West Midlands Universities:Innovation and InvestmentStrategies in 2020

Higher EducationInnovation and InvestmentOutlook for 2020

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Universities are crucial catalysts for economic growth in the West Midlands. Contributing £2.9 billion GVA (Gross Value Added) to the regional economy and supporting 55,000 jobs across multiple industries and skill levels, their success is integral to the cities and towns in which they are based.

But the outlook for higher education in the UK is far from certain. Proposed reforms to tuition fees, a potential restriction on

EU students and grant funding, combined with increased operating costs and pension commitments, all have the potential to create a perfect storm for the sector.

These factors have been cited by some as reasons for a slowdown in higher education estates spending over the past 12 months. Others dismiss this, opining that it is simply the end of the cycle: with 2012’s increased fees ushering in a wave of development which has since completed.

How are higher education investment and innovation strategies shaping the West Midlands?

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Whichever analysis is true, there’s no escaping that universities are looking to invest shrewdly in their

facilities. Some are seeking to repurpose existing stock rather than commission new builds; while others are examining collaborative tie-ups with knowledge-driven commercial partners and local authorities to build joint science and technology facilities, and even wider innovation campuses. Many are collaborating with these partners on syllabuses too.

Far from being solely driven by cost, these decisions are being taken against a backdrop of a wider collective drive for all universities to be purposeful stakeholders in the communities in which they’re based. In addition to supporting industries earmarked as crucial to the West Midlands’ continued economic growth, HE institutions are procuring facilities with inclusive growth and the drive for zero carbon at the forefront of their thoughts.

We gathered a roundtable of expert consultants, estates directors and public sector leaders from the West Midlands to discuss how a focus on innovation and collaborative investment is set to shape the region’s campuses in 2020 and beyond.

Attendees:1. Richard Cowell Birmingham City Council

2. Asha Devi Arup

3. Mark Lee Calthorpe Estates

4. Donna Heath Mace

5. Warren Jukes Associated Architects

6. John Plumridge Birmingham City University

7. Belinda Morgan Cundall

8. Steven Lamb University of Wolverhampton

9. Andrew Savege Morgan Sindall Investments

10. Richard Fielding Morgan Sindall Construction

11. Karina Connolly Morgan Sindall Construction

12. Jonathan Caswell Influential PR

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The roundtable opened with discussion of the work universities, local

authorities, and clinical and industry partners were doing to both link together complementary knowledge-driven assets, and work together on syllabuses.Asked whether Birmingham would be the next UK city to establish an innovation district, one expert said: “We already have an agglomeration of life science assets and we’re developing real strengths in creative and digital media too. Perhaps the problem is that although we have some great sci-tech credentials in Birmingham, we don’t shout about them in the way that perhaps Manchester does.”

They continued: “In the city centre, we have Digbeth which is home to a host of incubators for early-stage tech businesses. The wider placemaking offer is being carefully considered too: there are housing, public infrastructure and leisure facilities in development.”

“Take that through to Birmingham City University and Aston University, and the science park with Bruntwood investing too, you really have got a thriving ecosystem. There’s already an innovation district there; it’s just perhaps not been badged up like that.”

Another suggested the term district was underplaying the offer in the West Midlands: “It’s more of an innovation region rather than a district. There are pockets all over the place with world-leading strengths in different universities, spanning robotics and automotive, to nuclear. What we need to do, is improve the connectivity.”

Another attendee noted: “You have to remember that when you’re talking to potential inward investors from Asia or the Middle East – or students from those places – that the distance between individual assets is inconsequential to many of them. The West Midlands as a collective is geographically smaller than many other territories they’ll be considering for their investment.”

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There was widespread agreement that many future facilities would be jointly

funded between commercial partners and institutions:“Industry is starting to become involved in teaching and sponsoring courses, but we’ll increasingly see that extend to buildings.”

“Given that a lot of courses will end up being taught online, the business case for a lot of these high-specification facilities may shift. Regardless of sector, if we can get companies involved in the courses and sharing the buildings it becomes more of a two-way relationship, then we’ll have a more sustainable community that blends academia and commercial opportunity,” said one expert.

Another highlighted the appeal for students: “That close link with industry can be a crucial differentiator for universities too. Students are far more likely to opt to study at institutions which work hand in glove with potential future employers.”

This partnership was judged to be just as important for industry too.

One consultant said: “Funding for early-stage life science is difficult. Not only have you got to raise money for your research itself, you generally need to fund the facilities you work in.

“Creating an ecosystem to support scaling science businesses requires a collaborative approach. Unless you have pre-existing facilities which previous occupiers have moved out of, you’re left trying to build new laboratory space for earlier stage businesses which can only afford around £20 per square foot.”

“So you need some public-private partnership to make the commercial case viable. We’re seeing some innovative joint funding models put forward with the universities to make it work.”

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Coventry’s Manufacturing Technology Centre (MTC) was cited as

a shining example of collaboration between academia and industry:“The MTC has got the blueprint for this right. They’re looking to devote one of their halls to construction, along with aerospace and automotive manufacturing.

“But there’s now an opportunity for someone to further commercialise the intellectual property coming out of the institution – it’s a golden opportunity for a main contractor investing in it. No-one has been able to make a complete success of offsite manufacturing yet, and I don’t think the answer is quite there yet. But if industry and academia work closely together, progress will be much faster,” said another attendee.

The consensus was that campus masterplanning was already adopting a wider and holistic approach, seeking to build long-term communities around innovation assets. One person at the table said: “A long term view of placemaking is crucial. You can’t just approach it with short term courses or even individual research projects in mind when designing facilities. These scientists have a lifelong commitment to research.

“To retain that talent, we need to create compelling environments where they not only work but are also comfortable to live and grow with their families. In Cambridge, for example, they’ve created central guided metro systems to transport people from the centre to the research areas. Isolated campuses on the outskirts of urban areas will become a thing of the past. They need to be connected to urban centres.”

Expanding on this, a consultant described the increasing focus not only on physical connectivity, but on digital too: “We’re now being asked by universities to advise on infrastructure investments that will allow them to digitally connect. They’re looking at adopting the technology which the banking world uses, to connect multiple campuses in multiple countries, and to facilitate virtual teaching.”

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The conversation then shifted to the growing trend of repurposing existing facilities, along with the

challenges that posed: “Most of the buildings that need renovating were built in the 1950s. Many decisions on these buildings limit how we renovate them. For example, floor to floor heights aren’t suitable for modern labs or putting services through. A lot have concrete frames making them pretty inflexible as well as being energy-hungry – there can be a big initial cost just to get the building up to its energy standard, let alone remodel it.”

“But it’s also a huge opportunity. If we can repurpose existing stock rather than opting for new builds, we can make huge savings in embodied carbon which is a big driver for universities,” said one attendee.

Another noted: “Universities are grappling with how they hit zero-carbon targets. Repurposing existing buildings to meet them often requires a significant investment that perhaps doesn’t look as cost-effective compared to a new build once you dig into it. Your cost ratios may well go up.”

“But students and other stakeholders are going to increasingly demand action – and progress on the agenda will become expected in publicly-available reporting.”

Early engagement on the design process was identified as key to avoiding costly mistakes.

One expert said: “In our most recent project for the University of Birmingham, which was part new build, part refurb, we brought the supply chain in from day one. When you’re combining modular elements for the new build and a specific skillset to refurb a listed structure, you need to have everyone around the table as soon as possible.”

“Modelling it through BIM allowed the customer team to have sight of the challenges, and approach that would be required from the get-go.”

In agreeing, another said: “It definitely can be done. We’ve shown how flexible existing academic space can be; renovating a gymnasium and transforming into a student lecture space by putting a mezzanine in. The remodelling has saved 25,000 tonnes of CO2 per year on its previous use.”

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The discussion concluded with a consensus that universities were placing an increased emphasis on how they procured construction projects, with some looking to run their own frameworks:

“Many are now looking to launch their own frameworks. They have longstanding relationships with contractors and consultants - that’s inevitably going to provide them with assurances on quality and cost.”

“Single-stage tenders are being used less and less as institutions welcome early consultancy on design and wider masterplanning, and look to share the risk.” said an attendee.”

Another added: “Procuring the buildings is one thing, but maintaining and running them well is another oft-forgotten factor. Consultants and contractors can add value to less-developed or well-resourced estates teams by up providing the training which will enable them to operate assets efficiently.”

The collective opinion was that universities’ focus on supporting local supply chains showed no signs of slowing down:“These institutions are key stakeholders in their communities and estates teams are well aware of that. The building is a given, but it’s only bricks and mortar. Universities are maximising social value through existing frameworks and the development of their own. Local spend is measured on frameworks and so it gets done – other procurement routes maybe don’t respond to that.”

“KPIs change with time, and new frameworks, but there’ll always be a focus on supporting local businesses.”

n addition to new builds, there was a widespread agreement at the table that universities were commissioning collaborative workspaces which could serve multiple disciplines: “The trend for shared and collaborative areas which has impacted

commercial development is now coming into the academic space.

“There’s a realisation that open spaces on campuses can foster innovation. It provides a place for people to have chance encounters from separate but potentially complementary disciplines and industries,” said one consultant.

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Key Pointsfrom this discussion

Tell a powerful innovation storyBirmingham already has innovation credentials to rival any other UK city. But collectively, we need to be bolder and tell a powerful, consistent and authentic story to attract occupier interest and investor interest to bolster R&D intensive industries, and the courses which support them

Adopt a long term view to places where people live, learn and workCampuses needs to continue to adopt a long-term collaborative approach to placemaking that extends beyond 2020. We need integrated urban areas with an offer that caters to students, graduates and established workers looking to settle down, rather than individual siloed schemes

Tackle zero carbonUpfront fees may be higher, but operational costs and savings on embodied carbon can make a compelling case to repurpose and renovate existing assets. Universities need to ensure they are building with future generations in mind; many students will demand that the buildings in which they live and learn are sustainable

Engage earlyNo matter the project, early involvement of contractor, consultants, supply chain, users – even schoolchildren – can help guide and inform great design in a collaborative environment

Embrace innovation in funding and tech Public-private partnership and innovative funding models are essential to create an ecosystem which can support academic life, early-stage knowledge-led businesses, and their more established corporate counterparts. It’s equally essential to adopt the digital infrastructure which will meet future development needs and allow cutting-edge connectivity across multiple campuses around the world

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