BQ North East Yearbook 2012

The life and soul of business.

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WELCOME A little something extra “What’s this,” we hear you say – “another BQ? Surely we had one just recently?” Well yes, you did – and you will be due another one after the New Year too. But what you have now in your hands is something different from the usual quarterly edition. This is the time, perhaps, when we all take stock, think back over the previous 12 months and look with anticipation – not apprehension, we hope – to what may lie in the year now immediately ahead.

So in this first edition of a BQ Yearbook we draw together the recollections and predictions of many leading names and authorities in North East business, as well as throwing in a few observations and suggestions of our own. Have you noticed how everything seems to move so much faster these days – how something which you thought happened last June was in the previous June, in fact? It’s not at all easy to recall in a trice just exactly how much has been going on (or coming to a halt!) over the past year, and how much our workplaces are changing. We put this down to the accelerating pace of business. Blame that partly on the effect of the IT age if you will. It has certainly been an influence.

But so many people in business have also mentioned to us over recent months how necessary it is now to move faster just to keep things up to pace. There’s no doubt these are tough times, and this comes through when you consider events and their repercussions over the past couple of

years or so. But signposts to recovery are also being planted, and the great asset which the business community of the North East shares is the ability to work together for a mutual good. It has been demonstrated so many times in the past, is seen now and will no doubt continue into the future.

So we hope you will enjoy, through these pages, sharing with us a few thoughts and observations, and we hope you will look on BQ Yearbook as enthusiastically in future as you look on Business Quarter magazine now. We hope you will find them an enjoyable combination, both for your pleasure and for your information. Above all, we wish you a good 12 months ahead, whatever your line of work.

Brian Nicholls, Editor

advertising 0191 537 5720 [e] sales@room501.co.uk Editorial Brian Nicholls [e] b.g.nicholls@btinternet.com Andrew Mernin [e] andrewm@room501.co.uk Design & production room501 [e] studio@room501.co.uk Photography KG Photography [e] info@kgphotography.co.uk Chris Auld [e] chris@chrisauldphotography.com

The life and soul of business.

room501 Publishing Ltd, 16 Pickersgill Court, Quay West Business Park, Sunderland SR5 2AQ www.room501.co.uk room501 was formed from a partnership of directors who, combined, have many years of experience in contract publishing, print, marketing, sales and advertising and distribution. We are a passionate, dedicated company that strives to help you to meet your overall business needs and requirements.

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While every effort is made to ensure accuracy, no responsibility can be accepted for inaccuracies, howsoever caused. No liability can be accepted for illustrations, photographs, artwork or advertising materials while in transmission or with the publisher or their agents. All information is correct at time of going to print, December 2011.

BQ Yearbook is published annually by room501 ltd.

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REGIONAL ECONOMY Key influencers take stock of the economic health of the region and ask what the future holds

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NEW ECONOMY Find out about the sectors which could form the region’s economic makeup in coming years

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MANUFACTURING & OFFSHORE In association with:

The North East refuses to accept the decline of manufacturing and its stance has certainly paid off

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COMMUNICATIONS & TRANSPORT After a year of ups and downs for the North East’s connectivity is there a smooth road ahead?

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MONEY MARKETS In association with:

A busy year awaits those in control of the region’s investment funds while banks look to lend more

SMALL BUSINESS SMEs need public and private sector support more than ever, as leaders in the know explain

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UNIVERSITIES How closer ties forged between businesses and universities are fuelling success for many firms

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VOLUNTARY SECTOR Tough conditions have not dowsed the private sector’s generous spirit, as BQ discovers

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TRAINING & RECRUITMENT

In association with:

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WHO’S WHO Why the rules of job hunting are changing and the recruitment game is getting tougher

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

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SERVICE SECTOR

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Firms in the North East can now tap into a more diverse service industry than at any point before

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In association with:

BUSINESS SUPPORT In association with:

With no shortage of demand from businesses, support bodies have a major role to play in 2012

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CONFERENCING & HOSPITALITY

As a host of away days for business and pleasure seekers from across the country, the region excels

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EVENTS Look forward to the top business events of 2012

EXPORTING Overseas trading from the North East remains strong with several new territories opening up

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BUILT ENVIRONMENT In association with:

Uncertainty looms over commercial property and construction businesses as contracts dry up

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regional economy True, the North East enters 2012 challenged by a rewidening North-South divide, the highest unemployment in the country and the loss of a regional development agency. But it has the advantages of richness in skills and determination, good labour relations and knowledge garnered from earlier adversities that makes it especially receptive to opportunity

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Why WE Must sPEak Out Alastair Thomson explains what he would like to see happen to benefit the North East economy in 2012

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regional economy

Knowledge-based businesses need well trained, hard-working people. Let’s speak out for the great work the region’s educators do There’s a very famous and moving poem attributed to Pastor Niemoller about living under the heel of oppression. It starts with the line “They came for the communists, but I didn’t speak out because I wasn’t a communist” and goes through several other groups, ending with “Then they came for me and there was no-one left to speak out for me”.

I can’t read that poem without a tear in my eye and it reminds me of our shared responsibility to speak out for others. If we don’t, one day there might be noone left to speak out for us. So, as we contemplate the economic challenges ahead for North East business, there are some people I’d like to speak out for.

I’d like to speak out for manufacturers in the North East. The backbone of our economy since the Industrial Revolution

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and a group of people who have been under-appreciated for nearly as long.

They provide the jobs our people want, the exports our country needs and the opportunities our children deserve.

Ever more complex red tape, outdated planning regulations and the banking crisis make it hard enough already, but new proposals like Carbon Floor Pricing and extra employment laws are in danger of making our industries uncompetitive in the world markets where we sell our products.

We need to speak out for our manufacturers.

Local, small businesses don’t need handouts or favours, nor do they want them. They want the opportunity to tender for large public sector contracts for government, health trusts and the like. They don’t want to provide that

opinion

service for the whole country, but would be superb at delivering it in their local community.

Let’s speak out for local businesses providing local services in their own communities without needing to employ an army of lawyers just to get through the tendering process.

I’d like to speak out for the industries of tomorrow. New and emerging businesses are all around the North East. Green energy, digital, and advanced manufacturing will be for the future what coal, steel and shipbuilding were in the past.

These knowledge-based businesses need well trained, hard-working people. Let’s speak out for the great work that the region’s educators do. From apprentices to university graduates, from specialist researchers to people working to help businesses to grow and develop, from school leavers to captains of industry, all depend on a great education to help them achieve their full potential.

Let’s speak out to ensure people get the training and support they need to succeed in our region’s businesses, growing jobs and opportunities for us all in the future.

The North East is a great place in which to live, work and build a career or a business. There are challenges ahead to be sure, but let’s make 2012 the year we speak out for all the good things about the North-East, our potential for the future and our pride in our past.

If business leaders don’t speak out about that, soon there will be no-one left who will. n Alastair Thomson is chairman of the Institute of Directors in the North East and dean of Teesside University Business School.

bq-magazine.co.uk opinion

regional economy

Partnership adds potential The reflaring of Redcar steelworks early in the new year will serve as a beacon for the rest of Teesside, says Brian Nicholls “The key thing for me is partnership working. We stand the greatest chance of securing government support, and of creating a prosperous economy for this area, if we all work together to overcome the challenges we face.”

This is Stephen Catchpole speaking, managing director of Tees Valley Unlimited (TVU) and 2011 has indeed seen this local enterprise partnership give much-needed support to Tees Valley companies in submissions that secured £26m from the Government’s Regional Growth Fund.

TVU’s leadership board grew during the year with the appointment of three private sector members, and a partnership business plan was launched. Available via the TVU website, the document illustrates aims in achieving growth and economy equity across a challenging landscape.

August 2011 brought a significant boost - the announcement of the Tees Valley Enterprise Zone.

Hailed by Eric Pickles as “bold and clever”, the proposal from TVU stood apart from others with significant financial incentives spread across the five Tees Valley boroughs rather than concentrated on one single location.

Twelve individual sites benefit from simplified planning regimes to kick-start development. Business rate relief encourages significant growth within the SME sector, and the coveted

Stephen Catchpole: “Our greatest chance lies in working together.”

endorsement from the Government for the area’s innovation and ambition for growth. Further partnership work saw £6.2m secured for improving local neighbourhoods, and £5.6m allocated through a Growing Places fund to help realise several infrastructure projects under discussion. The Chancellor’s Autumn Statement named Tees Valley as a Centre for Offshore Renewable Engineering. Recognising the area’s location and skills set, the Government aims to focus comprehensive support on the key areas able to attract inward investment from the renewable manufacturing sector.

enhanced capital allowance scheme allows large-scale occupiers to offset start-up costs of plant and machinery.

TVU was the first local enterprise partnership to sign a memorandum of understanding with UK Trade and Investment. The LEP was identified as lead contact for attracting and co-ordinating foreign direct investment across Tees Valley. A similar first with the Environment Agency is expected to enable the development also of a strong and sustainable economy within a vibrant and resilient local environment. A second round of Regional Growth Fund surpassed the first with almost £40m secured for the Teesside area. Support for existing and emerging sectors are seen as a clear

So can the momentum continue into 2012?

“Steelworks will fire up Redcar once again in 2012, and there are projects in the pipeline that will start to evolve,” says Neil Kenley, TVU’s director of business investment. “The Tees Valley Enterprise Zone will go live in April, and we are already speaking to landowners and developers to ensure the sites realise their maximum potential.

“We know the economy continues to face challenges. However, we also know our critical role is to work with our partners to cement the foundations that will support the long-term vision for Tees Valley. We are confident we are standing on strong ground.” n

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regional economy

opinion

We’re building on success A new Low Carbon Enterprise Zone makes the North East an attractive location for development, says Paul Woolston Our region is full of thriving companies, inspiring entrepreneurs and growing industries. The North East remains a strong regional market place and, through the establishment of the North Eastern Local Enterprise Partnership (NELEP) and the development of our newly designated Enterprise Zone, the region’s outlook remains positive.

We are working together to make the North East one of the best places in the UK to develop and grow business from.

The announcement of government

The Enterprise Zone will deliver real benefits for the whole region.

It builds on our success to date in low carbon manufacturing; electric vehicles; offshore wind; and science and innovation, and it will help the North East become a world leader in the emerging market for low carbon research and development, manufacturing, installation and maintenance of low carbon technologies. In October the North East welcomed a £6.2m boost as the

I am confident that we can foster local enterprise and create the conditions needed to prosper backing for the new Low Carbon Enterprise Zone in the North East in August was just the start. Private sector growth is essential for our region to develop and the new Enterprise Zone will help to create jobs, attract investment and provide the stimulus our region needs to reach its potential.

The NELEP is working closely with the local business community on this important initiative. It will be delivered as part of an over-arching strategy designed to transform our economy by growing the private sector business base; expanding key sectors; creating a higher skilled workforce, improving critical infrastructure; and renewing our cities, towns and rural areas.

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regional growth fund was announced for the low carbon vehicle sector.

Delivering a range of projects, the bid will look to develop further the automotive industry in the region.

The Chancellor’s autumn statement brought more good news for the area as the NELEP was named one of five Local Enterprise Partnerships to become new centres for offshore wind and renewables engineering.

The new centre in the North East will have a specific focus on the River Tyne. Confirmation that the Enterprise Zone will benefit from 100% capital allowances is welcome, as is the news around the extension of Enterprise Zone status to South East

Northumberland, which will vitally support the area, when it needs it most.

The medium-sized Business Pathfinder project is also good news. We shall work closely with the CBI and businesses to help remove several of the barriers currently faced by some of our thriving midsize companies, and help them to grow and create new jobs. I am also keen that the LEP works pro-actively with partners in the region to seize opportunities emerging from the additional money that has been allocated to the Regional Growth Fund.

The NELEP has been working hard to put a robust case for the North East to government ministers and the Government appears to be listening to us.

There are challenges ahead but with public and private sector working strongly together I am confident we can foster local enterprise and create the conditions for business to truly prosper. This is an exciting time for the North East, and the NELEP will continue to be at the heart of the region’s development and striving to support local business and champion growth. n Paul Woolston is chairman of the North Eastern Local Enterprise Partnership and senior partner at professional services firm PwC in the North East.

bq-magazine.co.uk opinion

regional economy

Enterprise champion Paul Woolston believes the North East has the potential to become the best place in the UK to develop and grow businesses

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regional economy

overview

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bq-magazine.co.uk overview

regional economy

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regional economy It’s becoming regular theatre. But you never know, till final words are uttered, if the ending will be happy. So the region watches askance each time some critically sized business caught in crisis plays out the drama.

Swan Hunter and other shipyards were earlier examples. More recently Northern Rock and Teesside’s steel industry were traumatised. Now it’s Rio Tinto Alcan, Northumberland’s biggest employer, and the curtain looks to be falling for the last time with 500 employees having to look for new, perhaps totally unrelated jobs in this region with the UK’s highest unemployment already.

Fortunately, the North East is more resilient facing adversity than before.

Financial crises that once made administration, receivership and bankruptcy inevitable, for example, are no longer viewed in isolation and are treated more circumspectly, but with no less concern.

Thus, into 2012 a Teesside steel industry will be re-ignited after gruelling months of negotiation. The determination of two men above all has kept the lights on: Jon Bolton, ex-managing director, and Geoff Waterfield, equally resolute trade unionist who, sadly, died at 43 and will not see the rewards of his endeavours.

They led the campaign to ensure the survival of a 150-year tradition on Teesside, and jobs by the thousand with it.

Despite a months-long baying for blood by several City analysts, Northern Rock - or at least a “good” part of it has been saved for certain by Richard Branson’s Virgin Money fronting for a US tycoon specialising in revivals. Jobs are likely to continue reducing. There are doleful forecasts that the £747m purchase will lead to a £400m loss to

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taxpayers in the end. The purchasers’ riposte is that all will work out well financially once the future of Northern Rock Asset Management, the “bad” part of the bank holding the worst of borrowers’ loans and mortgages – yet still regaining lost ground - is finally settled. Jobs will diminish as they are relocated from Newcastle to Sunderland and Yorkshire. Northern Rock was UK banking’s benchmark in

Perhaps a silver lining gleams already, for 17% interviewed had received a pay rise.

Indeed at precision manufacturer Express Engineering, all staff got a handsome 12½% rise.

And since the region’s present complement of 14,000 millionaires is expected to reach 20,000 by 2020, we can perhaps all clutch chirpily at straws cost efficiency before collapsing under a melange of management greed and stupidity. There’s a lot of “chin-up” campaigning going on as challenges confront the North East economy, but can the Coalition Government induce an economy stimulating enough private sector jobs to offset those lost in the public sector?

Ironically, while the North East’s flush-out of public sector jobs is already along with that of West Midlands, the

overview

most severe in the country, government jobs are increasing in the South. Think tank IPPR North wants closer focus on job creation in our region. The Government cites in reply a £1.4bn fund and other millions of input as proof of commitment.

But even this is no match for sums the region previously got to develop its economy. It is even told now, unlike London, to sell off its regeneration sites and hand over the cash to central government. OPR, a body appointed by the Government, predicts a 900,000 job increase in the nation’s private sector over the public sector losses by 2015.

Meanwhile, youth unemployment in our region was up 20% in six months

by November, the 29,775 out of work being almost double pre-recession.

A contract promising nine months’ work for A&P Tyne shipyard, involving a section of hull in one of the nation’s new aircraft carriers, has been switched to the South Coast because the commissioners, Aircraft Carrier Alliance, want a “balanced workload” across UK sites. One thinks wryly how different things would be in the North East if governments thought like that.

But the North East is unsurpassed in exporting. Jonathan Riley, Grant Thornton’s senior partner in the North East, says businesses here remain resilient. Jonathan Greenaway, partner and private business specialist at PwC also in the region, observes: “An increasing number of brave entrepreneurial frontrunners are taking a more aggressive approach towards increasing their market share.”

While generations of unemployed are unremarkable among families living in some pockets of poverty, there are other areas of considerable wealth where homes change hands for a million pounds and more. Indeed,

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regional economy

overview

millionaires in the region have increased by 2,000 to 14,000 in two years, according to Barclays Wealth. They may live in the like of Tynedale, Darras Hall, Gosforth, Ashbrooke, Cleadon Village, Durham City, Wynyard, Great Ayton and Stokesley.

Many are philanthropic, and it would be nice also to see more non-residents like City hedge funder Andy Preston, who is investing in his home town Middlesbrough and, through his charity is asking others born and bred there to fund community projects and endangered public services.

The unwealthy find compensation in the region’s relatively high quality of life.

Newcastle, for example, is reportedly

Britain’s most positively mentioned city on websites. But certain realities are inescapable. The North has more empty shops in its high streets, the British Retail Consortium confirms. Critical business distress had risen by over 38% year on year by mid-2011, according to rescue and recovery specialist Begbies Traynor. By comparison, the national picture was static.

It might have been worse but for the North East being now the nation’s pay freeze capital, with 75% of workers surveyed telling the Chartered Institute of Personnel Development they had not had a pay rise during the past year. Hopefully new and renewable energy, process industries, the digital

sector, advanced manufacturing and the low carbon agenda can catalyse, as can heavily investing companies like Nissan.

Perhaps a silver lining gleams already, for 17% interviewed had received a pay rise. Indeed at precision manufacturer Express Engineering, all staff got a handsome 12½% rise. And since the region’s present complement of 14,000 millionaires is expected to reach 20,000 by 2020, we can perhaps all clutch chirpily at straws.

Even Paul Callaghan, chairman of the doomed One North East development agency, suggests there is much to be confident about “within a context of realism.” Just note that rider. n

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regional economy company profile

Taking the initiative towards local economic growth As the effects of the economic downturn continue to be felt, making Newcastle “A Working City” is one of the Council’s four strategic priorities, as Chief Executive Barry Rowland explains These are hard times in our cities. With an economy still shackled by the recession, there is less investment, more people out of work and more pressure than ever on public finances. We know that maintaining and improving Newcastle’s economy is a challenging proposition; growth in the UK remains subdued, while our ability to benefit from an export-led recovery is held back by the ongoing Eurozone crisis.

But, in contrast to our experience of previous economic cycles, the impact of the recession in Newcastle has been similar to that across the country as a whole. And positive progress on many fronts has been maintained, despite the challenging conditions.

Some of the city’s key investment opportunities are now being delivered.

The first investment on Science Central – which will utilise Newcastle’s world-class research strengths to generate new opportunities in the areas of science and innovation – has been agreed. Siemens recently launched their national Energy Services Training Centre in Newcastle, reflecting our location at the centre of the UK’s renewables economy. New manufacturing jobs in the marine and offshore energy sector are being created on the banks of the Tyne. The commitment made by Virgin Money to build their business from Newcastle gives renewed impetus to our role as a centre for financial and business

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Barry Rowland, Chief Executive, Newcastle City Council

Despite the current economic challenges, the Council will continue to invest to stimulate regeneration and create employment opportunities services. With Gateshead Council and our destination marketing agency, NewcastleGateshead Initiative, we have transformed the visitor economy.

Educational attainment has increased

rapidly, with a strong educational sector providing the skills base necessary for future growth, supported by first rate colleges and universities with world class research facilities.

The Council is determined to build on this positive momentum. We have ambitious plans for the city, and genuinely believe we have the opportunities and projects to help lead the recovery from recession, rising to the challenge Government recently set to England’s biggest cities. We are pushing Government hard to ensure that words are turned into concrete actions, and are aware that with freedoms come responsibilities.

We are working with partners across the region, including the North Eastern Local Enterprise Partnership (NELEP), on issues extending from transport and strategic infrastructure, to stimulating growth through the recently announced Low Carbon Enterprise Zone, where companies will benefit from Enhanced Capital Allowances and business rates relief. We are establishing a new inward investment or ‘business winning’ team with Gateshead Council, which will be tasked with working with the NELEP and UKTI to drive forward investment.

Despite the current economic challenges, the Council will continue to invest in infrastructure and housing projects to stimulate regeneration and create employment opportunities.

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regional economy company profile

The council has ambitious plans for the city, to help lead the recovery from recession Across the city as a whole, the Council is proposing capital expenditure of around £160m next year, continuing to transform the city, whilst providing a major boost to the local economy.

With Gateshead, we have developed an innovative proposition to speed up the rate of development in our shared urban core. Our ‘Accelerated Development Zone’ is centred on using Tax Incremental Financing to tackle current market failure, and barriers to growth, on our major development sites. It will use future business rates receipts generated as a result of new development to cover the funding costs of the enabling infrastructure.

Our business base is strong and working to create its own solutions; for example, through the biggest and most successful Business Improvement

District in the country, NE1. The ‘Alive-after-five’ campaign, with shops extending their opening hours and free evening parking, has led to a significant increase in footfall, with an extra £50 million in revenues created in its first six months of operation.

Above all we are determined for Newcastle to be demonstrably open for business, encouraging development to maintain the momentum of recent years as we move forward, positioned to take advantage of economic renewal.

Whilst not taking our eye off the need for growth to be sustainable (and to create opportunities for the many, and not just the few) we will do all we can to create the best conditions for new jobs and investment. We believe that major steps forward have already been

taken, but there is more to be done, as a Council, and as a city, to promote investment. To this end we have recently published a consultation ‘Newcastle a Working City; how best to create growth and opportunity in tough times’. I urge readers from Newcastle and beyond to engage in this consultation, helping us shape the city’s economic future. n

Rob Hamilton Head of Economic Policy Newcastle City Council Tel: 0191 277 8947 Email: rob.hamilton@newcastle.gov.uk www.newcastle.gov.uk

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north east in the city Playing the stock market is a rodeo ride at this point, with even normally stable investments bucking and bridling under global stress. Time has shown that investing in a portfolio of North East shares can often prove more profitable than relying wholly on a yield from the FT All Share Index.

But fewer and fewer North East stocks exist to invest in now. So where do we go from here?

bq-magazine.co.uk opinion

north east in the city

Our stocks reflect global turmoil Vinay Bedi inspects the North East’s badly hit list of share quoted companies and finds it doing surprisingly well It would, of course, have been folly to have expected the North East list of quoted companies to have remained immune to the huge volatility that was experienced across stock markets over the last 12 months.

However, disruption to both our list of quoted companies and our region has been perhaps greater than at any stage in living memory.

The North East has always been susceptible to quoted companies being taken over by larger national and international firms, as our more focussed and frequently top operators have succumbed to the big buyers.

However, that theme appears to have been accelerating in the last 12 months while an unfortunate array of suspensions and delistings has reduced the total number of regional quoted companies to around 23 (depending upon the unlikely prospect of those suspended stocks “returning”).

We knew at this stage last year that Arriva, the train and bus operator based in Sunderland, would be leaving the list following a German takeover.

Since then, one time high flyer Eaga has also succumbed to the takeover pressure and fell to Carillion earlier in the year, and Northumbria Water once again faced up to yet another takeover and disappeared from the list a few months ago.

Perhaps most surprisingly, the extremely successful and high flying oil equipment and services company Wellstream was taken over during the year. We are frequently asked why the success of our regional quoted companies really does matter, and why it benefits the North East to have more?

There are lots of different ways of looking at this question. I would simply highlight a couple of thoughts – quoted companies tend to be “larger” and have invariably passed through a rigorous process of analysis and assessment. Subsequently, they tend to be “safer” businesses with greater anticipated lifespans and prospects for concerted growth following on from this.

Inevitably, therefore, they are more likely to employ greater numbers of people. Having quoted companies in this region also means that the focus of the managements’ attention, their homes, their families, lifestyle, schooling etc is also based in the region, which ensures a degree of loyalty to the area that wouldn’t be apparent from management who don’t live here.

This subsequently means that investment might be focussed in the region by these companies while the risks of closure or scaling down are likely to impact least and probably last

The North East has always been susceptible to quoted companies being taken over by larger national and international firms on the headquartered location.

Sadly, it isn’t just takeovers that have led to our list being severely reduced during the current year. The desperate economic conditions that continue to prevail worldwide led to a number of shares being suspended with perhaps the most prominent of these being Southern Cross Healthcare. Both China Goldmines and Tolent remain suspended shares with little likelihood

19

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north east in the city of a return to a listing anticipated. Also we saw Romag delist from the markets in the Spring.

With such a large range of takeovers and deletions from the list, the usual measurement of quoted company performance against the major FTSE All Share Index became much more difficult and complicated in the year to the end of October 2011.

On the face of it, the North East quoted share list has actually performed quite well. In share price terms the list is actually up by an average of 14.8% quite an excellent performance compared to the equivalent loss of 2.6% incurred by the FT All Share Index. However, it must be taken into account that the large number of takeovers (calculated as at the point of takeover) has clearly worked to our benefit in measuring the average performance.

The same positive impact was noticeable when measuring the growth in market capitalisation of our regional stocks. The actual rise in the value in North East companies was 6.2% in the year to the end of October 2011.

However, this fell by a huge amount if one deducted the very large regional operators Amec and GlaxoSmithKline from the actual list. (We include those companies in the list due to the presence of a large workforce in the region).

The actual market value of our holdings fell by 21.1% if one excludes these two large FTSE 100 companies; as we’ve seen this compares with a drop in the FT All Share Index of 2% over the same period.

Hence, the measurement of performance for the last year has become over-complicated and somewhat superfluous. Reality is that investors have flocked to larger blue

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opinion

COMPANY

Year to 31 October 2011 Price Change

Market Cap Change

AMEC PLC

-14.8%

-14.5%

BARRATT DEVELOPMENTS PLC

13.7%

13.7%

BELLWAY PLC

33.0%

33.0%

BRULINES GROUP PLC

-14.5%

-14.5%

CARR'S MILLING INDUSTRIES PL

22.3%

22.3%

CONSOLIDATED GENERAL MINERAL

Suspended

Suspended

EAGA

91.1%

Taken over

E-THERAPEUTICS PLC

-0.8%

107.9%

GLAXOSMITHKLINE PLC

14.7%

11.8%

GO-AHEAD GROUP PLC

1.9%

1.9%

GRAINGER PLC

-20.9%

-20.9%

GREGGS PLC

11.8%

11.2%

HARGREAVES SERVICES PLC

59.8%

60.8%

HELIUS ENERGY PLC

-42.3%

-10.5%

IMMUNODIAGNOSTIC SYSTEMS HLD

6.4%

8.3%

NORTHERN BEAR PLC

-35.9%

-39.8%

NORTHERN INVESTORS COMPANY

20.4%

20.4%

NORTHGATE PLC

5.3%

5.5%

NORTHUMBRIAN WATER GROUP PLC

31.2%

Taken over

OPSEC SECURITY GROUP PLC

96.4%

110.2%

ROMAG HOLDINGS PLC

-29.7%

Delisted

SAGE GROUP PLC/THE

3.2%

3.6%

SOUTHERN CROSS HEALTHCARE

Suspended

-78.4%

STADIUM GROUP PLC

-6.8%

-6.2%

TANFIELD GROUP PLC

113.7%

113.7%

TOLENT PLC

Suspended

Suspended

VERTU MOTORS PLC

-12.5%

-12.5%

WELLSTREAM HOLDINGS PLC

7.0%

Taken over

ZYTRONIC PLC

30.6%

35.1%

Average Movement %

14.8%

6.2%

FTSE ALL-SHARE INDEX

-2.6%

-2.6%

chip companies (in this case GlaxoSmithKline and Amec) at the expense of the smaller type of operator that our list tends to be made up of.

The region did still produce some excellent returns as one would expect, and Tanfield Group went back to the top of the class with a staggering

increase in its share price and market value of just under 114%. Tanfield partially divested itself of its Smith Electric Vehicles subsidiary and there is now talk of a potential flotation of this business in the USA in due course.

Only just behind Tanfield was the rapidly growing Opsec Security Group

bq-magazine.co.uk

north east in the city

opinion

by just under 36%. Grainger continues whose market value increased by to operate as one of Britain’s largest 110% and its share price by a still residential housing operators, but its admirable 96%. shares fell by just over 20% during Also with an increase in market value another difficult year. of over 100% was E-Therapeutics, With many suspensions, takeovers and although this was undoubtedly helped delistings it is difficult really to analyse by a rights issue and indeed the actual which stocks have disappointed more share price of the business remained than others during the year. almost flat.

Of course shareholders in Southern Great credit must also go to Hargreaves Cross will be inconsolable at the demise Services, whose shares rose by just of the company, such a large care under 60%, impressive during such a homes operator. The stark reality of harsh economic climate. This business what is happening in our economy and really is a rising star of the North subsequently in our stock markets is East economy. clearly reflected in the decimation to On the downside, Northern Bear the North East quoted company list succumbed to the extremely harsh for 2011.16:56 That the economy and construction market 100x148c:51429 and its shares fell 16/12/2011 51429 Mill NECC Page 1

markets need a period of stability is clear to see, and one very much hopes that we will be able to report a much happier picture during 2012 with the ultimate hope being a reverse in the decline in the numbers of companies on our now depleted list. n Vinay Bedi is divisional director, Brewin Dolphin Newcastle.

Brewin Dolphin are brokers to: Hargreaves Services plc, Immunodiagonostic systems hl, Stadium Group plc, and Zytronic plc. Brewin Dolphin are joint brokers to: Greggs plc, Northern Investors Co, and Sage Group plc. Opinions expressed in this document do not necessarily represent the views held throughout Brewin Dolphin Ltd. The value of your investment may fall and you may get back less than you invested. Past performance is not an indication on future performance.

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21

bq-magazine.co.uk

north east in the city

opinion

gOing tO MarkEt stiLL Pays The UK’s dedicated market for smaller and growing companies could prove an important support mechanism for North East firms in the year ahead, writes Mark Fahy In 2011 AIM, the UK’s market for smaller and growing companies, showed it remains the world’s most successful growth market, and the year ahead looks even more positive.

Since its launch, we have seen a number of North East firms successfully float on AIM. I am convinced there will be many more. The pipeline of firms in the North East is looking strong and AIM can help to grow these businesses, providing valuable capital but also a way of improving brand visibility and a company’s profile.

Since 2008, more than 300 companies have been admitted to AIM, raising more than £3.6bn. So even in a difficult economic climate, firms from all sectors look to AIM for access to capital and to realise their growth potential.

Deciding on raising money through an Initial Public Offering (IPO) is, of course, an important decision and one to be considered carefully. The strength of the UK public markets and its financial community means there is an exceptional infrastructure to help a company decide, and to implement their strategy if it should pursue a listing, although life as a public company is not suited to all businesses.

AIM not only offers companies good opportunities for growth at admission but also access to a unique community of investors and analysts throughout

22

There is a need for for a deep restructuring of the funding infrastructure, based on a far greater role for equity finance their life as a public company.

I think it important to note that an IPO on AIM is not simply a one-off fundraising event. Investors who are convinced by a company’s performance and prospects are often willing to support it by buying into further share issues in the months and years after it has floated.

To date, companies on AIM have raised almost £35bn in capital at admission with further fundraising reaching over £40bn. The levels of capital raised is a good example of the vital role

AIM plays in supporting the growth ambitions of firms throughout their time on our markets.

The London Stock Exchange works closely with the business community on an ongoing basis to try to build a policy environment that gives companies better access to capital. We believe there is a need for a deep restructuring of the funding infrastructure, based on a far greater role for equity finance as an investment class and as a funding mechanism.

As a group, we have been at the forefront of discussions calling for improvements to the tax policies for SMEs. With good, straightforward, attractive access to funding, SMEs will be able to create jobs and drive growth. The UK’s future growth and competitiveness will be built on the excellence of our 4.8m SMEs and this is a key time for that community, access to the right sort of funding is vital.

The London Stock Exchange continues to offer a reliable route into a market that will continue to support the business as it evolves, giving them access to the deepest and most liquid pool of capital in the world. n Mark Fahy is head of UK small and mid-cap companies - equity primary markets - at the London Stock Exchange.

new economy There’s no turning back the clock. For more than a decade the North East has moved towards a wider, more versatile economy - breaking into sectors that promise a better future tomorrow. These include renewable energy, electric transport, digital applications and advances in pharmaceuticals, life sciences and process and fine chemicals.

Outcomes should prove rewarding

bq-magazine.co.uk opinion

new economy

Moneymaking? It’s a chemistry You create more value making things than polishing them, says Dr Stan Higgins, chief executive of the North East Process Industry Cluster (Nepic) in an interview Out of 38 investments totalling more than £3bn that the process industry sector has seen over five years, 18 have been “green” investments.

And while eight factories closed during the recessionary period, four have reopened under new ownership - and there have also been significant additional new investments.

These indications of a robust sector of the North East economy emerge during a BQ Yearbook interview with Dr Stan Higgins, chief executive of the North East Process Industry Cluster (Nepic).

What is Nepic’s vision?

To continue to rejuvenate and grow the chemistry using industries, and lead the sector into a low carbon more sustainable future.

Some suggest UK manufacturing is in terminal decline - what say you?

Not true in the case of the chemistry using process industries. Output from this sector in the UK has grown year on year for the last 30 years. However, jobs are fewer as these industries have become ultra-efficient and proved able to compete very effectively in global markets. The UK remains within the six largest producers of chemical products in the world. And our sector is the last

25

bq-magazine.co.uk

new economy

have pharmaceutical divisions, surfactant divisions, coatings divisions, consumer products. Through the culture of merger and acquisition, Western industry centred more on specific market segments, leading to a much more diverse industrial ownership. By 2004 all chemistry based sectors in the region, chemicals, pharmaceuticals, polymers, biotech etc had grown used to working together on cross-cutting themes. They created Nepic to focus on their growth needs.

remaining net export industry in the whole UK economy.

What impact has the recession had on the manufacturing?

Downturn occurred, particularly in our sub-sectors that supply large quantities of materials used in construction, automobiles and white goods. While eight factories closed in our region during the recession, four have reopened under new ownership and there have also been some very significant additional new investments.

Why is manufacturing so important to the British labour market?

A higher volume of better paid and more satisfying jobs comes from manufacturing. Some 600,000 jobs in the UK depend on the chemical process industry, and the economic return in gross value add (GVA) terms achieved by each person in the manufacturing sector is much higher than in the service sector. Banking is just about the only exception. But potential job numbers there are much lower.

Why is a strong, vibrant manufacturing industry important to the UK economy?

The GVA - gross value add - of all manufacturing is almost £50,000 per person in employment, whereas in services it is only £30,000. In chemicals and pharmaceuticals it is as high as £90,000 per employee - about 20% higher than, for example, the aerospace Industry. So you create more value making things than polishing them!

What is the history of Nepic?

An embryo emerged during the 1990s with the diversification of the chemistry using process industries. This arose

26

opinion

Output from this sector has grown year on year for the last 30 years and it’s the last remaining net export industry in the whole UK economy

from market driving forces making firms much more customer focused. In the West, big conglomerates used to

What, then, are Nepic’s main objectives?

Nepic focuses all its activities on growth and rejuvenation of the sector. We identify investment opportunities for the region, and trade and sales opportunities for our members. And membership activity aims at improving supply chain performance. Skills development, productivity and efficiency improvement are all key to this. We also maximize the opportunities for our members to meet and exchange ideas. Last year we held 15 networking events, attended by 2,300 people.

What industries are you currently working with?

Nepic supports the chemical. pharmaceutical, speciality materials, polymer, rubber and biotechnology industries. Chemistry and life sciences are very strong in the North East. They employ more than 35,000 people locally and generate over 60% of the region’s £10bn of exports. We fully support anyone in the supply chain of these industries including suppliers of legal services, logistics, engineering, measurement science, etc. So we have an industry footprint of more than 1,000 companies. n

bq-magazine.co.uk

new economy

opinion

Blowing confidence Some of the best technologies from around the world are being brought to Blyth for the UK, says Andrew Mill With the best offshore wind, wave and tidal energy resource in Europe, offshore renewables will provide the bulk of our renewable power in the UK. To achieve 15% of energy consumption from renewable sources by 2020 will require a contribution from renewable electricity of 30% of total generation.

In 2010 this figure was around 7%.

Besides having the right political and market measures in place, the offshore renewable industry must also reduce the cost of energy to increase the confidence of the financial sector and free up investment required to allow market expansion. This means improving productivity and reducing both capital and lifetime operations and maintenance costs.

Lessons are being learned offshore in these nascent industries with high profile failures witnessed at both prototype demonstration stage and in the early years of full scale farm deployments. Problems have been widespread, ranging from the stability of foundations to electrical connection delays and mechanical system breakdowns. These result from taking some onshore wind technologies offshore, and from testing untried new technologies in the operational marine environment.

Narec is bringing best technologies from around the world to the UK to demonstrate improved performance

Blade advance: Andrew Mill (right) with Colin Sargeant of Shepherd Construction in the new 100m blade test facility under construction at Blyth.

and reliability through accelerated lifetime testing and demonstration in a controlled environment. We are working with the knowledge base and supply chain here in the UK to lead innovation in the technologies and practices offshore which will provide

the basis for future cost reductions and improved performance.

Since it was established in 2003, the National Renewable Energy Centre (Narec) has invested over ÂŁ150m of government, private and European funding to create a unique portfolio

27

bq-magazine.co.uk

new economy of independent test, development and demonstration assets for the offshore renewables industry. New facilities to test wind turbine blades up to 100m long and tidal turbine drive train systems will open in spring 2012.

A facility to test the turbine drive trains to be used in bespoke offshore wind turbines up to 15MW, designed for UK sites, will follow in 2013. Subject to consent and investment from development partners, we hope to start building out a 15 turbine offshore wind demonstration site for prototype machines from 2013.

These world leading facilities and capabilities have been established to meet the demands of

INTO THE CHAIR Trevor Murch is the new non-executive chairman of the National Renewable Energy Centre (Narec). He succeeded Alan Rutherford on December 1, who stepped down after six years as chairman.

An Oxford University graduate, Harvard Business School MBA and qualified accountant, Murch brings more than 30 years’ experience as a senior executive, managing high-value global businesses in the energy, engineering and aerospace industries.

opinion

technology developers, manufacturers and utility developers. They provide the route to market for both existing suppliers and new entrants to the industry, and will be important in helping the UK to achieve its renewable energy targets and reduce carbon emissions.

Anchoring the best technologies and expertise in the UK means we can speed deployment of our own offshore generating capacity and deliver maximum economic return for the UK in the long term. ■ Andrew Mill is chief executive of the National Renewable Energy Centre (Narec).

company profile

company profile

£4M INVESTMENT IN NORTH EAST SOFTWARE Software will continue flourishing in the North East thanks to £4m of investment in the region’s flourishing computing industry Sunderland Software City - which since 2008 has helped create 100 jobs and nearly 50 new businesses start across the North East - has received £1.86m from the European Regional Development Fund to continue its work for a further three years, funding matched by Sunderland City Council.

The initiative offers companies the support they need to succeed at home and abroad, including one-on-one business and technical mentoring, help securing finance and developing business plans, assistance expanding overseas, market research and introductions to investors, collaborators and customers.

It is also making sure the region has the software workforce and infrastructure to compete internationally, including the £10m Sunderland Software Centre,

28

The £10m Sunderland Software Centre, opening 2012 designed to be the home of UK software innovation, opening in 2012.

Communities Minister Baroness Hanham: said: In order to compete with the growing demands of the software industry it is essential Sunderland Software City continues to grow and invest in order to achieve its ambitious aims.”

Bernie Callaghan, former Chief Executive Officer of Sunderland Software City said: “Our mission is to make Sunderland and the wider North East recognised nationally and internationally as the home of software innovation.

“Although this is a hugely ambitious target, we feel we have made tremendous progress in the last few years and are looking forward to taking the project to the next level.” ■

More information about Sunderland Software City is available from www.sunderlandsoftwarecity.com

bq-magazine.co.uk overview

new economy

thErE Must bE a bEttEr Way Selfishness and greed impede work towards a new and rewarding North East industry

The region has ample opportunity to excel in building wind turbines. It has one of the nation’s finest test centres, Narec at Blyth. Its Enterprise Zones offer windpower firms incentives to invest.

But cant, hypocrisy and disinformation threaten many opportunities..

An immense lobby around the country argues, often spuriously, that windpower is inefficient, unsightly and uneconomic. The arguments go on though countries such as Germany, Denmark and the USA find it a practical

energy and profitable industry.

With our experience in the oil and gas industries, and shipbuilding, we should have been front runners in this already.

Selfishness exists in the nimbyist attitude of many objectors who seem to care little about job creation accompanying. Greed exists in the willingness of some landowners who would sacrifice environmentally attractive sites for a quick payout – greed in the companies using all means possible to site on the beauty spots

because that could be cheaper than more sensible sites, such as offshore.

It does not help North East industry that the nimbyists seem to have the Duke of Edinburgh and environmentalist David Bellamy empathetic. Nor is there acknowledgement Britain needs every energy source it can get to avoid supply crisis within five years.

Offshore windpower is the ideal, despite being expensive. But there are sites ashore where windtowers would not harm surroundings or locals’ lives.

29

bq-magazine.co.uk

new economy

Thousands of jobs meanwhile could emerge on Teesside with three major new green schemes the process industries propose: a plastics recycling facility, a bio-ethanol plant and a waste to power generator to the area. A combined investment could be £1.5bn.

The region has green power plants creating energy from waste. The North East has been a test bed for trials of electric cars which are already running in the region and sold on a limited basis. Besides Nissan and Smiths, Avid at Cramlington hopes to quadruple manufacturing capacity to encourage early demand for its four wheel drive vehicle e-Bear.

In seeking wider benefits of carbon capture and storage (CCS) the North East is the most carbon intensive region due to the concentration of energy intensive industries it generates.x The Teesside Carbon Capture and Storage project has been brought forward by the Government as a key scheme.

Carbon dioxide emissions can be used as an input for improved oil extraction in the North Sea. Nepic is delivering a £1.7m project to ensure the successful implementation of a regional strategy for transport of

30

In seeking the wider benefits of carbon capture and storage the North East is the most carbon intensive region due to the concentration of energy intensive industries it generates biofuels. This requires further building of the supply chain if the North East is to become an internationally significant hub for biofuels.

Energy vehicle company Proton is starting commercial production of hydrogen fuel cell systems. It is now thought there is retrievable coal from under the North Sea abundant enough to power the entire world for five years and could form the basis of a new humane coalmining industry.

Inova Power, a new young company, expects to make good business by turning water into fuel. Go-ahead biotech companies are not only working in medicine. Complement

overview

Genomics for example has made its name with paternity test kits and is now into drugs and alcohol testing.

Businesses currently outstanding in life sciences were highlighted in the annual awards of the CELS organisation supporting businesses in life science and health care. Award recipients included: Hart Biologicals (for exporting), QuantuMDx (whose innovation included a hand held DNA sequencing and micro ray device), CM Pharma (outstanding growth), Healthworks in County Durham and Darlington NHS Foundation Trust (for NHS partnering, and again for primary care award), and e-Quality Learning for start-up and QuantuMDx for technology.

More than 30,000 people now work in ICT and digital media in the North East, crewing over 3,500 firms. The region’s creative commercial sector turns over £800m-plus with software, new media and video games accounting for about a third.

Nationally, over 75% of Britain’s 600 plus independent animation firms have moved abroad or may do because subsidies there can run up to £870,000, compared with mere research and

bq-magazine.co.uk overview

development tax breaks.

But video games, which overtook box office films in takings years ago, can get UK support through venture capital and development funds. Gateshead firm Eutechnyx, now 25 years old, has been recruiting 190 staff to mount its major assault in 2012 at online free to play video games.

It has gathered an estimated £7.6m of backing, mostly from Holland admittedly, but also through the Regional Growth Fund and the North East Venture Capital Fund. It will make its money online by tempting players with extras.

Brothers Brian and Darren Jobling still hold the majority of equity and are puffing takings also with a multi-year licence won to produce for one of the world’s biggest motor sports brands, Nascar. This producer is claimed to feature the most extreme damage and biggest crashes ever seen in an officially licensed racing game.

new economy There must be something about the North East and cars... Eutechnyx made its name earlier with SuperCar Challenge, Le Mans 24 Hours, The Fast and the Furious, Ferrari Challenge, and the 1.3m seller Big Mutha Truckers.

Two other Tyneside brothers, Martin and Gareth Edmondson launched Driver San Francisco in Newcastle this year.

It’s not all crash, bang, wallop though.

The Test Factory at Rainton Bridge has spread its software operation into London and Chicago and is eyeing Australia now. It runs training programmes.

A Sunderland Software Centre now complements Software City there. It will support up to 60 companies. And one of Canada’s fastest growing software firms, Namtek Consulting, has chosen Sunderland as the destination of its overseas debut.

Digital City in Middlesbrough aims to have 20 new firms created by coming

March and to be self-supporting itself within five years. It aspires to guide 20 more into high growth business. It wants to support 424 firms and bring six new ones into the region.

Newcastle is home to Europe’s first £1m digital accelerator start-up programme.

Allowances are made of £15,000 each, to be topped up to £100,000 once goals are achieved and potentials shown. Ignite100 has funds from IP Group and NorthStar Ventures.

Codeworks the not for profit connector of digital innovators has had to slim 50% with the imminent demise of its midwife One North East. It may begin training activities. But its major achievement remains its annual Thinking Digital conference attracting delegates from near and far to pick up new thoughts from sector gurus.

Sadly, hopes that Seaham might become a Hollywood of the UK with 2,400 jobs in film making, has been shelved under government cuts. ■

31

manufacturing & offshore In association with

The North East steadfastly and wisely refused to subscribe to a popular misconception that manufacturing is old hat. How good that decision has turned out to be in the aftermath of recession. Also, by taking it onward instead of accepting rundowns as inevitable, it has succeeded in exploiting new opportunities in proven fields

bq-magazine.co.uk opinion

manufacturing & offshore

Ready for the ride?

Geoff Ford, recently named Lifetime Achiever in the North East, offers his thoughts on the region’s manufacturing industry in 2012 I view prospects for manufacturing in the North East and across the UK with trepidation and scepticism.

Successive governments since Margaret Thatcher have sought to ditch manufacturing altogether, or just pretend it doesn’t exist.

Consider that, at one time, manufacturing used to employ 6.8m people and contribute 30% to the UK’s Gross Domestic Product and now figures are currently 2.5m and 11% respectively - and you could be forgiven for thinking we were heading for the proverbial scrapheap.

However, we are still seventh in a worldwide league table of manufactured output by value. And, closer to home, the North East is the only net exporting region in the UK. The question now is whether those positions are sustainable?

The Government does seem to have wakened to the belief that manufacturing matters and is to be congratulated on launching its Make it in Great Britain campaign to promote the importance of manufacturing. This at least goes some way to address the (tarnished) image of manufacturing in the UK and encourage people to consider a career in manufacturing.

As for exporting, there is a serious risk that the North East’s position as the highest exporting region per head of working population may be eroded. As

the highly regarded North East economist Ian Shepherdson points out: “Surveys don’t tell us how the economy, both regionally and nationally, will be affected by the planned endless squeeze on the public sector and the unfolding nightmare in the eurozone.

“The North East is more vulnerable to both of these negative factors than the UK as a whole. Exports to the European Union account for a significantly greater share of income in our region than anywhere else in Britain.”

Two further areas of concern relate to our chums: the banks, and the major skills shortage threat that is on the horizon. Though my own businesses’ bankers have been most helpful, they

appear to be in the minority as the banks seem to have escaped largely unscathed having learnt nothing.

I am pleased to note that the private sector is taking major steps on the skills issue, especially with the Talent Retention Solution (TRS) Scheme.

Funded by a number of prime manufacturers, it benefits not only them but, crucially, a significant number of SMEs. The Government’s “encouragement” of £1500 per apprentice only goes some way. So I’d really like to see a stronger commitment to the promotion of STEM (Science, Technology, Engineering and Mathematics) subjects to young people.

I would also welcome steps to provide meaningful incentives to manufacturers to invest in technology, skills and people. Other countries really support their indigenous industries - why can’t we? Can you really see the French letting their motor industry go the way ours did? The German economy, which may now be wobbling, was led out of recession by strong performances by its manufacturers. Our coalition government owes us a great deal, especially after the closure of One North East (sacrificed on the altar of political dogma).

Here at Ford, although we look to the future with trepidation, we are much stronger placed than in 2008/9. This is mainly the result of measures taken by

33

Both our companies are leaner, meaner, fitter and hungrier than ever before

34

bq-magazine.co.uk opinion

manufacturing & offshore

Mark Podmore, Ford’s managing director. Both our companies are leaner, meaner, fitter and hungrier than ever before, and enjoying substantial benefits from the installation of new ERP and finance systems.

We are poised to make significant inroads into the Chinese, Indian and Brazilian markets, following the successful launch of our new range of laminated materials, Plasipeel and Edgepeel. And our commitment to changes in culture, people development and exporting netted us five Awards in 2011.

Ford also houses the South Tyneside Manufacturing Forum (STMF), established in 2006 to address the

This way to the forum Anyone who would like to learn more about the South Tyneside Manufacturing Forum can contact John Wood the manager: john.wood@st-mf.co.uk

needs of manufacturers in the borough, particularly their future workforces.

The forum consequently set up an education-business partnership, Made in South Tyneside, to help promote manufacturing careers to young people.

As STMF is the only manufacturing

forum in Tyne & Wear and Northumberland, we recently decided to extend membership to manufacturers in those areas, offering them opportunity to enjoy a range of benefits, including working with our well established group of preferred suppliers.

I was talking to a fellow manufacturer recently and I asked him if times were difficult. “Yes”, he replied “but they were never easy!”

Fasten your seat belts! n Geoff Ford is chairman of Ford Component Manufacturing, Ford Aerospace and South Tyneside Manufacturing Forum.

Ford are an award winning, highly successful specialist in the precision machining and pressing of components for the aerospace, defence and commercial industries.

3 & 4 axis machining Grinding & lapping CNC turning High/low volume presswork Thread rolling & cutting Low cost tooling

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opinion

Diversity’s the game This is a great time for an industry that has the North East very much at its heart, says George Rafferty

Anchors aweigh: Alex Dawson (left) chief executive of TAG Energy Solutions, and chairman of Energi Coast, with George Rafferty.

During the last year we have seen the emergence of renewables, specifically offshore wind, as a tangible part of the supply chain.

The wind industry is the fastest growing renewable energy source and the UK is leading the field, for the UK has more projects installed, in planning or under construction than any other country, the British Wind Energy Association says.

However, although the offshore wind industry is gaining momentum, it is still an emerging entity; it is not yet truly part of the energy mix. Offshore wind has a long lead-time, so while it is

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definitely a long-term proposition, companies are continuing to explore opportunities in oil and gas as they wait for offshore contract opportunities to arise.

As for the next 12 months, renewables will continue to gain momentum and a stronger position as part of the supply chain. We shall see offshore wind beginning to be an active component in the energy mix, alongside nuclear.

Yet although 2011 is expected to be important for renewables, this sector ought not to be the sole focus of this industry right now. We are moving into a new era for energy generation and

supply, but it is unrealistic to turn our back on oil and gas yet. Businesses are continuing to work within the sector alongside exploring new ones; first nuclear, then offshore wind.

Nuclear and offshore wind as developing sectors will take some years yet to reach maturity. For now it is prudent to continue to look for opportunities in oil and gas, alongside preparing for nuclear and offshore wind.

There are still considerable untapped oil and gas reserves in fields around the world, from our own North Sea to the South Atlantic off the coast of Brazil. It is important for the planet to make best use of its existing resources as we explore and develop those of the future to the full.

A balanced future where we utilise hydrocarbon fuel and energy from nuclear and renewable sources is most beneficial in the wise management of reserves as part of the global energy strategy, and also for our industry’s supply chain, because it will help secure its economic future and the UK ’s position in the global energy market.

NOF Energy’s Annual Survey of its 370 members, revealed that while over 80% of members work in the oil and gas sector, only around half use the transferable skills and experience to work also across additional sectors including nuclear, offshore

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manufacturing & offshore

wind and other renewables.

But a number of companies in the North East are setting examples of successful diversification into renewable strands while still pursuing contracts in oil and gas. The use of transferable skills was particularly apparent in the creation of the Wave Hub project. JDR Cables from Hartlepool and CTC Marine of Darlington and Middlesbrough, experts both in the oil and gas sector, worked on this high profile renewables project.

In addition, TAG Energy Solutions of Haverton Hill, will draw on more than 25 years’ experience in the oil and gas industry to bid for contracts to build foundations for offshore wind turbines.

We are moving into a new era for energy generation and supply, but it is unrealistic to turn our back on oil and gas yet

This approach is the subject of a major national conference NOF Energy is hosting in the North East next March.

Energy, a Balanced Future, is to be headlined by the Minister of State for the Department of Energy and Climate

Change, Charles Hendry.

The event will promote the importance of different streams of the sector working together to secure the UK’s energy future. Senior executives from Conoco Philips, EDF Energy and Siemens, plus key figures from organisations such as the Crown Estate, Oil & Gas UK and the Nuclear Industry Association will advocate the importance of a strong cross-sector supply chain for both existing and emerging markets, and a balanced energy mix for the UK. That’s what the country needs. n George Rafferty is chief executive of NOF Energy.

Culture for Success Award 2011 (large company) North East Exporters’ Gateway to Global Growth Award 2011 TDR Training Award 2011 (medium sized company) Runner Up Skills & Training Future Manufacturing Awards 2011

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opinion

MakE it rEaListiCaLLy grEEn There must be better ways to help manufacturing than the present energy and environment policies offer, says Tony Sarginson It’s been a year of steady progress and modest growth for many North East manufacturers generally.

Manufacturing has always been important to this region. While UK manufacturing has dropped to around 13% of our GVA, manufacturing in the North East has remained at around 19% of our economy. So manufacturing still contribute a larger part of our economy.

After many years of various governments’ apathies towards “making things” manufacturing is now belatedly recognised as one of the few bright spots of the UK economy.

Need to establish a more “balanced” economy has brought greater encouragement from many sources to our manufacturing industries.

Firms exporting to countries outside the EU have done particularly well.

The weak pound and low interest rates have played their part too. Mind, the year had a bit of a difficult start with Japan’s terrible earthquake.

This caused some difficulty for North East manufacturers. But our usual resourcefulness was applied and the impact of a loss of supply chain parts was minimised.

We have had to live with the eurozone crisis too. One minute you think it almost resolved, the next a referendum has been called and stock prices are plummeting globally. Though the

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UK has so far limited the extent to which we’ve been affected, we are not immune. So it matters greatly to the North East what happens in the eurozone given the number of jobs and investment reliant on European firms.

It has knocked the confidence of households and investors around the world. If things were to escalate in Europe it is unclear how this would impact further. Here’s hoping Greece –

operations, subsea vehicles and the making of cables, pumps and pipes to bring the oil to our shores have been in great demand.

While optimism for 2012 remains high, manufacturers are not quite sure how long demand for their goods will remain as strong. So in 2012, we must manufacture more of those green solutions - such as off-shore wind turbines and electric vehicles. The North

While optimism for 2012 remains high, manufacturers are not quite sure how long demand for their goods will remain as strong and the rest of Europe – can deal with these problems as a matter of urgency.

Highlights of 2011 have included Nissan going from strength to strength still - and we have “best in class” suppliers to Nissan. We remain attractive to new inward investors, given the news of Hitachi trains and SSI restoking blast furnace at Redcar. Other investments have included Siemens’ new training facilities for the offshore wind industry in Newcastle.

Oil and gas supply chains have done well too. As the world seeks oil and gas from deeper and more challenging sources, the need for smarter and safer extraction has meant good business for many North East firms. Trenching

East’s capability in manufacturing can certainly take advantage there.

But we need the Government to look to its energy and environmental policies. Instead of policy after policy pushing up energy cost with little regard for economic consequence, there should be greater focus on developing the green technologies which will allow us to cut emissions and have the thriving manufacturing sector we need to rebalance and grow our economy. n Tony Sarginson is head of external affairs for the Engineering Employers’ Federation in the North East.

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manufacturing & offshore company profile

PorT oF sUnderland is seT For oFFshore invesTmenT The Port of Sunderland is poised to provide powerful support to bids for offshore energy investment in the North East.

As part of Sunderland City Council it is at the heart of a strong supply chain which can provide superb technical services, the availability of 264 acres of waterfront land, and associated facilities.

Port director Matthew Hunt has been in post since 2010, and has galvanised a comprehensive review of strategic priorities for the three hundred year old port as part of the Sunderland Economic Masterplan.

A key priority is to make the most of the Port of Sunderland’s significant strengths as a potential location of choice for those companies providing support in the subsea oil and gas engineering and the emerging offshore renewable energy markets.

The natural strengths and assets of the Port of Sunderland, and its superb location for the emerging Round 3 offshore wind farm development zones mean it is strongly positioned to become an important player in the offshore wind energy sector.

to be a choice location for the offshore wind industry. The port is key to our strategy, and its assets, location and positive attitude means that offshore businesses will be supported superbly in Sunderland.”

She said: “The supply chain is further strengthened because of our access to a high quality engineer workforce, who have the skills and experience required for offshore infrastructure work.”

loW carBon huB A close working relationship between the port and Sunderland City Council’s Business Investment team provides a platform which Matthew Hunt believes could accelerate the position of Sunderland as the UK’s low carbon hub.

Janet Snaith, head of business investment at Sunderland City Council said: “We have worked hard to get the key ingredients in place at Sunderland

infrastructure strengths The port’s rail system provides an ideal solution for clients looking for a cost-effective, environmentally friendly alternative to road haulage. There are excellent links to the national and regional road and rail infrastructure and two international airports are within easy reach.

Matthew Hunt recognises the challenges and the huge opportunities ahead for the port. He said: “The port

From left, Matthew Hunt, director of the Port of Sunderland, Councillor Paul Watson, leader of Sunderland City Council and Captain Rob Haines of MV CS Sovereign on board his cablelaying vessel at the Port of Sunderland benefits from highly experienced staff, excellent location and facilities, and is well positioned as a potential key location for the emerging offshore renewable energy supply chain.

“The available 264 acres of land, including three kilometres of quay frontage, provides a fantastic opportunity for a developer or tenant.

We have also identified market opportunities for renewable energy at the port and we are now pursuing these vigorously. These are exciting times.” n

Port of sunderland Tel: +44 (0)191 553 2100 email: matthew.hunt@sunderland. gov.uk www.portofsunderland.co.uk

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overview

fOrgOttEn arMy fights baCk They may not all be top of the list but medium-size manufacturers have a lot of potential to unlock, says Brian Nicholls

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manufacturing & offshore

The North East leads the country’s recovery in manufacturing yet only one manufacturer, Nissan at number one, appears among the first 10 names on the region’s Top 200 list.

So, largely, indigenous manufacturers are not on a billion-plus sales level. But they certainly proliferate in the table as a whole.

Many are firms the CBI calls “the forgotten army” deserving more incentives – the medium size businesses with a potential to add nearly £2bn to the region’s economy. Many of them in the £10m to £100m-plus category could do better with greater encouragement at both national and local level, the CBI believes. The sector

accounts for fewer than 1% of all businesses in the UK yet generates some 22% of economic revenue and in the North East employs 20% of the workforce – 4% more than the national figure.

The CBI has been looking at how medium size businesses drive the German economy and suggests that in a similar environment here £1.7bn could be added to the North East earnings by 2020 if the medium size businesses were encouraged to improve their performances.

All three finalists in the latest North East Company of the Year awards were manufacturers: Nifco, Kilfrost and Walker Filtration. Nifco, which

makes plastic parts for the automotives industry, is one of many North East firms benefiting alongside Nissan’s progress, but it also has good business with Ford, Jaguar Land Rover, Honda and Toyota.

Mike Matthews, managing director since 2006, now has sales close to £50m and the performance is being recognised. Besides being named Manufacturer and Overall Company of the Year winner in the regional awards, Nifco is also winning trade accolades.

It employs 250 people, soon to be 300, as it redeploys to more suitable premises in Eaglescliffe.

Kilfrost, family owned, employing more than 70 staff and run for more than

Bright and smart: J Barbour and Sons, which company chairman Dame Margaret Barbour has guided into becoming a world leading fashion house out of initial manufacturing of fishermen’s oilskins, has recently been named one of Britain’s brightest businesses.

Coniscliffe House, Coniscliffe Road Darlington, DL3 7EE, UK tel: +44 (0) 1325 390 500 email: commercial@ctcmarine.com www.ctcmarine.com

Subsea Trenching / Cable-Lay / Subsea Installation Diverless Construction Operations / Life of Field Seismic Systems

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75 years, is the global market leader in supplying from Haltwhistle de/antiicing products and ice protection fluids to civil aviation and other transport.

Walker Filtration, another family owned firm, was founded by husband and wife Brian and Carol Walker in 1983, has sales of £16.7m and employs 176 as it exports to 59 countries.

All but one of the seven North East recipients in the latest round of the Queen’s Award for Enterprise are manufacturers: Advanced Electronics of Cramlington (specialists in fire and safety), Bonds Foundry of Castle Eden, Tiger Filtration (Sunderland), Du Pont Teijin Films UK (Middlesbrough), Soil Machine Dynamics of Wallsend, a global leader in undersea robotic vehicles, and Rayovac, the Washington

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maker of hearing aid batteries.

The Sunday Times Profit Track 100 private firms with fastest growing profits included Aesica Pharmaceuticals and Wilton Group, of which Wilton Engineering Services also turned out to be one of the five fastest profitmakers in Ward Hadaway’s annual reckoning.

Bill Scott, a principal behind the founding of Wilton Group in 1994, made it a triple success, for he was announced North East Business Executive of the Year. The company excelling in offshore and petrochemicals employs 700 and has a £74m turnover.

The Daily Telegraph list of 1,000 Brightest British Businesses included Responsive Engineering Group of Gateshead, Pearson Engineering of Newcastle, J Barbour and Sons which

overview

over years has created a fashion house out of fishermen’s oilskins, and Walker Filtration. A major worry for many manufacturers, stressed by the CBI and the Centre for Process Innovation, is the fast track introduction of carbon taxes regardless of their financial effect on heavy energy users.The Government has pledged to halve CO2 emissions by 2025 well ahead of worse environmental offenders. The Government was expected to bring relief by the end of 2011. Any failure to do so might well see other companies besides Rio Tinto Alcan at Lynemouth up sticks and move to more favourable places from which to do business.

Over all though, if manufacturing is indeed back to stay then the North East appears to be admirably placed. n

“ We bring onshore synergy to offshore energy ”

Make the Port of Sunderland your new base for offshore wind and subsea engineering manufacturing, assembly and service operations.

• 24 hour access to river berths minutes from open sea • 3 kilometres of quay frontage and 264 acres of development area within the Port • Port support for renewable offshore energy, subsea engineering, North Sea oil and gas companies • Warehousing, distribution, ship repair, marine engineering and dry-docking • Bulk, unitised and project cargo-handling

Prosper in the Port of Sunderland Tel: +44 (0)191 553 2100 Email: matthew.hunt@sunderland.gov.uk www.portofsunderland.co.uk

small business Flourishing small businesses are vital to economies, and increasingly important to the North East as its era of mega-operations in “heavy� industry has drawn to a close. Yet small business often has difficulty in securing vital backing for growth, and a government acknowledging needs for a simplified playing field. Banks and government must recognise that oaks grow from acorns

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small business

opinion

Merlin’s no magician Understandable lack of confidence is the biggest obstacle preventing smaller businesses from doing more to rebalance the economy, Ted Salmon says Small and micro businesses are the bedrock of the business community in the North East. The 99,000 we have across the region make up 99% of the business community.

Statistics like these show how critical it is that the Government responds to the challenges many face. The Government should do all it can to help small and micro businesses help achieve the aims of making the North East more

entrepreneurial and helping rebalance the economy.

Our members tell us they are finding it difficult to increase sales and orders in such uncertain economic times. This lack of confidence has seen many not take on new staff and a lack of business investment which is critical to get the economy growing.

Throughout 2011 many have had to face a series of challenges to their

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small business

opinion

Thanks, Mary: Small businesses in the main seem to have welcomed many of the recommendations retail guru Mary Portas is making to revive the high streets. business, be it weather related like the snow at the start of the year or the current lack of confidence that envelops the economy.

The biggest challenge many small and micro businesses have faced is accessing the finance they need to expand – or even survive. Despite the rhetoric of the banks, statistics from the Bank of England and the British Bankers Association show bank lending to small business has dropped.

Small and micro businesses do not have access to the other funding streams that medium-sized and large businesses are offered. Worse still is the lack of understanding of small businesses from the banks that many of our members report.

Project Merlin, established by the Government and British Bankers

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Association, has not worked for small businesses and many of our members don’t expect the credit easing plans recently announced by the Government to rectify this. If small and micro businesses were paid on time by both the public and private sector this would ease the need to ask the banks for help. Research by BACs has shown that £33.6bn is owed to small businesses and the worst offenders are large businesses. Small businesses should not be used as an extra line of credit for big businesses and we’d like to see the Government take stronger action on this. Energy costs and fuel costs have also made a massive impact on small and micro businesses across the North East. Using a car or van for many is not a luxury but a necessity in getting goods to market or staff to

work. Many fear these overheads are unlikely to dissipate given recent price hikes announced by the six energy firms, and the rising costs due to inflation.

Our members also report a hardening in the attitude of HMRC to helping small and micro businesses. Too many of them report that they are not being supported in difficult economic circumstances, and there is a lack of understanding of their needs or a want to understand. Small and micro businesses will drive the recovery of the North East economy but more needs to be done by Government to help them achieve this. n Ted Salmon is North East regional chairman of the Federation of Small Businesses.

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small business

Support in a shifting landscape There was support for firms before Business Link and there will be support for them after Business Link, says David Howell

Work goes on: There are still organisations able to tailor their services to meet the specific needs of customers, David Howell assures.

The closure of the regional Business Link service in November 2011 undoubtedly impacted on the landscape of business support in the North East. As a well established brand, Business Link received thousands of enquiries from SME owners looking for support, and individuals seeking advice on how to start their own businesses.

But regardless of the wider changes being made by government, there remains a wealth of support for businesses. There was a business life for many years before Business Link, and there will undoubtedly be an afterlife.

It will change the dynamics, but knowledge still exists, and businesses want to grow. The funding that came from Business Link is obviously going

to be missed. The change will mean it is more difficult to access that kind of resource, although there is no doubt that it is still there.

Looking positively at the change, it could be that Business Link had caused an inflated rate to emerge for these services. It might bring prices down and encourage more competitiveness. That could mean a more level playing field.

Many businesses may have relied on the subsidies, and so the effect on the private sector may be that fewer companies are able to sustain that level of access. That said, it’s not going to disappear. The North East has a strong support network and the independent members of the North East Enterprise Agencies Ltd (NEEAL) are drawn from enterprise agencies from across the region. These organisations believe firmly in talking to people to find out what kind of support is needed, and they tailor services accordingly.

This face-to-face service pays dividends with many of the agencies consistently helping hundreds of people a year to start their own businesses; businesses which are still operating well into their third year and beyond.

At the BIC we are committed to this kind of support, so rest assured that our team of advisers will be on hand to provide sound advice and guidance to start-ups, via face to face meetings and as a free service, for the foreseeable

months and years. Likewise companies with high growth potential can also tap into programmes like the national Coaching for Growth initiative, which is designed to ensure businesses unlock their full potential; alternatively the Innovation Programme, which is subsidised by the European Regional Development Fund, will offer up to 40% funding to support SMEs of the North East to achieve significant step changes in their performance through the introduction of innovative strategies in any of the core business areas, to enable them to prosper.

On the property side, I have had the pleasure of working with a wide range of both private and public sector organisations all of which are committed to supporting the business community; groups like the Growth Accelerator Incubation Network (GAIN); a collaborative group of incubators and business support organisations which includes the BIC, East Durham Business Service, and Netpark. These organisations tailor their services to meet the needs of their clients and the wider business community; so whether it is a digital, high-tech or software focus each can deliver a service that can accelerate and sustain growth. n David Howell is director of operations, North East Business and Innovation Centre (BIC) Ltd.

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overview

Success is where you find it There’s absolutely no lack of variety in the opportunities for small businesses to take up, says Brian Nicholls

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There’s no lack of variety in the businesses smaller operators choose to follow – whether that is selling human hair extensions around the world or simply manufacturing for wider enjoyment the region’s savoury favourite, pease pudding.

And another 1,700 jobs and 400 businesses of an innovative nature could spring up here in the North East now through a new £2m business support programme.

Over the next two years young SMEs will be offered various “support mechanisms” from local enterprise agencies, including “boot camp” workshops, support from an enterprise coach and one-to-one mentoring.

The offer applies to pre start and high growth businesses, as well as existing small and medium firms.

Funding is coming from the European Regional Development Fund, among others, and the North East Enterprise Agencies Limited (NEEAL). Chairman Paul McEldon says: “This funding enables us to establish a regional and fully cohesive offering for potential business start-ups across the region.”

NEALL, which has been running since 2007, brings together the region’s enterprise agencies providing non-profit support to enterprise throughout the North East.

There’s a fair chance the favoured bosses may also look long term to the next generation to take them on.

About 20% of owners in the North East are looking to build their business as an inheritance for family members, research from Santander Corporate Banking suggests.

Just 17% of business owners in the North East plan to run down and eventually close their company.

Nationally that rises to 25% of sole traders who are less likely to be able

small business to sell their businesses.

Kevin Boyd, divisional managing director for the North East at Santander Corporate Banking, says: “It is encouraging that the vast majority of businesses do have a long-term aim for developing their company.”

Generally, the bigger the company, the likelier it will be handed down the generations; 28% of owners whose companies turn over £20m-plus say their ultimate aim is a dynasty. And around 29% of manufacturing firms

Many businesses must reconsider how they manage their temporary workforce, with some are being forced to end assignments early because they cannot afford to pay more

are being built for the next generation to take over, compared with just 17% in the services sector.

Some of the best news of 2012, many small business owners feel, comes at the very start of the year when a government slashing of red tape in health and safety begins to take effect.

The Forum of Private Business has welcomed the pledge by Employment Minister Chris Grayling that more than half of the current rules and regulations are to be binned over three years, starting in January.

And from January 1 a new “challenge panel” will allow businesses to get decisions of health and safety

inspectors overturned immediately if they have got it wrong. Don’t take that January 1 date too literally though.

Not all of the changes, imminent or recently brought in, will work to firms’ best interests.

Derek Boyd, partner of Waltons Clark Whitehill the Hartlepool firm of chartered accountants and business advisors, warns employers to take extra care, also from January 1, not to fall foul of a change in the way tax is handled from salary sacrifice arrangements. Following an EU court ruling, goods or services provided in return for sacrificed salary will no longer be distinguished from those issued under deduction from salary rules. So when the benefit received is subject to VAT, output tax will be due from the employer. Input tax will remain recoverable.

And of course new European employment law already in place applies to thousands of employers in the region who use temporary staff.

Temporary workers are now entitled to “day one rights”, and “12 week rights” – just like permanent employees.

Ian Storer, managing director of recruitment agency Core People, says: “Many businesses across the region must now reconsider how they manage their temporary workforce.

“Some are being forced to end assignments because they cannot afford to pay more.”

Aspiring business launchers lacking confidence to dive into a start-up with both feet can test the water first by attending the annual Great North Franchise Show to see what kind of franchise might appeal as a beginning.

And sole traders who would love to strengthen their management skills but cannot take time out do have the option of distance course learning. n

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universities Five universities provide five pillars of critical support to the future ambitions of North East business. They provide talented personnel. They give senior management chances to enhance their existing qualifications.

And they provide a powerful knowledge source and complement of expertise as companies seek to take their business in progressive directions.

And they, in turn, learn from business

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universities

opinion

Global Graduates As well as churning out the odd film star, Olympian and politician, North East universities have a strong track record of delivering prolific business and entrepreneurial people to the world, as BQ Yearbook discovers From the early captains of industry forged in red brick surrounds to the pioneers of technology who found their gift at the region’s polytechnics, the North East has long been a centre of learning for leading lights in business.

Early successes include Lord William Armstrong – the visionary inventor who gave the world war ships, cranes and armaments – while more recently, Sage co-founder Graham Wylie made his mark on the world of software after graduating in these parts.

Many more have since left faculties on Tyne, Tees and Wear to take up influential roles around the world and continue to do so as the North East’s universities become increasingly entwined with the corporate world and more focused on entrepreneurial skills.

Aside from the headline North East alumni like actor Rowan Atkinson, director Tony Scott and numerous sports and music stars, here are a few examples of lesser known champions of business who have honed their skills at the region’s higher education facilities: Andy Bird, Chairman, Walt Disney International Long before he flew to the helm of one of the biggest entertainment forces on the planet, Bird studied English language and literature at Newcastle

University. He has been instrumental in spreading the frontier of the magic kingdom deeper into Asia and other under-served parts of the world while growing the firm’s international

revenues. Since he joined Disney in 2004, he has overseen its acquisition of Hungama TV in India and investment in India’s UTV, led the drive to localise content through TV and film venture,

Jonathan Ive, Senior vice president of industrial design, Apple If Ive hadn’t studied industrial design at Northumbria University, the global crave for iPods, iPads and iPhones may never have happened. The Londoner was the creative force behind Apple’s hugely successful collection of mobile devices, such as the iPad, and laptop computers including the entire MacBook and PowerBook ranges. He was once rated by a national newspaper as the most influential Briton in the US while another publication named him as one of the country’s most influential expats. Such is his influence at the technology empire that he has even been talked up as a future Apple CEO. His legendary status in the design world came to the fore when asked by Apple to create a colourful, affordable computer and – after seeking inspiration from numerous sources including a sweet factory – he came up with what would become the first iMac. The North East graduate has over 400 patents to his name.

On top of his Bachelor of Arts degree, Ive holds an honorary doctorate from what was formerly Newcastle Polytechnic and is a recipient of the designer of the year award from the Design Museum London as well as the title of Royal Designer for Industry from The Royal Society of Arts.

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universities and reorganised Disney’s international structure and leadership ranks. Before joining Disney, he spent nearly a decade with Time Warner.

David Sproxton, Co-founder, Aardman Animation Having turned a lump of clay called Morph into a multimillion pound business, Sproxton has come a long way since graduating from Durham University and pursuing a career in film making. Behind its public faces, such as Wallace and Gromit and Shaun the Sheep, Aardman is a globally successful brand that is now a major player in the movie game, producing CGI and animated hits for international audiences. In 2006, Aardman’s 30th year, Sproxton and his fellow Aardman co-founder Peter Lord celebrated being awarded CBEs in the Queen’s Birthday Honours list.

Choo Chiau Beng, CEO, Keppel Corporation Led by a Newcastle University graduate, the Keppel Corporation is a multibillion dollar behemoth which is one of the largest offshore and marine groups in the world. It has a workforce of more than 30,000 people and a presence in more than 30 countries. Choo Chiau Beng achieved a 1st grade honours degree and a masters in naval architecture on Tyneside, which gave him the expertise he needed to progress on his journey from ship repair management trainee to global CEO. He is also Singapore’s non-resident ambassador to Brazil.

Nick Scheele, Former president, Ford Motor Company Although he has now retired from his post in Ford’s engine room, Scheele

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opinion

remains a great ambassador for North East universities and, since leaving Durham University in the 1960s, has received an honorary doctorate from the institution. He picked up his degree in modern languages at age 22 and went on to rise through the ranks at Ford. He is credited with helping to transform the fortunes of Jaguar in a stint as chairman and chief executive of what was then a Ford subsidiary.

James Averdieck, Founder, Gü The Durham University economics graduate became a pioneer of

puddings with the launch of Gü in 2003, which he grew into a £22.5m-ayear business within seven years. He came up with the idea for his own brand of chocolate puds while he was working in Belgium and was inspired by the local patisseries and sweets. With the help of a marketing firm, he initially sneaked sample boxes onto the shelves of a local supermarket and discovered a huge public appetite for the range. He now estimates that a Gü product is eaten somewhere in the world every two seconds – a statistic which could only have been calculated by an economist from a top university. n

Scott Henshall, Fashion designer After graduating from Northumbria University’s school of design in 1997, Henshall debuted at London’s on-schedule show in 2000. He has been described as an offbeat designer who finds his inspiration from a wide variety of sources including crossword puzzles and comic book super heroes, which he translates into sophisticated collections. He caught the eye of the fashion crowd with his original knitwear-based garments and later expanded his line to include denim and evening wear. His designs are sold in New York, London and Tokyo and his client list includes Madonna, Kylie Minogue, Victoria Beckham, and Natalie Imbruglia.

The 36-year-old designer from Hartlepool has even appeared on ITV’s popular show ‘I’m a Celebrity...’

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universities

opinion

Putting thought into it Whether students are looking to climb to the top of the corporate tree or spend their days on the ocean bed examining marine life, the North East’s universities have a course that fits. Andrew Mernin takes a whistlestop tour of the region’s faculties Much to the detriment of the current crop of A-Level students, university fees are rising at a rate of knots, causing many academic youngsters to seek a more practical, less expensive learning journey. Apprentice levels have soared as individuals and their parents look to earn while they learn and the prospect of an impending debt mountain puts to rest the ambition in many a young mind of going to university.

However, courses in the five universities of the North East remain as in demand as ever, and the facilities on Tyne, Wear and Tees continue to be a major draw for students from abroad, as well as boosting the regional talent pool.

On Tyneside both Newcastle and Northumbria have evolved dramatically since their respective inceptions as red brick and polytechnic. Newcastle University is perhaps best known academically for its prowess in medical and science-related endeavour. It regularly makes global headlines for the breakthroughs of its researchers.

The university’s recently established Newcastle Institute for Research on Sustainability is also currently working on urban transport, underground coal gasification and geothermal heating. Its involvement in digging an almost 2kmdeep borehole to bring hot water to the surface, could provide efficient and

cheap energy in the heart of Newcastle.

The university was placed 12th in the country in the 2012 Sunday Times University Guide – a rise of eight places and its highest ranking to date. Jostling for position within Newcastle’s city walls, is Northumbria University, which continues to expand and forge new links with higher education, industry and commerce partners throughout the UK and the rest of the world.

The larger of its two campuses recently underwent a £100m expansion. Now the university is home to 31,500 students studying almost 500 fulltime, part-time and distance learning courses. The university specialises in business, arts and design, computing, environmental science, built environment, applied healthcare, sports science and psychology, and teacher education. It also offers courses in law accredited by the Law Society and Bar Council. A 15 minute train ride from Newcastle, amid the splendour of a towering cathedral and sprawling castle, is Durham University, named in the Top 3 of UK universities in The Sunday Times University Guide 2012.

More than four in five of Durham graduates get a graduate-level job on leaving, with an average salary of more than £21,300. And along with Cambridge University, more than 98%

of Durham students complete their course, the guide added.

According to The Sunday Times it deserves its status as number one university outside Oxbridge because of high levels of student satisfaction, a low dropout rate, highly sought after graduates and a strong research-led academic track record.

On Wearside, Sunderland University continues to boost the regional economy through its increasingly global outlook alongside its ever-expanding portfolio of courses. Across a coastal and a city campus the university enjoys strong links with industry, and is viewed as one of the country’s most upwardly mobile facilities.

Key areas in its academic portfolio include pharmaceuticals, education, media, sports science, the automotive industry as well as history and English, psychology and animation.

Teesside University, the first modern university to win The Times Higher Education award for University of the Year in 2009, completes the region’s handful of quality universities.

Having invested around £130m in its Middlesbrough campus, the university particularly excels at engaging with Teesside employers and in its pioneering work in digital and technology industries such as animation. n

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back to school for business leaders and their budding replacements At a time when business leaders crave a competitive edge more than ever, MBAs and leadership courses play a vital role in passing on the knowledge needed to out manoeuvre rivals and survive the difficult days ahead. As Andrew Mernin discovers, the North East is home to a thriving community of business schools which do just that and are intrinsically linked to the economic success of the region Business and management courses are a lucrative game in the North East – not just for the collection of well equipped facilities which supply them but also for the companies which gain the skills they need to out-fox competitors, crack new markets and expand overseas.

Then there are the undoubted benefits to the regional economy and job market. Having some of the best business courses in the country attracts, uncovers and nurtures top leadership talent and empowers it to create jobs, generate wealth and lure investors to the North East.

Sunderland Business School works with over 100 businesses throughout the region and further afield, including the likes of BT, Nissan and Parsons Brinckerhoff, all of which have considerable North East workforces.

Industrial players such as Dominick Hunter and Heskel Engineering, not to mention public sector employers including the NHS and city councils, also take advantage of the school’s bespoke short courses and accredited postgraduate qualifications.

Sunderland also runs a business clinic that provides a source of relevant experts who can solve employer

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problems as well as offering weekly networking resources for local businesses. According to the school, 85% of its graduates are employed or in further study within six months of graduating.

Bernie Callaghan, Dean of the faculty of business and law at Sunderland University, said: “We are proud of our close, strong links with businesses

Not only are we here to teach and provide support, but we are also here to learn from the corporate communities around us and are committed to driving forward active, productive partnerships with business and industry to strengthen North East commercial skills and economic confidence for the future.”

Teesside University’s business school, meanwhile, is currently working with 357 North East organisations and, over the past two years, has supplied 198 graduates to regional businesses

on placements. In 2012, as the onus grows on small businesses to drive the national recovery, the school will step this up by setting out plans to deliver 465 graduate internships and knowledge exchange projects to regional SMEs. The university’s start-up programme saw 95 new businesses launched in the 2010/11 academic year, while its DigitalCity fellowships scheme, established to support digital entrepreneurs, generated 138 new companies in the three years to the end of August 2011.

Almost 50 regional business leaders took part in leadership and management programmes in 2010/11 on Teesside, while 483 employees of regional businesses completed workrelated qualifications at the university in the same period.

“Universities and businesses have a huge amount to gain from working together – now more than ever. The capacity to innovate is critical for business survival and growth,” said Laura Woods, director of academic enterprise at Teesside University.

Like Teesside, Durham Business School is also heavily engaged with private

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sector players whose success can have a significant bearing on the fortunes of the regional economy. And, as Dean of the school, Professor Rob Dixon explains, the institution is well aware of the role business schools play in fostering the corporate prosperity of the region in which they serve. He said: “In these turbulent times it is essential for every organisation to have a competitive edge. When planning for what may be an uncertain future, whether it is growth or recovery, it is vital that business leaders seek out ways to prepare themselves and their teams for the challenges ahead.”

The school supports the regional and wider business community through research collaboration, consultancy services, recruitment services, events and networking opportunities.

Among its corporate partners are Alcatel Lucent, E:ON, Sage, Deloitte, KPMG, ICAEW, Greggs, Nissan, Newcastle International Airport and Sunderland Football Club. Through activities such as its corporate forum – which gives members access to the latest research and consultancy – and business projects that match organisations with high quality MBA students, the school encourages collaboration and the sharing of ideas for the greater economic good.

On Tyneside there are two internationally-successful business schools which, despite their ambiguously similar names, offer a diversified mix of courses and services to the North East business community.

Between them, Newcastle University Business School (NUBS) and Newcastle Business School, part of Northumbria University, have close ties with firms in virtually every sector and are a major force when it comes to pouring leadership skills into the regional

Newcastle Business School is a leading light in the region’s higher education sector. talent pool. NUBS has around 2,000 students, making it one of the biggest schools in Newcastle University, and offers courses in an array of leadership, management and business disciplines with a diploma in finance, accounting and business among the newer courses at the faculty. This year will see the school officially open its new £50m building and continue its focus on sustainability as well as working on certain initiatives with the London organising committee of the Olympic Games. This academic year’s cohort of executive students joined the business school from 12 countries across the world, after accruing substantial business experience in numerous sectors, including manufacturing, retail, telecoms, and professional services.

The business school’s director of engagement Dr Joanna Berry said: “In such uncertain times we can offer the region support via applied business knowledge, research, and experienced graduates. Our work within our stateof-the-art building produces insights that can greatly influence practice and

policy in the corporate world.

“To ensure that we can transfer knowledge, and that our research impacts real-life business practice, it is imperative that we connect to the region’s business community, as well as those nationally and around the world.

“It is, however, a two-way relationship.

Not only are we here to teach and provide support, but we are also here to learn from the corporate communities around us. By doing so, we can create the relevant content in our theoretical and practical training to co-produce the business leaders of tomorrow.” At Northumbria University, Newcastle Business School offers a standard of teaching and training which ranks it in the top 10 for graduate level employability in The Sunday Times Good University Guide 2012. It delivers courses in various locations, including France, Russia and Singapore, while it also runs a corporate and executive development centre which offers “contagious and disruptive” learning approaches that challenge accepted norms. n

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voluntary sector No need to explain here what “big society� means. North East businesses and many of the people who build them are among the most generous in the country in per-head giving to community and other worthwhile causes.

There exists here also well primed machinery to ensure easy and fair distribution – and opportunities to put good money to better use

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Share in our rewards Local businesses have played a major part in the North East’s gaining of a reputation for generosity in charitable giving, says Ashley Winter The Community Foundation serving Tyne & Wear and Northumberland is the biggest in the country by some way - and local businesses have played their part over the years in that achievement.

Businesses that do their charitable giving through the Community Foundation tell us it is cost effective, efficient, hassle free and most importantly, it reaches people and voluntary organisations in most need.

In many circumstances a business just wouldn’t be aware of those organisations operating on their doorstep. However, the links through the Community Foundation are invaluable in bringing together those who want to give with those who need it.

A great example is Hexham Youth Initiative which works with young people in and around the Hexham area, offering a range of support from youth groups through to counselling and skills training for employment. It has received support from a number of our corporate donors over the years including Northumbrian Water, Nigel Wright Consultancy and Proctor & Gamble.

The Sage UK Community Fund focuses its charitable giving on nurturing talent and improving life and employability skills for people of all ages. It recently supported Benwell Young People’s Development Group with training costs

There is definitely scope for more businesses to get involved with the Community Foundation and focus their charitable giving for two young people who were using the services of the group but who wanted to train as youth workers themselves.

The value in this grant is that it not only

enhances the skills of the two individual young people, but also benefits the organisation with which the trainees are connected and will ultimately help other young people in the

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future from the Benwell area.

We currently have 48 corporate funds established, which is much smaller than the number of funds set up by individuals and families. So there is definitely scope for more businesses to get involved with the Community Foundation and focus their charitable giving.

Many businesses will undoubtedly be doing ad hoc giving with no real aims or sense of purpose, responding to requests received directly which takes up valuable staff time in administration.

The solution to that is to set up a fund at the Community Foundation and see how much more focussed it can be and how much added value can be achieved.

Staff can be involved in an advisory capacity so they get to share the rewarding side of giving, rather than just the administration, and it will cost you less in the long run!

If a corporate fund is not feasible, we also have a membership scheme with tiered rates depending on the number of employees, starting at just ÂŁ200.

This enables a company to get more closely involved with our work by attending events, receiving mailings and being aligned with other corporate names that support us. Sponsorship of our events and publications is also a great way for businesses to support us and we have a number of sponsorship opportunities each year.

My view is that our existing corporate supporters are loyal and committed, but there is always room for more to join us. The need has never been greater, which makes the time never better. n Ashley Winter is chairman of Community Foundation serving Tyne, Wear and Northumberland.

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voluntary sector

Freeing up funds pays Seeking out dormant and moribund funds and putting them to work for wider community benefit is reaping benefits, Hugh McGouran reports We at Tees Valley Community Foundation have enjoyed a very positive, if somewhat challenging, 2011. Our traditional methods of raising money to build our grantgiving endowment fund had become increasingly pressured. It became apparent we needed to shift our focus with a more lateral approach.

We started the year with two specific objectives: to seek out and secure dormant and moribund funds and liberate them for wider community benefit and to merge with our partner charity, Tees Valley Professional Services Group (PSG) with the aim of establishing a new heart of local giving for our local communities.

Our year began in discussion with Stockton Borough Council regarding a number of very old trusts in their care. We were delighted when they agreed with us, that the funds would be much more effective transferred to the foundation, resulting in over £800,000 being liberated to provide much needed funds for the people of Stockton and the wider Tees Valley.

Similar discussions are taking place with Middlesbrough and Redcar & Cleveland Councils, and we have high hopes for similar success in early 2012.

We enjoyed further success with several independent trust funds and legacies becoming part of the foundations growing portfolio. During

the year we added more than £5m to the foundation’s managed funds; a phenomenal success given the challenging economic climate we are all living with.

During the summer, following a significant amount of preparation and consultation, we began the formal merger with PSG. PSG brokers donated the time of almost 150 private businesses into the voluntary sector through one to one support and training workshops, providing free business support to transform groups from grant dependency into sustainable social enterprises.

PSG’s provision now features Viva Volunteers, a unique cross-sector hub

of volunteering supporting individuals into volunteering, organisations involving volunteers and businesses to improve their social responsibility. More than 1,000 volunteers have registered, supporting over 100 charities to date.

The foundation and PSG formally merged on 1st July, creating a unique ‘central hub’ business model for philanthropic giving and receiving of: money and social capital, volunteered time, donated expertise, training and support all of which helps to develop engaged, empowered communities.

Our communities face an incredibly challenging future with funding becoming ever harder to find and the expectation that many community groups and services will not survive.

We firmly believe our organisation is ready and able to help those groups, businesses and local authorities that want to make a real difference to the place they live and work in.

By connecting the three key sectors: the private, the statutory and the voluntary sectors, we are ready to begin 2012 as the new heart of local giving for the Tees Valley. If you or your business feel you want to be part of this fantastic opportunity we would love to help you fulfil that wish. n Hugh McGouran is chief executive of Tees Valley Community Foundation.

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unExPECtEd taLEnts Young people who might otherwise have been written off for one reason or another are showing their true potential instead, John Wall reports In the North East last year 252 young people were assisted by the Prince’s Trust Enterprise Programme.

All of them were unemployed, with 21% educational underachievers, 6% offenders or ex-offenders, 10% having a disability and 9% lone parents.

Despite these challenges, 80% of these young people are now either in jobs or self-employed, and 75% of businesses set up as a result of the Enterprise Programme are still trading after two years.

The programme aims to support young people interested in self-employment to explore and test their ideas, write plans and start their own businesses or achieve alternative outcomes in education, training, volunteering or work.

To take part in the programme, young people need to be interested in self-employment. They also need a business idea that they would like help to test and explore. The programme can then help them to see if their business idea is viable and whether self-employment is right for them.

If through this process they find out it is, the programme can offer mentoring support and, for those that really need it, financial support to start their business.

Young people going on to start a business are offered business start-up support via business mentoring for

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Young people need to be interested in self-employment and also need a business idea to test and explore

two years and a range of discounted and free support offers for three years. For those that really need it, financial support is also available.

Amounts available will depend on the resources available locally. However, in principle, low interest loans of up to £4,000 for sole traders and £5,000 for partnerships and grants of up to £1,500 per business can be offered.

To provide funds to expand and develop the Enterprise Programme in our region The Prince’s Trust Development Committee in the North East is setting up a Leadership Group of successful entrepreneurs, organisations and leaders from across the region who will help and inspire disadvantaged young people to develop and start their own businesses.

The Leadership Group will be launched

by Charles Dunstone the founder of the Carphone Warehouse and Talk Talk and the national chairman of The Prince’s Trust at the Aston Workshop on 7 February 2012. Invitations have been issued and commitments from key leaders made. If you want to be part of this, and will make a contribution of your vision and your money, please give me a call on 07802 917 615 or say ‘Yes’ to the invitation you have received. n John Wall is chairman of The Prince’s Trust Development Committee.

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communication & transport Broadband’s steady progress through our region represents great opportunities for all businesses, and especially those off the beaten track geographically. Road, rail and air links must also be up to par if the North East is to fulfil its economic potential. It looks in the latter instance as if the region will have to work even more closely to ensure a fair consideration

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Free these shackles Without having certain issues addressed immediately, the North East will always be entering the fight for economic growth with one hand tied behind its back, says James Ramsbotham

The North East is the only region not connected to its neighbours by a motorway link and we will watch with envy when the high speed rail link is created

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communication & transport The lifeblood of the regional economy pulses through our road, rail and air infrastructure.

These arterial networks, along with our digital and energy infrastructures, are essential for ensuring our businesses, particularly our manufacturers and exporters, have the best possible routes to market.

We have two excellent airports and two vibrant ports in the region – both vital components in helping the North East to become the only region in the UK with a positive balance of trade in export markets.

However, the region is the only one not connected to its neighbours by motorway link and we in the North East will watch with envy when the London to Birmingham high speed rail link is created.

Likewise our rural economy, which already performs admirably, could do so much more with upgraded broadband connection.

If the Government’s aims of rebalancing towards the private sector, towards exports, and towards manufacturing are to be achieved, then rebalancing towards regions such as the North East, which have the potential to perform much more strongly, is essential.

The region’s sustained excellence in export performance contributes enormously to UK Plc. By playing to our strengths in this field and manufacturing and utilising regional capacity for further business development, the North East could be contributing so much more.

The region’s businesses continue to generate wealth and jobs for the region. Our export performance is another demonstration of that. But if we are to fulfill our economic potential we must have the same opportunity as the rest of the UK to

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opinion

We don’t want or require special attention but we do deserve parity with the rest of the UK when it comes to investment

be globally competitive.

While we appreciate that change does not occur overnight, we are demonstrating to the Government the strategic and economic value a high-speed rail network would bring to the region, or much needed upgrades to the A1 and A19. We are highlighting also that our airports continue to be hit by heavy taxation, and that acceleration of broadband funding would enormously boost our digital network.

Without having these issues addressed immediately, the North East will always be entering the fight for economic growth with one hand tied behind its back. Likewise the announcement that Rio Tinto Alcan is to close is tragic, but we must act to ensure it is not the first of many energy-intensive businesses to suffer this fate.

It’s going to be too late in Rio Tinto Alcan’s case, but as the North East uses more energy per head than any other region, it is reassuring that the Chancellor is addressing current

energy and climate change-related policies that could have a profoundly damaging impact upon the North East economy.

These companies, like Rio Tinto Alcan, employ thousands directly and hundreds of thousands indirectly in the North East and beyond.

Energy and climate change-related policies have created a burden that, unless resolved quickly, could damage the North East economy profoundly.

Regulations that punish industries in the North East disproportionately will add to downward economic pressures within the region and undermine necessary rebalancing of the UK economy.

The North East does not want, nor does it require special attention, but we do deserve parity with the rest of the UK when it comes to investment. n James Ramsbotham is chief executive of the North East Chamber of Commerce.

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communication & transport

Superfast takes off It’s good news indeed that the Government has apportioned the North East around £20m to support the provision of next generation broadband, says Chris Sayers

One of the North East’s biggest private sector investments of recent times is underway.

BT’s roll-out of superfast broadband in the region offers a huge opportunity for local businesses and homes. This high-speed technology is already available to 191,000 homes and businesses in the region, with a further 215,000 premises set to “go live” by the end of 2012 and the roll-out is continuing. It’s a massive engineering job to route optical fibre cables from local exchanges either to new street cabinets in a deployment known as FTTC (fibre to the cabinet) or all the way to the home or business, known as FTTP (fibre to the premises).

FTTC offers download speeds of up to

40Mbps, typically several times faster than those previously used by most customers, and the fastest upload speeds in the UK of up to 10Mbps.

More improvements are in the pipeline too. Technical changes should see these speeds roughly double during 2012.

Roll-out in the North East has so far included urban areas such as Tyneside, the Tees Valley, Newcastle and Sunderland, where the superfast broadband service will be available to 90% of homes and businesses by summer 2012, as well as more rural locations such as the market towns of Bishop Auckland, Guisborough and Morpeth.

This investment in the region is part of BT’s £2.5bn programme to make super-fast broadband available to two thirds of the UK by 2014, but what about the more challenging ‘final third’? The good news is that the Government has recently announced the North East will receive around £20m to support the provision of next generation broadband.

We at BT very much want to work with public sector bodies and business organisations to reach this “final third”, which is mainly made up of rural, less populated areas where the engineering challenges and costs are much greater.

However, a partnership approach in which organisations combine resources

and expertise can often make rolling out super-fast broadband to these more challenging areas much more viable.

But can this exciting technology really deliver the hoped for benefits in these difficult economic times? Well, you cannot get much stronger words of support than those of Ed Vaizey, Minister for Communication, Culture and the Creative Industries, who recently described the availability of high speed broadband as “a key enabler for economic recovery, business efficiency and an inclusive, digital society.”

Superfast broadband will enable businesses to improve their web presence, send and receive very large files more quickly and efficiently, and give them the ability to run multiple applications on the web at the same time. Working at home and locating offices will be more viable in rural locations, and HD video streaming and high quality video conferencing will become a normal part of day to day life. It will certainly play a key role in making local businesses more productive and competitive and evolving public services – including a host of new education and leisure opportunities. n Chris Sayers is BT North East regional director.

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kEEPing On thE MOvE Despite public sector funding shortages and falls in passenger numbers on rail, sea and in the air, the road ahead for the North East’s transport network looks largely untroubled, writes Andrew Mernin The North East’s two regional airports have enjoyed contrasting fortunes of late with one undergoing turbulent times, and the other in the ascent with new routes and greater hospitality facilities coming on board in recent months.

Durham Tees Valley Airport brought an end to 2011 with the sound of “for sale” signs being banged into place as owner Peel Airports Limited announced its intentions to offload the troubled asset.

The firm, which owns 75% of the airport, with six local authorities

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Budget airline Jet2’s recent decision to create 120 jobs on Tyneside is another major boost to one of the North East’s most important transport assets

owning the remaining 25%, said it was no longer part of its strategic plans for its portfolio of airports that covers Liverpool John Lennon and Robin Hood Airport Doncaster Sheffield.

The airport’s losses in 2010/11 were estimated to be around the £2m mark and fears within the Tees Valley business community are that the facility’s future looks increasingly uncertain.

On Tyneside, although facing the challenges of a struggling economy and the rise of the “staycation”, Newcastle International Airport is

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faring considerably better than its Teesside counterpart.

The business continues to enjoy a flourishing relationship with UAE-based carrier Emirates, with the airline recently increasing its capacity on the daily flight to Dubai – a route that has had a genuine impact on the level of trade between the North East and the Gulf.

The next step of the expansion plan for the airport, which bosses have made no secret of in 2011, is to establish a regular route to North America, although the business is under no illusions that such an achievement will be easy.

Meanwhile budget airline Jet2’s recent decision to create 120 jobs on Tyneside by stepping up its presence at the airport is another boost to one of the North East’s most important transport assets.

Exports held up in 2011, as they once again remained one of the few bright spots in the regional economy, and the North East’s two major port authorities played an integral role in facilitating trade coming in and

Every £1 invested in the Tyne and Wear Metro upgrade project is estimated to be worth £8 to the local economy

out of the Tyne and Tees.

At the Port of Tyne, its operations across five key areas – bulk cargo, car terminals, cruise and ferries, logistics and estates – have all grown at pace since the 2009 recession and, at the latest count in 2010, its economic impact on the North East was estimated to be worth £421m, while supporting 9,000 jobs.

On Teesside, Teesport had a similarly upbeat 2011 as it continued to exponentially increase its container shipping volumes.

Plans for the nation’s high speed rail

network will continue to take shape this year and, although the route is likely to terminate just North of Leeds, business leaders in the North East will hope the region can benefit from the transport infrastructure investment in some way, perhaps through the supply chain.

The Tyne and Wear Metro’s upgrade remains on track, and after 30 years of service, the system will be renewed to its former glory. Every £1 invested is estimated to be worth £8 to the local economy through supporting businesses, reducing congestion and increasing workforce flexibility. With almost £400m set to be invested on the transport asset, the regional economy will be a major beneficiary.

With public sector budgets squeezed, wider investment in the region’s transport network is likely to be limited throughout 2012. But through the impending launch of Hitachi’s train manufacturing plant at Newton Aycliffe and the ongoing expansion of air and sea ports, there are reasons to be cheerful in the sector in the months ahead. n

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communication & transport company profile

SUNDERLAND AND IBM CREATE FIRST OF A KIND A deal to boost the economy, save millions of pounds and introduce innovative new technologies has been announced by Sunderland City Council and IBM By creating a hi-tech Cloud computing environment, the City Council will be continuing its investment in infrastructure and connectivity to help stimulate economic growth in Sunderland.

The Cloud will be one of the first of its kind in Europe and draws on existing IBM Cloud solutions delivered in China and the USA. Councillor Paul Watson, Leader of Sunderland City Council, said: “We have a good reputation in Sunderland for innovation in both the public and private sector.

“In the current climate, it’s vital that local authorities like us use our own assets to not only improve services but stimulate economic growth for the benefit of the whole city.

“The Sunderland Cloud is a cornerstone of our Economic Masterplan. The new Cloud infrastructure will lay the foundations of an even Smarter Sunderland, one that ensures the city continues to be internationally recognised as a forward thinking city and a prime location for inward investment.”

For an investment of £5.7m, with IBM and other suppliers, the project is paying for itself within five years.

In addition to the financial savings, the Cloud will provide a low cost, accessible and secure network for use across Sunderland. One of a number of initiatives being implemented, it will

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Councillor Watson and Dave Smith make the cloud announcement at the Sunderland Software Centre allow residents to access services and information in a quicker and easier way, making the council more responsive.

Businesses can benefit through the ability to increase capacity and capabilities without investing in new infrastructure, training new personnel or licensing new software. Other companies, agencies and public sector partners are also expected to use the Cloud for improved collaboration.

Paul Woolston, Chair of the North Eastern Local Enterprise Partnership, said: “This is a very positive

announcement for the region. This world-class project will provide a platform for local businesses to develop their capability and thrive in an ever increasing technological world.

“Sunderland is very much at the forefront of developing and growing the software industry in the North East and this is the latest example of partnership working which will create building blocks for economic growth.

It raises our game to an international level and will assist the whole of the North East to attract investment and create opportunities for businesses across all sectors.”

Sunderland is already one of the mostdigitally connected cities in the UK and this announcement follows news that it will be the first city to offer wall-to-wall superfast broadband coverage, which will support delivery of the Cloud.

Dave Smith, the Chief Executive of Sunderland City Council, said: “The Cloud is just one part of the council’s approach to protect front-line services through its Sunderland Way of Working programme.” n

For more information on IBM’s Smarter Cities initiative visit: www.ibm.com/uk/cities

Coming soon...

A new centre for software businesses in Sunderland To find out more telephone 0191 305 1194

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who’s who Silvie Adams

Sandy Anderson

Hospital Director main Business: Hospital

cHairman main Business: public and private sector local enterprise partnership for tees Valley

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

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

Helen Ager

Douglas Annan

partner main Business: legal

senior Vice presiDent asset management main Business: integrated utilities & services DWF, Great North House, Sandyford Road, Newcastle upon Tyne, NE1 8ND 0191 233 9700 helen.ager@dwf.co.uk www.dwf.co.uk

Sembcorp Utilities (UK) Limited, Sembcorp Headquarters, Wilton International, Middlesbrough, TS90 8WS 01642 212 000 www.sembcorp.co.uk

Jim Anderson

Malcolm Armstrong

Finance Director main Business: motor Dealer

managing Director main Business: training provider

Mill Volvo, Scotswood Road, Newcastle upon Tyne, NE15 6BZ 0191 274 8200 jimanderson@millvolvo.co.uk www.millvolvo.co.uk

Access Training, Gateshead Skills Academy, 8th Avenue, Kingsway South, Team Valley, Gateshead, NE11 0JL 0191 490 4646 info@accesstraining.org www.accesstraining.org.uk

John Anderson CBE

Kulmeet (Bob) Arora

cHairman main Business: Business space and consultancy services

owner main Business: punjabi cuisine

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

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Sachins, Forth Banks, Newcastle upon Tyne, NE1 3SG 0191 261 9035 bobarora@live.co.uk www.sachins.co.uk

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who’s who Ian Robert Baggett

Sean Boyce

managing Director main Business: property investment, Development and management

resort managing Director main Business: Hotel and leisure Slaley Hall, Hexham, Northumberland NE47 0BX 01434 673 350 slaley.hall@devere-hotels.com www.devere-hotels.co.uk

Adderstone Group, The Exchange, Manor Court, Jesmond, Newcastle upon Tyne, NE2 2JA 0191 212 5016 office@adderstonegroup.com www.adderstonegroup.com

Guy Berruyer

Timothy Boyd

cHieF executiVe main Business: Business software and solutions

general manager main Business: Hotel and golf club

The Sage Group plc, North Park, Newcastle upon Tyne, NE13 9AA 0191 294 3000 www.sage.com

Ramside Hall Hotel & Golf Club, Carrville, Durham, DH1 1TD 0191 386 5282 timothy.boyd@ramsidehallhotel.co.uk www.ramsidehallhotel.co.uk

Gary Boon

Peter Brack

managing Director main Business: mobile development, web and online marketing

managing Director main Business: office supplies Brack Office Solutions Ltd, North East Business & Innovation Centre, Wearfield, Sunderland Enterprise Park East, Tyne & Wear, SR5 2TA 0191 516 6244 www.brackofficesolutions.co.uk peter@brackofficesolutions.co.uk

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

Russell Borthwick

Dan Brophy

managing Director main Business: creative | research | pr | advertising

cHieF executiVe main Business: Driving business growth through money, markets and people

Press Ahead, North East BIC, Wearfield, Sunderland, SR5 2TA 0191 516 6235 / 07785 332 876 rb@pressahead.info www.pressahead.info

Entrust, Portman House, Portland Road, Newcastle upon Tyne, NE2 1AQ 0191 244 4000 d.brophy@entrust.co.uk www.entrust.co.uk

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who’s who Paul Buie

David Cook

company manager main Business: Business Development agency

Business unit Director main Business: insurance Broking

Tyne and Wear Development Company, Investor House, Colima Avenue, Sunderland Enterprise Park, Sunderland, SR5 3XB 0191 516 9099 paul.buie@tyne-wear.co.uk www.tyne-wear.co.uk

Towergate Insurance, 2 Cathedral Square, Groat Market, Newcastle upon Tyne, NE1 1EH 0870 905 6202 david.cook@towergate.co.uk www.towergateinsurance.co.uk

John Burns

David Cramond

Director main Business: architects

corporate Director, economic regeneration main Business: local authority

Mackellar Architecture Limited, 2 Bankside, The Watermark, Gateshead, Tyne and Wear, NE11 9SY 0191 4618833 john.burns@mackellar.co.uk www.mackellar.co.uk

South Tyneside Council, Town Hall and Civic Offices, Westoe Road, South Shields, NE33 2RL 0191 424 7969 david.cramond@southtyneside.gov.uk www.southtyneside.info

Stephen Catchpole

Michael Cuthbertson

managing Director main Business: public and private sector local enterprise partnership for tees Valley

regional senior Director main Business: commercial property consultants GVA, Central Square, Forth Street, Newcastle upon Tyne, NE1 3PJ 0191 261 2361 michael.cuthbertson@gva.co.uk www.gva.co.uk

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

Linda Conlon

Pat Dellow

cHieF executiVe main Business: public engagement in science and the support of world class science in the region

area commercial Director main Business: commercial Banking

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

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

bq-magazine.co.uk

who’s who Paul Dobbie

Linda Edworthy

managing Director main Business: public relations

Director oF policy anD strategy main Business: public and private sector local enterprise partnership for tees Valley

Persuasion PR, 38 Derwentside Business Centre, Consett Business Park, Villa Real, Consett, County Durham, DH8 6BP 0845 071 0678 paul.dobbie@persuasion-pr.com www.persuasionpr.com

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

Samantha Doyle

Catherine Ellington

area sales manager - nuFc/tyne & wear museums main Business: conference & Banqueting Venues

regional managing Director main Business: commercial radio stations TFM Radio, Yale Crescent, Stockton on Tees, TS17 6AA 01642 888 222 cath.ellington@bauermedia.co.uk www.tfmradio.com/www.metroradio.co.uk www.cfmradio.com

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

Saskia Droz

Tim Evans

general manager main Business: Hotel

partner main Business: leading real estate consultants Hotel du Vin & Bistro Newcastle, Allan House, City Road, Newcastle Upon Tyne, NE1 2BE 0191 229 2200 reception.newcastle@hotelduvin.com www.hotelduvin.com

Knight Frank, St Ann’s Quay, 118 Quayside, Newcastle upon Tyne, NE1 3BB 0191 221 2211 tim.evans@knightfrank.com www.knightfrank.co.uk

David Dunn

Annemarie Fitzsimons-Keogh

cHieF operating oFFicer main Business: Driving and supporting the growth of the north east software industry

managing Director main Business: corporate awards, sports awards & corporate gifts

Sunderland Software City, eVolve Business Centre, Rainton Bridge, Tyne and Wear, DH4 5QY 0845 872 8575 david.dunn@sunderlandsoftwarecity.com www.sunderlandsoftwarecity.com

Awardsonline Ltd, Redwood House, Middleton Road, Eggleston, Barnard Castle, County Durham DL12 0AQ 01833 650 022 annemarie@awardsonline.co.uk www.awardsonline.co.uk AwArdsonline PAssion THroUGH desiGn

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who’s who Sharon Fletcher

Jamila Gous

HeaD oF corporate sales main Business: premier league Football club

marketing anD account manager main Business: Digital agency

Sports Direct Arena, Newcastle United Football Club, St James’ Park, Newcastle upon Tyne, NE1 4ST 0844 372 1892 sharon.fletcher@nufc.co.uk www.nufc.co.uk

Boxmodel Digital Media, Office 14, Gateshead International Business Centre, Mulgrave Terrace, Gateshead, Tyne & Wear, NE8 1AN 0191 490 9127 jamila@boxmodeldesign.co.uk www.boxmodeldesign.co.uk

John Flynn

Martin Greenwood

executiVe partner main Business: legal

Director main Business: corporate Banking DWF, Great North House, Sandyford Road, Newcastle upon Tyne, NE1 8ND 0191 233 9700 john.flynn@dwf.co.uk www.dwf.co.uk

Royal Bank of Scotland, 31 Grey Street, Newcastle Upon Tyne, NE1 6ES 07770 823 671 martin.greenwood@rbs.co.uk

Geoff Ford MBE

Tim Haggie

cHairman main Business: precision machining and pressing of components and assemblies for a range of industries

senior & managing partner main Business: legal services Latimer Hinks Solicitors, 5-8 Priestgate, Darlington, DL1 1NL 01325 341 500 lh@latimerhinks.co.uk www.latimerhinks.co.uk

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

Ian Gilthorpe

Sally Hancox

senior partner main Business: law Firm/professional services

Director oF gentoo green main Business: gentoo green

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

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Gentoo Group, Akeler House, 1 Emperor Way, Doxford International Business Park, Sunderland, SR3 3XR 0191 525 5000 sally.hancox@gentoogreen.com gentoogroup.com

bq-magazine.co.uk

who’s who Prof Cliff Hardcastle

Steve Hicks

Deputy Vice cHancellor (researcH & Business engagement) main Business: Higher education, research and business engagement

cHieF operating oFFicer main Business: genie Gentoo Group, Emperor House, 2 Emperor Way, Doxford International Business Park, Sunderland, SR3 3XR 0191 525 5000 steve.hicks@justaskgenie.co.uk justaskgenie.co.uk

Teesside University, Middlesbrough, TS1 3BA 01642 342 008 c.hardcastle@tees.ac.uk www.tees.ac.uk

Steven Harrison

Dr Graham Hillier CEng, FRSA

cHieF operating oFFicer main Business: conventional & bulk cargo, car terminals, estates, cruise & ferries, logistics

Director oF strategy anD Futures main Business: product and process development CPI Head Office, Wilton Centre, Wilton, Redcar, TS10 4RF 01642 455 340 www.uk-cpi.com

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

Prof Graham Henderson CBE

Neal Holloway

Vice-cHancellor & cHieF executiVe main Business: Higher education

general manager main Business: Hotel

Teesside University, Middlesbrough, TS1 3BA 01642 342 002 graham.henderson@tees.ac.uk www.tees.ac.uk

Radisson BLU Durham, Frankland Lane, Durham, DH1 5TA 0191 372 7200 neal.holloway@radissonblu.com www.radissonblu.co.uk/hotel-durham

Stuart Henry

Geoff Hunton

international commercial manager main Business: commercial Banking - international trade

managing Director main Business: property Development

HSBC Bank plc, Tees Valley & The Dales Commercial Centre, 60 Albert Road, Middlesbrough, TS1 1RS 07717 484 161 stuarthenry@hsbc.com www.hsbc.com

Merchant Place Developments, Sinclair Court, Darrell Street, Brunswick Village, Newcastle upon Tyne, NE13 7DS 0191 236 1013 gh@merchantdevelopments.com www.merchantdevelopments.com

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who’s who Gary Hutchinson

Martin Johnson

commercial Director main Business: Football, conference and events Venue

partner main Business: accountancy, tax and business advice

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

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

Alan Hynd

Sally Keith

partner main Business: chartered accountants and Financial advisers

principal anD cHair oF cipr nortH east main Business: pr and marketing consultancy Sally Keith... in her own write, Oaklea, 7 The Dell, Fulbeck, Morpeth, Northumberland, NE61 3JY 01670 515 098 sally@borderkeith.co.uk www.sallykeith.co.uk

Rowlands Chartered Accountants, Rowlands House, Portobello Road, Birtley, Chester le Street, DH3 2RY 0191 411 2468 alan.hynd@rowlandsaccountants.co.uk www.rowlandsaccountants.co.uk

Craig Iley

Lizzy Kelk

regional Director main Business: corporate Banking

general manager main Business: Hotel

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

Malmaison Newcastle,Quayside, Newcastle upon Tyne, NE1 3DX 0191 245 0550 lkelk@malmaison.com www.malmaison.com

Janet Johnson

Neil Kenley

Deputy cHieF executiVe main Business: local government

Director oF Business inVestment main Business: public and private sector local enterprise partnership for tees Valley

Sunderland City Council, Civic Centre, Burdon Road, Sunderland, SR2 7DN 0191 561 1114 janet.johnson@sunderland.gov.uk www.sunderland.gov.uk

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

bq-magazine.co.uk

who’s who David Laws

Grahame Maddison

cHieF executiVe main Business: aviation services

area commercial Director main Business: commercial Banking

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

HSBC Bank plc, Tees Valley and The Dales Commercial Centre, 60 Albert Road, Middlesbrough, TS1 1RS 07717 484 075 grahamemaddison@hsbc.com www.hsbc.com

Andrew Lewis

David Malanaphy

Director oF policy, strategy anD communications main Business: local government

cluster general manager main Business: Hotel

Newcastle City Council, Chief Executive’s Directorate, Civic Centre, Barras Bridge, Newcastle upon Tyne, NE99 2BN 0191 211 5681 andrew.lewis@newcastle.gov.uk www.newcastle.gov.uk

Jurys Inn Group Ltd, St James Gate, Scotswood Road, Newcastle upon Tyne, NE1 4AD 0191 201 4300 david_malanaphy@jurysinns.com www.jurysinns.com

Catriona Lingwood

Brian Manning

cHieF executiVe main Business: construction Business support

cHieF executiVe main Business: construction & property services

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

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

Alastair MacColl

Maxine Mayhew

cHieF executiVe main Business: national business improvement specialist

group commercial Director main Business: water and waste water treatment

Business & Enterprise Group, Spectrum 6, Spectrum Business Park, Seaham, SR7 7TT 0191 426 6408 enquiries@business-enterprise.net www.business-enterprise.net

Northumbrian Water, Boldon House, Wheatlands Way, Pity Me, Durham, DH1 1FA 0191 301 6679 maxine.mayhew@nwl.co.uk www.nwl.co.uk

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who’s who Sue McArthur

Andrew Mill

partner/Family lawyer main Business: solicitors

cHieF executiVe oFFicer main Business: essential development in renewable energy technology

McKeag & Co, 1-3 Lansdowne Terrace, Gosforth, Newcastle upon Tyne, NE3 1HN 0191 213 1010 enquiries@mckeagandco.com www.mckeagandco.com

Narec, Eddie Ferguson House, Ridley Street, Blyth, Northumberland, NE24 3AG 01670 357 328 andrew.mill@narec.co.uk www.narec.co.uk

Paul McEldon

Andrew Mitchell

cHieF executiVe main Business: Business space and consultancy services

cHieF executiVe main Business: Venture capital Holding Fund manager

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

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

Joe McLean

Andrew Moffat

partner main Business: recovery and reorganisation

cHieF executiVe oFFicer main Business: conventional & bulk cargo, car terminals, estates, cruise & ferries, logistics

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

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

Nigel McMinn

Les Mooney

managing Director main Business: Franchise car Dealerships

general manager main Business: leisure centre

North East Audi, Colebrook House, First Avenue, Tyne Tunnel Estate, North Shields, Tyne and Wear, NE29 7UZ 0191 298 1400 enquiries@northeastaudi.co.uk www.northeastaudi.co.uk North East

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Catterick Leisure Centre, Gough Road, Catterick Garrison, North Yorkshire, DL9 3EL 01748 831 030 les.mooney@nuffieldhealth.com www.catterickleisurecentre.com

bq-magazine.co.uk

who’s who Hugh Morgan Williams OBE

Chris Musgrave

cHairman main Business: championing north east Businesses

cHieF executiVe main Business: commercial property Development company

North East Access to Finance Limited, Level 10, Baltic Place West, South Shore Road, Gateshead, NE8 3AE 0191 481 3126 info@nea2f.co.uk www.nea2f.co.uk

Wynyard Park Limited, Wynyard Park House, Wynyard Ave, Wynyard, Billingham, Cleveland, TS22 5TB 01740 661 000 enquiries@wynyardpark.com www.wynyardpark.com

Heidi Mottram

Mike Mullaney

cHieF executiVe oFFicer main Business: water and waste water treatment

Director anD HeaD oF large corporate nortH east main Business: corporate Banking

Northumbrian Water, Boldon House, Wheatlands Way, Pity Me, Durham, DH1 1FA 0191 301 6367 heidi.mottram@nwl.co.uk www.nwl.co.uk

Lloyds Bank Corporate Markets, 1st Floor Black Horse House, 91 Sandyford Road, Newcastle upon Tyne, NE1 8HQ 0191 255 1558 mike.mullaney@lloydsbanking.com www.lloydstsbcorporatemarkets.co.uk

Jonny Mould

Adam Munday

golF sales & operations manager main Business: Hotel and golf club

general manager main Business: Hotel & marco pierre white steakhouse bar and grill

Ramside Hall Hotel & Golf Club, Carrville, Durham, DH1 1TD 0191 375 3065 jonny.mould@ramsidehallhotel.co.uk www.ramsidehallhotel.co.uk

Hotel Indigo Newcastle, 2 Fenkle Street, Newcastle upon Tyne, NE1 5XU 0191 300 9222 gm@hotelindigonewcastle.com www.hotelindigonewcastle.com

John Mowbray

Peter Neal

Director oF corporate aFFairs main Business: water and waste water treatment

senior manager main Business: professional recruitment

Northumbrian Water, Boldon House, Wheatlands Way, Pity Me, Durham, DH1 1FA 0191 301 6166 John.mowbray@nwl.co.uk www.nwl.co.uk

Nigel Wright Recruitment, Lloyds Court, 78 Grey Street, Newcastle upon Tyne, NE1 6AF 0191 222 0770 peter.neal@nigelwright.com www.nigelwright.com

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who’s who Gordon Nelson

Gordon Ollivere MBE

general manager main Business: lexus Dealer

cHieF executiVe main Business: innovation & technology consultants

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

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

Frank Nesbitt

Malcolm Page

Forensic serVices manager main Business: Fraud and forensic investigations

exec Director oF commercial anD corporate serVices main Business: local government

Tait Walker, Bulman House, Regent Centre, Gosforth, Newcastle upon Tyne, NE3 3LS 0191 285 0321 frank.nesbitt@taitwalker.co.uk www.taitwalker.co.uk

Sunderland City Council, Civic Centre, Burdon Road, Sunderland, SR2 7DN 0191 561 1003 malcolm.page@sunderland.gov.uk www.sunderland.gov.uk

Paul Newbold

Jarrett Palmer

partner main Business: accountancy, tax and business advice

SITE LEADER MAIN BUSINESS: Pharmaceutical Contract Manufacturing

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

Piramal Pharma Solutions, Whalton Road, Morpeth, Northumberland, NE61 3YA 01670 562 400 jarrett.palmer@piramal.com www.piramalpharmasolutions.com

Bob Nicholson

Steve Peck

cHairman main Business: motor Dealer

international commercial manager main Business: commercial Banking - international trade

Mill Volvo, Scotswood Road, Newcastle upon Tyne, NE15 6BZ 0191 274 8200 www.millvolvo.co.uk

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HSBC Bank plc, Maingate, Kingsway North, Team Valley Trading Estate, Gateshead, NE11 0BE 07768 006 049 stevepeck@hsbc.co.uk www.hsbc.com

bq-magazine.co.uk

who’s who Nigel J Perry FREng

Keith Proudfoot

cHieF executiVe oFFicer main Business: product and process development

regional Director, nortHern anD scotlanD main Business: chartered accountancy membership organisation

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

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

Rick Petini

Charles Reynard

managing Director main Business: Quality handmade sofas, chairs and beds

partner main Business: innovative, international and local legal advice: corporate Finance; m&a and energy

Delcor, Delcor House, Double Row, Seaton Delaval, Northumberland, NE25 OPR 0191 237 1303 rpetini@delcor.co.uk www.delcor.co.uk

Eversheds LLP, Central Square South, Orchard Street, Newcastle Upon Tyne, NE1 3XX 0845 497 6096 Charlesreynard@eversheds.com www.Eversheds.com

Sarah Pittendrigh

Simon Roberson

managing Director main Business: specialist event linen and chair covers

regional partnersHip Director main Business: communications

Simply Bows and Chair Covers, Unthank Farm, Kiln Pit Hill, Northumberland, DH8 9LP 07595 549 623 enquiries@simplybowsandchaircovers.co.uk www.simplybowsandchaircovers.co.uk

BT, 1 Harton Quay, South Shields, NE33 1SJ 01977 596 258 simon.roberson@bt.com www.bt.com/btregions

Mark Podmore

David Robinson

managing Director main Business: precision machining and pressing of components and assemblies for a range of industries

group cHieF executiVe oFFicer main Business: uk ports business with logistics operations

Ford Aerospace Limited & Ford Component Manufacturing Limited, East Side, Tyne Dock, South Shields, Tyne & Wear, NE34 5ST 0191 454 0141 mark.podmore@ford-aerospace.com www.ford-aerospace.com

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

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who’s who Martin Robinson

Ralph Saelzer

general manager main Business: Hotel industry, tourism, conferencing and events

managing Director main Business: manufacturer of ship and offshore cranes Liebherr, Liebherr Sunderland Works Ltd, Ayres Quay, Deptford Terrace, Sunderland, SR4 6DD 0191 514 3001 ralph.saelzer@liebherr.com www.liebherr.com

Hilton Newcastle Gateshead, Bottle Bank, Gateshead, Newcastle upon Tyne, NE8 2AR 0191 490 9700 martin.robinson@hilton.com www.hilton.co.uk/newcastlegateshead

Kevin Rogers

Chris Sayers

managing Director main Business: Digital and litho printing, web2print and data publishing solutions

regional Director nortH east main Business: communications BT, 1 Harton Quay, South Shields, NE33 1SJ 0191 461 4401 chris.sayers@bt.com www.bt.com/btregions

Elanders, Merlin Way, New York Business Park, North Tyneside, NE27 0QG 0191 280 0400 info@elanders.com www.elanders.co.uk

Jean-Louis Rostaing

Nicola Short

managing Director main Business: subsea umbilical systems

executiVe Director main Business: membership organisation Entrepreneurs’ Forum, 2nd Floor, Anson House, Fleming Business Centre, Burdon Terrace, Jesmond, Newcastle Upon Tyne, NE2 3AE 0191 500 7780 info@entrepreneursforum.net www.entrepreneursforum.net

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

Barry Rowland

David Simpson

cHieF executiVe main Business: local government

senior client partner main Business: wealth management and private Banking

Newcastle City Council, Chief Executive’s Office, Civic Centre, Barras Bridge, Newcastle upon Tyne, NE99 2BN 0191 211 5000 barry.rowland@newcastle.gov.uk www.newcastle.gov.uk

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Coutts, 2nd Floor, 1 Trinity Gardens, Broad Chare, Quayside, Newcastle upon Tyne, NE1 2HF 0191 203 7031 david.simpson@coutts.com www.coutts.com/newcastle

bq-magazine.co.uk

who’s who Mark Simpson

Neil Stephenson

Director main Business: professional recruitment

cHieF executiVe oFFicer main Business: managed it services, including; data centres, business continuity, cloud and network services

Nigel Wright Recruitment, Lloyds Court, 78 Grey Street, Newcastle upon Tyne, NE1 6AF 0191 222 0770 mark.simpson@nigelwright.com www.nigelwright.com

Onyx Group, Onyx House, 9 Cheltenham Road, Portrack Interchange Business Park, Stockton-on-Tees, TS18 2AD 01642 216 200 neil.stephenson@onyx.net www.onyx.net

David Sinden

Sarah Stewart

international commercial manager main Business: commercial Banking - international trade

cHieF executiVe main Business: Destination management and marketing agency

HSBC Bank plc, Maingate, Kingsway North, Team Valley Trading Estate, Gateshead, NE11 0BE 07584 403 775 david.sinden@hsbc.com www.hsbc.com

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

Dave Smith

Martin Swales

cHieF executiVe main Business: local government

cHieF executiVe main Business: local authority

Sunderland City Council, Civic Centre, Burdon Road, Sunderland, SR2 7DN 0191 561 1112 dave.smith@sunderland.gov.uk www.sunderland.gov.uk

South Tyneside Council, Town Hall and Civic Offices, Westoe Road, South Shields, NE33 2RL 0191 424 7010 martin.swales@southtyneside.gov.uk www.southtyneside.info

Michael Smith

Jeff Tabb

partner main Business: corporate finance and fundraising

operations Director main Business: motor Dealer

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

Mill Volvo, Avro Close, Preston Farm Business Park, Stockton, TS18 3SG 01642 673 251 jefftabb@millvolvo.co.uk www.millvolvo.co.uk

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who’s who Eugene Taylor

Nigel Vickers

Director main Business: commerical Banking - newcastle and tees Valley

managing Director main Business: large format digital colour printing Chromazone, Kingsway North, Team Valley, Gateshead, NE11 0JH 0191 487 1999 nigel.vickers@chromazone-imaging.co.uk www.chromazone-imaging.co.uk

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

Caroline Theobald

Martin Vinsome

managing Director main Business: Business growth and networking company

cHartereD patent attorney/partner main Business: patent and trademark attorneys

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

Urquhart-Dykes & Lord LLP, Cale Cross House, Pilgrim Street, Newcastle upon Tyne, NE1 6SU 0191 261 8573 rmv@udl.co.uk www.udl.co.uk

Miles Thornhill

John Wall

senior commercial manager main Business: commercial Banking

cHairman oF tHe prince’s trust nortH east DeVelopment committee main Business: proton power systems plc

HSBC Bank plc, Tees Valley & The Dales Commercial Centre, 60 Albert Road, Middlesbrough, TS1 1RS 07767 005789 milesthornhill@hsbc.com www.hsbc.com

5 Tamarin Close, Beadnell, Northumberland, NE67 5JE 07802 917 615 john_wall@btinternet.com www.princes-trust.org.uk

Fergus Trim

Peter Walls

DeVelopment Director main Business: commercial property development

group cHieF executiVe main Business: gentoo group

The Hub@Q5, Quorum Business Park, Benton Lane, Newcastle upon Tyne, NE12 8BS 0191 287 1149 fergus.trim@quorumbp.co.uk www.quorumbusinesspark.co.uk

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Gentoo Group, Emperor House, 2 Emperor Way, Doxford International Business Park, Sunderland, SR3 3XR 0191 525 5000 peter.walls@gentoogroup.com gentoogroup.com

bq-magazine.co.uk

who’s who Bill Ward

Joe Waugh

managing Director main Business: motor Dealer

managing Director, olympian anD commonwealtH golD meDallist main Business: specialist Bicycle shop

Mill Volvo, Scotswood Road, Newcastle upon Tyne, NE15 6BZ 0191 274 8200 billward@millvolvo.co.uk www.millvolvo.co.uk

M. Steel Cycles, 6-10 Bowsden Terrace, South Gosforth, Newcastle upon Tyne, NE3 1RX 0191 2851251 joewaugh@msteelcycles.co.uk www.msteelcycles.co.uk

Sam Wass

Susan Wear

Director main Business: event management

Director oF corporate aFFairs main Business: conventional & bulk cargo, car terminals, estates, cruise & ferries, logistics

Benchmark Communications, 14 Blandford Square, Newcastle upon Tyne, NE1 4HZ 0191 241 4523 sam.wass@benchcom.co.uk www.benchcom.co.uk

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

Prof Andrew Wathey

Duncan Weir

Vice-cHancellor & cHieF executiVe main Business: education

tecHnical Director main Business: Business & Domestic insurance

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

Weir Insurance, 12 Stanley Street, Blyth, NE24 2BU 01670 365 533 duncan.weir@weirinsurance.co.uk www.weirinsurance.co.uk

Councillor Paul Watson

Karen Weir

leaDer main Business: local government

managing Director main Business: Business & Domestic insurance

Sunderland City Council, Civic Centre, Burdon Road, Sunderland, SR2 7DN 0191 561 1322 Cllr.Paul.Watson@sunderland.gov.uk www.sunderland.gov.uk

Weir Insurance, 12 Stanley Street, Blyth, NE24 2BU 01670 365 533 karen.weir@weirinsurance.co.uk www.weirinsurance.co.uk

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who’s who Jennifer Welch

Alastair Wilson

operations Director rics nortH main Business: royal institution of chartered surveyors

partner main Business: tax advice for companies and their shareholders

RICS North East, c/o Northumbria University, Room 116/117, 1st Floor, Ellison Building, Ellison Place, Newcastle upon Tyne, NE1 8ST 0191 221 1039 jwelch@rics.org www.rics.org/northeast

Tait Walker, Bulman House, Regent Centre, Gosforth, Newcastle upon Tyne, NE3 3LS 0191 285 0321 alastair.wilson@taitwalker.co.uk www.taitwalker.co.uk

Jim Willens

Richard Wood

cHieF executiVe main Business: Financial services

Director main Business: construction and Development

Newcastle Building Society, Portland House, New Bridge Street, Newcastle, NE1 8AL 0191 244 2448 jim.willens@newcastle.co.uk www.newcastle.co.uk

Brims Construction Limited, 3 Austin Boulevard, Quay West Business Park, Sunderland, SR5 2AL 0191 516 3290 rwood@brimsconstruction.com www.brimsconstruction.com

Jill Williamson

Paul Woolston

general manager main Business: Horse racing/event & Venue Hire/ wedding Venue

senior partner main Business: professional services, assurance and regulatory reporting, taxation & advisory

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

PWC, 89 Sandyford Road, Newcastle upon Tyne, NE1 8HW 0191 269 4205 paul.woolston@uk.pwc.com www.pwc.co.uk/north

Dave Willis

Christine Yule

site manager main Business: Fully serviced office and laboratory accommodation and pilot plant/scale-up facilities

managing Director main Business: Business membership organisation, training and virtual office services

The Wilton Centre, Redcar, Cleveland, TS10 4RF 01642 438050 dave.willis@wiltoncentre.co.uk www.wiltoncentre.co.uk

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Durham Business Group, Mile House, Bridge End, Chester le Street, DH3 3RA 0191 388 4488 christine@durhambusinessgroup.co.uk www.durhambusinessgroup.co.uk

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money markets In association with

Access to capital is more elusive than it used to be. There can be few bigger frustrations in business just now than knowing that your company has a product or service that’s an odds-on winner, only to find no-one apparently willing to back it. But there are doors to be opened, minds that will be receptive. You must know where to look

bq-magazine.co.uk opinion

money markets

Hotspots emerging The £125m Finance for Business North East Fund was launched to answer the region’s economic woes. Two years on, Andrew Mitchell charts its progress and explains its future

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money markets

BQ: How successful would you say the fund was in 2011?

AM: We had a positive year and ended it on target to where we wanted to be - just shy of £40m being invested in North East businesses. In total we’ve supported around 300 businesses and we’re very pleased with the quality.

We were a bit concerned, given the economic news, that there’d be a drop in numbers and there possibly has been in terms of the volume of enquiries. But there still seems a good flow for fund managers to choose from.

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opinion

We are well on track to achieve our aims and feel there’s a good flow of quality deals across all the different funds How have enquiries for the fund changed since it was first launched?

Numbers are holding up. Quality is as high as when it first launched. It’s difficult to compare things to 2010, because inevitably in the first year of any set of venture capital funds you

get a bow wave effect. I think on one hand you have people that are now a little bit more nervous about the economic outlook but, on the other, if you are nervous about that, and banks are not really playing at this end of the market, you are almost safer to get an equity investor. You know that money

bq-magazine.co.uk opinion

is not subject to withdrawal at the drop of a hat.

What proportion of enquiries result in investment?

The investment rate across the entire programme is probably one in five or six. Some funds, like the Proof of Concept Fund - where there’s more of a risk mentality, it is earlier stage and there are smaller amounts of money involved - you may get one in two. At the top end, where there are funds putting in £500,000 or £1m, it’s probably one in 12 - closer to venture capital averages.

What role could the Microloans Fund play in 2012 in supporting the regional economy?

This is at the lower scale end of the market, where there are large numbers of loans to smaller businesses, many of which are going to be one man bandtypes. Our view is that there will be great demand for that fund because, with public sector redundancies, you’ll get a lot of people coming onto the market thinking about starting a business. Some of those will be well educated, highly skilled people like architects and housing officers who may try to set up businesses that sell services back into the public sector. I imagine they’ll be very interested in getting help from the Microloan Fund.

We think demand for the fund will be high. We don’t expect banks to return to the SME end of the market soon, so they will be important.

A key aim of the fund was to bring employers from outside the region into the North East. Has this been achieved so far?

In 2010, as much as 20% of our enquiries were coming from outside the

money markets The Finance for Business North East Fund in a nutshell The fund, originally named Jeremie (Joint European Resources for Micro to Medium Enterprises Initiative), will invest £125m into a broad spectrum of businesses located in the North East through loans and equity investments designed to drive business growth over five years.

It is divided into different vehicles such as the North East Technology, Angel, Proof of Concept, Growth, Growth Plus, Accelerator and Microloan Funds. The funds are derived from the European Investment Bank alongside the European Regional Development Fund 2007-2013 and the now-defunct regional development agency One North East.

North East Finance, headed up by Andrew Mitchell, is the holding fund manager for the programme, with separate investment bodies each managing one of the funds.

region. In 2011 this level of enquiry was closer to 10% - because funds are now up and running in Yorkshire and the North West. The difference between us and an inward investment company is that we decide we want to invest in a company first, then worry about where it’s located after, whereas inward investment bodies use grants to attract businesses. So the business has to stack up on the

investment criteria before we’ll even consider an investment.

Has the fund lived up to the expectations which accompanied its launch in 2009?

We’re well on track to achieve all the aims set out initially. We still feel there’s a very good flow of quality deals across all the different funds. Inevitably there are big issues such as the impact of the eurozone crisis, which none of us can predict. However, reality is that if you’re growing a small business you just have to get on with it, and we expect more businesses to start up in the next year. We also expect strong demand, particularly in the microloan level as well as other areas, and we expect to see good companies that may have otherwise gone for bank funding coming to us for equity finance.

Throughout 2012 which sectors do you see as particular hotspots for the fund?

I think we’ll see a growth in various kinds of services businesses because people being made redundant from the public sector are potentially looking at providing services back into their former employers. We’re very keen on clean technology in the North East and believe there’ll be new spinouts coming in that area, and in the oil and gas supply chain we see a lot of new opportunities coming through. n Andrew Mitchell is chief executive of North East Finance.

With public sector redundancies there will be a lot of people coming onto the market thinking about starting a business

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opinion

Research and advice will pay Looking for international opportunities could be the route to success in 2012, writes HSBC’s Pat Dellow It has been a turbulent 2011 for some businesses. Confidence among firms in the region was up at the start of the year, but the situation in the eurozone impacted on this towards the end of the year.

Our business clients in the region with international scope already have performed particularly well throughout.

At HSBC we’re extremely active in encouraging our customers to explore the possibility of globalising their products or services, helping them make the most of their business opportunities.

The good news is that, despite what you may sometimes read in the press, funding is available to support successful, viable businesses, and international expansion is certainly an option for some North East businesses.

Talking to some of our customers, we hear that one of the biggest barriers to global growth is not a lack of funding from the banks. It appears one of the main hurdles is the uncertainty and caution felt by business leaders, caused by the threat of a worsening economy in the coming months.

However, with the right research and advice, 2012 could be as good a time as any to take that international step.

At HSBC we will continue to encourage businesses to look further afield, and we believe there are a growing number of opportunities for North East

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HSBC’s Pat Dellow believes North East firms should consider overseas expansion businesses, particularly in emerging markets such as Brazil, India and China.

As an industry, the UK banks are working to support businesses across the region by collectively attending events such as the BBA taskforce events. They are a great opportunity for business owners to meet like minded people and gain expert advice from local banking specialists.

Much of the discussion is around access to finance and how

businesses can improve their chances of receiving finance.

This year is likely to be challenging for business leaders in every sector however, by continuing to work closely with our business clients, we look forward to and embrace the opportunities that await us. n Pat Dellow is area commercial director at HSBC’s regional headquarters in Gateshead.

bq-magazine.co.uk opinion

money markets

This year could be as good a time as any for business leaders to take the step of expanding internationally

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money markets

opinion

Hotspots emerging Duncan Lowery, senior investment manager at IP Group, tells Andrew Mernin about the growing influence of the North East Technology Fund on the regional economy Given the important role the technology sector could play in shaping the future North East economy, much responsibility rests on the shoulders of those managing one of the industry’s most significant regional funds.

In his post at IP Group in Newcastle, Duncan Lowery heads the £25m North East Technology Fund, which invests in technology businesses with outstanding potential that are based in, or are willing to relocate to, the North East.

The fund was set up alongside five other major funds as part of the £125m Finance for Business North East superfund and, after causing huge interest when initially launched, the fund is already beginning to deliver on its promises, according to Lowery.

The senior investment manager also believes 2012 will chart further progress for the fund in achieving its aims of backing growing start-ups and SMEs, generating new jobs and encouraging inward investment into the North East. “The big milestone for us in 2011 was an increase in our investment rate. When the fund was in its first full year in 2010, we received a huge volume of enquiries and within that there was a degree of quality but it required an awful lot of filtering,” he explains. “Now that the hype has died down, it’s business as usual and people are understanding more about what to

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do to get investment from the fund and what level of quality they need to produce, meaning the more speculative proposals have fallen away.

“In 2011 the volume of enquiries decreased and our investment rate improved, and we estimate we have made up to £8m in investments and levered in just over £8m from other investors during the year.”

This year Lowery expects an ongoing improvement in the quality of bids for funding as awareness spreads across the region’s technology sector of how to become more investment ready.

Having received more than 500 enquiries to date, with around 30 bids being ultimately successful, he has seen a number of common misconceptions made by investment-hungry tech firms.

However, he also believes they are

gradually becoming less prevalent as word spreads of how best to navigate the pitching process.

“A key thing we see is unrealistic funding strategies. Timing of an enterprise’s fundraising can be unrealistic, with a plan to spend it in such a short time scale that there wouldn’t be time to complete any meaningful transition in the business to then go out and raise further finance.

“Too many people are burning through the cash too quickly and just hoping that they are going to raise the money from elsewhere.” As well as backing home-grown technology businesses, a key aim of the fund is to bring companies into the North East.

Newcomers to the region on the back of the fund include Cambridge-born sensor technology firm Bioinnovel and Edinburgh-based software outfit Route Monkey, which recently opened an office in Gateshead.This year is likely to see further relocations into the North East as the fund’s managers work through a strong list of enquiries.

“We have a healthy pipeline of about £10m of opportunities that we’re looking at in 2012, and the outlook for technology businesses in the region is very good. There is a range of funds they can access, and there’s a vibrant business angel community as well, which we are working with.” n

bq-magazine.co.uk overview

money markets

Deal forecasts upbeat Turmoil in Euroland and the plunge in spending on infrastructure has not stopped the North East’s dealmakers from recording another busy period of mergers and acquisitions activity, as Andrew Mernin discovers

For a region with a relatively sparse population when compared to the North West, South East and the

Midlands, the North East has a sophisticated and abundant network of corporate dealmakers who keep the

wheels of M&A activity turning.

In 2011, however, corporate finance teams were up against it as market

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money markets conditions, public sector cuts and the threat of another dip in the economy conspired to make things tougher than ever for those in the business of buying and selling companies.

Despite the Government’s doubling of Entrepreneurs’ Relief, a move which

Analysts are predicting a surge in cross-border deals in 2012 which would be welcomed by the Government, given the economy-boosting power of M&A activity

limits capital gains tax on the sale of business assets and makes offloading a company more favourable, entrepreneurs in the North East were reluctant to sell their enterprises, according to a report.

The quarterly RSM Tenon Business Barometer report found that, while one in 10 entrepreneurs in the UK would consider selling up as a result of the change in Entrepreneurs’ Relief, in the North East the figure was around one in 50.

It should be noted that the report also found that 14% of entrepreneurs in the region were not aware of Entrepreneurs Relief, but the research was part of a string of studies which suggested 2011 was not the time for North East SME bosses to sell up.

Research by Grant Thornton published in late 2011 found that the volume of M&A deals in the third quarter across the UK was the lowest since the 1990s.

This report came after figures earlier

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revealed that there were just 55 completed transactions in the first six months of the year within the North East, compared to 85 in the second half of 2010.

Professionals in the region’s M&A market remained busy, though, and a number of headline deals did go through. Perhaps the most significant, given the size of its Newcastle workforce and its power as an ambassador for the region, was the sale of Northern Rock to Sir Richard Branson’s Virgin Money for an initial £747m.

The sale of Durham-based Northumbrian Water in August also made headlines around the world as a Hong Kong investment consortium controlled by billionaire Li Ka-shing agreed a £2.41bn takeover deal.

The merger between law firm Crutes and national outfit DWF was certainly a significant milestone of 2011 among the region’s professional services crowd.

The deal, which came after months of negotiations, effectively brought an end to a name existing on the North East legal scene for 104 years.

A steady stream of smaller transactions throughout the year ensured that the M&A market for small and medium businesses was not entirely static.

Among them was the purchase of upmarket clothing brand John Partridge Clothing – the originator of the duffle coat – from Leicester-based Bollin Group by a team of North East-based business people.

County Durham glass manufacturer Romag, which makes solar glass and composites for several markets including military and security, was also snapped up by Wearside housing group Gentoo in a move that saved the jobs of over 160 people.

In all, the North East’s dealmakers

overview

rallied to give 2011 its fair share of deal highlights in spite of dire trading conditions which hindered sectors across the board.

Early forecasts for 2012 are reasonably upbeat, with analysts predicting a potential resurgence in global and cross-border deals. A report by BDO also predicts a surge in transactions for UK restaurants and bars. Meanwhile, the UK Government clearly realises the power M&A activity possesses to kick-start struggling economies, and could take steps to catalyse more action in 2012.

Recent research by Cass Business School - commissioned by the Department for Business, Innovation and Skills - found that the national economy benefited from an average short-term boost of £178m per deal from domestic M&A activity, through the gains in the combined share prices of the companies involved in the 40 days following a deal.

If the Government steps up its support for buyers and sellers, and bargains

Last year had its fair share of deal highlights in spite of the dire trading conditions, which hindered sectors across the board

continue to emerge for cash-rich investors and acquisitive businesses, the North East’s dealmakers will be primed and ready for action throughout 2012. n

bq-magazine.co.uk

money markets company profile

Supporting North East Business Growth HSBC continues to support the region’s businesses trading both at home and overseas, according to Pat Dellow and Grahame Maddison

Pat Dellow, Area Commercial Director, HSBC

Grahame Maddison, Area Commercial Director, HSBC

Though the current economic environment in the UK is still proving challenging to some, HSBC has continued to offer lending support to strong, viable enterprises that can demonstrate well defined management in conjunction with a considered forward thinking business plan.

Throughout 2011, we have provided many North East businesses with funding to expand their current business reach, targeting new markets and customers. Looking to the year ahead, the key is for businesses to continue to demonstrate considerable planning and a strong strategy to capitalise on future growth opportunities.

With competition fierce, HSBC understands that creating a strong, distinct business plan and a unique

product offer can be a difficult task.

But the North East is home to a large number of energetic and diverse businesses that are already taking advantage of business growth opportunities on offer both in the area and overseas. I’ve been proud to see businesses in the area tackle the challenging economic environment head on – developing new ideas, products and partners, and targeting new markets to spread their business risk, and positioning themselves to cope with the difficult market outlook.

Grahame Maddison HSBC Area Commercial Director for Tees Valley says “It’s interesting to note that whilst the domestic economy remains challenging, we have seen a dramatic rise in the number of businesses trading overseas, and we have supported many

companies to expand their outreach internationally. And, as the line between ‘domestic’ and ‘international’ business blurs, even those that consider themselves to be trading on a purely domestic level, often still have an international element.”

When thinking about the year ahead, businesses should use all the tools at their disposal – whether it’s talking to UKTI when thinking about international trade, or utilising the expertise on offer at their bank to develop a compelling business case. At HSBC, our relationship managers are well equipped to work with customers to understand their business model and identify its strengths and potential for the future. We’d encourage anyone interested in seeking funding for new expansion projects, whether at home or overseas, to come and talk to us whilst their plans are in a development. n

Pat Dellow, Area Commercial Director, Tyne & Wear T: 07767006679 E: patdellow@hsbc.com Grahame Maddison, Area Commercial Director, Tees Valley and The Dales T: 07717 484075 E: grahamemaddison@hsbc.com

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service sector As the region’s economy has diversified, so has the range of services it can provide as back-up – from legal and financial through to maintenance, storage and equipment hire. A combination of keen pricing, proven expertise and total reliability and dedication is enabling many of the service companies setting these standards to make their mark of quality beyond the North East too

bq-magazine.co.uk opinion

service sector

LOsing a CustOMEr is COstLy We need to get ready to find a whole new language in the fast flowing seachange of business now under way, says Dan Brophy

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service sector There is a seachange underway with the current fast flowing indeed. Today’s tides are such that traditional business sector definitions and terminology are being washed away. We need to get ready to find a whole new language.

Over the past three years, more than 1,000 separate organisations have engaged with Service Network. These have ranged from the region’s biggest professional service firms to niche consultancies, local authorities, the health service, charities, international engineering manufacturers, local design agencies and leading national trade associations to individual entrepreneurs looking to move their ideas and their businesses forward.

All these organisations have one thing in common – customers! Each one has recognised that as soon as you have a customer - regardless of whether you are selling manufactured components, your knowledge, or caring for others you are providing a service.

Gone are the days when product was exchanged and with that the transaction was considered complete.

The recession has also reinforced lessons we already knew but had perhaps forgotten: that it costs five times more to find a new customer than to retain an existing relationship.

Service Network’s annual Culture for Success Awards have always recognised this. So they are uniquely open to anyone in the North East irrespective of sector, size or specialism.

Applicants must demonstrate how they have built a “culture for success” in their organisations: employee development, customer service, and the contribution to regional prosperity are all assessed and scrutinised. These elements transcend “sectors”; they are beyond traditional “business speak” and “policy” vocabulary. Perhaps in

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Today’s tides are such that traditional business sector definitions and terminology are being washed away recognition of this seachange, the Culture for Success Awards 2011 received a record number of applicants from a more diverse theatre of players than ever before. And the results speak for themselves. Winner of the “large” category was Ford Aerospace and Ford Component Manufacturing. Based in South Shields, this family business has been “making things” for more than 100 years. To keep ahead of the competition and win further business, Ford invested £1m in the last 12 months on new machinery, software, systems, and staff development to deliver enhanced customer experience.

Other finalists included St Oswald’s Hospice, a registered charity providing respite and specialist care for local people, and Shared Interest, an ethical investment co-operative, lending money to fair trade businesses nationally and internationally. That’s proof, if proof were needed, that “service” applies equally, to each and every organisation, everywhere, and in

every walk of life. This ethos is what drives Service Network. Developing your organisation’s talent, finding new customers (and keeping the ones you have), differentiating your offer, or taking time to consider what tomorrow’s world of work holds for you - these are at the heart of Service Network and these are fundamental to success, regardless of “sector”. n Dan Brophy is director of Service Network and chief executive of Entrust.

Entrust, established in 1982, helps businesses in the North East with advice, consultancy and financial support, with a view to improving growth, development and sustainability.

Service Network is the only independent voice of the service sector in the North East of England. Culture for Success Awards 2012 will be open for entries from1 February 2012.

bq-magazine.co.uk opinion

service sector

A game of two tough halves The dual impact of new legislation and a hardened use of existing legal tools and processes makes 2012 challenging for business, says Neil Warwick The legal year ahead will be a game of two halves with the impact of new legislation on one side, and a hardened use of existing legal tools and processes affecting business, on the other. In the face of increased regulatory compliance and continued economic uncertainty, business will face a number of challenges in 2012.

From the struggling world economy, eurozone crisis and the Chancellor’s autumn statement, it is clear that finance will remain tight in 2012.

Couple with this the loss of bodies such as One NorthEast, Government Office North East and diminishing grant regimes and prospects start to look a bit bleak.

Could 2012 bring with it a socalled “wall of refinance”? This is possible, given that seven year facility agreements were quite common in 2005. By 2007 it was more normal to have five year agreements. When the true impact of the recession started to bite in 2009, three year facilities were introduced and 2010 saw the introduction of two year facilities.

The net effect of this is that a very significant percentage of facility letters will be up for renegotiation in 2012.

The likely impact will be that refinancing facility terms will become more difficult, the risk of insolvency will increase and the risk of clawback from government grant regimes will also be

heightened. Businesses will therefore need to get their house in order before negotiating refinance packages.

Effects of the introduction of the Bribery Act in 2011 will continue increased awareness of regulatory compliance into 2012, particularly on the need for adequate policies and procedures to deal with possible offences. As a result, large corporates have come to realise that compliance for the Bribery Act is intertwined with compliance for the Competition Act, the Enterprise Act, Health and Safety legislation and Data Protection, to name but a few.

The convergence of both these new and old compliance regimes inevitably starts with larger corporations and spreads to all businesses from there. Ironically, however, many large organisations with existing policies in place cut their compliance

budgets during the recession because compliance training is a discretionary spend – a dangerous false economy that will bring with it a heightened risk of regulatory prosecution in 2012.

This risk is exacerbated as the public sector organisations tasked with enforcing compliance have been affected by the Comprehensive Spending Review which may encourage the bringing of more prosecutions.

Equally, the Treasury is always grateful for the windfall of additional revenue from fines.

One arguably inevitable result of finance contracts “hardening” will be an increase in litigation throughout 2012. For those unlucky enough to have a difficult time renegotiating finance, litigation will become the only resort. Equally the trends in the financial market, such as the tightening of enforcement of terms, usually translate across to the consumer market, which in turn, leads to more litigation.

There’s no doubt: 2012 will see difficult times for businesses ongoing. A tougher regulatory environment, harder financial terms and a more litigious way of doing business is likely to form the backdrop for most companies entering into 2012. n Neil Warwick is a partner at Dickinson Dees law firm.

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opinion

Tax 2012: digital by default?

Digital will impact directly and greatly on businesses large and small, like it or not, say David Heaton and Keith Proudfoot

David Heaton, tax partner, Baker Tilly and chairman of ICAEW’s tax faculty

Keith Proudfoot, ICAEW regional director

Government wants its business transacted online, as much and as soon as possible. It’s logical: any wellmanaged business minimises its transaction costs (although not by neglecting “customers” to quite the extent seen at HMRC recently) - and going digital should be more efficient.

This will impact directly and significantly on businesses large and small, like it or not.

This is especially so in the area of PAYE and NICs, where HMRC staff cuts and over-reliance on unproven systems have

led to several high-profile problems.

The press loves to call them “taxman’s IT blunders”, and it’s tempting to swallow that line, but that’s not the whole story.

Six million letters last autumn telling people that they had paid the wrong

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amount of tax was not in HMRC’s plan, but in fact this is a symptom, albeit painful, of progress towards a digital future.

The pain is, of course, shared by business, as employees pester the payroll people to explain why “they” got their tax wrong, but the cause is a massive improvement in HMRC’s PAYE database, flushing out errors hidden for several years by the old, inefficient system, which was built 40 years ago on a collection of the biggest available computers. They’re all now on one machine (probably the size of an iPod, for all we know), which means duplicates and mismatches can now be ironed out. Progress.

Another major project, coming soon to a business payroll near you, is RTI: real-time information. What is it?

At the moment, employers report pay and deductions once a year, so HMRC is always at least a year behind with its processing: inevitably inefficient and, as already mentioned, error-prone.

From some time in 2012, a selection of employers will be using a new ‘”TI” system to report pay and deductions

The pain is shared by business as employees pester the payroll people to explain why “they” got their tax wrong

bq-magazine.co.uk opinion

service sector

Get your payroll software and your payroll staff ready, RTI is the next step in the Government’s digital evolution Last year, around 40% of SME online to HMRC’s computer every time employers did not pay over their PAYE an employee is paid. In theory, the data on time. HMRC realise employers can’t will piggy-back on the BACS payment get away with not paying employees, instruction, with little extra effort. By though. Forcing businesses to report late 2013, with teething troubles every payday will enable HMRC to sorted, all employers will be forced to check the correct amount is being use RTI. remitted. No more using HMRC as Why introduce RTI? Keeping regular a bank. tabs on employees’ pay and tax has There are also new penalties - in force two main advantages: collecting money already - for underpaying (up to a from employers on time and paying the swingeing 14%), and RTI will enable right amount of social security benefits.

Torgersens advert 143x100 final_Layout 1 09/12/2011 10:33 Page 1

the automation of the penalty notice.

The Department of Work and Pensions also plans, in 2013, to reform benefits with Universal Credit, adjusted regularly by the computer, based on almost-live earnings data collected by RTI. They think it should work a lot better than tax credits, which have been a shambles.

So, business, get your payroll software and your payroll staff ready. RTI is the next step in the Government’s digital evolution, and it’s coming your way. n David Heaton is tax partner, Baker Tilly, and chairman of ICAEW’s tax faculty, and Keith Proudfoot is ICAEW regional director.

At UHY Torgersens we are people focused, partner-led and interested in your business. Our people understand both local needs and the national picture, with the ultimate aim of helping you prosper.

We can help you with: • Accounting and auditing • Business advice • Tax mitigation and compliance • VAT advice and planning • Payroll – including PAYE, NIC and CIS Contact Paul Newbold or Martin Johnson t: 0191 567 8611 e: p.newbold@uhy-torgersens.com or m.johnson@uhy-torgersens.com Somerford Buildings, Norfolk Street, Sunderland SR1 1EE www.uhy-uk.com

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Self-sufficiency the trend The North East has a smaller than average proportion of service businesses to manufacturing but does have some big players even so, Brian Nicholls reports A small region it may be, but the North East provides a self-sufficient range of services to business, from accountants and lawyers to maintenance and storage providers.

London engagements on big issues has lessened considerably for many firms.

Indeed, some North East firms now serve needs in London. And many of our region’s services have a long tradition behind them; one of the law firms making national inroads for example is Watson Burton law firm, which has just celebrated its 200th birthday.

Many service providers shine as profitmakers too. Pacifica, a solar power specialist based at Chester le Street, was doubly successful in the latest Ward Hadaway Fastest 50 Awards, being adjudged the fastest growing North East company and the region’s fastest growing medium size company. The Government’s rein back in solar installation incentives will no doubt be a challenge Pacifica will rise to.

A decade or so ago you would not have expected a Darlington based hair stylist to be contemplating hundreds of openings abroad, starting with Mumbai. Yet that is what Saks under managing director Stephen Kee is doing, and with a £50m domestic turnover already, it looks suitably armed.

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While the North East economy has a smaller than average proportion of service businesses to manufacturing, it does have some big players indeed. No fewer than eight of the first 10 names in the latest North East Top 200 Companies provide services of one kind or another.

Bus and train transport is especially prominent through two companies up there, Arriva and Go Ahead at second and third respectively. Arriva, though now German owned, built its British and mainland European networks extensively from the North East before the takeover, and it still meets

conditions to be considered a North East company. Go Ahead meanwhile, rumoured to be a focus of Spain’s national rail company, carries over a billion passengers yearly throughout Britain by road and rail.

Sage plc, the world’s third-largest supplier of enterprise resource planning, and the only software company in the FTSE-100, rides high at fourth. Rumours it might relocate its headquarters from Newcastle to Spain, having started to run its European business from there, have been refuted.

The other biggest service providers are Vertu (motor dealerships), Northgate

cloudy outlook A major consideration for businesses is whether to opt for cloud computing. A major provider, Stockton based Onyx Group, believes it offers forward thinking companies a competitive edge. It leaves upgrade worries to others, it suggests, and is cheaper and more secure.

Phil Cambers of virtualisation specialist SITS Group in Newcastle, also finds Cloud attractive despite the Amazon’s horrors when its Cloud ran endless back-ups of itself, bringing storage capacity to a halt and costing corporate customers millions of dollars.

Moral: Don’t put all your eggs in one basket, SITS says. This is a time-proven gem of investment wisdom, after all.

Onyx, under chief executive Neil Stephenson, also specialises in security of internet traffic, mindful that 90% of this traffic passes through London at some point, and who knows what can happen these days? Onyx has reduced that reliance by providing alternative routes.

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The MetroCentre: A cause for celebration. plc (commercial vehicle leasers) and Northumbrian Water (sewage and water services).

Two other companies, Eaga and Southern Cross, were also in the latest top 10 but Eaga has since been absorbed by Carillion which is currently laying off staff generally. Southern Cross was a successful indigenous care home group until falling victim to a shameful involvement in international venture capitalism and having had to be broken up, leading to a lot of elderly people being wrongfully subjected to insecurity and stress.

Motor dealerships are a prosperous tradition in the North East. While some have suffered and even succumbed to recession and its aftermath – particularly those reliant on sales of lower priced fleets – Vertu at Gateshead and Benfield at Newcastle continue to grow. Vertu in its existence of less than six years has already acquired 82 dealerships and, plainly under chief executive Robert Forrester, aims for 100.

In retail, what may have been the North East’s biggest fireworks display yet highlighted before thousands the 25th

birthday recently of the MetroCentre, one of the first British malls combining shopping with leisure. The MetroCentre is the beacon shining a reminder to the world of what the North East can achieve when the going gets tough.

Since 1986, when the region was in earlier throes of financial challenge, the MetroCentre whose 23 million shoppers yearly include visitors from as far off as Iceland, the Faroe Islands and Norway, has created some 7,000 jobs locally. Local entrepreneur Sir John Hall had been inspired by what Canada does for its shoppers. Over the years

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service sector the mall he envisaged has grown to 360 shops with three and a half miles of frontage.

This is no solo success. Eldon Square shopping centre in Newcastle has continued to expand and £15m is being invested in an enlargement of the Bridges shopping centre in Sunderland.

Lower level retail and call centre jobs may not be everyone’s ultimate aspiration. But they are doing sterling work in preventing unemployment in the North East from being even higher.

Affluent inward investors briefly inspecting the North East might think it affluent indeed, in fact.

North East firms can bring them here in hired helicopter or private jet to be collected by chauffeur driven limousine.

They can call at a dedicated cigar shop before unpacking, in a fully serviced apartment, with a fridge full of champagne before a casino night out.

The region has resident millionaires too.

But life is a lot less grand for the many here who are paid lower than UK average in services.

Newcastle remains one of the country’s leading shopping cities, for North Easterners have long been enthusiastic spenders. Many among them who are being paid off in the jobs meltdown are being redeployed into a burgeoning series of supermarket openings - some open 24 hours daily. Dependence on retail employment was evident when more than 700 hopefuls applied for six temporary jobs Waitrose advertised in Newcastle city centre recently.

The North East’s retail flagship, Greggs

Eldon Square remains one of the region’s most popular shopping destinations. takeaway bakeries, is a national institution because Greggs since the 1930s has been spreading the wisdom of ensuring value for money and profiting from it.

Call centres employ one in 20 people in the North East - 145,000 workers in 145 contact centres. As elsewhere, centres open and shut regularly, the loss of a couple of contracts being enough to close the lines. Orange was rhapsodic about Darlington’s local skills when it launched there. Now, in a marriage with T Mobile called Everything Everywhere (an ironic name

Newcastle remains one of the country’s leading shopping cities for North Easterners have long been enthusiastic spenders

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change, that) the Darlington locals like others affected around the country have been told a number of their jobs are being switched to India.

Little wonder, apart from the pressures and repetition of their routines, many employees regard this kind of work as a precursor to something different, according to research by Durham University. Yet, without the centres, 145,000 more people might be unemployed and certainly less skilled in communication, the asset particularly helpful towards finding new opportunity.

At Cobalt, the UK’s largest office park at North Tyneside, men and women in their hundreds are being trained at the North East Contact Centre Academy, with prospect of recruitment by big-name companies on the park.

Of course many service firms are doing

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well in their line of business, giving employees long term and rewarding satisfaction. Cundall Johnston and Partners, the international consultants in engineering, despite a lack of large capital projects, continue to impress with their profits. OpSec, fighting from Sunderland global counterfeiting in brands, bank notes and high security documents, has also come through the recession successfully.

And TSG technology services group, the inspiration of entrepreneur Graham Wylie - a co-founder of Sage continues to acquire other businesses.

Still in its first decade, the firm is already approaching £50m turnover, providing IT services to small and

service sector Dependence on retail employment was evident when more than 700 hopefuls applied for six temporary jobs in Newcastle city centre medium size businesses across the UK. Shipping on Tyne, Wear and Tees may be a shadow of what it was. But the region still has a successful and globally renowned marine insurance sector. And Caspar Shipping, active in

Middlesbrough since Queen Victoria’s reign, can record a 50% jump in business and expansion through seizing handling opportunities in shipments of windfarm and bioproducts.

Industrial testing firm Intertek has centres thriving at Seal Sands, Darlington and Wilton as it practices quality and safety insurance in a range of products and processes that include the ascendant industries of car manufacturing and chemical processing.

However, the leisure industry that earned Newcastle its international reputation as a party city must rely on ingenuity now to draw in the mid-week customers. n

company profile

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

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

They have the professional experience and expert knowledge to examine business ideas, evaluate potential and advise for the best chance of success.

A new scheme plays a vital role in the business support landscape. ICAEW’s Business Advice Scheme (BAS) offers SMEs advice on how to overcome the challenges faced in today’s economic climate. There’s an initial free session of up to 2 hours with a qualified ICAEW member and no future obligation.

“It’s not just government’s responsibility to help businesses survive and thrive.

As a profession that acts in the public interest, we recognise our responsibility to offer crucial guidance” says Keith. n

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

ICAEW (the Institute of Chartered Accountants in England and Wales) is a professional membership organisation supporting over 136,000 chartered accountants around the world. For information please visit www.icaew.com

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business support In association with

Help today can improve prospects for a company tomorrow. When difficulties arise in the normal work routine, when some kind of outside help is required, or when any kind of external resort is needed to improve a corporate performance, there will be a body or organisation close by in the region to fill the void, or deliver the right solution

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dO it diffErEntLy Entrepreneurs are working together with determination and energy to drive forward the economy, writes Nicola Short

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business support It is increasingly evident that entrepreneurs are looking to do things differently, find new products and services, and work more in collaboration with each other.

Confidence in the SME sector is widespread despite challenging times,

£500m. At the Entrepreneurs’ Forum, our aim is to provide our members with a dynamic entrepreneurial environment in which to be inspired, share knowledge and create connections within an exceptional peer group. It’s how a business adapts to change that

It is increasingly evident that entrepreneurs are looking to do things differently, find new products and services and work more in collaboration and this is really reflected by the growth in the North East’s entrepreneurial community.

At the Entrepreneurs’ Forum we strive to champion and celebrate the achievements of our members who are driving forwards with hard work and determination which underpins business success. Among them is Darren Williams of Harland Corporation. He is the epitome of an entrepreneur who has achieved a phenomenal amount against all odds.

Harland Corp has become one of the fastest growing online hair and beauty companies in the UK. Darren employs 15 staff and has a 73% growth rate.

The success of the growth has resulted in Harland exporting to more than 37 countries worldwide.

He has now just released an advertising campaign which says: “Our goal is simple. To be the largest employer in the North East. Let’s create something special together.”

And the achievements of our members continue. Mark Squires, chief executive of the North East’s biggest motor group Benfield recently announced their biggest ever acquisition. The agreement with Audi dealer Colebrook will increase Benfield’s sales by a third to

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makes it successful while others stagnate. In that spirit we have a number of positive developments that will invigorate the next chapter in the life of the Forum.

To complement our membership portfolio, we have a new level of membership launching in January called Exchange, aimed at large corporate businesses. There is a real need for best practice within large organisations to be complemented with the free thinking structure of smaller entrepreneurial businesses.

Our Exchange membership addresses this issue head-on and will benefit both the forum and large organisations by exposing their key leaders and

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tenth year in business. To celebrate, we are organising several landmark gatherings including Achieve on March 8, and our annual conference on May 17, Winning Against All Odds.

Both are fantastic opportunities for the North East business community to hear from inspirational people doing remarkable things.

Our mission in 2012 is to respond rapidly to challenges and opportunities, and expand upon our mentoring programme to ensure that all our members get the chance to speak to people who have been there, or are doing it, or in turn offer advice to somebody who may be in need of some outside guidance.

We’re now at 500 members and are always keen to talk to ambitious business leaders about what benefits being part of the forum can bring. We want to bring more people into this community which provides unfettered access to experienced entrepreneurs who are willing to act as signposts or sounding boards.

After the whirlwind period of settling into my role as executive director of the Forum, what have stood out to me most is the people, the stories, and the incredible support existing

Our mission in 2012 is to respond rapidly to challenges and opportunities and expand upon our mentoring programme executives to entrepreneurs who have risked everything to create successful businesses. Forum members will also be able to learn about best practice and fundamental disciplines to develop a structure which can aid rapid growth.

We have also just announced our key event dates for 2012, which is our

between the members. I’m really looking forward to 2012 which will surely be another productive year for the Entrepreneurs’ Forum and our members. n Nicola Short is executive director of the Entrepreneurs’ Forum.

Alastair MacColl Chief Executive, Business & Enterprise Group

When you exist to create success stories, it helps if you’re a success story.

Since 2007, the Business & Enterprise Group has supported over 75,000 businesses, helped create over 22,000 jobs and been behind the launch of over 17,000 new start-ups. All this we have done by sourcing vital investment, by providing expert professional advice, by hosting major events and workshops, by facilitating international trade, and by stimulating supply chain development and procurement.

It’s a track record of which we are rightly proud, and a pedigree that makes us justifiably confident for the future.

They say that success breeds success – the Business & Enterprise Group proves the point.

If you’d like to find out more about our services, contact us.

E: enquiries@business-enterprise.net T: 0191 426 6408 www.business-enterprise.net Follow us on Twitter @B_EGroup

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Adapting to change Alastair MacColl tells BQ Yearbook about the Business & Enterprise Group’s ambitious plans and the services that are available to help boost the UK’s businesses Over the past few years we’ve seen some profound changes to the markets in which we operate. We’ve adapted to those changes and anticipated others to help evolve our business; focusing on the future, generating new opportunities and investing in new markets.

We have secured a number of prestigious national contracts in England, Scotland and Wales, which complement a comprehensive portfolio of services for businesses of all shapes and sizes.

Our company has developed steadily since we launched in 2007. Since then we’ve worked with more than 75,000 businesses, helped to create 22,000 jobs and been behind the launch of 17,000 new businesses.

The BE Group’s client list includes businesses and organisations from all sectors. Heathrow Airport, Lloyds TSB, Lockheed Martin, Boeing, Crossrail, Nexter and Saab are just a few of the clients we have worked with.

We also operate contracts for a range of government departments and agencies, including the Department for Business, Innovation and Skills, UK Trade & Investment, the Skills Funding Agency and Westminster City Council.

In early 2012 we launch a new commercial business advice service for established businesses. The Business

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We will create or safeguard 1,500 North East jobs, boosting the prosperity of the region to the tune of £10m over two years

Partner, as it is called, offers small and medium size businesses affordable, professional and independent

assistance to help them succeed and grow. Our team of Business Partners work with business owners and management teams on areas that matter most to their business, from sales and marketing, managing finances to people development.

In addition, through our Investment for Growth programme which is part funded by the European Regional Development Fund, we will create or safeguard 1,500 North East jobs, boosting the prosperity of the region to the tune of £10m over two years.

Our reputation is being built on generating real value for real businesses. When it comes to supply chain development, international trade, events and exhibitions and access to investment our group offers exceptional value and results.

It has never been more important to stimulate private sector growth and jobs – and I am extremely pleased that our group will continue to make a substantial contribution to that effort by helping businesses in the North East and across the UK to succeed and grow. n Alastair MacColl is chief executive of the Business & Enterprise Group (BE Group), one of the UK’s leading specialists in business improvement.

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business support company profile

South Tyneside’s Green Incubator A state-of-the-art business facility that will house new and growing companies in the low carbon and environmental sectors is taking shape in South Tyneside

Artist’s impression of what the development will look like when it’s finished.

The ‘Green Incubator’ is being built on part of the former Circatex site at Eldon Street, South Shields and will provide high quality managed workspace and business support.

The facility will offer 30,000sq ft of business premises in 41 flexible office, workshop and hybrid units. It is due to be complete in June 2012.

Encouraging new and existing businesses to set up in state of the art facilities will complement the work already taking place to bring more investment and jobs to South Tyneside.

Developments such as these are shaping the future of the South Shields Riverside as a great place for people to live, work, visit and do business.

This exciting development will make a significant contribution to placing South Tyneside at the forefront of the green industrial revolution.

The Green Incubator units will attract new businesses operating within the

low carbon and environmental industries sectors, whilst encouraging local people to start their own businesses. Once established, they will receive all the support they need to grow and evolve and in doing so, they will create exciting employment opportunities for our residents.

Business accommodation space within the facility ranges from 178sqm hybrid units to 16sqm small office space to let, perfect for start-up, expanding and established businesses.

Service users will benefit from: • High specification office space ranging from 16sqm – 53sqm • Workshop units up to 83sqm • Hybrid units up to 178sqm • Roof garden space • Free parking • Conference and meeting facilities • Self contained offices and industrial units

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Communal meeting areas with free Wifi Central mail room 24 hour CCTV site coverage Short term ‘easy in / easy out’ tenancy agreements On-site maintenance services including cleaning and security Access to on-site business support and networking opportunities State of the art telecoms and ICT facilities Recycling facilities Central reception and switchboard services available

The £5m project is being developed by South Tyneside Council, in partnership with Groundwork South Tyneside and Newcastle, and is being part funded by £2.46m from the European Union’s European Regional Development Fund (ERDF) Competitiveness Programme 2007-2013.

The main contractor is Robertson NE in partnership with Plus Three Architecture.The three-storey building will incorporate state-ofthe-art environmental energy systems and will be one of only a few in the UK to achieve a BREEAM ‘Outstanding’ rating. n

For further information contact John Scott on 0191 424 6250 or email john.scott@southtyneside.gov.uk.

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Support from every angle This year promises to chart the ongoing evolution and development of the region’s business support network. Brian Nicholls takes stock of news and initiatives in the sector which could impact on North East firms in 2012 SOCIAL MEDIA WARNING: Companies lacking policy on social media court trouble, warns Britain’s top trouble shooter in the minefield of industrial relations.

Peter Harwood, the North Shields born chief conciliator for Acas - the specialist in workplace relations - has been advising businesses to adopt an approach. He says: “Many businesses value the power of social media websites for marketing. They seem less keen to embrace another effect of social media equally important – how an employer manages employees’ use of social media such as Facebook and Twitter in and outside work on PCs, laptops and smart phones.

“There has been a host of highprofile and embarrassing disclosures on social media sites. Firms need to know how to work at preventing this from happening.”

A survey by law firm DLA Piper revealed that still only one in four employers have a policy. Yet, says Harwood: “Social media websites already affect

how strikes or potential strikes can spread, and how individuals without a union can still organise themselves.”

He recently briefed a seminar hosted

by Wood Holmes, a Newcastle firm helping businesses and organisations to adapt to the changing high-tech world. More information is available on: www.acas.org.uk/socialnetworking Mobile qualification: Newcastle College now runs a higher education qualification in developing mobile applications across all mainstream platforms - believed to be the first college-based higher education qualification of its kind in the UK. The FdSc in Software Applications Development comes in response to growth in the mobile technologies sector, particularly through development of smartphones and consumer mobile applications.

Accountants help: Members of the Institute of Chartered Accountants in England and Wales have been giving small and medium business owners an

Our aim is to encourage business owners and individuals to seek professional help earlier when difficulties become apparent

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initial consultation at no charge and without future obligation.

Also accountants have increasingly been involved in rescue, recovery and renewal of businesses into albeit perhaps more modest operations to survive. Years ago total collapse would have been more readily accepted.

Now The North East arm of R3 runs a professional body working with the Government to help clients avoid insolvency and protecting individuals.

Linda Farrish, who chairs the North East arm and is a director of recovery and insolvency at Newcastle accountants RMT, says R3 works with Jobcentre Plus and the insolvency service to minimise job losses and pushes for company voluntary arrangements to be given every chance of a recovery. “Our aim is to encourage business owners and individuals to seek professional help earlier when difficulties become apparent.”

Taxman cometh: Keith Williamson, partner at North Shields accountants Bell Tindle Williamson, warns that small businesses need to get their company records in order ahead of a surge in visits from the tax inspector. An HM Revenue and Customs campaign underway will see 50,000 business visits undertaken during each of the next five years.

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business support

bag Lady businEss

Out of redundancy: Rebecca Young who set up her business, SJ Party Bags and Wedding Favours with help from the Business Factory - a project funded by North Tyneside Council and ERDF. Being made redundant enabled mother of two Rebecca Young to achieve her aim of becoming a bag lady – a party bag lady.

After nine years as an administrator for a North Shields estate agent she was made redundant. She used her redundancy payment to invest in an online party bag and wedding favour making business, SJ Party Bags and Wedding Favours. She had met a business advisor from the Business Factory - a project funded by North Tyneside Council and delivered by Tedco – who helped her achieve her aim with a lot of free advice and support.

The Business Factory, on High Street West in Wallsend, is North Tyneside Council’s one-stop-shop for budding entrepreneurs.

start-up incentives: Newcastle Science City, encouraged by a £6m portion of the Regional Growth Fund, is fostering future innovators with an initiative designed to take business ideas to market. Preference goes to ideas in one of Newcastle’s three science growth areas of sustainability, ageing & health or stem cell and regenerative medicine.

A Science City business support team speeds business ideas with high

growth potential. The team is looking for ideas capable of support and can be contacted by visiting www.thescienceof.co.uk and following the relevant links. looK lively: Shell LiveWIRE is offering monthly awards for innovative business ideas, in addition to its annual £10,000 competition. www.shell-livewire.org/awards/ grand-ideas-awards.

fingertip laW: A new online legal support service, Particular.Pro, has been launched for businesses from Middlesbrough. Developed at Boho, Teesside’s digital, creative and business hub, it is the inspiration of Matthew Rippon, a director at Particular Commercial & Legal Services. Rippon and business partner Deb McGargle are giving subscribers information to help expand their knowledge of legal business and commercial issues.

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business support Green for go: A green project is getting £340,000 funding to help up to 80 businesses in the North East improve the environmental impact of their products. Sustainable Lifecycle Design received the grant. Under the scheme, managed by Newcastle University, a design engineer will spend two days with businesses from a wide range of sectors, after which they will receive recommendations on how to improve their carbon footprint.

It is hoped to help businesses to increase profitability by improving longevity, reduced costs and more green credentials.

Michael Mulroy, business development manager at Newcastle University’s Resource Centre for Innovation and Design says: “Sustainable Lifecycle Design will help them to establish where key improvements can be made and also identify methods of reducing waste and increasing profitability.”

Opportunity knocks Firms in Durham area can now benefit from Durham Office Services, which is providing call and mail management, meeting and training room hire, event organisation and administration services. Under manager Jessica Trotman, it is part of Durham Business Group, which includes established networking organisation Durham Business Club and is celebrating its 30th anniversary. www.durhamofficeservices.co.uk

Taking shape: The new Northern Design Centre taking shape at Gateshead will provide a home for the region’s growing design industry and a new creative resource for local service providers and manufacturers.

Fighting a peril: The UK Health and Safety Executive comes under fire often but one of its major achievements has been to clamp down on use of asbestos which has caused many deaths and was outlawed for building in 1999. About 500,000 non-domestic buildings still contain asbestos, a real risk if not managed properly. Had something like the executive existed years ago there would not have been around 400 yearly dying in the North East and Cumbria. Meanwhile the HSE is cutting some of its red tape by clarifying its aims and

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purposes on a website, www.hse.gov.uk/simple-health-safety.

It all counts: An Experience Bank now runs young and growing companies with partners – men and women who have proven experience in the same sector or with specific specialist skills. It is an offshoot of an investment initiative developed

by North East Access to Finance (NEA2F) which helps business access funding.

Keeping the talent: Three lead players in science and technology have launched new support systems to retain top talent and draw innovators to the region. NetPark, the Centre for Process Innovation and Durham University have pooled expertise to develop a business innovation gateway, a portal that offers expert information and advice, and access to finance, development support and access to premises.

Helping hands: In North Northumberland groups are working together as a new group, Northern Reaction, to introduce an enterprise project for aspiring business launchers in the county. Social Enterprise Reaction, the Glendale Gateway Trust and Seahouses Development Trust are encouraging rural initiatives.

Tel: 07768 702 933.

All systems go: (left to right) Jessica Trotman, Alison Gittins and Christine Yule of Durham Business Group, cut the ribbon to launch Durham Office Services.

Home support: Many firms find it worthwhile to employ home workers, bringing lower overheads, improved customer experience, greater working flexibility and lower environmental impact in line with increasingly stringent green regulations.

The North East’s Homeworking Fund helps meet the cost of their employment. Contact

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homeworkingfund@entrust.co.uk or call 0191 244 4000 for details.

Find a factor: Cash flow is critical at this time. Factoring avenues exist to help businesses spread their outgoings. Companies in the North East spend 390,000 days a year chasing payments and a quarter have been chasing even harder over the past year.

The time lag between issuing invoices and receiving payment puts severe pressure on small firms.

Academic exports: Newcastle University Business School has an export academy involving Dr Herbert Loebl, a regional pioneer of spinouts.

business support Three lead players in science and technology have launched new support systems to retain top talent and draw innovators here Pioneer research: The Wilton Centre in a 75 acre park near Redcar is one of the country’s best known locations for pioneering research and development and high specification offices.

It provides laboratory and pilot plant accommodation for a range of firms.

Next generation: A new Newcastle Discovery Technology College will tutor the next generation of engineers, IT professionals and scientists to help close the skills gap in the region. It opens in 2013, with places for 1,800 students between 14 and 19.

Advice to all: Tyne and Wear Development Company in its 25 years has attracted major firms to the region including Tesco Bank and Balfour Beatty. It provides a free, independent and confidential advice service to investors of all sizes. Its experienced experts provide one point of contact for a wide range of business needs. n

Entrepreneurs’ Forum Key Dates 2012

January 12, 2012 - Chairman’s Dinner March 8, 2012 - Achieve, International Women’s Day Business Conference May 17, 2012 - Winning Against All Odds, Annual Business Conference and Awards Dinner November 8, 2012 - Fortune Favours the Brave Autumn Conference Get ahead of the game and be the first to hear from our guest speakers. Be part of the dynamic environment created by the Entrepreneurs’ Forum to inspire, connect and ensure that entrepreneurship continues to sit at the heart of the region’s economic prosperity.

Book now. Reserve your place at any of these events by speaking to Rachel or Victoria on 0191 500 7780, email rachel@entrepreneursforum.net or visit www.entrepreneursforum.net/gathering

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business support company profile

QUaliTy BUsiness sUPPorT in Tyne and wear Businesses in Tyne and Wear looking for assistance with their growth plans have access to a free and confidential support service in 2012 Tyne and Wear Development Company, which in 2011 celebrated its 25th anniversary, remains the main driver of business investment in the area.

It is the area’s leading source of independent business advice and boasts a team of skilled investment officers delivering a wide range of services for any organisation with a mobile investment project.

Over the last quarter of a century, its expertise has helped to create hundreds of jobs and deliver millions in investment by supporting growing local companies and attracting major inward investors to the region.

Paul Buie, manager of Tyne and Wear Development Company explains: “This area is a fantastic place to do business.

It boasts excellent transport links, a wide choice of premises, skilled workers and some of the most comprehensive business support around.

“The role of Tyne and Wear Development Company is to help businesses realise their ambitions by providing bespoke support and advice.

“Working alongside key partners, we’ve had consistent success in delivering effective business support which has been a major boost for the area and the businesses based here.”

Tyne and Wear Development Company provides a range of support to businesses of all sizes and sectors including: property advice Using a comprehensive database, it will identify properties to meet the

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specifications of each company. It will also organise and accompany investors on a programme of site visits where needed.

local KnoWledge and research The depth of support extends to a wide range of background information on the region including key business sectors, availability of labour, salary levels, housing, schools and quality of life. sourcing grants and finance A number of sources of finance are available to businesses and Tyne and Wear Development Company will advise firms on their eligibility for funding.

Councillor Paul Watson (L), chair of Tyne and Wear Development Company, with Paul Buie manager of Tyne and Wear Development Company inWard investment support One-to-one support throughout a project, acting as an extension of a company’s team to organise visits to the region, identify property, provide bespoke research, background information and support for training and recruitment. strategic support A dedicated ‘aftercare’ service to meet long-term development needs of businesses, addressing key challenges and maximising growth. This includes networking, advice on finance and support in accessing new markets.

Besides supporting individual businesses, Tyne and Wear Development Company also supports key industry sectors in the region. As the driving force behind the Tyne and Wear Contact Centre Network and the North East Contact Centre Awards, it has played a major role in the growth of the region’s contact centre industry.

It also organises the annual Tyne and Wear Commercial Property Show which promotes the region’s commercial and industrial property market. n

For more information about investment opportunities and support in Tyne and wear, visit www.tyne-wear.co.uk or telephone 0191 516 9099

exporting We’re so good at it why don’t more of us do it? Figures prove no-one in the UK exports better than the North East. Ironically, the region could do even better. It only requires more firms to follow the examples of a relative few already setting a cracking pace. And know what? Some of the most successful exporters are small businesses

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exporting

Rouble rouser: Geoff Turnbull was able to bring home ÂŁ50m in orders from Russia during 2011, thanks to his company GT Group at Peterlee

vEry gOOd, COuLd bE bEttEr The USA remains the largest single market for North East goods, but South Africa is coming up on the rails, Brian Nicholls reports

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Exports from the North East continue to grow - with another record high for the 12 months to the end of September 2011.

And these latest figures could be even higher if companies stepped up their language skills, the Forum of Private Business points out.

Even so, between July and September 2011 the North East was one of only four regions to show a growth, with exports from the region reaching £3.326bn. This brings the 12-monthly total up to a record £13.211bn.

The other regions stepping up the pace were London, South West and East Midlands.

The figures released by HM Revenue & Customs represent a North East jump of around 16% on the previous 12 months (up to end of September 2010) compared to a national increase of just under 14%.

But the actual number of North East firms involved in international trade saw only a small increase in the last quarter, with 1,090 firms exporting goods around the globe.

Among them is a South Tyneside specialist in engineering - Phasor Ltd, of Whitburn – whose own designed and manufactured automatic oil seal inspection machines are particularly popular in China and the USA. Peter Hage, technical director at Phasor Ltd, says: “It’s great that the North East’s export performance continues to grow. Opportunities are out there. With innovation and investment of time and resources into new markets, companies can win new business.”

By contrast, the Forum of Private Business is warning that poor foreign language skills are costing British businesses £21bn a year, leaving them behind large companies that are increasingly investing in

multilingual staff. The forum subscribes to the view that four elements of language management can be associated with successful export performance: having a language strategy, appointing native speakers, recruiting staff with language skills and using professionally qualified translators or interpreters.

An SME investing in these four elements is calculated to achieve an export sales proportion 44.5% higher than one without these investments.

The not-for-profit forum now runs a new language service for SMEs in conjunction with Peak Translations.

The latest export figures show the fastest growing single market for the North East presently is South Africa, with exports there 145% up to £162m over 12 months. The USA remains the largest single market for North East goods with a 12-month export value of £2.21bn, an increase of 25% over the previous comparable period.

Other fastest growing markets for the North East were Canada (69% up to £188m); Russia (57% up to £908m); and Turkey (48% up to £440m).

Exports of power generating machinery and specialised machinery were the two fastest growing sectors in the past year with increases of 50% each on the previous year. Road vehicle exports continue to grow, up 31%, while organic chemicals rose 32% to £836m.

David Coppock, UK Trade & Investment (UKTI) regional director, expects the Chancellor’s £45m announced in his Autumn Statement will help get more firms exporting. n For more help and advice about exporting, contact North East International Trade Hotline on 0845 05 05 054 or email enquiries@ukti.rito.co.uk

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dOn’t Just survivE - thrivE Economic pressures and uncertainties just now are daunting even to experienced exporters. But firms should not be deterred from selling overseas, David Coppock says Exporting can be a daunting prospect and the economic pressures and uncertainties of recent times could be enough to deter even experienced exporters. Yet there are compelling reasons indeed why North East companies should not be put off, and there are still many opportunities for successful trading in markets around the globe.

The benefits of exporting and the opportunities for growth have been proven time and again and include: increased productivity; greater resilience; reduced reliance on domestic markets and enhanced competitiveness.

In the North East, exports are vital to the region’s economy, and although the region saw a dip in exports at one point in 2011 we still recorded a record growth later in the year (see below).

So our region has fared well in overseas markets and our international trade performance is strong. However, the actual number of companies that

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There are compelling reasons why North East companies should not be put off exporting and there are still many opportunities

export is small and most of our overseas earnings come from relatively few industries such as the automotive, chemical, biotechnology and pharmaceuticals.

UKTI’s continuing challenge is to keep up the momentum and support companies as they seek to develop new overseas opportunities. We want to encourage more companies to take up the export challenge, widen the range of goods and services that are exported and broaden the number of markets in

which they are involved.

Last year more than 600 North East companies took advantage of the support UK Trade & Investment offers, and nationally UKTI helped more than 25,000 companies over the 12 months up to the end of 2009 – 90% of them SMEs – to generate £5bn for the economy.

We have a dedicated team of International trade advisers to offer expert help and access to a wide range of services, helping companies reach new markets. We also organise a full programme of events and workshops throughout the year, covering everything from how to take your first steps into a new market to more specialised events focussing on a particular market or industry sector.

And our Market Visits programme gives

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companies a chance to join a delegation of like-minded people as they explore a market and meet potential clients face-to-face. In the coming year the programme will include Market Visits to Japan, Thailand, Brazil, and China.

Many of the region’s companies are already successfully exporting and we’re keen to encourage more to follow in their footsteps - virtually any company can export its products and services, from a single-owner operation or those employing just a handful of staff to large corporations employing hundreds.

I urge them to contact us and find out how UKTI can help. www.ukti.gov.uk. n

Many of the region’s companies are already successfully exporting and we’re keen to encourage more to follow in their footsteps

David Coppock is regional director for UK Trade & Investment (North East).

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gEt rEady fOr russia With outdoor clothing giant Berghaus leading the way, Russia is becoming an increasingly happy hunting ground for North East firms. Andrew Mernin reports in the region’s fastest growing export market

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A transparent and corruption-free market oiled by petrodollars and awash with investors looking for UK partners – no it’s not the UAE or Qatar, it is in fact Russia.

The expansive market was the North East’s fastest growing export destination in 2011, with the annual value of trade leaving these shores for Russia increasing by 177%, or £591m.

Berghaus is already well underway with its plan to open up several Russian stores. Family-run manufacturer GT Group also struck gold in Russia in 2011 with a contract worth up to £50m with Russian engine manufacturer GAZ Group. According to UK Trade and Investment trade adviser Dr Jeff Sanders, common misgivings about a market which is often portrayed as corrupt should not get in the way of what is a land of hugely lucrative opportunities.

“Don’t be scared,” he says on how to crack what is perhaps one of the most mysterious markets for export virgins. For the North East-based UKTI man, even SMEs who are yet to make their first overseas foray should not be intimidated by the old red giant.

“Things have changed so much in Russia. It used to be a very difficult market to get into and was full of corruption, but over the last five years that corruption has gone and the Russian economy itself is increasing rapidly. I remember going to Siberia a couple of years ago and even I was expecting people to be living in wooden huts, but when I got there one in three cars was a Mercedes.

“There was a manufacturing company there which we visited. In the UK companies like this would only have one kind of a certain machine because they are worth about £500,000.

“But this company had 30 or 40 of them lined up in rows. They said they wanted to buy more but they just

couldn’t find the supplier to buy them from. ‘We’re willing to pay upfront and in cash,’ they were saying.”

Although the region’s growing Russian export figures are significantly boosted

by Nissan - with Sanders admitting the Japanese firm’s cars are extremely popular on the roads of Moscow - he has also witnessed a growing number of SMEs heading to Russia from this region. He says: “There are a stack of exports going from the North East into the oil and gas sector in Siberia and that’s just going to grow and get bigger. I’ve got a company at the minute that is preparing to go to Russia next month and already they think they’ve got a distributor out there before they’ve even left the UK.” As well as the appetite to work with the UK’s oil and gas service sector, there is also the insatiable demand for British fashions and artefacts in Siberia and the wider Russian nation.

“The oil and gas industry makes parts of Siberia incredibly wealthy. I went to a shop which specialises in selling British furniture and upholstery and they couldn’t get enough of the stuff.

“They were buying it from the UK and shipping it five days by lorry and selling small armchairs for about £2,000 – they were going out the door like hotcakes. The Russians are very gothic in their style so the traditional Victorian British style fits very well with them.”

Once face to face with potential partners or clients, there are the obvious do’s and don’ts which come with most new markets, says Sanders.

Don’t use first names, use titles where possible and of course, dress immaculately. One difference of note – which, if followed on these shores, would perhaps make UK boardrooms a more pleasant place – is in the way negotiations take place. “Don’t speak down to people, in the way that people tend to here,” he says. n

our man in moscow In 2011 North East clothing brand Berghaus opened its first Russian store and set out plans to build a retail network across the vast country. Here brand president Richard Cotter explains the company’s break into Russia.

He says: “The sheer scale of Russia and the fact that Berghaus had no presence there in the past were particular challenges. We believe the business model that we have adopted, working with an established and successful distributor, will allow Berghaus to quickly make an impact in Russia and then build significant sales and market share over the next few years.

“The Russian market is one of the fastest growing in the world. There is a huge opportunity there for credible, authentic performance outdoor brands and Berghaus absolutely fits that description. In Russia, particularly in the winter, effective insulation and weatherproofing are essential, both of which Berghaus specialises in.

“Our team in Russia works closely with the wider European and Middle East business unit to ensure that each collection includes styles and colours that will have commercial appeal in the market. In terms of differences between business etiquette in Russia and the UK, the word ‘dusha’ (our translation would be ‘soul’) remains central to everyday Russian behaviour and as a result when building successful business relationships with Russians you will find that mutual liking and emotion will form a strong base for long term success. There is no word for privacy in Russia; therefore the notion of social space is much closer.

Russian culture is focused on building close relationships and it is key that the relationship comes first.”

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built environment In association with

Who said property guarantees profit? A fog of uncertainty hovers over commercial property, both in take-up and in the investment. And in construction and civil engineering a dearth of contracts has hit the North East harder than anywhere else in the country. But there are good news stories too, and some prospects at least for a better year than 2011

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built environment

WELCOME tO thE unknOWn Money is the root of all uncertainties as a new year dawns in the commercial property sector, gavin Black suggests

Shopping rarity: Eldon Square South in Newcastle has been a rare major retail development over the past three years.

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There is demand in the market place but not at historic levels and I anticipate occupiers continuing to be active through 2012

This is a bleak but honest view which begs the question about the direction of the commercial property sector.

Looking at the three main elements, retail, industrial and offices, the region is not at risk through over exposure.

For the last three years of recessionary or near recessionary conditions there has been only one significant retail development, Eldon Square South, being developed and fully let with some outstanding retail space that befits the centre of Newcastle.

In the offices sector only Wellbar Central, Newcastle city centre, has been completed and this has attracted a 36,000 sq ft BSkyB letting. So, taking a city centre perspective, there is very little supply of Grade A space and limited prospects of new development.

In general the mix of availability across city centre, edge of centre and out-oftown represents a range of locations and space. A willingness by landlords to engage in flexible terms with other inducements makes this a good time for occupiers to review their space needs, the North East being strongly

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competitive on an overall cost basis.

There is demand in the market place but not at historic levels, and I anticipate occupiers continuing to be active through 2012 taking account of a willingness by all to be flexible.

The industrial sector includes logistics and distribution and a major focus is the anticipated arrival of Hitachi Rail Europe to Newton Aycliffe. This 460,000 sq ft project is expected to be given Government go-ahead in spring 2012.

The effect on the supply chain will be significant, perhaps comparable to another Nissan arriving. The Hitachi project underlines the strength of the region’s infrastructure here. There is rail access to the Amazon Park site, road and rail links to Teesport, and soon several miles of six-lane A1M speeding access to the M62 corridor and beyond.

The dualled Tyne Tunnel is now also a reality.

I believe the limited exposure to the sectors and the improving locational advantages of coming to the North East means we are at a more stable level,

and that can only improve in time when the availability of funding returns.

The last few years have seen a radically changing skyline in central Newcastle from the Newcastle University Business School, the Sandman Hotel, Time Central and Wellbar Central west of the city centre to the University of Northumbria’s redevelopment east of the city centre. These are important developments that considerably improve the offer and presentation of the region’s capital.

Several unknowns come into play during 2012 though. Budget reductions throughout local authorities and the disappearance of One North East together with continuing government spending cuts and the ever present pressure on fuel costs have all removed much spending power at street level. This brings me back to my first point – there is still little doubt that concerns about our national wellbeing will continue. n Gavin Black is partner at Gavin Black & Partners.

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built environment

Bridging the work famine Two end of year project awards have rescued the region’s civil engineering industry from potential catastrophe, Douglas Kell says It’s no exaggeration to say the North East’s civil engineering industry has found a lifeline through the Government’s Yes to a new road bridge for Sunderland – to be England’s tallest at 600ft – and through a major bypass for Morpeth.

Contractors have been hit harder in our region by the downturn than anywhere else in the UK - with a fall in workload of more than 27%. Orders for new construction in the region during 2011 ran 41% down at one point before go-ahead for the bridge and the bypass was announced, and jobs have fallen 20% - double the UK rate.

Total investment for the two public projects at Sunderland and Morpeth will be £147.7m, of which the Government is providing £103.7m.

Sounds good, but how much of that will stay in the North East economy?

Bridge building being what it is nowadays, the Sunderland contract may be led by a consortia of companies, none of which is guaranteed to work from the North East. But unless there’s a major input

by North East firms and North East workers, financial gain to the region will be minimal.

The start of the Sunderland road bridge next October is excellent, but the February 2014 start for the northern Morpeth bypass benefiting links with South East Northumberland is a little

disappointing. Surely that could be brought forward?

Now we must look at the underfunding for the North East in respect of the Schools Refurbishment Projects. Out of more than £500m allocated, little more than £1m looks to be coming to schools of our region.

Is this fair to the children, their teachers and parents, and the good of the North East workforce of tomorrow? Is it fair to the thousands clinging on to their jobs in the region’s civil engineering, probably the most taxed sector as it shells out tax payments through PAYE, national insurance, VAT and corporation tax, as well as aggregate tax and environmental taxes?

Derek Ginsberg, whose Wyn Construction firm at Cornsay Village, County Durham, has had to search out alternative markets as local schools work in the last six years has diminished, says the only North East work apportioned now appears to involve a £900,000 spend in Darlington and £200,000 in Stockton – just £1.1m or 0.2% of the total allocation.

Ginsberg observes: “Any further decrease in this market will not only impact on businesses like ours and our employees, but will also have significant implications for our supply chain which is also predominantly North East based.

It includes stone quarriers, concrete suppliers and builders’ merchants.

Douglas Kell CECA(NE) Director.

“It also includes sub-contractors such as road surfacers, white liners, waterproofers and drilling and saw cutting specialists. Judging by this lack of school refurbishment for the North East, must we assume all our schools are in pristine condition and require no such work to be done?”

Well, we’d like to hear the views of school heads and governors on that. Meanwhile the civils industry has a workforce urgently in need of rejuvenation, but without more government-driven investment there’s unlikely to be enough work to allow proper mentoring of apprentices, keen though the industry is to give them opportunities. That’s not a situation we wish to see sustained. n

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brick by brick recovery Incentives in regeneration and proposals to invigorate stalled housing schemes offer prospects to building firms, Catriona Lingwood reports

There are some glimmers of hope on the horizon for the construction industry in coming months, with regeneration incentives and proposals to invigorate stalled housing schemes starting to take shape.

The Government’s £400m housing strategy will help stimulate the market.

The Get Britain Building pot will enable housebuilders to restart construction on stalled sites that already have planning permission. This is estimated to deliver up to 16,000 new homes.

Affordable housing providers will share almost £1.8bn cash to develop residential properties. The first £1bn worth of contracts under the Affordable Homes Programme have been confirmed which, the Government has said, will put it back on track to deliver up to 170,000 new affordable homes across the country by 2015.

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This is good news on several levels. Not only could it result in tens of thousands of homes being built, but it also will help address the housing shortage and give a much needed lift to the fortunes of the construction industry.

While not solving the housing shortage in its entirety, these initiatives are a step in the right direction. They have the potential to play a critical role in helping breathe new life into the construction sector and trigger a building renaissance.

The region’s two local enterprise partnerships are helping to put pieces of the North East regeneration jigsaw in place. The £140m coming from the Regional Growth Fund and the advent of Enterprise Zones, which will provide financial incentives to help attract investment and trigger growth, will have a positive impact on the construction industry.

They will significantly affect investment, private sector growth and job creation and maximise the area’s business potential, including a creation of opportunities for the construction sector. This powerful combination of initiatives means that strong building blocks are in place to boost the economic wellbeing of our industry.

It is crucial that all connected with the sector, including developers, builders and housing associations, start planning ahead. They must ensure they are

ready and able to make the most of the opportunities arising from these government policies and regeneration plans and incentives.

It is also vital that employers cultivate new talent to ensure their companies are ready to capitalise on the emerging opportunities. Companies in the North East’s construction sector must take steps to harness the passion of young people by recruiting apprentices to ensure that they have a quality and skilled workforce to meet future demands.

The sector cannot afford to wait until business starts to pick up before embarking upon personnel development and planning for new contracts.

In the current volatile economic climate, it is hard to predict exactly how the construction industry will fare. As past experience has taught the sector, unexpected negative events can wipe out or curtail any positive steps forward.

However, it is important for companies to be ready to embrace new work as it starts to materialise, otherwise they risk missing out on contracts because they do not have the relevant skills or preparation in place for postrecession projects. n Catriona Lingwood is chief executive of Constructing Excellence in the North East.

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built environment company profile

Constructing Excellence in the North East Constructing Excellence aims to deliver improved industry performance resulting in a demonstrably better built environment Constructing Excellence is a unique organisation. It is the only organisation committed to industry improvement which spans the whole sector from buildings to infrastructure, across all parts of the supply chain, and all professional disciplines. These are difficult times for the industry, and business efficiency and productivity improvement through collaborative working have never been more important for our future prosperity.

We pride ourselves on our ability to provide, through our club membership, the necessary links, environments and learning tools to help the construction industry deliver improved industry performance resulting in a demonstrably better built environment.

Through our busy events calendar, we deliver a programme of continuous improvement that highlights best practice available within the industry and provides solutions to some of the issues facing our sector. Issues that matter, like sustainability, design, innovation and collaborative working.

Membership and Benefits The Constructing Excellence in the North East Club is a forum enabling people from across the construction industry to link up to learn and share knowledge and best practice.

Types of Membership Individual membership costs £150.00 + VAT per annum Corporate membership costs

£300.00 + VAT per annum Large Corporate membership costs £450.00 + VAT per annum One off joining fee £50 + VAT Benefits of Membership Membership also offers the following benefits: The opportunity to input and shape the agenda, ensuring that the issues cover key topics Free Club events Discounts at other events and training Access to a local network of continuous improvement through knowledge sharing and learning from other like-minded individuals and organisations The opportunity to hear about and

experience new toolkits and publications before the rest of the construction industry Access to an online service providing details of small and large mainly public sector opportunities on a daily basis. n

Constructing Excellence in the North East Allergate House Belmont Business Park Belmont County Durham DH1 1TW Tel: 0191 374 0233 Email: enquiries@cene.org.uk

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What a buiLd-uP frOM 2012 Despite the housing hiccup, one North East firm will start the new year working on the first of £61m worth of contracts. Brian Nicholls tells how It’s really encouraging to see central government invest in this way, placing confidence in and responsibility with regional organisations

Brian Manning, Chief Executive, Esh Group.

Despite a rundown in the nation’s housebuilding, Esh Group will start work in January on the first of £61m worth of contracts it has clinched.

The Bowburn, Durham, construction group is to build 541 affordable homes in the North East and Cumbria at government behest. The contract, first of its kind signed nationally, is one of only two private developer commitments ratified to date. It represents almost 6% of all funding

allocated to the North.

Chief executive Brian Manning says: “It is really encouraging to see central government invest in this way; placing confidence in and responsibility with regional organisations to get on and tackle issues and challenges within their own areas, and come up with solutions for their communities.”

Esh is getting a grant of £10.4m from the Homes & Communities Agency (HCA) under the Government’s

Affordable Homes Programme 201115 (AHP) to increase supply of new affordable homes in England.

Of the 541 builds, 164 will be in Cumbria, and 377 in Northumberland, Teesside and Durham. Most will be for “affordable” rental, but some will be for “affordable” ownership, supported housing and social rent.

The Cyrenians will get 44 near Durham for vulnerable people.

Work starts in January 2012 to finish by December 2014.

Esh Group, via its specialist subsidiary Dunelm Acorn Homes, led the bid in partnership and on behalf of several regional registered providers, so enabling the AHP funds to be accessed.

The partners include Two Castles Housing Association, Livin (Sedgefield Borough Homes), Vela (Housing Hartlepool), Endeavour Housing and DAMHA (Durham Aged Miners Housing Association).

David Halfacre, chairman of Esh Property Services, led the bid. n

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Final A

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Our roots are firmly in the region, with our group headquarters sited in County Durham just a few miles from our original home of Esh Winning. We also have a regional office in Northumberland.

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overview

Certain hot spots surface Enterprise Zones point the way to opportunity for new building and property development, Brian Nicholls suggests There’s no doubt where commercial development will be seen over the next few years, such is the pull of Enterprise Zone incentive.

The A19 corridor south of the enlarged Tyne Tunnel will attract low carbon activities and Tyne riverside the renewable energy. Teesside has 12 sites over five boroughs. These include Queen’s Meadow, Kirkleatham, South West Iron Masters, Belasis Hall Technology Park, Oaksway, North Shore, Darlington Central Park, St Hilda’s, four sites at Wilton, PD Ports’ South Bank Wharf, Port Estates in Hartlepool, and the new Energy and Technology Park in Billingham.

Blyth, Sunderland port and Prestige Business Park at Seaham also stand to gain.

A major American investment in Team Valley, Gateshead, is leading to speculative industrial development in the wake of the valley’s 75th anniversary. Teesside could benefit too. US property funder Highcross has pumped about £75m into the North East’s biggest industrial landlord, UK Land Estates. About £25m will be available for building programmes. UK Land’s estate throughout the North East is valued at £260m.

The enlarged Tyne Tunnel should stimulate the estate of that ilk at North Shields, and Boldon and Monkton on the south side should benefit.

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Pointers: The Baltic and Millennium Bridge are Gateshead landmarks beside a new business quarter.

Newcastle and Gateshead councils have a £190m ambition to make parts of their patch befitting of a top European city, built around a new generation of high-tech jobs. Both they and Sunderland want also to grow alongside some Top 200 North East firms. The towering new St James district of Newcastle already looks the part.

But Great Park on Newcastle’s northern boundary, where a high-tech suburb has been planned around the headquarters of Sage plc, stagnates.

No new businesses relevant to Sage there. The most evident outcome is the jingling of housebuilders’ pockets who

persuaded the council to sacrifice bits of green belt.

Further, flooding and complaints over homes there prompted a call for a public inquiry. A major transformation by contrast is the renaissance of Ouseburn Valley, cradle of Newcastle’s industrial revolution, and now emerging as a cultural quarter. Some £100m of public and private money has gone into this.

Stephenson Quarter in Newcastle, and Baltic Business Quarter in Gateshead are chasing inward investment.

Stephenson Quarter behind the Central Station can offer business strategic space. Science Central hopes to host

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businesses relevant to Newcastle’s centre of excellence in life sciences and health. Land on East Pilgrim Street down to Swan House roundabout will also be transformed.

At Gateshead a new town centre park and conference centre are planned.

Gateshead Highway will become a treelined boulevard. Gateshead Quays will be developed further.

Major speculation in Darlington surrounds its football stadium built amid hyper-enthusiasm by business extrovert George Reynolds. It has been put up for sale by Edward Symmons property firm following a breakdown of talks between owners and receivers.

The holding company owning the

stadium and surrounding land now went into receivership. The club may now return to its old site alongside Feethams cricket ground, where a proposal for housing is publicly opposed.

Speculatively built distribution centres are flourishing: at Wynyard Business Park, Drum Industrial Estate at Birtley and Cherry Blossom Way, Washington, and also Darlington.

These are complemented by bespoke warehousing for Tesco and Asda at Teesport, Argos at Faverdale, Darlington, and the Co-op at Birtley.

The major development at Whitley Bay is the long overdue rescue of the Dome building, iconic landmark of

the old Spanish City entertainments.

Scottish developer Robertson, working from Hebburn, is making the dome an umbrella for leisure again, including sky diving, climbing, skating, cinema, an art gallery and performing art space.

A 50 bed boutique hotel accompanies, a care home, town houses, apartments, a winter garden, a wellbeing centre and a recording studio. Newcastle brothers Meenu and Bunty Malhotra are investing £15m.

Many property investors want to see what follows from the Mary Portas recommendations on reviving town centres and high streets, and Chancellor George Osborne’s proposed reform of the controversial PFI (private finance

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built environment initiative). And amid the economy’s ongoing uncertainty serviced, flexiblelease offices should be popular.

NORTHUMBERLAND What a difference an arcade makes

Retail boost: The opening of Sanderson Arcade has boosted Morpeth’s retail offer.

Retail: Market towns in Northumberland are looking up.

Morpeth’s popularity has soared with the opening of the Sanderson Arcade.

Hexham’s prospects looked bleak when Robbs department store became history. But Tesco, Marks & Spencer and Waitrose all have a major presence there now. Bedlington’s 18th Century market place is getting a facelift, and Alnwick’s olde worlde charm continues to attract.

Ashington’s iconic Grade II listed Co-op building (circa 1924) now has most of its ground floor taken up by a supermarket. Upper floors are becoming available for further retail, office and possibly community use.

Prudhoe is to get a facelift amid controversy.

Offices: Property Design Matters has built a second phase to its Beaufront Business Park accommodating a number of businesses already at Hexham.

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TEESSIDE Biggest mall changes hands Retail: The Mall, Middlesbrough’s biggest shopping centre, has changed hands. A group led by London based F&C Reit acquired the 400,000sq ft property, plus a centre at Barnsley, for £108.1m in all. Stockton’s town centre is getting a multi-million pound revamp. This will marry up with Mews Developments’ £300m North Shore development backed by the Homes and Communities Agency.

High-tech: Property company Highcross acquired Belasis Business Park, the pioneer science park at Billingham, for £10m.

Industrial: Middlesbrough is reconsidering its Middlehaven master plan. Hartlepool Council wants Hartlepool Docks and Victoria Harbour to be a strategic employment site for the offshore and renewable energy sectors.

Offices: Housebuilder Yuill has relocated with Hartlepool to the fourfloor former Garlands call centre at Hartlepool Marina. It’s called Tranquillity House. Hopefully it will live up to the name now that the dust has settled on more than 1,000 job losses seen there earlier.

River Court at Riverside Park, Middlesbrough, is attracting tenants, its two-storey office units largely owned by North Yorkshire property firm Landteam.

At North Teesside Wynyard Park, where Samsung once stood, hosts global chemical giant Huntsman among three score of occupants. Wynyard Park in six years has attracted £300m of private investment. More than 1,300 people work there. Another 12,000 may do.

In Darlington, new business units at

overview

Morton Park Way range from 142sq m to 431sq m with rents from £180 a week.

COUNTY DURHAM Gate opens the way to progress

Office opportunity: Space at Spectrum will help County Durham to grow its service sector.

UK and overseas companies have invested in County Durham at a rate of 12 a year over 25 years, and there should be interest now in Durham Gate, a £100m investment expected to become a major regional business park at Spennymoor.

Carillion Developments and regional property business Arlington Real Estate plan on the 53 acres offices, retail, hotel and housing. Work began four years ago with the purchase of land where Black & Decker once manufactured.

It still has a European research and development centre there. Up to 2,000 people could work in this area badly hit earlier by rundowns and closures in consumer goods manufacturing.

Opportunity to develop exists at Durham City riverside, on the former ice rink site north of Milburngate Bridge.

Relocation of the National Savings and Investments Office there may give the market impetus.

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built environment

overview

There are plans to extend and regenerate Consett Business Park, partly with a 24 hour supermarket, an academy and a leisure centre.

Retail: The county’s biggest retail controversy rages over Durham County Council’s approval for further out-oftown development retailers in Bishop Auckland fear. Metric Properties intends to replace a former Focus DIY store with six large shops and parking at nearby St Helen’s, where a Tesco and a Sainsbury’s already operate. Ravenhill owner since 2006 of Newgate the main shopping centre in Bishop Auckland – withdrew in consequence a 100,000sq ft extension plan.

Marks & Spencer was believed to be

considering a migration to St Helen’s but has deferred any announcement.

A decision on any inquiry now rests with the Secretary of State. Gentoo meanwhile, which owns a North Bondgate site in the town centre, said it too would withdraw development plans.

Dalton Park is proving popular enough with out of town shoppers to extend at East Durham, apparently without harm to existing town centres nearby.

In Durham City, Milburngate Centre which with the Prince Bishops centre spearheads shopping options, is to provide larger units. The city’s park and ride scheme is reportedly working well, allowing freer pedestrian

movement in narrow streets.

Offices: Quality office space is scarce in Durham City. New building is seen, however, near County Hall at Aykley Heads. Helios also has office space at Belmont Business Park available.

Arndale over four years has been developing small individual offices on the former Philips electronics site.

Other compact space exists at St Stephen’s Court, Low Willington, where offices have been created on green design principles around a courtyard.

In North West Durham, Tanfield Lea Business Centre’s green credentials are aimed towards start-ups.

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built environment space is available, a slow moving balance of premises resulting from Seaham and Peterlee areas getting Enterprise Zone status to counter coalmine closures earlier.

Warehousing: Out of city retail warehousing is now better spread around Durham. The main provision was formerly on the north-west periphery, at CBRE Investors’ Arniston Retail Park. This, now extended, includes expansion of a Sainsbury’s supermarket. Major provision also exists at Durham Retail Park, whose occupiers include B&Q. High-tech: Two new buildings offering manufacturing area, clean room, and office space over two floors, have been coming up at Netpark. Incubators exist for eight start-ups at the Sedgefield site also.

County Durham Development Company has invested £6.5m to attract firms developing technologies and products in physical sciences such as printable electronics, micro-electronics, photonics and nanotechnology, and their application in energy, defence and medicine.

Industry: Hitachi’s £4.5bn train assembly operation, successfully negotiated for Amazon Park in Newton Aycliffe by Merchant Place Developments, will attract supply chain operations there also.

TYNE AND WEAR Science – what a bore High tech: Newcastle’s Science Central district, where the city council and Newcastle University picked up financial slack from One North East’s withdrawal, has funding to encourage small hightech businesses pending the ultimate hope of big inward investors inclined to

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life sciences. The university’s geothermal borehole there is making progress in seeking underground water hot enough to introduce sustainable heating.

Room for more: There’s space to grow at Cobalt in North Tyneside, Britain’s largest office park.

Offices: Due to open at Sunderland is one of the region’s most unusual builds, an enterprise centre assembled from 37 reconditioned shipping containers at Hendon. Some 60% of managed space was snapped up beforehand.

In central Newcastle, the St James commercial district has in Burgess House 8,500sq ft of offices letting at £5.50psf. Tyneside’s Quorum and Cobalt business parks, kick-started by Enterprise Zone incentives, continue to attract incomers, to the chagrin of parties with vested interests in central Newcastle. Cobalt, the UK’s largest office park with more than 10,000 people working there already (and 18,000 the target) is getting a second hotel and a second data centre.

Buccleuch, which recently sold the £5m Higham House to Newcastle City Council, is behind an £11m speculative office scheme for Clavering Place and Hanover Square in Stephenson’s Quarter. Meanwhile, where a school once stood, rare speculative office development is evident at Saltwell Business Park in Gateshead. Local entrepreneur Ian Baggett and his

overview

Adderstone Group is behind it.

On South Tyneside, BT is installing 280 staff in its newbuild block of 40,000sq ft overlooking the ferry terminal.

Retail: Monument Mall at the heart of Newcastle’s shopping is to get a big revamp following its £28m purchase from Kuwait-based St Martins Group by Hammersons, which also owns Manor Walks, Cramlington, and Cleveland Retail Park, Middlesbrough.

In Sunderland, developer Verum Victum plans a £10m transformation where a Jennings car dealership once stood at North Hylton Road: an 18,000sq ft supermarket with 12 retail and two office units. Gateshead has now lost its controversial multi-storey car park in the town centre that starred in the film Get Carter. In comes a £50m redevelopment led by Tesco’s expansion of existing presence and 40 small shops, plus accommodation for more than 1,000 students, public spaces and eating places. Oh, and a new – hopefully prettier car park.

A new supermarket and refurbished shopping centre is planned for Hebburn.

Leisure: In one of the region’s largest leisure investments of the year, the Columbus UK real estate fund bought Sunniside Leisure in Sunderland for £9.3m. Built in 2004 by Helios Properties and Bowery Developments, it has cinema screens, casinos, eating places. Railway Pension Nominees sold.

Industry: Washington’s aviation and defence profile is growing with the former 45 acre Dunlop site now accommodating BAE in relocation from Birtley, and Rolls-Royce moving across Sunderland from Pallion.

And Hellens Development plans a mixed use scheme of small business, retail and industrial units at Teal Farm. n

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Recruitment and training have assumed even more significance, postrecession, as firms seek greater value for money to hasten their upskilling.

So job applicants must expect a tougher ride at the interview stage. But at least there are opportunities for advancement in certain sectors, and opportunities for career changes too. The role of the apprentice is also back into the reckoning

bq-magazine.co.uk opinion

training & recruitment

Disney to L’Oreal, the common factor Stormy conditions blighting the job market have done little to stop North East recruiter Nigel Wright in its emergence as an international player, Mark Simpson tells Andrew Mernin Recruitment firm Nigel Wright has continued a rapid rise over 12 months launching two new European offices and greatly increasing the annual fees it generates.

The specialist in international recruitment with its headquarters in Newcastle now handles around 50% of its business through its offices on the Continent, having added Geneva and Amsterdam to its overseas network that includes sites in Paris, Stockholm and Copenhagen.

And the company, which has a branch in London too, also marked 2011 by climbing from 35th to 19th position in the UK recruiter Hot 100 league, based on independently researched data filtered by turnover and group employee numbers.

From a 99th ranking in 2008, the business has broken into the top 20 ahead of established names such as Harvey Nash, Hudson and Robert

Our new shareholders are very supportive of developing further the UK and international offering of Nigel Wright

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Walters. Meanwhile, Danish publication Økonomisk Ugebrev (Economics Weekly) in its latest research on search and selection companies operating in the Danish market, placed Nigel Wright in 10th position.

In 2011 the company registered yearon-year organic growth for the 10th successive year despite tough market conditions, which group executive director Mark Simpson believes shows the business has adapted well to the ever-changing dynamics of the recruitment industry.

He says: “While last year around 65%

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SURVEYING

BUILDING SERVICES ENGINEERING

BUILT ENVIRONMENT

of our fees came from the UK market, there is now a 50/50 split between UK and overseas.

“I would expect our growth in Europe to continue at pace in 2012 as we look to expand our presence in a number of new markets.”

In late 2010 Nigel Wright sold a share of its business to US private equity group Baird Capital Partners Europe.

This has enabled the firm to substantially develop its board-level experience through new hires Chris Gill (group FD) and Tim Trotter (nonexecutive director)

The group has traded in 25 countries across five continents and in 2011 won more assignments that at any stage during its history

“Our new shareholders are very supportive of developing further our UK and International offering, which includes growing the consultant base, opening new offices and developing new markets on an international scale,” Simpson says.

Current and past clients include Walt Disney, Lego, Danone, L’Oreal, Samsung and Coca-Cola. The group has traded in 25 countries across five continents and in 2011 registered three back-to-back quarters of record net fee income, winning more assignments than at any stage during its history. n

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training & recruitment

Five changes affecting careers Ahead of what promises to be another challenging year for businesses of all disciplines, Mark Simpson forecasts the next 12 months in the region’s job market Dynamics between recruitment consultancy, candidate and employer have shifted dramatically in the years following the global financial crisis and I expect change to continue in 2012.

Some important drivers include: 1. The economic climate in the UK and across the rest of Europe has created an environment in which there are less “average” performing businesses.

More often, companies are either quite successful or struggling to survive, with fewer and fewer companies existing in the space between.

2. Perhaps more so than ever, companies recruiting for middle and senior positions demand strong returns on the significant investment needed to attact the best candidates available.

3. Organisations are now generally leaner, more productive - there are now comparatively much higher expectations for the performance and capability of new starters at all levels, particularly in management and executive roles.

4. The recruitment transaction is now a longer process than before – not only because employers are keen to cling onto their best staff, but also because recruiting businesses are going further to ensure they get the most suitable and capable candidate.

5. The evolving social media and internet-based job board sectors mean

continuing to recruit key staff across all many candidates face an increasingly disciplines and sectors, and the North complex road map when they decide to East remains home to an abundance of seek new job opportunities. national success stories.

So the transition of an individual from This is particularly true across the broad one position to another is possibly energy sector, and in the software more difficult now than ever before. development sector where one of the Firms like Nigel Wright have to search biggest barriers to growth is a shortfall longer and harder for the right person. in skilled professional labour supply to Hiring companies increasingly expect meet high demand for engineering and and require a higher performance IT staff. To meet demand Nigel Wright from their recruitment partner. This, increasingly has to attract candidates like in many other sectors, provides an from across the UK into the North opportunity for some recruitment firms East region. to stand out.

The North East is also home to a Nigel Wright uses a “net promoter” substantial group of science-related system to identify if our customers businesses. These organisations often would recommend our service to others require niche technical skills to help – 90% of customers across the group them grow, and early in 2011 Nigel regularly say they would. We have Wright hired and developed a benefitted from this. More clients team focused on this. than ever now work with Over all, 2012 will us on a retained or be tough for exclusive basis employees and to help us employers solve their across all recruitment the major demands. industries.

However, But, as there are ever, there still excellent are always opportunities *NET PROMOTER opportunities for good SCORE for candidates people to find with the ability to jobs. Regional stand out. n organisations are

90%

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opinion

There’s room for optimism Many organisations in energy are doing well but their recruiting is impeded by a limited talent pool and skills shortages, reports Lorna Moran As we look forward to 2012, I believe there are reasons for optimism in the recruitment industry, despite the threat of a worsening economy continuing to loom large overhead.

The last quarter of 2011 was much more positive than the comparative period in 2010, and there were a number of hotspots which look likely to remain buoyant throughout the coming 12 months.

Energy-related industries, while beset by an impending skills shortage, continue to prop up the national job market, with opportunities in the oil and gas industry – and its supply chain – maintaining a strong presence in the North East, and further afield for those willing to relocate.

A lot of organisations in the energy space are doing particularly well and recruiting, although they are, sadly, recruiting from a limited talent pool because of skills shortages.

The automotive sector has also stayed relatively buoyant, both at Nissan’s Wearside plant and at smaller manufacturers and supply chain firms, and this trend looks set to continue well into 2012.

However, like the energy industry, it too is suffering from a shortage in skilled engineers and semi-skilled people.

This has been driven by the oil and gas boom, because a lot of workers have started contracting for energy

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employers out of the region in areas such as Aberdeen and Norway, rather than working permanently in the North East’s automotives industry.

The IT industry remained particularly strong in 2011 in contracting and permanent positions, as companies began to invest again in upgrading their technology platforms. This year I see no reason why this trend shouldn’t continue, although there may be more emphasis on IT candidates with niche technology experience, rather than those with broader skill sets.

In terms of volume recruitment, financial services saw a marked increase in confidence at the start of 2011, which ran throughout the year.

Employment in financial services-based contact and volume administration centres was up last year, although, given current economic forecasts, this may not hold up during the year ahead.

The executive recruitment space in 2011 was certainly more upbeat than in the previous year, bolstered by a lift in senior appointments in higher education and social housing - as well as in the private sector.

We start 2012 strongly across the board, and seeing more confidence from professional candidates than in previous years. Over the last couple of years many candidates were unwilling to take the risk of moving from their current employer in search of new horizons. But our experience at NRG, in recent weeks, is that they are now more confident when moving into new roles. Recruitment processes have changed too, with more stages and profiling taking place. Employers are becoming very cautious in choosing candidates, thinking more thoroughly through every decision before hiring, and are really pushing for the very best people. Challenges will face the recruitment industry throughout 2012 – not least the potential fallout from recent changes to the legal rights of temporary agency workers. However, with a number of key North East sectors showing recovery signs, I believe employers and candidates can look forward with confidence and optimism over the next 12 months. n Lorna Moran is chief executive of Northern Recruitment Group.

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training & recruitment

Patricia Wilkinson: I think all UK industry recognises the importance of apprenticeships.

aPPrEntiCEs – Just thE tiCkEt Besides offering individuals the chance to earn while they learn, apprenticeships have been outlined by the government as a key driver for economic recovery and private sector growth. Andrew Mernin finds out more from the region’s largest independent provider of apprenticeships While university fees soar, the jobs market stumbles and youth unemployment reaches new highs, the Government has placed much faith in

the power of apprenticeships to help the country towards recovery.

The popularity of apprenticeship schemes is growing at the fastest rate

in history with individuals seeking a direct path into a skilled career and business leaders are keen to add talented, enthusiastic team members

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On the job: Apprentice Jonathan Fyfe is one of 600 young North Easterners to have been trained by Newcastle-based British Engines since 1966. In 2012 the company, which runs BEL Valves amongst other subsidiaries, plans to recruit a further 20 apprenticeships in a move which will play its part in tackling the engineering skills gap which exists in the North East. to their workforces. Between August 2010 and July 2011, there were almost 450,000 new starters on apprenticeship schemes in the UK and 34,000 in the North East alone. And 2012 looks likely to chart further rapid growth in the popularity of such courses, with the launch, in late 2011, of a £250m government pot to boost workers’ skills. Business leaders can bid for cash to fund the creation and running of their own vocational training courses and the addition of apprentices to their own workforces.

The largest independent apprenticeships provider in the North East is the North East Chamber of Commerce (NECC) which saw a

30% rise in the number of employed apprentices in training within the organisation during 2011.

“I think all UK industry recognises the importance of apprenticeships and their role in developing a skilled, motivated, fit for purpose workforce,” says Patricia Wilkinson, director of training and skills development at the NECC. “With the Government increasing funding and creating incentives for companies, I can only see the North East profiting greatly.”

According to the NECC, the sector enjoying the fastest growth rate in apprenticeships is in the service industry, including areas such as retail, childcare and IT – whereas construction

overview

and engineering remain challenging areas during what is largely a positive time for apprenticeships.

Wilkinson also believes there are certain areas for improvement in the way apprenticeships are handled by the Government if they are to continue their rise.

She says: “The Government recognises the value of apprenticeships and their worth to the economy and is making inroads to make them even more accessible. By removing red tape, making education more accessible and flexible and covering a percentage of the cost of an apprenticeship this will not only help boost workforce skill levels but also help address the worrying rise in youth unemployment.

“While the future for apprenticeships appears mainly positive, one major obstacle remains to be overcome – the legislation to introduce loans for 24-year-olds and older who want to do a Level 3 apprenticeship from 2013.

Unfortunately, I can only see a decrease in the uptake of apprenticeships at Level 3 if the individual or employer must pick up the cost themselves.”

Despite challenges remaining, the outlook for apprenticeships in the North East looks bright, with the NECC alone on target to welcome around 1,070 new starters to apprenticeship courses in 2012.

The organisation is also likely to increase the average number of people in apprenticeships from 995 in 2011 to 1,300 in 2012.

“Given the evident success of apprenticeships, we will continue to lobby the Government to provide further incentives to businesses by cutting bureaucracy for small firms and encouraging more companies to embrace staff development via tax breaks,” Wilkinson says. n

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conferencing & hospitality In association with

People still need to get away, be it for business or pleasure. The North East is making headway in the lucrative markets of major conferencing, corporate hospitality and indeed holiday trade. There’s a wider range of city, town and rural hotels to choose from now, with a broad option on prices, and steadily rising standards – good venues for away days too

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conferencing & hospitality

sPOiLt fOr ChOiCE It’s no great surprise when you look around that Lonely Planet should have homed in on the North East, Sarah Stewart suggests Ten years ago, I don’t think NewcastleGateshead would have been called the “hipster capital of the northeast”. Fast forward to 2011 and this is exactly how we were described

by Lonely Planet, one of the world’s most influential travel publishers.

This accolade, we should celebrate.

We live in a fantastic place and I personally am very proud to promote the destination across the UK and internationally. I’m never short of

positive things to say; it’s an exciting, vibrant area and it’s a privilege to play a part in its ongoing success.

In some ways we are spoilt with the sheer number of fantastic events, festivals and attractions in Newcastle and Gateshead – it makes us stand out from other destinations across the UK. Throughout the year, NewcastleGateshead Initiative has continued to develop its key festivals, including Juice Festival, Bridges Festival,

EAT! NewcastleGateshead, Winter Festival and Chinese New Year. As always, we are proud to deliver a programme of exceptional, original events in North East England.

And 2011 has been a year of awards and accolades for NewcastleGateshead, from the Port of Tyne, which was named Best UK Port of Call, to Newcastle International Airport being named Best UK Airport with up to 6m passengers’ for a third consecutive year.

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conferencing & hospitality Newcastle was named Best Student City by MSN Travel for the third year in a row. Our mix of world-class universities, dramatic countryside, nightlife and low cost of living were noted by the judges. I wonder if Princess Eugenie would agree?

The Angel of the North has even appeared on a stamp and, along with Gateshead Millennium Bridge, was named in Lonely Planet’s 1,000 Ultimate Sights book, which contains 100 top 10 lists of the world’s most impressive natural and man-made sights.

One of my favourite buildings underwent a £4.9m refurbishment in 2011. The interior of Theatre Royal Newcastle has been restored to its original Matcham design and looks stunning. If you haven’t seen it yet, I’d urge you to go and take a look.

Of course I couldn’t talk about successes this year without mentioning Turner Prize 2011 at Baltic Centre for Contemporary Art. It was an enormous success with over 100,000 people visiting the exhibition in the first weeks after it opened in October. The vast media coverage and attention for the prize was not only fantastic for Baltic, but for the destination as a whole – Newcastle and Gateshead made headlines all around the world.

Successes are not limited to our attractions. Hotels too reported their highest average weekend occupancy in October 2011; nine out of every 10 hotel rooms in the “twin cities” were full - a remarkable achievement.

Martin Dresen, director of business development at Hilton Newcastle Gateshead delighted in telling me his hotel had celebrated its busiest month since opening in 2004.

A combination of the largest

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We have seen growth in the number of partners who support our aims and objectives medical conference ever hosted in NewcastleGateshead, half term holiday, Turner Prize 2011 and the Initiative’s very own Juice Festival helped achieve this milestone.

Nothing illustrates the strength of our visitor economy better than the volume of hotel development going on at the moment, demonstrating real confidence in the destination from a range of international brands. The varied choice of accommodation on offer, from four-star hotels to budget accommodation providers, means the destination is well equipped to cater for visitors of every need and budget.

The year 2011 saw the arrival of Euro Hostel, Sandman Signature, DoubleTree by Hilton at Newcastle International Airport and Jurys Inn NewcastleGateshead Quays. And 2012 sees bespoke budget hotel Sleeperz, Ramada Encore and Hotel Indigo (with a Marco Pierre White steakhouse bar and grill), all joining the growing list of quality hotel providers here. Despite all

opinion

these new hotel openings, we have not seen any of our established hotels close - unlike many other cities across the UK. Importantly also, the Initiative’s funding remains strong. Support from both the public and private sector is as good as ever. And VisitEngland’s success in its bid to the Regional Growth Fund means we, the destination management and marketing agency for NewcastleGateshead, will receive additional funds over the next three years, to deliver domestic marketing campaigns which will bring more profile, attract visitors and ultimately boost the local economy.

Partnership working remains a key to the Initiative’s success and has helped us support businesses through a difficult year.

As an organisation, we have seen growth in the number of partners who support our aims and objectives and recognise the importance of promoting and developing the place where they live and work.

We currently have 168 partners, most of whom attended our corporate events during 2011 including Bridges Festival, Beamish, NewcastleGateshead Art Fair, Turner Prize 2011 and the upcoming Enchanted Parks. Our partners are the life blood of the Initiative, demonstrating a commitment to the wider area as well as their own businesses.

Partnership with NewcastleGateshead Initiative is all about investing in the place. With our partners’ support, we will continue to grow the destination’s profile, delivering economic benefits for NewcastleGateshead and the wider North East region. n Sarah Stewart is chief executive of NewcastleGateshead Initiative.

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conferencing & hospitality

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overview

bq-magazine.co.uk overview

conferencing & hospitality

Every one a winner There’s no lack of award-winning or indeed offbeat venues suitable for corporate events and entertainment, Brian Nicholls says If you want to sample some of the finest North East hospitality you might enjoy booking in with North East tourism award winners.

This year they featured: Large hotels: Rockcliffe Hall and Golf Spa Resort, Hurworth (gold), Gisborough Hotel (silver) and Linden Hall Golf and Country Club, Morpeth (bronze). Outstanding small hotels were: Doxford Hall Hotel, Chathill (gold), Wynyard Hall Country House Hotel, Sedgefield (silver), and Seaham Hall Hotel and Serenity Spa (bronze).

The latter, established and nurtured to five star standard by North East entrepreneur Tom Maxfield before he sold it on, was put back on the market this year after the Von Essen Group, which owns 28 top class country house and castle hotels in all, plunged into administration with £250m of debts. A £12.5m price tag on Seaham Hall was slashed to £5m within six months.

Among hospitality and tourism businesses, the awards went to Sodaxo Prestige, caterer for Newcastle United, Event Durham (silver) and Great North Museum, Hancock, Newcastle (bronze). But if it’s a novel and no frills business lunch you want, there’s the Goats on the Roof cafe near Rothbury, which does in fact have its live goats thus placed.

Hotels in the region have suffered booking falls of up to 80% among

public sector customers, but luckily there has been a post-recession comeback in private sector business.

Holiday trade too has helped as many Britons staycationed this year.

Business and holiday tourism brings the North East in about £3.92bn a year and employs 65,000 people. These figures could rise if Tyneside gets a centre capable of hosting even bigger conferences than now. A site stands at Gateshead awaiting funding.

Northumberland: Firmly on the map Northumberland is one of England’s favourite holiday destinations now, along with Cornwall and the Peak District, a recent survey suggests.

Giles Ingram, chief executive of Northumberland Tourism, says energies many people in the industry have put into improving pubs, restaurants and town centres are bringing rewards, as are specific initiatives.

Budget hotel chain Travelodge hopes to open 37 Travelodges near 15 national parks, Northumberland’s being one.

Change of ownership is on the way at the 800-year-old Lord Crewe Arms in Blanchland and Warkworth House, a former coaching inn near Alnwick, following the appointment of Begbies Traynor as administrators of J&G Inns Ltd.

County Durham: Booking in success A pocket guide gets the credit for having persuaded many among the 18m visitors to the county annually to extend their stay. They spend an average of £56 a day, about £21 of it attributed to the guide’s influence.

About 92% of visitors extend their stay, bringing in £6m more, according to Melanie Sensicle, chief executive of Visit County Durham. “Great for tourists, great for business,” she says.

Hotels are being heavily promoted for conferences and other business meetings through a Meet in Durham campaign. Participants include Durham Marriott, Radisson Blu, and the Ramside, Hardwick, Headlam and Redworth Hall Hotels. Meanwhile Beamish Hall Country House Hotel, beside Beamish Open Air Museum, has had a multi-million pound restoration.

County Durham also has a tested and proven conference centre now: the Xcel Centre at Newton Aycliffe.

It holds up to 1,200 theatre style in its main auditorium, and also has conference rooms taking up to 50 delegates.

Event Durham, the conference and events team at Durham University, gives deals on events, meetings and catering at more than 10 venues. It also offers facilities within the historic university’s 10 colleges. It offers 1,500

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conferencing & hospitality en suite bedrooms and 3,000 standard bedrooms during summer in diverse locations between Newcastle and Stockton/Darlington.

The recently opened East Durham College at Peterlee provides for training days, conferences, board meetings, exhibitions and award presentations.

It can take up to 1,000 delegates, and also outdoor events at its Houghall campus in Durham.

Durham County Cricket Club’s Emirates venue, one of the country’s most picturesque cricket grounds, is well established as a conference, banqueting and dining venue, and now plans to have a 150 bedroom hotel on site, as well as providing more conference and events space.

Sunderland, Hartlepool: Into the top 10 The Best Western Roker Hotel Sunderland and the Best Western Grand Hotel Hartlepool have each gained an International Quality Award (IQA) taking them into the top 10 of the 279 Best Western hotels in the UK. The 43 bedroom Roker and 50 bedroom Grand are both owned by Sunderland-based Tavistock Leisure Ltd. They are praised for cleanliness, comfort, use of branding and guest satisfaction.

Sunderland’s Stadium of Light, home to the city football club, is now also on the concert circuit with Red Hot Chili Peppers, Bruce Springsteen and Coldplay due to appear next summer following the earlier success of a Take That stint. Revenue benefits stadium and city.

Also in Sunderland, the university through its Unispace business provides for meetings and events big and small.

It has five venues to draw on: the City and Sir Tom Cowie campuses,

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Newcastle’s Theatre Royal is a major draw for visitors to Tyneside. the award winning iconic building City Space, the Industry Centre near Sunderland Enterprise Park and the National Glass Centre.

Teesside, North Yorks: White knuckle thrills The Tees Barrage International White Water Centre, with its £4.6m makeover, is a flamboyant visitor attraction - a world-class Olympic facility at Stockton.

Unlike other white water courses, this one uses four Archimedes Screws to pump water around the course, instead of traditional electricity. Energy is also generated by water falling down the screws, which in turn powers a generator creating more electricity.

Clever stuff... it means this is the only sustainable pumped canoe and white water rafting course in the UK. The reconfigured 300m course has new eddies, slalom gate system and is twice the depth now. The new 95 metre short course (one of the steepest in the UK) has a drop of 3.7m from top to

overview

bottom - not for the faint hearted.

The entire amenity is serving as a pre-Olympic 2012 training camp.

“A brilliant asset,” Team GB slalom canoeist Laura Blakeman calls it. Besides canoeing and kayaking, there is white water rafting, power boating, raft building there - ideal for corporate days.

The AA has named The Feversham Arms Hotel and Verbena Spa at Helmsley as one of Britain’s top hotels.

It has been awarded a rare four red star rating for exceptional accommodation. Director Roddy Whiteford says a £5.5m investment in the business has paid off.

Chapters Hotel, a former coaching inn at Stokesley, has welcomed back to the restaurant and bistro, after a two year absence, the award winning husband and wife team, Victor and Victoria Vassallo.

Steven Bell, who recently bought Chapters, has lured them back from Malta. During previous spell there the couple brought the restaurant four awards.

Further north, Wynyard Hall Country House Hotel, between Stockton and Sedgefield, opens its spa on January 2.

Newcastle, Gateshead: The big bed bang The big explosion in hotel provision has been seen, as Sarah Stewart points out also, in the openings and planned launches in Newcastle and Gateshead. The Canadian owned Sandman Signature, a 170 bedroom four star, towers in Gallowgate, and Irish company Jury’s Inn now has 478 bedrooms on Tyneside, having complemented its Newcastle venue with one across the river at Gateshead Quays. Both are three star, with 274 bedrooms in Newcastle, and 204 in Gateshead.

bq-magazine.co.uk overview

conferencing & hospitality

The new 98 bedroom Sleeperz at Newcastle Central Station offers budget stays, and the former Imperial Hotel on Jesmond Road in Newcastle has reopened as a 116 bedroom Holiday Inn, all the better for a multi-million pound programme of investment following a fire. It can take conferences of up to 300 delegates.

The Double Tree by Hilton, one minute’s walk from the terminal, is the first internationally branded hotel at Newcastle Airport. This £30m investment is providing 179 rooms and conference facilities. Cairn Hotel Group is the owner.

Ramada Encore will be a three star of 202 bedrooms – a £17m investment

near the new Jury’s Inn on Gateshead Quays. This is for Welsh developer Quay Hotels, with Wyndham Hotels operating. Two four star hotels are planned for the Stephenson Quarter development behind Newcastle Central Station.

On fashionable Grey Street KAV Developments, a local firm belonging to the Malhotra family, has bought architecturally listed premises to turn into a hotel. And in Newcastle city centre the 1930s art deco building once headquarters to the Co-op has approval necessary to become a hotel, with shops, restaurants and a gym.

Opinion is still divided, though, on whether Newcastle and Gateshead

are being overstocked. The NewcastleGateshead Initiative obviously thinks not. Ken Miller, general manager of the Marriott Gosforth Park who jointly chairs the North East Hotels Association, is among those questioning the ongoing building. But Sleeperz had little difficulty getting funding, including a £4.3m loan from the Co-operative Bank.

Adrian Mattock, partner in licensed and leisure at property firm Sanderson Weatherall, believes there is room for all so far but says that, at the very least, existing brands and smaller names may need to sharpen their act and their product to compete with the irresistible pull of “new boys on the block”. n

Planning on holding a conference or corporate event?

Ramside Hall Hotel & Golf Club is one of the North East's foremost business and event venues.

With over 80 luxury bedrooms, 27-hole championship golf course, free parking on site, several bars, private dining, purpose built conference facilities for up to 600, Rib Room Steakhouse & Grill and an all day Carvery, we can cater for any event!

Call 0191 386 5282 for further information www.ramsidehallhotel.co.uk Carrville, Durham DH1 1TD

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conferencing & hospitality company profile

The Stadium of Light Sunderland’s Stadium of Light is so much more than a football stadium A place of worship for up to 49,000 faithful on a Saturday, since opening its doors in 1997 the home of Sunderland AFC has fast-established itself as one of the premier conference and events arenas in the region.

It has become a multi-function venue, hosting everything from University graduations, national conferences, outdoor funfairs to major music concerts.

And with over half a million concertgoers having enjoyed the biggest live music events ever held in the north east over the last three years, with the visits of Take That, Pink and Kings of Leon, the stadium has quickly become one of the major concert promoters preferred venues for large scale music tours.

Whether it’s business meetings, conferences, exhibitions, social gatherings, weddings, party nights or other celebrations, the stadium’s versatility makes it the perfect venue.

A range of modern, stylish suites can accommodate anything from 10 to 1,000 guests and the first-class food and beverage options, specially created by a team of top chefs, make the Stadium of Light a venue unrivalled anywhere in the North East. Events are tailored to suit the requirements of individuals and businesses and the dedicated and professional staff manage the day to make sure everything runs smoothly.

It is this perfect combination of superb facilities, first-class service and top flight football that make matchdays quite simply in a league of their own.

Boxes with awe-inspiring views of the

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The Stadium of Light is one of the premier conference and events venues in the North East pitch, stunning suites and relaxing bars overlooking the River Wear are all complemented by the finest cuisine and five-star service, making it the perfect environment to do business in.

The club is also racking up an impressive array of awards including Business Tourism Gold Award Winner at the North East England Tourism Awards, North East Business Awards, Learning, Training & Skills Award Winner, Durham & Wearside, British Chamber of Commerce Award for Excellence in People Development, Enjoy England National Tourism Business Tourism, Silver Award Winner

and Portfolio Awards Overall Winner, Training Award.

So if you haven’t visited the Stadium of Light yet, for business or pleasure, put it on your ‘to do’ list – you won’t be disappointed. n

For more information on what Sunderland’s Stadium of Light can do for you and your business please call 0871 911 1500 or e-mail conf&banq@safc.com

IT’S IT’SYOUR YOURBUSINESS BUSINESS MAX M IAMXIISMEI SYO EU YO R UBRUSINESS BUSINESS GOALS GOALS

Sunderland’s Sunderland’s award-winning award-winning Stadium Stadium of Light of Light is the is the perfect perfect venue venue for you for you andand youryour business. business.

WithWith a reputation a reputation as aas market a market leader leader in the in the hospitality hospitality industry, industry, there’s there’s flexible flexible space space ideal ideal for conferences, for conferences, exhibitions, exhibitions, meetings, meetings, andand training training exercises. exercises.

Top-class Top-class service, service, dedicated dedicated staffstaff andand fantastic fantastic facilities facilities – all– at allaat price a price you you cancan afford, afford, makes makes the the Stadium Stadium of Light of Light the the North North East’s East’s premier premier destination destination for business. for business.

There’s There’s alsoalso a one-stop a one-stop event event management management service service away away from from the the Stadium Stadium of of Light, Light, from from catering catering andand hospitality hospitality to facilities, to facilities, stewarding stewarding andand ticketing, ticketing, ensuring ensuring any any event event is a is success. a success.

AndAnd you you cancan enjoy enjoy a special a special matchday matchday experience experience for as forlittle as little as £50 as £50 for an for an individual individual game. game.

FindFind out out howhow Sunderland’s Sunderland’s Stadium Stadium of Light of Light cancan helphelp youyou andand youryour business: business:

0871 0871 911911 1500 1500 or email or email candb@safc.com candb@safc.com

bq-magazine.co.uk

events BUSINESS EVENTS BQ’s business events diary gives you lots of time to forward plan. If you wish to add your event to the list send it to b.g.nicholls@btinternet.com. The diary is updated daily online at www.bq-magazine.co.uk

JANUARY

25 Nepic pharmaceutical event, Newcastle Racecourse (12.30pm). www.nepic.co.uk

10 NECC Business Barometer Briefing, Durham

25 NECC Bridging the Gap, tbf

12 Entrepreneurs’ Forum, Chairman’s Dinner, Jesmond Dene Hotel, Newcastle (6.30). Speaker: John Urquart Stewart. Open to all. hazel@entrepreneursforum.net

26 Brewin Dolphin, Lenhoff and the Markets seminar, Newcastle Business School (noon). Contact: Emma Finlay, tel 0845 059 6326, emma.finlay@brewin.co.uk

17 NSCA Accounting Standards Update, Yorkshire Bank, Newcastle (7.45am) Alison Tait 0131 202 1252 or alison.tait@icaew.com

FEBRUARY

19 Service Network, Communications Workshop, Northern Stage, Newcastle (8.30am). 0191 244 4031. events@servicenetwork.co.uk 19 South Tyneside Manufacturers’ Forum: Apprenticeships, digital engineering. Bede’s World (noon).

John Wood 0191 427 2324 or john.wood@st-mf.co.uk 20 RICS annual North East Property Summit, Vision and Economic Growth, Centre for Life (8.30am). 0191 221 0359 or sdobermaqn@rics.org 25 ICAEW Northern Region/IoD North East, Director Development Breakfast Seminars: The Role of the Non-Executive, Ward Hadaway, Newcastle (7.30am). Alison Tait 0131 202 1252 or alison.tait@icaew.com

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4 30th presentation of Tom Corner North East Press Awards, National Glass Centre, Sunderland. 0191 265 6111 or Bernice@sortedpr.com 16 South Tyneside Manufacturers’ Forum, Manufacturers Advisory Service, RTC Business Consulting.

Bede’s World, (noon). John Wood 0191 427 2324 or john.wood@ st-mf.co.uk 21 NSCA, How to Create a Winning Practice, Jesmond Dene House Hotel, Newcastle (1.30pm). Alison Tait 0131 202 1252 or alison.tait@icaew.com 29 Robson Laidler Property Conference, Gosforth (5.45pm).

0191 281 8191 or sbowen@robson-laidler.co.uk

MARCH 2 to 4 NSCA, Redworth Three-Day Conference, Redworth Hall, Darlington. Marie Rice 0191 300 0532 or Marie.Rice@icaew.com 8 Achieve, Entrepreneurs Forum, International Women’s Day business conference. Speakers: Michelle Healy and Fiona Cruickshank. Hilton Gateshead (9.30am). Open mtg. hazel@entrepreneursforum.net 8 North East Business Awards, Teesside, Olympia Building, Teesside University 14 NSCA, Acting for Doctors Refresher and Update, Ramside Hall Hotel, Durham (9.30am). Marie Rice 0191 300 0532 or Marie.Rice@icaew.com 14 NSCA, Tax Aspects of Buying and Selling a Business, Ramside Hall Hotel, Durham (1.30pm).

Marie Rice 0191 300 0532 or Marie.Rice@icaew.com 15 North East Business Awards, Durham and Wearside, Stadium of Light, Sunderland 15 NSCA/Barclays Wealth, Business Confidence Monitor Breakfast, Jesmond Dene House Hotel, Newcastle (7.45am). Alison Tait 0131 202 1252 or alison.tait@icaew.com

bq-magazine.co.uk

events 15 NSCA, The Generation Game Planning for Old Age, Dickinson Dees, Newcastle (1.30pm).

Alison Tait 0131 202 1252 or alison.tait@icaew.com 16 Rosie Smith and Alistair Hewitt, Bank of England, on State of the Economy at South Tyneside Manufacturers’ Forum, Bede’s World, Jarrow (noon) 22 North East Business Awards, Tyneside and Northumberland, Gosforth Park Marriott Hotel 22 NSCA, Audit Design Tools for the Smaller Audit, Ramside Hall Hotel, Durham (9.30am). Marie Rice 0191 300 0532 or Marie.Rice@icaew.com 22 NSCA, Essential Tips for the Busy Practitioner, Ramside Hall Hotel, Durham (1.30pm). Marie Rice 0191 300 0532 or Marie.Rice@icaew.com 23 Energy and Environment North East, free event for SMEs interested in those sectors, Xcel Centre, Newton Aycliffe 27 NECC Exporting for Growth: Lord Green, tbf 28 ICAEW Northern Region/IoD North East, Director Development Breakfast Seminars: The Role of the Human Resource, Ward Hadaway, Newcastle (7.30am).

Alison Tait 0131 202 1252 or alison.tait@icaew.com 31 Any VAT returns covering periods ending after this day must be submitted online rather than in paper form, says HMRC

APRIL 3 NECC Business Barometer Briefing, Newcastle

3 NSCA, PAYE Update, Ramside Hall Hotel, Durham (9.30am). Marie Rice 0191 300 0532 or Marie.Rice@icaew.com 3 NSCA, HMRC – Penalties, Compliance & Agents, Ramside Hall Hotel, Durham (1.30pm). Marie Rice 0191 300 0532 or Marie.Rice@icaew.com 17 ICAEW Northern Region, Excel – Making the Most of Your Accounting Data. Ramside Hall Hotel, Durham (9.30am). Alison Tait 0131 202 1252 or alison.tait@icaew.com 17 ICAEW Northern Region, Excel – Make Excel even Better.

Ramside Hall Hotel, Durham (1.30pm). Alison Tait 0131 202 1252 or alison.tait@icaew.com 18 North East Expo 2012, Newcastle Racecourse.

19 NECC Human Resources Seminar, tbf 20 South Tyneside Manufacturers’ Forum, Four Guest Speakers, Bede’s World (noon). John Wood 0191 427 2324 or john.wood@st-mf.co.uk 27 RICS North East Renaissance Awards Dinner, Civic Centre, Newcastle. www.rics.org/northeast 26 North East Business Awards Final, Hardwick Hall, Sedgefield.

26 ICE North East Dinner and Robert Stephenson Awards, Gosforth Park Marriott Hotel 28 ICAEW Northern Region, New to Practice, Beamish Hall Hotel, Durham (9.30am). Alison Tait 0131 202 1252 or alison.tait@icaew.com

MAY 2 NSCA, Tax Update, Ramside Hall Hotel, Durham (9.30am).

Marie Rice 0191 300 0532 or Marie.Rice@icaew.com 2 NSCA, Accounting Update & Refresher, Ramside Hall Hotel, Durham (1.30pm). Marie Rice 0191 300 0532 of Marie.Rice@icaew.com 15 NSCA, SAR, Ramside Hall Hotel, Durham (1.30pm). Marie Rice 0191 300 0532 or Marie.Rice@icaew.com 16 NECC event, What’s in it for You? Darlington 18 South Tyneside Manufacturers’ Forum, Update on Port of Tyne and Bede’s World Heritage Bid, Bede’s World, Jarrow. John Wood 0191 427 2324 or john.wood@st-mf.co.uk 19 Winning against the Odds, The Entrepreneurs’ Forum Annual Business Conference (7.30am), Dinner and Awards (7pm). Hilton, Gateshead. hazel@entrepreneursforum.net.

22 NSCA, Capital Taxes Update & Planning, Ramside Hall Hotel, Durham (9.30am). Marie Rice 0191 300 0532 or Marie.Rice@icaew.com 22 NSCA, Essential Tax Updates for the Busy Practitioner, Ramside Hall Hotel, Durham (1.30pm).

Marie Rice 0191 300 0532 or Marie.Rice@icaew.com 29 to 31 Thinking Digital Conference, Sage, Gateshead. www.thinkingdigital.co.uk

JUNE 12 NECC agm

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events 14 NSCA, Anti Money Laundering Update, Ramside Hall Hotel, Durham (9.30am). Marie Rice 0191 300 0532 or Marie.Rice@icaew.com 14 NSCA, Related Party Essentials – a Practical guide for Accountants and Auditors. Ramside Hall Hotel, Durham (1.30pm). Marie Rice 0191 300 0532 or Marie.Rice@icaew.com 15 South Tyneside Manufacturers’ Forum, Making the Most of the R&D Tax Credit Scheme. Bede’s World (noon). John Wood 0191 427 2324 or john.wood@st-mf.co.uk 29 NECC Human Resources Seminar, Durham

JULY 3 NECC Business Barometer Briefing, Middlesbrough 12 NECC Exporters’ Awards, tbf 20 South Tyneside Manufacturers’ Forum, On New Factoring, Bede’s World, Jarrow (noon).

John Wood 0191 427 2324 or john.wood@st-mf.co.uk

AUGUST 1 NECC Social Media Workshop, tbf

SEPTEMBER 5 NSCA, Finance Act 2012, Ramside Hall Hotel, Durham (9.30am).

Marie Rice 0191 300 0532 or Marie.Rice@icaew.com

21 South Tyneside Manufacturers’ Forum, Spencer Dale, executive director and chief economist, Bank of England, at Customs House, South Shields (noon).

John Wood 0191 427 2324 or john.wood@st-mf.co.uk

OCTOBER 2 NECC Business Barometer Briefing, Middlesbrough 12 South Tyneside Manufacturers’ Forum, Tax Advantage of Life Policies, Bede’s World, Jarrow (noon).

John Wood 0191 427 2324 or john. wood@st-mf.co.uk 18 NSCA Annual Dinner, TBF, Civic Centre Newcastle. Marie Rice 0191 300 0532 or Marie.Rice@icaew.com 18 NECC Human Resources Seminar, Durham 19 Durham Oktoberfest, business to business, Xcel Centre, Newton Aycliffe (9.30am). www.oktoberfest.org.uk 31 NSCA, Tax Update Autumn, Ramside Hall Hotel, Durham (9.20am). Marie Rice 0191 300 0532 or Marie.Rice@icaew.com 31 NSCA, Accounting Update Autumn. Ramside Hall Hotel, Durham (1.30pm). Marie Rice 0191 300 0532 or Marie.Rice@icaew.com

NOVEMBER

6 NECC Policy Update, Newcastle

1 NECC Annual Dinner, tbf

13 NECC Human Resources Seminar, tbf

3 Entrepreneurs’ Forum business conference, Fortune Favours the Brave, Hilton Gateshead (7.30am). hazel@entrepreneursforum.net

21 NECC Teesside Annual Dinner

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7 NSCA, Rebecca Benneyworth, Ramside Hall Hotel, Durham (9.30am). Marie Rice 0191 300 0532 or Marie.Rice@icaew.com 7 NECC Social Media Workshop, tbf.

7 NSCA, VAT Update, Ramside Hall Hotel, Durham (1.30pm).

Marie Rice 0191 300 0532 or Marie.Rice@icaew.com 16 South Tyneside Manufacturers’ Forum, Better Business, Energy Procurement, and Make it in Great Britain Camp again. Bede’s World, Jarrow (noon). John Wood 0191 427 2324 or john.wood@st-mf.co.uk 22 NECC Policy Briefing, tbf 30 NECC Human Resources Seminar, tbf.

DECEMBER 6 NSCA, Tax Update for Accountants in Business, Ramside Hall Hotel, Durham (9.30am). Marie Rice 0191 300 0532 or Marie.Rice@icaew.com 6 NSCA, Martyn Ingles, Ramside Hall Hotel, Durham (1.30pm).

Marie Rice 0191 300 0532 or Marie.Rice@icaew.com Please check with contacts beforehand that arrangements have not changed. Events organisers are also asked to notify us at the above e-mail address of any changes or cancellations as soon as they are known.

Key: Acas = Advisory Conciliation and Arbitration Service. CIM = Chartered Institute of Marketing.

CECA (NE) = Civil Engineering Contractors Association (North-East). HMRC = Her Majesty’s Revenue and Customs. ICAEW = Institute of Chartered Accountants in England and Wales. ICE = Institution of Civil Engineers. NECC = North-East Chamber of Commerce. NSCA = Northern Society of Chartered Accountants. FSB = Federation of Small Business. tbf = to be finalised

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