[To provide a case study for an inward investor]
Minutes:
The Chair, Cllr Jacqueline Sweetman welcomed Dan Corrigan, from Wiggle, a high growth company that has recently located in the city.
Dan Corrigan provided the Panel with a brief history of the Wiggle Company; he highlighted the following milestones in the Company’s development:
· Started in 1992 from the back room of a shop.
· Developed ecommerce and launched globally in 2008. The exchange rate worked in their favour to enable the company to grow. e.g. it was cheaper for trainers to be shipped from UK, than to be produced and bought in Australia or United States of America (USA).
· Wiggle now deliver to 75 countries in four core markets
· Based in Portsmouth, the company had started to become inefficient, requiring larger premises to expand. They started searching for a new location.
· They began logistics mapping in February, taking into account physically coping with projected growth in 3, 5 and 7 years without disturbing their growth curb.
· The main growth area of the company is international - specifically USA and Europe. This meant location to international ports (both air and shipping) in the UK is critical.
· Business will stay in the UK as logistics make it the centre of the universe
· More investment would be needed to move to the USA
The Chair asked why Wolverhampton and not Manchester. Nick Pink responded that many of the goods shipped (96%) are tracked; by tracking the cost of ‘goods lost in the post’ has been reduced. The Midlands is central to many main hubs for tracking goods, motorway network and airport; East Midlands airport, main hub to ensure midnight flight to ensure next day delivery; DHL hub in Birmingham.
In response to questions about the size of storage and the length of lease Dan Corrigan advised that the 500,000 square metre site allows for projected growth, any larger than that and it would be more cost effective to buy land and build. He confirmed the lease was for 15 years initially he advised 170-180 employees would be appointed and as the company grows into the space it is anticipated that 500 employees will be employed in three years.
Dan Corrigan advised that the support from Wolverhampton Council had been excellent during the preparation to relocate. He advised that initially three members of the management team had moved to Wolverhampton in a shared house, middle management members were relocated some with families that required school places and housing to be identified and Council support with processes to settle employees as soon as possible.
The Chair asked Dan Corrigan to identify any areas that Wolverhampton could improve. He advised that from a people point of view he had to go through many people to find the skill set he needed and could have tried to find them earlier in the process. There could also be better information about local suppliers e.g. when trying to put up perimeter fences on site it had taken time to find a local company who could provide the service, more support to find the set up services may have been helpful. The Head of Enterprise and Skills advised that there is a challenge for the City to give intensive support to companies and their employees when relocating a major business.
Cllr Phil Bateman welcomed that Wiggle had found the site and supply chain it needed and asked about the cultural offer. Dan Corrigan advised that the company has great interest in bicycles and fitness and would like to see fitness events in the City. He was advised that the City has a cycling forum and active to work initiative which Wiggle may want to get involved with. He acknowledged that there were synergies and that Wiggle would want to get involved as the company has a professional cycle team and have supported road races in Portsmouth. Panel members referred to the Mayoral role and indicated that the City supports the Carver Marathon and would consider support for a cycle road race.
Cllr Phil Bateman highlighted the good rapport and working relationship between Wiggle and Council employees and suggested that further goodwill to other staff at Wiggle could be demonstrated by a visit from the Mayor. Cllr Phil Bateman asked if Wiggle have been invited to be business champions for the City. The Service Director advised that it was early days. The Service Director also advised that providing intensive assistance to an inward investor creates a capacity issue, as one member of the business team is essentially taken out of day to day work load and that in a team of three this can be very challenging. The Panel highlighted the need to expand the team.
Cllr Martin Waite asked about protocols for establishing leads and contacts for business and whether there is risk to taking on a big factory space when technology is progressing so quickly and the need for moving goods from one place to another may be obsolete due to the ability to create items by 3D printing. The Service Director indicated that there is a lot more development work the Council can do to gather qualitative information about the service sectors and business base in the City.
The Head of Enterprise and Skills indicated that in terms of getting the message out there, Wolverhampton is a place to make things happen. The City has high level manufacturing base, but also high level unemployment and the need to attract floor level into jobs in a mixed bag of businesses. The Service Director advised that there is a good relationship with the University to get more investment into innovation.
Cllr Phil Bateman asked how the Council is supporting the indigenous businesses and was advised that the Council has been strong in business start-ups in its third year, but survival rates were still lower than average at five years after the birth of a company. The reasons for this are complex. She clarified the need to be able to help and support growing businesses as a priority for the city.
The Chair thanked the City Economy Service, particularly the Enterprise team, for the work they were carrying out to raise the profile of the city and to get business into Wolverhampton.
The Chair thanked the Inward investment team for the work they were carrying out to raise the profile of Wolverhampton and to get business into Wolverhampton
Resolved:
1. That the observations given by Dan Corrigan of Wiggle be taken into account by the inward investment team to strengthen the inward investment offer.
2. That the appropriate employee enters into further discussion with Wiggle to develop the cycle marathon idea.
3. That further consideration be given by the inward investment team to a mayoral visit to Wiggle.