Manchester City Region...Greater Manchester, as in other regional cities. Against a backdrop of continuing economic challenge, the Greater Manchester City region has plenty to cheer

In association with:

ManchesterCity RegionDawn of a New Era

Welcome to the first ofTheBusinessDesk.com’sCity Region economicsupplements.It is appropriate thatManchester, the biggestcommercial centre of theNorth West region, is thesubject for our first spotlight,which has been produced inconjunction with Santander

Corporate Banking and law firm Pannone.We feel now is the perfect time to be exploring thedynamic of our city regions - we’ll be analysing thestate of play in Liverpool later in the summer - as ayear on from the General Election, the new systemsand structures of local governance and funding arestarting to take shape.With this in mind, the supplement leads off with aninterview with Mike Blackburn the chairman of theGreater Manchester Local Enterprise Partnership.New funding structures such as the Regional GrowthFund are already up and running, while ManchesterAirport has been named as one of the first new EnterpriseZones - which will drive economic growth and createnew jobs quickly.Issues of funding, transport and skill top the agenda inGreater 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 morediverse and resilient than ever.There are also a number of ‘hot’ sectors - smartmanufacturing, science and innovation, not tomention the city’s strong financial and professionalservices community.The opening of the first phase of MediaCityUK - homefrom this autumn to thousands of BBC staff - is one ofa number of key differentiators for Greater Manchester,which also include a major regeneration programme inEast Manchester, and the Co-operative Group’s majornew HQ development.While the City Region is at the dawn of a new era, thefoundations for future success were laid in previousdecades with the formation of strong, enduring linksbetween the private sector and city leaders such as SirHoward Bernstein.As Mike Blackburn states, it’s a ‘can-do’ attitudeand it gives further reason for optimism!

Chris Barry - Editor

ContentsForeword: Manchester City Region.........P2

Foreword: Dr. Nicholas Dobson,Senior Consultant, Pannone .................. P3

Foreword: Chris Sharkey,Regional Director,North West Corporate Banking Centre,Santander............................................... P4

The role of LEPs as creators ofeconomic development and growth .....P5-6

The Future of the RegionalEconomy..............................................P8-9

Reasons to be cheerful- What sets Greater Manchesterapart from other Regions .................P11-13

Round Table ....................................P14-16

TheBusinessDesk.comPortland Tower, 53 Portland Street,Manchester M1 3LF

Editor:Chris Barry e: [email protected]

Contributors:Mike Fahy e: [email protected] Graham e: [email protected]

Business Development Manager:Tristam Carson e: [email protected]

t: 0161 238 4922f: 0161 238 4905

P2

Chris Barry - EditorTheBusinessDesk.com

ManchesterCity Region

Foreword

TheBusinessDesk.com - Manchester City Region supplement


As the UKstruggles todisengage from thefinancial mire,there is clearly acritical need todrive sustainableeconomic growth.

Local EnterprisePartnerships (LEPs) areamongst the key itemson the Government’s

prescription list. LEPs were charted in the May 2011Coalition Agreement as ‘joint local authority-businessbodies brought forward by local authorities themselvesto promote local economic development’. They arereplacing the current regional development agencieswhich are set to close at the end of March 2012.

The core purpose of LEPs is to provide localbusiness-led strategic leadership to drive local economicpriorities. A key aim of the Government is to rebalancethe economy towards the private sector and LEPs arepivotal to this with the expectation being that they shouldnormally be chaired by ‘a prominent business leader’.However, as Ministers have pointed out, ‘it is vital thatbusiness and civic leaders work together’, so therewill normally be equal public/private representationon LEP boards.

Following the Government’s June 2010 invitation topartnerships of local authorities and businesses to

submit outline proposals reflecting the Government’sagenda, some 30 LEP proposals have been approved.Amongst these was the bid from the Association ofGreater Manchester Authorities (AGMA). The GreaterManchester LEP (with a board of eight private sectorand four local authority members) is chaired by BTNorth West Regional Director, Mike Blackburn.

All LEPs face the immediate problem that they willreceive no automatic Government or other funding.LEPs therefore have to make their own rain throughapplications to the Government’s £1.4bn RegionalGrowth fund - RGF (Round 2 of which opened on 12April and closes on 1 July 2011) and any other availablesources, apart from any local authority contributionsthat might be forthcoming. The Greater ManchesterLEP is clearly no exception. Nevertheless, GM LEP hasmanaged to attract some heavyweight talent and Boardmembers will no doubt be generating some seriousdrive and determination to make dynamic things happenin the region. A robust RGF Round 2 Application willno doubt be a key part of this strategy. For talent andtalk is all very well. But as the song in Cabaret shrewdlypointed out, it’s ‘Money Makes the World Go Round’.

Dr. Nicholas DobsonSenior Consultant at law firm Pannone

‘All LEPs face the immediateproblem that they will receive noautomatic Government or otherfunding’

Dr. Nicholas DobsonSenior Consultant, Pannone

Heavyweight LEP board willmake dynamic things happen

P3

‘The core purpose of LEPs is toprovide local business-ledstrategic leadership to drive localeconomic priorities’



At SantanderCorporate Banking,we are committedto supportingSMEs - not just byproviding thefinance they needto expand, but alsothroughdeveloping truepartnerships.Our Manchester office,at 298 Deansgate, is anideal base for the North

West team to support businesses in the Manchesterarea. Our Relationship Directors are experts in helpingbusinesses grow and will use their local marketexperience to work with you to find the right fundingsolutions for your business.We can help you access direct investment, additionalsources of finance, and provide solutions to help youinvest in equipment or pay suppliers more efficiently.Most importantly, we work with our customers asbusiness partners and aim to give them the long-term,hands-on local support they need to develop theirbusiness to its full potential.

New lending: a £4 billion pledgeFirstly, we can help Manchester businesses accessfinance. We have a strong track record on lendingand have made a firm commitment to provide newfinance for SMEs.In 2010, while overall bank lending fell by 20%, ourlending to SMEs rose by 26%. This year, we havecommitted, as part of the government’s ‘Project Merlin’,to increase lending to SMEs by another 25% and firstquarter results show we are ahead of target.We’re the only bank that has revealed firm targets forlending in 2011 and have pledged £6.7bn in new finance,with £4bn of this directed to SMEs.We want to maintain competitive terms for ourfunding, in a responsible manner, without unreasonableconditions. But for Santander Corporate Banking,it is not all about price.

As a sustainable lender, we focus on getting toknow your business and understanding your potential.By developing better relationships with our customerswe are able to provide sustainable funding solutionsthat focus on the long-term viability of a business ratherthan short-term volatility.

Unlocking other financeOur Relationship Directors and product specialists areexperts in all the sources of finance available to supportbusiness growth.

This includes the government's Enterprise FinanceGuarantee Scheme, offering finance to higher-riskbusinesses, and specialist support for exporters. We’lladvise you whether you qualify, and help you to apply.Asset finance is also available to help you invest innew property, plant and equipment, and invoice finance,which lets you unlock cash flow from invoices. Thereare many ways to manage both - we’ll help find theright ones for you.

Reaching your full potentialThere is no doubt that Santander Corporate Bankingremains committed to the SME market. We prideourselves on building long term relationships withManchester businesses which can only be done bytaking the time to truly understand how your businessworks, its aims and objectives.If your business could benefit from this personalapproach to corporate banking, we’d be delighted tospeak to you.

Chris Sharkey - Regional Director,North West Corporate Banking Centre, Santander

Chris SharkeyRegional Director, Santander

Proud to be Committed to theNorth West’s SMEs

P4

‘We have a strong track recordon lending and have made a firmcommitment to provide newfinance for SMEs.’



A passion to make adifference and help makeGreater Manchester a betterplace to live and work isdriving Mike Blackburn, theinaugural chairman of thenew LEP.

The regionalboss oftelecomsgroup BT whoserved on theboard ofMIDAS - thecity’s inwardinvestmentagency -andthen chaired

the think tank Commission for theNew Economy before taking thisrole, feels Greater Manchesteris “well placed” to continuegrowing, notwithstanding thetough economic backdrop andreduced regional funding.

He says: “We are well aware ofthe task in front of us. I think thefirst challenge is to carry on thework the NWDA was doing but withconsiderably less availableresources.

“This means that one of our majortasks is to prioritise projects,programmes and budgets.”

He feels too that the organisationmust challenge itself to define itsown role and position in theCity Region.

“I think we have to be consciousthat we can’t just do more of thesame - we need to find how we canhave the greatest benefit to the city.“Across Greater Manchester I thinkthere are a number of commonchallenges - reducingunemployment, improving skills andraising aspirations.”While accepting there are of coursedifferent challenges in each ofthe 10 boroughs in GreaterManchester, he believes a “unified”approach is the best solution.“I think it’s one of the strengthsthat Manchester has - there is a lotless infighting than there was say15 to 20 years ago.“Maturity is a good word and Ibelieve the spirit of partnership- the way the public, private andthird sector works together, is oneof Manchester’s biggest strengths.“Yes times are tough, times arehard, but I think that if we canharness this ‘can-do’ approach, andaddress the issues we need to,Manchester is well-placed.”Mr Blackburn, 51, says it is ‘crucial’the 12-person LEP is relevant toand representative of the 10,000

businesses in Greater Manchester.“I think we have been pleased withthe engagement with the businesscommunity so far, and it is hugelyimportant that it continues. We hadmore than 90 applications for theLEP board, which is a fantasticfigure, so it’s another of ourchallenges - to galvanise the interestthat there has been in the LEP andto build on this.”He feels there is a good mix ofsector and size of business amongthe nine public sectorrepresentatives on the board.“We have big business likeThe Co-operative but also SMEsand companies in science,innovation and technology as wellas construction, property andtelecoms. Then there is the thirdsector as well.”

...as creators of economicdevelopment and growth

‘Across GreaterManchester I thinkthere are a number ofcommon challenges...’

P5

Mike BlackburnChairman, LEP

‘...if we can harnessthis ‘can-do’approach, Manchesteris well-placed...’

The Role of LEPs- by Chris Barry



The three public sectorrepresentatives are the Chairmanof AGMA - the Association ofGreater Manchester Authorities- Lord Peter Smith, and Vice ChairsSir Richard Leese, Cllr HowardSykes and Cllr Bob Bibby.

Mr Blackburn, who went to schoolon the Wirral and was brought upin Cumbria, has worked inManchester since 1990.

His involvement with MIDAS andthe Commission for New Economyhas whetted his appetite for hiscurrent role.

“I am not someone who getsinvolved on a board and then justsits there for the sake of it. I wantto be active and to challenge, tomake a difference,” he states.

Looking broadly across GreaterManchester, he says it is importantthat each of the 10 local boroughsrecognise their own assets, but alsoweaknesses, and that through theCombined Greater ManchesterAuthority - a new entity bringing the10 local councils together - a strongdialogue with the LEP isestablished.

“There are common, binding factorsacross the region - centred aroundskills and transport and housing,which can be addressed together.

“I think it’s important that there isunderstanding that there can onlybe one Kingsway Business Park,one MediaCity, but they arevaluable assets for the entireCity Region and can offer

employment to people acrossGreater Manchester and beyondand will therefore require goodtransport links.”

Mr Blackburn feels too that whilethere are such binding factors, the“uniqueness” of the 10 localauthority areas is no bad thing.

“Greater Manchester is greater thanthe sum of its parts,” he declares.

Unlike the regional developmentagencies - which received moneydirect from Whitehall - LEPs will notreceive any direct Governmentfunding, and instead have tocompete with others for fundingfrom sources such as the RegionalGrowth Fund.

The fact that the regions are livingin an era where there is lessavailable resource is evidenced bythe fact that last year alone theNorth West Development agencyhad a budget of nearly £300m butthe new fund will only have£1.4bn for the whole of the Englandover three years.

Despite submitting more than20 bids to the first round of RGF,Greater Manchester achieved onlylimited success, drawing criticismthat its submissions lacked obviousprivate sector leadership - and wereoverly complex.

So bearing this in mind, what canthe LEP do to ensure thatManchester fares better in thesecond round of bidding for nearly£1bn of RGF cash?

Mr Blackburn says: “We have stillnot had formal feedback on theRound One bids, but what I wouldsay is that the timescales werehugely tight, and getting privatesector involvement was alwaysgoing to be tough. We put a numberof proposals forward focused onjob creation.

“Lord Heseltine chair of theindependent panel assessing theRGF bids was very clear theywanted to see this. We took aparticular approach to our bids,where the funds would be reused,reinvested maybe three timesover a 10 year period. Maybe thatkind of thinking was not right forRound 1.”

Looking forward he says he isoptimistic of a better outcome:“For Round 2 we have alreadystarted engaging with theRegional Growth Panel abouthow they are going to assess the

next bids. What is clear is thatthis next round is going to includewhat they are calling ‘programmebids’ rather than just specificprojects and I think that is goodfor us, in terms of our plans forgrowth and job creation.Unsurprisingly the matter is at thetop of the agenda for the nextmeeting of the LEP next week.

“I think we are in better shape thanwe were before in terms of ourmodel, which I think better suits thissecond round.”

He said the private sector boardmembers would bring “a rigorousdimension” to the bidding process.While acknowledging there is “avery big job to do” Mr Blackburnsays he is excited about what theLEP will do.

“I am not a person to standback and I have a lot of passionfor Manchester and the North West.It’s all about making a difference- I have a lot of history here.”

P6

Private sector line-up of the LEP board is:• Keith Johnston - from law firm Addleshaw Goddard• Professor Dame Nancy Rothwell - President and

Vice Chancellor, University of Manchester• Neil McArthur - Chairman and Head of Innovation

at Talk Talk Technology• Ken Knott of Ask Developments• Peter Marks, Chief Executive of the Co-operative

Group• Alison Tumilty - Deputy Chief Executive and Finance

Director of Rathbone Training• Roger Milburn - Director of Ove Arup and Partners• Scott Fletcher, Chairman of ANS Group

‘...getting privatesector involvementwas always going tobe tough’



P7 TheBusinessDesk.com - Manchester City Region supplement


For the past decade themantra of regenerationchiefs has been thedevelopment of the‘knowledge economy’- prosperity built on ideasand innovation rather thanmetal bashing and massproduction.This will attract high value jobs,they say, generate revenue fromintellectual property rights andhopefully create whole newindustries to replace the onesthat have been lost over thepast 40 years.

It’s easiersaid thandone, with thehigh start-upcostsassociatedwith manypioneeringideas creatingfundingproblems andrequiring

perseverance and tenacity on thepart of investors. But there are signsthat Manchester is starting to benefitin this area, reaping rewards fromideas that have grown out of the

close association between theuniversities and the city’s hospitals.These ideas have led to the creationof new companies and attracteddirect foreign investment.

These advances have also

prompted Manchester CityCouncil to work on the ‘corridor’initiative which will seek toconsolidate and build upon thehealthcare and educational assetswhich line Oxford Road, south ofthe city centre.

The flagship project on thistwo-mile stretch will be the formerRoyal Eye Hospital site- adjacent to the Central ManchesterUniversity Hospitals campus- which should be open for businessas a centre for biotech andmedical technology companiestowards the end of next year.

The council expects the site tocreate 450 high value jobs and add£61m to the city’s economy. Clinicaltrials group ICON, which alreadyhas a base at nearby ManchesterScience Park (MSP), has beenpencilled in as the anchor tenant.Manchester property groupBruntwood is developing the siteand MSP will manage it.

Jane Davies, MSP’s chief executive,believes the project will offerbiotech companies somethingunique and spearhead the futuregrowth of the sector in Manchester.

“The key thing is its location on theNHS campus,” she said. “For some

companies that’s a tremendousadvantage. It will be the first timecompanies will be able to sit cheekby jowl with the clinicians deliveringthe healthcare. So if you’re in thatsector it’s the only place to be.”

A similar plan has been devised inWythenshawe where the enterprisezone that is intended to attractbusiness to a new Airport Citydevelopment will be extended toincorporate Wythenshawe Hospitalwhich has expertise in the treatmentof heart and lung-related illnesses.

Former AstraZeneca scientist Dr.Steve Little, one of Davies’ tenantsat Manchester Science Park, is agood example of how pioneeringtechnology can create skilled jobs,attract investment and develop anew manufacturing base.

He started DxS with Dr DavidWhitcombe at the University of

‘...there are signsthat Manchester isstarting to benefit inthis area...’

P8

‘...a good example ofhow pioneeringtechnology can createskilled jobs...’

The Future of the Regional Economy

Gene technology success at the University of Manchester’s Core Technology Facility.

Jane DaviesChief Executive,

Manchester Science Park

- by James Graham



P9

Manchester’s Core TechnologyFacility just off Oxford Road onGrafton Street in 2001. Spurredby advances made through theHuman Genome Project, whichenabled the biotech industry to

measure genes and gene variationsto indicate the best treatments forcertain conditions, they starteddeveloping kits that make it easierfor doctors to prescribe the mosteffective treatments for variousforms of cancer.

The businessattractedventurecapitalinvestmentfrom NVMPrivate Equityand was soldin September2009 toGermangroup Qiagen

in a deal which valued it at £80m.Since then staff numbers havedoubled to 150.

The growth of DxS, and severalother firms, has led to a thrivingmolecular diagnostics sector in thecity. The other large player isWythenshawe-based Gen-Probe,a US-owned company whichacquired Tepnel Life Sciences in2009 for £93m and turned it into itsEuropean headquarters. Thecompany now bills itself as thelargest standalone moleculardiagnostics company in the world.

There is also Myconostica - aUniversity of Manchester spin-outbased at the Core TechnologyFacility - and AIM-listed Epistem,which emerged from the university’sPaterson Institute for CancerResearch. It carries out researchfor the large pharmaceutical firmsto see how effective drugs in

development are in treatingparticular diseases.

“Particularly because of Tepneland DxS the region has emergedwith real strength and depth inmolecular diagnostics which is justabout the hottest area in biotech,”said Dr Little.“If I was going to set up anothermolecular diagnostics firm in theUK I’d be coming to Manchester.There’s an awful lot of talent inManchester but five years ago therewas little experience. But now withus and Gen-Probe, there’s a lot ofexperience and if you want tofind experienced staff this is whereyou would come. We’d struggleto compete with Boston or SanFransisco but in Europe this isthe place.”But it’s not just the medical firmsthat are leading the way. Anothertenant at the Core TechnologyFacility is Nanoco which hascornered the market for quantumdots - an obscure material that hashuge potential in a range ofconsumer applicances.The dots are tiny fluorescentparticles of semiconductor materialwhich have the ability to emit light.They are in demand by the makersof liquid crystal displays forcomputers, TVs and phonesbecause they consume less powerthan existing systems.The company has just opened itsfirst commercial manufacturingfacility at The Heath Business andTechnical Park, on the site of anICI research centre in Runcorn,which has enabled the company toscale-up production of quantumdots from milligrams to its firstkilograms. The business hasrivals in the US such as Nanosysand QD Vision but it is the onlyfirm producing quantum dots onsuch a scale and free of heavymetals such as cadmium.The Aim-listed firm is now lookingat sites for a factory that wouldenable it to push production fromseveral kilograms a month to around150kg a year with a market valueof some $100m, or £60m. “TheNorth West is very good for usbecause it was the birth place ofthe chemical industry in the UK,”said chief executive MichaelEdelman. “ICI was part of that and

Runcorn was the epicentre for ICIdevelopment.”Daniel Varney, a partner atPannone, said: “With the drive toincrease manufacturing in the UK,companies which have goodproducts should see opportunities.IT is tipped to be a growth sectorand green technology is also wellfavoured, especially with morefocus on the reduction of carbonfootprints and the savings availableto those who take it seriously.Although a lot of competition in aquickly developing industrymeans selecting the rightinvestment is difficult.

“We’ve also seen significant interestin outsourcing companies,especially those which provideservices to the public sector, eventhose with a community benefit tothem, for example training theunemployed to provide the services.Given the budget cuts publicauthorities face, any service thatthey can outsource to make it morecost effective clearly provides anopportunity for the private sector.”

‘...bills itself as thelargest standalonemolecular diagnosticscompany in the world’

‘The North West is verygood for us because itwas the birth place ofthe chemical industry’

Science and innovation are key toeconomic growth.

Dr. Steve LittleChief Executive,

DxS



P10 TheBusinessDesk.com - Manchester City Region supplement


In the months after Britainwas plunged into a full-blown recession followingthe banking crisis, muchwas made by GreaterManchester’s civic leadersof the area’s resilience,its sound economicfundamentals and itsinnate advantages overcompetitor city regions.There may have been an elementof hubris to their assessment - cityleaders generally talk up theirterritory both at home and abroad,and it is something at whichManchester has excelled - butgenerally their assessment appearsto have stood the test of time.

Of course, the city region was notisolated from the devastationcaused to the economy by thebanking crisis.

In property, for instance,consultancy firm CBRE estimatesthat the value of commercialproperty dipped by 44% inManchester from the market’speak in August 2007 to its troughin September 2009. Londonexperienced a similar dip, butprices in the capital have surgedback by more than 20% whereasin Manchester prices have onlyedged up by around 3%.

Similarly, financial and professional

services firms - the growthengine of the city region’s economyfor most of the preceding decade- suddenly found themselvesembarking upon wave after waveof redundancies in order to cut

their clothmoreaccordinglyas thelucrativemarket forcorporatefinance workdried up.

Privateequity-backed

buyouts fell from a peak of £2.3bnin 2007 to just £270m in 2009,according to the Centre forManagement Buy-Out Research.Although the figure rebounded to£1.5bn last year, £955m of thatrelated to a single deal - the saleof Handforth-based Pets at Hometo KKR.

In the case of law firm Halliwells,partners found that there wasn’tenough cloth left to cover itsliabilities, leading to a spectacularbust last year. Yet the fact that itwas the only high-profilecasualty shows the resilience of

the city’s professional servicesoffer, while the keenness withwhich firms from outsideManchester swooped on variousparts of the business shows theregard in which the Manchestermarket is held.

John Ashcroft, chief executive ofthe city’s financial andprofessional services body

Pro.Manchester, said that thebusiness and professional servicessector is responsible for producingaround 25-30% of its total GrossValue Added (GVA).

He argues that city leaders such asSir Richard Leese and Sir HowardBernstein recognise that the sectoroffers the prospect of high-valuejobs growth needed if Manchesteris to benefit from a privatesector-led recovery.

‘...city leadersgenerally talk up theirterritory both at homeand abroad...’

P11

‘...the only high-profilecasualty shows theresilience of the city’sprofessional services’

Reasons to beCheerful What Sets Greater

Manchester Apart FromOther Regions

John AshcroftChief Executive,Pro.Manchester

MediaCityUK is set up to be a focal point for inward investment in the coming years.

- by Mike Fahy



P12

For instance, RBS chiefexecutive Stephen Hester lastmonth pledged to create around100 investment banking jobs inManchester, describing the citywhere it already employs 6,000staff as a “good location for thebank”.

Ashcroft said that RBS’s expansion,and Bank of New York Mellon’songoing development in the citywere a sign that Manchester hasan offer that is tailored to be anattractive alternative to the capital.

“OK, some of it is due to cost - officespace is much less expensive hereand there is an element of cheaperlabour costs.”

Yet it is the city’s ability to offer thetype of lifestyle, talent and skills thatsuch institutions require which ismore important than just costs.

For instance, Ashcroft pointed tothe links between Manchester’sprofessional communities and itshigher education institutions, whichhas led to Manchester BusinessSchool producing an MBA productthat offers the type of skills whichrelocating investment banks wouldrequire of its graduates.

Angie Robinson, chief executive ofinward investment agency MIDAS,said that it was also continuing tohold talks with major investmentbanks and other inward investorswho are a potential source of high-value employment to the area.

Following the demise of the NorthWest Regional DevelopmentAgency and the coalitiongovernment’s decision to set inwardinvestment policy at a national level,MIDAS has had to contend with

some majorchallenges.Its overheadshave beencut by around59% and ithas beenforced to losestaff, butRobinsonsaid that thishas been

done efficiently with marketing andother services being outsourced tothird-party providers.

“The result is that there are as manypeople working out in the field asthere ever have been,” she said.“We’ve put all of our resources intocustomer-facing activities.”

Robinson said that GreaterManchester has got “a fantasticproduct and we can compete withanywhere”.

“We’re not a capital city but we havea strong complimentary offer andit’s done very well.”

Indeed, even during the height ofthe recession GreaterManchester has secured morethan its fair share of inwardinvestment. In 2009, MIDAS

secured some 80- inwardinvestment projects that wereestimated to have created orsafeguarded some 4,735 jobs,while in 2010 it secured 94 projectscreating or safeguarding 4,959 jobs.

As a result, the agency will continueto play a central role in the‘Manchester family’ of economicorganisations, and will shareresponsibility for business growth,trade and inward investment withManchester Solutions.

Robinson, who also holds theinformal title of chief operating officerof the ‘Manchester family’, arguedthat MIDAS retained “some realcurrency out there in themarketplace” as a brand.

Angie RobinsonChief Executive,

MIDAS

‘...Greater Manchesterhas secured morethan its fair share ofinward investment’

‘Manchester istailored to be anattractive alternativeto the capital’

BBC Radio 4 broadcast live from the MediaCityUK audio studio.

Exterior - TheHeart MediaCityUK.



She also argued that the city regionhas a number of unique assets thather staff can offer to tempt firmslooking to move into the UK,whether this is the technology and

biosciences cluster being developedaround Oxford Road in the areanow branded Corridor Manchester,the burgeoning media empirespringing up at MediaCityUK atSalford Quays or the low-regulation,low-tax zone being set upspecifically to prise in inwardinvestment at the new Airport CityEnterprise Zone.

“There are plenty of options for usto show to clients - our job is tomake sure we put the right ones infront of the right customers.”

Bill Lister, who heads law firmPannone’s contentious media andintellectual property team, said thatPeel Group’s huge MediaCityUKsite remains a work in progress, buthe argued that activity was likely to

ramp up once the relocating BBCdepartments begin operating from

the site laterthis year.

“At themoment, alot of peopleare stillpositioningthemselvesand waiting tosee whatdevelops, but

there have been some arrivalsalready and they’re becomingincreasingly high-profile.”

ITV’s long-awaited decision to builda new production facility forCoronation Street on the oppositebank of the Ship Canal means thatthe area will soon enjoy the criticalmass that makes it easier to attractmedia giants from overseas, andLister believes that opportunitieswill eventually feed through to thecity’s professional community.

Other positive drivers for thecity region’s economy over thenext few years include the £1bnor so worth of investmentplanned by Manchester City’saffluent new owners to build aseries of world-class sportingfacilities in the area around theCity of Manchester Stadium, andthe £800m which theCo-operative Group is spendingon redeveloping the area aroundits new headquarters and itsexisting estate, which has beenbranded as NOMA.

There are even signs of life returningto the commercial property market,with accountancy firm KPMG’ssearch for a new Manchester base

likely to provide the pre-let that thewinning developer will need to kick-start the next wave of constructionprojects in the city centre.

Indeed, despite the recent fall incapital values, Manchester wasrecently identified as the onlyinvestment hotspot for retail,industrial and commercialoffice property outside of Londonby DTZ.

Its investment director Bruce Poizersaid that the city’s retail andindustrial markets are the onlytwo markets in the UK to becurrently rated as ‘Hot’ by the firm,and are estimated to beundervalued by 8% and 6%respectively. The commercialoffice sector in the city is also ratedas “Warm”.

Poizer said: "With forecast returnssupported by attractive yields andsolid rental growth prospects,Manchester offers a very attractivealternative market to London.”

P13

East Manchester will be transformed by a huge sports-led regeneration project driven byManchester City FC.

Bill Lister - Head ofPannone’s Media and

Intellectual Property Team

‘opportunities willfeed through to thecity’s professionalcommunity’

‘There are evensigns of life returningto the commercialproperty market...’

‘...the city region hasa number of uniqueassets to tempt firmsto move into the UK’



THE Greater ManchesterLocal EnterprisePartnership (LEP) shouldnot be seen as a cure-all forthe issues the city regionis facing but as “one cog ina much bigger wheel”.

That’s according to Baron Frankal,one of Manchester’s leadingeconomists, who was speakingat a roundtable discussion held byTheBusinessDesk.com inassociation with SantanderCorporate Banking and the lawfirm Pannone.

Mr Frankal conceded that theLEPs, introduced by the coalitionGovernment to replace regionaldevelopment agencies, will haveno money but stressed itsrelationship with other bodies willyield results.

“In isolation it’s worth nothing,” saidMr Frankal, director of economicstrategy at the Greater ManchesterCommission for the New Economy.

“But here in Greater Manchester,a city of three million people, wehave the combined authority, thechamber of commerce, and there’sgreat leadership. The LEP hassomething to add to that.”

Mr Frankal was addressingscepticism about the body, whichwill seek to lever in investment froma variety of sources, from severalpanelists who run their ownbusinesses. Fred Ellis, managingdirector at Openshaw-based ThosStorey Fabrications, which makessteel components such as vehiclechassis for dumper truck, diggerand bus manufacturers, said the

Can-do AttitudeWill Prevail City well-placed to thrive,

say business leaders

Round Table: Wednesday 11th May 2011

Attendees:Chris Barry - EditorTheBusinessDesk.com

Baron Frankal - Director ofEconomic Strategy at theGreater ManchesterCommission for the NewEconomy

Fred Ellis - Managing Directorat Openshaw-based ThosStorey Fabrications

Dan Wright - Chairman oftextiles and office furnituregroup Vision Support Services

Nicholas Dobson - SeniorPublic Sector Consultant atPannone

Chris Sharkey - RegionalDirector for Santander CorporateBanking

Rob Thompson, RelationshipDirector at Santander CorporateBanking

Brian Sloan - Head of Businessand Economic Policy at GreaterManchester Chamber ofCommerce

Tim Newns - Deputy ChiefExecutive at inward investmentbody MIDAS

John Ashcroft - ChiefExecutive of professionalservices lobbying groupPro.Manchester

Gareth Parry - EuropeanManaging Director of businessfinance firm ThinkSmart

P14

- by James Graham

‘...we have thecombined authority,the chamber ofcommerce, and there’sgreat leadership’



Government had chopped awaylayers of funding by introducing theLEPs. “The old regime worked. ThisGovernment has broken that up.”

Dan Wright, chairman of textilesand office furniture group VisionSupport Services, said he hadhad no contact with any publicsector regeneration bodies. “Weemploy 200 people with turnovershy of £50m and we’ve grownfrom £5m in six or seven years andwe’ve never had any interactionwith any of them.”

In a lively debate panelists tackledsubjects ranging from the future ofthe regional economy, the potentialfor international trade and thechallenge posed by poorly educatedand motivated workers.

Pannone’s Nicholas Dobson, seniorpublic sector consultant, stressedthe public sector was still worthworking with, even though he wassubmitting ”very keen bids” in thecurrent funding environment. “It’stough at the moment, but it’s a goodsector to be in in the longer term.”

Also present were: Chris Sharkey,regional director for SantanderCorporate Banking; Rob Thompson,relationship director at SantanderCorporate Banking; Brian Sloan,head of business and economicpolicy at Greater ManchesterChamber of Commerce; TimNewns, deputy chief executive atinward investment body MIDAS;John Ashcroft, chief executive ofprofessional services lobbyinggroup Pro.Manchester and Gareth

Parry, European managing directorof business finance firm ThinkSmart.

Mr Sloan said the city’s economywas facing pressure from higher

commodity prices and public sectorcuts which are affecting demand.But there has been an increase inexport orders, particularly to highgrowth economies outside theEuropean union such as Braziland India.

Mr Parry, who runs the European-arm of ThinkSmart, which suppliesfinance for SMEs and individualsthrough PC World and Curry’sstores, said there was caution inhis market place.

Much has been made of a revivalin manufacturing but Mr Ellisstressed it was still tough.Turnover at Thos Storey fell froma pre-recession high of £28m in2007 to £8.9m in 2009 after demandfor construction equipmentcollapsed. The business was forced

‘But there has been anincrease in exportorders, particularlyto high growtheconomies...’

P15

Growth from a lowbase is like wakingfrom a coma afterfalling from a cliff

Baron Frankal from New Economy, Tim Newns, depute chief executive from MIDASand Brian Sloan from Greater Manchester Chamber

‘The old regimeworked. ThisGovernment hasbroken that up.’

Chris Sharkey from Santander Corporate Banking (right) looks on as Dan Wright fromVSS makes a point



to lay off 170, or 60%, of its 290staff that year, but has since partiallyrecovered. Last year’s salestopped £15m and the firm tookon 55 people, taking its workforceup to 170.

John Ashcroft put the manufacturingrecovery into perspective by sayinggrowth from a low base was likewaking from a coma after fallingfrom a cliff. “You’re a long way downbut it’s a recovery of sorts,” he said.But Tim Newns stressed that currentconditions were still favourable forBritish exports and inwardinvestment. “The fact is the UK isrelatively cheap in terms of exportsand physical investment in propertyand infrastructure.”

Referring to high growth economiesRob Thompson at Santanderadded: “If we get North Westmanufacturers targeted towardsoverseas markets those businesseswill do well.” There was consensusabout the economy facing a ‘low

growth/no growth’ future but stillroom for optimism. “Manchesterhas fared better than other Northerncities,” said Mr Frankal, while ChrisSharkey at Santander said: “Thepicture is not quite as bad as you’re

led to believe. Confidence levelscompared to 12 months ago areprobably marginally higher.”

The panelists expressed concernabout the city’s skills base and the

poor attitude of some young people.Fred Ellis said workers at his factoryfrom Eastern Europe were oftenmore industrious than their Britishcounterparts. Dan Wright admittedthe apprenticeship schemes hiscompany had set up were “alldisasters” because of the attitudeand ability of the recruits.

“Why is that?” asked Chris Sharkey.“It’s harder now so people shouldbe hungrier.”

Gareth Parry said Manchester’scredentials as an international citywere underlined by the good rail links to London, Manchester Airport,

and most importantly the city’stalent pool, which meant hisbusiness was able to recruit nativeSpanish and Italian speakers.

Tim Newns said the city’s languagecapability was one of its ‘keydifferentiators’ and had led to majorrecent inward investment from AbuDhabi-based airline Etihad, whichis opening an international callcentre near Manchester Airport.

‘The fact is the UK isrelatively cheap interms of exports andphysical investmentin property andinfrastructure.’

‘...consensus aboutthe economy facing a‘low growth/no growth’future but still roomfor optimism.’

P16

‘...workers at hisfactory from EasternEurope often moreindustrious than theirBritish counterparts.’

Pannone’s Nicholas Dobson

Tim Newns (left) and Brian Sloan (right) listen to Fred Ellis from Thos Storey



Manchester City Region...Greater Manchester, as in other regional cities. Against a backdrop of continuing economic challenge, the Greater Manchester City region has plenty to cheer

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