Cornwall Group Chairman, Mark Mitchell, has appeared on regional BBC Spotlight, sharing his valuable insights into the significant economic challenges currently facing UK glass and glazing businesses.
Speaking at Cornwall Glass’ St Austell site, Mark discussed the implications of April’s increases in minimum wage and National Insurance contributions, for employers.
“The combined effect of both policies for us is around £60,000 in additional expenditure each month,” he said. “Three years ago, our energy costs were about £80,000 a month for our business, and now they are approaching £200,000 a month. They’re scary figures.”
Detailing the extensive financial pressures affecting all aspects of business, Mark continued:
“They’re real increases; from your waste disposal, to the paper that you put in your photocopier, to – crucially for us, – the price of glass.
“The biggest overheads for most businesses are its people and then its property. Business rates are beginning to creep up again, alongside employment costs. So, it’s coming at us from all directions, and it is incredibly challenging.”
Despite these seemingly relentless hurdles, a highly impressive, multi-million-pound investment programme continues at Cornwall Group, which recently installed the first of three, state-of-the-art, Glaston Tempering Furnaces at Birmingham-based Forward Glass, recently acquired by the Group. The new furnace will reduce electricity consumption by approximately 299,984 kWh per year and cut CO2e by an estimated 62.1 tonnes of annually.
“We’re navigating a constant storm of unpredictability and it’s not easy to keep costs down and deliver high-quality products under those circumstances”, said Mark.
“But our customers need to be able to plan for growth with confidence, and that’s why we’re investing now, to improve efficiency and reduce operational costs, and make sure we’re ready and waiting for our customers when the economic tide turns.”
