The Port of Tilbury’s £1 Billion Expansion Plan

The Port of Tilbury, London’s major port, has recently announced plans to transform the Tilbury container terminal with a £1 Billion expansion.  The proposed new port terminal which will be known as Tilbury2, will be constructed on the former 152-acre Tilbury Power Station site. The new terminal will likely include a facility enabling the import and processing of bulk construction materials to support the demands of the UK’s building sector.

The port is planning to expand the site from 850-acres, to 1,100-acres including a storage area of a variety of goods, including cars. There are also plans to add a deep-sea jetty, allowing ships to arrive and depart from around Europe. The site expansion will allow Tilbury to accommodate ships from India, Africa and the Far East. The planned expansion will bring huge economic benefits as well as creating many jobs in the area.

Nearly half of the investment at Tilbury is being made by tenants, following the ports privatisation in 1992. Tilbury Port has been expanding rapidly over the past two decades, creating the demand for this expansion as businesses are seeking more space and land. In addition to this, there has been a significant increase over the years of goods and products coming in through the port. It is estimated that the port will continue to increase in size over the next 15 years which the new port terminal would support.

The proposed area for expansion.

The investment has been a key factor in construction of the biggest Amazon fulfilment centre in Britain, which over the next ten years will triple the number of employees from 4,000 to 12,000. This is also likely to result in more retailers deciding to package their goods on site at the port, rather than moving them to a separate site for distribution.

Highest Recorded Manufacturing Output in the UK for 10 years

The Manufacturing output in the UK is rising at an impressive rate, actually the fastest since 2008. It has grown for seven consecutive months from May till November 2017.

A 3.9% increase in output (recorded in November 2017) was attributed to projects involving renewable energy and exports of cars, boats and aeroplanes (compared to manufacturing output in 2016). There was also a 0.4% increase in Industrial output in November 2017 according to official statistics.

On the other end, there was a fall observed in the Construction industry output, which was 2% less in November relative to the preceding 3 months. This fall was the highest any quarter had experienced since August 2012 in this particular industry.

An increase of 0.4% was witnessed in November, relative to the month of October. Energy supply had the biggest contribution in this increase. Energy supply itself increased by 3.2%, the reason being the colder than usual temperatures during November.

The growth of economy was slow in 2017, because Brexit referendum results had caused the fall in the value of Sterling, which had further led to higher inflation (in the first 9 months of 2017). After September however, the economy started to grow and in three months the growth was recorded at 0.4 percent.

It is true that figures for the Manufacturing industry are good. However, something else that should be known is that manufacturing only constitutes a 10% sector in the economy.

An in-depth analysis shows two major trends of the British Manufacturing industry, the first one involving a lesser value of currency and the second one concerning global growth. It should be noted that due to the fall in value of the Pound Sterling, exports in the UK have become more competitive than they were before.

It was also seen that during this year the performance of the three main economies (China, Europe and USA) that have a big role to play in the economic growth of the World was the best since the financial crisis of 2007-2008.

In turn, the number of car exports rose pretty rapidly and narrowed the trade deficit, The United Kingdom had with other countries round the World. However, economic growth is still pretty slow domestically, the proof of that being the fall in Construction figures.

Despite the domestic statistics, the United Kingdom’s Manufacturing industry had its best quarter since the first quarter of 2008, supported by the good global economic outlook.

And also had the strongest economic growth in the last two decades.

The remarks of the end of 2017 were positive, in regards to the Manufacturing industry, many of the sub sectors of the industry enjoyed growth during the quarter.

It is expected that in 2018 growth would be maintained, provided that the support from the global economy continues (and it does look like it will).

The government is also committed to continue enacting its industrial strategy furthering the growth within the Manufacturing sector.

“The downturn in construction activity has been driven by new work in the private commercial sector, which was 5.4% lower in the three months to November than in the previous three months.”

Said the UK Chief Economist at Pantheon Macroeconomics Samuel Tombs,

“Looking ahead, Brexit uncertainty is likely to continue to hit commercial projects, while the planned 4.5% decline in public sector investment in 2018/19 will additionally dampen the sector.”

Exports Reach Record High for Scotlands Food & Drink Industry

Last year, Food and Drink exports from Scotland reached a record £5.5bn, according to government figures.

A noteworthy growth in sales of Scottish Whiskey and seafood exports rose £421m (8%) in 2016. To the European Union (EU) countries, exports were £2.3bn, up £133m. According to the Scottish government, European markets have their own significance.

From 2015, whiskey exports rose 4% (worth £153m) to reach a high of £4bn. Similarly, fish and seafood sales were up from £156m to £759m, adding £603m to the revenues.

Fergus Ewing, Rural Economy Secretary, said: “Since this government came into power, the value of food exports has more than doubled. In our economy, Food and Drink is now one of the standout success stories, increasing growth and supporting employment across the country”.

“Our production has a tremendous reputation across the globe and it’s clear that the industry is going from strength to strength. The increased collaboration between industry and public sector, and the Food and Drink Export Plan, are helping this by identifying opportunities to support businesses and breaking down the barriers to trade”.

“These figures show the importance of retaining access to the vital European markets, which are currently worth £2.3bn to the sector and represent our largest export market”.

“We shouldn’t have to face the choice between remaining as part of the UK and the EU single market. The pursuit of a hard Brexit is a major threat to this success and these figures show why we must work to protect Scotland’s place in Europe”.

“Scotland’s Food and Drink sector is in fantastic health, and next week’s strategy launch will outline how we plan to support the industry to build upon this success and further grow the sector to 2030.”

‘Enormous Desires’

James Withers, the Chief Executive of Scotland Food & Drink termed the latest export figures “fantastic news” and a new high for Scottish Food and Drink”.

He further added, “This industry is Scotland’s fastest-growing major sector. Yet we have huge ambitions to grow further”.

“We’re clear we want to internationalize our food industry, following in the footsteps of our greatest export, Scotch Whiskey. We have now doubled food exports since 2007, transforming the level of trade in growing markets like Asia”.

“That is crucial to extend our footprint beyond just Europe, which is still the destination for over 70% of our food exports”.

UK Exports Rise as Firms back EU withdrawal

Yet more positive news following the UK’s decision to leave the EU as exports of British goods are on the rise following two years of decline. According to the figures, the UK exported goods worth £247billion in the first 10 months of 2016. This figure is more than 3% up compared to the same period the previous year. Exports are further expected to rise in 2017 with the increase in the value of the pound in the international market.
2016 was the most successful year of growth since 2013 for trade, with exports jumping to 8.7% upwards and surpassing the £300billion mark.
The previous two years have proved difficult for British exporters considering the foreign markets reluctance to trade with the UK for various reasons such as the value of the pound but the circumstances created after Brexit have made the UK an attractive place to do business.
A huge vote of confidence was made this week when Britain’s five biggest business groups pledged to work together in order to make Brexit a success. Business firms in the UK have laid full support to this decision and believe that Brexit has opened new doors for business opportunities with high profitability.
The pro-Brussels CBI, British Chambers of Commerce (BCC), Institute of Directors, Federation of Small Businesses and manufacturers’ organisation EEF all vowed to work with firms from all over Britain to take advantage of the opportunities presented by Brexit.

Brexit: Threat and Opportunities for the Shipping Industry

For hundreds of years, London has historically been a vital centre for the shipping industry. Despite having a lesser amount of docks as compared to the past, London is still holding an important place in the shipping industry.

However, London’s status in the shipping industry is being threatened directly by the Brexit referendum and rivals such as Singapore. Although London was already experiencing a down turn in business before the referendum took place, the uncertainty prevailing from the post-Brexit environment could easily make London lose the position it used to enjoy in the past.

The director of the policy at the UK Chamber of Shipping David Balston is of the view that to make the UK’s industries as competitive as possible, and to make offerings to all the sectors, specific measures should be adopted to make the City of London more competitive in maritime terms.

Singapore, in order to take over London’s position in the shipping business, has offered attractive tax breaks to different companies to relocate there. Singapore always looked up at London as the pioneer for the shipping industry, but things could be set to change.

The shipping industry, in order to boom and prosper, has drafted a number of requests to be implemented promptly by the government. They want the government to make sure that maritime services will be under the operation as per the new free trade agreement. It’s also expected that the UK government should offer lucrative tax breaks for investments in shipping business after quitting the European Union. Additional support to establish a shipping register and to the promotion of the sector is requested by the shipping industry. All these requests, if promptly responded and worked upon, can help a great extent for London to maintain its historic position.

The UK can significantly tone down the red tape after the post-Brexit scenario. The state aid rules of EU have made it difficult for the implementation of the tonnage tax regime of Britain. This tax regime offered a decreased tax environment. After the post-Brexit scenario, this regime can be implemented again to facilitate the industry.

Brexit Proves to be a Major Boost for Manufacturing Exports

Since the occurrence of Brexit, as soon as the referendum was delivered, the demand for manufacturing exports increased – due to the sudden collapse of Sterling. According to spokesmen at Central Bureau of Investigation (CBI), the quarterly industrial trends survey of the business lobby group has shown that in October, the manufacturing orders from foreign buyers have reached their highest level in the last two and a half years; with their reading reaching up to 8+.

This means that the percentage of those manufacturers, who said that there was an increase in the export business, was 8 percent higher than those manufacturers who declined the increase of exports. However, the domestic export industry decreased as it was at 11+ in July; and it fell down to 5+ in the month of October. Nonetheless, the worries about a sudden drop in domestic orders were overcome by the foreign orders – which allowed the total volume of new orders to steadily hold the spot at a 9+. Moreover, the total volume of output from the last quarter; was decreased from 16+ to 9+.
The forecasted exports for the coming three months is also at a great level, as it tends to reach to 17+ from 10+ – while the domestic orders reaching 4+ from 1+. This means that the percentage of manufacturers, who believe that the new orders will increase in the next quarter has increased to 12+, from 0 in the last time around.
The CBI Chief Economist, Rain Newton-Smith said that due to the fall in the value of pound, the manufacturers are optimistic that the amount of exports will increase in the coming years. However, she was of the view that this optimism shown by the manufacturers may have a downside in the long run. According to her, the weaker the pound becomes, the more it will feed through the costs – as they will rise briskly. Moreover, this will also lead to higher consumer prices in the coming months – toppling down the market in 2016.
Side by side to the Sterling’s decline, the Britain on leaving the EU has created a lot of new problems for the manufacturers. This means that it has given boost to a lack of skills in this specific department. This has also in return given a rise to lower production, in terms of export. Moreover, this entire scenario has led to the opening of the immigration system, causing many problems at home i.e. public concerns about foreign workers taking their place in the skilled industry. On top of that, the worries were also extremely strong, when it came to Britain securing a tariff-free access to Europe.
This means that while the companies are quite optimistic about their personal gains, the political uncertainty has led the thinkers to derive new ways to deal with a number of different public concerns.

Unemployment in the UK falls again as EU Referendum Indicates no Sign of Slowdown

The job market of Britain shows no sign or indication of taking a hit from the EU referendum with the figures showing the fall of unemployment yet again. The rate of employment remained at a high record of 74.5% in the quarter to July: this included the one month after the Brexit vote. Some people numbering 31.8 million were in work, up by 174,000 from the previous quarter.

A total number of 1.63 million people were faced with unemployment: a fall of 39,000 over the quarter and 190,000 down compared to the previous year. This indicated that the jobless rate was at 4.9%. According to the Office for National Statistics, the claimant count showed a slight rise and increase between July and August: this also included the Jobseeker’s Allowance. On the contrary, the Single Month Labor Force Survey, for the month of July, recorded an unemployment rate of 4.7%. This amount was down 0.4% as compared to the month before. So, the unemployment level decreased by 154,000 to 1.6 million. Between the months of June and August, job vacancies were up 3,000 to 752,000: this period also included the two months after Britain voted to leave the European Union.
In the year to July, the average earnings increased by 2.3% and 0.2% down on the previous month. These figures also indicated that the number of people employed in the public sector was at its lowest since the year of 1999: the time when comparable data started to be collected.

The level was 20,000 lower than the previous year and, in the month of June some 16.8 of the people with jobs were in the public sector.

According to Nick Palmer, ONS statistician, said that, “’These figures show continued labour market improvement, with the employment rate remaining at a record high and inactivity at a new record low. The headline Labour Force Survey and earnings data is for May to July, so cover one month since the result of the EU referendum became known.’

Laura Gardiner a Senior Policy Analyst at the Resolution Foundation said that, “Our first look at the post-Brexit vote labour market shows a similar picture to the one we had before the vote. It could be some time before we see any ‘Brexit effects’ – good or bad – in the official figures. Employment has stabilised at an impressively high level, which offers an excellent base for a full employment drive.

However, Ms Gardiner also cautioned that the real annual pay growth appeared to have slowed to the point of 1.7%. She also added that, stronger pay settlements and a huge productivity drive will be needed to change this and prevent another painful wage squeeze in the coming years. After Rolls-Royce opened its first new UK dealership in six years, the economy has been given a fresh confidence boost. The firm has also opened its showcase Cribbs Causeway, Bristol.

GSK announces significant new investment in manufacturing network

Most people were of the belief that the EU referendum will bring a downfall to the economy of the United Kingdom. But it seems that things are figuring out in the right direction for the people who opted out of the union because a huge investment just made its way to the country.
It was feared that pharmaceutical giants like GlaxoSmithKline and AstraZeneca may want to move their headquarters out of the country because of the outcome of EU referendum. The chief executive Sir Andrew Witty also expressed his fear that the vote of leaving the EU would create insecurity and doubt and add complexity to the pharmaceutical sector in the United Kingdom but now it seems that the decision had no impact whatsoever on his take on the working environment and privileges one has while running a business in the UK.
GSK has just invested £275m in expanding the three of its manufacturing sites across the UK. The goal is to increase the exports by manufacturing these added quantities. It has already invested £750m in providing new facilities in the past six years and with this one included, the amount has summed up to a whopping £1bn. The three manufacturing sites which will benefit from these investments are Barnard Castle in County Durham, Montrose in Angus, and Ware in Hertfordshire.
Sir Andrew has a lot of faith in the workforce of this country and feels that the competitive tax system has helped him in coming up with the idea of sticking to the UK. The benefits of having a good and reliable workforce along with paying favorable taxes made him increase the exports while expanding the business in the same area. Currently, there are 16,000 people in the UK which work in GSK and out of them 6,000 are in manufacturing.
Although Sir Andrew initially believed that voting for an exit will be a mistake because it will affect the free flow of products to and from all the member countries, he now feels that it has benefited the exports. Therefore, he has opted for an expansion which has been regarded by experienced and well-reputed business analysts as a move that will help in establishing the idea that the strength of the UK’s economy is still the same. In fact, it will remain a business leader in the World’s economy with an increase in its exports.
Sterling has dropped by 10% against the Dollar and Euro since the referendum but Sir Andrew maintains that this will not affect the financial condition of his company. The reason is the costs are in pounds but his products are exported outside the UK making all his customers foreigners. Although, it has faced some tax losses in the past three months, the company will go on making more profits in the remaining year because of the weak pound.
The decision is highly welcomed by the government because, despite other huge investments, the economy did not have any considerable benefits. This particular investment will increase the exports and hopefully instill a new spark into the economy.

Contact Willis Global for unrivalled recruitment support within the Shipping & Logistics industry

Brexit – The Positives For The UK Export Industry

How Brexit Is Having A Positive Effect On The Export Industry

If you have been watching the news lately then you know about Brexit. The world of economics has been consumed by Britain’s first moves to disassociate from the European Union. The question remains though on what true effect it will have on the world economy. Right now pundits are fighting it out challenging the outcomes—both positive and negative. A referendum is due prior to the end of 2017 but it is highly likely that the separation of Britain will happen in 2016.

One thing that should see a positive effect due to Brexit is the export industry. The UK currently trades freely with EU members due to the free trade agreement that is the cornerstone of the network. This agreement means a total of 63% of all Britain’s exports are tied into their EU membership.

Most likely when Brexit happens, a replacement favorable trade agreement will be reached; one that is advantageous for both sides. In a worst-case scenario where Britain is under tariffs as a result of the move, there still would be positive advantages. Yes, exporters would face some supplemental costs and charges to comply with EU rules, however they would merely be an additional factor in the world of trading and not an elimination of trade.

On top of tariffs though, there is a notable decline in manufacturing in Britain. This diminishing economic sector within the global economy most likely would not be felt with the UK’s overall export industry. Brexit would supply Britain with a unique opportunity to broker its own trade treaties with non-EU countries, thus potentially bringing more revenue into their coffers. In fact, it even may be able to create its own free trade policy. This could help its shipping income and create an entirely new job market.

If Britain is able to create its own free trade arrangement, negotiations may be that much easier than if they were still a part of the EU. The EU is known to be an intricate bureaucratic system and negotiations can take months—even years to flesh out. With countries being able to take the helm of sorting out their export laws, it will give them a new way to generate higher revenues.

Contrary to the experts, it is likely that Britain’s exit from the EU will slow down their economy. Logistically, they may need to restructure their shipping and exports, but that isn’t necessarily a bad thing. Most likely the country would create rules and regulations that are more lucrative and streamlined than those it currently is working with under EU membership.

Only time will tell what will happen this year, but expect Brexit to come up a lot. The EU will have to brace itself for the exodus and possibly other country’s exits also. Likely they will form their own structure to better manage. Britain, and any countries that follow, will also change the rules to better suit their economic structure and offer more profitability in the long run.

Top Reasons You Should Apply for Jobs Through Recruitment Agencies

Job hunting is tedious, time-consuming work. It involves tweaking your CV to fit each different job, writing numerous cover letters, filling out scores of applications, giving multiple interviews, and much more. Sometimes, it feels like work itself. That’s where professional recruitment agencies come in. They help you manage the stress of job hunting, as well as help you ace those interviews. If you’re still not convinced, listed below are 5 benefits to using a recruitment agency.

1. Targeted Job Search
Recruitment agencies work with both those seeking jobs and those seeking employees. As such, they will know what jobs they have available, and what their client companies are looking for. More importantly, however, is that skilled recruiters will make it their job to know YOU well. This approach means that they can match you better to an organization where you would fit in and that align with your goals and work ethic. This saves you the hassle of blindly applying for jobs based on (often) obscure job descriptions.

2. Support and Direction
Going to a recruitment agency means going to professionals. As such, they’ll have better knowledge of the labour market, of how to succeed in interviews and skill assessment centres. Basically, they’ll know what needs polishing and how to make to make you shine in front of prospective employers. A skilled recruiter will zero in on how to make your CV better, whether your career goals need to be more focused and so on. They could be the boost your career needed to progress.

3. Management
Recruitment agencies are essentially the middlemen in your job hunt. They will streamline and organize your search. They’ll target clients to send your CVs to, arrange for and organize your interviews, and then give you continuous feedback about your progress. Since they’re the middlemen, they will also know about the client company and be able to give you pertinent information about them. This streamlines your efforts and allows you to focus your energy and efforts, instead of managing a wide array of things at the same time.

4. Continuous Support System
The role of the recruitment agency doesn’t necessarily have to end once you succeed in getting hired. If you make a good impression on the recruiters, they will be willing to help you later on if you want to make any changes in your career. Furthermore, if you’re hired in a department in charge of recruitments in your place of employment, you can use the recruitment agency again, but this time as a client instead of a candidate.

5. Constructive Criticism
Finally, whether or not you immediately land a job, the recruitment agency will give you feedback and constructive criticism. They can help you understand where you went wrong and what to do better the next time if you haven’t quite aced that interview.

Recruitment agencies are a powerful tool in a job hunter’s arsenal if used correctly. So if you’re not having the best of luck finding your dream job, go find the best one near you!