Marketing Birmingham Commercial Partners Meeting - 26th September 2013 (HS2)
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Marketing Birmingham Commercial Partners Meeting - 26th September 2013 (HS2)
- 1. Marketing Birmingham Commercial Partners Meeting 26th September 2013marketingbirmingham.com
- 3. Agenda Welcome & Introductions Neil Rami, Chief Executive, Marketing Birmingham Paul Chapman, Director of Strategy, HS2 Ltd Sir Albert Bore, Leader, Birmingham City Council Questions
- 6. Attracting inward investment Sales Missions Business Catalyst Social Media Index Lead Generation Agents Potential to create over 3,000 jobs against target of 2,211 in 13/14
- 8. 80 potential projects in completion pipeline for 2013/14 2013/14 completed projects origin
- 9. Birmingham as UK gateway Expanding global networks - Connectivity - Trade development - FDI - Trade and consumer profile Positioning as a UK visitor hub - Regional affiliation programme - Domestic network (attract and disperse)
- 12. 80 potential projects in completion pipeline for 2013/14 Attracting overnight visitors Hotel RevPAR* comparison 2012 v 2013 * Revenue per available room
- 13. Visitor economy: funding the future Pressure on sources of public funding Requires a new partnership Needs to leverage new financial resources Private sector needs a new vehicle to create financial resources Proposing creation of an industry led, independent body... Tourism Business Improvement District for Birmingham & Solihull
- 14. What happens next? Industry consultation Oct 13 – March 14 Dedicated consultation process to gain views and develop proposals Ballot process April 2014 Requires majority yes vote based on voting businesses and rateable value Operational set up October 2014
- 15. Document Sub-headlinemarketingbirmingham.com BCC growth target – xx new jobs by 2020 GBS LEP - 100,000 new jobs by 2020 25,141 jobs (Direct & indirect jobs 2014 - 2020)
- 16. Paul Chapman, HS2 HS2, Director of Strategy marketingbirmingham.com
- 18. HS2 – A CATALYST FOR A HIGH SPEED BRITAIN 26 September 2013
- 19. Insert HS2 film
- 21. • Government and Network Rail are already investing £37 billion in railway schemes over the next 5 years • The roads budget is being tripled. By 2021 every capacity and congestion relief scheme on the Highways Agency books will have been built. • But that does not address the major capacity crunch that we face. We are already investing in new infrastructure:
- 22. The Need • Demand for long distance rail travel has doubled to 125 million a year in the past 15 years • The number of trains on the network has increased by 1.5 million • Network Rail has said by the mid-2020’s theWest Coast Main Line will be full • By 2030 on commuter services into London there will be 10 passengers standing for every 10 with seats • The position is no better in Leeds, Manchester or Birmingham with 7 people standing for every seat.
- 23. The Need • We need to act now to increase capacity for passengers and freight • It has been estimated that HS2 could take 500,000 lorries a year off our roads • The demand for rail freight is predicted to double over the next 20 years . New ports at Felixstowe, London Gateway and Liverpool 2 point to the unfulfilled demand. “HS2 will free up much-needed capacity on local and regional services across the north, easing overcrowding on commuter routes and taking the pressure off our motorways.” Mike Blackburn, BT North West Regional Director & Chairman of the Greater Manchester Local Enterprise Partnership
- 24. The Need • We need to act now to increase capacity for passengers and freight • It has been estimated that HS2 could take 500,000 lorries a year off our roads • The demand for rail freight is predicted to double over the next 20 years . New ports at Felixstowe, London Gateway and Liverpool 2 point to the unfulfilled demand. “HS2 will free up much-needed capacity on local and regional services across the north, easing overcrowding on commuter routes and taking the pressure off our motorways.” Mike Blackburn, BT North West Regional Director & Chairman of the Greater Manchester Local Enterprise Partnership
- 25. The Need The development of digital technology is stimulating demand “People need to be with people, it is at the root of human existence. We live in a real - not virtual - world, and connectivity is essential to us.” Stephen Gleave Chairman IBI Taylor Young
- 26. The Opportunity • The network will serve one in five of the UK’s population • Over 70% of jobs created will be outside London “The new high-speed links can create thousands of new jobs and boost regional growth, as well as providing a much-needed boost for our construction and manufacturing industries.” Frances O’Grady, TUC General Secretary
- 27. The Opportunity Joining the regional economies into one powerhouse with greater connectivity and access to a much wider labour pool will provide the fuel for the Engine for Growth Our education and skills strategy has initiatives for STEM subjects in schools, further and higher education and a programme of apprenticeships and internships.
- 29. TheTransformation • The released capacity from HS2 will allow a rethinking of how the integrated network performs • Network Rail report lists over 100 towns but more detailed work is needed. • There are opportunities for small tweaks to the existing network to unlock major gains.
- 30. TheTransformation • We can seize the opportunity to develop skills and create jobs • 400,000 jobs – Core Cities • 20,000 construction jobs for 10 years (GG21) • 3% of construction jobs likely to be apprenticeships (industry average) • HS2’s pipeline of work stretches 10+ years ahead, there are huge vocational training opportunities.
- 31. Capacity challenge facing the West Midlands • The heart of national rail network supporting long-distance, regional, local and freight services • Rail journeys have soared by 14% in the last year in our region • Significant capacity constraints and crowding issues exist – rail journeys have doubled in a decade inWM • Cross Birmingham connectivity is poor • Coventry and Birmingham in top four UK cities for rail growth • A conservative 32% patronage increase predicted by 2019/20 • Growth in long-distance passenger services will squeeze out Local Commuter Rail services
- 32. Benefits to the West Midlands • KPMG Study: when supported by existing rail network improvements HS2 would deliver 51,000 additional jobs • West Midlands benefits from £4.1Bn GVA benefits per annum • Reduced journey times/new connectivity generate inward investment
- 33. Local Connectivity benefits with HS2 • Linking the West Midlands to the HS2 network • Underpinning HS2’s potential to stimulate growth and future economic activity across the whole region. • Maximising released capacity on the conventional rail network. • Ensuring released capacity on the road network by transferring passenger and freight trips to rail and public transport links
- 34. Deputy Chair Sir Howard Bernstein, (CEO, Manchester City Council) Frances O’Grady (General Secretary TUC) Chair Lord Deighton KBE (Commercial Secretary to HMT) Sir John Rose (Ex-CEO Rolls Royce) Lorraine Baldry OBE (Chair of London Continental Railways Ltd & Inventa Partners Ltd) Alison Nimmo CBE (CEO Crown Estate) Professor Tony Venables (Professor of Economics at University of Oxford) Dr Pete Waterman OBE (Cheshire and Warrington LEP) Neale Coleman (Mayor’s adviser on Olympic legacy) Cllr Julie Dore (Labour Leader of Sheffield City Council) Sir Albert Bore (Labour Leader of Birmingham City Council) Cllr Matthew Colledge (Conservative Leader of Trafford Council) Steven Norris Businessman and Ex- Transport Minister Growth Taskforce Membership Ray O’Rourke (Chairman of Laing O’Rourke)
- 35. Theme 1: Better Connectivity • Maximising the connectivity benefits • Maximising the opportunities to business from better connectivity • The freight industry • Tourism
- 36. • Unlocking development potential • Aligning resources & policies • Attracting investment & funding Theme 2: Growth and Regeneration
- 37. • Supply chain benefits • Ensuring the readiness of the UK workforce • Alleviating the blight to businesses Theme 3: Construction
- 38. • Learning from UK and international experience of driving to economic growth from major transport projects • Utilising the experience and expertise of the membership • Working with other government departments and their agencies • Engaging with local authorities; business (incl. the LEPS); universities and FE colleges… • Seeking practical, affordable and deliverable options The how
- 39. Why the UK is investing in HS2
- 41. Sir Albert Bore Leader, Birmingham City Council marketingbirmingham.com
Editor's Notes
- Good morning & welcome Introduce self
- Introduce speakers and set the scene for the event: Firstly, an update on Marketing Birmingham’s operational activity from the past few months. Secondly, a detailed look at the case for and the next steps in developing HS2, clearly a topical issue and one that rouses strong passions. Pleased to have Paul Chapman, Director of Strategy from HS2 ltd with us this morning. Paul will be followed by Sir Albert Bore, leader of Birmingham City Council who will give us the city’s insight on HS2. Will then be a chance to ask questions of our speakers. Before I hand over to the main theme of the event I will take you through the highlights of what we’ve been up to since we last met.
- A hugely positive few months for the city, real sense of gathering momentum. Only need to look at the announcement s of recent months to sense the city is on a powerful trajectory: Birmingham attracted a 52% increase in foreign direct investment (FDI) projects in 2012/13 – against a national increase of 4%. This safeguarded and created over 4,000 local jobs, worth an estimated £174 million. Jaguar Land Rover this month announced a planned £1.5bn investment, creating 1,700 new jobs at its advanced manufacturing facility in Solihull. Birmingham was voted Best UK City by readers of leading travel title Group Leisure magazine, beating London, Liverpool and York. The success follows a near 40% increase in the number of passengers and coaches using Visit Birmingham’s ‘Meet and Greet’ service at the city’s popular Frankfurt Christmas Market. Over 100,000 cricket fans descended on Birmingham for the ICC Champions Trophy, which had a global viewing audience of 953 million. The city hosted hotly contested matches such as India v Pakistan and England v Australia, plus the final Peaky Blinders is an epic gangster drama set in the lawless streets of post-war Birmingham on the cusp of the 1920s. With parts of the series filmed at the Black Country Living Museum, Peaky Blinders is putting Birmingham and the wider region on the map as a film/ TV destination. The University of Birmingham has been named University of the Year according to The Times and The Sunday Times ‘Good University Guide 2014’, the most comprehensive guide to higher education in Britain. In August, Air India launched a new direct route between Birmingham Airport and Delhi. The new route will operate four times weekly, using the new Boeing 787-800 ‘Dreamliner’ aircraft. The West Midlands has moved into the fast lane in the international race for growth, with goods exports set to grow three times faster than Germany’s, according to the EY UK Goods Export Monitor. In isolation, any of these announcements is significant, taken together they give a clear picture of a city building impressive momentum. We know that Birmingham’s property market is generating more interest from overseas. Major deals in the first half of the year include the acquisitions of the Mills & Reeve office on Colmore Row, One Brindleyplace and Quayside Tower, which were all bought by foreign investors. One Brindleyplace was the first UK deal for a European investment club that had been looking at several other UK cities – showing how competitive Birmingham has become as an international investment location.
- Fitting that today we are in this fantastic building, the new Library of Birmingham. The media coverage from the opening of these magnificent facilities has placed the national and international spotlight firmly on the city and created a debate not just about the role of libraries in the twenty first century, but also a dialogue that is helping once again to position Birmingham as a confident city, that is forging it s own path in economic and cultural regeneration terms. There’s no doubt this is a facility we can be proud of as Brummies and it also one that will attract people from far afield to experience it for themselves. You may wish to reference the reaction of the site selectors recently to this building and their impressions of Birmingham. George Pretty said: “ Although I have visited Birmingham several times on business, before taking part in the tour last week, I was surprised to see the scale and pace of change playing out across the city. These are exciting times for Birmingham, driven by the passion, commitment and determination of its civic and business leadership. I have no doubt that Birmingham will continue to thrive as a world-class investment destination, affording expanded economic growth for its people.”
- Key points to make on this slide: The building momentum and profile of the city is helping in our efforts to land inward investment projects We are currently on target to exceed our original forecast for 13/14 in terms of job creation – currently forecasting the projects we are actively pursuing will yield over 3000 jobs in this financial year Encouragingly, they are coming from across our range of target sectors, with particular growth in life sciences, advanced manufacturing and business and professional services. Business Birmingham launched a new office space for investors . The 800 sq ft space in the Custard Factory will help attract eligible investors by providing free and discounted space as part of a wider support programme that also includes recruitment services; PR support; and legal, banking and accountancy advice. Increasingly, you, our commercial partners, are playing key roles in helping, advising and assisting inward investors and its great to see this activity now driving transactional business for many of our partners,
- Independent assessment and benchmark of the UK’s inward investment agencies and their online promotional activity, focusing on social media. Particularly in some of our target sectors, the ability to communicate across a range of channels is increasingly important - for example, much of the work we did in securing Asos the online fashion retailer focused on their recruitment processes and social media was a hugely important and cost effective tool in generating a field of talent. Its good to have others recognising our activity in this space
- Also worth highlighting the scope of our completed investment project s: Of the projects completed so far in 13/14, nearly 75 % have been foreign direct investment i.e. originating overseas. That’s an endorsement of our strategy in working with lead generation partners in key markets and our own targeting of business in those territories. Even more encouraging, more than three quarters of those projects are completely new investment into Birmingham, rather than expansion of existing businesses With a further 80 potential projects in our pipeline for 13/14 we’re working hard to ensure another strong year.
- Recent announcement of Air India route, which is already performing strongly, was a very positive step. They to long term economic growth remains in establishing greater connectivity, not just in the UK, where HS2 is so important, but right across the globe. Opportunity presented by runway extension and longer term development potential is significant but it is not a sliver bullet. In a competitive market place we need to demonstrate that Birmingham is a sound investment. Supporting the airport team in making business cases to secure new routes, working hard to position our product with business and travel trade and exploring opportunities to utilise Birmingham as a key gateway for the UK and international visitors. Working in key territories with Visit Britain, Visit England and UKTI to ensure Birmingham is seen as a viable alternative to London.
- The visitor economy remains a key driver of the city’s wider economy The Champions Trophy cricket has helped our profile in India for example, putting Birmingham in front of around 1 billion potential visitors Our profile as a food destination continues to grow, cemented by a raft of events and marketing opportunities over the summer months, not least of all through our Birmingyum campaign Also seen the Discovery Festival, which is still in full swing and the 4 Squares Festival a few weeks ago, all helping drive visitors into the city, staying in our hotels and spending money in our economy. Mentioned earlier our success in group travel awards, important section of the market, we’ve been focused on engaging trade effectively and helping them package the Birmingham offer, not just at a national level but also in China, Australia, the US and Japan. The city is also well placed this week to pick up an international accolade for its floral expertise and use of public spaces from Entente Florale, an international competition - we understand the results of which will be announced in the next couple of days.
- What impact is this activity having on the performance of our hotels? RevPAR – widely accepted metric to measure the performance of hotels and whilst there’s been a welcome uplift on the performance of the city’s hotels in 2013 compared to the previous 12 months, the reality is we still lag behind most other UK cities when we compare RevPAR figures. Number of reasons for this, not least of all the increased supply we’ve seen from new hotels coming into the market in the last few years. Arguably still over reliant on business visitors and conference and event visitors and there’s an increasing recognition that to achieve a step change in RevPAR and hotel performance will take a different way of doing things.
- Recognising the increasing pressure on public finances and the liklihood that monies for tourism promotion are unlikely t continue at current levels in the years to come, we’ve been working with the industry for the last 6 months to develop a proposal that will potentially create a new vehicle, a Tourism Business Improvement District for Birmingham & Solihull. A TBID would be industry led and independent – it would also give this sector a coherent and potentially powerful voice. It would be a new approach, but not a new idea – TBIDs are already well established in the USA. Proposing to work with a distinct group of hotels across Birmingham & Solihull to create a levy based mechanism that will generate funding for promotional activity – in much the same way as current BID’s operate. Many of you are part of existing geographic BIDs and will know that there is a structured consultation process to go through.
- We will be starting a formal consultation process in early October, where we will be consulting with all hotels likely to be involved. The proposal will undoubtedly evolve throughout this process. Depending on the outcome of the consultation process, there will be a ballot for all hotels who would be involved in April 2014 and if there is a majority yes vote, the TBID would be operational from October 2014. We are proposing that Marketing Birmingham is the delivery body for the TBID. It’s a complex process and one that will undoubtedly throw up a range of issues but we feel this is a worthwhile debate and one we need to have.
- Reference the LEP wide remit on Tourism. Reference the inward investment conversation? Putting into context how we can play our part and the value for money we offer in delivery terms, recognising the role that we can play in delivering against the LEP’s ambitions in terms of job creation, and indeed the role we can play at a national elvel. Unlike the previous administration the Coalition Government don’t have a long term jobs target. We are therefore using an OBR UK job forecast to 2017 from the 2012 Autumn Statement – projected this forward to 2020 MB jobs contribution to 2020 calculated by projecting 2014 – 2020 job targets. Forecasting that MB can be responsible for delivering 25% of the LEP’s job creation target.
- Video after this slide – hs2.mp4
- We want to do much more than average