MIDAS Partnership Q3 Report FY19/20

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Following the general election, initial market analysis is that business confidence has improved to become cautiously optimistic. The expectation is the new Governments large majority will provide the UK economy with several months of breathing space, given a no deal Brexit on January 31st was averted. Now that corporation tax and wage levels are likely to remain more stable, analysts expect investment levels to improve. GDP growth for Q1 and Q2 2020 (calendar year) is expected to be 0.4% - surpassing the 0.2% average of last year.

Manchester has also retained its title as the

best large city for business friendliness and

rose from 4th to 2nd in the connectivity

rankings. The city also secured 3rd position for

FDI strategy in Europe, although Manchester

has slid from 6th to 9th in the ranking for

economic potential – a list that we expect

other European cities to have fared more

highly within.

Looking over to Europe, later this month the

Financial Times will publish its fDi European

Cities and Regions of the Future report for

2020/21. Although we will not know the

positions of other cities until the report is

released, we know that Manchester has

secured a place in the top five best large

cities – rising one place from 6th position in

the 2018/19 report.

Economic and Investment Outlook

Quarter 1 FY20

12 727 £45.9M 109

successes jobs created GVA projects added

Quarter 2 FY20

13 592 £49.0m 115

successes jobs created GVA projects added

Quarter 3 FY20

18 549 £37.4m 123

successes jobs created GVA projects added

FY20 43 1,868 £132.3m 347

YTD successes jobs created GVA projects added

Delivery Against Objectives

1. To increase high value and capital investment in Greater Manchester

HEADLINE BUSINESS DEVELOPMENT PERFORMANCE

Q3 PERFORMANCE OVERVIEW

From a project perspective, Q3 was the strongest

quarter year-to-date with 18 successful closures.

There were seven ‘new to GM’ foreign investment

projects, of which six were from non-EU source

markets, with one success each from Brazil, Korea,

Canada, Australia, India and USA.

Despite the strong project count, the number of

jobs created year-to-date is slightly behind profile.

There were several large projects expected to

close in Q3 but decision making stalled, likely in

relation to a general election being called in

December and the uncertain political/market

future.

There are a further 25 projects forecast to close

successfully in Q4, which would take the end of

year successes figure to 75, with the year-end jobs

forecast currently at 3,550.

KEY ACCOUNT MANAGEMENT

MIDAS have met with 241 account managed

companies year-to-date, with 48 enquiries sourced

worth a potential 2,900 jobs. These enquiries have a

higher percentage success rate than new investment

enquiries.

Since April 2018, MIDAS have sourced 39 projects,

worth a potential 3,400 jobs from existing companies

that have a requirement for new premises in GM.

Examples of current live requirements include

Accenture, Arm, HCL Technologies and Dentsu

Aegis, whilst Handelsbanken and BAE Systems are

projects that have been sourced and successfully

closed in the same time period. A lot of companies

that we talk to are taking less space as they are

adopting agile working practices, meaning the size

requirements are reducing.

SELECTED Q3 SUCCESSES

60 jobs

Spinningfields

20 jobs

MSP

50 jobs The Landing

20 jobs

MediaCityUK 30 jobs

MediaCityUK

70 jobs

No. 1 Spinningfields

Quarter 1 FY20

3M media reach

9

events

17,433

web visitors

4,784

LinkedIn

Quarter 2 FY20

802K media reach

5 events

16,155 web visitors

4,915 LinkedIn

Quarter 3 FY20

7.1M media reach

12 events

18,215 web visitors

5,178 LinkedIn

FY20 YTD

11M media reach

26 events

51K web visitors

12% growth

2. To extend the global business marketing of Greater Manchester to drive more

investor interest to the city region

companies during the visit, generating eight

leads/projects and two in-visits that will be

delivered before April.

GRAPHENE ROADSHOW, INDIA: The

advanced manufacturing team visited Pune, New

Delhi and Hyderabad in November for a number

of DIT-led conferences and one-to-one meetings

including manufacturing/engineering firms

Bharat Forge and Cyient. The team also visited

the Automotive Research Association of India,

the Indian Institute of Science Education and

Research and IIT Delhi. Approximately 9 long-

term active projects were sourced from 58

meetings.

UPCOMING EVENTS: The following events

are in the pipeline or are being considered for

2020/21 – please let us know if you are

interested in collaborating to have a more

impactful GM presence:

• Digital City Festival, Manchester, March

• JECWorld, Paris, March (Materials)

• HIMSS, Florida, March (Life Sciences)

• Health Innovation Week, Toronto, April

• London Tech Week, Global, June

• SIBOS, Boston, October (financial services)

• Mayoral Visit, New York, November

HEADLINE MARKETING PERFORMANCE

CASE STUDY

Function: FinTech

Jobs created: 50

Location: The Landing

Source market: Brazil

Throughout Q3, in addition to the Manchester

India Partnership delivering the Mayor’s

inaugural visit to India promoting the city as a

digital and innovation hub, the core MIDAS

team visited Washington DC, New York and

India to promote opportunities across all key

sectors.

MAYORAL TOUR, INDIA: The MIP led a 30-

strong delegation to India in October, visiting

Mumbai, Bangalore and Delhi. The aim of the trip

was to promote and leverage the £400m economic

opportunity between India and the Northern

Powerhouse. The MIP hosted a series of thematic

roundtables and events including a major

networking reception in each city. The delegation

engaged with more than 1,000 businesses

throughout the trip. As well as making a number of

announcements in-market, the team returned with a

600-job pipeline worth +£40m GVA.

EAST COAST ROADSHOW, USA: In November,

MIDAS’ CDT and FPBS teams visited Washington DC

alongside Salford’s Jon Corner to promote 5G in

Manchester as well as cross-sector opportunities

including FinTech and eCommerce. They met with 30

Preme Pay is a Brazilian headquartered FinTech that allows

companies to provide local payment methods to customers

in emerging countries.

The company visited Manchester as part of a Latin American

DIT delegation in spring 2019, attending MIDAS’ Manchester

FinTech event. Following the visit, Preme Pay decided to

locate their first UK office at The Landing at MediaCityUK and

expect to create 50 jobs over the next 3 years.

Following a review of Manchester’s key

comparator cities, MIDAS and Marketing

Manchester commissioned The Business of

Cities to analyse how Greater Manchester is

performing internationally, the final report

for which was finalised in Q3.

The aim of the study, which was structured to align

with the themes and priorities set out in the GM

Strategy; Internationalisation Strategy and Local

Industrial Strategy, was to observe Greater

Manchester’s progress in the full global context, its

range of advantages, areas for catch up, its closely

performing peer cities and the opportunities to

change its global perceptions. This was done by

assessing where Greater Manchester features

across the latest benchmarks, indices and datasets.

There are 550 comparative studies and indices that

measure how cities are doing, both according to

objective performance indicators and how they are

perceived among global audiences. The findings

tell us that by global standards, Greater Manchester

is a medium sized city-region. It is currently the

170th largest city region globally by population size,

and the 151st largest metropolitan economy by

GDP.

3. To strengthen research, data and market analysis capabilities to drive a forensic

sales approach and increase conversion

The study highlighted that Greater Manchester

must continue to grow and invest otherwise it risks

falling in position over the next decade due to the

rapid growth of cities and metro areas in Asia and

other fast-growing regions. Unlike the ‘established’

world cities such as London, New York and Tokyo

that host dense corporate and decision-making

functions, these cities are smaller, more specialised

and have distinctive points of difference and

opportunity e.g. strong metropolitan leadership,

compact growth, efficient infrastructure platforms,

institutional strength, and innovation capabilities.

Other cities in this group include Melbourne,

Barcelona, Hamburg, San Diego, Montreal and Tel

Aviv.

In European terms, Greater Manchester continues

to be an important centre - it is the 5th largest non-

capital city region by population and over the next

15 years, Greater Manchester’s population is

expected to grow at a rate faster than Boston,

Singapore and Barcelona. Many more types of city

are emerging, with different competitive edges and

identities.

Greater Manchester’ visibility in global benchmarks

2014-15 2018-19

% of global ranks featured in 15% 32%

Global visibility rank 93rd 64th

Greater Manchester’s visibility across the

benchmarks has increased at a faster rate than

most other city regions. It is one of the top 15 cities

globally for the increase in the percentage of

benchmarks it has appeared in throughout the

past five years – alongside Rotterdam, Tel Aviv and

Seattle. Greater Manchester has overtaken

Houston, Johannesburg, Brisbane and Calgary

over the last five years in terms of visibility and

along with Edinburgh, is now joint most visible city

in the UK after London. The work that has been

done through MIDAS and partners has helped

elevate Greater Manchester’s position and we

have now entered the matrix to be classed as an

‘influencer’ city. New World Cities are a distinct

group of high performing, rapidly (re)globalising

cities that seek a different success model to the

larger and more established global cities, most

often deliberately seeking competitive advantage

on the global stage in the last and current

economic cycle. New World Cities demonstrate

characteristics such as specialisation and

innovation, a robust labour market, strong visitor

economy and scalability.

Why has Greater Manchester’s overall

visibility in the benchmarks improved?

1. There are now more benchmarks on topics that

Greater Manchester performs well in, so it is more

likely to be included. This is particularly the case

where benchmarks only look at a smaller “top”

group of cities (i.e. the best in the world/in Europe)

for particular niches – for example, digital

innovation, food scene, millennial appeal, app

economy. Other cities miss out in the new

generation of studies because they are not widely

associated with these sorts of attributes.

2. Many benchmarks are more focused on

medium-sized cities that are increasingly

appealing and attractive to talent and investors as

the most established cities become saturated and

begin to experience growth externalities.

3. Greater Manchester has pursued a proactive

strategy of positioning and international

engagement over the past 20 years that has borne

fruit in terms of recognition with influential

audiences such as media, investors and

international institutions.

4. Indices are expanding to measure more cities.

Manchester is an obvious choice as a key European

city, UK’s 2nd city, a leading investment attraction

destination, and a city widely recognised for its

metropolitan leadership and ambition.

Name Job Title Mobile Email

Tim Newns Chief Executive 07481 080 065 tim.newns@midas.org.uk

Sarah Mills Exec. Assistant and Project Manager 07481 080 065 sarah.mills@midas.org.uk

Andrew Toolan Head of BD – Strategic Partnerships 07738 027 186 andrew.toolan@midas.org.uk

Deborah Walker Head of BD – FPBS 07789 917 880 deborah.walker@midas.org.uk

Hannah Tracey Head of BD – CDT 07725 372 233 hannah.tracey@midas.org.uk

Catherine Davidson Head of BD – Life Sciences 07384 547 983 catherine.davidson@midas.org.uk

David Hilton Head of BD – Adv. Manufacturing 07703 470 280 david.hilton@midas.org.uk

Alexandra Moorhouse Marketing Manager 07795 006 430 alexandra.moorhouse@midas.org.uk

Daniel Baxter Analytics Manager 07592 108 252 daniel.baxter@midas.org.uk

4. To grow the international impact of Greater Manchester’s inward investment

team to increase the region’s investor pipeline

Key Operational MIDAS Contacts

103109 115 123

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3107

3386

4741

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1000

2000

3000

4000

5000

90

95

100

105

110

115

120

125

2018/19 Q4 2019/20 Q1 2019/20 Q2 2019/20 Q3

Projects Jobs

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3505 60612427

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1662 35942401

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M O VIN G U P T H E VA L U E C H A INJO B S A D D E D T O PIPE L IN E B Y S E C T O R

Business Services Technology

PIPELINE PERFORMANCE

MIDAS sourced 123 new enquiries into the pipeline

in Q3, up from 115 in Q2. The number of jobs

associated with these projects is up notably to over

4,700 jobs. In Q3, 24 projects were sourced that

are mobile and see us competing with domestic

cities such as Liverpool, Birmingham, London,

Sheffield and Glasgow, as well as international

locations Prague, Dublin and Warsaw.

KEY DRIVERS OF NEW ENQUIRIES

The three primary drivers of successful investment

projects year-to-date are access to highly skilled

talent (45%), business environment (39%) and

access to a large talent pool (27%). Access to

highly skilled talent is up from 30% in FY19 and is

increasingly the key driver of investment projects

in the current climate.

The GVA output of GM’s investment has risen

significantly, rising from an annual figure of £183m

to £311 in the last five years. The primary driver of

that has been the shift away from low value

sectors such as business services towards high

value sectors like digital/technology. This trend is

increasing further as evidenced in the below chart

and will continue to drive major investments in the

city region in the foreseeable future.

Project/Client Current Space Long Term Requirement

Slalom Spaces (Peter House) 20,000 sq. ft.

BAE Systems Lowry House 20,000 sq. ft.

BankNorth Lowry House 10,000 sq. ft.

Fractory Barclays Eagle Lab 5,000 sq. ft.

SimpliSafe Landmark, Spinningfields Larger serviced office

2,000 sq. ft. (Industrial)

Revverbank Lowry House 4,000 sq. ft.

Fitch Ratings Lowry House 10,000 sq. ft.

Recent Transitions Former space Space taken

MoneySupermarket Spring Gardens 20,000 sq ft (No. 1 Spinningfields)

Appendix 1 – Forthcoming Property Requirements (occupiers in temporary space)