Review of the Year – Part Two

IN the second part of our review of the year we take a look at some of the big stories making the news between July and the start of 2014.

July

The month began with TheBusinessDesk.com making news of its own. The company acquired a new owner in Birmingham-based technology entrepreneur and investor Mark Hales in a deal set to see the business expand across the UK. Elsewhere, Birmingham City Council joined forces with Sterling Property Ventures (SPV) in an attempt to bring forward a major office scheme within the city’s Enterprise Zone.

The council and SPV – run by well-known local property developer James Howarth – entered into a joint venture partnership for the delivery of up to 500,000 sq ft of office accommodation and other complementary mixed uses on the Great Charles Street site in Birmingham’s business district. The scheme, which will be known as Great Charles Square, fronts the A38 inner ring road, adjacent to Snow Hill station.

Birmingham Airport announced it had secured a deal with Air India which would see the restoration of direct flights to India following a five year absence and a lengthy campaign for the reinstatement of the service.

Football fans from across the region underwent major trauma this year but Coventry City caused the most problems for its supporters when it announced it was forsaking its home city in favour of a ground-share scheme with Northampton Town, 34 miles away.

Also this month, hauliers began a month-long scheme which involved the free use of the M6 Toll. It also emerged that £57m was being pumped into the region through the latest round of Regional Growth Fund cash. Meanwhile, Birmingham was bracing itself for a summer of disruption when the Queensway tunnels were closed for six weeks for badly-needed refurbishment.

August

Property firm Hammerson announced it was planning a major expansion of the Bullring Shopping Centre, while in a similar investment in Birmingham’s retail facilities, the Mailbox began a major refurbishment.

Jaguar Land Rover set the trend for the rest of the year with the announcement Q1 profits had risen 25%, underpinning the strength of the region’s automotive sector. This situation was confirmed with the announcement that the region had outstripped Germany in terms of export growth.

Upheaval in the professional services sector continued with the lapse into administration of accountants RSM Tenon, while Shoosmiths and Clarke Willmott stepped in to acquire the assets of failed law firm Challinors.

Elsewhere, Herefordshire-based crispmaker Tyrrells was acquired in a £100m deal set to see the company expand on a global scale. Tyrrells stockist Waitrose also announced that it had found a site for a new store in Solihull.

September

While some law firms floundered, city-based Shakespeares continued its growth with the acquisition of two further firms. Meanwhile, Eversheds pulled off a coup by announcing it had secured the services of DLA Piper’s managing partner.

The continuing strength of the region’s economy saw an 18% year-on-year growth in exports, a performance which saw the West Midlands top the regional export table. New figures also showed the region’s manufacturing sector on a three-year high.

Further investment was pledged for Birmingham city centre with transport body Centro confirming it was to extend the Midland Metro to Centenary Square to capitalise on the opening of the new £188m City of Birmingham Library. Hammerson said it was eyeing the possibility of installing a cinema at the Bullring as it celebrated the venue’s 10th birthday.

The month also saw the city receive its fourth Michelin-starred restaurant, while Disney’s The Lion King proved a major hit at the Hippodrome theatre and Midland concert goers helped to boost the profits of the NEC Group.

Jaguar Land Rover provided further proof of its long-term growth plans with the announcement of 1,700 new jobs and a £1.5bn investment in production facilities at Solihull. There was further evidence of its commitment to the region with the announcement it was ploughing £50m into a new £100m research facility at the University of Warwick. However, an unwanted legacy of the city’s other big motoring icon, MG Rover, resurfaced with Deloitte being fined a record £14m over its role in the collapse of the Longbridge firm.

High speed rail project HS2 continued to dominate the news agenda with the publication of a new report from KPMG promising massive benefits to the region’s economy from the new railway. Still in the rail sector, Chiltern provided some light relief by announcing it was giving the toilets on its trains an unusual makeover.

One of the region’s unsung sectors, its gaming businesses, received the shock news that innovator Blitz Games was being forced to close.   

October

The automotive sector continued to demonstrate its strength with Jaguar Land Rover confirming it was in talks to set up a new production facility in Brazil. However, things were less rosy for Aston Martin, which announced that in its centenary year losses had continued to widen.

The owner of M6 Toll operator Midland Expressway Ltd said it was looking to restructure its liabilities regarding the motorway amid fresh concerns the road was still failing to attract the traffic volumes envisaged on opening.

Better news for the region’s construction sector came with an announcement that Argent and Carillion had been chosen to help deliver Manchester Airport’s £800m expansion. Also, Network Rail announced it was to set up a new distribution centre in the region.

Transport plans for Birmingham were boosted with the announcement of plans for a new rapid transit system.

Meanwhile, Black Country-based retailer Poundland announced its continuing success had prompted the need for fresh expansion.

The importance of music tourism was underlined with the news concert goers had generated £119m for the region’s economy.

Professional services body Birmingham Forward underwent a major shake-up with saw it drop the name in favour of a new approach.

November

Birmingham’s property sector was left reeling with the announcement that well-known figure Philippa Pickavance was being laid off. The sector also saw the announcement of plans by RBS for a new 263,000 sq ft office tower in the city. There were also plans announced for a major office scheme above Snow Hill station. The month also saw the Chinese enter Birmingham’s office investment market.

Birmingham-based software firm Delcam announced it was recommending its takeover by a US rival in a deal worth £172m which would secure the continued growth of the business. However, the news was not so good for power provider npower after its German parent announced it was axing thousands of employees from its various European operations.

Birmingham City’s woes continued but hopes for a sale of the football club were lifted when its owner Birmingham International Holdings agreed a new deal with chairman Carson Yeung.

Business leaders welcomed the announcement by the BBC that it was investing £23m into improving services at its Mailbox centre.

December

Business leaders also gave a cautious welcome to the Chancellor’s Autumn Statement but were less impressed with the recommendations by the Airports Commission for the medium term future of Birmingham Airport. The airport nevertheless retained confidence in its own future with the announcement of a resumption of direct flights to New York’s JFK Airport.

This month also saw the 10th anniversary of the opening of the M6 Toll motorway, however, there was little cause for celebration by its owners as figures showed it failed to live up to expectations so far as traffic volumes were concerned.

Jobs and regeneration were promised as a result of City Deals being confirmed for Coventry and Warwickshire and the Black Country, while foreign investment continued to pour into the region’s automotive industry. JLR confirmed plans for its new operation in Brazil.

Demand from that country – and others – for another great British manufacturing name, JCB, saw the Staffordshire firm announce plans for a £150m expansion with hundreds of new jobs.

The month also saw two significant developments in the city centre’s commercial property sector with the announcement of the sale of One Snowhill to a German real estate group in one of the biggest deals of its kind. Argent also unveiled the design for the new Paradise Circus hotel.

The retail sector also ended the year on a high with confirmation of a flagship Marks & Spencer store for the regeneration of Longbridge, while Birmingham – partly due to the ongoing success of its Christmas market – was named as the fastest growing festive destination. More than a million shoppers also passed through the doors of the Bullring as they completed their Christmas shopping.