MIDAS Partnership Q3 Report FY19/20

Economic and Investment Outlook

Following the general election, initial market analysis is that business confidence has improved to become cautiously optimistic. The expectation is the new Governments large majority will provide the UK economy with several months of breathing space, given a no deal Brexit on January 31st was averted. Now that corporation tax and wage levels are likely to remain more stable, analysts expect investment levels to improve. GDP growth for Q1 and Q2 2020 (calendar year) is expected to be 0.4% - surpassing the 0.2% average of last year.

Looking over to Europe, later this month the . has also retained its title as the Financial Times will publish its fDi European best large city for business friendliness and Cities and Regions of the Future report for rose from 4th to 2nd in the connectivity 2020/21. Although we will not know the rankings. The city also secured 3rd position for positions of other cities until the report is FDI strategy in Europe, although Manchester th th released, we know that Manchester has has slid from 6 to 9 in the ranking for secured a place in the top five best large economic potential – a list that we expect cities – rising one place from 6th position in other European cities to have fared more the 2018/19 report. highly within.

Delivery Against Objectives

1. To increase high value and capital investment in Greater Manchester

HEADLINE BUSINESS DEVELOPMENT PERFORMANCE Quarter 1 12 727 £45.9M 109 FY20 successes jobs created GVA projects added Quarter 2 13 592 £49.0m 115 FY20 successes jobs created GVA projects added Quarter 3 18 549 £37.4m 123 FY20 successes jobs created GVA projects added FY20 43 1,868 £132.3m 347 YTD successes jobs created GVA projects added

Q3 PERFORMANCE OVERVIEW KEY ACCOUNT MANAGEMENT

From a project perspective, Q3 was the strongest MIDAS have met with 241 account managed

quarter year-to-date with 18 successful closures. companies year-to-date, with 48 enquiries sourced There were seven ‘new to GM’ foreign investment worth a potential 2,900 jobs. These enquiries have a projects, of which six were from non-EU source higher percentage success rate than new investment markets, with one success each from Brazil, Korea, enquiries. Canada, Australia, India and USA. Since April 2018, MIDAS have sourced 39 projects, Despite the strong project count, the number of worth a potential 3,400 jobs from existing companies jobs created year-to-date is slightly behind profile. that have a requirement for new premises in GM. There were several large projects expected to Examples of current live requirements include

close in Q3 but decision making stalled, likely in Accenture, Arm, HCL Technologies and Dentsu relation to a general election being called in Aegis, whilst Handelsbanken and BAE Systems are December and the uncertain political/market projects that have been sourced and successfully

future. closed in the same time period. A lot of companies that we talk to are taking less space as they are There are a further 25 projects forecast to close adopting agile working practices, meaning the size successfully in Q4, which would take the end of requirements are reducing. year successes figure to 75, with the year-end jobs

forecast currently at 3,550.

SELECTED Q3 SUCCESSES

50 jobs 60 jobs 70 jobs The Landing No. 1 Spinningfields

20 jobs 20 jobs 30 jobs MSP MediaCityUK MediaCityUK

CASE STUDY Preme Pay is a Brazilian headquartered FinTech that allows companies to provide local payment methods to customers in emerging countries.

The company visited Manchester as part of a Latin American Function: FinTech DIT delegation in spring 2019, attending MIDAS’ Manchester Jobs created: 50 FinTech event. Following the visit, Preme Pay decided to Location: The Landing locate their first UK office at The Landing at MediaCityUK and Source market: Brazil expect to create 50 jobs over the next 3 years.

2. To extend the global business marketing of Greater Manchester to drive more

investor interest to the city region

HEADLINE MARKETING PERFORMANCE

Quarter 1 3M 9 17,433 4,784 FY20 media reach events web visitors LinkedIn Quarter 2 802K 5 16,155 4,915 FY20 media reach events web visitors LinkedIn Quarter 3 7.1M 12 18,215 5,178 FY20 media reach events web visitors LinkedIn FY20 11M 26 51K 12% YTD media reach events web visitors growth

Throughout Q3, in addition to the Manchester companies during the visit, generating eight India Partnership delivering the Mayor’s leads/projects and two in-visits that will be inaugural visit to India promoting the city as a delivered before April. digital and innovation hub, the core MIDAS team visited Washington DC, New York and GRAPHENE ROADSHOW, INDIA: The

India to promote opportunities across all key advanced manufacturing team visited Pune, New sectors. Delhi and Hyderabad in November for a number of DIT-led conferences and one-to-one meetings

MAYORAL TOUR, INDIA: The MIP led a 30- including manufacturing/engineering firms strong delegation to India in October, visiting Bharat Forge and Cyient. The team also visited Mumbai, Bangalore and Delhi. The aim of the trip the Automotive Research Association of India, was to promote and leverage the £400m economic the Indian Institute of Science Education and opportunity between India and the Northern Research and IIT Delhi. Approximately 9 long- Powerhouse. The MIP hosted a series of thematic term active projects were sourced from 58 roundtables and events including a major meetings. networking reception in each city. The delegation UPCOMING EVENTS: The following events engaged with more than 1,000 businesses are in the pipeline or are being considered for throughout the trip. As well as making a number of 2020/21 – please let us know if you are announcements in-market, the team returned with a interested in collaborating to have a more 600-job pipeline worth +£40m GVA. impactful GM presence:

• Digital City Festival, Manchester, March EAST COAST ROADSHOW, USA: In November, • JECWorld, Paris, March (Materials) MIDAS’ CDT and FPBS teams visited Washington DC • HIMSS, Florida, March (Life Sciences) alongside Salford’s Jon Corner to promote 5G in • Health Innovation Week, Toronto, April Manchester as well as cross-sector opportunities • Tech Week, Global, June including FinTech and eCommerce. They met with 30 • SIBOS, Boston, October (financial services) • Mayoral Visit, New York, November

3. To strengthen research, data and market analysis capabilities to drive a forensic sales approach and increase conversion

Following a review of Manchester’s key The study highlighted that Greater Manchester comparator cities, MIDAS and Marketing must continue to grow and invest otherwise it risks

Manchester commissioned The Business of falling in position over the next decade due to the

Cities to analyse how Greater Manchester is rapid growth of cities and metro areas in Asia and performing internationally, the final report other fast-growing regions. Unlike the ‘established’ for which was finalised in Q3. world cities such as London, New York and Tokyo The aim of the study, which was structured to align that host dense corporate and decision-making with the themes and priorities set out in the GM functions, these cities are smaller, more specialised

Strategy; Internationalisation Strategy and Local and have distinctive points of difference and

Industrial Strategy, was to observe Greater opportunity e.g. strong metropolitan leadership, Manchester’s progress in the full global context, its compact growth, efficient infrastructure platforms, range of advantages, areas for catch up, its closely institutional strength, and innovation capabilities.

performing peer cities and the opportunities to Other cities in this group include Melbourne, change its global perceptions. This was done by Barcelona, Hamburg, San Diego, Montreal and Tel assessing where Greater Manchester features Aviv. across the latest benchmarks, indices and datasets. In European terms, Greater Manchester continues There are 550 comparative studies and indices that to be an important centre - it is the 5th largest non- measure how cities are doing, both according to capital city region by population and over the next objective performance indicators and how they are 15 years, Greater Manchester’s population is perceived among global audiences. The findings expected to grow at a rate faster than Boston, tell us that by global standards, Greater Manchester Singapore and Barcelona. Many more types of city is a medium sized city-region. It is currently the are emerging, with different competitive edges and 170th largest city region globally by population size, identities. and the 151st largest metropolitan economy by

GDP.

Greater Manchester’s visibility across the elevate Greater Manchester’s position and we benchmarks has increased at a faster rate than have now entered the matrix to be classed as an most other city regions. It is one of the top 15 cities ‘influencer’ city. New World Cities are a distinct globally for the increase in the percentage of group of high performing, rapidly (re)globalising benchmarks it has appeared in throughout the cities that seek a different success model to the past five years – alongside Rotterdam, Tel Aviv and larger and more established global cities, most Seattle. Greater Manchester has overtaken often deliberately seeking competitive advantage

Houston, Johannesburg, Brisbane and Calgary on the global stage in the last and current over the last five years in terms of visibility and economic cycle. New World Cities demonstrate along with Edinburgh, is now joint most visible city characteristics such as specialisation and in the UK after London. The work that has been innovation, a robust labour market, strong visitor done through MIDAS and partners has helped economy and scalability.

Greater Manchester’ visibility in 2014-15 2018-19 global benchmarks % of global ranks featured in 15% 32%

Global visibility rank 93rd 64th

Why has Greater Manchester’s overall appealing and attractive to talent and investors as visibility in the benchmarks improved? the most established cities become saturated and 1. There are now more benchmarks on topics that begin to experience growth externalities. Greater Manchester performs well in, so it is more 3. Greater Manchester has pursued a proactive likely to be included. This is particularly the case strategy of positioning and international

where benchmarks only look at a smaller “top” engagement over the past 20 years that has borne group of cities (i.e. the best in the world/in Europe) fruit in terms of recognition with influential for particular niches – for example, digital audiences such as media, investors and innovation, food scene, millennial appeal, app international institutions. economy. Other cities miss out in the new generation of studies because they are not widely 4. Indices are expanding to measure more cities. Manchester is an obvious choice as a key European associated with these sorts of attributes. city, UK’s 2nd city, a leading investment attraction 2. Many benchmarks are more focused on destination, and a city widely recognised for its medium-sized cities that are increasingly metropolitan leadership and ambition.

4. To grow the international impact of Greater Manchester’s inward investment team to increase the region’s investor pipeline

125 4741 5000 120 3386 4000 115 3107 2591 110 3000 105 2000 123 100 103 109 115 1000 95 90 0

2018/19 Q4 2019/20 Q1 2019/20 Q2 2019/20 Q3

PIPELINE PERFORMANCE Projects Jobs

MIDAS sourced 123 new enquiries into the pipeline The GVA output of GM’s investment has risen

in Q3, up from 115 in Q2. The number of jobs significantly, rising from an annual figure of £183m associated with these projects is up notably to over to £311 in the last five years. The primary driver of 4,700 jobs. In Q3, 24 projects were sourced that that has been the shift away from low value are mobile and see us competing with domestic sectors such as business services towards high

cities such as , , London, value sectors like digital/technology. This trend is and , as well as international increasing further as evidenced in the below chart locations Prague, Dublin and Warsaw. and will continue to drive major investments in the city region in the foreseeable future.

KEY DRIVERS OF NEW ENQUIRIES MOVING UP THE VALUE CHAIN The three primary drivers of successful investment JOBS ADDED TO PIPELINE BY SECTOR projects year-to-date are access to highly skilled

talent (45%), business environment (39%) and 1662 3594 access to a large talent pool (27%). Access to 2401 3501 highly skilled talent is up from 30% in FY19 and is increasingly the key driver of investment projects 3505 6061 2427 in the current climate. 1959

2 0 1 6 / 1 7 2 0 1 7 / 1 8 2 0 1 8 / 1 9 2 0 1 9 / 2 0 Business Services Technology

Key Operational MIDAS Contacts

Name Job Title Mobile Email Tim Newns Chief Executive 07481 080 065 [email protected]

Sarah Mills Exec. Assistant and Project Manager 07481 080 065 [email protected] Andrew Toolan Head of BD – Strategic Partnerships 07738 027 186 [email protected] Deborah Walker Head of BD – FPBS 07789 917 880 [email protected] Hannah Tracey Head of BD – CDT 07725 372 233 [email protected] Catherine Davidson Head of BD – Life Sciences 07384 547 983 [email protected] David Hilton Head of BD – Adv. Manufacturing 07703 470 280 [email protected] Alexandra Moorhouse Marketing Manager 07795 006 430 [email protected] Daniel Baxter Analytics Manager 07592 108 252 [email protected]

Appendix 1 – Forthcoming Property Requirements (occupiers in temporary space)

Project/Client Current Space Long Term Requirement

Slalom Spaces (Peter House) 20,000 sq. ft.

BAE Systems Lowry House 20,000 sq. ft.

BankNorth Lowry House 10,000 sq. ft.

Fractory Barclays Eagle Lab 5,000 sq. ft. Larger serviced office SimpliSafe Landmark, Spinningfields 2,000 sq. ft. (Industrial) Revverbank Lowry House 4,000 sq. ft.

Fitch Ratings Lowry House 10,000 sq. ft.

Recent Transitions Former space Space taken

MoneySupermarket Spring Gardens 20,000 sq ft (No. 1 Spinningfields)