State of the Region: Enterprise Zones seen as force for growth
ENTERPRISE Zones are helping to generate economic growth across the West Midlands, business leaders have said.
In TheBusinessDesk.com’s State of the Region survey 2012 70% of respondents said the zones were having a positive impact on the region’s economy – the highest percentage in the three areas covered by the website.
However, the vast majority of respondents said they remained to be convinced of the benefits of Local Enterprise Partnerships.
TheBusinessDesk.com’s State of the Region survey 2012, which has been completed by hundreds of business leaders, is supported by lead sponsor DLA Piper and also by PwC and the CBI.
The results give a comprehensive view of the business landscape across Yorkshire, the North West and West Midlands.
The survey showed just 25% of respondents felt LEPs were having a positive effect on the West Midlands economy, with 33% believing the opposite. More than 40% (42%) said they remained to be convinced of the benefits of the LEP system.
A decision by Jaguar Land Rover to invest £355m in a new engine plant on the i54 site in South Staffordshire – part of the Black Country Enterprise Zone – has been held up as one the most significant gains for Enterprise Zones anywhere.
The Black Country LEP has been actively campaigning for the new factory, a fact picked up on by several respondents.
Elsewhere, spending cuts have been identified as one of the factors likely to have a detrimental effect on the region’s economy during 2012. A third of respondents (33%) said the cuts represented a major challenge to growth, while 23% cited a lack of skilled labour as a hurdle which needed to be overcome.
Despite the economic situation, more than half of respondents (56%) believe the region remains a good place to do business, while 40% believe that while good, it is not as strong as other areas of the country.
David Brammer, Legal Director, Planning at DLA Piper in Birmingham, left, said: “The Enterprise Zones have the potential to play a crucial role in our economic recovery and this is reflected by the positive response in the survey, with 70% believing they will be good for the overall growth of the region. Their introduction will provide significant opportunities for emerging businesses and sectors in the West Midlands, which in time will help to boost the local economy.
“Working alongside the Enterprise Zones, Local Enterprise Partnerships (LEPs) provide a useful vehicle to support the region’s ambitions but are still very much in their infancy. As can perhaps be expected, there is a very high level of uncertainty over whether or not they have, or will have, the necessary powers and resources to have a positive impact on the region’s business community. Focusing on key areas of opportunity, more consolidated plans will be implemented over the next 12 months to drive the vision forward and build confidence in the work being done.
“A strategic approach needs to be cultivated to assist businesses in their growth aspirations. But if significant levels of prosperity are to return to the West Midlands, then organisations must also continue to broaden their horizons, exploring opportunities that lie beyond the region and consider ways to target new markets. This will also mean that private and public sectors must work alongside the LEPs to create growth. “
Mark Smith, regional chairman at PwC in the Midlands, left, said: “Private businesses are happy to be located in the region and most feel that it is a dynamic and supportive business environment – this is a positive endorsement for the region as a whole.
“The new Enterprise Zones are expected to have a positive impact on the regional economy in 2012 potentially creating opportunities for local businesses. Here in the West Midlands, Jaguar Land Rover has already announced plans to take on extra staff as part of its planned investment at i54 in the Black Country.”
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