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North West’s critical industries warn of £1billion energy bill amid price rises

Sam Whitear
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Industries in the North West of England say, without intervention, rising energy prices could hit British manufacturing and lead to closures or reductions in production of critical services and products.

Just four of the members of Net Zero North West (NZNW) are facing a collective energy bill of up to £1 billion in 2022 – a projected increase of around 65% since 2020. These increasing costs could ultimately be passed down to the consumer leading to prices increasing in a wide range of sectors including food & drink products, water treatment, medical supplies, automotive and construction to name a few.

The North West boasts the largest concentration of advanced manufacturing and chemical production in the UK and is home to a cluster of energy-intensive users. These businesses are trying to pass through the unprecedented hike in energy prices while also addressing the challenges of decarbonisation.

NZNW is calling for an integrated, long-term and resilient UK Energy Strategy to protect against pressures such as increasing energy prices and enable the transition to net zero. The group has set out a short-term transitional energy strategy up to 2030 to provide affordable electricity and natural gas to include:

· Affordable electricity to support rollout of electric vehicles
· Increased levels of renewable energy
· Market support to support hydrogen production to decarbonise heat and transport
· Local energy networks to help manage costs
· Affordable natural gas for industry as a feedstock
· Small modular nuclear reactors to generate electricity and low carbon hydrogen
· Carbon pricing to be introduced which protects low carbon domestic industries from competition with high emission imports.

Carl Ennis, Chairman of Net Zero North West and CEO, Siemens GB&I said:

“Both homes and businesses are feeling the squeeze of soaring energy prices. Rocketing prices hit energy-intensive industries hard, with many manufacturing critical products on which the UK relies. Just Net Zero North West members alone are facing a projected £1 billion energy bill, a staggering amount when you also consider inflation is also impacting costs across the board for businesses too.

“We need a net zero strategy that addresses the pressing need to support industries to decarbonise as well as secure our energy supplies. The North West has all the ingredients to underpin a long term, resilient net zero energy system in the UK with a diverse mix of wind, biomass, tidal, solar, nuclear and hydrogen. We have highly skilled industries that are ready to invest in the technologies to drive low carbon products and growth.”

NZNW’s newly-published paper ‘Energy Prices and System Resilience’ [download here] details how increased worldwide energy and gas demand has pushed up prices across the globe, with wholesale gas prices increasing by 250% since the start of 2021. It also highlights why the UK is particularly vulnerable to the pressures, being still heavily reliant on gas and the UK’s energy-intensive industries facing some of the highest electricity prices in the EU due to complex on-costs.

Adrian Curry, is Managing Director of Encirc, a leader in glass container manufacturing with a plant in Cheshire, producing around four billion glass bottles and other containers a year from its bases in the UK are Ireland. He said:

“With a concentration of energy intensive industries in the North West we’re particularly susceptible to price increases, but we can’t let this derail the journey to net zero. Competitive energy is crucial to decarbonisation and we need to ensure the future of our vital industries with a transitional energy strategy that provides affordable electricity and natural gas.

“We need to remain competitive internationally otherwise we risk offshoring the problem with our industries shutting down and production happening overseas. We need a clear trajectory for business which encourages investment rather than disproportionally impacting certain industries. In the longer term, the UK’s energy strategy needs to take into account the needs of manufacturing regions such as the North-West to support regional clean growth and the levelling up agenda.”

Net Zero North West has previously launched a landmark Economic Investment Prospectus which was authored by top analysts at Siemens and launched last summer at a special event with Business Secretary Kwasi Kwarteng, setting out 18 investment cases for a pipeline of long-term and shovel ready green projects.

Freehold office investment sold for £1M

Sam Whitear
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The freehold office investment at 6 St George’s Court, Altrincham Business Park, Broadheath, Altrincham has been sold by the previous owner occupier, Spatial Office Environments, for £1M to a private pension fund.

Daniel Lee, managing director, Regional Property Solutions, who sold the property on behalf of the vendor, said: “This was an off market sale which realised the highest capital value of £200 per sq ft that has been achieved in Broadheath in the last 10 years and reflects the quality of the building and its interior.”

The high spec office building was bought in a dilapidated state and then extensively refurbished as a showcase of Spatial Environments fit out capabilities. It provides 5,000 sq ft of premium office space on the ground and first floor.

Phil Simmonds, managing director, Spatial Environments, said: “Whilst a home to us for a only a few years, this out of blue opportunity has allowed us to push forward with our expansion plans with a new building and an all new workplace showcasing our prowess once again”.

Nick Davies, partner, Axis Property Consultancy, who acted for the purchasers, said: “The property will be occupied by 3mc, a leading mortgage company, who are delighted to be taking this excellent office building and expanding their presence”.

Six & Flow drives launch of first ever Global HubSpot Alliance initiative

Sam Whitear
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Six & Flow, the Manchester-headquartered growth agency, has teamed up with a network of agencies around the world to launch (31st January 2022) the first ever Global HubSpot Alliance which aims to help organisations that want to scale their operations globally, as well as multi-nationals and those looking to expand into new regions.

HubSpot is a leading CRM platform that is used by millions of businesses around the world to drive their marketing, sales and customer service strategies.

The new alliance, which includes Six & Flow, Webs, Hype & Dexter, InboundCycle and Media Junction, has been created to offer clients a carefully curated agency network that can work together to tailor – and then deliver – multi-territory, integrated and transformational HubSpot rollouts and marketing campaigns all under the overarching mantra of: Local hands, global reach.

Each elite partner agency will focus on specific territories ensuring first-class market knowledge and insight is delivered whilst sharing ideas, messaging and strategies to ensure real campaign cohesion and results are achieved.

Six & Flow will be focussing on Ireland, the UK and Canada; Webs on the Netherlands and Germany; Hype & Dexter on New Zealand and Australia; InboundCycle on Spain, Chile, Mexico, Brazil and France; and Media Junction on the USA.

This geographical spread will provide clients with access to 15 different countries from 250+ certified HubSpot professionals.

Rich Wood, managing director of Six & Flow, said: “The new Global HubSpot Alliance has been a long-time in the making and is a step change in how agencies collaborate. The integrated approach will be all about leading our clients’ marketing strategies, building and executing their sales strategies and assisting with HubSpot integrations and implementations.

Rich added: “A lot of thought and planning has gone into this alliance and we believe that we have created something truly unique. It is made up some of the world’s leading growth experts who, for the first time, will work together on an international basis. This level of integrated, multi-territorial collaboration is a first and is a real opportunity for those companies wanting to achieve global scale and growth as we emerge from the pandemic.”

How Urmston’s TechDisinfect helps offices to clean up their act

Sam Whitear
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Think net zero won’t impact you anytime soon?

Sam Whitear
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Kevin Lambert explains why net zero greenhouse gas emissions should be on the radar for SMEs as well as large organisations, and how the Hub’s Journey to Net Zero programme can help.

The UK has committed to reaching net zero emissions by 2050. It would be easy to think this is something only large organisations need to worry about in the near term. With the date so far away and there being so many larger companies – with larger carbon footprints – to focus on, how could the responsibility to act now land on the doorstep of smaller businesses?

This isn’t tomorrow’s problem

2050 isn’t as far away as it first appears. To keep ourselves on track, we actually need to be over three quarters of the way there by 2035. It will require achieving the same reduction in emissions that we managed over the last three decades again, but this time in half the timeframe. The North West region aims to move even faster, reaching net zero carbon by 2040 at the latest, and as soon as 2038 in Greater Manchester. The heavy lifting will occur in the 2020s, not the distant future.

The screw is already turning on the largest emitters. Hundreds of the world’s largest companies have now set their own net zero targets – often in advance of 2050 – and are looking closely at where their biggest sources of emissions are.

Attention is turning to suppliers

This is where SMEs come in, because it is in the supply chain where the majority of a large organisation’s carbon footprint lies. As businesses begin to adopt and act on their net zero goals, scrutiny on suppliers will increase.

Many of the biggest companies, from HP to Heineken, have already committed to net zero across their supply chains before 2050. Recent research by Standard Chartered found that two thirds of multinationals are prioritising their supply chain emissions in their net zero transition, and almost four in five say they plan to remove suppliers that “endanger” their carbon reduction plan by 2025.

[How to be a ‘net zero ready’ supplier]

Procurement is changing

The public sector is also looking at its supply chains. From September this year, companies will not be able to bid for large government contracts unless they have committed to net zero and published their own carbon reduction plan. Procurement teams throughout the public sector have also been directed to take account of a bidder’s approach to climate change and net zero in any tender, regardless of the value.

This trend is both a huge risk and a huge opportunity for SMEs. Those that are not adequately prepared to answer questions from customers about their environmental impact or carbon footprint, risk losing out on business. Those that can demonstrate strong green credentials and have their own strategy for net zero have a massive advantage over the laggards.

[A beginners guide to carbon footprinting]

It’s a win-win

Improving competitiveness in the market is far from the only driver for SMEs to reduce their carbon footprint. SMEs are responsible for almost half of the UK’s business-related emissions, a sizeable portion of which can be eliminated through low or no cost energy and resource efficiency measures that benefit the bottom line, increase resilience, and improve productivity.

Improving environmental sustainability is also something that all stakeholders increasingly expect to see, including employees – especially younger generations, who often value this in their employer more than their remuneration package.

Knowing where to start

The trouble is, most SMEs don’t yet have the resources or capability to capitalise on these opportunities. For a small organisation short on time, it can be hard to even know where to start with such a huge topic.

That’s why we have launched Journey to Net Zero – a fully-funded online programme exclusively for SMEs in Greater Manchester who are at that early stage of getting on the path to net zero.

The programme is delivered via a mix of group workshops and one-to-one advice by our Resource Efficiency team, who collectively have over 150 years’ experiencing supporting SMEs to become cleaner, greener and more profitable.

There is no better time than now to join the transition and put your own strategy in place.

[Start your Journey to Net Zero here]

This blog was first published by Insider North West.

The new technologies you actually need to know about…

Sam Whitear
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Not a week goes by without a headline boldly claiming the invention or discovery of a new technology that will ‘change everything’. With so many new advancements being featured on “Top Ten Technologies You Must Know About” lists, it can be challenging to know what should be of interest and of use to your business.

Alongside this, some technologies have been up-and-coming for so long that it can be confusing to know if they’re ever going to arrive and deliver on all the promises made. Whilst other articles detail near-to-market and recently commercialised technologies like Artificial Intelligence, 5G and the Internet of Things, this blog will talk through three emerging technologies you should expect to arrive over the next 15 years.

We’ll look at what they are, why you should care, and what they could potentially do for your business…

0-5 years: Robotic Process Automation

Undoubtedly, a good proportion of people have heard about robotics, but it is likely fewer people are aware of Robotic Process Automation or “RPA”.

It may sound like the rise of the machines, but RPA doesn’t actually involve physical robots at all. Instead, RPA is a type of business process automation, where software “robots” undertake tasks that would normally include some type of human-computer interaction. The difference is that through RPA, these tasks can be undertaken quicker, at much higher volumes and without that human interaction.

By combining basic learning by the software robots, a logical or structured approach, and repetitive tasks, RPA can remove the need for a human to undertake these actions. This in turn, can free up human resources to be better applied elsewhere, whilst the mundane tasks are completed more efficiently when required.

So, how and where can this be applied, we hear you ask?

Typically, tasks must be structured, have rules and must take a step-by-step approach. Clear outputs are also required i.e., moving a file or piece of information from one specific location to another. Currently, RPA is being applied to several sectors, including Finance and Retail, which typically have high volumes of information being processed at any time.

RPA is available now, and uptake is increasing across industries as organisations look to improve productivity and re-orient human capability to tasks that require greater intelligence.

5-10 years: Quantum Computing

Whilst it may sound like science fiction, quantum computing is real and it’s on its way.

For details on how quantum computers work ‘under the hood’, IBM have provided a guide to their approach, but essentially it allows for the processing of information in a way and at a rate that isn’t currently achievable with our most powerful computers, known as supercomputers.

This is because supercomputers today can only consider things in ones and zeros, or more simply: a state of ‘on’ or ‘off’. A quantum computer can consider problems in a state between ones and zeros, using qubits, allowing a computer of this type to explore challenges that include uncertainty. This means quantum computers can consider problems and explore solutions at a rate and in a way that will allow for the rapid advancement of many things, including autonomous vehicles, medical science, and artificial intelligence.

The battle for quantum advantage or supremacy (the creation of a quantum computer that can outperform a supercomputer) is on, with several organisations already claiming to have achieved this capability. In some cases, these organisations have demonstrated tasks which would take supercomputers several thousand or even millions of years to complete, completed in only tens of seconds.

This combination of skills and experience meant that Dsposal was uniquely well-placed to work on the issue at hand.

But what does it mean for businesses, and what can quantum computing actually deliver?

Firstly, it could offer vast improvements in data analytics.

Whilst speed may be the first benefit that springs to mind, the ability to apply more intelligence to data analytics may be where the true impact lies. Currently, Artificial Intelligence improvements happen slowly, in part because of the limitations of our current computers.

The ability to improve Artificial Intelligence using quantum computing, could allow for more sophisticated analysis of vast quantities of data. This, in turn, could mean an improvement in predictive analytics and forecasting, leading to better planning of resources and operations for businesses.

Secondly, quantum computers could allow for greater use of simulations in the development of new products and services.

Currently, supercomputers are limited in how they can simulate complex situations, particularly those that go down to the molecular level. As a result, scientists today are limited in what they can accurately simulate and are instead forced to physically create and test solutions, which takes time and resources. In the pharmaceutical industry alone, advances in simulations could mean an improvement in outputs and at a much greater speed.

So, when will quantum computing arrive?

Well, it’s not currently clear. Whilst quantum advantage may have been achieved, it was an exercise in capability only, as the problems the quantum computers solved had no practical use at the time.

Alongside this, the reality of what quantum computing could offer is still unknown. Quantum computers are incredibly sensitive, and in an effort to reduce interference, they’re typically kept isolated and chilled to temperatures colder than those found in space. This means the likelihood of having a quantum computer in every business anytime soon, based on today’s methods of manufacturing and use, is quite low.

However, significant funding is being given to the development of quantum computing and a race between research groups and businesses is ongoing. Estimates for quantum computing becoming a multi-billion-pound industry start from around 2027.

10+ years: The Metaverse

Stay with us on this one…

Over the past 12 months, businesses, educators, entertainment providers and individuals have had to adapt a remote existence. Whilst significant attention has been paid to ways this has impacted how people have accessed and continued to work, the transition to a digital life as a whole has received a little less consideration. That could be about to change.

With the lifting of lockdowns and the return to the real-world starting for many locations, big tech is thinking about how to create a long-term way in which to attract users into a much larger, ongoing digital experience, known to many as the “Metaverse”.

First coined in Neal Stephenson’s 1992 novel Snow Crash, the Metaverse is a joining of digital and physical worlds, that allows users to create identities and existences online which can have real-world impact. Through the Metaverse, individuals can have social interactions, educational experiences, enjoy entertainment and generate income.

Alongside this, businesses can host workplaces through the Metaverse, allowing more collaboration between employees and a wider range of cross-business collaborations and partnerships as well.

But why have we estimated this to be 10+ years away?

There are several reasons. As mentioned earlier, big tech are investing heavily in this concept, with several brands expressing interest the Metaverse, including (but not limited to) Facebook, Apple, Microsoft, Epic and ByteDance.

Whilst large investment may bring about quicker development, the Metaverse (using its original framework) should work across platforms and systems, combining capability and IP without branding barriers.

Currently, companies work hard to create digital silos that make it difficult or time-consuming for individuals to move their digital identities from their system to another, even though the business knows this is what users frequently want.

As an example, you may have an email address with a provider, which is also used as a way to sign into online shopping. Your social media accounts may be linked to provide easier access. Your passwords may be stored through a specific online browser. Creating an open, cross-platform system will require agreements between brands that are investing in their own versions of the Metaverse. This may require standards and policies which don’t exist yet.

Alongside this, accessing the Metaverse will require hardware and connectivity, which have initial and ongoing costs, and both of which are a barrier to entry. This is particularly true in the case of Virtual Reality headsets, which require sufficient computing power alongside investment in the headset itself. Making it accessible for all will take time.

If businesses use the Metaverse to host workspaces, how will this impact employee rights and protections, along with corporate approaches to health and wellbeing?

Typically, Metaverse scenarios have been created in fictional worlds that are no longer pleasant places to exist in. For example, in Snow Crash, the Metaverse offers an escape from a corporate franchise controlled, surveillance dominated world. Is it possible for a Metaverse to exist whilst still enabling individuals and organisations to work towards creating dynamic, inviting places to physically live and enjoy experiences?

 

So, what does it all mean for your business?

As technologies develop at an increasingly rapid rate, our ability to turn scientific theories and works of fiction into reality is becoming increasingly plausible. Some of these may impact businesses, and some may not ever reach fruition. Maintaining agility, flexibility and an open mind when considering what emerging technologies can offer may enable better use of new innovations and could support business growth and development.

Speak to your Innovation Advisor today if you’d like to hear more about new opportunities for technology and innovation in your business.

A tour of Manchester like no other….

Sam Whitear
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Football coaching twins tackle workshops and receive training of their own

Sam Whitear
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A challenge shared is a problem solved – Innovate Manchester opens new revenue stream for Dsposal

Sam Whitear
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The idea that to innovate you must collaborate has become an article of faith in the 21st Century global economy.

 

As we move through a period of intense change driven by advances in digital technology, and with added concerns over our collective impact on the environment, there’s a sense that the most valuable and disruptive ideas can be hatched by small and medium-sized organisations working in partnership with bigger players…

 

Innovate Manchester: Facilitating Innovation 

 

Aimed as supporting the region’s forward-looking businesses, Innovate Manchester was created by MIDAS and GC Business Growth Hub.

 

Taking place across the region and part of GC Business Growth Hub’s wider Innovation Service, Innovate Manchester is a series of unique and pioneering events; aimed at helping its local SME community, as they help overcome whatever challenges are facing our large collaborative partners.

 

Innovate Manchester consisted of a series of open access webinars featuring expert panel discussions and focused Innovation Labs, where a business’ specific challenges were identified and discussed. The events became an essential platform for both SMEs to also identity collaborative approaches to help potential partners innovate their products, services and business operations

 

Just one example of successful collaboration, Innovate Manchester initiated and helped accelerate the ongoing collaboration between GC Business Growth Hub collaboration partner and Italian pharmaceutical company Chiesi Farmaceutici S.p.A., which has over 400 people based in their UK affiliate located in Heald Green, and the smart waste software provider Dsposal, an SME also based in Manchester.

 

An opportunity to make a positive change 

 

Chiesi came with a compelling challenge for SMEs to discuss: over 70 million inhalers are used in the UK every year to treat respiratory conditions, of which most will be disposed of as household domestic waste.

 

The majority of inhalers are made from plastic casings and some contain an aluminium canister and fluorinated gas propellant. As there is no separation process for an inhaler’s components at municipal waste processing plants, all the device’s constituent parts often end up in landfill sites. Not only does this constitute a significant amount of waste material, but the propellant that remains in some inhalers can leak into the atmosphere.

 

Chiesi is committed to reducing the environmental impact of its products and supply chain – and one of its key objectives is to avoid inhaler devices being consigned to landfill. To this end, Chiesi decided to explore how the waste processing system could be managed in order to capture and recycle the inhaler’s component parts after it has been thrown away.

 

The Innovate Manchester event was the ideal opportunity to share the challenge and draw on the expertise of a wider circle of SMEs that they otherwise wouldn’t have engaged with.

 

One of the SMEs in attendance that took up the challenge was Dsposal. Chiesi’s problem resonated with the business strongly, as not only does it specialise in modernising waste processes and circular economy service design, but its team have a lot of combined expertise in pharmaceuticals, the healthcare sector and supply chains.

 

This combination of skills and experience meant that Dsposal was uniquely well-placed to work on the issue at hand.

 

Facilitating a collaborative approach. 

 

Through the delivery of immersive Innovation Lab sessions, virtual workshops, expert-led talks and dedicated break-out sessions, Dsposal got to grips with the question posed by Chiesi and worked through how waste management software and behaviour change campaigns could be utilised.

 

Being embedded in the waste industry, Dsposal was able to advise on how the sector operates and the obstacles that would need to be overcome.

 

Dsposal considered the problem as part of the bigger system – and how changes to one aspect of the waste system will impact others, helping to ensure that the eventual solution would be fit for purpose.

 

Consultants at MIDAS and GC Business Growth Hub facilitated follow-up sessions between the two organisations, where a ‘proof of concept’ scheme is now in place and is currently being piloted.

 

Overcoming the challenges

 

The new concept was launched in January 2021 and will run for 12 months, at the end of which the results will be evaluated and shared with relevant stakeholders for consideration and to assess the feasibility of upscaling.

 

The connection built between Dsposal and Chiesi through the Innovate Manchester programme has grown into a strong working relationship. Since the Innovation Lab, supported by GC Business Growth Hub, the two businesses have developed an opportunity with Innovate UK and an additional Manchester-based SME, Reply, on a human-centred research project around designing sustainable plastic solutions

 

Dsposal’s ability to look at people’s behaviours around waste has been an important aspect of helping Chiesi understand how inhalers are used and how people feel about them. This has highlighted a number of opportunities to make the devices more environmentally friendly by rethinking how they’re designed, operated and disposed of when no longer needed or usable.

 

At a cultural level, being exposed to Dsposal’s insights expanded Chiesi’s thinking and its appetite to tackle a challenge it had previously believed was too difficult to overcome.

 

For Dsposal, a key learning has been that, aside from its software development capabilities, its institutional knowledge of the waste industry is a key asset that has value for other businesses. This awareness of how its in-depth understanding of supply chains and waste management, combined with a systemic problem-solving approach, can support other organisations in their circular economy or sustainability ambitions and has encouraged it to engage in similar collaborative projects.

 

A bright future together 

 

Moving forward, Chiesi is willing to explore new avenues with Dsposal to further improve the sustainability of inhalers and both businesses are looking forward to an effective long-term collaboration.

 

Chiesi is particularly aware that navigating the waste and medicines regulations remains a difficulty for pharmaceutical companies and having an established relationship with an expert SME in this area will be highly advantageous.

 

“The exercise with the team and our relationship with Dsposal has been an extremely positive experience enabling us to accelerate our plans for inhaler recycling which is a key component of our B-Corp programme in the UK,” a Chiesi spokesperson said.

 

Sophie Walker, founder of Dsposal, commented: “The opportunity that was unlocked through the Innovate Manchester programme has been really beneficial for Dsposal. It established a productive relationship with Chiesi, laid the foundations for our successful Innovate UK bid and opened our eyes to a whole new revenue stream. It’s been brilliant.”

 

 

SMEs looking to access specialist support and engage with large organisations to develop new products and services can contact us for more information:

 

 

Innovate Manchester is part-financed by the European Regional Development Fund (ERDF) 2014-2020, as part of the GC Business Growth Hub Innovation Support Programme.

 

SEA expands in Altrincham’s landmark building

Sam Whitear
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Altrincham’s iconic building at 1-5 The Downs is one of the town’s office venues of choice and it has certainly proved to be a good one for Signing Enabling Access Ltd (SEA). It has continued to grow its business and has now taken a first floor suite of 500 sq ft in addition to the 1,000 sq ft of office space its parent company already occupies.

Signing Enabling Access Ltd provides care training services that benefit the deaf community, providing staff and services that are fully accessible to people who use BSL as their first or preferred language.

Signing Enabling Access Ltd’s spokesman said: “The business has expanded and grown beyond expectations and we are now able to offer more services to the deaf community. The extended office space provides us with valuable accommodation in which to train our staff to the highest level.”

Daniel Lee, managing director, Regional Property Solutions, responsible for the management and letting of the building on behalf of the landlord TELL Holdings, said: “Any available office suites in this building let very quickly so we are really pleased that this space became available at the right time for this existing occupier’s expansion requirement”.

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