SPORTS AND LEISURE SECTOR
Prices remain stable, and the UK-India trade deal should benefit us, though its start date is unclear. We import heavily from India, with low duties on equestrian gear but higher on footwear and clothing. Europe is our weakest market after moving away from sales agents due to recruitment challenges. We’ve now hired a Dutch salesperson, possibly leading to more hires in Europe. In the US, despite July price rises from tariffs, business stayed strong with no rush of orders. The new Indian tariff from 17 September means another price increase, but US consumers seem unfazed, likely because all importers face the same costs.
DEFENCE SECTOR
Funding shortages and lack of a clear plan continue to hold back UK Defence, with no new domestic funding before 2027. Growth comes from exporters, while domestic suppliers struggled early in the year. Labour’s Defence Reform stalled after all shortlisted candidates for National Armaments Director withdrew. The new Defence Industrial Strategy focuses on skills, UK SME support, easing export red tape, and six new munitions factories. Geopolitical tensions in the Middle East and Russia-Ukraine remain uncertain. Despite rail strikes and protests, the recent DSEI event in London was well attended and successful.
CONSTRUCTION SECTOR
The industry faces challenges including lack of respect for diverse career paths beyond traditional trades. The Building Safety Act will increase demand for training. Planning delays persist despite government efforts, with biodiversity net gain adding complexity. Banks remain cautious, limiting lending, and rising Capital Gains Tax discourages landowners from selling.
MANUFACTURING SECTOR
As of September 2025, industry reports show UK construction output has declined for the eighth month but at a slower rate. New projects and employment are down, with optimism at its lowest since late 2022. Housing and civil engineering particularly affected, though supply conditions improved due to weak demand. Some companies report job cuts and recruitment freeze to manage rising payroll costs. At REHAU, although some commercial project face delays due to market conditions, enquiries for innovative energy-efficient solutions are rising in response to long term higher energy costs. The project pipeline remains healthy but mixed by sector. Overall, uncertainty and cautious spending persist.
EDUCATION SECTOR
Skills provision is split nationally, with the Department for Education responsible for 16-18-year-olds. Mixed-age classrooms cause challenges. The West Midlands benefits from Technical Excellence colleges like Dudley College, and five new defence colleges were recently announced. Locally, recruitment and sixth form enrolment are close to final, with numbers 240 above target and 350 up on last year, though expected to drop. 160 students study construction and engineering, with 750 resitting exams.
LEGAL SECTOR
The legal market remains strong, with the usual summer slowdown returning to pre-COVID levels except for active mergers and acquisitions. Interest in defence sector access is rising from various industries. Corporate work and private equity investment stay robust, with many small firms seeking private equity. International recruitment grows despite legislative changes. Tribunal delays mean fewer claims, while private wealth enquiries increase due to inheritance and capital gains tax concerns.
RENEWABLES SECTOR
The renewables sector is doing well, with technological advances improving efficiency and reducing costs. Focus on integration benefits homeowners and businesses. Energy providers now offer more tariff options, increasing consumer choice. Heat pump enquiries are strong, and locally, commercial and domestic agriculture demand has risen significantly.