Chris Holland looks at varying economic and business expectations for the year ahead

MANUFACTURING - more vital to the Bradford district's economy and employment levels than in many other UK areas - looks to be facing a big challenge during 2016 if recent surveys and reports are to be believed.

According to employers' body the CBI, while business and professional services ended 2015 strongly and the retail and wholesale sectors saw an improvement, manufacturers - and especially exporters - continue to face difficult times.

Director general Carolyn Fairbairn said: "The UK economy has finished the year strongly, with business services acting as a lightning rod for growth.

"Nonetheless, there is no room for complacency in 2016 as significant challenges to global growth remain.

"The picture differs markedly by sector. Manufacturers are having a tough time, with the strength of sterling hitting their competitiveness in the eurozone and the slowdown in emerging markets weighing on export demand.

"Ultimately, employers want relief from the cumulative burden that could harm the UK's competitiveness, as the combined effect of the introduction of the apprenticeship levy and the national living wage begins to bite against the backdrop of unreformed business rates and the administrative challenge of pensions enrolment."

According to manufacturers' body EEF, the sector has seen new orders just ticking over and ended 2015 "with neither a bang nor a whimper".

Meanwhile, Martin Beck, senior economic advisor to the EY ITEM Club, said

December’s Chartered Institute of Purchasing and Supply's manufacturing survey disappointed with its lowest reading in four months.

He said: "As the sector is struggling to eke out growth, it looks like manufacturers are unlikely to have made more than a marginal contribution to GDP growth in the last quarter of the year.

“The weakening in manufacturing activity was broad-based, with the consumer, intermediate and investment goods sub-sectors all seeing a deceleration in growth. Meanwhile, the rise in export orders was the weakest since September.

"The boost to manufacturers from the drop in the sterling price of oil, down almost 13 per cent in December on the previous month, is struggling against the headwinds of sterling’s previous strength and problems in the world economy.

“Looking ahead, manufacturing looks set to play firmly second fiddle to services in driving growth in 2016. However, the weakening in the pound since the autumn, as well as a modest pick-up in global activity, should assist manufacturers selling abroad or competing with imports."

While no-one would argue that life is easy for manufacturers, we have seen some signs of success and progress locally.

Just before Christmas the boss of Bradford packaging specialist Holmes Mann announced he was putting his Little Germany site on the market and searching for larger more modern premises to continue expanding production as it looks to double turnover to £7.5 million .

Barny Holmes, managing director of the 125 year-old family business, said: “It’s been a landmark 12 months for Holmes Mann. We’ve celebrated our 125th anniversary, heavily invested in new equipment and expanded the workforce to keep up with growing demand.

"We now need to move to more modern premises to increase production levels and double our turnover to £7.5 million in 2016, so we need somewhere that will accommodate that growth."

Over at Knightsbridge Furniture on Thornton Road bosses Alan Towns and Peter Denham, who acquired the business in a management buyout around a year ago, are budgeting for a £10 million turnover this financial year and expect to exceed that figure – with sales are 20 per cent ahead of plan.

The company has been selected as the preferred supplier for the Scottish NHS which will see it supply contract furniture to more than 200 hospitals across Scotland and the Isles – which could mean an extra £1 million of business.

Knightsbridge Furniture has developed its direct export business, including for market leading office furniture specialists in the United States, in the Middle east and is looking at the Baltic states.

The business has made capital investment of around £250,000, its delivery fleet is being upgraded, new machines are on order or have been installed and a new biomass boiler which will burn all its waste to that the factory will be installed in 2016.

Alan Towns said: "We are moving the business forward by widening the areas in which we operate, developing new designs for new customers and ensuring the business is on a growth path.”

One sector which is confident about the future is telecommunications .

In the autumn Saltaire-based Intouch Advance said new contract wins had added more than £2.5 million of business. Last month it announced a major deal with leading UK mail order fulfilment company Kingstown Associates, to overhaul its communications and call handling processes.

Managing director Simon Pollard said: “Contracts range in length from 24 to 48 months and are for the supply of a mix of telecoms services. While each deal comprises a very similar mix they are all bespoke and tailored to each client’s specific needs. One of our strengths is in being able to recommend a different slice of our product set that will meet our clients’ varying requirements, optimally.”

Intouch Advance also renewed contracts with ten existing clients in the regional and across the UK.

Meanwhile, regional BT boss Tom Keeney says 2016 will see the company involved in rolling out fibre technology for high speed broadband services to some of Yorkshire's most challenging rural areas .

Mr Keeney said: "Our ambition is to ‘never say no’ to any community and we welcome the opportunity to work in partnership with them to find a suitable and affordable fibre broadband solution.

We’ve set out our vision for the UK’s digital future and the significant contribution we can make, subject to regulatory support and the right policy framework. This pledge is focussed around four key areas – speed, reach, future development of ultrafast broadband and customer service."

To date, the multi-million pound rollout of superfast fibre broadband had seen around 1.8 million households and businesses across Yorkshire able to order new technology

363,000 already having signed up to a fibre broadband package.

Mr Keeney said: "We’ve already seen great progress. Each month during 2015, thousands more premises in the county gained access to this high-speed technology thanks to partnerships between BT, local authorities (including Bradford) and the Government’s Broadband Delivery UK programme.

"This progress is leading to much faster speeds in many parts of the region. According to the regulator Ofcom, the average broadband speed in nearly every county in the region now exceeds 24Mbps."

He said BT would play a major economic role in the region during 2016.

"We play a role in every community in the region as a provider of essential services, investor and employer. Indeed, an independent report estimated that BT last year generated £1.13 billion for the economy in Yorkshire and the Humber and supported more than 15,000 jobs.

The tremendous pace of change and the wonderful opportunities emerging from these new technologies mean we’re looking forward to 2016 with a great sense of excitement," said Mr Keeney.

Finally, a West Yorkshire recovery expert is advising people not to allow a New Year debt hangover to cause them pain throughout 2016.

Chris Wood, Yorkshire R3 committee member and partner at Clough Corporate Solutions in Cleckheaton, has urged people to recognise, review and address their money issues.

Advice includes not delaying tackling financial problems, seeking professional help, prioritising debt repayments and avoiding credit cards and payday loans to plug gaps in day to day finances.

R3 says that, while debt concern has fallen across the region, 35 per cent of people remain worried about their debt levels.

Chris Wood said: "While debt concerns across the region have reduced appreciably over the last year, the first months of the year are often the time when overspending catches up with people or when they decide to take stock and get their financial situation under control.

“Above all else, if you’re facing financial difficulties, seek advice early from a qualified source. Making sure your personal finances are in the best possible condition for the next 12 months should be a New Year’s resolution to which we all commit.”