Business News


Birmingham’s economy primed for turbo-charge


By John Lamb


The region’s economy is about to become “turbo-charged”, a gathering of business leaders was told. Tim Pile, who chairs Greater Birmingham and Solihull Local Enterprise Partnership (GBSLEP), was speaking at a lunch for patrons of Greater Birmingham Chambers of Commerce hosted in the city centre offices of law firm Pinsent Masons.


‘We have a lot of things that are going to help turbo-charge our economy’


He said the region had enjoyed a


“superb performance” over the past 10 years and was in a strong position with “a sense of renaissance, refreshment and renewal”. Mr Pile added: “We talk about all


of this growth and success in the region and yet the turbo-charging elements haven’t hit yet. “Yet to come are HS2, the


Commonwealth Games, the Coventry City of Culture and G5 and major players, like HSBC, have moved into this area. We have a lot of things that are going to help turbo-charge our economy which haven’t even happened. “We are starting from a real


position of strength but we do have


Turbo-charging growth: (From left) Chamber chief executive Paul Faulkner, Pinsent Masons’ Greg Lowson, Chamber policy director Henrietta Brealey, Tim Pile and Chamber president Saqib Bhatti


challenges which I don’t want to dismiss. They are incredibly important but they are the fundamentals we have got to deal with.” Mr Pile warned that the impact


of Brexit was causing “real damage to business, investment and consumer confidence”. “People are deferring decisions on issues they would otherwise make because of this level of uncertainty.” He went on: “It is time for us to


start investing in people and in infrastructure, which desperately needs development. That’s going to remain a major challenge and


obviously business growth is slowing.” Mr Pile said he liked to regard


the region as a business but added: “The workforce in our business is not adequately trained. We are letting them down – and shame on us.


“There is a huge challenge but I


also think it is a massive opportunity. If we have delivered six per cent growth in productivity and three per cent growth in GDP with an under-skilled workforce, imagine what we can do when we actually do invest in our people at the correct level.”


Insolvencies in sharp increase


The number of companies entering into administration in the Midlands increased by almost 40 per cent during the third quarter of 2019, according to analysis from KPMG. The number of companies


entering administration in the Midlands increased from 36 in the second quarter to 50 in the third quarter. This represents a considerable


increase over Q3 in 2018, when 39 appointments took place. The region makes up 12 per cent


of administrations nationally, but only two per cent of those had turnover over £5m. The industries most affected


were infrastructure and industrial manufacturing, which accounted for 14 and 16 of the appointments respectively.


Infrastructure remains an


industry with a high level of insolvencies, averaging 14 per quarter since the start of 2017. The industrial manufacturing


sector has risen from 11 appointments in Q2 to 16 in Q4. This was largely driven by the


metal subsector, making up nine out of 16 appointments. Chris Pole (pictured), restructuring


partner at KPMG in the Midlands, said: “2019 has been a troubling year for manufacturing businesses in the Midlands, with many facing a lack of investment due to continued political uncertainty. “This has been exacerbated


further by a slowdown in volume in the automotive space, which is a key sector for many manufacturing supply chains locally. “The good news is that many


companies are now proactively addressing long-term issues and attempting to place themselves on a more sure financial footing, ahead of any further macro-economic challenges that are coming down the line.”


National park


gets go ahead A Government review has backed plans for a new urban National Park in the West Midlands. The Landscapes Review has


supported the ambitious plans originally conceived by Birmingham City University Professor and landscape architect Kathryn Moore. The proposal has also


received substantial backing from West Midlands mayor Andy Street and a host of institutions across the world. The final report from the Department for Environment, Food and Rural Affairs’ Landscapes Review said reviewers were ‘impressed’ by the proposals for the West Midlands and that they ‘hope it happens’ and want ‘to see them thrive’. The concept would create a


National Park in the region spanning more than seven cities, creating hundreds of miles of green space, conservation areas and new cycle routes. Professor Moore (pictured)


said: “It is fantastic to see DEFRA’s report demonstrate such support for the creation of a West Midlands National Park and the major benefits that will bring to our region. “The West Midlands should


lead the way by creating this new kind of urban national park, taking its place as the greenest metropolitan area in the country.” Mayor Andy Street and


Professor Moore had pitched the National Park idea to the Review’s architect, Julian Glover, back in 2018 and have since been working hard behind the scenes to turn their vision into a reality. Mr Street said: “When we


used to talk about a National Park in the West Midlands people laughed us out of the room. But I knew we were onto something and now it is official – the Government’s Landscapes Review has endorsed our plan and wants to see it happen.”


December 2019/January 2020 CHAMBERLINK 21


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