Growth Barometer

THE STAFFORDSHIRE GROWTH BAROMETER 2017 EDITION: TRACKING THE GROWTH OF THE LEADING PERFORMERS IN THE COUNTY Lichfield Cathedral THE STAFFORDSHIRE GROWTH BAROMETER 2017 | BDO LLP THE COVENTRY AND WARWICKSHIRE GROWTH BAROMETER CONTENTS STRENGTH IN DIVERSITY 50 op Fund managers have long INCREASE IN TURNOVER t o w OVER THE PAST THREE YEARS e known that one of the secrets v50v i WELCOME 01 e r to long-term investment Turnover success is to have a diversified KEY FINDINGS OF THE TOP 50 02 portfolio. Regional economies £1.6bn £1.59bn BUSINESS VOICES 04 are no different, and that’s why Staffordshire’s business mix is TOP 50 08 such an asset. £1.2bn With ten sectors represented in the £1.17bn BDO STAFFORDSHIRE CONTACTS 09 county’s 50 fastest-growing companies, Staffordshire’s business community is the epitome of a balanced ecosystem that £0.89bn is well placed to take on the knocks and £0.8bn opportunities of competition in a global economy. That’s not to say all is perfect, of course. £0.4bn As the experts interviewed for this report reveal, there are concerns that policymakers need to address to maximise the competitiveness of the county. Staffordshire is well placed for 0 continued strong growth: it’s important Year 1 Year 2 Latest to make sure things stay that way. Year II BDO LLP | THE STAFFORDSHIRE GROWTH BAROMETER 2017 Cannock Chase WELCOME As this report shows, the county’s 50 “We believe that a ‘new economy’ is needed fastest-growing companies increased which is not over-reliant on any one sector their collective turnover by an impressive or region but which makes the most of the 35.9% in the last year. What is eye-catching UK’s talents, skills and entrepreneurial spirit.”1 about this group of companies is that they Bearing that in mind, in Staffordshire it will showcase just how much the dynamics of be important to foster an environment that our county’s economy are shifting. continues to stimulate healthy growth across Whereas Staffordshire has long boasted a all business segments, and none are better to proud manufacturing heritage, the sectors discuss this environment than the business that are delivering growth today include leaders interviewed in this report. In 2009, a metal-detector fan relative upstarts such as biotechnology and I hope you find their comments useful when called Terry Herbert discovered technology, media and telecommunications. the world’s largest hoard thinking about your own business strategy. These are likely to be the dominant of Anglo-Saxon gold and industries of tomorrow and it is encouraging silver in a field near Cannock. to see them taking a hold in Staffordshire, The archaeological find has yet not just for the sake of the county but also to be equalled, but for businesses for the sake of the country. the county of Staffordshire As Paul Eagland, BDO’s UK Managing DAVID POOLER Partner, puts it in our New Economy report: Partner continues to deliver riches year in, BDO year out. 1 Where Next? A New Economy. Available at https://www.bdo.es/en-gb/news/en2017/where-next-a-new-economy. 1 50 oTHE STAFFORDSHIREp GROWTH BAROMETER 2017 | BDO LLP t o w e v50e r v i Ten sectors appear in total, with none hogging the limelight. Saying this, manufacturing is the most represented sector on the 50 op t list with 10 out of 50 companies, w o e which reflects the region’s proud v50e r v i AVERAGE TURNOVER GROWTH BY DISTRICT industrial heritage. Number of In terms of growth, despite the resurgence companies in of the automotive sector, manufacturing 0% 20% 40% 60% 80% 100% district has been eclipsed by the stellar performance of sectors such as transport, which has Burton-On-Trent 88% 7 expanded by 131% over the last three years, unsurprisingly with Staffordshire’s position at the heart of the UK’s transport network, Cannock 49% 6 as well as real estate, construction and civil engineering, which is up 60%. Stoke-on-Trent 42% 9 With such a wide range of industries jostling for attention, it is hard to pick future winners in the region. However, our predictions are Lichfield 40% 8 that digital, biotech and energy companies will continue to flourish, and are well placed to benefit from advanced manufacturing Tamworth 36% 1 techniques supported by active partnership initiatives between regional universities and the Local Enterprise Partnership, Chambers Stafford 35% 6 of Commerce and local councils. Our top 50 list shows growth in a variety of Newcastle 31% 6 districts within Staffordshire and predictably the largest proportion of companies are located in the conurbation of Stoke-on- Burntwood 28% 2 Trent in the north of the county, however the areas that have experienced the highest growth in terms of turnover are Burton-On- Uttoxeter 25% 3 Trent and Cannock. Overall, the outlook is buoyant. And that’s Stone 20% 2 good news for employment, which has seen strong year-on-year growth with utilities and retail leading the charge. 2 BDO LLP | THE STAFFORDSHIRE GROWTH BAROMETER 2017 KEY FINDINGS OF THE TOP 50 50 op t o w e v50e r v i FASTEST-GROWING SECTORS BY TURNOVER INCREASE OVER THE PAST THREE YEARS 140% 131% 120% 125% 100% 80% 60% 60% 40% 46% 43% INCREASE IN TURNOVER 39% 37% 34% 20% 27% 24% 0% Transport and Utilities Real Estate, Hospitality and Automotive Social Care Biotechnology Retail and Technology Manufacturing Logistics Construction Leisure and Welfare Wholesale and Media and Civil 50 op t o w e v50e r v i FASTEST-GROWING SECTORS BY NUMBER OF JOBS INCREASE OVER THE PAST THREE YEARS 60% 50% 54% 40% 45% 43% 30% 28% 20% 21% 18% 17% 10% 12% 10% INCREASE IN NUMBER OF EMPLOYEES INCREASE IN NUMBER 0% 4% Utilities Retail and Hospitality Social Care Transport and Technology and Automotive Biotechnology Real Estate, Manufacturing Wholesale and Leisure and Welfare Logistics Media Construction and Civil The Roaches 3 THE STAFFORDSHIRE GROWTH BAROMETER 2017 | BDO LLP Shugborough Hall country estate BUSINESS VOICES OPTIMISTIC FOR THE FUTURE DAVID FROST, can take on new roles in areas such as CHAIRMAN, STOKE-ON-TRENT AND advanced manufacturing and create STAFFORDSHIRE LOCAL ENTERPRISE the innovative businesses we need for PARTNERSHIP (LEP) the future. We have recently invested £3.8million in the new AgriSTEM “As a region, we have been hugely successful Academy at South Staffordshire College, in creating jobs, with an increase of around to develop skills in the high-tech 35,000 in the LEP area in the last five agriculture, engineering and automotive years. However, the challenge is not just to sectors. This is part of a LEP-wide continue creating more jobs, but to create programme of creating advanced more highly-skilled and better-paid jobs that manufacturing and engineering hubs in will provide the maximum benefit for our our FE colleges. links with the Midland Engine give Stoke- local communities and economy. on-Trent and Staffordshire a much higher Our universities are using the Our central location means that the region international profile, as was shown by the Apprenticeships Levy as a springboard is a natural attractor for logistics businesses, success of the Midlands UK exhibition at for new middle management, career which typically offer lower-paid jobs. So MIPIM (international annual real estate development and higher-level the task for the LEP and its partners is conference). We must maximise every apprenticeship training to overcome to ensure we have a broad and balanced opportunity to make our mark on the world historic weaknesses in these areas in our plan for growth, attracting innovative stage as we prepare for new global trading region. businesses in sectors ranging from advanced relations. manufacturing to agri-tech that will create We are a vibrant economy and Our focus will be on helping businesses more highly skilled roles. new sectors are evolving. We must to boost exports in the coming months, ensure our future strategy is focused in partnership with the Department of on communicating the economic “Our focus will be on boosting International Trade, and we will be knocking opportunities that emerging sectors export in the coming months, in on the doors of the new Government to will provide, and that Staffordshire is a partnership with the Department ensure it understands the day-to-day issues great place to live, work, invest and do that businesses are facing. We must be alert business. of International Trade, and we to the constantly changing and developing Our formidable strengths include our nature of business and the global economy. will be knocking on the doors unique location with great connectivity; of the government to ensure Central to our strategic economic plan our balanced economy, which is not it understands the day-to-day is attracting advanced manufacturing reliant on any one sector; a very loyal issues that businesses are facing.” businesses to invest and expand in the workforce; and, most importantly, the region. Our ‘Make It’ inward investment can-do attitude of our people. team has a busy schedule of international The natural benefit of this will be increased Here in Staffordshire the public and trade exhibitions and other events local spending power, which will give the private sectors are working very closely promoting the area and the range of sectors retail and leisure sectors a significant boost together to ensure the continued success in which we thrive. as well as helping the wider economy. of the region. We are an amazingly A top LEP priority is ensuring that the As we prepare for Brexit, the LEP is adaptive county, exports continue to education system is fit for purpose, so that determined to continue to drive growth and flourish, and I am very optimistic for the we have a supply of skilled workers who become increasingly outward looking.

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