Seal of approval for city’s investment activity

MANCHESTER’S credentials as a good city for businesses to invest in was underlined today.

In the first of seven studies being complied to create Manchester Independent Economic Review – a masterplan economic strategy for the next decade – the city’s infrastructure for investment, both inward and by existing businesses was examined.
 
Led by Professor Nigel Driffield of Aston University, an expert in inward investment, the study gives a favourable rating to the work carried out by MIDAS, the city agency responsible for attracting investment from outside the region.

The report found that in contrast to the rest of the UK, investment by foreign companies into Manchester does not ‘crowd out’ or displace jobs and investment by domestic companies.

The study underlines that Greater Manchester is among the best-placed cities in the UK to match the economic might of London and the South East and that the city has the second-largest concentration of people and businesses in the country with a highly-skilled, lower cost workforce.

It says too that the main source of investment and productivity are large businesses and that strong leadership and targeted international relationships are  vital to the city’s chances of attracting global investment.

Turning to the current economic outlook, the report says that from an investment perspective, the city has the opportunity to emerge from the recession, thanks to its “highly developed” and competitive regional infrastructure.

Despite the seal of approval of his agency’s work, MIDAS chief executive Colin Sinclair said there was no room for complacency: “The competition for domestic and international inward investment is fierce.

“Cities slow to respond will suffer as global capital flows retrench and the domestic investment is put on hold.

“These are challenging times and Manchester has factored in the implications of a recession and we are working extremely hard to ensure that we are fit for purpose. We are confident of emerging stronger than our competitor cities, not only in the UK, but across Europe.”

The MIER, which is costing £1.35m, was launched last June by Chancellor Alastair Darling. It is made up of an independent panel chaired by Sir Tom McKillop, the  former chief executive of worldwide drug development giant AstraZeneca.

Reports on the remaining six key areas will be published over the next eight weeks.