Agenda item

Attracting investment

The purpose of this report is to provide an update on investment activities that have taken place or are planned for the next 18 months.

Minutes:

Richard Nicklin, City Investment Manager and Keren Jones, Service Director City Economy provided a report to update on investment activities that have taken place or are planned for the next 18 months.  He highlighted key points from the report including the marketing strategy and collateral being developed with local businesses through the City Economic Growth Board; including the Welcome to Wolverhampton infographic video, the city marketing strategy, the 360 degree tour of the city and the UKTI Midlands Engine Investment Opportunities Pitchbook (launched during Cannes (March 2016). 

 

In response to questions from councillors the Service Director advised that the focus of the Marketing Strategy and collateral was on the City Centre, not outer lying areas. She advised that further information about the number of leads originating from the MIPIM Cannes could be presented to another meeting.

 

Panel were advised that Wolverhampton was a key investment location and captures £3.7 billion of investment that is either on site or in the pipeline. The investment manager gave several examples of collateral that the Council had commissioned to promote the city and generate inward and indigenous investment.

The Panel discussed an investor’s event at the House of Commons on 12 July 2016 and another opportunity for the Black Country to showcase its wares at an open door event in the Houses of Parliament on the same day. They considered that the two events needed to sigway and dovetail into each other, and that a mechanism for measuring the investments attracted be developed.

 

Officers gave assurance that preparation for the event had been designed to give the right messages to encourage investors to Wolverhampton and to reduce the impact of recent bad publicity from the Grant Thornton that highlights Wolverhampton as the least prosperous City in the Midlands. The City Investment Manager advised that his role was to develop the flip side and to encourage best development start up business.  The Service Director advised that the inward investment was important but was part of the bigger team, each working together to look at the end users and using the same strategies, including the lifestyle offer for the City. The ~Service Director advised that Wolverhampton currently has the top ten places for music venues offer.  She clarified that this would be counteracted with other surveys and that some work for us some against.

 

Paul Lakin, Head of City Development advised that from a developer perspective, rankings can contribute to putting people off.  He added that Wolverhampton has one of the biggest railway systems and town centres in the area, in close proximity to motorways and Birmingham.  He advised that this is the sort of thing to get investors interested.  The right offer gets, the City offer helps to get the message out that Wolverhampton is a can do Council.

The Panel was advised that I10 development had completely outperformed Derby and neighbouring developments to attract inward investment and was in a good position to offer a central location and large labour markets.

 

In response to questions about investment, our key competitors, advertising target market and best practice the Service Director advised that the first figures from Business week are measured using MIPIN and form a baseline, she advised that the system is being constantly improved.  She advised that research is carried out in advance when designing something to explore best practice.

 

Competition is complex and a whole host of factors needs to be taken into account in order to re-position Wolverhampton with West Midlands Combined Authority (WMCA) but also to maintain your own reach in National and world markets.  She added that some competitors are also people we are collaborating with.

 

Paul Lakin, Head of City Development highlighted some points about the position for Wolverhampton as follows:

·         Wolverhampton cost lower than neighbouring authorities

·         Proximity to the railway station and interchange  

·         Advantage to be in the centre of the motorway networks

·         Lacks the area for large sites too compact

·         Underutilised by quality sites

·         Need to capture the right businesses in the shopping centre

·         An events programme is really important

·         Vibrant cultural offer is key to bringing people in

The Service Director outlined some of the barriers as follows:

·         Skills are a mixed picture

·         Viability gap in terms of assembling land

·         Can draw down funding for the growth fund

·         The housing offer

She advised that there were ways to address the barriers.

 

The Head of City Development highlighted the importance of the inward investment team and development teams to understand their investor and the teams support each other. The Service Director advised that work done with recent large investors such as Wiggle was not based on marketing, they had done their homework and it was very much about the relationship.

The panel considered the recent success of I10 and suggested that Wolverhampton could pick up more of the Birmingham market by building another similar facility.

 

The Panel was advised that a funding workshop with developers was planned at the end of July 2016 to consider the next project.

 

Resolved

 

1.    That the panel endorse the approach to attracting inward investment and support indigenous investment to Wolverhampton.

 

 

 

 

 

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