APPENDIX 20
Memorandum submitted by East Midlands
Development Agency
1. What is your annual expenditure and staffing
resource on inward investment promotion to your region?
emda works with Advantage West Midlands
(AWM) in North America and Asia Pacific under the British Midlands
brand. In North America we jointly set up a limited liability
company in 2005 to employ staff (currently six in total). In Japan
AWM employs two members of staff who work on behalf of both agencies.
In Australia we are represented by a third party agency employing
a total of one FTE. In India we are also represented by a third
party agency employing a total of two FTEs. In Europe emda
operates under the England's East Midlands brand and has part
time representation in France, Germany and Scandinavia. emda
has a total of 10 overseas offices (of which seven are shared
with AWM), and the equivalent of 7.5 FTEs. The total cost to emda
of operating these overseas offices including staff and office
costs and in market activity is forecast to be £1.46 millon
for 2006-07.
The UK based emda International Investment
team conducts a comprehensive range of activities including marketing,
investor development and product development (research); the total
forecast cost to emda of these activities for 2006-07 is
£864,000 for programme activity. There are 16 posts in the
International Investment team, and two dedicated posts in the
marketing team.
The International Investment team also work
with six sub-regional partners (SRPs) on Investor Development.
emda will contribute £170k in 2006/07 towards the
cost of this activity.
2. What activities does the agency carry out
to promote inward investment into the region (such as overseas
offices, missions, information provision etc)
Details of overseas offices are included in
section 1.
Other activities include:
— lead generation and enquiry handling;
— follow up with companies and organising
visits to the UK;
— provision of information to investors
(including property details, labour market, economic and demographic
etc);
— aftercare visits to headquarters
of regional companies;
— organising and attending promotional
activities and events such as trade shows and conferences;
— networking with partners including
UKTI overseas offices, intermediaries and trade associations;
and
— building awareness of the England's
East Midlands and British Midlands brands and regions in market.
3. Is the agency's inward investment promotion
carried out directly by the agency, or by another sponsored body?
See answers to questions 1 and 2 above.
4.1 Sectors
A recent review of emda's FDI strategy
and in-depth analysis of key strengths across the sub-regions
indicates that the East Midlands has a globally competitive offer
in Transport Technologies, one of our four RES priority sectors.
On international investment we will continue to build our reputation
as a world-class region for transport technologies and we will
proactively pursue new opportunities in the transportation space;
in line with UKTI strategy, we will target knowledge-driven, R&D-intensive
companies and projects, exploiting regional strengths in leading-edge
technologies. We will also pursue other niche sectors (eg drug
development, medical devices, food and drink technologies, renewable
energies) where we have a competitive advantage in the region
and where they form part of RES priority sectors. Opportunities
from other sectors will be handled on a reactive basis only.
4.2 Countries
We will focus on countries which have the closest
fit with our regional strengths. We monitor global FDI trends
over time and will adjust our resources and focus of activities
accordingly. Over the last five years, investment from North America
into the region has declined in relative terms, whilst investment
from Germany remains strong and India is growing.
5. How many inward investment projects has
the agency won in the last three years? How many of these have
created or saved jobs? In total, how many jobs have been created
or saved?
As demonstrated in table 1:
— emda has secured a total of
98 involved foreign investment projects/successes over the three-year
period;
— all 98 successes had new and/or safeguarded
jobs associated with them as per the UKTI COP Output Measures
definitions; and
— in total, 8,098 jobs were created/safeguarded
with the 98 successes over the three-year period.
Table 1
emda INVOLVED
FOREIGN INVESTMENT IN THE EAST MIDLANDS
|
| 2003-04
| 2004-05 | 2005-06
| 3-year total |
|
| New foreign direct investment |
| | | |
Number of new FDI successes
Number of new jobs
| 6
44 | 14
680
| 14
269 | 34
993
|
| Investor Development |
| | | |
Number of Investor Development successes
Number of new jobs
Number of safeguarded jobs
| 10
1,611
354 |
23
558
1,371 | 31
974
2,237
| 64
3,143
3,962 |
| Total foreign investment |
| | | |
Number of successes
Number of jobs |
16
2,009 | 37
2,609
| 45
3,480 | 98
8,098
|
|
Further, over this three-year period, we also recorded a
total of 74 non-involved foreign investment successes in the region
with an associated 2,518 new/ safeguarded jobs. Although we don't
have significant involvement in these investments, we see our
role as being vital in creating an economic climate that attracts
and retains investment.
6. Could the agency outline some examples of successful
inward investment projects which the region has recently won,
and how these have impacted on the region?
FIUK, a Japanese automotive parts manufacturer and
key supplier to Toyota, made an initial investment, in 2004, of
£20 million for a new UK facility in South Derbyshire, creating
300 new jobs. emda worked with the company to provide a
range of assistance including finding a suitable location, introductions
to local partners and the provision of information. Since starting
production FIUK has now committed to the next phase of its expansion,
which will create a minimum of a further 150 jobs over the next
three years.
Northrop Grumman was selected by the Ministry of Defence
to provide aircraft maintenance, supply chain management, training,
technical-publications support and design-engineering support
services for the Royal Air Force fleet of E-3D Sentry airborne
warning and control system aircraft. Following the contract award
in 2005, we worked with the company to assist them in their investment
decision, including identifying a suitable location in Lincolnshire.
145 new jobs were created with this investment.
emda and local partners worked with Canadian company
Intier Automotive to retain and grow their investment in
Nottingham which was confirmed in 2005. This facilitated the safeguarding
of 200 existing jobs and the creation of a further 120 new jobs.
Support was offered in conducting a property search, providision
of training by a local college and introducing them to the Manufacturing
Advisory Service (MAS). Information was supplied on local the
Labour Market regarding salaries and local demographics.
emda and local partners worked with OSI/GW Padley,
the US owned poultry production company, to assist in their expansion
in Lincoln, creating 150 new jobs and safeguarding 1,100 existing
jobs in 2005. The support provided to the company included information
provision to support grant application, planning assistance, etc.
This investment will see advances in technology that will increase
output and productivity.
7. What are the agency's future plans for inward investment
promotion, within the context of UKTI's new five-year strategy?
As stated in section 4.1 we have recently reviewed our FDI
Strategy and consulted with UKTI to ensure alignment with their
new five-year strategy. Going forward we will continue to build
our reputation as a world-class region for transport technologies
and we will proactively pursue new opportunities in the transportation
space; in line with UKTI strategy, we will target knowledge-driven,
R&D-intensive companies and projects, exploiting regional
strengths in leading-edge technologies.
8. What trade missions to promote exports from the region
has the agency organised or taken part in over the last three
years?
UK Trade and Investment (UKTI) is the international trade
arm of emda and as such we work together under the dual
key agreement to deliver focused trade services to the region's
priority sectors. emda has both supported planned UKTI
missions, in order to give added benefit to the region's businesses,
and has also funded additional missions during the past three
years.
9. How do you determine which missions to promote? Do you
ever co-operate with other RDAs in promoting joint missions? Do
you encourage/allow firms from outside your region to participate
in your missions?
The UKTI team in the East Midlands works with regional partners
including EMDA, Chambers of Commerce, the East Midlands International
Trade Forum, and sector organisations to develop a regional programme
of overseas trade missions which are designed to match the region's
strengths with opportunities overseas and take advantage of any
existing links that the region has overseas. UKTI organise a Market
Visit Scheme on a regional basis which enables the UKTI team in
the East Midlands to specifically focus on regional opportunities.
Each market visit/trade mission planned in the East Midlands is
open for companies from any region to join; however any funding
for that company would come from their own region.
emda provides additional support for sector missions
and other trade activities including the Meet the Buyer programme
which brings buyers from across the globe to meet with companies
in the East Midlands. Many of these events are jointly funded
with other regions, both by UK Trade and Investment and their
RDAs.
21 February 2007
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