Manchester City Region Dawn of a New Era

In association with: Foreword Contents Manchester City Region Foreword: Manchester City Region...... P2 Welcome to the first of Foreword: Dr. Nicholas Dobson, TheBusinessDesk.com’s City Region economic Senior Consultant, Pannone ...... P3 supplements. It is appropriate that Foreword: Chris Sharkey, Manchester, the biggest commercial centre of the Regional Director, North West region, is the North West Corporate Banking Centre, Chris Barry - Editor subject for our first spotlight, TheBusinessDesk.com which has been produced in Santander...... P4 conjunction with Santander Corporate Banking and law firm Pannone. The role of LEPs as creators of We feel now is the perfect time to be exploring the dynamic of our city regions - we’ll be analysing the economic development and growth .....P5-6 state of play in Liverpool later in the summer - as a year on from the General Election, the new systems and structures of local governance and funding are The Future of the Regional starting to take shape. Economy...... P8-9 With this in mind, the supplement leads off with an interview with Mike Blackburn the chairman of the Greater Manchester Local Enterprise Partnership. Reasons to be cheerful New funding structures such as the Regional Growth - What sets Greater Manchester Fund are already up and running, while Manchester Airport has been named as one of the first new Enterprise apart from other Regions ...... P11-13 Zones - which will drive economic growth and create new jobs quickly. Round Table ...... P14-16 Issues of funding, transport and skill top the agenda in Greater Manchester, as in other regional cities. Against a backdrop of continuing economic challenge, the Greater Manchester City region has plenty to cheer - it is widely acknowledged that its economy is more diverse and resilient than ever. TheBusinessDesk.com There are also a number of ‘hot’ sectors - smart Portland Tower, 53 Portland Street, manufacturing, science and innovation, not to Manchester M1 3LF mention the city’s strong financial and professional services community. Editor: The opening of the first phase of MediaCityUK - home Chris Barry e: [email protected] from this autumn to thousands of BBC staff - is one of a number of key differentiators for Greater Manchester, Contributors: which also include a major regeneration programme in Mike Fahy e: [email protected] East Manchester, and the Co-operative Group’s major James Graham e: [email protected] new HQ development. While the City Region is at the dawn of a new era, the foundations for future success were laid in previous decades with the formation of strong, enduring links Business Development Manager: between the private sector and city leaders such as Sir Tristam Carson e: [email protected] Howard Bernstein. As Mike Blackburn states, it’s a ‘can-do’ attitude t: 0161 238 4922 and it gives further reason for optimism! f: 0161 238 4905

Chris Barry - Editor

In association with: P2 TheBusinessDesk.com - Manchester City Region supplement Heavyweight LEP board will make dynamic things happen

As the UK Following the Government’s June 2010 invitation to struggles to partnerships of local authorities and businesses to disengage from the financial mire, there is clearly a ‘All LEPs face the immediate critical need to problem that they will receive no drive sustainable automatic Government or other economic growth. funding’

Local Enterprise Dr. Nicholas Dobson Partnerships (LEPs) are Senior Consultant, Pannone amongst the key items submit outline proposals reflecting the Government’s on the Government’s agenda, some 30 LEP proposals have been approved. prescription list. LEPs were charted in the May 2011 Amongst these was the bid from the Association of Coalition Agreement as ‘joint local authority-business Greater Manchester Authorities (AGMA). The Greater bodies brought forward by local authorities themselves Manchester LEP (with a board of eight private sector to promote local economic development’. They are and four local authority members) is chaired by BT replacing the current regional development agencies North West Regional Director, Mike Blackburn. which are set to close at the end of March 2012. All LEPs face the immediate problem that they will receive no automatic Government or other funding. LEPs therefore have to make their own rain through ‘The core purpose of LEPs is to applications to the Government’s £1.4bn Regional provide local business-led Growth fund - RGF (Round 2 of which opened on 12 strategic leadership to drive local April and closes on 1 July 2011) and any other available sources, apart from any local authority contributions economic priorities’ that might be forthcoming. The Greater Manchester LEP is clearly no exception. Nevertheless, GM LEP has managed to attract some heavyweight talent and Board The core purpose of LEPs is to provide local members will no doubt be generating some serious business-led strategic leadership to drive local economic drive and determination to make dynamic things happen priorities. A key aim of the Government is to rebalance in the region. A robust RGF Round 2 Application will no doubt be a key part of this strategy. For talent and the economy towards the private sector and LEPs are talk is all very well. But as the song in Cabaret shrewdly pivotal to this with the expectation being that they should pointed out, it’s ‘Money Makes the World Go Round’. normally be chaired by ‘a prominent business leader’. However, as Ministers have pointed out, ‘it is vital that business and civic leaders work together’, so there will normally be equal public/private representation Dr. Nicholas Dobson on LEP boards. Senior Consultant at law firm Pannone

In association with: P3 TheBusinessDesk.com - Manchester City Region supplement Proud to be Committed to the North West’s SMEs

At Santander As a sustainable lender, we focus on getting to Corporate Banking, know your business and understanding your potential. By developing better relationships with our customers we are committed we are able to provide sustainable funding solutions to supporting that focus on the long-term viability of a business rather SMEs - not just by than short-term volatility. providing the Unlocking other finance finance they need to expand, but also Our Relationship Directors and product specialists are experts in all the sources of finance available to support through business growth. developing true partnerships. Chris Sharkey Our Manchester office, ‘We have a strong track record Regional Director, Santander at 298 Deansgate, is an ideal base for the North on lending and have made a firm West team to support businesses in the Manchester commitment to provide new area. Our Relationship Directors are experts in helping businesses grow and will use their local market finance for SMEs.’ experience to work with you to find the right funding solutions for your business. We can help you access direct investment, additional sources of finance, and provide solutions to help you This includes the government's Enterprise Finance invest in equipment or pay suppliers more efficiently. Guarantee Scheme, offering finance to higher-risk businesses, and specialist support for exporters. We’ll Most importantly, we work with our customers as advise you whether you qualify, and help you to apply. business partners and aim to give them the long-term, hands-on local support they need to develop their Asset finance is also available to help you invest in business to its full potential. new property, plant and equipment, and invoice finance, which lets you unlock cash flow from invoices. There New lending: a £4 billion pledge are many ways to manage both - we’ll help find the Firstly, we can help Manchester businesses access right ones for you. finance. We have a strong track record on lending Reaching your full potential and have made a firm commitment to provide new finance for SMEs. There is no doubt that Santander Corporate Banking remains committed to the SME market. We pride In 2010, while overall bank lending fell by 20%, our ourselves on building long term relationships with lending to SMEs rose by 26%. This year, we have Manchester businesses which can only be done by committed, as part of the government’s ‘Project Merlin’, taking the time to truly understand how your business to increase lending to SMEs by another 25% and first works, its aims and objectives. quarter results show we are ahead of target. If your business could benefit from this personal We’re the only bank that has revealed firm targets for approach to corporate banking, we’d be delighted to lending in 2011 and have pledged £6.7bn in new finance, speak to you. with £4bn of this directed to SMEs. We want to maintain competitive terms for our funding, in a responsible manner, without unreasonable conditions. But for Santander Corporate Banking, Chris Sharkey - Regional Director, it is not all about price. North West Corporate Banking Centre, Santander

In association with: P4 TheBusinessDesk.com - Manchester City Region supplement The Role of LEPs ...as creators of economic

development and growth - by Chris Barry A passion to make a difference and help make Greater Manchester a better place to live and work is driving Mike Blackburn, the inaugural chairman of the new LEP. The regional boss of telecoms group BT who served on the board of MIDAS - the city’s inward investment Mike Blackburn Chairman, LEP agency -and then chaired the think tank Commission for the “I think we have to be conscious New Economy before taking this that we can’t just do more of the ‘...if we can harness role, feels Greater Manchester same - we need to find how we can is “well placed” to continue have the greatest benefit to the city. this ‘can-do’ growing, notwithstanding the tough economic backdrop and “Across Greater Manchester I think approach, Manchester reduced regional funding. there are a number of common challenges - reducing is well-placed...’ He says: “We are well aware of unemployment, improving skills and the task in front of us. I think the raising aspirations.” first challenge is to carry on the While accepting there are of course work the NWDA was doing but with businesses in Greater Manchester. different challenges in each of considerably less available the 10 boroughs in Greater “I think we have been pleased with resources. Manchester, he believes a “unified” the engagement with the business approach is the best solution. community so far, and it is hugely important that it continues. We had ‘Across Greater “I think it’s one of the strengths more than 90 applications for the that Manchester has - there is a lot LEP board, which is a fantastic Manchester I think less infighting than there was say figure, so it’s another of our 15 to 20 years ago. challenges - to galvanise the interest there are a number of “Maturity is a good word and I that there has been in the LEP and common challenges...’ believe the spirit of partnership to build on this.” - the way the public, private and He feels there is a good mix of third sector works together, is one sector and size of business among of Manchester’s biggest strengths. the nine public sector “This means that one of our major “Yes times are tough, times are representatives on the board. tasks is to prioritise projects, hard, but I think that if we can “We have big business like programmes and budgets.” harness this ‘can-do’ approach, and The Co-operative but also SMEs address the issues we need to, and companies in science, He feels too that the organisation Manchester is well-placed.” innovation and technology as well must challenge itself to define its Mr Blackburn, 51, says it is ‘crucial’ as construction, property and own role and position in the the 12-person LEP is relevant to telecoms. Then there is the third City Region. and representative of the 10,000 sector as well.”

In association with: P5 TheBusinessDesk.com - Manchester City Region supplement Mr Blackburn says: “We have still not had formal feedback on the Private sector line-up of the LEP board is: Round One bids, but what I would • Keith Johnston - from law firm Addleshaw Goddard say is that the timescales were hugely tight, and getting private • Professor Dame Nancy Rothwell - President and sector involvement was always Vice Chancellor, University of Manchester going to be tough. We put a number • Neil McArthur - Chairman and Head of Innovation of proposals forward focused on at Talk Talk Technology job creation. • Ken Knott of Ask Developments “Lord Heseltine chair of the independent panel assessing the • Peter Marks, Chief Executive of the Co-operative RGF bids was very clear they Group wanted to see this. We took a • Alison Tumilty - Deputy Chief Executive and Finance particular approach to our bids, Director of Rathbone Training where the funds would be reused, reinvested maybe three times • Roger Milburn - Director of Ove Arup and Partners over a 10 year period. Maybe that • Scott Fletcher, Chairman of ANS Group kind of thinking was not right for Round 1.” Looking forward he says he is The three public sector employment to people across optimistic of a better outcome: representatives are the Chairman Greater Manchester and beyond “For Round 2 we have already of AGMA - the Association of and will therefore require good started engaging with the Greater Manchester Authorities transport links.” Regional Growth Panel about - Lord Peter Smith, and Vice Chairs how they are going to assess the Sir Richard Leese, Cllr Howard Mr Blackburn feels too that while Sykes and Cllr Bob Bibby. there are such binding factors, the “uniqueness” of the 10 local Mr Blackburn, who went to school authority areas is no bad thing. ‘...getting private on the Wirral and was brought up in Cumbria, has worked in “Greater Manchester is greater than sector involvement Manchester since 1990. the sum of its parts,” he declares. was always going to His involvement with MIDAS and Unlike the regional development be tough’ the Commission for New Economy agencies - which received money has whetted his appetite for his direct from Whitehall - LEPs will not current role. receive any direct Government funding, and instead have to next bids. What is clear is that “I am not someone who gets compete with others for funding this next round is going to include involved on a board and then just from sources such as the Regional what they are calling ‘programme sits there for the sake of it. I want Growth Fund. bids’ rather than just specific to be active and to challenge, to projects and I think that is good make a difference,” he states. The fact that the regions are living for us, in terms of our plans for in an era where there is less Looking broadly across Greater growth and job creation. Manchester, he says it is important available resource is evidenced by Unsurprisingly the matter is at the that each of the 10 local boroughs the fact that last year alone the top of the agenda for the next recognise their own assets, but also North West Development agency meeting of the LEP next week. had a budget of nearly £300m but weaknesses, and that through the “I think we are in better shape than the new fund will only have Combined Greater Manchester we were before in terms of our £1.4bn for the whole of the England Authority - a new entity bringing the model, which I think better suits this over three years. 10 local councils together - a strong second round.” dialogue with the LEP is Despite submitting more than established. He said the private sector board 20 bids to the first round of RGF, members would bring “a rigorous “There are common, binding factors Greater Manchester achieved only dimension” to the bidding process. across the region - centred around limited success, drawing criticism While acknowledging there is “a skills and transport and housing, that its submissions lacked obvious very big job to do” Mr Blackburn which can be addressed together. private sector leadership - and were says he is excited about what the overly complex. LEP will do. “I think it’s important that there is understanding that there can only So bearing this in mind, what can “I am not a person to stand be one Kingsway Business Park, the LEP do to ensure that back and I have a lot of passion one MediaCity, but they are Manchester fares better in the for Manchester and the North West. valuable assets for the entire second round of bidding for nearly It’s all about making a difference City Region and can offer £1bn of RGF cash? - I have a lot of history here.”

In association with: P6 TheBusinessDesk.com - Manchester City Region supplement In association with: P7 TheBusinessDesk.com - Manchester City Region supplement The Future of the Regional Economy - by James Graham For the past decade the mantra of regeneration chiefs has been the development of the ‘knowledge economy’ - prosperity built on ideas and innovation rather than metal bashing and mass production. This will attract high value jobs, they say, generate revenue from intellectual property rights and hopefully create whole new industries to replace the ones that have been lost over the Gene technology success at the University of Manchester’s Core Technology Facility. past 40 years. prompted Manchester City companies that’s a tremendous It’s easier Council to work on the ‘corridor’ advantage. It will be the first time said than initiative which will seek to companies will be able to sit cheek done, with the consolidate and build upon the by jowl with the clinicians delivering high start-up healthcare and educational assets the healthcare. So if you’re in that costs which line Oxford Road, south of sector it’s the only place to be.” associated the city centre. with many pioneering The flagship project on this ideas creating two-mile stretch will be the former ‘...a good example of Jane Davies Royal Eye Hospital site Chief Executive, funding Manchester Science Park problems and - adjacent to the Central Manchester how pioneering requiring University Hospitals campus technology can create perseverance and tenacity on the - which should be open for business part of investors. But there are signs as a centre for biotech and skilled jobs...’ that Manchester is starting to benefit medical technology companies in this area, reaping rewards from towards the end of next year. ideas that have grown out of the The council expects the site to A similar plan has been devised in create 450 high value jobs and add Wythenshawe where the enterprise £61m to the city’s economy. Clinical zone that is intended to attract ‘...there are signs trials group ICON, which already business to a new Airport City has a base at nearby Manchester development will be extended to that Manchester is Science Park (MSP), has been incorporate Wythenshawe Hospital starting to benefit in pencilled in as the anchor tenant. which has expertise in the treatment Manchester property group of heart and lung-related illnesses. this area...’ Bruntwood is developing the site and MSP will manage it. Former AstraZeneca scientist Dr. Steve Little, one of Davies’ tenants Jane Davies, MSP’s chief executive, at Manchester Science Park, is a close association between the believes the project will offer good example of how pioneering universities and the city’s hospitals. biotech companies something technology can create skilled jobs, These ideas have led to the creation unique and spearhead the future attract investment and develop a of new companies and attracted growth of the sector in Manchester. new manufacturing base. direct foreign investment. “The key thing is its location on the He started DxS with Dr David These advances have also NHS campus,” she said. “For some Whitcombe at the University of

In association with: P8 TheBusinessDesk.com - Manchester City Region supplement Manchester’s Core Technology development are in treating Facility just off Oxford Road on particular diseases. Grafton Street in 2001. Spurred by advances made through the “Particularly because of Tepnel Human Genome Project, which and DxS the region has emerged enabled the biotech industry to with real strength and depth in molecular diagnostics which is just about the hottest area in biotech,” said Dr Little. ‘...bills itself as the “If I was going to set up another molecular diagnostics firm in the largest standalone UK I’d be coming to Manchester. molecular diagnostics There’s an awful lot of talent in Manchester but five years ago there company in the world’ was little experience. But now with us and Gen-Probe, there’s a lot of experience and if you want to find experienced staff this is where measure genes and gene variations you would come. We’d struggle to indicate the best treatments for to compete with Boston or San certain conditions, they started Fransisco but in Europe this is Science and innovation are key to developing kits that make it easier the place.” economic growth. for doctors to prescribe the most But it’s not just the medical firms effective treatments for various Runcorn was the epicentre for ICI that are leading the way. Another forms of cancer. development.” tenant at the Core Technology Facility is Nanoco which has Daniel Varney, a partner at The business Pannone, said: “With the drive to attracted cornered the market for quantum dots - an obscure material that has increase manufacturing in the UK, venture companies which have good capital huge potential in a range of consumer applicances. products should see opportunities. investment IT is tipped to be a growth sector from NVM The dots are tiny fluorescent and green technology is also well Private Equity particles of semiconductor material favoured, especially with more and was sold which have the ability to emit light. focus on the reduction of carbon in September They are in demand by the makers footprints and the savings available Dr. Steve Little 2009 to Chief Executive, of liquid crystal displays for to those who take it seriously. DxS German computers, TVs and phones Although a lot of competition in a group Qiagen because they consume less power quickly developing industry in a deal which valued it at £80m. than existing systems. means selecting the right Since then staff numbers have investment is difficult. doubled to 150. The company has just opened its first commercial manufacturing The growth of DxS, and several facility at The Heath Business and other firms, has led to a thriving Technical Park, on the site of an ‘The North West is very molecular diagnostics sector in the ICI research centre in Runcorn, city. The other large player is which has enabled the company to good for us because it Wythenshawe-based Gen-Probe, scale-up production of quantum a US-owned company which dots from milligrams to its first was the birth place of kilograms. The business has acquired Tepnel Life Sciences in rivals in the US such as Nanosys the chemical industry’ 2009 for £93m and turned it into its and QD Vision but it is the only European headquarters. The firm producing quantum dots on company now bills itself as the such a scale and free of heavy “We’ve also seen significant interest largest standalone molecular metals such as cadmium. in outsourcing companies, diagnostics company in the world. The Aim-listed firm is now looking especially those which provide There is also Myconostica - a at sites for a factory that would services to the public sector, even University of Manchester spin-out enable it to push production from those with a community benefit to several kilograms a month to around based at the Core Technology them, for example training the 150kg a year with a market value unemployed to provide the services. Facility - and AIM-listed Epistem, of some $100m, or £60m. “The Given the budget cuts public which emerged from the university’s North West is very good for us Paterson Institute for Cancer because it was the birth place of authorities face, any service that Research. It carries out research the chemical industry in the UK,” they can outsource to make it more for the large pharmaceutical firms said chief executive Michael cost effective clearly provides an to see how effective drugs in Edelman. “ICI was part of that and opportunity for the private sector.”

In association with: P9 TheBusinessDesk.com - Manchester City Region supplement In association with: P10 TheBusinessDesk.com - Manchester City Region supplement Reasons to be What Sets Greater Manchester Apart From Cheerful Other Regions - by Mike Fahy In the months after Britain was plunged into a full- blown recession following the banking crisis, much was made by Greater Manchester’s civic leaders of the area’s resilience, its sound economic fundamentals and its innate advantages over competitor city regions. There may have been an element of hubris to their assessment - city MediaCityUK is set up to be a focal point for inward investment in the coming years. leaders generally talk up their territory both at home and abroad, services firms - the growth the city’s professional services and it is something at which engine of the city region’s economy offer, while the keenness with Manchester has excelled - but for most of the preceding decade which firms from outside generally their assessment appears - suddenly found themselves Manchester swooped on various to have stood the test of time. embarking upon wave after wave parts of the business shows the of redundancies in order to cut regard in which the Manchester their cloth market is held. more ‘...city leaders accordingly John Ashcroft, chief executive of generally talk up their as the the city’s financial and lucrative professional services body territory both at home market for and abroad...’ corporate finance work ‘...the only high-profile dried up. John Ashcroft casualty shows the Chief Executive, Pro.Manchester Private Of course, the city region was not equity-backed resilience of the city’s isolated from the devastation buyouts fell from a peak of £2.3bn professional services’ caused to the economy by the in 2007 to just £270m in 2009, banking crisis. according to the Centre for In property, for instance, Management Buy-Out Research. consultancy firm CBRE estimates Although the figure rebounded to Pro.Manchester, said that the that the value of commercial £1.5bn last year, £955m of that business and professional services property dipped by 44% in related to a single deal - the sale sector is responsible for producing Manchester from the market’s of Handforth-based Pets at Home around 25-30% of its total Gross peak in August 2007 to its trough to KKR. Value Added (GVA). in September 2009. London experienced a similar dip, but In the case of law firm Halliwells, He argues that city leaders such as prices in the capital have surged partners found that there wasn’t Sir Richard Leese and Sir Howard back by more than 20% whereas enough cloth left to cover its Bernstein recognise that the sector in Manchester prices have only liabilities, leading to a spectacular offers the prospect of high-value edged up by around 3%. bust last year. Yet the fact that it jobs growth needed if Manchester was the only high-profile is to benefit from a private Similarly, financial and professional casualty shows the resilience of sector-led recovery.

In association with: P11 TheBusinessDesk.com - Manchester City Region supplement Angie Robinson, chief executive of ‘Manchester is inward investment agency MIDAS, said that it was also continuing to tailored to be an hold talks with major investment banks and other inward investors attractive alternative who are a potential source of high- to the capital’ value employment to the area. Following the demise of the North West Regional Development For instance, RBS chief Agency and the coalition executive Stephen Hester last government’s decision to set inward month pledged to create around investment policy at a national level, 100 investment banking jobs in MIDAS has had to contend with Manchester, describing the city some major where it already employs 6,000 challenges. staff as a “good location for the Its overheads bank”. have been cut by around Ashcroft said that RBS’s expansion, 59% and it and Bank of New York Mellon’s has been ongoing development in the city forced to lose were a sign that Manchester has staff, but Exterior - TheHeart MediaCityUK. an offer that is tailored to be an Angie Robinson Robinson attractive alternative to the capital. Chief Executive, MIDAS said that this Indeed, even during the height of “OK, some of it is due to cost - office has been the recession Greater space is much less expensive here done efficiently with marketing and Manchester has secured more and there is an element of cheaper other services being outsourced to than its fair share of inward labour costs.” third-party providers. investment. In 2009, MIDAS Yet it is the city’s ability to offer the “The result is that there are as many type of lifestyle, talent and skills that people working out in the field as such institutions require which is there ever have been,” she said. ‘...Greater Manchester more important than just costs. “We’ve put all of our resources into customer-facing activities.” has secured more For instance, Ashcroft pointed to the links between Manchester’s Robinson said that Greater than its fair share of professional communities and its Manchester has got “a fantastic inward investment’ higher education institutions, which product and we can compete with has led to Manchester Business anywhere”. School producing an MBA product that offers the type of skills which “We’re not a capital city but we have secured some 80- inward relocating investment banks would a strong complimentary offer and investment projects that were require of its graduates. it’s done very well.” estimated to have created or safeguarded some 4,735 jobs, while in 2010 it secured 94 projects creating or safeguarding 4,959 jobs.

As a result, the agency will continue to play a central role in the ‘Manchester family’ of economic organisations, and will share responsibility for business growth, trade and inward investment with Manchester Solutions.

Robinson, who also holds the informal title of chief operating officer of the ‘Manchester family’, argued that MIDAS retained “some real currency out there in the BBC Radio 4 broadcast live from the MediaCityUK audio studio. marketplace” as a brand.

In association with: P12 TheBusinessDesk.com - Manchester City Region supplement Other positive drivers for the city region’s economy over the next few years include the £1bn or so worth of investment planned by Manchester City’s affluent new owners to build a series of world-class sporting facilities in the area around the City of Manchester Stadium, and the £800m which the Co-operative Group is spending on redeveloping the area around its new headquarters and its existing estate, which has been branded as NOMA.

There are even signs of life returning to the commercial property market, with accountancy firm KPMG’s search for a new Manchester base

East Manchester will be transformed by a huge sports-led regeneration project driven by Manchester City FC. ‘There are even She also argued that the city region ramp up once the relocating BBC has a number of unique assets that departments begin operating from signs of life returning her staff can offer to tempt firms the site later looking to move into the UK, this year. to the commercial whether this is the technology and property market...’ “At the moment, a lot of people ‘...the city region has are still likely to provide the pre-let that the a number of unique positioning winning developer will need to kick- themselves start the next wave of construction Bill Lister - Head of and waiting to assets to tempt firms Pannone’s Media and projects in the city centre. Intellectual Property Team see what to move into the UK’ develops, but Indeed, despite the recent fall in there have been some arrivals capital values, Manchester was already and they’re becoming recently identified as the only biosciences cluster being developed increasingly high-profile.” investment hotspot for retail, around Oxford Road in the area industrial and commercial now branded Corridor Manchester, office property outside of London the burgeoning media empire ‘opportunities will by DTZ. springing up at MediaCityUK at Salford Quays or the low-regulation, feed through to the Its investment director Bruce Poizer low-tax zone being set up city’s professional said that the city’s retail and specifically to prise in inward industrial markets are the only investment at the new Airport City community’ two markets in the UK to be Enterprise Zone. currently rated as ‘Hot’ by the firm, and are estimated to be “There are plenty of options for us undervalued by 8% and 6% to show to clients - our job is to ITV’s long-awaited decision to build make sure we put the right ones in a new production facility for respectively. The commercial front of the right customers.” Coronation Street on the opposite office sector in the city is also rated bank of the Ship Canal means that as “Warm”. Bill Lister, who heads law firm the area will soon enjoy the critical Pannone’s contentious media and mass that makes it easier to attract Poizer said: "With forecast returns intellectual property team, said that media giants from overseas, and supported by attractive yields and Peel Group’s huge MediaCityUK Lister believes that opportunities solid rental growth prospects, site remains a work in progress, but will eventually feed through to the Manchester offers a very attractive he argued that activity was likely to city’s professional community. alternative market to London.”

In association with: P13 TheBusinessDesk.com - Manchester City Region supplement Can-do Attitude City well-placed to thrive, say business leaders Will Prevail - by James Graham Attendees: Chris Barry - Editor TheBusinessDesk.com Baron Frankal - Director of Economic Strategy at the Greater Manchester Commission for the New Economy Fred Ellis - Managing Director at Openshaw-based Thos Storey Fabrications Dan Wright - Chairman of textiles and office furniture group Vision Support Services Round Table: Wednesday 11th May 2011 Nicholas Dobson - Senior THE Greater Manchester “But here in Greater Manchester, Public Sector Consultant at Local Enterprise a city of three million people, we Pannone Partnership (LEP) should have the combined authority, the not be seen as a cure-all for chamber of commerce, and there’s Chris Sharkey - Regional great leadership. The LEP has the issues the city region Director for Santander Corporate something to add to that.” Banking is facing but as “one cog in a much bigger wheel”. Rob Thompson, Relationship Director at Santander Corporate That’s according to Baron Frankal, ‘...we have the Banking one of Manchester’s leading combined authority, economists, who was speaking Brian Sloan - Head of Business at a roundtable discussion held by the chamber of and Economic Policy at Greater TheBusinessDesk.com in commerce, and there’s Manchester Chamber of association with Santander Commerce Corporate Banking and the law great leadership’ firm Pannone. Tim Newns - Deputy Chief Executive at inward investment Mr Frankal conceded that the body MIDAS LEPs, introduced by the coalition Mr Frankal was addressing Government to replace regional scepticism about the body, which John Ashcroft - Chief development agencies, will have will seek to lever in investment from Executive of professional no money but stressed its a variety of sources, from several services lobbying group relationship with other bodies will panelists who run their own Pro.Manchester yield results. businesses. Fred Ellis, managing director at Openshaw-based Thos Gareth Parry - European “In isolation it’s worth nothing,” said Storey Fabrications, which makes Managing Director of business Mr Frankal, director of economic steel components such as vehicle finance firm ThinkSmart strategy at the Greater Manchester chassis for dumper truck, digger Commission for the New Economy. and bus manufacturers, said the

In association with: P14 TheBusinessDesk.com - Manchester City Region supplement Parry, European managing director of business finance firm ThinkSmart.

Mr Sloan said the city’s economy was facing pressure from higher

‘But there has been an increase in export orders, particularly to high growth economies...’ Chris Sharkey from Santander Corporate Banking (right) looks on as Dan Wright from VSS makes a point

Government had chopped away commodity prices and public sector layers of funding by introducing the Growth from a low cuts which are affecting demand. LEPs. “The old regime worked. This But there has been an increase in Government has broken that up.” base is like waking export orders, particularly to high growth economies outside the Dan Wright, chairman of textiles from a coma after European union such as Brazil and office furniture group Vision falling from a cliff and India. Support Services, said he had had no contact with any public sector regeneration bodies. “We Mr Parry, who runs the European- arm of ThinkSmart, which supplies employ 200 people with turnover Also present were: Chris Sharkey, finance for SMEs and individuals shy of £50m and we’ve grown regional director for Santander from £5m in six or seven years and through PC World and Curry’s Corporate Banking; Rob Thompson, we’ve never had any interaction stores, said there was caution in relationship director at Santander with any of them.” his market place. Corporate Banking; Brian Sloan, head of business and economic Much has been made of a revival ‘The old regime policy at Greater Manchester in manufacturing but Mr Ellis Chamber of Commerce; Tim stressed it was still tough. worked. This Newns, deputy chief executive at Turnover at Thos Storey fell from Government has inward investment body MIDAS; a pre-recession high of £28m in John Ashcroft, chief executive of 2007 to £8.9m in 2009 after demand broken that up.’ professional services lobbying for construction equipment group Pro.Manchester and Gareth collapsed. The business was forced

In a lively debate panelists tackled subjects ranging from the future of the regional economy, the potential for international trade and the challenge posed by poorly educated and motivated workers.

Pannone’s Nicholas Dobson, senior public sector consultant, stressed the public sector was still worth working with, even though he was submitting ”very keen bids” in the current funding environment. “It’s tough at the moment, but it’s a good Baron Frankal from New Economy, Tim Newns, depute chief executive from MIDAS sector to be in in the longer term.” and Brian Sloan from Greater Manchester Chamber

In association with: P15 TheBusinessDesk.com - Manchester City Region supplement to lay off 170, or 60%, of its 290 staff that year, but has since partially recovered. Last year’s sales topped £15m and the firm took on 55 people, taking its workforce up to 170.

‘The fact is the UK is relatively cheap in terms of exports and physical investment in property and infrastructure.’ Pannone’s Nicholas Dobson growth/no growth’ future but still poor attitude of some young people. room for optimism. “Manchester Fred Ellis said workers at his factory John Ashcroft put the manufacturing has fared better than other Northern from Eastern Europe were often recovery into perspective by saying cities,” said Mr Frankal, while Chris more industrious than their British growth from a low base was like Sharkey at Santander said: “The counterparts. Dan Wright admitted waking from a coma after falling picture is not quite as bad as you’re the apprenticeship schemes his from a cliff. “You’re a long way down company had set up were “all but it’s a recovery of sorts,” he said. disasters” because of the attitude But Tim Newns stressed that current ‘...consensus about and ability of the recruits. conditions were still favourable for the economy facing a “Why is that?” asked Chris Sharkey. British exports and inward “It’s harder now so people should investment. “The fact is the UK is ‘low growth/no growth’ be hungrier.” relatively cheap in terms of exports and physical investment in property future but still room Gareth Parry said Manchester’s and infrastructure.” for optimism.’ credentials as an international city were underlined by the good rail Referring to high growth economies links to London, Manchester Airport, Rob Thompson at Santander led to believe. Confidence levels added: “If we get North West compared to 12 months ago are manufacturers targeted towards probably marginally higher.” ‘...workers at his overseas markets those businesses will do well.” There was consensus The panelists expressed concern factory from Eastern about the economy facing a ‘low about the city’s skills base and the Europe often more industrious than their British counterparts.’

and most importantly the city’s talent pool, which meant his business was able to recruit native Spanish and Italian speakers.

Tim Newns said the city’s language capability was one of its ‘key differentiators’ and had led to major recent inward investment from Abu Dhabi-based airline Etihad, which is opening an international call Tim Newns (left) and Brian Sloan (right) listen to Fred Ellis from Thos Storey centre near Manchester Airport.

In association with: P16 TheBusinessDesk.com - Manchester City Region supplement