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February 2, 2022

Revealed: the local authorities investing the most in construction funding

Despite Covid, local authorities spent over £100 million more on construction in 2020/21 than in 2015/16  Welwyn Hatfield Council increased its construction funding the most (5,482%)  On average, each local authority spent £28 million on construction in 2020/21 – up 3%  New research has revealed the UK local authorities that are increasing their construction funding at the

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Builders Merchants to see growth of 2-3% annually

Builders’ merchants represent a key part of the UK construction industry and account for up to 85% of the UK’s built environment, by supplying a wide range of building materials. Builders’ merchants and their suppliers contribute over £40bn to the economy every year. Builders’ merchants who are within the end

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TOO MANY IN HOUSING NEED NOT BEING COUNTED

Too many people in housing need in Scotland are not being counted, MSPs have been told (today). Giving evidence to the Scottish Parliament’s Local Government, Housing & Planning Committee as it scrutinises the draft National Planning Framework 4 (NPF4), Nicola Barclay, Chief Executive of trade body Homes for Scotland, said:

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Constructionline partners with Supply Change to launch social enterprise service

Industry-leading procurement platform Constructionline has partnered with Supply Change to support social value procurement and boost the use of social enterprises in the construction sector. From today, qualifying social enterprises (businesses that reinvest or donate their profits to create positive social change) can get free Constructionline Supplier Membership and SSIP

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£5.4M MUSEUM EXTENSION HOUSING ICONIC WW2 PLANE CELEBRATED

THOUSANDS of visitors have now visited the £5.4 million extension to the Potteries Museum and Art Gallery in Stoke-on-Trent, which now houses an original Spitfire aircraft thanks to specialist project management from national property, construction, and infrastructure consultancy Pick Everard. The project comprised the design and construction of a new

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A guide to buying a leasehold property

The latest research from Warwick Estates, has created a guide to buying a leasehold home in 2022, explaining exactly what a leasehold is while analysing the pros and cons of leasehold ownership. What is a leasehold? A leasehold contract means the purchaser owns everything that sits within the four walls

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BDC 319 : Aug 2024

February 2, 2022

Major land purchase in city centre for council’s regeneration plans

The former Tricorn site in City Centre North has been purchased by Portsmouth City Council, supporting regeneration of the area. Real estate investment and development advisor, Delancey previously owned a long lease for the site but now the council have full land ownership. The site will continue as an NCP managed car park until required for development. This is the second major land purchase in the city centre that the council has completed within twelve months; the first being the former Sainsbury’s site on Commercial Road in March 2021. Cllr Vernon-Jackson, Leader of Portsmouth City Council said, “Listening to people’s views on the city centre through the Local Plan, the Imagine 2040 City Vision, and other council-led engagement, we have been working to a strategy that will protect its future. We know more needs to be done to improve the high street in the core area and we also know that there are opportunities to make significant improvements in City Centre North and City Centre South. I’m delighted to say that we are going to make those improvements and this significant land purchase is more evidence of that.” Since the demolition of the Tricorn Centre in 2004, there has been much discussion and debate over what should replace it. However, full ownership of this site further enables the council to deliver its long-term regeneration plans for City Centre North, as announced in November of last year. The creation of a large, public park is at the heart of those plans, alongside the development of around 2000 new homes. Cllr Vernon-Jackson continued, “We will be delivering a major regeneration scheme in this part of the city centre that considers a wide range of factors, from our current housing targets and current road infrastructure to the need for more sustainable travel, and more green space. We are currently working through the planning process and aim to submit a planning application before this summer. People have already told us what they need and want to see in the city centre through the Local Plan surveys but there will be an opportunity to comment on this specific regeneration project in more detail at a public consultation planned for the summer.” Anyone who has a property interest in this area should contact: CityCentre@portsmouthcc.gov.uk

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Revealed: the local authorities investing the most in construction funding

Despite Covid, local authorities spent over £100 million more on construction in 2020/21 than in 2015/16  Welwyn Hatfield Council increased its construction funding the most (5,482%)  On average, each local authority spent £28 million on construction in 2020/21 – up 3%  New research has revealed the UK local authorities that are increasing their construction funding at the fastest rate, with some councils upping their spend by more than 5,000% over five years.  IronmongeryDirect issued Freedom of Information requests to each local authority and asked how much they spent on construction projects, including buildings, roads and railways, in the 2015/16 and 2020/21 financial years, to see how investment has changed over time.  Despite the impact of the pandemic, almost half (49%) of the local authorities that responded spent more on construction in 2020/21 than they did five years earlier.   Funding across the UK rose by over £100 million (3%) from £4.63 billion in 2015/16, to £4.77 billion in 2020/21. In the last financial year, each local authority splashed out an average of £28 million on construction.  Twenty-nine councils more than doubled the amount they spent on the industry and the average increase across the country was a remarkable 154%.  The average increase stands so high because nine local authorities saw rises of over 1,000%.  Welwyn Hatfield council, in the East of England, reported the greatest increase – a staggering 5,482% (£763,863 up to over £42.5 million).  Local authorities that have increased construction at the fastest rate over the last five years (2015/16 to 2020/21):  Out of all the local authorities, Leeds City Council spent the largest overall amount, with a total of £389.8 million allocated for construction. The authority also recorded nationwide highs for both general construction costs (£272.1 million) and road infrastructure (£117.6 million).  Birmingham City Council, meanwhile, spent the largest amount on building construction (£279.8 million), whilst Pembrokeshire Council spent the most on open spaces (£9 million), such as parks, play areas and gardens.   Hertfordshire County Council topped the list for bridges, having spent £9.6 million.  Dominick Sandford, Managing Director at IronmongeryDirect, said: “After the difficulties the construction industry has faced over the last two years due to the Covid 19 pandemic, it’s incredibly reassuring to see large scale increases in local funding across the UK.  “With the industry continuing to recover from recent setbacks, it’s a positive sign that many local authorities are feeling confident enough to increasing their investment into local infrastructure and construction work.”  To explore an interactive map showing the amount of construction funding in your area, visit: https://www.ironmongerydirect.co.uk/research/construction-funding/ 

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Builders Merchants to see growth of 2-3% annually

Builders’ merchants represent a key part of the UK construction industry and account for up to 85% of the UK’s built environment, by supplying a wide range of building materials. Builders’ merchants and their suppliers contribute over £40bn to the economy every year. Builders’ merchants who are within the end use sector have fared differently to other product sector areas over the last 5 years. Some experienced a sharper downturn in demand during the pandemic and subsequent lockdown rules that were imposed, however many received a much quicker rebound in sales once the lockdown measures were eased. Many are still noting that this was due to many consumers having money saved during the pandemic and wanting to improve upon their living standards whilst spending so much time in their homes. The main product sectors that saw a downturn during lockdown measures were kitchens, bathrooms, roofing and insulation products, HVAC equipment, plumbing and drainage products. These all experienced a double-digit decrease in market value during 2020. However, the downturn in sales was less evident for building materials such as timber and glazing, cement and plaster and bricks and blocks. The number of overall outlets within the builders’ merchants’ sectors continues to shrink further. Online outlets should start to account for a greater share. For builders’ merchants, physical outlets will still remain a part of the central strategy, as consumers will still require items immediately or will want to physically see and touch items prior to purchase. There will likely be more emphasis placed onto the online channels, such as apps, which will offer a better experience for trade customers, where they will be able to manage their own business account with the merchant. In 2020, builders’ merchants accounted for 8.5% of UK construction output, up slightly from 8.2% the previous year. This was down to the reopening of builders’ merchants when many other stores were still closed during the height of the pandemic. Builders’ merchants were able to bolster the demand for construction projects as they resumed, even when they faced many struggles such as product shortages, notably timber and structural steel. The pandemic caused the builders’ merchants market value to decrease by 11% in 2020. We are forecasting a steady recovery of 2-3% annual growth up to 2025. During this period, we are expecting to see more companies consolidate their networks. Some will be moving from small branches which may have been underperforming at late, to a focus on larger outlets, in the hopes that they will be better suited to the modern consumer’s needs. The report comes from Builders Merchants Market Report – UK 2021-2025

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TOO MANY IN HOUSING NEED NOT BEING COUNTED

Too many people in housing need in Scotland are not being counted, MSPs have been told (today). Giving evidence to the Scottish Parliament’s Local Government, Housing & Planning Committee as it scrutinises the draft National Planning Framework 4 (NPF4), Nicola Barclay, Chief Executive of trade body Homes for Scotland, said: “The national dataset on housing need takes a very limited view of what constitutes housing need, with only two very acute forms actually counted: homeless households in temporary accommodation and overcrowded households that include at least one concealed family. “But there are many groups that are not included. For example, overcrowded households, say a family with two children, a boy and a girl, but only two bedrooms; they are not counted.  Neither are single person households such as adults living together in a shared flat or a single adult returning to live with their parents. “So there is a huge sector of the population that is being overlooked, they are not in the houses they want to be and are unable to live their lives to the full, starting relationships, having families etc because we are not counting them in the first place.” Whilst draft NPF4 refers to the climate emergency and nature crisis, Barclay highlighted that the document completely disregarded the housing crisis, which she described as being of equal importance and “the third leg of the stool”.  She concluded: “The way NPF4 is drafted at the moment, housing will not be delivered to the people that need it and that is a fundamental concern.”

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Slow driving licence renewals taking truck and bus drivers out of action and stretching fleets, says FleetCheck

Slow driving licence renewals by the DVLA are taking drivers out of circulation and leaving already-stretched fleets with further reduced resources, FleetCheck is reporting. The fleet software company says that it is hearing from across its user base and elsewhere that the issue is especially affecting vocational licence renewals where drivers are notifying the authorities of new medical conditions for the first time. Peter Golding, managing director, said: “Every time a truck or bus driver wants to renew their licence, they have to undergo a thorough medical by a doctor and any new conditions notified. This might be something as common as high blood pressure. The DVLA will then assess this change for safety before granting a licence renewal. “This appears to be where the hold-ups are occurring, with 4-8 week delays not being untypical, we are being told. There is a provision in the Road Traffic Act called section 88 that allows drivers to carry on working in these conditions but, in the real world, there is a significant question mark over whether this is covered by standard fleet insurance. In the end, it appears that most fleets are deciding not to take the risk.” Peter said that, as a result, drivers awaiting renewal are often being placed on yard duties or simply told to go home until the DVLA process is completed and a notification received. “For fleets that are already badly stretched by high demand for services at the same time as experiencing driver shortages in the wake of Brexit, this is a very definite problem. They simply can’t afford to be losing drivers for a month or longer. “There is no obvious solution other than perhaps applying for licence renewals much earlier than they are technically needed. It appears to be simply a case of waiting for the DVLA to work through a backlog that has now been in place for some time.”

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Constructionline partners with Supply Change to launch social enterprise service

Industry-leading procurement platform Constructionline has partnered with Supply Change to support social value procurement and boost the use of social enterprises in the construction sector. From today, qualifying social enterprises (businesses that reinvest or donate their profits to create positive social change) can get free Constructionline Supplier Membership and SSIP accreditation from Acclaim Accreditation. By boosting social enterprises’ use in procurement, the partnership between Constructionline and Supply Change will help further increase social value in the supply chain. Social enterprises have a positive impact on society through many ways, such as employing those that face barriers to work, championing more environmentally friendly practices or donating profits to charity. Constructionline buyers and suppliers will benefit from being able to achieve this positive impact through a simpler route to social value procurement. The partnership follows the recent launch of Constructionline’s social value question set and is part of the platform’s wider drive to firmly put social value on the agenda for all procurement across the construction sector.  Supply Change, which works to make procurement easier, faster and more impactful for businesses, will help to verify businesses’ eligibility to receive this support from Constructionline. By registering for free on the Constructionline platform, social enterprises can then prove to buyers that they meet stringent industry standards, including PAS91 and the Common Assessment Standard, allowing them to be easily identified for new business opportunities. Robert Walton, Chief Operating Officer at Constructionline, commented: “With the construction sector accounting for around 6% of GDP in the UK, there’s huge scope for the industry to make real change to local communities through social value. Working with social enterprises where possible is a key way to achieve this, and I’m proud that through our partnership with Supply Change, we can help to make a difference. We’re committed to supporting social value and, through this partnership and our dedicated question set, I’m really looking forward to seeing the growth of social value procurement on our platform this year.” Proving social value is key across both the public and private sectors. In the public sector, the government introduced the Social Value Model in January 2021, and social value now accounts for at least 10% of a supplier’s score when it comes to central government bid evaluations under PPN 06/20. In the private sector, social value is gaining prominence as organisations strive to support the communities in which they work, and this is only set to grow. Aoise Keogan-Nooshabadi, co-founder of Supply Change, added: “Social value in procurement has never been more important. Studies show that engaging with social businesses makes commercial sense and the introduction of the Social Value Model makes it even more valuable. The increased need to give back to our communities and our climate has put social procurement high on the agenda. Despite this, quality is still paramount. Our partnership with Constructionline, to give accreditation to social enterprise suppliers, will break down barriers for suppliers who create a huge amount of impact but also deliver high-quality work.” As one of the social enterprises set to benefit from the Constructionline and Supply Change partnership, Amie Grice, business development at Argonaut Enterprises, explained: “The Constructionline accreditations are very important to any company but, for a small social enterprise, gaining and keeping this accreditation is vital to maintain and/or expand. The partnership between Constructionline and Supply Change enabling the free membership has taken some pressure off us, and the funds can be used to help support staff and keep making a difference. As an SME and social enterprise, these partnerships make a huge difference.” Constructionline and Supply Change are hosting a webinar to launch the partnership on Tuesday 1st February at 3pm. To find out more and have your questions answered by the procurement experts, register for your place  at www.constructionline.co.uk/events/social-enterprise/  To find out more and to register for free Constructionline Supplier membership and SSIP accreditation from Acclaim Accreditation, visit www.constructionline.co.uk/products-services/social-enterprise/ For more information on Supply Change visit www.supplychange.co.uk

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WORCESTER BOSCH LAUNCHES SECOND PHASE OF ‘GREEN HEATING HEROES’ CAMPAIGN

Today, the UK’s leading boiler manufacturer has relaunched its Green Heating Heroes, to help installers educate consumers on how they can reduce carbon emissions and energy bills Worcester Bosch has today announced the launch of the second phase of its Green Heating Heroes campaign. First launched in November 2021, the campaign aims to encourage homeowners across the UK to live a greener and more sustainable lifestyle, while giving installers the tools they need to help communicate this message to their customers. With talk around the impending energy price hike increasing further, Worcester Bosch hope that installers will use the campaign’s tools and resources to confidently speak to their customers on the benefits of upgrading heating systems to efficient ones. For example, according to the Energy Savings Trust, up to £365 can be saved on energy bills per year if a G-rated boiler is switched to an A-rated one. The digital campaign will go live from 1st February until March 1st 2022 and will feature across YouTube, Instagram, Facebook and via Google Display. Martyn Bridges, Technical Communications and Product Manager at Worcester Bosch, comments: “Our industry is going through a monumental change, which is already beginning to show with talk around the energy crisis. In addition, we are awaiting the Boiler Upgrade Scheme which will be introduced on 1st April, where homeowners can apply for a £5,000 upgrade to replace a boiler with an air source heat pump. “With 3 million inefficient boilers currently installed in UK homes, and with various future-proofed technologies available to replace them, we believe there is a huge opportunity to educate homeowners on the benefits of upgrading their heating system. This is why we have launched the second phase of the Green Heating Heroes campaign – to help spread this message far and wide and inspire people to make a change.” To find out more about the Green Heating Heroes campaign, please visit worcester-bosch.co.uk/professional/green-heating-heroes.

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£5.4M MUSEUM EXTENSION HOUSING ICONIC WW2 PLANE CELEBRATED

THOUSANDS of visitors have now visited the £5.4 million extension to the Potteries Museum and Art Gallery in Stoke-on-Trent, which now houses an original Spitfire aircraft thanks to specialist project management from national property, construction, and infrastructure consultancy Pick Everard. The project comprised the design and construction of a new 3,800 square foot, double height exhibition space with mezzanine and the alteration and refurbishment of the existing café space within the art gallery and museum, alongside extensive external landscaping. Utilising a steel frame and rainscreen cladding, the new exhibition space has been designed with specialist structural glazing to allow the main attraction, the city’s iconic RW388 Spitfire Aircraft, to be exhibited. The area also houses a flight simulator, model Hurricane aircraft and other exhibitions. Seeking an expedited project process to ensure scheduled delivery, Pick Everard – operating under Perfect Circle’s unique collaboration – was appointed as Stoke-on-Trent City Council’s multi-disciplinary construction consultant through SCAPE’s Built Environment Consultancy Services (BECS) framework. Matt Jones, associate project manager at Pick Everard, said: “Stoke-on-Trent City Council’s aspiration for a statement project that provides meeting and social space for the general public captured our imagination and we worked collaboratively with the wider project team to develop and deliver a scheme that achieves this. In the process we overcame several challenges presented by the sloping brownfield site, in addition to the adapted structure and services of the existing building that the new exhibition space needed to be adjoined to. “Since this scheme created an extension to an existing museum, the project demanded early engagement and smart collaboration with a variety of stakeholders. This included the city council’s cabinet members, planning officers, and museum curator, along with the special interest group responsible for restoring the Spitfire and the logistics company responsible for moving the refurbished plane into the completed exhibition space. “The project began on site as the first wave of the Covid-19 pandemic took hold. This meant that stakeholders collaboratively supported the implementation of safe work systems to safeguard the construction team and ensure the works could be completed in accordance with national covid-19 legislation. The project team overcame international supply chain challenges and the scheme was successfully delivered within the agreed budget and programme parameters.” Stoke-on-Trent, known as the Potteries, is internationally renowned for its ceramics. The area has a history of coal mining, so specialist geotechnical design input was critical. In conjunction with the Coal Authority, an approach was agreed to backfill existing mine workings beneath the proposed building, which allowed construction to proceed. Matt Hall, national director for project management at Pick Everard said: “We are delighted to have delivered such a historically significant development, which creates a lasting legacy for the city of Stoke-on-Trent. Our expertise, combined with that from tourism and leisure architect Glancy Nicholls, has created a spectacular display space for the iconic Spitfire – a centrepiece the city can be proud of.” The project is a key development in support of Stoke-on-Trent City Council’s strategy to improve attractions in the centre of the city and the overall visitor experience. The new spaces, constructed by Morgan Sindall Construction, allow the exhibition space to be enjoyed by people both inside and outside of the Potteries Art Gallery and Museum. Cllr Daniel Jellyman, cabinet member for infrastructure, regeneration and heritage, said: “We are really happy with the outcome of this project. Not only have we managed to pay homage to one of Stoke-on-Trent’s true icons – Reginald J. Mitchell, the designer of the Spitfire plane – but we have also improved the aesthetics and accessibility for those walking to and around the site, through our new pedestrian links. “Along with the socio-economic benefits that will come from this project, the site will add tangible value and energise the community, providing them with a new landmark the city can be proud of.” Pick Everard employs more than 600 staff across its 13 offices, providing a range of project, cost, and design consultancy services. For more information, please visit www.pickeverard.co.uk. TO VIEW THE OPERATION SPITFIRE FILM, PLEASE CLICK HERE.

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A guide to buying a leasehold property

The latest research from Warwick Estates, has created a guide to buying a leasehold home in 2022, explaining exactly what a leasehold is while analysing the pros and cons of leasehold ownership. What is a leasehold? A leasehold contract means the purchaser owns everything that sits within the four walls of the home, but does not own the land surrounding the home, the ground below it nor the sky above it. When buying a flat, for example, it’s almost guaranteed that the purchase will be a leasehold agreement because a building owner or landlord continues to own the other flats in the block. Furthermore, a leasehold, unlike a freehold, is not permanent, there is a limited timeline of ownership, otherwise known as the term of the lease. This lease is often hundreds of years long, but once it expires, ownership of the lease transfers back to the freeholder. For context, in 2021, leasehold purchases accounted for just 18.9% of all property transactions in England & Wales, with freeholds making up the remaining 81.1%.  What are the advantages of a leasehold? With absolute ownership out of the question, why would anyone want a buy leasehold instead of a freehold? First, a leasehold property is often cheaper than a freehold because of the lack of outright ownership it provides.  and the leaseholder is often not responsible for paying for the general upkeep of communal areas in the buildings such as corridors and stairways.  But leaseholds are rarely purchased for their advantages over freehold, more because leaseholds are essential when buying a flat in a tall building of flats and have, as such, become increasingly popular as we see urban areas developing vertically rather than horizontally.  What are the disadvantages of buying a leasehold property? The truth is that leaseholds are often a necessity rather than a choice and there are significant downsides of leasehold ownership. First, a lease is only held for a limited amount of time – ownership will, one day, expire. Second, a leaseholder is often expected to pay significant fees to the freeholder/landlord in order to contribute to the upkeep of communal space, for example, and for essential repairs to the building.  A leasehold also tends to limit the amount of changes the owner can make to their home and permission is often required from the freeholder. If not, a leasehold can be stripped. This lack of freedom can also extend to things like pet ownership, or running a business from home, or sub-letting to third-party. Finally, when a leasehold starts running out, it can be very difficult to find a buyer for the property so the opportunity to benefit from capital gain is small. And, since the Grenfell Tower tragedy in 2007, the external cladding scandal has added a further level of complexity for flat owners to break free of their leasehold contracts. What happens at the end of a leasehold property? It is often the case that the end of a leasehold is not something any owner needs to worry about. Often, a leasehold will be for 999 years in order to make it a more attractive agreement for buyers. Many vendors will suggest that a 999-year leasehold is ‘as good as a freehold’, but such sentiment tends to ignore all of the potential downsides listed above.  If, however, the lease does expire, the ownership of the property reverts back to the freeholder and it is theirs to do what they want with. But, one can ask for an extension to the leasehold. In fact, once a person has owned a leasehold home for two years, they will often have the right to extend the lease by 90 years. 

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Prologis UK makes three strategic hires to enrich its skillset in a dynamic market.

Prologis, the UK’s leading developer and owner of logistics property, has confirmed three strategic hires to kickstart the New Year, as it seeks to enrich its skill set and further strengthen its platform for growth in a dynamic logistics property market. Caroline Musker is joining Prologis from Lichfields, where she gained more than 17 years’ experience from a number of roles, including her latest position as senior director. She has been involved in a number of Prologis’ projects during this time. As a Director at Prologis, she will be taking the newly-created role of Head of Planning, helping to get projects off to a good start and exploring ways to add value for the customer and the business. She will also be helping to assess potential acquisition and investment opportunities. Gillian Scarth joins Prologis as a director in the Capital Deployment and Leasing team, after 15 years’ experience as a senior development manager at Kier Property. Gill has an impressive professional network and extensive experience of managing diverse customer portfolios offering a mix of uses in multiple sectors. She will primarily be focused on driving growth and supporting the delivery of new and existing projects in London and the South East. Simon Perks is joining the Capital Deployment and Leasing team at Prologis UK as a director, with a specific brief to look for opportunities to further strengthen the company’s asset portfolio in London and the South East. In his former role as senior development manager at The Crown Estate, he gained considerable experience in developing and adding value to a unique land and property portfolio, which includes 10 million sq. ft. of assets in areas of central London. Paul Weston, Prologis UK regional head, added: “We are delighted to be making these strategic hires at the start of the year to help drive our growth. There has been a significant increase in demand for logistics property during the pandemic and finding land and property to develop, in the right locations is a key focus. By enriching our skill set and hiring talented people, we aim to boost our competitiveness and unlock more opportunities in the year ahead.”

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