1. Greater Manchester Manufacturing Strategy Update on Progress Alison Gordon – New Economy LEP 14 th May 2014

2. LEP led Task and Finish Group Remit • Identify sub-sectors where Greater Manchester is, or can become, genuinely world-leading; • Respond to identified challenges and opportunities to best support growth and business needs; and • Determine short, medium and longer-term priorities for action. Update on progress • Progress with evidence base and strategic consultation • Briefing on emerging findings

3. The Manufacturing sector is changing… Assembly is now less than half of manufacturing and related employment. Digital convergence and new technology is driving increase in direct and related service jobs Manufacturing related service jobs now adds around 50% to core sector employment Fewer direct jobs....... but rising economic output

4. Manufacturing Employment • Sector employs 98,000 people in Greater Manchester • Accounts for 91% of business R&D spend; • More GVA per employee than any other industry.

5. GM Sub Sector Strengths

6. GM Key Supply Chains Textiles Food & Drink Chemicals Materials Advanced Materials Digital Supply Chains (incl. Med tech – part of Aerospace..)

7. Strategic consultation Are our identified strengths correct? Is our manufacturing base exploiting new technologies? Reshoring opportunities other than textiles? Level of productive collaboration to exploit new opportunities? Does the manufacturing premises offer meet our needs? What are the key skills issues? Is manufacturing sector investing to the opportunities available? How important is energy price? Are our manufacturers improving energy efficiency? NW Business Leadership Team Aerospace Alliance Cogent NW Manufacturing Forum Manufacturing Advisory Service Chemicals NW MIDAS Manufacturing Institute Business Innovation and Skills CBI GM Chamber NW Business Leadership Team Aerospace Alliance Cogent NW Manufacturing Forum Manufacturing Advisory Service Chemicals NW MIDAS Manufacturing Institute Business Innovation and Skills CBI GM Chamber

8. Finding One Leadership & Management is a significant sector issue • Absence of vision • Reactive culture • Low adoption of new technologies • Low cross peer collaboration • Reluctance to invest • Leaders are low profile • Poor succession planning • Absence of vision • Reactive culture • Low adoption of new technologies • Low cross peer collaboration • Reluctance to invest • Leaders are low profile • Poor succession planning

9. Finding Two Skills shortages & future workforce concerns • Shortage of engineers • Poor image impacting on future career choices • Best engineers are going into finance • Low numbers of women in the sector • Ageing workforce • Concern about work readiness of apprentices • Shortage of engineers • Poor image impacting on future career choices • Best engineers are going into finance • Low numbers of women in the sector • Ageing workforce • Concern about work readiness of apprentices

10. Finding Three Investment ready but low appetite • Up to 70% of the sector may be debt free (NW Manufacturing Forum) • Confidence is increasing but sector is very risk averse • Investment reluctance more pronounced in family owned or MBOs • LEAN culture has led to financial prudence • Up to 70% of the sector may be debt free (NW Manufacturing Forum) • Confidence is increasing but sector is very risk averse • Investment reluctance more pronounced in family owned or MBOs • LEAN culture has led to financial prudence

11. Finding Four Premises - Quality and availability concerns • Debt fears inhibiting investment in new premises • Issues raised about the quality of GM premises offer • Trend towards less industrial type premises – but there is limited availability • Multiple ownership barriers • Development industry response to demand is piecemeal • Debt fears inhibiting investment in new premises • Issues raised about the quality of GM premises offer • Trend towards less industrial type premises – but there is limited availability • Multiple ownership barriers • Development industry response to demand is piecemeal

12. Finding Five Energy cost concern but resource efficiency opportunities • • There are UK Energy cost concerns • But energy efficiency opportunities are not being exploited • High speed digital become prerequisite • • There are UK Energy cost concerns • But energy efficiency opportunities are not being exploited • High speed digital become prerequisite

13. Finding Six Public Sector Investment Fewer direct jobs..... but rising economic productivity • Greater Manchester needs its companies to invest in new technologies and modern premises to grow this sector – but these will not necessarily create jobs

14. Leadership and Management Network Management and LeadershipTechnological Enablement Future Workforce Resource Efficiency Vision & ambition to grow Investment in R&D Manufacturing Leadership Network ChemicalsMaterialsFood & DrinkTextiles Advanced Materials Primary Enablers Digital Focus Areas Skills Development Expanding into service and design markets Improved Premises Sector Investment & Impact

15. Next Steps 1.Stakeholder Consultation with sector representatives completed 2.Consultation with industry on draft recommendations – May/June 3.Identify draft conclusions and recommendations – June 4.Draft Strategy to LEP July 2014 Next Steps