’t used external finance for five years and have no plans to take on debt in the future.

Some analysts suggest the market will not support all the challengers in the long run and that there will be mergers and consolidation. Whether Atom Bank can stay the distance will be proved in time but one thing is certain; for now, technically, there is nothing quite like it.

And Thomson knows the bank’s initial core area, the North East, as well as anyone. Born in Corbridge, he attended Ravenswood School in Newcastle and Gosforth Grammar School. He sold advertising for the Evening Chronicle on Tyneside before moving into the financial sector and becoming a serial financial entrepreneur himself.

He believes bank customers generally are concerned less about their varying rates than about their varying customer service, and he aims to ensure that Atom Bank’s customer response will be impeccable. n

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PROFILE Let’s Grow

Let’s keep growing There is still grant money available to support businesses and create jobs in the region Many businesses hungry for investment support were dismayed by reports after the autumn spending review that there would be no more Regional Growth Fund, RGF. But, in the words of Simon Allen, senior project manager at independent business services group BE Group: “Actually that’s only half the story’’.

In fact, businesses in the North East can continue to gain access to RGF money until the autumn of 2016 via the Let’s Grow Fund.

Let’s Grow was set up in 2013 following a successful bid by the BE Group, chartered accountants UNW and The Journal and Evening Gazette newspapers for £30m of RGF money to provide grant support for capital investment and R&D projects creating or safeguarding jobs in the region.

That was so successful in beating its targets – with a forecast of 3,000 jobs by March 2016 – that in the summer of 2014 Let’s Grow successfully bid for another £30m. The good news for the region’s businesses is that only half of that tranche has been committed, leaving some £15m available.

Let’s Grow supports capital and R&D projects of £200,000 or more which will be completed by March 2017 and which will create sustainable jobs in the region. It is run as a series of quarterly competitions and the next is in summer 2016.

The deadline for expressions of interest is 6 May and for full applications 3 June. The dates for the next competition are 5 August 2016 and 2 September.

So, businesses which need investment support for their growth plans should start looking at Let’s Grow now.

“We need a final push now,’’ says Simon Allen. “We can carry on spending RGF, but there’s no more when it’s gone. I’m looking for applications to continue coming in until the autumn 2016.

“We can carry on spending RGF, but there’s no more when it’s gone. I’m looking for applications to continue coming in until the autumn 2016.

The message is: if you’ve got an investment in mind, think about it now, rather than later.’’

The message is: if you’ve got an investment in mind, think about it now, rather than later.’’

The Let’s Grow Fund has been so successful that the Tees Valley LEP, TVU, invited BE Group to administer the Tees Valley Business Support Scheme.

This £16m fund was set up in the autumn of 2015 following the closure of the SSI steel works in Redcar to help the supply chain businesses affected with grants of up to 200,000 euros.

“We have a flexible package of grants, it’s not just about capital investment,’’ says Simon Allen. “it’s often about providing a working capital injection to enable businesses badly impacted by the closure of SSI to survive in the short term, diversify, gain new business and safeguard jobs.’’

The scheme, which runs until March 2018, is open to relevant businesses with a viable business plan.

For further information on Let’s Grow or the Tees Valley Business Support Scheme visit www.be-group.co.uk or call 0191 389 8434

APPLY NOW A grant scheme for businesses based in the North East.

The projects we can support are those which: Involve expenditure of £200,000 or more on capital assets or R&D and, where appropriate, training costs as part of a capital investment project Haven’t yet started Will be complete by March 2017 Will create or safeguard permanent, sustainable jobs Offer good value for money in terms of value of grant per job created Make a clear case for needing grant support Have adequate private sector funding for the project Comply with State Aid regulations

LET’S GROW NORTH EAST NOW OPEN FOR APPLICATIONS

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IN BRIEF Seed support

Sound investment

Businesses in the North East, more than anywhere else, have benefited under a New Enterprise Allowance Scheme. The scheme provides benefit claimants with a sound business idea seed funding. About a fifth of recipients have been in the North East.

The Newcastle based Northern Investors’ Company has reported significant progress following a long term change in its investment strategy.

Four years earlier it was agreed to stop making new investments and begin an orderly realisation of its portfolio with a view to returning capital. In mid-June it distributed £20m to shareholders, against £15.2m in 2014. The number of holdings in the portfolio came down from 20 to 15, and £23m was realised from sales. The company, founded in 1983 and listed on the stock exchange since 1990, is managed by NVM Private Equity LLP.

Faith in the region The Business Growth Fund has £108m out of £500m in total invested in businesses across the North of England. Regional director Andy Gregory reported mid-year: “BGF has seen a huge surge in demand across the North of England – a clear indication of entrepreneurial drive and a supportive business environment. Businesses we’ve already backed are growing quickly, gaining market share, and are demonstrating they are capable of competing on a national and international stage, given the right backing and support.

“There are many more companies out there from a wide range of sectors that could benefit from our type of support.”

Outlook brighter UK Asset Resolution Ltd, set up in 2010 to manage assets of banks broken by the financial crisis, expects its progress will now enable it to repay fully by 2025 the £34.1bn still owed on government rescues passed to it. Its responsibilities included Bradford & Bingley and the ‘bad’ side of Northern Rock’s affairs, the ‘good’ side having been sold to Virgin Money. UK Asset Resolution employs 1,000 staff in Sunderland and also has an operation in West Yorkshire.

Green for failure The North East has missed out on tens of millions of pounds in government funding for green energy developments. It has lagged notably behind other regions, taking just 4% of the funding after only 513 opportunities were taken up in the Renewable Heat Incentive.

Contact centres and good designers can play a key role in gaining prominence for the North East in a Northern Powerhouse

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Complex, demanding, rewarding The way businesses in the service sector work has changed enormously over the last decade, through technology and a surge in the pace and accessibility of communication. Time to innovate, then and stay a step ahead says Alastair MacColl In a profoundly competitive global market it’s easy to forget quite how loudly and consistently we should be shouting about the fantastic achievements of our entrepreneurs and wealth creators.

That’s why publications like the BQ Yearbook are so important. They help to ‘raise the decibel level’ and remind everybody that the North East is an enormously valuable UK asset - an ambitious and dynamic region home to exceptional businesses, globally significant manufacturing facilities, world class universities and a well deserved reputation for innovation. The pages of this Yearbook are packed with individuals and businesses that have helped build that reputation for innovation; boldly built

pioneering brands, products and services that are leading their markets. Of course the way that businesses in the service sector work has changed enormously over the last decade, largely as a result of technology and a surge in the pace and accessibility of the way we communicate.

Markets we serve now are more complex and demanding than at any other time in living memory. But they also offer greater opportunity than ever before to those able and willing to invest in anticipating and meeting the needs of their markets. To make the most of those opportunities, more and more businesses in the service sector are now investing systematically, and often adventurously, to stay one step ahead of their customers’ expectations.

They are working together with customers, partners, sponsors and sometimes competitors to solve problems and develop solutions. They are engaging in the kind of collaboration that has been established practice in a number of sectors, where the cost of innovation means that it makes sense to share the burden of ‘breaching’ barriers to progress.

At the BE Group, investing in innovation is just part of what we like to think makes us special. We have always worked with our customers and partners to identify common goals and share knowledge to make sure everything we do and design is consistently market leading. That’s helped us to share resources, spread the cost of research and effectively institutionalise innovation.

For us it’s about being best at everything we do and producing best results for all our customers. And along the way we get to build up the kind of market insight and intelligence that is simply priceless. So, in a rapidly changing sector that never stands still the most successful businesses and entrepreneurs will be those that put innovation at the heart of everything they do. It’s definitely time to innovate. n

“The North East is an enormously valuable UK asset - an ambitious and dynamic region home to exceptional businesses”

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Alastair MacColl is chief executive of BE Group, helping businesses to succeed and grow

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SERVICE SECTOR In association with

Contact centres can plug into power Contact centres can power up the North East’s economic growth, the boss of one of the region’s biggest businesses believes. Lee Perkins, executive vice-president and managing director of Sage UK, thinks that while many are looking to manufacturing and heavier industry to support the region’s involvement in a Northern Powerhouse, it will be the ‘weightless’ sectors like software and financial, and professional and business services that will spur North East growth. A quarterly survey by North East Chamber of Commerce showed that while manufacturing did underpin the regional economy throughout the recession, growth in the service sector far outstripped manufacturing growth during 2013 and 2014. Perkins says: “The term Northern Powerhouse denotes heavy industry, like manufacturing and engineering. But in fact, the region’s contact centres are also well placed to support the North East as it looks to establish itself as a driving force, powering the North’s economy. Considering that the concept of the powerhouse is about the North creating an economic climate that rivals London, we also need to look at the role our contact centre industries and back-office support businesses can play.

As a business very reliant on having an effective contact centre, we know how valuable they can be to business, and the region has a deserved reputation for success in this field. Despite this, it can be a forgotten sector. We’re fully behind the industry, something that’s demonstrated by our commitment to championing best practice and celebrating success.”

The Newcastle headquartered firm, a market leader in providing businesses with a range of easy to use business management software and services - from accounting and payroll, to enterprise resource planning, customer relationship management and payments – serves millions of customers globally, employing more than 14,000 people.

Though growing its international footprint, Sage has stayed rooted to the North East and has recently shown its support for the contact centre sector, by becoming headline sponsor of the North East Contact Centre Awards. Sage won the large contact centre category of the 2013 awards, having also been named top dogs in the awards’ first year in 2003.

“The more that can be done to champion the sector, and celebrate the role it plays in the region’s success, the better – and I’m sure it will continue to be a driver as the

Smiles of award winning contact centre employees area starts to punch its weight in the North’s powerhouse,” Perkins added.

The North East Contact Centre Awards feature 11 categories, from Best New Talent to Outstanding Contribution to Community. Councillor Paul Watson, leader of Sunderland City Council which organises the awards, points out: “Many of the blue chip businesses of the North East are contact centre businesses. In Sunderland alone, we count Barclays, More Than, TSB, Npower, and EDF Energy among the big name businesses that have chosen the city.

“Between them, the city’s contact centres employ around 14,000 people. And we’re just one part of the regional contact centre landscape. That proves just how vital this sector is to our great region.” Leanne Chambers, head of resource solutions at recruitment agency NRG, says the contact centre industry is changing fast, with the makeup of roles required becoming increasingly varied. “We have worked with the contact centre industry for almost 40 years, and have seen huge evolution of the customer service sector,” she adds. “More customers use online selfservice for most of their queries, making the contact centre agent a person they reach to when self-service fails, or when they need to discuss an issue or as a last resort.”

She believes: “The contact centre is becoming a relationship hub for omni-channel contact, and we are starting to see a definite shift in the skills and behaviours required to handle more complex customer queries. The contact centre sector provides career progression and opportunities not seen in many other industries.” n

Helping businesses succeed and grow. @B_Egroup www.be-group.co.uk 0191 389 8434

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IN BRIEF Designs on higher standards

Hard earners

Good design is a growing factor of successful manufacturing. Design Event, set up in 2005 to showcase it, and to support designers across the Northern region, recently celebrated its 10th anniversary displaying some impressive creativity. It included David Irwin’s M Lamp, getting its UK launch and originally developed with investment from Design Event, and also 10 rugs from a handmade collection by Chris Haughton, Sanna Annukka and Oliver Jeffers.

Deadgood, which recently celebrated its 10th anniversary also, presented a selection of its furniture.

The organisation aims to encourage higher standards, and position the North of England as a ‘hotbed’ of design talent, creating opportunities for designers and the public to engage with high quality design. Design Event has a range of programmes that include the Northern Design Festival and the London Design Festival. Its talks feature leading designers. In its first decade it has welcomed more than 250,000 visitors to its festivals, worked with more than 1,450 designers, delivered 27 talks, 15 workshops, and held over 130 exhibitions and events. Also, Design Event has been working with the Royal Institute of British Architects (RIBA).

Northern law firms are among the nation’s most efficient at generating fees per fee earner, says NatWest and RBS. Firms in the North East and North West earn median fees of £155,000 per fee earner - higher than the £138,000 national average, and second only to London firms’ £201,000. The Legal 500 has again upheld the good standing of the North East’s legal services in its annual assessment. Bond Dickinson the largest firm is one of the top 40 UK law firms, and in the North East Top 200 it stands at 76. In inaugural North East law awards Ward Hadaway, which works from Newcastle, Leeds and Manchester, won three awards.

Human resources their forte NCFE qualifications body won the overall title in the CIPD North East of England Awards. NCFE is a registered educational charity. Last year alone, over 340,000 learners from more than 2,000 colleges, schools and training organisations chose NCFE as the awarding organisation to help them advance their careers. Category winners included: Esh Group, Northern Powergrid, Home Group, DB Regio Tyne & Wear Ltd, Northumbrian Water Group, TH_NK, Newcastle upon Tyne Hospitals NHS Foundation Trust, Walkers Snack Foods Ltd and Muckle LLP.

Auditors audited Choose your auditor carefully.

One in three company accounts are flawed, according to the Financial Reporting Council. It found 23% of audits it checked needed some improvements and 10% required significant changes.

Support available to spur innovation is good but could be even better, many firms feel. However, there are incentives still to be had that pass by default

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S S E N I S U B T R O P P U S

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Paul Woolston: naturally delighted

A lot of points remain

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Chancellor must dig deeper to give a powerhouse foundations Budgets and spending reviews pass like the blink of an eye.

Flashpointed by 24 hour television news and radio sound bites, their crucial effects soon get buried in our minds.

Even when we check budget supplements of next day’s papers it feels a bit much to take in – especially when new headlines are vying for our attention. Analysts say we have to study the small print. Yet often it’s only when our pocket takes a hit – or, more rarely, gets unexpectedly filled – that we fully realise the Chancellor’s effect on our businesses and regional economies. Since hope for government incentives always springs eternal, it’s always good to recap and reflect. There’s a feeling in the North East that although details of the apprenticeship levy have been worked out, and a long overdue commitment to transport and infrastructure made, a nebulous feel to projections for a Northern Powerhouse linger, more regrettably since the review came so soon after devolution deals were announced. Leigh Taylor, area director for SME banking in the North East at Lloyds Bank Commercial Banking, does suggest it’s pleasing that the Chancellor should be seen building on his commitment to create a Northern Powerhouse by continuing investment in the Local Growth Fund, and by announcing new or extended Enterprise Zones, as in Tees Valley and North East Round 2. “In areas hit by heavy industry job losses, job prospects remain scarce while in others, businesses are struggling to find the talent to support a growing need to expand,” Taylor observes.

“Awarding businesses in the region greater flexibility to invest in infrastructure, transport and skills will help redress this balance, offering regional firms more opportunities to grow the localised economy.”

Enterprise Zones Altogether 26 new or extended zones were announced in various parts of the country, effecting a doubling of EZ coverage in the Northern Powerhouse through seven new zones and two expanded, alongside handing of local powers to local people. It’s worth recalling that benefits to

businesses locating in the zones include: • business rate discount worth up to £275,000 per business over five years • generous enhanced capital allowances (tax relief) worth millions to businesses investing heavily in plant and machinery • Total retention of business rate growth for the appropriate Local Enterprise Partnership, enabling it to fund development on the zone.

The Tees Valley application for extension has three sites focused on life sciences business (especially biologics and biopharmaceuticals), digital, creative and cultural and science and innovation. The North East’s Rural bid is for a new 10 site zone with focus especially on subsea and offshore advanced manufacturing; automotive; life sciences and health; digital and technology based services, ranging along the A1 and A19 corridor. This covers Northumberland, Durham, Sunderland, Gateshead, South Tyneside and Newcastle.

The LEP’s first EZ has been offering benefits to business in offshore, renewables and automotive sectors since 2012.

It has attracted over £100m of new private investment, bringing more than 1,200 new jobs and 25 new businesses.

The second EZ now will foster four key areas of regional strength – health and life science, creative digital, automotive and subsea and offshore renewables.

North East LEP chairman Paul Woolston, is naturally “delighted” that NELEP’s second bid has succeeded, promising more “quality” jobs and winning more private investment. As Helen Golightly, North East LEP’s chief operating officer, puts it: “Enterprise Zones give us a strong offer.” The Minister for Local Growth and the Northern Powerhouse James Wharton explains that the 24 existing Enterprise Zones by the end of last year alone had attracted 19,000 jobs. Job trackers point out, however, that EZ jobs gained often have to be measured against those shed by firms simply relocating from proximate parts, shedding earlier jobs on the way.

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BUSINESS SUPPORT In association with

Apprentices The Government’s target of 3m apprenticeships is worthy but would not guarantee the success hoped for. Mark Beatson, chief economist for the CIPD, the professional body for human resources and people development, points out: “The focus must be on quality apprenticeships of level 3 and above if both young people and employers are to be assured of a quality outcome.”

But the increased funding per place should be the incentive needed for the Government to encourage, and for businesses to focus, on level 3 or above, he adds. “The levy could even prove a double-edged sword since the new charge of 0.5% of total payroll, while bringing on apprenticeships, could also squeeze out training for more experienced employees.

“We need a fundamental review of the skills policy from government, and organisations to invest more in training and skills development for the many, not just the few,” he adds.

HMRC will collect the levy via PAYE with employers receiving an allowance of £15,000. So it will only be payable on pay bills exceeding £3m. Beneath that businesses, helpfully, won’t have to pay the levy. But Paul Carbert, policy advisor for the North East Chamber of Commerce, stresses the Government must now ensure small and medium businesses have adequate support to hire and train apprentices.

“An effective implementation of the proposed digital apprenticeship voucher scheme will be crucial to the levy’s success,” he declares.

Further training Reiterating the need for skills development at all levels, Mark Beatson back at the CIPD questions whether there is enough such investment for infrastructure spending to deliver higher productivity. “We need better human capital just as much as we need housing, roads or research facilities,” he argues.

“Skills policy has largely been reduced to getting young people into university and hitting the 3m apprenticeship target. We could simply see an increase in lower level apprenticeships and more young people leaving university with uncertain prospects and large debts. We need

businesses to invest more broadly in skills development, giving more opportunity for people to learn or retrain at any point in their working life. This spending review is, at best, a modest pointer in this direction.”

Devolution Local authorities hold quarter of a trillion pounds’ worth of property assets, and can now retain receipts entirely from any sales. But in the curbs imposed on their spending they’ll see little incentive to reduce business rates.

Wealthier authorities, largely in the South, will – gaining competitive advantage.

Jeremy Blackburn, head of policy at the Royal Institution of Chartered Surveyors (RICS), thinks suspicions will grow that the Government is forcing councils to sell off public assets and raid reserves for short term gain. “Some councils will be asset rich and in regions of high demand, others won’t,” he observes.

“We need better human capital just as much as we need housing, roads or research facilities” Jonathan House, PwC’s local government leader in the North, agrees that in fundamentally changing local authority funding in an already complex system disparity between business rates the councils set could lead to smaller local authorities with business rates income too low to set competitive tax rates.

“There will still be concerns in smaller towns and rural areas, where many business rate payers are exempt, that have previously benefited from the Government’s redistribution of proceeds,” he says. Maybe, he ventures, creation of the new Enterprise Zones should help alleviate.

Meanwhile Melanie Leech, chief executive of the British Property Federation, points to lack of resources already in local authority planning departments. “Both the private and public sector have identified this as one of the biggest obstacles for development, and with the private sector willing to discuss how it might be able to plug the funding gap, it is frustrating that Government has not engaged.”

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Chris Hodgson, tax associate from accountancy practice Tait Walker, says more clarity is needed on how regional infrastructure is to be improved under devolution, so that the North East can play a full part in attempting to rebalance the UK economy.

In devolution you might expect government jobs to be hacked as severely all round, proportionately as local authority jobs are. However, in July, government jobs generally were expected to fall by more than 300,000 by 2020/21, it was a mere 80,000 by then. And except for HMRC and the Government Digital Service, there are few signs of the Government investing to deliver transformation of service.

Energy, steel, chemicals Committing at least £250m over five years to nuclear research and development, and an existing innovation programme doubled to £500m over five years to cut costs of decarbonisation and improve the nation’s energy security, sounds a big help to North East energy firms.

But recent decisions to end or reduce subsidies for onshore wind and solar imply ongoing lack of a clear government strategy or policy direction..

All well and good that energy Intensive industries such as steel and chemicals remain exempt from certain charges, such as the Renewable Obligation. But where are the measures to tackle high energy costs and the threat of shortages, even blackouts, long term? Also, given the experiences of SSI and Tata, this has been surely a classic case of government closing the stable door after the horse has bolted.

Tom Blenkinsop, Labour MP for Middlesbrough South and East Cleveland, says the Government still lacks a comprehensive strategy for steel. The industry is waiting still to receive compensation for the carbon price floor tax introduced four years ago. Meanwhile, he points out, the majority of a five point plan the steel industry put forward at an October crisis summit seems ignored.

Jeremy Blackburn at RICS feels that at least exempting steel and chemicals from the cost of environmental tariffs will help keep bills competitive across the Northern regions.

He also feels investment in a shale gas industry will be welcomed where it might create tens of thousands of jobs.

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Transport & Infrastructure While the role of Transport for the North (TfN) as a statutory body is confirmed with £30m more funding over three years, and £150m has been promised for transport in the North, nothing has been offered at this stage to redress the central problem of fairness in the allocation of infrastructure spending in the UK. Nathan Marsh, Northern infrastructure leader at business consultants EY observes: “By boosting the Department for Transport’s budget by 50%, the Chancellor has freed some capital to help address one of his biggest challenges for the Northern Powerhouse, directly financing its infrastructure, such as HS2 and Northern rail electrification. But many key projects in the North will fall under the £13bn earmarked specifically for Northern transport over this parliament, which was earlier announced in August. While clear funding for TfN will help drive plans closer to construction, it remains to be seen how the Government will raise even more capital for Northern infrastructure. More sources of finance are likely to be needed, given the plans’ ambitious scale and timeframes.

The Chancellor’s mention of the attractiveness of UK infrastructure to overseas investors could be a hint.”

Whereas the Chancellor said “we are the builders”, Marsh asks: “In the case of Northern and wider UK infrastructure, where are the builders?” Skills shortages and the capacity of the UK construction industry could be critical when delivery of this investment in infrastructure is required.

Manufacturing and retail With Business Rates reform deferred until the 2016 Budget, it’s bad luck for retailers and manufacturers who pay 23% and 17% of the burden respectively, as Simon Whiteside, tax director at EY in the North East reflects.

Innovation Finally the big I, the spark to ignite the North East economy, we’re told. David Elliott, head of tax at KPMG in Newcastle, says: “While entrepreneurs across the patch may be breathing a collective sigh of relief that the rumoured cuts to entrepreneurs’ relief didn’t come to fruition, there’s a risk replacing grants with repayable loans will be false economy, with unintended consequence of stifling innovation, rather than encouraging it. n

Where help would be welcome While manufacturers find support for UK innovation improved it could still be better, in their view. Members of the Engineering Employers Federation (EEF), interviewed on this, are of the following opinions: Half think the UK at least as good as competitor nations with R&D tax incentives, and 12% even say the UK is a world leader in this field. But 69% believe the UK “could do better” in its government support for commercialising new technology and 60% think the UK must improve business access to scientific research, while 58% say the UK lags on support for external innovation partnerships.

Now the Government is urged to continue building an innovation “ecosystem” matching its aim of making the UK Europe’s paragon of innovation. To that end, the EEF wants a real term increase in funding for science and innovation, and more funding for Innovate UK. Another side of the picture however, shown in government statistics, is that the number of claims for Research and Development (R&D) tax relief by businesses in the North East, though up 24% in a year, is still proportionately less than for other regions – with the third lowest number of claims. HMRC statistics show that although North East firms received £40m in R&D tax reliefs in the last two years it was still only 2% of the £1.7bn claimed across the UK in the same period. In the last March Budget the Chancellor announced an increase in R&D tax credits to 230%. So

(l-r) Peter Tindale, Tait Walker, Steve Caseley, Solar Capture Technologies and Alastair Wilson, Tait Walker

for each £100 of qualifying costs, corporation tax paid by small and medium size firms could be reduced by up to £46. Stuart McKinnon, Baker Tilly (RSM) tax partner in Newcastle, says: “Confidence is starting to return to the local economy. But the North East still makes significantly fewer claims than other regions. There may be some work to do at getting the message out that these tax credits are available.” Tax advisers are doing their bit. Tait Walker in Newcastle has helped North East firms grow and invest by reclaiming over £20m of R&D tax relief since 2011. Official figures show that about 20% of the region’s successful claims up to June 2015 were carried out by Tait Walker. Tax partner Alastair Wilson reveals the firm’s largest single claim generated a tax repayment of over £1m, and a total of over £2.5m has been secured for one group. The average is around £55,000. He finds businesses often don’t realise they’re eligible. “There’s a feeling that R&D only applies to factories or labs. A wide range of business activity falls into R&D tax relief criteria in fact - including IT development, offshore fabrication, manufacturing and food processing.”

Firms that have benefited include Century Composites, which manufactures market leading carbon fibre fishing rods in Washington. And, at Blyth, Solar Capture Technologies has invested its R&D claims in personnel and facilities to further research and develop renewable energy solutions. n

PROFILE ICAEW

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Don’t neglect the ‘business management’ aspects of running a business Whilst tracking business confidence in this region and the whole of UK, the ICAEW/Grant Thornton Business Confidence survey also reported throughout 2015 that getting the right management skills was proving an increasing challenge for many businesses, especially SMEs. One of the biggest challenges of owning and/ or running a business is that sense of having to do everything yourself. The day-to-day running of any successful enterprise is liable to fill your waking hours and perversely, as businesses grow, management time pressures can get worse.

But what is really important is time to work on the business not just in the business. Business owners need to find a way to ensure that the right people are doing the right jobs within the business. Because of course the busier you are, the more hectic and potentially unfocused your time may actually be spent.

This is a mistake, albeit an entirely understandable mistake.

The owner may be running everything and as such will have to wear different hats during the day to day activity. What you must avoid, however, is to neglect any one of the crucial aspects of the business, most importantly the strategic, sittingoutside-the-business element.

There are three key parts to running a business:

BUSINESS MANAGEMENT The overview of what the business is doing, steering the direction of the activities to take advantage of opportunities in a planned, not haphazard, way. This is the most critical area of business. Organisations often pay little or no attention to this due to being fully occupied with business operational activities and support. It is important to take time out regularly, I’d suggest quarterly, away from your regular place of work - and switch your mobile phone off! Take perhaps half a day to do nothing other than to reflect where you thought your business would be and compare that to where it is now and where it seems to be heading in the short term.

Is this what you expected? Is it better or worse? What needs to be done to continue on the good path or to correct the direction of travel?

How are the key business relationships – with suppliers, customers and your staff? Is it time to think about further recruitment? These are areas that should not be neglected, but so often “work” gets in the way…

You can’t afford to neglect these things, but it requires determination to get out of operational mode. Working on your business will provide rewards helping you retain focus.

BUSINESS OPERATIONAL ACTIVITIES This is the day-to-day running of the business: production, distribution, sales and servicing. Delivering goods or services to customers and clients, whilst maintaining good relationships with them and suppliers. This is likely to be top priority as it is the core of why your business was established. Clear allocation of responsibility is key, whatever the size of business. Staff must be empowered and trusted to carry out their role without time consuming micro-management.

BAS – ICAEW’S BUSINESS ADVICE SERVICE Help for these and other issues is just around the corner and at your fingertips. Just as puppies aren’t just for Christmas, Chartered Accountants are available throughout your full business year, and can provide proactive support and advice, not just year-end reports and tax returns. www.businessadviceservice.com

THE SUPPORT INFRASTRUCTURE This is the back-up support behind the customer-facing activities that enables those activities to take place efficiently.

Depending on the size of the company, this would embrace internal or externally sourced marketing,human resources, finance, IT and facilities management.If your business is small, it is very likely this work will be outsourced. In this region I believe we have an excellent range of businesses able to provide such support cost effectively. But please don’t confuse “price” with “value” when doing this!

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 146,000 chartered accountants around the world.

For information please visit www.icaew.com

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PROFILE ACCENTURE

Creating tomorrow’s skilled workforce It’s my personal belief that the North East is the best region in the country. I was born here and it is where I choose to live and work. We have stunning countryside and coastline, great cities and towns, excellent cultural programmes, and a population that has a unique determination and positive outlook. However, to make the North East stand out from the rest of the country and really progress we need to have more opportunities for our young people - and we can only do that by creating more jobs.

It is critical, therefore, that we focus on skills development and collaboration between business and education to help create the workforce of the future.

We are building on a successful platform. Our economy is growing and we have some fantastic business sectors, including the technology sector in which I’ve worked for the last 35 years.

These industries will be the foundation for growing the North East economy and will play a prominent role in creating more (and better) jobs.

However, if they are to be successful we will need to create a skilled workforce. This is our biggest challenge. We need to

make sure we are re-skilling and up-skilling those in work and providing our young people with the support, guidance and skills to make the transition from education to employment.

We have some of the best schools, colleges, universities and training providers in the country right here in the North East.

I see many employers doing fantastic things in their training programmes for their existing employees and through outreach programmes with the education system. For example, at Accenture a key part of our growth strategy is to work with education and training providers to ensure we are creating pathways into the technology sector both now and in the years ahead. Many other organisations and companies in the north east are doing something similar.

But to increase our chances of success we need to work together. We need to create a movement of programmes and activity that delivers the skilled people we need. We need to support, embrace and expand every skills initiative and create a movement which brings together employers, education and

PROFILE ACCENTURE

training providers, parents and the community as a whole.

The region’s devolution agreement signed in October last year provides the framework to push our region to new heights.

It includes a section called ‘Human Capital Development’ which aims to “create an integrated employment and skills system tailored to the specific needs of the area”. That is exactly what the region needs to make it more successful.

The agreement then goes on to say it will “actively stimulate, promote and champion initiatives that seek to strengthen and deepen partnerships between education and business to provide a focus upon economically-driven activity, such as vocational training, apprenticeships and traineeships, experience of work, and enterprise learning”.

I am fully behind this aim but it can only be achieved if the business sector is fully engaged. And this doesn’t have to wait until the devolution agreement is fully in place.

Although we have lots of businesses who already offer these kinds of opportunities to our young people, we need to do more. I would like to see more businesses in the region provide career and course advice at schools, colleges and universities.

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I would like to see them offer lectures, work experience opportunities, traineeships, apprenticeships, graduate opportunities and enterprise learning. And I would like to see more business leaders becoming school, college or university governors.

We have a once in a generation opportunity to grow the number of skilled people working in thriving north east businesses. We can successfully create the “integrated employment and skills system” outlined in the devolution agreement.

Our economy is growing and with it the demand for skilled workers. Let’s all work together to ensure we can match the supply of skilled staff to the demand that is there.

Bob Paton, Managing Director, Accenture

www.accenture.com

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IN BRIEF Before you open doors Tedco Business Support has a new start-up initiative to succeed the successful Ready for Business programme now being phased out in the North East.

The new programme across the region supports aspiring entrepreneurs. Start & Grow backing includes: one to one advice, business skills training, mentoring, access to finance support and business planning. Carole White, chief executive of Tedco Business Support, says: “The programme specifically targets people who haven’t yet launched.” Ready for Business in three years helped create 771 new businesses.

Chemistry of success After a decade of working with more than 700 firms, the Nepic regional cluster group supporting the chemicals industry has generated £2.5bn of added value to the regional economy.

The secret of innovation More than 600 entrepreneurs and other business leaders, as well as inventors, investors and advisors, have stood to gain from shared thinking and doing business during a sellout Venturefest conference in Gateshead. Hans Möller, (above) innovation director with the North East LEP and a key speaker, suggested the region could establish a hotbed of innovation by clarifying what differentiates it from the rest of the UK and building on these advantages. The LEP, he said, is working to create suitable conditions in the digital and tech economy; offshore energy and subsea engineering; automotive - particularly low-carbon vehicles - and the health and life sciences. “Part of our broader strategy,” he explained, “is to build an ‘innovation ecosystem’, promoting dialogue and collaboration.”

The North East gathering was one of nine held nationally, its backers including Innovate UK and Knowledge Transfer Network.

Plugging the gaps Northumberland has had more than its fair share of job losses through closures in mining and aluminium smelting. But ground is being made up by Arches, an asset based development company run by a mixed public-private board and wholly owned by the county council with a remit to attract investment, deliver development and implement regeneration.

Call centres growing Many call centres across the region are growing. They include Stocktonbased Scoot, which has seen a fast expansion over 12 months.

Bought out last July by American online giant Web.com, it gives businesses targeted online exposure to attract new customers.

Penshaw View Training, which delivers recruitment support for contact centres across the North East, reported an increase in recent demand.

Working towards an ideal living environment 50 years hence sounds commendably ambitious, but can we be sure all today’s problems will have been tackled too?

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BUILT T N E M N ENVIRO

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All our tomorrows: visions for city life 50 years from now are being examined in the appropriate atmosphere of Newcastle’s newly rising Science Central district

Heed everyone’s voice

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We’re all in it together, or have to be, if lifestyles are to be best planned according to everyone’s needs, wants and satisfaction They can’t say we’re not forward looking in the North East.

A vision projecting how Newcastle might develop over the next 50 years has been created, with a valid suggestion that other cities of the world could learn from it.

A report shaping the vision forewarns: • Coherent approaches that get citizens involved across entire urban areas are required, since people in cities often feel remote from policy making.

• Local government needs to find new ways to involve its entire electorate, and others holding a stake in the city’s future.

• Only long term, not project by project decision making, can properly achieve a city’s vision of the future.

• Universities and their intellectual resources are crucial to organising the process.

“Preparing claims for insurance payments, and considering wider financial pressures, may not be front of mind in the midst of a crisis.

But, unfortunately, they should be” This Newcastle City Futures 2065 report has come from Newcastle University in partnership with the Government Chief Scientist. Led by Professors Mark Tewdwr-Jones and John Goddard, the study has involved more than 100 experts and representatives from North East public, private, community and voluntary sources.

More than 100 items of evidence were abstracted from official reports and academic papers, and opinions of 2,500 members of the public were gathered at an exhibition, along with feedback from 24 public events.

On Newcastle’s future specifically, the findings advocate: • New and renewed trade and transport routes to Scandinavian cities and ports.

• New jobs in low carbon technology.

• Biomedical advances in the city’s research hospitals in line with needs of an ageing society.

• Expanding the Tyne and Wear Metro and reopening disused rail lines, as part of a totally integrated public transport system taking account of cycling and walking.

• Making citizens part of forward looking initiatives, and testing new technological developments including smart metering for energy as well as electric vehicles.

Sir Alan Wilson, chairman of the National Cities Foresight programme, thinks looking half a century ahead has been achieved ‘brilliantly’ in Newcastle. A City Futures Development Group formed to do it and is a collaboration of the universities of Newcastle and Northumbria, the city council, the North East Local Enterprise Partnership and other policy organisations.

Something of the future Newcastle is already evident in the development of Science Central under way on regenerated land opposite St James’ Park in the heart of the city. The first building there, The Core, opened in 2014 and is where collaboration takes place. People gather to share skills and knowledge, generate ideas and sketch futures. It’s a crossing point for research expertise and commercialisation; businesses can benefit there from unique access to networks raising crucial prospects of competitive gain.

Other buildings to feature in Science Central, along with homes, retail and other facilities, include: • A £58m urban sciences building housing a school of computing science for Newcastle University, also an urban observatory and decision theatre, allowing real time data from the city to be analysed and explored to better understand the interaction of the city’s energy, water, transport, waste and digital control systems.

• A centre for doctoral training in Cloud computing for Big Data, where experts can extract, re-assess and put to use practical information from vast amounts gathered by sensors, people and computer applications. Big data research projects involve multi-billion dollar industry partners Red Hat and Microsoft, and a Cloud innovation centre will enable regional businesses and the public sector to better exploit opportunities arising from Cloud computing and Big Data.

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• A centre for doctoral training in digital civics that will explore how digital technologies can best promote public participation in design and delivery of local services like education, public health and city planning.

At a time when victims of repeated flooding in Cumbria and Corbridge wonder when and how their miseries can be ended - and concerns linger in Morpeth despite £26m of flood defences - Newcastle University is using a £10m government grant at Science Central to propose further defence improvements.

The funding is part of a national £138m programme. It will be interesting to see whether three major causes of flooding – overconcreting at commercial and private property, failure to update adequately underground infrastructure going back to Victorian times, and cessation of river dredging - figure in proposals and then are acted upon…preferably before 50 years have passed. Homes on stilts where flood plains must be developed on is another consideration.

KPMG is working with businesses in the North that have been impacted by the latest flooding and has urged affected organisations, regardless of any future safeguards proposed, to prepare for action even when waters have totally receded. The firm’s forensic arm helps businesses to respond to emergencies, and formulates the insurance claims that arise.

Annette Barker, who leads KPMG’s forensic practice across the North, says: “Preparing claims for insurance payments, and considering wider financial pressures, may not be front of mind in the midst of a crisis. But, unfortunately, they should be, since some simple steps can be taken already to make the process more straightforward and successful later, when calculating the value of material damage and business interruption claims.

“Records should be kept of pre-flood budgets and plans and notes made about why certain remediation decisions were made. Setting up specific cost codes to which all flood related costs can be charged might be helpful - as

well as keeping invoices.“Understanding terms of the insurance policy regarding the wording around the calculation of the business interruption claim is worthwhile. There are often specifics around what can be claimed in relation to loss of margin.

She warns: “Starting to make a claim too early is a common pitfall. It can lead to complications from issues such as assuming machinery will be ok after drying out and being cleaned, when in fact floods often leave equipment needing total replacement.

“Another concern that should be factored into a claim is vulnerability to knock-on claims.

Sometimes those running businesses are blindsided by claims received against them from customers, for example a wholesaler blamed by a retailer for failing to supply goods, leaving empty shelves, or a hotel held to account by visitors disappointed by a cancellation.

“Cash flow impacts should also be seriously considered as early as possible. This is a particularly dreadful business period for those in sectors such as retail or hospitality to suffer closure. Inability to trade in this ‘golden quarter’ can lead to a critical drop in income at a time when costs will be high. It’s important to reforecast and consult with lenders and advisors to ensure cash flow pressures don’t prove more damaging than the flooding itself.”

Looking to the future of built environment city by city should not blind us to the practicalities of today, which also include consideration for rural areas and the need, as the Royal Geographical Society has pointed out, to ensure that growth of the big cities is not to the cost of mediumsized towns.

Also the Government’s decision to make development on green belt easier shouldn’t go unchallenged when applications against a majority of public interest come up.

Demonstrating residents of Morpeth and Ponteland have already shown that, regardless of rights or wrongs, the public must continue to have their say. n

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Offices – breaking the mould We’ve all heard about living above the shop. But can we ultimately live in the office? In a Knight Frank Global Cities Report, which draws on experiences and trends worldwide to envisage offices in the future, an Australian concept stands out. Led by its financial sector, there has been a movement away from the office desk. Known as Activitybased Working (ABW), it is a concept taking design in new directions with buildings encouraging staff retention. Will all countries eventually take this route?

Levels of ABW’s adoption vary from one city to the next. In some European cities, where the office stock contains a lot of historic buildings, internal walls sometimes can hinder ABW’s adoption.

Cutting the bond to a personal desk, on the other hand, allows firms fully embracing ABW to take a lower multiple of space compared to total staff. This doesn’t mean firms will need less office space in the future, because total workforces continue to grow, long term, in most global cities. So companies are achieving highly efficient offices.

In the first wave of ABW some firms have found that by removing cellular offices they lost a raft of unofficial meeting rooms, placing extra strain on the actual meeting rooms. So, interestingly, the next wave of ABW is now putting some barriers back in, introducing quiet areas and private booths.

The ABW concept of design encourages staff retention by providing space of outstanding standards; increasing natural light, creating staff interaction areas, huddle zones for team meetings, quiet space for report writing or confidential calls - and even homes in the office as boundaries between work and home blur.

Patrick Matheson, partner, office agency in Knight Frank’s Newcastle office, agrees the concept of living and working in the same building certainly stretches the imagination.

But when a report covers global issues, fresh thinking from other parts of the world is bound to occur.

“The uppermost finding is that ‘the office’ will mainly be a place generating staff satisfaction and interaction,” says Matheson. “How businesses view their offices has changed enormously in the past two decades when emphasis was

on cost control. Firms looked for ways to pack more desks onto floors then. Today firms are more conscious of the workplace role in controlling a far bigger business cost staff retention.

“This is transforming the perception of the office from a business expense into a place firms use to inspire and energise their staff and, above all, retain them.”

A study by Oxford Economics found that the cost of replacing a member of staff averages US$50,000, with over 80% of the cost in lost output while the new employee gets up to speed. Besides the replacement cost comes loss of value going out the door with the departing employee: factors such as training, knowledge, reputation, and client relationships. Some studies estimate the loss of an employee can equal 150% of salary.

So transforming the office into an inspiring and enjoyable workplace is now seen as a cost effective means of retaining staff. In Europe and North America, technology and media firms have been first to break the mould, bringing in free buffets, exercise areas, spiral staircases, games rooms, even sofas, into the office.

Benson gives it a go Dean Benson the entrepreneur in e-commerce seems to be taking his staff at Visualsoft along the Activity-based Working path already. His firm’s new headquarters at Stockton has breakout areas and pods enabling staff to work from wherever they choose. He gives them unlimited paid holidays, flexible worktime and free food at a breakfast station, the latter having increased productivity. Ping pong tables offer relaxation, and a living wall at the premises brings an atmosphere of greenery.

The firm, named Teesside Company of the Year in 2015, has operations also in Newcastle and London, and plans openings in Edinburgh, Leeds and Birmingham. “I love breaking barriers,” Benson says of the business he co-founded.

POSSIBLY THE COMBINED OFFICE AND HOME OF THE FUTURE

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Huddle zones for team meetings

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Quiet space for report writing or confidential calls

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Home in the office as boundaries between work and home blur

“This is transforming the perception of the office from a business expense into a place firms use to inspire and energise their staff and, above all, retain them” Around the world, naturally, huge disparities exist in how offices are occupied. These typically reflect cultural differences. The extent of those variations wasn’t widely known when globalisation was taking root. But as businesses merge and expand into global networks, and staff are switched overseas, awareness of the differences grow. Previous conventions on office occupation are being questioned. Knight Frank figures show a professional worker in a Hong Kong corporation is typically occupying 200sq ft in a cellular office, whereas his Shanghai peer

occupies 160sq ft in a cubicle. Meanwhile his Sydney equivalent occupies 120ft in open plan.

How long before firms with global networks start asking: why so much difference in office occupation by people doing much the same job?

The extent to which Activity-based Working is embraced will always vary from one company to the next. But its influence is spreading across industries and around the globe. The future office will be dominated less by the desk, more by that comfortable sofa. n

Back to life: restoring a famous landmark, Dunston Staiths, for pleasure and education

Picking up the pieces Civil engineering and construction in the North East suffered loss of work more than anywhere else in the recession. But the sector is fighting back and picking up.

Promises of a Northern Powerhouse have not so far detailed how well, or poorly, the share of public investment may be for North East builders and groundworkers when devolution comes. But they’re equipped and competent to tackle any opportunity. This was evident from recent annual Project of the Year awards presented by the Civil Engineering Contractors Association in the North East. Top award went to some remarkably advanced engineering.

It involved high tech groundwork helping Durham City to score a nationwide first in the advanced generation of renewable electricity. Rainton Construction, a firm based in the city and working on this occasion for Carillion Developments, installed a concrete channel to take a 13 metre long, 20 tonne Archimedean Screw enabling Durham City to have the first UK city centre with a hydro generation system on site to provide electricity.

The electricity will serve Freeman’s Reach, a new £27m riverside development comprising 8,000sq metres

of offices, retail and leisure accommodation. The development within sight of two World Heritage sites – the city’s cathedral and castle – will be completed during 2016.

Enviro-challenges included the provision of an effective fish pass, an otter ‘hotel’, bat cave, and nesting sites for sand martins, all within earshot of heavy city centre traffic.

Balfour Beatty was highly commended for enhancing Teesside’s famous Transporter Bridge over the Tees on behalf of Stockton and Middlesbrough Councils, and Owen Pugh of Dudley, Northumberland, for its extensive restoration of Dunston Staiths on the Tyne, on behalf of Tyne and Wear Buildings Preservation Trust.

Teesside’s Grade II architecturally listed bridge is the largest of its kind still operating in the world - and one of only three such bridges left in the UK. Dunston Staiths on the River Tyne at Gateshead, also Grade II architecturally listed, required work to make it publicly accessible again.

Two fires had made it unusable. But Owen Pugh’s partrestoration now makes it a visitor attraction, and an educational resource for schools.

Construction Alliance has been formed in the region

BUILT ENVIRONMENT In association with

comprising Northern Counties Builders Federation, the Federation of Master Builders, the National Federation of Builders and the Civil Engineering Contractors’ Association (North East). Chris Dancer, chairman of CECA (North East) is confident the North East industry can benefit from unprecedented continuity of work if it can get fully involved, and with fair consideration, under devolution and a Northern Powerhouse promised.

He says already a sustainable supply of workload and potential growth is replacing the previous ‘boom and bust’ culture that made mere survival the business target, leading to a loss of many skills from the region during the recession. A major aim in the skills rebuilding is to prove to more young women that they can find a rewarding

and satisfying career in the industry. Top five housebuilder Linden Homes is setting a pace, sponsoring the next nationwide search by the Association of Women in Property (WiP) for the industry’s most promising student.

Amy Gray, 23, from Gateshead recently joined Linden Homes North East in a graduate trainee sales and marketing position, while Caitlin Morton, also 23, from Hartlepool, joined parent company - Galliford Try Partnerships North - as a graduate development coordinator. Sara Holmes, development director with Linden Homes, says: “Our sponsorship will gives us opportunity to spotlight the UK’s best female property students and to practice what we preach by offering work placements and the support to build a career on an equal footing.” n

“The North East industry can benefit from unprecedented continuity of work if it can get fully involved”

We bought 36,000 homes for £240 million.

Then spent a further £562 million modernising them.

This marked the beginning of Gentoo’s £1 billion property investment in Sunderland.

In 2001 we spent £240 million buying homes from Sunderland City Council.

We then spent a further £562 million on an ambitious modernisation programme, helping the local economy and improving lives.

Our commitment to the city and its residents continues…

Find out more about Gentoo’s work in Sunderland at gentoogroup.com/billionpounds

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PROFILE Esh Group

Chief Executive, Brian Manning welcomes Esh Group Apprentices 2015

2015 best described as steady across construction with challenges in social housing For 2016 we’re cautiously optimistic, but it will vary across sectors. When people refer to construction and ask how the market is doing, it’s a case of how long have you got. It’s never straightforward and more so now as we have vast differences between the different sectors of construction.

We see this ever so clearly at Esh Group as we operate across a wide cross-section of construction sectors in different geographical areas.

2015 proved a very good year for housing for sale and the associated infrastructure works around it. This alongside

utilities work impacts heavily on the performance of our civil engineering division Lumsden & Carroll.

Our plant hire company Mechplant also takes advantage of this activity and has had a very good 2015. Mechplant are now into crane hire so further diversification yet again.

Development particularly in housing but also in general is picking up and our team at Esh Developments have started to dust down some of the schemes to get them ready to go.

Social housing meanwhile after a reasonable start to the year, suffered as a result of central government policies on rent and other challenges for providers. Whilst there is a national

PROFILE Esh Group

Fusion Hive, Stockton Innovation Centre

housing shortage, these differences have slowed the market during the last half of 2015. So vast variances in workload, even within the housing market itself. Our house building operation Esh Property Services has therefore had a mixed year.

For some reason fencing and landscaping via our company Deerness Lansdcaping has had a busy year in both sale and social housing sectors. Regeneration in terms of external works to existing housing estates is still alive.

In the same sector plumbing and electrical via our Bartram Walker brand has been slow again. Maybe there is just more competition in the plumbing sector but for those who remember go back to 2007 and you just could not get a plumber.

Commercial build via our Esh Build operation has been reasonably steady throughout the year and we are able to help them along by starting our new development at Bowburn to extend our HQ and build our Training Academy as part of a £3.6m development. This alongside office buildings, schools, colleges and industrial work gives them a varied workload.

Despite the ups and downs we need to future proof our business and this means up-skilling the existing workforce as well as building the workforce of tomorrow via our apprentice and graduate programmes.

We now have over 120 apprentices and look forward to our next intake in the summer of 2016. This will take us above the 150 we set out to take on, but that’s just a start, it needs to be a rolling programme. Esh Training Solutions manage this side for us. It’s so important to bed the young people in and mentor them as they make the big move into the world of work.

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Chief Executive, Brian Manning of Esh Group

“We now have over 120 apprentices and look forward to our next intake in the summer of 2016. This will take us above the 150 we set out to take on, but that’s just a start, it needs to be a rolling programme” Our work with youngsters now starts in primary schools with our Stem Kits and then leads onto our Business In the Community national award winning ‘Building My Skills’ project which in 2015 covered 74 schools and colleges and reached 8,891 students via 109 Business Partners, without whom it would not be possible. A big thank you to our Business Partners.

We really appreciate your support. The construction market may be difficult to predict but it’s full of excitement.

Esh House, Bowburn North Industrial Estate Bowburn, Durham, DH6 5PF www.eshgroup.co.uk 0191 377 4570 enquiries@eshgroup.co.uk

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IN BRIEF New landmarks under scrutiny Major new landmarks of Newcastle got the expert eye when Janet Askew, president of the Royal Town Planning Institute, visited the North East. She opened the newly landscaped and completed stretch of riverside walkway in Ouseburn.

She also visited the work of developer Carillion-igloo at its £15m eco-housing scheme The Malings, its next phase at Lower Steenberg’s Yard and the ground-breaking Malmo Quay site. She further saw work under way at Scotswood, Newcastle Great Park, and the Stephenson Quarter. In Morpeth she visited the market town’s flood alleviation scheme. Phase one of The Malings is now fully occupied.

The show home for its second phase, currently being built, is more than threequarters sold. Best place for family life on Tyneside, though? Arguably, Morton Crescent in Callerton.

That’s the outcome of a family friendliness index compiled by Barry Bridges, founder of Property Detective. He considered the quality and availability of schools, nurseries and childcare providers; crime rates; population density; green spaces and other factors. Handy for plane spotters and rugby supporters of Newcastle Falcons too – if you can put up with the rumble of the Metro!

Janet Askew with (l-r) Cllr Stephen Powers (Newcastle City Council), David Roberts (Igloo Regeneration), and Ian Cansfield (Cundall) and Alastair Haworth (Homes and Communities Agency)

Genie on the move Gentoo the Sunderland housing provider and regeneration specialist has taken its Genie home purchase scheme to the Greater London Authority to help in the sale of 2,000 new homes being built over the next decade. Genie is a 30 year home ownership scheme that was initially set up for first time buyers in the North East. It doesn’t require a mortgage or deposit.

Pressing issue A new inward investor with a potential £30m or so turnover might be hard pressed at this time to find a suitable site on which to set up in the North East, despite the ease with which Hitachi recently set up its train fabrication plant at Newton Aycliffe.

That’s the view of Kevan Carrick at JK Property Consultants.

He wants everyone who would be involved in such a search to consider it as one of the most pressing concerns at present.

Obstacles against preparing young people for the workplace are being tackled, but the needs of an experienced workforce also have to be considered

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Getting ready for work Various means are being employed to equip young people better for the workforce of tomorrow, though perhaps there is still room for growth We hear mainly of skills lacking among young people.

But really around 80% of all people no longer have the interpersonal skills needed for business life – at least, that’s the conclusion of one of the UK’s largest business call handling services. Reuben Singh, chief executive at alldayPA, finds that while almost all candidates interviewed by his organisation have technical and computer skills necessary, very few pass tests in good verbal communication, effective listening and empathy. (Oh dear, was it something I didn’t say?) For the present, however, the focus is more likely to remain on equipping young people for a career, and a notable success in this appears to be Future Business Magnates (FBM) – a scheme run by Business Durham, the economic development company for County Durham. It has been working with dozens of schools, pupils and businesses for over a decade now to bring the word ‘commerce’ to life for youngsters.

More than 30 businesses including Thorn Lighting, Dyer Engineering, Ebac, Hydram, Steelcraft, Atom Bank and Durham University supported the latest FBM competition, partnering 20 school teams and judging six challenges that make up the event. A House of Durham infographic, commissioned by Business Durham and showing many household products made locally, is the inspiration. Over eight months, pupils aged 12 and 13 work on ideas with their business mentor to get their manufacturing themed product ready for market. And prizes are awarded at the end. There’s also a FBM Plus project for post-16 learners in local colleges.

They’re being supported to set up their own companies. Simon Goon, managing director of Business Durham, says of the current endeavour: “Feedback has been phenomenal - from pupils, teachers and business mentors. The aim is to inspire the next generation of entrepreneurs by engaging directly with business leaders who have

a wealth of experience in starting and growing their own companies, and managing all the challenges.”

FBM focuses on skill sets demanded by the STEM subjects as the basis for pupils’ ideas. The most recent winner, Durham Johnston School, projected a ‘GlowFlo Eco Tap’ that glowed red when wasting water. Business Durham also supports a KickStart Weekend, organised

by Entrepreneurs Durham to assemble scores of potential young entrepreneurs from Durham University.

The knowledge gap between schools and the workplace, thankfully, is narrowing through other parts of the North East too. More than 80% of secondary schools in the region have now engaged with “an inspirational initiative” helping point students towards further education, training and a job. Since the National Careers Service began an initiative to this end, 264 schools throughout the region have been engaged, with 116 signing up to access the full range of free services provided. The latter comprise 22 across Darlington and Middlesbrough, 23 in County Durham, 10 in Gateshead and Stockton and 11 in Newcastle, nine in Hartlepool, three in North Tyneside, five in Northumberland, eight in Redcar and Cleveland, three in South Tyneside and 12 in Sunderland.

Carly Hinds, North East partnership manager for the National Careers Service, says the mission is to ensure young people are equipped with knowledge, skills and experience needed for a successful future. And Mike Parker, director of the first and only UK regional network of schools, Schools NorthEast, says: “The high proportion of teachers and careers practitioners who have embraced the initiative is testament to their desire to ensure a bright future for their students.”

This service, part of the Government’s Inspiration Carly Hinds: explains the mission

There to learn: Enthusiastic pupils on a day out showing their career potential at an FBM event in Newton Aycliffe

agenda, matches up employers willing to participate with schools and colleges. Work experience placements, mentoring face-to-face and online, and attending careers fairs all figure in it. The North East Chamber of Commerce, in partnership with the combined British Chambers, has concluded a national survey of more than 3,500 businesses and educators highlighting main benefits of links between schools and businesses. Education leaders said employer engagement clearly benefits pupils, providing better job opportunities (86%); greater awareness of soft skills that businesses value (71%); more motivation in lessons (71%); and better careers information (57%). Business leaders gave as their main reasons for partnering a school: identification of future employees (42%); demonstration of their corporate social responsibility (41%); and to increase awareness of different jobs and career paths (38%).

But both business and education leaders reported handicaps. For businesses and educators respectively, this included staff time (55%/71%) and administrative burdens (39%/14%). Businesses also cited cost (40%) while some educators identified apathy from business (57%).

Paul Carbert, NECC policy advisor, says: “Links between education and business are essential to ensure young people are ready to fill roles within the North East labour market. The gap between education and work won’t be closed unless young people spend time in workplaces

while still at school. A lot of progress has been made. But we must go on working together if significant inroads are to be made into addressing potential skills shortages in key sectors in our region.”

As lead sponsor of Castle View Enterprise Academy in Sunderland, Northumbrian Water has seen attendance levels greatly rise over four years. Esh Construction Group is opening its own apprentice academy at Bowburn which will turn out the company’s future workforces not only in the North East but also Cumbria, Yorkshire and Scotland.

Gateshead College, officially recognised as best college in the region and third best in the country, has also been praised in the latest Ofsted annual report for its standard of help for students to prepare for the world of work.

Judith Doyle, chief executive and principal of the college, says: “We can only shape young people to be work-ready employees by working with employers and making it easy for them to work with us. There’s a huge appetite from the business community to get involved. Work experience pays off - 91% of our students went into work or higher level training last year after leaving us with a qualification and those important soft skills that give them an edge in the jobs market.”

That then leaves the need to step up interpersonal skills among employees well into their working life. But that’s another consideration! n

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PROFILE Baltic Training Services

Baltic Training Services – partnering with employers to deliver excellent IT apprenticeships Baltic Training Services, a training company that understands the value of working in partnership through local and national networks to help resolve skills shortages in the North East and throughout the UK. In the past five years it has created over 2,000 apprenticeships, this year launching the pre-apprentice training programme the Dynamo North East IT Apprentice Hub – a UK first. It has also forged a close alliance with New Horizons Computer Learning Centre, the world’s largest online training provider, to deliver world class vender accredited online IT training across franchises in the North East, North West, Scotland and most recently London.

Louise Ball operations director for Baltic Training Services said: “The North East has a vibrant growing IT sector and what IT employers need is appropriately qualified young people able to hit the ground running when they secure entry to paid apprenticeship Level 3 roles in order to sustain the growth.”

Baltic focuses on finding a home for talent whether it’s helping employers identify appropriately qualified young people and vice versa, or assisting other people to retrain or redirect their careers following a period of unemployment, redundancy or through choice.

Not only has Baltic worked with Dynamo to establish an innovative approach to IT skills shortages by developing the Dynamo IT Apprentice hub, it also delivers world class online IT training through its apprenticeships including Microsoft, Cisco and CompTIA accredited professional qualifications.

At present a large part of the business is focused on IT apprenticeships in partnership with the likes of IT employer network Dynamo North East, Newcastle City Council, and a host of large and small private employers across the UK including Capgemini, Computacentre, Ricoh, Sage, Aspire Technology Solutions and many others.

Callum Flett, 18, from Newcastle is working as an IT apprentice at Sage plc, the region’s only FTSE 100 company. This major accomplishment came following his successful completion of the new 15 week IT Hub held at Newcastle City Learning Centre.

He said: “Being contained in a school curriculum was not for me and I wanted something more work experienced focused

“Not only has Baltic worked with Dynamo to establish an innovative approach to IT skills shortages by developing the Dynamo IT Apprentice hub, it also delivers world class online IT training” and immediate. Something that felt more adult and that’s when Baltic Training Services recommended I try the Dynamo North East IT Apprentice Hub in Newcastle or Sunderland.

“It provided me with work-based IT skills and an opportunity to get in front of some of the region’s best employers.”

Aspire Technology Solutions is an IT services company going through dynamic growth who’ve used Baltic Training Services extensively to deliver their IT apprenticeship programme.

Kieran Spruce, 19, from Sunderland, has been with the business over a year and is now a qualified member of the service desk team, having started as an IT apprentice in 2014.

He said: “After deciding to leave the sixth form and instead become an IT apprentice, I’ve been able to achieve industry recognised vocational qualifications, gain invaluable work experience and embark on a paid career with a great employer.

“Next, with my employers blessing and continued support from Baltic Training Services, I will be looking to sit the Windows 10 Microsoft exam.”

Baltic Training Services, yourfuture@baltictraining.com 01325 731050 www.baltictraining.com

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Apprentices or graduates?

Reaction among employers to the apprenticeship levy has been mixed with many expressing doubts about whether it will achieve its aims The apprenticeship levy devised to help young school leavers not going to university, has employers of large companies divided. Around 39% in one check have been found to favour the levy in principle, but 31% oppose and 30% are undecided, according to findings from large employers.

But 30% of organisations that responded to enquiries by the Chartered Institute of Personnel and Development (CIPD, the professional body for human resources and people development) believe apparently that almost a third of organisations will reduce their investment in other areas of workforce training and development when the levy comes in. A further 22% believe the levy may encourage employers to accredit training they would be running anyway as apprenticeship schemes. Just one in five think the levy will drive up quality of apprenticeship schemes.

Firms already invest more than £40bn a year in training.

The CIPD itself believes too many over-qualified graduates have been entering non-graduate jobs, not realising investment in higher education but instead creating an unnecessary debt burden for too many young people entering the labour market.

It has found the increasing number of graduates in the labour market has greatly outstripped the creation of high-skilled jobs, leading to negative consequences. These include employers using degrees as a requirement when recruiting for traditionally non-graduate roles, despite no resultant change to the skills needed for these jobs.

The UK has the second highest graduation rate in the OECD (54%) with only Iceland showing a greater proportion. Germany’s graduation rate is just 31% The 58.8% rate of UK of graduates in non-graduate jobs is exceeded only by Greece and Estonia. Notably Germany,

the Netherlands and Slovenia, traditionally strong in vocational training, have 10% or less of graduates in non-graduate jobs Peter Cheese, chief executive of the CIPD, says: “The situation is unsustainable, since the Government estimates 45% of graduates will not earn enough to repay their student loans. We must as a nation take stock now of whether our higher education system is delivering desired returns for graduates, for organisations, and society.

One way round the problem is being found at the AIS Group, where entrepreneur industrialist and trainer Paul Stonebanks recently augmented its training and retraining by introducing AIS Connect division on its 12 acre industrial village at North Shields. It now takes young people onto apprenticeship courses and instills in them essential skills and knowledge for their first step into engineering, manufacturing, construction, oil and gas, nuclear and the wind sector.

Given the essentials required by employers, they are then matched with companies to get on-job experience and hopefully, on their showing, a full time job eventually. A pilot scheme has resulted in 75% of the youngsters taking part already securing jobs or apprenticeships.

Heavy engineering giant WD Close, which operates on the site of the former Swan Hunter shipyard, specialises in welding and fabrication for the oil and gas sector, and is one of the backers of the programme. It took on three of the young pioneers.

Dave Bowyer, director of skills and education at AIS, says: “Every year we commercially train 17,500 people to the highest global industry standards. So we understand exactly what skills and competencies employers are looking for.” n

Be prepared: Entrepreneur Paul Stonebanks has applied his worldwide engineering experience to set up a scheme that gets young people work ready

82

TRAINING AND RECRUITMENT In association with

IN BRIEF Enter the bounty hunters A North East firm aims to end rip-off recruitment fees and mismatched candidates with its disruptive new-job hunting idea. E-commerce specialist Visualsoft through its own human resources department on Teesside has launched its Talent Hunter idea, which will reward job hunters and their friends for filling roles. To avoid high fees and often unsuitable candidates, the site empowers anyone to become a talent hunter and recommend friends and family members they believe are matched to roles. A “bounty” is awarded after three months if the candidate proves suitable. Dean Benson, chief executive of Visualsoft (which operates from Stockton, Newcastle and London) says: “We want to turn the recruitment industry on its head like Uber has transformed the taxi sector.”

Wanted desperately drivers Jobs famine in the North East and Yorkshire appears to be hitting recruitment firms. Only 20% questioned in a survey say their businesses are growing, compared

to 60% nationally. But 75% in those two areas have seen increased demand for temporary and contract workers, particularly in retail, manufacturing, construction and health care, according to Hitachi Capital Invoice Finance which published the survey. Full time, the demand for delivery drivers is intense, partly due to the growth of online shopping. James Clifford of HGVtraining.co.uk says that while the problem is even more severe during run-up to the end of year festival season, the road haulage industry still needs 60,000 new drivers to fill a mounting year-round shortage.

Beth helps build the business At 17 Beth O’Shea (above) is one of the apprentices who has helped Parkdean Holidays win the Investors in People gold standard award. Parkdean, which operates 24 holiday parks across the UK and employs 663 permanent staff and 1,678 seasonal employees, joins the top 7% of accredited organisations across the UK recognised for commitment to realising the potential of its people.

Newcastle based Parkdean took on 44 new apprentices recently. It also runs a hospitality management programme.

In 24 months, this scheme will develop and mentor six future managers.

A very Astute bit of hiring Directors at Applied Integration are confident their firm’s six apprentices can follow their footsteps and become business leaders one day.

Three of the Stokesley company’s four directors started out as apprentices, and having taken on six more apprentices recently, they’ve raised the total apprenticeships to 17% of the workforce. Director Lee Raywood, who was a multi-skilled apprentice with IMS Lycrete in the early 1990s, says the company, recently celebrating its 10th anniversary, is investing in its longterm future. It’s currently developing the automation and safety control systems for the UK’s future nuclear deterrent, four Astute class submarines for BAE Systems and the Ministry of Defence.

Your essential guide to the people shaping business, industry and the public sector

MAGAZINE

O H W S ’ WHO

In association with

84

WHO’S WHO In association with

Bill Abbott

Mark Atkinson

MANAGING DIRECTOR

CTO

Water treatment services 01429 860836 www.hydrochemgroup.co.uk 1 Graythorp Industrial Estate, Hartlepool, TS25 2DF

IT business solutions 0191 477 4951 enquiries@on-trac.co.uk www.on-trac.co.uk @on_trac Baltimore House, Baltic Business Quarter, Gateshead, Tyne & Wear, NE8 3DF

Paul Alderson

Aidan Baker

FOUNDER

DIRECTOR

Brand and design consultancy

Real estate consultants

0191 447 2727 paul@wonderstuff.co www.wonderstuff.co @_Wonderstuff_PA

0191 227 5737 aidan.baker@bnpparibas.com www.realestate.bnpparibas.co.uk @BNPParibas

1 Salters Road, Gosforth, Newcastle upon Tyne NE3 1DH

BNP Paribas Real Estate, One Trinity Gardens, Broad Chare, Newcastle upon Tyne, NE1 2HF

Shelagh Alderson

Louise Ball

HOSPITAL DIRECTOR

OPERATIONS DIRECTOR

Hospital

Training services

0191 415 1272 info@spirewashington.com www.spirewashington.com @SpireWashington

01287 731050 louise.ball@baltictraining.com www.baltictraining.com @lou_ball12

Spire Washington Hospital, Picktree Lane, Rickleton, Washington, NE38 9JZ

Baltic House, Hilton Road, Aycliffe Business Park, Newton Aycliffe, Co Durham, DL5 6EN

John Anderson, CBE

Dame Margaret Barbour

CHAIRMAN

CHAIRMAN

Business space and consultancy services 0191 516 6200 john.anderson@ne-bic.co.uk www.ne-bic.co.uk @northeastbic Wearfield, Sunderland Enterprise Park East, SR5 2TA

Manufacturer and retailer of lifestyle clothing and footwear 0191 455 4444 info@barbour.com www.barbour.com @Barbour J Barbour & Sons Ltd, Simonside, South Shields, Tyne & Wear, NE34 9PD Jason Bell

WHO’S WHO In association with

Colin Bell

Paul Booth, OBE

BUSINESS GROWTH DIRECTOR

CHAIR

Economic growth – Delivering more and better jobs for the North East

Tees Valley Local Enterprise Partnership

0191 338 7424 Colin.Bell@nelep.co.uk www.nelep.co.uk @northeastlep

01642 524 400 info@teesvalleyunlimited.gov.uk www.teesvalleyunlimited.gov.uk @TVU_LEP

1 St James Gate, Newcastle, NE1 4AD

Cavendish House, Teesdale Business Park, Stockton, TS17 6QY

Stephen Bell

Jonathan Brown

MANAGING DIRECTOR

MANAGING DIRECTOR

Construction and house-building

Wealth management

01429 234221 steve.b@gusrobinson.com www.gusrobinson.com @Steve__Bell

0191 211 1003 jonathan.brown@ubs.com www.ubs.com/northeast-uk @UBS

Stranton House, West View Road, Hartlepool, TS24 0BW

2 St James’ Gate, Newcastle upon Tyne, NE4 7JH

Jonathan Blair

Sean Bullick

MANAGING PARTNER

CHIEF EXECUTIVE

Law firm

Business improvement district company

0191 279 9219 info@bonddickinson.com www.bonddickinson.com @Bond_Dickinson

0191 235 7091 sean.bullick@newcastlene1ltd.com www.newcastlene1ltd.com @ne1BID

Bond Dickinson LLP, St. Ann’s Wharf, 112 Quayside, Newcastle upon Tyne, NE1 3DX

Suite A8, Milburn House, Dean Street, Newcastle upon Tyne, NE1 1LE

Shawn Bone

Margaret Byrne

CORPORATE FINANCE DIRECTOR

CHIEF EXECUTIVE

Corporate finance

Football club

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

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

85

WHO’S WHO

86

In association with

Paul Champion

David Coppock

GROUP CEO

REGIONAL DIRECTOR UK government

Education and training services 0191 587 4570 paul.champion@profoundservices.com www.profoundservices.com @profoundtweet 9 Fern Court, Bracken Hill Business Park, Peterlee, Co Durham, SR8 2RR

0191 497 8575 david.coppock@ukti.gsi.gov.uk www.gov.uk/ukti St George’s House, Kingsway, Team Valley, Gateshead, NE11 0NA

Rob Charlton

John Craggs

CEO

ACTING CHIEF EXECUTIVE

Architecture

Housing Association

0844 800 6660 rob.charlton@spacegroup.co.uk www.spacegroup.co.uk @wearespacegroup

0191 525 5000 john.craggs@gentoogroup.com www.gentoogroup.com @gentoogroup

Spaceworks, Benton Park Road, Newcastle upon Tyne, NE7 7LX

Emperor House, 2 Emperor Way, Doxford International Business Park, Sunderland, SR3 3XR

Nicki Clark

Sarah Cridland

CHIEF OPERATING OFFICER

MANAGING DIRECTOR

Business information, events and commercial development programmes 0191 389 8514 nicki.clark@be-group.co.uk www.be-group.co.uk @B_EGroup

Subsea umbilical systems

Spectrum 6, Spectrum Business Park, Seaham, County Durham, SR7 7TT

Nelson Road, Walker Riverside, Newcastle upon Tyne, NE6 3NL

Linda Conlon

Professor Paul Croney

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

VICE-CHANCELLOR AND CHIEF EXECUTIVE Higher education

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

0191 295 0303 SCridland@technip.com http://www.technip.com/ @TechnipGroup

01642 342002 Paul.Croney@tees.ac.uk www.tees.ac.uk Teesside University, Middlesbrough, Tees Valley, TS1 3BA

WHO’S WHO In association with

Martyn Cuthbert

Mike Dixon

MANAGING DIRECTOR

PARTNER

Enterprise app platform 0191 477 4951 hello@nutshellapps.co.uk www.nutshellapps.co.uk @nutshellapps

Executive Search and Selection 0191 500 5500 mike@dixonwalter.co.uk http://www.dixonwalter.co.uk @dixonwalter1

Nutshell Apps, Baltimore House, Baltic Business Quarter, Gateshead, Tyne & Wear, NE8 3DF

Durham and Edinburgh

Noel Dennis

Joe Docherty

ASSOCIATE DEAN Higher education

CEO OF NCG

01904 876966 n.dennis@yorksj.ac.uk www.yorksj.ac.uk/businessschool

Education and training 0191 200 4011 joe.docherty@ncgrp.co.uk www.ncgrp.co.uk @NCG_Official

York St John Business School, Lord Mayor’s Walk, York, YO31 7EX

Rye Hill Campus, Scotswood Rd, Newcastle College, NE4 7SA

John Dickson

Judith Doyle

GROUP CHAIRMAN

PRINCIPAL AND CHIEF EXECUTIVE

Construction

Education and training

0191 250 0315 enquiries@owenpugh.com www.owenpugh.com

0191 490 2200 judith.doyle@gateshead.ac.uk www.gateshead.ac.uk @gatesheadcoll

Dudley, Cramlington, Northumberland, NE23 7PR.

Gateshead College, Baltic Campus, Quarryfield Road, Baltic Business Quarter, Gateshead, NE8 3BE

Kathryn Dishman

Ken Dunbar

MANAGING DIRECTOR

CHIEF EXECUTIVE

Public relations and social media consultancy

City centre regeneration

07941 694702 kathryn@kdcommunications.co.uk www.kdcommunications.co.uk @KD_Comms KD Communications, 24 Apex Business Village, Cramlington, NE23 7BF

0191 562 3130 ken.dunbar@bidsunderland.co.uk www.experienceithere.co.uk @SunderlandBID The Software Centre, Tavistock Place, Sunderland, SR1 2BP

87

88

WHO’S WHO In association with

Rob Dunbar

Mark Eastwood

MANAGING DIRECTOR

REGIONAL DIRECTOR, NORTH EAST & CUMBRIA

Recruitment services

Corporate & Commercial Banking

0191 244 6430 rob.dunbar@gempartnership.com www.gempartnership.com @gemprem Generator Studios, Trafalgar Street, Newcastle upon Tyne, Tyne and Wear, NE1 2LA

07834 162360 mark.eastwood@santander.co.uk www.santandercb.co.uk @santanderUKBiz Level 9 Baltic Place, South Shore Road, Gateshead, NE8 3AE

David Dunn

Linda Edworthy

CHIEF EXECUTIVE

DIRECTOR OF STRATEGY & INVESTMENT

Business Support & Economic Development

Tees Valley Local Enterprise Partnership

0191 562 3351 david.dunn@sunderlandsoftwarecity.com www.sunderlandsoftwarecity.com @sunsoftcity

01642 524 400 info@teesvalleyunlimited.gov.uk www.teesvalleyunlimited.gov.uk @TVU_LEP

Sunderland Software Centre, Tavistock Place, Sunderland, SR1 1PB

Cavendish House, Teesdale Business Park, Stockton, TS17 6QY

Aidan Dunstan

Anne Elliott

EXECUTIVE DIRECTOR

CHIEF EXECUTIVE

Wealth management

Legal services

0191 211 1006 aidan.dunstan@ubs.com www.ubs.com/northeast-uk @UBS

01325 341 500 aee@latimerhinks.co.uk www.latimerhinks.co.uk @latimerhinks

2 St James’ Gate, Newcastle upon Tyne, NE4 7JH

5-8 Priestgate, Darlington, DL1 1NL

Rob Earnshaw

Phil Empson

DIRECTOR

SENIOR MANAGER, BUSINESS & PRIVATE BANK, NORTH EAST

Training and recruitment 0845 301 0041 rob.earnshaw@creativenorth.org www.creativenorth.org @Creative_North_ Arch 1, Hymers Court, Gateshead, NE8 2BA

Banking 07764 975402 philip.empson@eu.nabgroup.com www.YBonline.co.uk @yorkshirebank 46 High Street,Stockton on Tees, TS18 1SE

WHO’S WHO In association with

Leanne English

Paolo Franchi

MANAGING DIRECTOR

GENERAL MANAGER

Communications support

Hotel

0191 587 8165 leanne@lecconsultancy.co.uk www.lecconsultancy.co.uk @leanneLECC

0191 500 5001 paolo.franchi@hamptonnewcastle.com www.hamptonnewcastle.com @hbhnewcastle

Novus Business Centre, Judson Road, North West Industrial Estate, Peterlee, Durham, SR8 2QJ

Neville Street, Newcastle, Tyne and Wear, NE1 5EN

Alison Fellows

David Furniss

EXECUTIVE DIRECTOR OF COMMERCIAL DEVELOPMENT

SENIOR DIRECTOR

Local government 0191 561 1026 alison.fellows@sunderland.gov.uk www.makeitsunderland.com @MAKEitSund

Real estate consultants 0191 227 5702 david.furniss@bnpparibas.com www.realestate.bnpparibas.co.uk @BNPParibas

Sunderland City Council, Civic Centre, Burdon Road, Sunderland, SR2 7DN

BNP Paribas Real Estate, One Trinity Gardens, Broad Chare, Newcastle upon Tyne, NE1 2HF

Mark Flannery

Jayne-Anne Gadhia

DIRECTOR OF STUDENT RECRUITMENT AND MARKETING

CHIEF EXECUTIVE OFFICER

Education and training 0191 200 4870 mark.flannery@ncl-coll.ac.uk www.newcastlecollege.co.uk @NCLCollege Rye Hill Campus, Scotswood Rd, Newcastle College, NE4 7SA

Financial services 0191 285 7191 www.virginmoney.com @VirginMoney Jubilee House, Gosforth, Newcastle upon Tyne, NE3 4PL

Steven Forrest

Emma Gaudern

CHIEF EXECUTIVE OFFICER

MANAGING DIRECTOR

Solving business problems with technology 0191 500 9100 info@forfusion.com www.forfusion.com @forfusion

Private client solicitor and professional deputy/ trustee 0191 383 7425 emma.gaudern@emgsolicitors.com www.emgsolicitors.com @emgsolicitors

CBX, Cobalt Park Way, Wallsend, NE28 9NZ

The Rivergreen Centre, Aykley Heads, Durham, DH1 5TS

89

90

WHO’S WHO In association with

Ian Gilthorpe

David Grailey

SENIOR PARTNER

CHIEF EXECUTIVE

Law firm/professional services

National awarding organisation

0843 224 7901 ian.gilthorpe@squareonelaw.com www.squareonelaw.com @SquareOneLaw

07809 846 588 DavidGrailey@ncfe.org.uk www.ncfe.org.uk @NCFE

Anson House, The Fleming Business Centre, Burdon Terrace, Jesmond, NE2 3AE

Q6, Quorum Business Park, Benton Lane, Newcastle upon Tyne, NE12 8BT

Helen Golightly

Bradley Groves

CHIEF OPERATING OFFICER

CHIEF EXECUTIVE AND CHAIRMAN

Economic growth – Delivering more and better jobs for the North East

Helping businesses reduce their variable costs.

0191 338 7422 Helen.Golightly@nelep.co.uk www.nelep.co.uk @northeastlep

0191 500 5610 brad.groves@greatannualsavings.com www.greatannualsavings.com

1 St James Gate, Newcastle, NE1 4AD

Spectrum 6, Spectrum Business Park, Seaham, County Durham, SR7 7TT

Dr Simon Goon

Darren Hankey

MANAGING DIRECTOR

PRINCIPAL

Business support and economic development 03000 265 510 simon.goon@durham.gov.uk www.businessdurham.co.uk @_BusinessDurham

Further education

Business Durham, Ground Floor, Millennium Place, Durham, DH1 1WA

01429 295111 www.hartlepoolfe.ac.uk @HCFEprincipal Stockton Street, Hartlepool, TS24 7NT

Alan Gowling

Jack Hanwell

DIRECTOR - TYNE AND WEAR

MANUFACTURING SECTOR DEVELOPMENT MANAGER

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

Manufacturing supply chain development 0191 481 3480 jack.hanwell@advancedmanufacturingforum.co.uk www.advancedmanufacturingforum.co.uk One Trinity Green, Eldon Street, South Shields, NE331SA

WHO’S WHO In association with

Phil Harburn

Dr Stan Higgins

CREATIVE DIRECTOR

CHIEF EXECUTIVE OFFICER

Print and design

North East Process Industry Cluster

01325 463 171 phil.harburn@mtprint.co.uk www.mtprint.co.uk @Mt_Print

01642 442560 enquiries@nepic.co.uk www.nepic.co.uk @NEPIC_Ltd

North Park House, Whesoe Road, Darlington, DL3 0YL

The Wilton Centre, Wilton, Redcar, TS10 4RF

Andrew Haslam

John Hildreth

INSOLVENCY PARTNER

DIRECTOR

Accountants and business advisors

North East Satellite Applications Centre of Excellence 01740 525 541 John.Hildreth@Sacatapultcoe.org.uk www.sacatapultcoe.org.uk @satelliteapps

0191 285 0321 Andrew.haslam@taitwalker.co.uk www.taitwalker.co.uk @TaitWalker Bulman House, Regent Centre, Gosforth, Newcastle upon Tyne, NE3 3LS

NETPark Incubator, Thomas Wright Way, NETPark, Sedgefield, County Durham, TS21 3FD

Ishmael Herrera-Lee

Dr John Hind

MANAGING DIRECTOR

PRINCIPAL

Serviced apartments - the corporate alternative to hotel accommodation

Education

0191 490 0789 ish@propertiesunique.com www.propertiesunique.com

0191 275 1500 enquiries@dameallans.co.uk www.dameallans.co.uk @DameAllans

Properties Unique, Gear House, Saltmeadows Road, Gateshead, NE8 3AH

Fowberry Crescent, Fenham, Newcastle upon Tyne, NE4 9YJ

Colin Herron

Bryan Hoare

MANAGING DIRECTOR

MANAGING DIRECTOR

Low carbon vehicles/ automotive

Publishing

0191 490 4307 colin.herron@gateshead.ac.uk www.zerocarbonfutures.co.uk @ZCFutures Zero Carbon Futures, Future Technology Centre, Barmston Court, Nissan Way, Sunderland, SR5 3NY

0191 389 8459 bryan@bqlive.co.uk www.bqlive.co.uk @BQBryanH Spectrum 6, Spectrum Business Park, Seaham, County Durham, SR7 7TT

91

92

WHO’S WHO In association with

Tony Hobbs

Sharon Howey

MANAGING DIRECTOR

CORPORATE SALES DEVELOPMENT MANAGER

Training services

Premier league football club

01325 731050 yourfuture@baltictraining.com www.baltictraining.com @baltictraining

0844 372 1892 sharon.howey@nufc.co.uk www.nufc.co.uk

Baltic House, Hilton Road, Aycliffe Business Park, Newton Aycliffe, Co Durham, DL5 6EN

Newcastle United Football Club, St James’ Park, Newcastle upon Tyne, NE1 4ST

Peter Houlis

Tobyn Hughes

MANAGING DIRECTOR

MANAGING DIRECTOR (TRANSPORT OPERATIONS)

Network video systems and physical security solutions

Public transport delivery for neca

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

0191 20 20 747 customerservices@nexus.org.uk www.northeastca.gov.uk www.nexus.org.uk Nexus, Nexus House, 33 St James Boulevard, Newcastle, NE1 4AX

Matthew Hunt

Phil Hourigan

Matthew Hunt

DIRECTOR OF CORPORATE BANKING, NORTH EAST ENGLAND RBS (FUTURE WILLIAMS & GLYN)

PORT DIRECTOR

Business and commercial relationship banking 07771 933 656 phil.hourigan@rbs.co.uk @RBSGroup 31 Grey Street, Newcastle upon Tyne, NE1 6ES

PORT DIRECTOR

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

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

David Howell

Gary Hutchinson

DIRECTOR OF OPERATIONS

COMMERCIAL DIRECTOR

Business space and consultancy services

Football club

0191 516 6200 david.howell@ne-bic.co.uk www.ne-bic.co.uk @DavidHowell20 Wearfield, Sunderland Enterprise Park East, SR5 2TA

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

WHO’S WHO In association with

Craig Iley

Brian Lake

MANAGING DIRECTOR BUSINESS BANKING

HEAD OF BUSINESS & PRIVATE BANK, NORTH EAST

Banking 0770 100 2218 craig.iley@atombank.co.uk www.atombank.co.uk

Banking 0191 516 6200 brian.lake@eu.nabgroup.com www.YBonline.co.uk @yorkshirebank

Northumbria House, Aykley Heads, Durham, DH1 5TS

131-135 Northumberland Street, Newcastle upon Tyne, NE1 7AG

Steve Joyce

Mark Larsen

REGIONAL DIRECTOR – NORTHERN REGION

MANAGING DIRECTOR

Building services solutions 0191 258 6627 sjoyce@ses-ltd.co.uk www.ses-ltd.co.uk

Strategy, consulting, digital, technology and operations 077 6017 1123 mark.larsen@accenture.com www.accenture.com @AccentureTechUK

SES (Engineering Services) Ltd, Centre for Advanced Industry, Coble Dene, Royal Quays, North Shields, NE29 6DE

Accenture, 1 Quicksilver Way, Cobalt Business Park, North Tyneside, NE27 0QQ

Neil Kenley

Martin Lawlor

DIRECTOR OF BUSINESS INVESTMENT

CHIEF EXECUTIVE

Tees Valley Local Enterprise Partnership

Ports and harbour

01642 524 400 info@teesvalleyunlimited.gov.uk www.teesvalleyunlimited.gov.uk @TVU_LEP

+44(0)1670 352066 commercial@portofblyth.co.uk www.portofblyth.co.uk

Cavendish House, Teesdale Business Park, Stockton, TS17 6QY

South Harbour, Blyth, Northumberland, NE24 3PB

Rob Kleiser

David Laws

VICE PRINCIPAL – BUSINESS DEVELOPMENT

CHIEF EXECUTIVE

Education and training

Aviation services

0191 200 4455 rob.kleiser@ncl-coll.ac.uk www.newcastlecollege.co.uk @NCLCollege Rye Hill Campus, Scotswood Rd, Newcastle College, NE4 7SA

0191 214 3330 dlaws@newcastleinternational.co.uk www.newcastleairport.com @NCLairport Newcastle International Airport, Woolsington, Newcastle upon Tyne, NE13 8BZ

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94

WHO’S WHO In association with

Chris Lee

Zoe Lewis

MANAGING DIRECTOR

PRINCIPAL AND CHIEF EXECUTIVE

ICT & telecommunication providers

Education and training

0191 534 0140 hello@ccs.co.uk www.ccsmobile.co.uk @CCSNorthEast Comms House, Hylton Road, Sunderland, Tyne and Wear, SR4 9EN

01642 333552 za.lewis@mbro.ac.uk @mbrocollege Middlesbrough College Dock Street, Middlesbrough, TS2 1AD

Kelly Lee

Therese Liddle

MANAGING DIRECTOR

CHIEF EXECUTIVE

Business Skills

Recruitment

0191 518 6830 kelly.lee@kftraining.co.uk www.kftraining.co.uk @KFTrainingLtd

0191 232 1222 recruitment@nrgplc.com www.nrgplc.com @nrgplc

Whitehouse Point, Traynor Way, Whitehouse Business Park, Peterlee, County Durham, SR8 2RU

Lloyds Court, 56 Grey Street, Newcastle Upon Tyne, NE1 6AH

Samantha Lee

Gemma Lonsdale

MANAGING DIRECTOR

MANAGING DIRECTOR

Public Relations

Sales and marketing recruitment

0845 226 9126 01429 874 555 www.publicityseekers.co.uk @publicityseeker

0191 543 9310 gemma.lonsdale@willow-hudson.co.uk www.willow-hudson.co.uk @willow_hudson

Hub 2, The Innovation Centre, Queens Meadow Business Park, Hartlepool, TS25 5TG

St Peter’s Gate, Sunderland, SR6 0AN

Tony Lewin

Bill Lynn

PRINCIPAL

DIRECTOR

Education and training

Commercial property consultants

0191 200 4455 tony.lewin@ncl-coll.ac.uk www.newcastlecollege.co.uk @NCLCollege Rye Hill Campus, Scotswood Rd, Newcastle College, NE4 7SA

0191 338 8294 blynn@lsh.co.uk www.lsh.co.uk @LSHtweets Lambert Smith Hampton, 41-51 Grey Street, Newcastle upon Tyne, NE1 6EE

WHO’S WHO In association with

Alastair MacColl

Meenu Malhotra

CHIEF EXECUTIVE

GROUP CHAIRMAN

Business information, events and commercial development programmes 0191 389 8515 alastair.maccoll@be-group.co.uk www.be-group.co.uk @B_EGroup

Property, care & leisure 0191 233 0387 meenu@malhotragroup.co.uk www.malhotragroup.co.uk @MalhotraGroup

Spectrum 6, Spectrum Business Park, Seaham, County Durham, SR7 7TT

Malhotra House, 7-9 Groat Market, Newcastle upon Tyne, NE1 1UQ

John MacIntyre

Brian Manning

PRO VICE-CHANCELLOR

CHIEF EXECUTIVE

Higher education

Construction and property services

0191 515 3266 john.macintyre@sunderland.ac.uk www.sunderland.ac.uk @sunderlanduni

0191 377 4570 enquiries@esh.uk.com www.esh.uk.com @esh_group

Edinburgh Building, City Campus, Chester Road, Sunderland, SR1 3SD

Esh Group, Esh House, Bowburn North Industrial Estate, Bowburn, Durham, DH6 5PF

Atul Malhotra

John Marshall

OPERATIONS DIRECTOR

VICE CHAIRMAN

Property, care & leisure

Law firm

0191 233 0387 atul@malhotragroup.co.uk www.malhotragroup.co.uk @MalhotraGroup

0191 279 9381 info@bonddickinson.com www.bonddickinson.com @Bond_Dickinson

Malhotra House, 7-9 Groat Market, Newcastle upon Tyne, NE1 1UQ

Bond Dickinson LLP, St. Ann’s Wharf, 112 Quayside, Newcastle upon Tyne, NE1 3DX

Bunty Malhotra

Jamie Martin

CHIEF EXECUTIVE OFFICER

MANAGING PARTNER

Property, care & leisure

Law firm

0191 233 0387 bunty@malhotragroup.co.uk www.malhotragroup.co.uk @MalhotraGroup Malhotra House, 7-9 Groat Market, Newcastle upon Tyne, NE1 1UQ

0191 204 4341 jamie.martin@wardhadaway.com www.wardhadaway.com @wardhadaway Sandgate House, 102 Quayside, Newcastle Upon Tyne, NE1 3DX

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96

WHO’S WHO In association with

Mike Matthews

Paul McEldon

MANAGING DIRECTOR AND EUROPEAN OPERATIONS OFFICER

CHIEF EXECUTIVE

Plastic component manufacturer 01642 672299 matthewsm@nifcoeu.com www.nifcoeu.com @nifcouk

Business space and consultancy services 0191 516 6200 paul.mceldon@ne-bic.co.uk www.ne-bic.co.uk @northeastbic

Nifco House, Durham Lane, Stockton-on-Tees, TS16 0PS

Wearfield, Sunderland Enterprise Park East, SR5 2TA

John McCabe

Peter McIntyre

MANAGING DIRECTOR

CHIEF EXECUTIVE

PR and marketing agency

Development Company

01670 338391 john@roundts.co.uk www.roundts.co.uk @SolutionsRT

01670 528400 peter.mcintyre@arch-group.co.uk www.archnorthumberland.co.uk

Round Table Solutions, Blyth Workspace, Commissioners Quay, Northumberland, NE24 3AG

Ashington Workspace, Lintonville Parkway, Ashington, Northumberland, NE63 9JZ

Suzanne McCreedy

Jill McKinney

NATIONAL SERVICES DIRECTOR

TRAINING & DELIVERY MANAGER

Business information, events and commercial development programmes 0191 389 8512 Suzanne.McCreedy@be-group.co.uk www.be-group.co.uk @B_EGroup

Workplace training and professional development

Spectrum 6, Spectrum Business Park, Seaham, County Durham, SR7 7TT

Sunderland Software Centre, Tavistock Place, Sunderland, SR1 1PB

Chris McDonald

Joe McLean

CHIEF EXECUTIVE OFFICER

Open access technology centre 01642 382000 chris.mcdonald@mpiuk.com @MPI_UK

Eston Rd, Middlesbrough, TS6 6US

0191 562 3348 jill.mckinney@sunderlandsoftwarecity.com www.sunderlandsoftwarecity.com @jillssc

PARTNER

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

WHO’S WHO In association with

Nigel McMinn

Andrew Moffat CBE

MANAGING DIRECTOR – MOTOR DIVISION

CHIEF EXECUTIVE OFFICER

Multi-franchise car dealership group 0161 291 0043 www.lookers.co.uk @NigelMcMinn 776 Chester Road, Stretford, Manchester, M32 0QH

Conventional and bulk cargo, car terminals, estates, cruise & ferries, logistics 0191 455 2671 andrew.moffat@portoftyne.co.uk www.portoftyne.co.uk Port of Tyne, Maritime House, Tyne Dock, South Shields, Tyne & Wear, NE34 9PT

Ian Miller

Hans Moller

OPERATIONS DIRECTOR

BUSINESS GROWTH DIRECTOR

Recruitment services

Economic growth – Delivering more and better jobs for the North East

0191 244 6430 ian.miller@gempartnership.com www.gempartnership.com @gemprem

0191 338 7437 Hans.Moller@nelep.co.uk www.nelep.co.uk @northeastlep

Generator Studios, Trafalgar Street, Newcastle upon Tyne, Tyne and Wear, NE1 2LA

1 St James Gate, Newcastle, NE1 4AD

Maria Miller

Naomi Morrow

OPERATIONS DIRECTOR

DIGITAL CATAPULT CENTRE NORTH EAST & TEES VALLEY PROJECT MANAGER

Recruitment services 0191 244 6430 maria.miller@gempartnership.com www.gempartnership.com @gemprem

Data commercialisation 0191 562 3351 naomi.morrow@sunderlandsoftwarecity.com www.digitalcatapultcentre.org.uk/netv @DigiCatNETV

Generator Studios, Trafalgar Street, Newcastle upon Tyne, Tyne and Wear, NE1 2LA

Sunderland Software Centre, Tavistock Place, Sunderland, SR1 1PB

Anthony Mills

Heidi Mottram

DIRECTOR OF EMPLOYER ENGAGEMENT

CHIEF EXECUTIVE OFFICER

Education, training and apprenticeships

Water and wastewater treatment 0191 301 6367 heidi.mottram@nwl.co.uk www.nwl.co.uk @NorthumbrianH2O

0191 518 8285 anthony.mills@eastdurham.ac.uk www.eastdurham.ac.uk @EastDurhamCol East Durham College, Willerby Grove, Peterlee, SR8 2RN

Northumbrian Water, Boldon House, Wheatlands Way, Pity Me, Durham, DH1 1FA

97

98

WHO’S WHO In association with

Fran Mulhall

Mike O’Brien

REGIONAL OPERATIONS MANAGER

MANAGING DIRECTOR

Residential letting

Enterprise IT software & consulting

0191 284 7171 franmulhall@gfwletting.co.uk www.georgefwhite.co.uk @GeorgeFWhite

0191 276 5656 mike.obrien@opencastsoftware.com www.opencastsoftware.com @TeamOpencast

9 Kenton Park Shopping Centre, Kenton Road, Gosforth, Newcastle upon Tyne

Opencast Software Ltd, Hoults Yard, Walker Rd, Newcastle Upon Tyne, NE6 2HL

John Musham

Roger O’Brien

BUSINESS & IP CENTRE MANAGER

AMAP DIRECTOR

Helping businesses to identify and protect their IP

University

0191 277 4100 bipcnewcastle@newcastle.gov.uk @bipcnewcastle

0191 515 3888 roger.obrien@sunderland.ac.uk www.amap.sunderland.ac.uk

Business & IP Centre, City Library, Charles Avison Building, 33 New Bridge Street West, Newcastle-upon Tyne, NE1 8AX

The Industry Centre, Colima Avenue, Sunderland Enterprise Park West, Hylton Riverside, Sunderland, Tyne & Wear, SR5 3XB

Brian Nicholls

Mike O’Hara

EDITOR, BQ NORTH EAST

RELATIONSHIP DIRECTOR - HEALTHCARE

Journalism

Finance & banking for primary & social care

0191 389 8468 b.g.nicholls@btinternet.com @BrianNichollsBQ

07876 256982 michael.ohara@rbs.co.uk @RBSGroup

Spectrum 6, Spectrum Business Park, Seaham, County Durham, SR7 7TT

31 Grey Street Newcastle upon Tyne NE1 6ES

Iain Nixon

Gordon Ollivere

EXECUTIVE DIRECTOR – COMMERCIAL ACTIVITY

CHIEF EXECUTIVE

Education and training

Our services are designed to help clients innovate, improve and grow

0191 511 6000 iain.nixon@sunderlandcollege.ac.uk www.sunderlandcollege.ac.uk @sunderlandcol Bede Campus, Durham Road, Sunderland, SR3 4AH

0191 516 4400 enquiries@rtcnorth.co.uk www.rtcnorth.co.uk @RTCNorth 1 Hylton Park, Wessington Way, Sunderland, SR5 3HD

WHO’S WHO In association with

James E F Pain BSc (Hons) MRICS

Chris Petts

DIRECTOR

DIRECTOR

Commercial agents and property consultants 0191 229 9517 / 07841 871 710 james.pain@frewpain.co.uk www.frewpain.co.uk

Advisory 0191 203 7787 chris.petts@uk.gt.com www.grant-thornton.co.uk

Frew Pain & Partners, Collingwood Buildings, 38 Collingwood Street, Newcastle upon Tyne, NE1 1JF

Grant Thornton UK LLP, Earl Grey House, 75-85 Grey Street, Newcastle upon Tyne, NE1 6EF

Eddie Peat

Amy Porter

NATURAL RESOURCES DIRECTOR

SKILLS MANAGER

Property

Sector skills development and consultancy

0114 254 1212 epeat@harworthestates.co.uk www.harworthestates.co.uk AMP Technology Centre, Brunel Way, Waverley, Rotherham, S60 5WG

0191 562 3349 amy.porter@sunderlandsoftwarecity.com www.sunderlandsoftwarecity.com @AmySoftwareCity Sunderland Software Centre, Tavistock Place, Sunderland, SR1 1PB

Robyn Peat

Kev Price

MANAGING PARTNER

CHIEF EXECUTIVE

Land, property and business consultancy

The video player with social built in

01388 527966 robynpeat@georgefwhite.co.uk www.georgefwhite.co.uk @GeorgeFWhite 8 Front Street, Wolsingham, County Durham, DL13 3AA

Nigel J Perry FREng CHIEF EXECUTIVE OFFICER

Product and process development 01642 455 340 www.uk-cpi.com @ukcpi CPI Head Office, Wilton Centre, Wilton, Redcar, TS10 4RF

kev@reframed.tv http://reframed.tv @kevprice Campus North, 5 Carliol Square, Newcastle upon Tyne, NE1 6UF

Keith Proudfoot REGIONAL DIRECTOR, NORTHERN AND SCOTLAND

Chartered accountancy membership organisation 0191 300 0531 keith.proudfoot@icaew.com www.icaew.com/northern @ICAEW_KMP PO Box 417, Newcastle upon Tyne, NE3 9AS

99

100 W H O ’ S W H O In association with

Steve Railton

Louise Robinson

OFFICE MANAGING PARTNER

DIRECTOR

Audit, tax and consulting services

Marketing, public relations, social media and design

0191 255 7000 steve.railton@rsmuk.com www.rsmuk.com @RSMUK

0191 562 3134 louise@wearecreo.co.uk www.wearecreo.co.uk @wearecreo

1 St James’ Gate, Newcastle-upon-Tyne, NE1 4AD

Sunderland Software Centre, Tavistock Place, Sunderland, SR1 1PB

Lee Rankin

Ralph Saelzer

MANAGING DIRECTOR

MANAGING DIRECTOR

Recruitment services

Manufacturer of maritime cranes

0191 244 6430 lee.rankin@gempartnership.com www.gempartnership.com @gemprem

0191 514 3001 ralph.saelzer@liebherr.com www.liebherr.com

Generator Studios, Trafalgar Street, Newcastle upon Tyne, Tyne and Wear, NE1 2LA

Liebherr Sunderland Works Ltd, Ayres Quay, Deptford Terrace, Sunderland, SR4 6DD

Charles Reynard

Neil Schneider

PARTNER

CHIEF EXECUTIVE

International law firm 0191 241 6096 07920 844550 charlesreynard@eversheds.com www.eversheds.com Central Square South, Orchard Street, Newcastle upon Tyne, NE1 3XX

Local government 01642 393939 neil.schneider@stockton.gov.uk www.stockton.gov.uk @stocktoncouncil Stockton-on-Tees Borough Council, Municipal Buildings, Church Road, Stockton-on-Tees, TS18 1LD

Pat Ritchie

Jonathan Scott

CHIEF EXECUTIVE

COMMERCIAL DIRECTOR

Local authority

Power Station

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

01670 844400 Jonathan.Scott@lynemouthpower.com www.lynemouthpower.com @Lynemouth_Power Ashington, Northumberland, NE63 9NW

WHO’S WHO In association with

Elizabeth Shaw

Peter Slee

INNOVATION MANAGER

MANAGING DIRECTOR, SPARK RESPONSE CHAIRMAN SPARK ETAIL eCommerce, order fulfilment and contact centre services

SME Innovation Support 0191 516 6200 elizabeth.shaw@ne-bic.co.uk www.ne-bic.co.uk @NEBICInnovation

0191 495 9999 peter.slee@sparkresponse.com www.sparkresponse.com

Wearfield, Sunderland Enterprise Park East, SR5 2TA

Follingsby Avenue, Follingsby Park, Gateshead, NE10 8HQ

Iain Sim

Alan J Smith OBE, DL

CHIEF EXECUTIVE

CHAIRMAN

Leading provider of social housing in Redcar and Cleveland

Architecture

01642 771330 iain_sim@cchousing.org.uk @cchousingonline

0191 245 5555 ajs@redboxdesign.com www.redboxdesign.com

14 Ennis Square, Dormanstown, Redcar, TS10 5JR

Northern Design Centre, Baltic Business Quarter, Gateshead, NE8 3DF

Neil Simpson

Ian Smith

RELATIONSHIP DIRECTOR RBS (FUTURE WILLIAMS & GLYN)

STEM DIRECTOR

Commercial relationship banking 07831 145130 neil.simpson@rbs.co.uk @RBSGroup

Training for industry 01642 333718 ih.smith@mbro.ac.uk @mbrocollege

31 Grey Street, Newcastle Upon Tyne NE1 6ES

Middlesbrough College Dock Street, Middlesbrough, TS2 1AD

Amanda Skelton

Martin Soloman

CHIEF EXECUTIVE

SENIOR PARTNER

Local government

Legal

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

0191 232 8345 martin.soloman@hay-kilner.co.uk www.hay-kilner.co.uk @haykilner Merchant House, 30 Cloth Market, Newcastle upon Tyne, NE1 1EE

101

102 W H O ’ S W H O In association with

Phil Steele

Ellen Thinnesen

GENERAL MANAGER

PRINCIPAL/ CHIEF EXECUTIVE

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

Education and training 0191 511 6000 ellen.thinnesen@sunderlandcollege.ac.uk www.sunderlandcollege.ac.uk @sunderlandcol Bede Campus, Durham Road, Sunderland, SR3 4AH

Leigh Taylor

Geoff Thompson

AREA DIRECTOR NORTH EAST & YORKSHIRE SME

CEO

Commercial banking 0191 402 2093 07860 309026 Leigh.Taylor@lloydsbanking.com www.lloydsbusiness.com

Utility management 0330 303 0233 info@utilitywise.com www.utilitywise.com @utilitywiseplc

4th Floor, 102 Grey Street, Newcastle upon Tyne, NE1 61G

Utilitywise House, 3&4 Cobalt Park Way, Cobalt Business Park, North Tyneside, NE28 9EJ

Peter Taylor

Ian Thompson

AREA MANAGER

CORPORATE DIRECTOR

Direct investment in growing businesses, providing equity investment and loan finance 01642 777 888 peter@uksteelenterprise.co.uk www.uksteelenterprise.co.uk @UKSteelent The Innovation Centre, Vienna Court, Kirkleatham Business Park, Redcar, TS10 5SH

Regeneration and economic development 03000 267 331 ian_thompson@durham.gov.uk www.durham.gov.uk Durham County Council, County Hall, Durham, DH1 5UL

Caroline Theobald CBE

Jane Thompson

Professional event chair and facilitator, NED and enterprise champion

DIRECTOR OF APPRENTICESHIPS AND COMMERCIAL DEVELOPMENT

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

Education and training 0191 511 6000 jane.thompson@sunderlandcollege.ac.uk www.sunderlandcollege.ac.uk @sunderlandcol Bede Campus, Durham Road, Sunderland, SR3 4AH

WHO’S WHO In association with

Brian Thorpe

Professor Jane Turner

HEAD OF BUSINESS AND CORPORATE BANKING, NORTH EAST

PRO VICE-CHANCELLOR (ENTERPRISE & BUSINESS ENGAGEMENT)

Business and corporate banking 07775 551330 brian.thorpe@barclays.com www.barclays.com @BarCorp_News

Higher education

Barclays House, 5 St Ann’s Street, Quayside, Newcastle upon Tyne, NE1 3DX

01642 342012 Jane.Turner@tees.ac.uk www.tees.ac.uk Teesside University, Middlesbrough, Tees Valley, TS1 3BA

Sonia Tognarelli

Nicole Vanzie

INTERIM HEAD OF PAID SERVICE & DIRECTOR OF FINANCE

GENERAL MANAGER

Local government 0191 561 1112 Sonia.Tognarelli@sunderland.gov.uk www.makeitsunderland.com @MAKEitSund

Hotel 0191 519 1999 gm@hotels-sunderland.com www.hotels-sunderland.com @QHBoldon

Sunderland City Council, Civic Centre, Burdon Road, Sunderland, SR2 7DN

Witney Way, Boldon, Tyne & Wear, NE35 9PE

David Townsley

James Walker

DIRECTOR

MANAGING DIRECTOR

North East Satellite Applications Centre of Excellence 0191 389 8513 Dave.Townsley@Sacatapultcoe.org.uk www.sacatapultcoe.org.uk @satelliteapps

General construction and design and build contracting

NETPark Incubator, Thomas Wright Way, NETPark, Sedgefield, County Durham, TS21 3FD

0191 2733311 info@surgo.co.uk www.surgo.co.uk Albany Court, Monarch Road, Newcastle Business Park, Newcastle upon Tyne, NE4 7YB

Fergus Trim

Deborah Walton

MANAGING DIRECTOR

FINANCE DIRECTOR

Commercial Property

Power Station

0191 287 1149 Fergus.trim@broadoak-am.uk www.broadoak-am.uk @fergustrim The Hub, Quorum Business Park, Benton Lane, Newcastle

01670 844400 Deborah.Walton@lynemouthpower.com www.lynemouthpower.com @Lynemouth_Power Ashington, Northumberland, NE63 9NW

103

104 W H O ’ S W H O In association with

Neil Warwick

Paul Wellstead

BUSINESS DEVELOPMENT PARTNER

DEVELOPER, SPECTRUM BUSINESS PARK

Law firm/ pofessional services

Office space development

0843 224 7939 neil.warwick@squareonelaw.com www.squareonelaw.com @SquareOneLaw

paulw@hillford.co.uk www.spectrumbusinesspark.co.uk @spectrumbizpark

Anson House, The Fleming Business Centre, Burdon Terrace, Jesmond, NE2 3AE

Spectrum Business Park, Seaham, County Durham, SR7 7TT

Professor Andrew Wathey

Carole White

VICE-CHANCELLOR AND CHIEF EXECUTIVE

CHIEF EXECUTIVE

Higher education

Business support

0191 227 4002 andrew.wathey@northumbria.ac.uk www.northumbria.ac.uk @NorthumbriaUni

0191 5166105 cwhite@tedco.org www.tedco.org @tedcoltd

Sutherland Building, College Street, Newcastle upon Tyne, NE1 8ST

North East Business and Innovation Centre (BIC), Wearfield, Enterprise Park East, Sunderland, SR5 2TA

Pete Watson

Dr Lindsey Whiterod OBE

CHIEF EXECUTIVE OFFICER

CHIEF EXECUTIVE

IT services

Education and training, maritime training, founding partner of Career College North East, academy sponsorship 0191 427 3900 lindsey.whiterod@stc.ac.uk www.stc.ac.uk

0191 283 0191 pete.watson@atlascloud.co.uk www.atlascloud.co.uk @Pete_Atlascloud Atlas Cloud, 2 Collingwood Street, NE1 1JF

Westoe Campus, St George’s Avenue, South Shields, Tyne & Wear, NE34 6ET

Paul Webster

Joanne Whitfield

MANAGING DIRECTOR

FUND MANAGER

Construction company

Commercial investor

0333 101 2600 pwebster@gentootolent.co.uk Derwent House, Lakeside Court, 5th Avenue Business Park, Team Valley, Gateshead, NE11 0NL

0191 269 6967 joanne.whitfield@fwcapital.co.uk www.fwcapital.co.uk/northeast FW Capital, Clavering House, Clavering Place, Newcastle upon Tyne, NE1 3NG

WHO’S WHO In association with

Jill Williamson

Lucy Winskell OBE, DL

EXECUTIVE DIRECTOR

PRO VICE-CHANCELLOR (BUSINESS AND ENGAGEMENT)

Horse racing, event & venue hire 01740 621 925 jwilliamson@sedgefield-racecourse.co.uk www.sedgefield-racecourse.co.uk @sedgefieldrace Sedgefield Racecourse, Sedgefield, Stockton-on-Tees, TS21 2HW

Higher education 0191 243 7200 lucy.winskell@northumbria.ac.uk www.northumbria.ac.uk @NorthumbriaUni 118 Sutherland Building, College Street, Newcastle upon Tyne, NE1 8ST

Andrew Wilson

Vanessa Wood

DIRECTOR OF BUSINESS DEVELOPMENT

CENTRE MANAGER

Business information, events and commercial development programmes 0191 389 8501 andrew.wilson@be-group.co.uk www.be-group.co.uk aewilson

Business space and consultancy services

Spectrum 6, Spectrum Business Park, Seaham, County Durham, SR7 7TT

01325 526006 Vanessa.wood@businesscentraldarlington.co.uk www.businesscentraldarlington.co.uk @DarlingtonSpace Business Central, 2 Union Square, Central Park, Darlington, DL1 1GL

Peter Wilson

Geoff Woodcock

MANAGING DIRECTOR

MANAGING DIRECTOR

Education and training

Land and development

01642 333550 pj.wilson@mbro.ac.uk @mbrocollege Middlesbrough College Dock Street, Middlesbrough, TS2 1AD

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

Andrea Winders

Laura Woods

EXECUTIVE DIRECTOR OF ENTERPRISE DEVELOPMENT

DIRECTOR OF THE FORGE

Local government 0191 561 1001 andrea.winders@sunderland.gov.uk www.makeitsunderland.com @MAKEitSund Sunderland City Council, Civic Centre, Burdon Road, Sunderland, SR2 7DN

University support for business 01642 384408 L.Woods@tees.ac.uk www.tees.ac.uk/theforge The Forge, Vicarage Road, Darlington, DL1 1JW

105

106 P R O F I L E Lookers

Lookers the new name for Benfield Following the acquisition of Benfield Motor Group, the North East’s largest privately owned business, in September last year, Lookers plc group have already taken the first steps in their exciting re-branding of the North East motor retail group With former Benfield chief executive Nigel McMinn back at the helm of the award-winning group the enlarged Lookers plc group is now the second largest motor retail group in the UK, representing 31 brands across 160 dealerships, employing over 8,500 staff with a turnover of over £4 billion and selling over 200,000 cars per annum.

An extensive communication plan is in place and well underway and from March this year Benfield’s 30 dealerships and 1,600 staff will be fully integrated and rebranded as part of the Lookers plc family.

Nigel McMinn, managing director, Lookers plc, said: “Customers will begin to see the first visual signs of the name change at our dealerships early in the new year as we start changing the signage and all our other retail branding.

“We said from the outset that the culture between the two businesses was a perfect fit and we are delighted to have acquired this respected and long established family business.

Lookers and Benfield share an approach which puts customers and employees at the heart of their respected businesses and this acquisition will ensure that continues long into the future.

“We are committed to preserving and nurturing this culture as well as putting in place new initiatives, which allow Benfield to benefit from our larger scale and leverage the investments we have made. The acquisition also strengthens our relationship with a number of our key manufacturer partners and gives us a truly national footprint by adding to our presence in the North East and Yorkshire.”

The Benfield re-brand marketing plan includes digital media, outdoors, TV, radio, print and a concerted PR effort to communicate the name change.

“Lookers and Benfield both originate from family backgrounds and we have carefully designed and targeted namechange and rebrand activity to effectively ‘marry’ the two names together”

“Benfield is a strong regional brand, steeped in family values and history. It was therefore essential that our name change plan followed a phased approach to take our customers on a seamless journey to the new Lookers brand and values.

“Lookers and Benfield both originate from family backgrounds and we have carefully designed and targeted name-change and rebrand activity to effectively ‘marry’ the two names together.

“Customer feedback and response has been good and we are all very excited about the new era for Benfield under the Lookers brand.” Nigel added.

Lookers Plc

776 Chester Road, Stretford, Manchester, M32 0QH 0161 291 0043

108 W H O ’ S W H O In association with

Simon Allen

Barry Grimes

SENIOR PROJECTS MANAGER

MANAGING DIRECTOR

Business services

Toolmakers/ precision engineering

07909 907951 Simon.Allen@be-group.co.uk www.be-group.co.uk @B_Egroup

01388 816564 barrysurtec.ne@btopenworld.com www.surtecne.co.uk Unit 25, Enterprise City, Green Lane Industrial Estate, Spennymoor, Durham, DL16 6JF

Spectrum 6, Spectrum Business Park, Seaham, County Durham, SR7 7TT

Funded by Let’s Grow

David Blakey

Doug Johnson

DIRECTOR & JOINT OWNER

CHIEF TECHNICAL OFFICER

Contact centre expertise

Behavioral marketing solutions

0191 255 8797 david.blakey@echo-u.co.uk www.echo-u.co.uk

0191 500 7400 doug.johnson@salecycle.com www.salecycle.com @_dougjohnson

4th Floor, Tyne House, 26 Side, Newcastle upon Tyne, NE1 3JA

Alexander House, 1 Mandarin Road, Rainton Bridge Business Park, Houghton le Spring, DH4 5RA Funded by Let’s Grow

Funded by Let’s Grow

Richard Bradley

Sharon Lane

FINANCE DIRECTOR

GENERAL MANAGER, DIRECTOR

Engineering

Engineering

01207 234315 richard.bradley@dyer.co.uk www.dyer.co.uk

01287 650621 sharon.lane@teescomponents.co.uk www.teescomponents.co.uk @TeesComponents

Unit 3-5 Morrison Road Industrial Estate, Annfield Plain, County Durham, DH9 7RU

North Skelton, Saltburn by the Sea, Cleveland, TS12 2AP

Funded by Let’s Grow

Funded by Let’s Grow

John Cuthbert

Mark Larsen

NON EXECUTIVE DIRECTOR

MANAGING DIRECTOR

Business services john.cuthbert53@icloud.com www.be-group.co.uk @B_EGroup Spectrum 6, Spectrum Business Park, Seaham, County Durham, SR7 7TT

Strategy, consulting, digital, technology and operations 077 6017 1123 mark.larsen@accenture.com www.accenture.com @AccentureTechUK Accenture, 1 Quicksilver Way, Cobalt Business Park, North Tyneside, NE27 0QQ Funded by Let’s Grow

WHO’S WHO In association with

Ian Malcolm

David Rose

MANAGING DIRECTOR

EXECUTIVE CHAIRMAN

Manufacturer and supplier of gaskets and thermal management solutions 01642 492492 ian.malcolm@erlingkilnger.com www.erlingkilngergb.co.uk/ekgb @IanMalcolmEK

109

Manufacturing 0191 258 2233 david@fuda.co.uk Middle Engine Lane, North Shields, Tyne & Wear, NE29 8HG

Kirkleatham Business Park, Troisdorf Way, Redcar, Cleveland, TS10 5RX

Funded by Let’s Grow

Funded by Let’s Grow

Michael Morris

David Steel

BUSINESS DEVELOPMENT MANAGER

MANAGING DIRECTOR

Sub contract precision machine shop to sub-sea, oil and gas sector 0191 296 2020 michael@chirtonengineeringltd.co.uk www.chirtonengineeringltd.co.uk @chirton1

Engineering 0191 377 0555 david.steel@alteceng.co.uk www.alteceng.co.uk Bowburn North Industrial Estate, Bowburn, Durham, DH6 5PF

Unit 4A, High Flatworth, Tyne Tunnel Trading Estate, North Shields, Tyne & Wear, NE29 7SW

Funded by Let’s Grow

Funded by Let’s Grow

Gary Powner

Paul Stonebanks

MANAGING DIRECTOR

MANAGING DIRECTOR

Prototype & production tooling, low volume plastic injection moulding

Training for offshore oil, gas and wind industry 0844 800 1810 training@aisgroup.co.uk www.training.aisgroup.co.uk @ais_group

+44 (0) 1670 541 890 gary.powner@omega-plastics.co.uk www.omega-plastics.co.uk @Omega_Plastics

AIS, Unit 3 & 4 Jupiter Court, Tyne Tunnel Trading Estate, North Shields, North Tyneside, NE29 7SE

Unit 2, Coniston Court, Riverside Business Park, Blyth, Northumberland, NE24 4RP, UK

Funded by Let’s Grow

Funded by Let’s Grow

Michael Richardson

Chris Taylor

MANAGING DIRECTOR

COMMERCIAL DIRECTOR & FOUNDER

Cutting tools, engineering equipment supplier and engineering technical services 07595 60 8888 michael@advancedcuttingtools.co.uk www.advancedcuttingtools.co.uk @ACTOOLSLTD

Video marketing 0191 233 2001 chris@superkrush.com www.superkrush.com @SuperkrushFilms Jam Jar Studios, 5 Mulgrave Terrace, Gateshead, NE9 6AL

8 Apollo Court, Koppers Way, Monkton Business Park South, Hebburn, Tyne & Wear, NE31 2ES Funded by Let’s Grow

Funded by Let’s Grow

APPLY NOW A grant scheme for businesses based in the North East.

The projects we can support are those which: Involve expenditure of £200,000 or more on capital assets or R&D and, where appropriate, training costs as part of a capital investment project Haven’t yet started Will be complete by March 2017 Will create or safeguard permanent, sustainable jobs Offer good value for money in terms of value of grant per job created Make a clear case for needing grant support Have adequate private sector funding for the project Comply with State Aid regulations

For further information and to apply visit www.be-group.co.uk or call 0191 389 8434 or email letsgrow@be-group.co.uk

Many North East malls and stores are standing up well to customer cutbacks in spending, and open-air markets are a growing attraction

MAGAZINE

RETAIL

Driving together pays

Newcastle, Sunderland and Stockton are all committed to the principle of joint endeavour. How long can Middlesbrough stay out of the loop?

R E T A I L 113 www.bqlive.co.uk

Indications of a retail revival in the North East were signalled when it emerged that, of all the regions, its high streets had shown the lowest net change in the number of store closures – down 14% in the first half of 2015.

And, by run-up to Christmas, credit monitors at R3 were reporting that the proportion of regional retailers with above-normal risk of insolvency in the North East had fallen 2% since September and looked the safest prospect in England.

Figures from PwC and The Local Data Company suggested that, in H1 2015, altogether104 shops had closed on the region’s high streets - four stores a week, in effect.

But that was the lowest closure rate in four years. In the same period of the year previously 121 closed – equal to five a week. Sunderland in particular could show up well in 2016, given that the Sunderland Business Group’s recently launched partnership, formed to liven city centre streets, is already taking effect as has Newcastle’s NE1 business improvement district (BID) – and hundreds of other BIDs likewise in cities and towns around the world.

For Sunderland it would be early reward for companies from across Wearside and beyond that have signed up to the BID. Especially enthusiastic is Gary Hutchinson, commercial director of Sunderland AFC. He also chairs the group and declares: “Fantastic work is going on. By pooling resources, ideas and time we can make a serious impression. We have a vision mapping what the city can be in three, six and nine years’ time. Working as a community we can achieve everything we are capable of.”

Paul Callaghan, chairman of Sunderland City Council’s Economic Leadership Board, has been lobbying other business people to join the partnership which is already

proving an increasingly influential collective for the city whose present redevelopment, topping the £1bn mark, is already transforming its skyline.

Callaghan, says: “Through this partnership, we become players, not spectators.”

Allison Thompson of Sunderland-based Ashmore Consulting, which has guided the partnership scheme to date, expects significant change in the city over nine years. (Companies not already enrolled can get further information from mark.hodgson@ashmoreconsulting. co.uk, tel 0191 500 8585).

Sean Bullick, chief executive of NE1 in Newcastle, believes that if the Northern Powerhouse initiative can capture the spirit of inclusion that NE1 enjoys it will surely succeed.

He says predictions of doom for high streets are not being realised, certainly in Newcastle. “This,” he adds, “has confounded commentators and validated the businesses in Newcastle that have voted twice to fund the most successful BID in the UK.” Promotions like Alive after Five, luring people away from their online computer searches to enjoy instead a new early evening atmosphere around the city shops, restaurants and other entertainment venues - with lots of concessions and invitations - is one of the ploys, worth an estimated £100m of revenue a year.

A restaurant week earning £18 for every £1 spent in its

“Fantastic work is going on. By pooling resources, ideas and time we can make a serious impression”

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organisation is another. NE1’s successful push to brighten Newcastle Central Station’s retail offer as part of a £20m modernisation there is forecast to bring in another £100m a year. Newcastle’s successes are being achieved through an investment of 1% of business rates committed by 1,400 members of the BID. But all this demands a lot of effort, planning, inspiration and ingenuity, and reviving city and town centres and their high streets is harder than many may have thought, judging from the outcome of Mary Portas’s work as a government advisor on the task. Towns successful in bidding for very modest support indeed by comparison tried to brighten their high street offer with mixed success, which even Portas was not too encouraged about. Berwick simply funked its opportunity, amid buckpassing, resignations, and a fraud investigation. Andrew Marshall, responsible for the original Portas bid there, told The Journal: “Both Northumberland County Council’s disengagement and Berwick’s batty factionalism have badly let us down.” By contrast, Amble only a few miles away got £10,000 from the Mary Portas Pilot Scheme and won the coastal community honour in the Great British High Street Awards. A short bus ride by councillors and tradespeople associated with the otherwise fine town of Berwick would not come amiss even now.

Reviewing the project as a whole, retail consultant Portas feared it may take years to rectify the high street “problem” totally because, she says, too much is expected of local councils. For her, the issue involves real policy changes around rates, planning, and parking. “Central government is trying to put all the onus on councils, she said, “but they have nothing in their pots.”

Now that councils are to get proceeds from business rates matters could change, though it will be up to trading bodies to harry the local authorities with bright ideas. Few recommendations Portas made have come to fruition. High streets did report a 4.4% increase in footfall over one three day period checked out by data provider Springboard. In coastal and historic towns the increase was up to 14%. But how much of that reflected a trend and how much was due to people spending more freely?

It’s suggested malls are starting to lose out but investment in part, continues in the North East. Eldon Square in Newcastle and the Metrocentre at Gateshead are said to enjoy a “continuing momentum”. In East Durham, a £45m phase two of Dalton Park retail outlet is to open on

Stockton market

“Central government is trying to put all the onus on councils, but they have nothing in their pots”

Gary Hutchinson

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May Day 2016. In Sunderland an expansion of the Bridges shopping centre, brought under new ownership in 2014, is planned on the former Crowtree Leisure Centre site. This will include a new large store for a leading retailer. Public spaces are being improved, better parking provided, with a new hotel proposed also for the Newcastle based Cairn group. The Gates shopping centre in the heart of Durham City, which dates back to 1975, has been recommended for demolition and replacement by a multi-screen cinema, a new parade of shops and accommodation for 253 students. A marriage of retail and student accommodation is already evident at Gateshead town centre which, by next May, will have felt for three years the benefits of the Tesco inspired Trinity Square. This was supported to curb a long running bleed of retail business to the edge of town Metrocentre. Trinity Square introduced, besides a European style public square, one of the largest Tesco stores in the region, a nine screen Vue cinema, a health centre and a mixture of retail, food and leisure. Close to Gateshead Interchange for public transport users, it also has more than 700 parking spaces. At North Shields, NewRiver Retail is spending £500,000 on refurbishing Beacon Shopping Centre in the heart of town. It bought the centre in 2013 and has competition from the out of town Silverlink Shopping Park, which itself is replacing the former Travelodge Hotel there with more retail. When department stores’ revenues hiccup an emphasis is placed on food sales. In Newcastle, apex of North East retail prosperity and reputation, Fenwick felt gross sales of its outlets nationwide slip by 1.6% to £426.6m but has come steaming back. The food department at its flagship Newcastle store has undergone a massive overhaul as part of a multi-million pound spend. Customer reaction is favourable and the group retains 24th place among the North East Top 200 Companies, confirming its position as the region’s top indigenous retailer.

John Lewis nearby has raised its pizza and smoothie offers. It has upgraded its womenswear offer, also the kitchenware, audio and general electrical departments.

“It’s clearly more challenging in the North East than in some other areas of the country,” managing director Andy Street admitted on a visit to Newcastle.

But he takes into account the North East’s struggling economy, and disclosed that despite this the firm’s website performs ahead of the market in the North East for fashion. Traders in Newcastle have long benefited from

a Quayside Sunday market, and the growing presence of street markets for local farmers and continental specialists at Grey’s Monument in the city centre, combined with various free street events, has made that key location even more popular than before.

Can it be coincidence that, nearby, the 107-year-old music store JG Windows has seen fit to double the size of its premises with a £1m investment, having seen off high street chain store rivals selling cut-price CDs and DVDs? It now has 15 departments over three floors and sells among other things £30,000 pianos. Can it be coincidence that Northern Goldsmiths, also nearby, for more than 120 years, has seen fit to pile £1m into the premises.

Again, cheek by jowl with the increased activity around Grey’s Monument, the Grainger Covered Market has just celebrated its 180th anniversary looking its most attractive and most absorbing in living memory. Run by Newcastle City Council, it welcomes 200,000 shoppers a week. “It’s a jewel,” says Yvonne Young, who has just written its history (The Grainger Market, Tyne Bridge Publishing £7.50).

Middlesbrough declined to introduce a BID but may wish to reconsider if any other businesses follow the auspicious example of Charles Clinkard, the multi-award winning family footwear retailer, and move there. Charles Clinkard, which celebrated its 90th birthday last year, feels a 5,000sq m building in Cannon Park is the right location for its new £3m headquarters, having outgrown its existing business park site at nearby Eaglescliffe. The new set-up is due to open in January.

Neighbouring Stockton by contrast has formed a BID, having already won a national Best Love Your Local Market award and introduced two regular festivals good for the local economy. The town owes a lot to Lorna Jackson, a Saltburn food specialist who, besides launching a regular farmers’ market in her own town (where she runs a delicafé with her mother and stepfather) has introduced a similarly successful market at Stockton.

Plans to open a Debenhams department store in Darlington around now have been shelved, no doubt to the relief of management at the long established Binns.

The two stores would have been a short walk apart, the newcomer an extension of the Cornmill centre, where 40 of the town’s main stores already trade. The shoppers there will get by, though. The town already has more than 500 shops – over 250 of them independents you won’t find elsewhere. n

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IN BRIEF Here’s to them The drinks sector has many small businesses in the North East now.

Recently opened gin distilleries operate in Durham, Newcastle and Sunderland. Rum is being made at Alnwick - all this while commercial production of mead, which since 1962 has perpetuated the earlier craftsmanship of mediaeval monks, continues to be produced for home and foreign markets at Lindisfarne.

Drinkers preferring something longer may be delighted that Wylam Brewery, established in 2000, has come out top in a search for Britain’s best beer – with its 6.3% ABV Jakehead. Wylam is only one of many craft brewers in business within the region.

Insurance warning Only around a third of SMEs (37%) have professional indemnity insurance (PII). Not all SMEs will require it but those that do out of the remaining 3.3m of the UK’s SMEs could find themselves uninsured if their clients suffer a financial loss through negligent or poor advice. The warning comes from small business insurer Direct Line for Business.

Flying colours The Gateshead based retro football shirt maker The Old Fashioned Football Shirt Company has celebrated 25 years in business.

“Wylam Brewery, established in 2000, has come out top in a search for Britain’s best beer”

Door opens to opportunity Time-pressed folk are no longer just ordering takeaways or goods for delivery to their doorstep.

Some of the most popular services for order via an app to ‘arrive on demand’ at their doors are doctors (38%), handymen (29%), dentists (28%), cleaners (20%), animal sitters (18%) and fitness instructors (16%).

Further Barclaycard research shows buyers who order goods or services online also expect lots more in the way deliveries come. Around one in three checked out would even be happy to receive deliveries by robot.

No tips expected, after all.

The growth in the doorstep economy online has a third of retailers questioned thinking online and delivery is more important than a physical store. One in six had even turned online-only in the last 12 months.

Firms that continue to ignore the growing threat from cybercrime and internal embezzlement could find themselves losing out in other ways also

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Firms face war on two fronts Cybercrime and internal theft are a mounting threat to business success Losses due to fraud continue to rise on two fronts - and firms continuing to ignore the threat may find themselves frozen out of the procurement process.

Cybercrimes and internal embezzlement and theft are, as ever, the threats, the only difference now from previous years being that amounts involved tend to be even higher.

Punam Tiwari, senior legal counsel and data protection specialist at Gibbs S3, which is battling cybercrime, says: “We’ve now seen chief executives of major companies lose their jobs because of cyber-attacks, which should be a serious wake-up call.”

A KPMG measure of fraud cases with losses of £100,000 or more reaching the UK courts, has found the national value of fraud up 22% in the first half of 2015 compared to the same period, before, with the average value of fraud increased from £2m to £2.4m, a 21% jump.

But in the North East, six cases resulted in fraud to the value of £11.8m appearing before the Crown courts between January and June – a jump of 49% due admittedly to a single £8m case.

Sara Smith of KPMG’s forensic practice in the North East, says: “The picture in the North East is one of significant frauds on their own organisation or their customers by management figures who have exploited their positions to engage in illegal activities.”

It’s a warning for anyone who lets others handle their money, to check robustly who they are dealing with, and

for business owners to maintain controls and scrutiny over those in a position to redirect funds out of the company.

Recent court cases in the North East have included: • A financial advisor jailed after admitting 37 charges totalling £2.9m of fraud against clients over seven years • A man convicted of £465,000 of fraud at Teesside Crown Court relating to the sale of counterfeit DVDs • And, a financial director’s alleged £8m fraud against his employer.

But the really big heists come with cybercrime.

The biggest bank raid in history uncovered recently involved a theft of £650m-plus from financial institutions by the click of a mouse. Ironically, nearly 10% of UK firms don’t even know how many cyber security attacks they have had this year and 14% don’t know how they happened, according to a survey by PwC in conjunction with CIO magazine and CSO. Smaller businesses were among those affected by 2.5million incidents of cyber crime between last May and August alone, according to the Office for National Statistics. Computer viruses were inflicted, email and social media accounts hacked.

Cyber attacks continue to escalate in frequency, severity and impact. But generally prevention, detection methods and innovation are on the rise globally as forward-thinking business leaders adopt new cyber security practices availing of technologies. About 91% of organisations are estimated to have adopted a security framework,

CORPORATE SECURIT Y www.bqlive.co.uk

or combination of frameworks. Asam Malik, director in PwC’s North East cyber security team, says: “Many business leaders see cyber security as the risk that will define their generation. The most innovative of the companies are rising to the challenges, looking at new technology and seeing how they can best protect their assets and reputation to gain competitive advantage.”

Adapting traditional cyber security measures to an increasingly cloud-based world is an example of this effort. According to the report, 69% of respondents use cloud-based security services to protect sensitive data and ensure privacy and protection of consumer information. Big Data and the Internet of Things present a host of cyber challenges and opportunities.

With Big Data, often considered a cyber liability, 59% of respondents are using data-powered analytics to enhance security by shifting security away from perimeter-based defences and helping organisations to put real-time information to use in ways that create real value. As the number of internet-connected devices continues to surge, the Internet of Things will increase stakes for securing cloud-based networks. Investment intended to address these issues doubled in 2015, but only 36% of UK survey respondents have a strategy specific to the Internet of Things.

The report also shows that the number of organisations that embrace external collaboration has steadily risen with 65% of respondents in collaboration with others to improve security. The report also found 59% of organisations have bought cyber security insurance, compared with 51% last year. Around 43% of UK survey respondents reported having made a claim on their insurance. Asam Malik reveals: “We regularly see businesses across the North East that have been subject to a cyber attack. Cyber security is an issue for businesses of all sizes in our region and not just large organisations, which many people believe. Certain types of organisations, such as retailers, financial services and law firms are key targets for cyber criminals at the moment.”

Companies that fail to take cyber security seriously could pay a high price by being frozen out of procurement processes, a risk specialist has warned. Paul O’Leary, a director in KPMG’s risk consulting practice in the North

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East, says disqualification might arise to prevent future bidding for work because of the lack of importance the firms are believed to be giving to the protection of valuable client data. A multisector KPMG survey of 175 procurement managers across the UK from organisations with more than 250 employees revealed that the general consensus (70%) is that SMEs should be doing more to prevent cyber attacks and protect client data.

The vast majority (86%) of those in procurement said they would consider removing an SME supplier if they were hacked, and nearly all (94%) confirmed that cyber security standards are important when awarding contracts to SME suppliers.

“Cyber security is no longer just a technical issue,” O’Leary warns. “It has become a business critical issue for this region’s SMEs. Larger companies are already placing greater emphasis on the cyber security of their suppliers. Increasingly the onus is on SMEs to show they are tackling this issue head on. Many SMEs we talk to remain unaware they could be targeted by cyber criminals.”

Already two-thirds of procurement managers ask their suppliers to demonstrate cyber accreditations, and SMEs are increasingly being asked to self-fund their own accreditations.

O’Leary points out: “Businesses seeking some public sector contracts already must demonstrate a certain level of cyber maturity. This is increasingly becoming the norm in the private sector.

“Companies are also embedding cyber security in their supplier contracts with about half (47%) of existing contracts already stating that suppliers are contractually obliged to tell if they have been hacked.

If an SME supplier is breached and doesn’t deal with it appropriately, they could be looking at the termination of a contract.” Alan Norton, head of Intelligence at lawyers Graydon UK, says outsourced solutions can help companies capitalise on external data and analytics-based methods to detect and prevent risk.

Automated processes can offer a consistent approach to risk management and help prevent fraud losses. A mounting skills shortage in cyber security also makes it essential that everyone involved in a business should be encouraged to learn and apply defence strategies. n

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IN BRIEF Fighting the scourge Here’s what some fraud fighting experts advise: • Train employees to detect early signs of fraud.

• Share information about dishonest business partners with your network.

• Keep in mind that Companies House stores public files, but has no investigatory authority.

• Be careful who you pass cheques to since vital personal information can be gleaned from them.

• Verify information supplied in any credit application form, using the company trade references.

• Use credit rather than debit cards to avoid liability.

• Be wary of Hotmail, Yahoo, Google email addresses, and be cautious towards non-geographical phone numbers.

• Employ a credit monitoring service.

• Use Google Earth to ensure an address is not a virtual office.

• Consider biometric technologies that can now greatly reduce many fraud patterns.

• Check the VAT number, VIES website is a mere click away.

• Refer to the WHO IS website to discover when a particular website was registered.

• Beware of large orders being delivered to a residential address.

Setting a standard Law firm Ward Hadaway has been awarded an official seal of approval for the way it keeps clients’ valuable data and information secure. The firm has been awarded ISO 27001 certification for information security management

by BSI, the business standards company for all three of its offices - Newcastle, Leeds and Manchester. ISO 27001 is an internationally recognised best practice framework for an information security management system.

What types of fraud are most common?

Application fraud: Scammers file dubious documents at Companies House, aiming to improve their credit rating and extend their line of credit. Protection against this type of scam comes down to how well they know their customer, and the amount of due diligence performed beforehand.

Impersonation fraud: Using another person’s identity, real or fictitious, to obtain goods.

Long firm fraud: Scammers set up a business, and develop a good reputation and payment behaviour, intending to commit fraud at a later stage.

Out of town opportunity Rural Growth Network (RGN) Fund, launched in 2012, has been testing ways of overcoming barriers to economic growth in rural areas and has helped around 200 businesses.

The Chancellor can’t please everyone of course, but owners of small businesses at least may feel there is reason to smile in the new year

MAGAZINE

SMALL S S E N I S BU

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Quids in from the start

Concessions from the Chancellor give SMEs reasons to be optimistic It looks no bad start to the year for small and medium size businesses. Many won’t have to pay an apprenticeship levy and support – and though somewhat sketchy as yet, help will be available to those needing it.

Also, small businesses should benefit from personalised digital tax accounts, which remove the need for annual tax returns. Both concessions came with the Chancellor’s spending review in November.

Let’s not get carried away though. David Elliott, head of tax at KPMG in Newcastle, holds that while the Chancellor evidently wants a supportive ecosystem for the UK’s SMEs, they will have been hard pressed to find something really celebratory from him.

Antony Hall, partner and head of commercial at Mincoffs Solicitors in Newcastle, says that while cities and towns of the North East stand to benefit from a newly created £400m Northern Powerhouse investment fund (established

“We’re seeing the North East reflect a national trend”

SMALL BUSINESS In association with

to help small businesses grow) the fund, shared as it is, makes it imperative the North East voice in the Northern Powerhouse chorus is heard distinctly - to secure a fair share of investment.

The Federation of Small Business (FSB), which claims to be the UK’s largest business body in terms of membership numbers, says that across the North East small businesses contribute £25bn to the economy and employ around 350,000 people.

While the Entrepreneurs’ Forum, the dynamo that drives onward the endeavours of self-starters, welcomes recent figures showing more businesses employing people in the North East, it wants still more done in support for start-ups and growing firms of the region.

Whereas, in the region, an increase shows in the number of businesses that employ people (37,900 to 38,900), there appears to be a fall in the overall number of private businesses active. But long-term growth does show up in the number of private sector businesses in the North East from 123,700 in 2010 to 135,500 in 2015.

Nigel Mills, chairman of the forum, suggests: “While the headline figure of fewer businesses altogether in the region is disappointing, the broader news is better – a strong increase in the number of employing businesses. It’s particularly pleasing this upward trajectory is both a short and long-term trend.

“But the situation as a whole warns us more must be done to support small businesses and help them to grow into the employers of the future. We need more businesses employing more people.”

He calculates that presently, albeit the North East has 629 private businesses per 10,000 head of population (compared with 306 last year), that’s still 399 short of national average. “So we still lag,” he observes. “We are seeing the North East reflect a national trend whereby people have started their own enterprise, but then reverted to the security of direct employment, without moving to the next level as an SME.” The challenge, as he sees it, is to support such new businesses - get them to the point where they can start

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to employ people. A textbook example of a paragon is possibly David Kerfoot of Northallerton, who was guest speaker at FSB’s recent North East awards event.

With an initial investment of £300, he co-founded the Kerfoot Group with his wife Elizabeth in the back bedroom of their home in 1980. Now, 35 years on, it’s the UK’s leading provider of oils to the food, technical and personal care industries, employing 113 people and turning over some £74m.

Mills makes the point further. “We know all net job growth comes from businesses less than five years old. In the North East, we continue to see entrepreneurs strive to support their peers and start-ups - as part of a wider regional environment that backs enterprise - through a mix of public, private and academic-led programmes.

“Support is there, then, to help start-ups thrive, rather than fall by the wayside. But more must be done to raise awareness of help existing. Assistance such as a new innovation unit from the North East LEP, and funds available through Tees Valley Unlimited (the Tees Valley LEP) are vital in reversing a trend otherwise hastening the potential detriment of future job creation.”

While there are now 5.4m businesses in the UK, a high proportion don’t employ. Analysis of figures from the Office of National Statistics indicates it doesn’t necessarily pay for the UK’s smallest firms to do so.

Nationally, SMEs now account for 15.6m jobs, up from 15.2m, and historical trends indicate they’re likely to create 65% of jobs over the next decade. Their collective turnover of £1,75m generates 47.2% of private sector turnover.

Previously it was 46.8% suggesting SMEs have indeed

“More must be done to support small businesses and help them to grow into the employers of the future.

We need more businesses employing more people”

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“The North East’s SMEs are demonstrating they have financial flexibility to weather leaner periods and now have the appetite to grow” been driving UK wealth creation over the last year.

But the number of unregistered businesses without any employees has risen to over 3m, making up around 56% of the business population. This, analysts point out, is an issue for the UK economy as non-employers are, over all, less productive than employers – their turnover per person being £53,000 against an SME employer figure of £135,900. Conversely, though, turnover per head of a VAT registered non-employer was £118,000 compared to £108,000 for businesses with micro-employers (those with fewer than 10 employees). On the cost front, Yorkshire Bank has uncovered good news. The impact of rising costs is doing little to dampen growth aspirations of SMES in the North East. Its checks among 750 SME decision makers indicate that while a few of the businesses are experiencing rising costs, the majority are rolling out expansion plans as faith in the UK economy grows. More than two-thirds (67%) of the North East SMEs, in fact, said their costs had risen in 12 months. Perception of rising costs is most notable in the manufacturing, food and drink, hospitality and legal sectors, with raw materials, staff salaries and utility and energy costs creating most concern. This pressure could rise with the introduction of a ‘living wage’ – an increase in the national minimum wage for workers over 25. This jump from £6.80 to £7.20 an hour takes effect from April and by 2020 will rise to £9 an hour. Despite the implications, 79% of the smaller businesses interviewed expected to invest in their business during 2016 with new equipment, premises and staff the priorities. Almost half believe their turnover will grow by an average of 12% in the year ahead. Fewer than one in 10 feel sales will dip. Simon Wright, regional director for business and private banking at Yorkshire Bank in the North East, concludes: “The North East’s SMEs are demonstrating they have financial flexibility to weather leaner periods and now have the appetite to grow.” n

All in line for easier guidance Small businesses everywhere in the UK stand to gain from a new branding and digital investment carried out by the FSB, making it easier to see what the organisation has to offer, while streamlining access to its membership services, joining processes, and campaign activity. The offer indeed is considerable.

FSB believes it is the only membership organisation to offer its members comprehensive tax protection, business legal protection insurance as well as employment law guidance, health and safety advice, healthcare advice and a no obligation, free financial health check. Members also gain exclusive access to specially negotiated products and services helpful in growing their businesses, and have an option to take advantage of diverse networking groups across the country. In increasingly digitising its library of small business advice it is also becoming more active on social media. All this is besides the government lobbying service it stridently performs.

Director David Miles says: “We’ve been building trust and credibility for more than 40 years, and our existing members value our services. But we needed to get better at getting the message out, especially as there are now more businesses than ever starting up. Our website is our shop window. I’m confident the latest investment in it will help great numbers of businesses to see the value of what we offer.”

There are 4,000 FSB members in the North East, and Lynne Hammond, North East regional secretary, affirms: “Our membership is a perfect microcosm of the North East business community with members from every sector and every community.”

“We’ve been building trust and credibility for more than 40 years, and our existing members value our services”

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They’re all sitting comfortably Furniture design firm Deadgood, set up in Newcastle and London by Northumbria University 3D graduates Dan Ziglam and Elliot Brook, has been named Furniture Manufacturer of the Year.

The rural company of Simply Bows and Chair Covers, founded by Sarah Pittendrigh (pictured) has won her a title of UK top businesswoman of the year.

Jayne Dolder, founder and creative director of Bazaar Group which manufactures bean bags at Cramlington, won two awards in the North East Women Entrepreneur of the Year Awards; the Susan Dobson Award for entrepreneurship and the Best Creative category.

And Sanae Aljabory, who has a retro sweet shop in Darlington, was named top North East entrant in inaugural British Takeaway Awards.

Two companies in Lanchester Group, Lanchester Wines and Greencroft Bottling are in the Real Business Hot 100. Other small businesses excelling recently include Iam-Sold online estate auction agency (Newcastle), Andrew James, kitchen appliance manufacturer (Seaham) and PiA Distribution (Thornaby) mobile phone accessories distributor, which are all into the UK’s Fast Track 100 Table.

Andrew James was also named North East Company of the Year.

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Unique BIC spaces in three locations Having helped to create over 7,000 jobs across the region from its base in Sunderland, the North East Business and Innovation Centre (BIC) has expanded its property portfolio into Darlington and Washington.

The BIC’s 14 acre site is situated on the banks of the River Wear and includes a range of flexible office, laboratory and industrial space to let alongside superb meeting and conference facilities. In 2015 the BIC expanded with new centres in Darlington and Washington, director of operations at the BIC, David Howell said: “The BIC has grown in line with the needs of the region and I am pleased to announce we can now offer more locations as part of our BIC Space portfolio. We are delighted to be in three locations enabling us to build upon our 21 years track record of nurturing businesses, bringing the unique BIC approach to a wider business audience.

“We are thrilled BIC Space is managing Business Central Darlington and The Hub Washington.

“We offer a dynamic, focused approach that aims to provide businesses with appropriate accommodation for whatever their stage of growth. Our flexible contracts allow our tenants to choose a timeframe which suits them best.

“Our space is finished to the highest standard and in addition our luxurious Open Space facility is available at all three locations, the perfect solution for those who don’t require a permanent space.

“All sites are ideally located with excellent access to road networks and public transport, not to mention the BIC has over 700 free car parking spaces.

“The only organisation of its kind in the region, the BIC is a bustling business community offering support to businesses and with great facilities across three locations offering the ideal place for businesses to call home.”

For more information on any of the locations managed by the BIC, contact the Space team on 0191 516 6066.

Building Business Success across the North East

SUNDERLAND

North East Business & Innovation Centre

DARLINGTON

WASHINGTON Award winning space North East Business & Innovation Centre

Modern meeting rooms

Flexible terms

www.ne-bic.co.uk Call 0191 516 6066

Email space@ne-bic.co.uk

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IN BRIEF Key money saving suggestions for start-ups

We have ignition

REDUCE WASTE: Cut down on the amount you’re printing. Ask yourself each time you’re about to print “do I actually need to print this or is there another way?” And if you have to print something, what do you do with the print-out once you’re finished with it? Try putting it in a bulldog clip and using it as scrap/ note paper. PS – if you run out of printer ink, don’t buy a new cartridge. Simply get it refilled at a quarter of the price.

KEEP ON TOP OF YOUR SPENDING: Review your small business bank statements every month. Are there expenses coming out that you don’t know about or have simply forgotten?

PIGGYBACK YOUR ADVERTISING: If you’re sending out invoices or other communications to customers without mentioning other products, services and offers you’re missing an opportunity. Similarly, make sure you have an offer in your email signature, or perhaps use the title of your latest compelling blog post in your signature.

BUY USED COMPUTER EQUIPMENT: Purchase from a reputable source and it will be perfectly secure and come with a warranty. PS – why not buy good second hand office furniture too?

CHOOSE YOUR MEETINGS WISELY: Meetings take time and time is money.

Keep them to a miminum.

MINIMISE LATE PAYMENTS: Have a strict plan for late payments. Include a late payment charge and an option for ceasing services for serious arrears. Ensure all customers are sent the revisions at least a month before they come into play.

Send friendly email reminders if necessary just before payments fall due.

USE PERSONNEL INTELLIGENTLY: Have everyone be a brand champion, on the lookout constantly for opportunities. Outsource where it’s cheaper with no loss of quality to do so. Could you train up someone fresh from college?

Supplied by Business Hands, a London micro-marketing agency: www.businesshands.co.uk

NatWest is opening 10 Entrepreneurial Spark free business accelerator hubs in its premises across the country, having gathered from a monitor that 46% of people would prefer to be selfemployed, although fewer than 5% had done anything about it.

Head start Sunderland had a greater proportion of surviving 2011 startups reaching a £1m turnover by 2014 than any other selected main area of England, say the Bureau of Growth Service and the Enterprise Research Centre. The same city had the highest proportion of fast growing businesses in the North East during 2011-2014, delivering jobs and wealth.

To the point: A management buyout at Gateshead has kept Europe’s biggest luxury pen retailer, The Pen Shop, in business and saved nearly 150 jobs.

The North East’s employment figures would look much better than they do if more people would turn to IT for a career

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IT AND S M O C E TEL

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Unemployment stats hardly state a true picture when a key industry is starved of staff

Plenty jobs but who will fill them?

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More than 32,000 people work in the North East’s IT sector now, and the number grows steadily. Success brings its problems, however, with something like 2,000 vacancies there and no suitable candidates to fill them apparently. It gives the North East’s comparatively high unemployment rate a different perspective. We now have, we’re told, a higher proportion of the region’s workforce occupied in technology, IT and digital, than in any other sector. Yet one of the biggest challenges lies in convincing more young people - and particularly women - of the sector’s career opportunities. Across all Britain only one in 10 IT directors are women, and a mere 17% of the 1.18m IT specialists working in the UK (in 2014) are women - compared with 47% for the workforce as a whole. The figures (again based on a 2014 assessment) come from BCS - the Chartered Institute for IT - and the Tech Partnership.

Gillian Arnold, who chairs BCSWomen, says: “Female representation in IT professions has changed little in 10 years despite significant growth in the number of women working in IT roles. This is not sustainable if the UK is to remain competitive in this field and fill its looming skills gap.

Employers are missing out on half the talent available.”

Female representation in IT presently ranges from 33% of employees working as web design and development professionals to the less than 10% working as IT directors.

Among programmers and software developers (the largest group of IT specialists) only around 13% are women. Karen Price at the Tech Partnership says: “Girls’ disaffection with technology starts at school. Last year just 8% of computing A levels went to female candidates. Real progress will require concerted action towards a common goal by government, industry and education.”

A clear disincentive for any college leaver will arise if she discovers that despite achievable gross weekly earnings of £650 a week, female IT specialists may earn only 84% of the rate males get. The difference between the sexes is greatest among ‘professional’ level IT positions. Wage levels for both female and male in the North East have also been called into question with a suggestion from professional resourcing specialist Experis that IT employees in Newcastle earn an average £33,770 compared with £35,127 in Brighton, £36,212 in Birmingham and £52,982 in London. Further statistics suggest the females are not prepared to create an IT business. Just under 20,000 female IT specialists were self-employed at the time of the survey – proportionately much less than either male IT specialists or

UK workers as a whole. Two North East firms that do show closer parity of female and male employees are Scott Logic, a Newcastle based software developer, and Leighton, a digital, creative and technical services group at Houghton le Spring. Any firm prepared to increase its intake of women might usefully study the approaches of these two firms.

Working hard to fill the skills gap - with men or women - is Dynamo, an industry led sectoral network set up in the North East in 2013 by Charlie Hoult and Bob Paton.

Hoult, the chairman, has numerous tech interests including Opencast Software, Futureheads and Tomorrow People. He runs Hoults Yard, the Newcastle media village. Ashingtonborn Bob Paton is managing director of Accenture Delivery Centre on North Tyneside. Dynamo’s many aspirations include not only encouraging applications for existing vacancies but also creating 900 more jobs for the sector, 200 of them through apprenticeships, in 30 spinout firms.

Immediately Dynamo became a concept Dr Alastair Irons, professor of computer science at University of Sunderland, saw opportunities for the university and the North East’s IT network to work together, understandably given that Dynamo also envisages a £95m educational led Northern Institute for Technology and Business Exchange (NIT), modelled on America’s renowned Massachusetts Institute of Technology. This would aim to establish the North East as lead UK region for software, digital and information technology. Dynamo’s successes to date meanwhile have included bidding and winning a tender to create a university technical college in Newcastle; setting up an apprentice hub; introducing SME tech firms to HMRC’s government digital service; and helping Newcastle Gateshead Initiative with inward investment projects for the region. Countering the skills shortage that’s impeding many IT businesses throughout the region, Dynamo held recently ‘A Get Into IT’ career day, drawing 100 over-13s to the session at University of Sunderland. Parents, teachers and career advisors were also invited. Apart from helping to fill existing vacancies, Dynamo wants to see more SMEs take on IT apprentices. It also focuses on the need to attract more women entrants, particularly through Accenture which with Stemettes, an organisation promoting women in technology, held an event for girls aged 11 to 13 at Gateshead’s Sage during 2015. More than 300 girls from 30 schools attended what may have been the biggest girls and technology event held in the UK. A similar event will be held during 2016. n

Star pickers: Charlie Hoult (left) and John Hunt, director of Orchard Information Systems, who chaired the judging panel

Big potential promised There’s a lot of goodwill and potential business around for IT firms in the region if surveys are anything to go by.

A midsummer survey of UK leaders in IT business suggested most would prefer to work with top Northern firms than with their London peers. The outcome of more than 100 interviews was that 87% were highly or somewhat likely to place IT business in the TechNorth hub rather than the TechCity (London) hub. The figure went up to a full 100% for IT leaders based in the North and to 95% for leaders based in Scotland.

Even in London and the South East 80% of the leaders would prioritise TechNorth. Dynamo aims to hasten

national and international recognition for the region’s abilities in IT software and services, and the variety of IT and digital business existing in the region was highlighted in August when Dynamo held a North East IT and Technology Awards event, sponsored by BT, Sage, Accenture, and University of Sunderland. You got a flavour of the variety of abilities from the list of winners: Outstanding Achievement: Beverley Dean, Special iApps, providing people with disabilities access to digital educational resources.

Rising Star: Nathan Fuller, Northumberland County Council and Kieran Stratford, Orange Bus.

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134 I T & T E L E C O M S In association with

Kieran completed a 15-week training course successfully at the IT Apprentice Hub, created by Dynamo with Baltic Training Services. He fulfilled a task in one night that should have taken a week. He built his first website in four hours. Nathan has excelled in an information services department.

Partner Award: Alex Shiel, head of intellectual property at law firm Ward Hadaway.

Innovator of the Year: Omlis, a two-year-old, 50-strong Newcastle based, global provider of mobile payment security through encryption technology for banking. Its business ranges across Europe, Latin America, the Middle East and Russia.

Collaborator of the Year: Cloud Innovation Centre (CIC), a collaboration between Newcastle University and Newcastle City Council.

Future Workforce: Dev Academy.

Skills Developer Award: HMRC. Skills Developer Educator: Baltic Training Services, which has helped create more than 2,000 opportunities for apprentices.

Growth Explosion Start-up Award: Redu Group of Seaham, innovative marketers.

Growth Explosion High Growth Award: Bede Gaming which in three years has become an established player in online gaming, with 165 staff employed in Newcastle, London and Bulgaria, serving blue-chip clients and running its own games development studio. Bingo is among its success stories.

Growth Explosion Established Company Award: OnTrac, an IT solutions company in Gateshead which has doubled in size and turnover yearly since 2013.

Highly Commended: Aspire Technologies Solutions of Gateshead.

Project of the Year Award: Ubisoft, the world’s third placed independent video games publisher with a consumer relationship centre in Newcastle.

Project of the Year Public Sector: MyTrav project team, Newcastle City Council, involved in developing an app that helps young people with special educational needs to travel independently.

In separate awards spanning the entire Northern Region, Palringo and the Newcastle arm of Performance Horizon Group respectively won the fastest growing company and judges’ over-all award. Palringo Group Messenger,

a community and gaming app enabling the company to claim 45m installed users worldwide, grew 527% over the period considered.

Palringo was founded in Newcastle in 2006 by 21-year-old student engineer Martin Rosinski. He had developed it for his father’s company, to help engineers communicate and solve problems in the field. Performance Horizon, which also has offices in New York, Sydney and London, delivers online real-time data tracking and reports, custom finance services, and product support for global brands.

The North East is home to Sage, the world’s third-largest supplier of enterprise resource planning software (behind Oracle and SAP), the largest supplier to small businesses, and serving 6.1m customers from offices in 24 countries.

Founded 1981, it is the only software business in the FTSE 100 Index, and its chief executive Stephen Kelly, a participant in Dynamo activities, has been named by Prime Minister David Cameron as having one of Britain’s best and brightest business minds. Formerly the government’s chief operating officer leading a number of national IT initiatives, he says that if the North East is to grow in significance nationally and internationally, a focus on the technology which the digital age has placed at the heart of business will be vital.

Sage, has been closing some of its more remote offices and is spending more on marketing to boost the growth of its web-based accountancy software.

Orange Bus in Newcastle is a SME endorsed by private clients such as Barbour, Nexus, Capita, Pearson Education, Philips, Aston Martin Racing and Sage. It is also noted for helping to embed digital government throughout the UK. Nomad, again in Newcastle, has connected train passengers to uninterrupted wi-fi in many countries, and as far away as Australia. The North East’s Go-Ahead transport group was first to adopt its new technology. In more leisurely mode, Tombola of Sunderland now employs 350 staff to run online bingo in many countries. It became the largest bingo operator in Italy and Spain within two years of trying.

BT is currently rolling out fibre and its Ultrafast broadband in the region, and Simon Roberson, BT’s regional partnership director for the North East, confirms: “The region’s IT sector sustains a substantial number of quality jobs, and its reputation for creativity and enterprise is well earned.” n

ENTERPRISE MOBILITY MANAGEMENT ENTERPRISE MOBILITY MANAGEMENT

ENTERPRISE MOBILITY MANAGEMENT

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Chances to get smarter In a recent BQ Live Debate published in BQ magazine, possibilities of the North East becoming a ‘living lab’, building on its existing and future technology to become a paragon of smarter and healthier cities or city regions, took a major step forward with BT’s disclosure that it wishes to consider North East potentials in its plans to invest in partnerships with major cities of the North.

The opportunity emerged during the debate in which many opportunities and visions were considered, some already being worked on. They included becoming a national internet centre for Big Data, combing through masses of data from social networks and the internet to improve decision making that will put money back into people’s pockets. A centre of excellence in cyber security and forensics, plus further progressing life sciences and ageing research are other possibilities.

Simon Roberson, regional partnership director at BT, explained that Newcastle had 98% superfast broadband coverage and an ultra-fast broadband pilot bringing 300Mbps in Gosforth, was taking place. He welcomed ideas towards building more sustainable cities, more prosperous, healthier and with greater inclusivity; how they’d mesh in different ways - generating wealth and improving lives. During these discussions Charlie Hoult disclosed his vision for the Dynamo organisation.

BT, fending off rivals’ appeals to the Government for a share in the immense but rewarding task of laying in broadband, has to field complaints from some areas not yet benefiting, yet at the same time work with limited investment. Now, however, it will be expected to complete its task by 2020, when all UK businesses and homes will have ‘fast’ broadband, Prime Minister David Cameron promises.

The Government had earlier pledged broadband for all premises by 2016, and said 95% of the UK would have ‘superfast’ broadband by 2017. BT and other broadband service providers – such as Virgin, Sky and Talk Talk - sometimes come under fire when blame really lies elsewhere. Even the Tory MP for Hexham, Guy Opperman, has been moved, on behalf of rural areas, to accuse the Government of broadband starvation through

Big outlay: BT’s investment in fibre broadband runs into hundreds of millions of pounds in the North East, says Farooq Haqim, BT regional director cost cutting. And across the country generally more than 13m households paying for broadband speeds below expected found themselves unable to use new rules to exit broadband contracts.

Research by consumer group Which? had suggested occupiers of three in four properties were getting slower broadband than “headline” speeds quoted in advertisements. But a Daily Telegraph follow-up concluded that only 2m could use the rules introduced by Ofcom the communications regulator to abort their agreements; the rest would have to wait until their contracts expired perhaps 12 or 18 months later. So not only has the technology to be kept up to speed but its service to the public also. Meanwhile, despite the scale of its task, BT has generated £492m for the North East economy and supported more than 6,000 jobs during the past year.

Advantaged early: Queen’s Meadow Business Park, first to benefit from superfast fibre broadband

“Few organisations in the region have a larger impact on daily life and future prospects of the region than BT. We are one of the region’s largest private sector employers and investors. Our investment in fibre broadband in the North East alone amounts to hundreds of millions of pounds” Spending £51m with regional suppliers, BT has also benefited contractors, a report by Regeneris Consulting says. For the North East BT’s GVA has been equivalent to £1 in every £90 of the region’s total GVA. Farooq Hakim, BT’s regional director for the North East, declares: “Few organisations in the region have a larger impact on daily life and future prospects of the region than BT. We are one of the region’s largest private sector employers and investors. Our investment in fibre broadband in the North East alone amounts to hundreds of millions of pounds.”

BT has also committed more than £600,000 in a year to community, charity and voluntary programmes, spread around many communities of the region.

In 2015 firms on Queens Meadow Business Park in

Hartlepool were first in Tees Valley Enterprise Zone to be offered upgrade to superfast, fibre broadband by BT which was working with the Teesside LEP, Tees Valley Unlimited, and with Hartlepool Council and the park owners Homes and Communities Agency contributing £30,000.

A multi-million pound partnership between BT and 10 local authorities will also transform broadband speeds for businesses and residents across Teesside, County Durham, Gateshead, North Tyneside, South Tyneside and Sunderland. BT’s chief executive Gavin Patterson points out how BT wants to enable the Government to deliver the broadband speeds needed for every property to enjoy services such as high definition TV streaming and cloud computing, but to do this requires a collaborative effort across industry and government. n

138 P R O F I L E CCS

CCS catalysts of change in the B2B telecoms sector CCS is a North East-based telecommunication and IT provider offering both strategic and supplier partnerships with medium and large sized businesses. We’ve been around since 1988 during which time we’ve become experts in our sector working with clients such as Nike UK, SAFC, Hays Travel, Newcastle Airport and many others.

Understanding the importance of honest, ethical and customerfaced relationships, CCS’s ethos has helped to build a strong foundation of long-standing, loyal customers and we pride ourselves on providing clear, catch-free contracts.

In January 2016, we will be launching a white paper to help senior buyers understand the most common, unethical selling practices in the telecoms market today. We want to be a catalyst of change and highlight the malpractice which is putting the telecoms sector into disrepute – there are some outstanding telecoms companies and we want to help you build trust in our sector. Chris Lee, owner of CCS, has recently spoken out on this issue of unethical selling, particularly when it comes to hidden or disguised clauses in contracts. Throughout his 26 years of experience, Chris has been witness to numerous ‘almost clients’ who have been caught out with unethical clauses and complex jargon in existing contracts, meaning they have been unable to change provider or incurred high unexpected fees, some up to £18,000. The most common issue of hidden clauses we’re seeing at the moment is contract automation largely found within agreements between the customer and the supplier rather than the network itself. While completely legal, contract automation clauses unwittingly tie your business into a longer contract largely through the inclusion of Automatically Renewable Contracts (ARCs), also known as ‘rollover contracts’ and Continuous Payment Authorities (CPAs) which allow a business to take a series of payments using a customer’s debit card or credit card without having to seek expressed authorisation.

From our experience, the most common of these two issues are the ARCs which automatically roll customers forward into the renewal of their upgrade, usually tying them into their existing contract for a further 12-24 months. This can cause disappointment, with customers looking to end business with their current supplier at what they thought was to be their contract end date. This means that if the customer has not checked their agreement for ARC, or hasn’t seen the clause, and

therefore does not opt out of the renewal within the requested time period, they are then contractually bound to carry on their service with that supplier and network.

CASE STUDY We have a live case involving hidden clauses in contracts which our client has asked us to share to help raise awareness of their issue. A large organisation recently appointed us to manage its business mobile phone account starting in 2016. The customer had completed the duration of its existing contract and was ready to switch provider to CCS. However, at the point of requesting their PAC codes, they were informed by the previous supplier that they owed £18,000 in early termination fees. On further investigation, it seemed this large fee had been incurred through unknowingly upgrading their contracts mid-term for the previous two upgrades. It appears the sales advisor had called to advise the customer that their contract was coming to an end in five months and would they like to re-sign. For ease the customer had said yes. However, what the advisor had failed to inform was that rather than continuing their existing contract, they were actually signing a new one meaning they were not completing the minimum terms as agreed. We are currently working with this business and our lawyers to see if there is any way they can avoid this astronomical fee.

ANY TIPS AND ADVICE FOR BUSINESSES LOOKING TO SIGN OR RE-SIGN THEIR CONTRACTS WITH A NEW OR EXISTING PROVIDER? Yes - for renewals, always have a legal advisor check the contract, even if you think you fully understand the terms. Also, always make sure you have a copy of the terms and conditions whether a paper copy or link to the supplier’s website. You’re also within your rights to ask for customer references and make sure you call to check validity.

DOES CCS HAVE ANY ARC IN THEIR SUPPLIER CONTRACT AT PRESENT? No, and we haven’t since we first started trading. We allow our clients to go to market at point of upgrade as we appreciate that a business’s requirements change over the years and they need to have the freedom to explore all options.

P R O F I L E 139 CCS

The only time we may look at implementing such clause is if we bespoke tailor an agreement with a larger client whereby we have to hire extra resources to service that account. We ask politely for a three month notice. However we hold no financial penalty in failing to do so.

WHAT ADVICE CAN YOU GIVE TO A BUSINESS WHO HAS BEEN AFFECTED BY AN AUTO RENEWAL CLAUSE? There are two scenarios here depending on the size of your business: • If you’re a non-limited, small business with fewer than 10 employees, firstly you can simply notify the supplier of Ofcom’s regulation which states: ‘For fixed voice and fixed broadband residential and small business ARCs the prohibition on the sale of new ARCs will take effect on 31 December 2011.’ This means that the sale of new ARCs will be prohibited from that date.

Alternatively, you can raise a complaint with Ofcom and they will then open a case. Finally, you can seek local, legal advice from our friends at Ward Hadaway who have dealt with similar cases.

• If you’re a limited company or have over 11 employees, unfortunately if you signed the contract then you are legally contractually bound to that supplier which is why we really do stress the importance of understanding your supplier’s contract and their terms and conditions.

WHY DO CCS WANT TO RAISE THE AWARENESS OF ARC? We want to be catalysts of change in the telecoms sector, pioneering an ethical industry shift. We want to make this a level playing field, not only for other suppliers but for customers too. Following CCS’s advice, businesses, we hope, can protect themselves against hidden or confusing contractual terms by reading small print thoroughly and questioning anything they are unsure on. This should be done independently by the customers themselves, without solely relying on the information given by a sales advisor. That way, business customers can be sure to opt out of automatic rollover contract clauses, if they apply.

To find out more about the services offered by CCS and how it can support your business, contact the head office on 0191 534 0140 or by email hello@ccs.co.uk.

CCS is also available on the @CCSNorthEast Twitter account We’d like to invite businesses to contact CCS prior to putting pen to paper on a new telecoms contract as we can offer advice on specific contractual terms and conditions.

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IN BRIEF Bob’s simply outstanding

Once you’re riding a Cloud

Bob Paton, managing director of Accenture’s North Tyneside delivery centre, has recently been awarded an CBE for his contribution to IT skills and apprenticeships in the North East – this in addition to a major IT award earlier for his “outstanding contribution to the profession”. The awards, sponsored by the British Computer Society, the Chartered Institute for IT and Computing magazine, celebrate best practice, innovation and excellence in the industry.

It was a fitting tribute to someone who has worked diligently and with distinction in IT for more than three decades, starting with Accenture 23 years ago as a manager in London.

When the North Tyneside centre opened, he jumped at the chance to relocate to his homeland North East. Since 2010, headcount for Accenture there has risen from just over 200 to around 650, with 70 apprentices. It has also worked with around 400 schoolchildren this year. “I believe everyone has a talent,” says Paton who, besides co-founding Dynamo North East was interim chief executive at the North East LEP for six months.

Benefits of Cloud are widely acknowledged but some IT users still hold reservations – mainly over security. This must be countered by a responsible, accountable and transparent industry, the Cloud Industry Forum warns. The Cloud provides a delivery of on-demand computing resources over the Internet on a pay-for-use basis. No data is lost if your computer fails, and the service can scale up or down according to need. Champions of Cloud say it enables businesses of all sizes to increase mobility and scalability by extending applications usually cost prohibitive to SMEs. It particularly supports the 90% of employees reckoned to spend some of their working time out of the office. The North East is served by a number of indigenous firms with Cloud expertise, and award winning Cloud computing researchers at Newcastle University have collaborations with businesses.

The university’s Cloud Innovation Centre brings together industry, researchers, trainees and PhD students to encourage exchanges of ideas on data and information. The centre has a suite for studying the visualisation of 3D information.

‘Smarten your call centre’ call The nation’s 5,000 contact centres are being advised to smarten their operations – using innovative technology to add value to their services – ahead of the National Living Wage being introduced.

The minimum pay gives way to the new national rate starting at £7.20 from 2016, and rising to £9 in 2020. Aspect Software, a provider of customer engagement technology, points out that according to Contact Babel the mean starting salary for a new agent in a ‘high attrition’ (40% annual turnover of staff) contact centre in the UK is £13,854.

For a typical, large contact centre with 1,000 full time equivalent, that’s an annual and immediate jump in staffing costs of £186,000. Taking into account an average inflation rate of 1% a year, by 2020 this figure rises to an extra £2.9m a year in salaries. Mark King, Aspect’s senior vice-president Europe and Africa, suggests that as an industry notable for having several entry-level positions for college and university leavers, as well as those looking for new careers, contact centres will certainly be affected.

Digital firms are small but many, and working together they can make a major impact, both as a sector and as a contributor to the economy

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DIGITAL

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142 D I G I T A L In association with

Going for the big one The North East is preparing to present the grandest show in creation Several regions are vying for recognition as the main digital hub of the nation, and to step up its own prospects the North East next March will hold the region’s largest expo of creative and digital media companies to date - both to grow the region’s sector and to stem a digital ‘brain drain’ from the region.

The creative sector takes in advertising, branding, design, fashion, film and TV production, gaming, media, photography and technology. A national report by Tech City UK, found around 26,856 people working in digital technology in the North East. This followed a 24% increase in new digital companies between 2010 and 2013. The North East was noted among the strongest clusters for software development and video games production. Ignite 100’s Paul Smith, one of 43 representatives from various regional clusters interviewed for the study, said: “Tech Nation shows that digital businesses are driving economic growth in the North East.” Altogether 74% of digital technology firms operate outside London, providing 1.46m digital jobs.

The GetDigital event now planned, organised by Gateshead’s Creative North and sponsored by Accenture, will parade 100 companies in one of the biggest UK presentations yet, to boost international contacts and attract young people to digital and creative work opportunities.

The event at Hoults Yard, Newcastle, on 24 March, will be backed by the Federation of Small Businesses, UKTI and the North East LEP. More than 1,000 non-digital businesses from the UK and abroad are expected to visit.

Innovation labs, meanwhile, will have firms collaborating to crack problems, while a partnership with the Association of Colleges and the Gatsby Charitable Foundation will enable young people to be introduced to the sector. Established a year ago to tackle perceptions

that London is a vital workplace for success in creative fields, Creative North has held a number of events to highlight the wealth of talent in the region. Founder Rob Earnshaw, who also sits on the North East LEP’s business support board, says: “I have been blown away by the talented companies and digital experts this region holds, yet we still have an image problem.

“Reports suggest our digital economy is growing more slowly than those of Bournemouth, Brighton and inner London because we fail to attract talent to the region, and because 80% of investment into the sector goes down South. Yet the North East is one of the UK’s most desirable places to live in. Attracting talent and investment here should be easy.”

One of the biggest challenges, as in IT, will be to convince more young women of opportunities that exist. Only 11% of digital employees even nationally are female, according to the Chartered Institute for IT and E-Skills UK. GetDigital will be seeking to attract suitable job seekers of both sexes, and the festival if successful will be repeated

“I have been blown away by the talented companies and digital experts this region holds, yet we still have an image problem. elsewhere. Earnshaw believes the progress of the North East’s digital sector lies with the private sector, and he is confident GetDigital could be the spark igniting a digital revolution. Any party wishing to apply for a place should do so before 15 January at www.creativenorth.org.

Representative firms from fashion, music, games, film, television, design, craft, culture, advertising and technology are all co-operating with promoters of

Rob Earnshaw: blown away by the digital talent

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IT in the region, as was evident during a recent event aimed at gaining Newcastle recognition as a ‘creative city’ with an appropriate cluster.

Ben Quigley, chief executive of the marketing services group Everything Different, who chaired the gathering, says: “Despite the whopping contribution the creative industries make to the UK’s economy, they are often undercapitalised, underskilled and have unequal access to the infrastructure they need to reach their full creative and commercial potential. This must change.”

The November event - supported by Creative England, Tech North, the North East LEP and the region’s universities - followed one five months earlier that was attended by 125 key figures from the region’s creative sector. This was held at Science Central’s Core building.

Tech North set up by government-backed Tech City UK, is focused on attracting and developing talent, entrepreneurship and investment in the North. Herb Kim, now something of a digital father-figure in the North East through his regular Thinking Digital conferences at Gateshead, is executive chairman and a board member of Tech City UK. He leads the advisory board with five other leaders from the North of England’s digital community.

With his knowledge of regional centres in the USA he is particularly well equipped to give valuable input, and in his role as technical chairman to the advisory board of Tech North he sees a wider picture for progress extending from the North East to Hull, Leeds, Liverpool, Sheffield and Manchester.

From the Core meeting a Creative Newcastle body was set up to ensure more start-ups, and with longer survival rates, to increase the number of creative businesses in the region turning over more than £5m, and to double the value of creative exports from the region.

Michael Dickens, of Rivers Capital Partners (a funding provider) points out that the video games industry is now immense, with Britain producing some of the world’s most popular games.

Gaming has moved into mainstream entertainment, with perhaps 30m people in Britain participating, and the interest once largely shown by males aged 10 or 11 to 35 has now won over also girls, women and older generations. Digital also presents an opportunity to move into higher echelons of industry. Brian and Darren Jobling

Spreading his talent: Herb Kim, a digital father-figure in the North East, now gives the entire North the benefit of his expertise and knowledge

in creating Eutechnyx gained a global reputation for racing games such as Ride to Hell and Retribution, and working with Nascar franchises.

Now their Dunston, Gateshead, operation has diversified.

Besides Eutechnyx business, Zerolight provides “virtual showrooms” for car manufacturers. To allow customers to see real time images of a car. Both LandRover and Audi have endorsed the expertise.

Gabrielle Kent, Teesside University’s deputy head of games art and design, and director of Animex games and animation festival, perceives a camaraderie among participants in the North East which she describes as “superb”.

Digital technology meanwhile is extending its benefits into many business sectors, including construction in which the Government is demanding building information modelling (BIM) on all publicly funded projects by 2016. n

Teesside bangs the digi-drum The digital industry flourishing on Teesside could have been forgiven for preening itself. It entered 2015 informed by the Institute of Economic and Social Research that there was only one English digital hot spot north of Birmingham - Middlesbrough.

A lot can happen in a year of course and much digital progress has also been seen since then in Newcastle and Sunderland. But neither has Teesside basked in its glory of this earlier recognition for having the most concentrated digital businesses.

It now has also Fusion Hive, a business and innovation centre managed by Teesside University on Stockton’s Northshore, primarily for new and growing digital and technology companies. The three storey building provides high-tech workspaces with access to the university’s established business expertise, networks and innovation support. It valuably complements DigitalCity which, over 11 years now, has helped to create and support hundreds of businesses. In mid-2013 David Jeffries brought in his entrepreneurial skills and experience as head of DigitalCity innovation and graduate enterprise.

A founder of Mere Mortals group, he had over 15 years grown a series of digital media firms, at one point employing more than 50 people in four businesses, and turning over several million pounds annually.

After graduating in fine arts from Cardiff University, he had worked as a 3D animator before founding Mere Mortals in 1999. The Newcastle based business grew from a two-man operation to a leading North East digital group,

and worked on several major big screen films including 28 Weeks Later, Sunshine and Slumdog Millionaire - as well as several notable computer games for clients such as Sony and Ubisoft.

He moved to New Zealand in 2007 to set up an arm of Mere Mortals in Auckland before returning to the UK in 2010. Then in 2011 he launched Spitfire in Dubai, a digital media company specialising in Moving Image which has gone on to work for global brands including McDonald’s and Toyota as well as a whole host of ad agencies and film companies based in the Middle East.

No ‘mere’ mortal, then, he was clearly an outstanding catch for Teesside University which drives DigitalCity and Fusion Hive with Middlesbrough and Stockton Councils.

Teesside University confers degrees in independent games design that mixes technical and creative skills building with entrepreneurial thinking and marketing strategy.

Another plus for the industry on Teesside is the establishment of a Boho Zone providing business space for new digital and creative companies to grow in, network and do business from. It is the digital media, digital technologies and creative industries quarter in the heart of Middlesbrough, flourishing in a combination of refurbished Victorian buildings and new design.

Altogether 10 hectares of city centre land have been reserved for development of commercial property, earmarked for digital technology companies.

Teesside also turns out masses of data ripe for advanced analysis. n

146 P R O F I L E Sunderland Software City

Sustaining growth with new opportunities A decade of growth has seen the North East develop a renowned and competitive software sector, but we must concentrate on creating opportunities to sustain and grow the sector further says David Dunn, chief executive of Sunderland Software City.

2015 saw continued growth in the North East’s software sector; with more new companies starting up, established companies expanding and more and better jobs created in the digital and technical industries.

Now recognised as a centre of global excellence in data analytics, gaming, health tech and software development, the North East’s digital economy is driving growth and reestablishing the region as an innovation hot-spot.

Sunderland Software City continues to provide tailored business support in order to maintain and accelerate this growth whilst increasing focus on creating and bringing new opportunities to the region’s software businesses.

March 2015 saw the opening of the Digital Catapult Centre North East & Tees Valley; one of only three local Digital Catapult Centres set up to help organisations unlock new value from data through collaboration with innovative SMEs. The Digital Catapult Centre NETV, based at the Sunderland Software Centre, has already worked with organisations such as Barclays and Nissan to run data innovation challenges; facilitating the opening up of closed and proprietary data sets to provide a unique opportunity for digital and software SMEs to develop solutions for large, multi-national organisations.

These cross-sector challenges allow data owners to explore and commission new products and services whilst providing SMEs fast-track access to the supply chains of major tier-one contractors in the region.

2016 will also see new opportunities created through the IoTUK Boost programme, a series of local IoT innovation challenges and incubation activities delivered by Sunderland Software City, which will bring together existing and aspiring IoT SMEs

“We are working hard to create the tangible new business opportunities that SMEs in our region need in order to accelerate growth”

Nissan’s Dean Brown (Front) with Naomi Morrow (Centre) from the Digital Catapult Centre NETV at the Nissan Business Challenge and large public and private sector organisations to identify and deploy IoT technologies to transform businesses and public services. With eight years’ experience of supporting and nurturing the region’s software sector, Sunderland Software City is at the forefront of sector growth; providing the support, skills and training that software businesses need to succeed.

We continue to work with partners both regionally and nationally to raise the profile of North East software, driving business and investment into the region whilst working hard to create the tangible new business opportunities that SMEs in our region need in order to accelerate growth and take their business to the next level.

For more information on Sunderland Software City’s services please visit www.sunderlandsoftwarecity.com The Sunderland Software City project is part financed by the European Regional Development Fund (ERDF)

148 D I G I T A L In association with

IN BRIEF Buyers’ rights stepped up Customers buying into digital by downloading music or purchasing ebooks now have new legal rights.

Given the number of consumers now buying digital content, the Consumer Rights Act brings in specific rules entitling shoppers to a repair or replacement when digital products are faulty. Shoppers spent more than £2.8bn on downloaded music, video and games – 18% up on the year before. Now the law clarifies rules around refunds, repairs or replacements of faulty goods. This includes, for the first time, the creation of a specific period, 30 days, for consumers to reject a faulty item and get a full refund. Research (also from 2014) shows shoppers met more than 18m problems with consumer goods and services in the preceding year, leaving people £4.15bn out of pocket.

The Act, by streamlining eight pieces of legislation into one, now makes it easier for consumers to know their rights and to shop with confidence.

Welcome here: Sunderland has made hundreds of software businesses feel at home since opening a major centre in 2009

City of software breeding in hundreds On Wearside, Sunderland Software City is driving its area of influence towards recognition as a place for the software industry to do business in internationally. It has already supported hundreds of software businesses since it opened in 2009. The private sector initiated, publicly backed body brings together the best of the public, private and educational sectors to generate a sustainable software industry in the region and drive the development of world class software businesses. Work is carried out closely with partners such as Sunderland City Council and University of Sunderland to ensure an availability for the software industry of the right facilities, the right business support, the right connections and a workforce fit to contribute on a global stage. The Sunderland Software City project, which is also valuable for meet-ups, conferences and expos featuring hundreds of likeminded business, is partly financed by the European Regional Development Fund (ERDF). It is managed by the Department for Communities and Local Government. The ERDF programme is bringing more than £300m into the North East to support innovation, enterprise and business support across the region. Sunderland, the first UK city to have blanket superfast broadband, is now home to more than 150 software firms. These include the game developers behind Gears of War, Epic Games UK, and Saggezza, a Chicago headquartered software company. Saggezza, with offices in the USA and India, chose Sunderland for its only UK operation outside London. Chief operations officer Socka Suppiah finds Sunderland a “fantastic” location. Sunderland has hosted a DrupalCamp North event, attracting web developers from the UK, Finland, the Netherlands, Germany, the USA and elsewhere.

If membership of a Northern Powerhouse can end the piecemeal development and delays North East infrastructure suffers, the marriage will succeed

MAGAZINE

D N A T R O P S N A R T E R U T C U R T S A R F IN

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A need to move faster

The list of essential work on roads and rail especially is mounting

When the grand devolution comes, hopefully with a plentiful share of a £100bn spend the Chancellor promises on infrastructure, there’ll be an abundance of projects to go at. Transport for the North (TfN), the body set up to drive economic growth through strategic investment in transport in its particular province, has the following proposals: ON THE RAILWAYS: 140mph trains between Newcastle and Leeds, cutting journey times to 50 minutes from 87 minutes presently.

ON THE ROADS: Full upgrade of the A1 giving motorway entirely from London to Newcastle. Exploring upgrades of the A66 Scotch Corner to Penrith and the A69 Newcastle to Carlisle to better connect the M6 to the A1. Consider dualling fully the A66 or the A69 (note the or). Continue improving the A19 between North Yorkshire and Newcastle, to benefit the North East ports. By 2016 TfN will be expected to have produced a Northern freight and logistics strategy to be developed over 12 months. We’re talking billions of course – billions not in spend but, rather, investment, since it’s reckoned the transformation would reap an extra £1,600 per head to the North East economy on completion. Over the next five years Highways England, which replaces the Highways Agency from next April, is expected to start upgrading 18 major routes including the A1 north of Newcastle into European-style expressways (mini-motorways). Unsurprisingly, roads in the South are promised first consideration. This shopping list of needs to speed a successful Northern Powerhouse would have been less awesome had not public spending on transport

infrastructure in London and the South – mainly on new railways – previously been 24 times more per head of population than in the North East. Inevitably the region’s civil engineering and construction industries suffered a skills drain during the recession, with workers paid off amid shortage of contracts in the region, and delays in getting those that did materialise finally approved and moving.

Work presently going on to improve the A1 Western Bypass round Gateshead and Newcastle, to improve major roundabouts at North and South Tyneside on Tyne Tunnels’ approaches, and to ease congestion in Morpeth could all have been started earlier, rather than being referred to regularly at Westminster as if they were new investments and not simply repeated pledges. Devolution will rectify this, one hopes; also the imbalance of transport subsidies whereby the average North East household spends £1.90 a week on bus travel and receives £78 a year in government subsidy, whereas the average London and South East households spend £1.70 and £1.40 respectively but receive £193 and £110 respectively. These imbalances have been brought out by nine Chambers of Commerce, whose business members represent more than 1.4m workers across the North of England. In a paper urging change in the criteria dictating how investment in transport infrastructure is made, they call for the removal of bias towards London. The A1 from Newcastle to Berwick, while about to be dualled further, will not at this stage reach right through to the Scottish border. Dualling on the presently still partly treacherous A66 from Teesside to Penrith and the West Coast requires completion, as does further dualling of the A69 bearing traffic between Tyne and Wear with Carlisle and the West Coast. n

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Worth watching: The pick-up in work at Sunderland port under director Matthew Hunt is good to see

Shipshape and sky’s the limit Teesside’s airport aside, ports and airport business is flourishing in the North East The region’s four main ports - Tyne, Tees, Hartlepool and Sunderland - serve sectors that together contribute more than half of the North East’s economic output.

At Port of Tyne a £25m programme of regeneration includes, with quay extensions, an enhanced deep water facility. This port also gains some of its revenue through tourism as luxury cruises call. Under director Matthew Hunt, a £1m investment in Sunderland’s port has revived its rail connection, reconnecting the port to the mainline network after 20 years. Its latest round of improvements, begun in July, saw Jubilee Quay - the third largest of its 11 quays -

redeveloped, with new asphalt hardstanding allowing for shipping bulk and project cargoes. Jubilee Quay passed an early test, serving as a base from which to load three large Liebherr cranes onto a vessel for shipment abroad.

The Jubilee development follows major work at Greenwell’s Quay, also resurfaced. Watching work pick up at the port has become enjoyable window-view entertainment for visitors lunching at the restaurant across the water in the National Glass Centre. Port of Blyth is prospering too, thanks to Enterprise Zone status supporting its drive for offshore energy business. IHC Engineering’s entire UK manufacturing has been relocated there for starters.

Blyth is also home increasingly for work on energy industry vessels. It also provides storage for GE Wellstream’s huge wheels of cable, and recently coped comfortably with the arrival of one of the world’s largest wind blades.

Seaham’s warehousing, local storage and good road and rail connections suit vessels of up to 8,000 tonnes.

At the North East’s major airport, Newcastle International, cargo and passenger needs are competently met. The airport has been voted the UK’s best for a third year running by passengers through the consumer magazine Which? and chief executive David Lawes has been named North East Business Executive of the Year. The airport recently invested £14m in developing its departure lounge, and it looks as if its maiden seasonal service to New Jersey, to be repeated in 2016, will take firm hold. Success of its routes to the Middle and Far East through Emirates airline suggests a North American potential will be realised too.

Though aviation was badly hit by recession, Newcastle lifted its revenues in the past year by 3% to £58.6m.

Passenger numbers rose by 2%. Both the region’s airports would benefit from a decision on the long dragged out controversy of airport expansion in London.

In a recent survey 71% of Northern business leaders felt a third runway at Heathrow would be good for business, although 60% thought increasing capacity, routes and flights at regional airports was equally or more important. A removal of the detested airport passenger duty would also be beneficial but is nowhere yet in sight.

On a festive note, both Blyth and Sunderland can look to a big revenue fillip from visitors when they host the Tall Ships race - Blyth this year and Sunderland in 2018. A new 40 bedroom hotel at Blyth will not only welcome Tall Ships visitors but add commercial value to the £25m that benefits the local economy from port usage. n

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Transport first, then digital, say bosses Businesses in the North of England will benefit more from a physical rather than a digital infrastructure – that’s the view emerging from a survey of board level directors and chairmen of companies all across the area.

Altogether 69% of respondents to the survey by Business Growth Fund (providing long term capital to small and mid-sized businesses) say improved roads, rail and airport expansion would benefit the businesses they work with, compared to 31% who would prioritise investment in high speed broadband. Galvin Mould, chairman of BGF backed Medicina, a medical devices company, says: “Most of the UK’s ‘industrial’ hubs have superfast broadband, but underinvestment in physical infrastructure is still a problem for UK businesses. Skype and teleconferencing, while useful in certain situations, will not replace the need for businesses to travel to see customers and suppliers. And for companies moving goods around the country, improving the state of the roads is critical.”

Opinion is also firmly divided among Northern respondents on the value of HS2, the ultra-fast railway planned to link London with Birmingham and cities in the North West and Yorkshire. Half of business leaders in the North believe HS2

would be good for British business, but 40% disagree and one in 10 remain undecided.

Estimated costs of the HS2 ultra high speed rail are now £51.2bn and rising as 46 specialists knock up salaries higher than the Prime Minister’s with still no suitable track in sight, and prospects of the North East being connected in this way with London several decades away.

The benefit to less prosperous economies of the country – one of the stated reasons for introducing HS2 – would be more apparent if building started in Scotland and then moved down the East Coast. Some 60% of the business heads polled in the North would favour a start with connections from Northern cities to Birmingham, then moving on to London.

That seems unlikely despite the enthusiasm Newcastle City Council’s leader Nick Forbes shows for the project in principle. Indeed, a body lobbying against the project altogether has quoted the Department for Transport as admitting that Berwick and Durham would have reduced services under HS2. Savings on an HS2 journey between London and the North East would be mere minutes, and as Lord Jeremy Beecham - another Newcastle Labour

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councillor but one differing with his council leader – asks: “What would be the real gain in a new age when distance working and communication has also speeded up in a virtually connected digital economy?”

Opponents of HS2 argue that for the astronomical sum committed already, with no certainty of completion, money would be better spent in the North East and other regions on re-opening old lines to improve local mobility in the workplace. In Northumberland, Blyth and Ashington could be reconnected, especially since major industrial development has sprung up in Cramlington since the Beeching axe fell. On the brighter side, a recent £20m regeneration of Newcastle Central Station - a core project for NE1 Ltd (the organisation running the city’s Business Improvement District) - is already repaying the BID’s faith.

Passengers and their friends and relatives have more facilities and more room to move. And at the same time it’s boosting the retail offer within. It could be a beacon flashing a message of more enjoyable rail travel in the North East. By the time you read this we may know which of three contenders has gained the franchise to run additional routes on the East Coast Main Line.

Alliance/GNER, First Group and Virgin Trains East Coast are all offering new attractions in services to compete with air journeys, possibly by the end of 2018.

Alliance/GNER has promised a £300m fleet of new carriages with a variety of classes, and journey times of under 2hr30min from Newcastle to London - faster if track upgrades allow 140mph speeds. FirstGroup also offered new rolling stock, fares highly competitive with budget air carriers and Virgin Trains a 13 minute cut in journey times from Newcastle to London (coming down to 2hr34min, as well as 13 services to and from Middlesbrough to London each weekday from 2020.

York based Alliance, now a subsidiary of Arriva (owner Deutsche Bahn of Germany) set up Grand Central which put Sunderland on a direct route to London. Virgin and Stagecoach (with 10% and 90% stake respectively) have been running trains between the North East and London on the East Coast Line since last March following an earlier humiliation for the private sector when Sea Containers, a Bermuda registered company given the franchise in 1986, had to return it in 2007 on filing for bankruptcy.

Some 90% of Northern business leaders recently polled oppose any renationalisation of the railways, against a national average of 83%. This is despite the fact that East Coast Main Line as an operator earned £13m for the

Treasury in 2014 and was one of only two rail franchises to bring gains to the taxpayer. All other rail franchises needed millions in subsidy. Yet the East Coast Main Line operator had to give way to the Virgin/Stagecoach operation.

Electrification of the TransPennine line from 2022 will speed journey times between the North East and Liverpool. It is going ahead after an initial deferment with unpopular Pacer trains replaced from 2019.

Back in South East Northumberland, it’s estimated £30m would be needed to run passenger trains on the freight only line now serving Ashington, Blyth and Tyne, a trifle if you look at HS2 sums. A strong case also exists for reopening the Leamside line that branches away from the main East Coast line at Tursdale in County Durham, and goes through Washington and Wardley, joining the Newcastle to Sunderland line and, potentially, the Metro at Pelaw. Washington, another major new industrial centre (think Nissan) could also link to the Metro. Instead, the line stands unused, mothballed by British Rail in 1991 after a freightliner terminal at Follingsby, near Washington, was closed. But at least Morpeth’s historic Grade II listed railway station on the main East Coast line, built in 1847, is to be restored, with some space used for small businesses.

A major success story also continues for Tyne and Wear Metro’s light railway which, on its 35th anniversary, is on evidence of passenger numbers at its most popular for five years. The introduction of smart ticketing, allowing travellers to pay more easily, is one reason given. But there’s also a greater sense of security among passengers following a crackdown on crime.

Transport authority Nexus, which owns and manages the Metro, has on track a £389m plan of improvements, the latest to the good of Central, Gateshead, Heworth and Felling stations, along with track replacement, a new traffic management system and new digital aids for drivers.

Moves are afoot also to get state support for replacement of trains that have run there from start-up in 1980.

Estimated cost: up to £430m. n

Riding in comfort Virgin Trains has added Sunderland to its rail map with a direct return service from the city to London. In so doing Sunderland was first to benefit from Virgin’s £21m refurbishment of all its 45 trains on the East Coast Main Line.

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IN BRIEF Region’s new landmark The new Wear Crossing, the first bridge about to be built over the Wear in the city for more than 40 years, is taking shape on schedule. Linking Wessington Way in Castletown with European Way in Pallion, it will link port and city centre to the strategic highway network (A19/ A1). Two lanes of traffic will run in each direction, along with cycleways and footpaths. The construction contract is held by FVB JV, an international joint venture set up by Farrans Construction and Victor Buyck Steel. Construction; Currently employing 180 people – contractors, sub-contractors and council staff. At one time Cleveland Bridge at Darlington might have been expected to win the contract but it is making hundreds of small bridges to replace rickety rope crossings in Sri Lanka while its latest accounts show losses widening from £2.9m to £7m on turnover slightly down from £35.3m to £33.4.

However the 138-year-old firm, now Saudi owned and with a workforce of 220, says it has new UK contracts.

A proposal to have another bridge, connecting Gateshead and Newcastle, is being considered by Gateshead Council.

This would carry a tram link but as yet no funds are available.

Bus issue not over yet One of the first transport proposals from the new North East Combined Authority hit a brick wall after Tyne and Wear Quality Contract Scheme Review Board concluded that the bus franchising scheme the authority wished to introduce failed to meet statutory tests. It is not the end of the story, however, since a new parliamentary Act may be introduced, settling the matter during 2016.

Fight to revive airport mounts Endeavours to enable the North East to keep two airports in business are being made. The concern centres on Durham Tees Valley Airport, which has seen an 84% fall in passengers from a peak of more than 900,000 in 2006 to 140,000 for the year ending last February. On one side is Peel Investments which holds an 89% stake (with the remaining 11% held by local authorities). On the other side is growing public opposition to the owner’s proposals. It has discontinued its holiday charter flight business, relying entirely on the scheduled custom of KLM and Eastern Airlines. At the same time it is opening up potential for jobs and investment on land south of the runway, with Peel Group, parent of the majority shareholder, pledging £5m for plans that include a new 1.8km link road, and a large building, forming phase one of a Southside Business Park.

The 1.9m sq ft park has match funding from the Government’s Let’s Grow regional development fund. It is expected to attract 3,000 jobs and contribute more than £11m a year to the local economy. Plans also exist for a range of mixed-use developments. However, a campaign about the situation, fronted

by Teesside entrepreneur and philanthropist Andy Preston, is said to have the backing of more than 6,000 Teessiders. A poll resulted in 95% of 3,800 participants voting against plans for 400 houses. The campaigners also want the airport to revert to its former name of Teesside Airport. One reassurance both sides could draw comfort from is that KLM is including Teesside in its proposals to increase flights between the North East and Amsterdam.

The North East’s frequently praised export performance is achieved largely through relatively few businesses. A wider front line could do great things

MAGAZINE

G N I T R O P EX

Region’s proud record falters

Machinery and transport save the blushes but what about the other things?

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Businesses in the North East are being urged in an intensified campaign to think of raised revenues by sending their goods and services overseas. Little wonder that the EEF, North East Chamber of Commerce and UK Trade & Investment (UKTI) are pressing home the point.

Longtime regional leader in selling abroad, the North East recently showed the biggest fall in exports, with HMRC putting a 1.5% drop in exports during a similar period year on year. The slip in value amounted to £3bn against £3.1bn. By contrast the value of UK exports as a whole rose by 1.2%. Later figures have shown a 2.05% rise, thankfully, over a previous year’s comparison, But clearly the line dividing growth from stagnation in this vital performance indicator remains a thin one. Paul Langhorn, North-East regional international partner for accountants and advisors Baker Tilly, minces no words in assessing the region’s performance: “Hugely disappointing,” he says.

Possible explanations? “Maybe businesses in the NorthEast are still nervous about expanding into overseas markets following the economic downturn,” he suggests.

“Machinery and transport equipment remain the top export commodity for the region, which I suspect is largely due to regional success stories such as Nissan.

“The hope now is that as the country begins to recover from the economic downturn, more businesses will start to realise the benefits of establishing themselves abroad.

The Government keeps telling us about positive gains to business to be had from a Northern Powerhouse. So it seems to me it would be sensible for it to turn attention to supporting our regional businesses with its expansion plans overseas.”

The CBI blames poorer export performances on a strong pound and a weakening global growth outlook. North East businesses meanwhile have had the opportunity to take part in a weeklong series of events focusing on exporting goods and services overseas.

Meanwhile UKTI North East has been working with NECC, the North East and Tees Valley LEPs and successful local exporters to share experiences, offer practical advice and support designed to get more North East goods and services into worldwide markets.

They did this through a dedicated ExploreExport event, attended by Lord Maude, the Trade and Investment minister, during which representatives from 57 overseas markets met with businesses to discuss which markets best suit their offer.

Julie Underwood, director of international trade at NECC, says: “In any industry exporting can be a daunting prospect.

But help is available. The North East is the only region in England to consistently export more than we import, and we hope to build upon this impressive record again.” The region’s top export partners presently are the Netherlands, the US and Spain in that order. David Coppock, regional director for UKTI North East, declares: “We know from businesses that we have already worked with that exporting can lead to greater opportunities for innovation and development, and can increase jobs here in the North East.

“Advice is available on finance and billing, cultural considerations, support to be had from UKTI and others, alongside testimonials of companies that have already made great contracts and sales overseas. The companies we help range from the very small, recently established firm, trying to win their first orders abroad right up to established multi-nationals, already trading abroad.” The EEF (the organisation of manufacturers) and the Government have joined forces in the push to get more local manufacturers exporting. The two have put out a free guide to make more companies aware of benefits and opportunities abroad and the support available from government. The guide, Britain’s Global Adventure: the Export Opportunity, has been published in tandem with the launch of Exporting is GREAT – the Government’s biggest ever export campaign.

EEF, an official partner of the campaign, supports the drive to persuade 100,000 more companies to start selling overseas by 2020.

Liz Mayes, North East Region director at EEF, points out: “Manufacturers are already more likely to export than their peers in other sectors. Indeed, they account for nearly half of all UK exports. That’s why our sector has a key role to play in helping the UK achieve its ambitious export goals.

“The guide now available does much to open North East manufacturers’ eyes to the opportunity that exporting presents and the full range of support available to help them break into exciting and lucrative new markets.

Awareness is critical if even more local companies are to sell successfully around the world UK products, design and expertise.

“Export success underpins dynamic economies and growing companies. And, while the North East is regularly seen to be the UK’s leading export region, this achievement stems from a small number of companies.

We must do more to expand this.” n

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IN BRIEF Others are bullish so why not here?

Why a reluctance to venture overseas?

If non-exporting firms in the North East are like those elsewhere, on the evidence of global payments firm, AFEX it could be partly due to the impact of currency volatility and risk mitigation strategies.

An AFEX enquiry of more than 450 SMEs drew the following key findings: • 43% consider currency risk the biggest challenge (compared with 32% last year) • 8% have scaled back their operations because of currency volatility over the last 12 months • 91% expect international markets to remain at least as volatile in 2016 as now • Eurozone issues, US economic policy, qualitative easing by the European Central Bank and falling oil prices have prompted a revision of approach to management of currency risks.

But many North East firms think that successfully exporting say fluctuating currencies can be circumvented with appropriate planning. And, despite the present uncertainties, UK SMEs as a whole are more bullish about their prospects than 12 months ago.

An expert guide for the road to China One of the UK’s leading experts on doing business with China – a key target for British sales – is based in the North East and willing to advise. Professor Yu Xiong, of Newcastle Business School at Northumbria University, was invited by Tom Warburton, the director of investment and development at Newcastle City Council, to join him at a meeting in Manchester with China’s President Xi Jinping during the president’s recent visit to this country. The city council has called on Professor Xiong’s expertise and already established relationships with key Chinese business partners to identify trade and investment opportunities for the North East with the world’s second largest economy. Professor Xiong who, as nonexecutive director of Chinese investment group SinoFortone, has recently helped secure £5.2bn in UK projects - one of the largest investments from China towards the UK - has affirmed that he will work with North East stakeholders to help secure vital trade partnerships with China.“I can not only help identify opportunities in this region,” he explains, “but also identify opportunities for the region and its businesses in China. I could help bring trade and more investment to North East businesses and, as an academic, can identify and help overcome key barriers to help the UK Government and this region develop solid relations with China.” Warburton thinks it a great opportunity. “Newcastle is part of the Northern Powerhouse and the city council’s relationship with Northumbria University is evidence of us working together to increase the region’s economic prosperity.” The university is directly involved with firms and organisations of many sizes. At the top of the scale they include Nike, IBM, Nissan, Procter & Gamble, Unilever, and the NHS.

Be it through university or college, the inspiration and backing that young people aspiring to enter business can expect has a top notch look in the North East

MAGAZINE

S E I T I S R UNIVE GES E L L O C D AN

No better business school than this

Dan Robson builds his award winning firm following famous footsteps

Transformation of recent years puts North East at the top of the learning tree A superb standard of business education at top level in the North East has been set with Newcastle Business School - part of Northumbria University - being announced UK business school of the year.

The school, winner of the title at the latest Times Higher Education Awards, was also shortlisted for Entrepreneurial University of the Year honour. The judges said a review of the purpose of a modern business education - which propelled Newcastle Business School into an elite group of fewer than 1% of the world’s institutions - was significant to the triumph. Professor Kevin Kerrigan, the school’s executive dean, says: “Such a prestigious win is further evidence of the school’s transformation over recent years.”

Newcastle Business School has also recently been awarded double accreditation in business and accounting by the Association to Advance Collegiate Schools of Business.

Northumbria University has been proving its business mettle over many years. Sir Jonathan Ive, senior vicepresident of Apple - and one of many distinguished alumni emergent - is not one for high profile appearances when occasionally he returns from the USA to the North East.

But the graduate of Northumbria University’s design for industry course, who designed the iPod, the iPhone and the iPad and every other Apple product over the past 15 years, does make a point of returning to the campus occasionally to encourage tomorrow’s innovators and

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entrepreneurs following in his academic footsteps.

Recently he met Dan Robson who, at 27, had graduated from the same course three years earlier and is now one of the region’s most notable emerging entrepreneurs, as BQ acknowledged in recent awards.

Dan said afterwards: “Jonathan has always been someone I hugely admire. You hear stories of how incredible he was as a design student. We heard from him about the importance of what design can achieve in changing people’s lives for the better, and actually meeting him as I did was a huge milestone in my career and lifetime.”

The two met at a time when hundreds of paid internships and a new business start-up fund had been launched within days of each other at two North East universities.

Now Dan is making his own mark on our way of life. His Gateshead company set up last year after a work placement in a plastics factory, ahead of him gaining his Masters, promises easier gardening.

He has developed and produced a sustainable alternative to plastic and foil packaging that also makes seed planting easier. You simply snap apart his seed packet and plant it firmly in the ground as usual but without having to use any tool. The container made from recycled materials absorbs moisture from the ground, feeding it on to the seeds, while it slowly decays leaving no waste.

It can guarantee a fresh supply of herbs every week, even from a window box. It can attract youngsters to gardening too. His SeedCell product is presently going on sale nationwide. As he has been inspired by Sir Jonathan (now 48) others may become inspired by him, especially as new methods of training students to become entrepreneurs are paying off at Newcastle Business School. Just before the school’s supreme victory, a team of students on a new course there also won a national competition for successful business start-ups. The 13 students – currently in year two of a pioneering Entrepreneurial Business Management (EBM) course – triumphed in a two-week long contest against other UK universities. The EBM course is aimed at students eager to set up and run their own businesses, or who seek a head start when applying for graduate positions.

It has been developed with the Team Academy in the Jyväskylä Institute of Science and Technology, Finland.

Historically, the percentage of Team Academy graduates starting new businesses is five to 10 times higher than in traditional higher education institutions. In a 10-year follow-up from a programme in Finland, one out of three graduates start a business right after finishing their studies.

Lucy Hatt, EBM programme leader at Newcastle Business School, says: “The North East has the potential to be a fantastic hub of entrepreneurial activity in the country, and we are very clear this programme is for people wishing to learn about doing business entrepreneurially - to be entrepreneurial employees, as well as for those who want to be entrepreneurs.” Northumbria stands in the top 1% of business schools worldwide through double accreditation from the Association to Advance Collegiate Schools of Business – an international hallmark of excellence.

It was named fourth best university in Sir Andrew Witty’s 2013 Review of Universities and Growth for establishing start-up companies in the UK. The school’s winning side in the team competition – Concept Enterprise – easily mastered tough competition from other leading university business schools with its range of products and services, two of which are targeted at gym and fitness enthusiasts.

Its Sound Threads meanwhile is a men’s designed and printed clothing range by Ollie Pears and Ralph Winter. The fitness fanatics are also behind Power Fitness, gym wear for weight lifters. Curtis Pratt, 19, said: “We’re a really diverse group. With 13 of us, the team can build a big pot of ideas and develop them on an ongoing basis.” He has created a student discount card called R n R for small businesses in Newcastle. It raises footfall for sole traders’ shops that don’t qualify for NUS discount.

Another team member Tom Cheung, also 19, is attracting around 350 students to his house and garage music night weekly at The Cut, directly above Tup Tup Palace in Newcastle city centre. Meanwhile at University of Sunderland around 500 graduate level jobs and paid internships are being made available, 200 in the coming year additional to 300 already. n

“The North East has the potential to be a fantastic hub of entrepreneurial activity in the country, and we are very clear this programme is for people wishing to learn about doing business entrepreneurially “

Vice-chancellor Paul Croney excited about the future

A place to turn to That irksome question bugging many businesses in many places - who exactly to turn to if they want a university’s help - has been handsomely answered by Teesside University It has opened The Forge, a gateway not only to the university’s own resources but also to a meeting point for businesses ranging from start-ups and SMEs to blue-chip multinationals. Rita Clifton, former vice-chairman of Saatchi and Saatchi, stressed the importance of a venue where businesses could find ways to connect and interact when she officially opened the university’s national business hub on the £13m campus at Central Park, Darlington.

Each year, the university works with hundreds of different companies providing research and innovation, consultancy, and knowledge exchange, as well as start-up incubation and mentoring and graduate placement.

Laura Woods, director of The Forge, says: “It’s very

important for us to work with business and learn new ways of doing things, giving companies an uncomplicated way also to access what the university has to offer. We want businesses to come and use this building and its fantastic resources.” The new vice-chancellor and chief executive of Teesside University, Paul Croney, was an outstanding dean of Newcastle Business School before his present appointment and is driving £30m of new development on Teesside now. He wants the university to exploit further its strong points. “All around me I see process innovation and other innovation taking place,” he told BQ. It’s that innovation he hopes to exploit to the good of the university, Teesside generally and the North East region. n

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Where young people miss out Opportunities for students and school pupils to experience real work situations ahead of considering a career are worryingly scarce A survey by the Association of Chartered Certified Accountants (ACCA) has found that 58% of businesses have never availed of an intern. Also 37% of businesses that do employ interns source some of their candidates through friends and family. Businesses in London are far more likely to employ interns, with just 38% saying they have never done so, whereas in the North 67% said they had never offered paid internships. Helen Brand, chief executive of ACCA believes: “With work experience now considered integral to any CV, the lack of opportunities outside the capital will only add to the economic divide between the North and South of the country in future years.” Chris Hares, campaigns manager for Interns Aware, says: “Internships are being dished out to friends and family members, rather than to the most able.

This creates a new hurdle for bright young people who lack money or connections.”

Businesses with fewer than 50 staff were far less likely to offer internships with 83% from this category never having employed an intern. A majority of school and college leaders - as indeed the more enlightened firms that do participate - want the Government to recognise better the importance of pre-16 work experience, the North East Chamber of Commerce (NECC) has found. Its survey of more than 210 of the region’s business bosses and education leaders found that 82% of business respondents, and 73% of respondents from schools, colleges and universities believe secondary schools should try to source work experience for pupils aged under 16. But work experience is not offered automatically across the UK. Indeed in England, in particular, 34% of businesses offer no work experience of any kind. Firms that don’t currently offer work experience would be encouraged to do so by having more information about what is required (48%), someone to facilitate the relationship with the school (31%) and clarity on the benefits to their business (22%). Two-thirds of businesses offer work experience of some form. Those that don’t say they need more support and encouragement

to offer work experience. NECC policy advisor Paul Carbert concludes: “Links between education and business are essential to produce young people who are comfortable and ready to fill roles within the North East labour market.

Education leaders, like business leaders, are clear: we won’t bridge the gap between the world of education and the world of work unless young people spend time in workplaces while still at school. Work experience is crucial to bringing down a high youth unemployment rate. It will help ensure more young people are prepared for work and help close the skills gaps reported by businesses that are frustrated by the difficulty of filling vacancies at every level. A lot of progress has been made in recent years, but more hard work is required if we are to make significant inroads into addressing regional youth unemployment and potential skills shortages in key sectors in our region.”

Further progress may follow the recent spread of academies focusing on specific skills and involving businesses closely in both the running and the composing of the curricula.

The university technical college springing up at Newton Aycliffe (explained elsewhere in this section) will certainly have its effect. And a fine corporate example is set by Esh building group at Bowburn, which is building an academy to provide the business with more than 100 apprentices over two years, and to carry out other development programmes besides. n

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Investing in young talent In her first full year as vice-chancellor University of Sunderland’s Shirley Atkinson is going to be driving around £14m worth of investment towards bringing business and academia closer Something different: “A university technical college takes young people from 14 to 19 and differs in concept to any other kind of college development.

It has different characteristics,” says vice-chancellor Shirley Atkinson

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The successful £8m creation of an Enterprise and Innovation Hub and FabLab are two of the ventures already under way. Then there’s a commitment to introduce a groundbreaking university technical college, dedicated to training model recruits for engineering and other industry. Thirdly, there’s a £6m investment to build on the university’s international reputation for pharmacy and pharmaceuticals, enhancing work also in new areas such as proteomics (study of proteins in organisms) and metabolomics (studies in metabolism).

All this is in addition to the normal duties in stewardship of 19,800 students. The FabLab opened early on a temporary site. And the Hub of which it is part will become a focal point for businesses wishing access to expertise offered by the university. The FabLab and the Hub represent a new University of Sunderland gateway to the business community. All became possible when the Government announced a £290m investment for skills and jobs, projects, housebuilding and transport links in the region.

The hub idea arose through Sunderland Business Group when the university was asking business people how it might further support them. It is now expected to support the region in stepping up the number of innovative business start-ups, creating more than 700 jobs. Since 2002 the university, through hatchery and incubator spaces, has already helped hundreds of students and graduates eager to set up businesses. The new hub will expand this. All should be up and running by December 2016, with support also acknowledged from the NorthEast Local Enterprise Partnership and Sunderland City Council. Meanwhile the FabLab is under way temporarily alongside its eventual site on the city centre campus.

The FabLab, a digital manufacturing laboratory, was conceived and developed initially by Massachusetts Institute of Technology. FabLabs have the latest technology and fullest support for experiments that may herald new products. “It’s a great addition that we hope will benefit

the whole region,” the vice-chancellor says.

Also the university is delighted to have been working with Hitachi Rail Europe as it sets up in South West Durham.

The first university technical college in the region to serve it is a joint venture between the university, Hitachi and Gestamp Tallent auto parts manufacturer.

Many more firms on the business park at Newton Aycliffe are interested too, understandably since a major goal is to help create a supply chain whose employees have the right skills set at every level. “We can help all learners to have an opportunity,” she says.

“So the university technical college will have three pathways – apprenticeships with Hitachi and other employers, a pathway for those wishing a BTec level qualification, and a pathway for those wishing higher education, and who will do very strong science based A levels.

“A university technical college takes young people from 14 to 19 and differs from other college developments.

The curriculum is vocationally focused, although we shall deliver all the curriculum stuff in science areas.

Once learners reach 16 to 18 our curriculum is aligned to employer needs with opportunity of embedded workplaces with employers.

“Their curriculum day is focused on the journey they are on. This, then, isn’t a college because entrants are coming in at 14. So it’s a school, but with a slightly different purpose and focus.”

Future investment is planned to further develop the Institute of Automotive Manufacturing and Advanced Practice (AMAP). Change has also come to Sunderland’s pharmacy school, which dates back more than 100 years, though the university itself has only existed since 1992; the four year study course in pharmacy is moving to five. Sunderland Software City is one of the university’s innovations worked out a few years ago with the city council. n

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IN BRIEF All relevant to business

Brains behind the big hi-tech territory

Durham University Business School has been long noted for its Small Business Research Centre (formed over 40 years ago). Many entrepreneurial training programmes are based on principles developed from a Durham template. A new ‘mini-programme’ in entrepreneurship, open to all Durham undergraduates, was successfully launched in 2013-14 and has since featured as a case study in Lord Young’s report Enterprise for All, about making education relevant for young people, businesses and the national economy. For postgraduates there is on offer MSc management (entrepreneurship), to supplement modules such as entrepreneurship, new venture creation and small business management already available as part of a global MBA. The redesigned courses are taught mingling case study and experiential methods and interaction with entrepreneurs. External sponsorship has been agreed for a programme to enable outstanding student teams to develop their skills and take their ideas on. It also provides financial support for taking ideas forward.

Newcastle University partners Newcastle City Council in creating Science Central, the city centre’s new £250m district. The vision is for a global centre for urban innovation and sustainability, where appropriate technologies will be tried out. Included in the development will be a low carbon energy centre, a unique £2m grid-connected energy storage test bed and smart grid network allowing an introduction of new energy sources. Industry partners include Siemens, Red Hat, Northern Powergrid and Northumbrian Water.

The university, as a member of the Russell Group representing 24 leading UK universities committed to maintaining best research and unrivalled links with business and the public sector, has its business school in the top 1% of business schools worldwide. More than 53% of the school’s 3,000-plus students are international. The 2014 UK Research Excellence Framework ranked the university as a whole at 16th for global research power, and both the triple accredited business school and the university as a whole recently strengthened its footprint in London with the opening of the university’s new campus there, the official ceremony performed by Princess Eugenie, herself a graduate of the university. Besides providing full and part-time undergraduate and postgraduate studies for the students of many nationalities, the new campus serves executive and professional development programmes.

Where SMES could score Many small businesses think big but still act small in attitudes to marketing skill and customer insight, it was suggested at Newcastle University Business School during a meeting of the Chartered Institute of Marketing. Steve Woolley, CIM’s external affairs manager, presenting main findings from a nationwide check by his organisation, warned: “SME growth could be at risk from lack of skills to ensure the marketing and customer insight that lies at the core of business planning.” A majority of SMEs appear to be in it for the long term, but agency use tends to be ad hoc rather than a partnership approach.

Popularity of the North East as a conference venue and a holiday destination is steadily rising as the people working to promote it step up the variety of attractions

MAGAZINE

G N I C N E R CONFE ALITY T I P S O H AND

In demand: conferences and events for a variety of national and international businesses and associations contribute greatly to the regional economy

We’ve had a ball all right Sport, air displays, pop concerts and half marathons all mean big business. A feast of rugby played in two codes has set goalposts for future visitor business in our region, Sarah Stewart suggests

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What a fantastic year for the region, with Newcastle as host city for Rugby World Cup 2015 a particular highlight.

More than 150,000 people attended the three matches at St James’s Park, giving hotels 99% occupancy on match days. Thousands of national and international visitors enjoyed the world-class attractions and experiences on offer across the region, injecting an estimated £43m into the local economy.

A unique aspect was Conversion Festival, a nine day celebration of rugby, arts and culture created by NewcastleGateshead Initiative’s festival team. With street entertainment and a spectacular finale event in the Fan Zone, a vibrant atmosphere was created. We’ve also seen Magic Weekend, the Westfield Health British Transplant Games, the Tour of Britain, Durham Lumiere and the hugely successful Great North Run, all held across the region during 2015. The debut of Rugby League’s Magic Weekend brought a welcome influx of visiting rugby fans and families. More than 67,000 attended the games over two days, boosting again the visitor economy; around 80% of fans travelled from out of region. As a result, its return to Newcastle in May 2016 is highly anticipated.

The experience of hosting Rugby World Cup 2015, Magic Weekend and Westfield Health British Transplant Games has reinforced our commitment to bring more major culture and sporting events to NewcastleGateshead and the wider North East. Such events provide a platform to showcase the region to visitors and businesses, inspiring them to return in the future. Looking ahead, we’ve teamed up with Transplant Sport UK and MLS Contracts in expressing interest to host the World Transplant Games in 2019. A host of regional stakeholders and partners including Newcastle City Council, Gateshead Council, Newcastle Hospitals NHS Foundation Trust and Newcastle and Northumbria Universities, joined us in putting together our bid, which could bring participants, their families and supporters here from around the globe.

Culture events have also gone from strength to strength.

Our Juice Festival and Winter Festival attract growing audiences and Enchanted Parks, the annual after-dark light trail around Saltwell Park, delivered in conjunction with Gateshead Council, sold out within three days. It shows the continued demand for cultural events in the region.

And 2016 will bring the start of a live spectacular, Kynren: An Epic Tale of England, at Bishop Auckland. This will be a highlight for the region. Business conferences and events continue to contribute significantly to the regional economy, with a variety of national and international businesses and associations looking to host their events here. This autumn we helped bring four medical and health conferences to NewcastleGateshead. This provided a combined economic boost of £800,000. We foresee further growth in this sector. The economic value of conferences and meetings secured by NGI’s convention bureau for 2016 is up 50% compared to 2015. Included within these is the British Academy of Management meeting here during September 2016 for the 30th annual conference, with 900 delegates from around the world. Recent data estimated more people (17.6m) visited NewcastleGateshead last year compared to 2013, contributing £1.42bn to the local economy. Significant growth is seen in the value and volume of overnight visitors, contributing £439m to the economy.

We’ve seen some fantastic achievements and highlights in 2015 and I look forward to building on this success as we continue our work to change perceptions, attract visitors and investment and drive economic growth in and around NewcastleGateshead. n

Fantastic attractions on offer The British Academy of Management, holding its 30th annual conference at Newcastle University for 900 delegates from more than 50 countries next September, is the leading authority of academic management in the UK. It supports and represents a community of scholars and engages with international peers.

Monika Narvy, the academy manager, says: “We were really impressed by the varied, vibrant offer of Newcastle and delighted to find all the facilities and services we need for our conference at the university, alongside the fantastic cultural and leisure attractions on offer to delegates.”

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Altogether now, pull them in Tourism bodies from across the North East are now working together, advancing the region’s visitor attractions internationally. They are supported in this with a share of £10m from the Government that has been apportioned to growing the value of the visitor economy throughout the entire North of England.

It is hoped 3,280 more jobs across the North will result.

Presently tourism represents 84% of the total UK visitor economy, is worth £106bn, and supports 2.6m jobs.

A Northern Tourism Alliance has assembled the region’s tourism bodies to work together.

In the North East, NewcastleGateshead Initiative (NGI), Visit County Durham and Northumberland Tourism have joined with the councils of South Tyneside, Sunderland and North Tyneside – as well as other tourism bodies – and it’s these that are now involved in driving a Northern Tourism Growth Fund (NTGF) programme of activity covering the North East, Yorkshire and Humberside and the North West.

This campaign is led by VisitEngland, working with VisitBritain, and last summer a campaign was held to draw in new visitors from the US. Led by NGI, it promoted the North East as a gateway to the North, highlighting the United Airlines flight between New York and Newcastle, expected to resume in 2016. Four leading North East hotels are targeting American tourists - Lumley Castle, Matfen Hall, Rockliffe and Seaham Hall all working together through UK Trade & Investment (UKTI) in New York. Other countries targeted through the fund are Australia, New Zealand and China, also Germany and the Netherlands which, with the Republic of Ireland, have previously been the main sources of business.

A sum of £300,000 has also been set aside in the hope of finding an operator to restore the ferry link between Bergen and North Shields, a ‘best port of call’ award winner. With around 50,000 cruise passengers now visiting the North East the time could be ripe with major attractions such as Alnwick Castle and Garden, Durham’s

castle and cathedral, Northumbrian castles, Hadrian’s Wall, Holy Island, Beamish Museum and Durham’s dales.

Special attractions coming include the Tall Ships visit to Blyth in 2016 and Sunderland in 2018. If Sunderland succeeds with a bid to become Britain’s City of Culture in 2021 that would be further opportunity to build on the recognition already created by the annual Airshow, the biggest annual free spectacle of its kind in Europe.

The Stadium of Light in Sunderland on 18 June will host a return visit to the region of singing superstar Rihanna.

Sunderland being one of only six UK places to host her coming tour. The stadium has hosted Take That, Oasis and Bruce Springsteen among others. Musical tourism is estimated to earn around £78m a year for the North East, drawing in over 360,000 fans from outside the region. The broader culture offering looks set fair too. The region’s 15-year-plan for boosting its offering of heritage and culture has been praised as “ambitious” by Culture Minister Ed Vaizey. Sarah Stewart, NGI’s chief executive, says: “The growth fund has given the North East and the wider North a valuable chance to strengthen the profile of our many varied and diverse destinations to potential new international audiences, and to deepen our relations with each other, and with our local tourism businesses and travel partners.”

Representatives from Sunderland City Council and NGI have already joined their peers from other Northern destinations at events in Chicago to promote the North East to corporate buyers and meetings planners. NGI also joined VisitEngland and a team of destinations from across the North at IMEX America, which attracts thousands of conference organisers and exhibitors from across the US and beyond. Visit County Durham attended a media event in the Netherlands with other partners in November. It also has the task of ensuring the North East’s most attractive assets are showcased as part of the full North of England offer. Chief executive Michelle Gorman, says: “Activity

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delivered by the fund focuses on history, countryside and modern cities. With more than 2,000 years of heritage (from Roman Britain to the Industrial Revolution), two Unesco World Heritage sites, a National Park and Areas of Outstanding Natural Beauty across our coast and countryside - plus a cultural rebirth reinvigorating our towns and cities, the North East has an attractive and diverse offer.”

Representatives from South Tyneside Council and NGI are also steering and driving activity. Councillor Alan Kerr, deputy leader of South Tyneside Council which can promote a strong Roman presence, says: “South Tyneside has a lot to offer.”

The £10m of central funding has match funding from partners in the public and private sectors, giving £20m in all, hopefully to draw tourist spending from 2m more additional visitor nights in North of England stays. Selling points include the area’s compact nature suited to three, five and seven day visits, and value for money in the area.

Northumberland has recently seen tourist numbers at their highest since 2009, and Jude Leitch, director of Northumberland Tourism, says: “The North East is a fantastic and diverse region waiting to be explored and we welcome any chance to facilitate this.” Councillor John Kelly, portfolio holder for culture at Sunderland City Council, says: “Statistics show tourism in Sunderland is strong, with increases in visitor spending, jobs in tourism and visitors.”

Professor Tom Mordue, of Newcastle Business School, feels a financial vacuum remains even now compared with amounts of public money that the now defunct regional development agency One North East once had to develop tourism. He wonders whether a greater role now exists for the private sector in partnership with other tourism interests and expertise. n

Crowd puller: superstar singer Rihanna will have big influence on the region’s earnings from musical events during 2016

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Where the quality’s found The regional visitor economy is now worth around £3.9bn. It employs 55,000 people in the North East, with an additional 730 jobs created over the past 12 months.

Results of the latest North East England Tourism Awards indicate the expansive provision for business and holiday visitors. Gold award winners included: • Business Tourism - Event Durham, Durham University • Large Hotel - Rockliffe Hall • Taste of England - Martineau Guest House • Self-Catering Provider - Blacksmith’s Cottage • Small Hotel - Seaham Hall and The Morritt Country House Hotel & Spa • Tourism Pub - Bamburgh Castle Inn • Tourism Experience - Magna Carta and The Changing Face of Revolt, Durham University • Visitor Information Provider - Morpeth Tourist

Information and Craft Centre • Tourism Event - Festival of Thrift • Large Visitor Attraction - Seven Stories, the National Centre for Children’s Books and Beamish, Living Museum of the North • Small Visitor Attraction - Kielder Observatory Holiday Park/Holiday Village - Leaplish Waterside Park (Northumbrian Water) • Access for All Tourism - Sage Gateshead and GOTH and NUFC and Sodexo Prestige Venues and Events • Bed and Breakfast/Guest Accommodation - St Cuthbert’s House • Sustainable Tourism - St Cuthbert’s House.

National awards have also gone recently to Vindolanda Roman fort and its neighbouring attraction the Roman Army Museum at Greenhead, and also to Raby Castle and Beamish Museum in County Durham. n

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IN BRIEF What, yet more hotels?

Hotels continue to spring up at a mesmeric rate in Newcastle, named the UK’s favourite city in The Guardian’s 2014 travel awards. Openings in 2015 included the 251 bed, four star Crowne Plaza in the commercial quarter developing behind Newcastle Central Station, a 222 bed, German boutique hotel, Motel One at High Bridge, and the 160 room Hampton by Hilton Hotel opposite the station’s new main entrance. The latter is the first Hampton property in Newcastle and the 14th in the UK. Meanwhile Interserve’s conversion of the art deco building once the Co-operative department store on Newcastle’s Newgate Street is emerging as a 148 room Premier Inn with retail outlets. And Gainford Group, which owns the Vermont Hotel and visitor apartments in the Quayside area of the city, plans to convert the Grade II listed Grainger House on Westgate Road into a budget hotel. Near Newcastle International Airport, plans approved for the city’s first five star hotel have been thrown into question following a blaze (arson suspected) that devastated the 17th Century Grade II listed Woolsington Hall on which it was to be based. The proposal made by Cameron Hall, entrepreneur Sir John Hall’s development firm, included 72 houses.

Presenting… Cecil B De Ruffer One of the most imaginative developments for decades is a renaissance under way at Auckland Castle in South West Durham.

City investor Jonathan Ruffer has returned to the region of his childhood with his wife Jane and, having bought £15m worth of 17th Century paintings endangered by

export from the castle, formerly home to bishops of Durham for 900 years, has now triggered the project tantamount perhaps to £100m of investment in the castle and the town itself. He is turning the castle and its surrounding lands into an entertainment centre and study centre telling the story of 5,000 years of Christianity and all religious faiths on the British Isles back to

Stonehenge, detailing how Durham became a leading seat of power in Christian England. From next May, in the spirit of a Cecil B De Mille movie spectacular, an 80 minute pageant will be regularly presented through a cast and crew of up to 1,000 volunteers whose depictions will relive among other things the occupations

by Romans and Vikings. The castle, will become a national attraction and a visitor destination particularly appealing to Spaniards and Italians through the Zurbaran paintings and Roman remains still evident there.

And the £34m plus that Ruffer has personally poured into the venture may also link with Durham Cathedral, Holy Island, Chester le Street and other relevant locations of the North East to establish a theme for holidaymakers from home and abroad. It will be another big step forward for tourism in Durham County, which has already established Britain’s biggest light show in the city itself, and which during 2015 attracted 25,000 visitors from a number of countries to its anniversary exhibition built around a 1216 copy of the Magna Carta in the cathedral’s possession.

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Teesside hotels uplifted

Refuge from the marching legions A multi million pound investment creating the biggest ever construction project in a UK national park will raise the image of Hadrian’s Wall.

The Sill, a national landscape discovery centre representing a £14.8m initiative, is still in the making but already has won for the team behind it Planning Permission of the Year accolade at the 2015 nationwide Planning Awards.

Tony Gates, chief executive of Northumberland National Park Authority, says: “The Sill’s main purpose is to open up Northumberland National Park and the surrounding areas to more people, helping them learn about and explore one of Britain’s finest landscapes.

“It will be open all year, offering a wide range of facilities including YHA accommodation, exhibition space, retail facilities and a café and restaurant.

The Sill will, I believe, change how we as a national park authority do business and it will become a landmark asset for Northumberland and the North East.“ The centre promises 100 jobs after it opens fully in summer 2017.

One senses it’s time that established attractions of Teesside and Cleveland were more actively promoted, particularly since the the hotel offer there has recently been doubly improved. That has come about with refurbishment of almost half a million pounds for Gisborough Hall, and with the successful resuscitation of Crathorne Hall Hotel that might easily have been lost after a serious blaze. The four star Gisborough Hotel in Guisborough, with a two AA Rosette restaurant, spa, 71 bedrooms, bar and bistro has refurbished 39 bedrooms, its ballroom, drawing room and inner hall. The Grade II-listed country house was fully restored in 2002 at a cost of more than £10m by the Gisborough family, who own the hotel, now a Macdonald Associate enterprise. Gisborough Hall, built in 1857 and employing 105 staff in the business there, is geared for corporate events. Crathorne Hall hotel near Yarm is a prime example of Edwardian architecture and design, providing homely hospitality. Built and owned by the Dugdale family until 1977, and formerly owned by the present Lord Crathorne, it has in its time hosted queens, lords and diplomats. One of the top 200 hotels in the country, its achievements include four Red Stars for quality and service. More than 100 firefighters battled the blaze which damaged the Ormesby wing. Some £4m of restoration work was subsequently carried out at the hotel which employs around 90 staff. It is run by Hand Picked Hotels, which has 21 hotels across the UK and Channel Islands. Teesside’s urban offer now includes the Holiday Inn Express Middlesbrough, sprung from a once disused property, and run by the UK’s largest independent hotel management company, Redefine|BDL Hotels, which has around 70 properties under its wing.

‘Away from it all’ appeal Opportunity to promote Northumberland as a county of intimate rural hotels of superior standard is steadily growing. The 27 bedroom Percy Arms Hotel at Otterburn, which closed in 2012, is to take on a Mediterranean appearance, with a Mediterranean garden. Entrepreneur Duncan Fisher and his leisure company Newton Hall Northumberland Ltd have acquired the hotel near the Scottish border, and on completion the venue will be able to accommodate up to 160 guests for dinner and up to 200 for receptions. Le Petit Chateau, employing 60 staff, is expected to have standards similar to those set by the multi-award winning Newton Hall, its sister hotel, which employs 73 staff at Newton by the Sea. Also at Newton by the Sea, Fisher has The Joiners Arms gastro pub. His other interests include The Apartment Group of restaurants and bars across the North East. The Otterburn hotel is expected to be open by April 2016. Elsewhere in the county, The Parker Collection now has three venues suited to intimate corporate wants. It has the four Red star recommended Doxford Hall Hotel at Chathill, near Berwick.

It also has the boutique style Eshott Hall at Felton, near Morpeth. And it has Guyzance Hall, a 19th Century country house converted near Warkworth. The privately owned 53 bedroom Matfen Hall Hotel, near Chollerford and the Roman Wall, has spent £300,000 transforming its spa and leisure attraction.

It’s an ironic world we live in when vulnerable people in the most deprived parts seem the ones most likely to lose out in getting support

MAGAZINE

GIVING BACK

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The going for support gets tougher Poor areas four times more likely to have lost out than richer parts There are now some 6,900 third sector organisations (TSOs) in the North East – nearer 15,000 if you include smaller grassroots bodies. And pressures are mounting still on voluntary groups working with vulnerable people in the most deprived parts of the region. Although a majority of groups are keeping income levels stable and, in some cases, even seeing some rises in income, the picture is uneven across the region. Those working to raise money in poorest areas are four times more likely to have lost significant levels of revenue in the last two years when compared with the richest areas - 30% compared to 7%, with the medium sized worst hit. This position emerges in the last report from the Third Sector Trends Study, which examines the voluntary and community sector in the region over five years to 2014. This final report, funded jointly by Northern Rock Foundation and the Community Foundation (Tyne & Wear and Northumberland), shows the voluntary sector has largely part-managed to sustain its work, despite the enormous challenges and funding pressures.

At a time when grants are diminishing through the expected closure of Northern Rock Foundation, reliance is increasing on grants, rather than contract income. It looks as if only larger organisations are able to be involved in delivering public sector contracts.

Breakdown of TSOs is as follows: • Less than £50,000 income: 57% of total (but not including below the radar organisations) • With £50,000 to £250,000: 23% • With £250,000 - £1m income: 13% • Largest income, over £1m: up to 7% Third sector organisations are important to employment.

They give around 36,000 people full time equivalent jobs – about 3.1% of regional employment. They are complemented by 149,000 volunteers.

Rob Williamson, (pictured), chief executive of the Community Foundation says: “With Northern Rock Foundation’s expected closure, the Community Foundation is working with it and others on ways to address the sector’s needs.

“One area of particular focus, especially given these findings, will be continuing to build funder relationships perhaps bringing more resources to the region from London and elsewhere. We also hope to be able to enable research on the sector to be maintained in the future.”

Northern Rock Foundation has been a charity foremost in tackling disadvantage and improving quality of life in the North East and Cumbria. Established in 1997, it was until 2007 funded through a covenant from Northern Rock bank to provide 5% of pre-tax profits.

Following the bank’s collapse, its funding position and future became uncertain. Then it was announced no further funding would be available. The foundation closed its grant programmes at the end of last year and, during 2015, has made a series of final legacy awards. Its closure is likely to be confirmed during 2016.

Virgin Money, which acquired ‘the good part’ of Northern Rock bank, and which is becoming one of the new banks challenging the ‘high street establishment’, is making £8m of funding available presently – half put up by itself and half of it being a matched by government. But Edward

GIVING BACK www.bqlive.co.uk

Wakefield, chairman of Virgin Money Foundation’s trustees, has made clear that while North East applications will be considered, the £8m will be spread wider too. It recently awarded £900,000 within the region. Ironically, the original foundation was set up to ringfence Northern Rock bank against any takeover - a ringfence that was easily torn down when tested. Impact such as the Northern Rock Foundation could make is exemplified in its recent £5m commitment to improve children’s literacy in the North East. It has awarded a £5m grant to the Education Endowment Foundation to create a £10m project over five years. The North East has twice as many disadvantaged pupils as the national average. Almost two in five primary school pupils are classed as disadvantaged twice as likely to begin secondary school struggling to read and write.

Jackie Fisher, trustee of Northern Rock Foundation - and the first appointed member of the advisory board in this project - says: “Evidence shows that children who do not read well by age 11 have significantly less chance of achieving good GCSEs and of moving into work. We hope this programme will help break this cycle.”

So clearly any reduction in ‘giving back’ can represent a threat to the region’s efforts to raise skill levels to the benefit of business. The Education Endowment Foundation, by the way, is a charity set up in 2011 by the Sutton Trust as lead foundation partnering Impetus Trust, with a Department for Education grant of £125m. It is set on breaking links between family income and educational achievement. Since its launch, the foundation has awarded £57m to 115 projects, working with more than 700,000 pupils in over 6,200 schools across England.

Meanwhile, Community Foundation, Tyne & Wear and Northumberland continues its work as a hub for individuals, families, businesses, and other charities wishing to give to communities. It matches their interests with those seeking funding.

It provides help for children and older people, people affected by disadvantage and ill-health and those seeking education and work, providing grants also to support the arts, the environment, community activities and amateur sport. The Newcastle-based charity is the UK’s biggest Community Foundation with an endowment of more than £67m from donations to the funds it holds. n

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Sharing in discomfort One of the more unusual ways directors give back personally is seen on Teesside, where chief executives take part in a regular sleepout. Fending off the cold with a sleeping bag and warm clothing, they have raised about £60,000 in six years. It’s one of a number of novel fundraisers run by Middlesbrough and Teesside Philanthropic Foundation. The money goes towards helping homeless people and others living in desperate poverty; by stocking local food banks, supporting the Salvation Army Christmas toy appeal and helping give perhaps 120 people at a time a Christmas day lunch. This foundation during 2015 carried through a combined achievement involving nearly 40 Teesside businesses (including Middlesbrough Football Club) and individual patrons. They raised £10,000 through a Goalden Giveaway Fund. Funding applicants receiving most support in a public vote got £2,500 and a visit by stars from the football club. The balance was shared around other good causes. Mastermind in this fight against poverty and homelessness across local towns is Andy Preston (below), who quit work in the City in 2005 and moved to Middlesbrough, where his wife is from. Besides running now a hedge fund, Green Lane Capital, and a property investment and development business, he was North East chairman of Fairbridge Teesside (2006-10), and headed Ark children’s charity (2003-8).

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IN BRIEF Making a big difference Two decades of co-ordinated giving through County Durham Community Foundation were notched up during 2015. Its achievements have included Learning, Working, Earning, which provides job opportunities for individuals. It has also backed projects in public health, education, parenting and environment.

The charity was founded by the county’s former lord lieutenant and head of Vaux Breweries Sir Paul Nicholson (who remains president, his wife a trustee) and David Grant. It was supported initially with funding from two noted philanthropic sources, the Barbour clothing company and housebuilder William Leech.

Sir Paul told The Journal: “Many of the grants are for modest amounts of money but they make a big difference to lives.”

“Many of the grants are for modest amounts of money but they make a big difference to lives”

Doors open at house of kindness Philanthropy House – that’s the name for a new home of giving within the region. Formerly known as The Old Chapel, it has become the base for the Community Foundation Tyne & Wear and Northumberland, which now owns it. Sharing the address in Gosforth, Newcastle, are Northern Rock Foundation and the Shears Foundation. The building first opened in 1882 as the Emma Robson Memorial Church, part of an expansion of Methodist membership in Newcastle. In 2001, the church was bought by Northern Rock Foundation and converted to offices and meeting space. Last year, as the first of a number of legacy awards, Northern Rock Foundation made a grant to the Community Foundation towards it purchasing the building. Remaining costs of purchase were supported through a gift to the Community Foundation from its patron, Lyn Shears, in memory of her late husband, Trevor Shears OBE - a passionate supporter and trustee of the foundation for six years. Besides providing offices, grantees of three foundations will be offered free space in the building for meetings and events. Ashley Winter, who chairs the Community Foundation, says: “None of this would have been possible without the support and generosity of Northern Rock Foundation and our patron, Lyn Shears. We look forward to investing in other ways to benefit the area in the coming years. We look forward to welcoming donors, partners and grantees of the three foundations to this fantastic space.” Lyn Shears, co-founder and trustee of the Shears Foundation, says: “Philanthropy House will be a wonderful home for wider philanthropic activity for years to come, including that of the Shears Foundation.” Alastair Balls, chairman of Northern Rock Foundation, says that foundation is pleased its grant enables the chapel in its new role as Philanthropy House to remain a local community asset, and a resource for the voluntary and community sector throughout the region.

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