1. The State of
the region -
2014

2.  Changes since the last presentation in 2010:
 Recession and recovery
 From AWM to LEPs
 The Regional Observatory
 Drivers of recovery – the private sector takes the lead:
 Upsurge in inward investment
 Key investment sites
 Dynamic community of fast growth SMEs
 Thriving visitor economy
 Some familiar themes:
 Skill gaps and shortages
 Unemployment and economic exclusion
 LEP employment and skills priorities
Agenda

3. Recession and recovery

4. Public v private sector

5.  The six LEPs cover Coventry & Warwickshire, Greater Birmingham & Solihull, the
Black Country, the Marches, Stoke & Staffordshire and Worcestershire
 They were set up following the publication of the Government’s 2010 white
paper ‘local growth: realising every place’s potential’
 While each has its own approach they have common goals:
 Support for existing businesses and new inward investors
 Establishment of key development/employment sites
 Targeted support for priority sectors
 Creating new (predominantly private sector) job opportunities in their area
From AWM to LEPs

6.  2004-2011 – an operating unit of AWM, the former Regional Development Agency
 Acquired by Marketing Birmingham in July 2011 key objectives are to:
 Inform the company’s Visit Birmingham (leisure tourism), Meet Birmingham
(business tourism, conferences and exhibitions) and Business Birmingham
(inward investment) propositions
 Offer a commercial research consultancy service focusing on:
• High quality research data and policy advice
• Rigorous, objective approach
• Market intelligence – key sectors and industries, forecasting,
labour and skills analysis
• Primary research - large scale surveys, in-depth case studies,
focus groups
The Regional Observatory

7. Recent projects
Client Objectives Feedback
Birmingham
Airport
Assess the commercial viability of
a new direct service to China
‘The data we received was robust, reliable and of high quality and provided the crucial
first step in the business case. Birmingham Airport would recommend the work of the
Regional Observatory.’ Tom Screen, Aviation Development & Strategy Manager
Creative City
Partnership
Identify priorities for investment
in Birmingham’s arts, cultural and
creative sector
'The Regional Observatory played a key role in shaping and delivering research that will
inform our thinking and subsequent action in relation to Creative City.’ Val Birchall,
Assistant Director of Culture Commissioning, Birmingham City Council
Careers Service Produce a brochure to inform
advisers on investment priorities
and associated job opportunities
‘Careers advisers in the field have cited the Observatory’s brochure as invaluable in
helping customers identify new opportunities and the skills needed to secure them’ Unus
Goga, Regional Contract Manager, National Careers Service
University
College
Birmingham
Market intelligence to inform the
development of new
apprenticeship programmes
‘The specialist market intelligence the Regional Observatory provided us with has played
a key role in informing our business expansion plans. We were impressed with the
team’s flexible, proactive approach which ensured we got the high quality, insightful
analysis we needed’ Paul Kitchen. Business Manager. University College Birmingham
Economic
Inclusion Panel
Assess the impact of the recession
on the employment prospects of
local communities
‘We have chosen to commission the Regional Observatory because of its knowledge,
expertise and reputation for producing high quality, objective research which will be
invaluable in informing the debate on policy priorities.’ Jackie Mould, Director of Strategic
Partnerships, Birmingham City Council

8. Inward investment levels are
recovering strongly

9. Inward investment has risen to record
levels in Birmingham

10.  Focus on sectors and niches where research indicates the area has
competitive advantage:
 Automotive manufacturing supply chain (e.g. low carbon vehicles)
 Financial services (including fund management, investment and retail
banking and auxiliary financial services)
 Business and professional services (e.g. UK/regional HQs)
 Computer services & software (e.g. outsourced operations)
 Digital media, games development, social media
 Life sciences (e.g. medical technologies, R&D, clinical trials)
 Food & drink process, production and distribution
 Environmental technologies (e.g. low carbon energy, recycling, renewable
technologies)
Focused FDI strategy for
Greater Birmingham

11. Key sites are being developed
to attract investors

12. Growth is being underpinned by
a group of dynamic SMEs

13. SMEs active in export markets
are the most dynamic

14. The tourism sector has continued to
grow during the recession

15. Skill shortages are a perennial
problem

16.  Between 2007 and 2012:
 Numbers unemployed rose by nearly 50%
 Numbers in employment fell by 100,000
 Local authority wards with more than 25% on benefits doubled
 Long term unemployment nearly doubled
 New and growing problems include:
 Under- employment – involuntary part time employment has more than
doubled
 In-work poverty – while a decade ago the majority in poverty were in
workless families it is now those in work who make up the majority
The recession has taken its
toll on communities

17.  Align careers and employability provision in schools more closely with
employer needs
 Align post secondary education and training provision more closely with
employer needs
 Improve and embed apprenticeship uptake more widely
 Support the development of skills within the existing workforce
 Support the workless into work
LEP employment and skills priorities

18. Questions/discussion