pgb_business_growth_investment_sept_2014

Plymouth Growth Board Highlights Report, Sep 2014 BUSINESS GROWTH AND INVESTMENT (& DIGITAL ECONOMY update) Growth Board Champions: Steve Cardew, Simon Chamberlain, Ian Brokenshire & Dave Young Flagship Sponsors: Julian Beer and Peter Hartland Report Authors: Steve Bashford, Adrian Dawson & Sheldon Ryan; contributions from Peter Hartland, Ian McFadzen, Patrick Bowes & Ian Pearce BUSINESS GROWTH & INVESTMENT ‘Developing a coherent support offer to enable our businesses to become more enterprising, innovative and productive, excelling in global markets.’ HEADLINE SUMMARY The Plymouth and Peninsula City Deal has helped catalyse a significant amount of progress against the strategic objectives set out in the LES Review 2013/14 This comes at a time when the economy is on the mend, confidence is rising, and more businesses are looking to invest: The GAIN Growth Hub is channelling a range of support and funding opportunities to businesses; the newly established Digital Exchange aims to provide a single point of contact for all business seeking support A Business Creation Programme (School for Start Ups) and the continuing Urban Enterprise Programme have delivered substantial business start-ups outputs, helping to overcome the city’s historically low rates of entrepreneurship Through a range of grant programmes – GAIN Growth Fund Plus, Social Enterprise Investment Fund, and RGF – city partners are working together to ensure businesses have access to the necessary finance to invest and grow Plymouth Chamber (with UKTI) is directly engaging with businesses across the SW Peninsula to encourage them to export – increasing resilience and raising productivity Work to capitalise on the city’s knowledge base and innovation potential continues through the Marine Innovation Centre (MARIC) and Plymouth Science Park Phase A number of ‘warm leads’ for new inward investment have been generated through trade shows and increased marketing efforts; while indigenous investment is being effectively nurtured through a Business Relationship Programme Plymouth Growth Board Highlights Report, Sep 2014 Introduction The LES Review 2013/14 sets out six areas of focus recommended: Boosting business start-ups Supporting and attracting new investment to the city Driving innovation and knowledge based growth Raising skills levels and supporting people back to work Encouraging private sector jobs growth and higher levels of exporting Maximising our physical and digital connectivity to markets Long term economic success is built on the productivity of our businesses and workers Productive businesses, including social enterprises, create more employment opportunities at higher levels of pay, produce higher quality goods and services, and generate the lion’s share of wealth for the city To reach its economic potential, Plymouth needs to create a strong and vibrant business culture characterised by high rates of start-ups and investment (both among our existing businesses and by those choosing to locate here) and where our most aspirational and ‘cutting-edge’ businesses are able to develop new products and exploit new market opportunities internationally To support this, businesses need the right climate where advice, intelligence and networks are available to help them make informed decisions about their growth ambitions Economic Context Plymouth’s economy continues to operate against a strengthening national backdrop, with steady output growth and falling unemployment recorded over the last twelve months Confidence among UK businesses and consumers is improving all the time; low productivity and constrained ‘real’ wage growth remain the only blemishes on a generally improving picture More locally, the South West Purchasers Managers Index (SWPMI) – which tracks advanced movements in output, new orders, employment and prices among regional businesses – reported a rise in business activity for a 14th consecutive month in May 2014 Furthermore, private sector companies reported growth in payroll numbers with anecdotal evidence attributing this to increased overall demand and workforce expansion in anticipation of future growth More favourable trading conditions and an increased appetite for investment, supported by a range of new public/private sector interventions, mean there is a real opportunity to address the city’s economic challenges and deliver new output and job creation Plymouth Growth Board Highlights Report, Sep 2014 Strategic Objectives: Business Growth & Investment Create an integrated and accessible business support offer Key actions:  Establish a single point of contact for all business support through the GAIN Growth Hub  Support SMEs and micros through better information and co-ordination on procurement, premises, planning and business advice  Support businesses to remain and prosper locally through a Business Relationship Programme GAIN Growth Hub BACKGROUND The Peninsula City Deal Growth Hub was developed as a key strand of the Plymouth and South West Peninsula City Deal (covering both the Heart of the SW LEP and Cornwall and the Isles of Scilly LEP areas) It is an ambitious approach to co-ordinating business support activities and providing a customer focused network of support that is simple to navigate Central to the City Deal Growth Hub is the role of the Growth Acceleration and Investment Network (GAIN) in delivering coordination and business engagement GAIN was founded by Plymouth University as a mechanism for driving business growth through partnership, based on the creation of an ecosystem of support, with the knowledge base as its anchor Key activities that were identified to improve business support co-ordination included: Awareness raising and assisting access to existing business support; Development of the GAIN digital exchange; and A new team of three business advisers The aims of these coordination and signposting / referral elements relate to all business support activities, whether provided by national programmes, regional or local publically supported projects, or the private sector The over-arching objective is to increase the number of enterprises seeking, and receiving, appropriate support, reversing recent declines Growth Hub Objectives: To ensure effective coordination of business support services; To lead to measurably increased take up of business support by SMEs; To simplify the customer journey, reducing the number of touch points for business; To provide a route to market for support providers (public and private, including national assets); Plymouth Growth Board Highlights Report, Sep 2014 To explore innovative approaches to business engagement and support; To be recognised as a national exemplar by Government; and To be sustainable HIGHLIGHTS The Digital Exchange – www.gaininbusiness.com An online resource for businesses designed specifically to meet the needs of all growing enterprises It is content-rich, engaging, and dynamic with personalised content filtering, full mobile optimisation, and includes: Video based learning; Advice from experts and those that have done it; A platform in which business people can interact and share expertise – the Connect forum; Greater connectivity with business support providers; and A knowledge bank of “how to” guides Since its launch as a beta site on 7th May, it has had 3,800 unique users, of which over 650 have registered, allowing them to receive tailored and targeted content A showcase event was held on 18th July with 70 people attending The Business Engagement Service A new impartial, free telephone and e-mail based advice service, providing business advice, referral and signposting to simplify the customer journey and increase take up of business support Three business advisors with knowledge of the complex and bewildering array of support available can respond to a wide range of business enquiries To July 2014 the service has made 490 referrals to over 150 different providers of business support Plymouth Growth Board Highlights Report, Sep 2014 Coordination and engagement Key to increasing the uptake of business support is wide business engagement and raising awareness of the support available This aspect of Growth Hub activities is led by the Chambers of Commerce across the peninsula, led by Plymouth Chamber, with a target to raise awareness of Growth Hub activities with 10,000 businesses The University is also responsible for providing coordination of providers and raising awareness of a further 10,000 businesses that not typically engage in business support through social media and wider awareness raising activity GAIN Growth Fund Plus (see ‘attract and support new business investment’) Gap filling activities The following activities are being delivered across the peninsula, and available to Plymouth businesses (picked up in detail in relevant strategic objectives): Help for businesses to engage in international trade and access new markets (Chambers of Commerce / UKTI); A business support package to help businesses trade internationally online (UKTI); Innovation vouchers programme (Universities South West); A marine focused manufacturing support programme (SWMAS); The South West business creation programme (School for Start Ups); Sector development & business engagement (South West MEP); and Enhanced Foreign Direct Investment Support (HotSW LEP) PCC Business Relationship Programme BACKGROUND Plymouth City Council’s Economy, Enterprise and Employment team manages a Business Relationship Programme targeting a range of businesses across the city The programme aims to develop close working relationships with the local business community to gain first-hand knowledge of the issues it faces, and provide advice and support The programme strengthens the team’s role as a main point of contact for companies wishing to connect with different Council services, as well as other stakeholders in the city who can provide business support HIGHLIGHTS Over the period July 2013 – June 2014, Plymouth City Council’s Economy, Enterprise and Employment (EEE) team visited 65 businesses Plymouth Growth Board Highlights Report, Sep 2014 Visits Q2 2013 – Q1 2014 (cumulative) Visits by sector (%) Discussions that take place at programme visits are often commercially sensitive – we have, therefore, omitted any references to individual businesses The following commentary is necessarily high level, focussing only on general observations from visits undertaken: Business confidence on the up – The programme revealed a continued improvement in business confidence echoing more favourable trading Investment was a common theme, with some businesses having recently invested in new capital equipment and others seeking funding opportunities for future investment plans Productivity improvements key to long term success – The vast majority of our manufacturing firms continue to focus on productivity-led growth strategies This is commonly achieved by driving efficiencies in production through investment and innovation Physical connectivity remains a concern – The issue of poor physical connectivity was raised during a number of programme visits High transportation costs impact upon the productivity and competiveness of city businesses Skills gaps – Many manufacturing businesses were concerned about the prospect of an ageing workforce A general issue was that graduates taken on by businesses are often lacking basic ‘employability skills’ and have to be trained in house (at a cost) Manufacturers have experienced difficulty in recruiting more skilled jobs locally, particularly engineers The success of the Business Relationship Programme is predicated upon how the intelligence gathered is used to support businesses The following highlights some of the key actions taken: Funding support – businesses looking to invest, are often unaware of the public funding opportunities available to them Through the programme, officers have worked with businesses to identify the most appropriate sources of funding and the steps required to access it Recent Regional Growth Fund (RGF) successes for the city were made possible by advice and guidance offered to local businesses through the programme Plymouth Growth Board Highlights Report, Sep 2014 The city received a pot of funding as part of the UK Government’s Flood Relief Grant programme By proactively targeting and visiting eligible businesses, we have committed a significant £38,000 to local businesses to date, with more in the pipeline Identifying premises – Information about commercial premises is a valuable public good and something that businesses request frequently during programme visits Through its commercial property register, the Economy, Enterprise and Employment team is able to provide this information for free and has supported a number of businesses both in terms of inward investment and indigenous businesses looking to expand Linking to other services – The Economy, Enterprise and Employment team has acted as a conduit to other Council services, for example, businesses looking for advice on planning issues The team has also signposted businesses to other partner organisations; for example, a business undergoing a significant restructuring exercise was linked with Jobcentre Plus to provide support throughout the process Information sharing – Markets work best when knowledge is perfect and evenly shared across the economy During visits, we picked up the need for a Relocation Guide to provide a virtual ‘one stop shop’ for all services available to them This will be published shortly to coincide with a new Investinplymouth website (more below) RAG RATING With City Deal support, a number of tangible steps have been taken to create a more integrated and accessible business support offer A key challenge will be how to make sure this support is sustainable in the long term The Business Relationship Programme is leading to tangible outcomes in terms of new investment – over the coming months, the team will seek to expand the programme both in terms of scale and sector coverage Plymouth Growth Board Highlights Report, Sep 2014 Increase the number of business start-ups  Deliver City Deal business start-up programmes, including ‘school for start-ups’  Encourage more HE and FE spin-outs, supported by new business incubation space  Increase business start-up opportunities for residents living in the city’s most deprived communities School for Start-ups BACKGROUND School for Start-ups is a limited company that creates education programmes, events and online support for budding entrepreneurs; with the objective of helping anyone turn their business idea into a reality School for Start-ups is delivering the six-week intensive courses offering entrepreneurs expert advice and support to start a new business, with coaching provided by original BBC Dragon Doug Richard Support worth £1,000 is being provided for free with support from Plymouth and Peninsula City Deal funding, and aims to support the creation of 250 new businesses in the region with workshops held at regional venues in Somerset, Devon, Torbay, Plymouth, Exeter and Cornwall HIGHLIGHTS The first week course is now complete with 110 participants finishing Participants are now evaluating the course, their business plans and funding options Over the next few weeks analysis will take place and a support network will be set up So far a total of 209 start-ups have engaged either through the taster workshops, participating in the course or signing up for the course in September It is recommended that a special workshop is held for PGB members in late September to hear more about the programme and explore what else could be done to promote entrepreneurship across the city Urban Enterprise Programme BACKGROUND Urban Enterprise is a free business creation development programme funded by European Regional Development Fund for people wishing to set up their own business, supporting them from their business idea through to future business growth Between 2010 and 2015 the programme has seen a total investment of circa £15million of which £7.5million is ERDF Plymouth Growth Board Highlights Report, Sep 2014 HIGHLIGHTS Outputs/achievements over last 12 months: Enterprise Coaching: coaching and mentoring for those with a business idea A total of 278 referrals onto the Outset programme have taken place since April 2013 Outset Plymouth: running structured business courses A total of 79 new jobs created and 60 businesses started since April 2013 Outset Finance – running ‘access to finance’ workshops and mentoring for loan finance 50 new jobs created and £200,000 loans offered since April 2013 SW Investment Group – access to SW microcredit fund £140,000 in loans offered since April 2013 Social Enterprise Focus – offering social enterprise awareness, support and social investment and legal advice – supported 30 established social enterprises since April 2013 Millfields Trust Genesis project – provision of 1,995 sq metres of workspace creating 50 job and 10 new start-ups Ocean Studios affordable artists’ studios – provision of 1,906 sq metres of specialist workspace creating 70 new jobs Milestones next 12 months October 2014 – ERDF Case Study legacy booklet & 2nd Urban Enterprise Newsletter October 2014 - Extension of Enterprise Coaching, Outset Plymouth and Outset Finance existing contracts to June 2015 delivering additional outputs and results January 2015 – Urban Enterprise Bi-annual case conference February 2015 – Opening of Millfields Trust Genesis project April 2015 – 3rd Urban Enterprise Newsletter April / May 2015 – Opening of Ocean Studios RAG RATING Plymouth Growth Board Highlights Report, Sep 2014 Both programmes – School for Start-ups and Urban Enterprise – are delivering significant business start-up outputs for the city It is vital that post-funding, a real legacy in terms of enterprise and entrepreneurship is left behind; overcoming the city’s historically low rates of business start-ups is likely to take some time and will involve a permanent shift in culture Support innovation and knowledge based growth  Through the GAIN Growth Hub, help our ‘cutting-edge’ businesses develop new products and services  Build networks and clusters of high-value marine and advanced manufacturing businesses and supply-chains (linked to the MIPC)  Promote best practice in continuous improvement and resource efficiency through a potential Regional Centre for Lean Leadership and Resource Efficiency GAIN Growth Hub – Innovation BACKGROUND As part of the Plymouth and Peninsula City Deal, GAIN will provide a range of improved programmes to support further growth in small and medium enterprises HIGHLIGHTS Innovation vouchers programme (Universities South West) This builds on successful schemes running in both Cornwall and the Heart of the South West areas Using the local intelligence gathered, GAIN will introduce more flexibility in the size of voucher available and will enable small and medium enterprises to use them to buy support from a wider range of organisations The programme is now ready to launch Flyers promoting Innovation Vouchers and draft application form are ready to be printed and circulated electronically once contract is signed SW Marine Energy Park (SWMEP) The SWMEP aims to create a positive business environment that will foster business collaboration, attract investment and accelerate the commercial development of the marine energy sector It is: A collaborative partnership between local and national government, Local Enterprise Partnerships, technology developers, academia and industry; and A physical and geographic zone with priority focus for marine energy technology development, energy generation projects and industry growth Plymouth Growth Board Highlights Report, Sep 2014 The geographic scope of the SWMEP extends from Bristol to Cornwall and the Isles of Scilly, with a focus around the ports, research facilities and industrial clusters found in Cornwall, Plymouth and Bristol So far, the project has achieved 32/50 engagements, 7/15 businesses signed up for business support, and 4/25 jobs have been created Two events are planned to be held in September, October or November on two themes – environmental consenting for marine industry and the impact of electricity market reform on marine renewable energy SW Manufacturing Advisory Service Working with the Manufacturing Advisory Service, GAIN will develop a more bespoke programme of work for the marine manufacturing sector To date the project has engaged 10 businesses (target 25) with many more in the pipeline Most of the businesses supported are located in Devon so SWMAS plans to focus future promotion in Cornwall and Somerset The project is progressing well and has reported an increase in interactions/referrals between group members Marine Innovation Centre (MARIC) BACKGROUND The Marine Innovation Centre (MARIC) accelerates growth by creating intelligent connections between businesses, world-class knowledge, technologies, people and infrastructure Building on the international success of Plymouth University’s Marine Institute and housed within the new Marine Building, together with an Outreach Office at the Bristol & Bath Science Park MARIC streamlines access to the cutting-edge resources of the University and its growing network of specialist partners Run by a dedicated University team and guided by an Industrial Steering Group, MARIC aims to make the South West’s aspiring Marine and Maritime firms globally competitive How: Connecting to the Innovation Infrastructure of the University and its partners; Identifying opportunities for Product and Process Innovation and Knowledge Transfer; Promoting and delivering collaborative partnerships; and Providing access to dedicated Innovation funding HIGHLIGHTS A presentation will be given at PGB meeting of 1st September highlighting some key case studies On 16th September, MARIC will host a Plymouth Chamber event in the Marine Building (17:30-19:30) as part of the Ocean City Festival And at the invitation of the Technology Strategy Board (TSB), it is hosting/coordinating a consortium building event to support SMEs access TSB innovation funding, Plymouth Growth Board Highlights Report, Sep 2014 specifically around the forthcoming competition under Marine Autonomous Systems and Vessel Efficiency It is anticipated that 50-60 delegates will attend the event on the 4th September at Mast House followed by a cruise in the Sound/Dockyard to promote the South Yard, and then a reception at the NMA The TSB event not only supports our SMEs but raises Plymouth’s profile with BIS/TSB and the KTNs Plymouth Science Park Phase BACKGROUND Plymouth Science Park has been successful in attracting a large cluster of high profile firms – currently housing more than 80 organisations, employing around 650 people, and generating nearly £100 million in revenue Plymouth Science Park Phase is one of the City’s priority interventions to support high value, knowledge-based growth HIGHLIGHTS In the recent announcement of the Local Growth Deal, £3m was allocated to the phase development to aid the construction of a building of between 20-30,000 sq ft net lettable Match funding is being sought from the City and from Plymouth University and this support is likely to take the form of long term loans A project working committee has been formed composed of representatives from the City, University and Plymouth Science Park, and survey works have commenced Technical advisors to the project will be appointed in the near future The focus of the building is expected to be in the IT sector and the layout will address the shortage of units in the 1,000-2,000 sq ft range The project is expected to create 124 new jobs by 2020 RAG RATING Plymouth Growth Board Highlights Report, Sep 2014 A number of initiatives are off the ground with others in the pipeline These are designed to build on the city’s distinct competitive advantages (marine) and aim to increase the number of knowledge base jobs, which in turn drives productivity and wealth creation The biggest risks to delivery in this area include: failure to secure match funding or projects not delivered to timescales as set down by various funding regimes (City Deal, LEP Growth Deal) Raise the proportion of city businesses exporting  Increase first stage exporting through targeted support  Develop trade links with US businesses, culminating in a Mayflower 2020 trade expo As part of the Plymouth and Peninsula City Deal, an export support programme has been set up to assist businesses to commence trading internationally online The programme will be delivered by Plymouth Chamber of Commerce who will work with other chambers across the South West Peninsula UK Trade and Investment (UKTI) will develop its local service through two additional advisers and a programme of events focusing on getting businesses to use online trading and exporting A voucher programme delivered through UKTI will also help businesses implement international online trading Plymouth Chamber export advice/events BACKGROUND The Chambers of Commerce are directly engaging businesses seeking to start trading internationally, or expand international trade to new markets, via: Establishing International Trade Clubs and attending International Trade events: o Act as engagement tool for UKTI service & to accessing core UKTI services o Awareness of International Trade opportunities Provision of Specialist Business Advisors with seasoned export experience: o To directly engage with businesses and encourage them, if appropriate, to consider International trade and to access support through the growth hub HIGHLIGHTS Plymouth Chamber of Commerce (PCCI) is lead delivery body: Plymouth Growth Board Highlights Report, Sep 2014 PCCI has a SLA with Somerset, Exeter and Cornwall Chambers and Torbay Development Agency (TDA) Delivery Status: Overall performance on track, despite delay in master contractual sign-off KPI Metrics detailed below Additional information: PCCI provides an export documentation service for businesses which so far in 2014 has issued documentation for exports worth in excess of £16m PCCI works closely with UKTI and with the BCC Overseas Business Network regional coordinator, Sarah Hildersley, to ensure best use of resources Plymouth International Trade Club, DITF and Torbay Export Forum are working well PCCI has also developed good links with many Overseas Chambers A trade mission to Eastern Europe is planned for November 2014, visiting Hungary, Prague and Slovakia Mission is very much business focussed with clear objective of helping attendees to win overseas contracts International Trade Club meeting on September 11th at NMA o Focus on China & Eastern Europe o Speech from Malcolm Macdonald A China “expert”, who has worked with businesses in China over many years o Case study from Mike Cusack of Interlube Systems Ltd o Guests from Gansu Province School in China, who are working with City College Plymouth, on setting up pop up tea shop in Wuwei, China o Delegates will also hear from Marek Schjebel, British Polish Chamber of Commerce, about opportunities available for businesses in Eastern Europe and giving details of the upcoming PCCI/TDA trade mission 15 25 20 15 25 15 15 25 15 35 15 25 15 15 20 15 125 135 75 120 80 On target to meet milestones Emphasis on consistency across areas 110 80 80 80 50 400 Actual Total Target Actual Jan – Mar ‘15 Target Actual 75 25 Oct – Dec ‘14 Target 50 25 25 25 Actual July – Sept ‘14 Target Plymouth Exeter Somerset Torbay Cornwall Total Tolerance April – June ‘14 Actual Attending I.T Events Target KEY METRICS Plymouth Growth Board Highlights Report, Sep 2014 Plymouth Exeter Somerset Torbay Cornwall Total Total Actual Target Actual Target Actual Target Target Actual Total Actual Target Actual Jan – Mar ‘15 Target Actual Target Actual MTD 51 Oct – Dec ‘14 Target 15 10 10 20 July – Sept ‘14 5 3 15 21 3 5 20 2 2 10 15 11 11 13 10 60 Tolerance On target to meet milestones Emphasis also on consistency across areas Actual Target 3 15 Total Target Jan – Mar ‘15 Actual Oct – Dec ‘14 Actual July – Sept ‘14 Actual April – June ‘14 Target 10 10 40 10 30 10 28 14 10 40 5 12 55 73 20 45 30 150 On target to meet milestones Emphasis also on consistency across areas Target Referred to UKTI April – June ‘14 Actual Plymouth Exeter Somerset Torbay Cornwall Total Tolerance Jan – Mar ‘15 26 10 15 10 53 15 10 48 10 10 10 42 10 37 10 20 70 52 30 60 40 200 Good performance No significant delivery concerns Emphasis also on consistency across areas Actual Business Joining ITC Oct – Dec ‘14 18 18 17 17 Target Tolerance July – Sept ‘14 Target Plymouth Exeter Somerset Torbay Cornwall Total Actual April – June ‘14 Target Advisor Assistance Plymouth Growth Board Highlights Report, Sep 2014 Trading Online (UKTI) HIGHLIGHTS A total of 140 businesses have attended the Digital Marketplace workshops Another two workshops will run during the week commencing 28th July and then start again in September Content of the workshops has been tweaked in line with feedback The day course, in September, for upskilling Web Developers to internationalise websites has businesses signed up The course is the only one in the UK to be accredited When Web Developers complete the course they will receive accreditation RAG RATING Through the City Deal, actions have been taken to address the city’s generally poor engagement with international markets To date, outputs have exceeded targets across all of the key metrics A challenge for this area of activity is to ensure that progress made continues and that new sources of funding are sought (post City Deal) The opportunity to build trade links to the US ahead of Mayflower 2020 also needs to be taken forward over the coming weeks/months Attract and support new business investment  Target and support new inward investments through a co-ordinated, ‘can-do’ approach  Deliver an investor readiness programme to support business plans and investment pitches  Create a single access to finance platform for business through a GAIN Growth Hub Inward Investment activity – marketing and events BACKGROUND Attracting new businesses to the city delivers clear economic benefits in terms of new employment and output creation We will work with partners across the Peninsula, adopting a proactive and co-ordinated approach to securing new inward investment In doing so we need to sell our strengths as Britain’s Plymouth Growth Board Highlights Report, Sep 2014 Ocean City, where our quality of life, low carbon/marine credentials, social enterprise strengths and extensive talent pool, represent significant hooks for new investment In 2013, 75% of all FDI nationally was additional investment secured by businesses already in the UK In the Heart of the South West, UKTI reported 100% of all investment was from businesses already based in the area There is a clear rationale to focus the majority of our resources on supporting the businesses already in the city and helping them grow HIGHLIGHTS Heart of the South West LEP Inward Investment Manager A new Inward Investment Manager has been recruited to assist businesses interested in relocating to Devon, Plymouth, Somerset and Torbay The post is being funded through the Peninsula City Deal Growth Hub Julia Stuckey will be based at the Heart of the South West Local Enterprise Partnership where she will support the development and delivery of the LEP’s inward investment strategy, actively identify inward investment opportunities and act as a key point of contact for businesses considering a move to Devon or Somerset Pivotal to the role is linking up the LEP, City Deal partners, national government and UKTI activity to ensure a coherent and joined up approach in communicating the right inward investment message and support available to target sectors and business A ‘soft landing package’ (£275K) will be managed by the Inward Investment Manager, focused on Foreign Direct Investment into the area PCC will be the accountable body for the inward investment but this will be steered by representatives of the LEPs and LAs Trade Events Inward investment event activity over last 12 months: The PCC Enterprise and Inward Investment (EII) team hosted a stand at the Plymouth Business Show in June which was well attended The EII team attended the All Energy show in Aberdeen in May to promote the Plymouth offer to the industry Plymouth exhibited on a shared stand with other members of the South West Marine Energy Park As a result of this and the UK Wave and Tidal show in February, there are four warm leads being pursued and a small database of companies who expressed interest in being kept informed regarding opportunities at South Yard The EII team attended the civic reception on 13th June for La Solitaire du Figaro which was hosted by Plymouth City Council The team was able to invite and nurture several potential leads The new HotSW Inward Investment Manager attended the Farnborough Airshow in July, with Hymec, Barden Corporation and UTC Aerospace from Plymouth all present At the show, 59 contacts were made including a combination of potential inward investors (a couple of very warm Plymouth Growth Board Highlights Report, Sep 2014 leads) and local businesses with some potential to grow / attract inward investment via their supply chain In addition, the local businesses invited to exhibit at the show all reported commercial successes and all have asked for further information on the LEP, business support and growth products The EII team hosted an inward investment event with key players and potential leads at the British Fireworks Championships A range of businesses were in attendance (60 guests) and a number of warm leads were picked up which are now being actively pursued: Upcoming events for 2014/15 include: Japan 400 celebrations (September 2014): focusing on the business element of the 400th anniversary of Japan and British relations MIPIM (October 2014): property and investment trade show being held at Olympia London between the 15th and 17th of October 2014 Marine Equipment Trade Show, Amsterdam (November 2014 Southern Manufacturing, Farnborough (February 2015) Marketing activity A new website (Investinplymouth) dedicated to investment in the city, integrated with the current Visit Plymouth website is close to going live This will include a Relocation Guide – requested by businesses as part of the Council’s Business Relationship Programme The Book of Wonder has proved a valuable asset to the city’s inward investment toolkit It has drawn positive feedback from both indigenous businesses and potential investors http://www.plymouth.gov.uk/book_of_wonder.pdf GAIN Growth Fund Plus BACKGROUND The third component of the GAIN Growth Hub – local business support schemes – includes the GAIN “Growth Fund Plus” (GGF+) grant programme The scheme provides grants of up to £1 million to businesses that require gap funding to: unlock transformational growth and job creation plans; and lever in significant private sector investment HIGHLIGHTS GGF+ portal opened for weeks between February and April 2014 Snapshot of fund to date: Around 150 expressions of interest logged £15.7m of bids for c.£3m fund Plymouth Growth Board Highlights Report, Sep 2014 Total of 24 projects approved - £2,666,839 (£5,959 per job against target £6,905); forecast jobs 448; £13.6m private sector leverage; 17% ‘Intervention Rate’ Of these projects, are in Plymouth – total funding of £982,083 (£7.1m private sector) and 156 forecast jobs (Absolute Recycling, Boringdon Hall, IO, Pipex, Seahawk Workboats Ltd, Tooltech Ltd and Tufcoat) There is currently a project underspend and potential applicants are being actively pursued to soak this up Social Enterprise Investment Fund BACKGROUND A new investment fund of £500,000 was launched by Plymouth City Council to help social enterprises develop The funding comes from the Council's 'Building for Jobs' Investment Fund – one of the Council's 19 'Plan for Jobs' projects aimed at unlocking stalled developments, creating new jobs and levering additional public and private sector finance The fund is a mixture of grant and loan and each investment assessed on a case by case basis It is envisaged that £300,000 will be allocated as repayable loans and £100,000 allocated as grants and £100,000 will be allocated on investor readiness business advice Social enterprises are businesses with primarily social objectives whose surpluses are reinvested back into the business or in the community HIGHLIGHTS The first Social Enterprise Investment Fund panel met last week and considered 17 expressions of interest to the fund Of these, six have been invited to make a full application: RAG RATING A number of inward investment leads have been generated by activity (business support, events, and marketing) – these need to be further nurtured to ensure positive outcomes in terms of job creation Grants have been allocated to a number of city businesses with outputs to be delivered and monitored over the coming months Investment continues to be dominated by the expansion of indigenous firms and interventions geared towards supporting this should be a priority Plymouth Growth Board Highlights Report, Sep 2014 DIGITAL ECONOMY ‘Delivering the demand stimulation and business opportunities to make the most of the city’s strong digital connectivity’ HEADLINE SUMMARY Digital Plymouth has been chaired by Plymouth Chamber of Commerce through David Parlby who sponsored the creation of the Digital Economy Flagship action plan Peter Hartland has recently agreed to take this role forward and will chair the first meeting of the Digital Plymouth group on September 4th To deliver the LES the group will be widening its scope and membership to cover supply of connectivity, take up of connectivity and innovation First action points for group in September meeting:  Assign responsibilities against each action; and  Draw up a more detailed action plan with risks Following this the Digital Economy Flagship will provide a full report back to the Growth Board at a future Board meeting Introduction The Digital Economy Flagship is a critical opportunity in its own right, and also a cross cutting enabler for other flagship areas It is suggested that the Growth Board suggest specific leads form other flagships to link to the Digital Economy group, specifically: Ocean City Infrastructure Create the conditions for knowledge-based business growth - (connectivity and digital skills) Enhance the city’s commercial and residential property offer – (business parks connectivity and improving underserved residential areas) Business Growth and Investment Raise the proportion of city businesses exporting / start-ups – (web fuelled exports) Plymouth Growth Board Highlights Report, Sep 2014 Learning and Talent Development Basic, STEM and employability skills (digital inclusion projects) Visitor Economy and Culture Unlock the potential of the city’s creative sector and cultural heritage (Wi-Fi and Digital Academy) Strategic Objectives: Digital Economy Unlock barriers to digital connectivity among businesses and residents Key actions:  Ensure all of our business parks are connected to Superfast broadband  Increase levels of web-fuelled business exports for SMEs  Deliver free Wi-Fi connectivity in public areas across the city  Ensure all of our business parks are connected to Superfast broadband Early stage development Solutions being scoped PCC are in discussion with a private sector provider regarding a commercial solution to underserved business parks Publicly funded solutions are currently not viable due to state aid The recent publicly funded voucher scheme has suffered poor take up from business so is also not viable The SW Digital Connectivity Group and a private telecoms consultancy are engaged in order to tap into national best practice Success measure(s): 100% Superfast Broadband coverage for PCC business parks Baseline mapping to follow  Increase levels of web-fuelled business exports for SMEs (See ‘Business Growth and Investment’)  Deliver free Wi-Fi connectivity in public areas across the city On track for go live in November 2014 Plymouth will have one of the biggest and best free Wi-Fi networks in the UK PCC through Digital Plymouth conducted a concession with the private sector which traded access to PCC owned street furniture (for mounting telecommunications transmitters) in return for a free public Wi-Fi service for the city centre and waterfront areas There were three credible bids and BT won Plymouth Growth Board Highlights Report, Sep 2014 The network will provide: o 100% free access for all users 24/7 o PCC branded and controlled landing page – BT estimate weekday use at 1,500 logged on clients o Revenue share (predicted £35k pa) which PCC has committed to reinvest in additional connectivity and demand stimulation o Potential for an SAP user informatics package for retail and other applications As an additional consequence this is predicted to enable improved rollout of 4G mobile coverage Support development and retention of digital skills and entrepreneurs Key actions:  Increase retention of digital skills and entrepreneurs, including through a Digital Skills Academy  Facilitate access to the web for all citizens  Deliver multi-level ICT training provision including basic ICT skills  Increase retention of digital skills and entrepreneurs including through a Digital Skills Academy Early stage development Requires additional resource Two Plymouth organisations have live plans which meet this objective Both are represented within the group The group should be used to advise and sponsor the development of such projects  Facilitate access to the web for all citizens On track but may require more resource 21% of Plymouth has no wired internet access at home (roughly in line with UK average) This represents a significant barrier to skills and productivity for the city In 2013 PCC initiated a partnership called Get IT Together Plymouth that aims to create 2,500 new internet users The partnership is a three year, £330,000 project funded by BT, PCC, Plymouth Community Homes, Job Centre Plus and the NHS which works through community partners to deliver training and ICT kit The project has received national recognition for its strong partnership In its first year Get IT Together took 747 people through a three stage basic web course The project delivers regular web awareness/training courses with city partners This partner led approach has been recognised by Plymouth becoming the lead exemplar in a bid into the Big Lottery which will develop a systemic approach to digital inclusion Plymouth Growth Board Highlights Report, Sep 2014  Deliver multi-level ICT training provision including basic ICT skills In early stage development Requires strengthened linkage to Skills Flagship and high level buy in Go On (Leading Digital Inclusion organisation) predict that by 2020 90% of all jobs will require ICT skills The Get IT Together partners (see above) agreed to scope an offer for basic ICT provision in the workplace This would be designed to complement and feed into formal training delivered through FE The rationale is to avoid unskilled digital employees sleepwalking into redundancy by using large employers as a conduit to mass in house training Exploit new digital technologies and innovations Key actions:  Ensure the city remains responsive to new digital innovations to drive resource efficiencies and economic growth  Ensure the city remains responsive to new digital innovations to drive resource efficiencies and economic growth UOP group members coordinating a meeting with IBM to present to the Digital Economy group on Sept 4th, taking forward the work done in the TSB Future Cities bid and as part of ongoing exploration regarding the potential for Future City Technologies in Plymouth Utilising shared data has been raised as a potential work stream but will need resource and top level buy in to progress Work will continue to explore the viability of developing the critical mass to enable to Plymouth Data Centre as will any potential to increase the supply of connectivity