Looking Ahead 2016

In the January / February issue of Lancashire Business View we engaged the county’s businesses, their representatives and public sector leaders to lay out aspirations and opportunities for the year ahead.

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At Napthens we are looking ahead with prudent optimism. There is no doubt that post-election we’ve seen confidence return to the marketplace and the Autumn Statement indicated that the economy performed better than expected.

Like all businesses, we’re keen to build on this positive attitude, and we have much to look forward to. The recession is still in the mind of many business owners but is beginning to fade and we are seeing a marked increase in M&A  activity which is often a good barometer of how the economy is performing.

On a regional level it will be interesting to see how the Northern Powerhouse concept will develop, but I am a firm believer that Lancashire is a powerhouse in its own right already – additional investment into the infrastructure will really help exploit the region’s strengths, which are many.

A number of sectors which we specialise in have gained significant traction and we continue to grow these teams. The firm’s Leisure, Rural, Construction and Property departments are all experiencing growth. Our Employment and Corporate teams are also in high demand – another good indicator that organisations are planning for investment and growth.

We ourselves are aiming at growth in Cumbria, where we recently announced the opening of our second office in the county, in Kendal. This will complement our presence in Penrith and give us a firm foundation for offering our full range of services to clients in the area.

At the same time we continue to develop ourselves in Lancashire as we look to acquire additional office space in Preston to house the new people we are bringing into the business.

Speaking to clients in various sectors across the region it’s clear the year ahead will bring many opportunities – it’s up to us to grab those opportunities and turn them into a successful and profitable 2016!

John Whittingslow, chief executive, Napthens

 

What are the opportunities for your business over the next year and what is the outlook for your sector?

  Danny Pinkus, partner, Robert Pinkus & co: We are seeing increased confidence in the market, so that will generate more opportunities and transactions. There’s certainly a willingness in developers and occupiers to do more business in the year ahead.

 

I think there’s definitely still caution in the market, particularly whilst banks remain risk averse, so we’re still not completely out of the woods, but there have been more isolated pockets of activity which we hope to capitalise on.

Frank McKenna, CEO, Downtown Lancashire in Business: The economy continues to grow, albeit slowly, so it will be a positive year for business. For Downtown, the political and lobbying agenda will be huge, with devolution, EU membership, business support and a whole range of legislative changes impacting on the private sector up for discussion. But it is in the area of sales that we can directly impact on local companies. If you want to connect with new customers, you’ll be joining Downtown in 2016. Last year saw us enjoy our biggest recruitment drive of members ever in Lancashire.

  Jane Parry, managing partner, PM+M: We see great opportunities over the next year.  The outlook for our sector is challenging, but for well run, efficient firms focused on giving exceptional client service and value for money there are significant opportunities to increase our client base.  Many Lancashire businesses are continuing to face tough times and are looking to firms like ours to support them with great advice whilst helping them control their compliance costs as accounting changes come into effect, as well as tax and pension changes.  Our challenge is to keep abreast and ahead of these and advise our clients on them.

 John Lonsdale, director of innovation and enterprise, UCLan: Productivity can be improved through innovation, adoption of new technology and application of new knowledge. Developing people is the key to achieving these things, so demand for education will remain high and universities will continue to play a key role in making Lancashire a desirable place to work and live. The challenge will be to ensure we support our key sectors while at the same time allowing new sectors to take root. Initiatives like our forthcoming £30m Engineering Innovation Centre are being put in place specifically to meet the demand for skills and support in engineering and manufacturing in the region.

Caroline James, senior partner, Trevor Dawson: We expect the property market to improve across all sectors in the next twelve months, as it has during 2015.  There is particular pressure in the industrial sector where lack of delivery of new buildings is beginning to have an effect, and we must continue to seek opportunities to feed the market. This must come not only from the private sector, but also the public sector who are very aware of the importance of delivering sites, particularly those that can be procured for commercial use.

Ruth Connor, chief executive, Marketing Lancashire: Tourism in Lancashire has been in growth for the last six years and a new Visitor Economy Strategy launches in 2016, aiming to grow current visitor numbers from 63 million to 70 million, spend from £3.6bn to £4.3bn and jobs from 56,000 to 61,000 over the next five years. Our opportunity is to continue to work in partnership with both the public and private sector to achieve growth, in particular in short breaks and overnight stays.

John Stanworth, head of business and corporate banking, Barclays Lancashire: We are very much driven by the needs of our customers - at present, there is a degree of cautious optimism with increased investment being seen in new technology and automation with a number of customers looking to expand their business both organically and through acquisition. There are challenges that remain around skills and workforce with improved infrastructure also on the agenda. Access to funding remains on the list of priorities and we will continue to lend responsibly, assisting the Lancashire economy to grow.

 

What does the Northern Powerhouse mean to you and what are your feelings on Lancashire devolution?

  Tim Smith, business growth consultant, Mayes Accountants: As one of the 44 per cent who are aware of the Northern powerhouse I am in favour of the region having greater control of its economic destiny. However it cannot absolve central government of its responsibilities to the region and tackling the growing economic and social divide between the North and the South

 Michael Ashworth, managing director, Nublue: I think the Northern Powerhouse initiative can only be of benefit to Lancashire, especially with the resulting trade and investment I believe will come with it. With the introduction of high-speed rail we’ll see increased mobility for local professionals and businesses, more integration with the south and hopefully more growth opportunities for Lancashire companies as a result. I’m also all for greater autonomy which would come with Lancashire devolution. I think it’s entirely possible to be more integrated with the south but still retain our identity and gain greater control over the way things are run closer to home.

  Simon Brooke, director of strategy, Happy Creative: The Northern Powerhouse has the potential to give our region the clout it deserves in economic terms.  The question remains for me in the detail and ensuring strategic thinking across the Northern city power bases.  For Lancashire this will mean ensuring county squabbles are put aside in favour of a business-led approach.  Lancashire devolution could work but will only do so if priorities reflect the mix across the whole region and there is a collective effort to renew the pride in this county.

Diane Bourne, managing director, Eric Wright Civil Engineering: The North has made its voice heard in Westminster and as a collective group our cities have the same capacity and determination to compete with London when it comes to civil engineering works. Northern transport investment has already seen us appointed to a number of multi-year road and rail infrastructure frameworks.

 In regards to Lancashire receiving the green light on devolution, I believe it’s a move that would capitalise on the strength of the county and be a huge driver for economic growth and investment, by handing power back to those who know how to use it best.

 Chris Taylor, director, Cassidy + Ashton: The Northern Powerhouse has focused attention on the north and we’re now getting more interest from developers and investors who are beginning to look outside of the M25.

Any investment into the north is good news and better transport links with other northern cities will be a great help as it seems nonsensical that it’s quicker to get to London than Newcastle. In terms of devolution, it will enable us to be in control of our own destiny, which will be particularly beneficial with regards to planning regulations because we won’t have to deal with multiple authorities.

 Ryan Henderson, director, EDS Group: Any investment in the North is a good thing, which is what I understand the Northern Powerhouse is set to promise- more economic support to help bridge the north-south divide to ensure better infrastructure, connectivity and opportunities. Yet more needs to be done to better communicate what the Northern Powerhouse actually is, as I don’t think many businesses are aware of what the initiative will mean for them. As for Lancashire devolution, it will give the county more control for sure, however in our industry especially, a more united approach is often more beneficial.

Richard Robinson, head of Corporate, Napthens:  Where the concept of a Northern Powerhouse is helpful is the opportunity to show that the Lancashire economy is distinct from, for instance, the Manchester economy, giving our own economy greater recognition.

Lancashire is under-represented in cabinet positions in government, which could put us at a disadvantage. Greater recognition and investment in infrastructure and the local economy will bring inward investment and opportunities for this area and increased access to other parts of the country.

Lancashire’s local government is too fragmented and it would be beneficial to have greater devolution to single body. We need to have a unified voice in Lancashire, bringing all local authorities together in a more cohesive way in order to manage the challenges and opportunities more successfully.

 Richard Manley, director, Seneca Partners: I think the strategy to make the North an economic force that can compete with London and the South East is compelling, particularly if its delivery is to be driven by increased devolution to local authorities, such as Lancashire, and increased investment in science, innovation and transport links.  All of these are key drivers of economic growth in the region and as a financial investment and advisory business we welcome a strategy intended to increase the prosperity of the region in which we all live and work.

Mike Holman, executive director, BNI: I’m a Southerner, so it’s something I watch quite closely. I’ve been here 15 years now and I think it’s about time that businesses in the North West get the recognition they deserve.

I’m very fortunate to work with a lot of them and the passion and commitment they have to succeed and help the communities they work within is unrivalled. It will be great to help put a spotlight on what these guys are doing.

John Kersey, chairman, IoD Lancashire:  The Northern Powerhouse doesn’t mean much for my business, but as a region, it’s a great opportunity for Lancashire to grow, if we combine with Manchester and Liverpool like proposals are saying. I think devolution would be good, but if local councillors don’t step up and accept local responsibilities, devolution won’t mean much. If we are to be devolved and accept responsibility, we have to make the big decisions count for our region.

What will your business do differently in 2016?

  Frank McKenna, CEO, Downtown Lancashire in Business: We are revamping our website for the second time in as many years, accompanied by an aggressive social media strategy that will offer access to Downtown through many platforms. We have always been keen to collaborate and partner with others when it makes sense, and we’ll be doing more of that. The events programme we have planned for 2016 is our most ambitious yet.  We will be at the forefront of the devolution debate and we want to focus on female enterprise in a way that we haven’t done before. It’s going to be a really exciting year.

 Jane Parry, managing partner, PM+M: We will continue to grow and develop our people and work hard to impress our clients.  We will be focusing on improving our processes and efficiencies, looking at innovative ways to use technology.  We also plan to open a third office to allow us to widen our coverage across the region.

  Ryan Henderson, director, EDS Group: We’re keen to support the upskilling and development of our people, as well as recruit new engineers to the team from the region. We’re also looking to further progress our turnkey offer which, from design to connection, testing, commissioning and operations, we work closely with clients providing engineering services 24 hours a day, 365 days a year.

 John Lonsdale, director of innovation and enterprise, UCLan: We are facing a changing competitive landscape, with changes to funding and competition. We are focussing on delivering a great student experience and education, trying to make sure that our graduates have great career prospects. We are doing this through constant review and evaluation of our courses, new student support systems and a constant engagement with industry to make sure we stay connected to employer needs. Our new centre for SMEs is just one example of how we are doing that, engaging even more with businesses and making it easier to access our courses, services and students.

  Diane Bourne, managing director, Eric Wright Civil Engineering: Our focus for the year ahead is to build on our reputation as a leading force in the north to one that spans the entire UK.

Skills is an area we need to address in 2016, as the shortage of available talent continues to affect our sector. Our partnership with Preston’s College will come to fruition in the year ahead, which, following the recent launch of our new construction skills centre, will give us direct access to work-ready contractors.

  Chris Taylor, director, Cassidy + Ashton: There’s been a definite shift in the scale of projects we have been awarded during the last 12 months, so we will be more selective about the projects we undertake, specifically less small-scale residential work.

We will target more high profile schemes and also advance our commitment to Building Information Modelling (BIM) in order to streamline delivery and capitalise on forthcoming projects. In April 2016 BIM will be mandatory for anyone involved with a UK Government development; however we will continue to introduce this collaborative way of working with contractors, structural engineers and mechanical and electrical consultants into the majority of our projects.

  Richard Manley, director, Seneca Partners: We have a variety of business lines within Seneca and with all of these now established our focus, as we move into 2016, is to build upon the foothold each of these businesses has in its chosen market and to drive growth.  We will also continue to add to the skill set across our team by adding further high quality finance professionals to support this growth – our team is our most important asset and therefore it is crucial to our success that we continue to ensure we have the personnel on board who can deliver the investment and advisory solutions that our clients seek.

 John Kersey, chairman, IoD Lancashire:  We’re now at a point where we need to raise the profile of our business and show everyone what we do and how we do it. Quite often, for small businesses like mine, you’ve got your head down, growing your client base and don’t look at the big picture and it’s time for us to show people we have a great product and can emulate our success.

Ruth Connor, chief executive, Marketing Lancashire: In 2016 we’re going to shout even louder about Lancashire, continue to grow our public and private sector partnerships and in particular develop our new Lancashire Ambassadors programme; inviting proud Lancastrians at the top of their game to share the ‘Lancashire Story’ and take help take brand Lancashire to a wider market and greater success.

 John Stanworth, head of business and corporate banking, Barclays Lancashire: Our number one priority is to spend more time with our customers, understanding what they need and being proactive in helping them grow their business. We will do this through responsible lending, access to overseas trade or through advisory seminars on areas such as fraud and IT.  We will provide our clients with valuable insights into the economy and specialist advice on their individual sectors.

Gillian Bardin, director, Taylor Patterson: 2015 was another successful year for Taylor Patterson so we will carry on providing services which meet and exceed our clients’ expectations.

However now that we are part of Mattioli Woods plc, 2016 will be an exciting year as we look to integrate into the larger group and bring new services to Lancashire’s business community. These services will include flexible benefit solutions for smaller companies, discretionary portfolio management and specialist property investment opportunities.

Alan Frew, managing director, Community Life Choices: Mental health is an area of priority in 2016, particularly with the growing number of individuals that are turning to us for support. We’ve piloted a number of schemes in the last 12 months which assist those with complex chronic health needs and we look forward to rolling these out nationally and showcasing the innovative outcomes and successes we’re capable of achieving. Training is another area we’ll do differently in 2016. Our aim is to become a bespoke training provider and that means finding new ways of educating staff and delivering the skills they need.