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Black Country Local Industrial Recovery Strategy

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Black Country Local Industrial Recovery Strategy DRAFT Black Country Local Industrial Recovery Strategy 19/05/2020 1 Table of Contents Section Page Number Emerging Policy Themes in Terms of the Rescue to Resilience Stage 3 Business Engagement Plan 4 Black Country Strategic Companies 5 Black Country Sectors 6 LIS Sector Analysis 7-11 Sectors: Advanced Manufacturing inc. Aerospace, Metals & Materials, Automotive, Rail, Food & Drink 12-41 Creative Industries 42-46 Building Technologies 47-52 Business Services 53-59 Environmental Technologies 60-66 Transport Technologies 67-71 Health inc. Life Sciences and Health & Social Care 72-81 Public Sector inc. Education 82-86 Retail 87-91 Sports 92-95 Visitor Economy (Tourism) 96-102 Foundations: People, Skills & Employment 104-105 Infrastructure & Environment 106-108 Business Environment 109-111 Ideas & Innovation 112-113 Place 114-118 Major New Market Opportunities: Creative Content, Techniques and Technologies 119-120 Appendix: Black Country Sector Dashboards 121-137 5/19/2020 2 Emerging Policy Themes in Terms of the Rescue to Resilience Stage • Access to finance and cashflow (inc long-term appetite for debt and equity) • Skills and Labour Supply (inc furloughing and long-term implications of jobs lost in retail, hospitality and manufacturing) • New business models including digitisation e.g. Med-tech • Social distancing and implications for coming out of lock down • Trade Agreements: customs procedures, EU Trade deal post Jan 21 • Consumer Behaviour – persistence of changing consumption and mobility patterns • Supply Chain Readiness and pinch points • Rural and urban economies e.g. food supply, processing and consumers • Consequences of reported inflexibilities and gaps in coverage of current HMG business support measures • Productivity and logistical consequences of large-scale switch to remote working and e- commerce – depending on persistence may have implication for long term land use and transportation policy and planning • Long term health and wellbeing consequences of enforced isolation (health, education, psychological…) • Vulnerability of the Young to employment effects must raise concerns about potential long term ‘scarring’ impacts on labour market participation and career progression Business Engagement Plan 1. Building 3 LEP wide Understanding a. Building a comprehensive business stakeholder mapping b. Specific 3 LEP and Growth Co Comms and Marketing task and finish group established to develop the integrated Business Engagement Framework and Toolkit. c. Emerging leading 10 themes of cross cutting Covid19 business economy response requirements 2. Engaging with businesses of all scale a. Building a sector by sector input of intelligence and information to build depth of understanding on Covid19 related sector issues, opportunities and business led solutions b. A range of engagement methods to be deployed c. A core set of questions to be ‘surveyed’ for WM City Redi and policy makers to consider. 3. Involvement – ongoing a. To work in a phased and iterative process to ensure that policy responses are business friendly. b. To build an iterative time frame that is phased based on the needs of the sector and consumer behaviours. 4. Collaboration a. To ensure that a partnership approach exists across business sectors, business intermediaries, academia, trade unions and public sector. 5. Decision making 5/19/2020 5 Sector Action Plans Energy, Low Logistics/ Metals & Carbon Aerospace Transport Materials Technology & Env. Technologies Professional Life Sciences Rail Construction Services Visitor Economy & Creative Automotive Food & Drink Leisure Activity Health and Social Retail Public Services Education Care 5 Foundations of Productivity People, Skills & Employability; Infrastructure & Environment; Innovation; Business Environment; Place LIS Sector Analysis April 2020 Black Country Enterprises by Sectors Black Country 45% Sector Enterprises Advanced 40% 39% 4,350 38% Manufacturing Building Technologies 4,565 35% Business Services 9,565 Environmental 230 Technologies 30% 29% Health 1,615 Public Sector 835 Retail 6,785 25% Transport 3,070 20% Technologies 20% Visitor Economy 2,225 17% 17% Sports 315 Total 33,555 14% 15% 13% 14% 11% 12% 10% 10% 9% 8% 7% 6% 6% 6% 5% 5% 5% 3% 4% 3% 2% 1% 1% 0% 0% 1% 1% 0% Advanced Building Business Services Environmental Health Public Sector Retail Transport Visitor Economy Sports Manufacturing Technologies Technologies Technologies Black Country Conventry and Warwickshire Greater Birmingham & Solihull Black Country Jobs by Sectors 30% Sector Black Country Advanced Manufacturing 67,805 23,500 25% Building Technologies 25% Business Services 80,185 Environmental 23% 6,050 Technologies Health 64,800 20% 19% Public Sector 63,000 18% Retail 86,000 16% 16% 16% Transport Technologies 29,160 15% 15% 15% 15% 14% 14% Visitor Economy 21,600 13% Sports 7,000 12% 11% 10% 6% 6% 7% 6% 5% 6% 5% 5% 5% 4% 2% 1% 2% 1% 1% 1% 0% Advanced Building Business Services Environmental Health Public Sector Retail Transport Visitor Economy Sports Manufacturing Technologies Technologies Technologies Black Country Coventry and Warwickshire Greater Birmingham and Solihull 9 Percentage of GVA by Sector Across the Black Country 30.0% Sector GVA (£000’s) Advanced Manufacturing £2,718 Building Technologies £1,404 25.8% Transport Technologies £1,314 25.0% Business Services £5,461 Environmental £998 Technologies Health £2,298 20.0% Public Sector £2,984 Retail £3,185 Visitor Economy £453 15.0% Sports £378 15.0% 14.1% Total £21,194 12.8% 10.8% 10.0% 6.6% 6.2% 4.7% 5.0% 2.1% 1.8% 0.0% Advanced Building Transport Business Services Environmental Health Public Sector Retail Visitor Economy Sports Manufacturing Technologies Technologies Technologies 10 Employment Rate Across the Black Country in 2019 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Parliamentary Constituency England Advanced Manufacturing Sector Action Plans: Aerospace Economic Contribution Immediate Impact Risks Timetable for Recovery Plan • Five point plan to re-boot Midlands Aerospace. • • Larger customers not sharing information on reaction to virus. 4,350 enterprises, 13.0% of 1. People pillar/strand: safe and efficient workplace Black Country total. • Short term revenue and cashflow issues – impact on potential survival. • Long international supply chains a critical issue as parts have dropped out. 2. Finance pillar/strand: re-launch aid for the supply chain • 67,805 jobs, 15.0% of Black 3. Supply chain pillar/strand: resilient supply chain ecosystem Country total. 4. Innovation pillar/strand: agile innovation programme [use supercluster • £2.7bn contribution to GVA, word?] 12.8% of Black Country total. 5. Business development pillar/strand: complete virtual business development • £40,086 GVA per employee. toolbox • Big event on 2nd, 3rd and 4th June, three sets of meetings where MAA conference had been dropped in as a holding position. Transition Requests Themes Impact (High, Likelihood (High, Medium or Low) Medium or Low) New business models inc digitisation: Accelerate and scale programmes to encourage adoption of digital in supply chain, such as Make It Smart campaign, Future of British Manufacturing. 4Manufacturing LOW MEDIUM Social Distancing: clarity required on the plan to phase-out social distancing requirements e.g. shift working to ensure continued effective and efficient design, production and distribution practices and protocols, drawing on experiences in other countries HIGH HIGH Access to Finance: businesses that have experienced a reduction in demand are struggling to pay suppliers and staff. They are also struggling with ongoing utility, rents and debt costs. Pre-existing market conditions (e.g. Boeing) will add to the reluctance of lenders. Consider public investment in space and defence to increase demand HIGH HIGH and resume lender confidence Skills and Labour Supply (inc furloughing): consideration of extension to furloughing beyond June and to flexibility to phase the return of furloughed staff to avoid HIGH HIGH immediate redundancies Supply Chain Readiness: opportunities to re-shore supply chains, seek alternatives internationally and to simplify complex integrated supply chains across the sectors MEDIUM MEDIIUM Consumer Behaviour: close monitoring of regulator and passenger behaviour post-pandemic, for potential impact on demand for services, need for adaptations to MEDIUM MEDIUM aircraft, airports etc 5/19/2020 13 Sector Action Plans: Aerospace LIS# Ref Actions Who What/How/Progress Timescale Funding Priority – TO BE REVIEWED A1 The Black Country LEP, WMCA, WM LEPs and the MAA will LEPs/GHs, MAA and LEPs to work in partnership with ATI to develop future, work with ATI and government to improve the quantity of MAA scaled-up funding streams for SMEs; ensure true SME definition; 2020 S N/A aerospace innovation/R&D funding accessed by West ATI/gov, engage with industry through the MAA/IAWM to promote. Midlands firms, particularly SMEs. IAWM, Private A2 Local partners will drive a new regional approach to LEPs/GHs, Deliver sector innovation pilot in GBSLEP based on bite-sized S innovation - providing sector-specific mentoring and MAA, IAWM “challenges”; IAWM/MAA to deliver aerospace part of the funded pilot; 2020 PIPELINE strategic support on innovation to supply chain firms – Gov dependant on success local partners will then build this up across the seeking government support for this as it develops. WM through more funding (e.g. from gov). A3 Utilise the West Midlands Innovation Programme (WMIP) IAWM, Utilise the WM IP to develop new projects through partnerships,
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