Manufacturers set to cash in on Enterprise Zone opportunities

MANUFACTURERS in the Midlands are gearing up to capitalise on the region’s new Enterprise Zones in order to maximise any growth opportunities which might arise.

The decision by Jaguar Land Rover to build its new engine plant on the i54 site in South Staffordshire – designated as part of the Black Country’s EZ – will prove a classic example of this, said sector analysts at PwC.

They said while relocating whole businesses was unlikely, many SMEs were already considering what steps they may need to take in order to expand their operations by locating part of their manufacturing operations or R&D facilities within an EZ.

David Martin, manufacturing sector expert at PwC in the Midlands, said: “Manufacturers in the region are optimistic the Enterprise Zones will act as springboards for growth and the incentives on offer in terms of simplified planning rules, tax breaks and super-fast broadband are certainly attractive.

“Local businesses also recognise that Enterprise Zones provide a compelling, commercial environment that could help them to draw down additional funding and attract inward investment.”

He said with JLR anchoring the i54 site, the stage was set for the business park to be transformed into an advanced engineering hub.

“It is great to see that national and international manufacturers want to be part of these Enterprise Zones. They recognise that locating in these areas will enable them to leverage the knowledge and expertise of regional specialists which will then drive growth and provide an economic boost for the region,” added Mr Martin.

Businesses within the zones will be exempted from paying business rates for five years, saving them up to £275,000 each.

Mr Martin said this gave Local Enterprise Partnerships the opportunity to invest this money back into the region in the form of infrastructure and innovation improvements, as well as providing additional support to help companies drive sales by increasing export activity.
 
“The Enterprise Zones offer an incredible head start for growing businesses in the Midlands and can spark business growth across the region and the UK.  Their success could enable manufacturers in the Midlands to lead the country’s economic regeneration and recovery,” he added.

Meanwhile, the Birmingham Chamber of Commerce Group has added its voice to the chorus of approval for JLR’s decision.

Jerry Blackett, chief executive of Birmingham Chamber of Commerce Group, said: “It is a huge boost for the region’s economy. As well as 750 jobs being created, the factory on the border of Wolverhampton and South Staffordshire will attract business for many suppliers from the West Midlands and beyond.

“It is exactly this sort of business growth from the private sector which will help boost the economy.”