MIDAS Partnership Q1 Report FY19/20

UK Inward Investment Overview EY released its annual foreign direct investment (FDI) report for the UK in Q1. It found that during 2018, the UK retained its number one position in Europe for FDI projects, despite a 13% decline in the overall number of projects attracted. France increased its number of projects secured by 1%, putting it in second place ahead of Germany, where projects also fell by 13%.

Manchester is still the number one location for FDI

outside of London, a status the city has retained

for four consecutive years, with Birmingham in

third having 40% less FDI projects than

Manchester. The report also found that 5% of

investors have reduced investment in the UK as a

result of Brexit, whilst 15% of investors have put at

least one project on hold, up 8% on the previous

year; which appears to explain the fall in overall FDI

projects in the UK.

The 2018 figures revealed a fall in HQ projects

entering the UK from 95 to 48, a decline of

almost 50% compared to a decline of only 20%

in Europe. R&D projects were also down by 17%

across Europe to 74 projects. The UK’s market

share of R&D projects has fallen from 26% in

2015 to 12% in 2018. Sales and marketing

projects fell slightly by 4% in the UK, which was

lower than the 11% seen across Europe. This

suggests the UK is attracting these types of

projects in preparation for Brexit.

Greater Manchester’s Key Sectors

Advanced

Manufacturing

Creative, Digital and

Technology

Financial, Professional

and Business Services

Life Science and

Healthcare

Stronger Together:

Delivery Against Objectives

SELECTED Q1 SUCCESSES

1. To increase high value and capital investment in Greater Manchester

25 jobs

City Centre

100 jobs

Peter House

200 jobs Middleton

30 jobs

Piccadilly House 60 jobs

Salford Quays

150 jobs

City Centre

CASE STUDY

that it can better serve from this location. The firm

also recognises that it can access potential new

clients by having a base in Manchester.

BAE Systems Applied Intelligence helps nations,

governments and businesses around the world

defend themselves against cyber-crime, reduce

their risk in the connected world, comply with

regulation and transform their operations.

The Manchester office will initially hold 150

employees. The division employs over 4,000

people across 18 countries globally.

Function: Tech Centre

Jobs Created: 150

Location: City Centre

CASE STUDY

Slalom, the modern consulting firm focused on

strategy, technology, and business transformation,

has chosen Manchester as the location for its second

UK office. The company will take temporary space at

Peter House whilst they look for a permanent

Function: Regional Office

Jobs Created: 100 by 2022, 250 by 2025

Location: Peter House, Manchester

BAE Systems Applied Intelligence division chose

Manchester due to the breadth and diversity of the

talent pool, the academic strengths in information

security and computer science. The company also

has several existing clients based in the city region

location, with the aim of growing to 250 staff by

2025.

The client said: “With the support from MIDAS we

were able to accelerate our timeline to invest in

Manchester, and I believe thanks to their support,

we now have a greater chance of success. MIDAS

hosted senior figures on separate visits which

resulted in commitment of investment and

increased excitement around Slalom's expansion in

the UK. MIDAS has always been open and accessible

- a credit to the investment made by the Greater

Manchester authorities.”

Quarter 1 FY19

12 442 £34.2M 118

successes jobs created GVA projects added

Quarter 1 FY20

16 717 £45.4m 109

successes jobs created GVA projects added

Growth versus Q1 FY19

+62% +33% +40% -8%

HEADLINE BUSINESS DEVELOPMENT PERFORMANCE

1. To increase high value and capital investment in Greater Manchester (cont.)

Q1 PERFORMANCE OVERVIEW

Following MIDAS’ record-breaking year in 2018/19,

there has been a strong start to the new year with 717

jobs created across 16 projects in Q1; both figures are

the highest for a first quarter since 2015/16. BAE

systems opened a new office in the city centre,

creating 150 jobs, whilst US consultancy Slalom also

announced a location in the city region that will create

100 jobs.

At Q1 end, the pipeline has 665 live enquiries

potentially creating 17,592 new jobs, of which 70 are

forecast to land successfully this financial year, taking

our end of year successes figure close to 90. The

creative, digital and technology sector is expected to

be the strongest performer again in terms of project

successes, however the financial, professional and

business services sector is currently forecast to, albeit

In Q1, more than

any other market

Beating Bristol,

Birmingham and Reading

The highest figure for

any Q1 on record

13 2 NEW INDIAN

ENQUIRIES

MOBILE DIGITAL

PROJECTS WON IN Q1

HIGH VALUE

JOBS CREATED 662

narrowly, reclaim its position as the largest source

of new job creation. This is driven mostly by

financial services with banking and FinTech the

most notable sub-sectors.

MIDAS met with 77 account managed companies

in Q1, producing 14 new enquiries worth a potential

835 new jobs; eight of which these enquiries were

from companies originating from an EU nation. A

trend since the referendum has been that whilst

new investment from the EU is down, companies

with an existing UK footprint have been more

active, looking to consolidate or grow their existing

operations.

Q1 (Apr – Jun) Q2 (Jul – Sep) Q3 (Oct – Dec) Q4 (Jan – Mar)

London Technology Week Materials roadshow/CAMX,

Seattle and Anaheim

Generis American Medical

Device Summit and

Roadshow, Boston

NASSCOM, Mumbai

Money2020 Europe,

Amsterdam BlackHat Europe, London

American Medical Device

Summit, Chicago

JECWorld, Paris

Composites

Health Innovation Week,

Toronto China Football Tour

India Graphene

Roadshow/Mayoral visit to

India

India v Pakistan Cricket

India Business Summit,

Manchester

GM Development

Conference

Information Security North

America, East Coast/NYC

Graphene and 2D Materials

Europe, Berlin

Advanced

Manufacturing

Creative, Digital and

Technology

Financial, Professional

and Business Services Life Sciences Multi-sector

Marketing KPI’s Media reach Events held/attended Web visitors LinkedIn followers

Q4 FY19 3,612,570 7 20,815 4,539

Q1 FY20 2,985,108 9 17,433 4,784

MIDAS UPCOMING KEY ACTIVITY

2. To extend the global business marketing of Greater Manchester to drive more

investor interest to the city region

MIDAS UPCOMING KEY ACTIVITY

the GM Development Conference on 10 September,

expecting 300 delegates. There will be opportunity to

discuss ambitions, key projects and the strengths of

GM as an investment location. Andy Burnham will host

a roundtable and dinner with potential inward

investors the evening before the conference to share

his vision for the city region and outline support

available.

Mayoral visit to India, October:

Led by the Manchester India Partnership, Andy

Burnham will visit Mumbai, Bangalore, Mysore and

Delhi from 7-11 October to raise the profile of the GM

India Strategy. MIP will work with the Department for

International Trade and other key partners to deliver a

week of activity that showcases the best of GM in India,

focusing on themes of: sports and culture; digital;

health and life sciences; education and R&D and

tourism/connectivity. The agenda will be developed

around three key events in Mumbai, Bangalore and

Delhi that will serve as high-profile platforms to

promote the GM-India agenda.

Seattle and Anaheim, USA. September 2019:

Representatives from the Advanced Manufacturing (AM)

and Creative, Digital and Technology (CDT) teams will be

in Seattle and Anaheim from 23-26 September. The

activity is in conjunction with DIT who will host a series of

receptions that align with the Red Arrows’ tour of North

America. The AM team will also attend the BABC

Aerospace Conference and Boeing Supplier’s

Symposium to promote aerospace and automotive

opportunities in Manchester.

The CDT team will meet with key companies including

Microsoft, AWS, Slalom and Starbucks, as well as

multipliers including CBRE and Colliers. The AM team will

also attend CAMX Composites Exhibition in Anaheim

alongside Graphene @ Manchester, and will participate

in a panel session, delivering a presentation and hosting

a networking event. The AM team will also attend CAMX

Composites Exhibition in Anaheim alongside Graphene

@ Manchester to participate in a panel session, deliver a

presentation and host a networking event.

GM Development Conference, September:

MIDAS is supporting Built Environment in the planning of

3. To strengthen research, data and market analysis capabilities to drive a forensic

sales approach and increase conversion

Data City is working with Greater Manchester

Combined Authority (GMCA) and MIDAS, applying

its technology (open data, the web and machine

learning) to tap into new sources of granular data

to provide real time insight into how the economy

of Manchester is growing and changing.

By identifying strengths in specialist research areas

such as marketing, economics, information

technology, consumer behaviour, new product

development and project management, initial

analysis has found that Greater Manchester has a

global strength in service design.

This is important because service design encompasses

all the disciplines that the digital economy is using to

build the services of the future and drive the exciting

digital transformations that are happening across

industries.

The latter phase of the work will include a strategic

target list of companies in traditional industries that are

increasing their activity with digital technology. DataCity

will identify companies with emerging digital themes

such as cyber security, artificial intelligence, data,

internet of things and FinTech.

Tim Newns Chief Executive 07481 080 065 tim.newns@midas.org.uk

Sarah Mills Exec. Assistant and Project

Manager 07481 080 065 sarah.mills@midas.org.uk

Andrew Toolan Head of BD – Strategic

Partnerships 07738 027 186 andrew.toolan@midas.org.uk

Caroline Cain Head of BD – FPBS 07738 027 261 caroline.cain@midas.org.uk

Hannah Tracey Head of BD – CDT 07725 372 233 hannah.tracey@midas.org.uk

Catherine Davidson Head of BD – Life Sciences 07384 547 983 catherine.davidson@midas.org.uk

David Hilton Head of BD – Adv.

Manufacturing 07703 470 280 david.hilton@midas.org.uk

Alexandra Moorhouse Marketing Manager 07795 006 430 alexandra.moorhouse@midas.org.uk

Daniel Baxter Analytics Manager 07592 108 252 daniel.baxter@midas.org.uk

Key Operational MIDAS Contacts

MIDAS sourced 108 new enquiries into the

pipeline in Q1, the highest since the first quarter

of last year. The number of jobs associated with

these projects is currently down slightly,

however job numbers are still unknown for

around 60% of these enquiries and will likely

increase over the coming months.

Non-EU countries accounted for 42% of all

new enquiries in Q1, which is consistent with

recent quarters. Enquiries from markets such

as Australia, Canada and India have increased

significantly since Brexit, with Turkey and Japan

emerging more recently.

The number of R&D focused enquiries

continue to increase, along with

sales/marketing and tech centres. Whilst there

is still a steady intake of HQ projects, these tend

to be from smaller foreign companies or

relocations from the rest of the United

Kingdom.

102

98

105108

3855

2447 25482106

0

1000

2000

3000

4000

5000

80

85

90

95

100

105

110

2018/19 Q2 2018/19 Q32018/19 Q4 2019/20 Q1

JOBS A

DD

ED

EN

QU

IRIE

S A

DD

ED

Recent Pipeline Intake

Enquiries Added Jobs Added

13

8

6

5

3

3

3

0 2 4 6 8 10 12 14

India

United States

Hong Kong

Turkey

Netherlands

France

Canada

Q1 FDI Enquiries by Source Market

4. To grow the international impact of Greater Manchester’s inward investment

team to increase the region’s investor pipeline