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BUSINESS LEADERSHIP COUNCIL REPORT TO AGMA EXECUTIVE 18TH DECEMBER 2009 ON FINDINGS OF BLC SUB GROUP “RELATIONSHIP BETWEEN LOCAL AUTHORITIES AND LARGE DOMESTIC BUSINESSES” BUSINESS LEADERSHIP COUNCIL • Sub group of BLC was formed in April to identify the key needs of the “large domestic” businesses in the Greater Manchester Region and agree the methodology and timescale of the project. • During May & June, a questionnaire was produced for use during interviews between the BLC and Senior Managers of the selected businesses. MIDAS and the Commission for New Economy participated. • 44 businesses were identified and invited to participate in interviews conducted by BLC members who were accompanied by MIDAS Account Managers, who captured data and acted as Scribes. • • Of the 44 businesses invited, 26 took part in the survey during September and October. Interviews were face to face, with the same methodology and comprised narrative and objective scoring. BUSINESS LEADERSHIP COUNCIL CATEGORIES COVERED BY THE QUESTIONNAIRE:• People/Human Resource • Geography/Communication • Critical Mass/Scale • Skills/Education • New/Expanding Technologies • Funding • Social Policies/Liquidity of Labour Market BUSINESS LEADERSHIP COUNCIL QUANTITATIVE RESPONSES For each of the categories, respondents were asked to respond to three questions and “score” Greater Manchester in 1 – 5. The three questions asked were:1. How consistently does the MCR conform to your requirements? 2. How would you describe the city’s momentum in the last five years? 3. How does the MCR compare to other regions where your organisation is based? G & MCR performance at io n of op er ce Momentum Benchmark Fu nd in g Te ch no lo gi es un ic at io n rit ic al m as s/ sc al e os t ap hy /c om m eo gr C C es /e du ca tio n re so ur c of la bo ur fo r Sk i lls hu m an Li qu id ity Pe op le BUSINESS LEADERSHIP COUNCIL Survey responses 4.5 4 3.5 3 2.5 2 1.5 1 0.5 0 BUSINESS LEADERSHIP COUNCIL EXECUTIVE SUMMARY • Manchester is a good location to operate in and generally better than other national or international equivalents. The labour pool is good and recruitment/retention straightforward. The relatively unrestricted labour legislation means that the UK is a good place to operate versus most other EU markets. • Manchester continues to have an image problem that makes it tough to recruit some top talent for some key roles. This is more prevalent in the SE than internationally. • There are opportunities to improve skills, training and interface with academic institutions at all business entry points. • There are opportunities to improve traffic congestion, airport infrastructure and EastWest rail links. • There is also an opportunity for Manchester to lead in green issues. • A broader and sustained interface between Local Authorities and representatives of large business will enable and progress the city region to further improve as a great place to do business. • Companies have been attracted to the region for a multitude of reasons. Essentially, the Manchester City Region benefits from providing a suitable location with satisfactory infrastructure, a strong critical mass of people and talent and supply chain opportunities. BUSINESS LEADERSHIP COUNCIL KEY RECOMMENDATIONS – ACADEMIC & BUSINESS LINKS 1. Formal links should be established between senior representative leaders of large businesses and our regional Universities. These links should be used to facilitate:Business/academic awareness of knowledge transfer, innovation and research with business applications. Resources available in the region that might advance both business and University life. The transfer of students into business by encouraging Schools/Universities to develop syllabuses which include “soft” business skills training. Greater business involvement in internships and more vocational course structure. 2. Develop initiatives to retain larger numbers of top graduates in the region. During undergraduate years, link business with Universities to create a greater awareness of exciting graduate opportunities. Provide business/University links for access to top talent in key areas. We recommend a pilot post should be funded with strong deliverables to see how this business/academic interface can be improved. “The University of Manchester is incredibly important in projecting Manchester as a World class business location.” BUSINESS LEADERSHIP COUNCIL KEY RECOMMENDATIONS – MARKETING STRATEGY 3. Deploy a targeted Marketing Strategy aimed at young potential high achievers to sell Manchester as a great place to live and work. Focus on lifestyle choice, career progression, culture and exciting opportunities. Concentrate this campaign in the South East of England. We recommend that MIDAS/Marketing Manchester should propose a costed strategy to run a sustained marketing campaign to meet this recommendation. “Manchester compares favourably when compared to Athens, Paris and New York City when it comes to people and human resources.” “People still do have the perception that it’s grim up North.” BUSINESS LEADERSHIP COUNCIL KEY RECOMMENDATIONS – MORE FOCUSED FUNDING OF TRAINING FOR BUSINESS NEEDS 4. Publically funded skills training is currently funnelled through too many disparate regional/sector channels and is not sufficiently aligned with or marketed to the needs of large business. For business prosperity and individual growth, local and national Government should ensure that skills provision in the public sector is less competitive and more complimentary. It should clearly identify the needs of large business and explain clearly to business the resources available and how to access them. We recommend that the BLC “Skills” Working Group meets with the new Director of Employments Skills at the earliest opportunity to progress and that a representative of Large Domestic Business has a seat on this Board. “There is a shortage of engineering skills so a lot of French staff has moved over from the Grenoble paper operation.” “We have strong collaboration with colleges and have great apprenticeship programmes.” BUSINESS LEADERSHIP COUNCIL KEY RECOMMENDATIONS – GOVERNANCE AND COMMUNICATION 5. The professional interface between Local Authorities and representatives of large business is currently too personality dependent and could be improved by a broader, more formal base. We recommend that leading representatives of all main stakeholders (e.g. GMCC, CBI, AGMA Executive, MIDAS, BLC) brainstorm how this can be clarified, improved and make appropriate changes. “People are reliant upon going to key individuals in Manchester. There is a need to expand the route so that it does not just involve these people. Can energies be channelled more effectively?” “The role of the City Council should be to make the city attractive for big employers.” BUSINESS LEADERSHIP COUNCIL KEY RECOMMENDATIONS – GOVERNANCE AND COMMUNICATION 6. Improve awareness of what support and funding is available from local Government Agencies to business. We recommend that a senior appointment that will carry weight with key large business leaders is made to “account manage” the offering the local Government agencies make to regional private large business. It may be that this position is an “upgrade” within an existing agency. “The planning process was hard – we felt unloved.” BUSINESS LEADERSHIP COUNCIL KEY RECOMMENDATIONS – TRANSPORT 7. Provide greater clarity on the role of Manchester Airport:Focus on short haul, city to city business travel – engage with businesses to identify required European routes and then run alongside aspirational long haul routes. Focus on fast, efficient connections with long haul hub airports. Distinguish the needs of the regular “economy” business traveller from the holiday traveller. 8. 9. Reduce traffic congestion at peak times around M60/M62 Leeds/Manchester:By building fourth lanes/introducing share lanes. Encouraging a fast business-friendly East/West rail network to mirror M62. Further development of tram/urban rail network. Assisting innovative Travel to Work Policies. Continued investment in the “Manchester Hub” to ensure that this works effectively and integrate with National Public Transport. City Centre Congestion:Further explore traffic management improvements. Investment in cycle pathways into and around the city centre. 10. Taxis should be licensed through one Authority and minimum standards of cleanliness and driver knowledge encouraged so that the taxi services and drivers are advocates of our City region to visitors. “Transport issues in Manchester aren’t necessarily any different to those in other cities but as the second UK city, it should address them.” BUSINESS LEADERSHIP COUNCIL KEY RECOMMENDATIONS – INFRASTRUCTURE 11. Technology:The AGMA Authorities should decide whether to invest in upgrading digital technology using fibre optic cable to enable large scale, fast information transfer or whether to leave this to market forces. We recommend the Local Authority should interface with a few business technology leaders to clearly articulate what the business problems and opportunities are in the area of digital technology. A clear case needs to be made for exceptional investment in this area which demonstrates the quantifiable returns it will bring to business and the region. “Manchester will survive or die depending on its digital capabilities.” “Planning for the digital age should be an important part of any future planning.” BUSINESS LEADERSHIP COUNCIL KEY RECOMMENDATIONS – INFRASTRUCTURE 12. Environment & Energy:Engage with business to further develop sustained initiatives that will allow Manchester businesses to beat their competitors in all environmental aspects, including sustainable energy, carbon reductions and waste management. The Local Authorities are urged to take a stronger lead and be more supportive/interventionist in these areas. We recommend that the Environment Commission/Improvement and Efficiency Commission should have challenging objectives and deadlines to introduce proposals to make Greater Manchester Authorities more supportive/interventionist in environmental area. “Manchester should not be complacent compared with Germany, the US and Asia.” “Manchester is taking the lead in the low carbon theory but needs more sense of urgency.” “London is far ahead with the green agenda and forward thinking, although momentum has slowed in London too.” BUSINESS LEADERSHIP COUNCIL KEY RECOMMENDATIONS – MISCELLANEOUS 13. Short term investment in improving the quality and appearance in high profile public areas:Dereliction, litter, graffiti at point of entry. Cleanliness, chewing gum, litter in business areas. We recommend that the Local Authorities prioritise maintenance spending to high profile public areas and also protect the considerable investments made in public infrastructure in the last 20 years by ensuring they are maintained to high standards. “ We could do with something that welcomes you into the city. Need to make the city more aesthetically pleasing.” BUSINESS LEADERSHIP COUNCIL KEY RECOMMENDATIONS – MISCELLANEOUS 14. Manufacturing:Greater support and acknowledgement of the strong manufacturing industry in the AGMA region. We recommend that the Manufacturing Institute is promoted and supported as a vehicle to facilitate advanced manufacturing in Greater Manchester and that this Institute interacts more with large businesses to facilitate growth and share best practice. “Nobody knows that Trafford Park is the largest Industrial Park in Europe.” BUSINESS LEADERSHIP COUNCIL AND FINALLY ....... “Manchester undersells itself. It’s good enough to attract people with lifestyle selling.” “In Manchester you can make a difference.” “We have had experience of people with particular perceptions of Manchester that have never been here. Once in the city though ... They love it.” “The quality of life is staggeringly different.”