business desk - sheffield city region

Sheffield City Region 2012Strong foundations for growth

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Contents

TheBusinessDesk.comRound Foundry Media Centre, Foundry Street,Leeds LS11 5QP

editor: Ian Briggse: [email protected]

publication editor: Joanne Birtwistlee: [email protected]

business development manager: Aimee Willowe: [email protected]

t: 0113 394 4541f: 0113 394 4322

Foreword:Ian Briggseditor, TheBusinessDesk.com ..................P2

Foreword:Professor Adrian Hopgoodpro vice-chancellorSheffield Business School ........................P3

Foreword:Chris Forrest & Debbie Mullenco-heads of YorkshireBarclays...................................................P4

A city without a fatal flaw ...................P5-6

Sheffield City Region LEP- two years on .........................................P7

It’s all about the money? ........................P8

Sector growth..................................P10-13

City Region Leadership- working smarter ............................P15-16

Round table discussion....................P17-19

IN tough times, theSheffield City Regionfinds itself in a verypromising position.Manufacturing, which isembedded in the area’sDNA, has within the spaceof a few years shifted frombeing a sector accepted tobe a declining thread of theUK economy to a centralpart of its recovery.

Investments from global names like Boeing andRolls-Royce have helped attract internationalattention to what those already in the region havelong known, that it is a world leader in advancedmanufacturing techniques.But the Sheffield City Region (SCR) has ambitionsbeyond manufacturing. The SCR Local EnterprisePartnership has identified low carbon industries,creative and digital indutries and healthcaretechnologies as being areas of huge potentialfor growth.

And there are signs that the LEP is starting to getthe resources it needs to turn those ambitions intoreality. Tens of millions of pounds have been offeredby the government to support its plans and whilethe amounts involved remain small compared tothose once spent by Yorkshire Forward they arenevertheless significant sums.Powers have also been given to the area: from theright to establish an Enterprise Zone to a City Dealproviding new control over skills training – a majorissue for this city region.Poke beneath the cautious surface and you will findreal belief among businesses in the Sheffield CityRegion that they are on the verge of exciting times.This supplement is an opportunity forTheBusinessDesk.com to shine a light on thoseexciting possibilities and we are fortunate to havethe support of two organisations thoroughlyengaged in the city region – Barclays and SheffieldHallam University.I hope it offers you food for thought.

Ian Briggseditor, TheBusinessDesk.com

‘Beneath the cautious surface youwill find real belief among businessesin the Sheffield City Region.’

Pgs 1 & 6 images courtesy of Welcome to Yorkshire

Ian Briggs - editorTheBusinessDesk.com

Promising future despite tough time

P2 TheBusinessDesk.com - Sheffield City Region supplement - Nov 2012


Deputy primeminister the Rt. HonNick Clegg hasrecently announcedthat Sheffield willreceive £65m ofgovernment cash tocreate hundreds ofnew jobs and fundnew research projectsacross the city.At the same time, the

Sheffield City Region Local Enterprise Partnership,set up to drive growth, has received £25mtowards its Unlocking Business Investment Scheme.These are clearly exciting times for Sheffield andSheffield Hallam University. In the Sheffield BusinessSchool, we are uniquely placed to respond to theneeds of the country as it meets the challenges ofour economy and society head-on.

As Sheffield continues to reinvent itself, theuniversity's role has been crucially important. In thepast decade it has invested more than £100m innew buildings and facilities across the city, to supportits ambitions to be a major contributor to theeconomic health of the region. In June, it wasannounced that the university's Collegiate Campuswas to be revamped with a major £25m investmentproject that will create impressive new facilities inthe leafy grounds, resulting in a fantastic experiencefor students based there.

The university is committed to becoming a top 50university by 2015 and its campus is a key part ofthis aim. The continuing campus development willgive students better facilities and timetabled space.It will also provide better space for studentsupport services, learning support and the studentsunion, along with improved accommodation andservices for staff.

Sheffield Business School has five research centresand three departments, dealing with innovativeteaching and learning in food, facilities management,tourism, the voluntary sector, and business andmanagement. From pioneering research looking atusing seaweed as a replacement for salt in food, totailor-made facilities management courses run inconjunction with industry partners, the SheffieldBusiness School is a vibrant place in which to discuss,innovate and create business.

Recently, we launched the Business EngagementCentre – a new space for the business school'sadministrative and executive functions. Its designand build was underpinned by our own academicresearch, looking at how space can be used efficientlyto provide a more effective working environment.The importance of business engagement for theuniversity cannot be underestimated at a time whenthere is a fundamental focus on the relevance thatdegree courses have to employment opportunities.We work to ensure that our courses provide studentswith the skills that they need for employment, andthat potential employers want from their staff. That’swhy we are in constant dialogue with regional andnational employers, who get the opportunity tocontribute to the development of courses.

Just last week I attended the Enterprise Challengeawards run by our Research and Innovation Office,which celebrates start-up businesses that were helpedby the university. The finalists were a wonderfulendorsement for the university's diverse offer. Threemature students who had set up businesses inmapping, brewing and tactile map design werealongside three recent graduates who had launchedbusinesses in party organising and sustainable design.One of the winners, David Hewitt from Silver TopBrewing, had completed a postgraduate diploma incity region leadership. This unique course, run inconjunction with the University of Sheffield, takesa bold and strategic look at problem solving, andhas recruited from the public and private sector.This course embodies the ethos of SheffieldBusiness School – bold and academically rigorous,it is not afraid to work in collaboration to developthe leaders of tomorrow.So, as the Sheffield City Region looks at how toallocate its promised funding, I can confidently statethat Sheffield Business School, and Sheffield HallamUniversity itself, can look forward to this excitingtime in the city's history.

Professor Adrian Hopgood,pro vice-chancellor,Sheffield Business School

Professor Adrian Hopgoodpro vice-chancellor,

Sheffield Business School

Unlocking Sheffield’s business potential

‘Sheffield Business School hasfive research centres and threedepartments, dealing withinnovative teaching and learning.’



SouthYorkshire isa resilientregion withan abundanceof goodnews storieseven throughthe ongoinguncertainty

in the wider financial markets.Some of the region’s larger businesses are seeingcontinued growth and as a region we continue tosee inward investment around the AdvancedManufacturing Park.The mood within the companies that Barclays workswith is also generally encouraging. Whilst the focusin the region remains on cost, we have seen thatclient performance has held up well. Most companiesare running with historically low leverage levelsand despite subdued confidence, M&A activity isstill buoyant as opportunities present themselvesto our clients.We have expanded our team across South Yorkshireand relocated to our flagship office in the heart ofthe city. This has paid dividends, as we aremaintaining our support for SMEs and largercorporates in the region, our staff of 60 continue tolook after the main sectors including manufacturing,retail and wholesale, property, professional services,healthcare and digital. Our lending book continuesto grow and our loan approval rates have remainedconsistent across the business with 90%* of allapproaches made being successful.Whilst manufacturing continues to play a majorrole in Sheffield’s future, the region’s economy isgrowing ever more diverse, as the region isreinventing itself with opportunities, as it is in thecreative industries, digital and data sectors, businessservices, and healthcare. It is important to keepabreast of those sectors that are showing potentialfor strong growth and maintain support forfledgling businesses within those sectors, whichwill offer valuable opportunities to grow anddiversify the area’s economy.Barclays is committed to helping its clients to findthe right combination of financial services to suitbusiness needs, both at a domestic and global level.This commitment is demonstrated by ourparticipation in the Funding for Lending scheme,which offers small and medium sized clients an

instant cashback injection of 2% on loans,immediately boosting a business’ cash flow. Called“Cashback for Business”, it follows on the heels ofBarclays cashback loan offered under the £1.5bnNational Loan Guarantee Scheme (NLGS). As theNLGS cashback has now been fully utilised due tostrong demand from customers, Barclays iscontinuing with cashback loans under the newFunding for Lending Scheme.Barclays will pass on the whole benefit we deriveunder Funding for Lending to our customers andwe are optimistic that people will take advantageof this cheap time to borrow, and make theinvestment decisions that they have been putting off.

The Funding for Lending Scheme will help tocreate one of the most competitive loan markets inrecent history and it is expected that the UK’s leadingbanks will offer many lending products which willin turn help fuel demand and competition.The most important thing we can do is to stay openand lend money. The fact that we’ve managed toincrease the amount we’re lending when the broadermarket has fallen is a clear indication of how weare continuing to support businesses.But we are also clear that to ensure economic recoveryis sustainable, responsible lending support isrequired. This is what our customers expect andwhat we will deliver.

Chris Forrest & Debbie Mullen,co-heads of Yorkshire, Barclays

Cashback for Business loan:• Barclays will be offering an instant cash injection

of 2% of the loan amount drawn down on dayone by our customers.

• Flat upfront cashback of 2% of loan amount onterm loans, capped at a maximum of £200k.

• Available to clients based in the UK with globalgroup client turnover up to £50m.

The information contained and views expressed in this article are intended purely forinformation and interest purposes only and no warranty or undertaking regarding the accuracyor completeness of the information of views is given. They should not be used to make anydecisions or take any actions. * Source: Internal Corporate Banking Hot Topics - Sept 2012.

‘We have expanded our teamacross South Yorkshire andrelocated to our flagship officein the heart of the city.’

Chris Forrest & Debbie Mullenco-heads of Yorkshire, Barclays



Lending for growth

SO quickly have timeschanged that it is easy toforget a few short yearsago the service sector,particularly financialservices, were seen as theengine of growth for theUK and manufacturing alost cause in the face ofcompetition fromemerging economies.Now a senior politician cannotmake a credible speech on theeconomy without mentioninghow advanced manufacturing– it is always advanced – will bevital to the recovery.

That’s music to the ears of thechief executive of a counciloperating in an area wheremanufacturing is at the heart ofthe local economy and countlessbusiness leaders have tired ofresponding to the call foradvanced manufacturing withthe cry ‘we are already doing it’.

“I’m optimistic about whereSheffield can go because there isnothing in Sheffield now that isa fatal flaw,” said JohnMothersole.

“We’ve got everything in placeto push forward because it is avery rounded city in the rightplace at the right time. Whowould have thought being inmanufacturing would be theright place to be?

“I am also optimistic in the policysense in that the role of UK citiesin delivering economic growthhas been recognised. We havegot to make sure that thegovernment’s actions follow theirwords and we have got to makesure we can deliver what we havepromised and that meansimplementing our side of the CityDeal.”

The City Deal saw the city regionsecure control over significantpowers on transport and fundingfrom the government and is anexample of another trendwelcome to a council chiefexecutive, an apparent newwillingness in Whitehall to listento the arguments for devolvingmajor decisions to a local level.

Mothersole is clear the city regionwill not be waiting for aninvitation to bid for a furtherCity Deal but will instead belooking for compelling ideas,working with business throughthe local enterprise partnership,that will help generate growth topresent to ministers.

“The big challenge we have is toidentify those proposals that areof the right type and moreimportantly the right scale totake back to government. Wehave a government that is keenfor growth and that is anopportunity because whereaspreviously there might have beena blueprint set nationally to followand the first test would bewhether we fit the blueprint,now the first test is whether itis a believable idea and therules can be broken in pursuitof a believable idea.

“If you are a business yourdream is to sell the customerexactly what they want. It is thesame for places – nationallydesigned solutions at best arenearly right and nearly right isn’tgood enough anymore,” he said.

A city without a fatal flawWHILE Sheffield has not been immune to the double-dip recession, for CityCouncil chief executive John Mothersole there is a sense that circumstancesare playing into the city’s hands - by James Reed

‘Mothersole is clearthe city region will notbe waiting for aninvitation to bid fora further city deal.’

‘Nationally designedsolutions at best arenearly right and nearlyright isn’t goodenough any more.’

John Mothersole, chief executive, Sheffield Council



But just as circumstances conspirein Sheffield’s favour, so theypresent new challenges.

Mothersole has held the chiefexecutive’s role for four yearshaving previously been directorexecutive director ofdevelopment, environment andleisure since joining theauthority in 1998.

And like other senior councilfigures across the country,Mothersole has found that justas he and his council colleaguesare asked to take a more activerole in promoting the localeconomy, they are also expectedto deal with significant cuts infunding.

“Clearly life is made harder whena lot of our attention has to gointo downsizing,” he said.

“It’s about keeping people’sheads up and downsizing withshape rather than just slashand burn. The challenge is thetime it takes and the resourceswe are losing.

“In the space of an hour youcould be having a conversation

about how you take £1m out ofcare and support for people andputting finishing touches to aRegional Growth Fund bid, butthat’s the world we live in. Oneof the things we can learn frombusiness is that if you can’tchange something don’t wastetime moaning about it. Thebest thing you can do is deliverit the best way possible,”he said.

Despite the challenges facingthe authority, both as a counciland as part of the wider cityregion, Sheffield is puttingmoney into funds that canprovide loans to local businessespursuing growth.

“We are not talking aboutmicro-financing, although we dothat as well, but stepping into aworld that makes people say‘that’s really innovative’ but it’swhat local authorities did forabout 100 years, they juststopped doing it about 30 yearsago. We have to face theembarrassment of failing but ifyou are worried about failing youdon’t try things.

“We have got a European fundrunning at £23m and we aresetting up other funds which,excluding transport, should getto £100m pretty quickly. Theseare substantial funds,” he said.

The approach reflectsMothersole’s broader view onthe role of local government inthe economy.

“If something is needed weshould be asking if it is somethingwe can do and if not who can doit and how can we work withthem to do it for Sheffield?What we do should know noboundaries but our starting pointis always the conditions neededfor growth,” said Mothersole.

The demise of regionaldevelopment agency YorkshireForward raised concerns in somequarters that different parts ofthe region would swapcollaboration for competitionwith damaging results.

As local enterprise partnershipsbegin to secure significantfunding from government andmove from planning toimplementation that concern hasreturned, particularly in regardsto a perceived rivalry betweenSheffield and Leeds.

But Mothersole insists it ismisplaced.

He said: “On things we willcompete but we are oftencomparing notes and decidingwho is best placed to win forYorkshire or the north of England.If there is one national centre onoffer we shouldn’t compete, weshould sit down and say who hasthe best chance of getting it oractually if we go together dowe increase our chances?

“Beyond that we will compete.We should be no different tobusinesses: collaborate where it’sbetter, compete where you arenot going to hurt each other butwhere one may gain.”

‘One thing we canlearn from busnessis that if you can’tchange somethingdon't waste timemoaning about it.’

‘We should be nodifferent to businesses:collaborate where it’sbetter, compete whereyou are not going tohurt each other butwhere one may gain.’



IN 2010, the Sheffield CityRegion Local EconomicPartnership wasestablished to increase thepace of economic growthwithin the region throughcollaboration.It’s aim was for private and publicsectors to work together toensure the growth of arebalanced local economy.Two years on, this LEP hasplaced fifth in a Financial Timesranking of UK foreign investmentpotential.The report, which analysed theeffectiveness of the 39 LEPs inattracting foreign directinvestment, places the city regionahead of most other core citiesincluding Manchester,Nottingham and Birmingham.

JamesNewman,Sheffield CityRegion LEPchairman,said: “WhilstI wassurprisedto see theLEP didn’ttake the topspot in thisleague table,

our relatively high rank reflectsthe strength of collaborationbetween the private and publicsector and the importance of thisto attracting overseas investment.“Sheffield City Region has verycompelling offer to foreigninvestors. Our recently establishedinward investment team isworking hard to capitalise onthe strength of this offer.”David Grey MBE, LEP boardmember and group managingdirector of Sheffield-basedmanufacturing group OSL GroupHoldings, added: “It is clearthat that our city region canoffer an unbeatable package toforeign investors and thatmakes the work of fine-tuning

our sales proposition andtargeting our communicationsmore important than ever.”

Henry Bootowns the 3million sq ftMarkhamValecommercialscheme thatsits within theSheffieldCity Region’sEnterpriseZone. It’s a

220 acre business park -Derbyshire’s largest everregeneration project - expectedto provide around 5,000sustainable jobs on completion.John Sutcliffe, finance director atHenry Boot, said: “We are afterthose people who know theyneed to move, or a Europeanbusiness that needs a UK baseand needs high quality, highlyskilled engineers. Sheffield isone of the first places they shouldbe looking.”Businesses from outside the cityregion that have taken space atthe park this year include car partssupplier Andrew Paige andmedical supplies companySquadron Medical.Around 10% to 15% of the sitehas been has been developedor earmarked for devlopment -180,000 sq ft was developed thisyear, on top of the 120,000 sq ftthat was developed in 2011.Sutcliffe said: “That the space isbespoke and new, and thecapital allowances incentives areall proving to be reasons whypeople are enquiring.”Sutcliffe thinks the EnterpriseZone package has been pitchedabout right but admitscommercial demand in general isstill muted.“It is hard getting deals away– even with the Enterprise Zone.The principal benefit is thecapital allowance but even so,it’s hard for people to get thefunding,” he said.

Capital allowance helps firms withhigh levels of capital expenditurewithin the building – such asextensive engineering andcomputer equipment.

“You could throw more moneyat it and it might help but I believethe package opportunity is there.There should be enough innormal circumstances but wehave slow growth and access tocapital is hard to find andexpensive,” he said.Henry Boot sees the site as along-term development project,providing long-term benefits tothe region.“We did Priory Park, a 135 acrescheme in Hull and have beendoing that for 15 years,” saidSutcliffe.Sutcliffe thinks the LEP has so fardone a good job with theresources it has had.He said: “The Sheffield LEP hashigh-quality people and is doinga good job but it is underresourced. We should give themcredit for doing what they havedone with what they have got.”

The Sheffield City Region LEP was one of the first to set out its stall. Now, morethan two years later, it is widely regarded as one of the best - by Joanne Birtwistle

‘This LEP has placedfifth in a FinancialTimes ranking of UKforeign investmentpotential.’

James Newmanchairman, Sheffield City

Region LEP

John Sutcliffefinance director,

Henry Boot Developments

Sheffield City Region LEP - two years on

Markham Vale site



RECENT proposed changesby Lord Heseltine couldboost the LEP’s powersfurther – giving it that keymissing ingredient:funding.Heseltine is calling on thegovernment to empower localenterprise partnerships (LEPs)with a £58bn growth fund.He states the case for giving theLEPs real financial power in hisstudy into the government’seconomic policy, publishedearlier this month.

In the report he says, “theycurrently do not have the authorityor resource to transform theirlocality”.To remedy this he is suggestingthat £48bn of government cash,earmarked for growth in variousWhitehall departments, is placed

into a single fund that LEPs canbid for. This should be beefed upwith £9bn of EU funding.In September, the governmentagreed to give LEPs £250,000 ayear each to meet running costs,but only if they can find matchfunding.The promise from the governmentrepresented a victory for LEPs,which have been arguing theycannot work properly without ‘corefunding’ to pay for key staff andindependent research.LEPs were introduced after thegovernment abolished the nineregional development agenciesset up in 1999 by the Labourgovernment, which had an annualbudget of around £2bn.Business groups in the SheffieldCity Region have broadly welcomedLord Heseltine’s call.James Newman, chairman of theSheffield City Region LEP, said: “Thisreport clearly endorses the principlethat private-public partnership isthe best way to deliver economicgrowth, and its recommendationsreflect the vast economicpotential of an appropriatelyfunded and resourced LEP.“We completely agree with the

report’s overarching principle oflocalism - devolving powers andfunding to local politicians andbusiness leaders, who worktogether for the benefit of the cityregion, is critical in rebalancing theUK’s economy.”

Chris Forrest,head ofYorkshire &Lincolnshireat Barclays,added: “TherecentHeseltinereportendorses thepublic-privatepartnership

approach to growth and themonies outlined in that report tobe decentralised out to LEPs willundoubtedly help the Sheffield CityRegion, particularly given it is sofar ahead of other LEPs.”

It’s all about the money?

ROTHERHAM Unitedchairman Tony Stewart hashailed the financial supportthe football club hasreceived in making its newstadium a reality.In August, Barclays providedsupport and working capitalfacilities for the League Two club.The club was based at Millmoorand then temporarily at Don ValleyStadium.The funding has been put towardsthe construction of a new purposebuilt stadium to seat 12,000 fansin the centre of Rotherham.The New York Stadium opened intime for the new football season.Tony Stewart, chairman ofRotherham United, said: “Barclays

has been a traditional bankingpartner for me for over ten yearsand the South Yorkshire team has

provided the football club with amodern and innovative approachenabling us to build this fantasticnew stadium.“This has allowed us to move thebusiness forward, grow withconfidence and plan with certaintyfor the future of the club.”Matthew Chenery, relationshipdirector at Barclays, said: “The NewYork stadium is a truly impressivevenue and achieving completion

on time reflects the energy andtireless work which Tony and histeam have put into this project.

“The stadium is a massive boostfor the town of Rotherham and ourfacilities will not only help with thecompletion of the stadium but alsoprovide the facilities for fans to payfor season tickets in a flexible andconvenient way.”

Stadium support for Millers

‘The stadium is amassive boost for thetown of Rotherham.’

Funding goal: (l-r) Chris Forrest of Barclays with RichardStewart of Rotherham United FC, Matthew Chenery ofBarclays, Tony Stewart, chairman, Rotherham United FCand Karen Thomas, finance director, Rotherham United.

Chris Forresthead of Yorkshire &

Lincolnshire, Barclays

‘The monies outlined willundoubtedly help theSheffield City Region,particularly given it is sofar ahead of other LEPs.’

Has the penny finally dropped with government that no matter how dynamica public private partnership is, it will always be limited in what it can achievewithout proper resources? - by Joanne Birtwistle



THE overriding purpose ofthe LEP’s sector groups isto facilitate economicgrowth in the sector withinthe Sheffield City Regionby acting as an officialadviser to the LEP.They involve key businesses, localcouncils and the Chambers ofCommerce from across theSheffield City Region.

The sector groups are:• Advanced Manufacturing

and Materials• Creative and Digital

Industries• Low Carbon• Property and Construction• Retail• Sport, Leisure and Tourism• Healthcare Technologies

Focus on... AdvancedManufacturing andMaterialsSheffield’s standing inthis sector is well-knownand this group was alreadyin existencebefore the LEP, as theManufacturing Forum.

The group’s purpose is to promotemanufacturing in the city regionboth locally and nationally.It was set up in 2007, by thecouncil, chamber and businessleaders and is chaired by the mastercutler – most recently NeilMacDonald, former group financedirector at AESSEAL, who took overthe role just over a month ago.

“We havebeen doing ithere anyway,”saidMacDonald,who addedthat thissector groupwas really theblueprint forall others.“It’s about

connectivity – people on the forumknow the Advanced ManufacturingPark, know the LEP and thechamber. The era of freebies hasgone so now we are workingtogether to make the money wehave work more,” he said.Much of the work already startedwith the LEP - such as RegionalGrowth Fund bids, the City Dealand apprenticeships - is ongoing,while the latest projects includeworking on a city-widemanufacturing skills strategy, aswell as reinvigorating exportsand international trade in SouthYorkshire.But MacDonald wants to get moreSMEs involved and encouragesthem to get in touch.“We know the large activemanufacturers. It’s getting SMEsinvolved that is much moredifficult,” he said.Chris Forrest, head of Yorkshire& Lincolnshire at Barclays, added:

“This region is well-known for itsmanufacturing heritage andstrengths – but in a globalenvironment competition nevergoes away and this city’smanufacturing sector cannotafford to rest on its laurels.

“The LEP’smanufacturingsector focusgroup has akey role inmaintainingour leadingposition andthemomentumthat hasbeen createdover the

years in this sector.”That momentum, evidenced bysuccesses such as the creationof the Advanced ManufacturingResearch Centre and its apprenticetraining centre at the AMP,shows Sheffield is certainlystealing a march on other regionsin this sector.Only last month, more than £35mwas awarded to the NuclearAdvanced Manufacturing ResearchCentre from the government’s£2.4bn Regional Growth Fund.The centre, being run by theUniversity of Sheffield andRolls-Royce at the AMP, is set toplay a key role in the UK’snuclear supply chain.

The Sheffield City Region LEP has established sector groups for sevenindustries that are recognised as important to support the productivitygrowth and job creation in the city region - by Joanne Birtwistle

Neil MacDonaldmaster cutler,

The Cutlers’ Company

‘We know the largeactive manufacturers.It’s getting SMEsinvolved that is muchmore difficult.’



Sector growth for Sheffield



The Nuclear AMRC, which openedin May, aims to combine universityresearch with industry expertise tohelp UK manufacturers takeadvantage of opportunities in thenuclear power sector.It’s funding award will be used tosupport its large-scale programmeof supplier development and

manufacturing research inpartnership with key industrialmembers.The programme focuses on thecivil nuclear new-build industry,but has applications across thenuclear value chain and otherindustries in the energy sector.Professor Stephen Court,

operations director at the NuclearAMRC, said: “The Nuclear AMRCis a prime example of the kind ofpartnership approach which isso important to our future asworld-leading manufacturers.

“Combining industry expertise anduniversity innovation, we workwith companies to improvecapabilities and performance along the nuclear supply chain.The key to our success is that ourmembers are the manufacturersthemselves, and our dedicationto helping UK businesses becomesuppliers of choice to theglobal civil nuclear industry.”

Focus on... Creativeand Digital IndustriesThe creative and digitalindustries (CDI) employmore than 45,000 peoplein the city region – one ofthe key reasons it wasidentified by the LEP as asector that had the greatestpotential to driveproductivity growth overthe next decade.In keeping with the LEP’s aimsand approach, the CDI sectorgroup is drawn from businessleaders, the public sector andacademia from across the cityregion to provide a CDI Sectorview and advise the LEP board inrespect of their key objective ofsector growth.Mike Holcombe, who specialisesin software development atSheffield University, leads the sectorgroup, which he says is looking toreplicate some of the hugesuccesses already seen in themanufacturing sector.“We are looking at the AMRC as avery successful exercise. Theuniversities are looking to dosomething similar in the digitalresearch area,” he said.The aim is to set up an AdvancedDigital Research Institute in the

Bulroc, the Chesterfield-based manufacturer ofdown-hole percussive rockdrilling equipment, isgearing up for a newphase of growth havingjust completed itsexpansion into fully-ownedpremises that more thandouble its space.The firm, which was “bursting atthe seams” of its old 25,000 sq ftpremises has invested around £3min the new 55,000 sq ft single unitpremises, which was formerly theAuto Windscreens factory.It took the firm some time to findthe right premises because ithad to stay in the Chesterfieldarea, according to founder andchairman John Hurt.

He said:“A skilledworkforcewith the rightqualificationsis hard to find.We moved15 minutesaway fromthe old sitebecause ofthat. It’s taken

this long to find a building thatis suitable in size.”He added: “We were totallyrestricted – I don’t know how wemanaged. There was not enoughroom for the staff and the lack ofspace meant processes were notvery efficient. We will be muchmore efficient on the new site.“We were unable to developnew equipment and marketsand the lack of space was holdingus back. Now we have selectedcertain markets to really target andare renewing our productdevelopment lines.”

The company employs 55 staff andHurt says that with the expansionit is working towards a £10mturnover within the next two years.

Around 90% of turnover is fromoverseas markets, with customersspread across more than 40different countries.Bulroc has an office and warehousestocking facilities in Hong Kongand Hurt says its government hasexpressed interest in its newlydeveloped foundation drillingsystems. This equipment isdesigned to stop the destabilisationof existing buildings that sit nextto sites that are in development.The company is also looking intoopportunities in sectors such asgold sample extraction and willbe developing equipment in reversecirculation, which brings samplesthat are 99% pure up throughthe ground.It’s an area the company startedto develop years ago, beforeshifting to focus more on theconstruction side, but Hurt nowthinks rising gold prices andgrowing demand mean theopportunity has returned.

Bulroc - targeting growth

‘A skilled workforce withthe right qualificationsis hard to find.’

John Hurtfounder and chairman,

Bulroc

‘Combining industryexpertise and universityinnovation, we workwith companies toimprove performance.’



next year that will become asustainable, self funding entitywithin three years.The industry facing researchinstitute would specialise insoftware and systems quality anddata analytics.“Many organisations are datarich and information poor, theopportunities for using newtechniques for analysingmultiple data sources and theinvolvement of university expertisein interpreting the results andanalysing policy options will bringconsiderable benefit to both

university research and commercialactivities with partners,” he said.The centre would also supportinnovation in software testing andhelp companies to take the latestdiscoveries and exploit them forcommercialisation.The group is also investigating thepossibility of setting up an‘interaction zone’ in the centre ofSheffield.“People will walk past and thingswill talk to them and text toplasma screens. It will be in a placewhere companies can test newtechnology that people interact

with. So, in Meadowhall [shoppingcentre] you may have a robotdressed as a mannequin that you

‘The aim is to set upan Advanced DigitalResearch Institute inthe next year thatwill become asustainable, selffunding entity withinthree years.’

Sheffield-headquarteredWANdisco - which standsfor Wide Area NetworkDistributed Computing -provides tools for softwareengineers and has themost popular softwarerepository in the world.The company, which floated onthe AIM market earlier this year,saw sales increase by 86%year-on-year to £1.25m in thethird quarter of 2012.It moved its software engineersfrom Silicon Valley in the US toSheffield three years ago. Today,around 65 of its 110 staff arebased in the city.

ChiefexecutiveDavidRichards saysthe decisionto make themove toSheffield wasabout costandefficiency.

“For mid-level java developersthey are a third of the cost inYorkshire, relative to SiliconValley,” he said.

“When you look at traditionaloffshore locations like India orChina you don’t get theefficiency you would get inSheffield. Also there are otherconsiderations such as telecoms,language and culture.

“The move has been reallysuccessful - we had no problemsfinding skilled people and didn’tneed to use a recruiter.There is agood university system in the city,with a decent computer sciencedepartment – that did figure inour thinking.”But Richards is not convinced of theneed for cluster groups in a sectorthat is largely about being able todo business with anyone, anywhere.“The UK government is obsessedwith the Silicon roundabout andcreative clusters but the whole pointof the internet is that you don’tneed clusters. We collaborate withpeople from all over the planet anddon’t need people to be in the sameplace,” he said.What he thinks creative SMEs reallyneed is proper funding.“All the council can do is providethe right environment for telecoms,office space etcetera. But ultimately,if someone comes up with thenext Facebook there must reallybe funding from the private sector– as there is over here [the US].“Sheffield has done a good job.

It has built the Electric Works andhas high speed internet - all thethings we would expect - but themissing piece is funding. There isnot the same vibrant venturecommunity in the UK, or peoplewho can spot the next Facebookor Google,” he said.

WANdisco floated in June and hassince seen its share price rise from180p to more than 400p. It is usingthe £16m it raised from the initialpublic offering (IPO) to invest inambitious expansion.Richards said: “We are expandinginto Big Data, which is a seismicshift in IT ware. It means you canindex and search colossal amountsof data – such as NHS records, forexample. We are also opening inChina and developing products.”

WANdisco - a worldwide outlook

David Richardschief executive,

WANdisco

‘We collaborate withpeople all over theplanet and don't needpeople to be in thesame place.’



could text and then it would speakback to you,” said Holcombe.Simeon Yates sits on the LEP sectorgroup with Holcombe and leadsthe CDI sector links for SheffieldHallam University, which he sayssits within the largest square mileconcentration of CDI business andenterprises in South Yorkshire.He said: “Over the last ten yearsour collaborative work has includedmajor funding and support for thelocal CDI sector, through theongoing Design Futures Centre forIndustrial Collaboration and theInnovation Futures Programme.Sheffield Hallam's links to theCDI sector expand beyond artand design to film, media anddigital technologies.“We have a long standing link withthe Sheffield DocFest, one of thetop three documentary filmfestivals in the world, and arecurrently supporting many of thedigital engagement initiativesbeing undertaken by SheffieldCity Council.”

Focus on... HealthcareTechnologiesInitially seen as a sub-sectorof both manufacturingand digital & creative,the healthcare technologiessector group has nowbeen set up as a standalonein its own right.Philippa Hedley, sector growthmanager for healthcare

technologies at Creative Sheffield,helped to form the sector groupin December 2011.

She said:“There arespecific thingsabout thehealthcaresupply chainand marketthat meansit sometimesneeds help,such as thecomplexitiesof getting

into the NHS, so its a sector thatneeds bespoke activity.”The sector group has set outfive priorities to action:• to accelerate innovation from

concept to commercialisation• to market globally the

Sheffield City Region healthcaretechnology proposition

• to secure skills for futuregrowth

• to develop international tradeand inward investmentopportunities

• to tailor support services forthe healthcare technologysector.

The group has 30 members frompublic and private sectors, cliniciansand representatives from the NHS.Private companies involved inthe group include JRI, SingleUse Surgical, UK Medical andFripp Design.The group aims to coherently

promote the world classcapability and reputation of thiscity region for innovation,manufacturing and thecommercialisation of healthcaretechnology.

“That might be devices or newprocesses but all have the objectiveof delivering improved patientcare. The vision is to work morestrategically to promote thatcapability,” said Kay Phillips headof UK business development forthe faculty of health and wellbeingat Sheffield Hallam University, whois involved with the group.“In this city there is enormouspotential because of the expertisethat exists. We have twouniversities with experts in theirwalls – with a big engineeringdepartment at Sheffield University.At Sheffield Hallam University wehave the Lab for Living, whichlooks at the design of medicaltechnologies. There are bioscience research centres and theBiomedical Research Centre atSHU,” Phillips added.Sheffield Hallam also hasstrength in the sports arena,which shares close links withhealthcare technologies – itsSports Engineering Centre, forexample, is looking atbiomechanics and devices toimprove movement.The sector group also hopes tobuild on the expertise of the highlyspecialised steel and surgical steelmanufacturers in this region.“We want to show how in thisregion we can take somethingfrom first concept through to aproduct in the marketplace,”said Phillips.The inward investment team atthe LEP is looking at targetedinternational events such asOMTEC in Chicago and AdvaMedin Boston – positioning the cityregion on a global market.

‘The group aims topromote this city regionfor innovation,manufacturing and thecommercialisation ofhealthcare technology.’

Philippa Hedleysector growth manager forhealthcare technologies,

Creative Sheffield



THE public sector hasfound itself particularlyaffected by the economicdownturn as it has beenforced to face spendingcuts with no reductionin the demand forservices – the challengeis that it must now domore with less.

StephanieSturges,programmeleader for theCity RegionLeadershipProgrammeat SheffieldHallamUniversity,said: “Thatcalls for aninnovativeapproach to

leadership and developmenteducation, looking at ways inwhich we as educators can helpto improve strategic leadershipskills to enable managers at alllevels to make maximum effectiveuse of the limited resourcesavailable to provide the bestpossible service delivery.”

Collaboration can not onlyimprove effectiveness, but alsocut duplication and help to reducecosts. That's the approach of theCity Region LeadershipProgramme, which bringstogether both the city’suniversities, Sheffield City Council,NHS Sheffield South YorkshirePolice, South Yorkshire Fire andRescue and RotherhamMetropolitan Borough Council ina partnership approach to

tackling the problems faced bypublic services.

The aim is for participatingorganisations to share expertiseand knowledge to come up withcreative responses to serviceenhancement.

The course itself combinesacademic theory, skillsdevelopment and the applicationof practical problems within asocial learning context – a vitalelement in developing themodules was the need for themto be grounded in practicalbusiness examples.

The four core modules oninnovation, managing change,customer-centric services andbusiness focus are furthercomplemented by an overarchingleadership module. This providesmasterclasses, individualcoaching, action learning sets andproject work to create a variedand stimulating approach topersonal and professionaldevelopment.

Sturges said: “This is not thedidactic approach of tellingpeople what to do and how todo it, rather a genuine facilitationof ideas exchange and providingsupport for all the participantsto work together to developtheir own solutions.”

More than 120 middle managersfrom a range of organisationshave already successfullycompleted a PostgraduateCertificate through theprogramme.

Sheffield Business School hasbeen assessing the impact of theprogramme on individualparticipants and looking athow they’ve used their learningin the workplace to help theirteam and the widerorganisation.

Its report details significantbenefits in the effectiveness ofworking together to reducecosts - one project alone ispredicted to result in savings of£4.35m through sharing servicesacross six agencies.

Participants’ overall leadershipcompetencies have alsosignificantly improved, with 59%saying they feel skilled in the areasof diagnosing change, comparedwith just 7% before the

City Region Leadership - working smarterEffective leadership is vital to delivering economic growth and Sheffield’s twouniversities are working together to develop leadership skills - by Joanne Birtwistle

Stephanie Sturges,programme leader for

the City RegionLeadership Programme,

Sheffield HallamUniversity

‘The aim is to shareexpertise and knowledgeto come up withcreative responses toservice enhancement.’

‘One project alone ispredicted to result insavings of £4.35mthrough sharing servicesacross six agencies.’



programme; while 80% ofparticipants feel skilled ingenerating new ideas, comparedwith 26% before the programme,and 36% feel skilled in strategicmanagement accounting,compared with 9% before.

JohnMothersole,chiefexecutive ofSheffield CityCouncil,said: “Thisinitiative hassurpassed theexpectationof our cityregion

partnership. It is proving verycost effective.

“We are seeing amazingdevelopment in our people andcross sector achievements.This bodes very well for ourability to tackle current andfuture challenges and provide ourregion with outstandingleadership.”

The programme has also helpedto develop professional networks,according to Sturges.

She said: “[It has helped]people to work together and isbreaking down the barriers toaccessing knowledge andinformation about other servicesor organisations.

“This pioneering programme willhelp the Sheffield City Region facethe challenges ahead through ateamwork approach, rather thaneach individual organisationstruggling alone.”

Cath Toovey, station managerwith South Yorkshire Fire andRescue Service, says the coursehas changed the way sheapproaches her job.

“I’m now asking 'is this theway we do it because we havealways done it like that, or canwe look at different ways ofdoing it?' So it’s really mademe look at how we do ourday-to-day jobs.

“I like the practical use of modelsthat they gave us and we areconstantly using examples fromour own services. We work inteams with other public services,the voluntary sector, and also theprivate sector.“Everyone brings a differentslant to the table whendiscussing a problem you face,or by explaining the challengein layman’s terms, you simplifythe problem,” she said.The programme has been widelyacclaimed and was highlycommended by The EuropeanFoundation for ManagementDevelopment in its annual awards2011. This puts it in someprestigious company - othercommended schemes includethose run by Rio Tinto, DeutscheBank and Ernst & Young.

The success of the approach hasalready been noticed beyond theSheffield City Region, anddiscussions are underway with anumber of other UK regionsabout how the learning from thisprogramme could be developedand transferred into tailor-madeapproaches for other areas.Sturges added: “We’re alreadylooking at extending thecurrent programme to Masterslevel, broadening involvementand looking at more ways toencourage cross-sectoralworking.”In the longer term, there are plansto create a City Region LeadershipAcademy, to support thedevelopment of current andfuture city region leaders. Partof those plans centre on bringingin participants from private andthird sector organisations toincrease understanding andcollaboration not just betweenpublic bodies, but across all threemajor sectors, to challenge andcollaborate to build regionalcompetitive advantage.

‘There are plans tocreate a City RegionLeadership Academy,to support thedevelopment of cityregion leaders.’

John Mothersolechief executive,

Sheffield Council

In April, Barclays launcheda new £20m apprenticeshipprogramme, creating 1,000apprenticeships in thefinancial services industry.The bank will be recruiting onaptitude and attitude rather thanexperience and qualifications,giving specific focus to those notcurrently in employment, educationor training.

Chris Forrest,head ofYorkshire &Lincolnshire,Barclays, said:“We are at theforefront ofsetting upserviceapprenticeships.We arehopeful that

Sheffield will benefit from that inthe next few months.”

Apprentices will receive 12 monthstraining and support before

progressing to a permanentposition, and will receive a salarycommensurate with entry levelpositions at Barclays.During their training,apprentices work to achieve acompetency qualification inFinancial Services similar to anNVQ, a BTEC Award in CustomerService, and qualifications innumeracy and literacy.



Banking on skills

‘The bank will berecruiting on aptitudeand attitude ratherthan experience andqualifications.’



THE Sheffield City Regionboasts world leadingcompanies enjoying hardfought success despite thechallenging globaleconomic conditions.That was clear when leadingfigures from business, educationand the public sector met todiscuss its future.

And with Sheffield City Counciland the city region’s localenterprise partnership (LEP) puttingtogether significant funds thatcould be invested in businessand infrastructure, there isevidence the public sector is readyto play its part in growing thelocal economy.

Finding ways of joining thoseelements together and projectingthe area’s success to the outsideworld were key themes exploredat the discussion, held atSheffield Business School.

There was agreement thatmanufacturing remains at the coreof the region’s business communitybut it is a sector increasinglyinternational in its outlook.

“We are seeing very fewcompanies go out of business.I think they are in good shape,

not many have terminal issuesbut some of those business leadersdon’t have the confidence to takethe big investment decisions,”said Chris Forrest of Barclays.

“The ones that are doing wellwent down the international patha long time ago. What we need toget better at is helping companiesgo on that journey because that’swhere the growth for the SheffieldCity Region will come from.”

The sentiment was echoed by IanForbes, of Marshalls Hard Metals:“A lot of the companies I comeacross do surprisingly little in termsof export. For me at least 40% ofyour business should be exports:we do something like 80%.

“I think we have got to get itthrough to the entrepreneurs oftomorrow because old guys likeme aren’t going to change too

Sheffield City Region round table attendees

Round table discussionSetting out Sheffield’s stall in a global market place- it’s more than manufacturing - by James Reed

Attendees:

‘A lot of the companiesI come across dosurprisingly little interms of export. Forme at least 40% ofyour business shouldbe export.’

David Parkin- founder,TheBusinessDesk.com(chairing the event)

Lynda Hinxman- assistant dean,employer engagement,Sheffield Business School

Andrew Marsh- corporate director,Barclays, South Yorkshire

Chris Forrest- head of Yorkshire &Lincolnshire, Barclays

John Mothersole- chief executive,Sheffield City Council

Hugh Facey- founder & chairman,Gripple

Angus Ponsford- director,Ponsford

Barry Cunliffe- chief financial officer,ITM Plc

Ian Forbes- chairman,MHM Group

Martyn Weatherall- senior partner,Hawsons

Auriel Marjumdar- head of businessdevelopment,Sheffield Council

Ben Curran- councillor,Sheffield City Council



easily. It should be on everyfuture entrepreneur’s mind thathis business is going to beinternational.”

Furniture retailer Ponsford is oneof those businesses alreadyoperating globally.

“We have developed our ownmanufacturing base in China andVietnam through third parties andbrought goods in whereas 10 or15 years ago that was virtuallyunheard of,” said Angus Ponsford.

“While our retail business hasstayed the same our supply ofgoods has become internationalto the point where very little isUK sourced.”

There was less agreement on therelationship between the cityregion and the global economy interms of inward investment.

“In China and India you can set upin special enterprise zones and notpay tax for five years. This is not alocal government issue, it is acentral government issue and ifthey want the economy to growthey have got to look at that tax

legislation,” said MartynWeatherall of Hawsons.

“We’ve got what I see as being anold presence in the global eye. Itis good to hear about funds forlocal businesses and they mighthelp outside businesses come in.But how do we raise Sheffield’sgame on a global table for outsidecapital to come in?” he added.

Barry Cunliffe, from ITM Power,was less sure that attractinginternational businesses was thecorrect strategy.

“If you are going to incentivisebusiness development and jobcreation I don’t think it’s a goodidea to attract existing businessesin because they will just look forthe next grant and move whenthey can. I think the best way todo it and I think Sheffield can doit is to generate from within interms of the innovation and qualityand businesses that the regionalready has.

“If you are operating a globalbusiness , it [can be] a very quickdecision in the boardroom in aforeign capital city [to] open orclose that facility,” he said.

Whether to attract visitors ornew investors, there wasenthusiasm for the city region toportray an image that extendsbeyond manufacturing.

Auriel Marjumdar, from SheffieldCity Council and a graduate of theSheffield City Region LeadershipProgramme, said: “One of thestunning successes of the SheffieldCity Region has been the creativeand cultural sector, so we haveaward winning festivals,internationally known musicians.There is something about thecharacter and youngentrepreneurship across all sectorsthat is there to be grown.

“Sheffield is cool internationally,we are a brand as a city and peopleknow it for the things we makeor the musicians we produce.The raw material is out there,like it is in manufacturing, forthe cultural sector.”

Around the table there wasagreement that the city’suniversities have a key role to playin attracting businesses to the area,supporting firms already inSheffield and producing ideas thatlead to new enterprises.

Lynda Hinxman, from SheffieldBusiness School, said: “What wecan do as a university is tosupport organisations to developconfidence, their export abilities,understanding markets. In thebusiness school a third of ourbusiness is international,students from India, China, allover the world.

“We can provide knowledge,research and skills development.One of the crucial things for thisregion is skills development at alllevels and we have done somegreat things together with the citycouncil and other public sectororganisations around the CityRegion Leadership Programme.

“We also work sucessfully withSIG and other SMEs in the region.A key challenge moving forwardis working in partnership with

Lynda Hinxman - assistant dean, employerengagement, Sheffield Business School

Auriel Marjumdar - head of businessdevelopment, Sheffield Council

‘There was enthusiasmfor the city region toportray an imagethat extends beyondmanufacturing.’

‘One of the crucialthings for this regionis skills developmentat all levels.’



the public and private sectors todrive the city region forwards.”

The Sheffield City Region LocalEnterprise Partnership is onemechanism in place to bringprivate and public sectortogether but while there wasrecognition of its achievementsto date question marks were alsoraised about the extent to whichbusinesses are engaging withthe idea.

Andrew Marsh from Barclays said:“We have got a fairly resilientbusiness sector in Sheffield, theyare self sufficient and they arejust getting on with it. As westarted going into recession in2009-10 you would go andspeak to customers, particularlyin the manufacturing sector, andask them ‘what’s it like to operatein a recessionary environment?’and they would say ‘that’s howI’ve been running mymanufacturing business for thelast 10 or 15 years’.

“So there is engagement, yesthere has to be, but I don't think

it is a top priority for somebusinesses, their main concern isthe day-to-day running of theirbusiness, they are just getting onwith it and exploiting marketsthat will lead to growth.”

Gripple founder Hugh Faceythought moving power to thearea from Whitehall was a vitalstep and praised previousmechanisms for promotinggrowth including the SheffieldDevelopment Corporation andObjective One.

“The problem is everything still hasto be Central governmentapproved. What we have got todo is get devolution,” he said.

“20% of government GDPshould go to the regions and theyshould be left to get on with it,but no we have to get a policy andgive it to them.”

Sheffield Council’s John Mothersolepointed to the recent Sheffield CityRegion City Deal as evidence thatpowers could be moved into localcontrol and argued the beststrategy was to pursue “earnedautonomy”.

“If we are to win the argument itwould take time to win it and whathappens in the intervening years?We need to get to the positionwhere Sheffield City Region…keeps coming up with winningproposals so they think there maybe something in the devolutionargument,” he said.

Despite the challenging economicconditions, there was enthusiasmin the room about the potential ofthe Sheffield City Region andagreement that many of the rightingredients are already in place forit to have a thriving future.

Coun Ben Curran, another graduateof the City Region LeadershipProgramme, said the next few yearswere about “realising ourambition”.

“We are consulting on a neweconomic growth strategy forSheffield and it’s a reallyambitious document. There arethings in there about developinginternational trade, connectinggraduates with SMEs, moreapprenticeships and over thenext few years it’s about fulfillingthat ambition.

“I think there are a few earlysigns that we are walking thewalk as well as talking the talkwith LEP being ranked fifth interms of foreign investment inthe country,” he concluded.

Ian Forbes - chairman, MHM Group

‘We need to get tothe position whereSheffield City Regionkeeps coming up withwinning proposals.’

‘We are consultingon a new economicgrowth strategy forSheffield and it’s areally ambitiousdocument.’



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