SPECIAL REPORT Business Guide to

Wednesday October 31 2012 www.ft.com/reports | twitter.com/ftreports

Manufacturing an economic future Business diversity, skills for the young and a bridge that unites its people are part of the city’s masterplan Page 2

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Driving employment Innovative industries Booming business Premier league faithful Automotive hub is selling its A can-do attitude and new Father and daughters team Sunderland FC stands as a services to the world partnerships offer hope exports to 60 countries beacon during tough times Page 3 Page 4 Page 5 Page 6

Arts thrive by the Wear Old industrial assets Engineering better links Hi-tech transformation Accommodating the artistic Plans to give a city centre Trains, trams and a new Speedy rollout for software to the purely functional the heart it needs to grow bridge offer greater access and digital companies Page 6 Page 7 Page 8 ft.com/reports 2 FINANCIAL TIMES WEDNESDAY OCTOBER 31 2012 FINANCIAL TIMES WEDNESDAY OCTOBER 31 2012 3 Business Guide to Sunderland Business Guide to Sunderland

mood in the factory was derland does well,” he says. less buoyant after it lost the Sunderland’s automotive Auto hub helps next-generation Micra small suppliers have had to make car. “It was a pretty bleak tough calculations too as Manufacturing a long-term future time,” says Mr Fitzpatrick. they fight for new business. When Toshiyuki Shiga, The Sunderland plant of drive regional Nissan’s chief operating TRW, a US group that sup- officer, came to the UK plies clients such as for the groundbreaking cer- Volkswagen and General Diversifying the types of businesses the city attracts is key to ensuring growth and prosperity, writes Chris Tighe emony for the new battery Motors, is competing inter- employment plant, a worker asked him nally with a factory in when it would get some lower-priced Slovakia – and nce it was ships; now it is cars. tion, will shortly open in the city centre. new products. “You show externally with companies Physically demanding indus- Despite its success in replacing the 30,000 me your competitiveness, that include South Korea’s tries – shipbuilding, coal mining, jobs the area lost in vanished mines and its popular Qashqai small and I’ll show you the LG group – to make a new glass making – were for centuries shipyards between 1975 and 1989 with new Automotive sport utility vehicle, the work,” Mr Fitzpatrick power steering element. at the core of Sunderland’s econ- activities, including automotives, call cen- new Note small car and a recalls Mr Shiga saying. Piggybacking on Nissan’s Oomy and self-image. tres, logistics and digital businesses, Sun- The Nissan plant forthcoming mid-size hatch- As the plant sought to successful operation, local Today, Sunderland is proud to be linked derland’s unemployment rate still runs at employs 5,800 back people-mover. Nissan secure its future against officials have in recent in the national consciousness with its Nis- 1.5 times the national average. June’s will also build its Leaf elec- Investment: £921m spent on UK-built models Bloomberg intense internal competi- years sought to promote the san plant, feted for manufacturing produc- annual population survey showed unem- people and exports tric car at the plant from tion, it looked for a unique region as a centre for tivity and the source of more than one in ployment in the area at 12.2 per cent when to 90 markets, next year. The factory selling point. Alongside the research and development three UK-made cars. the UK figure was 8.1 per cent. employs 5,800 people and alongside the factory, built sponded to the challenges plant’s own cost-effective- of low-carbon cars. Gates- Commitment to manufacturing – “It’s Prospects for young people are a particu- says John Reed last year made 480,000 cars. by Sunderland-based Van- we faced,” says Kevin Fitz- ness measures, managers head College is organising something we are really good at,” says lar worry. Sunderland has, at 11 per cent, Nissan exports the cars it tec Europe, Nissan’s biggest patrick, Nissan’s vice-presi- looked at new ways of the effort, which includes Dave Smith, Sunderland city council’s chief the sixth highest rate in of 16-18 makes there via the Port of on-site supplier of logistics. dent of UK manufacturing. standing out competitively, training future workers to executive – puts it at the heart of the gov- year olds not in education, employment or Nissan’s car-making opera- Tyne to more than 90 mar- City officials like to talk To a degree, the operation including by improving make electric cars and bat- ernment’s determination to rebalance the training. Moreover, employers are tending tion in Sunderland – kets, from France to New up their automotive hub’s has been lucky in the mod- logistics routes, transfer- teries. Nissan has lent the UK economy. to choose slightly older apprenticeship already Britain’s biggest – Zealand. Around the clock, importance, but in this case els it produces, notably the ring more activity to on-site venture a track alongside Success in car manufacturing, an indus- applicants. To try to improve its young is about to become even supply trucks rumble in it is no exaggeration to say Qashqai – a blockbuster suppliers, and working with its plant to serve as an try that did not exist there 30 years ago, people’s life chances, the city has been driv- bigger. and out of the factory, that Sunderland is selling early entrant to the globally them to help bring their open-access testing facility. gives Sunderland a head start in proving to ing up educational standards. And, if it The Japanese group has, alongside which sits a test its services to the world. popular small SUV seg- own costs down. “We can’t compete on potential investors, and to its residents, wins powers in round two of the govern- over the past year, commit- track for low-carbon cars Nissan’s UK managers ment. However, the indus- “The internal process conventional technology what it can achieve. Manufacturing, says ment’s City Deal initiative, it plans to cre- ted several new models to and whirling turbines that are proud of having won try has also worked hard to looks at quality, efficiency, [such as engines] because Paul Watson, the city council’s Labour ate a manufacturing and advanced engi- the plant in a move that mark the location of a power the new models. However, keep new investments flow- and, what we internally the west Midlands is doing leader, is “in the DNA of the people”. neering Academy, to raise skills levels. will create 3,000 new jobs, plant. A cluster of suppliers they are not smug, but vigi- ing. Nissan makes cars in call, total delivered cost – that,” says Colin Herron, “We have this propensity for it.” Sunderland’s city centre is a weakness including at suppliers, and has followed Nissan to the lant about the need to keep 20 countries, and Sunder- the cost of getting the managing director of Zero However, rapid technological change and too. This is partly the consequence of suc- ensure the plant remains site, including Faurécia, the operation cost-effective land had to bid against a car to the dealer,” explains Carbon Futures, a subsidi- immense global pressures mean present cess in developing office and business space busy well into the 2020s. Valeo, TI Auto and Sanoh. and industrially relevant in plant in India to make the Andy Palmer, Nissan’s ary of the college. “What successes in manufacturing are no on the city fringes and in Washington, the Nissan is investing £921m A vast shed, nearly half a a globally competitive busi- new Note, and against Mex- global head of product we’re doing is looking at guarantee for the longer-term future. former new town within its area. in its new UK-built models, million square feet in size, ness. “We’re in a good posi- ico for the hatchback. planning. “In that overall the advanced technology – Sunderland, like other manufacturing- The Economic Masterplan bluntly including a replacement for is rising in a business park tion because we’ve re- Just two years ago, the scheme of things, Sun- hydrogen and electric.” orientated areas of the north, faces big observed that the city’s heart “lacks the challenges. It needs to increase the local scale, quality, vibrancy and variety of uses” supply of people with engineering-related normally found in a regional city centre. skills and aptitudes suitable for existing Centre for Cities, the think-tank, warned employers. It must also respond to the ris- recently that this may drag on future eco- ing skills needs of increasingly knowledge- nomic performance and may well be at the intensive industry. root of existing weaknesses – a narrow It must encourage more indigenous, industrial base and lack of career progres- smaller companies to dare to export and sion. The city council hopes its proposed find new ways to tackle youth unemploy- Local Asset Backed Vehicle, a public-pri- ment. And it must continue efforts to vate development partnership, will boost increase its rate of business formation, the central area. which is running at only half the UK level. The council, now seeking a joint venture Sunderland’s leaders – private and public strategic investment partner, will contrib- sector – are very aware of these challenges. ute an investment portfolio of about 400 They are using the tools at their disposal, property assets. The private sector partner and lobbying government for more, to will need to provide evidence of robust tackle them. funding and a track record of large-scale The council is determined to raise the development delivery. Jones Lang LaSalle city’s profile and aspirations with a grace- are leading the establishment of the LABV. ful new bridge, England’s tallest, a £117m With regional development agencies now project which has just received the govern- Market driven: growing the auto industry is part of an economic masterplan Bloomberg abolished, Sunderland must make common ment’s go-ahead. It will improve road links cause with six other local authorities via and provide a great marketing image. Fit- the North East Local Enterprise Partner- tingly, for a place with a practical disposi- vehicle production were among the key Nissan’s plant is now a £3.5bn invest- ship to boost economic growth. Whilst Tees tion, this will be a “functional landmark”. economic opportunities highlighted. ment; recent model announcements will Valley, the other LEP in the north-east, “We need to demonstrate to people what Thanks to automotives, Sunderland’s boost its workforce to 6,225 and raise immediately presented a united front, the we are,” explains Mr Watson. “We haven’t economy this year has enjoyed more posi- annual plant volume to more than 550,000 NE LEP’s gestation was protracted. been very good self-publicists.” tive news than many areas of the UK. units next year. Both production lines will To those who ask why unity, on the lines The city’s 15-year economic masterplan That fact was not lost on George Osborne, soon operate around the clock for the of Manchester’s LEP model, has been diffi- was launched in autumn 2010, before it was UK Chancellor, who visited in August to first time in the plant’s 26-year history. cult, Mr Smith says: “We have two eco- known that UK growth would remain so see construction progressing on a £22.5m Nissan’s investment has triggered a wave nomic bases; a Sunderland-based economy sluggish for so long. But the plan’s vision, warehouse for Vantec Europe, an automo- of supplier investment too. Next year sees and a Newcastle-based economy.” But, he “an entrepreneurial city at the heart of a tive logistics supplier and the first major the launch of Sunderland production of the adds: “The issue is, what works?”. low-carbon regional economy” remains the investor attracted to any of England’s new zero-emission Leaf. “They are saying they are working goal. Software, offshore energy and electric wave of Enterprise Zones. The low-carbon commitment extends to together better than before; I’m beginning the municipally owned port, which for to see some evidence of that,” observes much of its 300-year history exported coal. Kevan Carrick, principal partner in New- Recent investment in the port, which has castle-based JK Property Consultants. “We immediate access to the open sea, has can only grow if we grow collaboratively.” Contributors » enhanced its pitch for offshore wind and Sunderland and Newcastle cannot afford subsea engineering support work. to be “hostile brothers”, says Bernie Calla- Software is vital to Sunderland’s growth. ghan, dean of Sunderland University’s busi- Chris Tighe Steve Bird For advertising details, In partnership with BT, it is poised to ness and law faculty. North-east Correspondent Designer contact Julia Woolley become the first city in Britain to offer Sunderland used to like to point out that Phone +44 1473 652 964 wall-to-wall superfast broadband coverage. its population was bigger than Newcastle’s. John Reed Andy Mears Email [email protected] It has also built a private city cloud, in Today, it has 283,500 people, and Newcastle Motor Industry Correspondent Picture Editor partnership with IBM, which has desig- 292,000. But, Mr Callaghan observes, China All editorial content in this nated Sunderland its first UK “smarter has 120 cities with more than one million William Hall On the cover supplement is produced by city”. This cloud, one of Europe’s first, people and, by 2025, it will have eight mega- FT Contributor An artist’s impression of the the FT. should help local businesses and start-ups cities with more than 10 million people. New Wear Crossing, which Our advertisers have no and cut the council’s operating costs. A “Compared to that, the north-east of Eng- Aban Contractor will become the tallest influence over, or prior sight £10m Sunderland Software Centre, a base land is a dot,” he says. “We all need to Commissioning Editor bridge in England. of, articles or online material. for new software companies and innova- change the way we think.” 4 FINANCIAL TIMES WEDNESDAY OCTOBER 31 2012 FINANCIAL TIMES WEDNESDAY OCTOBER 31 2012 5 Business Guide to Sunderland Business Guide to Sunderland

The calibre of the local workforce mat- ters too. “As a place to do business, Sunder- land is a wonderful place,” says Robert Walker Filtration William Hall looks at a Forrester, chief executive of Vertu Motors, company that exports to 60 countries Can-do attitude the UK’s ninth biggest motor dealer, whose head office is in Gateshead. “It has one of the hardest working work- British Government ministers cent of its staff on training forces I’ve ever come across.” Vertu’s Sun- often talk enviously of the courses, ranging from derland dealership is the best performing of success of Germany’s industry specific diplomas in its 86 nationally. Mittelstand, the family owned Compressed Air offers business Commitment to manufacturing has businesses that are the Management through to helped sustain its importance; the council’s bedrock of Germany’s export- engineering and MBA latest business promotion, “Make it Sunder- led economy. If only the UK qualifications. It is a land” was launched in mid-2012. could replicate the Mittelstand measure of where the Automotives account for more than business model, with its company stands in the and residents an 12,000 of Sunderland’s estimated 15,744 emphasis on fostering long- manufacturing value chain manufacturing jobs – a potentially worry- term investment and exports, that 10 of its staff are ing dependency. then the UK economy would studying for MBAs, Recent investments include the UK’s first be in a much better shape, compared with seven foam manufacturing plant, opened by they argue. apprenticeships. Detroit-based Lear Corporation. This The next time Vince Cable, Ms Walker is reluctant to economic lifeline brought the total of new jobs announced in the UK business secretary, is name her company’s major Sunderland to 15,000 over the past 10 years. in the north-east, he could customers, but many are The historical domination of big indus- do a lot worse than check in well-known, original trial workplaces has resulted in low levels to see Brian and Lianne equipment manufacturers Walker, the father and in Europe. daughter team behind Walker “What we are good at is Filtration, which manufactures finding a niche market and ‘It has a well-earned reputation a wide range of filtration then really focusing on our for being innovative, equipment for compressed innovation and providing air, compressed gas, vacuum some really high-value Economy Innovation is key if the city is to find its entrepreneurial and a city pump and medical manufactured products in in which companies find it applications. partnership with our way in the new industrial landscape and attract the Walker Filtration, based customers,” says Ms easy to do business’ close to the A1 in Walker, who has been with companies of the future, reports Chris Tighe Washington, could easily be the company for 24 years. mistaken for a member of While many UK Germany’s Mittelstand. It has engineering companies have underland has a clear agenda for served by a cluster of synchronous suppli- City focus: Sunderland printing sector as well as for Gentoo, the of entrepreneurship which initiatives such revenues of £22m, 220 outsourced their production companies within its area – to be ers who transport their components University is estimated housing group, and Hays Travel, the UK’s as Software City aim to tackle. It has also employees, and exports close to low-cost centres, such as the easiest place in the UK to do directly to the car production lines. Twenty Figures that are beginning to stack up to contribute more than largest independent travel agent. left a legacy in some communities of low to 90 per cent of its output China and India, Walker business. automotive-related manufacturers are £100m to the local Previous government incentives helped skills and benefit dependency. to more than 60 different Filtration has always kept its One of its biggest assets in ris- based in the Sunderland area. ●Employment rate: June 2012, Sunderland ●Inward investors in Sunderland: 72. economy a year reclaim former shipbuilding land, creating The council – like all UK local authorities countries. The company has manufacturing base in the Sing to this challenge has been its large Readily available sites have also fostered 63.7 per cent, UK 70.3 per cent. Ownership (in full or part): US 30, France 8, new business locations such as the Sunder- under pressure to cut spending – has just moved into a new UK, and has been expanding tracts of readily developable industrial call centre clusters, particularly at Doxford ●Unemployment: Sunderland 12.2 per cent, Germany 7; Japan 7. Total jobs: 23,555. land Enterprise Park. This houses the pledged to avoid compulsory redundancies. factory, three times as big as it significantly over the past land, served by fast dual carriageways. It International and Rainton Bridge, and a UK 8.1 per cent. ●Sunderland city council 2012-13 total gross North East Business and Innovation Cen- It has shed 890 staff and now employs 7,000, its predecessor, and has nine few years. has now enhanced this potential by secur- raft of logistics companies. Call centres in ●Manufacturing Gross Value Added (2009): expenditure: £729m. Budget reductions made tre, home to 120 smaller companies. excluding education. acres of adjoining land for “Historically, the north- ing 32ha of the North East Local Enterprise 2010 provided about 10,000 of Sunderland’s Sunderland 24.2 per cent of GVA, UK 13.7 2010-13: £99m. Total likely reductions over Keen to create employment, Labour- Paul Woolston, senior partner at PwC in future expansion. east has been known for its Partnership’s (NE LEP) Enterprise Zone. 109,130 jobs. Big employers in this sector per cent. Overall, GVA per head: (2009) next three years: £80m plus. controlled Sunderland city council has long Newcastle, says Sunderland, his home city, Over the past three years fantastic engineering skills. Sunderland’s three EZ zones offer occupiers include nPower, Barclays, T-Mobile, EDF Sunderland £16,469, UK £20,341. ●Sunderland University’s annual turnover: adopted a can-do attitude to attract busi- is key to the future success of the NE LEP, it has increased its workforce As a family we are born and enhanced capital allowances or business Energy and UK Asset Resolution. And ●Percentage of manufacturing jobs in £130m. Estimated annual contribution to the ness investment, emphasising the partner- which he chairs. “It has a well-earned repu- by close to a third, grown its bred within the region and rate discounts. logistics operators, such as Asda, serving Sunderland (2010) 14 per cent, GB 9 per Sunderland economy: more than £100m. ship approach. This is appreciated by man- tation of being innovative, entrepreneurial sales by more than 50 per have a loyalty to the area,” Green sites in Washington, the former sectors including food, drink, automotives cent. Centre for Cities ranks Sunderland 10th Staff: about 1,400. Ongoing programme of agers of inward investor plants, who often and a city in which companies find it easy cent, and boosted its exports says Ms Walker. new town, and adjacent to the A19 and and outdoor clothing, employ about 2,500. of 63 British cities on this measure. capital development: £75m. have to compete within their global parent to do business.” The city is more resilient by more than 75 per cent. Right from the start, A690, have, over recent decades, attracted Outdoor clothing is an important Sunder- ●Working age benefit claimants (Feb 2012): FOOTNOTE: Sunderland-based Edward organisations for new projects. Paul Will- now than in his youth in the 1960s, he says. Its success has not gone Walker Filtration’s growth inward investors and helped them grow land sector; Berghaus and Brasher are Sunderland 20.6 per cent, GB 15 per cent. Thompson is the largest supplier to the son, plant controller of the Rainton Bridge The challenge for the future is to move unnoticed. Earlier this year it was export driven. The key and reinvest. Space to expand has also headquartered there, and Nike has its UK ●Business start-ups per 10,000 population world’s bingo industry. It has the capacity to plant of TRW, a US-owned automotive sup- the city’s economic activity up the technol- picked up its fourth Queen’s to its export success is helped develop strong indigenous compa- head office there too. The city is the UK HQ 2010: Sunderland 16.8, UK 37.8. Centre for produce 200m bingo tickets a week. plier, praises the council’s support and the ogy and value chain, says Ian Williams, the Award for International Trade. researching its markets very nies, such as Walker Filtration (profiled). for Deutsche Bahn, the German rail opera- Cities ranks Sunderland 64th out of 64 UK (Sources: Sunderland city council, Centre for power of its friendship agreement with council’s business investment director. Brian Walker, 65, who thoroughly and an ability to Land availability has been vital in the tor, which acquired home-grown Arriva. cities on this measure. Cities, ONS: NOMIS) Washington DC. “They are selling us back “If you do that, you are less vulnerable to founded the company in 1983 make quick decisions. expansion of Nissan’s operation, which is Sunderland is also the base for a significant to America; it helps us get on the map.” cost and other competitive type pressures.” along with his wife Carol, was It started by exporting to awarded an MBE for services the UK’s immediate to international trade in 2001. Continental neighbours, Daughter Lianne, 42, who has where sales leads could be been running the business converted into orders since 2005, was given the quickly and easily, before same award in 2009. moving into markets which Young to benefit as partnerships offer new skills Clearly, Walker Filtration is are more challenging, and no flash-in-the-pan operation. further away. It is a fast-growing, family-run The UK has a lot of business (Lianne’s sister lessons to learn from the lished by the Centre for Cit- However, Sunderland’s above the national average “Young people are recog- Heads down: Sunderland Building, the university’s tradition has been under- Barbara is also a senior German economy, says Ms Education ies think-tank, 13.3 per cent education system has been and the best result of all the nising the importance of College has a 99 per cent largest teaching space. lined by the decision of executive), with a long-term Walker. “They are very of Sunderland’s working improving steadily over the 12 north-east regional an education in helping pass rate for A-level students The university, one of six SCM Pharma, a local drug time horizon whose growth progressive and very Millions have been age population had no for- past five years. authorities. secure jobs in the future. shortlisted for this year’s company, to relocate part of has been built on the back of committed towards business spent on facilities mal qualifications, against Keith Moore, executive The city’s Education Whether they’re choosing Times Higher Education its business to the univer- exports, not the UK market. growth,” says the woman a national average of 11.6 director of children’s serv- Leadership Board, chaired to study A-levels or voca- which has about 17,000 stu- Awards for university of sity’s new science complex. “As a family business, as who appears to have picked and it is paying off, per cent. ices at Sunderland, says by John Mowbray, presi- tional courses, we’ve seen a dents, has also been enjoy- the year, has recently Carmaker Nissan works opposed to a large corporate, up a few tips on how to writes William Hall Only 23 per cent of its that, regardless of the levels dent of the North East noticeable increase in enrol- ing rapid growth. Student opened a new campus at closely with the university’s we are interested in creating run her own business workforce had NVQ 4 quali- of deprivation in the city, Chamber of Commerce, ments for this academic applications have risen 39 London’s Canary Wharf Institute for Automotive a successful and long- from Walker Filtration’s fications (equivalent to a Sunderland children are focuses on the city’s educa- year, up 5 per cent on last,” per cent over the past four with a projected capacity of and Manufacturing term sustainable German certificate of higher educa- now performing above aver- tional strategy to make sure says Nigel Harrett, the col- years and the facilities at 3,000 students, and contin- Advanced Practice. business. We are not customers. Improving education and tion) against a national age against national stand- that pupils leaving Sunder- lege’s acting principal. the university’s two main ues to expand its distance- Sunderland University is in it for short-term skills is one of Sunderland’s average of 31.3 per cent. ards. land’s schools have the The college is building a campuses, on either side learning operations interna- critical to the city’s long- gains,” says Ms top priorities, if not its While Sunderland’s level Children achieving Level right sorts of qualifications new engineering facility at of the , have tionally. It runs pharmacy term success, and this fact Walker, who has an top priority. The city, in of skills and qualifications 4 or above in English and needed by local employers its Hylton campus, close to benefited hugely from a degrees in Malaysia, and is embedded in the city’s MBA from Sunderland common with the rest of is not much different from Maths at the end of Key across all phases of educa- the Nissan plant, which has £75m capital investment was the first UK university Economic Masterplan. University. Over the north-east, has long suf- many northern cities, it Stage 2 have risen to 81 per tion from early years to uni- been designed specifically programme. to win a licence to offer its “The university has the past year fered from a below average contrasts poorly with cent in 2012 – an increase of versity. to meet industry’s needs. The look of the university courses in Vietnam. always been very closely Walker number of school leavers regional cities such as 10 per cent over the past , When completed, it will in- has been transformed with The university’s research connected to the city and Filtration has going to university, and Cambridge, Brighton and three years. Meanwhile, which has 4,000 students clude the latest equipment a new £8.5m science com- strengths lie in areas such its people. It has always had sent 87 per serious deprivation has York, which are increas- children achieving five or studying a mix of A-level for student learning across plex, a £12m investment in as computer science, phar- a very strong sense of civic been reflected in poor ingly competing with Sun- more A*-C grades at GCSE, and vocational courses, has the subject, including man- the City campus, a £12m macy, and automotive. It mission – economic, social Brian and school exam results. derland when it comes to including English and achieved a 99 per cent pass ufacturing, production tech- student village with 550 helped create the Sunder- and cultural,” says Profes- Lianne According to the annual creating new jobs in high- Maths, have risen to 63 per rate for A-levels for the nologies and welding. rooms, and a £7m invest- land Software City initia- sor John Macintyre, dean of Walker Cities Outlook 2012, pub- tech industries. cent. This is 5 per cent fourth year in a row. Sunderland University, ment in the Priestman tive. Its strong pharmacy the applied sciences. 6 FINANCIAL TIMES WEDNESDAY OCTOBER 31 2012 FINANCIAL TIMES WEDNESDAY OCTOBER 31 2012 7 Business Guide to Sunderland Business Guide to Sunderland Fans cheer a team Old industrial assets offer a way forward

The Bridges attracts more Development than 20m visitors a year. now thriving in a Sunderland’s hotel defi- Chris Tighe looks at ciency is also being plans to give a city addressed, with progress on three hotels by Hampton by centre the heart it Hilton, Premier Inn and league of its own need to grow Travelodge. The opening is also imminent of the new £10m Sunderland Software The cold winds of recession Centre. are being felt in Sunderland The long debate over as keenly as elsewhere. In Tesco’s plans for the Vaux Football community The club stands as a beacon in the 20 years since it was site has been resolved, but granted city status it has subsequent development a place that has seen tough times, writes Chris Tighe grown as an automotive plans did not go ahead. The centre and diversified its city council, which now employment base. owns the site, has been hen Sunderland and New- of finishing in the top 10 of the Premiership But there is a downside to clearing and landscaping it. castle United clashed in this this season and qualifying for the Europa the striking office develop- It plans to realign St Mary’s month’s Wear-Tyne Derby, League. It invested more than £20m during ment on the city fringes, Way, which will form part Sunderland fans were follow- the summer’s transfer window. such as the Doxford Inter- of the strategic corridor ing the action with live match Invest in Africa, a not-for-profit initiative national Business Park from the new bridge across Wcommentary – in Swahili. backed by Tullow Oil, promotes Africa as where 8,000 people work. the River Wear to the port, The visit to the by an attractive investment destination and a As well as having to face to create a riverside central Ulimwengu wa Soka, BBC Swahili’s flag- fast growing economy, challenging the the competitive forces buf- business district and a site ship football programme, enabled support- belief that the continent is only about pov- feting well established abutting the retail centre, ers in locations such as Nairobi and Dar es erty and distress. It has become the club’s retail areas all over the UK, giving great potential to Salaam to keep up with the action, just as principal partner and shirt sponsor from Sunderland’s city centre enhance that area. they did on New Year’s day when the Black the 2012-13 season onwards, a deal that has had to cope with a loss The council, which has Cats beat Manchester City in the last gives the Invest in Africa brand potential of economic vibrancy from allocated £12m over the minute of play. exposure to the Premier League’s world- its heart as office develop- next five years from its Rising interest in Sunderland games wide audience of 4.7bn people. ment focused on the fringes budget to support city cen- among football fans in east and central For Sunderland AFC, whose current first and on Washington new tre development, believes Africa illustrates the increasingly global team includes Stephane Sessegnon from town. this site can attract thou- perspectives of Sunderland Association Benin, the deal brings not only sponsorship While 33 per cent of New- sands more jobs into the Football Club. The Invest in Africa logo on – the value has not been disclosed – but castle’s jobs, and 25 per area. Given the current this season’s new strip underlines the huge potential to build a fan base in a cent of Leeds’, are in their tight financial climate, it trend. continent of 1bn people and deepens the city centres, the Sunderland wants to maximise poten- Sunderland AFC’s existence, its brand club’s affiliation with African players. figure is just 16.5 per cent. sapped morale and created businessman, who worked river mouth, and City Cam- tial by setting up a LABV, a profile and success, remain at the core of “It’s building awareness of the club,” “We need more people in a highly visible, neglected for some years in Sunder- pus, the other side of the centre Local Asset Backed Vehicle. its home city’s sense of well being and says Gary Hutchinson, Sunderland AFC’s the city centre earning and 25 acre central site, lying land, suggests the centre city centre, has invested attracts This proposed 50-50 partner- community life. As Niall Quinn, its much commercial director. spending,” says Vince Tay- dormant amid wrangling suffers from having “no heavily in its facilities and 20m visitors ship with a private sector respected former chairman used to remark, “We hope to become the club in Africa Battle lines: Sunderland and Newcastle take to the field in this year’s derby PA lor, the city council’s head over its redevelopment. bourgeoisie”. sought to integrate them a year partner, which the council Sunderland, lacking a cathedral, has the people want to support. We want to be an of strategy and perform- History and topography Bernie Callaghan, dean of better with the city centre. will begin seeking shortly, Stadium of Light. internationally known and respected brand ance. have not helped; steep city Sunderland University’s An example is its City Cam- should accelerate develop- Its entrenched rivalry with near-neigh- playing in Europe.” and this region,” says Mr Hutchinson. Sun- and Sunderland is estimated at £42m. More A report, Hidden Poten- centre riverbanks and the faculty of business and law, pus, focus most recently of ment of key sites, including bour Newcastle, a somewhat fractious Ellis Short, the London-based American derland is also unusual in having a female concerts are under negotiation. tial, by Centre for Cities, pattern of development says Sunderland remains in the £7.5m Sciences Complex the Vaux land. relationship that can be traced to the Par- businessman who acquired Sunderland in chief executive, Margaret Byrne. Charitable activity that involves more the think-tank, published in spanning centuries prevent some ways a relatively redevelopment, which “At the moment our large liamentarian-Royalist divide of the 17th 2009, says the deal sets a new benchmark The club is itself part of Sunderland’s than 42,000 young people and their families mid-2012, identified Sunder- Sunderland feeling at its small working class town. includes a new public industrial portfolio just sits century’s civil wars, now finds overt commercially. It has also triggered involve- business fabric, employing 1,200 people full each year across the north-east is also a land, along with Preston, heart like a riverside or sea- “There are only small pock- square, the Quad. It has on our balance sheet,” expression in derby matches. This month’s ment from other sponsors, including Team and part-time and turning over £80m annu- part of the club’s activities, addressing Derby and Wakefield, as side city: both these aspects ets of what you might term also developed a number of explains Malcolm Page, the was the 147th of an epic series of gladia- Korea. Mr Short regularly attends home ally. The 19 league and two cup games needs within its own community. Its Foun- places whose weak city cen- remain underexploited. relative wealth,” he says. student residences, giving council’s executive director torial contests dating back to the 1888-89 games, but is a much lower profile figure played each year bring about £45m into dation of Light, whose team includes more tres are restricting eco- As the city council’s eco- But there is progress; the the city more youthful and of commercial and corpo- season. It resulted in a 1-1 draw, the 48th than Mr Quinn. Sunderland, much of it going to businesses than 100 professional teachers, health nomic growth. Of 105 busi- nomic master plan candidly city centre is seeing new cosmopolitan inhabitants. rate services. These assets out of the 147 games. Newcastle have won But another sign of the club’s openness outside the ground. workers, football coaches, family learning nesses that moved into Sun- acknowledged, it lacks that investment and capitalising Current city centre make money for the council 53 and Sunderland 46. to fresh perspectives was the appointment The Stadium of Light, which seats 49,000, officers and youth workers, encourages derland between 1998 and “city feel”, the elusive buzz on key assets – the univer- investments include the but are not, he says, “being But alongside this intense local rivalry, of David Miliband, the former foreign secre- has also developed a reputation for big rock education and community enrichment. 2008, just three moved to factor. “This is a city with a sity, the and the £15m extension of the sweated”. “We think we can Sunderland AFC’s Invest in Africa partner- tary and Labour MP for neighbouring concerts. Bruce Springsteen, Coldplay and Mr Hutchinson, Sunderland born and the city centre. university but it doesn’t Bridges shopping centre. Bridges shopping centre use our assets more effec- ship, the first of its kind in British football, South Shields, as non executive vice-presi- Take That are among the acts to have bred, says the club feels a moral duty to its The mid-1990s closure of feel like a university city,” The university, which has into High Street West, with tively to leverage both pri- shows how it is looking outwards and dent. played so far, to audiences totalling 650,000 home area. “The club’s a leading light in Vaux Brewery compounded observes Mr Taylor. two main sites, St Peters, a 60,000 sq ft Primark vate sector investment and ahead. This objective coincides with its aim “He’s a fantastic ambassador for the UK people. The economic benefit to the club the city. It’s a beacon,” he says proudly. the problem. It cost jobs, One successful north-east on the riverside near the due to open this autumn. expertise.”

then moved to nearby Twentieth century is the location of St University’s Fine Art, the gardens, the bronze by Bryan Talbot, who Jarrow, now in south Sunderland glass ranged Andrews, an imposing Performing Arts, Culture Walrus statue by Andrew made the city his home. A walk through the ages and a plethora of skills Tyneside, and became the from Jobling’s graceful Art church often described as and Social Sciences Burton. And there is Terry first man to write books in Deco pressed glass to “the cathedral” of the Arts disciplines. It houses an This commemorates the Deary, creator of the English. The Venerable Pyrex casserole dishes, and Crafts movement, with art gallery soon to open to Sunderland connections of one-man phenomenon, the Bede’s works, including used in millions of William Morris carpets, the public with another hugely individual Horrible Histories series. Art and leisure It should perhaps be no contemporary art specialist The Venerable who is intrigued by the make sense of The Ecclesiastical History kitchens. Ernest Grimson furniture, exhibitions of creative spirit – Son of a butcher, he was surprise that LS Lowry, and associate dean in Bede: the first way his home city is Sunderland’s diverse of the English People, are The closure in 1997 of and a tapestry, The modern works. Charles born and brought up in that most distinctive and Sunderland University’s man to write changing, yet retaining its influence, over centuries, beautiful as well as Hartley Wood raised fears Adoration of the Magi, by For those Dodgson, Sunderland. This spot by the individual of painters, faculty of arts, design and books in English identity. This view casts on visual arts. That informative. that art and craft glass Burne-Jones. St Andrews, wanting to view better In the Sunderland spirit River Wear has should have adopted media. novel illumination, well involvement starts, Within two years of making would be lost to consecrated in 1907, was Lowry originals, known as of innovative Sunderland in the later Like Lowry, Sunderland beyond art, on the arguably, in 672 or 673AD Bede’s birth, glassmaking Wearside, but that largely funded by John painted and Lewis individualism, Mr Brennan always been at ease years of his life as his is, he says, slightly on the longstanding prickly with the birth of Bede in was established in England tradition is kept alive at Priestman, a wealthy local drawn in Carroll, is himself in the forefront with modernity, second home, staying in edge; engaged but, due to relationship between Wearmouth, now when St Benedict Biscop the , shipyard owner. Sunderland, writer of Alice of a methodology, called Room 104 of the Seaburn its geography, offering a and Geordies and , by the brought glaziers from Gaul now part of Sunderland In 1939, he opened the the place to in Wonderland. the manoeuvre which finds Chris Tighe Hotel – today the Marriott. somewhat different also on Sunderland’s Wear. Bede was taken at to make stained glass University, just beside Priestman Building, in go Lewis develops guided walks as Lowry, a Mancunian perspective from the sense that its importance the age of seven to the windows for the new the ancient St Peter’s central Sunderland. is the Carroll’s performance art. whose paintings of centre. “It’s the importance and contribution to the monastery of St Peter at monastery at Wearmouth. Church. Commercial Originally a library for Sunderland frequent visits Visitors to the city can industrial street scenes are of a place or individual north-east Wearmouth, just yards Glassmaking in Sunderland glass manufacturing Sunderland technical Museum to Sunderland also experience this on the instantly recognisable, was that has a real input over region has from the present in subsequent centuries in Sunderland ended in college, it has just been and inspired the Sunderland Connect 700 a bit of a loner and, in a a long period of time, but often been Sunderland University St went through many 2007. reopened, following a £6.5m Winter curious graphic bus, by using a Campus way, Sunderland is too, has that outside kind of underrated. Peter’s campus, where he phases, from high art to Roker, a residential refurbishment, to Gardens. While novel, Alice Trails smartphone app that says Tim Brennan, a quality,” says Mr Brennan, It also helps lived until he was 12. He highly functional. suburb near the North Sea, accommodate Sunderland there, admire, out in in Sunderland, Mr Brennan has developed. 8 FINANCIAL TIMES WEDNESDAY OCTOBER 31 2012 Business Guide to Sunderland

engineers are Techniker. The bridge will be the second biggest civil engineering project in the north-east in recent years; the first is Creative landmark the £260m new Tyne tunnel, completed in November 2011. The new Tyne Crossing, commissioned by the Integrated Passenger Authority, and designed and built by Bouygues Travaux Publics UK, has just offers better links won the top civil engineering award at the British Construction Industry Awards in London. By doubling the road vehicle tun- nel capacity the new tunnel has greatly improved the flow of traffic along the north-south route running between Sunder- Transport Great feats of engineering are once again land and Washington. Sunderland’s direct rail link with London set to help the city thrive, writes Chris Tighe On track: light rail offers commuters choice Kings Cross, launched in 2007 by Grand Central after a 20 year gap, continues, although the open access operator was odern cities crave landmarks – crossing will connect Castletown, east of offering a riverside development belt – acquired in November 2011 by Arriva. and what better than an eye- the main A19 route, to brownfield land excellent road access. The coalition govern- Sunderland-based Arriva, one of Europe’s catching new bridge, the tall- needing regeneration on the south bank at ment has offered £82.5m towards the largest transport services organisations, is est in England, that looks Pallion. bridge, from a national £630m fund for local itself now part of a much bigger entity, stunning and fosters economic The bridge forms part of a transport cor- authority projects that assist economic Deutsche Bahn, having been bought by the Mregeneration? ridor that will provide quick access from regeneration and provide jobs. German passenger and logistics service pro- That is the thinking behind the proposal the A19 to the city centre and the port. This Mr Watson, who leads a council where 64 viders in 2010. Arriva still has its head for a bridge across the River Wear in Sun- abuts the North Sea and is seen by the of the 75 councillors are Labour, says he office in Sunderland, where it began in 1938 derland: a graceful crossing of two curving council as an important asset in pursuing had feared a coalition government might be with the opening by the Cowie family of a steel towers, the smaller about 140 metres offshore renewable energy and subsea engi- a disadvantage, but the bridge suggests second-hand motorcycle shop. high and the taller, western one 190 metres. neering business activity. This improved that has not proved the case. Deutsche Bahn subsidiary DB Regio oper- The project, costing nearly £120m for the access could also benefit occupiers of the “We’ve wanted a new bridge over the ates the Tyne and Wear Metro, the light bridge and approach roads, has just Low Carbon Enterprise Zone, west of the River Wear for 50 years. This government rail system that links Sunderland to Metro received government consent and contrac- A19, and existing businesses in Washing- has granted us the money for that.” services around Tyneside and to Newcastle tors are being invited to tender. ton. The project has a target completion The council, which estimates the bridge Airport. DB Regio won the Operator of the “It will give Sunderland a totemic land- date of the end of 2015. will deliver a return on investment of £4 for Year accolade for the Metro at the 2011 mark to recognise ourselves by,” says Paul This road corridor also enhances the each £1 invested, has committed about Light Rail Awards. Watson, leader of the city council, which development potential of the former Vaux £30m to the project from its strategic All five local authorities in Tyne and has championed the project. “It will engen- brewery site, now publicly owned and investment reserve for capital projects. Wear, including Sunderland, jointly hold a der a feeling of place in the community.” Sunderland’s best city centre regeneration A bonus of the graceful design is that it 51 per cent stake in Newcastle airport; Once, a sense of identity was engendered opportunity. The new road will give the is the work of a local architect, Stephen negotiations on the sale to another party of by shipbuilding and mining along the river- site – with one area forming an extension Spence, who also designed the Infinity the 49 per cent stake held by Copenhagen banks the bridge will link. The new Wear of the central retail area and the other Bridge in Stockton on Tees. Structural Airports are in progress.