Derby’s economy firing on all cylinders

2024 saw Derby’s economy continue to blossom, with its major players helping lead the way.

At the forefront has been engineering giant Rolls-Royce, the city’s largest private sector employer.

Derby is home to the firm’s Civil Aerospace and Defence divisions, both of which are helping to power the record performance of the business.

Back in February, the firm’s full-year results showed a jump in underlying operating profit, which grew from £652 million in 2022 to almost £1.6 billion last year.

Meanwhile, revenues grew from almost £12.7 billion to £15.4 billion. The company also posted record free cash flow of almost £1.3 billion.

That upward trend has continued this year. In August, Rolls-Royce’s half-year results saw underlying operating profit rise from £0.5 billion to £1.1 billion, compared to the same period last year.

The company also reported that revenues had increased – up to almost £8.2 billion from £6.9 billion.

Rolls-Royce’s Civil Aerospace division in Sinfin designs, develops, tests and builds a range of Trent aero engines for commercial passenger aircraft.

Earlier this year, Rolls-Royce announced it was investing £55 million in its assembly, test and shop visit capacity at Derby, and at its German base in Dahlewitz.

More than 300 jobs will be created – of which 200 will be in Derby.

Meanwhile, over at its Defence site in Raynesway major expansion plans are taking place.

Earlier this year, the firm was granted permission to redevelop the site, paving the way for the creation of almost 1,200 new jobs.

The plans include the construction of new manufacturing facilities, and a multi-storey car park aimed at supporting the company’s nuclear submarine contracts.

The expansion is needed to accommodate the surge in demand from the Royal Navy and to fulfil the requirements for supplying nuclear reactor plants to power the new attack submarines under the AUKUS agreement.

Meanwhile, Rolls-Royce’s mini nuclear power stations business, Rolls-Royce SMR, continues to make significant headway.

In September, it was named as the preferred supplier for the construction of Small Modular Reactors by the government of the Czech Republic and the Czech State utility, ČEZ Group.

In the UK Government’s competition, Rolls-Royce SMR has been shortlisted as one of four potential SMR providers.

Speaking in a recent trading update, chief executive Tufan Erginbilgic said: “Our transformation of Rolls-Royce into a high-performing, competitive, resilient and growing business continues with pace and intensity.”

2024 has also been a memorable year for Toyota Manufacturing UK.

This year, the car giant celebrated building its the five millionth car at its Burnaston plant. The milestone model was a Corolla GR Sport Hatchback hybrid.

Since the first car rolled off the production line at Burnaston – a Carina E – the plant and its products have continued to evolve.

Burnaston was the first Toyota facility outside Japan to make hybrid vehicles and it continues to be a centre of excellence for the technology. Today, 100% of UK production is hybrid.

At the same time, TMUK has been a global trailblazer for the car-maker’s environmental programme, pioneering the generation and use of sustainable energy sources, minimising waste and maximising opportunities for recovering, recycling and re-using parts and materials.

The latest production landmark highlights TMUK’s status as one of Toyota’s principal European manufacturing centres and a key player in the UK automotive sector.

Since its founding in 1989, it has benefited from more than £2.82 billion of investment, keeping it at the cutting edge of new technologies, skills and production methods.

Darius Mikolajczak, managing director at TMUK, said: “The milestone of five million cars represents more than just a numerical achievement.

“It also reflects our contribution to the UK economy and our continued investment in making ever-better cars, embracing new technologies and new ways of working, while building strong and mutually rewarding relationships both with our suppliers, our partners and our local communities.

“This achievement would not have been possible without the dedication of all our members, past and present. Their engagement and motivation are second to none and a true credit to our business.”

As for train-maker Alstom, it Litchurch Lane plant in Derby began 2024 in a difficult place as it faced a gap in its order book, which put 185 years of train-making in the city in the balance.

However, thanks in no small part to the ‘Save Our Trains – Do the Deal!’ campaign, initiated by ‘Team Derby’, Alstom was awarded a deal for extra Elizabeth Line trains, which ultimately saved the plant from closure.

More than 300 businesses and Bondholders signed up to the campaign, plus a further 200 from East Midlands Chamber.

Businesses wrote letters to MPs and the Transport Secretary and other profile opportunities, such as Derby County promoting the campaign to 30,000 people at Pride Park Stadium on Saturday, also brought attention.

The campaign urged the Government to commit to ordering 10 Aventra trains for the Elizabeth Line, enough to sustain Litchurch Lane until a contract to build trains for HS2 in 2026 kicked in.

The £370 million contract was eventually signed in June, securing the future of Litchurch Lane.