Design & Supply has been acquired by its management team in a deal backed by the Development Bank of Wales

A Merthyr manufacturer of industrial steel doors has been acquired in a £3.1m management buyout (MBO) deal. Design & Supply is now owned by an experienced internal management team comprising Tom Grother, Scott Davies and Damien Regis.

The deal, which secures 65-jobs, has been backed by the Development of Wales with a mixture of debt and equity.

Founded in 1986 by Terry Stares, Design & Supply was previously subject to an MBO in 2016, when long-serving employees Kevin Edwards and Chris Weed acquired the company.

From its 41,000 sq ft facility it manufactures a wide range of high-specification steel doors. The company serves customers across the UK, with projects including St Pancras, National Grid sites, Harrods, Canary Wharf and Silverstone.

Legal advice to the vendors was provided by Knights, with Darwin Gray advising the MBO team and Blake Morgan advising Development Bank of Wales. As part of the transaction, fractional finance director support is being provided by SME Finance Partners to support the business’s next phase of growth.

Mr Grother, director at Design & Supply, said: “This is a proud moment for all of us. As a management team, we’ve been closely involved in running the business for many years, and this deal gives us the platform to take it forward while staying true to what’s made it successful.“We’re particularly proud that this is the second management buy-out in the company’s history. It reflects a strong legacy of local ownership and long-term commitment to the business, its people and the wider community. Scott’s journey from apprentice to owner is a great example of what that means in practice.

“The support from the Development Bank of Wales has been about much more than funding. We’ve built a strong relationship with the team, and their backing gives us confidence as we look to the future. Our focus now is on building on the foundations laid by Kevin and Chris, continuing to invest in our people and delivering long-term, sustainable growth.”

Scott Hughes, senior investment executive at the Development Bank of Wales, said:“This investment demonstrates our commitment to supporting strong Welsh businesses through succession using equity investment.

“Design & Supply is a highly regarded manufacturer with an experienced management team and clear growth ambitions. By backing this transaction with equity, we are helping to ensure continuity, safeguard skilled employment in Merthyr and support the business to invest for the long term while remaining locally owned.

“We’re pleased to support Tom, Scott and Damien as they take the business forward and build on its long-standing reputation.”

Rhys Gedrych of SME Finance, who acted for the company, said: “Design & Supply is a high-quality business with strong fundamentals, a loyal customer base and a proven ability to deliver consistent performance.

“The MBO team knows the business inside out and is well placed to drive the next phase of growth. We’re delighted to support them in strengthening financial processes and helping to unlock further opportunities.”

PHOENIX—All around this desert city’s sprawling metro area, low-rise office parks with tinted windows and vast parking lots stretch to the horizon. This is America’s back office.

Abundant land and cheap labor made Phoenix a premier place for companies to stash lower-paid office workers who don’t need to be physically close to clients or headquarters. The cubicle-based jobs—customer service, data entry, payroll processing—created a vital ladder to the middle class, helping replace factory work lost to overseas competition. 

Now, these white-collar jobs are fading, too, thanks to continued offshoring and, increasingly, artificial intelligence. Tens of thousands of local workers suddenly face an uncertain future.

A test grader saw her work outsourced to India. A customer-relations manager, recently laid off and his savings running low, is looking to become a bartender. Job-placement firms that supply companies with back-office workers are seeing less demand and are cutting their own staff, too. Those who still have jobs are increasingly leery of automation, even as it’s become an unavoidable part of their days.

Janus Henderson Investors exists to help clients achieve their long-term financial goals. Formed in 2017 from the merger between Janus Capital Group and Henderson Global Investors, we are committed to adding value through active management. For us, active is more than our investment approach – it is the way we translate ideas into action, how we communicate our views and the partnerships we build in order to create the best outcomes for clients. While our investment managers have the flexibility to follow approaches best suited to their areas of expertise, overall our people come together as a team. This is reflected in our Knowledge. Shared ethos, which informs the dialogue across the business and drives our commitment to empowering clients to make better investment and business decisions.www.janushenderson.com

NEW YORK — The average rate on the most popular U.S. home loan rose to a nine-month high last week, delivering another setback to housing affordability as persistent inflation concerns linked to the ongoing U.S.-Iran conflict kept borrowing costs elevated.

The 30-year fixed-rate mortgage averaged 6.65 percent in the week ended May 22, up from 6.56 percent the previous week, according to the Mortgage Bankers Association. It marked the highest level since August 2025, before the Federal Reserve began cutting rates to support the labor market.

Mortgage applications fell 8.5 percent from the prior week, with refinancing activity dropping sharply. Overall application volume reached its lowest level since last summer, the trade group said.

The increase in borrowing costs reflects broader market reactions to geopolitical developments. Renewed military exchanges between the United States and Iran near the Strait of Hormuz have pushed oil prices higher, contributing to renewed inflation pressures across the economy. This dynamic has driven up Treasury yields, to which mortgage rates are closely linked.

Fed Policy and Economic Backdrop

The rise comes as the Federal Reserve navigates a complex environment. After a series of rate cuts in late 2025, officials are now weighing whether to pause or even consider increases amid sticky inflation. Consumer prices rose 3.8 percent in April from a year earlier, compared with 2.9 percent last August.

The labor market has stabilized, with the unemployment rate holding at 4.3 percent. However, energy costs tied to Middle East tensions have spilled over into broader price increases, prompting caution from policymakers.

New Federal Reserve Chair Kevin Warsh, who succeeded Jerome Powell, faces immediate pressure to balance growth concerns with inflation control. Markets are now pricing in the possibility of a rate hike by the end of 2026, reversing earlier expectations for further easing.

Tight Supply Exacerbates Affordability Issues

Limited housing inventory continues to compound the challenge for potential buyers. Many homeowners with mortgage rates below 5 percent are reluctant to sell and take on higher borrowing costs, creating what economists call the “rate lock-in” effect.

Nancy Vanden Houten, U.S. lead economist at Oxford Economics, highlighted this dynamic in a recent analysis. “That shortage is compounded by the fact that historically few homeowners are selling their properties,” she said. “The turnover of the existing owner-occupied stock averaged 4.7 percent over the last four quarters, which is below the turnover rate we saw during the depths of the global financial crisis.”

As of the end of 2025, nearly two-thirds of outstanding mortgages carried rates below 5 percent, according to Federal Housing Finance Agency data. This low-rate lock-in has severely restricted the flow of homes onto the market, keeping prices elevated even as demand cools.

Impact on Homebuyers and the Market

Higher mortgage rates are pricing out many first-time buyers and making monthly payments less affordable for middle-income households. The combination of elevated home prices and borrowing costs has pushed affordability measures to multi-decade lows in many markets.

Purchase applications fell more sharply than refinancing last week, signaling weakening demand for new home loans. This trend could weigh on home sales in coming months, though tight supply may prevent a significant price correction.

Regional variations exist, with some Sun Belt markets showing more resilience due to job growth, while coastal areas face steeper challenges from high prices and rates.

Broader Economic Implications

Rising mortgage rates have ripple effects throughout the economy. The housing sector, which includes construction, real estate services and related industries, accounts for a significant portion of U.S. economic activity. Slower home sales can dampen consumer spending on furnishings, appliances and other big-ticket items.

Builders have responded by focusing on smaller, more affordable units and offering incentives, but high material and labor costs limit their flexibility. Multifamily construction remains active in many areas, providing some rental supply relief.

The Federal Reserve continues monitoring housing data closely as part of its dual mandate to promote maximum employment and price stability. Any further rate increases could intensify pressure on the sector, while premature easing risks reigniting inflation.

Outlook for Mortgage Rates and Housing

Analysts expect mortgage rates to remain volatile in the near term, influenced by geopolitical developments, inflation readings and Fed communications. A breakthrough in U.S.-Iran negotiations that eases oil price pressures could provide some relief, though underlying supply constraints will likely keep the market challenging.

Freddie Mac is scheduled to release its weekly mortgage rate survey on Thursday, which may show slightly different figures due to methodological variations. Last week, Freddie Mac reported an average 30-year rate of 6.51 percent.

Longer-term, structural issues including zoning restrictions, construction costs and labor shortages will continue shaping the housing market. Experts call for policy measures to boost supply, such as streamlined permitting and incentives for affordable development.

For prospective buyers, the current environment demands careful financial planning. Locking in rates through adjustable or hybrid products may offer short-term relief, though fixed-rate loans provide more certainty for long-term homeowners.

The latest data underscores the persistent challenges facing the U.S. housing market. While job stability and wage growth provide some support, the combination of elevated rates and limited inventory continues testing buyer resilience and market balance.

As summer approaches — traditionally a busy season for home sales — higher borrowing costs may further dampen activity. Policymakers, builders and real estate professionals will be watching closely to see how these dynamics evolve in the months ahead.