West Midlands Industrial Strategy
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West Midlands Local Industrial Strategy May 2019 1 Professor Lord Bhattacharyya The Local Industrial Strategy for the West Midlands builds on the heritage of the region’s manufacturing, research and technology sectors. The strategy sets out how the West Most recently the National Automotive Midlands will take advantage of Innovation Centre and the UK the incredible skills, infrastructure Battery Industrialisation Centre were and innovation of our region. direct results of his advocacy. In that spirit, we dedicate this strategy Professor Lord Bhattacharyya to the life and achievements of was a constant champion of the Professor Lord Bhattacharyya, founder West Midlands and a key figure in of WMG at the University of Warwick. its industrial renaissance. It is our He was personally responsible profound hope that this strategy will for bringing millions of pounds of build on his vision and achieve his investment to the West Midlands. ambition of making the West Midlands Professor Lord Bhattacharyya a world leader in manufacturing, played a key role in the renewal of technology, innovation and skills. Jaguar Land Rover and the West Midlands’ automotive sector. 2 Contents Foreword 04 Executive summary 07 Strategic opportunities 17 An inclusive, clean and resilient economy 39 The five foundations of productivity Ideas 43 People 50 Infrastructure 60 Business environment 68 Places 73 Implementation 81 3 Industrial Strategy West Midlands Local Industrial Strategy Foreword The West Midlands is undergoing a renaissance. The West Midlands is a global force They provide the real-life testing and a major part of the UK economy, needed to get new medicines from generating £99bn of GVA — five the lab to patients. They provide per cent of UK output. The region modern components and materials is growing fast, with output up 27 to global supply chains in a wide per cent over the past five years. A range of industries. The region’s record number of people are in work digital creative businesses create and the lowest number are out of games played across the world. work. Productivity is increasing too, Universities and commercial research at twice the rate of the UK in 2017/18. and development centres across the Carbon emissions have reduced by region are central to the UK. They 18 per cent over the last five years. are developing the skills, products The West Midlands is large and diverse, and processes the UK will need consisting of three interlinked but tomorrow, as well as being major distinctive economic areas. Its cities, employers and core to the future of many towns and rural areas are home the towns and cities that host them. to communities with very different characteristics. All share a long history Shared leadership to support of creative design, manufacture and the delivery of the national production. Doing things differently modern Industrial Strategy and leading the way is what defines The modern Industrial Strategy sets the West Midlands. This is a legacy that out a path to increasing productivity survived the industrial restructuring and earning power across the country. of the 1970/1980s and is now the It formed a partnership of innovators, engine of current and future success. job creators and world-class businesses Firms across the region have been positioning the United Kingdom to supplying components and assembling seize the global opportunities of vehicles from the first bikes to today’s the new industrial revolution. And autonomous pods. They built the it acknowledged the vital role of world’s first production line and ambitious local business and civic now create virtual worlds for testing leaders to deliver prosperity. new products based on real data. 4 Our collective national and local In partnership with the government, ambition is for the West Midlands the West Midlands aims to drive growth Local Industrial Strategy to and meet government’s national demonstrate this approach in action Future of Mobility Grand Challenge. through our collaborative national, The region’s research strengths across regional and local leadership. its universities – and its leadership in Developed locally and agreed with battery industrialisation – are well- government, this Local Industrial established. This Local Industrial Strategy sets out the priorities to Strategy shows how partners will increase the productivity of the West combine these strengths with Midlands and our national economy. manufacturing expertise and world- It belongs to the West Midlands and class supply chains in towns such has been developed in collaboration as Darlaston, Walsall and Bloxwich. with hundreds of businesses, civil The country’s first Future Mobility society organisations and citizens. Zone — between Birmingham, Solihull and Coventry — will host But it also marks a change in the way the testing of new technologies. government is working to support the region. It represents the next Other priorities — ranging from health- phase of long-term partnership and care innovation to modern services builds on important foundations set and creative content — show how the in place since 2010. These include the region is looking towards shaping previously agreed City Deals, Devolution future markets. This Local Industrial Deals, Strategic Economic Plans, work Strategy also makes clear how the across the Midlands Engine and recent region will boost productivity across the packages to support delivery on local Industrial Strategy’s five foundations ambitions on skills and housing. and maximise the impact of major public and private investment over Focus the coming years. High Speed 2 will The West Midlands aims to continue soon start to strengthen the region’s growth and success, while ensuring a connectivity. Coventry is the UK’s City more inclusive and balanced economy, of Culture in 2021. Birmingham will host where all communities and residents the Commonwealth Games in 2022. benefit and no one is left behind. 5 Industrial Strategy West Midlands Local Industrial Strategy Evidence led, inclusive and forward looking This Local Industrial Strategy and its supporting documents published locally are based on a robust evidence base developed Rt Hon Greg Clark MP by independent commissions Secretary of State for Business, and research over the last three Energy and Industrial Strategy years. Led by the West Midlands Combined Authority with Local Enterprise Partnerships, it has been co-designed with the involvement of over 350 organisations. Collectively, we have worked with national and local leaders and with a wide range of businesses, sector Andy Street groups and the civil society sector Mayor of the West Midlands as part of a public consultation during the autumn of 2018. It is not a strategy set in stone and will continue to evolve as the economy changes, working together with the communities and businesses of the West Midlands, including Cllr Ian Ward them fully in its implementation. Leader of Birmingham City Council and West Midlands Combined Authority Portfolio Holder for Economic Growth Jonathan Browning Chair of the Coventry & Warwickshire Local Enterprise Partnership and Chair of the West Midlands Combined Authority’s Strategic Economic Development Board 6 Executive Summary This Local Industrial Strategy comes at a pivotal time in the West Midlands’ history. The West Midlands is in renaissance: This Local Industrial Strategy output is up 27 per cent over the past demonstrates how the West Midlands five years. Productivity increased is forging its future and building an last year at twice the rate of the UK inclusive and balanced economy. average. High Speed 2 will further Together with the supporting strengthen the region’s connectivity documents published locally, it shows with national markets – 90 per cent of the West Midlands is taking action which are already within a four-hour to continue growth in productivity drive. The West Midlands, working and earning power for all. with partners in the Midlands Engine, It also makes clear how government is also a growing international force: is backing these efforts, working foreign direct investment projects in partnership with local leaders, have trebled since 2011. Carbon business and stakeholders across emissions have reduced by 18 per the region to help realise the cent over the last five years. West Midlands’ potential. Seizing opportunities for the future Building on its distinctive strengths `` ensure all communities can contribute – from transport innovation to data- to and benefit from economic driven health and life sciences and prosperity whilst protecting and globally competitive supply chain firms enhancing the environment; investing – this Local Industrial Strategy sets out further in social infrastructure; the steps the West Midlands will take to: measuring progress; and `` drive growth by strengthening `` designing actions using a balanced the foundations of productivity; set of inclusive indicators. contributing towards the Grand Led by the Mayoral Combined Challenges; and taking advantage Authority, working with Local Enterprise of market driven opportunities in Partnerships and local authorities, this mobility, data-driven health and Local Industrial Strategy marks the life sciences, modern services, next stage of the West Midlands’ long- creative content, techniques term partnership with government. and technologies; and 7 Industrial Strategy West Midlands Local Industrial Strategy It is built on strong foundations. Driving growth: Future of Mobility Since 2010, local leaders, working in The