Mersey Dee Alliance Business Plan, 2012-2015

1 Executive summary This is a plan for the enactment of the strategy agreed by the MDA board in January 2012. It continues the new emphasis in the Alliance’s activities towards developing and supporting the region’s knowledge economy – towards making a practical difference.

The objectives of the MDA are to: - Enhance the profile and identity of the North Wales/North West border region; - Maintain and develop the region’s competitiveness. The activity elements proposed in support of these are to: - Develop knowledge economy networks; - Assemble and disseminate information on business support to all knowledge-based businesses; - Focus activities on key business sectors as identified by the 2012 Sector Trends Report, namely, advanced manufacturing, energy and environmental technologies, and business and financial services; - Continue to exert influence in support of improved infrastructure for the region.

The core of the Alliance’s activities is the development of its Innovation Network based on its regular business breakfasts. Other activities proposed include an annual innovation award, continuation of specialised seminars, and events to support manufacturing and supply chain interventions.

One proposal with potential to assist in all the activity elements is the establishment of an informal advisory group or ‘think tank’ managed by the MDA, consisting of key players representing the region’s knowledge economy, including a large firm, an SME, a university, the Chamber and a private sector innovation organisation such as C-Tech. Its objectives would be to keep abreast of the changing needs of and opportunities for knowledge-based businesses and suggest activities to help, and to be involved in grant applications to support the region’s knowledge economy, which the MDA would both facilitate and gain additional resources.

Although targets and outcomes for all these activity elements are given, the plan’s full implementation depends on the necessary resources being available, and the principle must hold that no activity should be embarked upon unless the resources are available.

The engagement of an apprentice has been approved, which will release time of the MDA staff to seek further resources as well as delivering this plan.

A budget is included for the whole programme, with costs of individual activities identified. It demonstrates that additional resources are needed to implement the agreed strategy in full, with clear identification of the funding gap and the efforts being made to bridge it. MERSEY-DEE ALLIANCE - 3

2 Introduction and context This plan has been produced by Professor John Allen at the request of the MDA Board. The help given in its production by Melissa Parsons, Nicola Powell and Chris Koral is gratefully acknowledged.

2.1 The region The area comprising North East Wales, West Cheshire and the Wirral is unique in the UK in being a major economic area divided by a national boundary. It has a population close to a million and is the location of a substantial range of important industrial and commercial activities. Of particular significance are aerospace, the automotive and chemical industries, financial services and other advanced manufacturing. Complementing these sectors of wealth creation is a large rural hinterland and areas of outstanding environment and scenic beauty, which thus enhance the quality of life of those who live and work in the region.

2.2 The Mersey-Dee Alliance The Mersey Dee Alliance (MDA) was formed in 2007 out of the recognition of the shared economic, social and environmental cohesion across this area, and was based on decades of both formal and informal collaboration by local authorities and organisations within it.

The background to the formation of the Alliance, its original eight partners and objectives are set out in its Business Plan of 20081. A delivery plan2 describing the objectives and actions needed in more detail shows that the main areas were:

 Developing and marketing a portfolio of key sites;  Collaboration to facilitate the delivery of these sites;  Support for development of technology and manufacturing using advanced composite materials;  Promotion of the importance and opportunities for careers in manufacturing in schools within the region;  Formal statements in support of various programmes of better transport infrastructure;  Initiatives aimed at demonstrating and enhancing the environmental attractiveness of the region, with a strong emphasis on sustainability.

2.3 A change of emphasis The changes of Government in 2009 led to a rethink of the structures of support for economic development on both sides of the border. This resulted in major re-organisations stemming from the Welsh Government’s Economic Renewal policy3; in England they led to the concurrent demise of the Regional Development Agencies and formation of the Local Enterprise Partnerships (LEP)4. At the same time, the level of resources available to support economic development were substantially restricted and more closely focused.

Although its partners continue to unanimously and strongly support the continuation of the Alliance, such major policy changes have required a reassessment of the Alliance’s priorities, approach and level of activity.

1 Mersey-Dee Alliance business plan 2008-2011, MDA, 2009. 2 Mersey-Dee Alliance draft delivery plan 2008-2011, MDA, 2009. 3 Economic renewal: a new direction, WAG, July 2010. 4 Local growth: realising every place’s potential, Dept. Business, Innovation & Skills, 2010. The situation was well summarised in a report on work by Amion for the MDA5 in 2010. It concluded: "Given the tight financial constraints under which the public sector is likely to have to operate after the next General Election, it is increasingly important to focus available resources (people and money) in support of a limited number of deliverable projects.”

This reorientation was entirely endorsed by Pythia Consulting in its subsequent work on developing an activity programme for the MDA6 which was agreed by the board in June 2010. Its main focus was on doing practical things to assist the interconnection and growth of knowledge-based SME rather than to engage solely in discussions of regional master plans and locations for industry. The importance of a strong regional knowledge economy has been emphasised in a range of recent reports on the topic.7,8,9

A second but equally important recommendation from Pythia was that the MDA should be expanded to include the private and university sectors, in order to listen more directly to those representing business interests and to be more agile in responding to their requests. The involvement of universities in other regions where efforts are being made to expand the knowledge economy has been shown to be important. Thus the inclusion of Glyndwr and Chester Universities, which are located within the MDA region, is considered to be particularly valuable

2.4 The current programme The programme proposed on the above basis commenced in October 2010 and continues throughout 2012. In brief, its aims were to:

 Connect knowledge-based companies across the region;  Encourage innovation and networking between entrepreneurs and those providing services to them;  Exploit and extend, at a modest level, the well-identified special strengths of the region;  Enhance the image and profile of the MDA. It should be an alliance with a clear, cross-border remit which works in collaboration with the member agencies in England and Wales.

The previous year’s activities in achieving these aims are briefly described below.

2.4.1 The MDA Network The first action under the new programme was to establish an MDA Network of knowledge-based businesses in the region, together with the organisations which support the growth of such businesses, both public and private. In practical terms, the Network is based on a series of business breakfasts held approximately every 6 weeks in carefully selected locations throughout the region. The first was held at Optic Glyndwr at St Asaph Business Park in October 2010.

A further 10 breakfasts were held up to May 2012 and they continue to this day. They have proved remarkably successful, regularly attracting over 100 delegates, around half representing SME. More detailed survey responses from the SME themselves are very positive10.

Effective though the breakfasts have been, the principal reason for holding them has been to establish the MDA Innovation Network, aimed at offering informal and practical advice to SME. This is not a

5 Developing the knowledge economy across the MDA area. Amion Consulting, report to the MDA board, March 2010. 6 The MDA activity programme: rationale and prospectus, Allen, Pythia Consulting , June 2010. 7 A strategy for sustainable growth, Dept. for business, innovation and skills, July 2010. 8 A plan for growth in the knowledge economy, Levy, Sissons & Holloway, The Work Foundation, June 2011 9 The next wave of innovation, Sissons, The BIG innovation centre, September 2011. 10 Evaluation of MDA Innovation Network Business Breakfast, 2011. MDA, 2012, circulated to Board. MERSEY-DEE ALLIANCE - 5 matter of the MDA actually undertaking advisory or professional work, but of signposting the enquirer to someone who can.

At the same time, the Network has undoubtedly raised the profile and reputation of the MDA as an organisation focused on offering practical help to business.

2.4.2 Involvement of the regional universities Discussions have been held with Chester and Glyndwr, the two intra-regional universities, on possible activities in support of the region’s knowledge economy.

Agreement has now been reached between the two universities to develop a joint foundation degree in food technology.

It is important also to tap into the skills of those universities on the periphery of the MDA. Thus, a post-breakfast MDA seminar held in Wrexham on the topic of innovation was given by the University of Liverpool Management School.

2.4.3 Encouragement of manufacturing skills Advanced manufacturing is generally recognised as a special feature of the MDA region, and discussions with those involved in or supporting manufacturing have been held, in particular over the plans to develop the Enterprise Zone around Deeside. In more immediately practical terms, several Make it in Manufacturing events have been held throughout the region, which have been enthusiastically received by several hundred schoolchildren.

2.4.4 The voice of the MDA in influencing policy The MDA continues to add its voice in support of activities which are relevant to the region. These typically include sustainability and energy production; transport policy; training and skills development; inward investment; and strategic spatial developments.

In this context, it is worth noting the recent response by the North Wales Economic Forum to the consultation by the Welsh Government on the appropriateness of the ‘city-region’ approach to delivering economic benefits to Wales11. This response advocates serious consideration of a North East Wales/North West Cheshire city region, and recognises the work done by the MDA in encouraging economic activity in the cross-border region.

3 The basis of future activity The MDA board, in their meeting on 26 January 2012, were convinced that the present strategy should continue into the future. This section briefly explains the features of the proposed strategy, to emphasise and illustrate its coherence and purpose. The subsequent sections elaborate the detail in the form of a business plan.

The first principle on which this business plan is based is that of a modest development of current activities to capitalise on the present success, especially of the Innovation Network. The budget (section 9) is constructed on this basis.

However, the second principle is that no additional activities should be commenced unless the extra resources are available to undertake them. Thus, the programme and budget set out here is a reasonable aspiration based on current levels of resource rather than a definitive programme. Details of current and hoped-for resources and their use is in section 8, together with ideas on how to secure additional support.

11 City Regions in Wales: The Case for North East Wales/North West Cheshire. Response by the North Wales Economic Forum – 18th April 2012. The aim of the strategy is to make a practical difference to the knowledge-based companies, large and small, in the region. Some of the ways this can be achieved are by:

 The public and private sectors working together more;  Keeping the knowledge base well-networked;  Encouraging the universities and colleges to contribute, including collaboration of the two in- region universities;  Focusing specially on cross-regional key sectors such as advanced manufacturing and sustainable energy;  Involving and benefiting the bigger firms too;  The MDA playing its role as an independent and respected facilitator.

The strategy upon which this business plan is based is shown below. It consists of two central objectives with four activity elements to support them. It was approved by the MDA board on 26 January 2012. MERSEY-DEE ALLIANCE - 7

3.1 The MDA objectives The MDA may be described as an alliance of those concerned with supporting the economic development of the North Wales/North West England border region, particularly its knowledge economy. As a corollary, it implies that the Alliance is keen to enhance the image and profile of its region as a good place for businesses to locate, and for people to live and work. The projection of the region’s true ‘brand values’ should therefore be an ultimate objective of the Alliance.

The MDA region must therefore maintain and enhance its competitiveness with that of other regions. The term ‘competitiveness’ is frequently employed without definition; the following is a recent attempt from the EU.

Competitive Economy “A competitive economy has a consistently high rate of productivity growth. Competitiveness depends on the performance of the region’s SME-fuelled industry. It should compete in terms of research and innovation, information and communication technologies, entrepreneurship, competition, education and training.” EU Commission, Enterprise and Industry, 2011; slightly abridged

However, this definition has its deficiencies. It does not include financial competitiveness in its list of terms, although it is accepted that the other factors have an influence on this. Neither does it recognise quality of life factors as important, such as the environment (including the built environment) and scenic beauty. These features can add to a region’s competitiveness by, for instance, attracting top- quality management and staff. It is suggested that these additional aspects be kept in mind when considering the competitiveness of the MDA region.

3.2 The activity elements Four activity groups or elements are proposed, all aimed at supporting the primary objectives of the MDA. Although, with the resources available, the total level of activity must necessarily be limited, this is partly compensated by the interactions and linkages between the four elements, which serve to support each other.

The key to it all is the relatively new MDA Innovation Network. This is an important additional asset of the Alliance, and element A is concerned with developing it both in scale and effectiveness. It will be important for all the partners in the MDA to remain involved in the Network and to take advantage of it for their own programmes, thus optimising its cost-effectiveness for everyone. Since the majority of Network members are businessmen and entrepreneurs, the Network should aim to become the authentic ‘voice of innovation’ within the MDA region.

The existence of this Network will also assist those who are endeavouring to develop a greater knowledge economy presence in their own areas.

Linked with Element A (although it also connects with the other activity elements) is the proposal to establish an informal ‘MDA think-tank’, to inform and advise the Alliance on the fast-changing business support scene, especially that related to innovative businesses (see section 4.2).

Element B is the collation and dissemination of programmes and support schemes to assist the establishment and growth of knowledge-based businesses. Businesspeople are extremely busy running their own companies and do not have time to ensure they know every scheme available to them. It will be the Alliance’s job to assist them in this, principally by signposting to where more detailed information can be obtained. This will largely be through the Network, using its business breakfasts and seminars. The extension of the Network and linking its web site, for instance, to that of the STFC at Daresbury to form an active virtual network, will be the objective.

The MDA region has been specially prominent in specific areas of business activity, and Element C is designed to support these, viz., advanced sustainable manufacturing and renewable energy. The specific areas and programmes have been clarified and informed by the results of the 2012 Sector Trends Report by Mickledore12.

It is clear that advanced, sustainable manufacturing is a prime area of activity. In addition to specific, major manufacturing companies with their own sites, the Wirral Waters Zone and the Deeside Enterprise Zone have a distinct manufacturing focus.

Thus, programmes to encourage and support manufacturing will be included and will focus on trying to encourage the working population in the region to consider manufacturing as a career, especially younger people. Element B also links to this, since all the technology, training, and commercial advice should be made available to manufacturing operations in the region. However, more specific actions will be undertaken, which are tailored to the specific locations where this type of industry is located.

Element D maintains the function of the MDA in influencing major policy decisions in support of its objectives. One can argue that now that the MDA has an input from a wider spectrum of public and private sector organisations, its formal opinions should carry even more weight. Typical activities would include agreed support for other agencies in influencing improved transport; collaboration with

12 Sector Trends Report: MDA sector report 2012. Mickledore (Consultants) UK. MERSEY-DEE ALLIANCE - 9

LEP and their Welsh equivalents on EU Innovation Strategy; and supporting programmes for better broadband throughout the region.

This Element also includes the recent suggestions that the MDA should produce ‘prospectuses’ to encourage the inward investment of specific business sectors into its region (see section 7). 4 MDA activities, A: the Innovation Network

4.1 The MDA Innovation Network The Network established in 2010 is a key asset of the MDA, since it allows the Alliance to directly talk to and influence the SME knowledge base and to bring them into contact with the whole range of supporting organisations: they have learnt to trust the Alliance to offer them useful information and assistance, and to hold meetings from which they derive good value.

It will thus be important to maintain and develop this Network, in particular to expand it and to increase the proportion of SME members. Already, it compares well with other networks of this nature. All the support and information available via Element B (Section 5) must also be available to Network members, and the Network must report and encourage its members’ successes. Such success can be effective in encouragement of others, and its importance should not be underrated.

Activity: holding 6 business breakfasts per annum, located, as now, in appropriate centres throughout the MDA region, so that the Alliance is seen to be active right across the region it serves. Targets: to maintain a total breakfast attendance of around 90 at each, of which 50% are private companies (mainly SME) and 50% attend more than once per annum. Outputs: surveys should indicate that the breakfasts should assist: - 50% with business growth and development; - 5% with new sales at a significant level; - 5% with technology transfer; - 5% with securing investment; - 10% with identifying cost savings.

4.1.1 Seminars promoted through the Network As at present, the Network should be used to organise and promote appropriate seminars. These might be on:

 General topics, such as management of innovation, management of growth or enhancing entrepreneurial skills;  Topics related to key industrial sectors, such as manufacturing skills.

The proposed think-tank should also be able to suggest appropriate topics, and the Network members themselves should also be able to continue to input their suggestions. MERSEY-DEE ALLIANCE - 11

Activity: holding up to 2 seminars per annum after the business breakfast, on topics relevant to knowledge-based businesses. The seminars should be presented by suitable experts and should be aimed at having a practical influence on the businesses represented. Targets: to hold 2 seminars per annum after a selected business breakfast, with at least 40 attendees of whom 70% represent SME. Outputs: surveys should indicate that 70% felt the topic was the right one, was presented at the right level and was useful to the attendee.

4.1.2 An innovation award A number of ways of developing the Network should also be considered. For instance, an annual award for innovation, perhaps in the form of a voucher scheme, might be given, although sponsors for this will have to be sought.

Activity: it is proposed to consider the nature of an award system appropriate for the Network, how it might be organised, promoted and externally sponsored. Targets: to raise sponsorship for, organise and hold an annual MDA Innovation Award competition which attracts at least 10 good quality entries, and to ensure that the competition and its results are widely promoted and disseminated through the regional media. Outputs: - To attract around 10 suitable and diverse entries; - The Award should give significant publicity to the winner(s); - To enhance the MDA’s role and effectiveness through managing the award scheme.

4.2 An MDA ‘think tank’ Over the past 2 years there have been profound changes in the policies and mechanisms of support for economic development in both England and Wales. Old schemes are disappearing and new programmes and protocols are appearing frequently. It is difficult for economic development professionals and those involved in innovation support to keep in touch with these changes, and even more so for a busy entrepreneur.

At the same time, it will be important to listen and respond to feed-back from companies themselves, in the light of changing market, financial and human resource characteristics.

So that the MDA can optimise its practical support for knowledge-based businesses, it is proposed that a small, informal and tightly-focused ‘think tank’ be formed to advise it. Such a body:

 Is in keeping with current EU Innovation Strategy;  Should be small and include a large firm, an SME, a university, the Chamber, private sector organisations such as C-Tech and the Energy Innovation Centre, and a financial expert or investor. All of these should be from organisations based in the MDA region, or at least serving the region as a major part of its activities;  Should not necessarily include the top managers, but keen people who can speak authoritatively;  Should be co-ordinated by the MDA and generally meet twice or three times a year;  Could also assemble grant applications for work supporting the region’s knowledge economy, for which the formal applicant could be either the MDA or a private sector organisation, whichever is appropriate. The members of the ‘think tank’ would be involved in the delivery of the support as appropriate. This would provide an opportunity for the MDA to acquire extra resources for its programme of work as set out here, as well as keeping it at the centre of innovation support for the region. Very initial discussion of the idea with the private sector has met with a positive response.

Activities: - Establishing and operating a small advisory group or ‘think tank’ as described above. It should be informal but co-ordinated by the MDA, and should report to the MDA Strategy Group. Meetings should be held twice or three times a year; - Receiving and noting information from other innovation centres and from the think tank members on the influence and perceived effectiveness of the MDA in maintaining the importance of innovation and knowledge-based businesses in the region. Where possible, quantitative information should be obtained. Targets: - To keep abreast of the changing needs of knowledge-based business and suggest activities to help them. It must keep in touch with new developments, policies and programmes and feed information and suggestions back to the MDA on how best to optimise its support for SME; - To jointly be involved in generating at least one grant application in support of the knowledge economy of the MDA region over the period of this plan, which would provide some additional resources to the MDA to enact its strategy; Outputs: - Reports inter alia to the Strategy Group, which should aid in proposing new and relevant programmes to be delivered primarily through the MDA Network; - A grant for knowledge economy support and growth, with an element going to supplement the MDA’s resources; - Maintain the MDA at the forefront of innovation support in its region. This is not easy to assess quantitatively, but the kind of information in the final point of the activities above will be indicative MERSEY-DEE ALLIANCE - 13

5 MDA activities, B: opportunities for knowledge-based businesses This element is the MDA’s role in assembling, co-ordinating and disseminating the range of support available to knowledge-based business. It could perhaps have been included in Element A, but, since its application covers all businesses, big and small, it has been separated as a discrete activity element.

This is already a task the MDA performs, but it is worth stressing its importance. The scale of it is also larger than in most similar organisations, since it involves collection and collation of basic information from both Wales and England, and making sure which support programmes a specific company is eligible for. The purpose will not be to give full details to each enquirer (this would have too large a resource implication), but to ascertain relevance and eligibility, and then to signpost the enquirer to the organisation running the particular scheme, from which detailed information and advice may be obtained.

Work for this Element could include:

 Additional informal networking (including sector-work as appropriate);  Signposting enquirers to sources of business advice, especially by using MDA partners like the Chamber of Commerce;  Finding new technology via the universities and, for instance, sustainable energy experts;  Being aware of sources of grants and investment;  Encouraging training, using the links with the colleges and universities.  Seeking opportunities for new recruits, interns and apprenticeships (so important at present);  Help to find advice on commercial trading and public procurement.

The MDA cannot do everything, so it will be necessary to prioritise. It should thus network with the innovation centres and advisers in the region, using the proposed think tank to develop this. It can also facilitate and link providers to firms which can benefit. Examples include:

 Help local companies to engage with knowledge-transfer networks like those being encouraged by the Technology Strategy Board. Topics might include sustainable energy (e.g. C Tech) and chemistry (Chemistry Innovation, at the Heath, Runcorn);  Linking to contacts for investment such as EnVestors (already supporting a firm at Daresbury) and the NW Venture Fund;  Assisting the two intra-regional universities to promote their programmes to support business in the region;  Work with existing or developing ‘business hubs’, with the MDA signposting appropriate companies to them;  Linking firms and colleges providing interns and apprenticeships to companies. Activity: maintaining the collection, collation and dissemination of basic information on support available to business. This includes all kinds of business advice, access to finance, programmes of general interest such as sustainable energy use, and specific training in business and entrepreneurial skills. This will be one objective of each business breakfast and Network event, and the Network page of the web site will be regularly updated with such information, Resources need to be available for this. Targets: - To include items at each business breakfast which give information on support to new start-ups and growing SME. Information should be sought from all organisations of the types listed above; - To regularly update the MDA web site with such information; - To include questions on each survey asking Network members if they find the information timely and useful, and to assess the results. Outputs: the results of this can be ascertained as part of the regular surveys of MDA Network members. They should be asked (in the regular surveys, for instance) if they have made use of the information conveyed to them, by which means (meeting, web site, specific request, etc.), and whether it has been useful to their business.

6 MDA activities, C: opportunities for key sectors The 2012 Sector Trends Report by Mickledore has helped to identify those business sectors which are regarded as the most significant within the MDA region. All current evidence already points at advanced manufacturing being one of them, so this will be considered in some detail.

Sustainable energy is another sector, and a third is financial and business services. There are others cited in the Report, but limitations on resources will dictate how many and how thoroughly the sectors can be covered.

6.1 Advanced, sustainable manufacturing It is worth noting that many regions of the UK are, in response to Government initiatives, developing programmes to support manufacturing, so it is important for the MDA to promote and develop an asset which itself has had for years.

Element B is closely allied to this, since all the technology, training, and commercial advice should be made available to manufacturing operations in the region. In addition, there are more specific actions which should be considered, including:

 Programmes like Fab Lab, and the very successful Make it in Manufacturing, to enthuse and signpost opportunities in manufacturing;  Meet the Buyer meetings: helping supply chains;  Ascertaining whether bigger firms might help by cascading their knowledge to SME;  Helping to promote the HISTEM programme of U. of Chester, Glyndwr’s Composites Centre and other HEI throughout the region;  Holding an exhibition of region’s manufacturing success, possibly as part of a member’s event such as a business week;  More generally, promoting this asset of the region on its web site and at every opportunity elsewhere. MERSEY-DEE ALLIANCE - 15

Sustainability and energy efficiency is very much an integral part of modern manufacturing processes, and although the aspect of sustainable energy use is separated out here (in 6.2 below), it should be viewed as part and parcel of modern manufacturing.

Activities: promoting the region’s success as a centre for advanced, sustainable manufacturing; encouraging young people to consider a career in this area; and promoting appropriate programmes in support of this topic. Targets: - Through programmes such as Make in Manufacturing, to assist in promotion STEM careers to young people. Three such programmes should be supported over the period covered by this plan; - Continue to create a Fab Lab for the area (Ellesmere Port will host the Cheshire Fab Lab); - Co-ordinate and help to promote STEM activities throughout the region; - Help the HEIs in the promotion of their schemes in manufacturing by the same means as for Element B above; - Update the web site to maintain interest and awareness of the topic. Outputs: - To present the opportunities of a career in advanced manufacturing to young people over 3 years; - To collaborate in 2 Meet the Buyer sessions in 3 years, attracting around 30 delegates to each. - To present or support one seminar a year on this topic, such as that in June 2012 at the Advanced Composites Centre, Hawarden by the Sector Skills Council for Science, Engineering and Manufacturing Technologies.

6.2 Sustainable and efficient energy use This topic cuts across all other sector activities and needs highlighting. The proposed ‘think-tank’ could provide advice on how best to deliver activities on this topic, which could include:

 Promoting principles and practice at the breakfast Network meetings;  A possible seminar, with, e.g., C Tech, W Coast Energy, Cammell Laird and Sharp to promote the concept;  Establishment of achievable output targets. Activity: promoting and encouraging the principles and practice of the use of cost- effective and sustainable energy in manufacturing and business generally. Targets: - Promote the topic on the web site and Network breakfasts; - Facilitate a seminar on the topic and, if successful, a second a year later. The proposed think-tank, which includes C-Tech, should be able to develop an appropriate programme with experienced speakers. Outputs: - Deliver a seminar on this topic to at least 40 businesspeople; - If successful, delver a second one a year or so later. The audience for this should be considered in the light of the results from the first. It may be desirable to address a different type of business; - Identify (by the regular Network survey) at least 3 firms a year adopting a new energy policy.

6.3 Services to finance and business The MDA Sector Trends Report, 2012, identifies clear opportunities in the professional, financial and business services sector. These are principally:

 In inward investment opportunities for companies requiring back-office employees in the banking and financial services sector;  To outsourcers providing services to businesses. Principally, these are small service-providing companies, often specialising in specific areas of business, such as IT, finance, marketing and human resources and business consultancy. They nevertheless can have significant implications in terms of job numbers, sometimes with major businesses.

The Report states13: “All areas of outsourcing are likely to continue to generate growth and with a skilled and large commuter base linked to national and international transport access in the area, this sector is likely to present the most opportunities for the area in the next five years.” This endorses the views of The Work Foundation, which considers that business services have been the most innovative part of the UK economy over the last 20 years, with financial services14.

There are a number of ways of encouraging these activities:

 For the MDA to promote its region to major companies as one with a workforce experienced in financial services. For example the MDA is to establish a prospectus for the area in financial services, following recent developments at MBNA;  To establish a network of smaller providers of business services to promote interaction and possible joint ventures, where a mixture of skills from two organisations might constitute a more complete offering to a potential market. This might be a parallel group to the MDA Innovation Network, but occasional joint meetings might well be appropriate, Such a network will probably not be as regular in its meeting schedule as the Innovation Network. Alternatively, it may be preferable to work with the Chamber of Commerce or Pro Chester on this;  To ascertain if a bigger firm which uses such companies for outsourcing might engage with the members of this new network in a workshop to encourage good practice.

13 Sector Trends Report: MDA sector report 2012. Mickledore (Consultants) UK, p. 4. 14 The next wave of innovation. Andrew Sissons, The Work Foundation and Lancaster University, 2011. MERSEY-DEE ALLIANCE - 17

Activities: - Promoting the MDA region to larger firms seeking a pool of expertise in provision of financial services, using established contacts; - Organising an initial meeting of business service providers to see if a network might be advantageous. If it is, then the network should be established, both by occasional meetings and the MDA web site; - Investigating the possibility of a workshop on best practice for business service providers.

Targets: - To receive expressions of significant interest from 3 large firms over the 3 years, with at least one deciding to invest in the region; - To develop a network of smaller business service providers and, if it is considered useful, to maintain it; - To organise a workshop to encourage good practice amongst smaller business service providers. Output: The output is for the attendees to consider that they have significantly improved their activities, as confirmed by a post-workshop survey.

7 Element D: Influencing improvements to infrastructure This continues the positive influencing function of the MDA, in which it has been involved since its inception. One can argue that now the MDA has membership across a wider spectrum of public and private sector activities, its formal opinions should carry more weight.

This has been a function of the MDA since its inception, and activities continue. For instance, under its aegis, the transportation members of the MDA, Mersey Travel and Taith, are currently undertaking strategic transport planning to benefit the MDA region.

Activities should include:

 Discussions with its members on how to optimise its influence;  Supporting other agencies in influencing improved transport, including enhancing the accessibility of existing routes as well as creating new ones. This could assume added importance in the light of current discussions on the Dee city region (see 4.2.2 and ref. 11);  Collaborate with LEP and Welsh equivalents on EU Innovation Strategy;  Supporting programmes for better broadband throughout the region;  Ensuring that the successes of the region are known as well as its needs. This will enhance the overall profile of the MDA (Objective 1), but will inevitably have a modest resource implication. Of course, if the current initial discussions on a Dee city region (see above) are taken further, the MDA will wish to express its views and to be involved, and significant additional expertise may be required to undertake this work. At this juncture, however, it is not included in this business plan.

Activity: using the MDA’s good offices to persuade and influence both Governments in Wales and England, and persuading other organisations to enact and implement policies which are to the benefit of its region. Targets: to submit supporting statements on all major policy matters which affect business in the region. Outputs: ensuring that the region is seen as an important and coherent one, and that the local authorities and others which comprise the MDA region work together effectively.

8 Resource implications

8.1 Background The proposals in this plan bear in mind the nature of the MDA and the current severe restrictions on finance. They try to focus on the most cost-effective actions and incorporate partner organisations’ activities as part of its programme.

Nevertheless, the proposals represent an increase on current activities. In part, this is due to the success of the present Network and the demands its members now put on the MDA staff. In effect, the MDA now has demands for both an operational knowledge economy programme - which could expand if it had the resources - and the coordination and promotion of strategic initiatives in the current absence of other cross border forums.

It would, of course, be possible to devise a plan using only current resources, but this would not be nearly so successful in moving the MDA towards its objectives. It still seems entirely right to try to capitalise on the current success of the MDA, especially its expanding number of member organisations and its Innovation Network. Not to do so would be to lose what has been gained, and thus be a waste of previously-used resources.

The rest of this section discusses current and required resources and how additional resources might be acquired. It is worth stating again that the basis of this whole plan is that no activity should be undertaken unless the resources for it have been clearly identified (see section 3).

8.2 Current resources and activities At present, the activities of the MDA have been performed by part-time Senior Officer job-sharing with a part-time Officer, and a full-time Programme Officer.

In brief, the Senior Officer’s role is to:

 Manage the overall programme of the MDA, its Board and Strategy Group;  Manage and facilitate high-level strategic dialogues, and partner/stakeholder liaison;  Represent the MDA at strategic and operational level forums and meetings;  Propose and develop economic development initiatives;  Be responsible for preparing reports and recommendations to the committees and boards;  Be responsible for the budget;  Develop appropriate partnerships and seek funding, for instance, as suggested by the proposed think-tank.  Manage consultations and respond to requests for information, e.g., FoI, press enquiries, government committees;  Promote relevant MDA activities through the media.

The full-time Programme Officer’s work involves:

 Servicing the MDA board, strategy group and other meetings;  Assist in implementing the agreed programmes;  Undertaking the administration, organisation and partner liaison required for individual activities such as the business breakfasts; MERSEY-DEE ALLIANCE - 19

 Processing and monitoring the Alliance’s finances and keeping careful track of the current position;  Undertaking and collating the regular Network surveys.

The new direction, embarked upon 18 months ago, has included substantial additional activity, including the 6 breakfasts per year, the additional seminars and the maintenance of the Innovation Network. The increased number of partners (the universities, the Chamber, EA Technology, etc.), and the constantly changing pattern of organisation of economic development support, both in England and Wales, have added to the workload of administration and dissemination of information. All this is before the additional activities proposed in this plan have been included, such as the think-tank, the innovation prize, work on the business advice sector and other strategic initiatives.

This is a largely a problem of success and should be recognised as such - but, not surprisingly, it has resulted in the staff being pulled in a number of directions at once, making it more difficult to plan and control developments.

8.3 Future resource needs

8.3.1 Key points This business plan does not allocate specific duties and times to each person involved. With such thinly-spread resources, it will not be possible to take on new activities, even if current resources are very efficiently deployed. The employment of an apprentice (8.3.2) will slightly alleviate the resource problem, but only temporarily.

So far as possible, it is important to maintain the continuity of whoever is the most senior staff member employed on MDA work. Continuity is important at any time, but even more so when a significant number of changes and growth areas are being implemented. It is also important that the Network members – and, indeed, all who deal with the MDA – to have an identified person with significant experience of the Alliance’s work and objectives.

It should also be appreciated that, initially, a significant proportion of management time must be spent on acquiring the extra finance which is essential for those activities over and above maintaining good administration and an effective Innovation Network (together with its business breakfasts). In the first 6-8 months perhaps at least 15% of the Senior Officer’s time will need to be spent in this way.

The activities for which additional resources are needed are:

 Planning and implementing an innovation award scheme;  Increased work on knowledge transfer networks, especially in encouraging joint work by the two intra-regional universities and their adjuncts like the Advanced Composites Centre;  Consideration of and, if agreed, implementation of an innovation award programme;  The establishment and operation of the proposed think-tank;  Two Make it in Manufacturing events;  Meet the Buyer meetings;  Additional seminars on key sector activities;  Further work on key sectors, such as the STEM programmes and a seminar on use of sustainable energy.  Preparation and distribution of any required ‘prospectuses’, such as the one proposed to MBNA. It might be decided, for instance, to seek inward investment by means of prospectuses of the region based on its manufacturing skills or use of sustainable energy. This might be well worthwhile, but the additional resource implication should be recognised. 8.3.2 Proposal to engage an apprentice An attractive means of securing some extra resources fairly quickly and while efforts are being made to seek additional funds for specific activities, would be to engage an apprentice, and it is understood that this has now been agreed on a part-time basis of 2½ days per week, with no implications for the MDA budget.

This person would take on some of the basic administration of things like the business breakfasts, registrations for seminars, supporting the collection and collation of survey data, databases and so on, which would release part of the permanent staff time to work on activities which requires their experience and skills – in particular, on securing the additional funds needed to fulfil this plan.

If an apprentice can be selected with some appropriate training and experience, this would appear to have benefits all round. Although the apprenticeship would be of limited duration, it would provide genuine and valuable work experience for the apprentice too. MERSEY-DEE ALLIANCE - 21

9 Budget

9.1 Principles adopted The budget in this plan is for the activities proposed in the plan itself, so that the strategy previously agreed by the Board, the activities and the required costs are all consistent with each other.

Since the resources are currently insufficient, as explained in detail in section 8, the budget indicates losses. At present, resources are available only for a fall-back position, consisting of the board and strategy group meetings, some business breakfasts and perhaps the establishment of the think-tank.

The budget makes clear the level of additional resources needed, what they are needed for, and - together with the timeline in section 10 - when.

9.2 Parameters used The following parameters and data were used in constructing the budget.

Basic data for budget

INFLATION Annual inflation 3.5%

AWARD Promotion 500 Event 600 Total 1100

THINK TANK Admin in staff & general costs 0 Meeting costs for 2 pa 300 Total 300

MAKE IT Event (venue and TMI costs inc promo) 5000 Total 5000

MEET BUYER Promotion 300 Event 400 Total 700

ENERGY Promotion 400 SEMINAR Event 500 Total 900

STEM PROGRAMME 200 9.3 Budget

MERSEY DEE ALLIANCE Budget for business plan 2012-2015

Budget Budget Budget Budget 2011/12 2012/13 2013/14 2014/15

Balance b/f (Reserves) (note 1) 26543 15276 4426 -6461 Committed project accounts b/f 10/11 47091 56206 0 0

Income MDA Members Subscriptions 2011/12 49750 55000 55000 55000 External funding 0 0 0 0 Green Infrastructure Income 13253 0 0 0 Knowledge Economy/Sectors Study Contributions 24000 0 0 0 Total Income & Balance b/f 160637 126482 59426 48539

Expenditure Salary costs inc. on-costs and travel expenses 50300 52500 52500 52500 Salary costs of potential new appointee 0 0 0 Staff Training and Conferences costs 500 200 515 530 Translation Costs 400 200 400 400 MDA Network business breakfast costs based on 6 Events pa 3500 3000 3105 3214 Post-breakfast seminars, 2 per annum 0 1000 1035 1071 Think tank establishment and operation 0 300 311 321 STEM programme co-ordination 0 200 207 214 Make it in Mfg (1 per annum) 5000 5175 5356 Annual meet the buyer meeting 700 725 750 Sustainable energy seminars (2 in 3 years) 900 0 964 MDA Board/Strategy event costs - based on 4 Board meetings pa 500 400 414 428 Innovation award organisation, promotion and event (not prize money) 0 1100 1139 1178 Printing/photocopying/stationery 500 350 362 375 Project Fund 2010/11 2000 1679 0 0 Committed Projects previous years 60344 24927 0 0 Consultancy - Business Plan 5600 5600 Knowledge Economy Sectors Study 24000 24000 0 0 Total Expenditure 147644 122056 65887 67302

Cumulative Surplus/Deficit (but see Note 1) 12993 4426 -6461 -18763

NOTE 1 - agreed Board policy is to always retain £5000 in reserve as contingency

9.4 Conclusions 1. The plan for 2012-2013 leaves a surplus of only £4,426, which is below the contingency level required by the MDA Board. So even the current year’s activities, if completed in full, would require some additional funding.

2. A typical year (2013 or 2014) has a basic income of £55,000 from partner organisations. Of this, some £52,500 are spent on staff costs. This would enable the required administration and the maintenance of the web site, etc. The remaining £2,500 could be spent on maintaining around 4 business breakfasts per annum. This is the fall-back position if no additional resources can be found.

3. To implement the plan described in this report requires an additional £10-12,000 per annum, half of which is required for the Make it in Manufacturing and Meet the Buyer events. Effectively, this identifies the size of the funding gap.

The above conclusions are stated to make the current resource situation absolutely clear. However, in the past it has always proved possible to acquire external funding for several events, so the situation is not so pessimistic as it might appear at first sight. Efforts are already being made to find funding for specific events, and as it becomes available, these can be included in the programme.