The Black Country Competitiveness Barometer

Transcription

1 The Black Country Competitiveness Barometer November P a g e

2 Table of Contents Introduction... 2 Key Messages... 3 Economic Growth... 4 Business Country Business... 8 Business Stocks... 8 Business Size Business Births Business Deaths Business Confidence Driving Growth Sector Base Transformational Sectors Innovation Sector Intelligence Achieving Our Vision Industrial Policy Crime Introduction The Black Country Consortium s annual Competitiveness Barometer is one of a series produced by the Black Country Economic Intelligence Unit, the intelligence division of the Black Country Consortium Ltd, in order to stimulate evidence-based policy debate amongst Black Country partners. This 2013 edition focuses on the current economic outlook for the Black Country, highlighting key drivers of economic growth for the Sub-Region and is aligned to the Black Country Local Enterprise Partnership s priorities regarding the delivery of the Government s Industrial Policy. The findings outlined below highlight an overall weaker position of the Black Country in terms of its economic competitiveness relative to England and the wider UK, however there are signs of recovery in the Sub-Regional economy mirroring shoots of recovery seen nationally and globally which, locally, is largely being driven by the High Value Manufacturing sector. These findings should serve to strengthen resolve in the Black Country, to pursue the economic restructuring of the Sub-Region, which was embarked upon, with the publication of the Black Country Study and the innovative Joint Core Strategy for the Black Country as a whole. The analysis which supports these findings all recognise that areas like the Black Country not only require radical restructuring but also that this is a long term programme of action which requires 'staying power and commitment' without necessarily seeing significant change in the short term. The Strategic Economic Plan will serve as the main policy instrument that will look to foster this change in the short and medium term. 2 P a g e

3 Key Messages 3 P a g e

4 Economic Growth The UK economy has shown signs of recovery in 2013 The UK economy has shown signs of recovery in 2013 and grew by 0.7% in the second quarter of 2013, up from 0.3% in the first quarter of the year, according to revised figures from the Office for National Statistics (ONS). The figures mean that the economy has now recouped almost half of its total 7.2% contraction during the recession, with output remaining 3.3% below its prerecession peak. Figure 1. UK Gross Domestic Growth. Source: ONS. The Eurozone also grew by 0.3% in Q2 2013, emerging from an 18 month recession. The French and German core fared particularly well. Other major developed economies (including the UK) are also posting positive Gross Domestic Product figures. The USA and Japan both recorded growth of around 0.5% in Q2. Figure 2. EU Gross Domestic Product. Source: Trading Economics. 4 P a g e

5 Relative recovery in the UK was also seen in the number of Foreign Direct Investments (FDI). There were 1,559 FDI projects in the UK in , 11% up on An associated 170,096 were created or safeguarded in the last year, 51% up on The UK s share of global FDI inflows was 4.6% in 2012, up from 3.1% in 2011 and 3.6% in The UK reversed the global trend in in terms of FDI inflows and stock values with a 22% increase, compared to substantial declines in other economies. Figure 3. UK FDI Projects 2012/13. Source: UKTI. The Black Country recorded four Foreign Direct Investment successes in , and has a healthy pipeline going forward into A total of 1,185 jobs were created and safeguarded during the period saw a slight decrease in total job numbers, from 1,214 in to 1,185. However the average number of jobs per project has more than doubled since last year, with the number of new jobs created increasing by 30%. Figure 4. Black Country FDI Projects Job Numbers Source: UKTI. 5 P a g e

6 As in the previous year, projects in came from all three geographic markets, with one project each from the Americas and Europe the Middle East & Africa (EMEA), and two projects from Asia Pacific. Figure 5. UK FDI Projects Source Markets Source: UKTI. Inward investment successes for included distribution, manufacturing and R&D operation types. In contrast to the previous year, there were no services operations amongst the projects. The three manufacturing projects accounted for 73% of total jobs in Figure 6. UK FDI Projects Project Type Source: UKTI. The UK automotive sector has also shown signs of recovery with the August Society of Motor Manufacturers and Traders highlighting growth in automotive sector employment through the second quarter of At the end of June, the Office for National Statistics Labour Force survey reported 143,000 direct jobs in the automotive sector, up 5,000 in just three months and back to levels last seen at the end of Growth in employment has been coupled with a growth in vehicle production. Figure 7. UK Vehicle Production. Source: SMMT. 6 P a g e

7 Regionally, the West Midlands is showing further expansion in business activity with growth in the private sector economy during 2013 according to the Purchasing Managers Index. The latest rise (July 2013) in output was the fastest in 16 months. Business activity in the West Midlands private sector increased for the third month running during July. The rate of expansion was substantial, having accelerated to the sharpest since March Purchasing Managers Index The West Midlands Purchasing Managers Index provides insight into the private sector economy by tracking variables such as output, new orders, employment and prices across key sectors. A recent report by Forrest Research (2013) asserted that using the PMI (instead of Regional Accounts data) as a proxy shows strong growth in the West Midlands, which is better than the national outturn for much of a recent period analysed. However, the rate of expansion was below that registered across the UK as a whole. Data showed that the service sector was the main driver of activity growth. Higher output was supported by another rise in new business levels during July Growth of new work was recorded for nine successive months, with the latest increase at a similar marked pace to that seen in June. Improved client confidence, stronger demand conditions and new product launches were reported by panellists to have underpinned growth of new orders during the latest survey period. The latest estimates show that total Gross Value Added (GVA) increased by 2.3% in England , compared to 2.1% in the Black Country, after being below the national average for much of the last decade. Measured over the last decade total GVA has increased by 27.9% in the Black Country compared to 47.8% in England. These growth rates demonstrate a convergence in total GVA growth rates between the Black Country and England. Figure 8. Total Gross Value Added Growth Rates Source: ONS. 7 P a g e

8 Business Country Business There are spatial concentrations of high business density across the Black Country Business Stocks The latest figures released by the Office for National Statistics shows that the Black Country business base has grown over the last year ( ). There was a rise in business numbers across the four Black Country Local Authority areas, following the trend in the West Midlands and England. Business stock currently stands at 34,135 1 in the Sub-Region. Geography Dudley 8,950 9,010 10,940 10,875 10,510 10,260 10,345 Sandwell 7,440 7,365 8,815 8,875 8,465 8,080 8,375 Walsall 6,790 6,820 8,005 7,910 7,590 7,380 7,595 Wolverhampton 6,200 6,345 8,225 8,180 8,055 7,730 7,820 Black Country 29,380 29,540 35,985 35,840 34,620 33,450 34,135 West Midlands 174, , , , , , ,985 England 1,758,270 1,788,670 2,244,285 2,237,555 2,183,845 2,161,190 2,218,245 Figure 9. Business Stock by year. Source: ONS, Nomis. Currently there are 29.8 businesses per 1,000 population in the Black Country, compared to 36.9 and 40.7 per 10,000 population in the West Midlands and England respectively. This means there are currently gaps of 7.1 and 10.9 businesses per 1,000 population with the regional and national economy. The data shows that the Black Country has been below the West Midlands and England on this measure over the last 6 years. Figure 10. Business Density. Source: ONS, Nomis There are spatial concentrations of high business density across the Black Country. The areas highlighted in blue are above the 40.7 business density average and those areas highlighted in red are below the national average. The map below shows that the Black Country strategic corridors are broadly areas of above average business density, however a vast amount of the Sub-Region is underperforming in comparison to England. 1 Business stock is based on snapshot taken at one point in each year by the ONS. 8 P a g e

9 Figure 11. Black Country Business Density. Source: ONS, Nomis. The chart below highlights business density across the Black Country, England and the West Midlands over the last 6 years. Figure 12. Business Density Trend. Source: ONS, Nomis. 9 P a g e

10 Business Size 78.6% (26,275) of businesses in the Black Country are micro companies hiring less than 10 people, compared to 83% nationally and 82.1% in the West Midlands. Proportionally more companies in the Sub-Region are Small & Medium sized Enterprises (SMEs) compared to England and the West Midlands. 20.9% of firms (7,000) in the Black Country are SMEs compared to 16.5% in England and 17.4% in the West Midlands. Large firms employing 250+ employees account for 0.5% of the business base in the Black Country, consistent with both the regional and national proportions. Figure 13. Business by Size. Source: ONS, Nomis. A total of 91% (30,130) of businesses in the Black Country are in either the transformational or enabling sectors. There is a total of 15,495 micro-transformational businesses, this is 7,330 more than the total micro-enabling stock. 27.6% of enabling businesses are SMEs, compared to 16.9% for transformational sectors. Figure 14. Business by Size and Sector. Source: ONS, Nomis. 10 P a g e

11 Business Births The Black Country is currently ranked 19 th of 39 LEP areas in terms of business birth rates. The current rate in the Sub-Region is 10.6 business births per 100 active enterprises, compared to 14.6 for 1 st place London and 8.3 for Cumbria which is ranked 39 th. The average LEP business birth rate is 10.5 meaning the Black Country rate is 0.1 above the LEP average. Figure 15. Black Country Business Birth Rate. Source: ONS. 11 P a g e

12 Business Deaths The Black Country Sub-Region is ranked 21 st in terms of business deaths per 100 active enterprises with a rate of 9.6 business closures per 100 active enterprises. The rate is higher for the Lancashire LEP area (11.1) which is ranked 1 st of the 39 LEPs and above Oxfordshire which ranked 39 th with a rate of 8.5. The average closure rate is 9.7 per LEP area meaning the Black Country is 0.1 below the LEP average. Figure 16. Black Country Business Death Rate. Source: ONS. 12 P a g e

13 Business Confidence 2 Business confidence is relatively high across the Black Country Business confidence is relatively high across the Black Country with almost one half of all businesses expecting their turnover to increase in the coming two years. Around one quarter of businesses expect turnover to remain static, with just one in ten predicting a decline. Notably there was a further 16% that could not comment on where their turnover was likely to be over this time. Increase 47% Stay the same 26% Decrease 10% Don't Know 16% Base: 1433 Figure 17. Turnover Expectations. Source: Black Country Business Survey. The Business Survey found that confidence that turnover will increase rises by business size, thus the greater the number of employees the business has, the greater the level of confidence. A significantly greater proportion of businesses with 10 or more employees claim they expect turnover to increase compared to those with 9 employees or less. Medium/large companies have greatest confidence overall. Micro (0-9) Small (10-49) Medium/Large (50+) Decrease 12% 6% 3% Stay the same 27% 25% 14% Increase 44% 54% 67% Don't Know 16% 15% 16% Base: 1, Figure 18. Turnover Expectations (by businesses size). Source: Black Country Business Survey. Analysis of the same results by broad industrial sector shows that confidence in increasing turnover is greatest amongst businesses operating within the professional, scientific and technical sector; 56% of businesses in this sector expect turnover to increase in the next two years. By comparison, only 36% of those in the retail sector and just 33% of those in motor trades indicate the same level of confidence. For those businesses that expect their turnover to increase, the majority (51%) suggest this is due to them obtaining new business within their existing home markets. 17% of businesses have developed new products, expanded their workforce (16%) and/or entered into a new home market (16%), leading to their confidence that turnover will increase in the coming two years. The ability to enter into a new domestic market appears to be linked to business size; just 14% of micro businesses give this as a reason for expectations of increasing turnover compared to 18% of small businesses and 33% of medium/large businesses. Overall, approaching a third (32%) of businesses indicated other reasons for their confidence in increasing turnover. Many simply suggest that they expect the UK and wider economy to improve and therefore business to pick up. 2 Statistics quoted in this section are taken from the Black Country Business Survey (2013) unless otherwise stated. 13 P a g e

14 51% 32% 17% 16% 16% 11% 7% 6% New business within existing domestic market Developed new product/ service Expanded workforce Entered new domestic market Expanded facilities Have accessed finance/ funding for expansion Increased business through International trade Other Base: 677 Figure 19. Reasons for expected increase in turnover. Source: Black Country Business Survey. Overall, around a third of businesses indicated other reasons for their confidence in increasing turnover; many suggest that they expect the UK and wider economy to improve and therefore business to pick up. The reasons given for static or declining turnover in the coming 24 months most typically focus on the economic climate and the limitations within the market place for growth. 42% indicate market limitations/competition as a barrier to growth; this figure rises to 46% for businesses based in Sandwell and 50% in Dudley. 17% of businesses suggest they have their own personal reasons for not growing their business, rising to 22% for businesses based in Walsall. Fewer than one in ten state access to finance, limiting risk, managing previous growth, lack of suitable premises and/or staying below the VAT threshold as reasons and barriers to growth. 42% 42% 17% 8% 5% 4% 2% 2% Market limitations/ competition Personal reasons Lack of finance for expansion Limit exposure to risk Just undergone period of growth Lack of land/ premises to expand Want to stay below VAT threshold Other Base: 526 Figure 20. Reasons for static or declining turnover. Source: Black Country Business Survey. 14 P a g e

15 Driving Growth Sector Base The number of workforce jobs increased by 3, The latest available sectoral data shows retail, manufacturing and construction account for 36.2% (12,120) of the Black Country business base. The business sector make up in the Black Country is different to England due to the concentration of manufacturing businesses in the Sub-Region. Industry Business Base Sector % of % of BC Base England Base Accommodation & food services 2, % 6.2% Agriculture, forestry & fishing 85 0,3% 4.4% Arts, entertainment, recreation & other services 2, % 7.1% Business administration & support services 2, % 7.2% Construction 3, % 10.7% Education % 2.6% Financial & insurance % 2.7% Health 2, % 5.6% Information & communication 1, % 6.6% Manufacturing 3, % 5.3% Mining, quarrying & utilities % 0.5% Motor trades 1, % 3.0% Professional, scientific & technical 2, % 14.3% Property % 3.6% Public administration & defence % 0.9% Retail 4, % 11.0% Transport & storage 1, % 3.2% Wholesale 2, % 5.0% Total 33, % 100.0% Figure 21. Black Country Business Base by sector. Source: ONS, Nomis. 15 P a g e

16 Manufacturing and retail are also significantly important to the Sub-Region for employment and, in addition to health, account for 40.4% of current workforce jobs in the Black Country. The number of workforce jobs increased by 0.7% (3,200) in the Black Country, England and West Midlands. Industry Employment Base Sector as % BC Base Sector as a % of England Base Accommodation & food services 18, % 6.8% Agriculture, forestry & fishing 0 0.0% 0.7% Arts, entertainment, recreation & other services 15, % 4.4% Business administration & support services 35, % 8.5% Construction 21, % 4.4% Education 40, % 9.6% Financial & insurance 8,800 2% 3.9% Health 63, % 13% Information & 7, % 4.1% communication Manufacturing 65, % 8.5% Mining, quarrying & utilities 9, % 1.2% Motor trades 11, % 1.7% Professional, scientific & technical 15, % 7.7% Property 6, % 1.6% Public administration & defence 18, % 4.8% Retail 45, % 10.2% Transport & storage 22, % 4.6% Wholesale 27, % 4.2% Total 432, ,0% 100.0% Figure 22. Black Country Business Base by sector. Source: ONS, Nomis. 16 P a g e

17 Transformational Sectors The Black Country has the largest concentration of jobs in manufacturing of any UK city Recent research commissioned by the Black Country Consortium highlights the importance of the transformational and enabling sectors to economic growth in the Black Country economy. Currently the five transformational sectors (advanced manufacturing, building technologies, business services, environmental technologies and transport technologies) contribute 10.1bn in GVA and 248,000 jobs to the Black Country. GVA in these sectors are forecasted to increase to 24.6bn and jobs to 317,000 in Figure 23. Black Country Transformation Sectors output. Source: Black Country Consortium. The transformational sectors are also important to the the Black Country business base and account for an estimated 56% (18,730) of the Sub-Regions enterprises. Figure 24. Black Country Transformational Sector Business Base. Source: Nomis. The High Value Manufacturing cluster 3 remains one of the key drivers of current and future economic opportunities in the Black Country. The Black Country has the largest concentration of jobs in manufacturing of any UK city. Jaguar Land Rover s (JLR) UK engine centre of excellence is located in 3 Advanced Manufacturing, Environmental Technologies and Transport Technologies. 17 P a g e

18 our Enterprise Zone (one of the most successful in the UK). JLR s plan to grow from 2bn in 2013 to 2.75bn in 2014 and their commitment to just-in-time manufacturing means that any supply chain companies located close to them will have a unique competitive advantage. Furthermore, the aerospace sector is growing in the Black Country by 6.8% a year. 20% of UK aerospace output is in the Black Country. Black Country companies manufacture and test aerospace actuation systems and aerospace fluid transmission systems. No other companies in the UK make this family of components 4. Figure 25. Black Country Aerospace Companies. Source: Midlands Aerospace Alliance. Growth in the knowledge intensive roles is important to growth prospects of the Sub-Regional economy and increasing median income by the 3,430 per person required to reach the 26,462 UK average. Currently gross median income stands at 23,032 for Black Country residents. There are currently 154,300 Black Country residents employed in knowledge intensive roles, this equates to 33.1% of the working age population (466,100). Comparatively the figure is 39.3% of residents in the West Midlands and 44.2% in England. Over the last year the number of knowledge workers in the Black Country fell by 4,000. Knowledge workers are defined as people who are employed as Managers or Senior Officials, in Professional Occupations or in Associate Professional & Technical roles. 4 Black Country Consortium, Black Country Aerospace, P a g e

19 Innovation According to the Organisation for Economic Co-operation Development the capability to innovate and to bring innovation successfully to market will be a crucial determinant of global competitiveness, highlighting the importance of innovation to economic growth in the Black Country. From 2010 to m was invested by the Technology Strategy Board (TSB) into the Black Country. The Black Country is one of the worst performing LEPs in terms of the amount of money secured from the TSB. Only 5 areas (those highlighted in red) are below the Sub-Region in terms of money secured. There is an 158m gap with London which is the area that has secured the most funding and a 10m gap compared to neighbouring Greater Birmingham & Solihull LEP and 36m less than the amount given to Coventry & Warwickshire. Figure 26. Technology Strategy Board LEP funding. Source: Technology Strategy Board. 19 P a g e

20 Technology Strategy Board data shows that Large, Collaborative Research & Development (CRD) and Knowledge Transfer Partnership (KTP) projects were the three largest beneficiaries of the funding over the last three years. Funding Streams Black Country Companies Number Project: Sum Offer Grant % of total CRD , % Digital Easy fundraising Limited 1 21,249 Manufacturing Thompson Friction Welding Limited 3 202,671 Sustainability Adas UK Limited 5 377,762 Technology Carillion LGS Limited 1 111,296 Goodrich Actuation Systems Transport 1 27,080 Limited Fast Track 2 66, % Manufacturing Robinson Brothers Limited 1 36,938 SSBV Space & Ground Systems Space 1 30,000 Limited Feasibility Study 8 115, % Energy Somers Forge Limited 2 35,702 Manufacturing Anglo Recycling Technology Ltd 2 34,435 Space SSBV Space and Ground systems Limited 2 19,921 Technology SERE-Tech Innovation Limited 2 25,806 Innovation Voucher 2 13, % TSB Programmes AP Architecture Ltd 2 13,000 KTP 9 531, % TSB Programmes University of Wolverhampton 9 531,998 Large 1 934, % Goodrich Actuation Systems Transport 1 934,838 Limited SMART 5 479, % TSB Programmes JPM Parry & Associates Limited 4 428,929 TSB Programmes Dudley Surgical Appliances Limited 1 50,439 Black Country LEP 38 2,882, % Figure 27. Technology Strategy Board Project funding. Source: Technology Strategy Board. In addition, a recent survey commissioned by the automotive council reveals at least 3bn per annum of potential new purchasing opportunity for UK-based manufacturing enterprise. The report sets out key areas where there are opportunities for repatriation; this includes Black Country specialist areas such as alloy wheels, trim and pressings. This report further highlights the importance of the Black Country LEP working with the Technology Strategy Board in order to increase innovation across the Sub-Region. Another important aspect of enhancing innovation in the Black Country relates to the process of Smart Specialisation. Smart Specialisation is a process which seeks to build greater rigour and consistency of approach into the development of proposals for public investment in research, development and innovation. Research consultancy firm Regeneris is currently undertaking work on smart specialisation in the Black Country in order to enhance Smart Specialisation knowledge in the Sub-Region. 20 P a g e

21 Sector Intelligence The Black Country Economic Intelligence Unit (EIU) now has access to the IBIS World sector intelligence portal. The information available comes in the form of in-depth industry based reports. These industry reports give an in depth overview of various industries highlighting: Industry performance Products & Markets (including supply chain) Competitive Landscape Major Companies Operating Conditions Key Statistics Jargon & Glossary The intelligence reports will be interrogated by the Black Country EIU in order to further develop an understanding of Black Country industrial strengths. One key facet of the reports is the heat maps which are based on sector business concentration at regional level. The heat map is from a report based on the light metal casting industry and shows the West Midlands as an area that has high levels of business concentration in light metal industry. Further examination (using ONS data) shows that 45% of the West Midlands light metal casting industry business base is located in the Black Country, with the Sub-Region also accounting for 17% of the England total. Figure 28. Business Concentration in Light Metal Casting. Source: IBIS World. Jaguar Land Rover recently announced that an additional 1,700 jobs are being created at their Advanced Manufacturing Facility in Solihull. Black Country businesses produce many component parts for JLR resulting in more opportunities for local manufacturers to expand production and recruit new staff. The current ratio of supply chain jobs created in proportion to those at the main plant stand at four people to every role according to JLR. 21 P a g e

22 The impact of JLR s investment further illustrates the importance of garnering supply chain activities for the Sub-Region. IBIS World intelligence provides key information about economic drivers and relationships between industries in the supply chain. Figure 29. Motor Vehicle Manufacturing Supply Chain. Source: IBIS World. The latest Strategic Companies Barometer shows that there are 622 strategic companies in the Black Country. A brief analysis of IBIS World industrial reports show that some of these companies are classed as major players in their respective industries based on their market share of revenue. Some of these companies are shown in the table below. Company Sector Market Share bn Assa Abloy Limited Lock & Hinge Manufacturing 12% 0.83 Carillion Road & Motorway Construction 5.6% 5.3 Castings PLC Iron Casting 18.9% 0.65 Hadley Industries Holdings Limited Basic Steel Processing 12.4% 0.63 JBR Recovery Ltd Precious Metals Production 5.9% 1.3 Kennametal UK Ltd Machine Tool Wholesaling 2.7% 1.7 Timken UK Ltd Bearing & Gear Manufacturing 1.8% 1.3 Figure 30. Major Companies by Sector Source: IBIS World. 22 P a g e

23 Achieving Our Vision The Black Country LEP s Strategic Economic Plan sets out the strategies and programmes for the Sub- Region to realise its 30 year vision Industrial Policy Earlier this year the Government set out its Industrial Strategy that included 5 core areas: sectors, technologies, access to finance, skills and procurement. The Department for Business Innovation and Skills stated that government and industry should plan and work together for the long term to deal with genuine market failures in these areas and build the confidence to invest. The strategy includes a sector focus with industry and government partnering to develop joint strategies for 11 sectors 5. Each of these strategies assesses how technologies, access to finance, skills and procurement can be used to develop the economic potential of particular sectors. As a result, action is being taken to address barriers to growth and make UK business more competitive across a range of key markets. The five overarching facets of the five core areas are highlighted below: Sectors - develop strategic partnerships with industry (primarily 11 sectors). Technology - support emerging technologies (measures such as catapult centres). Access to Finance - improve access to finance for businesses (business bank for SMEs). Skills - work with business to help develop skills that businesses will need (Employer Ownership Pilot). Procurement - publish government contracts to provide confidence to business investment. The industrial strategy is a key facet to economic growth in the UK and the Sub-Region as it aims to grow sectors that are important to the Black Country. Therefore it is imperative the industry is able to capture opportunities arising from the various industrial strategies in addition to communicating effectively with Government and stakeholders both inside and outside the Black Country Sub-Region. The Black Country LEP s Strategic Economic Plan will set out the strategies and programmes for the Sub-Region to realise it s 30 year vision, including those measures highlighted in Government s Industrial Policy and Growth Dashboard. Further details on the five overarching themes are highlighted directly below. 5 Aerospace; agricultural technologies; automotive; construction; information economy; international education; life sciences; nuclear; offshore wind; oil and gas and professional and business services. 23 P a g e

24 1. Develop strategic partnerships with industry 2. Support emerging technologies 3. Improve access to finance for businesses 4. Work with business to help develop skills that businesses will need 5. Publish government contracts to provide confidence to business investment The government is developing long-term strategic partnerships with industry sectors where we can have the most impact on growth. The 7 current catapult centres ( 200m through TSB) specialise in: Increased the supply of finance to lenders through the Funding for Lending scheme Aerospace High Value Manufacturing Helped businesses access bank finance by providing guarantees through the Enterprise Finance Guarantee scheme Agricultural technologies Cell Therapy Invested in venture capital funds for early stage, high growth businesses through Enterprise Capital Funds Automotive Offshore Renewable Energy Stimulated new non-bank finance through the Business Finance Partnership Construction Satellite Applications We re also setting up a Business Bank to address long-standing gaps in finance for small and mid-sized businesses Information Economy Connected Digital Economy International Education Future Cities Life sciences - see also Transport Systems the one-year-on update Nuclear Offshore wind The 2 new catapult centres will specialise in: Oil and Gas Energy systems Professional and Business Services Diagnostics for stratified medicine Employer Ownership Pilot Making businesses more aware of opportunities Apprenticeships We have been working with business to work out what capabilities (including skills, products and technologies) are needed in the supply chain e.g. tunneling In November 2012 we also published capability assessments on building information modelling (BIM) and renal care. 8 technologies: Big data: the world creates 2.5 quintillion bytes of data, equivalent to over 150,000 ipads worth of information, daily, with 90% of all information produced in the past 2 years. This data deluge will transform scientific enquiry and many industries too, the UK can lead in this and the energy-efficient computing revolution Satellites: both building satellites and analysing and using the data from satellites Robots and other autonomous systems: applications range from assisted living for disabled people to nuclear decommissioning Synthetic biology: engineering genes to help heal, feed and fuel the UK Regenerative medicine: new medical techniques for repairing and replacing damaged human tissue Agricultural technologies which can put the UK at the forefront of the next green revolution in sustainably increasing agricultural production Advanced materials: materials designed to have targeted properties will enable technological advances in sectors from aerospace to construction Energy storage: technologies which, like batteries, store energy when it is produced so that it can be used when it is needed. This will be one of the most important applications of advanced materials enabling the UK to gain from the global move to new energy sources Figure 31. Black Country Industrial Policy Initiatives. Source: Black Country Consortium. 24 P a g e

25 The Black Country s contribution to the Department of Business Innovation and Skill s Growth Dashboard will be highlighted through the Performance Management Framework which measures progress in the Black Country across a number of socio-economic indicators. The Plan for Growth: 4 Ambitions and 16 Measurable Growth Benchmarks Ambition 1. - To create the most competitive tax system in the G20 A The lowest corporate tax rate in the G7 and among the lowest in the G20 B The best location for corporate headquarters in Europe C A simpler, more certain tax system Ambition 2. - To make the UK one of the best places in Europe to start, finance and grow a business D Improving the UK s ranking in major international indices of competitiveness E A lower domestic regulatory burden F More finance for start-ups and business expansion G An increase in the proportion of planning applications approved and dealt with on Ambition 3. - To encourage investment and exports as a route to a more balanced economy H Ensure the UK remains one of the top destinations for foreign direct investment (FDI) I An increase in exports to key target markets J An increase in private sector employment, especially in regions outside London and K Increased investment in low carbon technologies Ambition 4. - To create a more educated workforce that is the most flexible in Europe L Supporting more apprenticeships than any previous government M Home to more of the world s top universities than any other country except the USA N An increase in the participation of year olds in employment or learning O Narrowing the educational attainment gap, allowing everyone to meet their potential P Lowest burdens from employment regulation in the EU Figure 32. Black Country Growth Measures. Source: Black Country Consortium. 25 P a g e

26 Crime The latest available data shows that economic crimes 6 account for 25.8% (2,164) of all crimes committed in the Black Country. August 2013 data shows that 8,374 crimes were committed in the Sub-Region, which is 36.5% of the West Midlands policing area. The spread of economic crimes across the Sub-Region is relatively low although there are area concentrated spots around the strategic centres especially in Walsall and Wolverhampton. Long term trends show that crime levels have been falling across the Black Country however it will be important for the Black Country LEP to continue to form relationships with the police in order to create a safer environment for business activity. Figure 33. Black Country Crime. Source: West Midlands Police. 6 Burglary, Other Theft, Robbery and Shoplifting 26 P a g e

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