The best ways to attract new investment and jobs was the topic of debate at a specially convened roundtable discussion held on 26 February in Corby, Northamptonshire. The event, hosted by North Northants Development Company (NNDC), provided an opportunity for senior representatives of North Northamptonshire councils, Northamptonshire Enterprise Limited, emda (East Midlands Development Agency) and NNDC to discuss key inward investment issues with some of the UK’s leading experts on the subject as well as private sector developers and property advisers.
In a lively debate lasting 90 minutes plus added time, participants set about the key issue facing not just North Northamptonshire but just about every UK town, city and region – how to attract more investment?
Event host Simon Evans, Chief Executive of NNDC, said:
“From our experience, effective partnerships between the public and private sectors are the basis for real delivery on the ground so this was an important and worthwhile event.
Ambition for people and places lies at the heart of the growth agenda for our area and we need to work together to get this message across.
Kenmark’s investment in North Northamptonshire, facilitated by emda and the East Midlands China Business Bureau, was one of the UK’s inward investments highlights for 2009 and we know similar success stories will be vital to driving economic recovery in the sub-region.”
The event was chaired by inward investment consultant Adam Breeze who said:
“It is right and proper that we are having this discussion here in North Northamptonshire given its recent success in transforming itself into an investor-friendly, attractive business location. Some observers believe that the UK can no longer attract the larger industrial projects that shaped inward investment in the 1980s and 1990s, but the historic Kenmark deal last year was the largest ever Taiwanese success and will create hundreds of jobs for the area.
However, it is important to keep moving forward and to make sure that the next opportunities, be they in renewable energy or building technologies, are grasped and converted into jobs and investment too. The way that North Northamptonshire works together is a lesson for other parts of the UK, with local differences being put aside for the greater good of the wider area. With the constraints on the public purse for many years to come, locations must work together in a cost effective and collaborative way to maximise limited resource.”
Establishing what companies want from a location was the starting point for discussions with Paul Nunn of East West Locations, who has advised major blue chip companies on corporate location strategies, highlighting the increasing importance of local skills. He said:
“Ten or 15 years ago, the relocation decision was driven by property. Now we’re seeing a much more sophisticated approach to the business plan over the long term. Firms are thinking about factors such as whether a region has an ageing population and the 10 year lifecycle in the business plan.
Cheap locations might look great in a spreadsheet but if the skillset is lacking, recruitment costs could be very high.”
Tim Bagshaw, Head of Investment at Northamptonshire Enterprise Limited (NEL) pointed out the importance of a location delivering a co-ordinated and focused offer:
“Given businesses have such different needs, we need to get clearer about how we produce the right product for the right investors.
Firms are looking for supportive local authorities and good grant structures so different bodies have to come together to make things happen.”
Confidence in the product offer was a theme taken up by Grant Seeley - Director of Inward Investment, Invest Milton Keynes:
“Historically the Black Country provided a low cost product base and the automotive offer despite the investment function being focused in just one of the four boroughs. Now companies are looking much more to the North West.”
In discussion on how competitive Northamptonshire was as a business location, Gregg Chopper, Economic and Regeneration Manager at Kettering Borough Council, pointed out the importance of adopting an international perspective:
"We need to remember we’re in a global economy now so firms need to be close to connectivity hubs. The UK is not as sophisticated in its approach as Europe so can be left with low level manufacturing opportunities. We should have put out the right messages previously.”
Derek Lisley, International Investment Manager at the East Midlands Development Agency (emda), cautioned against overlooking the potential for growth of existing businesses and urged people to think about the business opportunity. He said:
“People won’t come if they can’t make a profit. Profit and investment seems to be the elephant in the corner:”
Representatives from both the public and private sector identified the importance of profile as a precursor for investment. Chris Mallender, Chief Executive of Corby Borough Council, said:
“There’s a need for visibility. In contrast with South Yorkshire, North Northants is several decades behind. It’s not a level playing field. The North is still more dominant than the West Midlands. Kenmark was the second-best inward investment projects nationally last year but we need to be distinctive. We have a great location but we under-perform.”
Alf Buller of the property development company Bee Bee Developments agreed:
“We need the X Factor if the county is to create new homes and jobs. It’s a sexy location that’s key, just look at what happened with Clerkenwell and the City Fringes. The region may be a good location for the next 25 years but we also need to make the brand sexy. In North Northants, you can get to 75% of the population within a two-hour drive.”
The importance of how an area was marketed was an issue taken up by David Wright, Chief Executive of NEL:
“The key is not just the place but the quality of service and how you nurture relationships with investors. The Northamptonshire Ambassadors Programme has been very successful but we also need to be smarter about using new technology.”
In conclusion, all participants agreed that working closer together was vital to achieving further inward investment in Northamptonshire.
Nick Bolton, Director of Inward Investment and Marketing at NNDC, said:
“Yes, there are practical issues but you need collective ambition, commitment and collaboration – then you can get the system right, it’s about trust.”
James Wilson, Corporate Director, Borough Council of Wellingborough, said:
“You need to build on what you’ve got. Yes, a local network is important but you also need to tie up with development agencies and developers. Whatever the route, we need to create a unified team.”