Believe in the power of 'Brand Yorkshire', business leaders tell Allica Bank roundtable

The Yorkshire Post and Allica Bank joined forces to host a major roundtable event which analysed how an agile approach to delivering financial support can help SMEs (small and medium-sized enterprises) create jobs and unleash economic growth in our region.

The 13 participants highlighted the barriers to growth facing SMEs, which included skills gaps, financial hurdles and regulations. They also considered the challenges and opportunities created by the growth of AI (Artificial Intelligence).

Ben Priestley, the finance director of manufacturing firm Mansfield Pollard, told the roundtable his business had enjoyed a very strong growth trajectory although he did report a "tail off" in some public sector related elements of business activity towards the end of last year. He acknowledged that the 'cost of people' could be a challenge as the company paid the living wage during a time of inflationary pressure, along with specific increases to help families.

He added: "We benchmark ourselves as the Rolls Royce in our sectors."

Mr Priestley said he was disappointed about the decision to axe the main Northern sections of HS2. Prime Minister Rishi Sunak cancelled HS2’s northern section in October last year amid spiralling costs.

Mr Priestley added: "There's a feeling that the whole ethos of the Northern Powerhouse has evaporated. We would all love the economy to be less London-centric than it is."

Mansfield Pollard has made a significant investment in Bradford including the addition of 300,000 sq ft of manufacturing space in the last two years.

"We need to attract more talent to Bradford,’’ he added. “Bradford has got a way to go to compete with rival cities but it is trying hard."

Mr Priestley said companies must take an 'adapt or die' approach to AI and technology.

"If you don't use it, your rivals will,'' he said. "It's about increasing productivity not reducing workforces. We all need to access more money from the central Government pot to support regional businesses."

However, he said the company's experience is that the time and money spent in bidding for money from these pots can and does put companies off.

He said that, by the time a company has actually gained the funding, the amount secured is actually quite insignificant and doesn't justify the initial expense.

"Something needs to change,’’ he added.

Charlie Barker, the group finance director at Yorkshire Garden Centres, said the last four years had been a bit of a rollercoaster, with lockdown imposing restrictions on businesses around the country, although garden centres were some of the first retailers to re-open.

"Initially we were among the winners, but there has been a correction over the last two years, with average spending coming down quite significantly from its Covid peak."

The business has, however, enjoyed success with footfall holding up well in the children's play areas and catering facilities.

"We recently recruited 150 staff for our centre in Tingley, West Yorkshire,’’ he added. “This was a big challenge but we managed to do it. In many respects we compete with the supermarkets in terms of the pool for staff, so we have to offer something different in terms of working environment and culture."

He said the company had focused on becoming a Real Living Wage employer, but this was now becoming unsustainable given the significant inflationary pressures being faced by the business.

Mr Barker said AI could help retailers operate more efficiently, particularly in back office functions, therefore enabling staff to focus on more value added work, which require more creativity and human input.

Jenny Bell, marketing manager of technology business Claritas Solutions, said a lot of the company's 70 strong staff had been with the business for a long time which was a reflection of its strong culture and ethos.

Within the public cloud space, around 80 per cent of data is stored on US-based servers, which shows where the influence in the sector lies, she added.

"The greatest barrier to competition is the fact that we are up against companies with deep pockets. It's also a battle to retain good staff who are tempted by higher salaries these companies can offer.

There is a need for greater diversity in the sector; around 80 per cent of staff are male, although at Claritas there is a perfectly gender balanced board with two men and two women.

"We're very proud of the Yorkshire brand and want the Government to invest more in IT in this country as well as nurture and support home-grown talent. AI could be very dangerous if it gets into the wrong hands; a global united framework is needed urgently to make sure it doesn't get out of hand."

This is the first in a series of articles about the roundtable which was held at the Doubletree by Hilton Hotel in Leeds and chaired by Greg Wright, the deputy business editor of The Yorkshire Post.