Summit spotlight – Making the Midlands work for business

In a series of five Summit Spotlights, we’re distilling the expert perspectives of our panellists shared on the day to help continue the conversation and inspire even more collaboration.

On the panel

• Irene Graham OBE CEO, ScaleUp Institute
• Mike Owens CEO, Schumacher Packaging
• Carmen Watson Chair, Pertemps Network
• Maxine Laceby, Co-Founder, Absolute Collagen
• Stephen Phipson, CEO, Make UK
• Charlotte Kenan Head of Corporate Engagement, Goldman Sachs 

On the agenda

The Midlands is home to over 800,00 businesses with more than 48,000 enterprise births a year. In the last five years, Midlands businesses have also received more King’s Awards for Enterprise than any other, outside London and the Southeast.

The region clearly has a strong offer as a place to do business, but there has also been a decline in the number of scale-ups and debate over how well the Midlands supports business to grow. So, what can the region’s businesses and leaders do now to build a supportive, empowering business ecosystem that ensures Midlands enterprises can thrive and compete?

Identifying challenges

Realigning regional skills and ways of working

The single biggest challenge and barrier to growth in the Midlands is skills, whereas in other regions it’s access to finance. Since 2007/8, the Midlands has seen more enterprise births than any region outside London, but over the same period there has been a decline in scale-ups and suggested that the lack of skills could be to blame.

Understanding the region’s evolving skills requirements, including in digital and green skills, is also critical to prepare for the future job market. 

That should not be at the expense of vocational skills needed now. It’s the lack of these fundamental skills which are a key concern for the manufacturing sector – a sector which has £7bn of lost output from unfilled vacancies with 65k hard-to-fill vacancies UK-wide, the majority of which have been vacant for more than 12 months.

Knowing how a younger talent pool want to work is also a challenge for businesses. A shared view amongst the panellists was the challenge to get employees regularly in the office to collaborate.

Addressing gaps in supply of suitable land and premises

Difficulty in attracting more overseas investment into the UK is closely linked to problems around firms finding land and premises that meets their needs. SMEs looking for suitable office space for expansion need somewhere that is centrally located and well connected enough to tempt employees to come into the office.

Trying to find the right organisations and people to speak to who know where the best development opportunities are located is a challenge for Midlands firms. That is why networks, such as B2B networks, can help play a vital role and share information with one another.

Carmen Watson, Chair, Pertemps Network

Exploring opportunities

Recognising the importance of SMEs to the economy

Creating a more attractive business environment must start with an acknowledgment that SMEs are fundamental to the Midlands economy, its resilience and prospects.

The first ever Assembly of the Midlands King’s Awards Network, to be held in September, will offer a fantastic opportunity to do this. Gathering both those who have won an award and those businesses aspiring to, the event will convene over 200 of the Midland’s most innovative SMEs with a view to creating a regional network. This network will foster collaboration, which could in turn lead to greater innovation the region and wider country need to fuel economic growth.

Tackling the skills gap at all levels

It was suggested by the panellists that what’s needed amounts to a skills revolution – to address the skills gap and reforming the Apprenticeship Levy to help businesses recruit more apprentices.

Backing up the advantage of the region’s strategic location

The Midlands’ location was a key part of the decision to set up companies for a number of the panellists.

There is a clear opportunity to make the most of this existing advantage by supporting businesses more once they’ve located in the region to help them to thrive and expand.

Charlotte Kenan Head of Corporate Engagement, Goldman Sachs 

Strengthening business engagement

Business engagement at all levels – business to business, with academia, the public sector, the current and future workforce and internationally – is critical to encouraging and enabling businesses to scale-up. This includes increasing the adoption and spread of emerging technologies and maximising firms’ attractiveness to investors.

Several panellists spoke about the type of practical solution that’s needed to facilitate this kind of business engagement and give people a point of contact to turn to when they’re looking to grow.

A business engagement hub made up of people who proactively identify and engage with SMEs and signpost them to opportunities is what is needed.

This type of central support hub would make the Midlands business landscape easier to navigate.

Making the most of existing innovation

The Midlands has a huge amount of innovation and talent, as showcased by the Assembly of the Midlands King’s Awards Network. The key to enhancing the region’s business ecosystem is retaining and developing that talent so the potential is not lost.

Much of the innovation that puts the UK in the top 10 nations in the world for advanced manufacturing and innovation is Midlands innovation.

The Midlands Economic Summit is the Midlands’ largest pan-regional business forum. Convening over 500 business, academic and public-sector leaders, the Summit provides a unique space to celebrate the region’s strengths and discuss its strategic priorities.

This year’s summit, held on 10 June at the Vox Conference Centre Birmingham, explored the theme of ‘Driving Investment, Powering Growth’ through a diverse programme of expert speakers and panels.