Powerhouse approach raises new horizons

As a branding exercise the Powerhouse approach has put the North on the map – raising its profile in key global markets such as China.

However, there is still work to do to selling the concept in other parts of the world, says Dan Storer, director of business development at Greater Manchester’s inward investment agency, MIDAS.

Daniel Storer

Mr Storer, who led the creation of the Manchester India Partnership (MIP), says: “The Northern Powerhouse resonates in some markets more than others.

“It is a powerful concept in China. The scale of the population has resonated with the Chinese government in terms of how they regard it.

“In other markets there is still work to do. There is still a question whether it is the best way to engage with other markets from an investment perspective.”

Mr Storer says that in India the biggest issue is that the knowledge of UK business outside London is limited. “UK and London are often interchangeable as the same space,” he explains. “We have been trying to address that.”

MIP brings together businesses, universities, and the public sector to develop a strategic approach to engaging with one of the UK’s most important international partners.

A MIP report last year looked at the opportunity for the Northern Powerhouse in India. It said that enhanced connectivity between the region and India could unlock up to 2,000 jobs and £400m in GDP for the North over the next five years.
It says there are “numerous similarities” between India and Greater Manchester’s ambitions, making them ideal collaborators in areas such as technology, advanced manufacturing and energy.

MIP also hosted the inaugural Manchester India Business Summit, showcasing the city as a key business destination to more than 50 influential Indian companies and prominent government figures

And Mr Storer says MIP has been working with the UK government in Mumbai and Delhi, with more initiatives planned later this year.

Rob Elvin

Rob Elvin, managing partner at Squire Patton Boggs in Manchester, also believes the Northern Powerhouse is making an impact. He says: “You have got to bear in mind that brands are really important internationally.

“China understands regional strategies. They can see the idea of big cities joining up and being connected. They see the bigger projects around those cities.

“When it comes to Indian investment, it is slightly different. There is a tech and entrepreneurial focus.”

When it comes to inward investment he believes the North’s cities area seen as increasingly attractive as London overheats and investors look further afield.

Figures released by MIDAS would seem to support that. The reveal that the agency supported the creation of 4,380 jobs across the city region in the last financial year, the highest number of jobs created in MIDAS’ 22-year history, generating £311m GVA.

The city region attracted investment from world-leading global brands across all its key sectors – creative digital and technology, financial and professional services, advanced manufacturing and life sciences.

The creative, digital and technology (CDT) sector performed the strongest in relation to job numbers, accounting for almost 50 per cent of the annual figure.

Driven by the opening of the Graphene Engineering Innovation Centre, attracting the interest of international materials companies, the advanced manufacturing sector saw a 20 per cent increase in the number of businesses choosing to locate in Greater Manchester.