NORTHERN POWERHOUSE: BUSINESS OPPORTUNITIES FOR IRISH COMPANIES - #GlobalAmbition - Enterprise Ireland
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NORTHERN POWERHOUSE:
BUSINESS OPPORTUNITIES
FOR IRISH COMPANIES
#GlobalAmbitionMessage from the CEO
The UK is Ireland’s number one export market, The Northern Powerhouse, a UK Government
representing a value of €7.5 billion exports and initiative to rebalance the UK’s national economy, is
35% of our total exports. As long-standing trading an example of the strong business and partnership
partners, the UK is, and will remain, the largest opportunities which exist for Irish companies in the
export market for indigenous Irish companies. UK. Within the Northern Powerhouse framework,
As Brexit negotiations progress, without doubt, significant opportunities for growth have been
significant challenges remain for Irish companies. identified in construction, life sciences digital
The slowdown in the UK economy and continued technology and cleantech and these very much
currency volatility is impacting the profitability play to the strengths of a large cohort of Irish
of Irish companies and we expect 2018 to be a companies.
particularly challenging year for Irish companies. Enterprise Ireland will play a central role to
However, while there are challenges, opportunities support Irish companies to navigate and access
remain and in this regard, Enterprise Ireland has these opportunities and I hugely welcome the
increased resources and is focused on supporting collaboration from our UK partners on this.
Irish companies to consolidate and grow exports
to the UK market, while also supporting them to
diversify their export markets across the globe.
Julie Sinnamon
Chief Executive Officer
Enterprise Ireland
2Overview of Opportunities
Northern Powerhouse, a UK Government New growth economic activities, utilising
initiative to rebalance the national economy, emerging strengths and capabilities,
was developed in 2014 to address the North particularly in science and innovation and
of England region’s economic disparities in including advanced manufacturing, digital,
comparison to other regions such as London and energy, and life sciences and healthcare.
the South East of England.
The region covers an area of approximately 14,400 There are also a number of supporting measures
square miles, with a population of some 14.9 which should develop as key components
million at the 2011 Census. If it was a country, it of Northern Powerhouse. These include
would be the 10th largest economy in Europe. It improvements to skills and education, culture, and
exports £50 billion worth of goods and had a GVA international engagement, including exporting.
of £317 billion in 2015, representing 19% of overall
There are significant opportunities arising from
UK GVA.
these developments. These include increased
The North of England is engaged in an impressive trade, participation in growth developments,
and historic transformation from its industrial past the growth of science and innovation clusters,
to a bright and successful future characterised and participation in the overall development
by attractive and vibrant cities and globally of Northern Powerhouse as it seeks to achieve
competitive knowledge-based economic activities. greater overall prosperity.
The Northern Powerhouse approach is to Standout opportunities for Irish businesses
maximise the combined potential of the North’s include:
cities and city regions to achieve a critical mass
• The construction of 500,000 new homes,
where the whole is greater than the sum of the
particularly affordable housing
parts. The goal is to create a collection of northern
cities – sufficiently close to each other that • Flagship regeneration projects, including the
combined they can take on the world. International Advanced Manufacturing Park
in the North East, the Mayoral Development
That aim is to be achieved principally by
Corporation at Redcar, and Sheffield’s
improving connectivity between city regions
Advanced Manufacturing Innovation Centre
through substantial improvements to transport
• The development of new life sciences and
infrastructure.
healthcare facilities
Northern Powerhouse has a number of activity
• Collaboration on scientific research and
strands being taken forward by a wide range of
innovation projects
bodies. The initiative has also been adopted with
• The supply of engineering products and
enthusiasm by businesses, city governments and
services related to renewable and nuclear
other organisations located in the North.
energy
Overall, the Northern Powerhouse is creating a
• Collaboration with digital start-ups through
wide range of opportunities for business both
virtual clusters
within the region and externally.
• The construction of major rail and road
This report identifies three key pillars supported developments
by a range of other measures, which provide a
• Cultural collaboration, including joint
useful framework for more detailed investigation
productions and the construction of new
of these opportunities.
facilities.
These pillars are: Realising these opportunities will require
detailed and extensive business intelligence and
Growing city regions experiencing development. The principal aim of this report
substantial investment and regeneration, is to provide a high-level guide to the Northern
with new Mayoral authorities and increasing Powerhouse and how it could develop. Accessing
powers devolved from central Government individual opportunities will require targeted
activities by interested businesses and their
representatives, and this guide will hopefully
Improved connectivity, primarily achieved provide a context and a framework for that
through improved transport infrastructure activity.
3CLEANTECH & LIFESCIENCES DIGITAL
RENEWABLES TECHNOLOGIES
The North East and Northern Powerhouse is home to leading The digital economy is
Yorkshire are among the biotech clusters in Manchester’s Alderly Park booming, and the North is
UK’s leading regions with with over 150 small biotech firms located currently at the forefront of
respect to renewables here. Pharma manufacturing has seen huge this transformation. Each
including wind energy, investment in high technology manufacturing of the North’s regions has
water and power and the region counts for 13% of EU a unique digital specialism
generation. biopharmaceutical production. – from data analytics in
Major interest in the region Darlington is home to £38 million project in Leeds, to digital media
has seen Siemens build Biologics with one of Europe’s largest biologic in Manchester, to gaming
its offshore wind blades in manufacturing clusters in Speke also included. in Sunderland – and the
Hull, and Denmark’s Ørsted North’s digital economy
From a medtech perceptive there are strengths
(previously Dong Energy) is worth £9.9 billion to
in orthopaedic, wound care and surgical.
announcing they expect the national economy,
Key players: Unilever, CRODA, Nestle, Quorn, accounting for 5.2 per cent
to invest £1 billion in local
Davy Process Technology, ThermoFisher, of the region’s GVA.
businesses in the North
GSK, MSD, Piramal, Aesica, Eli Lilly, Actavis,
East by 2019 as part of its Key players include the
Fujifilm Diosynth Biotechnologies Medimmune
North Sea wind projects. BBC, ITV, TechCulture, HS
and Seqirus, Smith and Nephew, Waters,
Key projects include the Digital, Rockstar Games,
Surgical Innovations, Reckitt Benckiser, JRI
Able Marine Energy Park Sky’s Betting, JD Sports
Orthopaedics, Swann Morton and DePuy.
in the Humber Port, Green and Shop Direct.
Port Hull and the Wind
Turbine Blade Test facilities
in Blyth.
CONSTRUCTION
In recent years, many of the
cities within the Northern
Powerhouse region have
experienced a significant
increase in new building
and infrastructure projects.
Greater Manchester’s boom
across transport, energy
and residential sectors has
been led by the ongoing United Kingdom
regeneration at Manchester
Airport and Salford Quays.
A strong pipeline of key
investments is supporting ENGINEERING & MANUFACTURING
further development in the
wider North West including
HS2 and Liverpool Docks. The North of the UK remains a key production area for high end
Key players in the region are manufacturing, automotive, off highway and Rail OEM supply chain activity
spread across the private across the North East and West as well as strong aerospace clusters.
and the public sector; As industrial digitalisation transforms manufacturing, IOT, AR, 3D Printing
at a local, national and and robotics will become more important with the location of the Advanced
international level. Leading Manufacturing Research Centre at the University of Sheffield.
contractors in the region Current key players in the region include Airbus, Rolls Royce, Bae, Raytheon,
include Laing O’ Rourke, Nissan, General Motors, VW (Bentley) and Jaguar Land Rover, Magellan
Vinci, Morgan Sindall, John Aerospace, Thyssenkrup Aerospace, Caterpillar, Hitachi, Cummins and Elddis
Sisk & Son and Mace. Caravans & Motorhomes.
4Regional Examples
NEWCASTLE Key Sectors
NNE Digital and Tech,
Advanced Manufacturing
Gross Value Added (GVA) & Automotive, Financial TEES Key Sectors
£38.7bn & Professional Business
Services, Life Sciences
VALLEY Advanced Manufacturing,
Creative & Digital,
and Energy Gross Value Added (GVA) Lifesciences, Biomass,
GVA per Worker
£43,116 Includes £12.6bn Process & Chemical
Newcastle, Gateshead, Includes
North Tyneside and South GVA per Worker
Population Darlington, Hartlepool,
1,970,000
Tyneside and Sunderland
£45,700 Middlesbrough, Redcar
and Cleveland, and
Source: North East Local Enterprise
Partnership. 2016 figures Population Stockton-on-Tees
667,500 Source: http://www.centreforcities.
org/tees-valley/
SHEFFIELD
North East REGION
Gross Value Added (GVA)
£24.3bn
GVA per Worker
Tees Valley £43,700
Population
1,374,600
West Yorkshire Humber
Key Sectors
LEP
Advanced Manufacturing,
Liverpool Creative & Digital,
City Region Lifesciences, Biomass,
City Financial & Professional
Sheffield Non-city Includes
City Region City region Barnsley, Doncaster,
Greater boundary Rotherham and Sheffield
Manchester
GREATER Key Sectors
MANCHESTER Advanced Manufacturing,
Creative & Digital,
LIVERPOOL Key Sectors Gross Value Added (GVA) Lifesciences, Biomass,
REGION Advanced Manufacturing,
Creative & Digital,
£59.6bn Financial & Professional,
Education
Gross Value Added (GVA) Lifesciences, Biomass, GVA per Worker
£29.5bn
Includes
Financial & Professional
Includes
£48,100 Bolton, Bury, Manchester,
Oldham, Rochdale, Salford,
GVA per Worker
Halton, Knowsley, Population Stockport, Tameside,
£48,100 Liverpool, St Helens,
Sefton and Wirral 2,756,100
Trafford and Wigan
Source: http://www.centreforcities.
Population Source: http://www.centreforcities. org/greater-manchester/
1,524,500 org/liverpool-city-region/
5Pillar 1:
City Regions
The Rebirth and Future Growth of The Innovation District – a 800-hectare
Northern cities development encompassing Advanced
Manufacturing Park and Sheffield Business Park in
In many respects, Northern Powerhouse is a vision
Sheffield/Rotherham
for the growth of the great cities and towns of
the North. The ongoing renaissance of the North’s Leeds South Bank – a 185-hectare city centre
major cities is the most visible manifestation of the location comprising multiple mixed-use
initiative. developments, including the location for the HS2
station, Leeds
All of the core cities of the North have experienced
major transformations over the past 30 years. Manchester City Centre – a major building boom
These include Liverpool, Manchester, Newcastle that is set to continue through several major
upon Tyne, Sunderland, Middlesbrough, York, mixed-use developments, including 40,000
Leeds, Sheffield, Hull and Doncaster. homes, substantial office space, cultural and
leisure facilities, continuing the transformation of
The key components of these transformations have
Manchester to a world-class city
been the physical rebuilding of areas previously
characterised by large-scale dereliction; the Knowledge Quarter – a major city centre
emergence of new leisure and cultural facilities and development based on education and innovation,
activities; the increased prominence of universities including healthcare facilities in Liverpool
and substantial student populations; and the Salford Quays and Trafford Wharfside –
growth of new economic activities, particularly of continuation of recent regeneration which includes
a high technology nature. Media City and facilities for the digital sector in
Salford, Greater Manchester
Transformational Developments
These transformational developments are ongoing Housing
and are spreading to other parts of the North’s city A particular opportunity also exists in respect of
regions. This represents a major, multi-billion euro housing. There has been a substantial shortfall
opportunity for construction and development in the number of housing units constructed in
at least on a par with anywhere else in Europe. England over the past two decades. The shortfall
The opportunity encompasses major flagship is estimated at 2.5 million units and is growing at a
developments as well as a great many smaller- rate of 100,000 each year.
scale and more diffused developments.
While the most pressing shortage is perceived as
Major flagship developments currently ongoing being in London and the South East of England,
include: there is also both need and scope in the North. The
Energy Central – a 200-hectare deep water opportunity includes refurbished units throughout
access development focused on offshore energy the city regions and potential new ‘garden’ towns.
businesses in Blyth, Northumberland In addition, as regeneration has progressed,
there has been a return to living in central urban
International Advanced Manufacturing Park – a
locations, accompanied by leisure and other
new location for automotive supply chain and
local service amenities, which will present further
advanced manufacturing businesses, next to the
opportunities.
Nissan car manufacturing plant in Sunderland
It is worth noting in relation to these opportunities
Able Marine Energy Park – a 250-hectare
that the general local authority approach in
development focused on offshore and renewable
the North has been, and continues to be, pro-
energy manufacturing at the Humber Enterprise
development.
Zone, North Lincolnshire
6Strategic Economic Plans Devolution is now being advanced in England in a
quite ambitious manner. From May 2017, additional
Over recent years, local areas have been
powers, budgets and responsibilities have been
developing Strategic Economic Plans (SEPs),
devolved from central Government to new
particularly focused on developing indigenous
combined authorities, with ‘Metro Mayors’, which
capabilities and strengths in the knowledge
are intended to encompass entire city regions.
economy. These have included digital businesses
Seven such deals have been agreed, four of which
in Newcastle, media in Manchester, professional
are in the North: Liverpool, Manchester, Tees Valley
services in Leeds and advanced manufacturing in
and Sheffield. A further, North of Tyne, deal has
Sheffield and Sunderland.
also been agreed in principle.
Key to the development of these SEPs are the
The Metro Mayors are directly elected, and have
Local Enterprise Partnerships (LEPs), which bring
powers and responsibilities to make strategic
together local business and political leaders. There
decisions across city regions. The exact functions
are 11 LEPs in the North: Cheshire and Warrington;
they manage vary across different combined
Cumbria; Greater Manchester; Humber; Lancashire;
authorities, depending on the detail of the
Leeds City Region; Liverpool City Region; North
devolution agreement reached with central
East; Sheffield City Region; Tees Valley; York; and
Government. The majority of city regions are
North Yorkshire and East Riding.
focusing on gaining powers over skills, housing
and transport.
Funding Supports These Devolution Deals will be central to the
design and delivery of many Government policies
The development of programmes to support
in Northern Powerhouse. They will boost the
local projects has been funded through a number
capacity to achieve the aims and objectives of
of City Deals, Growth Deals and, most recently,
Northern Powerhouse, and confirm that cities and
Devolution Deals.
city regions which can combine together where
City Deals commenced in 2012 and are essentially appropriate are the essential building blocks for
agreements drawn up between local city the future.
authorities and their LEPs on the one hand, and
central Government on the other. They are based
on the ‘Localism’ principle that local leaders are
best placed to identify the needs of their areas.
They include the transfer of funding and decision-
making powers for specific purposes. Investments
under the deals have included skills development,
transport infrastructure, urban regeneration,
housing, and low carbon initiatives.
Growth Deals were introduced in 2013, and are
implemented by LEPs to progress their Strategic
Economic Plans. Similar to City Deals, they are
focused on funding for specific projects.
7Pillar 2:
Transport
Connectivity and the Creation of a The construction of the HS2 High Speed Railway
Single Economic Area from London to Birmingham and then onwards
to the North is at the core of England’s national
A great global city has many things. Great jobs
rail development. HS2 Phase 2b will see the lines
and businesses. Fast and effective transport
proceeding from the English Midlands on to
connections. Strong universities and hospitals,
Manchester and Leeds. A further £300 million has
colleges and schools. It also has the entertainment,
been committed to enable the incorporation of
the green spaces, the housing, culture and sport
onward links to other key cities in the North.
that make for a good lifestyle.
North of England cities possess all of these things
but are separately quite small on a global scale. Northern Powerhouse Rail
The Northern Powerhouse is aimed at addressing This further phase will also see the development
this by combining them into a collective which of HS3, or what is now being termed Northern
is greater than the sum of its parts. That will be Powerhouse Rail. This will create new East-West
achieved by providing fast, reliable, frequent and links, including high-speed routes between Leeds
sustainable transport connections between them. and Manchester, and further improvements to
This will connect the cities of the North to Liverpool in the West as well as to the North East.
establish a single economic area that is able to The development of Northern Powerhouse Rail,
make the most of its capabilities and strengths and and its links into HS2, will in many ways be the
to develop these further. crowning achievement of this initial phase of the
Northern Powerhouse.
Transport for the North These developments present direct opportunities
during their construction and operation. They will
This investment in critical transport connectivity
also bring about major investment opportunities
is now taking place and growing in scale and
in their immediate environs, such as the Leeds
ambition. A key early development was the
station area. They will transform the connectivity
creation of Transport for the North (TfN) as
of the North with other parts of the UK, notably
an organisation that brought together local
with London and the South East of England.
government leaders and local businesses, primarily
in the form of representatives of the LEPs, to Most importantly perhaps, they will transform
facilitate the transformation of the transport the connectivity between the North’s key cities
system across the North. TfN will be put on a and towns, creating new opportunities for
statutory footing this year and will complement employment, growth, productivity, sustainability
existing local transport bodies and add strategic and quality of life.
value at the trans-Northern level.
The UK Government shares the view that
improving transport is critical to the Northern
Powerhouse and over £13 billion in transport
investment has been committed during the lifetime
of the current Parliament.
8Pillar 3:
Sectoral Strengths
Emerging Sectoral Strengths and Three ‘Enabling’ Capabilities were also identified:
Capabilities — Financial and professional services to support
Science and innovation have been key aspects the development of the ‘Prime’ capabilities,
of the Northern Powerhouse vision since its while being sources of growth in their own
inception. The North is undergoing a major shift right
in its economic structure. This utilises existing — Logistics, including ports and airports
strengths and capabilities in the North, in many
cases associated with world-class universities — Education, primarily higher education,
and teaching hospitals. They are also aligned providing research capability and knowledge
with world-wide demand, and as such are likely excellence.
to constitute major sources of growth and future
prosperity.
Emerging Clusters
The economy of the North is dominated by
Major clusters of activity in these areas are
services activity, in common with elsewhere in
emerging across the North, and there are very
the UK. Much of this is of a local nature, but there
significant opportunities to become engaged
are also important tradeable services, including
in their development. These clusters are being
logistics, professional services, media, tourism,
supported by a range of measures and dedicated
healthcare and education. IT and digital services
business investment funds, such as the new £400
are also a growing feature of many of the North’s
million Northern Powerhouse Investment Fund.
cities. Complementing these service activities
The activities within these clusters are generally
are important clusters of manufacturing and
of a world-class nature and are in market areas
productive activity, including manufacturing and
that are growing rapidly, and are in demand
chemical engineering.
internationally.
Many of the developments within these clusters
Future Opportunities have been supported by national UK Government
The most significant future opportunities are likely funding. This has included funding from Innovate
to arise from new economic activities and clusters UK Programmes and the Catapult Programme,
which are largely based on science and innovation. with key elements of the latter programme
The LEPs have all identified opportunities for the located in the North, including those for offshore
future, and have included these in their Strategic renewable energy, high-value manufacturing and
Economic Plans and investment plans. digital.
The Northern Powerhouse Independent Economic It is now of particular importance that these
Review matched these opportunities with wider, areas of focus and their development are aligned
international market and technological changes with the new UK Industrial Strategy which was
and identified four supporting Pan-Northern launched in December 2017 and is aimed at
‘Prime’ Capabilities: identifying the opportunities and requirements
of new economic activities that can be suitable
— Advanced manufacturing for the UK. This will deliver ongoing support,
— Energy generation, storage and low carbon momentum and investment and further facilitate
technologies the creation of internationally successful clusters,
providing growth, exports, and opportunities for
— Health innovation, including e-Health and the
the Northern Powerhouse.
integration of health and social care
— Digital, including high-performance
computing, data analytics, and machine
learning.
9References
Digital References Construction References
https://www.ippr.org/publications/devo-digital http://www.centreforcities.org/reader/move-
public-sector-jobs-london/relocation-bbc-
activities-salford/2-regeneration-salford-quays/
Cleantech & Renewables
https://www.manchestereveningnews.co.uk/
https://www.siemens.co.uk/en/wind/hull.htm business/business-news/manchester-city-centre-
development-highest-12527535
https://assets.dongenergy.com/
DONGEnergyDocuments/uk/Offshore%20 https://www.my.glenigan.com/#/insight/
Wind%20Week/REGENERIS%20DONG%20 a6A20000000Gp58EAC
Impact%20on%20the%20Humber%20Study%20
-%20FINAL.pdf
Lifesciences References
https://www.n8research.org.uk/media/The-NPH-
Engineering References
Life-Science-Pitch-Deck.pdf
http://www.bbc.co.uk/news/uk-england-south-
https://www.armstrongceilings.com/content/
yorkshire-38906972
dam/armstrongceilings/commercial/europe/case-
https://www.gov.uk/government/news/boeing-to- studies/national-biologics-manufacturing-centre-
open-new-production-facility-in-sheffield case-study.pdf
https://www.pharmafield.co.uk/features/2017/06/
Top-5-RD-hubs-in-the-UK
10Enterprise Ireland
Supports
Helping you succeed in the UK Additional Supports
Enterprise Ireland assists clients entering new Introductions to specialists in all areas, including
markets with legal, recruitment, PR and taxation
Pre-Visit Support Access to Mentors
– Sector overview Enterprise Ireland has built up an excellent
– Validation of the opportunity for your product network of individuals in the UK who are available
or service to work with Irish client companies looking to
develop their business. This includes market
– Evaluation of your market entry strategy
and sector specialists, business accelerators and
– Suggested channels to market
members of Irish business associations.
– Competitor analysis
– Relevant contacts/suggested itinerary Want a hot tip? Book a hot desk
Enterprise Ireland’s offices at Shaftesbury House,
In-Market Support
in the heart of London, offer hot desk facilities to
– Introductions to buyers and decision makers client companies. To book, log on to uk.bookingbug.
– Identification of potential partners com/home/33936-Enterprise-Ireland. It also has
– Facilitating buyer visits to Ireland a range of meeting rooms, subject to availability,
– Assistance with product launches and capable of holding between four and 18 people.
workshops Contact Enterprise Ireland to find out more.
– Securing reference sites
Keen to accelerate your market entry?
International Trade Events For a comprehensive list of business accelerators,
incubators and co-working spaces in London
– Inward buyers’ missions to Ireland
check out capitalenterprise.org.
– Group stands at international trade fairs
– Overseas trade missions
– Market study visits
– Client knowledge seminars
– Networking events with market contacts
11Contact details
Marina Donohoe David Corcoran
UK and Northern European Director Senior Market Adviser
Marina.donohoe@enterprise-ireland.com BPO/Services
+44 207 438 8701 David.corcoran@enterprise-ireland.com
+44 207 438 8725
Deirdre McPartlin
UK Manager Darragh Cotter
Deirdre.mcpartlin@enterprise-ireland.com Market Adviser
+44 748 408 6686 Cleantech
Darragh.cotter@enterprise-ireland.com
Sean Long +44 207 438 8713
Senior Market Adviser
Engineering incl Aviation & Aerospace Padraic Geraghty
Sean.Long@enterprise-ireland.com Market Adviser
+44 207 438 8726 Digital Technologies
Padraic.geraghty@enterprise-ireland.com
Sheila O’Loughlin +44 207 438 8724
Senior Market Adviser
Lifesciences Anne Corr
sheila.oloughlin@enterprise-ireland.com Market Adviser
+44 207 438 8721 Construction
Anne.corr@enterprise-ireland.com
John Hunt +44 207 438 8706
Senior Market Adviser
Construction - Built Environment
John.hunt@enterprise-ireland.com
+44 207 438 8719
Enterprise Ireland, The Plaza,
East Point Business Park, Dublin 3
Tel (01) 727 2000 Fax (01) 727 2020
www.enterprise-ireland.com
Ireland’s European Structural and Investment Funds Programmes 2014-2020.
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