MIDAS Partnership Q3 Report FY19/20 Economic and Investment Outlook Following the general election, initial market analysis is that business confidence has improved to become cautiously optimistic. The expectation is the new Governments large majority will provide the UK economy with several months of breathing space, given a no deal Brexit on January 31st was averted. Now that corporation tax and wage levels are likely to remain more stable, analysts expect investment levels to improve. GDP growth for Q1 and Q2 2020 (calendar year) is expected to be 0.4% - surpassing the 0.2% average of last year. Looking over to Europe, later this month the .Manchester has also retained its title as the Financial Times will publish its fDi European best large city for business friendliness and Cities and Regions of the Future report for rose from 4th to 2nd in the connectivity 2020/21. Although we will not know the rankings. The city also secured 3rd position for positions of other cities until the report is FDI strategy in Europe, although Manchester th th released, we know that Manchester has has slid from 6 to 9 in the ranking for secured a place in the top five best large economic potential – a list that we expect cities – rising one place from 6th position in other European cities to have fared more the 2018/19 report. highly within. Delivery Against Objectives 1. To increase high value and capital investment in Greater Manchester HEADLINE BUSINESS DEVELOPMENT PERFORMANCE Quarter 1 12 727 £45.9M 109 FY20 successes jobs created GVA projects added Quarter 2 13 592 £49.0m 115 FY20 successes jobs created GVA projects added Quarter 3 18 549 £37.4m 123 FY20 successes jobs created GVA projects added FY20 43 1,868 £132.3m 347 YTD successes jobs created GVA projects added Q3 PERFORMANCE OVERVIEW KEY ACCOUNT MANAGEMENT From a project perspective, Q3 was the strongest MIDAS have met with 241 account managed quarter year-to-date with 18 successful closures. companies year-to-date, with 48 enquiries sourced There were seven ‘new to GM’ foreign investment worth a potential 2,900 jobs. These enquiries have a projects, of which six were from non-EU source higher percentage success rate than new investment markets, with one success each from Brazil, Korea, enquiries. Canada, Australia, India and USA. Since April 2018, MIDAS have sourced 39 projects, Despite the strong project count, the number of worth a potential 3,400 jobs from existing companies jobs created year-to-date is slightly behind profile. that have a requirement for new premises in GM. There were several large projects expected to Examples of current live requirements include close in Q3 but decision making stalled, likely in Accenture, Arm, HCL Technologies and Dentsu relation to a general election being called in Aegis, whilst Handelsbanken and BAE Systems are December and the uncertain political/market projects that have been sourced and successfully future. closed in the same time period. A lot of companies that we talk to are taking less space as they are There are a further 25 projects forecast to close adopting agile working practices, meaning the size successfully in Q4, which would take the end of requirements are reducing. year successes figure to 75, with the year-end jobs forecast currently at 3,550. SELECTED Q3 SUCCESSES 50 jobs 60 jobs 70 jobs The Landing Spinningfields No. 1 Spinningfields 20 jobs 20 jobs 30 jobs MSP MediaCityUK MediaCityUK CASE STUDY Preme Pay is a Brazilian headquartered FinTech that allows companies to provide local payment methods to customers in emerging countries. The company visited Manchester as part of a Latin American Function: FinTech DIT delegation in spring 2019, attending MIDAS’ Manchester Jobs created: 50 FinTech event. Following the visit, Preme Pay decided to Location: The Landing locate their first UK office at The Landing at MediaCityUK and Source market: Brazil expect to create 50 jobs over the next 3 years. 2. To extend the global business marketing of Greater Manchester to drive more investor interest to the city region HEADLINE MARKETING PERFORMANCE Quarter 1 3M 9 17,433 4,784 FY20 media reach events web visitors LinkedIn Quarter 2 802K 5 16,155 4,915 FY20 media reach events web visitors LinkedIn Quarter 3 7.1M 12 18,215 5,178 FY20 media reach events web visitors LinkedIn FY20 11M 26 51K 12% YTD media reach events web visitors growth Throughout Q3, in addition to the Manchester companies during the visit, generating eight India Partnership delivering the Mayor’s leads/projects and two in-visits that will be inaugural visit to India promoting the city as a delivered before April. digital and innovation hub, the core MIDAS team visited Washington DC, New York and GRAPHENE ROADSHOW, INDIA: The India to promote opportunities across all key advanced manufacturing team visited Pune, New sectors. Delhi and Hyderabad in November for a number of DIT-led conferences and one-to-one meetings MAYORAL TOUR, INDIA: The MIP led a 30- including manufacturing/engineering firms strong delegation to India in October, visiting Bharat Forge and Cyient. The team also visited Mumbai, Bangalore and Delhi. The aim of the trip the Automotive Research Association of India, was to promote and leverage the £400m economic the Indian Institute of Science Education and opportunity between India and the Northern Research and IIT Delhi. Approximately 9 long- Powerhouse. The MIP hosted a series of thematic term active projects were sourced from 58 roundtables and events including a major meetings. networking reception in each city. The delegation UPCOMING EVENTS: The following events engaged with more than 1,000 businesses are in the pipeline or are being considered for throughout the trip. As well as making a number of 2020/21 – please let us know if you are announcements in-market, the team returned with a interested in collaborating to have a more 600-job pipeline worth +£40m GVA. impactful GM presence: • Digital City Festival, Manchester, March EAST COAST ROADSHOW, USA: In November, • JECWorld, Paris, March (Materials) MIDAS’ CDT and FPBS teams visited Washington DC • HIMSS, Florida, March (Life Sciences) alongside Salford’s Jon Corner to promote 5G in • Health Innovation Week, Toronto, April Manchester as well as cross-sector opportunities • London Tech Week, Global, June including FinTech and eCommerce. They met with 30 • SIBOS, Boston, October (financial services) • Mayoral Visit, New York, November 3. To strengthen research, data and market analysis capabilities to drive a forensic sales approach and increase conversion Following a review of Manchester’s key The study highlighted that Greater Manchester comparator cities, MIDAS and Marketing must continue to grow and invest otherwise it risks Manchester commissioned The Business of falling in position over the next decade due to the Cities to analyse how Greater Manchester is rapid growth of cities and metro areas in Asia and performing internationally, the final report other fast-growing regions. Unlike the ‘established’ for which was finalised in Q3. world cities such as London, New York and Tokyo The aim of the study, which was structured to align that host dense corporate and decision-making with the themes and priorities set out in the GM functions, these cities are smaller, more specialised Strategy; Internationalisation Strategy and Local and have distinctive points of difference and Industrial Strategy, was to observe Greater opportunity e.g. strong metropolitan leadership, Manchester’s progress in the full global context, its compact growth, efficient infrastructure platforms, range of advantages, areas for catch up, its closely institutional strength, and innovation capabilities. performing peer cities and the opportunities to Other cities in this group include Melbourne, change its global perceptions. This was done by Barcelona, Hamburg, San Diego, Montreal and Tel assessing where Greater Manchester features Aviv. across the latest benchmarks, indices and datasets. In European terms, Greater Manchester continues There are 550 comparative studies and indices that to be an important centre - it is the 5th largest non- measure how cities are doing, both according to capital city region by population and over the next objective performance indicators and how they are 15 years, Greater Manchester’s population is perceived among global audiences. The findings expected to grow at a rate faster than Boston, tell us that by global standards, Greater Manchester Singapore and Barcelona. Many more types of city is a medium sized city-region. It is currently the are emerging, with different competitive edges and 170th largest city region globally by population size, identities. and the 151st largest metropolitan economy by GDP. Greater Manchester’s visibility across the elevate Greater Manchester’s position and we benchmarks has increased at a faster rate than have now entered the matrix to be classed as an most other city regions. It is one of the top 15 cities ‘influencer’ city. New World Cities are a distinct globally for the increase in the percentage of group of high performing, rapidly (re)globalising benchmarks it has appeared in throughout the cities that seek a different success model to the past five years – alongside Rotterdam, Tel Aviv and larger and more established global cities, most Seattle. Greater Manchester has overtaken often deliberately seeking competitive advantage Houston, Johannesburg, Brisbane and Calgary on the global stage in the last and current over the last five years in terms of visibility and economic cycle. New World Cities demonstrate along with Edinburgh, is now joint most visible city characteristics such as specialisation and in the UK after London. The work that has been innovation, a robust labour market, strong visitor done through MIDAS and partners has helped economy and scalability. Greater Manchester’ visibility in 2014-15 2018-19 global benchmarks % of global ranks featured in 15% 32% Global visibility rank 93rd 64th Why has Greater Manchester’s overall appealing and attractive to talent and investors as visibility in the benchmarks improved? the most established cities become saturated and 1.