BQ North East Yearbook 2015 by We Are UMi

YEARBOOK 2015

NORTH EAST

The life and soul of business.

2015

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WELCOME Questions and Answers The chimes of midnight have sounded out an enigmatic year for North East business. Its great recovery resulting from sheer hard endeavour during 2014 would normally be expected to continue throughout 2015, with so many things going for it. However, so many imponderables loom too. A coming general election for one. Regardless of which party comes to power, or which coalition might be formed, history shows us that change to business – at best inconvenient, at worst damaging - almost invariably follows, whereas what businesses need to continue bouncing back is stability, not tinkering. The way England is to be run in future, after further devolutionary promises to Scotland, is an especially major factor too in a region bordering Scotland. Scottish variations in taxation might adversely affect business conditions in the North East, in any absence of counter- measures south of the Border. Indeed, how are English regions to be run? Will the handover of certain powers from Whitehall, in favour of decision making closer to those directly affected, go ahead, be effective and be enough? Factors outside the country are also critical. Can anyone believe business would prosper more with Britain out of the EU? If so, the case should be stated with hard facts and figures now. How long will sanctions go on against Russia, a country North East industry increasingly finds fruitful to trade with. Commodity markets challenge too.

Falling oil prices are good news for the logistics industry but not for offshore oil & gas investment, a mainstay of the North East economy. Prices of some imported materials at least look likely to rise, hitting manufacturers’ costs. And falling gold prices will be welcomed by some but not everyone. Other icebergs, no doubt, will have to be dodged in cold waters of reality, but invariably business copes whatever, and the North East has much potential moving forward, as the following pages explain. It has the strength to remain a region that pays its way. It has remarkable structures for commercially profitable research fitting into place. It is, as ever, responsive, resilient, and adaptable. It is focussing on innovation. There is a revival in railway manufacturing here, and lots of further investment in place. It is remodelling old activities such as coal mining. In its fight against unacceptably high unemployment, it has recognised the urgent need to upskill and reskill and has more graduates choosing to stay on in the region. Business and places of learning, be they university or school, are working closer. Certain of its new strong offerings, such as digital and IT, are attracting international participation. In short, the North East has a lot of things going for it and will be going for a lot of things. Brian Nicholls, Editor

2015 ADVERTISING Heather Spacey [e] heather@room501.co.uk Rachael Laschke [e] rachael@room501.co.uk Audrey Atkinson [e] audrey@room501.co.uk or call 0191 426 6300 EDITORIAL Brian Nicholls [e] b.g.nicholls@btinternet.com DESIGN & PRODUCTION room501 [e] studio@room501.co.uk PHOTOGRAPHY KG Photography [e] info@kgphotography.co.uk Chris Auld [e] chris@chrisauldphotography.com

room501 Publishing Ltd, Spectrum 6, Spectrum Business Park, Seaham, SR7 7TT www.bqlive.co.uk Business Quarter (BQ) is a leading business to business brand recognised for celebrating entrepreneurship and corporate success. The multi-platform brand currently reaches entrepreneurs and senior business executives across Scotland, The North East, Yorkshire and the West Midlands. BQ has established a UK wide regional approach to business engagement reaching a highly targeted audience of entrepreneurs and senior executives in high growth businesses both in-print, online and through branded events. All contents copyright © 2014 room501 Ltd. All rights reserved. While every effort is made to ensure accuracy, no responsibility can be accepted for inaccuracies, howsoever caused. No liability can be accepted for illustrations, photographs, artwork or advertising materials while in transmission or with the publisher or their agents. All company profiles are paid for advertising. All information is correct at time of going to print, December 2014. room501 publishing Ltd is part of BE Group, the UK’s market leading business improvement specialist. www.be-group.co.uk

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REGIONAL ECONOMY

In association with:

The mechanisms that will fuel business growth in the region in the year ahead

The opportunities, projects and trends creating optimism for the year ahead

SERVICE SECTOR In association with:

NEW ECONOMY How easing the route from lab to market and feeding bright ideas will be crucial in 2015

MONEY MARKETS

MANUFACTURING & OFFSHORE

How a crucial North East sector is diversifying and extending its reach into new territories

BUSINESS SUPPORT In association with:

In association with:

Aiding entrepreneurs and their successes Why 2014 is a tough act to follow given current conditions and uncertainties

BUILT ENVIRONMENT In association with:

Town centres and the wider market in focus

26 04

TRAINING & RECRUITMENT In association with:

Keeping the brightest minds in the North East and battling for the best talent

TENTS bqlive.co.uk

134

WHO’S WHO Your essential guide to the people shaping business, industry and the public sector

100

140

RETAIL

Momentum gathers pace despite skills shortage

150

Vibrant visitor economies, growing city centre appeal and other trends of 2015

114

CORPORATE SECURITY With threat levels heightened, why the North East must be more vigilant than ever

120

DIGITAL In association with:

CONFERENCING & HOSPITALITY Rugby winners, a county cashing in and the rise and rise of Northumberland

108

GIVING BACK

Why philanthropy is alive and well in the region and bringing new hope to the North East

COMMUNICATION & TRANSPORT How the North East is meeting the challenge of increased competition across road, rail, air and sea

158

EXPORTING The emerging and established markets bearing fruit for the region’s global businesses

SMALL BUSINESS In association with:

Pay rules and finance as election fever rises

126

UNIVERSITIES & COLLEGES In association with:

How academics are speeding up business success

109 05

regional economy In association with

After making strong progress in 2014, the North Eastâ&#x20AC;&#x2122;s economic stakeholders are now raising their expectations for the year ahead. Global opportunities, major industrial projects and a potential rebalancing of power all give businesses reasons for optimism in 2015.

bqlive.co.uk opinion

regional economy

NOW FOR GLOBAL RECOGNITION Amid healthy funding streams and an improving outlook for skills, innovation and jobs, the North East will continue to forge closer ties with the rest of the world in 2015, says Paul Woolston The North East Local Enterprise Partnership’s active, enabling role has strengthened the region’s ability to win major new funds. We’ve seen real momentum created during 2014, with the North East bringing forward projects and winning major UK and European funding to drive growth in key business sectors, skills development and rural productivity. Our focus in 2015 will be on promoting the region as a globally recognised, open innovation hub driving up productivity, with higher skills and improved educational attainment among our young people, backed by world-class support for our SMEs. The enterprise partnership’s goal is to create a region that is not only a successful exporter, but also one which is attracting inward investment from both overseas businesses and companies elsewhere in the UK. The North East LEP’s successful bid to the Local Growth Deal secured £290m of Government money towards achieving aims set out in our Strategic Economic Plan (SEP), which highlights the need for more and better jobs in the region. The money – the third highest amount awarded nationally – will also help to leverage an additional £90m in private and public sector funding. We are already supporting capital projects that create jobs and growth through the North East Investment

Fund, which includes the £25m of Growing Places Fund (GPF) and £30m of Regional Growth Fund (RGF). As a region, the North East has an enviable record for overseas sales, led by the success of Nissan in Sunderland, and we continually punch above our weight compared to other parts of the UK in selling our goods and services abroad. We are backing this exportdriven growth by building the support available to businesses of all sizes interested in exporting or increasing their overseas sales. The North East Enterprise Zone at the A19 in Sunderland, on the River Tyne and the Port of Blyth offers a package of benefits to advanced manufacturing firms attracted by opportunities in offshore, automotive and other growth sectors. We are fully committed to driving forward growth of the economy in the North East, joining

up activity across our area, lobbying Government on behalf of our partners and grasping opportunities to bring much needed resources into the North East economy to help it thrive. The year 2014 has been one of positive developments in the North East. We saw the region’s labour productivity grow at the fastest rate in the UK, accompanied by falling unemployment. This is a key indicator of our increasing competitiveness and shows we are closing the gap with other parts of the UK. The challenge is to build on this hard-won success during 2015, and to develop our strong relationships with partners within the region and further afield. The enterprise partnership is keen to work with the right partners on initiatives that will pay dividends for the North East economy, whether they are physical neighbours such as Scotland, or trading partners further afield in Europe, the US or China. The year ahead looks extremely busy. It will bring new opportunities to build on our connections with partners and businesses to benefit the North East and boost long-term economic growth. As before we will be pursuing these energetically and with total commitment. n Paul Woolston is chairman of the North East Local Enterprise Partnership.

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regional economy

opinion

NORTHERN POWERHOUSE – THAT’S US While there’s still work to be done, the pointers suggest that the North East is on the way to where it wants to be, says James Ramsbotham

I like the term ‘Northern Powerhouse’. It has been bandied about a lot recently, from the local authorities that brought forward the ambitious One North plan, to the Chancellor in his Autumn Statement address. For me it conjures images of workers streaming to and from factories, ships weighed down with freight leaving the region’s ports and a rise in prosperity that is felt in everyone’s pockets. But is the reality in our region really so far from that ideal? In the last year our own Quarterly Economic Surveys have returned record results. In the first half of 2014, our manufacturing firms recorded more sales and orders than at any time since the survey began. Businesses generally were spending more on training, recruitment and their own facilities than at any time since before the recession started, and it became evident that the slow but steady growth throughout 2013 had helped create fertile ground

for business optimism. Our export performance remains the envy of the rest of the country. We are fantastic at making things and then selling them… mainly overseas. We are the only region with a positive balance of trade and this shows no signs of stopping. We also have an enviable quality of life in the North East. Vibrant towns and cities, the most beautiful rolling countryside in England and we boast businesses that are setting the pace across a wide range of sectors. We are setting the pace in our schools, with GCSE and A-Level results rising at a rate of knots, and there have been times throughout 2013 that we have had more people in employment in our region than ever before. All this shows we are definitely getting there, and the positive infrastructure announcements of the past 18 months will help enormously. A motorway link to the capital, elimination of traffic pinch-points on the Western Bypass and Silverlink, the upgrading of the A1 north of Newcastle are all great news for business. But let’s not get carried away - we have a long way to go. Our employment levels may be improving, but there is work still to do to bring down the jobless figure. We also need more businesses to export their goods, engage with schools and play their part in helping the North East Chamber of Commerce to shape regional policy, removing barriers to growth and

campaigning for the sort of change that will further stimulate our economy. These will all be key themes as we enter a very special year at NECC. On 5 January, 2015, the North East Chamber of Commerce will mark the 200th anniversary of a group of traders and businessmen who realised that collectively they were stronger than as individuals.Throughout the year, NECC will be celebrating two centuries of North East business with colleagues, members and the region as a whole by delivering an exciting programme of events and activities showcasing regional innovation, highlighting North East success, encouraging businesses to get involved and celebrating all that is great about business in our region. Among events planned for NECC’s 200th anniversary is an NECC film, gala dinner, archive exhibitions, world record attempt, link-ups with chambers from around the world and many more initiatives all to be announced throughout 2015. I’m delighted our anniversary arrives at a time when our region is experiencing an upsurge in positivity. In 2015, we will build on that swell of optimism and make sure that by the end of the year, everyone is aware of why the North East is a great place to live, visit and do business in. n James Ramsbotham is chief executive of the North East Chamber of Commerce.

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regional economy

MONEY AND TRUST COMBINE The foundations have been laid for a year of further industrial diversification, job creation and business growth in Tees Valley in 2015, despite continual challenges, says Stephen Catchpole

We and our partners and stakeholders, can look back over 2014 with satisfaction, having established even firmer foundations for a brighter economic future for Tees Valley. Milestones during 2014 included: • Local Growth Minister Penny Mordaunt MP, visiting TVU to sign a Growth Deal triggering £90m worth of investment. The funding will, during the next four to five years, be invested into innovation, transport, infrastructure, skills and business support projects that will create a significant number of new jobs. • The Catalyst Fund, which helps companies bid for contracts that create and sustain jobs, being expanded from Tees Valley to cover the entire North East. The £10m scheme provides security for performance bond guarantees, which offer a financial guarantee to a contractor that a supplier will deliver

on time and to standard. It is backed by the Regional Growth Fund (RGF). • The RGF-supported Tees Valley Jobs and Skills Investment Scheme, which has created 777 jobs since its launch in March. It offers businesses a subsidy of up to 50% (capped at £11,000) toward the first year’s wages of an additional trainee, apprentice or graduate of any age. • Greg Clark, Minister for Cities, signing a City Deal agreement that has given the area more control over its economic destiny. This secured £12m allocated directly as a result of the City Deal itself and a further £22m worth of programmes announced during the City Deal negotiation process. It will build upon Tees Valley’s strengths in the processing, energy and materials sectors and new emerging industries. Our aim is for Tees Valley to become a high-value, low-carbon, diverse and inclusive economy with a key focus on innovation, and emerging markets and technologies. This includes creating and sustaining an inventive, “can do” culture and nurturing an environment in which businesses can flourish. Along with this we, and our partners in both the public and private sectors, must ensure that improved skills are in place to address future demands in growth sectors and in existing industries. The area’s industrial development will be underpinned by the greater freedoms

and flexibilities triggered by the allocation of the Government’s Local Growth Fund and Tees Valley being awarded City Deal status, which I have already mentioned as some of TVU’s highlights of 2014. And this emphasis on more autonomy for the area looks set to continue. Last year Tees Valley’s five local councils unveiled plans to consult on proposals to work even more closely to boost economic growth and job creation. This would see the councils continuing in their own right to deliver local services, but uniting as a formal Tees Valley Combined Authority when focusing on economic development, transport, infrastructure and skills. The new statutory body could also unlock devolved powers and resources from government. In addition, unlike most combined authorities, a Tees Valley Combined Authority would hold joint meetings with the Tees Valley Local Enterprise Partnership and its business representatives, while also sharing staff and resources. We will start the New Year as we finished 2014, by continuing to make a positive difference to Tees Valley. No doubt, 2015 will be challenging, but we are determined to ensure as many opportunities as possible come to Tees Valley. n Stephen Catchpole is managing director of Tees Valley Unlimited, the Local Enterprise Partnership for Tees Valley.

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regional economy

overview

BIG TIME INVESTMENT IS BACK ON TRACK 10

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regional economy

sin

overview

Hitachi’s start-up will be a foretaste of exciting prospects

It still seems some way off, yet the North East’s most significant inward investment of new industry since the arrival of Nissan will certainly put the region on the rails again. The return of a significant railway industry to the region (thanks to the Japanese, as in the case of Nissan) – and in the same area recognised as the birthplace of the world’s railways – will not only lift the region’s economy but also show in no uncertain fashion that the recovery of manufacturing here is no flash in the pan, but a foretaste of new and exciting further prospects. Darlington once built magnificent steam locomotives, Shildon the wagons to be pulled. Now on former farmland at nearby Newton Aycliffe, Hitachi’s 730 strong workforce will assemble new-age passenger trains from 2017. Note: assemble. But Phil Wilson, MP for Sedgefield in whose constituency the new venture is springing up – he has been a key figure in winning the investment – says: “This area was once synonymous with the rail industry. It can be again.” Hitachi has ambitions not only to provide for Britain’s railways but mainland Europe’s too. And it’s establishing a 12 strong design team in its £82m investment. That’s a tremendous boost for a region where all important research and development strengths have been scarce. Given, the region’s reputation for skilled engineering, total build could conceivably follow. Meanwhile, true to its promise, Hitachi is shopping heavily within the region for its subcontracting and supply needs. While economic recovery has been slower in the North East than in many parts of the country, the remarkable diversification in the pattern of

businesses over 30 years, shown up in details from Companies House, is raising the region to higher ground. Mike Matthews, North East Business Executive of the Year in 2013, knows the North East work scene thoroughly. Once an apprentice here and now European operations officer and managing director at Nifco UK, one of the region’s leading success stories of the past few years, sums things up thus: “We’re a region of problem solvers – innovators. From locomotives to electricity in years gone by, to Hitachi trains and electric vehicles in 2014. We’re a region of grafters – that ‘never say die’ attitude we have up here cannot be matched anywhere else. “Coal has been replaced by coders, shipbuilding by sciences. We’ve proved we’re resilient and responsive, adaptable too. “We change what we do but our attitude remains the same. “Whatever the sector, whatever the work environment, we can make it successful.” He does as he speaks because Nifco UK, which recently opened its second factory in less than three years in the North East, is now pondering a third factory. It produces about 25m plastic parts a month at Eaglescliffe on Teesside for almost all the UK’s manufacturers. >>

Hitachi is shopping heavily within the region for its subcontracting and supply needs

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regional economy And Matthews, the only non-Japanese member of Nifco’s international board, confidently believes that even with Nifco’s recent enlargement further capacity might be needed by mid-2016, with Nifco UK staff doubled by 2020, and turnover up to £100m or more. And overseeing as he does two sister operations in Germany, two in Poland and one in Spain, he can affirm authoritatively that North East workers are outstandingly productive. In County Durham, US toolmaking titan Stanley Black & Decker has similarly reaffirmed its confidence in North East skills by investing £1m-plus in a new UK national service centre. The Dutch multinational cost-cutting paint and coatings giant AkzoNobel, established in more than 80 countries, has gained enough experience of working in Northumberland already to prompt it into making Ashington the new home for its UK headquarters. Total unemployment, although falling, remains the highest in the country and, among women, it is still rising while their pay rates generally slip behind men’s. EU statistics suggest people in County Durham and Teesside, on average and in parts at least, have a lower income than areas of Romania, Bulgaria, Poland - and even crisis stricken Greece. But many North East companies have

Mike Matthews: ‘North East workers outstanding’ raised employees’ pay over the last year, and there are other plus points highlighted by other writers in this section. Also profit warnings from plcs in the

BEYOND THE OVERNIGHT WONDERS Even in today’s more transitory styles of business and commerce, firms continue to carry their years well. Gibson & Co, solicitors at Newcastle, Hexham and Bellingham, this year celebrate 300 years in business. Family owned Pickerings Lifts at Stockton, one of the oldest engineers in England, goes back 160 years and is still doing what it has always done and is now the UK’s largest independent liftmaker. And BondsHold in South West Durham, Hexham and Cumbria once made Victorian cannonballs for Britain’s imperial army. Now its three foundries make castings for, among other things, oil and gas platforms.

overview

North East and Yorkshire fell to an 11 and a half year low late in 2014, bucking a nationwide rise in warnings elsewhere. Hunter Kelly, restructuring partner at EY, says in effect that while one swallow may not make a summer, northern regions are reading the shape of recovery and forecasting better profits than elsewhere. That’s the case even though some firms in the North East, as elsewhere, are finding it tough to grow sales and margins, and to predict the direction the economy will take. But visit Stockton, where millions in public investment is going into regeneration around its famous High

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Street, and you will be amid one of the fastest growing economies in the North East. Growth there of 3%+ is particularly benefiting the business services, distribution and transport, says RBS economist Marcus Wright. Northumberland and Hartlepool too are now growing rapidly. At a company level Vertu Motors at Gateshead, formed only in 2006 with Robert Forrester as chief executive, already has 114 UK outlets and a taxi business as we write, and there may be more as you read, building on a £1.6bn turnover that has already been surpassed. In vehicle manufacturing, Nissan’s value to the North East economy, as its presence nears 29 years, is greater than ever. And its position as the region’s single most important business holds firm, as it prepares to launch its Infiniti Q30 model and begin exporting to the USA. Already one of the world’s most productive car plants, it is also on the way to becoming one of the world’s biggest. Cycles in manufacturing are inevitable. The fertiliser industry, a key sector in ICI’s Teesside heyday, took a hit during 2014 as accounts of Grow-How UK Ltd at Billingham showed. Ammonia, ammonium nitrate and nitric acid are its products. Lower selling prices and conditions in the global market were blamed. Growth in competition from the Middle East and developing countries has to be factored in. Even Nissan had to lay off hundreds of temporary workers mid-year. Wearsiders were once the world’s biggest shipbuilders, so reservations among them about the invincibility of any one industry are inevitable. Unlike that industry however, Nissan as its workforce grows to nearly 7,000 shows no sign of skimping on

regional economy FIRMS MAKE THEIR MARK Three North East businesses are among Britain’s Top 100 fastest growing firms profits-wise. Express Engineering under chief executive Nigel Davison stands eighth, showing a 111.23% profit rise over three years. It employs 218 and, founded in 1973, engineers from Gateshead, Stokesley and Brazil, for the oil and gas sectors, aerospace and industry in general. It is also in the Sunday Times Virgin Fast Track 100 chart, where a surprise entrant at 24th is Durham-based kitchen appliance manufacturer Andrew James. The profit table also features Close Engineering and excess inventory wholesaler Kans and Kandy, both based in Newcastle. Steel fabricator Close Engineering has a workforce of 116 serving the offshore and subsea sectors. Founded in 1982 by William Close, it remains under family ownership. Kans and Kandy, started in 2006 and employing 20, repackages surplus personal care brands for resale to discount stores. Almost 25% of its sales are international, and further moves are planned into Europe, the USA and Australasia. Besides these, seven companies of the region were recognised in The Queen’s 2014 Awards for Enterprise. Catalytic Technologies of Stockton, supplying the food and drinks packaging industry, was one. The awards for international trade also went to Ikon Geopressure, a Durham University spinout launched in 1997 whose software solutions and digital regional studies are used extensively by oil companies for the safe exploration and development of oil and gas fields. Cordex Instruments of Middlesbrough, shoe outfitter inov-8 of Crook, and Integrated Display Systems and Thomas Miller Claims Management on Tyneside also won awards. JDRK Cables at Hartlepool also had its export achievement recognised. And Middlesbrough-born Ann Stonehouse received an individual award for inspiring women of the region to enter business for themselves.

investment or research, or of sliding into complacency and bad labour relations as did the like of Ford and British Leyland. Professor Garel Rhys at Cardiff Business School, the UK’s automotives guru, has wisely warned that the UK’s two big producers now, Nissan and Jaguar LandRover, must learn from devastating mistakes the industry’s former mass producers made. He, however, is confident that for Nissan to relocate its Sunderland operations elsewhere would be “a nightmare”. The one dark cloud over Nissan is the uncertainty of Britain remaining an EU member. Nissan’s management has

repeatedly made it clear that withdrawal from the EU and its tariff benefits would force a rethink on its UK presence. As for the North East economy as a whole, significant factors will include how well business in a region closest to Scotland is protected against competitive trends of the Scots’ government; how much regional power, indeed, is devolved within England; how well the economy generally is managed by the next government; and how tougher economic sanctions might be applied for political purposes against Russia, a growingly important trade partner for the North East. n

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regional economy company profile

MILESTONES MET FOR ECONOMIC GROWTH – NOW THE FOCUS IS ON SUSTAINING THIS AND JOBS 2014 was a year of record highs for the North East economy. There were record high employment figures, economic output and labour productivity levels. Not only this but GVA per head and labour productivity (GVA per hour worked) grew at one of the fastest rate in the country. And this growth is being sustained. Recent figures show that unemployment has fallen by 12,000 in the last year, employment figures are at 69.4% and overall GVA has risen to £45bn – an increase of 3.1% on 2013*. This is not a coincidence but a consequence of a significant and structural transformation of the North East economy. With one of the highest rates of employment growth in the country, the North East has great potential but we need to work to make sure this growth is long term. At the North East LEP we are doing exactly that. By setting an ambitious but clear and focused economic plan we are bringing in substantial levels of investment into the area and working with partners to deliver these plans to make the North East a place where more businesses invest, grow and prosper. OUR ECONOMIC PLAN FOR LONG TERM GROWTH In March 2014 we published our plan for growth. Our Strategic Economic Plan sets out how we can transform the North East economy creating long term growth and delivering more and better

jobs for everyone. It focuses on six areas: Innovation; Skills; Business Support and Access to Finance; Transport and Connectivity; Employment and Social Inclusion; and Assets and Infrastructure. By concentrating on these cross cutting issues we will create the right environment to support and encourage growth across all sectors. Our priority now is to bring in investment and work with partners and businesses to deliver the plan. Since 2011 we have helped secure over £350m of funding. This includes £8.5m Skills Support for the Workforce, including £1.5m of local response funding which our contractors Ingeus are delivering across the North East. We were successful in our bid for £25m Growing Places Fund and £30m Regional Growth Fund, which we used to create the North East Investment Fund and bring infrastructure projects to life. To date the evergreen fund has supported nearly £40m of projects, creating 1350 jobs. Led by the private sector the fund’s investment panel is currently appraising and reviewing a further £29m worth of projects. We’ve also extended the current JEREMIE programme by £17.5m, which will ensure the fund continues as we work up plans for JEREMIE 2. The most significant investment is the £290m North East Growth Deal which forms part of Government’s Growth Deal. The substantial investment will support 22 projects across the North

East, create over 4,000 jobs and deliver an additional £90m in public and private sector funding. But the investment doesn’t stop there. We’ve already put in bids for the next round of Growth Deals and in 2015 the next European Programme begins to which the North East has been allocated around £460m – one of the largest allocations in the country that will provide a framework for growth that will bring in further investment and opportunity into the area. DELIVERING MORE AND BETTER JOBS So if 2014 was about setting the strategy and winning the funds, then 2015 is all about delivery - and this work is already underway. CREATING INFRASTRUCTURE TO SERVE AND CONNECT Essential improvement works have started on the A1 Western Bypass. The works which are being carried out by the Highways Agency will create a new parallel link road between Lobley Hill and Gateshead Quay (A184) junctions – increasing lane capacity from two to three lanes in each direction. In the Autumn Statement an extra £350m for additional works at the A1 Western Bypass, including the widening of two additional junctions and the replacement of the Allerdene Bridge was announced. And, as part of the Growth Deal a further nine projects across the North East will begin in 2015/16 ensuring that as the North

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regional economy company profile underpinned by a demand-led offer that understands growth opportunities and peer-to-peer support.

In 2015 we will launch the new North East business hub to help more businesses innovate, invest and grow

East business economy grows, so too does its transport system. CREATING COMPETITIVE ADVANTAGE THROUGH INNOVATION The North East is quickly becoming a leading part of the UK’s innovation story. In 2014 we have seen the area attract national recognition and investment through the launch of the Digital and Satellite Catapult Centres here – the North East now has presence of four out of seven Catapult Centres. The Autumn Statement built on this with the decision to fund and locate the National Formulation Centre here at CPI, building on our investment through the North East Growth Deal for a Regional Formulation Centre. In addition to this is a £20m investment in an Innovation Centre on Aging in Newcastle, and £10m investment from our North East Investment Fund to build a world-class Centre for Innovation and Growth at Durham University. Driving forward the North East innovation story is our new Innovation Board, chaired by Professor Roy Sandbach. 2015 will see these projects alongside four others that are part of

our North East Growth Deal start to firmly place the area on the innovation map. HELPING BUSINESSES GET THE ADVICE SUPPORT AND GUIDANCE TO THRIVE AND GROW In 2015 we will launch a new Growth Hub for the North East. Developed with £500,000 national funding and the support of the new private sector led Business Support Board, the North East Growth Hub is at the heart of our Business Support programme. It will create a single point of reference where business can come to support, enquire, advise, share, help and be helped by others. It will make it easy for businesses to find the right support at the right time for the right results. The highly networked digital hub will drive growth, productivity and trade, ultimately creating more and better jobs in the North East. We’re currently procuring for a company to build the Hub – building into the spec is the need to work with partners to make sure its fit for purpose for today’s businesses needs. We’re clear that it must be

IMPROVING SKILLS – CLOSING THE GAP Improving skills and closing the skills gap is critical to achieving long term sustainable growth. This is one of our top priorities which we are tackling through a number of headline projects – in particular the North East Education Challenge and the Apprenticeship Hub. The Challenge will raise educational attainment for all North East young people. Working closely with partners we are in the process of procuring specialist support to design of the challenge. We are also working to increase the number of higher level apprenticeships. Through the North East Apprenticeship Hub we will provide a focal point for local action and support, promoting the benefits of apprenticeships to everyone. The Hub will bring together partners to join together priorities, resources and activities around apprenticeships. And working with providers it will help to create the right programmes to meet local business needs, providing locally tailored and easily accessible advice and guidance as well as launching a digital support Hub in early 2015. In 2014 we have achieved some major milestones in driving forward economic growth for the North East – but in 2015 is all about delivery. We must focus on working together to deliver successful projects that will improve opportunities, encourage investment and ultimately deliver more and better jobs to the North East. n Find out more www.northeastlep.co.uk @northeastlep

* figures taken from ONS labour market statistics December 2014.

new economy Accelerating the journey from lab to market, facilitating world leading research and backing bright ideas to the hilt are crucial in shaping the North Eastâ&#x20AC;&#x2122;s new economy, as BQ reports.

bqlive.co.uk opinion

new economy

CATAPULTING TO SUCCESS The main work has been laid for an innovative future to create more and better jobs and co-operation now will be a key to its delivery, says Roy Sandbach The last 12 months have been hugely important in redefining the North East as a dynamic centre for 21st Century innovation. For too long we have traded on our reputation as an inventive and innovative region by pointing to successes of our industrial past – turbines, electricity and railways are just a few of our 19th Century achievements. But 21st Century innovation isn’t about our heritage, it’s about what we’re doing now, for and with partners across the world. In this context, 2014 has been a pivotal year in laying the groundwork for an innovative future to create more and better jobs. As the North East Local Enterprise Partnership’s innovation lead and chair of the new Innovation Board, my task has been to create a vibrant innovation strategy, and develop the infrastructure to deliver success. We need an ecosystem in which firms have the support to expand through innovation. And this needs us to provide de-risking finance, improved access to partnerships, better networks and easy routes to problem solving. We need to capture commercialisation opportunities from our powerful research base and provide deeper innovation understanding and training. All of this will show the world that we are a region that takes innovation seriously, encouraging inward investment from innovators, entrepreneurs and corporates across

the world. To achieve this, the public and private sectors and our universities need to work collaboratively. The new North East Innovation Board brings together representatives of each to help draw up the road map for our innovative future. We’re already starting. In 2014, we received more than £26m from the Government’s Local Growth Fund for five priority innovation hub projects, all subject to final business case approval. The Centre for Innovation in Formulation, led by the Centre for Process Innovation (CPI) - part of the Advanced Manufacturing catapult and to be based at NETPark, will receive £7.4m to concentrate on the novel application of science in areas ranging from medicines to pharmaceuticals. The Low Carbon Energy centre, to be based at Newcastle Science City, will receive £5.6m; another £5.6m will also go to the Newcastle Life Sciences Incubation Hub to be based

at Newcastle University; £6.8m was awarded to the NETPark Infrastructure Phase 3; and £3.5m is going to Sunderland Enterprise and Innovation Hub, to be hosted at University of Sunderland, which also includes the internationally important FabLab. In addition, through excellent collaborative work across all five regional universities and the two LEPs (North East LEP and TVU) we have been awarded important Satellite Applications and Connected Digital catapult centres. These innovation hubs are a key part of government innovation strategy and we are now the only region to have four of the seven catapults. We’re aiming for more! Beyond these activities, the North East will also receive significant additional European funding starting in 2015 to support dynamic, collaborative innovation projects that benefit business-building and communities. The Innovation Board will oversee the allocation of these investments. In the short-term, we have three priority innovation projects. First, we are working on an innovation supernetwork to join up ideas and developments across the region. Second, we are looking to create a better infrastructure to accelerate the commercialisation of innovative ideas from our universities. Finally, through innovation competitions we will provide support for wealthcreation projects and socially relevant innovation initiatives. >>

bqlive.co.uk

new economy This is a long-term job, but the groundwork is in place. The new Business Growth Hub will help further by providing a single focal point for existing businesses and new entrepreneurs with innovative ideas

opinion

I’m optimistic that we have a plan for innovative growth that can work. I’m hoping that we can all work together to deliver it. n Professor Roy Sandbach is chairman of the North East Innovation Board.

that need advice to get off the ground. All in all, we are working hard to remove the barriers that have previously limited the chance of the great ideas that talented people in the region have from making it to market.

A beginners guide to R&D tax credits

ARE YOU ELIGIBLE? R&D tax credits allow your business to claim back expenditure on research and development. The purpose of them is to incentivise businesses to invest more money on R&D, therefore creating a more innovative business culture. In the UK, your company must be liable for Corporation Tax in order to claim these tax credits. Business can be eligible to claim back up to 32.6% of their development costs, meaning some can claim hundreds of thousands of pounds. The two schemes for claiming relief include the SME scheme and the R&D Expenditure Credit (RDEC) scheme for large companies.

Your company may be eligible to claim back tens of thousands of pounds from HMRC

WHAT ARE R&D TAX CREDITS? The two key technology criteria in determining what is eligible for R&D tax credits are ‘advance’ and ‘uncertainty. Many business owners and finance departments will wonder ‘are we eligible for R&D tax credits?’ The answer is often yes. If your company is taking a risk by innovating, improving or developing a technology process, product or service, then it may be able to qualify for R&D tax credits. However, it’s rare to find a business where all of the R&D activity is transparent, neatly housed within easily identifiable job roles and functions.

£1.36 b illion

North East: 545 North West: 1,595

Northern Ireland: 345

Yorkshire & The Humber: 1,065 East Midlands: 1,020 East of England: 1,630 London: 2,715

Wales: 425 West Midlands: 1,265

TOTA

Scotland: 905

AMOUNT OF CLAIMS:

South West: 1,265

South East: 3,030

IMS

HOW MUCH WAS CLAIMED LAST YEAR? North East North West

Yorks & The Humber East Midlands West Midlands East of England

£25m £85m £45m £65m £90m £160m

London South East South West Wales Scotland Northern Ireland

£420m £315m £70m £20m £45m £20m

bqlive.co.uk overview

new economy

SOME THINGS VERY DIFFERENT PROMISED R&D centres and top talent will open doors to new products Millions of pounds funding research for products of tomorrow’s promise to speed the North East’s new economy, whose initial impetus came with Nissan’s development of world class motor manufacturing here. Driving the engine will be diverse research and development centres in the North East – including one for graphene applications and another for biologics (see the Business Support and Digital sections in this publication). People count too. Gordon Ollivere, chief executive of business support group RTC North, who has led the organisation throughout its 25 years,

will see 8MW of power taken from the farm which has more than 32,500 solar panels on an area equal to around 40 football pitches. Don Lord, UK-SE’s chief executive, says: “This gives us credibility to roll out zero cost solar farms to many other UK and North East corporates - a positive for the region, with vast environmental benefits.” UK-SE, situated at St Peter’s Basin, Walker, originated in 2008 as part of the state funded National Renewable Energy Centre (Narec). It has operated independently since 2010, delivering millions of pounds of energy savings to clients around the UK. Also in the

The depth of talent we have in the region has seen it adapt to profound changes in its industrial base enabling it to embrace new opportunities says: “The depth of talent we have in the region has seen it adapt to profound changes in its industrial base, enabling it to embrace new opportunities and become a real force in sectors such as IT and tech, oil and gas and advanced manufacturing.” Many companies already excel along new avenues: UK Sustainable Energy Ltd (UK-SE) in Newcastle has a £26m deal to provide BT with 100% of the green energy generated from its solar farm near Ipswich for 20 years. The agreement, thought to be the UK’s biggest dedicated private scheme,

“green” sector Proton Power Systems, an AIM listed company registered in the North East, is applying its expertise to automotives, and plans to sell into China and other foreign parts. It designs, develops and produces fuel cells and fuel cell electric hybrid systems. Its fuel cell range extenders can boost the distance electric buses and other vehicles can travel between charges. Low carbon vehicle firm Sevcon at Gateshead, which has been in business since 1961, also designs and manufactures for electrically

powered vehicles - from fork lift trucks to high performing sports cars. Having launched a successful Chinese joint venture, it now plans to manufacture in Malaysia, which will also lengthen the payroll on Tyneside. Trailblazers at Netpark - the North East Technology Park at Sedgefield – include PolyPhotonix and Kromek. The former makes sleep masks to treat eye disease in diabetics. These could save the NHS £1bn a year. Opticians in County Durham and Teesside are carrying out world-first trials. Kromek’s x-ray scanners enable airports to identify any liquid in a bottle within 20 seconds. Using different software, they can provide 3D views of electronic circuit boards and components in real time. Pharmaceuticals and patent medicines have featured in the North East economy since at least 1894 when Andrews Liver Salts opened in Newcastle. The region’s reputation soared from 1945 when GSK (then Glaxo) began Britain’s manufacture of penicillin from Barnard Castle. Today pharma manufacturers regularly make the North East Top 200. They’re multiplying, boosted by Newcastle being one of the country’s six recognised science cities, and a specialist in ageing and health. E-Therapeutics for example, an AIM listed Newcastle University spinout, is developing a drug to fight cancer. >>

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new economy

overview

Green and enriching: The firm spun out of Narec (left), the national renewable energy centre at Blyth, has a £26m contract to supply BT with green energy for 20 years

Sara Davies: Worldwide winner Tyneside based Aesica Pharmaceuticals, through organic growth and acquisition, has been one of the UK’s fastest growing companies. Its creator Dr Robert Hardy has made Aesica a European leader since forming it in 2004 with the management buyout of a BASF plant at Cramlington. Turnover was £25m in 2004 and now nears £200m. The initial 130 staff are now up to 1,300 at six development and manufacturing sites in the UK, Germany and Italy, and with sales representation in North America, Japan and China. Aesica was acquired in November for £230m by stock exchange listed Consort Medical, a manufacturer of inhalers, and growth in the North East should continue. Meanwhile Bristol Laboratories (turnover £78m) is doubling in size through acquiring a pharma plant previously owned by household cleaner

makers Reckitt Benckiser in Peterlee. It’s expected to create 300 jobs. SCM Pharma, which has been in business for 10 years and has a new £6m site at Newburn, is set to flourish in the USA, with its contract manufacturing at Prudhoe having been approved by the US Food and Drug Administration (FDA). Meanwhile, QuantuMDx at the International Centre for Life in Newcastle has been accepted six years into its existence as a strategic partner by FIND, promoter of innovative and affordable diagnostic products for healthcare in developing nations. Its work to revolutionise the testing of contagious diseases (the company is chaired by Sir John Burn, professor of clinical genetics at Newcastle University) has the support of the Bill and Melinda Gates Foundation. Entrepreneurs of high growth

businesses in health and care continue to emerge. In the latest Entrepreneurs’ Forum annual awards Ian Watson, of Hadrian Healthcare, and David Lynch, of Lynch Healthcare, received the entrepreneurial and emerging talent awards respectively amid a record number of nominations. A firm developing artificial intelligence to work like human brains – but more flexibly and more extensively – is being financially backed to speed progress. Rob Clennell, founder of Generic AI Applications in Newcastle, has the support from the Finance for Business North East Angel Fund (managed by Rivers Capital Partners). He says potential applications are almost limitless, from face recognition and fingerprint analysis to crowd behaviour analysis and financial analysis. The regional economy is

bqlive.co.uk overview

also diversifying in other ways. Sara Davies, who designed tools and accessories for crafting while a student, is now a TV personality selling in her £8.8m turnover business Crafter’s Companion worldwide from Coundon in County Durham. She has just been declared Creative Industries Entrepreneur of the Year. Alistair McLean has won three national titles in the British Travel Awards for adventurous and original holidays that his Activity Travel Company runs from Stannington, Northumberland. Diversity in the drinks market is also underway. Sales of Fentimans’ botanically brewed drinks, about to include new mixers, has recently enjoyed an 85% increase in export sales as it aims to sell in 50 countries and verges on entry to China and India from Hexham. And the UK is the first country in Europe to introduce electrolyte enhanced water through a £3.5m investment at Morpeth by soft drinks giant Coca-Cola. Its glacéau smartwater is sourced from the same aquifer as Schweppes Abbey Well water, following a US launch. Three other Northumbrian drinks firms – producing Lindisfarne Mead, Alnwick Rum and Alnwick Brewery’s beer brands - have merged to strengthen a growing export reputation in heritage wines, spirits and beers. Harry Hotspur Holdings, parent of the Alnwick based brands, has a majority stake in Lindisfarne Ltd, set up by the late J Michael Hackett more than 50 years ago on Holy Island. Another new spirit of the region, Durham gin, is being produced at a distillery recently opened by Jon Chadwick. At age 46 the former NHS chief took redundancy after 12 years to set up and run the business from a converted

new economy

Alistair McLean: Title gatherer

industrial building at Langley Park. The gin contains 10 botanicals. Even The Lakes Distillery, England’s newest, biggest and furthest north distillery which just opened at Bassenthwaite in the Lake District, has a strong North East infusion. Key figures include Whitley Bay multi-millionaire Nigel Mills, board chairman, Alan Rutherford of Hexham, formerly a production director running Diageo’s distilleries in Scotland, and the celebrated North East chef Terry Laybourne, who runs the brasserie at the distillery’s visitor centre. Bottling is done at Eaglescliffe on Teesside. Rachel Armstrong, professor of experimental architecture at Newcastle University, would like Newcastle to become the world’s first “smart green city” combining IT and biotechnology.

In contrast Bryan Bunn, a former apprentice whose three-year-old firm Nortech specialises in engineering design and project management, is one of the UK’s first firms to win work in the US shale gas industry. The old CSS concept of the North East - coal, steel and shipbuilding - long ago gave way to a broader spread of economic activity, based on diversification and innovation. Today’s outputs include aircraft de-icer, excavators, small seacraft and racing yachts, holographics, security glass, ships’ sunshades, energy-saving lightbulbs and vehicles to mine precious subocean metals. Long established firms have adjusted to modern market preferences - in fishing rods for example and, through J Barbour & Sons, high fashion where oilskins for fishermen and motor-cyclists were once the staple. n

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new economy

overview

GREEN ENERGY, GREEN FUEL – A NATURAL DEVELOPMENT With its historic background in chemicals, engineering and mining, the North East is able to advance green energy and fuel. Durham is the first UK city to draw power from water to serve its central area. A 20 ton Archimedean screw has been installed in the River Wear. With a hydropower generator this will supply 75% of power needed at Freeman’s Reach, home of the new buildings for HM Passport Office and National Savings and Investment. Carillion Developments

WHERE HAVE THE BIG PLAYERS GONE? None of Britain’s 100 top private companies with the largest sales is based in the North East. Lucy Armstrong, the David Goldman visiting professor of innovation and enterprise at Newcastle University Business School, says the region’s largest indigenous companies with few exceptions are medium size. She feels the economy would benefit if more owner managed businesses, such as family concerns, brought more outside expertise into key executive roles to grow their firms faster. Incentivising them rather than SMEs would benefit the national economy faster, says Armstrong, who is also chief executive of Newcastle-based The Alchemists, which helps high growth mid-corporate businesses to speed their development through focusing on shareholder and management and succession.

heads the consortium behind this. The region, with Europe’s largest manmade forest (Kielder) and abundant woodland elsewhere, is a good location for the biomass industry. A £160m wood burning plant providing 49MW of energy is being opened beside the Transporter Bridge at Middlesbrough, while an Alnwick firm, Re:heat, is taking new energy into homes, offices and factories. In bio-ethanol fuel, German expertise applied by CropEnergies AG has revived and taken activity at a previously mothballed £250m Ensus plant at Redcar to a record level. Also at Redcar, a thoroughly modernised steelworks is out to prove steel can still be viably produced here. Even coal may be coming back. Tests are underway to pioneer a ‘clean’ version in the belief that most North East coal reserves are, as yet, unmined.

LITTLE AND LARGE Innovation became a watchword at a time when ONS figures showed the North East spending least of any region in the country on R&D. But it was also at a time when government agencies were committing about £1m towards this vital financial nutrient in the North East, as against almost £1bn into the South East and London. Which has to come first – chicken or egg? Surely they come together? And shouldn’t North East firms commit more to apportioning a meaningful percentage of profits for reinvestment, just as they fix percentage increases in turnover and profit?

Work will start this year on a billion pound plan to extract gas from massive undersea coal reserves off the North East coast between North Tyneside and the Scottish border. Five Quarter, a Newcastle clean energy company spun out of Newcastle University, believes that gas extracted could suffice to serve the UK for several

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new economy

overview

TASTE OF SUCCESS Quorn is one of the great success stories in food manufacturing. Its products are made from nutritionally healthy fungal mycoprotein, naturally low in saturated fat and high in protein and fibre. It is meat free, though Quorn products have the taste, appearance and texture of meat, and indeed there are more meat-eaters than vegetarians now among its 12.2m customers. Sales under chief executive Kevin Brennan are soaring, with exports to 13 countries. Now the Stokesley company is investing £30m in a new fermenter at its Billingham factory. Up to 300 permanent new jobs will follow with the increased production following.

About 2,500 jobs are predicted in the long term and plans would include £1bn of facilities to harvest the gas

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decades. Lynemouth, Teesside and Blyth are suggested land sites where vertical holes six inches wide bored hundreds of metres down and out could access the first 2bn tonnes out of trillions. About 2,500 jobs are predicted long term and plans would include £1bn of facilities to harvest the gas. A gas processing plant in Northumberland or on Teesside would cost around £500m, and hydrogen, carbon monoxide, carbon dioxide and methane extracted would feed Teesside’s chemicals sector. Dermot Roddy, the company’s chief technical officer, says the concealed coal reserves represent an amount thousands of times greater than all oil and gas extracted so far. n

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Optimism at the factory gates is tempered with recognition that major challeges and uncertainties exist around infrastructure, cost and energy supply. But, with brightspots like subseaâ&#x20AC;&#x2122;s continual surge and renewed input from women in the sector, confidence for 2015 is justified.

bqlive.co.uk opinion

manufacturing & offshore

MAKE OR BREAK TIME HERE We now have a new industrial renaissance under way but need to get the right framework and support in place, says Liz Mayes Without doubt 2014 was manufacturing’s year – our sector’s chance to shine. It was the year of industrial renaissance and a revival of fortunes for local manufacturers, large and small. It was also the year when the penny finally dropped about the importance of a strong manufacturing base to the British economy. In 2014 manufacturing growth outpaced UK GDP, productivity bucked the trend and growth in average weekly earnings outstripped those of the economy at large. Our region played a key part, employing 125,000 people and accounting for 5% of UK manufacturing. The North East is a hot spot for advanced manufacturing, innovation and design. More importantly it is primed to capitalise on trends that play to its strengths. For example, today far more emphasis is being placed on quality - whether of craftsmanship, attention to detail, components or design. This focus on quality is a key driver behind the trend for reshoring. One in six companies have reshored production back to the UK in the last three years, matched by those that have turned to a UK supplier for parts and components. This trend looks set to continue with 6% of companies saying they plan to

reshore in the next three years. The need to be closer to customers, have greater control of quality and the continued erosion of low labour costs in competitor countries, means that it makes increasingly sound business sense. But while this is great news for manufacturers in our region whose ability to add value through innovation and design is unparalleled – the path to growth is still far from smooth. The biggest challenge ahead is the 2015 Election. The danger is that it will delay crucial decisions, obstruct ambitious goals and derail the longterm vision for sustainable economic wellbeing. And when it comes to crucial decisions, there is probably none more so than the decision to keep Britain within the EU. The fact that 85% of manufacturers want Britain to remain in the EU speaks volumes. Leaving the EU will cut many off from a key market. To think this will not impact on economic performance, jobs and growth is naive. Remaining in a reformed EU is top of industry’s agenda. But aside from that, still more needs to be done. If we are to successfully underpin a longterm industrial strategy, we need a relentless focus on gaining the right skills to support balanced growth. We need to see more funds and incentives to support

innovation, including the blossoming catapult centres, which nurture new manufacturing ideas. We need to adopt a serious approach to improving infrastructure planning and delivery and we must see a reduction in the cost of energy. These ‘asks’ are crucial for our sector, both regionally and nationally. For sure, 2014 was the start of a new industrial renaissance. But if we don’t get the right framework and support in place, 2015 could be make or break time. n

Liz Mayes is North East region director at EEF

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manufacturing & offshore

opinion

AWASH WITH OPPORTUNITIES Clever methods of cost control and emerging markets beyond the North Sea are boosting the region’s energy sector supply chain firms. With new regulations coming into play in 2015, George Rafferty looks ahead to a pivotal year The next 12 months will be another interesting period for the energy sector supply chain. The UK oil & gas industry, particularly in the North Sea, is experiencing a drive towards cost reduction, which will always be accelerated by the recent softening of the price of oil. Perversely, this situation does however offer real opportunities for supply chain companies that can support operators and contractors looking to control costs by delivering innovative and highly-effective solutions. Over the last three years, costs of offshore operations rose substantially to a level unsustainable. So operators and contractors have looked to reduce their cost base while aiming to maximise recovery of North Sea resources. This has opened the door for smaller, more agile supply chain companies, like those based in the North East, which have developed innovative, technologyled solutions that can meet the new cost parameters of the operators and lead contractors, while effectively delivering the results required. In 2014 the government signed off more than £4bn worth of new projects for the UK Continental Shelf, with 73% of the work generated by these projects placed with UK companies. This is a great endorsement of the UK industry and the skills, products and services it offers. Another interesting development during 2015 will be the establishment of the new Oil & Gas Authority, created

following Sir Ian Wood’s review of the UK oil & gas industry. It will provide a new approach to regulating the industry and allow a closer relationship between the sector and government. Key issues Sir Ian has identified include the need for an increase in exploration for new wells, improving efficiency of operations and the need to recover more resources from the fields. The authority has real potential and can, with the support of government, impact seriously on the industry by stimulating exploration and helping to push projects forward. It is NOF Energy’s objective during 2015 to further build our relationships with the key operators and contractors to encourage increased engagement with the supply chain, so they have better understanding of how our members can support their cost reduction. We’ll be introducing new ways of working, and new services that will enhance

those relationships and further develop the collaborative journey industry is on. Of course, the North Sea isn’t the sole focus of the UK industry. Developments in markets such as South America, Australia and the Middle East present considerable opportunities for respected and highly skilled British companies. Building on the success of our established international network of strategic and global partners, NOF Energy will be focused on encouraging new relationships between international companies and our UK members. UK offshore skills are world renowned, particularly from their ability to operate effectively in the tough environments of the North Sea. These skills are geographically transferable, and we will support our members’ ambitions to expand their global presence. All these activities offer positive opportunities for UK businesses, particularly those operating in the North East’s integrated and collaborative supply chain - an essential part of the UK economy. This region employs 65,000 in the UK oil & gas industry, generating considerable income for the Treasury. But this is not the total value the supply chain offers to the UK economy. It also gives the North East a reputation for skills and technology, which attracts investment and interest from around the world. n George Rafferty is chief executive of NOF Energy.

bqlive.co.uk opinion

manufacturing & offshore

DAVE STEPS UP BY DESIGN

Dave Thompson: A key professional

In the engine room of the region’s flourishing subsea sector is Dave Thompson, who represents a firm with big ambitions for 2015, says Karl Simmonds Over 45% of the global subsea industry is based in the UK, with the North East a hot bed. And Dave Thompson will be one of the key professionals likely to contribute to further success for the North Sea’s offshore industry during 2015. He’s been appointed

technical director at Subsea Innovation, the Darlington supplier of specialist engineering products to offshore oil, gas and renewables worldwide. Thompson, a married father of three from Washington, has a 27 year engineering career that began

in apprenticeship at Griffiths Textile Machines in 1987. Since then, he’s held management roles across the North East at Technip Offshore Wind in Gateshead and at Wallsend firm IHC. He says: “My background is primarily in design, mainly of capital equipment. My previous role at Technip was largely operational, so I now have the chance to get back into equipment design.” His arrival during a Subsea period of sustained growth has also coincided with the opening of new headquarters, at Faverdale on Darlington’s outskirts. This 40,000sq ft site provides extensive workshop space and testing capabilities. The original site is being kept for repair and refurbishment of existing equipment, giving 60,000sq ft in all. Thompson, 43, says it’s now possible to test bigger equipment at higher load points in-house, saving on rental of external facilities. “We’ll look at expanding our product range, diversifying and looking at bigger, more specialist systems,” he added. Subsea’s growth in contract awards includes an extensive project with RasGas, the world’s second biggest liquefied natural gas provider, based in Qatar. Subsea Innovation, set up in 1985 by engineering and diving professionals, employs 47 and has turnover exceeding £10m. It specialises in pipeline repair, moon pool systems and remotely operated marine vehicles. The North East’s subsea sector has grown 50% in three years winning over 7% of the fast growing global market. It was hoped that in offshore renewables Siemens would establish a blade manufacturing facility on the Tyne. Though it has chosen Humberside instead, companies in the North East supply chain are still expected to benefit. n

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manufacturing & offshore

overview

WOMEN LEAD REVIVALS Time to claw back the making of products we left to others

Women are inspiring the revival of manufacturers in County Durham which had previously conceded to overseas competition. Textiles entrepreneur Julia Price, an exClaremont Garments director, is now a director driving the recently launched AMA Group, which is bringing clothes making back to the North East at Peterlee, for designer brands, high street retailers and supermarkets. The firm’s initial workforce of 20 is expected to become 150-plus before 2016. And at nearby Newton Aycliffe,

Ebac’s managing director Pamela Petty will this spring begin mass production once more of British washing machines – a market that has been dominated by Italy. The £7m investment could add 200 employees to those who have already made Ebac a world leader in making dehumidifiers and water coolers. The firm has also restored the manufacture of British made Norfrost chest freezers, and aims to become a brand leader in household appliances within 10 years. n

Reviving fortunes: Pamela Petty (right) and Julia Price are bringing forsaken industries back to the North East

SERVING OTHERS PAYS Tharsus, the Blyth based designer, developer and producer of products for other firms, has shown 20% growth a year on average over a decade, reflecting the wisdom in diversifying as Brian Palmer did when he gained control of the company in 2003. The EY Manufacturing League of most efficient manufacturers shows two of the top five are specialists in precision engineering, and four of the five operate outside the traditional

areas of manufacturing. The five in order are: Faurecia (Washington, automotive parts), IHC Engineering (Stocksfield, offshore), ALM Engineering Solutions (Newton Aycliffe, precision manufacturing), Altec Engineering (Bowburn, precision work), and CMR UK (Wallsend, electrical control equipment). Other booming engineers include British Engines on Tyneside, with three businesses working in energy and offshore. BEL Valves is into the third year

of a five year doubling of capacity at St Peter’s, boosting R&D, manufacturing and the workforce. Onwardly expanding CMP Products, part of British Engines since the 1950s, which designs and makes electrical cable glands and connectors for industrial and hazardous areas, continues to expand. And Rotary Power is now in larger premises at South Shields, making its hydraulic motors and pumps for the wind and offshore sectors. n

bqlive.co.uk overview

manufacturing & offshore

HAPPY LANDINGS The North East’s recovery in manufacturing has even reached one of the worst hit areas of activity – the building of offroad vehicles for construction. All Europe suffered in that sector

during the recession. But Birtley excavator builder Komatsu UK, albeit with a smaller workforce, is back in the black, its recent operating profit of £4.4m contrasting with an operating loss

previously of £14.1m. And truck builder Caterpillar at Peterlee, which earlier shed 110 jobs, has actually moved into articulated dump trucks and bare-chassis models. n

SUCCESS ALONG THE LINE Three pre-series trains will be shipped to the UK from Japan for testing in the first half of 2015. Train manufacturer Hitachi Rail Europe has already unveiled the train soon to

serve the East Coast Main Line and other key UK routes – a prototype of many about to be assembled in a new industry at Newton Aycliffe. In total 122 trains have been ordered,

all but 12 to be made in the North East.The Class 800 series trains are due to operate from 2017 on the Great Western Main Line and from 2018 on the East Coast Main Line. n

A RARE PRESENCE Only 3.6% of the UK’s offshore workforce are female. In the North East they range from Ellis Matthewson, 22, of Wallsend - the first woman

to pass out successfully from AIS offshore fireproofing course with flying colours - to Helen Smith, chief executive of Oil Consultants

Ltd of Sunderland. She places offshore and onshore consultants of 90 nationalities anywhere within 80 countries. n

MAN IN THE HOT SEAT Manufacturers in the North East and the rest of the UK have a more powerful voice in Brussels and Strasbourg now that Terry Scuoler, chief executive of the Engineering Employers Federation, will chair the representative body for European manufacturing for the next three years. No small beer, this. At CEEMET (the

Council of European Employers of the Metal Engineering and Technology-Based Industries) he now represents 200,000 firms providing 35m jobs when he enters talks with officials at the Commission and Parliament. He has the role at a critical time for Britain’s future in Europe, and

a remit to help drive policies to boost manufacturing across the entire continent. His first goal: EU reforms to raise the contribution of manufacturing to EU GDP from 15.1% to 20% by 2020. Improved co-operation between policy makers and industry will be vital here. n

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manufacturing & offshore company profile

UNIVERSITY OF SUNDERLAND PUSHES ADVANCED MANUFACTURING TO ITS LIMITS University of Sunderland applies leading edge practice to assist companies to realise their full potential The Institute for Automotive and Manufacturing Advanced Practice (AMAP), the University of Sunderland’s Research and Consultancy institute, is working with manufacturers within the region to stimulate innovation in product design and manufacturing process improvements. AMAP, based on Sunderland’s Hylton Riverside, is part of the Faculty of Applied Sciences. To support innovation, the university interacts with its clients in a number of ways depending on their needs and these interventions range from consultation with subject experts, through placements and internships to collaborative research and development via a number of mechanisms. AMAP’s in house expertise in leading industrial practice such as the use of laser scanning during product development for more accurate and speedy inspection of product or reverse engineering of existing product. Such processes are often simple to explain but difficult to implement in practice and AMAP’s industrial connections and expertise provides a vital support mechanism to those companies wishing to embrace such game changing technologies. A recent intervention with Gestamp Tallent of Newton Aycliffe dramatically reduced process development times increasing the dimensional capability of the products during the ramp up to mass production.

For many companies the term research conjures up images of lab coats and test tubes that are often perceived as being inappropriate to their needs. In addition the very thought of embarking on a research project seems daunting. Such concerns are alleviated by the university by carrying out research on behalf of clients using its own internal expertise and through tailoring the research to provide a tangible outcome for clients. In some cases it also works with a company’s own employees to carry out the research via its professional doctorate programme. Sometimes it may be more appropriate to recruit new talent and embed researchers within the client’s organisation in order to carry out

research using either CASE award or Knowledge Transfer Partnerships (KTP). Often these embedded researchers join the client company upon completion of the project in order to continue the good work they have been carrying out thus ensuring that the outcomes continue to be developed and their skills and knowledge are not lost to the organisation. n For more information contact Roger O’Brien, Director of AMAP, roger.obrien@sunderland.ac.uk AMAP, The Industry Centre, 1 Colima Ave, Sunderland Enterprise Park West, Sunderland, SR5 3XB Tel: 0191 515 3888

Supporting Innovation Automotive Automotive & & Manufacturing Manufacturing in Manufacturing Advanced Practice

Practice and Our expertise covers a broad range ofAdvanced industrial applications digital engineering technologies and we are able to provide a www.amap.sunderland.ac.uk range of valuable services to manufacturers www.amap.sunderland.ac.uk Tel: Tel: 0191 0191 515 515 3888 3888

• Innovation in design – through digital engineering and computer aided design, as well as reverse engineering. • Innovation in product development – based around product lifecycle management and design for manufacture.

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Our partnership Our partnership with with was OurAMAP partnership with AMAP was critical in raising skill in AMAP the was critical raising the skill levels raising skill levels levels ofthe our of our employees, of our employees, employees, helping helping us deliver helping us to to deliver us to deliver in a in a fiercely competitive in a fiercely competitive fiercely competitive market. market

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Driven by experts with experience of working with, and in, industry, AMAP effectively covers three activities:

Steve Pallas

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Steve Pallas Steve Pallas Manager Nissan Nissan Training Training Manager Nissan Training Manager

• Innovation in process improvement – using our expertise in productivity improvements, lean methodologies, and adoption of new technologies to improve the manufacturing process. The University of Sunderland support the skills needed within manufacturers through: • Workforce Development • Graduate Recruitment • Internships • Management & Leadership, including executive coaching • Partnerships and collaborative projects For further information contact Adrian Morris, call 0191 515 3888 or email adrian.morris@sunderland.co.uk or see www.sunderland.ac.uk

Collaboration II Application Application I Innovation Innovation I Dissemination Collaboration Collaboration l Application l Innovation l Dissemination

money matters After accelerating further out of the recessionary mire in 2014, momentum is building in the regionâ&#x20AC;&#x2122;s money markets going into 2015. European uncertainty and the election may place challenges ahead but, as experts tell BQ, the future is certainly bright on many fronts.

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CHANCE TO BUILD ON PROGRESS The last 12 months have seen the economic recovery gain some real momentum. Andrew Hebden says that, although significant challenges remain, there is good reason to be optimistic about the outlook for 2015 What awaits the UK economy in 2015? As ever, there are plenty of uncertainties ahead. But despite a challenging global economic backdrop, there are reasons to believe the strong growth seen in the UK over the past 12 to 18 months can be sustained. The Bank of England’s Monetary Policy Committee (MPC) is relatively optimistic about the outlook for year ahead – and predicting GDP growth of 2.9% for 2015, only a little slower than in 2014. The increase in employment has been a defining characteristic of the recovery to date, with national unemployment currently at 6% and projected to fall steadily over the next 12 months. In the North East unemployment is stubbornly high (9.2%), but there has been a big increase in the employment rate – to 69%, up from just over 67% a year ago. This paradox is explained by a fall in the region’s rate of inactivity – i.e. the proportion of people who choose not to participate in the labour market at all. This rate has fallen by a point in the last year and is now at just under 24% – but it was around 30% just over a decade ago. This striking pattern has been seen to a much greater extent in the North East than elsewhere in the UK. Although more people are in work, growth in take-home pay was pretty weak throughout 2014. We now see the first tentative signs of this changing. with real incomes. The MPC expects annual real pay growth to pick

up to around 2% by the end of next year. Further optimism comes from the apparently high consumer confidence supported by better access to credit, a strong labour market and improved pay prospects. Low interest rates have also been a factor, and there is some uncertainty over what effect a rise in the Bank’s base rate would have on more indebted households. However, recent research from the Bank suggests a gradual increase in interest rates from historically low levels would not have unusually large effects on household spending overall. Finally, perhaps most importantly, is the outlook for business investment. A year ago, in these pages, I wrote how businesses in this region and beyond had been telling the Bank’s Agents they were finally feeling more confident about investing again, reflecting increased

confidence about future demand, easier access to finance, and the clarity that interest rate increases are likely to be gradual and limited. Official data suggests those positive intentions turned into real projects during 2014 with levels of business investment well above historical averages. You don’t have to read the statistics for evidence – across the North East we see businesses investing to grow capacity, boost efficiency and diversify into new areas. Such investment will be critical for providing the long overdue improvements to productivity that the UK economy needs if growth we have seen over the past 18 months is to prove sustainable. So there are good reasons to think the fundamentals of the UK economy are strong despite the challenges of a stuttering global economy and, in particular, weak growth in Europe which remains the key export market for North East businesses. Of course, there are also uncertainties that always exist in a General Election year. But with surveys of North East businesses continuing to strike a positive note as we head into the new year, firms in our region seem well placed to build on what, for most, has been a year of real progress in 2014. n Andrew Hebden is deputy agent for the Bank of England in the North East.

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NORTH EAST STOCKS NOSE AHEAD The impending election will undoutedly impact on markets in 2015, but in the meantime, the region’s stock market doyennes are on largely solid ground after a tricky 2014. Here Brewin Dolphin’s Nick Williams looks at the year ahead If 2013 was a year of broad-based stock market growth, 2014 has been less assured. Markets have been palpably less confident this year which, though driven by real life events, also feels like a natural consequence of several years of gains which would leave even the most long term investor understandably protective over their hard-earned profits. It is no surprise that in such an environment the fortunes of our North East stock market doyennes have become a little more varied; 14 out of our 27 listed entities posted share price gains in the year to the end of October, compared with 19 out of the 26 in 2013. I would consider more than half of companies posting gains a real positive in what has effectively been a sideways market. The average rate of change also held up well compared to the FTSE All Share, with the average share price falling by 1% compared to the 1% gain in the index. Strip out debutant firms Kromek and Applied Graphene, who shouldn’t be judged on their first year’s performance, and the average gain slightly outperforms the index, at a little over 2%. Looking at a list of our public companies, what strikes one is the diversity of sectors and company sizes represented. This goes some way toward explaining why share prices have held up so well. Our economy can be robust under differing economic environments, and surely there cannot be many people from

outside the area still labouring under misapprehension that we have all our economic chips stacked with a small range of industries. We have stock market representation in IT, technology, biotech, professional services, all areas of the property spectrum from surveyors to housebuilding, brewing, motoring to name a few. Drill down into the subsectors that these companies provide their services and products to, and there are not many unrepresented areas. Star performer this year was Stadium Group, the electronic technologies provider, whose shares gained 100% through hitting

forecasts for 2013 trading before posting figures for the first half of 2014 which were significantly ahead of the same period last year. The company also took the opportunity to raise guidance for the second half of this year. Go Ahead Group take silver by gaining just short of 60% after guiding that full year results will exceed market expectations. This performance is indicative of the outperformance of companies most exposed to the continued UK economic improvement, most notably housebuilders like Bellway and Barratt Developments, which continued to benefit from low interest rates and a more confident economy, as well as skilful management of their production levels, gaining 30% and 39% respectively. Beyond housing, Gosforth-founded Greggs also benefited from a more confident UK consumer, as well as a rationalisation of loss-making stores and lower input inflation, to gain over 40%, all of which led to the company raising profit expectations. Another solid year was had by Utilitywise, one of our genuine growth stocks, with the shares firming by over one quarter, following another profit increase. Since the turning point in 2009 progressively higher levels of growth have been priced into most shares. The market rewards those who exceed expectations handsomely. Often, the market can struggle to price new listings appropriately in their first few months, particularly

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in cutting edge areas. The share prices of Sedgefield’s Kromek and Wilton’s Applied Graphene Materials were both weak during our review period but, as I alluded to above, this cannot be used as a reliable guide to their prospects. Both have spent the year developing their products for which the long term demand will be significant. New listings have been conspicuous by absence in 2014, although both Filtronic and Tanfield have both recently announced placings to raise additional capital. Both will start 2015 on firmer financial ground. On the corporate activity front, although the company’s shares fell over the year, AMEC became AMEC Foster Wheeler following a takeover of the US engineering group.

Greggs also benefited from a more confident UK consumer, as well as a rationalisation of lossmaking stores and lower input inflation The stock market agenda for 2015 will be affected, on the domestic front at least, by the impending General Election. A close race, possibly followed by a hung parliament, is likely to bring short term market volatility until the exact nature of the future administration becomes clear. However, though investors may be far more concerned about the economic policy of the resulting government, our larger stock indices are genuinely global in their outlook, and look beyond the domestic economic situation. n Nick Williams is assistant director, Brewin Dolphin, Newcastle.

PRICE CHANGES, 30 NOVEMBER 2013 - 30 NOVEMBER 2014 NAME

% CHANGE

FTSE ALL-SHARE INDEX FTSE 100 INDEX FTSE 250 INDEX FTSE SMALLCAP INDEX

1.3 1.1 2.5 0.8 PRICE CHANGE -17.4 -57.0 39.8 30.7 0.9 2.7 -61.7 -8.2 58.8 -2.0 43.9 -27.5 -62.6 -37.3 -40.2 -24.2 55.6 19.5 -36.9 -8.2 16.8 100 -68.3 25.6 3.5 4.7 24.2 -1.0

AMEC FOSTER WHEELER PLC APPLIED GRAPHENE BARRATT DEVELOPMENTS PLC BELLWAY PLC CARR’S MILLING INDUSTRIES PLC E-THERAPEUTICS PLC FILTRONIC PLC GLAXOSMITHKLINE PLC GO-AHEAD GROUP PLC GRAINGER PLC GREGGS PLC HARGREAVES SERVICES PLC HELIUS ENERGY PLC IMMUNODIAGNOSTIC SYSTEMS HLD KROMEK LSL PROPERTY SERVICES PLC NORTHERN BEAR PLC NORTHGATE PLC OPSEC SECURITY GROUP PLC PETARDS GROUP PLC SAGE GROUP PLC/THE STADIUM GROUP PLC TANFIELD GROUP PLC UTILITYWISE PLC VERTU MOTORS PLC VIANET GROUP PLC ZYTRONIC PLC AVERAGE

MARKET CAP 6.4 -57.0 40.9 31.1 1.5 2.9 -61.7 -8.3 58.8 -1.7 43.9 -27.9 -60.1 -36.9 -40.2 -27.8 55.6 19.5 -20.6 46.7 14.7 111.1 -6.9 29.9 4.7 4.7 25.6

Source: Bloomberg. Returns are capital returns

Colour key: Blue is positive performance. Red is negative performance. The value of investments can fall and you may get back less than you invested. Past performance is not a guide to future performance. The value of investments can fall and you may get back less than you invested. Past performance is not a guide to future performance. We, or a connected person, may have positions in or options on the securities mentioned herein or may buy, sell or offer to make a purchase or sale of such securities from time to time. Also we reserve the right to act as principal or agent with regard to the sale or purchase of any security mentioned in this document. For further information, please refer to our conflicts policy, available on request, or accessible via our website at www.brewin.co.uk The value of investments can fall and you may get back less than you invested. Opinions expressed in this article are not necessarily views held throughout Brewin Dolphin Ltd. No director, representative or employee of Brewin Dolphin Ltd accepts liability for any direct or consequential loss arising from the use of this document or its contents.

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STRONGER NORTH EAST FLAVOUR ON THE AIM Expect more companies from a broader range of sectors to tap into the benefits of an AIM listing in 2015, predicts Mark Fahy

It was a very positive 2014 in terms of money raised through Initial Public Offerings (IPOs), with 123 companies raising over £16bn on London’s markets. Compared to the same period in 2013, the number of IPOs has risen 50% and the amount of money raised at IPO is up by 56%. On both the AIM, our market for smaller and fast growing companies, and the main market we have an encouraging pipeline, the North East included, and expect a number of high profile floats before the Christmas period. In December Quantum Pharmaceuticals, a North-East firm, announced plans to launch the biggest pharmaceutical and biotechnology float this year on the AIM. The IPO market’s strong recovery over 18 months has been driven by several factors. Improved valuation of the market has been key, with many world indices now trading at, or close to, record highs. Investor flows too have been important. After many years of investors suffering net outflows from their funds, a turnaround now

has given fund managers new capital to invest in the markets. AIM has been particularly strong, the most notable difference being the average market cap of new issuers, at £86m. This is 27% higher than the previous highest average in 2007 - and over 70% above the average IPO-deal size on the AIM over the last 10 years. This is a sign of a maturing market, and as AIM enters its 20th year in 2015 we expect it to serve the interests of a wider variety of companies and investors than ever. Launched in 1995, the AIM remains true to its goal of helping smaller companies raise the capital they need to expand and develop, while allowing investors to support them and share in their success. In the last 18 years over 3,550 businesses have joined the market, raising over £88bn in new and further issues. We’ve seen strong interest in the public markets from North East firms with 24 currently quoted on London Stock Exchange (LSE). Kromek, an X-ray imaging specialist and Applied Graphene materials, a graphene manufacturer, are Durham University spin-offs and recent entrants to the AIM in pursuit of their next phase of development. As well as the obvious primary fundraising function, becoming a public company can bring additional benefits; the opportunity to sit alongside global peers, increased visibility with the investment community and a raised profile through associated press coverage, are just some of those highlighted by firms on our markets. At LSE, we recognise we can do more

to help SMEs alongside providing efficient equity capital markets. We fully support capital coming from business angels, private equity firms, as well as our own retail accessible bond market, ORB. We recently launched our ELITE programme for ambitious, fast growing UK companies. This 24-month programme provides companies’ founders, chief executive officers and executive teams with a tailored portfolio of business support tools, education services provided by Imperial College Business School and access to a select group of advisers and investors, helping them consider how best adapt and shape their businesses for further long-term growth. We already have three firms from the North East on the programme; Kitwave, a North Shields based confectionery wholesaler, Grid, an intelligent traffic management firm in Newcastle, and NAC Group, an education training specialist for the automated sector, based in Sunderland. Besides providing access to capital, we must also continue to raise awareness around the success of these businesses to the wider UK public. To create an investment culture in the UK, we must first highlight the achievements of our SMEs, then let people truly join and benefit from their success through investment. This creation of a strong link between retail investors and UK business will allow us all to grow together. n Mark Fahy is head of UK Small Caps, London Stock Exchange

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GOOD FOR US, GOOD FOR THE NATION In 2014 foundations were laid that should support not just the North East but the entire country for some years to come, writes Geoff Hodgson We have seen the nation continue – albeit cautiously – to haul itself out of the deep mire of recession, and indeed there has been an encouraging increase in merger and acquisition activity. Recent months have seen staffing increases and tangible signs of confidence in investing, perhaps due in no small part to the decision by the leading banks to return to what they do best - banking. The successful flotation of Newcastle-based Virgin Money further indicates a strengthened banking sector. There is a significant history of publicly backed funds in North East England, and at North East Access to Finance we are highly encouraged by the strength of the funding landscape as a new year nears. We should be proud that the North East is one of the best served areas in the country for the availability of venture capital funding for businesses of all sizes. There is a well thought out ladder of support from public sources, and this allows businesses access to capital at all stages of their development and growth. That this is the case is largely due to the effectiveness of North East Finance, led by Andrew Mitchell, which is responsible for the region’s Finance for Business North East Fund, a major public suite of funds addressing the needs of early stage, growth and more established businesses. These funds will continue to invest until the end of 2015 and their successor fund is currently in development. In addition,

Geoff Hodgson: Bright outlook after solid 2014

the BE Group, The Journal and UNW run the Let’s Grow Fund, which is massively innovative and caters for companies too small to qualify for the Government’s Regional Growth Fund. Other exciting initiatives are building on the Strategic Economic Plans developed by the North East Local Enterprise Partnership and Tees Valley Unlimited

in the past year. These plans, applauded by Government, will secure substantial European Regional Development funding for the North East over the next seven years. So to 2015. The highly regarded North East Access to Finance Guide, which has for the past five years provided details of available sources of funding in the North East, has now been handed over to form part of the wider range of information on business support provided by the North East Local Enterprise Partnership and Tees Valley Unlimited. In Tees Valley, this is through the Tees Valley Business Compass, while in the North East LEP area the Guide will soon form part of the new North East Growth Hub. In terms of what the coming year holds for businesses, as always, it remains to be seen, but I am confident that we are entering 2015 in a stronger position than a year ago. Of course, the General Election will be a watershed, whatever the result. If I could make one wish for 2015, it would be for a clear outcome that provides a solid foundation for business support and access to finance in the years to come. n Geoff Hodgson is chairman of North East Access to Finance

I am confident that we are entering 2015 in a stronger position than a year ago. If I could make one wish for 2015, it would be for a clear outcome that provides a solid foundation for business

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BORROWERS SPOILED FOR CHOICE Challenger banks are promising to kick off a new game Net lending to small businesses under a flagship Bank of England scheme has been falling - though more slowly than before - and Santander, Lloyds Banking Group and ‘challenger’ bank Aldermore have latterly increased their lending under the scheme. From this year on, smaller businesses should find loan access easier. A score or so of “challenger” banks like Aldermore are taking on the High Street giants with government support. These include TSB, returning to the High Street after 18 years under Lloyds’ control. They also include the new Durham based Atom Bank, whose managing director Craig Iley (exSantander) told a recent BQ Breakfast Live briefing of regional business people that the British Business Bank (BBB), coming onstream will be especially important for SMEs over the next 20 or 30 years. The BBB aims to ensure finance for small and medium size businesses works effectively, allowing them to prosper, grow and build UK economic activity. Many more banks besides the Big Four – Barclays, HSBC, Lloyds and RBS – will be lending (vital to generate their profit), and switching from one bank to another more amenable to a proposal, should become easier. Big banks of course remain best placed to meet larger requirements, and are not going to yield ground readily. The North East and Yorkshire for example have been promised a £110m share of a £1bn Small Business Fund that RBS and NatWest have launched nationally. It

Anthony Thomson: Another bank launch

is open to new and existing customers keen to grow or diversify their business through fixed rate loans from £1,000 to £250,000 with no arrangement fee. The new banks however may, in Iley’s view, lead towards a German tiered model, ensuring small players are not squeezed out in bids for support and funding. Metro, the High Street’s first new lender for a century, and still Southern orientated after four years, was first into the ring. Brainchild of Anthony Thomson, the Geordie entrepreneur who has moved on to set up Atom as the UK’s first digitally driven bank, it has achieved deposits of £2.3bn, enabling it and such other challengers active so far to claim around 2% of the market for loans and deposits. Within one year Metro hopes to be in the black, and within two years it hopes to be a FTSE-100 company. To achieve the latter, it needs all to itself 2.5% of total market share - £25bn

in round figures. Around 60% of its deposits are from business customers, who have been making up almost half of the bank’s total lending. Unlike Metro, Atom Bank will be branchless and operating nationwide, its priority in lending being for SMEs in the North East ahead of a nationwide fan out. Success rests largely on Thomson’s belief that about 60% of all banking will be done on mobile devices within five years. Some analysts doubt all challenger banks planned will stay the distance. Those unable to attract enough deposits to redistribute in loans may have to seek amalgamation. Either way, choice of lender seems certain to widen. For North East business, there are presently about 300 sources of financial support available for entrepreneurs seeking backing in the region. n See NEA2F on www.nea2f.co.uk/ media-centre/reports/north-east

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money matters SPREADING ITS FACILITIES A North East business fund manager is expanding its presence to bring more small but growing firms of the region within easier reach. Newcastle-based Rivers Capital has opened an office in Middlesbrough to spread further the awareness of the Microloan Fund, and extra finance available to eligible firms. Jonathan Gold, co-founder and director at Rivers Capital – which recently took over the Microloan contract – says enquiries from Tees Valley are growing.

VIRGIN MONEY LISTED

Business boosters: Working on the new Jeremie2 venture capital fund to boost businesses are (left to right) Sandy Anderson, chairman of the Tees Valley LEP, Andrew Hodgson, deputy chairman of the North East LEP and Estelle Blanks, deputy project director of the fund

ENCORE FOR BEST IN CLASS A Jeremie2 venture capital fund opening for business in 2016 will succeed Jeremie1, acclaimed as the most successful fund of its type in the UK. Andrew Mitchell, chief executive of North East Finance which administers the £125m Finance for Business North East programme to drive growth in the region’s economy, led Jeremie1 and will lead Jeremie2 also. Jeremie1 has invested some £110m in 650 North East businesses and attracted more than £120m of private investment over four years. Both the region’s Local Enterprise Partnerships will help the new fund achieve maximum impact. The current fund provides investment through seven different funds serving different purposes. Estelle Blanks, former deputy director of Newcastle Science City, will be deputy project director of Jeremie2. Jeremie1 is estimated to have created 5,000 jobs and safeguarded a further 2,800 by the end of 2014.

Sir Richard Branson’s Virgin Money, which bought the “bad part” of the collapsed Northern Rock and employs 1,700 staff in Newcastle, is now quoted on the Stock Exchange. It had a subdued start when it floated at £1.25bn in November, having delayed a month earlier due to market turmoil. The retail bank had priced its shares at 283p each – the bottom of its range. Investors reportedly had been wary after four flotations at least were scrapped during a stock market sell-off beforehand. With the flotation, Jayne-Anne Gadhia became the first female chief executive of a listed British bank.

SETTING A PACE A hot pacemaker in mergers and acquisitions is Clive Owen Corporate Finance which recently completed seven deals worth a total of £20m in seven weeks. The firm operates from Darlington, Durham and York.

service sector In association with

Collaboration is the watchword in the service sector going into 2015. While businesses increasingly find success by teaming up with rivals and customers, the bigger economic picture sees politicians and the private sector joining forces for the greater good of the region.

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service sector

COLLABORATE AND INNOVATE Willingness to engage with partners, customers and fellow businesses will deliver service sector success in 2015, says Alastair MacColl The way businesses in the service sector work has changed enormously over the last decade, mainly through technology and a surge in the speed and accessibility of new forms of communication. Markets we serve are more dynamic, more competitive and offer greater opportunity to those organisations that anticipate and meet the needs of those markets. To make the most of those opportunities, businesses in the service sector are becoming much more used to the idea of collaborating - working together with customers, partners, sponsors and sometimes adversaries to solve problems and develop solutions. It’s been established practice in a number of sectors where the cost of innovation and product development means it makes sense to share the burden of ‘breaking through’ technical or conceptual barriers. Space and satellite technology are just one example. At the BE Group, collaboration and innovation have become second nature. By working with our network of customers and partners to identify common goals, problems and opportunities, we share knowledge and experience to make sure our products and services are consistently market leading. It also allows us to move faster, share valuable resources, institutionalise

It requires a bold approach and willingness to give up a little control

innovation and spread the burden of research and development costs. It helps us to be the best we can at what we do. And along the way we get to build up the kind of market insight and customer understanding that money can’t buy. Collaboration does, of course, require a bold approach and willingness to sometimes give up a little control. You have to be ready to be flexible, adaptable and learn from organisations that may work in new and very different ways. But, as long as you operate a discerning

approach to choosing who you work with and how you work with them, it is generally a rewarding experience. In a fast moving sector the best businesses will be the best collaborators. n Alastair MacColl is chief executive of Business & Enterprise Group. The BE Group specialises in business information, events and commercial development programmes that help businesses succeed and grow.

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VITALITY DESPITE LINGERING UNCERTAINTY In the year of uncertainty upon us, a region with one voice can use its relative lack of size to advantage, says John Marshall Thereâ&#x20AC;&#x2122;s undoubtedly a mixture of good and bad news coming our way in the region in 2015. The good news is that our national economy continues to outperform the other Western European economies, and that there are real signs of a return to confidence and optimism. A manufacturingâ&#x20AC;&#x201C;led resurgence is the perfect outcome for the North East, and the service sector will benefit from this as the clients it serves begin to prosper again and plan further investment to create more and better paid jobs. We shall have a new link to the USA via Newcastle Airport, and if we can make this even half as successful for the region as the Emirates flight has been to Dubai that will further strengthen our position. There is also growing recognition among the political parties that regional devolution is back on the agenda, and it seems inevitable that the legacy of the Scottish referendum will be a move toward a greater degree of devolved powers from which the region can seek to benefit. That said, the main threat to all of this is the spectre of uncertainty, an enemy to longer term planning and investment decisions. Weâ&#x20AC;&#x2122;re entering an election year with little certainty save that some form of coalition is likely to be necessary to allow any one group to lead. There is also a focus once again

The key for the region is to make sure we pull together and play to our strengths

on the part of politicians and the public in our membership of the European Union, with at least one of the parties making a clear

commitment to an in/out referendum. The danger is that the public end up faced with making a key decision for business based on political propaganda rather than actual facts. What this will create for business is the danger of a period of paralysis like we saw in the run in to the Scottish Referendum, with investment decisions being put off altogether or delayed. For sure, other European countries currently suffering will be poised to take advantage of any apparent stalling in our return to growth. As now seems the norm, the service sector in the region will have to cope with challenges brought about by the changing environment we operate in. We are a resourceful and resilient bunch but, as with any such change, this will create winners and losers. The key for the region is to make sure we pull together and play to our strengths, the things we can control and not those things we cannot. There are almost 100,000 people working in knowledge-intensive business services in our region, with law and accountancy alone employing 12,800 people within a 30 minute drive from Newcastle. This is a success story we should be proud of. It helps address the myth that the region is wholly reliant on the public sector. We can offer a competitive location with a loyal workforce, excellent

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universities and colleges, a collaborative business community and an great quality of life. These attributes will remain whatever may be thrown at us. The sector will continue to offer many and varied job opportunities in the region. Business services in the region include contact centres, technical support centres and shared services centres, and they support major national and international companies

service sector and financial institutions like Tesco Bank, British Airways, BskyB, nPower, Sage and Virgin Money. The main challenges identified for the service sector in this region remain availability of skills (and capturing the talent we nurture at university/college for the future), availability of the right office space for new businesses to come in and also challenging the perceptions about regional connectivity.

Our relative lack of size, an undoubted weakness in some ways, can also be a strength

We must continue to address these issues in 2015. So the new year will throw up new challenges but no region in the UK will be immune to these. As long as we focus on the strength of our own proposition, and the politicians and business leaders in the region can pull together and collaborate, we are as well placed as anywhere outside London to succeed. Our relative lack of size, an undoubted weakness in some ways, can also be a strength, provided we can speak with a unified voice. n John Marshall is vice-chairman of Bond Dickinson LLP.

company profile

BAS: SUPPORT FROM ICAEW There is a clear need for expert advice which helps SMEs and start-up businesses become the engines of growth which are key to this region’s economic recovery says Keith Proudfoot, ICAEW Regional Director. ICAEW chartered accountants can do so much more than prepare accounts and deal with the taxman. They have the professional experience and expert knowledge to examine business ideas, evaluate potential and advise for the best chance of success. Local businesses can find this out for themselves. ICAEW’s Business Advice Scheme (BAS) offers SMEs advice on how to overcome the challenges they face in today’s economic climate. There’s an initial free session on offer – these can be of up to 2 hours with a qualified ICAEW member with no future obligation. Keith feels it’s not just government’s responsibility to help businesses survive and thrive.

“As a profession that acts in the public interest, we recognise our responsibility to offer crucial guidance” n www.businessadviceservice.com to find your nearest BAS participating chartered accountant.

ICAEW (Institute of Chartered Accountants in England & Wales) is a professional membership organisation supporting over 144,000 chartered accountants around the world. For information please visit www.icaew.com

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service sector

overview

HELP IS EVER MORE PLENTIFUL In growing complexity of business new services spring up Think of service and we perhaps think of accountants, lawyers, bankers, financial advisors and insurance brokers – all vital. Deloitte for example is opening a national centre of excellence in Newcastle with 100 jobs. And in the growing complexity of business new services are springing up enterprisingly all the time. IP’s importance has grown with the presence of Patent Box, the Government’s lowering of Corporation Tax to 10% to encourage research and development. The region has a wide choice of IP attorneys, and a business and IP centre at Newcastle City Library. IT services, web design, payroll and interpreter services, contact centres and sign makers all serve in the cause of North East success. Outsourcing company Parseq, processing 8% of the nation’s pay packets from fives sites including Sunderland, now counts 10 international banks, a third of the UK’s

Going places: Geoff Thompson enjoys a big reputation

The importance of IP has grown with the presence of Patent Box to speed R&D utility sector, and a number of leading charities and insurance firms among its clients. Utilitywise, an energy and water consultancy, might have been thought unnecessary at one time. But this AIM-listed Tyneside company, founded less than a decade ago by chief

executive Geoff Thompson, enjoys a big reputation in business-to-business. It helps nearly 21,000 other firms around the country to get best value from energy and water contracts, reducing their energy and water usage, and lowering their carbon footprint.

In the efficiency league, business improvement specialist Nicholson Consultancy at Birtley has helped Sheffield Forgemasters to save £300,000 in a year and believes that figure could double within a year. n

Helping businesses succeed and grow. @B_Egroup www.be-group.co.uk 0191 426 6408

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SMARTENING A SCIENCE REPUTATION While providing a beating heart for the region’s science sector, the newest urban quarter in Newcastle will offer much beyond the world of white coats, as BQ discovers The lawyers are in at Science Central – but in the nicest way. The new 24 acre mixed use urban quarter slowly taking shape on the former Scottish & Newcastle Brewery site in the heart of Newcastle is to become a hub for scientific businesses, research and innovation - a promontory of Newcastle’s nationally recognised status as a UK science city. A multi-disciplinary team has a key role in developing Science Central, their law firm Bond Dickinson having been appointed legal advisor. Leisure, retail and residential facets feature in the new district, partly to finance it but also to ensure vitality after office and university hours. Newcastle Science City represents a partnership between Newcastle University and the City Council, both of whose stakes had to be raised after the Government’s axing of a third partner, the regional development agency One North East. Opening of The Core building has landmarked the multi-million pound development. It’s already 90% let, providing offices for firms into future city issues such as energy, transport, big data and cloud computing. The £11.2m building, owned by Newcastle City Council and

Science Central: How it might look

managed by Creative Space Management, already has among tenants Urban Foresight, a consultancy for urban ecosystems, transport and energy sectors and Axivity, a firm relocated from York that creates movement sensors. Funded through the European Union Regional Development Fund 20072013 (ERDF), Regional Growth Fund and Newcastle City Council, the building will also house academic and industry research partnerships. Besides The Core, an additional £50m investment by the university will create a ‘living laboratory’ where new

technologies and research will be tried out from 2017, possibly leading to new businesses. Fiona Standfield, director of Newcastle Science City says Science Central will connect the city’s West End with the city centre once more. It will also, it is hoped, draw significant inward investment from leading scientific sources, creating a scientific legacy for the North East and supporting education and skills in STEM subjects (science, technology, engineering and maths). Business support services are partfunded under a European Regional Development Fund programme. n

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service sector

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BE WARY IN PERSONAL SERVICE

Graeme Surtees: Warns of complexities

Personal services are being advised to heed the Inland Revenue’s attack on perceived abuses of the tax system. The term ‘personal service company’ is not defined in law, Waltons Clark Whitehill the Hartlepool accountants and business advisors warn. It is understood generally to mean a limited company, the sole or main shareholder of which is also its director, and who, instead of working directly for clients, or taking up employment with other businesses, operates through his company. The company contracts with clients, either directly or through an agency,

to supply the services of its director. This practice has mushroomed in recent years. It gives flexibility to the end user as well as tax/NIC benefits to both parties. But the Inland Revenue has concerns that the practice is being misused. WCH director Graeme Surtees says that while perhaps 1.5m such companies now work like this, the provisions are complex, and rely on contract by contract assessment and a sound understanding of case law. Professional guidance is recommended, given that considerations will rest on a client’s particular circumstances. n

ARE YOU BEING SERVED? In any business, good service begins within. But some organisations may be overlooking the potential to improve their customer service and drive revenue harder. A survey recently suggested only

40% of senior managers focus on improving their customer service. “The contact centre, for example, is often seen as an operational expense and nothing more,” says Steven Thurlow, head of

worldwide product strategy for software specialist KANA. “And often senior management will review only functional aspects, such as speed of handling times and resolution times.” n

A MERGER ALL AT SEA A rare marriage within the service sector saw the North East’s two oldest international marine insurance firms announce in 2014 their formal merging into a £900m company. North of England P&I Association (North) and Sunderland Marine Mutual Insurance Company Ltd (SMMI), based in Newcastle and Durham respectively, formed North Group, approved by regulatory

authorities at home and abroad. Two of the longest established and most successful international marine insurance businesses have thereby created one of the largest global marine insurance operations, serving the entire spectrum, from small fishing vessels to large ships. The group has a combined premium income of more than £300m, free reserves of more than £200m and

total assets topping £900m. On the subject of deals, Tait Walker, through its corporate finance team, topped the North East’s financial advisor league with 21 deals in 2013, of which 13 were included in the annual independent national survey by financial information provider Experian Corpfin. KPMG was placed second. Ward Hadaway was the most active dealmaking law firm. n

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The regionâ&#x20AC;&#x2122;s entrepreneurial star is rising and collaboration via support networks is helping start-ups to blossom into major employers. Business support is also proving a powerful force in bringing new industries to the fore, as well as enabling firms to overcome age-old challenges

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TEN TIMES BETTER THAN THE REST Businesses run by North East entrepreneurs have grown by more than 10 times the regional average over two years. It bodes well for the wider business economy, says Nigel Mills of the Entrepreneurs’ Forum It’s now being universally acknowledged that entrepreneurs creating businesses, jobs and wealth and providing a platform for innovation - have a significant role to play in our regional economy. In the North East countless dynamic entrepreneurs lead exciting businesses, both new and established. Entrepreneurs are the original selfhelpers - the ones who get on their bikes and pedal to create something meaningful and sustainable while bringing jobs to our region. Taking charge of your own destiny doesn’t mean having to go it alone. If you’re going to leave the comfort of employment, or are the kind of person who could never work for anyone else, that’s when it’s even more critical to learn from the experience of others, and to draw on their support. No-one starting a business believes it will fail, nor will they knowingly do anything bad for it. Yet, we all make mistakes.

Entrepreneurs unite: taking charge of your own destiny in business doesn’t mean you must go it alone

The benefit of the Entrepreneurs’ Forum is the exposure it gives members to the successes and achievements, but also the failures, of others, and therefore the learning to ensure they don’t repeat those mistakes. Our mentoring is at the heart of the Forum’s ethos, giving opportunity for those who have achieved success to give something back to the next wave of entrepreneurs. Both parties benefit from contacts they make, the knowledge shared and camaraderie found in a fellowship of peers. We have over 80 mentors and more than 300 members, whose businesses have an average turnover of £9.6m. The Forum membership is dynamic – as some members move on, others join, and that’s healthy. It means we have an ever-changing resource – our amazing entrepreneurs – giving members chance to get to know new people and widen their network. Every contact between business owners generates something positive – whether an idea, a connection, a shared experience, or some wisdom or inspiration. Every conversation counts. This year the Forum has hosted many quality events drawing record attendance across the region. Last year we brought together more than 2,000 entrepreneurs, change makers

Nigel Mills: Start-up support is key and business leaders from major businesses in the North East – no other organisation in the region achieved that. Our Fortune Favours the Brave autumn conference was recognised by the Global Entrepreneurship Congress for its significant contribution towards making entrepreneurship more visible. In being awarded High Impact Status, the conference was acknowledged >>

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business support for inspiring people, connecting entrepreneurs to collaborators, mentors and investors and introducing them to new possibilities and opportunities. Yet we still need to stimulate the development of more businesses to contribute to job creation, to support large companies in our region and keep our young talent here. Finding good people challenges all organisations, as our quarterly business tracker survey continues to highlight, so the more we can do to retain our best young brains by offering them real prospects and an exciting professional future, combined with the North East’s enjoyable lifestyle, the better. The scale of the task ahead appears in one simple statistic; the national average of business numbers per 10,000 head of population is 1,007 compared to the North East figure of 701, just over two thirds of the national average. So our economic performance lags, inevitably resulting in higher unemployment and social issues associated. But if optimism among entrepreneurs is any kind of measure, we can be positive about the future. Our quarterly survey shows entrepreneurial businesses in the North East have, over two years, grown by more than 10 times regional average. It’s an incredible achievement. It shows by working together we can achieve so much more. The Forum is growing and becoming more and more influential; together we’re making a real difference to entrepreneurship and wider business economy because together we’re stronger. Together we can take on the world. n Nigel Mills is chairman of the Entrepreneurs’ Forum.

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If optimism among entrepreneurs is any kind of measure, we can be positive about the future

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business support

RICH PROMISE FOR THE FUTURE Graphene is among a number of materials promising great things for industry here in the North East, the Centre for Process Innovation’s Nigel Perry tells BQ

Graphene is a new material being speedily taken forward in the North East. Foreseen in 1947, it was finally isolated at the University of Manchester in 2004, and now looks certain to transform many products. Its electrical and thermal conductivity, optical purity and mechanical strength may revolutionise high-capacity batteries, flexible screens, ultrafast transistors and other electronic components, as well as super-bright lasers – anything from sports equipment to aircraft wings. Graphite based, it comprises carbon atom hexagons just one atom thick; a heap of three million sheets would only stand 1mm high. But 200 times stronger than steel, and able to conduct electricity a million times better than copper (though thin as a human hair), it will be invaluable to semi-conductor circuits and other computer parts. The Centre for Process Innovation (CPI) operating from Wilton, Darlington and Sedgefield, is behind the drive to advance graphene in the North East. The CPI is part of the High Value Manufacturing Catapult, a network of seven technology innovation centres. It combines good ideas from applied knowledge in science and engineering with development facilities, enabling clients to prove, prototype and scale up new generations of products or processes at minimal financial risk.

Nigel Perry: Calls for a concerted effort It has already invested £30m in Netpark science technology centre at Sedgefield, developing potentials of, among other things, printable electronics. It is now spending almost the same again there over two years, including £14m to set up a Graphene Applications Innovation Centre. Some £7.4m from the state-backed Local Growth Fund is getting the venture running, and £7m of match funding is expected from industry. CPI is also developing a £14.4m Formulation Innovation Centre at Netpark, where firms can exploit commercial potentials of complex formulated products used in household goods. Paints, detergent powders, adhesives,

lubricants, cosmetic creams and gels may all stand to gain from this facility being developed alongside Knowledge Transfer Network involving the universities. Global markets for high-growth formulated products are put at £1,000bn. Together these two new centres could grow many jobs and generate millions of pounds for the region and beyond, helping companies of all sizes. Nigel Perry, CPI’s chief executive, says: “To benefit from graphene the UK economy will require a concerted effort to be closer to market by proving that processes work on industrial scale.” Graphene firms are already in business in the North East. AIM-listed Applied Graphene Materials of Redcar was founded in 2010 on technology Professor Karl Coleman developed at Durham University. It is working with DuPont Teijin Films to investigate use and dispersion of graphene within polyester films, and with PolyPhotonix and CPI to develop graphene based transparent electrodes. At Consett Thomas Swan, an 88-year-old manufacturing firm with customers in 88 countries, specialises in nanotechnology and is working on four projects with partners, producing graphene products already going to mainland Europe and North America. These cover energy storage, printed electronics, separations and touch panels. >>

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SUBSEA BOOST AHEAD A first in UK subsea engineering will be British Engines’ proposed £10m Neptune test centre at Spillers’ mill on the Tyne. Professor Nick Wright, pro-vice chancellor for research and innovation at Newcastle University, expects it to enrich research capacity and provide crucial infrastructure for emerging opportunities.

Graphene has its sceptics. Professor Andrea Ferrari, director of Cambridge University’s £24m graphene centre, says: “We’ve got to be honest about it – graphene can go totally belly up but it would be silly not to invest in it.” The CPI is also managing a new £38m National Biologics Manufacturing Centre (NBMC) at Darlington, which from March will research and develop lifesaving cures and vaccines. Biotechnology is seen as the future of all medicines. Biological medicines account for up to 15% of the pharmaceutical market and 20% of new medicines are in that category. Through research and development of cures and vaccines here, the North-East could become a world leader in biologic treatments. In a collaboration between academia, the National Health Service (NHS) and the industry, scientists,

engineers and technicians will develop prototype medications with foundations such as cells, bacteria and yeast. Sandy Anderson, chairman of Tees Valley Unlimited which lobbied vigorously to have the centre in Darlington rather than elsewhere, says: “Darlington area has long been known for its innovation. This is a new aspect to that.” The new NBMC, managed by the CPI, will help companies of all sizes in biologics to produce, demonstrate, prototype and scale up new biologic products, processes and technology. It will help firms anywhere in the UK. Space will be given to good manufacturing practices, analytical and technology development and clean rooms with the latest laboratory equipment. There will also be offices, meeting rooms and spaces for training and conferencing. This centre is part of a government strategy for UK life sciences with a £310m input in all towards discovering and commercialising innovative medicines. The centre will encourage businesses at neighbouring Central Park, which when completed by April, can start to host up to 60 new and small businesses. This £6.6m business hub will be managed by Darlington Council and run by North-East Business Innovation Centre (BIC). Funding has come from the European

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Regional Development Fund and the Homes and Communities Agency. A £20m complementary venture, supported by the Government’s Local Growth Fund and £10m from Tees Valley Unlimited, will follow in 2017. Here, technology will deliver medicines for specific diseases and patient cases. Scores of highly skilled jobs are expected to be found, and collaborative work and spinout companies attracted. Netpark at Sedgefield, which is now 10 years old, is also one of three UK centres advancing business expertise in satellite technology. Businesses already based there incline towards printable electronics, microelectronics, photonics and nanotechnology, which benefits energy, defence, and medical related technologies. Durham Council aims to triple the size of Netpark, creating 10,000 more jobs directly and indirectly – many at top level. A digital Catapult Centre is also being set up at Sunderland (read more in our digital section on pages 140-149). n

200 FIRMS TO COME? By 2025 Netpark could host 200 more companies on council-owned land north of the existing site, Dr Simon Goon estimates. He’s managing director of Business Durham, working on developments there with Durham University and the CPI. A university technical college is envisaged, driving an apprenticeship programme to foster workforces. A hotel, conference centre, crèche, gym and shop could complement. The council has approved £12.9m for improving Netpark’s infrastructure and services. Presently Netpark has 23 firms including two Plcs employing 400 people. Many new firms on an additional 30 acres of council owned land are expected to be there within 10 years.

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INNOVATION, YES – BUT IS THERE ENOUGH? In at the start: (from left) Professor Chris Higgins, vice-chancellor of Durham University; Paul Varley of the North East LEP’s investment panel; Dr Tim Hammond of Durham University; and Paul Woolston, chairman of the North East LEP

Growing numbers of manufacturers are concerned their investment in innovation isn’t keeping pace with competitors. An EEF/NatWest innovation monitor suggests 95% of manufacturers have engaged in innovation in the past three years. But the number reporting innovation in three activities or more has more than halved in a year as companies refocus on satisfying existing customers. Meanwhile UK business investment in R&D is only 1.1% of GDP, while the OECD average is 1.6% and Germany is at 2%. Over a decade the UK’s relative position has declined compared to that of many improving competitor economies. Professor Roy Sandbach, who leads strategic innovation at the

North East Local Enterprise Partnership (NELEP), now has a team of 12 alongside him, drawn from business, the professions, academia and civic quarters. Their aim is to strategise the funding NELEP has secured towards five of its six planned innovation projects through the Government’s Local Growth Deal. Besides its Netpark commitment, NELEP allocated funds towards a Low Carbon Energy centre at Newcastle Science City, an incubation hub for Newcastle Life Sciences and an enterprise and innovation hub at University of Sunderland. The latter’s internationally important FabLab could herald 650 jobs and benefit advanced manufacturing, health sciences and the creative industries.

A centre promoting collaboration between university and industry in innovation is opening at Durham University. The Centre for Innovation and Growth (CIG) is initially supporting research arising from a long relationship between Durham University and the health and beauty consumer giant Procter and Gamble (P&G). NELEP chairman Paul Woolston says the centre fits an open innovation brand the North East, its universities and institutions want to be known for, whereby academics can work with various non-competitive industrial partners on specific projects. Sandbach adds: “Our regional profile as a destination for inward innovation investment will be greatly enhanced.”

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business support

BORN SURVIVOR BOOSTS OTHERS Over 25 years RTC North has helped hundreds of firms get their products to market, boosted their business growth and helped them trace new opportunities at home and overseas. It’s the only regional technology centre still in existence out of 12 such centres launched nationwide by the Tory Government in 1989. Recently it has been giving North East firms the opportunity to consider and exploit the latest technology tools.

A GrowthAccelerator team showcased IT system solutions offering competitive advantage. The moral: IT strategy can’t be simply aligned with the business but must be fully integrated into it, with commitment to exploring innovations that improve performance. Jamie Ollivere, growth manager at GrowthAccelerator, says: “The region is lucky in having some great technology companies that have both nationally experienced specialists in their

field, and people and organisations developing innovative business apps and tools.” Design Network North, which RTC North co-ordinated and which Gateshead Council owns and runs, is a regional focal point for the use of design, by businesses and organisations of the North East. At its Gateshead headquarters it runs design events and exhibitions, and provides commercial space for design and creative businesses. n

ALL ABOARD THE GROWTH TRAIN The advantages of setting up or developing businesses on Wearside and Teesside show up in essential statistics. Companies in Redcar and Cleveland, whose enterprise team give free advice and support, have a three year survival rate of 61.4% compared to a national average of 57.9%. Business coaches there have helped hundreds of startups over the past three years and are helping established firms to strengthen. The not-for-profit North East Business and Innovation Centre (BIC) at Sunderland supports businesses of all shapes and sizes, and has a 75% field leading rate of three-year survival for businesses under its wing. Its 14 acre site beside the River Wear includes a range of flexible office and industrial space let to about 130 businesses, as well as meeting and conference facilities. Its advisors help about 150 self-starters a year, giving one-to-one advice,

mentoring and support, training courses, workshops and seminars. Tedco, which helped start-ups on South Tyneside, is now part of the BIC which continues that responsibility. It also helps people working from home. Chief executive Paul McEldon is also chairman of the National Enterprise Network. A business growth investment scheme for Tees Valley offers between £25,000 and £1m of grant support to small and medium-size firms looking to invest and grow sustainable business. Businesses across the five local authority areas covered may apply. The scheme is aimed at engineering, advanced manufacturing, digital and creative industries, chemicals and process technology. The funding was secured from the Government’s Regional Growth Fund through Lancaster University, which is leading the creation of 15 new growth hubs across the UK. The investment

scheme is being run by BE Group, which has already awarded more than £30m of grants from the Regional Growth Fund through a Let’s Grow grant scheme. East Durham Business Service has incubation facilities at Seaham and Peterlee, and meeting and training rooms, networking areas and even hot desks for individuals who, with mobile phones and laptops, may not yet need a fixed office. Tynedale has a business network backing firms new to the area, whether established or starting up. Business centres from Barnard Castle to Berwick have meanwhile joined forces to create a network to support and stimulate economic growth in North East rural communities. Berwick, Alnwick and Hexham are the selfemployment hot spots in the north of our region, figures from the Office for National Statistics suggest. n

We’re motivated by results

Are you? We firmly believe that training and development should deliver results – strengthening your business to make it more efficient and more competitive. So when you’re thinking about your workforce and skills needs, choose a training provider that really understands your requirements, will deliver high quality solutions and provide a clear return on your investment.

Choose Sunderland College We’ve a proven track record of designing and delivering courses and qualifications, tailored to meet your specific needs. And with over 30 frameworks on offer, we are one of the largest Apprenticeship providers in the North East. To find out more call 0191 511 6000 or email employers@sunderlandcollege.ac.uk

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SUNDERLAND COLLEGE PUTTING PEOPLE DEVELOPMENT FIRST Sunderland College offers a range of support to businesses in the region and has a proven track record in establishing partnerships with organisations to meet their workforce and skills needs. The College has built a strong reputation in a growing number of market sectors including Advanced Manufacture and Engineering; Digital, IT and Software; Health and Care; Construction, incorporating sustainable construction and renewable energy; and Professional Business Services, in particular the contact centre industry and accountancy. This reputation has been built by placing strong emphasis on working with organisations to deliver results and strengthen their business to make it more efficient and ultimately more competitive. The College views all organisations as unique, and works with businesses on an individual basis to understand their needs and challenges. People development is at the heart of everything Sunderland College does, from delivering tailored and bespoke courses and qualifications, to short taster and master classes as well as Continued Professional Development, Apprenticeships and Traineeships. As one of the largest Apprenticeship providers in the region, the College offers over 30 frameworks across a number of occupational areas and in the last year alone it delivered 1,000 Apprenticeships with a number of successful partners such as Tombola, The Test Factory, Gentoo, EE, UKAR, Sunderland Care and Support and Sunderland Home Care Associates as well as a host of SMEs.

Hiring apprentices is an excellent way for businesses to grow their own talent by developing a motivated, skilled and qualified workforce â&#x20AC;&#x201C; the facts speak for themselves, with official statistics proving that 96 per cent of employers that take on an apprentice report benefits to their business such as improved productivity and staff morale, improved products and services and increased staff retention. Growing and retaining staff is highly important in todayâ&#x20AC;&#x2122;s competitive marketplace, however, Sunderland College also recognises the importance of recruiting the right staff. Through its Recruitment Support Service, the College takes the hassle out of hiring. Through a partnership approach, the College works with organisations to

establish the key skills required for new recruits. The College then develops tailored training programmes to ensure candidates put forward for interview are job ready and meet the exact specifications required for the roles. In addition the College can also provide employers with direct access to their large talent pool of freshly trained students, ready for work and equipped with the latest industry skills. n

For more information about Sunderland College and the support and training options available to businesses, visit www.sunderlandcollege.ac.uk, email employers@sunderlandcollege.ac.uk or ring 0191 5116000.

built environment In association with

A new approach to inward investment could remove a void, and benefit, the commercial property market. Infrastructural needs are being recognised on roads and railways. And town centres are receiving attention.

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built environment

UNITY SHINES IN PROPERTY A joint endeavour by estate agents and investment teams from local authorities marks a radical new initiative to get more inward investment into the region’s fabric. Brian Nicholls reports Experts in North East real estate and investment negotiators are combining skills in a public/private initiative – building a global platform from which to speed external interest into the region’s property opportunity. Developing Consensus is a group of leading investors, developers and agents, launched initially from a stand at an international show in London’s Olympia. They had already attracted £750m of investment during the last property cycle. Subsequently a representative dozen of them ‘sold’ the region at the first MIPIM UK, which attracted 4,000 investors and other international property players of influence. Visitors to the Invest North East England stand set up included a Chinese delegation. Adam Serfontein, chairman of Developing Consensus, describes the venture as a “significant success - a perfect platform to build on.” The group’s representatives worked alongside the investment teams from the seven local authorities within the North East Combined Authority (NECA) on the stand. Carillion, Clouston Group, Cobalt Park, Gentoo, Hanro Group, Intu, Knight Frank, Newcastle Science Central, Quorum Business Park, Ryder Architecture, Sanderson Weatherall and UK Land Estates all took part.

Open for business: The North East’s property assets are put on show big time

A conference hosted by BBC’s Mark Easton focused on reshoring business support functions to the UK and particularly the North East, with new NECA investment gateway manager, Guy Currey, addressing the audience. Serfontein, who’s also Hanro Group’s managing director, says: “We’ve now proved that, working together across sector and geographical regions, we can hold our own with other key UK investment destinations. Clearly we must have in place one single point of entry for all inward investment enquiries. “This will streamline enquiries, reduce duplication and cost and improve conversion rate through proactively targeting the market. It would need

teeth and money – the latter made available from substantial savings in reduced sub-regional investment products and individual initiatives.” He believes joined up thinking between NECA and the private sector must replace individual local authority initiatives, “which are less effective, on a national and international stage, and potentially divisive.” n

We’ve proved we can hold our own with other key UK investment destinations

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CITY WITH A FLYING START A flurry of activity in Sunderland has city stakeholders gearing up for a bumper year ahead It looks like Sunderland’s time has come – when problems of the past give way to an exciting new prospect. This year 2015 could be the start of something big for Sunderland - when everything starts coming together. With construction giant Carillion and the city council now jointly venturing as Siglion to effect an £800m regeneration over 20 years, a £100m contract over eight years will get under way initially as part of the city’s largest redevelopment ever. In this phase, a business district will be built on the former Vaux Brewery site which, apart from being an appended car park, has served only as a 26 acre city centre eyesore since

Tesco had finally agreed to sell up and instead develop a new store as the centrepiece of a mixed complex on an alternative site the council facilitated. Under a deal Sunderland agreed with the Government during 2014, the former brewery site should now be a major job creator. Shops, homes and a public square will also be developed nearby. Councillor Paul Watson, leader of the city council, states confidently: “The regeneration will ramp up the city’s ability to draw in new investment.” When Tesco finally ended the 10 year hiatus, £22m it picked up comprised £20m from the city

The regeneration will ramp up the city’s ability to draw in new investment the historic brewery’s sad closure in 1999. Behind delays in redeveloping was a planning wrangle between the site’s initial purchaser Tesco and the regeneration company Sunderland Arc, which disliked the supermarket giant’s proposals for the site. Last year, though, improvement of infrastructure around the site grandly overlooking the River Wear began.

council’s development partner Homes and Communities Agency, while the now defunct regional development agency One North East and the city council chipped in £1m each. So while the city’s finances got off relatively lightly – apart from losing revenue an earlier development might have brought – the taxpayer mainly took the brunt.

Now the mammoth facelift will coincide with the launch of a nationally significant digital centre in the city. City centre improvements will also result from the recent formation of a Business Improvement District. This, plus a reviving port and the eventual emplacement of an additional central bridge across the Wear (connecting industrious Washington faster), promises a more efficient and attractive city. Igloo Regeneration is providing development and asset management. Siglion is also taking over an investment portfolio of industrial, retail and office properties acquired from the city council. These are expected to appreciate under Siglion and create jobs. Attempts to get the new bridge started have resumed. The city council is seeking potential builders of a structure now modified to 85m, from 132m earlier that would have made it the tallest in England or Wales. Rising costs thwarted this, and a £120m alternative had contractors withdrawing on grounds of risk perceived in building independently curved freestanding bridge pylons. Now the plan is for an A-frame pylon, cable-stayed structure – though the council has kept an open mind on further alternatives. n

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A BETTER RUN FOR OUR MONEY At last it’s being acknowledged by government that the North East needs better road and rail facilities. The Government’s pledge of big road and rail improvements in the North East this year and next follows a dark period in which public transport spending in London ran at £2,598 a head compared with £5 in the North East. It has also followed intense lobbying by organisations such as the CBI, the EEF and bodies reliant on infrastructure work, also by a view from the North

East travelling public that they can reach Dubai quicker now than they can some other parts of Britain. The economy of South East England is the strongest of all. That was a long obvious consequence of joining the EU. But immense pressure there on housing, transport and energy networks burdens the rest of the country too. Consider the South East’s housing shortage inflating house prices generally. The North East, while it too has housing difficulties, is building

more new homes than many places, the National House Building Council reports. Greater opportunity exists for economic and social growth in the North East, given the right infrastructure. The Civil Engineering Contractors’ Association is one of many bodies pointing it out. Regional director Douglas Kell repeatedly recalls that for every 1,000 jobs created in building infrastructure, employment as a whole rises by 3,053 jobs. And every £1bn of

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infrastructure created raises economic activity by £2.842bn. So at last roads of the North East and Yorkshire are getting 18 new schemes worth around £2.3bn in total. Welcome news indeed, promising 1,500 jobs for the stricken construction industry – and better passage for road transport, particularly with extended dualling of the A1 through Northumberland. Improvements to the A1 and A19 around Newcastle, Gateshead, Sunderland and Wynyard on Teesside will all benefit traffic flows. But it’s the £290m upgrade to expressway of the A1 from Morpeth to Ellingham (giving

built environment 34 miles in all of that standard from Newcastle) that’s probably the prospect most appreciated. Lesser improvements from Ellingham to the Scottish border will help that 23 mile stretch and hopefully serve short-term pending total upgrade. Improvements are “to be considered” for the A66 and A69, key routes to the North West for North East ports – possibly reducing pressure also on the M62 further south. But it’s taken 40 years to get another bit of Northumberland’s A1 dualling approved, two years more maybe before work will actually start and

another 10 perhaps to complete still leaving some 23 miles to do. How long would the Romans have taken? As Westminster struggles to improve relations with Scotland after the near vote of divorce, it’s worth recalling that the Romans recognised a political as well as military value in building roads properly. Though Berwick is an important gateway to Scotland, the North East is the only part of the country not connected by continuous motorway, a fact sometimes blamed for surviving rivalries between Tyneside, Teesside and Wearside. n

it’s taken 40 years to get another bit of Northumberland’s A1 dualling approved

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built environment

overview

TRAIN PLANS GATHER SPEED Overdue improvement in train travel is coming through state investment also in new rolling stock for rail franchises in the North of England. Modern vehicles will replace on Northern Rail and Trans-Pennine Express routes outmoded ‘pacer’ train introduced between 1980 and 1987 to end a ‘temporary’ shortage of rolling stock. The franchises have been carrying more than 110m passengers a year less comfortably than many would have wished between Leeds, Liverpool, Sheffield, Manchester and Newcastle, and onwards to Edinburgh and Glasgow. Currently the future franchises for both Northern routes are being considered, with winners likely to be known in October. Before that, on 1 March, a private joint venture between Stagecoach and Virgin will take over the East Coast Main Line rail route, having won that franchise from the state-run East Coast operator. The firms, which already operate on the West Coast main line, promise to invest £140m in the East Coast route over eight years, seeking to fulfil their contract where two private firms failed previously. East Coast, the franchisee since 2009, was healthily in profit, but the Treasury desperately needs the £3.3bn paid to narrow, however slightly, the nation’s economic deficit. The Stagecoach and Virgin consortium, Inter City Railways, plans 23 new services to and from London, and 3,100 extra seats at morning peak time - by 2020. It is 90% owned by Stagecoach, but trains will be branded Virgin Trains East Coast. Pledges to the North East include:

• Shorter journey times between Edinburgh and London • New direct links between London and Sunderland, Middlesbrough and Thornaby • More trains to London from Newcastle, and • 65 ‘state of the art’ intercity express trains coming into passenger service from 2018, with 500 new carriages. It’s argued, insipidly so far, that if England’s £50bn HS2 railway project must come too, its construction, to meet declared aims of improving the nation’s economy, should begin in Scotland and the North East, working southwards. A KPMG report says,

lines for regional commuters, there’s strong opinion HS2’s £50bn could be better spent on existing and revived routes around the nation - electrifying the Carlisle-Newcastle run, for example. It’s hard to discredit the revivalists since the disused routes championed, with containerisation now available, would also take many costly goods removals off motorways. It’s also hard to justify not re-opening a Leamside line putting Washington on the Metro map, as millions of pounds already pour into Washington, in search of further business development and jobs. Signatures by the thousand are on a residents’ petition urging a Metro

Yet already the concept gobbles down money on behalf of geographical haves rather than have nots in effect, the lion’s share of boosted economic output expected of HS2 would go to the South East. The North East would be a region with least HS2 connectivity for business by 2037, with no economic improvement resulting. Trains like HS2, critics point out, have done little to create long term jobs and regional improvement elsewhere - even in France. Many train travellers today would not be around to see its 2033 start. Yet already the concept gobbles down money on behalf of geographical haves rather than have nots. HS3, an HS2 afterthought, will benefit primarily Manchester, Leeds, Sheffield and Hull. Within North East councils that have set aside £30m towards re-opening disused

service in Washington. Nexus, currently investing millions into modernising its existing system, wants to add 20 stations to the existing network of 60 by 2030. Leamside line, almost reaching into Durham, would be an ideal start brought forward. Similarly, re-opened lines north of Newcastle would benefit commuters in the like of Blyth and Ashington, whose local economies are still recovering from the rundown of old industries. The Teesside area has a much improved bus system. But neither that, nor the direct East Coast main line connections promised to Middlesbrough and Thornaby years hence, would close the case for Teessiders having the sort

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built environment

overview

of fast transit local railway service that Tyneside has enjoyed for nearly 35 years now. As Sandy Anderson, chairman of Tees Valley Unlimited, told The Sunday Times: “It’s not just the big ticket high speed projects that are required.” Jim O’Neill, former chairman of asset management at Goldman Sachs in his

report for the City Growth Commission, has illustrated how the UK economy is being held back through decisions on local transport and infrastructure being retained by Whitehall officials. He, it is, who has urged the creation of a Northern Powerhouse to counter failures such as in transport over many years.

Six chambers of commerce across all the North, including that of the North East, have got behind six major authorities of the same area, including Newcastle’s, for a One North body planning the connectivity and infrastructure. This £15bn projection, through the chambers’ backing, brings support of 12,000 businesses. n

PLENTY OF ROOM FOR NEWCOMERS

Heart transplant: South Shields is getting a major overhaul as its Market Square goes 21st Century but retains its tiny 18thC old town hall

An improving economy has industrial firms expanding again, thus a shrinking choice of ‘sheds’ to choose from. But opportunities arise at Team Valley in Gateshead and, longer term, Highbridge Properties will lead development of the 82 acre Indigo site near its office based at Cobalt Park on North Tyneside. Cobalt, as a recent BQ quarterly suggested, already complements Silverlink Retail Park in a neat suggestion of a 21stC new town, even more so as Crown Estates plans a £29m expansion of Silverlink for further retail. Pockets of opportunity

throughout the region likewise exist for office needs where, on Tyneside, Cobalt and Quorum business parks are pacesetters. Business parks with options available are also strategically spaced around East Northumberland, Birtley, Sunderland, Durham, Newton Aycliffe, Peterlee, Seaham, Eaglescliffe and Darlington. Town centres too are promised upgrades: South Shields notably, whose Market Square – a drab outcome of a wartime blitz – will get a totally modern appearance, featuring a new central library and media

centre, which will overlook an already transformed riverside area. The tiny 18thC old town hall there will also be retained. The redevelopment of The Gates, the 40-year-old Durham City shopping centre, will include a cinema, restaurants and a promenade alongside the River Wear. The Gates, which fell into administration, has been bought by London developer Clearbell Capital LLP for almost £12m. Meanwhile there has been lots of award winning improvement and safeguarding on Teesside’s coastline. Balfour Beatty won the Project of the Year accolade from the Civil Engineering Contractors Association (North East) for its protection to 978 homes and 209 commercial properties that had been threatened by sea flooding and the 30cms a year coastal erosion at Redcar. Altogether £75m is being spent on coastal management and seafront regeneration there, while at neighbouring Saltburn another civils firm, JN Bentley, tackled seaside pollution caused by water discharged from abandoned ironstone mines nearby. n

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built environment company profile

2014 PRODUCES STEP CHANGE IN TURNOVER AT ESH GROUP WITH POSITIVE RESULTS BUT NOT WITHOUT CHALLENGES 2015 Outlook optimistic for continued improvement for construction in general At Esh Group we have seen a considerable improvement across all areas of construction in 2014 but it has been more prominent in the housing sector both social and for sale. This has brought its own challenges in gearing back up to pre 2008 levels, with supply chains in particular bricks and blocks finding it difficult to cope and a shortage of skilled labour. No doubt across the industry many schemes will be running behind programme and budget as prices start to escalate due to material and labour pressures. On the flip side there is unusually agreement across all political parties that we need to build more houses and we are falling well behind the nation’s requirements. To put this in context we are maybe only producing 50% of what is required with an anticipation of some 120,000 houses across all sectors completed in 2014. Can you imagine the activity levels if output was doubled to meet the real requirements? This could only be achieved by a consistent approach by government to the housing market with a long term commitment to; invest in social housing, provide guidance to mortgage providers that uses common sense to

Esh are committed to ‘Added Value’ via our many schemes, working with young people to make them employable and supporting communities in which we work support the market, giving guarantees to help buyers taking regard to the risks involved, freeing up public sector land for development and continuing the efforts of the last few years to support a presumption towards development

planning system. These are just a few of the factors that would help. Obviously 2015 has a further factor in that it is an election year and with that comes uncertainty and generally a slowdown in activity at least over the

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built environment company profile first 1-2 years of the new term, so there could be a side wind here that slows the recovery. We need whoever is elected to hit the ground running and keep the industry on track. Then from supply chain to contractors to developers would be prepared to invest in the future both in capacity of supply chain which involves manufacturing and an increased investment in people who are so important to drive the process. The construction industry could then be better sold as a long term career prospect to apprentices, graduates and skilled people with complimentary industry experience. We certainly need to improve our game in this area, demographics tell us that there will be a shortage of young people available to the labour market going forward and there is also the question of improving the employability skills of those leaving school. All businesses need to get a message over to young people that if you work hard at school then there will be work available and the benefits of work are massive. This does not just apply to the academics but get a basic level in Maths and English and show the right attitude and anything could be possible. The housing market is a massive driver of Industry but Construction is more than just housing and if the other sectors continue to show the improvements over the last 12 months then this can only strengthen the foundations but again the key is long term workload that allows those involved to think and plan well ahead. We at Esh are well represented by our various brands across most sectors of construction (individual projects up to ÂŁ10m) and whilst some areas such as commercial development still lag

Brian Manning, Chief Executive, Esh Group

behind there are signs of improvement. Our biggest driver aside from Housing is our civil engineering operation represented by Lumsden & Carroll which operates across all areas including utilities, environment, infrastructure and public realm. This area is strong and this bodes well for the industry in general as these types of schemes tend to pave the way for further development. At Esh we have already made the decision that despite the side winds we will take more long

term decisions, this can be seen in our decision to take on 150 apprentices over the next 3 years and this has started with the first intake all ready in place. We cannot afford not to invest in our future workforce We are also looking over the next 12 months to invest in our offices and depots across the North and Scotland to create a better working environment for our people. Construction is certainly an exciting place at the moment. n

training & recruitment In association with

While the jobs market is loaded with uncertainties going into 2015, the battle for the best talent is as intense as ever in the North East. Meanwhile, activities to improve standards in recruitment and keep the brightest minds within the region are finally clicking into gear.

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training & recruitment

GOOD FOR BUSINESS, GOOD FOR CANDIDATES A new Good Recruitment Charter aims are to promote good practice right across the UK and is well worth adopting, Lee Rankin suggests The latest KPMG/REC findings on jobs confirm we are into a period of relative stagnation in relation to demand for permanent staff, a key barometer on the health of the economy. The North East’s picture reflects the wider UK trend, albeit slightly worse when looking at both of the key measures – overall demand for permanent staff and permanent placements made across the recruitment industry. We are still experiencing growth across both metrics as we enter 2015, but it is growth steadily declining, and permanent placements in November reached an 18 month low. This, added to an unexpected fall of investment in the UK during Q3 has prompted some commentators to suggest a possible shift toward a more negative outlook for the jobs market in 2015. But despite this worsening outlook, candidate availability for permanent vacancies continues to fall across all parts of the UK with almost two years of consecutive contraction. The picture in engineering, finance, executive and professional services such as IT is particularly difficult, with the findings in this report backing up our observations on the ground where intense competition for the best talent shows no sign of relenting. Securing the best talent remains a major priority for organisations across the UK and is starting to influence marketing

planning and behaviour. At GEM, we have seen a marked shift among clients towards reaching out to the candidate marketplace ever more pro-actively, with support for employer branding now becoming a key attribute in external recruitment service delivery. A true collaboration between client and recruiter can make a huge difference in facilitating a positive impression of an organisation to talent. It’s something we at GEM fully embrace, whether for a specific campaign or for a sustained pro-active partnership. I attended a recent talk by Kevin Green – chief executive officer of the Recruitment and Employers’ Confederation – who launched a national initiative which, for me, has potential to impact significantly on an organisation’s employer-ofchoice brand recognition. The Good Recruitment Charter’s aims are to

promote good recruitment practice right across the UK economy, provide a mechanism to benchmark against accepted levels of best practice, and actively share good practice and innovation in recruitment and resourcing with employers. Candidate experience is a crucial aspect of building a positive employer brand, but facts suggest many organisations are failing to engage positively with their target audience. Despite its importance, there is a substantial effectiveness gap with many aspects of the candidate experience which, in our social media driven economy, is likely to impact negatively on the potential for an organisation to attract the best talent consistently over time. The campaign, created by employers for employers, exists to promote the critical importance of good recruitment practice in sustained organisational success. It’s an initiative we at GEM are keen to promote with our clients in 2015. Royal Mail, Santander, NHS and Kelloggs have already signed up, with many more likely to follow. Find out more at www.rec.uk.com/aboutus/policy-and-campaigns/the-goodrecruitment-campaign. n Lee Rankin is managing director of GEM Partnership, which operates from Newcastle, Newton Aycliffe and Peterlee.

Andrew Hodgson: Skills hunter

GRADUATES ENRICH THE CHOICE The North East is finding new ways to keep its brightest minds within its borders, as Brian Nicholls reports

Job opportunities for graduates are improving in the North East, a university guide’s assessment suggests. It chimes with Mark Lintern, director of Newcastle University’s careers service, who says nearly half of his university’s graduates are now finding work in the North East. From the employers’ point of view the good news is that universities of the region are also intensifying their persuasion of graduates to seek a career here. This is being done through hundreds of internship placings and a new business start-up fund. Internships often lead to full time jobs for the graduate who has completed his or her stay with a company. Professor Julie Mennell, deputy vice-chancellor of University of Sunderland, which has made available some 500 graduate-level jobs and paid internships, says it is hoped the

project will contribute towards easing the skills shortage affecting economic productivity in the region. Most North East firms recently surveyed have been optimistic about growing their workforce during 2015. Small and medium size companies, and those in the media and creative services, utilities, IT and telecommunications have been the most positive. Many companies recognise that poaching only pays a limited dividend in the region’s labour and skills shortage. Hence at nongraduate level they urgently want the education system to prepare young people better in attitudes and attributes needed for success at work. A survey of 291 firms employing nearly 1.5m people suggests 61% are concerned about the resilience and self-management of school leavers, and 33% about their attitude to work.

By contrast, nearly 96% of firms are satisfied with young peoples’ IT abilities on coming to a job. The check by CBI/Pearson Education and Skills Firms suggests business wants primary schools to focus on developing literacy and numeracy (85%). More than half (52%) also want schools to develop more awareness of working life among 14-19 year olds - with support from business. Companies are prepared to play their part. Two-thirds interviewed (66%) showed willing to take on a larger role in the school careers system. Baroness Brady, Prime Minister Cameron’s small business ambassador and Lord Sugar’s right hand woman on The Apprentice, along with LifeSkills created with Barclays, the Federation of Small Businesses and some of the UK’s largest employers are among many calling on

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the Government to make key policy changes to help young people into work. Research from LifeSkills with SMEs found: • Young people at entry level lack a range of basic skills • Two in four are worried about them using their mobile phone while at work or taking breaks for too long • Nearly half are worried that they lack time management and punctuality skills LifeSkills Youth Barometer research also found that: • Nearly nine in 10 young people completing a work placement said they had learnt something new in a new field • But almost a third had been unable to complete a placement in their chosen field - four in 10 blamed not

training & recruitment enough work opportunities in my local area” Feedback from BQ Live Debates and other sources suggests many schools are tackling the question of young people’s attitudes and attributes, and encouraging steps are being taken in other ways, notably a North East schools challenge, underpinned with £30m of government support, based on a similar programme in London. This is expected to boost underattainment and equip young people with the skills needed to find a job. Andrew Hodgson, an outstanding industrialist and vice-chairman of the North East Local Enterprise Partnership, who has special responsibility for skills, says: “We have to make sure people understand the North East has been very successful in creating jobs. A

number of sectors are growing quickly, and we are now running out of people with the right skills to help those sectors continue to grow.” A new school in Newcastle guarantees students completing their education a place at university, a job or an apprenticeship. Studio West’s atmosphere is more that of a workplace than a school and the model is based on a highly successful High Tech High in California. It’s one of 13 such schools being developed. More than half of the curriculum is practical and work based. And South West Durham Training, helping manufacturers and engineers to persuade young school leavers and their families that good futures await girls going down that career road, is offering engineering workshops for girls aged 13 to 16. n

THEY CAN’T ALWAYS KEEP A GOOD MAN DOWN Like homing pigeons, talented executives who migrate from the North East for better prospects can often be tempted back again in time. Community spirit is stronger among high net worth individuals in the North East compared with any other region, according to a survey by Barclays Wealth and Investment Management. It showed 52% who had moved country from this region still identified strongly with it – the highest across the country. Andrew Miller, regional director of the company in Newcastle, says: “This innate sense of belonging and loyalty is testament to what a fantastic place the region is to live, do business and raise a family in. “As borders open up, and advances in technology make the world more

connected, we’ll no doubt witness off greater numbers of wealthy individuals planning to move themselves, their families and their businesses to new destinations. But the North East is still a hub for business, entrepreneurial activity and wealth creation, and there’s no sign of that changing any time soon. More than one in five wealthy individuals of the region plan to move country within years, the global survey of more than 2,000 members of affluent society suggests. Some 41% of wealth accumulators in the North East have already lived in more than one country - and 20% have lived in three or more. The most common destinations are the USA (33%), France (29%) and Singapore (14%). And, says Miller, 54%

these individuals expect their children to live in more countries than they have done. Migration simply to London may be tempered by the average home there now costing three and a half times one equivalent in the North East – the widest gap in the country – but where quality of life is unlikely to be similarly greater although, certainly in central London, incomes can be four and a half times those in Tees Valley and County Durham. So high flyers taking to expat life are likely to resettle back home one day. Whether they can be persuaded back into regional management rather than just living off their wealth may require persuasion in some cases, but attractions outside the actual job are already here to exploit. n

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training & recruitment

overview

JILL’S A SKILLED STAR OF THE CENTURY Jill Cormack is the North East’s top plumbing apprentice and a star among the 120% increase in the number of people starting apprenticeships in the North East under the present government. The 27-year-old from Boldon, who studied at Gateshead College, is the first female to be top plumbing apprentice in the 101 year history of the Chartered Institute of Plumbing and Heating Engineering and its regional awards. Jill was a call centre worker before enrolling on a four-year advanced apprenticeship at the college. She installs facilities in Gateshead Council houses and spends one day a week developing her skills at the college recently named Best Plumbing College in the North East by the CIPHE. She worked in administration and customer services for EDF Energy, Gateshead Housing Company and two other North East property maintenance firms before securing her present position. “I always wanted to be a plumber,” she says. Judith Doyle, principal and chief executive at Gateshead College, says: “Jill is talented. It’s fantastic her hard

Jill Cormack: a talented achiever

work has been recognised.” North East apprenticeships have doubled in eight years. In the four years to 2009/10, 65,030 people began an apprenticeship compared with 143,300 since. In England as a whole, the total now tops 2m. Deputy Prime Minister Nick Clegg has observed: “Gone are the days when a vocational education was seen as the poor relation in choosing a career path.” The ratio of benefits to costs of apprenticeships is £21 for the national economy for each £1 of public money spent, the Centre for Economics and Business Research reckons. This figure includes gains to the economy from higher wages, business profits and

taxes of £31bn a year, an estimated reduction in unemployment benefit payments of £370m a year, and benefits to organisations while training apprentices of £1.9bn a year (at 2014 prices). Seven companies in the North East figure among the country’s top 100 for taking on apprentices: SCA Hygiene manufacturing tissue products at Prudhoe, South West Durham accountants Mitchells Grieveson, EE & M Zone in Newcastle, and three housing groups - Bernicia, Living Housing and Cestria Housing. n

THERE’S NONE BETTER North East folk are the best workplace attenders, according to a health survey. More than 55% of them took no time off due to illness over two years, compared with a national average of 51%.

bqlive.co.uk overview

training & recruitment

SHAPING UP TO NEW OPTIONS Major steps are being taken to upskill workforces in the region’s fast growing industries. Fears of skills poaching between automotives and the growing rail industries have been understandable – especially since 1,000 existing rail workers may retire over five years. However, two railway training centres opening should counter this. Newcastle College will have a sector specific academy, supported by Nexus and London Underground, while a £10m

university technical college will be instructing up to 600 entrants to the vehicle building side of industry at Newton Aycliffe from 2016. The Newton Aycliffe college, under aegis of University of Sunderland, has backing from Hitachi and neighbouring car parts manufacturer Gestamp Tallent. Gestamp wants to create 300 posts and there will be 730 jobs to fill at Hitachi. At South Tyneside College, a £3.5m investment is bringing an advanced training centre for manufacturing. And

the wider opportunity existing in careers is evident in Sunderland. Tombola working with Sunderland College is to train a new generation of high-tech talent. Sunderland Tombola, a printing firm founded 50 years ago and which made bingo cards its niche, is now Europe’s market-leading bingo operator with massive online growth. Chief executive Phil Cronin puts the success down to intellectual property designed and developed in the North East. n

HELPING TOMORROW’S WORKFORCE Colleges are a rich mine of human resources for businesses. And businesses can be a rich mine of material resources for colleges. A £12m training centre for engineers at Middlesbrough College recently received a donation of plant equipment - worth tens of thousands of pounds - from the utilities giant Sembcorp. It included pumps, valves, pipework, filters, exchangers, coolers, heaters, fixings and fasteners, instrumentation and controls, bearings and a considerable amount of storage racking. George Ritchie, Sembcorp’s senior vice-president for human resources, says the gift was to show his company’s commitment to the STEM Centre there and appreciation for a “massive leap of faith” the college is taking on behalf of the region and its employers. The equipment became available with the closure after more

The handover: (left to right) Patrick Pogue, Sembcorp’s assistant vice-president in business development, Ian Smith, Middlesbrough College’s STEM director, Zoe Lewis, the college principal and chief executive, and George Ritchie, Sembcorp senior vice-president for human resources than 60 years of Boiler 6 - a coalfire unit at Wilton Power Station. “It’s a critical time for industry on Teesside, and the STEM Centre will be vital in bridging the skills gap locally and across the region providing traineeships, apprenticeships, higher

apprenticeships and bespoke training for companies,” Ritchie added. • Does your company or organisation have redundant but still useful for training equipment that a nearby college or school would welcome? n

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training & recruitment company profile

IT’S THE PEOPLE BEHIND RECRUITMENT THAT REALLY MATTER Availability of skilled talent has become an increasingly important theme on many business agendas. Countless organisations struggle to attract the right talent and this is reportedly due to a shortage of appropriate skill-sets. Availability of skilled talent has become an increasingly important theme on many business agendas. Countless organisations struggle to attract the right talent and this is reportedly due to a shortage of appropriate skill-sets. Recruiting suitably skilled employees is a key challenge for business and when companies do attempt to tackle this issue, one common question arises: where does the responsibility lie, is it with big business, educational establishments, recruitment partners, or training providers? The answer can be found through a collaborative approach to the issue. Where there is evidence of partners working together, relevant talent is produced - skilled professionals that support not only businesses but also the economy as a whole. Recognising and working to address the skills gap is a key business area for NRG. The team is involved in a number of initiatives to encourage the growth of the region’s talent; taking an active role in youth apprentice schemes and scholar development.

Chris Rigg, Chief Executive, NRG

ADDRESSING THE SKILLS GAP IN THE WORK PLACE Software business Bede Gaming is tackling the discrepancy between the needs of employers and the abilities of current jobseekers with the launch of its own training academy, which will introduce 20 new apprentices into the digital industry every year. NRG is working closely with Bede to support their apprenticeship scheme in an attempt to train and equip the next generation of talent in the IT sector.

This collaboration comes amid a widening digital skills gap, which is becoming a significant barrier to the growth of some businesses. The Bede Academy will nurture new IT and software development talent to help facilitate the growth of skilled employees. Bede’s Chief Technical Officer, Alex Butcher said the development will play an important role in enabling the region to meet its talent demands, “the North East has a serious shortage of

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training & recruitment company profile

workers equipped with the right IT skills. At Bede, more often than not we are looking further and further afield to unearth the individuals we need. Nurturing our region’s talent through apprenticeships is vitally important to safeguard our long-term future and the Bede Academy will provide exciting opportunities to rising stars in the industry”. EDUCATION IN PARTNERSHIP WITH INDUSTRY NRG is proud to support Newcastle’s Discovery School, a revolutionary new industry-driven technical school for 14-19 year olds, where students are actively encouraged to study science, technology, engineering, and maths (STEM). The school offers a unique learning experience that looks, feels, and operates more like a high tech engineering facility than a traditional secondary school. There is a growing skills shortage of trained engineers and technicians in the UK and Discovery School will help to overcome this challenge by preparing young scientists and specialists, which are critical to the UK’s growth and prosperity. This pioneering venture will bring a welcome boost to the UK’s future workforces and it has placed a spotlight upon the skillsets that are critical to our country’s development and success. With the right tools and

support, this type of education will become the foundation of sustainable economic growth. GRADUATE AND UNDERGRADUATE PROGRAMMES Work-based business degrees are now a central element of higher education. Students graduate with the business skills employers are looking for including the ability to work under pressure, understand strategy, work in teams, and communicate effectively. NRG work in collaboration with Northumbria University to deliver the work-based element of the Business Leadership and Corporate Management BA (Hons) course. Students that work at NRG Headquarters in Newcastle-upon-Tyne develop knowledge and understanding of management, marketing, HR and finance whilst developing personal effectiveness through working in a full-time paid position. This approach to learning is having a positive impact on industry, demonstrated by the performance of post-grad students that significantly surpasses that of other degrees. The experience gained greatly enhances the graduates’ employment opportunities; many of NRG’s students will be offered valuable and influential roles with the organisation after graduation.

“These graduate programmes are a respected alternative to pure academic study and like NRG many organisations are investing in this area. These schemes give businesses the opportunity to play an active role in the development of the next generation of skilled workers. Time spent in employment inspires students and helps to prepare them for work; producing professionals who are equipped to take the lead when they finish their studies” Leanne Chambers, Business Manager, NRG. HELPING THOSE WHO ARE AT THE BEGINNING OF THEIR JOURNEY The skill set of the next generation determines the success of our region’s future. Individual businesses can create ties and develop individual talent but through collaboration, we can really empower change. Through these schemes and a proactive approach, NRG is working to develop the region’s workforce of the future. NRG look forward to working with many other businesses and education providers and forging close relationships with the undoubtedly exceptional talent that is produced by these fantastic projects. n NRG, Lloyds Court, 56 Grey Street, Newcastle upon Tyne, NE1 6AH 0191 232 1222 recruitment@nrgplc.com www.nrgplc.com

Educational establishments, businesses, recruitment firms and training partners must work in collaboration to safeguard the region’s future success. At NRG, we are investing in a number of projects that will help to secure a reliable and stable workforce for the region. We will continue to work in collaboration with industry and educational establishments to forge bonds and develop the talent needed to support the UK’s growth and prosperity.

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whoâ&#x20AC;&#x2122;s who Helen Ager

John Anderson CBE

EXECUTIVE PARTNER MAIN BUSINESS: Legal

CHAIRMAN MAIN BUSINESS: Business space and consultancy services DWF, Great North House, Sandyford Road, Newcastle upon Tyne, NE1 8ND 0191 233 9700 helen.ager@dwf.co.uk www.dwf.co.uk

Katherine Aitken EVENT PRODUCTION MANAGER MAIN BUSINESS: Audio visual & event production Big Purple Productions Ltd, Unit 36 Stella Gill Industrial Estate, Pelton Fell, Chester Le Street, DH2 2RQ 0191 388 0988 katherine@bigpurple-productions.com

Wearfield, Enterprise Park East, Sunderland, SR5 2TA 0191 516 6200 john.anderson@bicne.co.uk www.ne-bic.co.uk

Sandy Anderson CHAIRMAN MAIN BUSINESS: Public and private sector Local Enterprise Partnership for Tees Valley Tees Valley Unlimited, Cavendish House, Teesdale Business Park, Stockton on Tees, Tees Valley, TS17 6QY 01642 524 400 www.teesvalleyunlimited.gov.uk

Shelagh Alderson

David Armstrong

HOSPITAL DIRECTOR MAIN BUSINESS: Hospital

DIRECTOR MAIN BUSINESS: Commercial management consultancy

Spire Washington Hospital, Picktree Lane, Rickleton, Washington, NE38 9JZ 0191 415 1272 info@spirewashington.com www.spirewashington.com

James Allen MANAGING DIRECTOR MAIN BUSINESS: Creative marketing communications Guerilla, 4 St James Street, Newcastle upon Tyne, NE1 4NF 0191 261 9799 james@guerilla.co.uk www.guerilla.co.uk

Armstrong Consultancy Services (ACSL) Ltd, Wellington House, Westminster Business Centre, Wynyard Business Park, Wynyard, Teesside, TS22 5TB +44(0) 1740 665 010 / +44(0) 793 902 8044 dave@armstrongcsl.co.uk www.armstrongcsl.co.uk

Shirley Atkinson INTERIM VICE-CHANCELLOR AND CHIEF EXECUTIVE MAIN BUSINESS: Higher education Edinburgh Building, City Campus, Chester Road, Sunderland, SR1 3SD 0191 515 2013 shirley.atkinson@sunderland.ac.uk www.sunderland.ac.uk

bqlive.co.uk

who’s who Richard Blackett

Aidan Baker DIRECTOR MAIN BUSINESS: Real estate consultants

DIRECTOR MAIN BUSINESS: Independent financial advisers & wealth management specialists

BNP Paribas Real Estate, One Trinity Gardens, Broad Chare, Newcastle upon Tyne, NE1 2HF 0191 227 5737 aidan.baker@bnpparibas.com www.realestate.bnpparibas.co.uk

Dame Margaret Barbour CHAIRMAN MAIN BUSINESS: Manufacturer & retailer of lifestyle clothing and footwear

Blackett Walker Ltd, BW House, 2/3 Park Road, Gosforth Business Park, Newcastle, NE12 8DG 0191 653 1025 info@blackett-walker.co.uk www.blackett-walker.co.uk

Jonathan Blair MANAGING PARTNER MAIN BUSINESS: Law firm Bond Dickinson LLP, St. Ann’s Wharf, 112 Quayside, Newcastle upon Tyne, NE1 3DX 0191 279 9219 info@bonddickinson.com www.bonddickinson.com

J Barbour & Sons Ltd, Simonside, South Shields, Tyne & Wear, NE34 9PD 0191 455 4444 info@barbour.com www.barbour.com

Mike Baxter

Shawn Bone

TAILORING MANAGER MAIN BUSINESS: Retail

CORPORATE FINANCE DIRECTOR MAIN BUSINESS: Corporate finance Psyche, 175 - 187 Linthorpe Road, Middlesbrough, TS1 4AG 01642 707290 mbaxter@psyche.co.uk www.psyche.co.uk

Cavu Corporate Finance, City Quadrant, 11 Waterloo Square, Newcastle upon Tyne, NE1 4DP 0191 255 7772 shawnbone@cavucf.com www.cavucf.com

THE UK’S PREMIER RETAIL DESTINATION

Gary Boon

Vinay Bedi EXECUTIVE DIRECTOR MAIN BUSINESS: Wealth management UBS Wealth Management, 2 St James’ Gate, Newcastle upon Tyne, NE4 7JH 0191 211 1015 vinay.bedi@ubs.com www.ubs.com/uk

CEO MAIN BUSINESS: Digital strategy, mobile, web development and digital marketing Shout Digital, Keel House, Garth Heads, Newcastle upon Tyne, NE1 2JE 0191 231 2377 gary@shoutdigital.com www.shoutdigital.com

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who’s who Dr Harry Bradbury

Margaret Byrne

CHAIRMAN AND CEO MAIN BUSINESS: Energy company - unconventional gas

CHIEF EXECUTIVE MAIN BUSINESS: Football club Sunderland Association Football Club, Stadium of Light, Sunderland, SR5 1SU 0871 911 1200 enquiries@safc.com www.safc.com

Five-Quarter, Rotterdam House, 116 Quayside, Newcastle Upon Tyne, NE1 3DY 0191 206 4092 hbradbury@five-quarter.com www.five-quarter.com

Andrew Bradley SHOPPING CENTRE DIRECTOR MAIN BUSINESS: Real estate The Bridges Shopping Centre, Upper Market Square, Sunderland, SR1 3DR 0191 515 4880 Andrew.bradley@bridgessunderland.co.uk www.thebridges-shopping.com

Glen Callander STRATEGIC DEVELOPMENT PARTNER MAIN BUSINESS: Business finance solutions Hitachi Capital (UK) PLC, 5 Hollinswood Court, Stafford Park 1, Telford, Shropshire, TF3 3DE 07867 373700 Glen.callander@hitachicapital.co.uk www.hitachicapital.co.uk/factoring

Jonathan Brown

Stephen Carmichael

MANAGING DIRECTOR MAIN BUSINESS: Wealth management

RELATIONSHIP DIRECTOR MAIN BUSINESS: Provides corporate banking services to trading businesses between £25m and £50m turnover

UBS Wealth Management, 2 St James’ Gate, Newcastle upon Tyne, NE4 7JH 0191 211 1003 jonathan.brown@ubs.com www.ubs.com/uk

Stephen Catchpole

Sean Bullick CHIEF EXECUTIVE MAIN BUSINESS: Business improvement district company Newcastle NE1 Ltd, Suite D3a, Milburn House, Dean Street, Newcastle upon Tyne, NE1 1LE 0191 235 7094 sean.bullick@newcastlene1ltd.com www.newcastlene1ltd.com

Santander UK, Tyne & Wear Corporate Banking Centre, Level 9, Baltic Place, Gateshead, Tyne & Wear, NE8 3AE 07808 397625 Stephen.carmichael@santander.co.uk www.santander.co.uk

MANAGING DIRECTOR MAIN BUSINESS: Public and private sector Local Enterprise Partnership for Tees Valley Tees Valley Unlimited, Cavendish House, Teesdale Business Park, Stockton on Tees, Tees Valley, TS17 6QY 01642 524 400 www.teesvalleyunlimited.gov.uk

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who’s who Nicki Clark CHIEF OPERATING OFFICER MAIN BUSINESS: Business information, events & commercial development programmes

Paul Crawley SOLICITOR MAIN BUSINESS: Corporate and Commercial – Business disposals and acquisitions/ Corporate Finance Transactions Gordon Brown Law Firm LLP, Hadrian House, Higham Place, Newcastle upon Tyne, 0191 389 5188 paul.crawley@gblf.co.uk www.gblf.co.uk

BE Group, Spectrum 6, Spectrum Business Park, Seaham, SR7 7TT 0191 426 6175 nicki.clark@be-group.co.uk www.be-group.co.uk

Laura Claughan

Kate Culverhouse

MANAGING DIRECTOR MAIN BUSINESS: Recruitment

CHIEF EXECUTIVE MAIN BUSINESS: Environmental charity

Block 1, St Cuthberts House, Aycliffe Business Park, Newton Aycliffe, County Durham, DL5 6DX 01325 77 85 35 info@whurk.co.uk www.whurk.co.uk

Grosvenor House, 29 Market Place, Bishop Auckland, Co Durham, DL14 7NP Telephone: 01388 662666 kate.culverhouse@groundwork .org.uk north.east@groundwork.org.uk

Steve Cochrane

Martyn Cuthbert

MANAGING DIRECTOR MAIN BUSINESS: Retail

MANAGING DIRECTOR MAIN BUSINESS: IT business solutions Ontrac Ltd, Floor 1, Baltimore House, Baltic Square, Gateshead Quays, Tyne & Wear, NE8 3DF 0191 477 4951 enquiries@on-trac.co.uk www.on-trac.co.uk

Psyche, 175 - 187 Linthorpe Road, Middlesbrough, TS1 4AG 01642 888333 steve@psyche.co.uk www.psyche.co.uk

THE UK’S PREMIER RETAIL DESTINATION

Pat Dellow

Linda Conlon CHIEF EXECUTIVE MAIN BUSINESS: Public engagement in science and the support of world class science in the region International Centre for Life, Times Square, Newcastle upon Tyne, NE1 4EP 0191 243 8200 linda@life.org.uk www.life.org.uk

AREA COMMERCIAL DIRECTOR MAIN BUSINESS: Commercial banking HSBC Bank plc, Maingate, Kingsway North, Team Valley Trading Estate, Gateshead, NE11 0BE 07767 006 679 patdellow@hsbc.com www.hsbc.com

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whoâ&#x20AC;&#x2122;s who John Dickson GROUP CHAIRMAN MAIN BUSINESS: Civil engineering. Construction contractor

Ken Dunbar CHIEF EXECUTIVE MAIN BUSINESS: City centre regeneration The Software Centre, Tavistock Place, Sunderland, SR1 2BP 0191 562 3130 ken.dunbar@bidsunderland.co.uk www.experienceithere.co.uk

Owen Pugh Group, Dudley, Cramlington, Northumberland, NE23 7PR 0191 250 0315 enquires@owenpugh.com www.owenpugh.com

Kathryn Dishman

Rob Dunbar

MANAGING DIRECTOR MAIN BUSINESS: Public Relations and social media consultancy

MANAGING DIRECTOR MAIN BUSINESS: Recruitment services

KD Communications, 24 Apex Business Village, Cramlington, NE23 7BF 07941 694702 kathryn@kdcommunications.co.uk www.kdcommunications.co.uk

GEM Partnership Ltd, 31- 33 Mosley Street, Newcastle upon Tyne, NE1 1YF 0191 244 6430 rob.dunbar@gempartnership.com www.gempartnership.com

Joe Docherty

Danielle Dunn

CHIEF EXECUTIVE MAIN BUSINESS: Education and training

OWNER AND MANAGING DIRECTOR OF DDCA MAIN BUSINESS: Digital marketing, web, design

NCG, Rye Hill Campus, Scotswood Road, Newcastle upon Tyne, NE4 7SA 0191 200 4011 joe.docherty@ncgrp.co.uk http://www.ncgrp.co.uk/

David Dunn

Judith Doyle PRINCIPAL AND CHIEF EXECUTIVE MAIN BUSINESS: Education and training Gateshead College, Baltic Campus, Quarryfield Road, Baltic Business Quarter, Gateshead, NE8 3BE 0191 490 2200 judith.doyle@gateshead.ac.uk www.gateshead.ac.uk

6 Mailing Court, Union Street, Newcastle Upon Tyne, NE2 1BP 0191 265 0205 dd@danielledunn.com www.danielledunn.com

CHIEF EXECUTIVE MAIN BUSINESS: Driving and supporting the growth of the software industry in the North East Sunderland Software Centre, Tavistock Place, Sunderland, SR1 1PB 0845 872 8575 david.dunn@sunderlandsoftwarecity.com www.sunderlandsoftwarecity.com

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who’s who Aidan Dunstan EXECUTIVE DIRECTOR MAIN BUSINESS: Wealth management

Andrew Elliot EXECUTIVE DIRECTOR MAIN BUSINESS: Wealth management

UBS Wealth Management, 2 St James’ Gate, Newcastle upon Tyne, NE4 7JH 0191 211 1006 aidan.dunstan@ubs.com www.ubs.com/uk

UBS Wealth Management, 2 St James’ Gate, Newcastle upon Tyne, NE4 7JH 0191 211 1013 andrew.elliot@ubs.com www.ubs.com/uk

Rachel Eade

Anne Elliott

NATIONAL AUTOMOTIVE SECTOR LEAD MAIN BUSINESS: Manufacturing business support, supply chain specialist

SOLICITOR & MARKETING PARTNER MAIN BUSINESS: Legal services Latimer Hinks Solicitors, 5-8 Priestgate, Darlington, DL1 1NL 01325 341 500 aee@latimerhinks.co.uk www.latimerhinks.co.uk

Wolverhampton Science Park, Wolverhampton, WV10 9TG rachel.eade@mymas.org 07968 025 406 www.mymas.org

Rob Earnshaw

James Ellis

DIRECTOR MAIN BUSINESS: Training and recruitment

ARTISTIC DIRECTOR OF THE NATIONAL YOUTH FILM ACADEMY MAIN BUSINESS: Filmmaking/Education

Arch 1, Hymers Court, Gateshead, NE8 2BA 0845 301 0041 rob.earnshaw@creativenorth.org www.creative-north.org

Gateshead International Business Centre, Mulgrave Terrace, NE81AN 07860 263207 james.e@creativenorth.org www.nyfa.org

Dominic Elsworth

Linda Edworthy DIRECTOR OF STRATEGY & INVESTMENT MAIN BUSINESS: Public and private sector Local Enterprise Partnership for Tees Valley Tees Valley Unlimited, Cavendish House, Teesdale Business Park, Stockton on Tees, Tees Valley, TS17 6QY 01642 524 400 www.teesvalleyunlimited.gov.uk

PATENT ATTORNEY, HEAD OF PRACTICE MAIN BUSINESS: Intellectual property law Hargreaves Elsworth, Cooper’s Studios, 14-18 Westgate Road, Newcastle-upon-Tyne, NE1 3NN 0191 269 5477 office@heip.co.uk www.heip.co.uk

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whoâ&#x20AC;&#x2122;s who Alan Fletcher

Mike Emery DIRECTOR OF EMPLOYER ENGAGEMENT INDUSTRY AND COMMUNITY PARTNERSHIPS MAIN BUSINESS: Education and training

MANAGING PARTNER MAIN BUSINESS: Law firm/professional services Square One Law LLP, Anson House, The Fleming Business Centre, Burdon Terrace, Jesmond, NE2 3AE 0843 224 7900 alan.fletcher@squareonelaw.com www.squareonelaw.com

Middlesbrough College, Dock Street, Middlesbrough, TS2 1AD 01642 333692 mg.emery@mbro.ac.uk

Leanne English

Fiona Fletcher

DIRECTOR, LEC CONSULTANCY MAIN BUSINESS: Communications support

MANAGING DIRECTOR MAIN BUSINESS: Events & association management

LEC Consultancy, Novus Business Centre, Judson Road, North West Industrial Estate, Peterlee, Co.Durham, SR2QJ leanne@lecconsultancy.co.uk www.lecconsultancy.co.uk

Echo Events & Association Management 14 Blandford Square, Newcastle Upon Tyne, NE1 4HZ 0191 241 4523 FionaFletcher@echoevents.org www.echoevents.org

Denise Fielding

Hilary Florek

OPERATIONS DIRECTOR, EAST DURHAM BUSINESS SERVICE MAIN BUSINESS: Business support

CHAIRMAN MAIN BUSINESS: Conventional and bulk cargo, car terminals, estates, cruise & ferries, logistics

EDBS, Novus Business Centre, Judson Road, North West Industrial Estate, Peterlee, Co.Durham, SR8 2QJ denise.fielding@edbs.co.uk www.edbs.co.uk

Brendan Flattery CEO UK & IRELAND MAIN BUSINESS: Global provider of Business management software Sage Group Plc, North Park, Newcastle Upon Tyne, NE13 9AA 0191 294 3000 brendan.flattery@sage.com www.sage.com

Maritime House, Tyne Dock, South Shields, Tyne and Wear, NE34 9PT 0191 455 2671 hilary.florek@portoftyne.co.uk www.portoftyne.co.uk

Chris Ford MANAGING DIRECTOR MAIN BUSINESS: Precision machining and pressing of components and assemblies for a range of industries Ford Aerospace Limited & Ford Component Manufacturing Limited, East Side, Tyne Dock, South Shields, Tyne & Wear, NE33 5ST 0191 454 0141 chris.ford@ford-components.com www.ford-components.com

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who’s who Geoff Ford MBE CHAIRMAN MAIN BUSINESS: Precision machining and pressing of components and assemblies for a range of industries

Jayne-Anne Gadhia CHIEF EXECUTIVE OFFICER MAIN BUSINESS: Financial services Virgin Money, Jubilee House, Gosforth, Newcastle upon Tyne, NE3 4PL 0191 285 7191 www.virginmoney.com

Ford Aerospace Limited & Ford Component Manufacturing Limited, East Side, Tyne Dock, South Shields, Tyne & Wear, NE33 5ST 0191 454 0141 geoff.ford@ford-aerospace.com www.ford-aerospace.com

Brian Foreman CORPORATE DIRECTOR MAIN BUSINESS: Corporate banking

Steve Gibson PRINCIPAL MAIN BUSINESS: Education

Barclays House, 5 St Ann’s Street, Quayside, Newcastle upon Tyne, NE1 3DX 07500 891071 brian.foreman@barclays.com www.barclays.com/corporatebanking

Newcastle Sixth Form College, Westmorland Road, Newcastle upon Tyne, NE4 7SA 0191 272 1001 www.newcastlesixthformcollege.ac.uk

Hilary French

Ian Gilthorpe

HEADMISTRESS MAIN BUSINESS: Education

SENIOR PARTNER MAIN BUSINESS: Law firm/professional services

Newcastle High School for Girls, Eskdale Terrace, Jesmond, Newcastle upon Tyne, NE2 4DS 0191 281 1768 seniorschooloffice@ncl.gdst.net www.newcastlehigh.gdst.net

Square One Law LLP, Anson House, The Fleming Business Centre, Burdon Terrace, Jesmond, NE2 3AE 0843 224 7900 ian.gilthorpe@squareonelaw.com www.squareonelaw.com

Dr Simon Goon

David Furniss SENIOR DIRECTOR MAIN BUSINESS: Real estate consultants BNP Paribas Real Estate, One Trinity Gardens, Broad Chare, Newcastle upon Tyne, NE1 2HF 0191 227 5737 david.furniss@bnpparibas.com www.realestate.bnpparibas.co.uk

MANAGING DIRECTOR MAIN BUSINESS: Business support and economic development Business Durham, Ground Floor, Millennium Place, Durham, DH1 1WA 03000 265 510 simon.goon@durham.gov.uk www.businessdurham.co.uk

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whoâ&#x20AC;&#x2122;s who Paul Gough

Professor Cliff Hardcastle

DIRECTOR OF BUSINESS DEVELOPMENT MAIN BUSINESS: Education and training

DEPUTY VICE-CHANCELLOR (RESEARCH & BUSINESS ENGAGEMENT) MAIN BUSINESS: Higher education

Gateshead College, Baltic Campus, Quarryfield Road, Baltic Business Quarter, Gateshead, NE8 3BE 0191 490 2258 paul.gough@gateshead.ac.uk www.gateshead.ac.uk

Alan Gowling DIRECTOR - TYNE AND WEAR MAIN BUSINESS: Business banking

Teesside University, Middlesbrough, Tees Valley, TS1 3BA 01642 342008 C.Hardcastle@tees.ac.uk www.tees.ac.uk

Professor Graham Henderson CBE DL VICE-CHANCELLOR AND CHIEF EXECUTIVE MAIN BUSINESS: Higher education

Natwest, 1 Trinity Gardens, 2nd Floor, Broadchare, Quayside, Newcastle upon Tyne, NE1 2HF 07788 567 340 alan.gowling@rbs.co.uk www.natwest.com/ahead

Dr Colin Herron

Sarah Hall MANAGING DIRECTOR MAIN BUSINESS: PR and marketing Sarah Hall Consulting Ltd, 85 Heathfield, Northumberland Park, Newcastle upon Tyne, NE27 0BP 0191 659 7072 @Hallmeister on Twitter sarah@sarahhallconsulting.co.uk www.sarahhallconsulting.co.uk

Jack Hanwell MANUFACTURING SECTOR DEVELOPMENT MANAGER MAIN BUSINESS: Manufacturing supply chain development Advanced Manufacturing Forum, One Trinity Green, Eldon Street, South Shields, NE331SA 0191 481 3480 jack.hanwell@st-mf.co.uk www.st-mf.co.uk

Teesside University, Middlesbrough, Tees Valley, TS1 3BA UK 01642 342002 Graham.Henderson@tees.ac.uk www.tees.ac.uk

MANAGING DIRECTOR MAIN BUSINESS: Low carbon vehicles/automotive Zero Carbon Futures, Future Technology Centre, Barmston Court, Nissan Way, Sunderland, SR5 3NY 0191 426 4307 colin.herron@gateshead.ac.uk www.zerocarbonfutures.co.uk

Andrew Hodgson VICE CHAIR, NORTH EAST LEP MAIN BUSINESS: Economic Growth - Delivering more and better jobs for the North East Stamp Exchange, Westgate Road, Newcastle, NE1 1SA 0191 222 3180 info@nelep.co.uk www.nelep.co.uk

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who’s who Lorraine Holmes AREA DIRECTOR OF MANUFACTURING ADVISORY SERVICE – NORTH & WEST ENGLAND MAIN BUSINESS: Group CEO of WMMC, business and consultancy support services

Matthew Hunt PORT DIRECTOR MAIN BUSINESS: Port and marine services Port of Sunderland, Capstan House, Greenwells Quay, South Docks, Sunderland, SR1 2BU 0191 553 2131 matthew.hunt@sunderland.gov.uk www.MAKEitSunderland.com

Wolverhampton Science Park, Wolverhampton, WV10 9TG lorraine.holmes@mymas.org 01902 838 300 www.mymas.org

Peter Houlis MANAGING DIRECTOR MAIN BUSINESS: Network video systems and physical security solutions

Gary Hutchinson COMMERCIAL DIRECTOR MAIN BUSINESS: Football club

2020 Vision Systems Ltd, 28 Northumberland Square, North Shields, Tyne and Wear, NE30 1PW 0191 296 2662 phoulis@2020cctv.com www.2020visiontechnology.com

Sharon Howey CORPORATE SALES DEVELOPMENT MANAGER MAIN BUSINESS: Premier league football club

Sunderland Association Football Club, Stadium of Light, Sunderland, SR5 1SU 0871 911 1200 enquiries@safc.com www.safc.com

Craig Iley MANAGING DIRECTOR BUSINESS BANKING MAIN BUSINESS: Banking

Newcastle United Football Club, St James’ Park, Newcastle upon Tyne, NE1 4ST 0844 372 1892 sharon.howey@nufc.co.uk www.nufc.co.uk

Northumbria House, Aykley Heads, Durham, DH1 5TS 0770 100 2218 craig.iley@atombank.co.uk https://www.atombank.co.uk

Tobyn Hughes

Anne Isherwood

MANAGING DIRECTOR, TRANSPORT OPERATIONS MAIN BUSINESS: Public transport services for the neca

PRINCIPAL / CHIEF EXECUTIVE MAIN BUSINESS: Education and training

Nexus, Nexus House, 33 St James Boulevard, Newcastle, NE33 4AX 0191 202 0747 customerservices@nexus.org.uk www.northeastca.gov.uk www.nexus.org.uk

Bede Campus, Durham Road, Sunderland, SR3 4AH 0191 511 6000 anne.isherwood@sunderlandcollege.ac.uk www.sunderlandcollege.ac.uk

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who’s who Darren Jobling CEO EUTECHNYX/ZEROLIGHT MAIN BUSINESS: Game developer/3D visualisation

Neil Kenley DIRECTOR OF BUSINESS INVESTMENT MAIN BUSINESS: Public and private sector Local Enterprise Partnership for Tees Valley

Waterside Drive, Gateshead, Tyne & Wear, NE11 9HU 0191 460 6060 dj@eutechnyx.com eutechnyx.com / zerolight.com

Tees Valley Unlimited, Cavendish House, Teesdale Business Park, Stockton on Tees, Tees Valley, TS17 6QY 01642 524 400 www.teesvalleyunlimited.gov.uk

Catherine Johns

Joshua Kerr

INNOVATION AND BUSINESS GROWTH DIRECTOR MAIN BUSINESS: Business support and economic development

MANAGING DIRECTOR MAIN BUSINESS: Promotional video production

Ground Floor, 3-4 Millennium Place, Durham, DH1 1WA 03000 261261 (main switchboard) Catherine.johns@durham.gov.uk http://www.businessdurham.co.uk/

Gateshead International Business Centre, Mulgrave Terrace, Gateshead, NE8 1AN 0845 309 0009 joshua@nowfilm.eu www.nowfilm.eu

Carole Kitching

Gwen Jones SOLICITOR MAIN BUSINESS: Commercial Property – Landlord and tenant/disposals and acquisitions of care homes

PRINCIPAL MAIN BUSINESS: Education and training Newcastle College, Rye Hill House, Rye Hill Campus, Scotswood Road, Newcastle, NE4 7SA 0191 200 4013 carole.kitching@ncl-coll.ac.uk www.newcastlecollege.co.uk

Gordon Brown Law Firm LLP, Hadrian House, Higham Place, Newcastle upon Tyne 0191 389 5105 gwen.jones@gblf.co.uk www.gblf.co.uk

Steve Joyce

James Kyle

REGIONAL DIRECTOR – NORTH EAST REGION MAIN BUSINESS: Building services solutions, covering all aspects of mechanical and electrical engineering

INVESTMENT DIRECTOR MAIN BUSINESS: Wealth management

Shepherd Engineering Services, Centre for Advanced Industry, Coble Dene, Royal Quays, North Shields, NE29 6DE 0191 258 6627 sjoyce@ses-ltd.co.uk www.ses-ltd.co.uk

Earl Grey House, 75-85 Grey Street, Newcastle upon Tyne, NE1 6EF 0191 255 1440 james.kyle@rathbones.com www.rathbones.com

bqlive.co.uk

who’s who Tony Leech

Zara Lane ASSOCIATE DIRECTOR MAIN BUSINESS: Corporate finance

AREA CORPORATE DIRECTOR MAIN BUSINESS: Banking (Lending to businesses with a turnover between £6.5m and £350m)

Grant Thornton UK LLP, 75-85 Grey Street, Newcastle upon Tyne, NE1 6EF 0191 203 7793 zara.lane@uk.gt.com www.grant-thornton.co.uk

Phil Langton CHIEF EXECUTIVE MAIN BUSINESS: Enterprise and business support

HSBC Bank plc, Maingate, Kingsway North, Team Valley Trading Estate, Gateshead, NE11 0BE 07771 840130 tonyleech@hsbc.com www.hsbc.co.uk

Julian Leighton DIRECTOR MAIN BUSINESS: Digital agency

NBSL, 6 Esther Court, Wansbeck Business Park, Ashington, NE63 8AP 01670 813 322 phil.langton@nbsl.org.uk www.nbsl.org.uk

Martin Lawlor CHIEF EXECUTIVE MAIN BUSINESS: Ports & Harbour

Orange Bus, C Floor, Milburn House, Dean Street, Newcastle, NE1 1LE 0191 241 3703 julian@orangebus.co.uk www.orangebus.co.uk

Zoe Lewis PRINCIPAL / CHIEF EXECUTIVE MAIN BUSINESS: Education and training

Port of Blyth, South Harbour, Blyth, Northumberland, NE24 3PB +44(0)1670 352066 commercial@portofblyth.co.uk www.portofblyth.co.uk

Middlesbrough College, Dock Street, Middlesbrough, TS2 1AD 01642 333552 za.lewis@mbro.ac.uk

Chris Lines

David Laws CHIEF EXECUTIVE MAIN BUSINESS: Aviation services Newcastle International Airport, Woolsington, Newcastle upon Tyne, NE13 8BZ 0191 214 3330 dlaws@newcastleinternational.co.uk www.newcastleairport.com

OWNER/DIRECTOR MAIN BUSINESS: PR, strategic communications, social media, digital marketing & copywriting Right Lines Communications Ltd, The Manor House, West End, Sedgefield, County Durham, TS21 2BW 07971 868 329 chris@rightlines.info / @chrisjlines www.rightlines.info

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whoâ&#x20AC;&#x2122;s who Catriona Lingwood

Professor John MacIntyre

CHIEF EXECUTIVE MAIN BUSINESS: Construction business support

PRO VICE-CHANCELLOR MAIN BUSINESS: Higher education

Constructing Excellence in the North East, Allergate House, Belmont Business Park, Belmont, Co. Durham, DH1 1TW 0191 374 0233 catriona@cene.org.uk www.cene.org.uk

University of Sunderland, Edinburgh Building, City Campus, Chester Road, Sunderland, SR1 3SD 0191 515 3266 john.macintyre@sunderland.ac.uk www.sunderland.ac.uk

Brian Manning

Mike Lynch MANAGING DIRECTOR MAIN BUSINESS: Media agency

CHIEF EXECUTIVE MAIN BUSINESS: Construction and property services Esh Group, Esh House, Bowburn North Industrial Estate, Bowburn, Durham, DH6 5PF 0191 377 4570 enquiries@esh.uk.com www.esh.uk.com

Mike Lynch Advertising, Metro Radio Arena, Arena Way, Newcastle Upon Tyne, NE4 7NA 0191 243 2444 mike@mikelynchadvertising.co.uk www.mikelynchadvertising.co.uk

Bill Lynn DIRECTOR MAIN BUSINESS: Commercial property consultants

Bill Marley CHIEF EXECUTIVE, THE EMPLOYABILITY TRUST MAIN BUSINESS: Engineering and manufacturing

ES Group, Higham House, New Bridge Street West, Newcastle upon Tyne, NE1 8AU 0191 206 8703 bill.lynn@es-group.com www.es-group.com

Alastair MacColl CHIEF EXECUTIVE MAIN BUSINESS: Business information, events & commercial development programmes BE Group, Spectrum 6, Spectrum Business Park, Seaham, SR7 7TT 0191 426 6404 alastair.maccoll@be-group.co.uk www.be-group.co.uk

The Employability Trust, 3 Palmer Road, South West Industrial Estate, Peterlee, Co.Durham, SR8 2HU bill@theemployabilitytrust.com www.theemployabilitytrust.com

Phil Marsh DIRECTOR OF BUSINESS SERVICES MAIN BUSINESS: Higher education Unit 4 Technology Park, City Campus, Chester Road, Sunderland, SR2 7PT 0191 515 2011 phillip.marsh@sunderland.ac.uk www.sunderland.ac.uk

bqlive.co.uk

who’s who John Marshall VICE CHAIRMAN MAIN BUSINESS: Law firm

Paul McEldon CHIEF EXECUTIVE MAIN BUSINESS: Business space and consultancy services

Bond Dickinson LLP, St. Ann’s Wharf, 112 Quayside, Newcastle upon Tyne, NE1 3DX 0191 279 9381 info@bonddickinson.com www.bonddickinson.com

Wearfield, Enterprise Park East, Sunderland, SR5 2TA 0191 516 6045 paul.mceldon@ne-bic.co.uk www.ne-bic.co.uk

Ayesha Marston

Peter McIntyre

MARKETING DIRECTOR MAIN BUSINESS: Marketing, PR and event management

ARCH GROUP MANAGING DIRECTOR MAIN BUSINESS: Development company

Metro Radio Arena, Arena Way, Newcastle upon Tyne, NE4 7NA 0845 900 21 27 ayesha@jam-marketing.co.uk www.jam-marketing.co.uk

Ashington Workspace, Lintonville Parkway, Ashington, NE63 9JZ 01670 528400 enquiries@arch-group.co.uk www.archnorthumberland.co.uk

Eddie McKay

Jamie Martin MANAGING PARTNER MAIN BUSINESS: Law firm

DIRECTOR MAIN BUSINESS: Audio visual & event production Big Purple Productions Ltd, Unit 36 Stella Gill Industrial Estate, Pelton Fell, Chester Le Street, DH2 2RQ 0191 388 0988 eddie@bigpurple-productions.com

Sandgate House, 102 Quayside, Newcastle upon Tyne, NE1 3DX 0191 204 4341 jamie.martin@wardhadaway.com www.wardhadaway.com

Joe McLean

Mike Matthews MANAGING DIRECTOR AND EUROPEAN OPERATIONS OFFICER MAIN BUSINESS: Plastic component manufacturer Nifco House, Durham Lane, Stockton-on-Tees, TS16 0PS 01642 672299 matthewsm@nifcoeu.com www.nifcoeu.com

PARTNER MAIN BUSINESS: Advisory Grant Thornton UK LLP, 75-85 Grey Street, Newcastle upon Tyne, NE1 6EF 0191 203 7790 joe.mclean@uk.gt.com www.grant-thornton.co.uk

bqlive.co.uk

who’s who Stewart McNicholl MANAGING DIRECTOR MAIN BUSINESS: Asbestos compliance consultancy UKAS Asbestos surveying, testing, training & consultancy

Andrew Mitchell CHIEF EXECUTIVE MAIN BUSINESS: Venture capital holding fund manager North East Finance, St James’ Gate, Newcastle upon Tyne, NE1 4AD 0191 211 2300 enquiries@northeastfinance.org www.northeastfinance.org

AMS Asbestos Management Services Ltd, 10 – 11 Atley Business Park, Cramlington, Northumberland, NE23 1WP 0800 1958415 info@askams.co.uk www.askams.co.uk

Andrew Moffat

Ian Miller OPERATIONS DIRECTOR MAIN BUSINESS: Recruitment services

CHIEF EXECUTIVE OFFICER MAIN BUSINESS: Conventional and bulk cargo, car terminals, estates, cruise & ferries, logistics

GEM Partnership Ltd, 31- 33 Mosley Street, Newcastle upon Tyne, NE1 1YF 0191 244 6430 ian.miller@gempartnership.com www.gempartnership.com

Port of Tyne, Maritime House, Tyne Dock, South Shields, Tyne & Wear, NE34 9PT 0191 455 2671 andrew.moffat@portoftyne.co.uk www.portoftyne.co.uk

Heidi Mottram

Maria Miller OPERATIONS DIRECTOR MAIN BUSINESS: Recruitment services

CHIEF EXECUTIVE OFFICER MAIN BUSINESS: Water and wastewater treatment Northumbrian Water, Boldon House, Wheatlands Way, Pity Me, Durham, DH1 1FA 0191 301 6367 heidi.mottram@nwl.co.uk www.nwl.co.uk

GEM Partnership Ltd, 31- 33 Mosley Street, Newcastle upon Tyne, NE1 1YF 0191 244 6430 maria.miller@gempartnership.com www.gempartnership.com

Ammar Mirza CBE FOUNDER AND CHAIRMAN OF ASIAN BUSINESS CONNEXIONS & AMMARM (UK) LIMITED MAIN BUSINESS: Business and property development Asian Business Connexions/AmmarM (UK) Limited, The Beacon, Newcastle upon Tyne, NE4 9PN 0191 2308040 ammar@ammarm.com www.abconnexions.org

Chris Musgrave CHIEF EXECUTIVE OFFICER MAIN BUSINESS: Land & property development Wynyard Park House, Wynyard Avenue, Stockton on Tees, TS22 5TB 01740 661000 www.wynyardpark.com

bqlive.co.uk

who’s who Alex Nelson STATIONMASTER MAIN BUSINESS: Rail travel

Roger O’Brien AMAP DIRECTOR MAIN BUSINESS: University University of Sunderland, The Industry Centre, Colima Avenue, Sunderland Enterprise Park West, Hylton Riverside, Sunderland, Tyne & Wear, SR5 3XB 0191 515 3888 roger.obrien@sunderland.ac.uk www.amap.sunderland.ac.uk

Chester-le-Track, The Railway Station, Station Road, Chester-le-Street, Co. Durham, DH3 3EE 0191 387 1387 / 07860 953 981 burnopfield@yahoo.co.uk www.chester-le-track.co.uk

Matthew Newman

Fiona O’Connor

MANAGING DIRECTOR MAIN BUSINESS: Creative corporate video production

OPERATIONS DIRECTOR MAIN BUSINESS: Leadership development

Northern Design Centre, Baltic Business Quarter, Gateshead, Tyne & Wear, NE8 3DF 0191 490 9123 matthew@your-film.com Twitter: @YourFilm_MN www.your-film.com

PO Box 681, Newcastle upon Tyne, NE99 4WG 0191 227 0390 fiona.oconnor@commonpurpose.org.uk www.commonpurpose.org.uk

Iain Nixon

Gordon Ollivere MBE

EXECUTIVE DIRECTOR – COMMERCIAL ACTIVITY MAIN BUSINESS: Education and training

CHIEF EXECUTIVE MAIN BUSINESS: Professional services in technology, innovation and business growth

Bede Campus, Durham Road, Sunderland, SR3 4AH 0191 511 6000 iain.nixon@sunderlandcollege.ac.uk www.sunderlandcollege.ac.uk

1 Hylton Park, Wessington Way, Sunderland, SR5 3HD 0191 516 4400 enquiries@rtcnorth.co.uk www.rtcnorth.co.uk

Mike O’Brien

James Pain

MANAGING DIRECTOR MAIN BUSINESS: Enterprise IT software & consulting

DIRECTOR MAIN BUSINESS: Commercial agents and property consultants specialising within NE industrial market

Opencast Software Ltd, Hoults Yard, Walker Rd, Newcastle Upon Tyne, NE6 2HL 0191 276 5656 mike.obrien@opencastsoftware.com www.opencastsoftware.com

Frew Pain & Partners, Collingwood Buildings, 38 Collingwood Street, Newcastle upon Tyne, NE1 1JF 0191 229 9517 / 07841 871 710 james.pain@frewpain.co.uk www.frewpain.co.uk

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whoâ&#x20AC;&#x2122;s who Joanne Pratt

Bob Paton MANAGING DIRECTOR MAIN BUSINESS: Management consulting, technology services and outsourcing

FUND MANAGER MAIN BUSINESS: Fund manager and investment company FW Capital, Clavering House, Clavering Place, Newcastle upon Tyne, NE1 3NG 0191 269 6967 / 07789 776 276 joanne.pratt@fwcapital.co.uk www.fwcapital.co.uk/northeast

Accenture, 1 Quicksilver Way, Cobalt Business Park, North Tyneside, NE27 0QQ 07770 634 447 bob.paton@accenture.com www.accenture.com

John Pratt

Karl Pemberton MANAGING DIRECTOR MAIN BUSINESS: Independent, chartered financial planners

MANAGING PARTNER MAIN BUSINESS: Legal services

Active House, Dukes Court, Dukesway, Thornaby, Stockton-on-Tees, TS17 9LR 01642 765957 karl.pemberton@activefinancialservices.co.uk www.activefinancialservices.co.uk

BHP Law, Kepier House, Belmont Business Park, Belmont, Durham, DH1 1TW 0191 384 0840 JohnP@bhplaw.co.uk www.bhplaw.co.uk

Nigel J Perry FREng

Keith Proudfoot

CHIEF EXECUTIVE OFFICER MAIN BUSINESS: Product and process development

REGIONAL DIRECTOR, NORTHERN AND SCOTLAND MAIN BUSINESS: Chartered accountancy membership organisation

CPI Head Office, Wilton Centre, Wilton, Redcar, TS10 4RF 01642 455 340 www.uk-cpi.com

Chris Petts DIRECTOR MAIN BUSINESS: Advisory Grant Thornton UK LLP, 75-85 Grey Street, Newcastle upon Tyne, NE1 6EF 0191 203 7787 chris.petts@uk.gt.com www.grant-thornton.co.uk

ICAEW, PO Box 417, Newcastle upon Tyne, NE3 9AS 0191 300 0531 keith.proudfoot@icaew.com www.icaew.com/northern

Alan Purvis MANAGING DIRECTOR MAIN BUSINESS: Printing and mailing services MetroMail Ltd, Unit 6, Fox Cover Enterprise Park, Admiralty Way, Seaham, SR7 7DN alan.purvis@metromail.co.uk www.metromail.co.uk

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who’s who Stephen Purvis

Andrew Richardson

MANAGING DIRECTOR MAIN BUSINESS: Software technology company

DEPUTY CEO MAIN BUSINESS: Utility management

OnBoard Pro, SGP Consulting and Luna4 Technologies, Riverside House, Newburn Riverside, Newcastle, NE15 8NY stephen.purvis@onboardpro.co.uk www.onboardpro.co.uk

Utilitywise plc, Utilitywise House, 3 & 4 Cobalt Park Way, Cobalt Business Park, North Tyneside, NE28 9EJ 0330 303 0233 info@utilitywise.com www.utilitywise.com

Chris Rigg

Ben Quigley CHIEF EXECUTIVE, EVERYTHING DIFFERENT AND CHAIR INSTITUTE OF PRACTITIONERS IN ADVERTISING, ENGLAND AND WALES MAIN BUSINESS: Creative marketing communications, data and insight and digital

CHIEF EXECUTIVE MAIN BUSINESS: Recruitment NRG, Lloyds Court, 56 Grey Street, Newcastle upon Tyne, NE1 6AH 0191 232 1222 chrisrigg@nrgplc.com www.nrgplc.com

6-8 Ravensworth Terrace, Newcastle upon Tyne, NE4 6AU 0191 261 0111 bquigley@different-uk.com www.everythingdifferent.co.uk

Daniel Robinson

Lee Rankin MANAGING DIRECTOR MAIN BUSINESS: Recruitment services

CHAIRMAN & CEO MAIN BUSINESS: Construction, mechanical and electrical engineers

GEM Partnership Ltd, 31- 33 Mosley Street, Newcastle upon Tyne, NE1 1YF 0191 244 6430 lee.rankin@gempartnership.com www.gempartnership.com

Charles Reynard PARTNER MAIN BUSINESS: Innovative, international and local legal advice: corporate finance; m&a and energy Eversheds LLP, Central Square South, Orchard Street, Newcastle upon Tyne, NE1 3XX 0845 498 4922 charlesreynard@eversheds.com www.eversheds.com

Gus Robinson Developments Ltd, Stranton House, West View Road, Hartlepool, TS24 0BW 01429 234221 dan.r@gusrobinson.com www.gusrobinson.com

David Robinson GROUP CHIEF EXECUTIVE OFFICER MAIN BUSINESS: UK ports business with logistics operations PD Ports, 17-27 Queen’s Square, Middlesbrough, TS2 1AH 01642 877000 david.robinson@pdports.co.uk www.pdports.co.uk

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whoâ&#x20AC;&#x2122;s who Cameron Ross

Louise Robinson DIRECTOR MAIN BUSINESS: Marketing, public relations, social media and design

LEAD MANUFACTURING ADVISOR NORTH EAST MAIN BUSINESS: Manufacturing business support Wolverhampton Science Park, Wolverhampton, WV10 9TG cameron.ross@mymas.org 07834 307 903 www.mymas.org

Sunderland Software Centre, Tavistock Place, Sunderland, SR1 1PB 0191 562 3134 louise@wearecreo.co.uk www.wearecreo.co.uk

Andrew Robson CEO OF PERFECT IMAGE MAIN BUSINESS: Full service IT provider

Jean-Louis Rostaing MANAGING DIRECTOR MAIN BUSINESS: Subsea umbilical systems

Equinox House, 3.2 Silver Fox Way, Cobalt Business Park, North Tyneside, NE27 0QJ 0191 238 0111 hello@perfect-image.co.uk www.perfect-image.co.uk

Technip Umbilicals Ltd, Cobalt Business Exchange, Cobalt Park Way, Wallsend, Newcastle upon Tyne, NE28 9NZ 0191 295 0303 jlrostaing@technip.com www.technip.com

Ralph Saelzer

Kate Roe PRINCIPAL AND CHIEF EXECUTIVE MAIN BUSINESS: Education

MANAGING DIRECTOR MAIN BUSINESS: Manufacturer of ship and offshore cranes Liebherr, Liebherr Sunderland Works Ltd, Ayres Quay, Deptford Terrace, Sunderland, SR4 6DD 0191 514 3001 ralph.saelzer@liebherr.com www.liebherr.com

Darlington College, Central Park, Haughton Road, Darlington, DL1 1DR 01325 503050 enquire@darlington.ac.uk www.darlington.ac.uk

Kevin Rogers

Roy Sandbach

MANAGING DIRECTOR MAIN BUSINESS: Supply chain, print and packaging and e-commerce

CHAIR, NORTH EAST LEP INNOVATION BOARD MAIN BUSINESS: Economic Growth - Delivering more and better jobs for the North East

Merlin Way, New York Business Park, North Tyneside, NE27 0QG 0191 280 0400 kevin.rogers@elanders.com www.elanders.co.uk

Stamp Exchange, Westgate Road, Newcastle, NE1 1SA 0191 222 3180 info@nelep.co.uk www.nelep.co.uk

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whoâ&#x20AC;&#x2122;s who Peter Slee

Neil Schneider CHIEF EXECUTIVE MAIN BUSINESS: Local government Stockton-on-Tees Borough Council, Municipal Buildings, Church Road, Stockton-on-Tees, TS18 1LD 01642 393939 neil.schneider@stockton.gov.uk www.stockton.gov.uk

MANAGING DIRECTOR, SPARK RESPONSE CHAIRMAN SPARK ETAIL MAIN BUSINESS: eCommerce, order fulfilment and contact centre services Follingsby Avenue, Follingsby Park, Gateshead, NE10 8HQ 0191 495 9999 peter.slee@sparkresponse.com www.sparkecommerce.com

Alan J Smith OBE, DL

Elizabeth Shaw INNOVATION MANAGER MAIN BUSINESS: SME innovation support

CHAIRMAN MAIN BUSINESS: Architecture Northern Design Centre, Baltic Business Quarter, Gateshead, NE8 3DF 0191 245 5555 ajs@redboxdesign.com www.redboxdesign.com

Wearfield, Enterprise Park East, Sunderland, SR5 2TA 0191 516 6039 elizabeth.shaw@ne-bic.co.uk www.ne-bic.co.uk

David Simpson EXECUTIVE DIRECTOR, WEALTH MANAGER MAIN BUSINESS: Private banking & wealth management

Dave Smith CHIEF EXECUTIVE MAIN BUSINESS: Local authority

Coutts, Trinity Gardens, Broad Chare, Quayside, Newcastle upon Tyne, NE1 2HF 0191 269 1396 david.simpson@coutts.com www.coutts.com

Amanda Skelton CHIEF EXECUTIVE MAIN BUSINESS: Local government Redcar & Cleveland Borough Council, Redcar & Cleveland House, Kirkleatham Street, Redcar, TS10 1RT 01642 444 003 amanda.skelton@redcar-cleveland.gov.uk www.redcar-cleveland.gov.uk/regeneration

Sunderland City Council, Civic Centre, Burdon Road, Sunderland, SR2 7DN 0191 561 1112 Dave.smith@sunderland.gov.uk www.sunderland.gov.uk

Ian Smith STEM DIRECTOR MAIN BUSINESS: Education and training Middlesbrough College, Dock Street, Middlesbrough, TS2 1AD 01642 333718 ih.smith@mbro.ac.uk

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whoâ&#x20AC;&#x2122;s who Dan Smyth

Nick Swales

MANAGING DIRECTOR MAIN BUSINESS: Software

REGIONAL DIRECTOR MAIN BUSINESS: Wealth management

1 Moor Road South, Newcastle upon Tyne, NE3 1NN hello@bedegaming.com http://www.bedegaming.com @bedegaming

Earl Grey House, 75-85 Grey Street, Newcastle upon Tyne, NE1 6EF 0191 255 1440 nick.swales@rathbones.com www.rathbones.com

Kathryn Taylor

Phil Steele GENERAL MANAGER MAIN BUSINESS: intu Eldon Square Shopping Centre

MANAGING PARTNER MAIN BUSINESS: Law firm Gordon Brown Law Firm LLP, Mains House, 143 Front Street, Chester le Street, DH3 3AU 0191 389 5172 kathryn.taylor@gblf.co.uk www.gblf.co.uk

intu Eldon Square Centre Management, Offices, Eldon Court, Percy Street, Newcastle upon Tyne, NE1 7JB 0191 261 1891 phil.steele@intu.co.uk www.intueldonsquare.co.uk

Philip Stephenson ASSOCIATE DIRECTOR MAIN BUSINESS: Advisory

Leigh Taylor AREA DIRECTOR NORTH EAST & YORKSHIRE SME MAIN BUSINESS: Commercial banking

Grant Thornton UK LLP, 75-85 Grey Street, Newcastle upon Tyne, NE1 6EF 0191 203 7791 philip.stephenson@uk.gt.com www.grant-thornton.co.uk

Sarah Stewart CHIEF EXECUTIVE MAIN BUSINESS: Destination management and marketing agency NewcastleGateshead Initiative, 9th Floor, Baltic Place East, South Shore Road, Gateshead, NE8 3AE 0191 440 5720 info@ngi.org.uk www.NewcastleGateshead.com

Lloyds Bank, 4th Floor, 102 Grey Street, Newcastle upon Tyne, NE1 61G 0191 402 2093 07860 309026 Leigh.Taylor@lloydsbanking.com www.lloydsbusiness.com

Malcolm Taylor CHIEF EXECUTIVE, DIGITALCITY BUSINESS MAIN BUSINESS: Business support Boho One, Bridge Street West, The Boho Zone, Middlesbrough, TS2 1AE 01642 248692 Malcolm.taylor@thedigitalcity.com www.thedigitalcity.com

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who’s who Ian Thompson

Peter Taylor AREA MANAGER MAIN BUSINESS: Direct investment in growing businesses, providing equity investment and loan finance

CORPORATE DIRECTOR (Regeneration & Economic Development) MAIN BUSINESS: Regeneration & economic development Durham County Council, County Hall, Durham, DH1 5UL 03000 267 331 ian_thompson@durham.gov.uk www.durham.gov.uk

The Innovation Centre, Vienna Court, Kirkleatham Business Park, Redcar, TS10 5SH 01642 777 888 peter@uksteelenterprise.co.uk www.uksteelenterprise.co.uk

Caroline Theobald MD BRIDGE CLUB LTD/FIRST FACE TO FACE - Honorary Consul, Sweden; Chair, International Newcastle; chair BQ Live Debates

MAIN BUSINESS: B2B networking and event facilitation

Jane Thompson DIRECTOR OF ENTERPRISE AND COMMERCIAL DEVELOPMENT MAIN BUSINESS: Education and training Bede Campus, Durham Road, Sunderland, SR3 4AH 0191 511 6000 jane.thompson@sunderlandcollege.ac.uk www.sunderlandcollege.ac.uk

Bridge Club Ltd, Aydon Castle Farm, Corbridge, NE45 5PJ 0191 406 9081 c.theobald@bridgeclubnorth.com www.bridgeclubnorth.com

Geoff Thompson CEO MAIN BUSINESS: Utility management

Michael Thompson MANAGING DIRECTOR MAIN BUSINESS: Training provider specialising in the construction sector North East Training Solutions Ltd, Unit 7 & 4 Bassington Industrial Estate, Bassington Lane, Cramlington, Northumberland, NE23 8AD 01670 618080 michael.thompson@northeasttrainingsolutions.co.uk www.northeasttrainingsolutions.co.uk

Utilitywise plc, Utilitywise House, 3&4 Cobalt Park Way, Cobalt Business Park, North Tyneside, NE28 9EJ 0330 303 0233 info@utilitywise.com www.utilitywise.com

Graeme Thompson DEAN OF THE FACULTY OF ARTS, DESIGN AND MEDIA MAIN BUSINESS: Higher education The David Puttnam Media Centre, St Peter’s Way, Sunderland, SR6 0DD 0191 515 2364 graeme.thompson@sunderland.ac.uk www.sunderland.ac.uk/faculties/adm/

Brian Thorpe HEAD OF NORTH EAST AND CUMBRIA MAIN BUSINESS: Corporate banking Barclays House, 5 St Ann’s Street, Quayside, Newcastle upon Tyne, NE1 3DX 07775 551330 brian.thorpe@barclays.com www.barclays.com/corporatebanking

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whoâ&#x20AC;&#x2122;s who Dr Robert Trimble DEAN OF THE FACULTY OF BUSINESS AND LAW MAIN BUSINESS: Higher education

Andrew Ward MANAGING DIRECTOR MAIN BUSINESS: Clothing Workwear Express Ltd, Cathedral Park, Belmont Ind Est, Durham, DH1 1TF 0191 370 7790 andrew@workwearexpress.com www.workwearexpress.com

University of Sunderland, Sir Tom Cowie Campus, Sunderland, SR6 0DD 0191 515 3226 rob.trimble@sunderland.ac.uk www.sunderland.ac.uk/faculties/bl/

Peter Wagstaff Chartered MCSI DIRECTOR, WEALTH MANAGER MAIN BUSINESS: Wealth management

Keith Ward MANAGING DIRECTOR MAIN BUSINESS: Communications company

Coutts, Trinity Gardens, Broad Chare, Quayside, Newcastle upon Tyne, NE1 2HF 0191 269 1397 peter.wagstaff@coutts.com www.coutts.com

Unit 1, Team Valley Trading Estate, Tenth Avenue West, Gateshead, NE11 0HL 0191 487 4041 www.wardair.co.uk

Professor Andrew Wathey

James Walker MANAGING DIRECTOR MAIN BUSINESS: General construction and design and build contracting

VICE-CHANCELLOR & CHIEF EXECUTIVE MAIN BUSINESS: Education Northumbria University, Ellison Building, Ellison Place, Newcastle upon Tyne, NE1 8ST 0191 227 4002 andrew.wathey@northumbria.ac.uk www.northumbria.ac.uk

Albany Court, Monarch Road, Newcastle Business Park, Newcastle upon Tyne, NE4 7YB 0191 2733311 info@surgo.co.uk www.surgo.co.uk

Peter Walls

Pete Watson

GROUP CHIEF EXECUTIVE MAIN BUSINESS: A social business focussing on people, the planet and property

CEO MAIN BUSINESS: IT services

Emperor House, 2 Emperor Way, Doxford International Business Park, Sunderland, SR3 3XR 0191 525 5000 peter.walls@gentoogroup.com www.gentoogroup.com

Atlas Cloud, 2 Collingwood Street, NE1 1JF 0191 283 0191 pete.watson@atlascloud.co.uk www.atlascloud.co.uk

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who’s who Lucy Winskell OBE, DL

Carole White CHIEF EXECUTIVE MAIN BUSINESS: Business support

PRO VICE-CHANCELLOR (BUSINESS AND ENGAGEMENT) MAIN BUSINESS: Employability, enterprise & business Northumbria University, Ellison Building, Ellison Place, Newcastle upon Tyne, NE1 8ST 0191 243 7200 lucy.winskell@northumbria.ac.uk www.northumbria.ac.uk

TEDCO Business Support Ltd, North East Business and Innovation Centre (BIC), Wearfield, Enterprise Park East, Sunderland, SR5 2TA 0191 5166105 cwhite@tedco.org www.tedco.org

Lindsey Whiterod OBE CHIEF EXECUTIVE MAIN BUSINESS: Education and training, maritime training, academy sponsorship

Geoff Woodcock MANAGING DIRECTOR MAIN BUSINESS: Land and development Esh Developments, Esh House, Bowburn North Industrial Estate, Bowburn, Durham, DH6 5PF 0191 377 4570 enquiries@esh.uk.com www.esh.uk.com

South Tyneside College, Westoe Campus, St George’s Avenue, South Shields, Tyne & Wear, NE34 6ET 0191 427 3900 lindsey.whiterod@stc.ac.uk www.stc.ac.uk

Jill Williamson EXECUTIVE DIRECTOR MAIN BUSINESS: Horse racing/event & venue hire/ wedding venue

Laura Woods DIRECTOR OF ACADEMIC ENTERPRISE MAIN BUSINESS: Higher education Teesside University, Middlesbrough, Tees Valley, TS1 3BA 01642 384408 L.Woods@tees.ac.uk www.tees.ac.uk/business

Sedgefield Racecourse, Sedgefield, Stockton-on-Tees, TS21 2HW 01740 621 925 jwilliamson@sedgefield-racecourse.co.uk www.sedgefield-racecourse.co.uk

Peter Wilson

Paul Woolston

MANAGING DIRECTOR MAIN BUSINESS: Education and training

CHAIR, NORTH EAST LEP MAIN BUSINESS: Economic Growth - Delivering more and better jobs for the North East

Middlesbrough College Dock Street, Middlesbrough, TS2 1AD 01642 333550 pj.wilson@mbro.ac.uk

Stamp Exchange, Westgate Road, Newcastle, NE1 1SA 0191 222 3180 paul.woolston@nelep.co.uk www.nelep.co.uk

conferencing, hospitality & events Rugby footballâ&#x20AC;&#x2122;s two codes promise to draw massive numbers of newcomers to the North East from as far as New Zealand. County Durham is cashing in on art and freedom. Northumberland revels in silver and gold.

bqlive.co.uk opinion

conferencing & hospitality

On the ball: NGI’s Sarah Stewart with council leader Nick Forbes and Jonny Wilkinson

THERE’S ALL TO PLAY FOR Rugby union’s World Cup is the icing on the tourist cake as the region’s appeal as a place to enjoy in work or in play continues to grow. Sarah Stewart explains At last 2014 saw the national economy begin to turn the corner and, despite challenging times, the leisure and business tourism industry in NewcastleGateshead has thrived, generating significant economic impact. The visitor economy as a whole is now worth £1.37bn, directly employing more than 15,000 people in Newcastle and Gateshead, with more than 17.5m people visiting the area annually. Over the past year the NewcastleGateshead Initiative has delivered a great deal to support this continued growth, pursuing our mission to inspire people to visit and to live, learn, work and invest here. By marketing the area nationally and

internationally, we’ve continued to raise the profile of the destination, helped to change outdated perceptions and forged ahead with ambitious campaigns to attract leisure visitors, business visitors and inward investment from the UK and overseas. Highlights of the past year include our work with Newcastle City Council to maximise opportunities associated with hosting rugby union’s World Cup in 2015, expected to inject a further £43m into the local economy. We have driven marketing, PR and work with international tour operators to attract visitors and extend their length of stay, as we gear up for October 2015. We were also proud to accept the Favourite UK City Award for Newcastle

at The Guardian and Observer Travel Awards 2014, voted for by readers across the UK. Newcastle is only the second city outside Edinburgh in the past 15 years to secure the title. That really helps reinforce NewcastleGateshead’s growing reputation as a leading city break destination. It shows its ability to punch above its weight - beating popular destinations like York, London and Manchester to top spot. Recognition like this reinforces what we all already know - that we have a fantastic asset to market. The mix of vibrant cultural and sporting venues and events, excellent shopping, wide choice of restaurants, bars and hotels and our beautiful >>

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conferencing & hospitality quayside and cityscape are just some of the strengths we actively promote throughout our campaigns to change perceptions and give reasons to visit. The bar and restaurant scene is enjoying a boom on both sides of the Tyne - another clear sign we’re emerging from the recession. Investor confidence is high, with new ventures opening along the Quayside, at Trinity Square in Gateshead and of course in Monument Mall and Grey Street. Growth in tourism is evident in hotel occupancies; average occupancy figures for the year stand at 75% vs 71% in 2013. The total number of bedrooms sold is up by 5%. NewcastleGateshead has become one of the hottest destinations for hotel developments. Eight hotels have opened since 2011, creating an extra 1,117 rooms. A further 30 hotel operator brands have expressed interest in NewcastleGateshead, and 2015 brings the opening of another exciting landmark hotel – the Crowne Plaza, behind Central Station. Such developments also strengthen the quality of our business tourism offer. Over the last few years the conference and meetings industry has gone from strength to strength, generating a GVA impact of £77m (against £69m in 2011) and supporting 1,680 FTE jobs.

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Heavenly welcome: The Angel of the North. Left, One among many: The Crowne Plaza in Newcastle’s new quarter behind the Central Station is one of many new hotels opening in the city shortly

Working with partners, venues and hotels across the region, our convention bureau continues to promote NewcastleGateshead as a top conference destination. This not only delivers direct economic impact but also showcases the area to high spending business visitors who become influential advocates and our investors and leisure visitors of the future. Just like our own programme of festivals and events, including the increasingly popular EAT! and Juice Festivals, conferences and meetings attract thousands of visitors, achieving widespread coverage, instilling positive perceptions and building awareness of what the destination has to offer. Our convention bureau’s activity is aligned with the work of our inward investment team, focusing on three key sectors; science and healthcare (life sciences), marine and offshore energy and creative and digital - all areas with

There is much to build on and plenty to look forward to in 2015 academic excellence at our universities. The successful NewcastleGateshead Conference Ambassador Programme works with academics and professionals to secure world-class meetings in these three key sectors. Last year the destination hosted 14 international conferences which attracted 6,300 delegates. There is much to build on and plenty to look forward to in 2015. Working with our partners, stakeholders and colleagues across the region, we are confident that NewcastleGateshead will continue to flourish as a leading leisure and business destination. n Sarah Stewart is chief executive of NewcastleGateshead Initiative.

bqlive.co.uk opinion

conferencing & hospitality

THE COUNTY OF SILVER AND GOLD Northumberland is lined with silver and gold – the silver award it received for Best UK Holiday County/Destination, and the gold for two businesses excelling in hospitality, writes Brian Nicholls It was the first year the border county had contested the British Travel Awards, and in 2014 it certainly gave the gold winner, Cornwall, a run for its money, while beating other well fancied counties like Cumbria and Yorkshire. Northumberland County Council works closely with Northumberland Tourism, and Val Tyler, the council’s policy board member for tourism, says: “The rest of the nation is starting to realise that Northumberland is special. Recent TV coverage of the countryside and our characters has inspired more people to visit. They fall in love with the county and want to return. This success will bring more spend into the local economy.”

The two businesses – both in Seahouses – won their gold earlier in the VisitEngland Awards for Excellence: St Cuthbert’s House as bed and breakfast/guest house of the year, and Seafield Park as holiday village of the year. Leaplish Waterside Park at Kielder won bronze in the holiday village of the year category. An £8.5m proposal to build the world’s biggest public observatory at Kielder

could boost tourism considerably. Astronomer Gary Fildes, the proposer, believes 25,000 visitors a year already calling to the existing observatory could be quadrupled to 100,000. Jacqui Miller, a local businesswoman, backs him. Both point out how Kielder and its surrounding Border country already holds the supreme international award for the clarity of its night sky. n

People fall in love with the county and want to return. This success will bring more spend into the local economy

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opinion

TURNER AND A TREATY LURE VISITORS By highlighting the nation’s heritage and tapping into topicality, County Durham has visitors flocking to its landmarks

County Durham, through its Visit County Durham programmes, is cashing in on topicality. Recalling 2015 as 800 years since the Magna Carta agreed between King John and his barons (enshrining the rule of law in English society), it is pushing the fact that Durham Cathedral, felt by many to be the greatest Norman building in Europe, holds three editions of the Magna Carta (1216, 1225 and 1300) that highlight the evolution of the original. Durham’s 1216 issue, the only copy of that year surviving, will go on public display from June to August 31, part of an exhibition. Trails associated with the document are planned. To coincide with interest in JMW Turner aroused by Mike Leigh’s film, County Durham is highlighting paintings the great artist made locally. He first visited Durham in 1791, producing paintings and sketches. He portrayed the cathedral inside and out. In 1817 he painted Raby Castle, first exhibited at the Royal Academy in 1818 (despite some antipathy there towards Turner portrayed in the film). Raby Castle was the seat of the unsuccessful Rising of the North. Nearby Bowes Museum has four Turners in its collection. Rokeby Park, a Palladian style building around 1730, was the launch point for 20 Turner

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watercolours that were commissioned to accompany Sir Walter Scott’s poem Rokeby. The spectacular 70ft waterfall High Force was one of Turner’s settings. Opportunity also exists to study Spanish art at the fast developing visitor destination Auckland Castle. The exhibition Hidden Treasures: Spanish Art in County Durham includes works never before on public display, shown alongside the castle’s permanent collection by Francisco de Zurbaran. Until 1 February there is a complementary exhibition of Zurbaran’s 17thC Spanish painting at the Bowes Museum. At the end of 2015, Auckland Castle will start to get a museum extension as part of a £17m project to exhibit Britain’s history through faith and religion. A

spring 2018 opening is expected with perhaps 130,000 visitors a year – all part of a £50m regeneration of the former home of bishops of Durham. Jonathan Ruffer, who returned to the North East after an outstanding career as a fund manager in the City, is building the enterprise around the 13 famous Zurbaran paintings he bought for £15m from the Church of England and now has on public display. He is ploughing millions personally into reviving South West Durham as a visitor destination. Durham City’s Old Shire Hall, built in 1896 and home, at different times, to the county council and Durham University, looks likely to become a four star hotel with 43 bedrooms and 29 apartments. n

bqlive.co.uk opinion

conferencing & hospitality

Durham Cathedral and High Force (left) were among scenes grabbing JMW Turnerâ&#x20AC;&#x2122;s attention when the great painter visited the North East

Jonathan Ruffer is ploughing millions into reviving South West Durham as a visitor destination

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overview

TWO VITAL INGREDIENTS Two things the North East needs to uplift its conferencing and entertainment offer – a national conference centre and a bigger share of the state purse promoting the arts. Mike Matthews, managing director of Teesside automotives firm Nifco and a leading light nationally in that industry - says it’s barmy that in Britain major international conferences about automotives are often held in places where no such industry exists. Only a new national conference centre big enough to take the biggest gatherings of any kind will put the North East in the top tier of conference hosting, in his view. Plans for an international convention centre beside the Sage at Gateshead Quays, which might bring £26m a year into the region’s earnings, still await the £19.5m allotment needed from the Government’s Regional Growth Fund. Many of the 75 extra conferences it could attract cannot be accommodated presently. The project mustn’t be allowed just to lie indefinitely. Also, since good entertainment can often persuade tourists to stay longer and spend more in one place, it seems reasonable to suggest the North East might deserve more Arts Council support than £9.64 per person, given London’s allotment is £21.90. It’s not just the North East that misses out. In private funding around 82% has been going to London, and the ratio between the capital and the English regions in that respect stands at 14 to one.

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It’s barmy that in Britain major international conferences about automotives are often held in places where no such industry exists

As for the National Lottery cash for the North East arts, it has been running at £4.45 a head, against a national average of £5.93 - and £12.07 in London. The North East spends public money shrewdly. An investment of more than £200m previously received led to the founding of the Baltic and Sage. A vision for culture in the region over the next 15 years will

be published early in 2015 by the North East Culture Partnership, with backing from all 12 local authorities in the region. The Government has recently made available £10m of funding to support any proposals for a clear tourism strategy. But that’s for right across the North, in expectation that 29 tourism boards will come up with a single plan. n

EVERY ONE A WINNER Golden award winners in the North East’s annual tourist awards: Access for all: Sage Gateshead Event of the year: Northumbrian Water’s Kielder Winter Wonderland Large visitor attraction: Beamish Small visitor attraction: Wildfowl and Wetlands Wildlife Trust’s wetland centre at Washington Tourism experience: The Cycle Hub, Newcastle, Large hotel: Matfen Hall Small hotel: Langley Castle Hotel, Hexham Bed & breakfast: Martineau Guest House, Tynemouth Caravan holiday park/holiday village: Seafield, Seahouses Self-catering provider: Springhill Farm, Seahouses Taste of England: Knitsley Farm Shop, Consett Pub of the year: The Bridge Tavern under the Tyne Bridge, Newcastle And in administration: Business tourism: Event Durham, Durham University Visitor information: NewcastleGateshead Visitor Information Centre Sustainable tourism: Durham University

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conferencing & hospitality

PLUGGING INTO SUCCESS We may never know how great a part £1m of free advertising played in bringing the North East a bumper year of visitors. But we do know from Visit England that in 2014 the region enjoyed its highest figure since before recession hit in 2008. Almost a quarter of a million visitors poured in during 2014, mainly from the Netherlands, Ireland and Germany, in that order. The free plug won in a competition promoted the region on digital screens in all Heathrow Airport’s terminals over three months. It must have been seen by millions, since 73m passengers yearly pass through there. Out of 40,000 votes cast on Facebook, almost half preferred the North East over the North West, the Midlands and Northern Ireland. John Holland Kaye, chief executive of Heathrow, thought the depiction of Hadrian’s Wall “breathtaking”. BA’s

seven flights daily carry almost half a million passengers every year into our region, a figure that could now continue to rise. Both David Laws, chief executive of Newcastle International Airport, and Sarah Stewart, chief executive of NewcastleGateshead Initiative, believe the success stemmed from a region-wide participation by numerous organisations and individuals; 170 partner organisations of NGI for a start, with even Newcastle and Sunderland football clubs bonded in a common cause. Laws says the success shows what the region is capable of given a common goal. “Our whole is much greater than the sum of our parts,” he concludes. Three points at least arise: Given the impact Hadrian’s Wall has made, could more Italian tourists be persuaded to visit the furthest outpost of the Roman Empire? Since the tourist trend is again upward,

could digital displays be introduced at hub airports where interest already exists in the North East, such as in the Netherlands and Germany? And given the long historical and cultural links, is there scope to intensify campaigns in Scandinavia and the Baltic states? Other great news is the start, from next May, of a five times a week direct service between New York and the North East, with United Airlines making Newcastle its seventh transatlantic service in the UK after London, Manchester, Birmingham, Glasgow, Belfast and Edinburgh. A tourist campaign in the USA is needed. Washington Old Hall, ancestral home of George Washington, already attracts many of the comparatively few Americans visitors to the region. Pulitzer Prize winner Jane Smiley has already lavishly praised, in the New York Times, on Newcastle, Holy island, Jarrow and Durham. n

WINNING YOUNG HEARTS Hadrian’s Wall, as Heathrow’s boss says, is exciting – one of two World Heritage sites for visitors to the North East to enjoy. The other among 12,264 listed buildings is Durham Cathedral and Castle. The region also has, for those fascinated by romantic and bloody history, 1,390 scheduled ancient monuments - 79% of England’s total. Tourists aged 16 to 34 make just over half the visits to the North East, and if wall or cathedral are not enough to catch some imaginations, perhaps Alnwick Castle for its part in

Harry Potter films is. Could they also be drawn more to the seaside, most of whose beaches have the highest standard in quality of bathing water? The water’s warmth may be limited to a few months, but surfing is booming. Outdoor pop concerts and land sports have growing appeal too – in addition to Premiership football that many outsiders will only have seen on satellite TV otherwise. This year there’s a “magic weekend” of rugby league too. That’s on top of Rugby Union’s World Cup, which business consultants

EY think might bring £93m to the region, rather than the £43m NGI expects. England’s cricketers play New Zealand at Chester le Street in June too. So no-one need visit 64 museums or run in the world’s second biggest half marathon if they don’t want to. And if they can’t make the North East for a year or two yet, then at least they could look to 2018, when the Tall Ships Race comes to Sunderland bringing millions of visitors and pounds as it did to Newcastle and Gateshead in 2005 and Hartlepool in 2010. n

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retail Vibrant visitor economies, growing city centre appeal and a wave of optimism sweeping through high streets across the region suggest good things ahead in 2015 for retailers and the places they call home.

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retail

opinion

A new appeal: So much is good about Sunderland, says Ken Dunbar

CITYâ&#x20AC;&#x2122;S REPUTATION ON THE RISE 109

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retail

opinion

Word of Sunderland’s appeal as a destination for retail, entertainment, business and culture is spreading fast and far beyond the North East, explains Ken Dunbar, chief executive of Sunderland BID Ask people from the North East and beyond what they associate with Sunderland; the football club perhaps? The city’s great reputation for engineering and car manufacturing? For anyone who really wants to delve back in time, its shipbuilding heritage? What may be less obvious are the other vital cogs that help make Sunderland what it is, and which are helping to make this arguably the most exciting period in the city’s history. There’s never been a more important time to have in place a Business Improvement District (BID) to support the revitalisation of the city centre. BIDs have been set up throughout the UK over the last decade, making a massive difference in driving city centre economy, making them safer and more vibrant places to visit too. Throw in the fact that Sunderland has a university with a global reputation, a first rate college and a thriving digital sector and you have all the foundations of city that means business. Creation of a BID in Sunderland is the last piece of the jigsaw, working in partnership with traders and other key organisations to help deliver real change. So much is good about Sunderland. Amazing people, superb buildings, stunning green spaces. It has The Bridges, one of the region’s largest

shopping centres, a coastline to envy and a river which will have the attention of the world turned on it when it hosts the 2017 Tall Ships Race. Against that backdrop there’s a staggering £500m investment from both the public and private sectors being spent, with the BID supporting that figure with several million more which will be used to ensure that the city centre offering develops at the same pace. Our initial focus has been to drive footfall and encourage more visitors to Sunderland, hence the Experience It Here! brand – to tell the story of a city where you can shop, eat and spend your leisure time. While iconic landmarks such as the Empire Theatre, the National Glass Centre and the Stadium of Light are familiar to most people, we have also shown there’s so much more to Sunderland besides. There’s an exciting music scene, ongoing development of the city’s very own cultural quarter and a Minster also being widely recognised as a perfect events space. All these growth areas are being supported by the BID, and we’re also helping create a ‘joined up’ approach so that events in the city can feed off each other. That’s why we created a

successful African Festival to support the arrival in Sunderland of the musical The Lion King, and why we’re a key partner in providing one of the most exciting Christmas programmes yet. The BID is also an active member of the recently formed VIBE group, where the biggest organisations in Sunderland work together to help boost the city’s prosperity. Behind the scenes, other equally important activities are part of our remit. We are looking at how to make it easier for people to navigate through the city centre, and how to make it a greener, cleaner place to visit. Our research shows a real appetite for markets. So we’re looking at developing in that area with emphasis on quality. It’s an exciting time to be part of the creation of a new Sunderland, with major developments taking place on the former Crowtree and Vaux sites which will revitalise the city centre. As we move towards the final quarter of the BID’s first year our commitment continues – to embrace the regeneration now taking place, and to use this as a platform to build Sunderland’s reputation, and its offering to the region and beyond. n Ken Dunbar is chief executive of Sunderland BID.

BIDS have been making a big difference to cities throughout the UK. Now it’s Sunderland’s turn

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retail

A PLACE FIT FOR THE EUROPEAN STAGE Capital investment projects in three key areas of Newcastle will hold the key to the city maintaining its place as a modern regional capital of Europe, and the drive for funding is underway, says Sean Bullick

The plan would benefit businesses in the area hugely, encouraging new ones to invest and unlocking the area’s true potential

A remarkable year, 2014 – both for Newcastle and NE1 Ltd. It was the year we secured a second term of office, winning a resounding vote of confidence from the city’s business community. With 62% turning out to vote and 78% backing us for a further five year term, it means exciting times for Newcastle in 2015 and beyond. Central to our work for the next five years will be building on our successes to date, and pushing the boundaries to ensure that Newcastle continues its regeneration, and maintains its place as a modern European regional capital city. Capital investment projects are key – with new areas of the city earmarked for attention; the Bigg Market, Northumberland Street and Percy Street are three key areas we see ripe for attention. For the Bigg Market we already have exciting redevelopment plans. We’re currently sourcing funding, talking to relevant and interested parties and hope to shape and deliver the project in mid-2015. The Bigg Market’s redevelopment would benefit businesses in the area hugely, encouraging new ones to invest, and unlocking the area’s true potential. It would also join up the area to other ongoing projects, including Newcastle Central Station. >>

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retail Our ambitious plans for the station are coming to fruition, as many can see already. The project to transform it, and the area surrounding, began after we unlocked over £5m from the Regional Growth Fund and pooled resources with Newcastle City Council to redevelop the exterior of the station. Collectively the scheme, inside and out, was worth around £20m and has included modernising and improving the facilities within the station, as well as enclosing the famous portico, a major project led by Network Rail and East Coast. Externally, work on the public realm and on the road layout fronting the station nears completion and will provide a fitting welcome to the region for the millions of visitors who arrive by train each year. In 2015 we also hope to improve Northumberland Street and help it maintain its rightful place as the North East’s primary shopping street. We’ve looked to Europe and other international cities for inspiration and ideas on how to enhance this famous thoroughfare and ensure that it remains vibrant and competitive. Percy Street area is also important. We’re working closely with the city council and with businesses to improve access to the city centre and make the area more

opinion

attractive for pedestrians, as well as improving traffic flow and access to car parking. Also, 2015 will be the fifth anniversary of NE1’s Alive after Five – an initiative that has transformed the city and continues to build momentum. Keeping the city open and alive after 5pm – extending retail opening until 8pm across the week – has had a marked and dramatic impact on the look and feel of the city centre. Since its launch, the number of additional visitors to the city after 5pm has been almost 7.9m, with Alive after Five hours now worth an estimated £100m a year. Eldon Square alone has seen 5.8m more visitors. Marketing and events are key to maintaining Alive after Five’s momentum, and we’ve a packed programme for this year to make Newcastle a vibrant and exciting place to work, visit and to live in. Now, more than ever, with competition from other cities, out of town shopping

Bigg changes: Plans for an ‘exciting redevelopment’ of Newcastle’s Bigg Market are now taking shape

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centres, online sales and an ever shrinking world market – making Newcastle stand out is crucial to its long term survival and success. The events calendar gets underway early in January with the return of the highly successful NE1 Restaurant Week from 19 to 25 January. Cocktail Week will be back later in the year. So too will Monument Live – NE1’s big screen at the Monument on Grey Street showcasing films, news and sports coverage throughout the summer. Rugby will take centre stage in Newcastle during 2015, with both the Rugby World Cup and the Rugby Football League’s Magic Weekend hosted at St James’s Park. So 2015 promises to be busy and exciting. To keep up to date with everything going on with NE1 – sign up to www.getintonewcastle.co.uk n Sean Bullick is chief executive of NE1 Ltd, Newcastle upon Tyne.

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retail

overview

SALES UP, PRICES DOWN With competition heating up retailers face heightened pressure to stand out from the crowd - and tough conditions are likely to continue in 2015 The High Street generally, towards year end in 2014, saw solid retail sales volume growth. This was driven by fierce price competition, Bill MacLeod, PwC’s senior partner in Newcastle, concluded. The sales volumes were up 4.3% year on year, but average prices down 1.5%. “Recently the sales trend seemed to slow, though some recovery followed a sharp dip when unusually mild summer weather hit clothing sales,” he added. This coincided with some cooling of housing market activity.” But then, of course, came Black Friday!

Food stores up to Christmas had it tough though, with deflationary pressures from falling global food and energy prices and strength of sterling, plus fierce and well publicised competition from discounters like Aldi and Lidl. Major retailers of the North East have met challenges well. Greggs, whose bakeries now thrive on takeaway sales, employ more than 20,000 people nationwide, and have turnover up at £762.3m. ScS the Sunderland based furniture stores employing 1,531 people around the country showed higher sales too, at £245.6m.

The upmarket Newcastle based department store group Fenwick not only held its ground but plans further openings elsewhere in the country. Stockton’s Barker and Stonehouse, the UK’s biggest independent and family owned retailer, showed a 13% jump in sales over a year and opened its first London outlet. Other retailers showing progress included Nobia Holdings in Darlington (kitchens), the Clinkard Group led by managing director Charles Clinkard in Eaglescliffe (quality footwear) and William Strike based at Stokesley (gardening requirements). n

CLEANER, BRIGHTER, SAFER Retail in the hearts of Newcastle and Sunderland will be increasingly lively in the future. The Wearside city’s recently formed BID, led by local businesses and city stakeholders, is overseeing £3.4m worth of investment over five years, capitalising on £30m of other city centre developments planned. Businesses

voted to set up the BID, which is funded by a 1.5% levy on business rates. As with Newcastle BID, Sunderland will see its central area cleaner, brighter, safer – and with more events, marketing and promotion to liven the evening economy. John Craggs deputy chief executive at Gentoo, chairs the board.

Ken Dunbar, chief executive, previously held a similar position with Castle Morpeth Council when Morpeth’s shopping got a £40m uplift. Dunbar was earlier chief executive of Aberlour Scotland’s largest children’s charity – and managed festivals and events elsehwre in England. n

ONLINE TREND DEFIED Online shopping remains a bête noire for businesses yet to integrate it seriously. Of all shoppers in Europe, Brits are most likely to make a purchase online, yet British businesses after 20 years are still only the eighth most likely to use the

internet to sell. What does this say? E-commerce sales rose £1bn over 2013, and the Office of National Statistics tells us 76% of British adults use the internet daily - 74% to make a buy (against 53% in 2008). Barry Williams, who chairs the CBI’s

distributive trades survey panel, says of the High Street sales: “While discretionary income is still on the rise, slow wage growth continues to weigh on how much consumers are willing to go out and spend.” n

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corporate security North East businesses must be ever more vigilant in 2015 as the threat of corporate security attack hits new heights. But help is at hand for businesses willing to invest in steeling themselves against hidden dangers.s

bqlive.co.uk opinion

corporate security

SHUN THE OFFER THAT LOOKS TOO GOOD In today’s high-tech world, North East business and individuals alike face unprecedented attacks by fraudsters of all types - from fake businesses selling entries in non-existent directories to hijacking computer systems. David Arthur details dangers close to home

Most frauds represent huge business for organised crime syndicates. Data is valuable. So theft is a great revenue source for them. Most businesses worry about such external threats yet pay too little attention to threats from within their own organisations; employee fraud is also a major issue. With the economy tight and returns on investments low, fraudsters working the region have been offering attractive returns that turn out to be classic Ponzi schemes. One recent judgment on such a scheme orchestrated in Newcastle highlights the dangers. Ponzi schemes are investment scams whereby new investors’ cash is used to provide interest to existing scheme

members, making it appear the scheme is creating a high return. Over recent years, offers of high return have become more attractive to both private and business investors. Fraudsters take advantage. Recently a local and previously respected financial advisor was convicted and now faces years in prison after convincing victims to invest in a fraudulent Indian property venture. He has admitted 37 counts of fraud involving £2.6m, perpetrated on investors both business and private. Many other types of fraud in our region have included scams involving buyto-let. Property owners and investors alike should beware of any scheme appearing too good to be true. A scam concerning a company called North East Property Buyers involved purchasing houses from vendors at undervalue, with the premise they could continue to live there as tenants. The company later defaulted on the mortgages secured over the homes. Now the tenants may lose their homes. More than 1,000 mortgages and nine suspected fraudsters are believed to be involved. Another company, Practical Property Portfolios Ltd, and a number of related firms set up as genuine businesses focused on low priced buyto-let homes. Both business and private

investors invested in low priced houses on rundown estates expecting them to be renovated and let to tenants. But the investors ended up owning a portfolio of rundown, often uninhabitable houses with no renovation work undertaken. The directors behind the scam were jailed. The main director filed for bankruptcy, leaving the investors with nothing. In a similar case of abuse of trust, a local solicitor used his respected position to convince his clients to join a stamp duty tax scheme. But it was using falsified documents marketed at luxury home buys worth over £500,000. It resulted in an underpayment of £1.6m to HMRC from scheme members, while adding £400,000 to his company profits. The convicted solicitor has had to reimburse the £400,000. But the members have had to pay the stamp duty due - along with interest, penalties and additional costs. These schemes highlight the need for diligence when investors and businesses look at where to place their money. Always research any scheme thoroughly before investing – if it looks too good to be true, it probably is! n David Arthur is a partner with Tait Walker, heading up forensics.

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overview

WHY CYBER CRIMINALS RUB THEIR HANDS Too many North East firms are leaving themselves vulnerable to cyber attacks, experts warn, but big corporations are fighting back through investment and more sophistcated detection of threats, writes Brian Nicholls Companies will risk major losses to cyber criminals this year, two of Britain’s biggest firms of business advisors have warned. Businesses are suffering more cyber security incidents than their global counterparts but appear less sharp in detecting them. Almost 70% of UK firms experienced an incident in a recent 12 month period, compared to 59% globally. About one small business in four is

“That nearly a third of businesses have not detected a security incident, or know they are in the dark, suggests more attention is needed.” While 55% of UK companies say they plan to spend more on security, against 42% previously, a further 33% report their spending will stay as is. The rest plan to cut back or don’t know what they will do. Obstacles to improving security are stated as: insufficient capital funding,

Almost 70% of UK firms experienced an incident in a recent 12 month period, while one small business in four is likely to suffer a fraud of some kind likely to suffer a fraud of some kind. Manufacturers, financial services, offshore energy firms and utility companies are among the most vulnerable, according to a report by PwC (with CIO and CSO magazines). Most breaches involve staff, not outsiders. Asam Malik, risk assurance director at PwC in Newcastle, says: “A sizeable minority of firms underestimate the scale of the problem. A critical defence is the ability to detect and respond to incidents before they can impact.

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lack of leadership from the chief executive or board, and lack of an effective information strategy. However, 42% of respondents say their boards are engaged with the overall security strategy. Damage from security breaches is widespread. Customer and employee records have been compromised. Intellectual property has been stolen. Financial loss and downtime of up to 24 hours has been suffered. Malik warns: “Securing digital assets has to be embedded in the DNA of all organisations. That requires

leadership and a clear strategy. “Both appear missing in nearly a third of businesses. Cyber insurance against theft or misuse of data is a protection. Yet while more than half of UK companies have cyber insurance, 17% don’t know if they have. “Awareness does seem to be improving, though – a benefit of government and private initiatives,” Malik adds. “Now the focus for many organisations must shift from awareness to action.” Following a second survey on attitudes of executives to key threats such as cybercrime, Victoria Spencer, the head of EY’s forensic practice in the North of England, endorses such a need. EY is making a £650,000 investment and creating 50 jobs in its first dedicated forensic technology facility outside London – at Manchester. Its research suggests that businesses realise employees are a bigger concern (36%) than organised criminals (26%) in cybercrime. But, says Spencer: “It’s often a matter of whether employees take cybercrime as seriously as managements do. Employees are sometimes seen as the weak link, with individuals susceptible to spoof emails that phish for passwords or confidential information, download viruses, or transfer files to unauthorised personal devices.” n

bqlive.co.uk overview

corporate security

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corporate security

overview

BEWARE THE CHANGING OF THE GUARD Many organisations seem to have failed to spot a “changing of the guard” - the profile of fraudsters shifting from rogue senior executives to younger individuals funding extravagant lifestyles. Cases going through British crown courts since the start of 2014 show frauds committed by 26 to 35 year olds were valued at just over £62m – a 285% leap on the first half of 2013. Frauds by those aged 46 and over fell 72% to £88m. One big scam, masterminded by two 26-year-olds, revolved around the hijack of mobile phone accounts. Fraud cases totalling £317m were recorded in the first half of 2014, on KPMG’s latest fraud barometer. While the figure represents a 39% drop over the previous period comparable, the number of frauds has remained constant. n

KPMG Fraud Barometer

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Biannual Fraud Statistics January 2008 - June 2013

2,000

166

163

2,500

140

148 131

128

136

120

148 125

100

111

108 80

1,500

Total Fraud Value Total Fraud Value

1,000 40 500

0 20

1 20

ONLINE FOR TRADE, IN LINE FOR TAX Online traders are being warned to disclose their earnings to HMRC, following recent jailing for two years of an eBay trader from Manchester who evaded paying £300,000 tax. He sold CDs, DVDs and console games via eBay and other auction sites, never declaring his self-employed status or sales for tax purposes. Forensic accountants found £1.3m had passed

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through various bank accounts over six years. Some money had also been laundered through American banks. Graham Purvis, a partner at Newcastle accountants Robson Laidler, says:

“People trading online as pseudobusinesses should heed of this case. By speaking to a trusted accountant, online traders can get advice on being tax compliant.” n

People trading online as pseudo-businesses should heed this case

bqlive.co.uk overview

corporate security

AN EYE ON THINGS CAN HELP Far from creating a Big Brother culture in business, the adoption of CCTV around the workplace can raise employees’ sense of personal security, one expert suggests. And, for employers, it can slash annual losses from fraud, theft and criminal behaviour. That’s the recommendation of Gary Trotter, general manager of Hadrian Technology, a Sunderland security

solutions firm. With a rise in ‘claim culture’, and more personal injury claim specialists being advertised and hired, firms are losing compensation claims that could be more vigorously defended using CCTV. Similarly, he says, false claims - often hard for businesses to disprove, therefore resulting in large payouts – can be defended with clear evidence.” Accusations of abuse and misconduct

too, that can lead to wrongful dismissal, or victims not being taken seriously, are less likely to arise with CCTV in the workplace, and even where legal claims have been made, a victim has the benefit of evidence. Hadrian Technology, over the last three years of its 15 year existence, has successfully defended claims totalling a combined value of more than £286,000. n

For employers, installing CCTV in the workplace can slash annual losses from fraud, theft and criminal behaviour

WATCH OUT FOR FAKE WEB TRAFFIC About 36% of all web traffic could now be fake, put out on computers hijacked by viruses. Fraudsters erect sites with phony traffic and collect payments from advertisers through middlemen who aggregate space across many sites and resell the space. The identities of the fraudsters, often operating from far-flung places

such as Eastern Europe, remain murky. While most marketers are increasing their online budgets, some are also monitoring more strictly how their money is spent. Robert Fuller, director of software developer Innevate, says: “Everyone expects in our convenience society that things happen with the click of a finger. We don’t think

Everyone expects in our convenience society that things happen with the click of a finger. We don’t think about the intricacy of the processes

enough about the intricacy around the processes.” In the North East, Zebra Internet Services of Newcastle now has a division to help organisations guard their internet presence and digital assets. Andrew Carter, the divisional manager, warns: “If renewal of domain names is overlooked, or registration details are incorrect, they can be snapped up by cyber squatters - as with Apple’s iPad. com registration. “Or they can simply cause websites and email accounts to disappear - as Clydesdale Bank found recently.” n

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small business In association with

Ongoing uncertainties around pay rules and financial backing will be carry-throughs for small businesses in 2015 but at least they have prepared an agenda of questions for candidates in the coming election.

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small business UNANSWERED QUESTIONS WORRY SMEs Holiday pay for casuals and future relations with the banks look to be major concerns that small businesses are taking into 2015, says Brian Nicholls Ongoing uncertainties about the recent ruling on holiday pay for casual workers, and the services banks provide, are two major considerations small businesses carry forward from 2014. Under EU law, workers are entitled to four weeks’ holiday pay a year. But no details exist on how it should be calculated. Until now, the UK government has interpreted the EU Working Time Directive as saying holiday pay should be at an employee’s basic rate of pay, with any additional payments for regular overtime not included. So most employers have done just that. The recent ruling by an Employment Appeal Tribunal, however, based on three cases, suggests the interpretation has been wrong. A survey by the Federation of Small Businesses (FSB), which thinks up to 400,000 smaller firms could be affected, found that a third of its members with employees (31%) paid staff for voluntary overtime. One in 10 with staff were also offered some form of commission. Ted Salmon, the FSB’s North East regional chairman, believes many questions remain unanswered. “The ruling has the potential to be very damaging to small businesses, presenting a real risk of closure if they’re forced to meet retrospective claims,” he said. That’s the crunch. “It would be desperately unjust to

expect businesses to pay retrospective compensation for calculations made when fully compliant with the law as it was then understood. The FSB has been appointed to a government task force to examine this issue, and it’s fighting hard for small businesses to be insulated from the uncertainty and legal risks this ruling brings.” One sixth of the 30.8m people currently in work at business of any size are paid overtime, the Government estimates. But these figures stem from Office for National Statistics data stating the number of people in work

between June and August 2014. It’s not an accurate figure for people who have worked regular overtime and who are likely to bring a claim. Howard Beckett, the executive director of Britain’s biggest trade union Unite, reckons: “The decision does not open the floodgates for past claims. But it says to workers, going forward, you’ll receive what the UN asked for in 1938 and again in 1970, and what Europe then asked for in 1998. Namely, you >>

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small business will receive a normal wage for your periods of rest.” On the banking front, Business Banking Insight (BBI), a website monitoring how well small and medium-sized businesses are being served by banks and other finance providers, has concluded from a survey of 15,000 businesses that 14% of firms are “quite likely” or “very likely” to switch to a different business current account in the next six months. The website, commissioned by Chancellor George Osborne and driven by the FSB and the British Chambers of Commerce (BCC), found businesses likely to change banks were slightly fewer than those with more than 49 employees (11%). Businesses gave the provider of their business current account a satisfaction rating of 59% to 68%, depending on the size of business. Also, 69% of respondents felt access to online banking services was very important for their business - compared to 52% saying in-branch interaction was, and 41% of businesses stating that telephone services were very important to their operations. The larger the organisation, the more likely it would place high importance upon online access to their business current account. Andrea Leadsom, Economic Secretary to the Treasury, says: “A key part of our long term economic plan is to increase competition and choice in banking, and to ensure Britain’s small and medium-sized businesses get the best possible service from their bank.” John Allan, the FSB’s national chairman, describes the BBI as the biggest and best survey of its kind in the UK. “With one in seven businesses expecting to switch their current account provider in the next six months, we expect interest in the BBI website from businesses will increase,” he adds. John Longworth, director general of

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the BCC, says that given many firms are still unhappy about service levels received from their finance provider, it’s encouraging that some firms are looking to vote with their feet. “Despite online being chosen as the most popular method of banking, businesses still value branch and telephone. We believe BBI provides a unique opportunity to increase transparency, improve competition and help achieve lasting improvement in standards across the banking sector,” he added. Anthony Browne, chief executive of the British Bankers’ Association, agrees the BBI is a “great tool” for helping businesses to compare the products and services of 137 different finance providers. The association feels it complements work the banking industry already does to help SMEs find the right type of finance for their needs, in his view. “The switching service now makes it easier than ever for a business to change provider if they find a better deal,” he adds. “Recent research shows nearly eight in 10 finance applications are being approved. We hope the BBI website will inspire firms to get in touch with their bank to discuss their options.” The Chancellor’s Autumn Statement, while welcomed in part, raised needs

for further action in the FSB’s view. Ted Salmon’s reflected: • While all businesses appreciate the business rates review and reliefs, fundamental reform is essential. • Only limited progress in increasing lending to small firms had been achieved earlier. So extending the Funding for Lending Scheme, alongside new money to further back the British Business Bank, is prudent. • Small firms rely disproportionately on road transport, above all rural firms and those in the North generally. Investment promised for infrastructure is needed as soon as possible. Also very welcome is the sustained freeze on fuel duty. • Measures to support science and increase the small business research and development tax credit are welcome. But many think the process of claiming too complicated. This needs looking at. • National Insurance relief for businesses taking on apprentices under the age of 25 will encourage businesses to take on even more young people. But also needed is a reformed apprenticeship framework and funding mechanism to further encourage small businesses to invest in developing their workforce through quality apprenticeships. n

The favourite workplace at home? • • • •

28% 43% 12% 17%

say they prefer to work in their kitchen in their home office or study in the bedroom in the garden shed

bqlive.co.uk overview

small business

NO EXCUSE IN FINAL POLITICAL ANALYSIS MPs must tackle small business issues head on, says the FSB, which is putting politicians in direct contact with entrepreneurs ahead of the General Election Candidates for this year’s General Election have no excuse for not knowing what small businesses expect of them. The FSB has put prospective politicians in direct contact with small businesses on social media. The www.ibacksmallbusiness campaign, the centrepiece of the FSB’s election preparation, outlines five key areas any new government must address: • Deliver a sustained economic recovery • Rebalance the economy • Create high quality jobs and full employment • Make all markets work better • Lower the cost of doing business The dedicated website site allows prospective candidates and small businesses to share content on social platforms such as videos, infographics and quotes from small business owners. Election runners will see and hear challenges small businesses face in the constituencies they wish to serve. Ted Salmon, the FSB’s North East regional chairman, says it’s a unique opportunity for would-be North East MPs to talk directly beforehand with small business owners. More people than ever are launching into businesses in their 50s. “I don’t want to lose my job now, because I’m too old and won’t find another,” is a common theme expressed by older

employees threatened by redundancy late on in their careers. Academics have found a shift in the number of over 50s reading entrepreneurial skills for the first time. The long-term average, though only around 4% of over-50s, still tops the average rate of entrepreneurship among 18 to 49s. And many people in their 50s are launching their own businesses through opportunity, not necessity. Trends among business launchers generally suggest: • One in five start-up ideas come to aspirants while on holiday • Average time between thinking up an idea and starting the business is six months and

• Entrepreneurs spend over £3,500 on personal credit cards/ loans during the start-up phase That was the outcome of a survey of 1,000 owners who were successful in their small business for more than five years. Alas, perhaps a quarter of SME bosses who do establish later regret it, according to enquiries made by money saving website VoucherCodesPro.co.uk. Further checks suggest many owners of small businesses are working 5 till 9 (am to pm) rather than 9 till 5. Maybe that’s the reason for their regret. n

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small business company profile

BUSINESS IS CENTRAL TO BIC’S ON-GOING SUCCESS Having helped to create over 7,000 jobs across the region from its base in Sunderland, the North East Business and Innovation Centre (BIC) Ltd is opening up a new centre in Darlington. Business Central, is a business support and office facility located on the Central Park development, next to Darlington Train Station. Scheduled to open this spring, the BIC will run the facility having bid for and secured the operation contract from Darlington Council. The £6.6m project has been supported with funding from the European Regional Development Fund (ERDF) (£3.3m) and the Homes and Communities Agency (HCA) (£3m). Over the next 15 years Business Central will safeguard and create over 350 jobs and see over 200 businesses of different sectors occupy office space. David Howell, director of operations at the BIC said: “First opening its doors in June 1994, with just 22 units, the BIC has grown in line with the needs of the region, helping to create over 7,000 jobs region wide. This new project will

enable us to build upon this work and support the development of many more, and we are thrilled to be involved. “Together with the council and our business support partner TEDCO we’re committed to developing a centre that will not only accommodate businesses but provide a real hub for enterprise activity in the area.” With offices available from just £49 per week, the four storey development has been designed with the needs of today’s businesses in mind offering superb connectivity, a central reception area, meeting rooms and free parking. Business Central also incorporates an Open Space; a co-working facility ideally suited to the needs of home workers and consultants, who don’t require permanent offices. Members of the service can also use the facilities in Sunderland, making it ideal for people

First opening its doors in June 1994, with just 22 units, the BIC has grown in line with the needs of the region, helping to create over 7,000 jobs region wide. Business Central will enable us to build upon this work and support the development of many more, and we are thrilled to be involved.

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on the move. Business Central forms part of the wider regeneration of Central Park within the Tees Valley Enterprise Zone; a site targeted at digital companies alongside biologics and advanced engineering. It is hoped the facility will kick-start enterprise development on the site and will set the scene for a new commercial and business centre close to the railway station, the education hub of Darlington College and Teesside University and close to the town centre. n

For more information on Business Central contact the Space team on 01325 526 006

universities & colleges In association with

The role of universities and colleges in supporting businesses looks set to become increasingly prominent in the year ahead. The academic world is also providing emerging enterprises with a fast track to success.

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universities & colleges

MODERN FORTRESSES OF GROWTH Universities are today’s strongholds for the future development of businesses, Teesside University’s Laura Woods says, and explains how Throughout history the drivers of town and city growth have ranged from the forts and castles of early times to the explosion of industry and commerce in the last two centuries.Universities, though, have always had a strong positive influence on their surroundings; and in the future their research, teaching and innovation will provide the impetus for growth. Certainly, Sir Andrew Witty, chief executive of GlaxoSmithKline, believes this. In his report commissioned by the government, Encouraging a British Invention Revolution, he argues that universities have huge potential to drive economic growth, and should be given every incentive in this “business mission”, alongside research and education. Teesside University’s vice-chancellor, Professor Graham Henderson, a contributor to the Witty Review, sees working with business a core activity for the university. A key point of Sir Andrew’s report is that it can be difficult for businesses to find support they need in a large, complex organisation like a university. He recommends that universities “triage” their services to make the enquiry process as simple as possible. At Teesside University we’re creating a central hub for business at our Darlington campus. It will provide a single point of contact for business enquiries, supported by a managed

service for all clients. Our entire business offer will come together under one instantly recognisable brand. By simplifying access to university expertise, increasing understanding of how we can help, and providing a business service whose quality is badged by Customer First, we’re confident that companies will get the support they need to grow and succeed. Technology and innovation are vital to business growth, jobs and wealth, and long-term success of the economy. As knowledgebased companies are created and grow, the role of universities in collaborating with businesses and other partners to drive and embed innovation is increasingly important. In the North East, we can point to an impressive number of successful collaborations between universities and the public and private sector. Newcastle Science City and Sunderland Software City both have excellent track records in supporting the region’s knowledge-based companies. Teesside’s own DigitalCity initiative, set up to create a digital business cluster in the Tees Valley, recently celebrated its 10th anniversary. It has helped create more than 260 companies, resulting in the only digital hotspot north of Birmingham, as ranked by the National Institute of Economic Research. Focusing university research on needs of industry to help solve problems, increase efficiency or productivity, or

create new products and processes, reaps rewards for both sides. Perhaps even more important is the concept of knowledge exchange - businesses and universities both acquiring new learning and skills and creating the environment for innovation. At our business hub on Central Park, Darlington, we shall also be working closely with the National Biologics Manufacturing Centre, led by the Centre for Process Innovation (CPI), and Business Central, a new 50-unit build by Darlington Borough Council. Plans have also been approved for the National Horizons Centre, a skills and innovation project led by the university and developed in partnership with the CPI, Darlington College, Darlington Borough Council and C-STATE, the Centre for Subsea Technology Awareness Training and Education. The National Horizons Centre will help develop the industries set to transform the UK economy, including biologics, industrial biotechnology, subsea engineering and digital. Towns and cities of the North East have always played a vital role in shaping the nation’s history. With the help of our universities, the region will continue making a major contribution in driving forward innovation and enterprise in the 21st Century. n Laura Woods is director of academic enterprise at Teesside University.

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universities & colleges BRING ON THE BRAINS Tapping into the resources of universities through knowledge transfer partnerships can prove hugely lucrative for small businesses

Companies entering a knowledge transfer partnership with universities are generally the better for it. On average, they have reported a £240,000 a year increase in profit. A smaller business taking taking part typically receives funding of £80,000 to £120,000. And businesses of all sizes can benefit from the additional resources, access to specialist academic expertise, strengthened links with their university and improved access to future funding. North East firms have a choice of five universities to partner, all with excellent success rate for KTP submissions. The KTP programme is delivered by Innovate UK, the UK’s innovation agency supported by 16 other public sector funders, and the three-way project incorporates private businesses, academic institutions and graduates.

Launched in 1975 and claimed now to be Europe’s leading scheme of its kind, KTP is one of the UK’s longest running state supported alliances between commerce and academia. It facilitates the employment of a recent graduate as a KTP associate, to work full time in the participating business, on a project important to enhancing the longterm capability of the business. The project also has consistent, hands-on support from a team of academic specialists from the university, and both associate and the business can access

Businesses of all sizes can benefit from the additional resources, academic expertise, strengthened links and improved access to funding

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universities & colleges

That KTP has stood the test of time and weathered successive governments can be attributed to the steady delivery of results at every level

university facilities throughout. A KTP representative in the North East says: “All KTP applications from local businesses, regardless of size or discipline, are assessed against criteria ensuring all partners in the programme have equally weighted benefits. The business must show its project requires knowledge transfer, is relevant to the business strategically, and will increase its profits.” About 75% of associates are offered a job by the host organisation at project’s end. KTP also allows graduates from the start of their careers to own their own project, and apply specialist subject knowledge. The programme offers fully funded training, the opportunity to develop a contact network, and increased potential to go onto further studies such as a PhD or Masters degree. For universities there is the opportunity to develop new strategic business relationships and new revenue streams.

KTP also helps departments raise their profile, identify commercially viable research projects, and develop new intellectual property with commercial potential. Iain Gray, chief executive of Innovate UK, says: “That KTP has stood the test of time and weathered successive governments can be attributed to the steady delivery of results at every level.” The North East universities recently took part in the first National KTP Week to be held across the UK - one of the largest collaborations between businesses and academia. Evidence abounded at a Gateshead gathering that businesses of the region that had already availed of KTP were satisfied. There is one concern for all involved. The North East is falling behind the rest of the country in supplying young university entrants now that fees of up to £9,000 a year are charged. The university placements service UCAS has found that while applications from the North East were up by less than 1% in a year, other regions were up 3 to 5%. The lagging earnings capacity of many North East families may be a factor. n www.ktponline.org.uk and www.innovateuk.org

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BOOSTING APPRENTICESHIPS New College Durham, which copromotes apprenticeships with 300 companies, has been named top performing college in the North East

and second in England. The Skills Funding Agency assessed 221 general further education colleges, assessing both achievement and retention. n

VOCATIONAL CAMPUS GOES AHEAD A £20.5m transformation of Sunderland College will be under way shortly. BAM Construction has a contract to provide a vocational campus opposite Park Lane bus station. The 120,000sq ft campus is being delivered in two phases and will accommodate up to 2,000 students on courses include engineering, manufacturing, construction trades,

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automotive skills, travel and tourism, catering and hospitality. Sunderland College was a big winner when the Department for Business, Innovation and Skills announced grants

of £194m nationwide to improve further education colleges. Sunderland is to receive £10m, which will be added to funding from the city council and college reserves. n

Sunderland College was the big winner when the government announced grants of £194m

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universities & colleges GAME ON FOR GRADUATES Eutechnyx, the Gateshead firm which since 1987 has been developing globally popular video games, is

countering its difficulty in finding suitable recruits by entering a partnership with Teesside University. n

COLLEGE COUNTS ITS VALUE Academic institutions help businesses in other ways besides recruitment and innovation. A study of Newcastle College’s economic impact by Economic Modelling Specialists International

(EMSI) reckons that the college contributes £234.8m yearly to the city’s business community. It suggests a £2.20 return to society for every £1 invested in the college – with taxpayers getting an annual

return of 7.6% on their investment in the institution. About 10% of the population governed by the new Combined Authorities of the North East (which excludes Teesside) attends one of the five universities in the region. n

START-UP FOR 30 FIRMS About 60 permanent jobs may be created through Northumbria University’s launch of a £1.1m project to support the start of 30 new

businesses, and to provide graduate interns for more than 50 small businesses. The European Regional Development

Fund (ERDF) has provided half a million pounds to the project, which is being matched by the university alongside other providers. n

LONG TERM PROSPECT Northumberland College has shown the best results of any further education college in the region for

long courses and is ranked fourth best nationally. It is the only North East college ranked in the top 12 out of 221

general further education colleges in England for 16 to 18-year-olds studying long courses. n

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universities & colleges company profile

UNIVERSITY OF SUNDERLAND, ONE OF A NEW GENERATION OF GREAT CIVIC UNIVERSITIES Our approach to business in the region is to assess how we can help; a model of knowledge exchange rather than knowledge transfer. This collaborative open and honest dialogue with partners and stakeholders characterises the activities of the University. At the heart of the University of Sunderland’s vision lies the desire to be recognised as one of a new generation of ‘great civic universities’. There are many ways to achieve this, but one which has brought the university regional and national recognition is its support for business, industry and the regional economy. We enjoy active involvement in the North East Local Enterprise Partnership and our city’s Economic Leadership Board and are founding members of the Sunderland Business Group. We are a key partner working alongside some of the most significant businesses in the North East economy including Nissan and more recently Hitachi. Our key academic programme areas are supported by industry boards to ensure the curricula and product design match the expectations of employers and professional bodies. We have invested our own resources to create schemes and projects to improve the prospects of our graduates with a compelling Sunderland Futures offer covering opportunities for mentoring, entrepreneurship and volunteering. Set alongside this we have opened our own Intern Factory to facilitate the business community having access to

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skills and thinking otherwise absent from their aspirations and plans, and to give our graduates the first step into a graduate level job. Innovation in programme design, content and delivery remains a constant theme as we work with all of our stakeholders to ensure our graduates can be enterprising, creative and innovative. As we move forward in 2015 our enterprising and innovative approach will see us open a Fab Lab; a technical prototyping platform for innovation and invention. This will provide both a foundation for learning and innovation for our students and graduates and provide equipment, support and advice for businesses and individuals who want to develop new ideas and test new products. Ultimately the Fab Lab will be housed in a new purpose built Centre for Enterprise and Innovation which we plan to open in 2016. This Centre will be a physical

and virtual ‘Gateway’ to the University for businesses who want help and support from, for example, Knowledge Transfer Partnerships, consultancy, applied research, work force planning, and graduate recruitment and development. It will be a place to access facilities, services for businesses, a brand new workspace for entrepreneurs and be a shared space for access to expertise from other partners and business support providers. n

University of Sunderland 3rd Floor Edinburgh Building City Campus Chester Road Sunderland SR1 3SD 0191 515 3555 businessgateway@sunderland.ac.uk www.sunderland.ac.uk/business

Our outward facing activities result in an engaged dynamic and significant institution with a real focus on students, the life changing opportunities we present them with, and the connections and support we offer to our business community.

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giving back Philanthropy is alive and well in the North East and new links forged between charities and businesses are continuung to deliver growth, positive impact and sustainability to the region.

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IT MAKES SUCH A DIFFERENCE Businesses of all sizes, and individuals too, are proving the North East is the most generous place in the country when thinking of others, suggests the Community Foundation’s Rob Williamson Back in 1914, the Cleveland Foundation in Ohio, USA, was conceived by banker, attorney and philanthropist Frederick H. Goff. He saw it as a vehicle to pool the charitable gifts of Clevelanders into a single, great, permanent trust to be run for bettering their city. A century later, the movement Goff started has grown to more than 1,800 community foundations worldwide, with the Community Foundation Tyne & Wear and Northumberland not only biggest in the UK but one of the largest outside North America. Businesses of different sizes and sectors continue to make an important contribution to the area through funds at the Community Foundation and are showing significant leadership in corporate philanthropy and social responsibility. TT2 Ltd for example, the Tyne Tunnel’s operator, made a gift of £10,000 to our Give2 Funds to support communities in the areas where they operate. TT2 Ltd split a donation of £10,000 between the Give2 North Tyneside Fund and the Give2 South Tyneside Fund. The Give2 funds support local projects across a wide range of themes by pooling donations from people and businesses. Through TT2’s donation, the Give2 North Tyneside Fund was able to award of £1,000 to the Making Waves Community Choir in North Shields - a contribution towards its

We look to establish new relationships with philanthropists and local businesses and continue to add to our endowment room hire and music tutor costs. The 15th South Shields Boys Brigade received £500 from Give2 South Tyneside to compete in the Boys Brigade National Five-a-Side Finals

in Belfast where they finished as runners-up. The young finalists were ranked the top Boys Brigade side in England, and competed against top teams in Scotland and Northern Ireland. Rachel Turnbull, chief executive of TT2 Ltd, says: “Through the Give2 Funds we can support local projects directly in our area of operation. The Tyne Tunnels connect local communities, and through the Give2 Funds we commit to supporting local grassroots voluntary groups, support they need to continue their work in the community.” Entrepreneurs of the region also continue to get involved in new philanthropy. Following the sale of electronic engineering company Tynetec in Blyth, Tony and Anne Platten opened a family fund at the Community Foundation. Through this, they will support the region with around £100,000 in grant-making a year, to support people into jobs, with a focus on engineering. The Royal Academy of Engineering estimates that 830,000 graduate-level STEM (science, technology, engineering and maths) experts and 450,000 technicians will be needed by 2020. Funding from the Platten Family Fund will help encourage people of all ages but, hopefully in particular, young people wishing to consider engineering as a positive career move. Tony Platten says: “Anne and I are >>

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Getting their kicks: The 15th Boys Brigade of South Shields, with £500 of support, were runners-up in a national five a side football tournament Raising the standard: TT2’s chief executive Rachel Turnbull and operations manager Stuart Sutton

delighted to establish charitable funds at the Foundation. I am passionate about education and I’d like to encourage young people especially to think about engineering as a career. This was the driving force of our philanthropy. I believe by working with the Foundation we can make a difference to people’s lives, providing

a stepping stone into engineering work. The North East led the world in engineering for over 150 years. It’s time to re-establish that position.” During the financial year, the Community Foundation awarded 1,369 grants totalling £5.2m and the value of our endowment rose from £52.8m to £57.9m with 18 new funds

I am passionate about education and I’d like to encourage young people especially to think about engineering as a career

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set up to support more members of our community. In 2015 our key areas of focus are growth, impact and sustainability. We look to establish new relationships with philanthropists and local businesses and continue to add to our endowment. By following the model set by Frederick H. Goff 100 years ago, we grow to better serve our area for generations to come. n Rob Williamson is chief executive, Community Foundation Tyne & Wear and Northumberland.

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overview

GEORDIE PASSION CONQUERS THE WORLD A Newcastle organisation is enabling North East globetrotters to do their bit to change the world for the better by finding a common purpose It’s 25 years since Common Purpose ran its founding course in Newcastle. Today Common Purpose is a global charity, a foremost provider of development leaders. Founded as a not-for-profit social enterprise, Common Purpose runs local courses for leaders in cities across the world, and global programmes for leaders from more than 100 countries across six continents. Each year, 4,000 leaders become Common Purpose alumni. Common Purpose sets out to give people from the private, public and not-for-profit sectors the inspiration, skills and connections to become better leaders at work and in society. It develops their ability to work together, innovate and to thrive in different cultures, helping people, organisations, cities and regions to succeed. The first ever course began at Newcastle in 1989, and recently the charity marked its 25th birthday, bringing together its alumni of 25 years with a celebration at Baltic, Gateshead. Founder and chief executive Julia Middleton says: “I have fond memories of our initial launch. Many UK cities wanted us to launch with them but it felt right for us to be in Newcastle. “We had such great support from key people in the city - including the then leader of Newcastle City Council - which enabled us to try out the first Common Purpose here. The passion

The passion and commitment of our supporters gave us confidence and momentum to grow

and the commitment of our supporters, and of our staff, gave us confidence and momentum to grow. “Common Purpose has since become, arguably, the biggest organisation in developing leadership anywhere in the world. Newcastle has never claimed the credit nor stolen the benefits testimony to generosity of spirit the North East is well known for.” Fiona O’Connor, operations director in the North East, says the region has a huge network of supporters and alumni. “They speak so highly of their Common Purpose experiences, and it’s down to their support we’ve survived and thrived – even through difficult times,” she added. “We rely on our alumni to give time

generously to our courses, and to share their leadership lessons with others in the region. We are so grateful for their support.” “We’re always looking to reconnect with alumni with whom we may have lost contact.” “If anyone has a story to share about their time on Common Purpose we’d really like to hear it.” The charity works with a wide range of organisations and individuals across business, public and voluntary sectors and has over 4,000 graduates of its courses in the North East. Julia Middleton, who attended the celebration, has recently written a book called Cultural Intelligence; the Ability to Cross divides and Thrive in Multiple Cultures. n

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SLEEPING ROUGH CAN HELP Though still quite young, Middlesbrough and Teesside Philanthropic Foundation has won hearts and minds nationwide with its CEO Sleepout, now a sister charity, through which business leaders sleeping rough raise funds for good causes. Other parts of the country that have taken up the idea give 15% of their funds raised to Teesside causes. Chairman Andy Preston expects more than £500,000 to have been raised through CEO Sleepout in 2014, and is confident that total will top £1m in 2015 and £1.5m-plus the year after. Already an extra £75,000 has been passed to Teesside’s local charities,

good causes and community groups through it, Preston reports. The Foundation is also making regular Teesside Hero awards to “unsung” local community champions, who get a trophy and £1,000 towards a cause of their choice. The frst winner was Sue Gatley, who gave her prize to the Port Clarence residents’ action group she chairs, making the estate a better place in which to live and play. She saved Christmas for families and children there with a rescue plan, after a freak tidal flood threatened to ruin their celebrations. Dozens of homes were deluged by contaminated salt water, oil, sludge, silt and human slurry. Foundation patron Bill Scott, chief

executive of the Port Clarence based Wilton Group, said Sue had set the bar high. But further deserving winners have been feted. Liz Chambers, more than 40 years a volunteer, gave her £1,000 to Middlesbrough Sea Cadets, which she joined in 1972, using Royal Navy traditions to help children become responsible adults. As branch chairman, she did much to secure the cadets their first permanent home in a 70 year history. They secured Albert Park’s East Lodge in 2012. A third winner, Paul Burgum of Billingham, has raised more than £100,000 for good causes, besides running his own charity to inspire young people. n

CHARITY BEGINS AT HOME Wealthy donors in the North East prefer to put their support behind local causes, according to Andrew Miller, regional director in the North East for Barclays Wealth and Investment Management. He says research shows that 67% of high net worth individuals in the region

would rather give to local rather than global causes – “a figure matched nowhere else in the country,” he points out. “And there’s no sign of that changing anytime soon.” Barclays, which runs a philanthropic service, has calculated 59% of high

net worth individuals in the North East – people with more than £500,000 or currency equivalent in investible assets – plan to give to charity during their lives, against a national average of 49%. Barclays has a guide available, Philanthropy: Your Guide to Giving. n

EVERYTHING IN THE PARK IS LOVELY Volunteers from Darlington Cares, a partnership of local employers, are working on a £1m project to improve three of the town’s parks. The Big Lottery, Heritage Lottery and Nesta are helping organisations to sustain and make the most of

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the country’s parks. Darlington was one of 11 towns chosen from 200 applications, and the only one in the North East to win funding for an 18-month pilot project. It is being managed by Groundwork North East with

support from Darlington Council. South Park, North Park and the Denes are all benefiting. Darlington Cares also supported a Salvation Army appeal to give hundreds of children a memorable present for Christmas. n

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12 FIRMS STAND OUT Twelve North East based businesses have recently been highlighted as outstanding contributors to their local communities. They are Darlington Building Society, Esh Group, Gus Robinson Developments, Northumbrian Water Group, Sage (UK), Greggs,

Shared Interest Society, Derwentside Homes, East Coast Mainline, Johnson Matthey and Gentoo Group. These 11 won awards from Business in the Community for initiatives which tackle a range of important issues, from building stronger communities, to

inspiring young talent, education and sustainability. On the golf courses it may be hard to find any club matching Slaley Hall Golf Club in Tynedale, which has raised £250,000 for children’s causes across the North East. n

THE ART OF HELPING YOUNG FOLK Tees Valley Community Foundation has been promoting Trinity Youth & Children’s Project which, through

creative arts, brightens the future of children and young people (up to 19) in and around North Ormesby.

This foundation (previously Cleveland Community Foundation) was established in 1988. n

TOGETHER WE CAN

MAKE MORE POSITIVE IMPACTS ‘I’ve been given the challenge to champion responsible business across the region. I know that by working together we can unlock more innovation and opportunity to help the communities in which we work and live. Are you interested in building a fairer society and a more sustainable, prosperous future? It makes good business sense, so let’s talk.’ Peter Walls, CEO, Gentoo Group HRH The Prince of Wales’ Ambassador for Responsible Business in the North East

0191 525 5000 HRHAmbassador@gentoogroup.com

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digital In association with

Momentum in the regionâ&#x20AC;&#x2122;s digital sector is gathering pace, with inward investment, creation of skilled jobs and home-grown global successes all on an upward curve. And all signs point to more of the same in 2015, despite the looming threat of a shortage in skills.

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digital

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A DYNAMO OF IT DELIVERY The region’s IT sector is creating more and better jobs to the benefit of the North East economy as a whole, says Bob Paton The North East’s IT sector is hugely successful, as it’s increasingly recognised. It gives work to more than 32,000 people. And it’s continuing to create many new jobs in line with the North East Local Enterprise Partnership’s strategic economic plan for more and better jobs in the region. Corporate names here include the FTSE 100 software company Sage – the region is its birthplace and hosts its global HQ – and also you will see British Airways, BT and a worldleading gaming industry that includes Ubisoft, the largest independent game publisher in Europe. There are also global technology companies such as Accenture and Hewlett-Packard, which have grown their workforces in the North East. These employers have shown their commitment to the region by forming the Dynamo North East IT network – this, to lead an expansion of the regional IT sector. Dynamo aims to promote and grow the industry through collaboration. It works with all the local technology bodies, all levels of the education sector and all business organisations, as well as support hubs such as Ignite 100, Sunderland Software City, Digital Union and Digital City, In fact, the North East IT sector has never been more connected and collaborative than now, and this will be a key strength for years to come. Dynamo’s ultimate goal is to double the number of people working in the North East IT economy. However, a recent

Dynamo survey highlighted the region as having more than 2,000 IT industry vacancies. So a key part of Dynamo’s strategy is to drive the IT skills agenda in the region, and to increase the pool of young people ready to join our sector. Recently Dynamo launched the North East IT Skills Strategy, setting out a comprehensive and long-term approach linking business and education. Through this strategy the region could enjoy a unique position in the UK’s IT industry, and become the foundation for growing the North East IT sector in years ahead.The strategy covers primary and secondary schools, colleges and universities. It includes key goals such as getting more women into IT and increasing the number of IT apprentices in the region. For primary schools, the aim is to have a Code Club in every school in the North East. Code Clubs provide the spark of early interest in technology among young people. These clubs are formed in the schools with the help of IT professionals, who encourage and inspire young people to learn computer programming skills. They give valuable insight into skills needed for an IT career, yet also show young people that programming can be fun! Over the last 12 months Code Clubs have multiplied. Ignite 100, regional co-ordinators for national educational charity Code Club, are doing a great job in raising the club numbers. A year ago the North East had fewer than 10. Now it’s approaching

100. Another Dynamo aim is to attract more women to the industry. Accenture for example is supporting initiatives such as Computer Clubs 4 Girls and Girl Geeks. These focus on showing girls how exciting technology can be, getting them to think about IT as a potential career path too. Many more IT apprentices are needed too, especially within SMEs. An apprenticeship is an excellent way into the IT industry. Setting up an apprenticeship scheme is a complex and time-consuming process, though. Few SMEs have resources to tackle it. To make things easier for them, Dynamo has developed a Level 2/3 North East IT Apprentice Hub, helping SMEs to define an apprenticeship framework and access the training that apprentices need. Other industries such as construction and engineering have apprentice hubs. The Dynamo IT Apprentice Hub mirrors many of the approaches these industries have pioneered. Dynamo is harnessing the energy and ambition of the North East IT sector. It’s making significant progress on the skills agenda. We acknowledge, though, that more has to be done. Our focus is on ensuring we maintain the momentum. We’ll continue to work together, building a skills pipeline supportive of our industry’s growth in years to come. n Bob Paton is managing director at Accenture and vice-chairman of Dynamo.

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digital

overview

HANDS ACROSS THE POND More and more of the region’s digital stars are proving if their endeavours are good enough for the UK market, they’re good enough for the USA. But a lack of skills continues to prevent some firms from realising their true global potential The global status the North East’s digital and creative sector enjoys is highlighted by Geordie expat Steve Ramsay’s decision to form links with its firms. Ramsay is, after all, a director of Microsoft Technology Centre in Boston, Massachusetts. But so impressed is he by what he sees during visits home that - through the UKTI, British Consulate and NewcastleGateshead Initiative – he’s encouraging businesses of the region to explore opportunities to expand and invest in Boston. An initial mission has already gone out across the Atlantic. Meanwhile, incubator work is underway at Campus North, of which Sage plc - the only software business in the FTSE-100 - is founding sponsor. Campus North is the Newcastle home of Ignite 100, Europe’s first £1m tech accelerator programme, which is encouraging self-starters. Co-founder Paul Smith is optimistic, and the start of daily flights between Newcastle and the USA from May 2015 should help the passage of co-operation. Graeme Fletcher, head of enterprise technology and development at Sage (founded 1981) now believes the North East is London’s main challenger as a tech hub. Around 84% of the North East firms are headquartered in the region. Sage itself has recently acquired, for £96.9m, the US-based

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provider of payroll and human resource services, PAI Group Inc (PayChoice). This boosts Sage’s presence in the growing US payroll sector and speeds its move to the cloud in this market. It was also one of two big Sage buys in a year. It also purchased, for £12.87m cash through its German subsidiary, the German payroll business Exact Holding. This increases payroll revenue in Germany to about £24m, making the North East-based software supplier one of Germany’s two leading players. Digital diligence will grow this year through the setting-up in the North

benefit from the new vista. Digital Catapult Centre, North East and Tees Valley, will link with its siblings at Bradford and Brighton, and with the Digital Catapult Centre in London. North East achievement is also driven by the likes of Digital City in Middlesbrough, Evolve in Sunderland, the Toffee Factory and Newcastle College of Digital Skills Academy, with Digital Quay at Gateshead to follow soon. The skills academy at Newcastle College, opened in 2013, is training and educating both young people

Expect many brilliant digital innovation communities in the region to benefit from the new vista East of one of three Digital Catapult Centres planned nationally. Both the region’s Local Enterprise Partnerships are involved in the centre’s creation at Sunderland’s Software City, opening in March. Sunderland Software opened a £9m facility in 2013 accommodating firms. Universities and businesses will bond there. Neil Crockett, chief executive of the catapult centre, expects “many brilliant digital innovation communities in the region” to

and adults in ICT, giving digital skills for career purposes. It works with Accenture, BT, Hewlett Packard, Sunderland Software City and Ignite 100. Newcastle City Council’s Go Digital team is promoting the spread of faster broadband for city businesses. On Teesside, Digital City in its first decade has shown a value of £174m annually to that area’s economy, £62m of it to Middlesbrough alone. In the £4m Boho Five building taking shape at Middlehaven, there is one of the >>

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digital

overview

Safe and sound: Rising stars in digital include REALsafe Technologies in Durham, whose co-founder Zoe Farrington came a close second nationally in an Emerging Entrepreneur of the Year event held at Sheffield during the MADE 2014 Festival. Suffering: Dan Kitchen (left) and Chris Gill at Razorblue feel the skills shortage North East’s largest regeneration schemes, which will house digital and creative start-ups. The sixstorey centre is the next phase of the DigitalCityBusiness (DCB) development. It is jointly funded by the European Regional Development Fund Competitive Programme 2007-13 and the Homes and Communities Agency. Middlesbrough Council is delivering, Rising stars in digital include REALsafe Technologies in Durham, whose cofounder Zoe Farrington came a close second nationally in an Emerging Entrepreneur of the Year event held at Sheffield during the MADE 2014 Festival to celebrate entrepreneurship. She and her business partner Andrew Richardson have developed the smartphone app REALsafe, enabling ambulance services to locate faster any motorcyclist involved in an accident. It’s the first app connecting the public directly to an emergency service. On the cusp of overseas growth, its applications may also spread into defence, railways and marine work. Few if any have done more to win digital recognition for the North

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East internationally than Herb Kim, considered one of the top 100 digital power brokers by Wired UK magazine, and among the top 100 most influential people in UK media by The Guardian newspaper. Born in New York of Korean parents, he brought management experience from firms such as O2, Bertelsmann, IBM and Dow Jones when founding the Thinking Digital Conference, one of Europe’s best known events of its kind, of which he is chief executive, and which will be held this year at the Sage, Gateshead, on 19 to 21 May. Annually in the North East, this draws multi-talented speakers from technology, media, science, industry and the arts to address international gatherings - forward thinkers from many fields and disciplines, eager to stay on frontiers of electronics. Paradoxically, the need for fresh talent in our region is dire. Women and young people could fulfil that need better. Only 11% of IT employees in the UK are women, according to the Chartered Institute for IT and E-Skills UK. However, digital strategist Leighton at Sunderland and London sets an

example with its percentage now up to 21. As for young recruits, a campaign is underway to enable students to access 200 creative apprenticeships with regional firms. Creative North, launched by Rob Earnshaw, director of the Youth Training Academy in Gateshead, aims to have the places by next August. Demand is being felt at Hedgehog Lab in Newcastle, which struggled to find mobile developers, and Razorblue, a specialist in consultancy, managed IT services, hosted solutions and connectivity for SMEs, business parks and public sector organisations across the UK. Razorblue has won more than £2m worth of new work but has had difficulty in filling six jobs, and filling apprenticeships, even though the Catterick firm works from Newcastle, Leeds and York, and plans to open on Teesside. Many of the existing 35 staff have gained senior positions since the company’s start in 2006. Technical director Dan Kitchen says: “We’re shocked by the lack of skilled people and apprentices, especially among 18 to 25s where unemployment is high.” Commercial director Chris Gill feels a brain drain out of the region doesn’t >>

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digital company profile

DIGITALCITY – CELEBRATING 10 YEARS OF SUCCESS

The DigitalCity is an economic regeneration project in the Tees Valley, steered by Teesside University, Middlesbrough Council, Stockton-onTees Borough Council, Redcar and Cleveland Borough Council, Darlington Borough Council and Hartlepool Borough Council. The objective of the project is to create a self-sustaining, vibrant cluster in the Tees Valley based on digital media and digital technology initiatives with world-class people and projects. The project was initiated to support a step-change in the Tees Valley and wider region based on innovation and imagination. Built on Teesside University’s worldrenowned expertise and reputation in digital media and digital technology, DigitalCity Innovation is based in the Phoenix Building which also houses digital businesses, research teams,

serviced meeting and seminar facilities as well as outstanding film and sound studio recording facilities. DigitalCity Business is the business driver for the Tees Valley – operating from key locations across the five local authority areas that house some of the region’s most enterprising individuals and innovative businesses. Applying digital technologies to business can have a huge impact on productivity and DigitalCity offers an opportunity for companies to apply fresh thinking and develop the knowledge required to address real issues within their workplace. Working with industry experts, practitioners and researchers DigitalCity is able to develop the thinking on tomorrow’s challenges to encourage take up of new technologies and new engagement in research and development activities.

Supporting the ongoing work of the DigitalCity initiative, we are growing the digital and creative industries cluster by attracting and retaining new graduate talent and new innovative companies. We are developing and enhancing skills to improve employability and inclusion and continue to raise the profile of DigitalCity on an international scale, supporting the development of links with other communities and projects across the world. “Just a few years ago the idea of a thriving digital cluster in Middlesbrough was a dream. Today, DigitalCity is a successful and vibrant project which has a world-class reputation for creativity, innovation and talent. This reputation is built on Teesside University’s standing in the digital media and digital technologies sector.” – Professor Cliff Hardcastle, Deputy Vice-Chancellor (Research and Business Engagement), Teesside University. Whether you’re an entrepreneur with a business idea, an established business looking to expand, a start up, one that’s looking to relocate or an organisation needing product development or finance, we’d love to work with you. n

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digital help. The region needs more talent like Martin Rosinski’s. At 21 a Newcastle University electronics graduate, he set up with his father Jarek a mobile gaming and community chat app. Eight years on, it has 27m users worldwide. Their Cramlington company also works from Gothenburg, London and Ipswich, employs 60 people and its £4m income annually could double soon. Other outstanding businesses include, on Tyneside, Nomad Digital and Aspire Technology, both in the Tech Track 100 list of Britain’s fastest growing tech companies. Nomad is the world leading provider of on-board server solutions for trains and other transport, and was an early choice for the nation’s Future 50 programme of encouragement for high growth tech businesses. Gateshead’s Aspire, also an awardwinner – growing year on year since 2006 – specialises in hosted services, data centre solutions, communications and traditional IT support. The Labour Party has hired it to equip the party for the next General Election.

overview

The speed of progress by some firms is remarkable. Orange Bus in Newcastle in four years has grown its workforce to 40 serving the like of Philips, Sage and Capital, and it has developed an Aston Martin Racing app. There’s a blend of experience and character in the North East sector too. To cite just two examples, Peter Hunt and Dan Smyth. Hunt, having worked for IBM in Glasgow, Newcastle and California, sold customised software solutions from home in Blaydon back in 1979 in the early days of computer technology. Following an initial contract with Sedgefield Council in 1992, Orchard has become a leading provider of software for social housing and the public sector generally. Turnover is now £15m. Smyth is managing director of Bede Gaming, a Newcastle supplier of software for gambling and social gaming on mobile, tablet and online. He and chief executive Michael Brady founded the firm, in 2012. After dropping out of a software engineering degree course at Durham University,

OUTLOOK CLOUDY Traditional IT set-ups may be costly and need regular maintenance. Outsourced cloud based management can boost productivity, security and save time and money otherwise spent on IT, champions of cloud say. The North East Chamber of Commerce is working with Atlas Cloud and investment manager and financial planner Brewin Dolphin on a programme bringing firms together for cloud technology. Sceptics say it is vulnerable like everything else. Adobe, Knight Capital, Microsoft Windows Azure, Healthcare.gov, and Amazon all have stories of cloud failure, and there are many reasons in their book as to why cloud and perfection is not synonymous. These include application bugs, spikes in customer demand, freezeups, security breaches, storage and third party service failure, insufficient disaster recovery procedure and, of course, human error. Atlas Cloud, which is working with its partner Onyx Group in the region, says that among other benefits it offers data halls resistant to any fire damage and guarded by external 24/7 security including CCTV and other monitor systems. Also, all its data centres are in the UK.

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he gained more than a decade of experience in the gambling industry – roaming the world as a professional poker player and web developer. He then founded Crown Bingo in 2005 and took things on from there. Since 2008 he has also run Newcastle Marketing Services, a leading support for the online gambling industry, and is an investor in several online businesses, including one of Europe’s largest online bingo operators. If experience counts, he’s sure to be a tough competitor when the chips are down. n

Global acclaim: Few if any have done more to win digital recognition for the North East internationally than Herb Kim, whose annual Thinking Digital conference is followed globally

LIFE’S A GAME Some of the North East’s most creative talent is developing video games for international markets. Companies such as Eutechnyx, Ubesoft Reflections, CCP Games and GameHorizon are building the sector’s reputation. Among the North East collectives Digital Union brings together video games developers and creation studios, also those involved in mobile apps, software development, and web designers. It has more than 100 members.

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digital company profile

BUSINESS AND EDUCATION COLLABORATE TO ADDRESS SKILLS SHORTAGES With skills shortages in the tech sector showing no signs of letting up, employers and educators are collaborating to ensure that the UK has a talent pipeline of skilled people that will enable businesses to grow. More than 1,000 Tech Industry Gold Apprenticeships have now been delivered and programmes are now up and running at centres across England. The courses are designed to create skilled staff to support businesses programmes, and so far include IT Technician, Software Developer, Database Developer and Cyber Security, as well as new Trailblazer apprenticeships in Technical Support, Network Engineering and Digital Marketing and Media. Intraining, working with Newcastle College (both divisions of national training provider, NCG), is one of the training providers that has had apprenticeship programmes licensed as Tech Industry Gold. This means those programmes have been kite-marked for their excellence by an employer panel, so that employers can ‘buy with confidence’. As a licensed training provider, Intraining, in partnership with the college’s Digital Skills Academy, is working closely with the Tech Partnership on a range of skills topics, including development of the new Trailblazer Apprenticeships and Cyber Security Apprenticeships, as well as training courses for more experienced IT staff. Tech Industry Gold course standards aim to give apprentices the technical, interpersonal and business skills they need to carry out in-demand job

roles in software and web development, cyber security, technical support and database analysis. To be accredited, training providers must show that they can provide excellent support to both apprentices and the companies they work for, to ensure apprentices become productive more quickly. James Lawrence, senior talent manager at Visa Europe said: “Employers like Visa Europe want to be confident that the apprenticeship we deliver is of an outstanding quality. Where a training provider’s programme has been accredited as Tech Industry Gold, we can have that confidence. We at Visa Europe are likely to choose accredited programmes over non-accredited ones because we know they have been designed by employers for employers and the training delivery has been quality assured.” Head of Apprenticeships for the Tech Partnership, Mark Heholt, said: “The Tech Industry Gold apprenticeships are designed for and accredited by

industry experts to meet the growing skills needs of businesses of all sizes and sectors across England. It is vital that businesses make the most of all the talent pools available to them, and employing an apprentice gives business to help mould the staff members that they need to be successful.” “The Tech Partnership is delighted that Intraining and the Digital Skills Academy at Newcastle College has demonstrated that they achieve the high standards set by Tech Industry Gold accreditation. The employers’ panel were particularly impressed that the college was able to offer such bespoke services to employers and excellent levels of flexibility to apprentices.” n Employers can go to www.e-skills. com/industrygoldapps to find out more about the benefits and process of recruiting apprentices, or to find a Tech Industry Gold programme in their area.

The Digital Skills Academy, in collaboration with the Tech Partnership, are developing bespoke Higher Apprenticeship programmes, based on our bespoke Foundation degrees, to meet the skills shortage for both the large and small employers in the IT sector

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digital company profile

NEWCASTLE COLLEGE, SUPPORTING THE FUTURE OF THE DIGITAL SECTOR IN THE REGION Working with employers to ensure that the North East industry has the skills and pool of talented people it needs for the future, is fundamental to the success of this growing sector, says Geoff O’Neil, Director of the Digital Skills Academy at Newcastle College. We established the Digital Skills Academy just over a year ago, with the clear vision of working in collaboration with the IT and digital community to develop partnerships that lead to the creation of meaningful qualifications, relevant skills and a pipeline of talented people looking for a career in the technology sector. Whether it’s supporting the workforce through Higher Level Apprenticeships or creating a pipeline of job-ready graduates who have completed practical-based computing degrees, we are committed to supporting the future expansion of the IT industry. The Academy has embarked on a journey focussed around working in partnership with employers. We have already built successful relationships with Hewlett Packard, Accenture, Ubisoft, Sunderland Software City, ignite and the Federation of Small Businesses, providing a range of programmes that will give employers access to skills that will help them grow and future proof their business. For example, our level 3 and level 4 apprenticeship programmes that we have created with Accenture. This model has been recognised as Gold Standard by the Sector Skills Council, e-skills. It allows an employer to identify

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their requirements so that we can design and tailor the programme, as well as support the recruitment of the apprentices. We are also a member of the Government’s IT Trailblazer providers group, developing more Apprenticeship frameworks for the sector. Our partnership with Hewlett Packard has opened many doors for our learners to progress straight into employment. HP has supported our programmes by giving a commitment to provide interview opportunities to many of those who come through the Academy as well as holding direct recruitment days. This is a huge breakthrough and gives learners a direct step onto the career ladder with a major player in the region’s IT sector. At the Digital Skills Academy we truly believe that this model of business and education collaborating to identify skills gaps and collectively creating solutions is the only way to effectively protect the future of the north east technology sector and stimulate future growth. It has been very encouraging to see that local businesses are still committed to invest in training and growth, despite the recent economic downturn. It is also vitally important that we engage people at a young age - through school

coding clubs for example. Inspiring them that there are fantastic careers right here in the region and we will support them to achieve their ambitions. “As well as supporting businesses, harnessing and encouraging learners to be aspirational and entrepreneurial is very much at the heart of what we do. Many of our learners have developed their own projects, such as the network for community group Kids Kabin in Walker, mobile app for the North East Environmental Reporting Information Centre (ERIC), the digital gaming club for cross college learners (run by students for students), and a number of websites and programmes for SME’s. “We couldn’t do what we do without the support of employers and our industry partners. It’s a great position to be in when you can say that many of our graduates leave us and go straight into employment because of the way we work with industry. “We want to hear from both large corporates and SMEs. To understand where the skills shortages are and work with them to create flexible programmes from entry level to degrees, as well as Advanced and Higher Apprenticeships. People of all ages come to us. They might be

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digital company profile looking to gain the skills for a new career or develop the skills they already have. Either way we have a number of programmes, from IT user skills and technical programming, through to cyber security and games development. We are also part of the Government funded Skills for the Workforce contract and can deliver free IT training to a wide range of organisations, not just those in the IT sector. I am delighted that the Digital Skills Academy is going from strength to strength and look forward to building on the relationships we have created and will create in the future. n If you are interested in working with the Digital Skills Academy or would like to discuss your training needs, contact Geoff Oâ&#x20AC;&#x2122;Neil, Director of the Digital Skills Academy on 0191 200 4811 or email geoff.oneil@ncl-coll.ac.uk

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communication & transport The North East has strong, award-winning assets in its port and airport facilities but competition cannot be ignored, and the same goes for the superfast broadband currently being spread through the region.

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communication & transport

A DOUBLE DELIGHT Both seaport and airport businesses are doing great things for the North East economy but they’ll need to keep looking over their shoulders, says Brian Nicholls

The North East’s capability in logistics, on the sea or in the air, must score a plus to many potential inward investors. But it’s an advantage that will have to be defended. Port of Tyne holds the ‘port of the year’ national title. Teesport is the UK’s third largest port – a Western European top 10 – while Newcastle International Airport has been named the UK’s best large airport two years running by customers. Port options also include Sunderland, Blyth, Seaham and Hartlepool. And the North East’s second airport, Durham Tees Valley, looks as if its fightback to viability could succeed. The Tyne port has shown record growth and cargo volumes over five years, plus the largest year on year growth and fastest growth among the UK’s top 30 ports – remarkably, since the Tyne’s historic sea export, coal, dried up decades ago. Today coal is imported instead, wood pellet too, fuelling power stations. More than 640,000 vehicles pass through three car terminals, making this the UK’s prime port for car exports - and seventh largest vehicle-handling port in Europe. The £13bn worth of goods handled yearly include about 60% of all North East exports. A container link with St. Petersburg is a

recent addition to services. Port passengers on the Amsterdam ferry route and on calling cruise liners are at record levels, though a close watch will have to be kept on Liverpool’s growing cruise aspirations. Following £60m-plus invested in the port in recent years, some £507m has been contributed to the North East’s Gross Value Added – a 38% jump

since 2009. Turnover nears £73m, the workforce numbers about 480, as a £180m wood pellet project progresses. Hopes of reviving a ferry service to Bergen have not been abandoned either. In a personal triumph, chief executive Andrew Moffatt has been named North East Business Executive of the Year. Teesport, owned like Hartlepool by PD Ports, handles over 56m tonnes of cargo yearly – especially steel, petrochemicals, and items of manufacture, engineering and retail. Tees and Hartlepool, chief executive David Robinson points out, support major businesses not only of Tees Valley, but of the rest of the North and Scotland. A £16.7m expansion of its container terminal led to a 27% increase in volumes in the first half of the year Teesport with 650 employees and revenues of £135m-plus, is also targeting cargo flows that start or finish in the region via Southern >>

The Tyne port has shown record growth and cargo volumes over five years, plus the fastest growth among the UK’s top 30

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At their service: Teesport supports businesses throughout the North East and in parts of Scotland ports, and a new intermodal rail terminal now operating is part of a £3m improvement in connectivity, linking to Felixstowe and Southampton. Opportunities for new routes to Scotland, the Midlands and the North West will arise with market demand. Hartlepool port, three miles from Teesport, provides bulk cargo facilities alongside the oil and gas sectors and the market in renewable energy offshore. Cargo business is also mounting at Port of Sunderland - up now to more than 593,383 tonnes. That should

rise further with the revival after almost 20 years of a key railway line. Port director Matthew Hunt says: “Under Sunderland’s Economic Masterplan, the port is highlighted as offering opportunity.” A new advanced manufacturing park projecting 1,000-plus jobs beside the Nissan plant will contribute. Hunt, citing more sailings and more private investment, says: “We’re seeing real change.” Port of Blyth is withstanding the closure of a major client, Rio Tinto Alcan. A £300m biomass power

Under Sunderland’s Economic Masterplan, the port is highlighted as offering opportunity

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station envisaged by renewables giant RES would have compensated. But uncertainties around the pattern of future UK energy provision thwarted that. Yet the port with up to 150 employees has been achieving record turnover. Chief executive Martin Lawlor says the port trust expects, with the Northumberland development company Arch, to revive the old Blyth Power Station site with units for start-ups and growers in oil, gas and renewables. Other relevancies include a new marine fuels terminal, and Lynemouth power station’s conversion to biomass. In County Durham, Seaham Harbour, one of Victoria Group’s six English ports, has plentiful warehousing and open storage, also good road and rail support to handle vessels of up to 8,000 tonnes with diverse commodities. n

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communication & transport

BEING BEST IS NOT ENOUGH IN ITSELF Two stumbling blocks beyond the region’s control are continuing to impede the growth and prosperity of the North East’s air services

East and west: The business community’s valued daily Emirates air service going east to Dubai and beyond will soon be joined by one similarly important United Airlines will provide going west to New York

The Heathrow controversy and passenger duty, though moderated, bedevil the region’s air services. Recognition as the UK’s best large airport two years running, with a linked-in Metro train service better than Heathrow and Gatwick’s connections in quality and value for money, won’t in itself guarantee future growth for Newcastle International Airport.

Invaluable as the honours are – bestowed by consumer conscious readers of Which? Magazine - the prospect of Scotland perhaps abolishing air passenger duty (APD) under new devolutionary powers (compared with abolition for children only announced in the Chancellor’s Autumn Statement) could hit Newcastle without total parity for airports >>

The prospect of Scotland abolishing air passenger duty under new devolutionary powers could hit Newcastle

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communication & transport outside Scotland. Newcastle is further challenged by a new scheduled service announced between the USA and Edinburgh only weeks after Newcastle secured a similar link. Meanwhile, Newcastle which draws business from Cumbria as well as the Scottish Borders, may also have to reckon on a Carlisle expansion. Its airport since 2009 has been owned by the Stobart Group on a 150 year lease, and is undergoing a multi-million pound improvement to provide an air freight centre, also passenger flights to Dublin (onwardly connecting to the USA) and London twice weekly from this summer. Take out all these factors and both Newcastle and Durham Tees Valley Airport (DTVA), looking to 2030 and 2020 respectively, expect unprecedented demand. That would be progress indeed for Teesside. Its annual passenger traffic fell to 161,092 recently – the lowest since 1972 against a 917,963 peak in 2006. DTVA’s owner, Peel Investments (DTVA) has discontinued its busy charter holiday business, and the only scheduled daily flights link Teesside with Aberdeen through Eastern Airways, and Amsterdam through KLM, the latter popular for its international routes avoiding Heathrow. Future emphasis will be on business customers and freight. Unused land is to be sold for housing. This would finance 9,600sq m of office space and 16,820sq m of industrial units, with perhaps 3,800 new jobs. Cargo business may be intensified via a freight siding nearby. DTVA bosses have twice missed out on Regional Growth Fund support. Their land holdings, however, remain a key strength. Peter Nears, the airport’s strategic

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planning director says: “We’re no different from a number of other smaller airports in having to diversify income sources.” James Ramsbotham, chief executive of the North East Chamber of Commerce, thinks the DTVA masterplan “bold and ambitious”, hopefully securing a long-term future. Newcastle, majority-owned by seven local authorities, was understandably jubilant at having finally secured a direct, daily scheduled connection with New York, starting next May. This can open the way to international capitals westwards, just as Emirates Airline has already opened many to the east. An upsize of Emirates’ booming daily

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at Newcastle, says: “We’re fortunate to have a robust and balanced mix of flights - a third scheduled, a third low cost and a third chartered.” During the recession, around 4.5m passengers a year went through the two airports. This should grow again. But a big handicap is the lack of Heathrow slots to cope with Britain’s internal routes, caused by a failure to resolve where London’s main airport should be in future. Decades of pontificating about this have enabled Dubai to overtake Heathrow as the world’s busiest airport. Meanwhile domestic services suffer. Newcastle and Teesside differ on preference. At Newcastle, a third

Newcastle was understandably jubilant at having finally secured a direct, daily scheduled connection with New York

service to Dubai, plus a strong year for Air France and KLM, have benefited Newcastle, as has a new Aer Lingus Regional’s Dublin service, offering onward facility to the USA. Passenger numbers could almost double to 8.5m passengers by 2030, and plans include developing a 175,000sq ft business park near Callerton Parkway Metro Station, with UK Land Estates. A £14m spend on extensions and further improvements to the passenger terminal is envisaged, along with new aircraft hangars. The airport’s private sector partners AMP Capital – Australia’s largest retail and corporate pension provider – have been investors since 2012, having earlier bought into Melbourne Airport. Dave Laws, chief executive

runway at Heathrow is favoured, whereas a new airport with four runways in the South East, maximising the availability of slots, is vital to DTVA’s recovery, a report by York Aviation and Oxford Economics suggests. Newcastle feels that with Heathrow enlarged, benefits to the regions would be more than doubly great than if, say, Gatwick expanded. Newcastle’s major client is BA, which is fighting Heathrow’s corner. Teesside’s main client is KLM, which does nicely out of no daily service to anywhere near London. The Government’s independent airports commission believes the Heathrow option would be best for the North East. Last word, if and when it eventually comes, will rest with the government of the day. n

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communication & transport

HOW FAST IS SUPERFAST REALLY? There was much back slapping when Culture Secretary Ed Vaizey announced the Government’s rollout of superfast broadband had reached more than 1m businesses and homes across the UK. And Openreach, BT’s local network for business, does have more than twothirds of the UK covered now. Farooq Haqim, North East regional director, has described BT as leading the North East’s economic recovery through being one of the region’s largest investors – creating jobs for engineers too. Yet industry groups and experts – including the Federation of Small Businesses - argue BT’s programme lacks ambition. While countries like South Korea plan 1Gbps coverage by 2017, the UK aims for 24Mbps 40 times slower. Shaun Fensom, who chairs a community broadband network and a trade body for digital businesses in the North West, speaks with more than 25 years’ knowledge of the digital sector when saying the slower UK progress inevitably stems from telecoms firms making the most of copper for their networks, and using optical fibre mainly for links to street cabinets. “It may be branded as ‘fibre optic’ broadband,” he says. “But connections to homes and businesses for the ‘superfast’ service are almost always copper, not fibre. Countries like Sweden have been replacing their copper networks to premises with pure fibre. So their businesses and homes get far higher speeds at much lower prices.” And how efficiently is broadband

John Monks: Business 50% better

spreading through the North East? Ask the Whitley Bay home worker who escapes midweek frustration of a disrupted or delayed email connection by watching Newcastle Falcons on BT’s weekend Sport, only to find the screen repeatedly black out, with no response

when he presses the “help” point. On the other hand, ask Roy Stephenson and John Monks. Stephenson, a maker of messenger bags, and John Monks, a former shepherd who gives online guides to walks around Rothbury, and >>

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overview

Roy Stephenson: Factor of 10 improvement

bespoke walking tours and holidays for individuals and groups, both find business through broadband booming. Stephenson, the “Grandad” in the Rothbury firm MadeByGrandad, is a former architect and co-founder of a successful software firm. Clothes making for his grandchildren led on to the bagmaking, also iPad cases, totes and more, which now sell globally. “Superfast has improved speed and reliability for me by a factor of 10,” he says. Monks, of Shepherds Walks organised from Kirkharle, expects superfast broadband to grow his business by 50%. The Whitley Bay complainant would side with about 40% of firms interviewed by the EEF who thought broadband networks “poor”. Either way, Newcastle at least is promised to be one of Europe’s best connected

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broadband cities next summer, with fibre broadband available to 97% of the city under a Go Digital Newcastle programme, run by the city council with funding from Europe, Broadband Delivery UK, and a £1.89m investment by BT. Businesses and homes there are promised up to 80Mbps. Small and medium businesses, also charities and social enterprises, can apply for a voucher worth up to £3,000 to get connected. They can also apply for up to £2,000 funding for equipment, and for free expert business guidance. Outside Newcastle, an iNorthumberland programme of broadband is being delivered by the Northumberland development company Arch, Northumberland County Council and BT. Corbridge was first in West Northumberland to benefit, and more than 1,200 businesses and

homes in the Tynedale area were early beneficiaries. BT was awarded this contract by Broadband Delivery UK. The company is contributing £2.9m towards fibre deployment in ‘non-commercial’ areas. The county council is investing £7m plus its £7m share of BDUK funds. The remaining £2m from the European Regional Development Fund will ensure fibre connections reach more than 2,600 smaller businesses and home workers in Northumberland. Fibre broadband benefits more than 15,000 homes and businesses in Hexham, Ponteland and Prudhoe. Some areas not previously included are now being brought in. The UK already does more business online than any other European country, and superfast broadband could be in 95% of UK homes and businesses by 2017, when South Korea is due to take its big leap forward. n

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communication & transport

BIG BOON TO HOME WORKERS Home workers with superfast broadband can now access business IT systems through remote desktop, cloud computing solutions. They’re also able to ‘sit in’ at head office by video, leading IT executive Mike Odysseas points out. And it all helps businesses meet the Government’s new flexible working legislation, which gives employees with more than six months’ service the right to flexible working hours including, where appropriate, option to work from home.

Odysseas, managing director of Odyssey Systems at Stockton, says firms can also become more productive. Here’s two talking points, though. It’s nearly 50 years since video conferencing became possible in this country. And a recent Deloitte survey underlines that firms are being prevented from many IT benefits by the size of IT budgets applying. On average, most budgets are totally calculated on support for essential services, with only 22% towards new developments. Piers Linney, co-chief

executive of cloud services provider Outsourcery suggests bosses should move on from simply a ‘keep the lights on’ approach. n

Most budgets are calculated on support for essential services, with only 22% towards new development

FIGHT FOR THE DRIVING SEAT On buses, some of which commuters can now work online as they travel, debate about control of the transport is intense. A new Quality Contract Scheme, run by Metro operator Nexus from 2017, could see buses back under full control of the public sector through the region’s new North East Combined Authority, which would commission

and co-ordinate bus travel, instead of the privatised bus services that had benefited from deregulation. The bus companies, about 17 in all, don’t want to be answerable like this. It is claimed, however, that a £272m benefit would result, judging by the arrangement already applying in London, and about to be introduced

A new scheme, run by Metro operator Nexus from 2017, could see buses back under full control of the public sector

in Manchester and, probably, Sheffield. Nick Forbes, regional transport leader for the combined authority, argues that only in London, which escaped deregulation, have passenger numbers increased in recent years. North East travellers, on average, make 77 bus journeys a year – much higher than in many other areas of the country – but their numbers fell 13% in a decade. Both sides have their supporters. Neither seems vociferous about synchronising bus and Metro train timetables in Tyne and Wear – as applied pre-deregulation. This failure presently is the bane of many commuters’ lives. n

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exporting The North Eastâ&#x20AC;&#x2122;s enviable reputation as an exporter should not hide the fact that there are still markets abroad ripe for the taking, with advice and support at both ends to make the groundwork worthwhile.

bqlive.co.uk

exporting

opinion

JOIN THE HAPPY TRAVELLERS Statistics show that exporting firms become more successful businesses, and a lot of support is available for aspiring entrants to the world of international trade, says David Coppock It has been another great year for North East companies exporting their goods and services around the world. We have held two very successful Export Weeks in the region and took part in the International Festival for Business to showcase the many benefits to companies that trading abroad can bring. International business matters. Exporting firms are 34% more productive, 75% more innovative, spend three times as much on research and development and are 12% more resilient than those that don’t export. Prosperity for the North East and the North in general will be driven by getting more businesses to begin exporting, and encouraging those already exporting to get into new high growth emerging markets. Export Week has again been fantastic in the North East. Hundreds of companies have taken part in events. There have been lots of expert inputs and many business deals progressed. As part of Export Week in November we were privileged to host Explore/ Export at Newcastle Racecourse. There, experts from more than 60 countries were on hand to help companies “explore” the possibilities of exporting to their countries. Ultimately, the flagship roadshow was about winning business around the world, helping firms grow by derisking

sales and becoming more profitable. For those new to exporting, UKTI has a dedicated team of International Trade Advisers (ITAs) offering expert advice and access to a wide range of services to help companies reach new markets. In the North East, we also have two medium size business (MSB) ITAs who work exclusively with companies that have an annual turnover of between £25m and £500m to help push them to the next level of international success. Virtually any company can export its products and services – from singly owned operations to large corporations employing hundreds – and opportunities abound for North

East businesses. There is an unbelievable appetite for British products and services overseas, and the time to avail of these prospects has never been more opportune. In the last year we’ve seen strong export growth in the food and drink sector, also in manufacturing and machinery, while the automotive, chemicals and pharmaceutical sectors remain strong performers in the region. Popular markets showing significant growth include the USA, Belgium, Finland and Canada with emerging markets in Asia, including Indonesia, worth considering in 2015. Next year market visits are planned to South Africa, United Arab Emirates, South Korea, Germany and Brazil. Our regional programme will reflect some key markets offering the greatest potential for North East businesses. By travelling with a group, companies can benefit from the added support of UKTI’s expert international trade advisers, our overseas commercial officers and their fellow delegates. Researching a new market is vital. Sometimes a visit to it, with face-to-face meetings with potential customers, really can pay dividends. Even if your company already exports it’s important to keep international trade to the fore in business growth plans. UKTI is here to help and we now offer a service - Business >>

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exporting Opportunities - where you get hot, live feeds of business leads direct from our global commercial officers. Make sure you are signed up for this free service (your ITA can help you). To find out more about services

opinion

available through UK Trade & Investment to help your company succeed overseas call the North East International Trade Hotline on 0845 05 05 054 or email: enquiries@uktinortheast.org.uk.

You can also follow us on Twitter at twitter.com/UKTINorthEast. n David Coppock is regional director for UK Trade & Investment (North East).

Where most North East exports go Europe and the vast US and Russian markets dominate the region’s exports

USA

Netherlands

Spain Belgium

Russia

of late payment and debt. One legal specialist in overseas debt recovery, Lovetts plc, has seen the number of overseas debts it is chasing for clients increase fivefold in 12 months as the

UK’s exports have continued to rise. But it has collected more than half a million pounds from businesses abroad and claims that 65% of debts referred to its overseas collections receive payment. n

LOOKING BEYOND EUROPE Around 82% of Northern entrepreneurs see the future success of Britain’s exports lying outside the EU, according to an EY survey. It also found that almost half (47%) believe

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a prosperous export market will rely on more support from the Government. Simon Whiteside, EY’s tax director in the North East, says: “Europe will remain the UK’s biggest trading

partner. But clear opportunity to grow outside the EU seems apparent. Companies should look for opportunities in high growth emerging economies.” n

bqlive.co.uk

exporting

overview

THE OPPORTUNITIES ARE THERE Although offering huge opportunities for North East goods exporters, China and Africa continue to be underestimated by the regions firms A lot is said about China but not a lot done to build trade there, according to Xu Bing, deputy director general of China’s Foreign Trade Centre. Indeed, the UK’s share of exports to the Chinese market has fallen to around 1% over a decade. Now there’s a North East company equipped to make China’s prospects more appealing through a mission there next May. Fast Track China (UK) Ltd, established last April, is staffed by export professionals and Chinese nationals. It also has a team based in Zhengzhou, working directly with clients to promote and develop their interests in the country. Fast Track China offers prime positioning at exhibitions, and events to highlight products and services from the UK and Europe, along with meetings with selected buyers for the China market. It provides support from its bilingual, dual-based team, whose other services range from translating of marketing materials to introducing target audience buyers. The Chairman is Dr Zhengming Yang who was, for nine years, business development manager for China at UK Trade & Investment in the North East. The chief executive is Richard Sice, a chartered marketer versed in supporting the export of manufactures and services. The company also plans an inward visit to the UK from China in June, and further plans this year include the development

of two more centres in China. Companies on the first mission in 2014 included Zytronic at Blaydon; Innovative International Technologies and Sevcon at Gateshead, Fit Infrared in Darlington and training service industries such as Annie Barr Associates in Stocksfield. Sice says: “The overall package of support helps companies achieve a soft landing in the Chinese market. Additionally, we ensure payments are made in sterling, dollars or euros, to ease these first steps into a strong, growing market.” Africa also needs consideration. The Minister for Africa Mark Simmonds made the point to North East businesses in Newcastle recently. Some North East Chamber of Commerce clients already trade there successfully, or are thinking of doing so. Many more could and Simmonds recommends Angola, Cote d’Ivoire, Ghana Mozambique and Tanzania, whose average growths top 6%. Simmonds says: “Many opportunities exist across Africa for UK companies to provide the investment and expertise to tap into agricultural, manufacturing and service industries.“ He acknowledges challenges Africa has presented in the past and says the Government is working to improve the business environment and address capacity constraints. Despite unrest and ongoing social problems in some parts, it’s in Africa that six of the fastest growing

economies globally are to be found. Brian Thorpe, Barclays head of corporate banking North East says his bank, through an established branch network in 12 African countries and the Indian Ocean, is committed to helping businesses of the region, including in relation to local knowledge and payment guarantees in unfamiliar territories. The North East is rightly proud to be the only region of England with a positive balance of trade, with 75% of what is made here being exported. The exports, what’s more, have risen 2.32% in the past year – again the best performance – and they now verge on earnings of £12bn. As elsewhere, the Netherlands is our top customer. Big operations like Nissan and the offshore and chemicals sectors – the latter an inheritance of the once great ICI - still account for the lion’s share of the North East’s success. Services too can make a big impression, such as Northumbrian Water winning a £22m contract to design, build, finance and run a new waste water treatment works in Gibraltar, with a complementary 20-year phase of operation and maintenance. Small companies in the North East and Wales are least likely to export, software group Citrix concluded from a spot check putting the figure of small enterprise exporters at 27% of the region’s total, compared with 47% for the South East and >>

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exporting 43% for Yorkshire and Humberside. However, UKTI is pressing medium size and smaller businesses to seize opportunities. Its recent export week in the region highlighted a year’s endeavours to this end. Albion Ventures, a venture capital firm, estimates only 37% of SMES in the UK entered new markets in the past 12 months – against 53% last year, and only those in London and the North West went against that trend. North East SMEs that do take the plunge and cross the Pond, the North Sea or the Channel won’t be alone in their class. A national survey of 2,500 small companies by www.freelancer. co.uk suggests 54% of small businesses may try to sell more products and services overseas, the upturn in the economy having provided more resources to invest. British goods and services are much in demand. A-Belco at Ashington has been named the country’s best exporter. It makes explosion-proof electrical equipment and its sales successes, particularly with a pioneering floodlight for the oil and gas industry, helped it gather the Achievement in International Business award at the 2014 British Chambers of Commerce business awards. It had already won the North East exporter award run by the North East Chamber. A global network of distributors has helped its product revenue rise 30% in a year, and it recently acquired neighbouring Opsol, one of its main suppliers. Other North East firms building overseas trade cover a wide range of manufacturing and services. The Sunderland manufacturer Thermal Resources Management (TRM) has been enjoying a record 85% of its business from exports. It has done this working on three big international

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overview

projects: a metro system for New Delhi, and in Kuwait the world’s biggest university campus (1,285 acres) and the international airport there. It makes temperature measurers, industrial heating systems and fireproof wiring cable. Its thermocouple and trace heating equipment, unique in the UK, is in demand offshore and in aviation, electronics and automotives. Four other North East companies were on the latest Sunday Times International Track of Britain’s 200 private firms with the fastest growing overseas sales: Simpsons Malt of Berwick, a family firm founded in 1862, has shown 91.52% growth in foreign sales in two years. It employs 205 people, and its barley drawn from agricultural trading arms goes to beer, whisky and food manufacturers abroad. Oil Consultants of Washington in 45th place showed a 62.99% growth of foreign business in two years. Its 48 staff work in energy recruitment. Under chief executive Helen Smith they’ve achieved overseas sales of £24.7m. Express Engineering of Gateshead showed 58.48% growth of foreign sales in two years, a plant in Brazil contributing. GT Group of Peterlee showed 25.89% growth of overseas sales in two years, its precision engineering employing 266 people, and its “green” exhaust

parts, valves and seals reaching 50 countries. Meanwhile five more firms have recently been distinguished North East exporters in regional awards recently: A-Belco Ltd of Ashington, overall exporter of the year and SME exporter of the year, achieves 56% of turnover from exports. It manufactures explosion proof electrical equipment. Glanbia Performance Nutrition, of Middlesbrough, is mid and large exporter of the year earning 20% of its £69m turnover through sports nutrition foods. Cordex Instruments Ltd, also of Middlesbrough, won the new exporter award through results abroad with its development and manufacture of explosion proof inspection and imaging devices - including digital cameras, ultrasonic testers, IR windows and laser meters. Solo Thermal Imaging, of Darlington was named export team of the year, having designed and made what’s claimed to be the world’s smallest and lightest thermal imaging cameras. And Evolution Forwarding of Middlesbrough won the supporting export award for its logistics, which more than doubled in value in a year. Any firm wanting onto the first rung of the overseas sales ladder might find chatting with one or two of these businesses hugely valuable. n

GUARD AGAINST PAYMENT PROBLEMS The Government has an ambitious target of £1trn in exports to be achieved by 2020. However, firms must still take protective steps at the outset of any contract, especially to reduce risk of late payment and debt. One legal specialist in overseas debt recovery, Lovetts plc, has seen the number of overseas debts it is chasing for clients increase fivefold in 12 months as the UK’s exports have risen. But it has collected more than half a million pounds from businesses abroad and claims that 65% of debts referred to its overseas collections receive payment.

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T: 0845 301Creative 0041 | E: heyup@creativenorth.org Contact North today, to discuss discuss media sector than in other industries, and for good reason. They how your business grow. howwe wecan canhelp help your business grow. how we can help business grow. apprentice for just a few months are helping businesses to tap into new ways of working, creating a howAT weSETS canavailable help your your business grow. WH IVE NORTH APART FR O M THE R EST? T: 0845 301 0041CREAT | E: heyup@creativenorth.org Contact Creative North today, to discuss more inclusive workforce and bringing fresh, ambitious talent into more, and aNorth salary oftoday, justtoday, over per Contact Contact Contact Creative Creative today, North to discuss to £400 discuss to discuss T:Creative 0845 301 0041 heyup@creativenorth.org T: 0845 301 0041 | North E:| E: heyup@creativenorth.org T: 0845 301 0041 | E: your heyup@creativenorth.org the creative and digital media sector. how we can help business grow. 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Now really is the time to employ

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