Newcastle / Gateshead has only one FTSE listed HQ, and we’ve felt privilaged that the core team that built Sage Software’s HQ has joined together again to restore The Racquets Court.

We own and inhabit The Racquets Court and that makes us unusual as building developers. We were told that it’s unusual for developers to be as involved as we were with every detail – to include the coat hooks.  We were fussy but not once did the teams at IDP, Tolent or Elliot do anything other than rise to meet our frequent challenges.  And the ‘process’ was managed as well as the build itself. This came home to us about half way through the construction …

… we were visited on site by two women responsible for a regional charity.  As they were leaving they asked us, in relation to Tolent’s people on site, “are they all like that” .  When we asked what they meant, they replied “are they all … nice”.  Of course, the answer was “yes” and that was our experience throughout – alongside stunning professionalism.  The project finished in the week that it was forecast to finish at the outset.  How about that for unusual!

Tolent and IDP and Elliots are local businesses and walking around Newcastle, Tolent’s brand is found frequently.  But – and this may be the crucial variable – their market is national and perhaps it’s this that makes them competitive and productive.

The implications of the local (small) market

The Newcastle / Gateshead market is a small one.  Indeed, that of the North East as a whole is also.  But that’s not the real issue – the real issue is that there simply aren’t that many businesses.  In other words, the number of businesses per head of population in the North East is around one-quarter that of London and the South East.  Put crudely, there are four times as many interior design businesses in London as there are in the South.

There are a number of implications of this – and some of the most important are not relevant here -but let’s take the implications for a potential customer for any service.  If that customer is not aware of this core fact; if that customer travels little in the UK and to the South East not at all, then that customer is very likely to be faced with a price which is high and service which is poor.  If local purchasing is ignorant of these facts (and most will be) they are likely not to recognise uncompetitive pricing and will not be demanding customers.

An example

As developers of The Racquets Court, we commissioned relatively few services ourselves.  One of the larger services that we did commission is that of connectivity and the bits and bobs associated with it. The core element of that is the Stellium line – upon which we comment elsewhere.  Stellium is not a locally owned business and it is by definition global. It behaves that way and service was outstanding.

Stellium only brings a line to the front door – at that point is hits a range of swithches and stuff which distribute connectivity around the building. We initially sought 2 proposals from local businesses. The costs of these were similar – and it seemed to us, rather high.

So we decided to call 2 businesses in Leeds.  The first thing to say is that the Leeds conurbation has a signiticant number of IT service businesses from which to choose.  The response from each of these businesses was superb – speedy, uncomplicated and friendly. The estimates from these 2 were also suprisingly close to one another.  But here’s the thing, these 2 were HALF the cost of the Newcastle based businesses.  And that is a very significant sum.

In the end, we had 4 proposals.  Each of the 4 offered different switches (3 were Cisco offers), but the fundamental cost differences were down to the offered firewall.  We carefully considered the proposals and our key requirements and decided that the expensive firewalls were not appropriate to our needs.  We did not consider that local offers quizzed us sufficiently before offering such expensive firewall options.

We did not award the project to the cheapest of the 4 proposals we received.

We’ve tried hard but it’s really not been easy. Generally, and with some very noteable exceptions, British manufacture and North East business displayed uncompetitive pricing and poor service.  Here’s the story.

We know something about industrial clusters, so we knew to take a trip to London.  (Paul Miller led the project which mapped UK clusters – here’s the Executive Summary. For more of the study, please contact us).

The UK (office) furniture cluster

This is one of the UK’s most dense clusters. All things office interior are to be found in a small patch of Clerkenwell – an area roughly between Angel and Barbican in London.

(All things home furniture are around Tottenham Court Road).

Every British, American and European manufacturer of office interior products has a showroom here alongside consultants and design studios. The area has an annual design event called Clerkenwell Design Week.

We wanted to buy British and to source locally – we were only partially successful.

There are few British manufacturers of high end office furniture. We walked into one of the biggest in Clerkenwell, had a look round and our contact details were noted;  4  days later, we got a call back.  We identified in some detail our requirements and then waited.  Two weeks after that, we got a call from the Newcastle based agent and we politely offered feedback, once again identified our requirement and once again waited.  Nothing happened.

We were also disappointed that UK manufactured products were often significantly more expensive than European competitors.

And then there’s the service and the quality.  More on that below.

(We largely achieved ‘buy British AND buy local’ in the restoration and construction of The Racquets Court – that story is here).  Our experience of purchased services in the restoration and construction of The Racquets Court – legal, connectivity, internal switches, wifi and so on – is largely good, and that story is here).

Racquets Court seating

We’ve got four seating types in the office:  office desk chairs, meeting room chairs, conferences, kitchen chairs and sofas.  They come from Germany, Switzerland and Denmark.  They have been purchased with lumbar support and comfort in mind.

Our desk chairs are made by Viasit in Germany and the particular model we bought is both innovative and winner of the 2017 Green Product Award.   (If you have a product to enter for next year, go here).

The chair’s innovation is in the design of the back, which combines both mesh and fabric.  So, it’s a chair that’s good for the user’s back and the environment.

Viasit also make our meeting and conference chairs.  The meeting room chairs are a new release from Viasit and was a winning entry on the 2019 German Design Awards.  Our Viasit contract was handled in the UK by Office Chairs UK and James Reid there was a delight to deal with.

Our breakout sofas and coffee tables are by Hay – Scandinavian design, from Denmark.

And our kitchen chairs are by Vitra.  Vitra is Swiss but with probably the largest Clerkenwell showroom that we stumbled over.

Our UK supplier for Hay and Vitra products was CoExistance and Alex Reddicliffe there was great.

Racquets Court tables and desks

Our desks and meeting tables ARE British!  These are designed and made by Flexiform in Yorkshire.  Nick Saunders, Flexiform’s Sales and Marketing Director, was really helpful.

Our kitchen tables are Italian, by Plank – again supplied by CoExistance.

Racquets Court flooring

Carpeting is by Milliken – a US business which manufactures in the UK.  The carpet choice is frankly daunting!  And the choice is complicated by the fact that carpet is bought by the decibel.  In other words, we had to take a view on the sound insulation necessary in The Racquets Court – not easy in a building that had once been …. well, a racquets court.

Vinyl covering is by Polyflor – and it’s British.

Racquets Court Lighting

Visitors to The Racquets Court invariably comment on the lighting – it’s ‘architectural’, designed to stand out and largely designed and made by Dorset based Dextra.

It’s not usual to find British lighting like this – often it’s Italian. We were thrilled to be able to source lighting from the UK.

North East data analysis consultancy, Gavurin Limited has purchased and developed its first headquarters on the site of a formerly derelict property called The Racquets Court in Newcastle city centre.

The Racquets Court

Supported by a six-figure development loan from Lloyds Bank Commercial Banking, the project has seen ‘The Racquets Court’ building renovated into a state-of-the-art workspace for the business. Although the building served as a venue for the playing of Racquets for many years, it had been sitting empty for over 10 years prior to the redevelopment.

Incorporating the original features of the premises, including a Victorian staircase and glass feature ceiling, the business has created an innovative 5,000 sq ft space over two floors.

Following a period of sustained growth, the management team felt the time was right to move to be part of the growing digital, software and technology scene in the centre of Newcastle to maximise new business opportunities.

Gavurin develops and builds its own software to visualise and analyse data that allow its clients to make strategic management decisions. The business’ international client portfolio covers a diverse range of sectors. This includes Dun & Bradstreet, the commercial data and insights provider, and not-for-profit organisation Hospice UK.

With big ambitions for the region’s technology sector, Gavurin plans to use 50 per cent of its new office as a collaborative working space and a wider networking hub for the North East technology community. Members will have access to desk space, meeting rooms or can use the building as a virtual office.

Connectivity

The Racquets Court is one of the only buildings in Newcastle to already be connected to the new Metropolitan Area Network, a new super-fast gigabyte internet line. The advanced fibre optic cable will enable the business to move large volumes of data across wide areas nationally and internationally at high speed; a key strength for competing in the digital economy.

Gavurin’s managing director, Jonathan Graham, said:

“Connectivity is a major consideration for technology businesses when looking to re-locate. We believe the new advanced fibre infrastructure, only metres from our new headquarters, gives us a real competitive advantage.  It also has the potential to be transformational for the whole of the North East. Thanks to the support of Lloyds Bank, we now have an innovative, creative and technologically advanced working environment. This will help us realise our growth ambitions for the business.”

John Turnbull, Relationship Director, Lloyds Bank Commercial Banking, said:

“Having started from relatively humble beginnings, Gavurin has grown to the point where it can now boast an international client book.

 

“Newcastle has always been the business’ main base and now it is looking to work with more companies closer to home. The team has set itself some ambitious targets and this move to The Racquets Court, a key milestone for the business, will play a significant part in helping it achieve these goals.

 

“We have made clear commitments to support SME and Mid-Market businesses with a £6bn increase in net lending over the next three years. As Newcastle looks to grow its reputation as a centre for digital, software and technological innovation, we’re pleased to be supporting businesses like Gavurin that will help realise this ambition and more widely will help Britain prosper.”

November 2018