Building Our Future Liverpool City Region Growth Strategy 2016 - Liverpool LEP
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2016 Building Our Future Liverpool City Region Growth Strategy www.liverpoollep.org www.liverpoolcityregion-ca.gov.uk
Liverpool City Region Growth Strategy
Foreword
Liverpool City Region faces a unique opportunity to deliver greater
prosperity for residents for generations to come. This is our single,
sustainable strategy to realise our ambitions for economic growth
over the next 25 years.
This document outlines our workers are equipped with the
Strategy for Growth, a strategy right skills; and by Place, we
which encompasses the entire mean making the most of our
City Region, acknowledging the physical and cultural assets
unique strengths and assets of and our infrastructure.
each of our local authority areas
and communities. Our ambition is to deliver this
Strategy and to translate it into
The timing of this document is effective action by working
crucial because it follows our collaboratively and inclusively.
Devolution Agreement with
Government, a milestone which Only together can we say with
means we are better able to shape confidence that we have the
our own future. assets, the talent and the ambition
to deliver our vision to create a truly
The time to face our challenges and global and competitive City Region.
to seize our opportunities is therefore
now. We have, for the first time in Everyone can play their part
a generation, the right powers and in realising our bold ambitions.
the right governance to deliver real We would like to thank all partners
and lasting change. Not only are and stakeholders who have
we stronger together, we are also supported the development of
stronger when we make decisions this Strategy and who will help
locally together. us make it happen.
Whilst the focus of this Strategy Produced by
Liverpool City Region LEP
is economic growth, it is important on behalf of Liverpool City Region
to remember that economic growth Combined Authority
is not, in itself, an end. It is rather the
key factor in ensuring that all of our
residents have the opportunity for a
decent quality of life for themselves
and for their children and their
children’s children.
Action for us will be built upon
the three pillars of this Strategy:
Productivity, People and Place.
Cover image © Gareth Jones
By Productivity, we mean focusing
on businesses where the opportunity
for growth is greatest; by People, Mayor Joe Anderson OBE Robert Hough CBE Asif Hamid
Chair, Liverpool City Region Chair, Liverpool City Region Interim Chair, Liverpool City Region
we mean ensuring residents and Combined Authority Local Enterprise Partnership Local Enterprise Partnership
2
contents
Contents
1 Introduction 04
2 Vision and Delivery
- Making the Most of Devolution 08
3 Our Strategic Approach
- Building on our Assets 10
- Focusing on our growth sectors 12
- Responding to our challenges 14
- Realising our potential 15
4 Productivity
- Enterprise 16
The Three Queen’s - Growth sectors 20
weekend attracted
5 People
an economic spend of 46
- Improving our Skills and Talent
£29.1m in Liverpool 6 Place
and a further £3.8m - Improving our Physical 52
in Sefton and Wirral and Digital Connectivity
with audiences of - Place Making in our City Region 60
1.2 million. 7 Summary 63
© cunard3queens.com
3
Liverpool City Region Growth Strategy
1 Introduction
Since the turn of the millennium, Liverpool City Region
has undergone a remarkable renaissance with a rising
population and economic growth, a burgeoning of high
growth companies and a vibrant cultural resurgence.
£28.3bn We are at a pivotal moment in Liverpool City Region’s history.
economy. In May 2017, our residents elect a City Region Mayor who will
take control of newly devolved budgets – ranging across transport,
skills, infrastructure, business support, innovation, planning and
housing – as part of our historic Devolution Agreement.
1.5m Devolution provides us with an outstanding physical environment,
population. unprecedented opportunity to more listed buildings of architectural
take control of our economic future, distinction than any other UK city
to build on recent success and to outside London, and a waterfront
address the challenges before us. recognised by UNESCO as a World
Heritage Site.
The City Region’s diversity,
its local characteristics and assets We have significant strengths
are a major strength. By bringing and huge potential in innovative
those assets together and working and globally-competitive sectors:
collaboratively, that strength is Advanced Manufacturing,
multiplied many times over. Digital and Creative, Financial
and Professional Services,
969,000 Our City Region economy is Health and Life Sciences,
working age
worth £28.3 billion GVA, with Low Carbon Energy, Maritime
population.
output increasing by 8.4% in and Logistics, and the
the five years up to 2014. Visitor Economy.
We also have the second highest This Strategy will capitalise on
incidence of high-growth firms in
691,000 the country, second only
our strengths in these key sectors
to unlock growth, creating tens
residents in
to London. Our City Region is of thousands of new jobs and
employment.
internationally renowned with an new businesses.
598,000
jobs.
© Gareth Jones
4
INTRODUCTION
The focus of this strategy is economic growth.
This will be delivered by focusing on three growth pillars:
Productivity:
The first pillar to sustained economic growth is to maximise the
potential of our sector strengths and related assets and to focus
on starting and growing more successful businesses by promoting
innovations and entrepreneurial activity.
People:
The second pillar is to improve and increase skills, developing
existing talent and attracting new talent for sustainable growth.
Place:
The third pillar is to improve our transport, energy and digital
infrastructures, and protect and enhance our cultural and
environmental assets. This will improve quality of life for residents
and attract and retain investors, skilled workers and visitors who will
contribute to growth.
Despite our great strengths we This Strategy will take advantage
still face many challenges. of the opportunity presented by
devolution by providing the strategic
An historic skills gap, too few focus for the priorities and objectives
private sector jobs, high levels of the Single Investment Fund (SIF)
of worklessness and pockets of and future investment programmes.
concentrated poverty are the biggest
barriers to growth. The State of Liverpool City Region
Report: Making the Most of
We recognise the need to drive Devolution, published jointly in 2016
growth in an inclusive, integrated and by the University of Liverpool and
sustainable way, in line with wider Liverpool John Moores University has
socio-economic agendas. provided a detailed yet clear sighted
analysis of the City Region’s assets,
We will build on the powerful capabilities and opportunities for the
combination of private sector and future, and an invaluable platform
industry experts working alongside on which to build our Strategy. Its
public and third sector leaders which conclusion is simple and compelling:
has proven to be the formula for “Liverpool City Region has achieved
delivering dynamic and innovative a lot and there is a lot to build upon.
strategic approaches to enable With the right leadership, capacity
sustainable growth interventions and ambition, it could achieve even
in the City Region. more in the future”.
In line with the Devolution Deal, We have the assets, the heritage and
governance arrangements in the City talent to deliver our vision to create
Region have continued to strengthen a truly global and competitive City
and mature, with partners committed Region. This Strategy will help us
to joint working. make our vision a reality.
5
Liverpool City Region Growth Strategy
2 Vision and Delivery
Our Vision:
We will build on our core strengths and capacity for innovation to
create a truly global and competitive City Region at the heart of the
Northern Powerhouse.
Our Mission:
To start, attract and develop more businesses.
To nurture and grow our talent base.
To enhance and protect our distinctive quality of place.
To create more sustainable employment and high value jobs.
Our Guiding Principles:
1
Meaningful
Collaboration
5
Measurable 2
Delivery Local
knows
best
4 3
Added Value Form
follows
function
6
Meaningful collaboration: Through partnership working we can overcome issues and maximise opportunities for the greater benefit of the City Region. Local knows best: We know better than anyone our area’s challenges and opportunities and how to address them. It is up to us to make the most of this knowledge. Form follows function: We are not prescriptive about models and structures, we do what is best to provide effective leadership and deliver the best results for the City Region. Added value: The constituent parts of the City Region share a common economic geography and by aligning together we are stronger and more innovative. Measurable delivery: Translating the City Region’s needs, and our vision, into tangible activity on the ground is paramount. Delivery needs to be rapid, cost effective, integrated and sustainable. © Gareth Jones
Liverpool City Region Growth Strategy
Making the most of devolution
Our recent Devolution Deal means we have extended powers
and responsibilities which will enable us to drive growth.
© Gareth Jones
The Devolution Deal provides the They will also oversee the
levers through which the pillars of Liverpool City Region Single
our Strategy, Productivity, People Investment Fund – comprised
and Place, can be supported by largely of an annual £30m funding
the emerging Liverpool City Region allocation over 30 years.
governance structure: the Combined
Authority, City Region Mayor and The devolution journey is now
Local Enterprise Partnership (LEP). picking up pace. Strategically,
Liverpool City Region’s economic
From May 2017, the Combined future aligns closely with that of
Authority and a directly elected the Northern Powerhouse, of
City Region Mayor will receive which we are a fundamental part.
newly-devolved powers and
responsibilities to deliver growth The Northern Powerhouse
and manage public services at the initiative has expanded beyond
city-regional scale. The City Region transport to push for pan-Northern
Mayor will exercise powers over collaboration and integration in
strategic planning, supported by the skills and employment, trade and
creation of a Mayoral Development investment, industrial policy and
Corporation, a Single Statutory City innovation, and housing
Region Framework, and a Land and planning.
Commission and a Joint Assets
Board for economic assets; as well As a whole, devolution presents
as a devolved local transport budget. an unprecedented opportunity
to take greater control of
The Combined Authority will economic development at the
gain control over a devolved city regional scale.
budget for post-19 adult skills
funding from 2018/19 and will be This Strategy provides the
in a position to co-design future framework for the delivery of
employment support for devolution and achievement of long-
harder-to-help claimants. term sustainable economic growth.
8
Vision and Delivery – Making the most of devolution
What we will deliver:
The aspirations which have driven this Strategy are ambitious, far-reaching
and bold. Our proposed strategic interventions will lead to new jobs, new
opportunities and improved prosperity and quality of life right across the
Liverpool City Region.
We are committed Outcomes:
to implementation
of this Strategy PRODUCTIVITY PEOPLE
so that we can The creation of over 100,000 Falling unemployment
achieve these additional jobs in the Liverpool in the City Region, with the
outcomes at pace City Region by 2040. resident employment rate
and with scale. of the 16-plus population
A net increase of 20,000 businesses increased to 58% by 2025.
over the next 25 years, with an
increased diversity of business Population increase
ownership, including a doubling of by 83,000 to 1.6 million
the number of women owning and by 2040, with an additional
running businesses. 50,000 people coming to
live in the City Region.
The creation of an additional
£22 billion (2012 prices) in GVA PLACE
by 2040 so that it stands at
Increased demand for public
£50 billion.
services such as health and
education, with additional demand
Average productivity per
for public transport as well.
worker to increase by 56%
by 2040 to over £76,000.
Increased demand for housing
across the Liverpool City Region
A substantial increase in the number
and rising house prices in
of exporting businesses and the
response to that demand.
value of exports, plus a substantial
increase in the commercialisation
of research and development.
This document The key to implementation will be and investing in business to
articulates a clear the attraction and focused allocation create sustainable employment
vision, identifies of investment, with partners across and high value jobs, and to attract
long-term goals the City Region aligning their existing and capitalise on our existing
and sets out a resources to support the growth talent to grow our economy.
series of strategic pillars of Productivity, People and
challenges, Place. This resource will help The Single Investment Fund
opportunities leverage private sector and external commitment through the
and priorities. investment opportunities as they Devolution Deal creates an
become available. opportunity for an additional
£30million per year for 30 years.
Implementation of the Strategy
will be aligned to the Strategic £1.8billion is also to be allocated
Investment Fund and the by Government to LEP areas
Devolution Delivery Plan. through a further round of Growth
Deals in 2016.
The Implementation Plan will
necessarily be both detailed and The City Region will use this Strategy
ambitious. It will address the to identify priorities to ensure we
objectives of starting, growing secure further funding for growth.
9
Liverpool City Region Growth Strategy
3 Our Strategic
Approach
Building on our assets
Liverpool City Region is built on a rich history of international
maritime trade and world-leading innovation and achievement
in science, culture and civic life. Building upon this extraordinary
legacy will be pivotal for our future prosperity.
The leading Over the past two decades
Liverpool City Region has
six-lane Mersey Gateway Bridge,
Widnes Waterfront, Mersey Waters
offshore undergone an economic renaissance, Enterprise Zone, and Burbo Bank
wind centre with a diversifying economy of offshore wind farm. Over the last few
in the UK internationally-oriented markets decades, the City Region has been
servicing the and businesses. A growing number transformed; investment in Liverpool
second highest of globally significant companies, ONE has revitalised Liverpool city
concentration including Unilever, Jaguar Land Rover, centre, creating an attractive urban
of offshore Dong Energy, IBM and Inovyn, are environment visited by over 26 million
wind turbines investing heavily in our economy. people annually.
in the world. These companies support a dynamic
base of SMEs – which comprise Famous the world over for cultural
99.6% of all our businesses across creativity, with popular music and
1 of only 3 a diverse range of sectors. football amongst our biggest cultural
significant Internet exports. We have entertainment,
of Things clusters Innovation is key to unlocking future visitor attractions and an architectural
and the second economic growth. The City Region distinction second to none.
fastest growing has a strong network of scientific
tech start-up and knowledge assets. The Liverpool Liverpool City Region is, increasingly,
cluster in the UK. Knowledge Quarter comprises, a world-renowned destination for
amongst others, the world-leading visitors, investors and businesses
National Oceanography Centre at alike. Liverpool is now the 6th most
The largest the University of Liverpool, and the visited city in the UK by people from
cluster of Liverpool School of Tropical Medicine, overseas supported by Liverpool
maritime the first of its kind in the world. John Lennon Airport (LJLA).
businesses Sci-Tech Daresbury, one of two
outside of London, Enterprise Zones in the City Region Liverpool City Region has more
supported by the and one of only two national Big museums, theatres and galleries,
newly-established Science campuses, has attracted and more listed heritage buildings
Maritime over 100 high-tech businesses, of architectural quality than anywhere
Knowledge and is host to the Hartree Centre, in the UK outside London. With
Hub. the UK’s largest and most powerful a beach-lined coastline and easy
supercomputer dedicated to access to mountainous national
industrial research. parks, Liverpool City Region is one
of the most liveable places in the UK.
Major investments in property,
transport and energy assets are This Strategy aims to build upon
transforming the City Region. these many assets to attract and
These include the £300m Liverpool2 retain talent, stimulate innovation
deep water container port, the and support dynamic businesses.
10our strategic approach
Liverpool Historic Devolution Agreement
City signed in November 2015
Region Control of newly
devolved budgets,
ranging across
transport, skills,
business support,
innovation,
infrastructure,
We have to address: planning
and housing
A wealth gap
with below average
GVA per head
A business gap Liverpool
with low rates business To date
density and too few we have City Region
now has the
2nd
private sector jobs secured
2nd highest
A skills gap £264m incidence of
with more skilled of Growth Deal high-growth firms
workers required for funding from among all LEP
our growing industries areas in the country
Government
One of Europe’s LCR is part of the Liverpool
largest Health UK’s 2nd largest recognised by
and Life Science manufacturing Government as
clusters region Digital and Creative a financial centre
12% of
new business of excellence
20% of LCR
LCR GVA growth rates more
workforce
contributing vs 8.8% than doubled
for UK between 2010 and 2013
£4.1bn to GVA
A City Region built on a rich history £4.3bn private A car produced
of innovation and cultural creativity sector investment every 80 seconds
in Low Carbon at Jaguar Land Rover’s
UNESCO Halewood factory
World Heritage Site Energy
over the
UNESCO City of Music last 5 years
World renowned
Football
Investment in Mersey From 2001 to 2014, In 2014 and 2016,
Liverpool2 Liverpool City Region
Gateway population grew by
hosted the
a new 6
31,000
Set to treble Port
biggest business
of Liverpool container lane b
ridge
capacity event of its type
in the world, the
International Festival for
Business (IFB) and will do
so again in 2018 and 2020
11Liverpool City Region Growth Strategy
Focusing on our growth sectors
Liverpool City Region will maximise the impact of investment and
opportunities over coming years by strategically focusing on those
sectors with the greatest potential through smart specialisation.
Through primary research The close alignment of our growth
University
conducted by Liverpool City sectors with those identified for the
of Liverpool’s
Region Local Enterprise Partnership, Northern Powerhouse demonstrates
Computer Science
complemented by independent our shared economic fate, as well
department ranked
evidence such as that contained as the importance of the Liverpool
1st in UK in ‘The State of Liverpool City City Region to the future of the
for “world leading/ Region Report: Making the Most North of England.
internationally of Devolution’, we have identified
excellent” research. key growth sectors, outlined in the The Independent Economic Review
table below. (IER) of the Northern Powerhouse,
commissioned by Transport for the
These dynamic sectors, in North (TfN) in 2015 and produced
which Liverpool City Region has by SQW Ltd and Cambridge
considerable national and global Econometrics, identified four ‘prime’
competitive advantage, are what set Northern ‘capabilities’ and three
us apart from other city regions. They ‘enabling’ capabilities. These are
are our focus because they have the directly related to the City Region’s
most potential to grow our economy. growth sectors, as shown below.
LCR Key Growth Sectors and Northern Powerhouse IER
their economic significance capabilities:
Prime Enabling
Advanced Manufacturing Advanced manufacturing
(materials and processes)
Digital and Creative Digital
(computation, software design, data
analytics, simulation/modelling)
Financial and Financial and
Professional Services Professional Services
(essential services to businesses,
growth through re-shoring)
Health and Life Sciences Health innovation
(life sciences, medical tech and
service delivery)
Low Carbon Energy Energy
(generation, storage, and low
carbon tech)
Maritime and Logistics Logistics
(particularly linked to port and
airport activity)
Visitor Economy
NB Enabling capabilities also include
Higher and Further Education
12Liverpool2 Liverpool2 Liverpool2 will be the most centrally will be one of the will be capable located deep water most operationally of handling container terminal in efficient and modern two 380m mega the UK and will allow terminals in post-panamax global services Northern vessels simultaneously. to connect with Liverpool. Europe. © Peel Ports Ltd
Liverpool City Region Growth Strategy
Responding to our challenges
The State of Liverpool City Region Report: Making the Most of
Devolution, published in January 2016, re-emphasised longstanding
challenges facing the City Region.
Wealth gap Productivity gap
GVA per head remains about three High levels of economic inactivity
quarters of the UK average (£17,852 contribute to very low wealth
against £23,755), equating to an per person at only £17,852
£8.9 billion gap. GVA per capita in 2013. This is
despite relatively high per worker
Business gap productivity, at £46,000 GVA in
Low business birth and survival 2014, due to the presence of high
rates, a relatively small stock of value added manufacturing sectors,
businesses, coupled with an over- but still comparing unfavourably
dependence on public sector jobs. to London’s £73,400.
In 2014 there were only 235
businesses per 10,000 population Skills gap
(although up from 225 in 2013). One of lowest educational
attainment and skilled worker
Jobs gap rates: 15.9% working age residents
We have the lowest employment lack any formal qualifications;
rate of the 63 largest cities in the only 25.7% have attained high
country (just working age residents) level qualifications.
and very low jobs density compared
with other core cities. Spatially concentrated
deprivation
Worklessness The City Region is home to some
High levels of long-term sickness of the country’s most disadvantaged
and significantly higher proportions neighbourhoods. Liverpool and
of workless households than the Knowsley are among the most
national average. We have the 4th deprived local authority areas in the
highest work claimant rates of any country (ranked 4th and 2nd worst
UK city, at 3.6% of population. performing respectively in 2015).
14our strategic approach
Realising our potential
Our strategic approach to addressing our challenges and realising
the City Region’s economic potential is focused on three strategic
pillars: Productivity, People and Place.
Artist impression Advanced Manufacturing Centre, Unilever, Wirral
Productivity:
The first pillar to sustained economic growth is to maximise the
potential of our sector strengths and related assets and to focus
on starting and growing more successful businesses by promoting
innovation and entrepreneurial activity.
People:
The second pillar is to improve and increase skills, developing
existing talent and attracting new talent for sustainable growth.
Place:
The third pillar is to improve our transport, energy and digital
infrastructures, and protect and enhance our cultural and
environmental assets. This will improve quality of life for residents
and attract and retain investors, skilled workers and visitors who
will contribute to growth.
15Liverpool City Region Growth Strategy
4 Productivity
Liverpool City Region has the potential to become one of the best
places in Europe to start, grow and invest in companies through the
development of a dynamic innovation and enterprise ecosystem.
Enterprise
Liverpool City Region has a diverse and resilient business
community in a wide range of sectors. In recent years we have
seen growth through inward investment, an increase in start-ups
and the number of high growth firms. Despite this strong recent
performance, significant challenges and opportunities remain to
uplift our business density and female entrepreneurship levels.
Our ambition is for Liverpool City and incisive interventions in
Region to become an ‘Enterprise each to achieve our ambition.
Capital of Europe’ delivering
increased business density, Particular interventions proposed
growth and employment. include comprehensive, sustained
and coherent City Region-based
There are a wide range of factors development and delivery of:
that impact on business formation,
survival, investment and growth. Competitive procurement programme
Never before have we had a
coherent approach to all of these Business leadership mentoring
factors to deliver increased business
Premises for new and
density and growth across the whole
growth businesses
City Region.
Extended business start and
Our Strategy embodies a growth mentoring
coordinated approach to these
challenges and opportunities, Export plan and exporters network
informed and developed by
Finance Hub and growth funds
business, education and the
public sector to create a dynamic Inward Investment
enterprise ecosystem that identifies
and responds to the needs and Schools Enterprise
opportunities of our
diverse community. Addressing the core issues impacting
upon our business density and
It recognises the multiple factors female entrepreneurship levels is
that impact upon business fundamental to achieving the growth
performance, proposing new potential of the City Region.
16PRODUCTIVITY
All of these initiatives will be developed with business, for business, with and
through the City Region’s business organisations to create new, dynamic and
commercial solutions.
A key concern for the business community in delivering growth is the availability
of suitable skills. Businesses are reporting some challenges in securing suitable
talent to grow their business, both for entry level positions and for higher,
technical roles. There is a large pool of talent for employers to draw upon in the
City Region but the particular needs of business identified include:
Entry Level: Basic English/Maths skills; business understanding; attitude
Technical: Volume of high calibre candidates particularly for SMEs
Higher Level: Commercial awareness, graduate retention,
career progression opportunities
This approach to enterprise will be integrated into our smart specialisation work
in our key growth sectors to realise specific opportunities in each area.
© Sigmatex
17Liverpool City Region Growth Strategy
Enterprise Culture
Schools and Colleges:
We will ensure enterprise programmes are embedded into schools, colleges and universities
and linked into local businesses to provide inspiring enterprise experiences for young people.
Better Places:
We will create attractive environments for business through investment in public realm and
transport infrastructure, schools, parks, events and public safety.
Business Facilities:
We will support development of an extensive portfolio of business premises and facilities to
foster business start-up and growth right across the City Region.
Commercialisation:
We will encourage and enable the increased use of paid professional services to support
business growth – demand-driven with a focus on quality.
Inspiration:
We will engage with business owners and managers, celebrate their role, and support them
to raise their confidence and aspirations to grow their businesses.
More Business
Survival:
Too many viable firms struggle to survive at and beyond the five year point of the business
lifecycle. Our ambitions for a net increase of 20,000 businesses over 25 years will only be
achieved by supporting our existing SMEs. Extended support for businesses will be encouraged
with finance coaches and mentors plus a commercial triage service.
Business Start:
Business Start Programmes will be developed to meet the differing needs, challenges and
opportunities of our diverse community, stimulating increased levels of sustainable business
starts.
High Growth Starts:
More intensive and bespoke sales, finance and product development support will be provided
to new businesses with high growth potential.
Procurement:
We will secure a significant increase in local business opportunities arising from public and private
sector procurement through targeted interventions with both buyers and suppliers.
Inward Investment:
A single coherent and suitably resourced Inward Investment Strategy will be developed to attract
new investment by focussing on our distinctive and internationally competitive specialisms.
18PRODUCTIVITY
Growing Business
New Markets:
Support will be developed for businesses to access new markets to grow the value of exports and
number of exporting businesses. We will establish a City Region Export Plan with UKTI and a City
Region-wide Export Network to enable increased peer-to-peer support for established and early
stage exporters and make increased use of investments in our ports and infrastructure.
Finance for Business:
Ensuring suitable forms of business finance are available for all aspects of business formation
and growth to complement private sector provision. This will involve building on the strength of
providers such as Merseyside Special Investment Fund and ensuring new entrants, such as the
Northern Powerhouse Investment Fund, meet our requirements. We will develop funds where
gaps exist and which stimulate growth particularly in smaller firms. The pipeline of businesses
suitable for investment will be stimulated through provision of access to finance and investment
readiness support.
Product and Service Development:
Extensive support will be provided for businesses to invest in applied research, development and
innovation that can be commercialised to improve the competitiveness of their products
and services.
Supply Chains:
Support will be provided for local businesses to identify and exploit supply chain opportunities
in both the public and private sector, assisting them with tender and procurement processes.
Local Growth Hub:
We will further develop our City Region Growth Hub to help businesses find the best support
from the myriad of services and providers available. The Local Growth Hub will work closely
with all local business organisations to engage with and support our diverse business community
through a coherent and comprehensive brokerage service – helping businesses to become
better informed consumers.
Workforce Development
Inspiring Leaders:
We will support interventions that develop leadership and management skills amongst
business owners and their senior management. We will particularly promote and encourage
the development of peer-to-peer networks and mentoring.
Finance Training:
We will support businesses in embedding good financial management and understanding,
particularly start-ups and young SMEs.
Sales Training:
Extensive programmes of commercial sales training for businesses will be established to ensure
they can realise their potential in national and international markets.
Tender Training:
Programmes to develop business skills and capacity in responding to tenders and developing
partnering approaches with other suppliers will be supported.
Systems Training:
We will encourage businesses to ensure business processes and efficiencies are improved
through training in quality assurance and business processes including benchmarking.
19Liverpool City Region Growth Strategy
Growth Sectors
Liverpool City Region has a wealth of intelligence, expertise,
capacity, capability and opportunity in its core business
sectors that will be the catalyst to provide a powerful engine
for increased productivity and the sustained growth of our
economy over the coming decades.
We have exceptional, world-leading assets and capabilities
in businesses and universities in these sectors that offer the
potential for regional, national and international competitive
advantage for indigenous and investing businesses.
Whilst they currently make a Our approach embodies
Our significant contribution to the innovation and recognises the
ambition City Region economy, their potential, emerging technological and
is for each sector to both individually and collectively, market trends and disruptive
become a beacon is not as yet fully realised. technologies which will impact
of excellence, on our economic landscape in
productivity Our ambition is for each sector the future.
and accelerated to become a beacon of excellence,
growth through productivity and accelerated growth, A particular opportunity is in
smart specialisation. through investment in facilities, the application of digitisation,
infrastructure, networks, people big data analytics, cognitive
and innovation, creating more and computing and high performance
higher skilled jobs and more growth computing, where our City
businesses throughout our economy. Region has some of Europe’s
leading capability.
Achieving this ambition requires
multiple strategic interventions Sector-based interventions will
in each sector, with hard-edged, focus particularly on those activities
evidence-based technical and that accelerate growth, apply
commercial appraisal in order to innovation commercially and
demonstrate the deliverability and deliver increased productivity.
the economic impact of each.
Identification of these
There are considerable synergies interventions is already taking
between our sectors and we place, driven by the private sector
recognise that some of our most and enabled by the public sector
potent and distinctive opportunities and education in powerful and
are in the overlap between them. effective partnerships.
These sector strengths significantly Further foresighting and capacity
align and complement those of the building work will be undertaken
Northern Powerhouse and highlight to develop and prioritise
the potential for growth through these interventions.
wider, cross-boundary collaboration.
20PRODUCTIVITY
Liverpool City region’s key sectors, firms and anchor institutions
Source: The State of the Liverpool City Region Report
21Liverpool City Region Growth Strategy
Advanced Manufacturing
Strategic vision:
To become a global hotspot for digital manufacturing with the smartest
networks, talent, technology and investment in automotive, Fast Moving
Consumer Goods (FMCG), chemicals and rail manufacture.
Over 3,000 businesses employing approximately 47,200 individuals.
Productivity stands at £47,000 per head – 7% higher than the UK
sector average and is driven by success in both the automotive and
pharmaceutical industries.
£3.3bn per annum is contributed to the economy from a sector which provides
approximately 7% of all employment opportunities in the region.
22PRODUCTIVITY
Chemicals Pharmaceuticals and FMCG
assets opportunities
Unilever R&D and Manufacturing Support development of
facility at Port Sunlight - £200m Materials Innovation Factory
of investments including a £24m and high throughput formulations
Advanced Manufacturing facility. expertise. Market capability of
Inovyn and associated supply
Materials Innovation Factory chain opportunities.
– a £64m joint venture between
Unilever and the University of Establish the UK’s FMCG
Liverpool (UoL), by 2020 the equivalent of “Silicon Valley”
Materials Innovation Factory aims based on Unilever’s presence
to be the world leader in Computer and investment in R&D and
Aided Materials Science and will manufacturing in the Liverpool City
include collaboration space for SMEs Region (LCR)and across the North
to jointly develop new products. of England, open innovation
approach, UoL’s Chemistry research
Inovyn – the 400 acre Runcorn site is excellence, and the attractiveness
the second largest producer of PVC of end-to-end new molecule to
in the world and supports 133,000 commercialisation capabilities.
jobs directly or indirectly making it a
strategic site of national importance. Transform the North West Chemical
Industry - the UK’s largest chemical
University of Liverpool Chemistry cluster, and a £10billion sector
Department – 2nd in the UK for world - by producing high value materials,
leading research in chemistry (REF harnessing the LCR and surrounding
2014) and 1st in the UK for outputs area’s world class assets in materials
ranked as either world leading or chemistry, modelling, and simulation.
internationally excellent.
Build on the established specialisms
Nationally significant in vaccines research, development
pharmaceutical manufacturing base and manufacture to make the
including Astra Zeneca, Sequiris, LCR the recognised UK centre of
Eli Lilly, Bristol Myers Squibb and excellence in vaccines manufacturing
Mast Laboratories. and the UK centre of pandemic
vaccine production.
Recognised centre of excellence
in the production of vaccines and Continue to support Life Sciences
specialist paediatric vaccines. UTC to ensure skills for future
expansion and growth.
trends
Highly competitive and growing Building on established
£80billion global Homecare/Personal strengths and current industrial
Care market. base encourage investment
in fill and finish facilities for
The new Materials Innovation vaccine production.
Factory and Advanced
Manufacturing Centre presents
unique large scale collaborative
commercialisation and supply
chain development opportunities.
23Liverpool City Region Growth Strategy
Automotive and Rail
assets opportunities
Home to Jaguar Land Rover Utilise the expertise and capability
manufacturing the Evoque, Discovery in the LCR (and wider North West)
and Discovery Sport. £500m of automotive supply chain and skills
investment since 2010. Fully let base attract further investment in
supplier park including globally Tier 1 and Tier 2 capability.
significant tier 1s like Johnson
Controls, Magna and IAC. Develop expertise in autonomous
vehicles, connected cars and
Sigmatex Lightweighting Centre of light weighting leading to more
Excellence: located within Sigmatex’s targeted knowledge intensive inward
global R&D facility and home to investment proposition working
the Lightweighting Excellence with the Automotive Council and
Programme (LX). Automotive Investment Organisation.
Full manufacture of BAC Mono – Ensure sufficient land for supply
high spec, road legal single seater chain repatriation into the UK.
incorporating Formula 1 technology. Utilise knowledge assets in virtual
engineering, big data analytics and
LCR adjacent to other significant Industry 4.0 to develop knowledge
automotive Original Equipment intensive proposition for automotive.
Manufacturers (OEM) – General
Motors, Toyota, Bentley and Ensure OEMs and supply chain have
Leyland Trucks. LCR is part of the sufficient skills provision to support
UK “automotive corridor” and has expansion and growth.
proximity to the Port of Liverpool for
improved import/export capability. Incubating a rail OEM into the City
Region which has a 3:1 multiplier
trends in the supply chain is a significant
Harness the potential of the opportunity for growth.
Sigmatex Lightweighting Centre
of Excellence in the mass production Establishment of Northern Rail
of light weighting technologies for Academy within Alstom development
road vehicles to make the LCR providing independent multi user
a recognised hub for carbon facility for industry.
fibre/composites.
Align knowledge assets like the
Hartree, Virtual Engineering Centre
and Sensor City with the UK
automotive innovation agenda
being developed by the Automotive
Council with particular focus on
autonomous vehicles and
connected cars.
Significant emerging rail cluster
including Alstom, Faiveley Transport,
RS Clare, Unipart Rail and Wentworth
House Rail Systems. Plans for a
Northern Rail Academy in Widnes.
Increased UK Rail demand: New
tube for London 2,500 cars over
10 years. Jubilee and Northern Lines
upgrade of rolling stock, Docklands
Light Railway (DLR), High Speed Rail
2 (HS2) 160 trains.
24PRODUCTIVITY
Research and Development
assets opportunities
Hartree Centre - the UKs largest Support the development of scale up
super computer given over entirely technologies (LJMU and Daresbury),
to industrial research. position Sensor City as a national
Catapult Centre for sensors and
Sensor City - one of only four develop an Industry 4.0 Research
University Enterprise Zones (UEZ’s) and Development centre.
in England.
Work with Government (BIS, UKTI,
Science and Technology Facilities Innovate UK) to canvass support
Council (STFC) Sci-Tech Daresbury - for LCR 4.0 as the UK test bed for
1200 people on site including Industry 4.0 technologies and build
500 scientists. Home to a new UK capability.
£5m rapid prototyping facility for
use by manufacturing companies. Develop an LCR cloud based
platform for Industry 4.0 to
Virtual Engineering Centre (VEC) to accelerate take up of technologies in
integrate the ‘best in class’ virtual local businesses and facilitate secure
engineering techniques to product and affordable data sharing across
design and development. entire supply chains.
Engineering Technology Research Work with OEMs to facilitate Industry
Institute provides expertise in 4.0 Grand Challenges hosted in the
measurement, sensing, materials Liverpool City Region and involving
processing, Advanced Manufacturing LCR SMEs to grow and evidence
and Biomedical. Industry 4.0 capability.
Manufacturing Technology Centre Build on Sensor City and expertise
(MTC@LJMU) a formal node of the within the Hartree Centre, Virtual
national MTC Catapult. Engineering Centre and our two
Universities establish a unique
trends Industry 4.0 sensor-systems
Shortened time to market business eco-system.
(reduce innovation cycle/more
complex products). Work with schools, colleges and
UTCs to develop Industry 4.0
Increased flexibility “individual capability in skills provision.
mass production”/volatile markets/
high productivity.
Only 30% of UK industry has the
capability to engage in Industry 4.0.
Need to ensure LCR broadband
provision is competitive to
support growth.
25Liverpool City Region Growth Strategy
Digital and Creative
Strategic vision:
To be a world leader in the application of high performance and
cognitive computing and sensor technology to revolutionise
productivity across all sectors and be the best place in the UK
to start, grow and scale up a digital or creative business.
Employs 13,600 people; valued at £985 million GVA in 2015.
Second fastest growing technology start-up cluster in the country.
Projected to contribute £2.4 billion GVA by 2040.
High growth rate of 10.1%, between 2010 and 2015.
High Performance Computing and Big Data
assets opportunities
STFC Hartree Centre: UK’s Establish the City Region as
most powerful industrial R&D the leading British city for
Supercomputer. Sensor Technology.
IBM £200m Watson Cognitive Lead the UK and Europe in
Computing platform. application of the 4th Industrial
revolution through LCR 4.0.
LJMU 8th for the impact of its Big
Data publications; 17% in global Deployment of IBM Watson
top 10%. to realise the Alder Hey Living
Hospital concept.
Intel Parallel Computing Centre
UK’s first Power Design and
Acceleration Centre involving
STFC, IBM, NVidia, Mellanox.
trends
Big Data Analytics, High Performance
Computing and Cognitive Computing
will revolutionise the way businesses
operate.
The development and application of
sensors will create opportunities for
increased digitisation of business
process especially in manufacturing
when aligned to big data analytics.
26© Ant Clausen
Digital Business and Infrastructure
assets Increased need and demand
Largest health tech. deployment for digital literacy and specialist
for a single economy in Europe skills provision.
(EU Commission).
Lack of dedicated digital
Unilever global ICT Centre in Wirral, sector support.
Shop Direct: UK’s 2nd largest online
retailer and O2’s national digital test opportunities
bed in St.Helens. As an enabler and accelerant,
the sector can enable the delivery
1 of only 3 UK tech. clusters of Innovation Plan ambitions in
with major Internet of Things (IoT) other sectors.
expertise.
Digital and Creative sector
Hibernia high-capacity transatlantic development.
cable system.
UK Institute of Technology Initiative.
AIMES N3 secure data storage.
SME Digital Accelerator and
trends commercialisation vehicle, linked to
UK digital sector growing 32% the Hartree Centre.
faster than globally.
Liverpool Internet Exchange pilot.
Digital infrastructure sub optimal in
terms of both broadband speed and Ultrafast Broadband provision across
quality compared with other major the City Region.
city regions.
Potential for Digital Catapult Centre
National and international and Digital UTC.
productivity, performance and
competitiveness gap will increase
without investment in infrastructure.
27Liverpool City Region Growth Strategy
Creative Cluster
assets trends
Baltic Quarter – unique cluster of Intrinsically fragmented nature
creative and digital businesses. of much of the sector, particularly
in terms of predominance of
FACT: UK-leading film, video and micro-businesses.
new media arts organisation and
destination for filming. Lack of dedicated financial
instruments given greater risk
UNESCO City of Music designation. and differing culture and
growth trajectory.
Lime Pictures and a wealth
of leading edge SMEs. opportunities
Development of the Edge Lane
Sound Stage and Digital Campus.
Baltic Triangle expansion.
Applied Research and Development
assets opportunities
Intel Parallel Computing Centre. Digital and Creative Sector
Fore-sighting Study.
1st UK Power Design and
Acceleration Centre. Further development of Sensor City
UEZ - one of the world’s 1st sensor
University of Liverpool Virtual tech. incubators.
Engineering Centre.
Expansion of the Materials
UoL 1st in UK for “world Innovation Factory - global leader in
leading/internationally excellent” computer-aided materials science
Computer Science. and discovery.
Microsoft UK “Showcase College” LCR 4.0 – industrial Internet of
– 1st UK Deployment Next Things for advanced manufacturing
Generation Classroom LCR Urban Living and Growth
(City of Liverpool College). Simulation “Virtual Liverpool”.
trends
Rapid technological change makes
it inherently difficult to identify and
maximise opportunities.
Distinctive/niche areas of potential
competitive advantage include:
Sensor Technologies and the Internet
of Things; E-health; Gaming; Film
and TV: heritage and reality drama;
Music Technology.
28Uniform Offices © Andy Haslam
Liverpool City Region Growth Strategy
Financial and Professional Services
Strategic vision:
To be a European Centre of Excellence for Financial and
Professional services with international strengths in private clients,
maritime and business services attracting new investment whilst
actively supporting the development and growth needs and
opportunities of local business.
Employs 45,000 people – 6.7% of the total the City Region workforce compared
to 8.4% nationally.
Sector output is projected to double by 2040.
Third largest wealth management industry in the UK.
Recognised as a UK Financial Centre of Excellence.
Financial and Professional Services
assets trends
Third largest wealth management Shortage of large volume of
industry in the UK. Grade A City Centre offices for
large expansions and inward
Recognised as a Financial Centre investment creating a vibrant
of Excellence by UK Government. environment for the sector and
attracting greater critical mass.
National expertise and capacity
in private client, maritime and Dominance of London and
business services. the competitiveness and active
positioning of other UK city
Cluster of Tier One Companies. regions for investment in
this sector.
Higher education research
strengths in the sector. Regional size and strength of
sector in Manchester attracting
Access to a large graduate businesses and talent.
labour pool.
The sector has an increasingly key
Active Professional Services role to play and common interest
sector organisation. in helping business to grow –
supporting SMEs and creating
Strong connections with the frameworks for cooperation and
City of London. collaboration in finance, advice etc.
Sector can work with developers,
Competitive cost base compared to public sector, land owners, economic
other UK Financial and Professional development and investment agency
centres – particularly London. to develop solutions and deliver a
joined up approach to development
Strong base of competitive and high of new facilities.
growth business services companies.
Insufficient graduate jobs available
in certain parts of the sector to meet
the supply of graduates.
30PRODUCTIVITY
Need to maintain the quality of talent Establish a programme of work
pipeline to sustain the growth of the with schools and Colleges to better
sector and ensure young people link them and students with the
have enough information on the professional services sector.
opportunities in the sector locally.
Management skills development
Need for greater clarity on the and training with support from City
skills and work readiness needs Region’s Universities and Colleges.
of professional business.
Financial and Professional Services
Outsourcing and on-shoring sector to increase its engagement
trends for business services. with SMEs to support firms to
innovate, export and respond to
opportunities new challenges – stimulating and
Establish an outward facing accelerating business formation,
professional services community with survival and growth rates.
a clear view of capabilities, potential
and unique selling propositions. Establish the City Region as the
leading UK centre for business
Substantial, sustained, coherent services, through outsourcing,
promotion of the expertise, capacity in-sourcing and near-shoring of
and attractiveness for investment in business functions delivering
the City Region, particularly around high levels of talent and quality
private client wealth, maritime and of accommodation in a highly
business services. competitive cost environment.
Liverpool to become a competitive Support the development of skills
and attractive natural alternative and to support growth in the business
complement to London operations services sector.
of Financial and Professional
Services businesses. Enable the sector to effectively
implement digitisation to ensure it
Secure a pipeline of new Grade A remains competitive nationally and
offices in the city centre and beyond internationally.
including Enterprise Zones to provide
choice and opportunity for investing
occupiers and a greater critical mass
of professional services operations.
Develop effective “Town and Gown”
relationship between Colleges,
Universities and businesses to create
opportunities to develop and retain
talent in the City Region.
31Liverpool City Region Growth Strategy
Health and Life Sciences
Strategic vision:
To be home to world leading centres of excellence for precision
medicine, infectious disease, children’s health, healthy and independent
living and eHealth, attracting research funding, talent, investment and
business to commercialise this excellence.
£4.1bn per annum contributed to the economy from the healthcare cluster which
provides jobs for 20% of the City Region workforce.
Approximately 150 companies in the Life Sciences/Biopharmaceutical cluster,
providing 6,000-10,000 jobs and contributing over £400 million to the City
Region economy.
Precision Medicine and Children’s Health
assets trends
World-leading facilities at the Increasing global demand for
University of Liverpool (UoL) to healthcare products – 4.3% global
tailor treatment to individuals. spend increase per annum to 2019.
Liverpool Bio-Innovation Hub (LBIH) opportunities
– new incubator to support SMEs Establishment of National Institute
working in precision medicine. for Health Research (NIHR)
Biomedical Research Centre –
NHS (Liverpool Health Partners, coordinated resources for precision
North West Coast (NWC) Genomic medicine activities including LBIH
Medicine Centre, Regional incubator (UoL).
Genetics Service).
Support the commercialisation of
Sci-Tech Daresbury – Science and new diagnostics/precision medicine
Technology Facilities Council (STFC) technologies by local companies.
Hartree Centre, University Enterprise
Zone – Sensor City, diverse Further development of Alder Hey
industry partners. Hospital – research, innovation and
education space.
Redeveloped Alder Hey Hospital
and Innovation Hub, including the Support further site development
NIHR National Research Lead, – Royal Liverpool, Edge Lane
Research and Education Centre. and Clatterbridge.
Diverse industry partners.
32PRODUCTIVITY
Infectious Diseases
assets opportunities
Liverpool School of Tropical Establishment of Centre of
Medicine and University of Liverpool Excellence for Infectious
– significant infectious diseases Disease Research – to consolidate
research expertise and facilities. infectious disease activities and
antimicrobial research.
NHS Royal Liverpool and Broadgreen
University Hospitals NHS Trust – new Development of Accelerator
SME Accelerator incubator focusing incubator (LSTM/Royal
on infectious diseases. Liverpool NHS).
Life science companies focusing on Develop new infectious diseases
infectious diseases. facilities contiguous with
Accelerator building.
trends
Commercialisation of technical/
academic expertise.
Healthy and Independent Living, and eHealth
assets opportunities
Clinical Commissioning Groups Develop a Digital Catapult.
(CCGs), Local Authorities,
Universities and other organisations Implement/align Big Data
including housing trusts undertaking predictive analytic programme
initiatives to support healthy and across Liverpool City Region
independent living underpinned by health, care and related data.
digital/sensor technology.
Accelerate the evaluation of
Potential of University Enterprise technologies via regional test beds.
Zone – Sensor City.
Scope the healthy and independent
eHealth cluster – technology and living subsector more accurately
care organisations/SMEs that to define areas of activity across
can develop and implement new “community and self-care”,
technologies for independent living. and eHealth activities.
Big data linkages – a number of LCR NHS private patient initiative
significant digital health programmes. - explore unified promotion/
coordination of NHS private health
trends care provision across region.
Potential to link health to energy
(fuel poverty) through initiatives Develop a LCR Living
including innovative digital schemes. Lab (networked with
international activities) to
Increasing demands on health and support the development
care services due to an ageing of healthcare innovations.
population driving innovation.
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