Cilrhedyn Woodland Centre

Cilrhedyn Woodland Centre: A Future Options Study Prepared for: Tir Coed, Coed Cymru

Authors : Geraint Williams, Gary Newman and Graham Hilton Date: 05/09/2016 Status: Issue 1.

Resource Efficiency Services LGC Ltd. – Registered in England and Wales. Company number 08277123 Registered Address: Hen Capel, Glasinfryn, Bangor, Gwynedd. LL57 4UN

Contents Executive Summary .......................................................................................................................................................... 1 Introduction ..................................................................................................................................................................... 4 Background. ..................................................................................................................................................................... 4 WS1 Scope ........................................................................................................................................................................ 7 WS2 Case-studies on Other Business Development Models and Incubation Projects. ................................................... 8 Pembrokeshire County Council Commercial Units ....................................................................................................... 8 Key findings from the Casestudies ............................................................................................................................. 10 Critical Success Factors and Relevance to Cilrhedyn Woodland Centre .................................................................... 10 Best Practice Elements Across Multiple Casestudies ................................................................................................. 14 WS3.1 Functional and Geographical Scale ..................................................................................................................... 16 Site Constraints .......................................................................................................................................................... 16 Functional Scale – Sector Basis. .................................................................................................................................. 18 Function Scale – Services Basis. .................................................................................................................................. 19 Geographic Scale ........................................................................................................................................................ 20 Scenario Analysis ........................................................................................................................................................ 22 SWOT Analyses. .......................................................................................................................................................... 23 WS3.2 Support from External Organisations ................................................................................................................. 26 Business Wales / Business Connect ............................................................................................................................ 28 Farming Connect / Menter a Busnes .......................................................................................................................... 31 Higher and Further Education Establishments ........................................................................................................... 34 The Prince’s Trust ....................................................................................................................................................... 36 Timber Business Investment Scheme (TBIS) .............................................................................................................. 38 PLANED ....................................................................................................................................................................... 40 Summary Findings and Next Steps ................................................................................................................................. 43 Future Structure ......................................................................................................................................................... 43 Learning from other Programmes .............................................................................................................................. 44 Support from External Organisations ......................................................................................................................... 45 Proposed Next Steps ...................................................................................................................................................... 46 Appendix 1 – Casestudies ............................................................................................................................................... 47 Appendix 2. Summary of Reponses from the Pembrokeshire Show and Telephone Consultations. ............................. 61 Pembrokeshire Show ................................................................................................................................................. 61 Telephone Consultation ............................................................................................................................................. 63 Appendix 3 – 1 Page Introduction .................................................................................................................................. 67

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Cilrhedyn Woodland Centre: A Future Options Study Executive Summary Tir Coed and Coed Cymru asked Resource Efficiency Services for a broad study assessing the opportunity for rejuvenating the Cilrhedyn Woodland Centre site. This study based upon learning from other projects, the availability of external support and an assessment of the needs of the local woodland and timber based industries would aid Tir Coed and Coed Cymru in deciding whether the centre could contribute to the delivery of the two organisations core objectives.

7 Casestudies Produced Forest of Avon Products In doing so, we have considered the best practices developed in a range Groundwork Wales’s Environment Centre of community and woodland projects elsewhere and the benefits that Pembrokeshire County Council they have delivered. We have also considered the role of external St. Dogmaels Community Business organisations in delivering the widest range of benefits via the centre Sylva Woodland Centre and in turn contributing to the efficacy and long term sustainability of Wentwood Timber Centre the centre and its clients. As a result, we have been able to answer the Woodland to Workshop Course 3 following questions.

1.How other projects and programmes have been run in similar circumstances and how they could shape the future operation of Cilrhedyn Woodland Centre?

2.What would be an appropriate future structure for a rejuvenated Cilrhedyn Woodland Centre based on the business and skills development objectives of Coed Cymru and Tir Coed in the woodland, timber and environmental sectors?

3. What other support could be harnessed from external organisations to contribute to the development of future tenants at the centre?

Business Development Support Sector Specific

Market Access

Space Community Development

Skills Development Supply Chain Access

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7 Support organisation Investigated Menter a Busnes Business Wales Farming Connect PLANED Timber business investment scheme Princes Trust HE & FE Establishments

The resulting “Space+” model developed from these was used as the basis of a consultation exercise which took place face to face at the Pembrokshire show, over the telephone with companies active in the sector and through a presentation given to the Boards of Tir Coed and Coed Cymru.

These responses plus RES’s experience and network of contacts within the sector has been used to firstly produce a number of scenarios of how the centre could be developed and subsequently to assess the Strengths, Weaknesses, Opportunities and Threats (SWOT) each of these scenarios provides.

Strength

Weakness

Opportunity

Threat

It is likely that a successful development at Cilrhedyn will require delivery of a wide range of services, some of which will be specific and or challenging, based upon formal engagement with a range of clients and partners. In addition to meeting these needs and those of the core project team, we believe that the prospects of the centre will be significantly enhanced if new activities can be undertaken, particularly with reference to underpinning the supply chain. This has proved challenging in the past, but may be timely now if collaboration can be established with initiatives in other areas.

It is quite apparent, from our interactions with the project, that this study needs to lead to some prompt decisions, given both the determination of the PCNPA to define its future obligations and the number of previously inconclusive reviews. In order to inform these decisions, particularly for Coed Cymru and Tir Coed, and to fulfil the outputs agreed at the review meeting of the 30th of August, we would make the following recommendations.

1. In order to create a solid base for future development, we would strongly recommend that the site infrastructure is viewed in the same manner as an independent landlord might approach it, i.e. That the “break-even” operation of the site is the responsibility of a management organisation with a number of tenants, including the PCNPA, Coed Cymru and Tir Coed. This organisation would in turn be jointly overseen

by Coed Cymru and Tir Coed. A tenancy agreement between Cilrhedyn and the PCNPA will fix, and limit the authority’s obligations and define the outstanding “risk” to the other two tenants, who will then mitigate this risk through the full range of their activities at the site, including sales to the PCNPA (signs, furniture etc.), subletting of space, plus their other activities, discussed below 2. The adaptation and ongoing support at Cilrhedyn, including that supplied in conjunction with external organisations, should not consider just future tenants, but training clients, woodland stakeholders and customers. In addition to the external support organisations considered in the report this support should be expanded to represent wider partnerships at a local, regional and national level.

3. Cilrhedyn will require, as part of the required rejuvenation, to offer a wide range of services, in common with all the case studies reviewed, if it is to attract future tenants and to meet the business and skills objectives of Coed Cymru and Tir Coed. While other projects have demonstrated that the synergies and networks offered within a shared location can prove a key attraction, and contribute greatly to wider objectives, Cilrhedyn is starting from a very low base in terms of immediate footfall or supply chain relationships. Creating the type of networking and external trading relationships that sustain a number of the case study examples will require engagement with a wide range of partners, customers and other likeminded organisations.

In Conclusion RES would recommend that sufficient evidence exists to suggest that a successful and exciting future can be achieved at Cilrhedyn contributing to the delivery of wider objectives of Tir Coed and Coed Cymru subject to: •

Securing satisfactory terms with PCNPA for Cilrhedyn Woodland Centre

•

Generate business plan based on detailed confirmation of identified opportunities.

Recommended key next steps are summarised over the page.

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Negotiate Transfer Terms

Generate business plan based on detailed confirmation of identifed opportunities.

During which

Residual Risk mitigated by Value to Core Organisations Availability of site specific adaptation funding Short Term External Income

PCNPA

Future Value Core Organisations

Tenancy

•Tir Coed •Coed Cymru •PLANED ?

Customer

External Organisations (Local>Regional>National optimisation)

Tenants

Commercial

Fall Back Option •Reserves •Legacy •Sale

Sawmills (relocate/ consolidate or outsource)

Timber •Trecwn - direct links?

•Contractors/ Estates / Woodland Owners

Biomass (Installers and outpost PBE)

Biomass

Courses (Coleg Sir Benfro)

Products

Partner Development Woodland Heritage (RES to meet early Oct) Sylva (RES to organise CC visit early Oct)

December

Implement ?

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Subject to

Based on the evidence developed to date, RES recommends proceeding

September October / November

Introduction Wales has a strong wood culture, from its forests through a range of wood processing and products companies to the world leading wood science activities of its universities. With an increasing focus on the carbon and resource depletion impacts of current fossil fuels and building materials, wood has swung sharply into focus as a renewable resource. Nor is this a new phenomenon, with a report by RES for DEFRA identifying wood and wood products as the fifth largest manufacturing industry in the UK, and certainly one of the few characterised by domestic ownership and good growth prospects.

Nonetheless, the supply chains of the wood sector are often fragmented, and the ability of the sector to maintain consistent employment and training opportunity, and to improve the woodland resource is often stretched. Two organisations, with these challenges at the heart of their activities are Tir Coed and Coed Cymru, who have commissioned this report to establish the opportunity to develop the existing Cilrhedyn Woodland Centre in Pembrokeshire to help address some of these challenges in the area.

Background.

Tir Coed is a charity and social enterprise that creates engagement with woodlands through volunteering, training and bespoke activities that develop skills and improve woodlands for the benefit of all. Their mission is “To unlock the potential of woodlands to provide a community facility, educational and health activities, and to create job opportunities for disadvantaged individuals in rural Wales. With the aim to make positive lasting change.”

They have over the past 16 years, developed a comprehensive process that supports individuals as they develop, from first step engagement through to employment. All of the work carried out by volunteers and trainees improves the health of the woodland and its accessibility for the benefit of the whole community.

Coed Cymru is a public sector partnership organisation and charity active across the woodland and wood products sector in Wales. They act: • • • • •

as a provider of free and impartial help, advice and training; to promote co-operation between woodland owners, woodland contractors and timber users to develop timber products and markets to ensure that broadleaf woodlands have a firm economic base which will ensure their continued management. as an advocate for broadleaf woodland in Wales and as a catalyst to bring about environmental, economic and social benefits through sustainable woodland management.

Resource Efficiency Services LGC Ltd (RES) is a small independent consultancy dedicated to increasing the efficient use and re-use of natural materials. We have a longstanding record of delivery in the fields of forestry, forest products, bioenergy, carbon, sustainable construction and product innovation providing pragmatic, concise and deliverable solutions to the tasks we perform. RES provides a range of advisory and support services to a wide range of public sector, third sector and private businesses with special focus on achieving large and rapid reductions in carbon emissions whilst at the same time providing sufficient resources to satisfy the explosion in global demand.

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Cilrhedyn Woodland Centre (CWC) is a facility in North Pembrokeshire which is owned and operated by Pembrokeshire Coast National Park Authority (PCNPA). The facility is currently used as a base and storage site by park rangers from PCNPA and also contains a timber processing workshop.

The 2-acre site was purchased from an adjacent farm complex in 1994 as part of a restructuring of the farms operations and the site layout and facilities available on-site are shown below.

2 Acre Site Boundary

Buildings : Log yard Main Building (c 750 m2) • PCNPA Offices • Hygiene Facilities • Additional Office Space • Sawmill o Primary Saw o Second Cut Saw o Crosscut Saw o Sanding Machine o Kiln • Workshop currently making gates and signposts o Various Manual Controlled Machining Equipment Air Drying Shed (c 250 m2)

Currently the centre is significantly underutilised with the exception of the PCNPA rangers office. The primary saw is currently inoperable and with only relatively limited output from the manufacturing facility the costs of maintaining the centre in its current form have become prohibitive. If a robust proposal for managing the centre effectively can be produced by Tir Coed and Coed Cymru, PCNPA has offered to lease the centre to them for a peppercorn rent. This joint study has been commissioned by Tir Coed and Coed Cymru with funding from PLANED to examine the opportunities offered by the centre for the benefit of the woodland, forestry and wood product sectors in the region.

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Consequently Tir Coed and Coed Cymru have asked for support for a broad study investigating: 1. How other projects and programmes have been run in similar circumstances and how they could shape the future operation of Cilrhedyn Woodland Centre.

2. What would be an appropriate future structure for a rejuvenated Cilrhedyn Woodland Centre based on the business and skills development objectives of Coed Cymru and Tir Coed in the woodland, timber and environmental sectors.

3. What other support could be harnessed from external organisations to contribute to the development of future tenants at the centre.

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WS1 Scope A scoping requirement from Tir Coed and Coed Cymru for a study on the future of Cilrhedyn was developed further during a workshop with RES held at the Woodland Centre on 7th July 2016. This followed an initial investigation by RES into relevant case-studies and options for consultation with partners and potential stakeholders.

The original scoping criteria and the amended scope agreed following the Project Workshop on 7th July 2016 are shown in the table below.

Aligning to local needs:

Examples and Structures:

Obj. Original • Research case studies and similar models of business incubation that have proven successful.

• Investigate associated: o Pitfalls/issues o Good working models o Costs to running the project o Measuring impact and success o Financial sustainability within the incubation model and funding

• Identify a geographical and functional scale.

• Identify and interview secondary partners (signposting to further opportunities) o Menter a Busnes o Business Wales o Farming Connect o PLANED o Timber business investment scheme o Princes Trust o Coleg Ceredigion (Cardigan) • Identify local businesses and carry out consultation to ascertain the ‘needs’ of their business.

Agreed Scope From 15 casestudies presented by RES at the workshop the following shortlist will be developed further: • Forest of Avon Products • Groundwork Wales’s Environment Centre • Pembrokeshire County Council • Sylva Woodland Centre • Wentwood Timber Centre

alongside the following projects proposed by Tir Coed and Coed Cymru • St. Dogmaels Community Businesses • Whitney Sawmills / Woodland Heritage – Woodland Workshop Courses • Identify a geographical and functional scale.

• Assess signposting services available from secondary partners for business and training support. o Menter a Busnes o Business Wales o Farming Connect o PLANED o Timber business investment scheme o Princes Trust o Coleg Ceredigion (Cardigan) • Review current Coed Cymru business consultation questionnaire and merge RES developed company list with Coed Cymru’s.

• Review findings from Coed Cymru’s business consultation • Prepare display information for a display layout to be presented at the Pembrokshire Agricultural Show 16-18 Aug for further consultation on Cilrhedyn’s future.

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WS2 Case-studies on Other Business Development Models and Incubation Projects.

Case studies of seven projects, each aimed at stimulating development in the rural and forestry business sectors have been produced. These are included in full in Appendix 1.

The projects were chosen to reflect a range of scales, geographies, organisation types and target audiences as summarised below.

Case study Forest of Avon Products Groundwork Wales’s Environment Centre St. Dogmaels Community Business Development Sylva Woodland Centre Wentwood Timber Centre Whitney Sawmills – Woodland Heritage W2W Training Pembrokeshire County Council

Scale Geography Organisation vs CWC Type Similar Suburban Cooperative Smaller Urban Charity Smaller Rural

Charity

Larger

Rural

Charity

Similar

Rural

Business

Larger

Rural

Business

Small > Large

Mixed

Public

Target Audience Whole Timber Supply Chain General Population General Population Whole Timber Supply Chain Timber Users

Focus

Timber Products, Production Environment Education, Skills, Rural Business Development Timber Products, Production, Education Timber Products, Production Whole Timber Timber Products, Supply Chain Production, Education General General Business Population Development

The case studies assess each project for key lessons with regard to best practice and issues/pitfalls encountered, the costs of running the project and the financial viability of its funding/incubation model and finally its measures of impact and success The benefits offered by each project have been assessed against a “baseline” of existing commercial units from Pembrokeshire County Council.

Pembrokeshire County Council Commercial Units The commercial units offered by the County Council have been regarded as a base line for other project 2 Rent c£50 - £60 / m / yr assessments. As these facilities already exist in Type Office, workshop or mixed all available Pembrokeshire and represent a typical value for Lease 3-5 yr Internal Repairing money route for business development activity, it Service If available Gas has been assumed that any development at Connections 240V lighting and ring main (tenant Cilrhedyn should add value over and above a basic Electricity 415V (3ph) – To main board pays bills) empty manufacturing unit, including access to if available. No circuit in unit Townswater generic business development support and its Water Sewerage supply chain and market. Currently Council units 2 are available across a wide range of sizes 46m to If connected by previous Phone 2 tenant 1060 m

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The units are distributed across the county but tend to be located closer to larger towns with a high concentration located close to the oil and gas processing centres of Pembroke and Milford Haven. These latter units also benefit from being within the Haven Waterway Enterprise Zone giving tenant companies preferential corporation tax treatment.

As with all small self-contained commercial units with a rateable value of less than £6000pa, the tenants will also benefit from 100% small business, business rate relief (SBBR) under current (2016) legislation for qualifying units.

The case-studies examine different approaches and methods of adding value to a cost effective “Space only” solution, through additional benefits and services. Each of the projects have achieved this through one or more of:

Business Development Support Sector Specific • Tools • Equipment • Advice

Market Access

•

Skills Development

• • • • •

Space Community Development

Supply Chain Access

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Access to Enhanced Business Development Support both generic and sector specific Market Access Skills availability and development Supply Chain Access Community Development Sector Specific Support

The key findings from each of the projects assessed are summarised below with the individual casestudies included as a separate appendix. These were used as discussion documents in the consultation undertaken at the Pembrokeshire show in August 2016.

Key findings from the Casestudies

Business Development Support

Market Access

Skills Development

Supply Chain Access

Community Development

Sector Specific

The table below, summarises the value added services of each project, over the county council “baseline”. In all cases, it is clear that a mix of the value adding services in the previous figure are provided rather than concentrating on one specific benefit. This not only gives multiple benefits to the organisation and its customers and clients but allows multiple funding streams to be accessed by the organisation to deliver these services.

✓

✓

✓

✓

✓

✓

✓

✓

✓

✓

Sylva Woodland Centre

✓

✓

✓

✓

Wentwood Timber Centre

✓

✓

✓

Whitney Sawmills – Woodland Heritage W2W

✓

✓

✓

Casestudy

Forest of Avon Products Groundwork Wales’s Environment Centre St. Dogmaels Community Business Development

Critical Success Factors and Relevance to Cilrhedyn Woodland Centre In addition to the common elements, above, which by definition are limited in number, we have identified a number of critical success factors, from each of the case studies which may or may or may not be applicable to or reproducible at CWC. These factors and their relevance are discussed below.

Forest of Avon Products Ltd. Critical Success Factor

Effect on Forest of Avon Products ltd.

Involves whole supply chain

Forest of Avon have established and maintained membership across the timber value chain from Forestry and Woodland Management to Product Manufacturers Situated on the outskirts on the major conurbation of Bristol gives a large customer base and good accessibility to the centre.

The not for profit co-operative overheads are covered by modest membership fees of its members. Other liabilities such as the loan repayment for refurbishing the Woodyard are covered by commercial rents on the buildings.

Large accessible market

Financially resilient model.

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Potential impact on CWC

There are companies active across the timber value chain in Pembrokeshire and it would be important for any development at CWC to build and develop these links.

The remote location in a relatively low population density area of North Pembrokeshire is a significant barrier to any development at CWC. Any opportunities for commercial long term income from CWC should be maximised. A purely development based (business development or skills development) model is by its nature reliant on funding based income.

Groundwork Wales Environment Centre Critical Success Factor

Effect on Groundwork Wales Environment Centre

Potential impact on CWC

Integral Part of Operations

All the core functions of Groundwork Wales are run from the centre. The organisation uses it as a base for training its own volunteers and staff as well delivering its own training programmes to the public.

The centre could potentially be used to deliver the core functions of Tir Coed and Coed Cymru officer functions but is too remote from current head office locations to take this function without significant restructuring

Adapted to current use requirements.

The centre has been extensively adapted to provide the correct range of accommodation and facilities required by Groundwork Wales and to provide income from rental clients.

Some adaptation of CWC will be required to turn it into self-contained units if a rental income is anticipated. Non hands on training and office spaces would also benefit significantly from better isolation of the office space from machinery noise and vibration.

Financially resilient model.

The centre has multiple sources of income from the rental of some of the space at the centre and hire of its training and conference facilities. Groundwork Wales’s own use of the centre is funded through overhead charges made to its own income generating programs like the Green Dragon Standard and programs it is paid to deliver on behalf of Welsh Government

A pure development centre would need to secure funding for its operation.

Independent income from rental etc. would provide a more secure option.

St. Dogmaels Community Business Critical Success Factor

Legacy Planning

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Effect on St. Dogmaels Community Business The use of business development funds to develop the lasting legacy of the market and hire equipment has continued past the funding period and is now a self-sufficient facility available for the benefit of the community.

Potential impact on CWC

Long term business support functions need to be considered which outlast any time limited business development funding.

St. Dogmaels Community Business Critical Success Factor

Effect on St. Dogmaels Community Business

Potential impact on CWC

Community Involvement

The strong community spirit in St. Dogmaels developed its own program to further strengthen the community. This type of collective improvement activity creates an ongoing sustainable development ethos exemplified by the fact 2# successful business development programmes have been run and a 3rd has just been awarded.

CWC given its location will have to work very hard to develop a “community� based on market sector as opposed to geographical community.

Start Up Support

Market access and business skills development underpin any other start-up support on offer in developing a thriving small business environment.

Whilst the space offering at CWC could be exploited as start-up incubator space, the trading environment and advisor role the centre could would provide a wider benefit.

Sylva Woodland Centre Critical Success Factor

Effect on Sylva Woodland Centre

Potential impact on CWC

Gifted Site & Development Money

The initial developments on site were carried out using donated land and capital from a charitable donor. This puts the Centre in a strong financial position.

Rent income is reinvested into the charity and will facilitate further development of the site.

Any modification to the current CWC setup to facilitate a multi user facility will need to be funded. There are a number of schemes available (Big Lottery, Community Asset Transfer Schemes, Welsh Government) which could potentially support this with repayment of any loan capital recovered through rents.

Early engagement of tenants.

Sylva identified their rental client base prior to opening the centre. This enabled the centre to be set up exactly as the clients required and established demand prior to opening the centre

The management structure, roles, responsibilities and requirements of Tir Coed, Coed Cymru, PCNPA and other tenants will need to be agreed and identified prior to taking over CWC.

Strong Links to Education

Sylva have successfully engaged with higher and further education establishments, developing a strong craft skill base and promoting the use of wood as a versatile construction material.

There are a number of FE and HE establishments which may be interested in developing links with CWC. These should be fully explored prior to taking over the centre.

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Wentwood Timber Centre Critical Success Factor

Effect on Wentwood Timber Centre

Potential impact on CWC

Initial Access to Stock of Dried Timber Boards

Initially Wentwood Timber took control of the centre but not the existing stock.

The stock was bought over time; the original stock owners being paid after deduction of a sales charge. This sales charge was used to replace stock until over time Wentwood Timber Centre now own all the timber stocks.

Timber stock has by its nature is very long turnover time. It is not unusual for a period of 2 yrs. to elapse to produce air dried boards of the right moisture content. This requires both high levels of working capital and has a significant space requirement.

3rd Party Milling

Wentwood has a fully operational sawmilling facility. However, it has proven more cost effective to employ fully equipped mobile sawmillers to come to site to carry out the milling function rather than self-mill timber. This is due to relatively high labour costs and maintenance costs of primary sawing when not fully utilised.

CWC have already reverted partially to this option or employing an offsite sawmill to mill logs. Unless sawmilling is a key function of the facility it is not cost effective to keep as an in-house service. It also has a huge footprint within the building using up space that could be used for more profitable activity.

Supply chain links

Wentwood Timber Centre holds a pivotal role in the supply chain providing access to a wide range of locally grown timber and local forestry contractors and arboriculturalists an outlet for their saw log output.

One of the barriers to using locally grown timber given by the industry is the lack of a reliable supply. CWC could provide this service for the Pembrokshire and Ceredigion areas providing the supply and demand balance can be achieved.

Whitney Sawmills and Woodland Heritage W2W Courses Critical Success Factor

Effect on W2W Courses

Potential impact on CWC

Good Links Across the Supply Chain

The only reason these courses work is These factors all exist at CWC with a fully close proximity and existing relationships equipped sawmill and workshop plus close of a woodland owner (Duchy of Cornwall) links to a woodland owner (PCNPA) and a fully equipped sawmill and joinery workshop (Whitney Sawmills)

Not main source of income

The courses running for 3 days, twice a year do provide an additional income stream for the participants but is not the major source of income for either.

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This could form part of suite of training facilities offered by CWC but it is unlikely that it could sustain a business ( 30 delegates @ ÂŁ750 = ÂŁ22.5k pa) on it own.

Whitney Sawmills and Woodland Heritage W2W Courses Critical Success Factor Generates Business Opportunities.

Effect on W2W Courses The links made between delegates attending the course can offer business development opportunities. This has certainly been recognised by a major saw manufacturer (Wood-mizer) who currently sponsor 1 delegate place per course.

Potential impact on CWC Any activity developing strong links across the supply chain has the potential to generate wider business opportunities and sector development.

Best Practice Elements Across Multiple Casestudies Whilst each of the case studies show a number of specific critical success factors, these can be distilled into examples of best practice, as follows:

Strong Vision: All the examples assessed had a strong vision of what it wanted to achieve from the business.

Standalone examples like Forest of Avon Products Ltd. and Wentwood Timber Centre had a strong vision of how their businesses could make a difference. Forest of Avon Products Ltd. for example was initially set up to address the “complete lack of a local timber cycle.�

The remaining examples, all had a strong vision of what the facility / initiative had been setup to achieve which, whilst complimentary to their wider objectives, contained its own specific elements, actions and outcomes.

Adapt and Improve Facilities: Ensure facilities provided are fit for purpose rather than trying to make the purpose fit the facility. A number of the casestudies produced show examples of building improvements underpinned by grants and preferential funding from Government, Big Lottery and Coop and Community Funding.

Maximise Income Streams: Whilst a strong vision is essential it must be underpinned by a viable facility. A business based wholly on an incubator service for instance, even if the 1st and even 2nd generation clients can be identified, would by its very nature be a high risk initiative. Combining with other sources of income from longer term clients and other services reduces this risk significantly. Combining mature, positive cash-flow clients, with incubator or third sector tenants improves cross fertilisation of skills and ideas, in addition to commercial balance of the projects.

Link the Value Chain: Small businesses do not exist in isolation. They require both an accessible market and a supply chain together with access to a correctly skilled workforce. Initiatives which address all 3 of these key requirements if correctly managed and setup can prove very powerful. In addition, synergies between existing sustainable businesses can generate additional growth and/or new product and market opportunities.

Longevity: Grants, donations and time limited programmes are all available to deliver business and skills development programs. Use the monies from these streams wisely to produce a lasting legacy and ideally a selfsustaining facility. A good example is the St. Dogmaels market. Whilst active funded business development support has now finished at St. Dogmaels, the market (it’s legacy) continues to grow from strength to strength providing a much needed route to market for many of the businesses started or grown through the funded development

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activity. The rental income from the stalls is now sufficient to cover the cost of new stalls and maintaining the current stock.

Look Outside the Walls: The development of a facility at Cilrhedyn can have a significant impact on businesses not physically located there. This is especially true in areas such as supply chain integration, routes to market and skills development. These opportunities should be recognised in the structure of the facility going forward. Good examples of this are evident within the casestudies. Only a small number of the member companies of Forest of Avon Wood Products are physically located at the Woodyard. St. Dogmaels community business support whilst developing the local producers market helped in total over 50 businesses only some of which make use of the market to sell their goods.

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WS3.1 Functional and Geographical Scale Given the current operations at Cilrhedyn and the missions of Tir Coed and Coed Cymru, it is likely that further development of the forestry, timber or even wider rural industrial sectors in the area will remain key objective of the centre.

To achieve this a business development centre, a skills development centre or a mixture of both have been put forward as initiatives which would deliver this outcome. The site itself does however some existing constraints to achieving this.

Site Constraints Main Building

Toilet & Changing

Entrance

Storage

The current setup at Cilrhedyn Woodland Centre is shown below. The main building is dominated by full height 2 storey space currently setup as a Joinery 1 2 sawmilling room housing the main Workshop Sawmill Workshop log and timber processing Sawmill 3 (Full height) equipment and a joinery workshop (Full height) 5 4 1 4 2 housing a range of powered woodworking tools.

3 7 6 Ground Floor 1. Primary Saw 2. Wood Furnace & Dust Control Plant 3. Resaw 4. Crosscut Saw 5. Sander 6. Kiln 7. “Glulam� Press

First Floor 1. Meeting Room 2. PCNPA Office 3. Office / Canteen 4. Accessway

PCNPA staff currently use the equipment to manufacture gates and sign posts but the machinery is largely underutilised due to both staffing level and output volume.

Once the form of an ongoing operation at CWC has been decided, each piece of equipment currently housed at the site should be reviewed and its value to the new organisation assessed. General observations from a brief site visit are given below.

Primary Saw The primary saw is currently inoperable and PCNPA have started to utilise a 3rd party sawmill to perform this task.

There are a number of permanent sawmills within an economic transport distance of the facility, which, if used on a routine basis, can prove transport efficient with the same transport delivering uncut logs to the facility and picking up previously cut stock. There are also a number of mobile sawmills which could periodically visit the site to cut logs in-situ. Given the high maintenance and labour overhead of running a primary saw and its relatively high footprint, keeping the saw limits the ability to house other potential clients at the site.

Wood Furnace and Dust Control Plant The wood furnace and dust control plant would form useful centralised utilities for use by a number of manufacturing based clients operating at the centre.

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Other Saws and Board Processing Equipment Whilst relatively basic machines, they would provide a useful training resource for learning basic joinery, construction or cabinet building skills or shared resources for client companies based at the centre.

Storage Units It is understood that some of the storage will be required by PCNPA but the stores whilst relatively small, could be used as secure private stores for businesses operating there whilst using common workshop areas.

Joinery Workshop Equipment Within the joinery workshop there is a large collection of holing, jointing, slotting and routing equipment. The machinery is all manually operated making it ideal for bespoke manufacturing operations but not bulk commodity processing (like gates and signposts). It may prove a useful training resource and or shared resource for a bespoke joinery or cabinet making type operation.

First Floor Offices PCNPA will continue to use their offices located at CWC but additional office space would be available for management functions at the centre, housing additional office based businesses and providing a classroom training facility. The current office provision is quite small and is height restricted by the eaves of the building. Isolation from the manufacturing facilities is also poor with a high level of machinery noise and vibration evident when the workshop is operating. This would not be tolerable for organisations not involved in the workshop or sawmill activities. It may be possible to build additional first floor office space.

Logyard The log yard again is under-utilised. A much higher volume of logs could be handled by the site or additional buildings or covered external areas built.

Location The location of CWC means that the only practical way of getting there is by car. There is a very limited bus service between Fishguard and Crymych with the closest stop to CWC being Llanychaer which is about 30 minutes’ walk from the centre. It is likely however that the bus does pass the entrance of the centre but it runs only on a Thursday.

Any training offering therefore would potentially have to offer transport to and from site.

The site is also geographically remote. It may be an option to include therefore some accommodation on site if any significant training is to be carried out there.

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Functional Scale – Sector Basis.

Tir Coed and Coed Cymru are both primarily focussed on the woodland, forestry and timber processing sectors.

Whilst no published data appears to be available for Pembrokeshire as a whole, the National Forestry Inventory programme run by the Forestry Commission does report coverage by River Basin District (RBD) catchment area1.

The figure opposite shows the West Wales RBD area in pink which is further subdivided into 5 regions. The area within the blue boundary is classified as the South West Wales RBD and would be an area where timber could be locally sourced for developments at CWC. Within the Boundary there is approximately 35k Ha of woodland split 60:40 Broadleaf vs.

Conifer. The relative abundance of both broadleaf and conifer forest should give good access to both hardwood and softwood timber. The woodland is further broken by species to : Species Ash Willow Oak Hazel Other

Broadleaf Ha (000) 4.6 3.5 3.3 2.8 6.8

% Broad 22% 17% 16% 13% 32%

Conifer Species Ha (000) Sitka Spruce 10.6 Larches 2.0 Douglas Fir 1.4 Lodgepole Pine 0.3 Other 0.4

% Conifer 72% 14% 10% 2% 2%

Total woodland coverage is however low at around 10%.2 This is lower than the average figure for Wales as a whole at around 14%3.

If a wider remit, to include agricultural based rural business were to be considered the scale of operations could be increased. The total agricultural footprint in the same area – Pembrokeshire and Ceredigion is significantly higher and broken down as per the following table4 Thousand hectares Ceredigion

Pembrokeshire

South West Wales RBD

Total cereals

2.4

11.3

13.6

Fodder crops (for stockfeeding)

1.7

3.2

5.0

Other crops

0.5

4.1

4.7

Total crops

4.6

18.6

23.3

Bare fallow

0.1

0.1

0.2

Total tillage

4.7

18.7

23.4

15.3

23.2

38.5

Total arable land

20.0

42.0

62.0

Permanent grass

101.3

92.4

193.7

Total arable land and permanent grass

121.3

134.4

255.7

All grasses under five years old

Total agricultural land at nearly 76% total land area is very high, but the bulk of this is permanent grassland which will support an array of low intensity sheep and cattle farming.

Arable land of 18.3% (62 kHa) coupled with the 10% (35 kHa) of forestry already established would more easily support a facility at CWC.

The agricultural figures quoted also show that significant planting would be possible to increase forest cover given a vibrant industry to support its development to make some use of the 38.5 kHa of young grassland.

1

NFI provisional estimates for woodland in catchment areas in Wales, Forestry Commission, Nov 2014 Based on Pembrokshire (159k Ha), Ceredigion (179k Ha), https://en.wikipedia.org/wiki/List_of_Welsh_principal_areas_by_area 3 http://gov.wales/docs/statistics/2015/151216-woodlands-wales-indicators-2014-15-en.pdf 4 Extracted from Wales Agricultural Statistics 2014.

2

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If the eventual remit of CWC extends to far outside of woodland, forestry and timber processing an additional partner to Tir Coed and Coed Cymru would have to be considered to provide the necessary skills and knowledge to deliver this.

Function Scale – Services Basis.

It is clear from the casestudies that a strong vision of what CWC needs to become, and its potential competition are pre-requisites to success but also that a diverse range of services and opportunities with multiple sources of income spread the risk and provide a more sustainable business model less dependent on grant funding.

If we return to the original “space plus” model, different options can be looked at under each of the value adding elements.

Business Development Support Business Development Support Sector Specific

Market Access

• Tools • Equipment • Advice

Space Community Development

Skills Development

Business Development Support is a wide ranging topic. A raft of business development advice and support is available on a generic basis through some of the organisations listed in the following section (WS3.2). The bulk of the support available is advisory and knowledge based and CWC could develop a signposting facility at the centre for new businesses, located or associated with the centre.

More sector specific and practical advice could be delivered through the centre through Coed Cymru’s network of advisors.

Supply Chain Access

Another facility could be making parts of the centre available as incubator units with access to shared and private workspace for new and early stage businesses looking to expand. Neither of these functions are income generating so would rely on underlying funding being sourced and made available to CWC. Some potential sources of this funding are highlighted in WS3.2.

Market Access.

CWC could have a sales section where businesses based at or associated with the centre could exhibit and sell their products. This could be either a real salesroom, a web based virtual salesroom or both. This could be a charged for service either through an access fee or a commission basis. The additional benefit to client businesses is a larger customer base attracted by a wider product offering. This could also be a beneficial internal sales route, allowing companies based at or associated with CWC to easily identify and make sales to other companies further along the value chain.

Skills Development Woodland skills development is core activity for Tir Coed. CWC could become a skills training centre for their volunteer training or client training supplementing woodland based skills with an appreciation of downstream timber processing. These facilities could also be extended to external clients on a paid basis or a longer term basis with one of the local skills training colleges. The centre could potentially become a formal annexe to one of the colleges. Having a mix of businesses and skills training based at or closely associated with the centre provides an

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improved experience for both. The students benefit from a wider range of experiences available to them, whilst businesses have access to a skilled if initially inexperienced workforce.

External training could be a valuable income stream for CWC and possibly give Tir Coed an opportunity to reduce some of its current external training costs by having a permanent facility. There is funding available at many of the sources investigated in the subsequent work package to pay for both apprenticeships, training and creating employment experiences for those currently out of work.

High intensity training of non-local delegates might give rise to accommodation issues. There is sufficient land available for the development of some onsite basic accommodation. When not required for training purposes this could be rented out for non-core business use. CWC is within the national park area and would therefore attract bunkhouse accommodation type tourists. Training could be scheduled outside of peak holiday periods to maximise the additional earning potential of these units.

Supply Chain Access CWC can improve access across the timber value chain in a number of ways. It can act as a hub for other companies at different stages in the supply chain to interact and work more closely together through a formal or informal arrangement based around CWC. An alternative is to identify a missing link in the supply chain and provide that function directly. One particular area which it could develop would be as a timber clearing house, holding saw-log product from forestry activity, arranging the primary processing of sawlog into timber stock products and making these products available for use by companies based at or associated with CWC. Whilst this can be done on a profit or non-profit basis either way has significant working capital implications as green saw-log to seasoned timber product cycle time can be relatively long at up to 2 yrs.

Community Development The location of CWC des not give rise to a natural geographic community, but developing links across “woodland, forestry and timber products” or wider “rural industries” communities will be vital to make a success of CWC. This could include providing services to companies potentially based at CWC or associated with CWC. This sectoral community development is the fundamental premise of Tir Coed and Coed Cymru taking over the CWC.

Sector Specific Support The obvious way in which CWC can offer sector specific support will rely heavily on the type of operations identified as able to benefit from locating at CWC. The current workshop and sawmill tools can become part of a shared toolkit that both business and training clients could access pending a value review and can be supplemented with additional tool purchases if deemed to add value. The workshop and sawmill areas are both dry and well supplied with power, sawdust control equipment and utilities. The drying shed, is a safe dry area clients could use for storing and drying processed products and the large logyard suitable for storing unfinished materials.

Geographic Scale CWC needs a catchment area big enough to deliver a woodland, forest and timber processing big enough to deliver benefits. One assessment on available raw materials carried out above would suggest that there is enough woodland in the South West Wales RBD to provide raw materials to support the industry. This puts the target scale at all of Pembrokeshire and Ceredigion.

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A separate analysis carried out during WS1 looking at businesses in the woodland, forestry and timber processing sector around CWC ranked the businesses by postcode. Businesses in the same SA65 postal district as CWC were included in Rank 1. Businesses in the immediately adjacent postal districts to SA65 were included in Rank 2. Rank 3 businesses are located in postal districts adjacent to Rank 2 and finally Rank 4 businesses in the postal districts adjacent to Rank 3. The results are shown in the following table.

Rank Businesses Postal Districts

1 7 SA65

2 3 55 100 SA41, SA42, SA62, SA34, SA35, SA36, SA37, SA38, SA43, SA63, SA64, SA66 SA61. SA67, SA68, SA72, SA73

4 37 SA33, SA43, SA44, SA70, SA71

Whilst you might expect the number of companies to continue to get larger and larger the further away from CWC you go as the circles get bigger and bigger, the coastal nature of Pembrokeshire means effectively by rank 4 ie 4 post code districts out from SA65, the majority of land area is in the sea. Within rank 4 SA33 and SA44 are very sparsely populated. SA33 postcodes are also outside the South West Wales RBD with any forestry cover allocated to the Loughor to Taf RBD. A 1hr drive time envelope covering all destinations within a 1-hour drive time would also incorporate all the Rank 1 - 3 postal districts. This would therefore seem to be a natural choice for a woodland, forestry and timber products “community� of 162 existing businesses plus anymore which set up as a results of CWC. For training functions however, a much wider envelope could be considered, extending to the northern boundary of the South West Wales RBD and incorporating some elements of the adjoining Loughor to Taf RBD.

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Scenario Analysis The above list of potential benefits and geographic scale gives rise to a large number of combinations of support, however for the purpose of the consultation exercise a number of actual scenarios have been produced in order to ascertain the needs of the existing community and the attractiveness of a development at CWC. The scenarios chosen are based largely on discussion had at the workshop with Tir Coed and Coed Cymru and the findings of the report “Cilrhedyn Futures Report� prepared by PCNPA following a stakeholder engagement meeting held in 2014.

Scenario 1

Scenario 2

Timber Stock Facility

Business Development Hub Rented to complimentary existing and new companies.

Space

Own use

Business Development Support

None

Market Access

Sells a limited range of customers’ products on site.

Skills Development

Limited occasional practical training courses

Supply Chain Access

Holds and processes a range of locally grown timber.

Community Development

Facilitates access to local timber for companies

Sector Specific

Limited Role other than timber supply

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Signposting to support and help raising funds.

Preferential rents for startup companies Commission based or access fee marketing service based on site and online.

Business skills training and some on-site practical training. Training opportunities with community companies Facilitates cross supply chain networking between companies.

Scenario 3

Training & Skills Centre Some available for rental but mainly used for training. Potentially some accommodation on site.

Practical and business skills training for companies and individuals None

Focus on practical skills training across the timber value chain. Strong links with colleges, businesses and individuals.

Cross value chain training gives wider appreciation of upstream/downstream markets.

Supports companies both Supports companies both located on site and part of located on site and part of a network a wider network. Ensures correct skills are available for companies to access.

Companies onsite can Bespoke courses for access equipment and individuals. Development offsite network companies of training quality can use on occasion standards. Use of current tooling at CWC.

SWOT5 Analyses.

One of the early risks identified in delivering the project was getting sufficient response to a consultation exercise in August due to the number of people taking holidays. This has been the case with both the telephone consultation exercise carried out by Coed Cymru and the face to face exercise carried out by RES, Coed Cymru and Tir Coed at the Pembrokeshire Show on 17th August yielding limited responses. There were in fact very few local exhibitors from the wood products sector, trading at the show. A summary of the consultation exercise undertaken at the show is given in Appendix 2 and the one-page summary of the “Space Plus” model developed earlier in this report and used to introduce the project to organisations at the show in Appendix 3.

The aim of the consultation exercise was to identify the need of local companies and other stakeholders in the woodland, forestry and timber sectors and use this data to quantify some of the elements of a SWOT analysis on the scenarios outlined above.

Given the lack of empirical data to populate this analysis, the following analyses are based on RES understanding and experience of the timber industry, discussions with Coed Cymru and Tir Coed during the course of this project and a review of previous consultation exercises conducted in this area. It should also be noted that these options are not mutually exclusive. As the case studies have shown, providing that a strong vision for what CWC is trying to achieve, having multiple sources of income and offering a wide range of complimentary services is generally a positive advantage.

Scenario 1 – Timber Stock Facility Strengths • Limited modification of existing facility required • Supports all parts of the supply chain • Can store and process range of products o Greenwood o Air Dried Timber o Kiln Tried Timber o Firewood Logs o Wood Chip o Logs • Does not preclude other business development, training or commercial activity collocating on site Opportunities • Improve the usage of local timber by local timber based industries, including possible linkage with Trecwn.

• Encourage improved level of Forestry Management in Pembrokeshire and Ceredigion and eventually increasing forest cover • Support other sawmill processors by reducing the amount of capital tied up in stock • Work in conjunction with other regional timber stockists to balance supply and demand

5

Strengths, Weaknesses, Opportunities, Threats

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Weaknesses • High working capital to build / acquire initial stocks • Time to build initial stock if plan is to build stock not purchase • Huge variety of species / size / moisture / finish variants further increases stock levels

Threats • Securing sufficient raw material for processing • Cost competitiveness vs import • Quality (both perceived and actual) of Welsh Timber stocks • Identifying and attracting new customer base and overcoming existing supplier inertia • Matching Supply and Demand Balance unless working with other “hubs” • Identifying customers and their requirements

Scenario 2 – Business Development Hub Strengths

Weaknesses

• There are a number of forestry / timber product • The current setup of CWC does not lend itself to multiple business occupancy. Some structural based businesses close to CWC (from postcode alterations would be required analysis) which could potentially benefit from a • The remote location of CWC does not give rise to a business development Hub. natural geographic catchment area and despite • The centre and site is large enough to accommodate being within the National Park, does not have a more than 1 business unit. naturally high footfall of either local residents or • Whilst there is a raft of generic business tourists.

• A model based purely around business incubation is development support available from a variety very much funding dependent and high risk sources, a sector focussed facility hosting or acting o 1st generation clients may be able to be with a signposting function to this support is identified but subsequent clients will not yet currently lacking within Pembrokeshire. have been started. o Clients once established would then be expected to relocate.

Opportunities Threats • A common sales portal whether a physical sales facility, an electronic platform managed from CWC or a mixture of both would potentially be beneficial for business, whether based at the centre or associated with it.

• Having a focal point for the sector whether or not companies are physically located at CWC improves collaboration within the sector and help builds a strong “timber” community. This improves visibility and access to individual companies within the sector and the sector as a whole • A small number of “anchor” clients based at the centre can help other businesses to grow around them

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• Clients renting workshop space at the unit be they established companies or start-ups cannot be found.

• Uncertainty over Brexit and its impact on funding for rural development and business development activities • Lack of commercial rate income if only incubation stage companies targeted.

• Costs of adapting the unit for multiple occupancy are prohibitive or cannot be financed.

Scenario 3 – Training & Skills Centre Strengths

Weaknesses

• The existing tools and equipment can be used for training and upskilling • There is a need for developing both business skills and craft skills both of which could be achieved at the centre • There are number of FE and HE institutions which could make use of the centre or with which CWC could make formal links Opportunities

• The remote location of the centre with no access to local facilities or public transport infrastructure • Funding reliant • Additional or shared staffing would be required to run some of the facilities, based on current staffing levels.

• Basic accommodation for delegates on training courses could give an extra income stream • Developing strong links with companies in the sector to provide employment opportunities for trainees and an upskilled workforce • Developing wider knowledge and understanding of the skill requirements across the supply chain • Giving students an opportunity to learn skills in a working environment.

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Threats • Local skills training is available at local FE colleges in Forestry, Carpentry, Joinery and construction • Coleg Sir Benfro have just invested in a new construction skills facility at Haverfordwest • Developing skills only without developing the sector could give rise to, too many people with craft skills without sufficient employment opportunities • Unable to attract sufficient delegates for commercial training offerings.

• The existing equipment at CWC is relatively basic and all manually operated with no Computer controlled machines. This potentially limits the skills which can be developed at the centre.

WS3.2 Support from External Organisations Future Development of the Cilrhedyn Timber Centre will require a detailed business plan, with a clear vision for the purpose of the centre, what problems it addresses and what opportunities will be exploited. This will require commitment from the partners in the project, but may also benefit from contributions of external organisations, coordinated at the centre, and complementing the core activities.

RES conducted an initial review of a number of support organisations in Wales prior to the workgroup meeting with Tir Coed and Coed Cymru. At that meeting it was agreed to conduct a more detailed analysis of the following organisations: 1.

2.

3.

4.

5.

6.

Business Wales / Business Connect Farming Connect / Menter a Busnes HE and FE Colleges Princes Trust Timber Business Investment Scheme PLANED

Whilst a further exercise and direct engagement should be carried out once a tighter vision for Cilrhedyn has been developed, the current review, has assessed each organisation to give: •

• • •

A general introduction to the organisation o How and why it operates o Details of the programmes and support available.

An indication of how the organisation could assist Cilrhedyn o Develop its own identity, core function and facilities Indicate how the organisations can assist those looking to develop businesses or skills at Cilrhedyn An indication of how much of the potential support could be effected by the UK’s decision to leave the EU.

Details for each organisation can be found below, but the following general observations may be of interest

While the underlying assumption is that Cilrhedyn will become a timber business development centre, given the nature of the potential project partners, this may take a number of forms: § Timber or Rural Business Development Centre § Timber or Rural Business Incubation Centre § Timber or Skills Development Centre (traditional and/or modern) § Local timber products centre § Timber craft centre § Timber stock/supply facility

It is likely that both the precise purpose and corporate structure of any future development will influence the desire and ability of external organisations to engage with and contribute to the project.

The nature of Cilrhedyns future clients will also have an impact on external relationships. A range of objectives are best served by attracting new and established organisations to locate at the centre. Information has been reviewed to ascertain how supporting organisations can help to attract and nurture these clients. Some suggested functions

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for companies that could benefit from locating at Cilrhedyn are listed below. These could be simple commercial organisations or those with an additional social function – such as training and skills or employment.

§ Local sawnwood supplier § Traditional timber framer § Biomass supplier (logs or chips) § Training and skills provider § Craft skills centre with shop (e.g. wood turning, coppice hurdles etc.)

The impacts of Brexit could be far reaching in terms of rural business development initiatives. Significant amounts of ESF, ERDF and EAFRD funding6 is used to provide support for business and skills development activities in Wales.

Whilst general assurances have been given that funding will be made available through UK and Welsh Governments to replace EU economic development funding, details are as yet to be discussed, let alone agreed.

We should also remember that external organisations will also require added value to justify engagement with future developments at Cilrhedyn. To the extent that any project assists in furthering their objectives, disseminating their work or extending networks, most will be inclined to consider some degree of partnership. However, where this risks additional complication, dilution of direct audience/recruitment or costs, they will undoubtedly remain very cautious and should be engaged directly, before any assumptions of support are made.

6

ESF – European social fund, ERDF – European Regional Development Fund, EAFRD – European Agricultural Fund for Rural Development

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Business Wales / Business Connect www.businesswales.gov.uk

General Information Business Wales is a general business development support service for new and established businesses. Business Wales is run by Welsh Government and offers access to information, guidance and general business support.

Summary of Services Offered Business Wales offers a very wide range of services, but identifies 6 key support areas of finance, start-up and business planning, marketing, skills and training, business ideas and innovation and information technology. The full services provision is summarised below Starting up: • how to write a business plan • how to raise finance • marketing

eBusiness Support: • customer relationship management • information security • unified communications

Employment Advice: • bullying and harassment policies • contracts of employment • flexible working

Tendering Support: • eProcurement • how to tender collaboratively • meet the buyer events

General Business Management Support: • business growth • business and strategic planning • access to funding

International Trade: • trading in other countries • researching markets • signposting to Welsh Government, UKTI and other export support providers

Environmental Management Advice: • review current environmental performance • ensure compliance with legal requirements • improve efficiency by reducing waste

Mentoring Service: Business Wales facilitate access to experienced business professionals offering independent and impartial mentoring support to help you grow your business.

Workshops: Business Wales workshops and events are listed on the Business Wales events finder, and include: • how to tender (Introduction and Advanced) • eProcurement • social Media • accessing Business Finance

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Opportunity for development of Cilrhedyn timber Centre Support for developing and implementing the core function Business Wales offers all the necessary support services to help develop a full business plan for Cilrhedyn.

This support is mostly advisory rather than financial.

Support for organisations wishing to locate at Cilrhedyn In addition to all the general business support offered by Business Wales there is a clear opportunity to receive some financial support for employment costs, which could be accessed to help business growth and start-ups.

The key opportunities are summarised below Apprenticeships – access to external training support.

The business pays the salary but the Welsh Government pays for the training. In certain situations wage subsidies are possible. The training is tailored to business needs.

Jobs Growth Wales – take on a young unemployed person and Welsh Government will pay the first 6 months salary at national minimum wage.

ReAct – employment support for someone who has been made redundant. £12,000 for first year and up to £1000 for training.

GWLAD – Staff training support (up to 70% of the training costs) ION leadership – leadership training for managers

Brexit All the training and skills support appears to be funded in part under European Social Fund.

Additional Information The Business Wales website includes a finance locator. A summary of the most promising opportunities are shown below. The search term ‘Grant’ was used. In some instances, there is no open call for the funds described below (and past opportunities are not removed from the finance locator) but they have been included here given the fact that the Cilrhedyn development timetable is yet to be established.

Coastal Communities Fund (www.biglotteryfund.org.uk/ccf) A fund for organisations across the private, public and charitable and community sectors, in order to support the economic development of coastal communities throughout the United Kingdom by promoting sustainable economic growth and jobs. Part of Big Lottery Fund (Not EU). No upper grant limit stated Co-operative and Community Finance (www.coopfinance.coop) Financial aid is available for the support of the development of cooperatives or employee-owned businesses and social enterprises in the UK for general business needs, including loans on property, business purchase, capital equipment and working capital. Up to £250k Glastir Small grants A grant scheme supporting projects undertaken by farmers and landowners in Wales for rural projects which benefit the environment.

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Processing and Marketing Grant Scheme A capital investment grant scheme, which provides assistance for projects that add value to agricultural and forestry products, and help to increase environmental and financial sustainability. It is designed for micro businesses and SMEs, usually for projects that have a duration of three months to three years. £500k up to £1 million. (European funds) Heritage Lottery Funding (www.hlf.org.uk) A number of different schemes some with an upper limit of £100k and others with an unspecified limit. Perhaps could be used for creating accommodation on site as part of an overall development package.

Research and Knowledge Exchange (RAKE) Fund Financial assistance is available to carry out research projects that aim to stimulate and promote entrepreneurship and knowledge transfer. Up to £12k.

Science and Society Community Challenge Grant Scheme Funding is available to support individuals and organisations to create and run pilot projects which take science to diverse audiences. Up to £40k The Prince’s Countryside Fund (www.princescountrysidefund.org.uk) Funding is available for projects operating in the UK that can have a long-term positive effect on rural communities.

Up to £50k.

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Farming Connect / Menter a Busnes www.businesswales.gov.wales/farmingconnect/ Farming Connect is one of four schemes within the Welsh Government Rural Communities - Rural Development Programme 2014-2020, which is focusing investment from Welsh Government and the EU on rural communities and provides support for the development of agriculture and forestry. The Welsh Government Rural Communities – Rural Development Programme 2014-2020 is a seven year European Agricultural Fund for Rural Development (EAFRD) programme funded by the European Union and Welsh Government. It aims to improve resilience and promote transformational change in agriculture, forestry and rural communities. It supports activities which: • • •

improve competitiveness in the agriculture and forestry sector safeguard and enhance the rural environment foster competitive and sustainable rural businesses and thriving rural communities.

The Farming Connect programme supports the development of a more professional, profitable and resilient land based sector. It comprises an integrated programme of knowledge transfer, innovation and advisory services designed to deliver greater sustainability, improved competitiveness, and improved environmental performance.

It is integrated with other Welsh Government business support packages and activities including Business Wales and Resource Efficient Wales. It also forms the main mechanism and structure for delivering a coordinated and integrated package of knowledge transfer, innovation and advisory services targeting the farming and forestry businesses.

Farming Connect is part of Business Wales and the services are delivered by Menter a Busnes which is in itself a commercial enterprise. Menter a Busnes bid to Welsh Government to deliver this service, but also deliver their own consulting services.

Summary of services offered Specific services are offered under the Farming Connect umbrella covering business development, skills and mentoring, innovation and knowledge transfer, as follows: Business Development • Advisory services • Strategic Business Planning • One-to-one surgeries and clinics • Measure to Manage (data collection and analysis support) • Discussion groups Skills and Mentoring • Training • Personal development • E-learning • Mentoring • Joint Venture support • ‘Management Exchange’ – management training package • Agrisgôp – fully funded learning programme • Agri Academy – Programmes for Rural leadership and Business and Innovation

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Demonstration Sites Demonstration Sites form an important part of Farming Connects demonstration network. These sites, located throughout Wales, have been selected in order to share with the wider industry examples of best practice, innovation and new technologies. It is notable that none of the demonstration sites showcase forestry.

• Aberbranddu - Llanwrda, SA19 8YE. Key sectors: Beef and Sheep • Cae Haidd Ucha - Llanrwst, LL26 0TF. Key Sectors: Beef and Sheep • Great Tre-rhew Farm - Abergavenny, NP7 8RA. Key Sectors: Beef, Sheep, Horticulture • Llysun - Welshpool, SY21 0EL. Key Sectors: Beef and Sheep • Marian Mawr - Rhyl, LL18 6HT. Key Sector: Dairy • Moor Farm - Haverfordwest, SA62 3EE. Key Sectors: Dairy • Newtown Farm - Brecon, LD3 7YG. Key sectors: Beef and Sheep • Orsedd Fawr - Pwllheli, LL53 6RD. Key Sectors: Beef and Sheep • Plas Farm - Anglesey, LL59 5SB. Key Sectors: Beef and Sheep • Rhiwgriafol - Machynlleth, SY20 8NY. Key Sectors: Sheep • Tynyberth - Llandrindod Wells, LD1 6PU. Key Sectors: Sheep • Tyreglwys - Llangennech, SA14 8YD. Key Sectors: Dairy

Innovation sites - Farming Connect Innovation Sites operate in conjunction with academic research projects from some of Wales’ top agri-education establishments. Projects established at these sites, receive significant input from sector specialists and academics. They seek to be at the forefront of research and development within agriculture and forestry. Current Innovation sites are: • • • • • • • •

Gogerddan, Aberystwyth University Trawsgoed, Aberystwyth University Pwllpeiran, Aberystwyth University Glynllifon, Caernarfon Llysfasi, Ruthin Gelli Aur, Carmarthen Henfaes, Bangor University Innovis, Capel Dewi, Aberystwyth

It is not known how much forestry is undertaken at these innovation sites, although both Henfaes, Bangor and Glynllifon, Caernarfon have forestry expertise and capacity.

European Innovation Partnership (EIP Wales) The European Innovation Partnership Wales (EIP Wales), is a new approach to supporting the development of research and innovation in agriculture in Wales. EIP Wales is supported by the Farming connect Knowledge Exchange Hub which is hosted by Aberystwyth University’s Institute of Biological, Environmental and Rural Sciences (IBERS).

EIPs were first launched by the EU in 2012 and their aim is to bring people from different practical and scientific backgrounds together to solve common agricultural problems. Research results, findings and advice on best practice from EIP Wales will be disseminated to the wider industry through the Farming Connect programme in Wales and in Europe through the EIP programme.

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Knowledge Exchange Hub The knowledge exchange hub provides an interface between academics, advisory professionals, farmers and foresters across Wales. The aims are to identify research findings and innovative practices, disseminate up-to-date information on topics which will help run a more profitable and sustainable business. The Knowledge Exchange Hub seeks to enhance links between farmers/foresters and researchers through promoting better communication of research needs from the ground to academics and the translation of results and best practice back through the Farming Connect programme.

Agri Lab The Agri-Lab Forum seeks to bring together forward-thinking individuals who wish to identify and consider new technologies and innovations that could benefit Welsh farmers and foresters. The Forum may also bring in experts from the UK’s leading research institutions and relevant industry stakeholders.

Taken together these innovation programmes create an opportunity to bring an innovation focus upon forestry and timber processing.

Opportunity for Cilrhedyn Development Project Support for Developing and Implementing the Core Function It is evident from the review of Farming Connect services that adding value to farms through a focus on trees and timber processing is not well provided. Therefore, there would appear to be an opportunity to create a training, demonstration and innovation centre in timber processing. This approach would complement any partnerships with HE and FE colleges and any commercial undertakings at the site.

Support for Organisations Wishing to Locate at Cilrhedyn Strong links to Farming Connect could help to build a focus upon the Cilrhedyn Timber Centre (particularly if it were to become an Innovation Site). This relationship may be expanded into specific services that could be offered to support specific business development – particularly in the area of forestry and timber processing.

Brexit All the support is ultimately linked to finance through the European Agricultural Fund for Rural Development (EAFRD) programme.

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Higher and Further Education Establishments The colleges with a proximity to Cilrhedyn Timber Centre are shown on the map below.

These higher and further educational establishments have been reviewed to assess their potential relevance to current or future activities at the Cilrhedyn Timber Centre. The following table provides a summary.

Education Establishment Aberystwyth University (HE)

Proximity to Cilrhedyn 57 miles (1 ½ hours)

Coleg Ceredigion (FE) Cardigan Campus

20 miles (34 minutes)

UWTSD7 (HE) Carmarthen Campus Coleg Sir Gar (FE) Gelli Aur campus

36 miles (54 minutes) 49 miles 1 ¼ hours

Coleg Sir Gar (FE) Ammanford campus

52 miles 1 hour 20 minutes

7

University of Wales Trinity Saint Davids

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Relevance • Institute of Biological, Environmental and Rural Science IBERS • Relevant subjects: Agriculture and Countryside Management • Relevant subjects (NVQ levels 1,2,3): o construction o carpentry and joinery o furniture design, making and restoration • Arts education with limited immediate relevance to Cilrhedyn • The main focus at the campus is to prepare students for a range of land based countryside studies and agricultural engineering occupation o Part time diploma in Forestry and Arboriculture o Chainsaw courses • Construction industry craft courses

Education Establishment Swansea University

Proximity to Cilrhedyn 63 miles 1 hour 40 minutes

Relevance

• Establishment of a new well-funded training institute Construction Wales Innovation Centre (CWIC) and may be looking for collaboration opportunities • Establishing a new Architecture course The proximity of higher education and further education establishments may provide an opportunity for the Cilrhedyn Timber Centre to develop a skills training element in collaboration with one of the local colleges.

Coleg Ceredigion would appear to offer the best fit both in terms of proximity and courses which includes carpentry, joinery and furniture design. Coleg Sir Gar would also seem to offer potential for forestry. Swansea University has been included due to the establishment of the Construction Wales Innovation Centre (CWIC) costing £6.5 million http://bit.ly/2aaJIyk. CWIC is a collaboration between the CITB and Swansea University and presents an opportunity for innovative thinking around the provision of skills training in the construction sector.

Analysis of skills provision in Wales is likely to expose many gaps critical gaps. Two key areas known to RES are in the traditional skills and crafts required for the retrofit of old buildings (particularly pre 1919 solid wall buildings) and skills appropriate to modern timber frame construction. Equally there appears to be no timber processing provision in the region. In North Wales, the Grŵp Llandrillo Menai, Glynllifon Campus near Caernarfon has a sawmill and a 300 Ha farm and woodlands, which offers a varied environment with numerous educational opportunities for Forestry students.

Opportunity for Development of Cilrhedyn Timber Centre Support for Developing and Implementing the Core Function The Cilrhedyn Timber Centre could become an outpost for one of the regional HE and/or FE colleges – with a potential focus upon timber processing or wood-based craft skills. The next step would be to initiate discussions – probably with Coleg Sir Gar and Coleg Ceredigion. Funding would likely come through CITB although the introduction of the modern apprenticeship levy may lead to new routes to funding. Creating a training centre would be an alternative strategy to that of developing a business development/incubation centre, although it may be possible to combine the two opportunities. An interesting associated opportunity would be to create accommodation on site for students.

Support for Organisations Wishing to Locate at Cilrhedyn A core service offered by the Cilrhedyn Timber Centre could be strong links to HE and FE colleges to provide opportunities for student placements and projects. Business incubation support may also encourage newly trained young entrepreneurs.

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The Prince’s Trust The Prince’s Trust was established in as a youth charity in 1976 by HRH The Prince of Wales. The charity claims to be a ‘thought leader’ in issues relating to young people. The charity focuses on providing support for young people and is best known for it’s work in helping young people establish businesses – the core provision being the enterprise programme which is part funded by the Nat West Bank.

Services Offered Mentoring service – ‘Mosaic’ is a suite of accredited mentoring programmes which are run in schools with the purpose of creating opportunities for young people growing up in the most deprived communities.

Development Awards – Financial Awards for 14 to 25year-olds to help those wishing to get back into work, education or training. The Development Awards can help to cover costs such as, course fees, transport or equipment. Up to £500 Personal Development Programmes – ‘Team’ and ‘Fairbridge’ Team is a 12-week personal development programme to help participants gain new skills, take a qualification and meet new people.

Fairbridge offers a mix of group activities and one-toone support to develop the skills and confidence. The programme begins with a 5-day access course and is followed by further activities of choice.

Training – ‘Get Into’ For those not in work, education or training ‘Get Into’ offers the chance to gain work experience and receive training in a specific sector. The focus is upon employability skills to help participants move into a job after the course. Programmes are targeted in a number of sectors - including retail, construction, logistics and hospitality – and on the job training is provided.

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Enterprise Programme Targeted at 18 to 30 year olds with a business idea.

The aim is to ‘help you become the best business owner you can be.’ The Enterprise programme aims to help turn ideas into a business reality through advice, guidance and support. The programme is broken down into four stages: Stage 1: Meet the team Attend a free information session to find out what our Enterprise programme involves and how we can support you.

Stage 2: Explore This is a 4 day programme that includes an inspirational talk from a business expert, consideration of personal aspirations, marketing and selling, finance, business planning, Stage 3: Building your business Flexible one-to-one support to get started with market research, writing the business plan and considering finance. Grants of up to £250 are available to test business viability.

Stage 4: Launch A mentor will provide support for two years.

Additional finance includes, low interest start-up loans of up to £7,500.

Opportunity for Development of Cilrhedyn Timber Centre Support for developing and implementing the core function Limited relevance

Support for organisations wishing to locate at Cilrhedyn Strong links to the Prince’s Trust could help young entrepreneurs establish a timber related business at Cilrhedyn. A specific Cilrhedyn Timber Centre programme could be developed that links skills provision at local colleges to business development support provided by the Princes Trust and others (such as Welsh Government).

Brexit The Prince’s Trust does not rely heavily on European based funding.

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Timber Business Investment Scheme (TBIS) The Timber Business Investment Scheme is funded by the European Union’s European Agricultural Fund for Rural Development (EAFRD) and by the Welsh Government. It is a 7-year investment programme supporting a wide range of activities which contribute to the following objectives: • • •

fostering the competitiveness of agriculture ensuring the sustainable management of natural resources, and climate action achieving a balanced territorial development of rural economies and communities including the creation and maintenance of employment.

All projects funded by the Programme must align with one or more of the following 6 European Rural Development Priorities: • • • • • •

fostering knowledge transfer and innovation in agriculture, forestry, and rural areas enhancing farm viability and competitiveness of all types of agriculture in all regions and promoting innovative farm technologies and the sustainable management of forests promoting food chain organisation, including processing and marketing of agricultural products, animal welfare and risk management in agriculture restoring, preserving and enhancing ecosystems related to agriculture and forestry promoting resource efficiency and supporting the shift towards a low carbon and climate resilient economy in agriculture, food and forestry sectors promoting social inclusion, poverty reduction and economic development in rural areas.

The Timber Business Investment Scheme provides funding for capital investments that add value to forests by enabling woodland management activities, timber harvesting and/or timber processing. The scheme is open to private forest owners, local authorities, certain other public sector forest owners and small/medium-sized enterprises (SMEs) and community organisations or forestry contractors. Investments supported by the scheme must be related to improvements in value in forests, for example by enabling woodland management activities, timber harvesting and/or in-forest or small-scale timber processing.

Examples of eligible activities under the scheme include: •

• • •

small to medium scale forest-based investments that will enhance forestry potential or that relate to the harvesting, processing and adding value to forest products, particularly environmentally friendly technology, including cable-cranes, skidders and other equipment suitable for small and/or inaccessible woodlands investments in development and rationalisation of the marketing and processing of wood and wood products investments related to the use of wood as a raw material and energy source prior to industrial processing investment may include small forest nursery related developments that are specifically related to one or more forest holdings

Investments must be related to the improvement of the economic value of specific forests.

Currently there is no open call for proposals, but future calls can be expected.

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Opportunity for Development of Cilrhedyn Timber Centre TBIS is targeted at capital expenditure and upon those projects that can lead to increased woodland management. Development of the Cilrhedyn Timber Centre (given most development scenarios) should increase the demand for local timber.

Cilrhedyn could deploy funding under TBIS to help address some of the key barriers to development of the timber supply chain – such as fragility of supply relationships with growers, and the relatively weak interface with the market. Examples of capital investments could be a showroom, an online sales and marketing platform.

Brexit The TBIS is an EAFRD programme

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PLANED (Pembrokeshire Local Action Network for Enterprise and Development) PLANED came into existence in 2001 as the latest evolution of a local Pembrokeshire based community enterprise that began life back in 1979. PLANED is a community led partnership, a charity, and a company limited by guarantee, with its Board members consisting of community representatives and representatives from the public sector.

PLANED aims to empower and enable local communities to be full and equal partners in the development of their area through EU programmes, Welsh Assembly Government (WAG) initiatives, and other funding streams e.g. the Big Lottery or the Heritage Lottery Fund.

Facilitating community participation in an integrated approach to local development is the stated objective of the PLANED partnership. PLANED encourages the involvement of all local people and organisations to work together to improve the quality of life in their community. An important part of the process is the development of Community Forums and Community Action Plans. All communities are encouraged to establish Community Forums, open to all local organisations and individuals. The communities identify local needs, opportunities, and priorities, which are set out in Community Action Plans to be implemented by the forums and which feed into community Hub Development Plans.

PLANED works to implement a number of interrelated strategies which taken together promote sustainable living by: • • • • • •

Supporting local community activities to improve their quality of life Promoting a Sense of Place/Valuing the Environment Developing a community culture of entrepreneurship Encouraging local enterprise Developing sustainable tourism Supporting sustainable agriculture

Services Offered LEADER PLANED is the administrative body for the Pembrokeshire LEADER programme (known as Arwain Sir Benfro) and has secured over £3,300,000 of funding to support projects which ‘test new ideas which benefit the rural area, contributing to a competitive, productive and sustainable economy in Pembrokeshire.’

The LEADER programme is part of the Welsh Government Rural Communities – Rural Development Programme (RDP) 2014 – 2020, which is financed by the Welsh Government and European Agricultural Fund for Rural Development (EAFRD).

LEADER methodologies are implemented by local area partnerships which bring together public, private and civil society sector organisations. A LEADER partnership is known as a Local Action Group (LAG). LAGs are made up from a cross section of local communities and LAG members include representatives from, among others, local authorities, business groups, third sector or social organisations and environmental bodies. These multi-sector LAGs bring together a large centralised knowledge base of skills and ensure an equitable coverage of interests.

Each LAG has a Local Development Strategy (LDS) which contains a set of rural development actions and objectives that have been suggested by local communities in the LAG territory. All LAGs are required to prepare a Local

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Development Strategy (LDS) before they start distributing European Agricultural Fund for Rural Development funds (EAFRD) to LEADER projects. The LDS involves an in-depth analysis of a LAG area i.e.

Pembrokeshire to identify what local people believe is most important for the development of their area. The LDS also clarifies what issues the rural population considers to be the main challenges that LEADER funds should be used to tackle. A considerable amount of community consultation is required to produce a LDS and the procedure helps to provide the LAG with a built-in ‘bottom-up’ direction for their LEADER work. All LAG projects supported by the EAFRD must fit with the aims of the LAG’s LDS. LEADER THEMES • • • • •

Adding value to local identity and natural and cultural resources Facilitating pre-commercial development, business partnerships and short supply chains Exploring new ways of providing non-statutory local services Renewable energy at Community level Exploitation of digital technology

CROSS CUTTING THEMES • • • • • • • • • • • • •

Sustainable Development Community Led Local Development Tackling Poverty Equal Opportunities Uplands Welsh Language Local Development Strategy Objectives Contributing to a competitive, productive and sustainable economy Encourage a culture of Entrepreneurship Utilise and build local skills Improving provision of transport and accessibility Explore new models of service delivery Participate, Collaborate and Innovate

PLANED Networks PLANED establish and manage networks such as the Pembrokeshire Sustainable Agriculture Network and Pembrokeshire Business Network.

Other PLANED Themes PLANED provide help and support for communities to become more sustainable and to encourage community participation.

Opportunity for Development of Cilrhedyn Timber Centre Support for Developing and Implementing the core Function PLANED’s approach provides a model for community engagement and community led development. If the Cilrhedyn Timber Centre develops with and for local people, then PLANED should be seen as a core partner. The LEADER

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programme should provide a clear route to funding to enable capital and revenue support for the development of Cilrhedyn.

Support for Organisations Wishing to Locate at Cilrhedyn Should Cilrhedyn Timber Centre develop into an incubation centre, then PLANED could play a central role in supporting the creation and maintenance of the Cilrhedyn business community – such as governance and management of the community or network. PLANED’s services would also be of benefit to individual enterprises.

Brexit Much of the funding secured by PLANED is EU based.

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Summary Findings and Next Steps Tir Coed and Coed Cymru asked for a broad study investigating the opportunities for development of the Cilrhedyn site, based upon learning from other projects, the availability of external support and the opportunity to apply these to the delivery of the two organisation’s objectives from a rejuvenated Cilrhedyn facility.

It is quite apparent, from our interactions with the project, that this study needs to lead to some prompt decisions, given both the determination of the PCNPA to define its future obligations and the number of previously inconclusive reviews. In order to inform these decisions, particularly for Coed Cymru and Tir Coed, and to fulfil the outputs agreed at the review meeting of the 30th of August, we have attempted to answer the key questions as follows.

Future Structure What would be an appropriate future structure for a rejuvenated Cilrhedyn Woodland Centre based on the business and skills development objectives of Coed Cymru and Tir Coed in the woodland, timber and environmental sectors?

We have addressed this question first, on the basis that the balance of the analysis should address how Cilrhedyn is rejuvenated in future, and that there should be no ambiguity about the site’s current ability to fulfil the main objectives of any of the key players, PCNPA, Coed Cymru, Tir Coed, or by implication the wider requirements of PLANED who part funded this work.

Currently the site is too large for its role as home to the PCNPA ranger activities, with excess and understaffed/underutilised processing capacity for the captive requirements of the authority for wood products. The net effect is a facility which is, and is likely to remain, too expensive for the PCNPA and therefore some change will be instituted shortly.

For Coed Cymru and Tir Coed, Cilrhedyn, as it currently stands, does not immediately fulfil their objectives of a cost effective base for engagement with and wider services to the regional wood economy, and the people who it may increasingly employ. While the site facilities represent as good a starting point, subject some geographic challenges, as those in many of the case studies, it will require a process of adaptation and rejuvenation, which will clearly lie at the door of these two organisations.

In order to create a solid base for future development, we would strongly recommend that the site infrastructure is viewed in the same manner as an independent landlord might approach it, i.e. That the “break-even” operation of the site is the responsibility of a management organisation with a number of tenants, including the PCNPA, Coed Cymru and Tir Coed. This organisation would in turn be jointly overseen by Coed Cymru and Tir Coed.

A tenancy agreement between Cilrhedyn and the PCNPA will fix, and limit the authority’s obligations and define the outstanding “risk” to the other two tenants, who will then mitigate this risk through the full range of their activities at the site, including sales to the PCNPA (signs, furniture etc.), subletting of space, plus their other activities, discussed below.

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Learning from other Programmes How other projects and programmes have been run in similar circumstances and how they could shape the future operation of Cilrhedyn Woodland Centre?

Cilrhedyn will require, as part of the required rejuvenation, to offer a wide range of services, in common with all the case studies reviewed, if it is to attract future tenants and to meet the business and skills objectives of Coed Cymru and Tir Coed. While other projects have demonstrated that the synergies and networks offered within a shared location can prove a key attraction, and contribute greatly to wider objectives, Cilrhedyn is starting from a very low base in terms of immediate footfall or supply chain relationships. Creating the type of networking and external trading relationships that sustain a number of the case study examples will require engagement with a wide range of partners, customers and other like-minded organisations. These are considered under external organisations, below, but some general observations and suggestions are as follows: •

•

•

Vision and Ownership– whatever the range of opportunities, these need to be combined into a clear vison for the site in the context of its specific operations and their contribution to wider objectives and activities in the Wood sector. In order for this vision to be delivered, clear ownership, objectives and action specific responsibilities should be established for each activity stream, for instance tenants/incubation, sawmilling, wood-store, courses/education, outreach to forestry/employment.

Funding – A number of the projects have benefitted from external funding, at least for the initial conversion and set-up phase of their operations. All current options for funding directly related to the Cilrhedyn site (such as potential Lottery support for asset transfer, or linkage to local regeneration plans) should be explored, specifically with a view to o Adaptation and Improvement – the attraction of external tenants/partners will be significantly enhanced by improvements to the sites facilities, to coincide with activities above. Site access/transport, on site accommodation for training and incubation facilities being key.

Maximising income – This will require a mix of activities including commercial trading alongside the wider objectives of training, skills development and incubation. In the case of a timber and biomass storage hub, this will particularly require o Looking outside the walls – The supply and demand needs of Pembrokeshire, will need to be balanced (particularly while the supply chain matures) by liaison with external supply partners, including other local hubs. A number of organisations (including RES) have been involved in the exploration of a “hub of hubs” to support local and regional initiatives. External engagement is considered further, below.

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Support from External Organisations What other support could be harnessed from external organisations to contribute to the development of future tenants at the centre?

The adaptation and ongoing support at Cilrhedyn, including that supplied in conjunction with external organisations, should not consider just future tenants, but training clients, woodland stakeholders and customers. In addition to the external support organisations considered in WS3.2, above, this support should be expanded to represent wider partnerships. These should be pursued, on three fronts, as follows.

LOCAL Business • • • • •

Sawmills/Processors, explore opportunities to rationalise including re-location to Cilrhedyn or outsourcing if no take-up.

Biomass. Explore links with Pembrokeshire Bioenergy (and others for storage, supply and collaborative hub.

Biomass boiler suppliers. Only likely to engage if demonstration facility is feasible and possible depot/design/training outpost Contractors/services – location to tie in hub services and possible link to Trecwn Merchants, collaboration as outpost as part of “hub and spoke” operations

Education •

Coleg Sir Benfro. Outpost of new building (including partial staffing of operations)

Support • • •

PLANED Arwain Sir Benfro) Fishguard & North Pembrokeshire Development Plan

REGIONAL • • •

Business – Connections to wider hub activities Support – Farming Connect, Wood Knowledge Wales Wood Sector – Heritage/Whitney (interested to talk around cooperation and creating network of centres_ Timber Business Investment Scheme

NATIONAL • •

Business – Hub of Hubs as being developed/investigated in Grown in Britain Woodstock project, could offer online Sales Platform as interim.

Wood sector – Sylva. Keen to support with access to Sylva “model” and cooperation to create a network of centres.

These relationships should be assessed on their ability to deliver viability to the Cilrhedyn project which might otherwise prove challenging, but can also offer significant value to Parent Organisations (CC and TC) through their wider networks and to the Wood sector by helping to develop the emerging model for collaboration and growth.

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Proposed Next Steps

Negotiate Transfer Terms

Generate business plan based on detailed confirmation of identifed opportunities.

During which

Residual Risk mitigated by Value to Core Organisations Availability of site specific adaptation funding Short Term External Income

PCNPA

Future Value Core Organisations

Tenancy

•Tir Coed •Coed Cymru •PLANED ?

Customer

External Organisations (Local>Regional>National optimisation)

Tenants

Commercial

Fall Back Option •Reserves •Legacy •Sale

Sawmills (relocate/ consolidate or outsource)

Timber

Partner Development Woodland Heritage

•Trecwn - direct links?

•Contractors/ Estates / Woodland Owners

(RES to meet early Oct)

Biomass (Installers and outpost PBE)

Biomass

Courses (Coleg Sir Benfro)

Sylva (RES to organise CC visit early Oct)

Products

December

Implement ?

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Subject to

Based on the evidence developed to date, RES recommends proceeding

September October / November

Appendix 1 – Casestudies

1.

2.

3.

4.

5.

6.

7.

Pembrokeshire County Council Forest of Avon Products Ltd. Groundworks Wales Environment Centre St. Dogmaels Community Business Sylva Woodland Centre Wentwood Timber Centre Whitney Sawmills / Woodland Heritage Woodland to Workshop Courses

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Cilrhedyn Woodland Centre Study Pembrokeshire County Council The Organisation Pembrokeshire County Council is the unitary authority for the area of West Wales within which Cilrhedyn Woodland Centre is located. It has a remit for local economic development within the region and owns a number of industrial units at various locations within the county.

Location.

Most of the industrial units owned by the council are based around Milford Haven / Pembroke Dock areas but units are available close to Cilrhedyn Woodland Centre at Feidr Castell Business Park and Newport.

Unit Types The council offers all types of units from basic workshops and office through to large fully integrated office/factory/warehouse facilities. All have basic hygiene facilities and the larger units have catering facilities also. Industrial units typically have water, sewerage, electricity and where available gas connections however the

Current Units for Rent

• Unit A Withybush Business Park o 1060 m2 Mixed Factory/Office/Warehouse o £35,000 pa Rent, £19,521pa Rates • Unit H Withybush Business Park o 217m2 Factory/Warehouse with 1st Floor Office o £12,500pa Rent, £3,760pa Rates • Unit 5 Thornton Industrial Estate o 86m2 Workshop Space o £4,650 pa rent. 100% Small Business Rate Relief • Old School Business Centre, Newport o 4 offices totalling 76m2 o c£4,000pa Rent, 100% Small Business Rate Relief • Units 1,2,6,7,8 Waterston Industrial Estate o 5 units of 46m2 (x3) and 69.7m2 (x2) workshops o Rent £2500pa - £3,750pa, 100% SBRR • Plot H2, Waterloo Industrial Estate o 595 m2 level storage yard with gated access o £2,500pa Rent, 100% Small Business Rates Relief • Unit 19 Richmond Business Centre, West Llanion o 41 m2 of first floor storage. o £890pa rent. 100% SBR

Picture Gallery

tenant will be responsible for paying any associated bills.

Rental.

The rental agreement is normally a space only agreement and the units tend to be completely empty upon occupation. Internal repairing leases of between 3 – 5 years in length are the norm requiring tenants to return the unit to its “bare” condition on leaving the unit and maintaining the unit internally. The council remain responsible for the building fabric. At the end of the lease, the tenant will normally be given first refusal on entering into another lease period.

Enterprise Zones & SBBR Releif.

Many of the units are in enterprise zones which allow qualifying small businesses preferential tax treatment and many of the units sized (RV<£6000) to qualify for Small Business Business Rates (SBBR) relief at 100%.

Access to Other Council Services Other council economic development services for supporting businesses are available to all businesses with no preferential treatment given to those businesses who are also tenants.

Project Summary – prepared by Resource Efficiency Services LGC Ltd.

Cilrhedyn Woodland Centre Study Forest of Avon Products Ltd. The Organisation Forest of Avon Products Cooperative (FAPC) is a non-profit limited company wholly owned by its members who are all businesses, individuals and 3rd sector organisations operating across the forestry and timber products sector.

It was created as a direct response to the complete lack of a local timber cycle, whereby those working in woodland management were completely unconnected to those wanting to manufacture and sell their wood products.

Setup in 1999 by an initial group of 10 shareholders from across the supply chain it has subsequently trebled in size over the intervening years.

Location.

FAPC’s primary base of operations is Bower Ashton Woodyard on the eastern extremities of the City of Bristol Unitary Authority area and originally formed part of the Ashton Court Manor Estate. The complex of former agricultural buildings is now owned by Bristol City Council who’s own Products : • Furniture o Fine finish o Rustic • Garden & Outdoors o Buildings o Ornamental o Outdoor Play • Homeware & Gifts • Logs & Charcoal • Sculpture & Carvings • Timber Services: • Conservation • Demonstration & Showcasing • Education • Milling • Timber building & Framing • Tree Planting & Planning • Woodland Management

Members: • Trunk to Twig • Chew Valley Charcoal • Organic Woodworks • Alistair Park • Backwall Woods & Woodfuel • The Bike Shed Company • Bob Slade • Forest of Avon Trust • Rooted Furniture • Jim O’Shaughnessy • Nigel Howe • Rachel Bramley • Roundwood Design • Rupert Newman • Tom Burgess • TouchWood Play • Wayney Edge • Well Seasoned Wood

Picture Gallery

Site Renovation

Estates and Parks teams are also based at the complex. The Woodyard forms the administrative and management centre of the cooperative and also houses the workshops and offices of some of its member companies in a range of private, shared and communal areas.

Facilities.

Since 2006, the co-operative lease the buildings from Bristol City Council for a peppercorn rent in return for renovating and maintaining the previously largely derelict site.

The Cooperative invested around £100,000 in a major renovation some pictures of which are shown in the gallery above. £60,000 of this was in the form of a loan from Co-op and Community Finance. The repayments are funded from the rents the cooperative charges to its tenants for using the facilities.

Much of the work carried out as part of the restoration was performed by the Cooperative members themselves

Project Summary – prepared by Resource Efficiency Services LGC Ltd.

Cilrhedyn Woodland Centre Study Forest of Avon Products Ltd. Membership. v Pitfalls/issues Currently to become a member of the cooperative o Balancing individual member priorities costs £50 pa and each member is an active voting with over Cooperative priorities member of cooperative. There is however an o Keeping the wood value chain executive board elected from the membership to complete – Forest > Products oversee the day to day operations of the company.

In return for this investment, members get access to a range of benefits and services including: v Good working models • Marketing of products & services through the o Cooperatives are a well-established website, local contacts, shows, fairs and retail route to developing local supply chains outlets when and where available. o Inherently flexible • Taking part in shows and fairs - selling products, o Governance by all members and an demonstrating skills and promoting our work.

• Social networking events. elected executive.

• Meeting like-minded people to share skills,

information and resources. v Costs to running the project • Sharing work, opportunities and contacts. o Largely cost neutral. Annual

membership £50 pa.

Each member organisation continues to operate as o Rental income on units repays the an individual entity and can continue to market its £60,000 loan for the refurbishment products / services in its own right but also benefit from the cooperative structure. o Surplus profit is reinvested in the

business.

v Measuring impact and success

Picture Gallery

o FAPC is a business and whilst operating as a not for profit organisation, it stands or falls by its commercial performance. o Excess profit is reinvested in to the business.

Furniture

v Financial sustainability within the incubation model and funding

o Modest Annual Subscription o Primary debt funding funded from rents o Initial investment by founders from rents after primary debt cleared o Debts cleared – profit reinvested in business o Primary debt on preferential terms from Co-op and Community Finance

Outdoor Play

Cilrhedyn Woodland Centre Study Groundwork Wales – Tŷ Mynyddislwyn Environment Centre The Organisation Picture Gallery Groundwork Wales, part of the Groundwork UK network is a registered charity and company limited by guarantee delivering environmental focussed skills, training and advisory services to communities, businesses and people across Wales.

It delivers a number of programs on behalf of Welsh and National Government together with

local community benefit activities largely funded by lottery, large enterprise CSR donations and both corporate sponsored and individual sponsorship activities.

Location.

The Tŷ Mynyddislwyn Environment Centre is located in Pontllanfraith in Caerphilly County Borough and acts as a focal point for community driven activities in the area as well as providing a base for Groundwork staff and volunteers and a venue for Groundwork Wales training courses and activities.

The Grade II listed building was purchased with funds from the BIG Lottery Community Asset Facilities • Kitchen classroom – fully equipped for cookery classes or food nutrition demonstrations for up to 10 people.

• IT Suite – a modern, equipped room for training, research or IT skills demonstrations.

• Meeting Rooms – large meeting room sits up to 100 people (cinema style). Other meeting rooms of all sizes available.

• Offices – space available for short term hire or long term lease.

• Learning Zone – ecologically constructed facility for meetings, educational activities or training courses.

• Outdoor Skills Area – for practical demonstrations, green traditional skills training, environmental conservation workshops.

• Volunteer Facilities – modern welfare and training facilities tailored for volunteers or work.

• Eco-Garden – known as the ‘Dragon’s Den’. An enclosed area for educational or environmental workshops for all ages.

• Enterprise Units – self contained modern units for local enterprises available for lease.

Transfer fund and has been extensively renovated and expanded with support from Welsh Government’s Communities, Facilities and Activities Programme.

Facilities.

The centre now offers a mix of both formal and informal training facilities ranging from external covered areas for skills training and demonstrations to internal training rooms capable of holding formal training sessions for up to 100 people.

There are 2 small business incubator units and a number of offices available for long or short term lease together with storage facilities for Groundwork Wales’s equipment and tools used on other projects.

Groundwork Wales’s Management, Operations, Administration and Green Dragon Environmental Management Standard teams are also based at centre.

Project Summary – prepared by Resource Efficiency Services LGC Ltd.

Cilrhedyn Woodland Centre Study Groundwork Wales – Tŷ Mynyddislwyn Environment Centre v Pitfalls/issues

Funding. o Achieving excellent standards of The centre building is owned by Groundwork environmental performance in a Grade Wales following its purchase with BIG Lottery II listed building.

Community Asset transfer funding. They aim to run the centre on a cost neutral basis, with core staff, building maintenance and other operating costs v Good working models covered largely by rental income from the o Community and environmental incubation units and offices and training room hire focussed business income. o Mix of funded programs and

charitable donations (Multi source) This allows them to offer the facilities on a sliding rd scale at low rates for 3 sector and community

based businesses, subsidised rates for start-up v Costs to running the project businesses and market rate for established o Own and have upgraded building with businesses.

grant funding. o Low operating costs due to good environmental performance of building. o Target is cost neutral balancing costs with income.

v Measuring impact and success o Groundwork Wales measures success with KPI’s based around 4 key themes • People • Places • Prosperity • Partnership

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o The Environment centre is an integral part of delivering Groundwork Wales’s programs.

v Financial sustainability within the incubation model and funding

o Environment Centre target is cost neutral o Modest overhead is recovered through rental and room hire fees

Cilrhedyn Woodland Centre Study The Coach House Visitor Centre at St Dogmaels Abbey The Organisation Hanes Llandoch is a charity and company limited by guarantee based at The Coach House at St. Dogmaels Abbey in North Pembrokeshire whose objectives are to: • maintain, restore, preserve and improve for the public benefit the village of Llandudoch* and its surrounds, • hold exhibitions, meetings, lectures, classes, seminars, courses and events either alone or with others, and • foster and undertake research into any aspect of the objects of the charity and its work and disseminate the results of such research. *

( Llandudoch – Welsh = St Dogmaels – English)

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The Coach House at St. Dogmaels Abbey

The charity runs a number of cultural and heritage schemes to benefit the community and also supports local enterprises. Since 2008 it has delivered firstly a successful SEER (Social Enterprise and Economic Regeneration) Project and a subsequent EARDF funded project entitled “Steps to Enterprise” which ended in 2015.

Location.

Situated along the banks of the Teifi estuary, the

Facilities at the Coach Business Support

• Full time business House:

Training courses delivered through SEER and EARDF funded projects th

Coach House forms part of the buildings of an 11

Century Abbey.

development advisor Whilst the bulk of the Abbey remains a well looked • Craft Skills Workshops after historical ruin, the Coach House has been • Weekly Local Produce thoroughly rebuilt and renovated by Hanes Llandoch.

Market The Coach House now acts as both a vibrant hub for the • Events and Shows local community and as a visitors centre for the many • Training tourists who visit Pembrokeshire and wish to o Personal experience the Abbey ruins and/or purchase high Development quality locally produced Food and craft items. o Marketing Business and Local Enterprise o Book-keeping Through 2 business development programmes, a SEER o IT Skills Equipment for Hire: program and the more recent Steps to Enterprise

programme over 100 business and social enterprises Community Support • Market Stalls have been assisted. They have benefited from a full • Meeting Point for Clubs • Marquees time business development advisor giving tailored and Societies • Video Camera advice to individual businesses and training courses • Venue for social • Conference Display covering basic business skills. gatherings Equipment The legacy from these projects has been a thriving local • Events and Festivals • Ground penetrating business community, adequately demonstrated by the • Visitors Centre for radar local producers’ market which runs weekly on a Tourists • PAT Testing Tuesday. All stall holders come from within about 30 • Community focussed

miles of St. Dogmaels and it allows locals and visitors to Training

do a complete weekly shop whilst keeping the money

spent in the local economy.

Project Summary – prepared by Resource Efficiency Services LGC Ltd.

• Café / Tea Room • IT suite for training and education • Conference Facilities • Shop for local craft products • Gallery for Local Art

Cilrhedyn Woodland Centre Study The Coach House Visitor Centre at St Dogmaels Abbey Funding The funding for the work at St. Dogmaels has come from a variety of sources.

Heritage Lottery Fund. Funded the renovation and expansion of the facilities at the Coach House.

Big Lottery Fund. Funded activities based on WW2 commemorations. They have just recently been awarded a £250k award for the development of community orchard businesses.

SEER. (Social Enterprise and Economic Regeneration) grant funded an initial programme of business development and enterprise funding.

EARDF (European Agricutural & Rural Development Fund) together with Welsh Government funded the subsequent “Steps to Enterprise” project,

Other sources of income for the charity include voluntary donations from visitors to the Abbey, profit made from its trading company which runs the café/tearoom/conferencing facility and rental of equipment owned by the charity.

They also benefit from a large team of community minded individuals who offer their service on a volunteer basis.

v Pitfalls/issues

v Measuring impact and success o 300 individuals given support into

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employment / self-employment.

(SEER) o 50 micro businesses created (SEER) o Environment and business sustainability training to 200 individuals (Steps to Enterprise)

o Time limited programmes can give continuity issues and staff retention problems

v Good working models o Community involvement o Legacy Planning

§ The Market is now self-sufficient and recently won Best Market in Britain Award.

(Food & Farming)

v Costs to running the project o Underwritten by programme finance o Reliant on Volunteers o Initial funding of 8 market stalls from RDP has built a market which has expanded to 40 using a rental model for purchase and upkeep of stalls.

Local Producers Market – Every Tuesday

v Financial sustainability within the incubation model and funding

o Permanent professional Business

Development staff only viable during funded programmes. o Pipeline of funding opportunities o Lasting legacy – Thriving weekly market

Conference facilities at The Coach House

Cilrhedyn Woodland Centre Study Sylva Woodland Centre The Organisation.

The Sylva Foundation is a charity and a company limited by guarantee with the overarching objective: • To promote the conservation of the environment for the public benefit consistent with sustainable development principles by: o promoting and conducting research for the public benefit about effective sustainable forest management and the dissemination of the useful results of such research; o advancing education for the public benefit in the theory and practice of sustainable forest management; o supporting the development and application of sustainable forest management for the public benefit; o advancing education and business enterprise in the design and production of home-grown wood products for the public benefit.

The Wood Centre It’s now runs its own operations from the Wood Centre in Oxfordshire which it opened in 2015, but also maintains a range of incubation and commercial rental units at the centre for use by other companies working in wood.

Wood Centre Residents Business Description Chris Boreham A furniture business supported Bespoke under our Start-Up facilities.

Woodwork Face North A professional low impact forestry Forestry contractor

A furniture restoration and Mary’s Chairs upholstery business. (Start-up)

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The Wood Centre – Entrance and Workshops

The centre was established on a parcel of land of around 20 Ha which was gifted to the charity together with a capital sum for renovation. The current development consists of a converted potato and grain store which have been upgraded and clad with thermally modified sycamore and ash cladding.

There are additional buildings on site which are due to be brought into service during 2016 which will provide additional incubator space, sawmilling facilities and Neil Scott Furniture business which relocated woodworking skills training facilities.

Furniture Ltd to the Sylva Wood Centre in 2015.

Income.

Oxford Oak Outdoor furniture and small The units in the Wood Centre are charged out at (Rodas Irving) buildings using home-grown oak.

Market rate to established companies however there is Specialist media company creating a sliding scale of rents available for start-ups with newly Rokesmith educational woodworking material. formed companies given 6 months free then a ramp Rycotewood Rycotewood Furniture Centre is part period over the following periods up to the full rental value to overcome initial cash flow concerns.

of City of Oxford College

Simon Clements is a wood carver Simon Clements All the established and 1st generation incubation and sculptor, who also offers

tenants were identified and on board prior to the training courses. official opening of the centre which ensured that final A retired master craftsman, Ted is workshop design was fit for purpose.

Ted Dorey supporting our education and training activities at the centre Project Summary – prepared by Resource Efficiency Services LGC Ltd.

Cilrhedyn Woodland Centre Study Sylva Woodland Centre Cooperation and Collaboration.

Whilst there is no formal collaboration or cooperation agreement in place between the tenants of the wood centre, the central open plan exhibition and sales areas and close proximity of similarly minded individuals gives rise to a natural collaborative feel to the centre.

v Pitfalls/issues

The current list of tenants all have a distinct style and product offering and complimentary skills rather than competitive.

Educational Links.

The City of Oxford college has a strong link to the centre with students operating a furniture company from the centre. This has given rise to a position of â&#x20AC;&#x153;Craftsperson in Residenceâ&#x20AC;? at the wood yard. This person acts as a formal link person between the college and wood centre and is responsible for the students whilst they are working within the Wood Centre community.

As well as craft skills, design and innovation skills are also encouraged at the Centre. Thermally modified UK hardwoods have been utilised in the centres cladding and the 2016 TRADA design competition (ARBOREAL) is for an innovative bespoke research building at the Wood Centre.

v Measuring impact and success o 9 businesses including 2 startups and a

o Balancing development costs with leading edge timber construction methods o Speed of development

v Good working models

o Cross supply chain working o Sliding scale of rent for new business start-ups o Pre-engagement with tenants to spec workshop space o Shared Exhibition and Sales Space

v Costs to running the project o Low overhead due to gifted land, buildings and development funds o Market rate incomes for developed companies.

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college furniture factory are based at the centre o Further expansion of the centre is planned to house more businesses and core Sylva Foundation functions

v Financial sustainability within the incubation model and funding

Gifted Buildings

o The Sylva Foundation have shifted

their funding model to more income generation and funded programmes/studies and less grant and charitable donations for core activities.

After renovation with Thermally Modified Sycamore and Ash Cladding

Cilrhedyn Woodland Centre Study Wentwood Timber Centre Organisation Picture Gallery Wentwood Timber Centre is located in Monmouthshire in the Wentwood Forest.

Originally set up in 2002 as a partnership between Monmouthshire County Council and Coed Cymru, the centre was transferred into private ownership in 2011 when the current owners Helen and Gavin Hyatt took over the management of the centre. It was established to help encourage active management of the local broadleaf woodlands which were largely unmanaged, and simultaneously provide businesses and individuals with a source of local sustainably managed timber.

Logyard ↑and Drying Sheds. ↓ Whilst originally it was set up to promote the use of local hardwoods they do now also hold and process stocks of locally grown softwoods.

Products The company now processes around 200 T of timber per year. They buy mainly round log which are either processed onsite prior to delivery or sawn at the Timber Centre. Product range is mainly

board based which can be finished and dried to a Hardwoods Products range of and any wood not suitable for sawn

• Alder • Wavy edged boards products is sold as firewood.

• Ash • Cladding Operation

• Beech (including • Flooring There are 2 milling machines on site a Lucas Swing spalted)

Mill and a Norwood Horizontal Bandmill. However, • End Grain Cobbles most milling is now done by contractors who bring • Birch • Skirting mobile milling equipment periodically on to site.

• Cherry • Decking The onsite mills operate around once or twice a • Elm • Cabinet Boards month. It is more cost effective both financially • Lime and timewise to use the contractors.

• Clefted Chestnut • Oak (including brown, red and holm) • Sweet Chestnut • Sycamore • Walnut Softwoods • Cedar of Lebanon • Cypress • Larch • Western Red Cedar

Fencing

• Green Timber • Air Tried Timber • Kiln Dried Timber • Planed Square Edged Timber • Tongue and Groove • Turning Blanks • Firewood Logs

There is a kiln on site and extensive air drying sheds where timber is dried prior to being moved to sales room where contrary to most board mills, all the boards are visible and priced giving the purchaser the opportunity to easily select individual boards.

The centre also has its own profiling and finishing equipment but as with the saws, it is often more cost effective to use 3rd parties for finishing larger orders.

• Yew Project Summary – prepared by Resource Efficiency Services LGC Ltd.

Cilrhedyn Woodland Centre Study Wentwood Timber Centre Buying. v Pitfalls/issues The company buys its tree from a wide range of o Stock – Period between tree purchase sources but prides itself on sourcing all the and board sale can by necessity be material from sources local to the sawmill. It has a relatively long. range of regular suppliers from contractors to tree o Operating sawmilling machinery surgeons from whom they regularly buy timber but also purchase trees from Forestry Commission carries high maintenance overhead (and NRW) through their e-auctions and will select and skilled employee requirement. and grade trees directly with landowners.

Sales and Marketing v Good working models Most sales are done through the showroom o Good supply chain network with although manufactured products can also be established network of timber purchased through the website. They also have a suppliers and users. loyal base of craftsmen who buy extensively o Good tree utilisation with board and through the Timber Centre.

Other businesses.

There are 5 other small business units on site which provide basic workshop and storage facilities for a range of craft based companies. These provide an additional income for the sawmill vital for its continued viability. Some of these have no direct link to the timber industry at all.

v Measuring impact and success o Business has built to 200 T of timber processed pa. o Direct sales through the showroom of 0.75 m3 per week of hardwood board

firewood products

v Costs to running the project o Overhead minimised by low staff numbers. o Sub contract milling cheaper than staffing and maintaining saws.

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v Financial sustainability within the incubation model and funding

o Diverse Product Range o Multiple Sources of income – Boards,

Products and Firewood Sales, Rental of

Workshop Space End Grain Cobbles↑ Waney Edge Larch↓ o Room to expand the business on site. (target capacity is 400m3 pa)

Cilrhedyn Woodland Centre Study Whitney Sawmills – Woodland Heritage Woodland to Workshop Courses are run typically twice a year at Whitney Sawmills in Hay on Wye.

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They are organised by Woodland Heritage and are a 3-way collaboration between Whitney Sawmills, Woodland Heritage and the Duchy of Cornwall Estate.

Whitney Sawmill is an operating sawmill processing a range of UK sourced wood. They process and stock a wide range of UK Oak, Ash, Beech, Cherry, Elm, Sweet Chestnut, Sycamore,

Maple, Alder, Poplar, Walnut and Lime. Certain Estimating Growing Volume↑ Operating Saw↓ softwoods such as Douglas Fir, Cedar of Lebanon, Yew and Larch are also processed. Products are supplied green, air dried or kiln dried and in addition to sawmilling and drying they also have an onsite joinery workshop.

Woodland Heritage is a charity and company limited by guarantee. The principal activity of the charity is that of the conservation of trees and woodland areas in the UK. They achieve this by widening the skills and knowledge base of those connected with arboreal matters.

Woodland Modules Workshop Modules

• Distinguishing between • Tree species selection.

• Planting designs in relation to tree competition and the landscape.

• Vegetation control.

• Pruning and cleaning.

• Thinning.

• Protection from grey squirrels and deer.

• The recognition of potentially valuable stems of oak.

• The importance and relevance of the British and Irish Hardwoods Improvement Programme’s work.

•

Through training courses, we can ensure that the

existence and integrity of these areas are available

normal drying splits and to the public for years to come.

shakes.

The Duchy of Cornwall is a private estate

• Minimising damage established in 1337 which funds the public,

caused by ambrosia charitable and private activities of the Prince of beetles.

Wales and his family. It’s holdings encompass the • Practice at identifying Guy’s estate in Herefordshire containing some 500 various kinds of damage Ha of mixed mainly broadleaf woodland. and undesirable features of logs.

• Likely markets for unusual logs.

• The merits of a portable band saw.

• Measuring and calculating timber volumes.

• Air drying.

A series of evening lectures is also arranged for the duration of the course on topical subjects from eminent people in their field.

The Course.

Over the course of 3 days, students cover a range of modules starting in the forest with senior forestry personnel from the Duchy estate before moving into the sawmill where Whitney staff lead sessions on different tools and techniques for processing timber and assessing timber quality.

The course is a hands on course and is open to anybody who requires a better understanding of the complete forest and timber value cycle.

The practical sessions are supplemented with evening lectures on topics relating to forestry, environment, wood processing and utilisation.

Project Summary Prepared by Resource Efficiency Services LGC Ltd.

Cilrhedyn Woodland Centre Study Whitney Sawmills – Woodland Heritage Funding

The course costs £750 per delegate and delegates either fund themselves, attend as small business owners or are there at their companies cost.

Numbers are limited to around 15 delegates per session to allow for the hands on element of the course.

1 place per course is sponsored by Wood-Mizer who provide a £500 bursary towards the cost of the course administered by Woodland Heritage.

Wood-Mizer who distribute their own range of mobile and fixed sawmill plant (Manufactured in Poland), have sent some of their own staff on the course and some of the equipment used on the course is Wood-Mizer equipment.

Testimonials Nick & Katie, Essex Furniture makers and woodland owners.

“Judging possible defects in standing trees was a very useful introduction for Day Two, and the little leaflet explaining timber measurement was admirable. Roger Venables’ lecture was fascinating and his images beautiful. I could have watched all evening.”

v Measuring impact and success o Course frequency up to 2 regular slots per year since its inception in 2008 o c200 delegates trained.

v Pitfalls/issues o Access to facilities and expertise across multiple organisations to run the course.

v Good working models o Involves whole supply chain o Courses are self-funding o Sits alongside existing business and offers potential business development opportunities

v Costs to running the project o Limited cost to existing businesses save for staff time o Course fee covers costs o Recognised business development potential by major sawmill supplier providing bursary.

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v Financial sustainability within the incubation model and funding

o Course is self-funding o Contributes to the ongoing viability of the Sawmill at Whitney.

“Sticking” boards for drying↑ Lime Carving↓

Appendix 2. Summary of Reponses from the Pembrokeshire Show and Telephone Consultations.

Pembrokeshire Show PBE Fuels Bioenergy • •

•

•

•

•

Established 13 yrs ago, supply and install biomass heating, supply fuel and operate an ESCO. Spoke to Graham Perkins. Employing 15 staff across 3 companies (PBE pellets, PBE Chip, PBE boilers & Esco) Timber Used o All timber – 8000 Tpa – comes from West of Carmarthen o Mixed species OK for chip as is clean brash. o Use all non-sawmill timber o Since cereal prices double, miscanthus / SRC Willow out of favour so now focus on timber Several barriers to expansion o Replanting levels in Pembrokeshire o Difficult to find extra lorry driver in Winter o RHI instability and BSL requirements o Hardwoods don’t stack well for chipping resulting in space issues o Space on yard for drying is an issue – 12 months drying time New products / processes to explore o If supply could be guaranteed, 12,000 tpa capacity would buy a 300 hp Chipper o Enhanced drying to reduce floor space required Training Needs o Boiler installation certification o Ignite Training o Bulk Solid handling for pellets etc. (Grenwich Uni) How can we help o Access to Timber Business Investment Scheme o Supply of wood fuel from Pembs woodlands o Improve access to on farm timber.

Coleg Sir Benfo • • • •

Have just opened a new construction building in Haverfordwest, so unlikely to have interest in substantial space use.

Keen on collaborative working Possibility they can send groups of students and supervisors/tutors to learn about/operate the sawmill or other processing (have joinery and construction courses) Person from construction faculty will call RES

Green wood Biomass •

Biomass equipment distributor/installer based in St Clears, spoke with Michael Sauro who I think is the owner/founder.

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• • •

Wide range of biomass equipment and might consider locating some activity at Cilrhedyn, but would prefer more footfall.

Thinks there might be some mileage in local store of good quality wood pellets.

Mentioned the Home Farm set up at Llandeilo which runs building related courses such as lime rendering.

Thermal Earth • • •

Supplier/installer of biomass and ground source systems based in Ammanford. Spoke with Kristian DaviesLloyd who is in charge of marketing.

Saw little opportunity for basing any activity at Cilrhedyn and happy with current local fuel supply.

Do HETAS training courses and would consider second location, but preferably East of Ammanford, nearer the big population centres

Williams Sheds • • •

Manufacturer and supplier of outdoor wooden buildings (sheds, workshops, kennels, log cabins. Based at Llandysul, Carmarthenshire. Spoke with owners wife.

Don’t see much mileage in Cilrhedyn unless greater footfall for sales. Would probably not want to relocate production activities.

Modest staff/training requirements and raw materials all merchant bought softwoods or ready kits, imported directly.

Quality Sheds • • • • •

Manufacturer and distributor of sheds and leisure buildings, including high end accommodation pods, based in Pembroke Dock alongside their sister building company. Spoke with owners son and son in law.

Unlikely to re-locate production or sales activity and modest training needs, but might be some mileage in providing accommodation if part of future model.

Acquire raw materials from merchants.

Largely softwood cladding and insulation, which might present options for displacement if local products available.

RES will call the owner, Nigel

Furniture Directory • • • •

Established in 1992 in Haverfordwest they sell a wide range of furniture.

The furniture is imported and not produced locally.

They have a shop in Haverfordwest and also an appreciable catalogue of products available on line.

They are not looking for new or additional premises nor specifically to expand their range of products or suppliers to include locally produced furniture.

Federation of Master Builders • • • •

National trade association for builders.

Spoke with Ifan Glyn, Director FMB Cymru Active membership in Pembrokeshire and Ceredigion Happy to circulate any consultation questions to FMB members. RES will correlate.

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Also spoken to on the Day. The Cambria Sash Window Company. (Llandysul) Authorised installer of a range of timber frame and UPVC windows.

Window are UK produced but not locally. Install Timber Windows (www.timberwindows.com) range of doors and windows manufactured from European Redwood (imported). Not aware of any Welsh manufacturers of timber framed cassette double glazed windows.

Charles Taylor.(Peak District) Produce garden furniture from imported softwood.

Timber carvings stall. Bali sourced tropical hardwood carvings. Assured me that all the timber came from a sustainably managed forest but had no real understanding of what that meant.

Telephone Consultation Knobbs Hardware (www.door-knobs.co.uk) •

•

•

•

•

•

Hand turn wooden door knobs producing their own range and bespoke designs. Established in 1995 the current owner Angela bought the business in 2002 and is the only employee, although her husband Tim will join her when he retires is workload is big enough.

Barriers o 50% trade / 50% private sales is target o Need to increase customer base and get more widely known New products or processes to explore o Overhaul of existing lines to add more contemporary designs and promote their bespoke renovation services. o Update Website, photos and develop social media presence Would use the following services if Coed Cymru had a permanent base offering them in Pembs o Locally sourced timber (if correct quality/dimension/moisture) o Has been to Cilrhedyn previously but not impressed with the workshop offering o Possibly make use of a marketing / sales service Have engaged with Coed Cymru by phone exploring access to Welsh timber and would benefit further from: o Access to Welsh Timber o Promotion and marketing support.

Currently use Beech, Oak, Chery, Ash and Rosewood. Not homegrown.

James Ratford Bridge (www.jamesratfordbridge.co.uk) •

•

•

Established joinery, window, door and stairs business since 1949 and incorporated in 2002 now moving on to the 3rd generation of the family taking it over and employing 12 staff. No problems recruiting staff but none recruited recently.

Barriers o Recession and cheap imports o Need to develop a co-product offering to support main production New products or processes to explore o Forestry, milling, local timber, drying and kilning o Have considered purchasing the saw and glulam press from Cilrhedyn o Requires

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•

•

•

§ Grants for equipment § Milling/ drying and storage of timber being exempt from business rates as forestry is.

Would use the following services if Coed Cymru had a permanent base offering them in Pembs o Locally sourced timber (Used previous wood store but would like to provide this facility ourselves) o Possibly benefit from Intensive Training over a short period of time o Possibly make use of Longer term skills training o Not interested in flexible workshop space. o Interested in Joint Marketing and sales offering o Developing links with others in the supply chain.

Have previously engaged with Coed Cymru and would benefit further from: o Milling /Drying /Kilning Skills and training o Networking o Access to trees/timber o Help with applications for grants and the procedures involved.

Currently use a wide range of species and use homegrown timber when specified.

Peter Nyby (nybypeter@gmail.com) • • •

•

•

•

Recently established chair, furniture and tree surgeon individual who’s self employed.

Barriers o None at the moment New products or processes to explore o Timber Framing o Green Oak work o Roundhouses o Requires § Training § Apprenticeship § Grant Would use the following services if Coed Cymru had a permanent base offering them in Pembs o Locally sourced timber o Intensive Training over a short period of time o Longer term skills training o Likes the idea of workshop space with reasonable rent for short periods. o Interested in Joint Marketing and sales offering o Developing links with others in the supply chain.

Have previously engaged with Coed Cymru and would benefit further from: o Database for products and timber o Apprenticeships in green oak framing, woodland coppicing, Roundwood housing, horse logging Currently uses locally sourced Oak and Ash

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Ridgeway Timber (www.ridgeway-timber.co.uk) • •

•

•

•

•

Mobile sawmill and blade merchant established in 1990. Owned by Steve Cull who’s self employed and since the demise of the primary saw at CWC has provided a milling service.

Barriers o Age o Recession New products or processes to explore o Consultancy o Help and Advisory Service o Knowledge Transfer o Requires § Support § Market Access Would use the following services if Coed Cymru had a permanent base offering them in Pembs o Locally sourced timber and milling facility o Longer term skills training o Business Development Hub offering cost effective workshop space and support. o Interested in Joint Marketing and sales offering o Developing links with others in the supply chain.

Have previously engaged with Coed Cymru and would benefit further from: o Timber grading course o Access to training market (as a trainer ?) o Help with knowledge transfer Currently processes all types of logwood.

Norman Industries (T: 01437 763650) • • •

•

DWP supported business setup by Pembs CC in 1977, Currently supporting 2 able bodied, 10 disabled, 15 Full time apprentices and >20 occasional workers that manufacture timber and wood related products.

Barriers o DWP and LA funding disturbance due to Brexit New products or processes to explore o Always looking for new products to extend the range o Rebranded last year – now providing a lot of school items in bright colours (Formica on MDF) o Requires § Networking opportunities § Marketing § Outlets Would use the following services if Coed Cymru had a permanent base offering them in Pembs o Locally sourced timber facility - definitely o Intensive Training over a short period of time o Longer term skills training

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Business Development Hub offering cost effective workshop space and support. (for ex trainees/apprentices) o Interested in Joint Marketing and sales offering o Developing links with others in the supply chain.

Have previously engaged with Coed Cymru and would benefit further from: o Access to local timber especially oak o Minimise timber price fluctuations o Add kiln drying to local supply chain Currently process Oak, Ash, Beech, Chestnut, Iroko, mdf, plywood. If homegrown needs to be kiln or air dried. o

â&#x20AC;˘

â&#x20AC;˘

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Appendix 3 â&#x20AC;&#x201C; 1 Page Introduction

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Business What does your business do?

Staff No of employees?

How recruited?

Any problems recruiting?

Need for Training? Skills? Knowledge? ness continuing? Expanding?

Are there any new products or processes that you would like to explore?

What do you require to take these forward?

If there was a permanent wood centre in Pembrokeshire what facilities do you think it should provide.

Better access to locally sourced timber?

Intensive Training over a short period of time?

Longer term skills training and Opportunities?

A Businesss Development Hub offering cost effective flexible business and workshop space supported with advice and business skills training?

An opportunity for joint marketing and sales of products produced in Pembrokeshire?

Interaction with other businesses from the timber value chain (Forestry Mgt, Forestry Contracting, Primary Processing, Finishing, End Use)?

Other facilities / services?

Previous Contact with Coed Cymru or Tir Coed

For further information or to return a form: Geraint.williams@reses.co.uk or Mobile 07825 290303

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