22 focus on M27 & southampton


Allure of M27 creates its own business ecosystem


The fact that one of the region’s beacons of success decided to set up its new headquarters right on the verge of the M27 speaks volumes, writes Norman Armstrong, partner at Grant Thornton in Southampton


The area surrounding the motorway, which links the cities of Portsmouth and Southampton, is fast becoming an epicentre for Solent commerce and it’s not hard to see why Ordnance Survey chose to custom-build its flagship office there.


A quick glance at The Business Magazine’s Solent 250 list of the top- performing companies in the region corroborates the idea that the motorway has its own unique pull.


Well over a third – 37.6% of companies on the list are based around the M27, either in Portsmouth or Southampton. Hendy Group, which employs some 690 people and has sales of £251.5 million, is just one example at number nine on the list.


It seems there’s no denying the allure of the 25-mile stretch of tarmac. But what makes the M27 such an attractive place to do business?


Firstly, there’s the obvious: connectivity. Not only can businesses based along the M27 get from one end to the other in around half an hour, but they benefit from the offshoots of this road infrastructure. Winchester, London, the North and even the continent are easy to get to via the various


links and this makes for a very attractive proposition, particularly for warehousing and logistics firms.


Meachers, MSX and PSP are just a few of the logistics and warehousing firms to base themselves on or near the M27 and it’s not just locally- born companies that see the benefit of this location. German supermarket giant Lidl hopes to open its regional distribution centre in Nursling by the end of this year, creating 400 new jobs.


In an economic environment where every penny counts, floor space that costs less than it does in London but still has good access to the capital is something to be snapped up.


Connectivity isn’t just a benefit for getting goods from one place to another. The M27 allows talent to flow from city to city across the south. At a time when it’s never been more important for companies to arm themselves with the right people, it’s vital that businesses can attract employees from a wider geographical pool. This simply wouldn’t be possible if employees had to contend with longer commutes along smaller roads.


The investment and growth of towns and villages along the


Ones to watch along the M27 Import Services


Port-centric supply chain logistics company Southampton


Since the first publication of the Solent 250 list in 2010, Import Services has seen a 38% growth in turnover and increased its employees by 28%. To keep up with demand the firm, along with ABP Port of Southampton, has invested in a new warehouse, due to open shortly.


www.businessmag.co.uk


Williams Trade Supplies Plumbing and heating suppler Fareham


This year Williams Trade Supplies celebrates its 40th birthday. Clearly the M27 has been beneficial to the growth of the business with many of the company’s 28 branches located in and around the popular motorway. As a result of its growth the company has increased its employees by 61% over the past four years.


M27 corridor is playing a part in attracting talent to the region. The rise of Whiteley is just one example, with the retail village and business park making for a pleasant place to live and work. Looking ahead, the Welborne Plan near Fareham could follow in its footsteps with proposals for up to 6,000 homes, workplaces, schools, green space, shops and local community facilities.


Another selling point for this stretch of the Solent is the fact that it is flanked at either end by high- performing, research intensive universities. The universities of Portsmouth and Southampton act as ’business bookends’, propping up organisations along the motorway and feeding them with talent and innovation.


What businesses in the region must not do is take this talent for granted. The private sector, along with local government, has a big part to play in retaining the talent that comes from these institutions and developing it through work experience, internship and apprenticeship opportunities. Both must work together to make the region an attractive place to live and retain students who are often lured to rival cities like London, Bristol and Brighton.


Norman Armstrong is a partner at Grant Thornton in Southampton. He has broad experience of advising growing companies, assisting management teams in realising their ambitions. He has supported start-up and management buyin/buyout teams successfully through the phases of growth realising significant value on exit or listing.


Details: 023-8038-1114 norman.armstrong@uk.gt.com www.uk.gt.com


What is exciting about the future of business along the M27 is it’s likely to become even more of a watering hole for companies across all sectors. It has become its own ecosystem and each time a new firm moves in it adds to the rich web that serves to attract other businesses from across the UK.


Even investments to the surrounding motorways have had a positive impact on the region as a place to do business. The opening of the A3 Hinehead tunnel has opened a new gateway, drawing in a fresh wave of businesses from London and Surrey.


Vohkus


IT supply and services Fareham


Vohkus has seen a fantastic 68% growth in turnover in the past four years. Last year the company launched its ’Fast Track 20’ initiative to develop its “future talent“ of highly-accomplished sales professionals and brought a new COO on-board, Craig Compton.


This has in turn, according to local experts Hughes Ellard, pushed up the value of commercial property in areas such as Havant, bringing in more money to the region and contributing to the local economy.


Looking to the future it seems it’s not just businesses that have optimism in the growth of the M27 corridor. Local government’s view for the coming years is a positive one, with £10.3m being invested in improvements to junctions five and three taking place this summer.


THE BUSINESS MAGAZINE – SOLENT & SOUTH CENTRAL – SEPTEMBER 2014


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