Manchester City Region TheBusinessDesk.com Supplement | North West | October 2013
Featuring Top 25 high growth companies. 9 A city united by sport. 13 US graphene firm sets up European HQ. 19
Setting its own agenda for growth
in association with Manchester City Region 2 Confidence North West Supplement Editor Foreword October 2013 is key
HERE is a real belief among Contents businesses in the Manchester City Sponsor forewords: T Tim Newns of MIDAS; Mike Rose of Region that better times are around the Santander Corporate & Commercial; corner. After five years of uncertainty Gary Houghton of Baker Tilly and confidence is returning, be it through Stephen Chalcraft of Pannone. 3 & 4 ➔ increased M&A activity, investment, job Giving wings to creation or physical development. Manchester’s business growth. Global connectivity The city region has a number of major strengths: its strong leadership; its is vital to the continued rise business support ecosystem, with the biggest regional legal and financial of the country’s fatest services community outside London; its entrepreneurial culture; diverse growing city. 5 ➔ business sectors and of course the airport. Business appetite for finance returning. Manchester Airports Group continues to drive economic growth and Is this a sign that broader business out-perform other regional airports. The multi-milllion pound Airport City confidence is on the up? 8 ➔ Enterprise Zone development has the potential to be a real game-changer for the city and wider region in terms of wooing international investment. Top 25 high growth companies in Greater Manchester. Our data table, produced with In property, the Co-operative Group’s new flagship headquarters at One Experial Corpfin, details the high growth Angel Square completed this year, while Number One St Peters Square companies across the ten local authorities of and the Central Library and Town Hall redevelopments are to follow the city region. 9 ➔ closely behind with completion next year. Marketing the Manchester In terms of sectors, knowledge-based industries are thriving as City Region to the world. Manchester continues to build on its heritage of scientific innovation Promoting the city for by becoming one of the most important city regions for research, business is very different development, innovation and academic excellence. to promoting it as a leisure destination - but the income Where confidence leads, deals follow and although some lag is to be from both have a significant impact expected, I’m hopeful we’ll start to see deals, that had perhaps stalled or on our local economy. 11 ➔ been delayed in the downturn, start to flow much more readily from early A city united by sport. Professor Chris next year. Brady of the University of Salford on the But if the big headline grabbing deals are to keep coming, there must be value of having two of the world’s a pipeline of businesses pushing up behind them. Those businesses need sporting brands in one city. 13 ➔ support and advice to help them grow and reach their potential - that’s Knowledge transfer for growth. what our supplement sponsors are here to do. There is a continued need to better The Manchester City Region supplement has been a fascinating and connect this region’s world-beating rewarding project for TheBusinessDesk.com and thanks are due to our universities with business. 17 ➔ sponsors Santander, Baker Tilly, Pannone and MIDAS, who all share our The creative and digital passion for business in Manchester and the wider region. opportunity. MediaCity and The Sharp Project have together had a catalytic effect on the growth of creative Chris Barry industries across the editor, TheBusinessDesk.com city region. 22 ➔ Top Secret ‘Tomorrow Project’ moves closer. A collaboration of global Publication editor: Joanne Birtwistle companies is to base its European [email protected] headquarters in Manchester, bringing Editor: Chris Barry ground-breaking technology to the city. 25 ➔ [email protected] Portland Tower, 53 Portland Street, Commercial manager: Round table discussion. Manchester M1 3LF. Lee-J Walker Power to the people. 29 ➔ Tel: 0161 238 4922 [email protected]
« Previous | Back to Contents | Next » 3 Invest in Sponsor foreword Manchester
AS the inward at the forefront of pioneering business into specific sectors you find excellent investment ideas – leading the way with that oft- examples of innovative companies agency for Greater quoted mantra about ‘what Manchester like Qiagen growing its research and Manchester, MIDAS does today…’. development presence in the area of is charged with molecular diagnostics, or Bluestone As the world emerges from the shadow promoting the Global Tech, the New York-based of the past five years businesses are city region as a graphene manufacturer which last Tim Newns increasingly choosing Manchester, leading location for month announced exciting plans to chief executive, and with good reason. Our city region business relocation open a European base at the University MIDAS is at the heart of the north of England, and expansion. Job of Manchester. with a workforce of 7.2 million people creation and economic growth is at the within one hour’s commute from We hope to welcome many more heart of everything we do and we’re the city centre and one of the largest international investors over the proud to say that during the 2012-13 student populations in Europe capable coming years and we are committed financial year 4,143 jobs in total were of delivering an experienced and to providing support and advice to created, safeguarded and relocated with sustainable labour pool. companies looking to establish a support from MIDAS. presence in the region. MIDAS offers Organisations as varied and diverse services including a free soft-landing Inward investment is about much more as Aegis, Eon Reality, BNY Mellon scheme for overseas investors, research than job creation however; it’s about and the BBC have already voted with and business case support, property improving the knowledge economy, their feet in choosing Manchester, and solutions and recruitment support. encouraging innovative and inspiring those are just a few of the recognisable companies to lay their roots here, and names that have made headlines in To find out more log on to making sure that Manchester is always recent years. When you drill down www.investinmanchester.com
Sponsor Fuelling local foreword business ambitions
AT Santander operations or making acquisitions. of understanding how we can give Corporate & customers a solution that is tailored to Commercial, we In short, our customers have ambitions. their specific needs. have a simple vision. We want to act as a catalyst and fuel We want to see these ambitions. In addition, we have opened new centres across the region because we banking through We do this, for instance, by continuing understand that easy access to our our customers’ eyes. to actively lend, even in a tough Mike Rose services is important to our customers. And it starts with the economic environment. In 2012, we regional question: what do increased funding to SMEs by 18%, We know that every business person director, our customers want? supporting more than 5,000 SMEs with out there has their own ambition. It’s North West, £3.4bn of new lending. what drives you – and us. Let us fuel Santander Our customers have your business ambition, and together Corporate & told us they want And to underpin this commitment we can achieve your goals. Commercial a relationship with to North West businesses, we have a people who take growing team of relationship directors time to fully understand their business and product specialists. They are all – and then propose bespoke solutions. based locally, so they understand They want a bank that can really help local business dynamics. When them make a positive step change – they meet our customers, our credit whether this means expanding existing partners come along too. It is all part
« Previous | Back to Contents | Next » 4 A can-do and Sponsor foreword cohesive approach
OUR region is The proactive governance adopted and knows the importance of first class emerging as a centre by the combined authority has been infrastructure - we successfully lobbied of excellence on very attractive to central government for and won High Speed 2. the international when funding infrastructure and We are also very aware of the need for economic stage. development projects in the region. It good housing stock on the city fringe in And at the heart has also been a big draw to companies order to attract an educated, skilled and of that success is looking to inward invest because mobile workforce to the city. While at Stephen the governance they know that development activity Chalcraft the same time, the city has been good at arrangement in the happens here and infrastructure fostering connections with universities partner, form of the combined continually improves. Pannone and created the knowledge corridor for authority. start-ups and SMEs. The combined authorities recognise The combined authority is viewed by the importance of the international The region is held up as a beacon of central government as ‘class leading’ environment and in order to compete proactivity and excellence in central for its ability to provide a joined-up on the world stage developments such government and, increasingly, around approach to promoting growth. as Airport City and Medipark are vitally the world and this is testament to important in attracting international the can-do and cohesive approach to We only have to look at how the 10 companies to the region and in fostering investing in and promoting growth. local authorities pool knowledge and international opportunities for local resources to promote the transport companies. agenda, particularly the Metrolink, which doesn’t necessarily benefit every The city and wider region has been single one of them. excellent in quickly adapting to change
Sponsor Strength in diversity foreword
THE Chancellor universities with businesses that can and fast-growing businesses to help George Osborne commercialise knowledge. Access to them achieve their ambitions. We announced in a finance has improved over the past 12 to understand that every business is speech last month 18 months, though there is undoubtedly different and so we take a consultative that the UK economy room for further improvement. approach with our clients. We help is turning a corner, businesses looking to maximise value Manchester has many strengths. Its with tentative by drilling down to the fundamentals of Gary professional services, banking and signs of a balanced, profit improvement, risk management Houghton advisory community is recognised broad based and and strategic development, all of which partner, throughout the UK and beyond for sustainable recovery. are prerequisites for sustained growth, Baker Tilly its excellence. It has a strong and but can easily get overlooked when The question is how increasingly active private equity entrepreneurs are focused on the day- do we continue to build on Manchester community. Overall, I am confident that to-day management. City Region’s success? Manchester provides an environment in which entrepreneurship can flourish. We want to help the businesses that The region’s economy is widely The challenge we now face is how to will play a major part in the future of acknowledged for its diversity across a galvanise the entrepreneurial sector, Manchester City Region’s success and variety of thriving sectors, in particular for it is entrepreneurs who will drive are excited at the opportunity to do so. advanced manufacturing, creative growth and create employment and industries and science and technology. wealth, not just in Manchester but in the Tourism and visitor numbers are on North West and beyond. the increase and Corridor Manchester is set to generate economic growth At Baker Tilly, we focus on working as it works hard to connect those in with entrepreneurial, owner managed
« Previous | Back to Contents | Next » ➔ 5
Giving wings to The fastest Manchester’s growing city in the country, business growth Manchester continues to attract more people and HE 2011 Census figure put To continue this trend, Stephen the population at 503,100, Chalcraft, partner at law firm Pannone, jobs – both vital T sees one of the next big issue being the making Manchester the improvement of housing stock in the indicators of the country’s fastest growing city, city to attract “the right people with the overall health of and mid-year estimates for right skills”. businesses within 2012 suggested this figure had “We are awash with flats but there is gone up to 510,800. By 2021 this a gap for good family housing. I’m less the city region. is predicted to rise to 532,200. convinced that younger families want to live 15 miles out in the suburbs – they Manchester, along with other southern want to take advantage of what the city parts of Greater Manchester with which centre and the new economy has to it is measured, generated economic offer,” he says. output worth £32.51bn in 2011 – a 1.5% increase on 2010, according to the State of the City report, published in August and now in its seventh year. ‘Manchester is clearly a place where people want to live, work and invest The number of people employed within the - as well as visit.’ city has also gone up from 298,800 in 2010 to 309,400 in 2011, Indeed, there continues to be a gap Core Cities, the largest English cities with the financial and professional services between the average weekly wage outside London. Stephen sector accounting for for people working in Manchester Chalcraft more than a fifth (22%) (£433.40) and the average weekly wage Manchester City Council leader Sir partner, of the city’s employees, for Manchester residents (£362.60). Richard Leese says that despite some Pannone compared to a national Although this gap has closed slightly, deep-rooted, challenges and squeezed rate of 13%. it is the largest wage gap of any of the resources, “Manchester is clearly a ➔
« Previous | Back to Contents | Next » place where people activity, as being one of the biggest want to live, work boons to Manchester and its ability to and invest – as fund its own transport initiatives. well as visit – there are undoubtedly “If you link High Speed 2 with the still considerable Northern Hub, the Metrolink extension challenges to confront and the airport offering it creates a very Sir Richard together and we do compelling, internationally attractive Leese not shirk from that.” proposition.” Manchester City Council Pannone’s Chalcraft By 2016, the new Metrolink line will leader says that although – link Manchester Airport to South like any city – there Manchester and the city centre. are challenges to Andrew Cowan, chief operating officer passenger milestone address, the city council has been very in May this year and successful at driving Manchester and at Manchester Airport Group (MAG), has just enjoyed its the region’s economic growth and is says: “Providing passengers with a busiest summer “very astute” at spotting trends and range of ground transportation options since 2008. being ahead of the curve. is vital to bring in people from the region and beyond. We connect 24 Yet it still lacks “The creation of the Association of hours a day with the rest of the UK a direct route to Andrew Greater Manchester Authorities (AGMA) through a range of road, train, bus and Cowan back in 1986 is an example of that – coach routes. Plus the proposed addition China – something of a ‘must have’ for chief operating pooling the expertise of the wider city of the HS2 rail link will only open up officer, any city wanting region. our catchment area even further.” Manchester to compete and Airport Group do business internationally. ‘The two words inextricably linked to Cowan says passenger demand is Manchester’s continued growth are ‘speed’ certainly there: “Last year 100,000 and ‘connectivity’.’ people began their journey in the North West and travelled to Hong Kong, while 60,000 went to Beijing; and these are the types of passenger numbers that “That approach has allowed the city Underlining its importance as an would support a direct service. It’s region to attract inward investment and economic engine for the Manchester something we continue to work on and central and European funding. There is a City Region and the North West, will be supported by our work in the feeling that if funding comes here it will Manchester Airport hit the 20 million Manchester-China Forum.” ➔ be well spent – Manchester has a great record of outcomes.
“It is successful at seeing where Manchester is going and making sure it has the physical infrastructure in place for that. Over the last decade the city has been transformed – it is the second city now and that’s all been about having a focused strategy for growth.”
Chalcraft thinks the two words inextricably linked to Manchester’s continued growth are ‘speed’ and ‘connectivity’.
“Everything is changing so quickly that you have to be connected. Look at infrastructure provision such as the Metrolink’s recent expansion and the way the city has ensured we have the office infrastructure to attract the right workforce.”
Chalcraft points to Manchester’s City Deal with the government, which allows the city region to keep a proportion of tax revenues created through expected increases in economic
« Previous | Back to Contents | Next » “One of the reasons we’ve been so are simplified planning zones and those involved in the Manchester-China are advantages, along with the fantastic Forum is to support the growth agenda,” location.” says Cowan. “As Airport City and a potential China route progress, we Sitting alongside growth in airport hope to see business traveller numbers passenger forecasts, the project will increase further. Plus we’d like to hope capitalise on Manchester Airport’s that through our quality offering, we combination of location, infrastructure, convert many leisure passengers to connectivity and pick Manchester as their airport of land assets. It draws choice for their business travel, and vice on Manchester’s versa.” academic, scientific, MAG says its plans to build and develop and technological Airport City, a designated Enterprise credentials, and Other routes he says the airport is keen Zone, will be a massive growth driver is supported to serve include Bangkok, Shanghai, San for Manchester Airport and the wider by the region’s Karen Francisco, Miami, Johannesburg and region - forecasts predict Airport City communications Campbell Brisbane. could create up to 16,000 jobs over the and transport director, next 10 to 15 years. infrastructure. “The importance of long haul Manchester Airport Group connections cannot be underestimated For Chalcraft, it is the geographical Karen Campbell, and international routes have helped location and physical assets Airport City play a part in consistent passenger surrounding airport city – rather than director for MAG, says: “Airport City growth here at Manchester,” he adds. its Enterprise Zone status – that will will take Manchester Airport beyond attract business as the region’s economy MAG works with a range of partners its traditional use as a regional becomes more internationally focused. including inward investment agency transport hub and transform it into an MIDAS, as well as shareholders in “It’s the geographical location of the international business destination in the form of AGMA and Marketing Enterprise Zone that has been chosen its own right. It will provide a major Manchester - where several senior wisely. Incentives in themselves are regeneration opportunity for the directors sit on the board - and also offered elsewhere and business rate surrounding Wythenshawe area and government agencies such as UKTI. relief is not a huge incentive. But there help to further boost Manchester’s attractiveness as a major European Business City.”
With planning applications approved ‘Airport City will take Manchester Airport beyond by the council earlier this year, plans being a regional transport hub and transform it are developing quickly and MAG says it will soon be announcing joint venture into an international business destination.’ partners and the first companies to sign up to space on site.
Manchester Airport - fast facts
- The third largest airport in the UK - 35% of business travellers that come and the busiest outside of London. through Manchester Airport are from manufacturing corporations. - It handles over 20 million passengers annually and has an on- - Healthcare and life science industries site workforce of around 19,000. make up 11% of visitors, while 8% of international business travellers are - It is served by 65 airlines that fly to from telecommunications, media over 200 destinations. and technology firms.
- The top five destinations outside - Most international business of the UK for business travel are: travellers stayed in the North West Amsterdam, Dublin, Paris, Frankfurt (67%), while 16% visited Yorkshire and Dubai. and 4% travelled to both the North East and East Midlands. Source: MAG, 2013
« Previous | Back to Contents | Next » “As a challenger bank, we are the fastest growing bank in the commercial sector. 8 Our Manchester ➔ lending book grew by 13.6% in the last 12 Gary months – and that’s Houghton all new lending,” he partner, says. Baker Tilly Allnatt also points to Santander’s Breakthrough programme as an example of the bolt-on support the bank is providing to fast growth businesses with a turnover of less than £25m.
“The programme has everything from internships to trade missions – we have done New York, Boston and Brazil – and a fund of £200m over five years to support high growth businesses with an attractive product that works a little bit like mezzanine finance,” he says.
Access to finance has improved substantially over the last 12 to 18 months, according to Gary Houghton of Baker Tilly, as public and private Business appetite sector initiatives have come on stream. “We have started to see people take advantage of that funding over the last for finance returning nine months or so,” he says. “You can create new types of finance through the private sector but there needs to be CCESS to finance is vital for He adds that as a challenger bank looking an awareness of that, which takes time. business growth and just to double its market share from 5%, Some people still think they can’t raise A Santander has to be transparent about finance, so they don’t try. how much the banks really its lending book and proactive in its are ‘open for business’, as they initiatives to capture new business clients. “If you go back five or six years we say, is an ongoing debate but were doing lots in the IPO marketplace The bank has invested in new local offices and all that just stopped. There is still lending levels and business’ across the city region – in Stockport, a view that public markets are closed appetite for debt is an oft-used Bolton, MediaCity, Rochdale and out but that is not the case at all, there is marker of broader business to Preston – it is taking on more asset an abundance of institutional funding confidence.
Tim Allnatt, relationship director at Santander Corporate & Commercial, ‘Acquisitive businesses need to act says that banks have not been operating while they can still get targets at in a “normal market” in recent years. a good price.’ “There have been lending constraints across the banks and other lenders but equally there has finance and invoice finance specialists available. In addition, Manchester has a been a reduction in and, over the next six months plans superb private equity community.” demand – that is a to double the number of relationship big factor,” he says. directors it has on the ground in the Debt markets are freeing up and “This year, I have North West to more than 20. corporates are starting to look at Tim Allnatt seen an increase in acquisition targets, he adds. relationship businesses that are “We are interested in talking to all director, looking to invest - we businesses – it’s not as simple as looking “As prices firm up and asset prices rise, Santander are finally starting at a balance sheet and profits. We as a acquisitive businesses need to act Corporate & to see an uplift in bank look at businesses in the round,” while they can still get targets at a good Commercial confidence.” he says. price.”
« Previous | Back to Contents | Next » ➔ 9 Top 25 high growth companies in Greater
Manchester Source: Experian Corpfin
Date of Growth in Growth in Total Sales Number of Company Name Location Most Recent turnover employees £M Employees Accounts (% increase) (% increase) 1 Goldbeech Trading Limited Cheadle 31/07/2012 £4.07 1 1493% 0% 2 Minstrell Recruitment Ltd Manchester 31/08/2012 £14.58 17 1031% n/a* 3 Mainstar Company Limited Sale 20/07/2012 £2.37 n/a* 603% n/a* 4 Seemed Healthcare Ltd Oldham 31/05/2012 £1.66 n/a* 379% n/a* The Monastery Manchester 5 Manchester 03/01/2012 £1.32 n/a* 267% n/a* Limited 6 Westwood Pharmacy Ltd Oldham 31/03/2012 £1.13 n/a* 219% n/a* 7 Great Fridays Limited Manchester 31/12/2012 £3.49 n/a* 203% n/a* Taylor Engineering & 8 Rochdale 30/09/2012 £25.38 205 162% 20% Plastics Limited 9 Liberty Sipp Limited Bury 31/03/2013 £1.56 19 145% 171% Sartex Quilts & Textiles 10 Rochdale 31/07/2012 £14.31 107 126% 73% Limited 11 Tuscor Lloyds (UK) Limited Trafford 31/12/2012 £14.89 24 111% 9% 12 AMR Textiles Limited Bolton 31/03/2013 £18.51 109 100% 73% 13 P P OConnor Limited Salford 31/10/2012 £16.49 118 97% 62% Ardale International 14 Manchester 30/11/2012 £18.86 10 91% 43% Limited Gary Fletcher (Surfacing) 15 Manchester 31/10/2012 £9.37 39 89% 3% Limited CVS (Commercial Valuers 16 Trafford 31/12/2012 £14.60 245 83% 153% & Surveyors) Limited Granada Material Handling 17 Rochdale 30/09/2012 £11.18 85 82% 25% Limited 18 Russells Limited Trafford 30/09/2012 £31.35 68 79% 3% 19 Charmeldon Limited Tameside 31/10/2012 £1.37 n/a* 78% n/a* 20 Sanjeev 1979 Limited Manchester 30/06/2012 £30.53 138 60% 171% 21 Excalon Limited Salford 30/04/2012 £27.20 181 50% 115% 22 K2 IT Ltd Stockport 30/04/2012 £40.50 20 44% 100% Deekay Technical 23 Trafford 31/03/2012 £12.03 265 n/a* 1938% Recruitment Limited 24 Stepping Stone Project Rochdale 31/03/2012 n/a* 72 n/a* 148% Concierge Legal Services 25 Stockport 30/09/2012 £7.68 158 n/a* 84% Ltd
Search Criteria: High-Growth Definition: Businesses included in the ranking must be active, independent All enterprises with average annualised organic growth greater than companies with the turnover more than £1m in the latest period and that 20% per annum, over a three year period should be considered as have their registered address in one of the ten local authority Districts high-growth enterprises. Growth can be measured by the number of Bolton, Bury, Oldham, Manchester, Rochdale, Stockport, Salford, Tameside, employees or by turnover. Source: (Eurostat - OECD Manual on Business Trafford and Wigan. Companies that filled their Latest Account Date From Demography Statistics). 1 January 2012 to 31 December 2013. *n/a - the figure was not disclosed or could not be derived Ranked by turnover growth, then employee growth.
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➔ 11
Marketing the Manchester City Region to the world
ARKETING the Manchester City Region as a tourist destination “Business tourism is broadly the same is clearly different to selling it to inward investors, but either and our competitors are Liverpool, M Birmingham and Glasgow. Liverpool way, there is a job to be done in both changing perceptions and has emerged as a destination, now with tackling a lack of awareness of the city on the international stage. a conference and exhibition centre, and it is attracting some big conferences.” When it comes to tourism marketing China is an obviously large potential spend, Manchester gets the best market, both in terms of its sheer size As Lou Cordwell, return on investment from Germany, and because of Manchester’s strong founder and Ireland, the US, Spain and Scandinavian Chinese community, but direct flights to chief executive countries. the country have yet to be secured. of digital agency magneticNorth and “But we alter the message for each of “We are working with Manchester a member of the those markets,” says Paul Simpson, Greater Manchester managing director of Visit Manchester Airport and MIDAS on that and there LEP, points out: – the tourist board for Greater is a genuine interest over there – Lou Cordwell “There are a lot of Manchester. “So the US message particularly relating to sport. But there founder and cities vying for the is about the cultural opportunities, are visa issues to overcome with some chief executive, same business and whereas in Ireland and Scandinavia of these countries,” says Simpson. magneticNorth we have got to cut we focus on the shopping and sport. through that noise,” We have also done work in Japan and “The other challenge for us is the first she says. Australia in the past - and we did a lot time a Chinese visitor comes to the UK around the Commonwealth Games.” they want to go to London. Cordwell believes that a top level logo and strapline makes no difference to people’s perceptions of a city.
‘China is an obviously large potential She says: “Marketing and tourism market but direct flights to the country have discussions are different to the perception of a place, which is built up yet to be secured.’ through policy and how that affects a place when they visit. How do we ➔
« Previous | Back to Contents | Next » think like a broadcaster – live 24/7 – no one is doing that.”
Happily, Manchester’s marketeers and civic leadership understand this difference and is working hard on both fronts.
“We have a lot of the pieces of the jigsaw you need for modern ways to market a city. We have the stories we just need to tell them. We just need to scratch the surface a little bit,” says Cordwell.
But once we’ve got an international visitor here – be it for business or pleasure – is there the potential for conversion from one to the other? That is, should a leisure visitor be considered a potential inward investor suppliers through conferences, trade Manchester’s brand: or a conference guest a future shows or conventions. Original Modern is, holidaymaker? says Simpson, “a “Supporting local organisations is a way of working and very powerful way to market the When it comes to converting tourism thinking, not a slogan Manchester City Region to the world, and leisure (mobile investment) into or logo. We still use as they act as powerful and credible inward (fixed) investment, attending a the phrase – it is a ambassadors in the networks they are Paul Simpson conference or an event does allow that way of tackling the in,” she says. managing visitor to ‘trial’ a city, so that prospect perception that it is director, Visit could be considered a warm, rather From an inward investment point just an industrial Manchester than cold lead. of view, the concern is how the city town. competes against the might of London Admittedly there are several big steps “It tackles both ends – we do have a between visiting somewhere and and increasingly with other cities strong industrial heritage but also we relocating there. outside the UK, all of which are chasing the same international investment? are a modern, contemporary city.” According to Cathy Parker, professor The city has a hugely diverse cultural of retail and marketing enterprise at Stephen Chalcraft, partner at law firm offering - something the acclaimed Manchester Metropolitan University, the Pannone says: “There will be a tendency type of investment that is more likely to in this climate for inward investment Manchester International Festival come from business tourism is through to migrate to London. How do we tackle highlighted again this year, as well as the purchasing goods and services from some of the innate advantages that a strong retail offering and one of the local firms that have become networked London has got?” world’s busiest music arenas. to new national or international Investment in the UK is London-centric Stephen Miles, general manager of the so the answer has to be to piggyback on Radisson Blu Edwardian and chairman that success and make Manchester the of the Manchester Hoteliers’ Association, default place of choice outside London, says: “I do a lot with the music Tourism – fast facts if investors interested in the UK find business and these days artists make London too expensive. their money from tours. In Europe, - The number of overnight visits to Manchester as a venue is second on Manchester is known on the world Greater Manchester rose by 8.4% their list.” in 2012 – with 10.3 million people stage, not just through the efforts spending a night in the city region. of organisations such as inward But it is football that seems most investment agency MIDAS, Marketing synonymous with the city these days - They contributed to a £325m+ Manchester, the Association of Greater though, thanks to the global reach of rise in the value of the tourism Manchester Authorities (AGMA), Visit Manchester United and increased profile industry to the local economy, Manchester, the council and airport but of Manchester City, since the Abu Dhabi from £6.2bn in 2011 to £6.6bn in mainly because of things like the city’s 2012. industrial heritage, football clubs [see takeover in 2008, which has brought p13] and music. in hundreds of millions of pounds - 2,896 jobs were also created of investment to the team and local during the year – taking the Angie Robinson, chief executive of the infrastructure. number of jobs supported by the Manchester Central convention complex, tourism industry from just over says: “We are what we have been. If Simpson says: “Our challenge is to get 81,000 to almost 84,000. we were not an industrial heartland I people to understand that there is more would not have this train shed to sell to the city than Manchester United but - Greater Manchester’s hotel with the canal running along its side. having the name Manchester in one of occupancy rates are 73% - with One thing we have done so well is bring the major global sporting brands is a big 20,474 rooms in total. our ancient infrastructure and you see help – and we are seeing that replicated that alongside new, edgy architecture.” with the rise of Manchester City.”
« Previous | Back to Contents | Next » Professor Chris Brady, co-director 13 of the Centre for ➔ Sports Business at University of Salford, on the value of having two of the world’s biggest sporting brands in one city.
A City United by sport
INCE the inception of the Premier League in the 1992/93 number of students attracted to season, with its ever-increasing broadcasting revenues Manchester as a consequence of football S has yet to be quantified but research and genuinely global reach, Manchester has achieved a level of carried out by the Welsh Economy awareness on the back of Manchester United’s success. With the Research Unit at Cardiff University in more recent emergence of Manchester City the Manchester brand January 2013 states that: “Swansea has grown even stronger. University has seen a record 25% increase in applications for entry in Together the two Manchester clubs a year on an advertising-equivalency September 2013 [when Swansea City now have access to every market in basis. If everything continues as it is for joined the Premier League], 4% higher the world and riding on the back of the next 20 years this could be worth than the previous record high in 2010, at that access is the city of Manchester in excess of £2.5bn to Manchester’s a time when there are concerns about itself. Where Merseyside’s tourist bait economy. numbers of applications nationally”. is the Beatles, Manchester’s is football. As a consequence, Manchester is now What is clear is that the profile of the It is reasonable to assume that if a Britain’s most successful sporting city. Premier League and its two leading relative newcomer to the Premier clubs provide large football-related League can show such results then the In a recent research report published revenue for the local economy. Hotel Manchester effect will be even more by the Sport Industry Research occupancy rates, and prices, for striking. Centre at Sheffield Hallam University example, are up by an average of 10% to and Cambridge 15% on match days. Manchester itself has also become a Econometrics it magnet for media and sports related was estimated that Not only are there direct benefits but industries a fact which, according to the also football raises the global recognition football contributes report, made it obvious to relocate BBC of the city, attracting not only visiting in the region of Sport with the wider move of the BBC football fans, but also investors and £330m in gross to MediaCityUK, even at a time when skilled workers from sectors far wider value added (GVA) to the Olympics were due to be hosted by than sport alone. Greater Manchester’s Professor London. economy. As Professor Simon Shibli, co-head of Chris Brady Sport and media, as sub-sets of the co-director, the Sports Industry Research Centre, According to leisure industry, are the only ones Centre explained, “[Football] contributes the report, the that economists generally agree are for Sports immensely to the city’s financial, global profile that guaranteed to grow over the next two Business, cultural and social capitals.” Manchester receives decades and Manchester has got the University of from football is Salford Other real beneficiaries of the football biggest brands for awareness of that in worth over £100m effect are the city’s universities. The one place with United and the BBC.
« Previous | Back to Contents | Next » Radisson Blu Edwardian plans ➔ 14 direct walkway to Manchester Central
THE Radisson Blu Edwardian Hotel in Manchester city centre has revealed soon to be submitted plans to build a walkway that will directly connect the five star hotel to its near neighbour Manchester Central.
The development will form part of a multi-million pound expansion to create banqueting facilities at the hotel, with work due to commence in the first quarter of 2014. Manchester Central - an eye Edwardian Group bought the historic Theatre Royal building next door for an undisclosed sum last on the rest of the world year. HE boss of Manchester “We have made changes to improve General manager Stephen Miles Central says it is celebrating customer service and brought in says: “Crucially, it will provide T technology such as free wifi and something the city needs – an a record turnover for 2012/13, channelled resource to the front end. upmarket 800 seat ballroom and is confident its strategy facility. “I put some of our growth down to of targeting international business confidence but also to the “It will include 10 signature suites, a conferences will further boost huge changes we have made here, restaurant bar on the roof and will its success. aggressively pursuing business and be pedestrianised between the two improving our services - when I came buildings for one entrance.” Manchester Central’s in two years ago there was one person turnover hit £12.6m on marketing. Since then we’ve invested The Theatre Royal opened in 1845 for the year ending in marketing, sales and customer and is thought to have been an March 31, 2012 and service.” inspiration for the exterior of the chief executive Angie Royal Opera House in London’s Robinson says yet to Robinson has also instigated a strong Covent Garden. be published figures environmental agenda: “I’m not doing it Angie Its façade on Peter Street has for 2012/13 will show to hug trees, but because environmental Robinson remained largely unaltered. In the a record breaking improvements make a massive chief executive, 1920s it was re-modelled as a cinema year. difference to our energy bills and that Manchester has an effect on the bottom line,” she and since then has had various uses Central Chief executive states. including a bingo hall and a latterly Angie Robinson a nightclub, before being abandoned several years ago. says: “We have seen a resurgence in Environmental changes equate to a £100,000-a-year energy saving and pubic exhibitions but we have a robust, that will grow to £250,000 in the next mixed portfolio with trade exhibitions, couple of years. corporate events, banquets and dinners. We have a strong national conferencing Robinson adds: “If we can do all of that business and an increasingly strong in a Victorian train shed then anyone international business, which is a key can do it.” area of growth for us.” Wider economic impact is another The conference and exhibitions venue, performance indicator for the venue. which recently underwent a £30m Conferences and business events redevelopment programme, employs across the city region generate £822m 118 full-time staff and held 140 events for Greater Manchester’s economy, last year. attracting over five million visitors a year, supporting approximately 22,000 jobs. Robinson is aware that it’s not just volumes that are important but “We communicate with local profitability. businesses, such as coffee shops, ➔
« Previous | Back to Contents | Next » plans to grow that figure to 15% in the Parker adds: next three or four years and then 20% “Many conferences by 2020. rotate their venue which means it is “International business has a profound a hard market to economic impact. It means people be in – as you are see Manchester and not just come not necessarily Cathy Parker for business but will bring back their going to get repeat professor of families and stay longer,” says Robinson. custom from the retail and various societies and marketing Cathy Parker, professor of retail and associations that host enterprise, marketing enterprise at Manchester conferences; so even Manchester Metropolitan University says that though the spend per Metropolitan international conferences are seen as visitor may be lower University so they know about upcoming events the ‘holy grail’ of business tourism. the more local and and can plan to put on extra staff regional events may accordingly,” says Robinson. “When people have to travel here from be worth a lot more in terms of ‘lifetime abroad they spend more money (on value’ to the city.” The city has been hosting political hotels, taxis, meals out, sightseeing conferences since 2006 and getting the and even souvenirs). However, at the She thinks Manchester may be better city seen on TV, which has been made moment international conferences and concentrating on its loyal local and easier with the BBC’s move to MediaCity, meetings only account for about 3% of regional market – adding that a great all helps to change perceptions. all business events; local and regional way to do this and grow business conferences and meetings are the most tourism is to support local organisations Visit Manchester’s Paul Simpson says: common,” she says. hosting international events. “The Conservative Party conference in Manchester is important not just According to the International Congress Simpson points to Manchester’s in terms of spend but in getting and Convention Association, Manchester Conference Ambassador Programme, which supports individuals based in the influencers and decision makers here to is ranked 78th as an international city-region who influence their own see the city. conference venue in the world and professional associations and groups. 42nd in Europe, compared to Liverpool’s “Each political conference is worth £15m to £20m – that is undoubtedly ranking of 134th and 71st. However, He says: “It’s linking in with university important but so too is establishing Manchester does not fare so well researchers and professors and leading those closer links with government.” against its comparison group of ‘second minds to bring their associations into tier’ cities, with Amsterdam, Hamburg, Manchester. We work with those Currently, 8% of Manchester Central’s Oslo and Zurich all attracting more professionals and their associations to business is international but the venue international business events. bring their conferences to the city.”
for apprentices, so people can learn HotelFuture and be paid at the same time, but also for the retention of team leaders THE £30m HotelFuture scheme in and people who have been in the Oldham will see the creation of a new business four or five years, so will 144-bed hotel with convention and spa include management and executive facilities that will be used as a national programmes – it’s not just for school hospitality training academy. leavers.” other locations in the next five years. Courses on offer would range from He also says the hotel is a commercial around 100 apprenticeships a year operation that will “succeed on its Paul Simpson, managing director to executive management courses own merits”. It has the backing of 40 of Visit Manchester, says the provided by Oxford University and hospitality brands such as Hilton, development will challenge the Cornell University, among others. Malmaison, Marriott Carlson, Rocco perceptions of the hospitality Forte and Radisson Edwardian. industry and show it’s a sector that Stephen Miles, general manager of can offer a long-term career path. Manchester’s Radisson Edwardian “This is a very serious undertaking hotel is heavily involved with the with major backers and qualifications He adds: “There is a perception of scheme in his role as chairman of gained at Hotel Future will be the sector that they are low value, Manchester Hoteliers’ Association. respected not just in the UK but entry-level jobs such as waiting on throughout the world,” he adds. and porters. We need to address He says: “It is one of the most that through a perception shift – so revolutionary initiatives in In the longer term, Miles hopes the people are entering the industry as vocational training that there is. It’s scheme will be rolled out to eight to 10 a career choice.”
« Previous | Back to Contents | Next » Manchester is a city with a ‘can-do’ attitude. You can feel it. We are proud to be part of it. We are passionate about helping our clients win. From personal cases to the most complex corporate projects, our people will invest the same level of commitment into getting you the results you want. Our clients tell us that Pannone people are different. They can feel it. You can too.
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MMU's new £75m business school and student hub
Knowledge transfer for growth
E in no doubt: Manchester University Hospitals NHS Foundation growth. The success of the science park City Region’s universities Trust to build on their investments and comes in its ability to match companies B generate economic growth in the 243 with the offering, allowing them to grow are a home to ground-breaking, hectare area running south from St from incubator space to bigger premises world-beating research and Peter’s Square to Whitworth Park along to meet the tenants’ business needs.” development. Oxford Road in Manchester. He points to listed European data But to unlocking greater city region Stephen Lintott, partner at law firm centre provider Telecity - founded at growth there is a continued need to Pannone, says: “Manchester did the Manchester Science Park in 1998 - better connect those universities with right thing a long time ago. Manchester which today has a market value of business and to commercialise that Science Parks has been up and running around £1.6bn. Two years ago Telecity knowledge for the benefit of all. since the 1980s. The structure we bought another science park success have now put in place with Corridor story, UK Grid, in a deal worth £11.7m. At a macro level, that’s what the Manchester, including the main science universities and the city region as a park campus, has laid a good foundation. The company, which has four sites whole is working hard to achieve, through the creation and development of Manchester’s knowledge corridor, for example. ‘Manchester did the right thing a long time Corridor Manchester ago. Manchester Science Park has been up and is a partnership running since the 1980s.’ between Manchester City Council, the University of Manchester, “I’ve worked with the science park for around Greater Manchester, says it has Manchester 20 years and in that time it has grown expanded in Manchester more than Stephen Metropolitan Lintott University, tremendously. The council has now any other city because of the activity partner, Buntwood and the brought in Bruntwood as a key private it is seeing in the city region and at the Pannone Central Manchester sector provider able to bring further science parks. ➔
« Previous | Back to Contents | Next » “Manchester Science Graham Bond, northern head of media Park’s continued and technology for accountant and success will be a big business advisory firm Baker Tilly, part of the growth is involved with the annual BioCap we see in the next conference, the only specialist life 15 to 20 years and I science investment and showcase Rowena Burns think we have made conference in the north of England, chief executive, a fantastic start,” run by the bioscience membership Manchester added Lintott. organisation Bionow. Science Parks Rowena Burns, who Held mid-September, it brought together 160 delegates including was appointed as international investors and companies chief executive of Manchester Science both seeking finance and with a Parks in October 2012, says: “In the last track record of raising finance, with Burns adds: “In the four years, right through the recession, presentations from companies UK, 90% plus of all both life sciences and technology have including Blueberry Therapeutics, medical research continued to grow year-on-year and Glythera and Euprotec. expenditure is in that continues. the South East – you “People say time and again they ‘didn’t “I’m one year in at the science park and don’t have to turn that realise the wealth of talent and business very far at all to make that growth demonstrates the skill in the north’ and we are a hub for that in Graham Bond a huge difference.” and also the habit of partnership we Manchester. There is still a job to be done northern head of media and have and that is one of the single most in trying to get people from London to Strategic planning technology, important things to take us to the next see the wealth of talent and business in to create the right Baker Tilly level.” the north,” says Bond. conditions for businesses of all sizes is undoubtedly crucial for growth but engagement and knowledge transfer starts with one ‘People say they ‘didn’t realise the wealth conversation between a university and of talent and business in the north’ and a business. Manchester is a hub for that talent.’ Mark Ratcliffe, head of knowledge exchange at Manchester ➔
University of Manchester raises £300m in bond issue
It includes plans to build a new Meanwhile, Manchester Metropolitan Manchester Engineering Campus University (MMU) is close to Development, new centres for the completing its radical expansion and School of Law and Manchester Business redevelopment. School, a major refurbishment of the Its has invested more than university library and the Students’ £350m to provide state-of-the-art, Union and a new Medical School. environmentally-sustainable buildings and facilities at MMU, with all work due THE University of Manchester has Outline plans have been drawn up to be completed in 2014. raised £300m in a bond issue that was for a second phase which is expected four times oversubscribed. to cost around £300m and would be Some of the investment includes the completed £75m business school and The bonds, which are due to be paid delivered between 2018 and 2022. It student hub (see picture p17) along back in 2053, were rated Aa1 by will include a Biomedical Campus, a with a £34m investment in MMU’s Moody’s and sold on a yield of 4.25%. new health centre, and refurbishments Manchester School of Art buildings and of the Schools of Computer Science, The funds will be used towards the equipment. Earth, Atmospheric and Environmental university’s £1bn Campus Masterplan, which was announced last year. Sciences, Mathematics and Chemistry. Work is still ongoing on the new £139m Birley Fields campus in Hulme, where Phase One of the masterplan, costing The university, which in 2011-12 had the Faculty of Education and the Faculty around £700m, is scheduled for total income of £807.3m, has more than of Health, Psychology & Social Care will delivery between 2012 and 2018. 40,000 students and around 9,000 staff. be based from September 2014.
« Previous | Back to Contents | Next » Metropolitan University (MMU), says it is committed to being open to business and responsive but that it constantly needs to market that message to US graphene firm chooses businesses.
“Businesses are bombarded with Manchester for European HQ messages everyday and it is easy to forget, so we have got to constantly BLUESTONE Global Tech, a New activity around graphene will prove refresh their minds and engage and York-based graphene manufacturer, to be a great example of Manchester’s reach out,” he says. is to open a European base at the ability to foster small R&D start- University of Manchester as part up businesses as they start to take The university does this through of a £5m collaborative research advantage of its huge potential. advertising, business focused events partnership. with partner organisations and has “It’s about keeping the ideas here recently launched its Kick-Start voucher The partnership will allow the and making the most of them in the scheme, which offers a £5,000 discount. university’s academics to work local environment – thats key to the closely on research projects with growth strategy,” he says. “It’s a scheme we devised ourselves Bluestone, with the aim of producing Professor Colin Bailey, dean of the where if the work we’d be doing is the next generation of graphene Faculty of Engineering and Physical valued at more than £10,000 we will applications. discount it by £5,000 – we hope it will Sciences, says: “It’s clear that their allow businesses to As well as providing graphene for decision is based on the wealth of dip their toe in the research projects, Bluestone will knowledge we have at the university, water with the aim of also open a pre-production facility with more than 100 scientists and working with them and offices at the university to work engineers working on graphene again in the future.” with “leading consumer companies”, and 2D materials. This partnership before setting up larger European will help in the commercialisation A Knowledge headquarters and a pilot production of graphene creating further jobs in Mark Ratcliffe Transfer Partnership plant in Manchester. Manchester which will be of benefit Manchester (KTP) is one of the to the UK economy.” Metropolitan most tried and Graphene was first isolated at the Bluestone’s chief executive Dr University tested schemes for University of Manchester by Andre businesses to work Geim and Kostya Novoselov in 2004, Chung Ping Lai says: “The increasing with a university. But Ratcliffe admits earning them the Nobel prize for demand for our materials and they can be big projects that are several Physics in 2010. expertise in Europe has prompted months in development and so are our decision to establish the expensive to run. Work has now begun on the £61m Bluestone Global Tech brand in National Graphene Institute (NGI), Europe with the setting up of its “Kick-start is much quicker, which is which will provide a centre for operation in the UK. why we introduced it, and also the industry and academics to work on funding for KTPs has been impacted in emerging graphene applications. The “The link with the University of the last two years,” he adds. deal with Bluestone marks the first Manchester and the National strategic partnership of the NGI. Graphene Institute is integral to “The breadth of what we do is so wide our strategy of working with and that is part of the problem of getting Bluestone, which has labs in our customers to bring products the message across. With business, law, New York and Taiwan, is leading and processes from the lab to the art, design, SME support, healthcare, the emerging graphene market, workplace. With our long-term aviation/transport – there is so much providing mass production of commitment and cooperation with going on so we try to present it in a way high-quality 2D materials to the University of Manchester, BGT that business can identify with – that’s enable the commercialisation of will have access to a critical mass of why KTPs and the Kickstart vouchers graphene-enhanced applications world-class research talent, facilities are an easy way to plug in.” such as advanced displays, flexible and resources and we are very electronics, energy storage materials, excited to be located at the home of The university also runs the prestigious and cosmetics. graphene.” and transformational Goldman Sachs 10,000 Small Businesses programme in Bluestone joins Graphene the North West, which is free for those Industries and 2D-Tech, businesses that successfully apply. the university spin-out Ratcliffe concludes: “We are aware companies supplying that universities can seem daunting to graphene and other 2D engage with. If you go to our website materials around the we have one number to call and one world. enquiry form that comes to a central Stephen Lintott, partner at place and we will do all the hard work law firm Pannone, says to find the right people for that business to work with.”
« Previous | Back to Contents | Next » Salford Uni to benefit from Santander partnership
THE University of Salford has signed a Santander Universities partnership agreement with banking network, which now group Santander, which will provide incorporates 67 UK funding for overseas scholarships and universities and more than support for student entrepreneurs. 1,000 academic institutions from Latin America, Asia and The partnership is worth more than Europe. In addition to financial £50,000 a year for the next three years support, membership of and will include 15 annual scholarships Santander Universities enabling students and researchers provides collaboration to study at partner institutions in the opportunities and encourages Santander Universities network in the interaction and partnerships Luis Juste, director of Santander Universities UK and abroad. between member institutions. UK, (left) signs the partnership agreement with Santander has donated an additional Professor Martin Hall, University of Salford vice- Luis Juste, director of £28,000 for the first year to go towards chancellor. Santander Universities a range of projects, including financing UK, says: “We are looking 10 Salford students to carry out UK and forward to working international internships with potential support our new strategy for the together in promoting international new business partners of local small future, and we are proud to be joining businesses. mobility, supporting enterprise and this growing community of UK and entrepreneurship and to be able to international universities. This will The scheme will also fund support for contribute to the university’s excellent facilitate important and exciting new student and staff entrepreneurship work within social business and the international opportunities for our and social business activities, such as local community.” students and our academic staff.” incubator spaces for the development of new business ideas and pitching events University vice-chancellor, Professor The agreement also involved the and competitions. Martin Hall, says: “The funding boost opening of a Santander Bank branch will enable a range of scholarships on the university’s Peel Park campus in Salford is the latest member of the and initiatives to come to fruition to September.
training programs for businesses Education providers boost already operating in the city centre. Hence, the more space they procure, serviced office take up the greater the demand they are in. THERE has been a notable increase business moving to serviced office “Training suppliers have also been in the size of serviced office space space compared to 2012, the amount establishing centres for businesses being rented by businesses in central of serviced office space rented in located outside central Manchester, Manchester, supporting the notion Manchester city centre has still taking advantage of the city’s good that confidence is finally on the increased 11% on last year. transport connections to provide an increase amongst businesses in the easily accessible training hub.” city region. The reasearchers say this is due to the increase in training and educational Manchester city centre has a large The average number of workstations suppliers moving to the area, who supply of serviced office space with rented per business increased from require both office as well as training 46 business centres, and this capacity 6.9 in the first seven months of 2012 to space. has meant that rental rates have 9 in the same period this year – a 30% remained stable. increase, according Chris Meredith, chief executive of officebroker.com, says: “Manchester’s to research figures In fact, the average rental rate was serviced office has seen positive from officebroker. £207 per workstation in 2013, a slight com. progress over the last 12 months, a lot of this has been due to the city’s reduction from the 2012 price of £213. This means burgeoning knowledge economy - in What’s more, the average tenancy that despite a particular it’s educational and training agreement increased from eight 15% decrease suppliers. Chris Meredith months in 2012 to 10 months this year in the number chief executive, of individual “Educational suppliers require an – yet more evidence of the increase in officebroker.com above average space to deliver business confidence.
« Previous | Back to Contents | Next » Investing in the Manchester City Region Baker Tilly has a long history with the Manchester region, the firm is fully committed to the city, its development and the organisations that operate within the Manchester City Region.
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The creative and MediaCity and The Sharp Project, together digital opportunity with other digital hubs in Greater Manchester, HE impressive looking MediaCity, owned by North West have had a Tproperty giant Peel, is home to the University of Salford’s digital game changing, learning, teaching and research space; 2,500 BBC staff across 26 catalytic effect departments including Children’s, Learning, Radio 5 live, Sport, Radio Manchester and Breakfast departments; and now ITV, which on the growth has moved 500 staff and rebuilt its Coronation Street set on site. of creative and
More than 130 companies are located at first full year it had created 375 full-time digital industries MediaCity, employing 6,000 people, and equivalent jobs. across the city it still has the capacity to expand several times over. Earlier this year, Manchester City region. Council set up a holding company for But it’s not just for big businesses The Sharp Project and two other related - MediaCity has become home to a schemes. It said the venture will act vibrant SME community, many of as a “mother brand” for Sharp, One which are housed within The Pie Central Park - bought by the council to Factory, the Greenhouse and in The accommodate 3D specialist Eon Reality Landing, with access to technology [see p26] - and the former Fujitsu base in Gorton, with the aim of creating to creative digital businesses that could platforms, usability test facilities and edit create up to 1,300 jobs over the next suites that would ordinarily be out of new employment and businesses opportunities. three years, according to the council. reach for small and micro businesses. The Fujitsu building is undergoing an The new, as yet unnamed, holding Meanwhile, the £16.5m Sharp Project, £8m makeover to turn it into a drama company will provide strategic launched in Newton Heath two production base. Work has begun and direction to the digital sector, harness years ago, is home to more than 50 although the official handover date the activities of a range of agencies digital entrepreneurs and production for the building is May 2014, the first involved in this sector, identify gaps companies. It is based in a 200,000 sq businesses will be in by February. in provision and bring forward new ft refurbished warehouse previously strategies to fill them. It will also be occupied by electronics company Sharp. The three sites will have more than responsible for managing the three Occupancy stands at 79.5% and by its 450,000 sq ft of floor space dedicated sites. ➔
« Previous | Back to Contents | Next » Sue Woodward, is rapidly changing,” says Sarah Kemp, A study carried out for the Northwest director of The executive director at MIDAS. Regional Development Agency in 2010, Sharp Project, is showed there to be 31,000 creative and clear that although She gives Chicago-based ThoughtWorks digital businesses in the North West, distinctly different, as an example of a strategic win that employing 320,000 people - with the Sharp and MediaCity initially only created 15 jobs when it Manchester City Region having an complement each based its data analytics and web-design estimated 60% share. However, these Sue other well, collaborate function in the city in 2011, but has seen figures have grown significantly Woodward effectively and adds a steady growth in job numbers ever since and don’t reflect the sectors director, The that together, they since and today employs around 30 expansion into areas such as digital Sharp Project are better than the staff in the city. health, financial technology and sports sum of the parts. technology. Graham Bond, northern head of media “MediaCity is a giant corporate entity. If and technology at Baker Tilly, says that MIDAS’ Kemp says: “A significant you are a big corporate then MediaCity supply services need to be part of the crossover into the ICT sector has meant is a no-brainer but if you want to be in ecosystem around a cluster like that at that digital and creative industries have a closer community then we are the MediaCity. enjoyed a double digit growth rate.” natural choice. “We have big power houses like the BBC She points to success “We are not anti-corporate but are and ITV but we need to ensure supply stories in the region counter corporate. The businesses at services are based there too - they need such as DRL , the Sharp have looked at MediaCity and to be real offices, not virtual ones. But owner of ao.com, decided it is not for them. We are an we are starting to see that happen,” he The Hut Group and entirely different offer and a counter says. Entertainment balance.” Magpie, all of which He adds that advisory firms have an are showing very MIDAS, Manchester’s inward important role to play when it comes to strong growth, Sarah Kemp investment agency, says its aim is to nurturing growth within the sector. which may not be executive attract new investment from overseas considered digital director, MIDAS “We can help to take the mindset and outside of Greater Manchester and or technology to support existing investors to build of a creative business and make it businesses by some. capacity and become increasingly commercial and business-focused, competitive on an international with an eye on rapid growth. Creative Many industries are seeing a blurring platform. individuals who have real talent often of the lines between traditional SIC need structure around them – that’s industry codes, with technology “That means being able to offer a where we come in. creeping in and impacting on so much choice of locations to suit all needs of what we all do. and budgets, to expose opportunities “We can help them think strategically, within the supply chain and support with a focus on the long term and an Paul Bason, director of Creative the development of skills in a sector that understanding how you create value.” Manchester and leading digital ➔
Salford Uni launches digital centre SALFORD Business School has Dr Marie Griffiths, centre director, Other organisations the centre is set up a research centre dedicated says: “Whether it’s social media, working with working with include to working with companies to electronic product tracking or The Big Issue In the North and the ensure they are making the most of internet retail, digital technologies and Frost Foundation, a charity that helps opportunities available through digital applications are no longer something local disadvantaged children. technologies. which businesses can ‘bolt on’ as an afterthought – they are absolutely Griffiths says: “The vast majority of The Centre for Digital Business, based crucial in ensuring they can operate businesses out there are smaller at MediaCity, brings together a team businesses. They don’t have social of academics who are internationally- efficiently and thrive in the current media resources – many don’t have recognised for research into the economic climate. any idea how to tweet – that’s our impact of the digital world on “Our current research projects cover business, society and culture. target audience and we are working a wide range of real business and with a few companies to embed a It aims to be a point of contact for local society issues. For example, we work social media strategy.” organisations looking to maximise the on a number of consultancies such as use of digital strategies, information with Tameside Council, where we are The centre also has a growing management, information security, helping to bring empty housing back reputation in its delivery of privacy, digital marketing and much into use by employing social media to commercial course that are derived more to remain competitive. engage with absentee homeowners.” from its degree courses.
« Previous | Back to Contents | Next » innovation at Manchester Metropolitan “Never before have we needed to be University, says it is no longer the case preparing young people for jobs and that digital technology just happens in skills that may not exist yet and for a computing departments. university, that raises some unique challenges,” he says. “There’s really a lot of interest across MMU for disciplines to work together “This means that students need to be and the unifying factor is often the good at some of the softer skills like digital technology. people management and being able to cope with change.” “Technologists often find that they need Creative and digital – people with creative ideas to collaborate The skills agenda is clearly a worry fast facts with. Similarly, people working in art to Sue Woodward: “Since the start of and design find they need expertise Sharp I’ve been saying we need to raise - Manchester’s ambition is to be a in web design or other aspects of the skill base for these areas - we are top 20 digital city by 2020. technology. Bringing together all these still in the race with the Far East and the different elements and adding creative rest of Europe, but only just. - There are 10,000 students in business thinking begins to reflect how digital and broadcasting studies real digital businesses work.” “The cities that invest the most in their across five universities in the skills base will accommodate that region. The university’s Digital Innovation growth. We can bring big companies in website was set up to reflect this. to Manchester but [in terms of skills] we - Manchester is the second largest are at bursting point - we are soaking hub for digital and creative in “It’s about cross-disciplinary work Europe, after London, with twice up the skill base already and there is a and Digital Innovation is a catalyst for the growth rate of anywhere gap in the market. this cross disciplinary work. It’s about else. education, research and business,” he adds. “We are still not retaining enough talent and are not acting fast enough to get a This technological revolution continues 12-year-old today skilled up by 18. We to manifest itself across the broad have to have an acceleration or parallel of 2013. Later this year, the company will launch the ANS Academy, which Fletcher says will provide opportunities for young people in Manchester to begin ‘Where we get strong sector convergence, a career in the IT industry. such as with digital and healthcare, Announced earlier this year, the new industries can be created and provide government has said that its re- designed curriculum for five to significant growth for the city.’ 14-year-olds, is designed to make the UK compete with the best education systems. based Greater Manchester economy, track. But how do we fill that gap in Fletcher identifies the introduction of with areas such as healthcare a huge the meantime for the six-year growth coding into the school syllabus as the opportunity for the city, both in terms of strategy?” strength of the new curriculum. e-health and m-health. The problem is not one just Manchester “This is something we Tim Newns, chief executive of MIDAS, faces but one for UK Plc, she adds. have campaigned for says: “Where we can get strong “In Estonia they teach code to kids over a long period of convergence between sectors such as time,” he says. digital industries and healthcare, new of seven or eight while Korea and Singapore are able to churn people out industries can be created which can Children as young with the requisite skills. We need a provide significant growth for the city. as five will be taught change at national government level – algorithms and the Scott Fletcher “We are already seeing this with not just a tinkering around the edges.” ability to design chairman and investments from Allscripts, an e-health Scott Fletcher, chairman and founder of simple programs. founder, ANS solutions specialist; and GSK with regard £50m turnover UK cloud infrastructure By the age of 11 they Group to the groundbreaking Salford Lung specialist ANS Group, shares the will be expected to Study project, the largest clinical real- sentiment. ‘design, use and evaluate computational world trial it has undertaken globally.” abstractions that model the state and “As an employer I find that time and behaviour of real-world problems and Being able to meet the needs of time again young people aren’t leaving physical systems’. employers from a workforce skills school with the basic social skills they perspective is crucial to fulfilling need to begin a career in a tech sector “We should also focus on typing skills the potential this sector has to boost and I know other employers think the from an early age. It is astonishing Manchester’s growth, but MMU’s Bason same.” how many high-grade programmers says matching the sector’s pace of continue to ply their trade with a change does bring new challenges for ANS employs 12 apprentices and plans ham-fisted, two finger technique,” says educators. to employ a further 32 over the course Fletcher.
« Previous | Back to Contents | Next » in Manchester, with individuals who are real thinkers in all sectors who combine to create an amazing talent core. 25 “This is particularly the case within ➔ the digital sector and in areas like The Northern Quarter and The Sharp Project, these are some of the jewels in Manchester’s crown, which all come together to create this melting pot of raw talent and digitally aware individuals who will have an important part to play in ‘Tomorrow’.
“Manchester is also home to fantastic companies such as Hyper Island who help to evolve these talented individuals, who come to Manchester from all over the world, and challenge the usual approach to find innovative and pioneering solutions for real and global companies across all sectors.
“The technology that Tomorrow brings will provide people with capabilities to do what is currently deemed as impossible, changing the way Top secret ‘Tomorrow Project’ moves closer
COLLABORATION of global Asia, but it came down to Europe and businesses use technology and taking companies is to base an English-speaking country. Capital them to the next level.” A cities were considered but in the end its European headquarters Manchester “ticked all the boxes”. Thirteen of the buildings involved in Manchester, bringing a are: The Hive, 47 Lever Street; 1 New groundbreaking technology to He says: “The clients have chosen York Street; Chancery Place; Orange, Manchester because it’s got MediaCity, the city. MediaCityUK; One First Street; The the science parks, and the universities. Peninsula Manchester; Riverside, New The talent here is one of the major drags. The consortium Bailey Street; 304 Bridgewater Place; behind the high-tech, “They’re not just opening a business but Towers, Manchester; Booths Park, top secret Tomorrow delivering a concept that will go to other Knutsford; Citylabs; 196 Deansgate; project has signed cities and they knew Manchester was a Manchester Science Park. 10-year leases on key city where they could start it off.” 180,000 sq ft at more Timms says: “We have approached than 20 locations. Atul Bansal, co-founder of interior location-mapping the Tomorrow Atul Bansal design practice the Sheila Bird Group, acquisitions the same way you would co-founder, Its technology is has worked on the project for the past a coffee franchise. Each of the buildings Sheila Bird described as being two years as the design director. has been carefully selected in areas Group able to “facilitate where there is a strong, critical mass He says: “It’s been an amazing and collaborative of occupiers and businesses. Having unusual project to work on, which has problem solving, new product/service one of the offerings only a short walk development and commercial innovation”. been really challenging. It is incredible to work with a client who is as brave from the workplace will maximise Andrew Timms, director at Edwards & and pioneering as this with the end accessibility and localism, enabling far Co, was appointed to acquire and advise result creating a shift in what we know more companies to benefit from this on the Manchester portfolio, as well as and how technology is currently used. technology.” handle a future roll out in London. “It is important to understand and Those involved were unable to give an He says his clients had looked at all appreciate the level of vibrant, indication of timescales for the project’s parts of the world, including South East commercial and digital talent that exists official launch.
« Previous | Back to Contents | Next » ➔ 26
Eon Reality sets up coding school for 3D future
ON Reality opened its employ will contribute to the footprint 15% from “edutainment”, such as the 3D Manchester base in March, that Manchester as a city wants to aquarium [pictured]. E grow,” he adds. promising to make the city the Swain says: “We have a focus on European centre for 3D content The coding school opened with a pilot of subjects that are difficult, such as the production. 12 students that ran from February to laws of physics, human anatomy and July and Eon Reality hired six of them to molecular structures in chemistry. The US company has set up its start in September. European headquarters at One Central “All these things are very difficult to Park, next to The Sharp Project in The company, which including the convey for the first time but if you Newton Heath, where it plans to take latest coding school recruits has 16 can turn it into interactive learning on 240 staff over the staff, develops 3D visuals to be used the concepts become much easier to next three years. as educational aids. It also works understand because you’re there and with industry using its technology seeing it. It’s about hands on immersive It has also established to train staff for work in dangerous engagement.” a free coding school which will train 100 young people a year for the next five ‘The centre is Eon Reality’s jewel in the crown Ken Swain years. - there are only two places in the world we can managing director, EON Managing director show this technology in action.’ Reality Ken Swain says the coding school is required because the area in which it operates is “so new and different”. environments, such as off-shore oil The firm has taken a 10-year lease on its rigs, and bring complex engineering premises at One Central Park. “We will grow the training school with concepts to life. 100 students a year and recruit at least “Here we have open space, parking, half year-on-year to get to that number. Around 50% of revenues come from the we are on public transport links with The trainees we produce but don’t education sector, 35% from industry and the new tram stop and have easy ➔
« Previous | Back to Contents | Next » we looked at the official policy of Manchester to be a top global digital city, that hooked our attention,” says Swain.
“When we looked at Sharp and MediaCity – its not just the companies that are there but the talent – that’s why it became an attractive place.
“The city was very helpful. We had contact with Sue Woodward at Sharp initially and then MIDAS came in as a facilitator for the city. It was instrumental in the logistics and introductions with companies that could potentially be customers for us. There was a synergy from all the key players. airport connections. We also have Eon Reality’ headquarters are in ultra high speed connectivity with 1GB California with a regional office in “Other cities we looked at did not have connectivity on The Loop. All these little Singapore for Asia. It started to look for a that same level of positive cooperation things mean a lot when you put them European headquarters in late 2011. and effort that is here. Everyone seemed together,” says Swain. to understand what we needed and our “We decided that an English speaking technology and the benefits of what we The centre has now been open for country was an advantage and when do.” six months and so far attracted 350 international visitors from 30 countries.
“The centre is Eon Reality’s jewel in the ‘The city was instrumental in the logistics crown - there are only two places in the and with introductions to potential world we can show this technology in action and demonstrate the art of what customer companies. There was a synergy is possible.” from all the key players.’
Reborn Cosgrove Hall returns to Manchester
THE resurrected Cosgrove Hall and there’s new talent because of “We’ll be putting £10m into the animation business has taken office MediaCity” says Hall. economy just from the production, space in Didsbury and is recruiting let alone licensing,” says Hall more than 40 creative staff. The original Cosgrove Hall, founded who has a joint venture with by Brian Cosgrove and Simon’s Macclesfield-based toy developer Cosgrove Hall father Mark, produced shows such as Carterbench. Fitzpatrick will be Wind in the Willows, Danger Mouse based from 5,000 and Count Duckula from studios in He adds: “Tax reliefs are 20% of the sq ft at Quorum Chorlton. budget and that means we can Estates’ The Towers, make shows in the UK. Without the converted They left in 2004 and it was shut that support we would have gone mansion at The down by its owner ITV in 2009, but to Ireland, India or Canada and that Simon Hall Towers Business two years later Irish entrepreneur would have been sad considering managing Park in Didsbury. Francis Fitzpatrick teamed up with we’ve got such great talent.” director, Cosgrove and Hall to launch the new Cosgrove Hall Its team will be business. working on a new cartoon commissioned by Channel Mark Hall died in December 2011 but 5 called Pip! but managing director Simon is now running the venture Simon Hall expects to take on a further with chief executive Adrian Wilkins 100 over the next 18 months as the and Mr Cosgrove is the creative business starts work on two more director. Sir David Jason, who voiced cartoons, HeroGliffix and Powwow Pando, for ITV. characters such as Danger Mouse, is also involved. He lends his voice to “Our traditional heart is in Manchester several new characters and sits on the and the creative talent is still here board.
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« Previous | Back to Contents | Next » 29 Round table
Power to the people
HE Manchester City Region The Chris Barry Tis well placed to capitalise editor, on the unrelenting globalisation TheBusinessDesk.com Attendees (chairman) of markets – something key to its future growth and Sir Howard Bernstein Baron Frankal development. chief executive, director of economic Manchester City Council strategy, New Economy But there is a risk that the full potential of that opportunity might not be realised - due to a lack of local decision-making Mike Blackburn Gary Houghton power and resource. regional director of BT partner, and chair of the Greater Baker Tilly That was the resounding view Manchester Local of the business and civic leaders, Enterprise Partnership economists and advisers who attended TheBusinessDesk.com’s roundtable Rowena Burns Mike Rose chief executive, regional director discussion, hosted at MediaCity. Manchester Science North West, Sir Howard Bernstein, chief executive, Parks Santander Corporate & Manchester City Council, said the rate of Commercial Manchester’s growth over the last five Stephen Chalcraft Jo Phipson to 10 years has been in part down to the head of regeneration deputy regional increasing globalisation of markets. and infrastructure, director North West, Pannone Santander Corporate & “To find your way in that world you Commercial have to be smarter and that plays Lou Cordwell Paul Simpson to Manchester’s inherent strengths, founder and managing director, Visit such as how we place universities at chief executive, Manchester the heart of that internationalisation magneticNorth agenda – what it means for bio/life sciences, graphene and digital. These are Simon Swan unique opportunities for Manchester Phil Cusack co-founder and director, regional director Hiring-Hub.com that other places can probably identify AECOM and president, as strengths but they don’t have the Greater Manchester leadership – sectorally and wider Chamber of Commerce leadership and innovation – that we have here.” ➔
« Previous | Back to Contents | Next » Rowena Burns, chief executive of around my sector are healthy. But look Manchester Science Parks, pointed to where entrepreneurs come from – they what she called Manchester’s “special often come from bigger firms to learn ops” - what Manchester does best. their trade, so if you bring more larger companies here the entrepreneurs will “That’s bringing key players, nationally follow,” he said. and regionally, together as we did post bomb and at the Commonwealth Mike Rose, regional director North West, Games,” she said. Santander Corporate & Commercial, Whilst an international strategy said: “As a banking sector group, lending for growth is vital, grass roots should be the straightforward part; entrepreneurs - those who create a it’s the day-to-day support that many city’s pipeline of growth businesses for businesses I speak to say is missing the future – should not be forgotten. from their banking teams – how can we rebuild trust and respect if we can’t Gary Houghton, partner, Baker Tilly, talk to our customers? We also need said: “We also need a strategy to to be providing much more support to “Certainly [there is a need] for encourage the region’s entrepreneurs our local entrepreneurs by using our institutions like Manchester College to and I think they have been relatively networks to support connectivity that get involved and joining up secondary quiet over the last few years.” will ultimately lead to business solutions.” education with businesses in the city is Sir Howard admitted that recently Phil Cusack, regional director AECOM very important to ensure students in perhaps there had been less public sector and president, Greater Manchester the city benefit from those high value support for entrepreneurs but added that Chamber of Commerce, agreed, adding: jobs,” she continued. “there are good programmes and loan “There is definitely potential for the schemes” – pointing to work the council Baron Frankal, director of economic Chamber to work with the banks to has done with Santander, for example. strategy for New Economy, said all help that happen. The people helping to these interventions are “relatively fund start-ups should be working hand Entrepreneur Simon Swan, who marginal”, with skills the most critical in hand with the people who support co-founded online recruitment factor. marketplace Hiring-Hub.com, said both these businesses.” cash and support are available. “A huge and fundamental barrier - in Burns said much of it comes down to common with most other cities - are “We have had reasonably good support linking the many networks that already the skills of the resident population, from banks and networking groups exist. which are poor... And they are certainly not skills we will need for 20/25 years time. ‘If we want to connect things up at “All this is regulated from the centre. But a place level there is nowhere better than if we wanted to connect things up at a with skills.’ place level there is nowhere better than with skills,” he said. ➔
➔ The round table attendees
« Previous | Back to Contents | Next » “In Germany 18% of all spending in increases then the underlying cause to locality is determined from the centre. spend more equally increases.” In France, which is much more centralised, its 32%. In the UK 72% of all In November 2012 there were 60,980 decisions are made in Whitehall. We residents in Manchester claiming out don’t really have the tools at our disposal of work benefits compared, compared to follow through.” to 58,140 in May 2008 at the beginning of the economic downturn, according Sir Howard added: “Four years ago, before to this year’s State of the City report. we all jumped off a cliff, £21bn of public Reductions in the number of residents sector money was being spent in Greater claiming Employment Support Manchester. Local government spend Allowance and Income Support has been reduced dramatically but how have been offset by an increase in much was spend in total last year? You’ve the number of residents claiming got it - £21bn. Except we’ve moved from Jobseeker’s Allowance. Long term investing in growth and infrastructure unemployment has risen since 2009. but now are spending on dependency He added that AGMA had pushed this and failure as levels of benefits have agenda about as far as it could with the increased significantly... As dependency Sir Howard quickly added that despite current government, adding that “too successive governments’ narrative many still don’t get local government” around devolution and localism, the UK and it therefore it needs to be a debate “remains one of the most centralised driven around places and led or systems of government to be found articulated by business. anywhere in the world”. Mike Blackburn, regional director of BT The need for growth has never been and chair of the Greater Manchester greater, he said, and the UK should be Local Enterprise Partnership, said a moving towards a more consistent lot of the proposals in the Heseltine place based approach. review into economic growth are transformational. “The government shows signs at times of getting there but there is “Rather than risk it, in a business you’d no consistency to deliver it,” he said , take an island and try it there and then adding there is a fundamental belief in roll it out. I think Manchester is that Whitehall that you manage economic experiment without it being called that,” growth and change from the centre. he said.
The great HS2 debate: it’s capacity, stupid DESPITE the £40bn+ cost and the fact then this is not important or desirable “Like it or not we are dependent on that the proposed link won’t reach but critical.” central government and it has got to the North West until the 2030s, get better at delivering this stuff,” he ‘yes’ campaigners argue that the Sir Howard Bernstein, chief executive said. investment is essential for the future of Manchester City Council, added: “If prosperity of the region as it will ease you stand at the railway station at But perhaps more disturbing is capacity constraints on the West Coast Milton Keynes or Watford you get an the bias often suffered when it mainline, while the slash to London idea about how constrained capacity comes to getting the green light for journey times to 80 minutes is “the is now. Fundamentally it’s about how infrastructure investment in the north. icing on the cake”. we need another railway line.” “When people talked about Crossrail, The proposed route of HS2 Phase Two Yet the ongoing debate that was there a major debate in the will see a Y-shaped link to Manchester surrounds it says a lot about how country about expenditure and in the West and Leeds in the East. we debate things in this country and investment?” asked Sir Howard, while demonstrates how appallingly badly Frankal added that we all have to wait Phil Cusack, president of Greater we organise things at a national level, for Crossrail to be completed before Manchester Chamber of Commerce, according to Sir Howard. work on HS2 will commence. who admitted to being “astounded” by the Institute of Director’s negative Stephen Chalcraft, head of “Why is it being built from London position on the matter, hit the nail regeneration and infrastructure up and not at both ends? If it is the on the head when he said: “It should at law firm Pannone, echoed the right thing to do – and for us it is an never have been called High Speed sentiment that the UK as a country economic no brainer – why delay? 2 – it should have been High Capacity is not good at delivering key The longer the delay the more chance 2.... If we are planning a decade ahead infrastructure projects. it won’t happen,” added Frankal.
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