The Midlands in the heart of the UK represents an important economic region for future growth. From 2011 to 2015, there were 880 foreign direct investment projects in the region alone. This represents a quarter of foreign direct investment into the UK according to the Regeneration Investment Organisation (RIO), which is part of UK Trade & Investment (UKTI). International companies are investing in the Midlands thanks to excellent transport links that include three international airports (East Midlands, Birmingham and Luton). There are also no less than 27 universities in the region that offer businesses a strong talent pool and resources.
Besides being an attractive destination for foreign investment, there are a number of other reasons that make the Midlands a high-potential hub for economic growth. According to the RIO, the Midlands’ growing economy contributes £222 billion annual in Gross Value Added (GVA). Home to more than 11.5 million people, the region also offers a young and skilled population. Approximately 24 per cent of the population is under 25 and 38.8 per cent of workers are in knowledge intensive sectors. A third of all manufacturing jobs are also in the Midlands. The region also outperforms the national export growth average with a total export value of £50 billion, which represents 16 per cent of all exports from the UK. In fact, exports grew by 38 percent from 2010 to 2013.
Midlands Engine represents the coming together of eleven Local Enterprise Partnerships to attract investment and promote development in the Midlands of England. The initiative represents 34 regeneration projects worth £15 billion. Projects include town centre revitalisation projects in Dudley, Daventry and Grantham as well as the development of business parks including the East Midlands Airport Business Park, the Loughborough Science and Enterprise Park and the Malvern Hills Science Park. They also include investment in economic corridors and zones such as the Advanced Manufacturing and Innovation Corridor in Telford, Northampton Waterside Enterprise Zone, Redditch Eastern Gateway, Western Growth Corridor in Lincolnshire, and Worcester Growth Corridor.
Announced in December 2015 and unveiled in March 2016, the Midlands Engine plans aims to make the region a driver for economic growth. The plan complements an economic and cultural renaissance that is already transforming the region. Its objectives include boosting productivity, increasing connectivity, attracting inward investment, and promoting regional tourism. Based on predicted growth rates for the UK, the plan could help create an estimated 300,000 jobs and contribute up to £34 billion to the economy over the next 15 years.
The Midlands Engine plan focuses on five themes – skills, innovation, transport, finance for business, and promoting the region as an ‘engine’ for growth. In terms of skills, the goal is to develop a comprehensive demand-led approach to skills development particularly in manufacturing and engineering. This will be achieved with greater collaboration and alignment of skills supports and providers. A review of best practice will also be completed to identify new and innovative ideas related to employment and skills development. There are also plans to develop a vision and strategy that will change transportation in the region through Midlands Connect Partnership, which is developing a regional strategy to drive the economy with improvements to transport. Midlands Engine will also involve new business supports.
To boost trade and investment, trade missions are planned to promote the Midlands Engine region. A senior inward investment visit will also be hosted. A selection of Midlands Engine regeneration projects was presented at the 2016MIPIM Convention, a leading property market event that brings together influential professionals and investors from around the world. There are also plans to build a regional business visitor and tourism offer. In terms of research and innovation, there are plans to build a stronger network of science parks in the region and develop a higher education forum. The Research Accelerator led by Midlands Innovation will also be further developed.
Plans include developing a region-wide fund that leverages the European Union’s Joint European Resource for Micro to Medium Enterprises (JEREMIE) programme. This new fund will improve access to financing in the Midlands.
Sources:
https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/529164/Midlands_Engine_Regeneration_Pitchbook.pdf
https://www.gov.uk/government/news/midlands-engine-fired-up-to-drive-34-billion-worth-of-productivity-and-growth
http://www.d2n2lep.org/growth/midlands-engine