Special report: Building the powerhouse brand overseas
WHATEVER lays ahead for the Powerhouse project, its growth as an increasingly recognised international brand has put the North of England firmly on the business map.
The trick now, according to business leaders, is to translate that heightened awareness into real economic growth and development.
The confidence that the North can deliver is certainly there when it comes to attracting inward investment from both overseas or nearer to home.
A recent survey by TheBusinessDesk on rebalancing the UK economy revealed that 89% of business leaders believe the North is an attractive place for both UK and international investment.
Stephen Miller, managing director at Bank of America Merrill Lynch in Chester, says getting the Northern Powerhouse message out to an international audience has had an impact already.
He says: “Particularly internationally, it’s much easier to have conversations now, for countries that have significant investment to bring here, to have a conversation on a northern basis. They understand the concept of a regional structure much better.”
Gerald Jennings says he was made aware of the leap in international recognition for the North during a visit to Leeds by the Lord Mayor of London.
The Leeds Chamber of Commerce president says: “He and his team said that when they are abroad they are now picking up this brand of the Northern Powerhouse. It has resonated across the far and Middle East.
“The Lord Mayor said not to underestimate the power of that brand. If you can actually grasp it and get behind it you have something really powerful to sell.”
Roy Barry, principal associate at Eversheds in Manchester adds: “Certainly internationally, what we have seen in markets like China, where government initiatives especially are very well received, they recognise that and want to engage with those big government initiatives.
“Even in other parts of the world, it has elevated the focus on this part of the UK to an extent ministers have undertaken profile raising activities, bringing business together in North America for example. That has not happened before, we have never had ministerial back up and it is very useful in places like China.”
The footballing powerhouses of the North are also playing their part in the profile raising work – through their success on the pitch and the massive appetite for the English game overseas.
Barry says: “The Northern Powerhouse means different things in different markets. In China the fact it is a big government initiative is enough.
“You then introduce city brands like Liverpool and Manchester. They recognise city brands. Manchester is well recognised in all of China. Manchester United is the second most recognised foreign brand behind Coca Cola.
“The industrial revolution is taught in China; therefore Manchester has some recognition as the base of that, and with more modern cultural brands like Manchester United, then there is definitely recognition out there.”
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Miller has just returned from five years spent in Asia with Standard Chartered Bank, whose name can be seen on Liverpool football shirts.
He says: “If you are a sponsor of a football club, in Southeast Asia all of the supporters, and there are hundreds of millions of them, will effectively migrate to your services overnight. It is just incredible, the way it follows.
“It’s a fantastic opportunity for the North to build on what it really does extremely well. If you are in Singapore, people when they think of the UK, think about Liverpool and Manchester, they think about Liverpool FC, Manchester United and Manchester City.
“That’s something we could absolutely build on massively, that cultural contribution that is out there already.
“From a media perspective, from a music perspective, these are all things the world knows about, they might not think it comes from the North and that needs to be reflected.”
Tim Newns, chief executive of Manchester’s inward investment agency MIDAS, believes that having highlighted the major investment opportunities that exist, the UK needs to make sure potential overseas investors have access to them.
He adds: “It’s absolutely critical that in moving forward these infrastructure plans we are also open to international investment as well, having raised the opportunities and expectations that we follow that through.”
Gerald Jennings says inward investment is important when it comes to further building the Northern Powerhouse name overseas and he points to the impact of German headquartered engineering group Siemens’ plans to create a £310m wind power manufacturing hub in Hull.
“If you are trying to sell a city or a region abroad they sit up and take notice when you can say Siemens has come to Hull or this international company has invested in this part of the region,” he says.
“It resonates across Europe and the world. And that is important because it speaks to our brand and to our attractiveness.”
The Northern Powerhouse’s arrival on the world stage has also been helped by the region’s international connectivity through Manchester Airport.
Tim Newns describes the new routes secured from the airport to China, the Far East and major cities across North America as “pretty incredible.”
He says: “That connectivity has changed dramatically over the last two to three years and if that momentum can be continued it will have significant economic benefits.”
Charlie Cornish, chief executive of Manchester Airports Group (MAG), explains the growth in international flights comes down to a big push internationally by the airport, the effect of the Northern Powerhouse and the Manchester region pushing itself to the forefront more.
He says: “To get that one China route was three and a half years of work and probably about 40 visits to China.”
Mark Robson, regional director of the Department of International Trade, has seen the Northern Powerhouse brand grow overseas. And he believes it especially resonates in countries which aren’t centrally controlled, such as the US and Germany.
He says: “I was talking to some colleagues in Germany who said they totally understand it. They have devolution at local level. In the US they have got states that are more powerful than the president.
“Where you have those kinds of states it is quite normal to have a powerful focus on a particular area.
“Also in lots of countries the North is seen as the industrial heartland, look at Italy, Germany, even India.
“People do understand it, it is starting to build. We have only really started building it and getting it out there. We really have to tie together some of the support behind it.”
Download the full Rebalancing the UK Economy report for free here
