The State of the region -

2014

Changes since the last presentation in 2010: Recession and recovery From AWM to LEPs The Regional Observatory

Drivers of recovery – the private sector takes the lead: Upsurge in inward investment Key investment sites Dynamic community of fast growth SMEs Thriving visitor economy

Some familiar themes: Skill gaps and shortages Unemployment and economic exclusion LEP employment and skills priorities

 

Agenda

Recession and recovery

Public v private sector

The six LEPs cover Coventry & Warwickshire, Greater Birmingham & Solihull, the Black Country, the Marches, Stoke & Staffordshire and Worcestershire

They were set up following the publication of the Government’s 2010 white paper ‘local growth: realising every place’s potential’

While each has its own approach they have common goals:

Support for existing businesses and new inward investors Establishment of key development/employment sites Targeted support for priority sectors Creating new (predominantly private sector) job opportunities in their area

 

From AWM to LEPs

2004-2011 – an operating unit of AWM, the former Regional Development Agency

Acquired by Marketing Birmingham in July 2011 key objectives are to:

Inform the company’s Visit Birmingham (leisure tourism), Meet Birmingham (business tourism, conferences and exhibitions) and Business Birmingham (inward investment) propositions

Offer a commercial research consultancy service focusing on:• High quality research data and policy advice• Rigorous, objective approach• Market intelligence – key sectors and industries, forecasting,

labour and skills analysis

• Primary research - large scale surveys, in-depth case studies, focus groups

The Regional Observatory

Recent projects

Client Objectives Feedback

Birmingham Airport

Assess the commercial viability of a new direct service to China

‘The data we received was robust, reliable and of high quality and provided the crucial first step in the business case.  Birmingham Airport would recommend the work of the Regional Observatory.’ Tom Screen, Aviation Development & Strategy Manager

Creative City Partnership

Identify priorities for investment in Birmingham’s arts, cultural and creative sector

'The Regional Observatory played a key role in shaping and delivering research that will inform our thinking and subsequent action in relation to Creative City.’ Val Birchall, Assistant Director of Culture Commissioning, Birmingham City Council

Careers Service Produce a brochure to inform advisers on investment priorities and associated job opportunities

‘Careers advisers in the field have cited the Observatory’s brochure as invaluable in helping customers identify new opportunities and the skills needed to secure them’ Unus Goga, Regional Contract Manager, National Careers Service

University College Birmingham

Market intelligence to inform the development of new apprenticeship programmes

‘The specialist market intelligence the Regional Observatory provided us with has played a key role in informing our business expansion plans. We were impressed with the team’s flexible, proactive approach which ensured we got the high quality, insightful analysis we needed’ Paul Kitchen. Business Manager. University College Birmingham

Economic Inclusion Panel

Assess the impact of the recession on the employment prospects of local communities

‘We have chosen to commission the Regional Observatory because of its knowledge, expertise and reputation for producing high quality, objective research which will be invaluable in informing the debate on policy priorities.’ Jackie Mould, Director of Strategic Partnerships, Birmingham City Council

Inward investment levels are recovering strongly

Inward investment has risen to record levels in Birmingham

Focus on sectors and niches where research indicates the area has competitive advantage:

Automotive manufacturing supply chain (e.g. low carbon vehicles) Financial services (including fund management, investment and retail

banking and auxiliary financial services) Business and professional services (e.g. UK/regional HQs) Computer services & software (e.g. outsourced operations) Digital media, games development, social media Life sciences (e.g. medical technologies, R&D, clinical trials) Food & drink process, production and distribution Environmental technologies (e.g. low carbon energy, recycling, renewable

technologies)

 

Focused FDI strategy for Greater Birmingham

Key sites are being developed to attract investors

Growth is being underpinned by a group of dynamic SMEs

SMEs active in export markets are the most dynamic

The tourism sector has continued to grow during the recession

Skill shortages are a perennial problem

Between 2007 and 2012:

Numbers unemployed rose by nearly 50% Numbers in employment fell by 100,000 Local authority wards with more than 25% on benefits doubled Long term unemployment nearly doubled

New and growing problems include:

Under- employment – involuntary part time employment has more than doubled

In-work poverty – while a decade ago the majority in poverty were in workless families it is now those in work who make up the majority

 

 

The recession has taken its toll on communities

Align careers and employability provision in schools more closely with employer needs

Align post secondary education and training provision more closely with employer needs

Improve and embed apprenticeship uptake more widely

Support the development of skills within the existing workforce

Support the workless into work

 

 

LEP employment and skills priorities

Questions/discussion