Engineering & Assembly Chapter April 2019

Engineering & Assembly Chapter

Contents

1. Introduction ...... 1 2. A Framework for Identifying Growth Industries in the Sector ...... 4 3. Engineering & Assembly Sector Specialisms ...... 7 4. Business Stock ...... 8 5. Labour Market ...... 11 6. Sub-Sectors ...... 12 7. Common themes and emerging priorities… ...... 26 Appendices ...... 27

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1. Introduction

Definition Engineering refers to the branch of science and technology primarily concerned with the design, manufacture and use of components, machines and structures. Assembly is the process of combining manufactured parts using advanced processes to form a completed product of higher value. Productivity Transition Aims

Sector Overview Engineering & Assembly is responsible for a workforce of almost 1 million people in employed across 62,000 VAT-registered businesses. The sector was worth an estimated £69.1 billion in 2017, reporting consistent annual growth since 2013. Figure 1 illustrates the steady rise in the ‘real’ adjusted value (at 2016 prices) of the Engineering & Assembly sector for England since 2009. Locally, the sector accounts for over 25,000 jobs and represents 6.1% of total employment across the sub-region. Only Lancashire LEP (6.7%) and the North East LEP (6.4%) have a greater concentration of employment within this sector across the Northern Powerhouse.

Figure 1: Engineering & Assembly England chained volume measures in 2016 £, 2007- 2017

Source: Office for National Statistics (ONS), 2018

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The local definition of ‘Engineering & Assembly’ for the purposes of the Humber Local Industry Strategy (LIS) is provided in Appendix A and includes the less energy-intensive production processes within the manufacturing sector. The manufacture of wood; furniture; metal products; electrical equipment; machinery; motor vehicles and transport equipment are broadly included within this classification, which collectively are generally better represented in the north of England compared to the national average.

Comparative advantage The Humber sub-region demonstrates significant overall strength in the Engineering & Assembly sector based on employment base. A definition used for Location Quotients (LQ) in this report is included in Appendix B.

Figure 2: Comparative advantage in Engineering & Assembly across the Humber (2017)

Humber

1.66 Y&H England 1.27 1.00

Source: Derived from Humber LIS sector definition and Business Register and Employment Survey (BRES), 2018

Employment in the Engineering & Assembly sector is most strongly represented in the East Riding of and . Each local authority has individual specialisms in specific industries, but collectively over one-fifth of total employment in the sector (21.6%) across the region is located within the Humber sub-region.

Figure 3: Engineering & Assembly Sector Overview

Geography Employment % of total Location employment Quotient 9,500 7.5% 2.00 Kingston upon Hull 9,000 6.7% 1.80 North East Lincolnshire 1,875 2.7% 0.72 North Lincolnshire 4,750 6.3% 1.70 Humber 25,125 6.2% 1.66 Yorkshire & The Humber 116,500 4.7% 1.27 England 992,000 3.7% -

Source: BRES, 2017. Humber figures calculated from combined total of authorities and BRES baseline employment

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Employment base The map below illustrates the employment base concentrations within the Engineering & Assembly across the Humber. Key locations for major employers include Road (Hull); Carnaby Industrial Estate; Cottingham; Brough; and Howdendyke on the north bank, and Barton upon Humber and Normanby Enterprise Park, near Scunthorpe on the south bank of the Humber.

Figure 4: Engineering & Assembly employment concentrations across the Humber

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2. A Framework for Identifying Growth Industries in the Sector

This section introduces a simple framework to analyse the relationship between employment change and sector specialisms (quantified as a Location Quotient, LQ) within Engineering & Assembly, which accounts for 25,000 jobs across the Humber. Each industry within the sector is categorised as one of four types in Figure 5 below.

Figure 5: Shift in employment and specialisms across the Humber (2010-2017)

Source: Derived from Humber LIS sector definition and Business Register and Employment Survey (BRES), 2017

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The table below sets out a definition to determine growth and mature industries within the sector.

Quadrant (category) Definition Shrinking LQ and decreasing Fall in employment by at least 1.0% of employment sector Shrinking LQ and increasing employment Over 0.75 LQ; Growing LQ and decreasing employment Total employment at least 1.0% of sector Growing LQ and growing employment Rise in employment by at least 1.0% of sector

This definition was applied to employment statistics published by the Office for National Statistics (ONS) in the Business Register and Employment Survey (BRES) to identify the industries in Figure 6 below. Collectively these ‘mature’ and ‘growth’ industries account for two-thirds of employment within the Engineering & Assembly sector.

Figure 6: Growth and mature industries across the Humber (2010-2017)

Growth engineering industries 31 Furniture 16 Wood & wood products 25.1 Structural metals products 25.6 Treatment & coating of metals, machinery 28.11 Engines & turbines, except aircraft, vehicles & cycles 25.99 Other fabricated metal products 28.9 Other special-purpose machinery

Mature engineering industries 29 Motor vehicles, trailers and semi-trailers 30 Other transport equipment 28.2 Other general-purpose machinery 25.21 Central heating radiators and boilers

Source: Derived from Humber LIS sector definition and Business Register and Employment Survey (BRES), 2017

Growth engineering sectors account for an additional 2,630 jobs across the Humber in 2017 compared to 2010, which represents growth of 37.4% over the period. The manufacture of wood products (16) and engines & turbines (28.11) in particular have bucked the national trend, supporting a further 2,600 jobs.

Conversely, the manufacture of motor vehicles reported a minor decrease in employment compared to strong growth nationally (up to 2017), though it should be noted that this definition accounts for the caravan industry locally and tends to exhibit vastly different characteristics from the motor industry overall.

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Figure 7: Employment change in growth engineering industries (2010-2017)

Source: Derived from Humber LIS sector definition and Business Register and Employment Survey (BRES), 2017

The graph below illustrates the steady increase in the (balanced) regional gross value added current price estimates for mature and growth industries within Engineering & Assembly.

Figure 8: Regional GVA (Balanced) for mature and growth industries, 2010-2017

Source: Office for National Statistics (ONS), 2018

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3. Engineering & Assembly Sector Specialisms

Manufacture of wood & wood products - includes the manufacture of timber, plywood, veneers, wooden containers, wooden flooring, trusses, and prefabricated wooden buildings.

Humber 3.96 Y&H ENG 1.40 1.00

Manufacture of fabricated metal products - includes the manufacture of ‘pure’ metal products (such as parts, containers and structures), usually with a static, immovable function.

Humber Y&H 1.91 1.76 ENG 1.00

Manufacture of machinery & equipment - includes the manufacture of machinery that act independently on materials mechanically, thermally, perform operations or apply force.

Y&H Humber 1.76 1.33 ENG 1.00

Manufacture of motor vehicles & trailers - includes the manufacture of motor vehicles for transporting passengers or freight, in addition to parts and accessories.

Humber 1.42 ENG Y&H 1.00 0.74

Manufacture of furniture - includes the design and manufacture of furniture and related products of any material except stone, concrete and ceramic. Humber 4.37 Y&H 2.60 ENG 1.00

Source: UK Standard Industrial Classification of Economic Activities 2007, Office for National Statistics (ONS), 2009

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4. Business Stock

Business stock The map below shows the density of Engineering & Assembly businesses by Middle Super Output Area (MSOA), a statistical geography developed by the Office for National Statistics (ONS).

Figure 9: Engineering & Assembly business stock concentration across the Humber

This map shows the significant concentration of businesses on the north bank of the Humber, principally along the industrial estates that flank the A63 in Kingston upon Hull. This is traditionally an area of industrial production and the map highlights that Engineering & Assembly retains a strong presence in these locations. There are also concentrations located on former airfield sites across parts of the Yorkshire Wolds and industrial estates to the north of both Scunthorpe and Grimsby.

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Figure 10: Engineering & Assembly VAT-registered business stock by size band

Geography Total Number of employees Micro Small Medium Large (0-9) (10-49) (50-249) (0-9) East Riding of Yorkshire 450 345 (76.7%) 75 (16.7%) 20 (4.4%) 5 (1.1%) Kingston upon Hull 340 200 (58.8%) 110 (32.4%) 20 (5.9%) 5 (1.5%) North East Lincolnshire 170 135 (79.4%) 30 (17.6%) 5 (2.9%) 0 (0.0%) North Lincolnshire 200 200 (77.5%) 155 (17.5%) 5 (2.5%) 5 (2.5%) Humber 1,165 840 (72.1%) 255 (21.9%) 55 (4.7%) 15 (1.3%) Yorkshire & The Humber 6,830 4,960 (72.6%) 1,430 (20.9%) 385 (5.6%) 55 (0.8%) England 62,285 47,705 (76.6%) 11,285 2,875 (4.6%) 420 (0.7%) (18.1%)

Source: IDBR, 2018. Figures may not sum due to rounding.

The table above shows the breakdown of VAT-registered businesses by size. Overall, the proportion of small, medium-sized and large businesses are better represented across the Humber than the national average, particularly in Kingston upon Hull. Figure 11 below illustrates the fluctuating change in the number of businesses in the sector between 2010 and 2018, though total stock was 3.3% lower in 2018 despite strong employment growth over the period.

Figure 11: Engineering & Assembly VAT-registered business stock (2010-2018)

Source: IDBR, 2018

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Figure 12: Largest local employers operating within the Engineering & Assembly sector

Fenner Group Wren Kitchens Swift Group Barton-Upon-Humber Cottingham Machining Manufacture of other furniture Manufacture of caravans (25620) (31090) (29203)

Willerby Limited Siemens Gamesa Renewables Joinery Group Hull Hull Howden Manufacture of caravans (29203) Manufacture of engines/turbines Manufacture and retail of (28110) furniture (31090)

Ideal Boilers Lebus Upholstery ABI (UK) Hessle Scunthorpe Manufacture of boilers Manufacture of other furniture Manufacture of leisure homes (25210) (31090) (32900)

JZ Flowers Walker Modular Limited Paneltex Limited North Cave Hull Hessle Packaging of fresh flowers Manufacture of modular bathroom Manufacture of relocatable cold (32990) pods (32990) units (29201)

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5. Labour Market

A regional scan of jobs advertised in the Humber from February 2018 to February 2019 revealed that over 46,500 jobs were advertised in the area. Of these advertised roles, five key areas have been identified with links to the engineering and assembly sector, as shown in the table below.

Figure 14: Regional scan of job roles advertised linked to engineering and assembly sector

Job role advertised Number of jobs listed Managers and proprietors in other services 850 Engineering technicians 774 Science, engineering and production technicians 655 Engineering professionals 461 Production managers and directors in manufacturing 455

Source: Labour Insight, February 2019

Within the 2,800 engineering jobs advertised in the Humber area, mechanical engineer is the most commonly advertised with over 400 postings. Other relevant categories of role include maintenance, repair and installation, though the majority of jobs posted within this category are linked to automotive services. However, 473 maintenance technicians were advertised, linking to the sector.

Log On Move On (LOMO) is a portal for 14 to 16 year olds in education institutions to access and apply for further education courses. When considered in the context of engineering and assembly, the system suggests that there were 27 providers, offering 221 courses. The portal picked up 453 applicants to these courses, however, applicants can apply for courses in a number of different way and as a consequence the result this is not an accurate reflection of application numbers. Additionally, the system covers only the north bank authorities of Hull and East Riding and not all schools in these areas use the system. However, this information can begin to shape understanding of skills provision in the sector.

The three top courses for applications were a level 3 engineering course at Hull College, BTEC level 3 extended diploma in engineering at Wilberforce College and level 2 certificate in engineering at Hull College. The courses that generate the greatest interest within the sector through LOMO are also Hull based with two qualifications in engineering and one in electrical maintenance. However, this does not prove that take-up of these courses is sufficient to meet the demands of the industry.

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6. Sub-Sectors

Manufacture of wood & wood products 210 VAT-registered businesses; 3,500 jobs; Humber LQ 3.96 Strong representation in: Kingston upon Hull, East Riding of Yorkshire, North Lincolnshire Specialisms: Manufacture of other builders' carpentry and joinery

Sector overview The manufacture of wood and wood products is a growing industry. As house building increases, timber products are required for house building, domestic furniture and domestic structures.1 Wood can be grown, harvested and milled in the UK, however, the majority of the nation’s wood is imported from Scandinavia and the Baltic States.2

Market trends The growth of the residential market fuels a demand for cabinetry and joinery. A significant market trend is in an increasing consumer demand for natural, sustainable and renewable products. There is also a market shift to low impact buildings, often made of wood and composites, offering opportunities for the industry in future.3 Innovation in the sector

Technology Technology is increasing the quality and precision of the industry. Through ultrasound and laser scanners wood quality and precision milling can be done efficiently.

Lean manufacturing Lean manufacturing techniques make a significant difference in this traditional sector. Increased quality control, labour productivity and efficiency contribute to a circular economy in the industry and maximising efficiency.

What are businesses doing locally?  Tricoya Tricoya produce specialist, ‘gold standard’ MDF, which is extremely durable and stable.  Yorkshire Timber Engineering The company produce high quality, low weight timber joists, providing increased design flexibility and stability. Additionally timber built frames for housing, increasing the speed and ease of house building.

1 Structural Timber Association, Annual survey of UK structural timber markets, market report 2016, 10/2017. 2 Timber trade federation, growing the use of wood. 3 New Statesman, why wood is making a comeback in house building, 13/03/2018.

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Challenges  Brexit provides challenges for importing and exporting in the industry.  Sustainability is challenging as timber is a slow growth product.

Opportunities  Low impact buildings are a growing market, as well as offsite housebuilding.  Societal demand for natural and sustainable products.

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Manufacture of fabricated metal products 485 VAT-registered businesses, 7,900 jobs, Humber LQ 1.91 Strong representation in: Kingston upon Hull; East Riding of Yorkshire; North East Lincolnshire; North Lincolnshire Specialisms:  Structural metal products  Central heating & radiators  Other tanks & reservoirs  Treatment & coating of metals  Steel drums & similar containers

Sector Overview Metal fabrication is the process used to shape metal into components or end products. This is achieved using a range of techniques including reduction and shaping processes, welding and machining. Fabrication projects often require multiple steps even to produce relatively simple products.4

4 Value Line, industrial overview: metal fabricating.

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The manufacture of fabricated metal products was worth an estimated £17.5 billion to the UK economy in 2017

Metal fabrication primarily falls into three categories:  Commercial: goods designed for use by consumers such as appliances and cars.  Industrial: components that are used in other equipment, which may in turn become commercial products.  Structural: metalworking that produces the components used in the building process.5 The metal fabrication process often involves three broad steps starting with design, followed by fabrication of the required parts, and completed with finishing and assembly.  Many companies in the sector use Computer Aided Design (CAD) and/or Computer Aided Manufacturing (CAM) software during the design process, in addition to CNC tools (Computerised Numerical Controls) for the fabrication stage.6

The versatility of the tools and processes used in metal fabrication result in it being applied across a wide range of industries, including many that strongly represented across the Humber. •  Aerospace;  Agricultural machinery;  Automotive;  Construction  Medical equipment;  Original equipment manufacturers;  Recreational vehicles;  Renewable energy.

The sector is characterised by an overrepresentation of micro-sized businesses that may only offer a limited range of services to meet demand within the broader supply chain. Research conducted across the Humber suggests that medium-sized businesses tend to add scale by offering dedicated services in each of the three key stages of the metal fabrication process, yet specialising within a defined range of industries.

Market trends The value of the metal fabrication industry has grown annually since 2010 across the Yorkshire & Humber region by £546 million (42.6%) to be worth an estimated total of £1.8 billion in 2017. Information Technology is playing an increasingly critical role on the metal fabrication industry. Outdated shop equipment and ICT hardware and software limit business agility to adapt to shifting customer expectations and their flexibility to handle new materials.

5 AP news, Global Sheet Metal Fabrication Services Market Analysis & Trends 2015-2017 & Industry Forecast 2018-2027, 04/02/2019. 6 Infiniti research, trends in metal fabrication industry. 15

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Improved resource planning and operating with more streamlined production line processes and is also of increasing interest to businesses in the sector in order to remain competitive.

Innovation in the sector7 1. Automation Robotics are increasing in capabilities and application on the industry floor. There is the potential for selected work processes to be controlled remotely and streamlined as necessary. This technology will also likely create more positions for highly skilled technicians.

2. 3D Printing 3D printing technology is advancing quickly using an increasing range of materials including ABS plastic, polylactic acid (PLA), polyamide (nylon), epoxy resins, silver, titanium, steel, and polycarbonate. This technology is arguably the future of the metal fabrication industry and offers great potential for improved efficiency, output and customisation, as well as reduced waste.

Examples of businesses operating across the Humber  Ideal Boilers (Hull)  Blackrow Engineering (Immingham)  DAM Structures ()  C.F. Struthers (Hull)  Delta Engineering Group (Immingham)  Phoenix Building Systems (Hull)  Crowle Wharf Engineers (Crowle)  Yorkshire Marine Containers (Catfoss)

Challenges8  Fluctuations in commodity pricing.  Labour supply to meet both replacement demand and also to satisfy technical skill requirements.  Rigorous compliance standards.

Opportunities  Emerging markets and scope for ‘reshoring’ as costs and wages rise in fast-growing developing nations.  Significant growth in business stock and employment locally offer opportunities to enter new supply chains.

7 Mainstay Manufacturing, accessed 19/02/2019 8 ABAS, Innovation vital as metal fabricators face new challenges, 26/01/2017

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Manufacture of machinery & equipment 140 VAT-registered businesses, 3,300 jobs, Humber LQ 1.33 Strong representation in: Kingston upon Hull; East Riding of Yorkshire Specialisms:  Engines & turbines (except aircraft, vehicles & cycles)  Other taps & valves  Agricultural & forestry machinery  Other special purpose machinery

Sector overview The machinery and equipment sector is a cyclical, capital-intensive sector. It serves a broad range of markets including agriculture, construction, energy, infrastructure and transportation. Due to the breadth of industries supplied, products can range from ploughs, engines, compressors, generators, turbines, hydraulics, gearing and cranes. Almost every country has industries that require machines and equipment, resulting in a globalised industry.9

Production is flexible, as the sector is susceptible to long-run business cycles, although this acts as a buffer against short term market variations. It is an innovative sector, designing machines for every industry and increasing productivity. 10

Market trends Three main market trends can be identified:

1. Internet of Things (IoT) Increasingly technology such as virtual reality and smart products are being used. This allows increased revenue through new services, smart factories and digital supply chains.11

2. Business 2 Consumer (B2C) The traditional manufacturing industry is moving from a business to business model to a business to customer model. This shortening of the supply chain increases profit and allows greater customer engagement. It also allows for alternative business models, such as pay-per-use.12

3. Servitisation Servitisation is where manufacturing firms developing services and solutions that supplement their traditional products. This often involves creating a customer journey. 13

9 Value Line, Industry Overview. 10 Euler Hermes Global, machinery and equipment, 11 Strategy&, Industrial Manufacturing trends 2018-2019. 12 Hitachi Solutions, 10 trends that will dominate manufacturing in 2019. 13 Digitalist Magazine, Components of Change: anticipated top tends in industrial manufacturing, 05/10/17. 17

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Innovation in the sector

1. Process technology Innovative production processes using technology such as 3D printers and highly accurate sensors are modernising the production process in the sector. Precision design and engineering is increases the quality of goods in the sector.

1. End user technology Innovations in end user technology to produce smart products for customers is growing the after sales services in the sector. Specialist architecture, engineering and logistics services can be tailored to the end user, increasing productivity through big data.

2. Product development Product development techniques are an area of innovation in the sector. Advanced technologies in the manufacture process allow greater use of ‘big data’ analytical insights. This can be used to streamline the production process.

What are businesses doing locally?

 Sumo Sumo are a specialist in the design and manufacture of innovative farming machinery. Using high quality materials and techniques, they invent farming solutions for customers around the world to improve productivity. 14

 Clean 6 Clean 6 are a start-up, specialising in small scale waste management and energy production. Through a horizontally designed incinerator, that can fire up to 1,700 degrees Celsius and be easily transported, small and medium businesses can autonomously incinerate waste and produce energy with a minimal impact on the environment. 15

 Heald Heald specialise in permanent and temporary perimeter security equipment. They operate to the highest standards in their field and have won several awards for innovation. Their most popular products are moving bollards, raising security barriers and road blockers, all of which have very small penetration depths, making them easy to install anywhere.16

14 www.sumo1.com/ 15 www.clean6.co/ 16 www.heald.uk.com

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 Arxell Arxell specialise in concrete drying technologies that are faster, and more eco- friendly than standard industrial practices. The Arxell Drying System is a focussed drying technology that concentrates drying air on the area where it is needed. Arxell create innovative drying solutions and claim their patented technology is set to revolutionise the drying industry.17

Challenges  Increasing demand for technically skilled workers.  Vulnerable to changing global economic trends, because of international market.

Opportunities  Smaller supply chains are preferred by consumers.  Lean production and an increasing focus on productivity great space for future innovation.

17 www.arxell.com 19

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Manufacture of motor vehicles & trailers 65 VAT-registered businesses, 3,000 jobs, Humber LQ 1.42 Strong representation in: Kingston upon Hull; East Riding of Yorkshire Specialisms:  Trailers & semi-trailers  Caravans

Sector overview The Manufacture of motor vehicles and trailers in the Humber primarily focuses on the production of trailer caravans, static caravans, holiday homes and motor homes. The caravan industry is especially prevalent in the East Riding of Yorkshire. Caravans are produced through modular building techniques, using materials such as wood, plastic and interior furnishings.

The caravan industry is worth £6bn per year to the UK economy. The national caravan & motorhome industry employs over 100,000 people, and the sector has 1.7 million customers. 18

The Caravan Club leisure vehicle survey found that the caravan industry is highly concentrated. For example, in the production of motorhomes, 10 manufacturers, represent 75% of the market. 19

Market trends Three main market trends can be identified in relation to the caravan sector.

1. Growing market The increasing number of ‘staycations’ in the UK and a shift to low-fuss low-cost holidays that allow customers easily access to nature have assisted the caravan industry. 20

2. Changing demographic The caravan market is widening beyond its traditional audience. Using innovative designs and creating simple, affordable but luxurious holidays, the market is capturing a younger urban demographic by offering a high quality escape to the country. Additionally, the core market for the sector is an aging demographic encouraging more accessible designs.21

18 NCC, Industry Statistics. 19 Caravan & Motorhome Club, 2016 leisure vehicle survey, 05/10/2016. 20 Mintel, camping and caravanning, 04/2016. 21 The Drum, from pensioners to hipsters, 06/06/2017.

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3. Abundance of high quality used stock The consistent improvement of all types of product in the caravan sector since it’s popularisation in the 1960’s has created significant quality in the market. Static caravans, for example, have central heating, double glazing and Wifi. They are as advanced as many people’s homes. As a result, there is a reduced incentive to purchase new caravans because the second hand market is so strong.22

Based on broad industrial research, innovation in the sector can be grouped as:

1. Aerodynamics Designs of touring caravans and motor homes are becoming increasingly light and aerodynamic, increasing fuel efficiency and making towing easier.

2. Building methods Building methods are constantly being updated. Caravans are designed to be fully integrated with their chassis and lightweight, high quality building materials and techniques improve the products.

3. Design Caravan design is adjusting and changing to meet the needs of its core market. Easier access, simple to use controls and integrated technologies meet the changing needs of the market.

4. Future of modular The growth of modular buildings, often in the form of holiday lodges, hotels and offices is an expanding area of innovation for the sector. This is especially significant, as the sector and the Swift Group, Willerby Homes and ABI (UK) already targeting this growing market.

What are businesses doing locally?  Swift Group Swift’s ‘pure innovation’ aim and vision to have innovative products means it undertakes significant research and innovation work. Swift innovate through their intelligent construction systems, connect direct aftersales service and built in technology.23  Willerby Homes Willerby focus their innovation on bespoke modular buildings through ‘Willerby Innovation’. 24  Walker Modular Walker Modular specialise in modular built, self-contained, kitchen and bathroom pods. These are commonly used in the building of new hotels.25

22 Glass business, holiday home market update, 12/2018 23 https://www.swiftgroup.co.uk/ (accessed: Feb 2019) 24 https://www.willerby.com/ (accessed: Feb 2019)

25 https://www.walkermodular.com/ (accessed: Feb 2019) 21

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 WHSV WHSV are a support vehicles company, creating mobile motorsport, hospitality and exhibition spaces. Working with a host of high-end clients to provide bespoke, purpose built trailers to cover many different client requirements.26

Challenges  Quality is very high is second hand market.  Market is saturated, causing accelerating decreasing return on investment.

Opportunities  Growth and necessity of modular buildings.  Holiday lodges are increasing in popularity and have positive image.

26 http://www.whsv.co.uk/ (accessed: Feb 2019)

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Manufacture of furniture 85 VAT-registered businesses, 5,000 jobs, Humber LQ 4.37 Strong representation in: East Riding of Yorkshire; North Lincolnshire Specialisms:  Office & shop furniture  Kitchen furniture  Other furniture

Sector overview The manufacture of furniture is a broad sector, mainly using metal, wood, plastic and glass. The end use of produces is spilt into residential and commercial. Residential can include kitchen and dining, living rooms, bedrooms and outdoor. Commercial includes offices, shops and hotels.27

As a result the sector is varied and contains many sub-sectors. The furniture industry is has no traditional regional home.28 The Humber produces a cross section of the sector, with examples of kitchens, office and domestic furniture.

Market trends  There is a growing trend in renting and smaller houses. This drives a market demand for smaller, more versatile and affordable furniture.29  The domestication of institutions such as offices and hospitals is driving the growth of furniture use in these settings. Additionally, the growth in home working and telecommuting is encouraging sales of office furniture in domestic settings.30  As populations grow in the UK and beyond, the number of homes and residential properties increases. This drives growth for the sector.31  There is a significant divide between the market demand from the older generation, requiring high quality ergonomic designs, and younger customers. Younger customers prefer versatile, affordable and multi-purpose furniture. There is also an increasing demand for sustainably sources and fair-trade products. 32

Innovation in the sector 1. Demographics Many kitchen and furniture designs are tailored to the needs of the consumer. For example, older customers can take advantage of boil taps and innovations to improve the accessibility of their homes.

27 GVR, industry insights, 12/2018. 28 British Furniture Confederation, about the industry. 29 CMTC, challenges and trends facing furniture manufacturers, 29/11/2017. 30 GVR, industry insights, 12/2018. 31 Ibis, Kitchen Furniture Manufacturing, -08/2018. 32 CMTC, challenges and trends facing furniture manufacturers, 29/11/2017. 23

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2. Internet of Things (IoT) The ‘internet of things’ is an area of innovation in this sector. Kitchens that can be controlled from an app, or furniture that monitors the wellbeing of its user.

3. Sustainability The finite resources of the planet are encouraging companies to think innovatively about the sources of their materials and the use of waste products.

4. Augmented Reality Augmented reality allows customers to see furniture in a space before it is purchased, allowing the user to better visualise a product before purchasing it.

What are businesses doing locally?

 Wren Kitchens Wren Kitchens are making use of 3D modelling, innovative storage solutions and unique manufacturing processes. 25% of their materials are locally sourced and 45% comes from local sawmills. The waste products from the manufacturing processes are utilised in agricultural and rural projects. 33  Howdens Joinery Howdens Joinery innovate through producing robust connected appliances. Howdens offer a ‘Cloud of Things’ Iot Gateway as an integral part of their smart kitchen solutions.34  Legend Furniture Legend custom build, handmade furniture based on either a musical, urban or fantasy themes.35  Elite Furniture Elite manufacturer contemporary & adaptive office furniture, workstations & seating solutions that contribute to employee wellbeing and productive office environments.36  Hawk Furniture Hawk’s contemporary office furniture such as indoor picnic tables and multiple monitor workspaces. They also make electric height adjustable workspaces that contribute to a healthy lifestyle through IoT technology. 37  Kinetic Furniture Kinetic specialise in the manufacture of laboratory furniture and educational furniture with clients including Cancer Research UK and Aston Martin.38

33 https://www.wrenkitchens.com/ (accessed: Feb 2019) 34 https://www.howdens.com/ (accessed: Feb 2019) 35 https://www.legend-furniture.co.uk/ (accessed: Feb 2019) 36 https://www.elite-furniture.co.uk/ (accessed: Feb 2019) 37 www.hawkfurniture.co.uk (accessed: Feb 2019) 38 www.kineticlaboratories.co.uk (accessed: Feb 2019)

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Challenges  Long shelve life of products limits the number of available customers.  Limited scope for innovation in basic products, as they often fulfil a standard and recognised need.

Opportunities  There is potential for a greater number of exports across the sector.  Changing demographics opens new design markets for both modern and traditional designs in the sector.

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7. Common themes and emerging priorities…

To follow …

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Appendices

APPENDIX A: Engineering and Assembly Sector Classification

16 Manufacture of wood and of products of wood and cork, except furniture; manufacture of articles of straw and plaiting materials 24.2 Manufacture of tubes, pipes, hollow profiles and related fittings, of steel 25.1 Manufacture of structural metal products 25.21 Manufacture of central heating radiators and boilers 25.29 Manufacture of other tanks, reservoirs and containers of metal 25.3 Manufacture of steam generators, except central heating hot water boilers 25.4 Manufacture of weapons and ammunition 25.5 Forging, pressing, stamping and roll-forming of metal; powder metallurgy 25.6 Treatment and coating of metals; machining 25.7 Manufacture of cutlery, tools and general hardware 25.91 Manufacture of steel drums and similar containers 25.93 Manufacture of wire products, chain and springs 25.94 Manufacture of fasteners and screw machine products 25.99 Manufacture of other fabricated metal products n.e.c. 26.5 Manufacture of instruments and appliances for measuring, testing and navigation; watches and clocks 26.6 Manufacture of irradiation, electromedical and electrotherapeutic equipment 26.7 Manufacture of optical instruments and photographic equipment 26.8 Manufacture of magnetic and optical media 27.1 Manufacture of electric motors, generators, transformers and electricity distribution and control apparatus 27.2 Manufacture of batteries and accumulators 27.31 Manufacture of fibre optic cables 27.33 Manufacture of wiring devices 27.4 Manufacture of electric lighting equipment 27.5 Manufacture of domestic appliances 27.9 Manufacture of other electrical equipment 28.11 Manufacture of engines and turbines, except aircraft, vehicle and cycle engines 28.12 Manufacture of fluid power equipment 28.13 Manufacture of other pumps and compressors 28.14 Manufacture of other taps and valves 28.15 Manufacture of bearings, gears, gearing and driving elements 28.2 Manufacture of other general-purpose machinery 28.3 Manufacture of agricultural and forestry machinery 28.4 Manufacture of metal forming machinery and machine tools 28.9 Manufacture of other special-purpose machinery 29 Manufacture of motor vehicles, trailers and semi-trailers 30 Manufacture of other transport equipment 31 Manufacture of furniture 32.5 Manufacture of medical and dental instruments and supplies 27

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32.99 Other manufacturing n.e.c.

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APPENDIX B: Definition of Location Quotients

The definition of a Location Quotient used in this report is taken from EMSI, a Labour Market Analytics company dedicated to improving the understanding of economic growth and prosperity.

A location quotient (which is usually abbreviated to LQ) is essentially a measure of concentration. England has been assigned an LQ of 1.0 and compares other regions to that constant. So if a particular industry has an LQ of <1.0 in a region, it means that industry has a low concentration in that region compared to England as a whole. In other words, the region is below average. An LQ of >1.0 means that the industry has a high concentration in the region.39

Adapted from Slane, R (2012), ‘What is Location Quotient? https://www.economicmodelling.co.uk/2012/11/28/what-is-location-quotient/

39 Slane, R (2012). Accessed in February 2019 at: https://www.economicmodelling.co.uk/2012/11/28/what-is-location-quotient/ 29

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APPENDIX C: Selected Business Database (source: MINT UK)

16: Manufacture of Wood & Wood Products

Company name Town Primary UK Trade description SIC (2007) code Bayram Timber North Ferriby 16100 The merchanting of timber. (Source: Jordans) Limited James E. Smith Hull 16100 A commercial timber importer and merchant. (Northern) Limited (Source: Jordans) Rocal Insulating Brigg 16210 Manufacture of veneer sheets and wood-based Panels Ltd. panels (Source: Jordans) Panelbond Limited Grimsby 16210 Manufacture of veneer sheets and wood-based panels (Source: Jordans) J.B. Timber Brough 16230 Manufacture of other builders' carpentry and Importers Limited joinery (Source: Jordans) SOL Specialist Hull 16230 Manufacture of other builders' carpentry and Manufacture Limited joinery (Source: Jordans)

W J Components Hull 16230 The supply of roof trusses, floor joists and timber Limited treatment. (Source: Jordans) Orca Building Ulceby 16230 Manufacture of other builders' carpentry and Products Limited joinery (Source: Jordans)

Yorkshire Timber Beverley 16230 Manufacture of other builders' carpentry and Engineering Limited joinery (Source: Jordans) Turner Timber 16230 Manufacture of other builders' carpentry and Engineering Limited joinery (Source: Jordans) Mipod Solutions Ltd Hull 16230

BWB Manufacturing Hull 16240 Manufacture of wooden containers (Source: Limited Jordans)

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25: Manufacture of Fabricated Metal Products

Company name Town Primary UK Trade description SIC (2007) code Britspace Modular Brough 25110 Design, manufacture and installation of modular Buildings Limited buildings. (Source: Jordans) Dam Structures Bridlington 25110 The manufacture of metal structures. (Source: Limited Jordans) Blackrow Grimsby 25110 Engineers operating mainly in the food industry. Engineering CO. (Source: Jordans) Limited C.F.Struthers Limited Hull 25110 Fabrication engineers. (Source: Jordans)

Delta Engineering Immingham 25110 The providing mechanical and electrical Group Limited engineering, plant maintenance construction. (Source: Jordans) Anglia Engineering Immingham 25110 The provision of machining and fabrication Solutions Limited engineering services. (Source: Jordans) Crowle Wharf Scunthorpe 25110 Manufacture of metal structures and parts of Engineers Limited structures (Source: Jordans) G.R.M. Engineering 25110 Manufacture of metal structures and parts of & Contract Services structures (Source: Jordans) Limited Fender Steel Limited Scunthorpe 25110 Manufacture of metal structures and parts of structures (Source: Jordans)

Pearlgreen Hull 25110 Manufacture of metal structures and parts of (Engineering) Ltd. structures (Source: Jordans) Parmac Engineering Hull 25110 Manufacture of metal structures and parts of Services Limited structures (Source: Jordans) Phoenix Hull Limited Hull 25110 Manufacture of metal structures and parts of structures (Source: Jordans) Phoenix Building Hull 25110 Manufacture of metal structures and parts of Systems Limited structures (Source: Jordans) Fox Precision Hull 25110 Precision engineering. (Source: Jordans) Engineering Ltd Ideal Boilers Limited Hull 25210 The manufacture and distribution of boilers. (Source: Jordans) Ideal Boilers Hull 25210 Boiler Manufacturers (Source: Market Location)

Yorkshire Marine Driffield 25290 Manufacture and repair of container equipment. Containers Limited (Source: Jordans)

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28: Manufacture of Machinery & Equipment

Company name Town Primary UK Trade description SIC (2007) code Senvion Goole 28110 Turbines and Parts Thereof Manufacturers (Source: Market Location) EVO Torque Beverley 28110 Diesel Engine Equipment and Services (Source: Market Location) GWS Engineers Scunthorpe 28110 Manufacture of engines and turbines, except Limited aircraft, vehicle and cycle engines (Source: Jordans) Tempest Diesels North Ferriby 28110 Manufacture of engines and turbines, except Limited aircraft, vehicle and cycle engines (Source: Jordans) TGB Turbine Hull 28110 Services Ltd Systemwash (UK) Goole 28120 Manufacture of fluid power equipment (Source: Limited Jordans) East Yorkshire Hull 28120 Manufacture of fluid power equipment (Source: Hydraulics Limited Jordans) The Water Hull 28120 Manufacture of fluid power equipment (Source: Hydraulics CO. Ltd Jordans) Becker U K Limited Hull 28131 Manufacture of pumps (Source: Jordans)

ERP Power Products Hull 28131 Manufacture of pumps (Source: Jordans) Limited Hydrocore Limited Beverley 28131 The manufacture of high pressure water mist fire suppressants. (Source: Jordans) Talium Limited Hessle 28131 Manufacture of pumps (Source: Jordans) Armak Ltd Hull 28131 The producer motors. (Source: Jordans)

Air Lines & Hull 28132 Manufacture of compressors (Source: Jordans) Compressors (Yorks) Limited Advanced Actuators Goole 28132 Hydraulic Equipment Manufacturers (Source: Market Location) Walker Modular Hull 28140 Bathroom Fixtures and Fittings - Manufacturers (Source: Market Location) Mira Showers North Ferriby 28140 Bathroom Fixtures and Fittings - Manufacturers (Source: Market Location) Wartsila Valves Brough 28140 The manufacture and supply of specialist valves Limited and control equipment for the oil, gas, marine and underground coal mining industries. (Source: Jordans) Team Valve & Grimsby 28140 Valves Manufacturers of (Source: Market Rotating Services Location) M & D Jenkins Hull 28140 Valves Manufacturers of (Source: Market Industrial Suppliers Location)

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Spiral Tech North Ferriby 28150 Manufacture of bearings, gears, gearing and Research UK Limited driving elements (Source: Jordans) Tramco Europe Hull 28220 Conveyor Belts and Systems (Source: Market Location) Windsor Materials Immingham 28220 Material Handling Equipment (Source: Market Handling Location) Pickerings Lifts Hessle 28220 Lift Manufacture of (Source: Market Location)

A & M Engineering Hull 28220 Manufacture of lifting and handling equipment (Hull) Limited (Source: Jordans) Winch Systems Hull 28220 Manufacture of lifting and handling equipment Limited (Source: Jordans) Romica Engineering Beverley 28220 Manufacture of lifting and handling equipment Limited (Source: Jordans) Pearson And Curtiss Hull 28220 Manufacture of lifting and handling equipment Limited (Source: Jordans) Panova Lifts Limited Hull 28220 Manufacture of lifting and handling equipment (Source: Jordans) Abbeywold Limited Driffield 28220 Manufacture of lifting and handling equipment (Source: Jordans) CSP Technology Ltd Scunthorpe 28230 Manufacture of office machinery and equipment (except computers and peripheral equipment) (Source: Jordans) North Sea Ventilation Hull 28250 General commercial activities. (Source: Jordans) Limited Leigh TEC Systems Goole 28250 Manufacture of non-domestic cooling and Limited ventilation equipment (Source: Jordans)

Frosty ICE Limited Barton-Upon- 28250 Manufacture of non-domestic cooling and Humber ventilation equipment (Source: Jordans) Neil Vessey (Storage Scunthorpe 28290 Manufacture of other general-purpose Tanks) Limited machinery n.e.c. (Source: Jordans) Braham And Dixon Hull 28290 Manufacture of other general-purpose (1985) Limited machinery n.e.c. (Source: Jordans) Food Machinery Hull 28290 Manufacture of other general-purpose Servicing Ltd machinery n.e.c. (Source: Jordans) Daco Solutions Beverley 28290 Mechanical designers, consultants and Limited manufacturers. (Source: Jordans) South Cave Tractors Brough 28290 Manufacture of other general-purpose Limited machinery n.e.c. (Source: Jordans) Thomas Hill Hull 28290 Manufacture of other general-purpose Engineering (Hull) machinery n.e.c. (Source: Jordans) Limited 4matic Design & Grimsby 28290 Manufacture of other general-purpose Manufacture Limited machinery n.e.c. (Source: Jordans) Jones Engineering Doncaster 28290 Manufacture of other general-purpose Manufacturing machinery n.e.c. (Source: Jordans) Limited Weightek Limited Hull 28290 Selling, maintaining and repairing weighing equipment. (Source: Jordans) ALF Kitching & Sons Scunthorpe 28302 Manufacture of agricultural and forestry Limited machinery (other than agricultural tractors) 33

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(Source: Jordans)

Easterby Trailers Bridlington 28302 Manufacture of agricultural and forestry Limited machinery (other than agricultural tractors) (Source: Jordans) Sumo UK Ltd. York 28302 Manufacture of agricultural and forestry machinery (other than agricultural tractors) (Source: Jordans) NRH Engineering York 28302 Manufacture of agricultural and forestry Limited machinery (other than agricultural tractors) (Source: Jordans) Superior Machines Driffield 28302 Manufacture of agricultural and forestry Ltd machinery (other than agricultural tractors) (Source: Jordans) Terratech Limited Cottingham 28302 Manufacture of agricultural and forestry machinery (other than agricultural tractors) (Source: Jordans) Blackrow Grimsby 28930 A group engaged in engineers and trading is Corporation Limited carried out through blacrow engineering co ltd and blackrow international ltd. (Source: Jordans) Holmes Catering York 28930 Restaurant and Hotel Equipment (Source: Equipment Solutions Market Location) Fritsch UK Limited Hull 28930 Manufacture of machinery for food, beverage and tobacco processing (Source: Jordans) Elite Engineering Grimsby 28930 Manufacture of machinery for food, beverage Solutions Limited and tobacco processing (Source: Jordans)

Turbo Systems Hull 28930 Manufacture of machinery for food, beverage Limited and tobacco processing (Source: Jordans) Apple Food Systems Hull 28930 Manufacture of machinery for food, beverage Limited and tobacco processing (Source: Jordans) P & H Precision Hull 28930 Manufacture of machinery for food, beverage Limited and tobacco processing (Source: Jordans) Cottingham Cottingham 28930 Manufacture of machinery for food, beverage Technical Services and tobacco processing (Source: Jordans) Limited API Food Equipment Hull 28930 Manufacture of machinery for food, beverage Limited and tobacco processing (Source: Jordans) Saduri Limited Hull 28930 Manufacture of machinery for food, beverage and tobacco processing (Source: Jordans) Nayati Cooking Ltd Hessle 28930 T.Freemantle Limited Scunthorpe 28950 Manufacture of machinery for paper and paperboard production (Source: Jordans) Daifuku Logan Ltd Hull 28990 The integration, design, manufacture and installation of airport baggage and materials handling systems. (Source: Jordans) The Monobuoy Scunthorpe 28990 Manufacture of special-purpose machinery. Company Ltd. (Source: Jordans)

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De Smet Rosedowns Hull 28990 The design and manufacture of screw presses, Limited press wearing parts and complete mills for the vegetable oil processing industry and the animal by-products industry. (Source: Jordans) Bonds Heavy Scunthorpe 28990 Die Casting Equipment and Services (Source: Castings Market Location) Services Machinery Immingham 28990 Industrial Machinery Suppliers and & Trucks Manufacturers (Source: Market Location) Citech Energy Hessle 28990 Design, manufacture and servicing of gas Recovery Solutions turbine waste heat recovery. (Source: Jordans) (UK) Ltd Castaway Cast Ulceby 28990 Die Casting Equipment and Services (Source: Products & Market Location) Woodware Alphacircle Grimsby 28990 Manufacture of other special-purpose machinery Engineering Limited n.e.c. (Source: Jordans) D. & D. Engineering Hull 28990 The manufacturing of specialist equipment. (Hull) Limited (Source: Jordans) Aldercote Limited Hull 28990 Manufacture of other special-purpose machinery n.e.c. (Source: Jordans) Heald Limited 28990 Manufacture of other special-purpose machinery n.e.c. (Source: Jordans) Hills of Hull Limited Hull 28990 Manufacture of other special-purpose machinery n.e.c. (Source: Jordans) Mimir Marine Limited Hull 28990 Manufacture of other special-purpose machinery n.e.c. (Source: Jordans) Breathe Safe Scunthorpe 28990 Manufacture of other special-purpose machinery International Limited n.e.c. (Source: Jordans) Arxell Limited 28990 Manufacture of other special-purpose machinery n.e.c. (Source: Jordans) Clean6 Ltd Goole 28990 Manufacture of other special-purpose machinery n.e.c. (Source: Jordans)

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29: Manufacture of Motor Vehicles & Trailers

Company name Town Primary UK Trade description SIC (2007) code Paneltex Limited Hull 29201 A group engaged in the manufacture of relocatable cold store units, refrigerated truck and trailer bodies and specialised vehicle bodies. (Source: Jordans) DCH Trading Limited York 29201 -

Penman MW Special Hull 29201 - Vehicles Limited Watson & Hunter York 29201 - Specialised Vehicles Limited Wraith Trailers Scunthorpe 29202 Trailers and Semi-Trailers (Source: Market Location) Graham Edwards York 29202 Manufacture of trailers and semi-trailers Trailers Limited (Source: Jordans) Somi Trailers Limited Scunthorpe 29202 Manufacture of trailers and semi-trailers (Source: Jordans) DRT Trailers Limited York 29202 Manufacture of trailers and semi-trailers (Source: Jordans) Swift Group Limited Cottingham 29203 The manufacture of touring caravans, motorhomes and holiday homes, and the servicing of their after sales requirements. (Source: Jordans) Willerby Limited Hull 29203 The manufacture and sale of caravan holiday homes. (Source: Jordans) Auto-Trail V.R. Grimsby 29203 The manufacture, sale and import of luxury Limited leisure vehicles, motor homes and caravans. (Source: Jordans) Coachman Caravan Hull 29203 The manufacture of quality touring caravans. Company Limited (Source: Jordans) Victory Leisure Hull 29203 The manufacture of caravans. (Source: Jordans) Homes Limited Carnaby Caravans Bridlington 29203 The manufacture of caravans. (Source: Jordans) Limited Delta Caravans Hull 29203 A group engaged in the manufacture and sale of Holdings Limited caravans. (Source: Jordans) Arronbrook Limited Hull 29203 Manufacture of caravans (Source: Jordans)

Compact Camper York 29203 Manufacture of caravans (Source: Jordans) Conversions Limited ABI (UK) Group Beverley 29203 The 31.08.17 accounts indicate that the Limited company is either dormant or no longer trades. (Source: Jordans) Normandy Holiday Grimsby 29203 Manufacture of caravans (Source: Jordans) Homes Limited

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Carabuild Leisure Beverley 29203 Manufacture of caravans (Source: Jordans) Homes Ltd Continental Holiday Hull 29203 Manufacture of caravans (Source: Jordans) Homes Limited Europa Caravans Hull 29203 Manufacture of caravans (Source: Jordans) Export Ltd

Deluxe Mobile Hull 29203 Manufacture of caravans (Source: Jordans) Homes Limited RM Leisure Homes Hull 29203 Manufacture of caravans (Source: Jordans) Limited

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31: Manufacture of Furniture

Company name Town Primary UK Trade description SIC (2007) code Elite Office Furniture Goole 31010 The manufacture of office furniture. (Source: (UK) Ltd. Jordans) Claughton Office North Ferriby 31010 Manufacture of office and shop furniture Equipment Limited (Source: Jordans) Hawk Furniture York 31010 Manufacture of office and shop furniture Limited (Source: Jordans) Routec (GB) Limited Beverley 31010 Manufacture of office and shop furniture (Source: Jordans) Johnson-French Driffield 31020 Manufacture of kitchen furniture (Source: Limited Jordans) Lebus Upholstery Scunthorpe 31090 A group engaged in the manufacture of Limited upholstered furniture for distribution to retail outlets in the UK and Ireland. (Source: Jordans) Sangwin Educational Hull 31090 The manufacture of educational furniture. Furniture Limited (Source: Jordans) Kingstown Furniture Hull 31090 The manufacture and supply of furniture. Limited (Source: Jordans) Turning Leaf Hessle 31090 Manufacture of other furniture (Source: Jordans) Furniture Specialists Limited Kinetic Laboratories Hull 31090 Manufacture of other furniture (Source: Jordans) Limited Panel Processing Hull 31090 Manufacture of other furniture (Source: Jordans) Limited Chill Media York 31090 Manufacture of other furniture (Source: Jordans) Innovations Ltd Wren Kitchens Barton-Upon- 47599 The manufacture and retail of kitchen and Limited Humber bedroom furniture and associated products. (Source: Jordans)

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