Kirklees Business News 03.05.11

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KIRKLEES BUSINESS NEWS The business NEWS paper for Kirklees 3, May, 2011 INSIDE examiner.co.uk Full story - Page 2 Full story - Page 5 The most trusted news brand in the business NEIL SMITH SIMON KAYE Design firm forges ahead Full interview - Page 3 Chinese whispers Column - Page 4 An EXAMINER publication Warm spell A FIRM supplying fire fighting equipment is blazing a trail as the latest winner of a monthly business award. Holmfirth-based North Fire Ltd was judged the winner in the award run by Huddersfield law firm Eaton Smith in conjunction with the Mid Yorkshire Chamber of Commerce and Business Link Yorkshire. Time to be strong COMPANIES need a strong management structure in place to help them cope with any repercussions from the abolition of the default retirement age, says an HR expert. Weakening trend for consumer spending CONSUMER spending power is set to fall further, said a review of the UK economy today. Roger Bootle, of accountancy firm Deloitte in West Yorkshire, said the squeeze on household incomes was set to worsen. “Bank of England governor Mervyn King has called it the biggest squeeze on real pay since the 1920s,” said Mr Bootle. “And worse may be yet to come. But by the end of 2012, real incomes should be rising again. “A number of factors will maintain the downward pressure on household incomes in the near-term. For a start, pay growth is unlikely to catch up with inflation any time soon. “Inflation is heading towards – and possibly above – 5%. Real earnings are, therefore, all but certain to fall for the fourth successive year in a row – the first time that this has occurred since the 1870s. “An additional reason to be pessim- istic about the outlook for household incomes is the deepening fiscal squeeze. “Admittedly, there have recently been some not insignificant tax giveaways, including the rise in the personal income tax allowance. However, the net effect of this year’s direct tax changes will still be to reduce household incomes. “Lastly, the labour market outlook provides further cause for concern. I still doubt that the private sector can compensate for the cuts in public sector employment – which is already falling by 100,000 a year.” Mr Bootle forecast household dis- posable income falling by about 2% this year –or £780 per household. Valve firm sets up Norwegian base AN award-winning engineering firm in Huddersfield has launched a new business in Norway. Specialist valves company Severn Unival – named among the winners of the coveted Queen’s Award for Enterprise last month – has set up Severn Norway to better serve one of its key export markets. The company has joined forces with long-term business partner in the region J S Cock to launch Severn Norway in Bergen to provide expert- ise in the service, repair and retrofit of critical control and choke valves used in the Norwegian oil and gas industry. The new business, which begins operations on May 23, will benefit from the support of Severn Unival’s Performance Plus team, which boasts world-class skills in the field of valve repair and upgrades. Severn Unival, based at Milford Street in Huddersfield and with other sites at Gloucester and Aber- deen, has designed and supplied some of its most complex, preci- sion-engineered control valves for the Norwegian sector over the past 50 years. Director Colin Findlay said: “Spe- cification and engineering standards in Norway are extremely high and Norwegian offshore operations are particularly demanding. “Our presence on-the-ground will offer a distinct advantage to our core clients who have wanted to see our world class engineering intelligence put into action locally.” Severn Unival is trusted by some of the biggest names in the global energy markets to maintain opera- tions at their plant and protect against critical service valve failure. Clients include BP, Shell, Total, ExxonMobil, Saudi Aramco, Chev- ron and MAERSK. Severn Unival helped parent group The Severn Glocon Group plc clinch the Queen’s Award for inter- national trade – recognising its success in more than doubling export earnings in the past three years. Severn Glocon Group designs and makes specialist valves for the energy industry in markets, including the Middle East, the Far East, Europe, Canada, the USA and the North Sea. Severn Unival, which has 80 employees, previously won the category for international trade in the 2009 Examiner Business Awards. The company has operated in Huddersfield for more than 25 years. Among its successes last year, Severn Unival won a major valve order from Saudi Aramco, the state-owned oil company of Saudi Arabia and the largest oil corpor- ation in the world. It also won orders from Oman, Qatar and Norway. NORTHERN WAY: Colin Findlay, director of Severn Unival in Huddersfield www.chadwicklawrence.co.uk Huddersfield | Wakefield | Halifax | Leeds Solicitors for business in Yorkshire

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Weekly business news supplement from the Huddersfield Examiner

Transcript of Kirklees Business News 03.05.11

Page 1: Kirklees Business News 03.05.11

KIRKLEES BUSINESS NEWSThe business NEWSpaper for Kir k lees3, May, 2011

INSIDE

exam

iner

.co.

uk

● Full story - Page 2

● Full story - Page 5

Themosttrustednewsbrandin thebusiness

NEIL SMITH SIMON KAYEDesign firm forges ahead

Fu l l i n te r v i ew - Page 3Chinese whisper s

Co lumn - Page 4

An EXAMINER publication

WarmspellA FIRM supplying firefighting equipment isblazing a trail as thelatest winner of amonthly businessaward.Holmfirth-based NorthFire Ltd was judged thewinner in the award runby Huddersfield lawfirm Eaton Smith inconjunction with theMid Yorkshire Chamberof Commerce andBusiness LinkYorkshire.

Time tobe strongCOMPANIES need astrong managementstructure in place tohelp them cope withany repercussions fromthe abolition of thedefault retirement age,says an HR expert.

Weakening trend for consumer spendingCONSUMER spending power is setto fall further, said a review of the UKeconomy today.

Roger Bootle, of accountancy firmDeloitte in West Yorkshire, said thesqueeze on household incomes was setto worsen.

“Bank of England governorMervyn King has called it the biggestsqueeze on real pay since the 1920s,”said Mr Bootle. “And worse may be

yet to come. But by the end of 2012,real incomes should be rising again.

“A number of factors will maintainthe downward pressure on householdincomes in the near-term. For a start,pay growth is unlikely to catch up withinflation any time soon.

“Inflation is heading towards – andpossibly above – 5%. Real earningsare, therefore, all but certain to fall forthe fourth successive year in a row –

the first time that this has occurredsince the 1870s.

“An additional reason to be pessim-istic about the outlook for householdincomes is the deepening fiscalsqueeze.

“Admittedly, there have recentlybeen some not insignificant taxgiveaways, including the rise in thepersonal income tax allowance.However, the net effect of this year’s

direct tax changes will still be toreduce household incomes.

“Lastly, the labour market outlookprovides further cause for concern. Istill doubt that the private sector cancompensate for the cuts in publicsector employment – which is alreadyfalling by 100,000 a year.”

Mr Bootle forecast household dis-posable income falling by about 2%this year –or £780 per household.

Valve firm sets upNorwegian baseAN award-winning engineering firmin Huddersfield has launched a newbusiness in Norway.

Specialist valves company SevernUnival – named among the winnersof the coveted Queen’s Award forEnterprise last month – has set upSevern Norway to better serve one ofits key export markets.

The company has joined forceswith long-term business partner inthe region J S Cock to launch SevernNorway in Bergen to provide expert-ise in the service, repair and retrofitof critical control and choke valvesused in the Norwegian oil and gasindustry.

The new business, which beginsoperations on May 23, will benefitfrom the support of Severn Unival’sPerformance Plus team, whichboasts world-class skills in the fieldof valve repair and upgrades.

Severn Unival, based at MilfordStreet in Huddersfield and withother sites at Gloucester and Aber-

deen, has designed and suppliedsome of its most complex, preci-sion-engineered control valves forthe Norwegian sector over the past50 years.

Director Colin Findlay said: “Spe-cification and engineering standardsin Norway are extremely high andNorwegian offshore operations areparticularly demanding.

“Our presence on-the-ground willoffer a distinct advantage to our coreclients who have wanted to see ourworld class engineering intelligenceput into action locally.”

Severn Unival is trusted by someof the biggest names in the globalenergy markets to maintain opera-tions at their plant and protectagainst critical service valve failure.Clients include BP, Shell, Total,ExxonMobil, Saudi Aramco, Chev-ron and MAERSK.

Severn Unival helped parentgroup The Severn Glocon Group plcclinch the Queen’s Award for inter-

national trade – recognising itssuccess in more than doublingexport earnings in the past threeyears.

Severn Glocon Group designsand makes specialist valves for theenergy industry in markets,including the Middle East, theFar East, Europe, Canada, theUSA and the North Sea.

Severn Unival, which has 80employees, previously won thecategory for international trade inthe 2009 Examiner BusinessAwards.

The company has operated inHuddersfield for more than 25years.

Among its successes last year,Severn Unival won a major valveorder from Saudi Aramco, thestate-owned oil company of SaudiArabia and the largest oil corpor-ation in the world. It also wonorders from Oman, Qatar andNorway.

■ NORTHERN WAY: Colin Findlay, directorof Severn Unival in Huddersfield

www.chadwicklawrence.co.ukHuddersfield | Wakefield | Halifax | Leeds

Solicitors for business inYorkshire

Page 2: Kirklees Business News 03.05.11

KIRKLEES BUSINESS NEWS local Page 2

Rising costs causeconcern for SMEs

Firm is plugging the gap for power generatorA LEADING power generation experthas made a connection toHuddersfield-based business ITsupport specialist P2 TechnologiesLtd.

WB Power Services selectedLockwood-based P2 to update its oldIT system by implementing a fullchange of equipment – which P2completed with the minimumdowntime and without WB losing anyoperating hours.

As part of the upgrade, P2significantly improved the security ofthe system with the latest anti-virusand monitoring technology to ensuremaximum security.

P2 has also put into place remotephone assistance and will now provideIT support on an ongoing basis.

This will include liaising with thecompany’s internal managementprovider to ensure the smooth runningof the business.

Russ Gratton, WB sales director,said: “P2 initially provided us with anew server system.

“However, it was important that theinstallation would not disrupt business.P2 were very accommodating andcompleted the full installation out ofhours.”

Roger Pearson, director of P2Technologies, said: “We are delightedto be working with WB PowerServices. We have provided them with

a high performance platform whichhas increased the security of theirsystems and will increase efficiencywithin the business.

“As part of working with WB PowerServices, we will provide 24/7monitoring and regular strategyguidance.

“We look forward to developing thisrelationship and providing ongoingsupport”.

Company turns up the heat with award winA COMPANY supplying fire fightingequipment is blazing a trail as thelatest winner of a monthly businessaward.Holmfirth-based North Fire Ltd wasselected for the award run byHuddersfield law firm Eaton Smithin conjunction with the MidYorkshire Chamber of Commerceand Business Link Yorkshire.North Fire Ltd is the UK’s exclusivepartner with world-wide marketleader, Rosenbauer International forsupplying aerial fire trucks and firefighting equipment.The Holmfirth firm supplies firefighting equipment to 80% of theUK and Ireland’s fire brigades andhas recently become the officialsales agent for Rosenbauer’s aerialfire fighting vehicles.The firm was established in 2008 byOliver North, who started his careerin the army as a physical traininginstructor in the Royal Engineers.After seven successful years, he leftto pursue a career in business andused his brief stint as a firefighterin 2002 as a springboard to move

into the industry.In conjunction with Rosenbauer, thefirm has also developed newinnovative flood defenceequipment, which it supplies tolocal fire brigades.Mr North, said: “For a company inits relative infancy to receive suchpositive recognition in light of thelast two-and-a-half years’ hard workis not only flattering but enthusingto all our staff who have made sucha large effort and contribution inthis time.”He said: “ It gives all of us at NorthFire a nice morale boost in theprocess, so we can maintain ourobjective to be the UK’s biggest andmost efficient fire and rescueservice supplier in conjunction withour world class partners,Rosenbauer International.”The award is open to companies inCalderdale, Kirklees and Wakefield.Go to www.eatonsmith.co.uk, orcontact Ian Greenwood on 01484821389.

R&D atthe readyA COMPANY providingservices to theengineering sector isexpanding its researchand developmentactivities.

Service EngineeringCNC provides support forsmaller engineering firmsusing computernumerically controlledequipment.

Managing directorJohn Donnelly said thatwith the demise of manylarger engineeringcompanies, the smallerfirms were rapidlybecoming themainstream users ofadvanced CNCequipment in the country.

Mr Donnelly saidService Engineering,which has been based inClayton West for 15years, was expanding itsR&D programme withsupport from regionaldevelopment agencyYorkshire Forward toprovide improvedprecision diagnostics tobe used on the variousgenerations of FanucCNC controllers – themost widely used.

Fanuc parts sent to thefirm for fault diagnosiscan now benefit fromfaster and more accurateprocedures as a result ofrecent research carriedout by the company. In anumber of cases, thiscan eliminate the needfor an on-site visit.

Said Mr Donnelly:“These developmentsshould be of enormousbenefit to the many smalland medium-sizedenterprises whichpresently have no on-sitemaintenance personneland which are extremelyconscious of expensiverepair bills in an industrywhere margins are verytight.

“We are extremelygrateful to YorkshireForward for theassistance given to us forthis work and itsawareness of how it canbe of value to the manysmall engineering firmsin the region”.

■ WARM WELCOME: Chris Taylor (third right), of Eaton Smith, presents theaward to North Fire Ltd’s Oliver North (second right) and Rosalyn Raine (right)with (from left) Melissa Healy, of the Mid Yorkshire Chamber of Commerce; JaneStocks, of Jane Stocks Estate Agency; Pam Murrant and Mark Johnston, ofHandelsbanken

DrivingaheadA RECRUITMENTagency with offices inHuddersfield hasexpanded its presence inYorkshire.

Jark, which alreadyprovides industrial andconstruction industryjobs from premises inHigh Street, has nowopened a new drivingand HGV recruitmentsite in Wakefield.

Jark already has anindustrial recruitmentbase at Wakefield aswell as offices in Hull.

SMALL and medium-sized manufac-turers have reported the fastest growthin order volumes for 16 years today.

But employers’ organisation the CBIwarned that smaller firms were beingsqueezed for “intense” cost pressures.

The CBI’s latest quarterly SMETrends Survey revealed that volumes ofdomestic and export orders amongsmaller firms rose at the fastest ratesince April, 1995.

Of the 414 respondents, 39% repor-ted a rise in the volume of domesticorders in the three months to April and23% a fall, giving a balance of plus16%.

For export orders, 37% said volumesincreased and 14% said they declined,giving a balance of plus 23%.

Strong demand at home and abroad,coupled with stock rebuilding, helpedpush up output further.

A balance of plus 18% of firms saidproduction rose compared with plus

13% in the previous quarter.With demand and output rising, a

balance of plus 16% of firms increasedtheir headcount, the fastest rate sinceJanuary, 1995, when the balance stoodat plus 17%.

But alongside strong growth, pro-duction costs increased rapidly, weigh-ing on profit margins.

A balance of plus 53% of firms saidaverage unit costs rose – the highestsince October, 2008, when the balancestood at plus 53%.

That led to sharp rises in averagedomestic prices at plus 26% and exportprices at plus 31%, both in line withexpectations.

Domestic prices rose at the fastestrate since April, 1995, with a balance ofplus 32%.

Export prices saw the sharpest rate ofincrease since the survey began in Octo-ber, 1988.

Lucy Armstrong, who chairs the

CBI’s SME Council, said: “Smallermanufacturers are enjoying strongdemand for goods at home and abroad,underpinning robust growth in produc-tion.

“Headcount has increased for thethird consecutive quarter as firms try tokeep up with demand and output is

expected to rise again in the comingmonths.

“However, inflationary pressuresremain a dark cloud, with rising oil andcommodity prices pushing up the costof production and eating into profitmargins.

“Manufacturers have raised outputprices rapidly to cope and expect tocontinue doing so over the nextquarter.”

The survey said inflationary pres-sures showed no sign of easing in thecoming quarter, with firms expectingunit costs to increase sharply again –plus 52%.

Firms expect demand to continue tostrengthen in the next quarter, thoughat a slower rate.

While firms anticipate a similar risein output, growth in domestic andexport orders are set to ease – althoughremaining well above long-run averagerates.

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KIRKLEES BUSINESS NEWS profile Page 3KIRKLEES BUSINESS NEWS profile Page 3

NeilSmith

HENRYK ZIENTEK

Role: Managing directorAge: 52Family Divorced with twochildrenHolidays: Summer onthe unspoilt Atlantic coastof Spain and winter ski-ingin FranceCar: Jaguar XJRFirst job: Saturday boy ata greengrocers in Almond-bury – where my love forfood beganBest thing about job:The challenge of winningnew business and makingcreative judgementsWorst thing about job:Losing an account whenI’m absolutely convincedwe’ve done nothing todeserve it. That doesn’thappen very often!Business tip: Be excel-lent at what you do andnever compromise

Work: Design agencyproducing on-line andoff-line communicationsSite: LeptonEmployees: SixPhone: 01484 605103Web:[email protected]

BlacksmithDesignConsultancy

NEIL Smith is a man on amission.

The managing director ofLepton-based BlacksmithDesign has a heartfeltmessage to deliver tobusinesses acrossHuddersfield aboutmarketing, branding and theperceived intricacies of theinternet. Particularly theinternet and the “musthave” tools like Facebookand Twitter.

“There is still awidespreadmisunderstanding andmistrust around all mattersto do with the internet,” hesays. “There are so manypeople selling small parts ofthe whole package to theirclients that it becomes veryconfusing.

“Businesses have thisidea that they really have tohave a Facebook page or apresence on Twitter. Theyput Facebook and Twitterlogos on their sites withoutknowing what they aregoing to do with them.

“Having a website isabout having fresh, relevantcontent – which is wherewe come in. It isn’tnecessarily about socialnetworking.

“You have to make sureyour marketing strategy canmake good use of it. Youhave to understand thevalue of a marketing toolwhich people are using totalk about what they had forbreakfast!”

Misunderstandings aboutthe internet have also led tocompanies failing to makethe most of their websites –by neglecting the creativeelement which should beforemost among theirconcerns.

“There are still a lot ofcompanies doing webdevelopment work who arebasically programing and ITorientated,” says Neil.“They don’t have ourmarketing, branding anddesign sensibilities.

“Some people who buyweb design and webdevelopment are notsufficiently sophisticated intheir understanding of themarketing.

“Bad web design canstick out like a sore thumb.The place for webdevelopment and design totake place is within adesign company thatunderstands the fullmarketing picture and not ina web developmentcompany that doesn’t.”

Neil’s reason for puttingdesign above technicalitiesis straight forward. “Theuser of a website doesn’tsee how it is programmedor coded, but he does seethe inconsistencies,whether the site is userfriendly and whether it isloaded with pointless littlegimmicks.”

He says: “The crucialthing is that a company’sonline offering must sitinside its overall strategyand the organisation to helpdecide on that strategy is aproper marketingconsultancy.”

Neil and his team aremaking a concerted pitchfor new business in theHuddersfield area aftereffectively “relaunching” the

business following a moveto its impressive premises inLepton 18 months ago.

The building on WakefieldRoad was originally used ascouncil offices beforehousing in turn a clinic, aprint company and anaccountancy practice.

“We moved here becauseI thought we needed tore-invent ourselves andraise the profile of thebusiness,” says Neil. “Nowwe are trying to thread twoor three new projectstogether.

“One is based on theresurgence inmanufacturing. There is stillenough manufacturing in thetown and the wider regionfor us to have a good targetaudience.

“One of the thingsmanufacturers have nottaken seriously, generally, ismarketing and branding. Wewant to work withmanufacturing – which is asector not all designagencies have covered.

“The second strand is thatwe have developed ouronline offering to the pointwhere we can offer acompete in-house service.

We are very focused on localbusinesses because themarketplace is ‘open’ inHuddersfield. We think wecan recapture that market.”

Neil attended HuddersfieldNew College before gaininga business degree atHuddersfield Polytechnic –now the university.

He recalls: “I took afour-year sandwich courseand my year out in industrywas with Halifax BuildingSociety, which was one ofthe plum placements. I wasvery lucky to get that.

“They sent me to theiradvertising agency in Leedsand the second I walkedthrough the door I knew thatthis was what I wanted todo.”

Neil’s first job in theindustry was as a sales repfor Colgate Palmolive. “It wasquite a harsh environmentfor someone straight out ofcollege,” says Neil. “I lived ina hotel in Carlisle for the firstsix months covering mypatch and ended up coveringNorth Wales and Edinburghas well.

“I wrote off to everyadvertising agency in WestYorkshire offering to work fornothing to get a start. I gottwo offers – one from a firmin Sheffield offering me a jobas an account manager andone from a firm inManchester to be acopywriter because I hadcreative aspirations.

“I took the Sheffield onebecause it was closer to getto! It was about getting afoothold, but in the event Istayed there for five years.”

Says Neil: “Being indesign is a bit like being achef in a kitchen – alwaysfacing deadlines, alwaysunder pressure and lots ofexcitement with the potentialfor things to go wrong – buttremendous job satisfaction.”

Neil later took two “veryindulgent” years out to travelthe world and broaden hishorizons – visiting Greece,Egypt, Israel, Thailand andIndia as well as getting two

ski-ing seasons in France.Neil joined the massive

Graham Poulter adagency in Leeds within afew weeks of getting backto the UK, where hecapped two years asproduction group head.

Neil readily admits thata move to another designagency in Leeds in thelate 1990s was “amistake” – leaving himwith “only one thing to do,which was to branch outon my own”.

“I started out with a faxmachine and a mobilephone working fromhome, initially servingother design, print and PRcompanies. The businesshas grown from there.”

Blacksmith forgedahead almost from thestart, gaining blue-chipclients including BritishCoal, Yorkshire Water andRentokil Initial.

Says Neil: “I workedreally hard – very longhours and five-and-a-halfdays a week. The clientlist came relatively easilythrough contacts andpersistence and byputting together goodproposals.

“People were morereceptive to speaking topotential new suppliers inthose days There hasbeen a change over thepast 10 years in thatpeople genuinely resentany ‘cold’ approach. Nowbusiness is won throughnetworking andrecommendation.”

Blacksmith hascertainly built a strongreputation. It is the onlyHuddersfield agencyregistered with the DesignBusiness Association, abody demanding thehighest professionalstandards from itsmembers and placinggreat emphasis on themeasurable results thatcan be directlyattributable to the impactof design on a business.

“I think design is stillmisunderstood,” saysNeil. “People think aboutit in terms of aesthetics,but it is about helping abusiness to achieve astated objective. Designwon’t do that on its own,but it can make it a loteasier.”

Away from work, Neil’spassions include cooking– and his HarleyDavidson bike.

“I’m an enthusiasticcook,” he says, “I likewandering around thespecialist food shops inBirkby buying authenticingredients.

“I also love scaring theneighbourhood on myHarley Davidson. I havehad a number of bikes,but I got this one becauseI wanted a motorbike thatI couldn’t kill myself riding!

“I have a three-year-oldJaguar because I loveJaguar cars – but I usethe motorbike for work inthe summer and if I amgoing to see anopen-minded client on asunny day!”

■ FORGING AHEAD: NeilSmith, of Blacksmith DesignConsultancy in Lepton

Neilsharesgranddesign

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KIRKLEES BUSINESSlocal Page 4

Stepping out in safetyOUR risk management

consultants have sev-eral clients who operateengineering or vehicle ser-vice and repair workshopsand are often asked similarquestions regarding safetyfootwear.

Some employees are reluctantto wear footwear with toe pro-tection and some employers arereluctant to pay for it. It is wellworth clarifying the legal posi-tion with the following points.

All types of personal protect-ive equipment, including safetyfootwear, gloves, eye protection,hearing protection, cold and wetweather clothing etc. are coveredby the Personal ProtectiveEquipment at Work Regulations1992.

The employer should assessrisks to employees, visitors,members of the public etc. in allareas of the workplace, includ-ing the workshop.

The employer should assesswhich risks have not beenadequately controlled by othermeans and where items of per-sonal protective equipment arenecessary. Such risks could befrom falling heavy objects suchas vehicle batteries or crushinjuries from trolley jacks or

forklift truck wheels.Specific items of personal pro-

tective equipment, such as safetyshoes with toe protection,should be identified and thewearing of this PPE by all peopleexposed to these risks must beenforced.

The employer must providethese items of PPE free of chargeto employees. It is common prac-tice for employees to “top- up”to buy better footwear above thebasic version supplied by theemployer, provided the chosenitems still provide adequate pro-tection.

The employer must enforcethe wearing of PPE by peopleexposed to the uncontrolledrisks. We recommend regular,recorded checks in the work-place by supervisors. The regula-tions do not allow employees toopt out of this requirement bysigning some type of waiver.

The employer must train,inform and instruct employeeson why the PPE is required, howit should be worn and main-tained and what to do if defectsare noted. We recommend thisbasic training is given at induc-tion and repeated periodically,and that records are kept and thePPE requirement could even beincluded in workplace rules.

Employees must use the PPEas instructed and report defectsif they want to be exposed to therisks i.e. work in the workshop.

While these points focus onsafety footwear, they hold truefor all types of personal protect-ive equipment. Note that thereare other legal requirements notcovered by the above list.

Wilby Risk Management cancarry out detailed audits tocheck levels of conformity tolegal requirements and bestpractice standards.

RISKYBUSINESSMark Dalton

Mark Dalton is associate director at Wilby Ltd

Simon Kaye is divisional director at RensburgSheppards Investment Management

CITYTALKSimon Kaye

Transport taleof investmentA TRANSPORT company hasinvested in two new vehicles aftercompleting a major takeover.Birstall-based Bedfords Transporthas bought two Iveco EcoStralistractor units to run on behalf of itsrecent acquisition, LinQ Alliance.The new 44-tonne units – whichboast improved fuel consumption –were bought from Brighouse-basedtruck and van dealership NorthernCommercials and will carry LinQAlliance livery.Bedfords managing director SteffPfadenhauer said: “Investing in thenew Ecostralis units is another moveforward for Bedfords anddemonstrates our strongrelationship with NorthernCommercials.“We work hard to reduce fuelconsumption with our current fleet,but these new units hope to reduceit further still, continuing to aidBedfords to provide the reliableservice we are known for.”John McCune, of LinQ Alliance, said:“Having recently been acquired byBedfords, LinQ now has theopportunity to improve the successof the network.“With the addition of the twoEcostralis units, LinQ aims tocontinue its national distributionservice and hopes to reduce fuelcosts at the same time.”Roger Peel, dealer principle atNorthern Commercials, said: “TheEcostralis units will provide hugesavings for Bedfords and thepurchase of the units furtherenhances the relationship we havewith the company”.

Firms seek out‘green’ adviceRISING numbers of Kirklees firmsare seeking advice on savingmoney through “green” measures.In the run-up to Green Office Week– which runs from May 9 to 13 –Business Link Yorkshire reportedan increase in the number ofcompanies seeking advice onenergy reduction, producing lesswaste and making savings on rawmaterials.Karen Marsden, head of BusinessLink Yorkshire’s customerinformation centre, said, “Researchshows UK businesses could save atotal of £6.4bn a year byimplementing low-cost and no-costmeasures.“There are lots of simple ways thatbusinesses can make their officegreener. Simply switching lightingoff in empty rooms could save asmuch as 15% on lighting costs.”Business Link Yorkshire and itsenvironmental partner, CO2 Sense,are running free workshops withenvironmental themes tomorrow atVictoria House in Leeds, and onThursday, June 30, at SedumHouse in Doncaster. Visitwww.businesslinkyorkshire.co.uk

A proper Chinesepuzzle over pricesCHINA’S influence on the global eco-

nomy is being felt in numerous waysand this appears likely to continue for theforeseeable future.

One particularly positive effect over the past 20years was the dis-inflationary impact of exportsfrom China – and indeed from other emergingmarkets – on the developed world.

Chinese exports stayed competitively pricedthanks to productivity gains offsetting wagegrowth and also as a result of commodity pricesremaining low.

This in turn meant that major elements ofWestern consumer price inflation baskets – forexample clothing – saw prices fall in real andsometimes absolute terms.

This benign situation for the developed worldchanged in the middle of the last decade owing toheavy Chinese investment in infrastructure, alongwith the rapid development of a buoyant urbanconsumer society, which led to increased demandfor commodities and rising global commodityprices.

Following the brief hiatus of the financial crisis,the impact of China’s rapid economic growth onglobal commodity prices has resumed and was a

major contributor to the 30% increase in foodprices and 40% increase in the oil price over thepast year.

Wage inflation has also been growing rapidly(21% to 22% over the past six months) as workers’influence grows and as the shift from rural areas tocities has started to slow.

Inflation is now a major concern in China andthe extent of the problem is clouded by theapparent attempt by the authorities to manipulatethe reported data.

In January, the Chinese National Bureau ofStatistics changed the composition of its con-sumer price inflation basket, reducing the weight-ing of food (to about 30%) and increasing theweighting of housing.

While a revision in the food weighting is par-tially justified by the fact that rising incomes meanthat a lower proportion of consumption is takenup by necessities such as food, the precise timingof this revision is significant as it had the effect ofreducing reported inflation.

The increased weighting of housing could alsomake reported inflation appear lower, if theChinese authorities are successful in theirattempts to get rampant house price inflationdown.

Despite four interest rate rises since October,Chinese inflation remains elevated and the annualrate of consumer price inflation, according toofficial figures, rose to 5.4% in March.

We are of the opinion that the Chinese author-ities will do whatever it takes to get inflation undercontrol over the long term, as not to do so wouldlead to significant popular discontent that couldthreaten the government’s stability.

However, in the near term there remains scopefor upside inflation surprises, which would feedthrough to global inflation levels and encourageinterest rate tightening in developed countries.

Were China to allow the Yuan to appreciateagainst the American dollar, this would help toalleviate domestic Chinese inflationary pressure.In any eventuality it seems clear that China ismore likely to be a source of inflationary, ratherthen dis-inflationary, pressure on the West in thefuture.

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Page 5: Kirklees Business News 03.05.11

KIRKLEES BUSINESS NEWS local Page 5

Summit tacklessome big issuesKEY manufacturers came face-to-face withrepresentatives of smaller companies todebate local supply chains at the thirdKirklees Summit.

Items on the agenda of the Q&A-basedpanel session included the recentlyannounced Enterprise Zones and the role ofthe internet in modern manufacturing – lead-ing the panel to explore whether social mediaand smartphones have a place in the manu-facturing landscape.

Danny Matharu, of Summit organiser Mir-field-based Hillrich, said: “This was a uniqueopportunity for the audience to have their saypublicly on the potential for a locally-centredsupply chain.

“Key manufacturers mixed with their SMEcounterparts and discussed how to encourageeach to trade together.”

He said: “In a format unlike any otherbusiness gathering currently taking place,Kirklees Summit creates a live forum whereKirklees businesses can openly debate how tomake our district an even better place inwhich to run a business.

“It was fantastic to see social media beingspoken about by what is seen as a traditionalindustry in manufacturing.”

The panel consisted of Ian Parker, chiefexecutive of Liversedge-based Birkby’sPlastics; Gary Jones, chairman of Calderdaleand Kirklees Manufacturers Alliance; AdrianLythgo, chief executive of Kirklees Counciland Ian Brierley, chief executive of Turn-bridge-based JLB Group.

Audience member, Mick Fortune, man-aging director of Liversedge-based AS Fab-rications, came armed with a list of all thingshis company bought on a monthly basis – andgave his fellow attendees the opportunity tocontact him and supply him should they beable to.

Said Mr Lythgo: “Manufacturing is anintegral part of the Kirklees economy in

terms of well-paid jobs and high-grade skills,innovation and creativity, growing exportactivity in important markets, leading us outof the recession and all-round current andfuture wealth creation for the area.

“Kirklees Council is fully committed tohelping its manufacturers make the best oflocal supply chain opportunities.”

Kirklees Summit is sponsored by KirkleesCouncil, Fantastic Media, Ramsdens Solicit-ors, Kirklees Grantmakers’ Alliance andCKMA.

Sinead Sopala, marketing manager ofRamsdens, said: “We are delighted that somany businesses took the opportunity toattend the summit and I’m confident that

more will take the opportunity to talk directlyto each other following the event.

“The importance of events such as theBusiness Summit in providing a forum forlocal businesses to meet, exchange informa-tion and experience and also learn of assist-ance which may be appropriate for their owncircumstances, cannot be underestimated.”

Kirklees Business Summit is run quarterlythroughout the year and works on an “invita-tion only” basis.

It runs as a panel question and answersession and is held in the Fantastic MediaSuite at the Galpharm Stadium.

Go to www.kirklees-summit.co.uk

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No time to be shy and retiringA SOLID management structurecould help firms cope followingthe abolition of the default retire-ment age.

So says Jul ie Sykes, ofShepley-based human resourcesconsultancy JCS HR.

She said: “With the abolitionof the default retirement age inOctober, 2011, it will be automat-ically unfair and age discriminat-ory to retire someone simplybecause of their age – unless, ofcourse, you can objectivelydefend your decision, althoughthis will be extremely difficult todo in practice.

“In reality it may well be thatsome staff will still aspire to‘retire’ at or about age 65 andthey can simply resign as wouldany other employee.

“Where this isn’t the case, andemployees continue to work bey-ond what would have been theirnormal retirement date, employ-ers will be limited to the samesmall number of potentially fairreasons for dismissing them.

“The most commonly used ofthese are conduct, redundancyand capability. The first two ofthese are relatively well under-stood; it is the third, capabilitywhich is likely to be the mostcontentious.”

Julie said: “The fear amongemployers appears to be that,beyond a certain age, employeeperformance will deteriorate.

“This may or may not be thecase in individual circumstances.Where it does happen, it will haveto be managed as it would with

any employee. There is no longerthe option of tolerating decreas-ing performance because of theview that it isn’t worth the effortof sorting it out, if the person willbe retiring in a few months.

“It will have to be managed sothat the performance returns tothe necessary standard or theindividual is managed out of theorganisation.

“In view of this, a company’sperformance management andappraisal processes have neverbeen as important.”

Julie said processes did nothave to be overly complex inorder to meet the recommenda-tions of arbitration serviceACAS.

Said Julie: “Once a perform-ance management process is inplace, you will be able to moreeasily identify performanceissues and their causes and youwill be in a much better positionto address them”.

■ TALKING POINTS: Gary Jones (left), chairman of Calderdale and KirkleesManufacturing Alliance, with (from left) Kirklees Council chief executive Adrian Lythgo; IanParker, chief executive of Birkby's Plastics; and Ian Brierley, chief executive of JLB Group

■ BE PREPARED: Julie Sykes,of consultancy JCS HR

Shower powerA SHOWER tray firm has beenwell-served by a Rastrick supplier ofcompressed air equipment.Just Trays turned to Boge CompressorsLtd when the firm decided to upgrade itscompressed air system following a £1minvestment at its Leeds premises.

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Page 6: Kirklees Business News 03.05.11

KIRKLEES BUSINESS NEWSKIRKLEES BUSINESS NEWSKIRKLEES BUSINESS NEWSKIRKLEES BUSINESS NEWSKIRKLEES BUSINESS NEWSKIRKLEES BUSINESS NEWS property Page 6

Contrast in pricesdown on the farmPRICES for farm houses are“polarised” across Yorkshire,according to research byproperty consultants CarterJonas.During the first quarter of2011, the agency’s Harrogateand Huddersfield officesregistered average farmhouse price increases of 5.8%and 2.8% respectively.This is in contrast to York andLeeds, which recorded pricesdown by 3.4% and 4.3%.Catherine Penman, head ofresearch at Carter Jonas, saidthe national picture showed abroadly static market duringthe first quarter of 2011.The average price of a farmhouse across the agency’s 19offices outside of Londonrose by less than 1% in the 12months to the end of March.Carter Jonas spokesmanTony Wright (pictured), ofCarter Jonas’ Slaithwaiteoffice, said: “These statisticsmake very interesting readingwith Harrogate andHuddersfield reporting priceswell above the nationalaverage.“On the other hand, we must

bear in mind that this is asnapshot of one area of theresidential market,concentrating on the sale offarmhouses in particular andwe must not confuse the two.“Traditionally, the residentialmarket picks up in the springand this year is no different.”Said Mr Wright: “All theoffices are reporting goodactivity levels and propertiesthat are sensibly priced areachieving good prices andmoving relatively quickly.”

Legal worriesaffect marketPOTENTIAL landlords are beingput off entering the buy-to-let marketbecause of the perceived “legal mine-field” standing in their way, it isclaimed.

Now lettings specialist Belvoir istaking steps to clarify the legal pro-cess and encourage more people tobuy-and-let.

Srini Ram, of Belvoir’s John Wil-liam Street office in Huddersfield,said: “With lending volumes increas-ing by 22% during 2010, some 32% oflandlords increasing their rentalyields in the first quarter of 2011alone and the Council for MortgageLenders expecting strong rentaldemand to remain throughout 2011,the buy-to-let market is looking veryhealthy for new investors.

“Yet, despite the positive outlookmany potential landlords are stillbeing discouraged by the perceived‘legal minefield’ standing in theirway.

“We believe that many prospectivebuy-to-let investors are being put offby complex legislation and fear oflegal action.”

Mr Ram said legal issues that land-lords should expect to deal with in therental sector included tenancy agree-ments, tenancy deposit schemes, andmatters relating to repairs and main-tenance, power supplies and furnish-ings.

He said: “Most landlord-tenantlegal issues arise from ‘tenancy dis-agreements’. There are different typesof tenancies such as assured short-hold, assured and regulated or protec-ted – but most landlords favour anassured shorthold tenancy because itentitles them to take back the prop-erty after six months.

“All landlords operating an assuredshorthold tenancy have to sign up totenancy deposit schemes, whichobliges them to place tenant depositsin one of three schemes approved bythe government within 14 days ofreceipt. If not complied with, thecourts can force the deposit to betripled and repaid immediately to the

tenant or in extreme cases it may bedifficult to get possession of the prop-erty.

“As for the property itself, land-lords must maintain and repair it asrequired. This includes anything thataffects the structure and exterior aswell as the electrical, heating, hotwater and sanitary conditions.”

Landlords must ensure all furnish-ings comply with fire and safety regu-lations. Failure to comply can resultin imprisonment and/or a fine of upto £5,000.

An annual inspection by a GasSafe-registered engineer is also essen-

tial. The landlord must arrange thechecks and keep records of appliancetest dates as well as providing duplic-ates to existing and new tenantswithin 28 days of inspection. Failureto provide may result in imprison-ment and/or fines of up to £25,000.

All electrical appliances need to becertified safe when a tenancy begins,maintained throughout tenancy bycompetent persons and fit for pur-pose at all times.

Failure to comply may result inimprisonment and/or fines of up to£5,000.

In addition, all households are leg-ally required to obtain an EnergyPerformance Certificate.

Carried out by a certified inspector,it rates the energy performance of thebuilding allowing the prospective ten-ant an insight into utility costs. Itconcludes with advice to the landlordon how energy efficiency could beimproved. There is no legal require-ment to act on the informationprovided by an EPC, but doing so canimprove tenant relations and reducehousehold costs.

Said Mr Ram: “The buy-to-letmarket is likely to expand furtherduring 2011 as more competitiveproducts enter the market and lendersbegin to loosen their purse strings.

“So it’s important that when itdoes, landlords are aware of whatlegislation to expect and canapproach their purchase and sub-sequent letting in a positive man-ner.”

Colne Valley building among thelots in latest property auctionA MIXED commercial and residential propertyin the Colne Valley is among the lots beingauctioned at a forthcoming property sale.

The property (right) at Market Street in thecentre of Milnsbridge generates annual rentalincome of £23,400 and is being offered at aguide price of £200,000 to £220,000 in the saleto be held on May 12 in Leeds by Eddisons.

It is among 124 lots due to come under thehammer at the two-day sale.

Instructions have been received from LPAreceivers, local councils and Yorkshire Water.

The catalogue also includes a vacant formerBaptist Church, public houses, developmentand agricultural land, along with vacant and

tenanted retail and residential stock.Tony Webber, of Eddisons, said: “We have

assembled another excellent catalogue whichoffers a strong mix of residential andcommercial lots.

“With the majority of stock priced to sell, itshould appeal to buyers looking for viableinvestment opportunities.”

At its last sale, Eddisons reported that 120out of 145 lots – 83% – were sold, generatingproceeds exceeding £7.9m.

The next sale takes place on May 10 at thePremier Inn, Trafford Park, Manchester, and onMay 12 at Leeds United Football Club, EllandRoad, Leeds. Both sales start at 12.30pm.

■ LETTING GO: Srini Ram, ofBelvoir, says help is available

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Page 7: Kirklees Business News 03.05.11

Highly prominent 2 storeyshowroom premises superblylocated adjacent main A644Huddersfield Road. Potentiallysuitable for alternative uses (STP)

Two separate showrooms/tradewarehouse properties immediatelyadjacent to the exceptionally busyA62 Leeds Road with parking

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Modern industrial unitincorporating substantial 2 storeyinternally built offices. Goodonsite parking and convenientlylocated for J38 and J39 M1

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Page 8: Kirklees Business News 03.05.11

KIRKLEES BUSINESS NEWS Movers and shakers Page 8

Curtain upon seminarRETAIL experts are set to address a majorexhibition this month – in a bid to helpreverse a trend of declining sales in theinteriors industry.

Kate Hardcastle and Richard Gomersall,of business Greetland-basedtransformation company Insight withPassion, will address kitchen, bathroomand bedroom industry event KBB on May17 in London.

Kate and Richard will present theirseminar entitled Retail Theatre – BringingYour Shop Floor to Life to a group ofdelegates from across the world.

The seminar will stress the importanceof retailers delighting customers throughsounds, scents, feel and services that willultimately increase footfall and averagespend.

Said Richard: “Many retailers aresuffering the impact of tax increases and anegative economy.

“What we’ll be showing at KBB is that itdoesn’t cost a lot to transform yourbusiness to entice new customers, regaincustomer loyalty and increase propensityto buy.”

Richard said retailers should follow threetop tips – to be different, ”live” their brandand become a “destination” for shoppers.

“By standing out from the crowd, you aremore likely to capture people’s attentionand not blend into the background,” hesaid.

“Tell your story and ‘live the brand’ –you’ll be surprised that you will win thehearts and minds of your customers.

“Finally, tap into the physical, intellectualand emotional needs of your customers to‘capture’ them, encouraging them to shoplonger and spend more.”

It’s three at theback for Wilby!INSURANCE broker Wilby Ltd hasnotched up a hat-trick with HuddersfieldTown.

The firm’s logo will appear on the back ofTown’s home shirts for the third successiveseason during the 2011/12 campaign.

The distinctive red logo of the loc-ally-based independent insurance brokerand risk management specialist has becomea familiar part of the club’s famous blue andwhite striped home shirts.

Over the first two years of the relationshipbetween Town and Wilby, the pair havelaunched a partnership to bring local busi-nesses and supporters a great deal on theirinsurance – with a proportion of all incomegenerated going to the club’s academy.

Wilby, based in Halifax and establishedmore than 25 years ago, is one of the UK’stop 100 independent insurance brokers andlooks after the insurance arrangements of awide range of businesses both locally andacross the UK.

The firm also has an excellent reputationfor providing bespoke insurance solutions

for individuals with valuable possessions. Italso goes beyond insurance to offer a widerange of risk management and health andsafety services to help businesses cutthrough legislation and red tape.

Town commercial director Sean Jarvissaid: “Over the past two seasons, Wilby hasbecome an intrinsic part of HuddersfieldTown and we are all absolutely delightedthat its logo will be featuring on the back ofour home shirts for a third successive seasonduring the 2011/12 campaign.

“Our working relationship with RichardBlackburn and the rest of Wilby’s staffcontinues to go from strength to strength –this is much more than a usual sponsorshipdeal. They are a part of the club’s frameworknow.”

Wilby Ltd managing director RichardBlackburn said: “We are delighted to renewour partnership with Huddersfield Town.Over the past two years, we have developedan excellent relationship with the club andother partner sponsors and we hope tofurther this over the next 12 months.”

■ TREBLE TOP: Town commercialdirector Sean Jarvis (left) and businessdevelopment manager Mark Davies (right)with Richard Blackburn, of Wilby Ltd

Fundraising for heroes

THREE fundraisers from Cleckheaton-based accountancy firm Clough & Co areraising cash for the Help for Heroescharity.

Practice chairman Steven Gash and col-leagues Martin Clark and Howard Smithare taking part in a charity rally where theywill attempt to drive 1,206 miles fromHuddersfield to Germany’s world-famousNurburgring racetrack.

Team ITwiser – which is named afterClough & Co’s IT consultancy divisionheaded by Martin, aims to complete thechallenge in five days in a car that cost lessthan £500.

Said Steven: “It’s a Top Gear-style chal-lenge really as last year 20 cars set off andonly two made it back! We’ve bought a1998 Audi A4 and will be relying on ourown mechanical and endurance skills to

complete the journey.“Our goal is to make it to The

Nurburgring, complete a few laps of thetrack and get back to Huddersfield in onepiece, whilst hopefully raising lots ofmoney for a great cause.”

They embarked on the journey lastThursday and hope to return to WestYorkshire in two days’ time.

Meanwhile, Katie Fairbrother, a cashierin the firm’s insolvency department, israising cash with a mile-long swim acrossLake Windermere on June 18.

She said: “It’s the first time I have doneanything like this, but I have family in theforces and wanted to raise money for Helpfor Heroes so decided to sign up to theGreat North Swim.”

Help for Heroes was launched in 2007 tohelp wounded servicemen and women.

■ RACE TEAM: Clough & Co chairman Steven Gash (right) with colleagues MartinClark (left) and Howard Smith set for their fundraising dash to Germany

Lisa Blackburn

Simon BlythEstate AgentsESTATE agency Simon Blyth haswelcomed back a former employee.

Lisa Blackburn, pictured with group salesdirector Martin Thornton, has beenappointed senior sales negotiator at thefirm’s flagship Holmfirth office.

She has returned to Simon Blyth after afive-year absence during which she was adirector of another estate agency.

Ms Blackburn, who lives at Crosland Hill,has 11 years experience in the propertysector and is well-versed in theHuddersfield housing market.

Mr Thornton, who lives at Birchencliffe,takes responsibility for Simon Blyth’s sitesat Huddersfield, Holmfirth, Kirkburton,Penistone, Wakefield and Barnsley, where italso has a lettings office.

Mr Thornton, who joined Simon Blythabout a year ago, has 20 years’ experiencein the industry, including 10 years in theHuddersfield area, having previouslyworked for a number of agenciesthroughout West Yorkshire.

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