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Victory over recession

A partnership between one of Hull's oldest family-run businesses and Hull City Council has helped create a new manufacturing firm in the midst of a recession

L-R: Peter Nevitt, MD of Victory Leisure Homes, Cllr Carl Minns, leader of Hull City Council, Rory Clarke, Director of J R Rix and Sons Ltd.

Since being set up in the spring, Victory Leisure Homes Ltd has created 50 jobs. The firm, which makes static holiday homes, currently has a 'healthy' order book and expects to increase production and employment in the near future. It's a success story in an industry which, like many others, has been hard hit by the economic recession. But the success would not have been possible without the support of J.R. Rix and Sons, one of Hull's oldest family-run businesses, and Hull City Council.

Cautious approach

Victory Leisure Homes was created when Rix spotted the opportunity to buy the premises of the former Cosalt caravan manufacturing site, on Stoneferry Road. The site, which had closed last year with the loss of 300 jobs, still had much of its production machinery intact. There was also a large pool of skilled workers living locally. "At a time when there wasn't much good news for jobs locally, this was a significant opportunity," says Rory Clarke, director of Rix. "We've created employment opportunities in the middle of a recession and we also believe in sourcing goods and services from local suppliers wherever possible. "We're very pleased with progress over the last three months, however, we want to create a solid, sustainable business so we'll be taking a cautious approach to growing Victory Leisure Homes. "We anticipate that the venture will eventually create up to 100 direct and indirect jobs within a two to three year period."

Victory workers Gary Chapman (rear) and Paul Vasey

Help to get started

The irony is that part of the firm's success may actually be due to the recession itself, as more people are choosing to have a caravan holiday in the UK, with the weak pound making holidays abroad more expensive. The weaker pound is also helping export sales of caravans. But the help of Hull City Council in providing a cash loan through its Acorn Fund has also been invaluable in helping the firm in its early stages. The council and its partners, including ONE HULL, are also subsidising the wages of around 30 workers at the new site as part of the Local Work Guarantee Scheme (LWG). The scheme involves Victory being given wage subsidies of £75 per week per employee for the first 36 weeks. In return, the firm is expected to offer employees a training plan which will lead to a Level 2 qualification (the equivalent of five GCSEs). "As a start up company, particularly in the current climate, money can be very tight, but the LWG has supplied us with the labour and financial support we needed to ease the pressure of these difficult first few months," says Peter Nevitt, managing director of Victory Leisure Homes. "If you're a start up company you need every bit of funding you can get. The marketplace is on its knees and the first few months are crucial."

Mighty oaks from little acorns

Victory Leisure Homes is one of more than 600 companies across the city that have been helped through the Acorn Fund, which is managed by Hull Chamber of Commerce. The fund provides one-off grants of up to £2,500, and loans, normally of up to £15,000, to businesses within the postcode areas of HU1 to HU9 (subject to certain conditions). In exceptional cases, the fund can provide significantly higher levels of loan finance. It's part of a wider package of support for businesses known as the Hull Deal, which includes everything from helping would-be entrepreneurs to come up with an initial business idea to researching it, testing the market, applying for funding, launching and beyond. "The council is helping not only the caravan industry, but also a number of other local firms with advice, premises, support and, where possible, access to funding," says leader of Hull City Council, Carl Minns. "We can't help in every circumstance, but where there's scope to make a difference, the council will be there to provide support."

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For more information call Hull City Council's regional development section on 300300 or visit www.growinhull.co.uk The LWG project will provide a period of guaranteed community-based employment for 1,500 people over the next two years, with 900 of them expected to secure a long-term employment contract. LWG is funded by the Working Neighbourhoods Fund from the ONE HULL partnership, which is made up of public and private sector organisations working together to create a better Hull.