Levelling Up : The case for innovation in towns January 2021 Contents

1. Introduction 3

2. A boomtown of the 5

3. Rochdale today 7

4. Levelling up 15

5. Conclusion 23 Foreword

The UK government is committed to future growth and prosperity. Rochdale’s a “levelling up” agenda, to reduce manufacturers are engaged in the North West the substantial disparity in income per Made Smarter programme to support this. head and productivity between London Further, Advanced Manufacturing Innovation and the South East and much of the Districts in the satellite town of cities should rest of the UK. bring together facilities for translational research, diffusion of innovation and the This is a challenging task. There is a history development of skills, attracting inward of regional policies stretching back many investment from international firms at the decades, most of which have had little technology frontier. impact. Metrodynamics establish in this report that To be successful, innovation and Rochdale is “ahead of the game”. Innovation productivity increases have to be in how to innovate has already been taking generated, to use the jargon of economics, place and this is the perfect time to build endogenously. The new innovations have on that. The Advanced Machinery and to lead to new companies and new Productivity Institute (AMPI), the topic of this industries, that create jobs and prosperity. think piece by Metrodynamics, is a major Government has a key role in terms of example of this thinking. co-investment. But these cannot be “top down”. The areas in which they are located Rochdale and AMPI have responded to must create the demand and partner with the Government’s Research & Development Government and industry to generate Roadmap which seeks to take greater sustained, on-going development. account of place-based outcomes. The idea was first put forward three years ago by Boroughs like Rochdale need to innovate in local high-tech manufacturing companies. how innovate. New models of innovation It arose from a perceived need by them for based local economic development are innovation. needed. With most innovation coming from the As the NESTA report in 2020 “The Missing private sector, public sector funding must £4 billion: making R&D work for the whole be spent in a way that stimulates activity by UK” argues, new institutions need to be set the private sector. Given the way AMPI has up to create new poles for innovation and come about, created through a strong productivity growth, attracting new private market demand – it provides a unique sector investment as well as supporting opportunity to deliver against the 2.4% existing businesses. target of GDP being spent on R&D by 2027. The adoption of technologies that support automation and other smart technologies will play a crucial role in securing the UK’s

1 It forms a key part of the strategy of Greater The place ecosystem is well-developed ’s Graphene, Advanced through Rochdale Development Agency, Materials and Manufacturing Alliance Rochdale Council, local Combined (GAMMA) to develop a major, international Authorities, and the National Physical site for high technology manufacturing Laboratory (NPL) working together with businesses in the Northern part of the industry and national partners. Greater Manchester region, along the The innovation ecosystem exists. There is a M62 motorway through Rochdale. demand from companies within Rochdale The plans also align with the ambitions itself for high technology in manufacturing of West Yorkshire to create a technology and materials, and also from not only the corridor along the M62. AMPI’s location in rest of Greater Manchester but the West Rochdale, at the intersection of Greater Riding of Yorkshire. Manchester and West Yorkshire, between The Borough of Rochdale has fostered the cities of and Manchester means collaboration between researchers, industry it is ideally located. and civic leaders to create something that Several large bids are already in place to will deliver local and national economic provide initial finance. Active collaboration benefit and improved quality of life. has been developed between the The missing link has been the lack of an borough’s Further Education college, innovation district. There has been no Hopwood Hall, a local training provider recognisable innovation district in which the Rochdale Training Association, AMPI and the private sector, academia, entrepreneurs Rochdale Development Agency to ensure can assemble to share ideas. The physical that the skills which will be needed are location for AMPI is available, the first acquired by the students in appropriately part of the visionary Northern Gateway designed courses. development of GAMMA and the Greater The recent Place Matters report by Manchester Combined Authority. Metrodynamics uses a model to measure In short, AMPI is a crucial intervention at and increase the potential for innovation exactly this time and is ready to go. It in a place, which is called the ‘Power offers not just a vision, but increasingly a of Three’. The ‘Power of Three’ model practical example to other boroughs in the argues that for any place to have successful more deprived parts of the UK of how to innovation, it must have in place an “innovate in innovation and productivity”. innovation district, an innovation ecosystem, and a wider place ecosystem. The three are I am delighted to support this initiative and mutually dependent upon one another for commend the report by Metrodynamics innovation to thrive. on AMPI. Juergen Maier, Former CEO of Siemens UK & Co-Chair of Made Smarter UK.

2 1. Introduction

Responding and recovering from The levelling up agenda has been driven COVID-19 is a main priority for central by deprivation statistics and the so- and local government. Alongside called ‘red-wall’, exemplified through the recovery, economic development Town Investment Plans currently being policy making continues, covering developed by 101 of ’s more areas of innovation, clean growth, deprived places. Several Town Investment Plans have been made public, however and towns. only a handful have made innovation We have seen a big government push their centrepiece and even fewer have for greater investment in innovation, concrete proposals to deliver highly skilled committing to increasing the percentage green jobs in clean industries. of GDP spent on R&D from 1.7% to 2.4% We need to think more creatively about by 2027. how to combine these agendas. A In the run up to the COP26 climate report published earlier this year by Metro summit in Glasgow, the Prime Minister Dynamics, ‘Place Matters: innovation outlined a Ten Point Plan for a ‘Green and growth in the UK’, looked at the UK Industrial Revolution’ to produce 250,000 productivity puzzle and the current state highly skilled green jobs. Finally, as part of innovation. It argued that while some of levelling up ambitions to address places in the UK are innovation rich and inequalities and disparity between the driving the future of the British economy, country’s best and worst performing there is a stark imbalance of innovation in places, £1.6 billion was allocated to the towns and cities across the country. Stronger Towns Fund. In the first industrial revolution towns like These are three sensible and promising Rochdale, Burnley, Huddersfield, and agendas, but they are often seen as Smethwick led the way, but in recent separate. Academic excellence and times they have often been neglected existing infrastructure tend to dictate within innovation policy and investment where investment in public research plans. But they were, and remain, goes. It is the already successful manufacturing hives of activity. In a innovation hotspots, the so-called time where the UK faces the concurrent ‘golden triangle’ of London, Oxford, challenges of Brexit, COVID-19 and and Cambridge, alongside our biggest climate change, there is immense cities and university towns which are the opportunity to invest in industry and beneficiaries of investment. Research reposition Britain as a global force in excellence is naturally rewarded, and manufacturing and machinery. the cycle remains unbroken.

3 For towns (and cities) to thrive in a post- We look at Rochdale, a town with a COVID ‘Global Britain’, we need to reputation for 19th century industrial unlock the innovation potential of these innovation but now more known for its social and economic challenges. We places once more and create multiple explore how innovation could be part of powerhouses of manufacturing and the answer to Rochdale’s future, centered technology. We have seen what can around a new proposition that is being happen when this works – so what is developed there AMPI. holding them back? This concludes with the wider impact of this proposal, asking the question – Can In this report, Metro Dynamics, Rochdale provide the blueprint for a commissioned by the Rochdale resurgence of innovation in towns? Development Agency in collaboration with the Advanced Machinery and Productivity Institute (AMPI), think about this in more detail.

Figure 1. Overview map of AMPI.

4 2. A BOOMTOWN OF THE INDUSTRIAL REVOLUTION

It was not the cotton or wool that made Rochdale and Manchester rich – it was the way it was spun in the mills. The micro- innovations developed in machinery made the North-West more productive at spinning and weaving. Clustering catalysed innovation, centralising industry in one place, resulting in thriving towns and cities.

Nevertheless, success often breeds complacency and we saw this across Britain, especially in places like Rochdale throughout Rochdale thrived in the first industrial the 19th and 20th centuries. Whilst the rest revolution, and prior to that, as a wealthy of the world invested in areas such as skills, market town trading primarily in woollen education, and machinery in a bid to catch- goods. While historical accounts cite up with Britain’s industrial success, Britain factors of geography, access to raw hesitated. Before long, it was British industry material, capital, and labour supply playing catch-up having ‘missed out’ on the as reasons for Rochdale’s industrial second industrial revolution. Britain’s industry success, these are perhaps only was still growing, but much slower than partial explanations. before. Innovation was still occurring, but less frequent than before.

More recently, a third industrial revolution has occurred – the digitisation of manufacturing. We have witnessed a similar pattern emerge of an inability of British industry to internalise the benefits of economic growth coupled with scientific advancement. When other nations were utilising digital technology to transform their infrastructure, Britain continued to rely on older machinery. We are still making “It was not the cotton or wool the same mistakes. that made Rochdale and Rochdale is an example of a town we Manchester rich - it was the typically see described in this way. But this is an way it was spun in the mills. oversimplification. Manufacturing in Rochdale accounts for 14% of total employment – the ” second largest sector in the town.

5 This lasting industrial legacy has provided revolution, operating in machinery, printing, a solid foundation for manufacturing and textiles. This legacy continues and they and advanced machinery in Rochdale remain open for business today. today, a by-product of historical success The advanced machinery sector has which continues to play a vital role in the emerged as a particular local strength, economy. Agglomeration and industry one with huge potential; its role within the links remain across the North, particularly broader industrial ecosystem underpins between regions with similar industrial almost everything we do today. As we shift heritage, continuing to nurture focus to the fourth industrial revolution – ideas and innovation. Industry 4.0 – Britain and places like Rochdale There are businesses situated in Rochdale can be on the front foot to take advantage which provide robust evidence of this. PTG of the opportunities it brings and once again Holroyd, Jones & Brook Ltd, British Millerain be the driving forces of industrial change. were all founded during the first industrial

6 3. ROCHDALE TODAY

Despite the industrial legacy and The advanced the strong manufacturing presence, machinery sector Rochdale in 2021 is not the booming town it once was in the first industrial As indicated in Figure 2, advanced revolution. Rochdale’s economy is machinery acts as the support system one of the least economically complex underpinning many disciplines, from parts of Greater Manchester , business mechanical engineering to artificial intelligence, all of which are crucial to growth is slow and GVA per head is 41% the national economy. Embedded within lower than the Greater this is machine tools – the method in which Manchester average. machinery and systems for all applications Whilst Rochdale’s challenges are well- are built. documented, its strengths are often Take a moment to consider the strategies disregarded or hidden to those unfamiliar and conversations around the future with the area or history. As a result, this is of the UK economy. The industries and a place where policymaking focuses on opportunities regularly discussed are clean reacting to underperformance, rather energy, infrastructure, transport, robotics, than realising potential. all of which underpin government strategy. The business base within Rochdale’s Automobiles, satellites, telecommunications, advanced machinery sector is a driving buildings, they all rely on the manufacture force of innovative manufacturing. of highly capable machinery. Advanced Manufacturing contributes £562m total machinery is the foundation from which GVA to the town, amounting to almost these products and services are derived. It is a fifth of Rochdale’s overall economy. the industry the UK economy will be relying Entrepreneurship is good - per capita on to be at the forefront of industry 4.0. Rochdale outperforms neighbouring towns on patents , driven primarily by its industrial private sector.

The legacy of manufacturing in Rochdale The business base within provided the foundation for advanced “ Rochdale’s advanced machinery to prosper. This industry is now machinery sector is a a crucial factor influencing future growth driving force of innovative potential of the town and the wider manufacturing. region’s economy. ”

7 Figure 2. Advanced Machinery, the foundation of all precise manufacturing technology.

The UK stands as the 9th largest must prepare for next generation industry. manufacturer in the world by output and To further emphasise how important responsible for approximately 3% of global machinery is to the national economy, trade in machinery. There is room to grow we can analyse UK trade figures. In 2019, this. The integration of automation and machinery and transport equipment was robotics is no longer on the horizon, it is vastly the largest exported commodity happening now. In 2019/20, the UK installed (£142bn – Figure 3). It was a similar story in ten times fewer robots than and 2018 and continues to be the case in the ranks outside the top 20 countries in robots most up-to-date figures from 2020. per 10,000 manufacturing employees. The UK

8 It is also proving to be a resilient sector. focal point of an industry, Rochdale is playing Despite the impact of COVID-19 and the a pivotal role in helping Britain reach the patterns of decline, UK machinery exports fourth industrial revolution. have shown widespread recovery towards However, the readiness of businesses across the end of 2020. With the Export Growth Plan the region varies. Several companies in announced by government in October 2020, Rochdale are already part this revolution, advanced machinery is not only important while other manufacturing firms lag in the transition to Industry 4.0, but crucial to behind. However, this still represents a COVID-19 recovery. But this will not happen great opportunity. In communications, the automatically. The manufacturing sector development of the mobile phone meant needs the tools to make this a success. many third world countries leapfrogged The role of Rochdale the landline phase of the 20th century and moved straight into 21st century technology. Rochdale is at the centre of this industry in Industry in Rochdale is not burdened by the UK. The relationships formed by the recent, expensive investment in technology private sector in recent years means the that is becoming rapidly outdated. It town now acts as a bridge, linking the Greater can instead move directly to advanced Manchester and West Yorkshire industries via technology, leapfrogging older processes. an advanced machinery network. As the

Figure 3. Largest export commodities of the United Kingdom in 2019.

Largest export commodities of the United Kingdom in 2019 (value of exports in billions GBP)

Machinery and transport equipment 142.87

Chemicals 57.64

Miscellaneous manufactures 55.14

Fuels 36.32

Material manufactures 32.99

Food and live animals 16.05

Unspecified goods 15.54

Beverages and tobacco 8.23

Crude materials 7.18

Animal, vegetable oils and fats 0.52

12 13

CR Solutions is an SME supplying robotic and automated solutions to blue chip aircraft and aero engine manufacturers, automotive manufacturers, and the life sciences industry. Founded in 1995 and based in Rochdale, the company build specialist machines spanning simple single axis indexing to large multi-axis systems with high level control and management systems. Their solutions have evolved from a national client base, to now deploying to companies across the world.

Farrel employ 178 people at their base in Rochdale, producing continuous mixing systems for the polymer processing industry. Producing specialist machinery for the rubber industry, many of Farrel’s customers are international tyre manufacturers, technical textiles and businesses working with plastics.

Testometric is a company based in Rochdale that has been involved in the design and manufacture of testing machines and quality control equipment since its foundation in 1970. Forty years of continuing development has resulted in a main product line of universal strength testing machines for tension, compression, flexure, shear, and product testing. Testometric machines are used in over 100 countries worldwide with Testometric Intrusion machines used by Formula One racing teams.

Based in Rochdale, PTG Holroyd Precision is one of the international market leaders in high-precision, special- purpose machine tool design and construction. Their products include control software development, machine automation and equipment production. The company makes grinding and milling machines for production of compressor rotors, helical pump and vacuum spindles, and high-precision gears, alongside advanced Friction Stir Welding (FSW) machines for high-integrity welding of assemblies. The company employs 164 people, exports 95% of its products, and has a turnover of £87m.

11 The potential of Rochdale’s advanced machinery sector is frequently unrecognised. We spoke to many companies, councils and institutions involved in this area over the past few months and a consistent theme emerged – the idea that Rochdale has learned “to go it alone” after experiencing limited public sector support.

Into this space has stepped a broad coalition of the private sector, supported by national partners, who in the past few years have established a credible idea to capitalise on Rochdale’s past and current strengths.

15 A wider innovation ecosystem

Rochdale has an advantage over the Greater Manchester Graphene, many other towns in the country – its Advanced Materials and Manufacturing location and linkages. Rochdale is Alliance (GAMMA), is establishing a city- sandwiched between two established region strategy to address gaps in the innovation ecosystems, both with clusters commercialisation and adoption of of nationally important institutions and graphene, advanced materials, and biotechnologies. This aims to support businesses. the wider development of advanced As one of the ten local authorities within manufacturing and materials sites, ensuring the Greater Manchester Combined the technical skills are available across the Authority (GMCA), it benefits from devolved city-region and new technologies are easily governance and funding. Located at the accessible to enable greater innovation. crossroads of Lancashire, West Yorkshire, Through collaboration with local and and Greater Manchester, it has connections national assets, such as the University of into a much wider innovation ecosystem. Cambridge’s Graphene Centre and NPL’s This reach will widen further as transport National Graphene Metrology Centre, infrastructure improves. The construction of GAMMA looks to coordinate a response to Northern Powerhouse rail will better connect the barriers hindering advanced materials Greater Manchester and Yorkshire, with commercialisation. Rochdale the link between the two regions, West Yorkshire Combined Authority (WYCA) while HS2 will bring Rochdale closer to have also placed innovation at the London and Birmingham. heart of their strategy with an Innovation Already at the forefront of innovation and Framework focused on supporting leading high-skilled job creation, driven by the four businesses and a greater diffusion of ideas pillars of its Local Industrial Strategy, Greater and technology. This continues a history of Manchester provides a strong ecosystem for rich innovation in textiles from the industrial innovation success. The Greater Manchester revolution to present day. West Yorkshire and Independent Prosperity Review highlights Greater Manchester represent almost 20% the strengths in manufacturing, digital and of the entire industry and are major hubs for creative industries, telecommunications, and R&D in textile innovation. health innovation. These manufacturing firms The University of Huddersfield is heavily are recognised as being more productive involved in providing innovation services for in Greater Manchester than elsewhere in business and is a leading European research the UK. This is perhaps unsurprising given the hub in Metrology, while the University of assortment of innovation infrastructure across Leeds boasts expertise in robotics and Manchester. The city looks to develop engineering. Elsewhere, the 3M Buckley this, considering innovation districts at ID Innovation Centre in Huddersfield is firmly Manchester, the Northern Gateway, and recognised for its work in assisting businesses Wythenshawe Hospital. Building on its local in innovating by providing tailored access to research excellence in advanced materials, knowledge, support, and technology.

16 Location has always been recognised as • Innovation ecosystem: there are great an important factor in determining the businesses with strong roots and a success of innovation within a place, most reputation for making things such as notably by US academic Michael Porter’s PTG Holroyd and Fives Landis. There is ‘Cluster Theory’ . Rochdale’s location is of also a wider advanced manufacturing course important in linking the town into and advanced materials ecosystem: Craftsman Tools, INX, Colchester tools, a wider ecosystem; however, innovation Wayland Additive, Addisol. However, relies on much more than simply having there is a disconnect across the regions, research assets or businesses close stifling productivity and innovation. together. It is a combination of factors – an innovation district hosting a base • Place ecosystem: well-developed knowledge engine, access to finance and through Rochdale Council, the IP, physical space and supported wider Combined Authority, Rochdale networks and linkages. Development Agency, and the National Physical Laboratory (NPL) working together with industry and national The power of three partners. NPL’s Strength in Places bid for AMPI are bringing together new The Metro Dynamics ‘Place Matters’ coalitions of the public, private and third report uses a model to measure sector parties, enabling a more impact- and increase the potential for led and inclusive future for Rochdale. innovation in a place. We call this The ‘power of three’ model suggests that the ‘Power of Three’. for Rochdale to successfully develop real This model argues that for any place to innovation and for industry to deliver the have successful innovation, it must have fourth industrial revolution, there needs in place an innovation district, an to be a concerted effort to strengthen innovation ecosystem, and a wider the innovation ecosystem and establish a place ecosystem. The three are mutually physical location – such as a Fraunhofer dependent upon one another for institute – as the epicentre of the town’s innovation to thrive. innovation activity.

We can use this model to better This was supported in our interviews with understand the current state of local stakeholders. Many mentioned that innovation in Rochdale: SMEs require greater and more sustained access to facilities, expertise, equipment, • Innovation district: there is no and talent. They cited an anchor recognisable centralised innovation institution as the missing piece of the district in which the private sector, puzzle to bring leadership, research, and academia, entrepreneurs can assemble to share ideas. advice together in one place.

17 4. Levelling up

Creating an innovation machinery innovation and increase the performance of the UK in the international district with AMPI market. On 15th November 2017, a group of senior Led by Dr Tony Bannan, Chief Exec of representatives from the UK Advanced PTG Limited and Dr Paul Shore, Head of Machinery sector met for a ‘futures Engineering at NPL, a location for AMPI was workshop’. Participants reviewed the identified in Rochdale. Based in the town, Industrial Digitisation “Made Smarter” report, it will capitalise on the strong link between discussing the necessary actions to instigate Greater Manchester and West Yorkshire growth across the UK advanced machinery industries, enabling greater collaboration, sector, capitalising on the fact that business growth and skills accumulation machinery is one of the primary exported across manufacturing. products of the UK. It must be appreciated that this initiative The challenges facing advanced machinery has been forged by the private sector were reviewed in detail, highlighting responding to challenges faced across the absence of a comprehensive an entire industry. It demonstrates an manufacturing supply chain undertaking awareness of the strong demand in the research or modern technology adoption; area for new, advanced technology in difficulties faced by businesses in finding the manufacturing. necessary skills in engineering due to the lack of specific educational programmes or dedicated research facilities; and an underdeveloped international footprint.

The meeting had an important output: the concept for an Advanced Machinery AMPI will be a pivotal UK and Productivity Institute (AMPI) to address “ intervention. It fulfils a presently these industry-wide challenges and position unaddressed, yet critical aspect, the UK at the heart of the fourth industrial of the UK’s manufacturing innovation revolution. infrastructure, complementing This was the beginning of a local industry-led rather than competing with existing response to the lack of public investment in investments and assets. advanced machinery. AMPI was designed to act as the focal point for advanced ”

15 Figure 4. Artists impression of what the AMPI institute could look like in Rochdale.

Developed and supported by industry business growth, and encouraging the leading businesses, AMPI is inspired by creation of new, optimised technologies to international examples of machinery strengthen supply chains with specialised innovation from institutions like Spain’s machinery. Tekniker, Singapore’s Institute of This will provide SMEs the opportunity to Manufacturing Technology and Germany’s access the same type of R&D facilities Fraunhofer Institute. bigger businesses have in-house, addressing AMPI plans to deliver applied and the gap Catapults have been unable to fill. translational research via a series of With a well-supported SME network, AMPI development programmes. These has the potential to act as a viable option programmes are designed to stimulate for larger companies, like BAE Systems, to and support rapid growth of the UK’s source UK-built advanced machinery. advanced machinery and manufacturing In addition, AMPI will focus resources on sector as it transitions to digital solutions and providing services that unlock the industrial autonomous robotic systems. Its specific potential of emerging sectors, developing goals are aimed at strengthening supply product enhancements, and incorporating chains, creating high value jobs, and new materials (e.g., graphene, composites). growing the sector locally, nationally, and AMPI will work with institutions like the High internationally. Value Manufacturing Catapults, GAMMA, ” It will have a strong emphasis on SMEs, Manufacturing Technologies Association, enhancing skills capabilities, generating and the Royal Academy of Engineering.

16 Over the past three years AMPI has transformed into a well-developed transformational proposal, backed by a prominent consortium of public and private sector led institutions. This culminated in a Strength in Places Fund submission, demonstrating the shift from a concept into a proposition ready for implementation.

Through the strong partnerships already developed through the creation of AMPI, Rochdale will deliver a sustainable programme of innovation and skills directly benefitting its own economy and that of UK industry export. It will fulfil a presently unaddressed yet critical aspect of the UK’s manufacturing innovation infrastructure, helping industry to incorporate innovation into existing investments and centres for demonstration and exploitation. It aligns succinctly with wider advanced manufacturing plans in the Greater Manchester region, building on advanced materials and existing research strengths.

Figure 5. Public & private sector consortium supporting the development of AMPI.

20 Transformative potential for Rochdale

As government priorities shift towards AMPI is not about creating a building greater investment in towns to reduce that innovates in isolation, but instead, regional inequality, there is not yet an anchor institution for an entire industry an exemplar to showcase how towns within a wider innovation ecosystem. should transform their local economy. Innovation will be encouraged to spillover outside of AMPI, leaking knowledge and AMPI represents a first step towards skills into the surrounding geographies. AMPI addressing long-term social issues, focused will play an important role in the creation on raising business’s productivity, improving of a major innovation district, the Northern skills and labour diversity, and increasing Gateway, situated mainly in Rochdale but the number of high value jobs. The provision also extending into Bury. of innovation space and a sustainable innovation programme looks to kickstart As an anchor institution, AMPI aims to link new skills production and enhance the up local and regional industry strengths existing talent pool. These skills will not more effectively. Greater Manchester is only be beneficial for Rochdale, but the home to a key part of Britain’s advanced manufacturing industry in wider regions. materials industry, but its growth is limited due to insufficient access to skills or Looking back to the ‘Power of three’, AMPI adoption in technology. AMPI has been has potential to form a new innovation developed as a response to the needs district supported by a larger ecosystem of of industry, with a view of creating the innovative companies. It looks to create next generation of machinery in robotics, new links by joining up existing innovation metrology, and advanced materials. infrastructures across the wider regions under a common industry.

An innovation district can bring real, transformative benefits to a place. Acknowledging this, AMPI has set itself ambitious targets as a national institute. “AMPI seeks to create the This includes quadrupling the size of the new machines, technology UK advanced machinery sector, creating and people needed to 20,000 jobs, bringing the industry to the manufacture tomorrow’s same level as Switzerland. It looks to products and materials. address the scarcity of robotics in UK industry, stimulating growth in industrial robotics manufacturing output to £1 billion ” per annum, creating 5,000 jobs .

18 AMPI’s focus on machinery provides companies in areas like biomaterials, optics, technical textiles, and polymers, the necessary support in developing and adopting new technology. It will support a core part of industry across Greater Manchester, aligning with GAMMAs work on advanced materials and GMCA plans for new advanced manufacturing innovation parks. Rochdale is at the centre of an exciting innovation ecosystem.

As part of AMPI’s Strength in Places bid, a delivering this industry-led demand. local economic assessment was required With SMEs a primary target under the remit to demonstrate the impact, outputs, of AMPI, they too must be included in the and outcomes of AMPI (figure 6). This skills conversation, aligning the institute with assessment outlines the benefits the industry needs. To achieve a wider, cohesive institute can bring to people, the supply innovation ecosystem, both educational and chain, regionally and nationally. innovation programmes must be designed To achieve the impacts set out below, for specific business requirements. AMPI must carefully align itself with local By ensuring initial success in reaching out education providers to ensure they and engaging with businesses, a greater reach the right people to deliver skills number across the supply chain can then in a consistent approach. This way, the access the new technology, facilities, proposed GVA outcome will be achievable investment, and skills through AMPI. In doing and bring real change to a town that needs so, the advanced machinery sector will it. AMPI is already involved in discussion be empowered to increase production, with the local Further Education College, undertake exciting innovation, and unlock Hopwood Hall, about the future demand for greater market opportunities that improves skills and how the college can participate in British manufacturing.

19 Figure 6. Expected impacts from AMPI identified in Rochdale’s Strength in Places bid.

20 The big picture There is a wider impact of AMPI to The M62 is becoming an increasingly interesting proposition for manufacturing. consider for GMCA, WYCA and beyond. The regeneration plans in North The 2017 workshop highlighted that Manchester, specifically the Northern the difficulties faced by the advanced Gateway site, look to establish a new machinery sector were not only manufacturing innovation park focused regional challenges but national on the application of advanced material challenges too. research and sustainable manufacturing. Manufacturing in Britain is consistently cited With a greater emphasis being placed as an economic strength by policy makers. on the commercialisation of advanced As we move into a more ‘Global Britain’ materials such as graphene, AMPI will play post-Brexit, it is imperative our industries a pivotal role in creating the machinery are adequately supported in maximising required for delivery. trade opportunities. The evolution of Complementing the Northern Gateway manufacturing relies on machinery and development is a series of nine enterprise without sufficient support and investment, a zones, managed by Leeds City Region, national sector is at risk. hosting a range of manufacturing, logistics The growing capabilities of other countries and distribution companies. AMPI’s location like China, Germany, and Japan, will help better connect Rochdale and should act as a warning to government. Manchester with this wider industry. Longer- Manufacturing is at a critical tipping point. term aspirations seek the creation of a high- AMPI represents a step forward, a ready- tech corridor, effectively linking Rochdale, made solution which increases innovation Manchester, Huddersfield, and Leeds. in machinery and contributes towards AMPI’s wider goal looks to deliver a the positioning of Britain as a global greater number of innovation jobs, and manufacturing superpower. as its impact grows across the country, Advanced machinery itself is a highly generate an increase of £565m in GVA technical field, covering a diverse range due to increased turnover associated with of disciplines. As a new centre of industry- the update and commercialisation of new led innovation, AMPI has the potential to machines. With a focus on supporting SMEs act as a beacon for advanced machinery, across the supply chain, AMPI will look to connecting the industrial expertise and extend its reach to a greater number of services of two important economies, towns and cities. bridging the gap between business and innovation infrastructure across Greater Manchester and West Yorkshire.

24 As this influence grows, it is the alignment Revolution’. The benefits of AMPI provides of AMPI with other national manufacturing the means to work across sectors and institutions that will have the greatest impact innovation infrastructure, whether it is the on job creation, product diversification and 3M Buckley Innovation Centre in improving Britain’s international footprint. Huddersfield, the Offshore Renewable Energy Catapult in Blyth, or the EPSRC However, this facility is not about the Ultra Precision Centre in Cranfield. AMPI benefits of one sector, it is about connecting will be flexible in its approach, opening up machine tools and advanced machinery new facilities and capabilities to whatever into the wider economy, such as advanced sectors of the UK need it most. materials in graphene or providing the tools to enable the kickstart of a ‘Green Industrial

25 5. Conclusion

This report recognises that there is benefits of investing in innovation linked to a strong case for the UK to invest in industrial heritage and economic strengths. manufacturing to strengthen its supply Its national ambition sends an important chains and place a greater reliance on message to government and levelling up – domestic based industry. A fundamental funding does not need to be allocated to component of this is recognising places like Cambridge or London to have a significant economic impact. the importance and capabilities of advanced machinery. However, it must be acknowledged that AMPI is not the single solution to all This means allocating additional resources challenges faced by Rochdale. It will into growing the national advanced take much more than a new innovation machinery sector in order to unlock centre to overcome the long-term social future manufacturing potential, enabling challenges of education, infrastructure, production of green technologies, and income, and health to reverse deprivation catapulting the UK towards the forefront trends. Nevertheless, this is a prominent of industry 4.0. first step in raising the profile of the town The next ten years will determine who and the obstacles it looks to tackle in the the main players are in the industries of coming years. the future. AMPI represents a credible The industry leaders that have brought proposition which will allow Rochdale, AMPI to this stage must also continue to and the UK, to greatly benefit from the work hard. Achieving funding and support fourth industrial revolution. The proposed for new infrastructure is the first step, but innovation programmes look to mobilise guaranteeing its success is the second and advanced machinery production and more difficult step. There have been many better equip supply chains, diversifying the innovation institutions that have not lived UK’s machinery portfolio and laying the up to expectations and that is not due to a foundation for future industry. lack of trying. The next phase must ensure AMPI has a wider goal outside supporting AMPI is effectively linked up to the wider industry in transitioning to new, modern manufacturing industry and positioned to methods of manufacturing – it is a vitally work seamlessly with Catapults, universities, important piece for Rochdale’s evolution. and other research-orientated institutions to It provides a new source of employment ensure its success. AMPI is already working and skills development, giving those who closely with the Graphene, Advanced are most at risk of job loss, an opportunity Materials and Manufacturing Alliance, led to adopt new skills and career paths. It by Juergen Maier, former Chief Executive of will represent an important case study Siemens UK, to ensure that this is achieved. for towns across the UK, showcasing the

23 Lessons for towns • Be creative – there is no ready-made solution that guarantees success. The The opportunity of AMPI provides invaluable AMPI model emphasises SMEs and the lessons for towns across the UK looking supply chain – this is different to what to level up and embed innovation within we have seen in catapults. their economy. These lessons are intended • Have ambitious targets – AMPI’s goals to help local leaders and businesses are large, unlocking £144m GVA and understand the principles behind achieving placing Rochdale at the heart of UK growth in their town: advanced machinery innovation.

• Identify and understand local challenges • Consider inclusive goals – many towns – the 2017 Futures Workshop was crucial across the UK are faced with difficult to the creation of AMPI, taking the time social challenges. Towns should consider to explore the challenges facing a how new opportunities bring greater national industry and identifying what prosperity to local people. needs to be done. • Plan for long-term success – places • Embrace economic strengths and need to be prepared when developing heritage – Rochdale’s industrial legacy creative solutions, ensuring growth is and manufacturing core carves out sustainable, achievable and withstands the rationale for AMPI. Towns must look the test of time. towards their strengths, using the local LEP-led Local Industrial Strategy to inform • One size does not fit all– ‘levelling up’ innovation and growth plans. our towns will require a myriad of policy and investment. Transport, education & • Establish strong networks – AMPI was skills, housing, early years – these are just formed by a coalition of businesses and some of the areas that must accompany other stakeholders who understood the capital infrastructure to ensure plans local challenges better than anyone, have a long-term transformational while regional networks with education impact on the local area. providers, industry and research institutions are fundamental to future success.

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