Local Industrial Strategy and the pursuit of inclusive growth

Mark Basnett Managing Director

• 10 years• 100 investments• £10bn invested• 24,000 additional jobs• 8,000 additional businesses

A Decade of Growth

And Yet……

Cheshire & Warrington, £29,338m Greater Manchester,

£63,673m

Lancashire, 30,821

North East ,£37,871m

Tees Va lley,£12,803m

Liverpool City Region, £30,858m

Cumbria,£11,852m

Humber,£18,378m

Leeds Ci ty Region,£66,468m

Sheffield Ci ty Region, £34,048m

York, North Yorkshire & East Riding, £24,337m

Size of Economy £m

Sheffield Ci ty Region£18,364

Tees Valley£19,111

North East £19,254

Humber£19,807

Liverpool Ci ty Region£20,125

Lancashire£20,754

York, North Yorkshire & East Riding£21,146

Leeds Ci ty Region£21,803

Greater Manchester£22,886

Cumbria£23,804

Cheshire & Warrington£31,848GVA per head

Sheffield Ci ty Region£27.0

York, North Yorkshire & East Riding£27.5

Lancashire£28.0

Leeds Ci ty Region£28.1

North East £28.5

Humber£28.9

Cumbria£29.1

Greater Manchester£29.3

Tees Valley£29.7

Liverpool Ci ty Region£30.0

Cheshire & Warrington£33.9GVA per hour worked

Northern Average, £29.0

Tees Valley53.8%

Liverpool City Region55.7%

North East56.4%

Humber57.2%

Sheffield Ci ty Region57.4%

Cheshire and Warrington58.8%

York, North Yorkshire and East Riding58.9%

Cumbria59.0%

Lancashire59.4%

Greater Manchester59.7%

Leeds Ci ty Region59.7%Employment Rate

(16+ population)

Northern Average, 58.2%

Liverpool City Region48.9%

North East51.1%

Tees Valley52.1%

Leeds Ci ty Region52.4%

Greater Manchester53.0%

Sheffield Ci ty Region55.9%

Lancashire56.75

Humber57.0%

Cheshire and Warrington58.2%

York, North Yorkshire and East Riding, 60.7%

Cumbria63.7%Employment Rate

(16-24 population)

Northern Average, 53.7%

Humber29.8%

Tees Valley30.1%

Liverpool City Region31.3%

Cumbria31.4%

Lancashire31.8%

North East32.2%

Sheffield Ci ty Region32.5%

Leeds Ci ty Region33.9%

Greater Manchester35.0%

York, North Yorkshire and East Riding, 38.6%

Cheshire and Warrington44.0%

Persons with NVQ4+(% of 16-64 population)

Tees Valley2.92%

Liverpool City Region2.99%

Greater Manchester3.55%

Leeds Ci ty Region3.58%

Sheffield Ci ty Region3.66%

Cheshire and Warrington3.99%

North East4.11%

York, North Yorkshire and East Riding, 4.18%

Cumbria4.34%

Humber4.45%

Lancashire5.07%

Persons with Trade Apprenticeships(% of 16-64 population)

Greater Manchester15.99%

Leeds Ci ty Region16.28%

York, North Yorkshire and East Riding, 16.42%

Humber17.01%

Cumbria17.15%

Sheffield Ci ty Region17.73%

Tees Valley17.82%

Cheshire and Warrington17.96%

North East18.81%

Lancashire18.93%

Liverpool City Region20.35%Persons with NVQ2 only

(% of 16-64 population)

Cheshire and Warrington5.86%

York, North Yorkshire and East Riding, 6.03%

Lancashire7.54%

Cumbria7.69%

Humber8.07%

Sheffield Ci ty Region8.56%

North East8.83%

Greater Manchester9.62%

Leeds Ci ty Region10.39%

Liverpool City Region11.29%

Tees Valley12.08%Persons with No Quals

(% of 16-64 population)

North East335.7

Tees Valley359.6

Liverpool City Region 366.2

Sheffield Ci ty Region401.5

Humber413.4

Lancashire448.2

Leeds Ci ty Region 468.2

Cumbria491.6

Greater Manchester 506.8

York, North Yorkshire and East Riding, 515.0

Cheshire & Warrington576.9

Northern Average, 439.9

Business Density Rate(per 10,000 16+ population)

• More Jobs• More Local People in Jobs• More Skills for business needs• More Apprenticeships• More Business Survival• More Business Growth

City Region Challenges

Local Industrial Strategy

Industrial Strategy: Grand ChallengesArtificial Intelligence“We will put the UK at the forefront of the artificial intelligence and data revolution”

Aging Society“We will harness the power of innovation to help meet the needs of an ageing society”

Clean Growth“We will maximise the opportunities for UK industry from the global shift to clean growth”

Future of Mobility“We will become a world leader in the way people, goods and service move”

Artificial Intelligence

Artificial IntelligenceOpportunities• Full Fibre “superspine” & global digital interchange • National AI Solutions Hub• World’s 1st “Living Hospital”• Digital inclusion trailblazer• 1 of only 6 UK 5G testbeds

World Class Companies • IBM Research

• SciTech Daresbury data centric cluster

• Shop Direct, Telefonica/O2, Unilever (global data centres & cybersecurity)

• SMEs include Evoke Creative, The Lead Agency, Lime Pictures, Ph.Creative, Red Ninja, vTime, e-health cluster

Key Facts • World leading capability in industrial application

of high performance & cognitive computing

• 3 transatlantic fibreoptic cable connections

• 4 Global Digital Exemplar Hospitals (most in UK)

• LCR digital/createch sector growth 3x faster than England avg over last 10 years; £1.3bn GVA, 11,000 jobs

World Class Facilities • UK’s most powerful industrial supercomputer at the national

Science & Innovation campus at Daresbury

• Unique STFC Hartree Centre colocation with IBM Watson

• Sensor City: one of world’s 1st sensor/IoT tech. incubators

• University of Liverpool is the UK’s leading Computer Sciences Dept., also at the heart of Knowledge Quarter Liverpool

• Baltic Triangle: coolest place to live in the UK (Times, 2017)

Clean Growth

Clean GrowthOpportunities • UK’s Renewable Energy Coast• Mersey Tidal Commission: Tidal Energy• Carbon Capture & Utilisation

• UK Hydrogen Production & Services Hub

• Centre for Modular Infrastructure Manufacturing

• Offshore Wind investment and development centre

World Class Companies • Orsted, ABB, Cadent, Drax, Innogy• Iberdrola, Clarke Energy, Mitsubishi Vestas• Cammell Laird, Peel Ports, BOC Linde• Inovyn, Bibby, Knauf, E-On, Ulemco, Stobart • Ansaldo Westinghouse, Wood, Office for Nuclear

Regulation, Ineos, Stiebel Eltron, Hutchinson

Key Facts • 1,500 businesses: 35,000 employees• £2bn GVA contribution per annum• £4.3bn investment in offshore windfarms• Globally significant location for offshore wind• Growing Low Carbon supply chain • First deployment of NextGen offshore turbines and

energy storage

World Class Facilities • Port of Liverpool Biomass Facility

• Europe’s largest Chlor Alkali Hydrogen facility• National Oceanography Centre, MTC, Knauf R&D• Stephenson Institute for Renewable Energy

• Nuclear AMRC, BRE Future Housing Centre

Future Mobility

Opportunities • Alstom Technology Centre for Hydrogen Rail• Global Logistics Hub for Northern UK and Ireland• UK Centre for Late Configuration Manufacturing

and Port Related Food/Processing Business • Global Cruise Liner Destination• Assembly & Development of Large Logistics Parks

World Class Companies • Peel Ports, Bibby Group, Cammell Laird, • Alstom, ACL, Maersk; MSC, CMA CGM, Stena Line• Unipart, ABP, NS Shipping, Transglobal Express• QVC, TJ Morris, Matalan, Amazon, B&M• Stobart Group, Abbey Group, Potter Logistics• Seacon Logistics, Warrant Group

Key Facts • 20,000 employees

• £1bn GVA contribution per annum• 35m people closer to Liverpool than Southern UK

Ports• Closest port to over 50% of UK manufacturing

• Most Central Port in the UK

World Class Facilities • Port of Liverpool; Manchester Ship Canal• Liverpool 2: Deep Water Container Facility• Liverpool John Lennon Airport• Cammel Laird Construction Hall, wet and dry docks • Mersey Gateway Bridge & Motorway network • Knowsley Industrial Park; St Helens Logistics• LJMU, Northern Logistics Academy; Port Academy

Future Mobility

Aging Society

Aging SocietyOpportunities • Global Centre for Infectious Disease Research

• European Capital for Biomanufacturing• Digital Health and MedTech Excellence• UK Centre for Clinical Trials and medicines

development

• Social Innovation Excellence

World Class Organisations• Industry – including Astra Zeneca, Seqirus, Allergan

Eli Lilly/Elanco, Bristol Myers Squibb, Mast Group• Universities - University of Liverpool, Liverpool John

Moores University, Liverpool School of Tropical Medicine

• NHS including - Alder Hey, Royal Liverpool, Walton, Clatterbridge, Mersey Care, Liverpool Women’s

• Royal College of Physicians

Key Facts • £4.4bn healthcare cluster

• >125,000 employees – >20% of the City Region’s workforce

• European capital of vaccine production• UK centre for healthcare professional training

World Class Facilities • Sci-Tech Daresbury & STFC Hartree Centre

• Knowledge Quarter, including Universities, NHS, Life Sciences Accelerator and Liverpool Science Park

• NIHR Clinical Research Facilities and resources

People & Skills

People & SkillsThe real productivity challenge for the City Region lies with our people…• The data shows that whilst they work hard,

there are too few in employment• Broadly, their skills levels are below average,

and wages track this• Schooling and skills outcomes for young people

are amongst the worst in the UK• The 2nd and 4th ‘poorest’ wards in the UK,

according to the Index of Multiple Deprivation, are within the City Region

• And they face significant health challenges and caring responsibilities – life expectancy for an adult male is 15 years below national average

Our Local Industrial Strategy must make this our primary Grand Challenge

Thank YouAny Questions?