Business
Business activity growth in Wales accelerates to fastest in over a year
The headline NatWest Wales PMI Business Activity Index – a seasonally adjusted index that measures the month-on-month change in the combined output of the region’s manufacturing and service sectors – posted at 52.0 in May, up from 50.8 in April, to signal the sharpest rise in output at Welsh private sector firms since March 2023. Although slower than the series average, the latest increase in activity was supported by a further improvement in demand conditions and a sustained uptick in new orders. The expansion was among the weakest seen of the 12 monitored UK regions and nations, however, with only Yorkshire & Humber, the South East and East of England recording softer growth in output.
Private sector firms in Wales signalled a third successive monthly expansion in new orders midway through the second quarter. Panellists noted that demand conditions were sustained, alongside new client wins. The rate of growth eased, however, to the slowest in the aforementioned sequence and was only marginal overall. Meanwhile, the pace of increase in new business was weaker than the UK average.
Welsh businesses registered further optimism regarding the outlook for output over the coming 12 months in May. The degree of confidence ticked up to a three-month high, but was also among the strongest in two-and-a-half years. Anecdotal evidence attributed positive sentiment to hopes of more upbeat demand conditions and efforts to broaden customer bases.
Expectations were historically elevated and more optimistic than that seen at the UK level.
May data signalled a third successive monthly increase in employment at Welsh private sector firms. The rate of job creation accelerated to a modest pace that was the fastest since October 2022. Companies stated that greater staffing numbers were due to increased new order intakes.
The rate of expansion in headcounts was historically upbeat and outpaced the UK average.
As has been the case since May 2022, Welsh firms registered another monthly decrease in unfinished business midway through the second quarter. The pace of decline accelerated to the fastest in three months and was sharp overall. Companies noted that an improvement in supply chains and sufficient capacity allowed them to work through incomplete orders in a timely manner.
Moreover, Welsh firms by far saw the quickest decrease in backlogs of work of the 12 monitored UK regions and nations.
Welsh private sector firms signalled a marked rise in input prices during May. Panellists often stated that greater cost burdens stemmed from increased raw material and fuel prices, alongside higher wage bills. The pace of cost inflation softened from April’s recent high and was broadly in line with the long-run series average.
Meanwhile, Welsh firms indicated a sharper uptick in costs than was seen at the UK level.
Selling prices set by Welsh private sector firms continued to increase at a historically elevated pace in May. Anecdotal evidence suggested that firms sought to pass-through higher costs to customers. The pace of inflation eased to the slowest in four months, however, and was broadly in line with the UK average.
Business
52 homes to be built in Roch as scheme gets final sign-off
THE FINAL stage of approval for a near-£10m Pembrokeshire residential development of 52 homes has been given the go-ahead.
Back in April, members of Pembrokeshire County Council’s planning committee backed an application by Wakefield Pembrokeshire Ltd for the development, which includes four one-bed affordable housing units, on land near Pilgrims Way, Roch.
18 objections to the scheme were received, raising concerns including an “inadequate” affordable housing level, it being a high density development for a rural area, a loss of green space, the size of some of the homes, and pressures on existing services and facilities, and fears it may lead to an increase in second homes.
Nolton & Roch Community Land Trust (N&RCLT) has raised its concerns about a lack of affordable homes at the development, calling for a 20 per cent affordable homes element, as recommended by policy.
An officer report for members, recommending conditional approval, said: “It is apparent that the proposed development is not fully policy compliant, insofar as it cannot deliver the indicative 20 per cent affordable housing sought [by policy].
“However, a substantial positive social impact will arise through the provision of housing, including four one-bed affordable housing units, in meeting identified needs for both market and affordable housing.
“Financial obligations identified to mitigate adverse impacts arising from the proposed development cannot be met in full. However, [policy] acknowledges that in such circumstances contributions may be prioritised on the basis of the individual circumstances of each case.”
Speaking at the meeting, agent Gethin Beynon said the project had a “significant economic value” of around £10m, and the local applicant had “a sense of stewardship to the local community,” offering affordable housing and community infrastructure towards highways and education.
Approval was delegated to the council’s head of planning to approve the application, subject to the completion of a Section 106 planning obligation, making community financial contributions.
The Section 106 agreement was recently agreed, with the application now formally approved.
Business
World of engineering and welding SPARCs interest in Ysgol Harri Tudur’s female learners
AN EVENT hosted by Ledwood Engineering gave girls from Year 8 and 9 at Ysgol Harri Tudur first-hand experience of the world of engineering recently.
Engineering is a booming sector in Pembrokeshire with a high demand for skilled workers in exciting career pathways associated with the development of low carbon and renewable energy industry and the Celtic Freeport.
The young women heard from industry experts on the importance of engineering in Pembrokeshire, and had hands on experience using a welding simulator, at the company’s Pembroke Dock site.
The learners are part of the County’s SPARC (Sustainable Power and Renewable Construction) initiative aimed as inspiring and empowering young females to consider careers in science, technology, engineering and mathematics (STEM) pathways where females are under-represented in the workforce.
SPARC is funded through an alliance comprising Blue Gem Wind, Ledwood Engineering, Port of Milford Haven, RWE Renewables, Pembrokeshire County Council, Pembrokeshire College and the Swansea Bay City Deal.
Mrs Laura Buckingham, SPARC practitioner at Ysgol Harri Tudur said: “Our learners had a fantastic experience at Ledwood Engineering. They were given lots of advice by industry experts on the different career options and pathways within the engineering sector.
“They appreciated the opportunity to ask their questions and found the session very informative. Having the chance to trial their welding skills on the simulator was an experience they continue to talk about and has definitely piqued their interest.”
Poppy Sawyer, Year 8 SPARC learner added: ‘It was a really good trip. Talking to the different people there has helped me know more about the jobs we could get which will be very useful when making choices for my future.”
“They helped us a lot by giving us lots of information. We were able to look around and try welding. It was really fun,” added Tianna Marshall, Year 8 SPARC learner.
The Regional Learning and Skills Partnership also launched its Explore Engineering interactive website at the event.
Business
Pembrokeshire care home group hit by £150,000 budget blow
A COMPANY with six care homes in Pembrokeshire has revealed it is facing a £150,000 financial hit due to controversial Budget measures.
The hikes in National Insurance contributions, combined with an increase in the Real Living Wage, are set to cause “12 months of instability,” according to Mike Davies, managing director of Sunset West Care Homes’ holding company, Dale Roads Group Ltd.
The group operates six care homes, including Langton Hall Residential Home in Fishguard, Pen-Coed Residential Home in Saundersfoot, and Woodfield Nursing Residential Home in Narberth. Other homes in the group are Woodland Lodge Residential Home in Tenby, Torestin Care Home in Tiers Cross near Haverfordwest, and Pembroke Haven in Pembroke Dock.
Mr Davies warned that struggling care homes may need to ask families to help cover the cost of care for their loved ones.
He is supporting a new campaign launched by Care Forum Wales (CFW), which calls for social care to receive an NHS-style exemption from National Insurance increases or emergency financial support to prevent care homes and domiciliary care providers from going bust.
Save Social Care campaign
CFW chair Mario Kreft MBE is leading the Save Social Care, Save the NHS campaign, highlighting the issue in letters to Welsh MPs, Senedd members, First Minister Eluned Morgan, and Health Minister Jeremy Miles. Similar letters have also been sent to Prime Minister Keir Starmer and Chancellor Rachel Reeves.
The campaign, supported by the Five Nations Group, warns that third-sector providers, including charities and hospices, face serious risks due to the Budget measures.
Mr Davies shared these concerns, stating that Sunset West Care Homes is looking at an additional bill of more than £130,000 just to cover National Insurance increases. Additionally, the group expects to incur an extra £18,000 annually to cover Statutory Sick Pay costs.
With 169 registered beds across the group, Mr Davies said further financial strain from wage increases could push care homes to the brink unless additional funding is provided by the Welsh and UK governments.
He said: “Operating during Covid stretched staff resources to their limits. Now, with these additional Budget costs, we are facing a snapshot of the challenges ahead.
“If costs remain as projected, we anticipate an extra £130,000 for National Insurance contributions alone. This doesn’t even account for the wage increases yet.”
“Uncharted territory”
Mr Davies warned that the social care sector in Pembrokeshire could face instability, with smaller operators struggling to survive.
He said: “We’ve already seen care home closures, and the likelihood is that smaller operators will find it even more difficult going forward. We are relying on additional funding to meet these new costs.
“Eighty per cent of our occupancy in the county comes from local authority placements. If there’s a shortfall, families might need to provide additional voluntary contributions.”
National funding crisis
CFW has calculated that the care sector in Wales faces a £150 million funding gap due to Budget measures, including a 1.2% rise in employer National Insurance contributions, a cut to the Secondary Threshold to £5,000, and a 5% increase in the Real Living Wage to £12.60.
Mario Kreft MBE said: “It represents a 37% increase in employer NIC for a member of staff earning £25,000 a year. This is effectively a tax on publicly funded care and on working people, which will ultimately impact families.”
Mr Davies echoed these concerns, adding: “We’ve discussed funding issues with local authorities, but they don’t have the money either. It’s going to have to come from the Welsh Government and Westminster.”
Pictured: Sunset West Care Homes group managing director Mike Davies says Budget measures will hit care homes hard (Pic: Sunset/Herald)
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