Wirral Economic Regeneration and Investment Framework

1
Wirral Economic Regeneration and Investment
Framework

• e 2005

2
Overview

• The Investment Framework
• The Evidence
• A Global Challenge
• The Strategy for Wirral
• Conclusions

3
The Brief

• economic regeneration strategy a complex mosaic
  of strategies, masterplans and studies
• purpose of the Framework was to re-examine
  current approaches, particularly against the
  objectives and priorities of external agencies
• Business Link, Federation of Small Businesses,
  Job Centre Plus, Learning and Skills Council,
  Northwest Development Agency, the Mersey
  Partnership and Chamber of Commerce - all
  consulted
• 110 local employers contacted with 30 completions
  of a Business Survey

4
What is it?

• it is a comprehensive analysis of local economic
  regeneration and investment, based upon an
  objective review of the strengths and weaknesses
  of the borough
• it examines the integration between the local
  economy and emerging economic and spatial policy
• it is based on the consideration of alternative
  strategies, identifying and signposting a new
  direction for policy makers in shaping the local
  economy
• it establishes objectives and priorities to
  confront the challenges that exist and set the
  agenda for regeneration in the borough

5
Strategic Context
Northern Way Growth Strategy
Regional Economic Strategy
City Region Development Programme
Wirral Investment Framework
Local Policies, Strategies and Masterplans
6
The Northern Way

• strengthening the Norths competitive advantage
  and what the North should be doing to accelerate,
  significantly, the rate of growth of its economy
• the 30bn challenge - enabling growth in the City
  Regions
• addressing worklessness and skills deficits
• raising knowledge / intellectual capacity
• enhanced enterprise and entrepreneurial activity
• secured investment in airports and ports
• improved connectivity between City Regions
• creation of truly Sustainable Communities
• projected marketing and image of the North across
  the world

7
How Competitive is the Wirral?

• total output of the Wirral economy is valued at
  around 2.7 billion - significant industrial
  activity
• GDP per head is lower than Merseyside, North West
  and some 58 lower than the UK average
• low stock of businesses and low start-ups
• skew towards low value and low skilled business
• uncompetitive businesses - above average share of
  employment in sectors that are slowing down with
  not enough employees covered by sectors growing
  at or above the national average
• some notable poor performers - food and drink,
  financial services, some manufacturing and
  construction, plus long term decline of
  shipbuilding

8
How Skilled is the Wirral?
9
How Productive is the Wirral?

• productivity is determined by people, capital and
  technology
• Wirral has
• skilled people who are exporting their skills
  elsewhere
• a capital base where 50 of its space is of pre
  70s vintage
• no apparent local access to technology base
• below average productivity both manufacturing
  and services

10
A Global Challenge

• exceptional times dont last!!!
• 2004 fastest world growth for 25 years
• now in cyclical downswing
• consensus is slowdown to trend
• risks remain significant
• India and China

11
UK Economic Output
Services
Manufacturing
Source Datastream
12
UK Key Forecast Growth Sectors
13
The Productivity Gap
14
The Regional Challenge

• a 98bn economy, which in recent years has
  outperformed the national average rate
• 150,000 jobs created since 2001, but many of
  these have been low paid, and often part-time
• output (GVA) is 12 lower than the national
  average - resulting in an output gap of 13bn
• 10bn is due to lower productivity (GVA per
  capita)
• 40 of the 10bn is accountable to business,
  professional and financial services

15
Prospects for Wirral

• competitive global marketplace in which UKs
  competitiveness will be to increasingly focus on
  innovation and value added activity
• Wirral economy not responding quickly enough to
  this agenda
• higher value added business / financial services
  are attracted elsewhere (Liverpool, Chester)
• skilled population is on the doorstep but dilemma
  exists that measures to up-skill may increase
  occupational mobility
• productivity differences reflect structural
  characteristics of the capital profile
  (particularly age of stock) of the business
  population

16
The Investment Framework

• focus on raising productivity and closing the
  gap
• retention of higher value jobs in the borough
• increase in added value of jobs in the borough
• innovation and enterprise
• skills and employment
• basic to higher level skills
• regeneration of deprived communities
• infrastructure
• future viability of existing portfolio of
  employment space
• availability of sites and premises for new
  investment

17
The Investment Framework

• sectors with potential for high growth and high
  value
• innovation and entrepreneurial dynamism
• raising skills levels and tackling deficiencies
• capital investment
• image and identity

18
Focus on Growth Sectors

• Zone A Concentration - More Jobs, Fewer
  Producers
• manufacture of medical, precision instruments
• manufacture of fabricated metal products
• manufacture of machinery and equipment
• manufacture of motor vehicles
• publishing, printing and recorded media
• health and social work
• Zone B Enlargement - More Producers, More Jobs
• manufacture of radio / communications equipment
• manufacture of chemicals and plastics
• telecommunications
• computer services and software

19
Innovation and Enterprise

• proactive engagement with existing businesses
• raising innovative capacity
• delivering support for new entrepreneurs
• local education programme to start-ups
• an outward looking approach to securing new
  business investments
• being speculative
• using assets and opportunities of the borough as
  a selling feature

20
Skills

• a generally well educated workforce BUT
• an economy that is skewed towards lower skilled
  and lower value enterprises
• competitive advantage of firms will increasingly
  be reliant on their knowledge capacity
• raising the innovative capacity of firms
• focus on attracting new higher value businesses
• ensuring that the demand and supply of skills is
  matched

21
Capital Investment

• productivity challenge linked to the capital
  profile of the borough, in particular the quality
  of the stock
• low rents and high yields symptom of the problem
• new development has contributed but the issue is
  one of scale and pace of new development, set
  against the historical legacy
• programme of acquisition, redevelopment,
  relocation and refurbishment where required
• Local Development Framework will consider
  allocations

22
Image and Identity

• the Wirral is an area of great and distinctive
  character
• natural and built environment
• but opportunities remain untapped in investment
  terms
• focus on development in the regeneration areas
  has perhaps missed some important opportunities
• future of the Docks and the Mersey Waterfront
• a radical re-think required as to its future use
• represents the best opportunity for new business
  growth and new residential opportunities

23
Conclusion

• DO NOTHING IS NOT AN OPTION
• raising productivity and enhancing
  competitiveness is the key challenge and
  therefore top priority
• capturing unique attributes of the borough to
  enhance the boroughs appeal as a place to live
  and visit will be an important part of the
  strategy
• assistance is required - public and private
  sectors

24
Contact Details

• Iain Jenkinson
• Associate
• Planning, Development and Regeneration
• GVA Grimley
• 81 Fountain Street
• Manchester
• M2 2EE
• 0870 900 8990
• iain.jenkinson_at_gvagrimley.co.uk