CARDIFF THE CAPITAL CONNECTION
CONTENTS
2 | CARDIFF - THE CAPITAL CONNECTION
Page
1
Welcome to Cardiff
4
2
Deloitte in Cardiff
6
3
Introduction
8
4
Overview
10
5
The Capital Difference
12
6
Fast Growing Capital
14
7
The Workforce
16
8
Universities
22
9
Industry Strengths
28
10
Infrastructure
38
11
Cost Comparison
40
12
Financial Support
44
13
Useful Websites
46
The purpose of the guide is to provide information to help recipients make their own judgements about making business decisions as to whether to invest or operate in a particular city. The report’s contents were believed (at the time that the report was prepared) to be reliable, but no representations or warranties, express or implied, are made or given by Cardiff Council and Deloitte LLP as to the accuracy of the Report, its completeness or its suitability for any purpose. In particular, none of the Report’s contents should be construed as advice or solicitation to purchase or sell securities, commodities or any other forms of financial instrument. No liability is accepted by Cardiff Council or Deloitte LLP for any loss or damage (whether consequential or otherwise) which may arise out of or in connection with this Report. CARDIFF - THE CAPITAL CONNECTION
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1 WELCOME TO CARDIFF
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Over the past 20 years Cardiff has transformed itself into a thriving and vibrant city with some of the best cultural and recreational infrastructure of all the UK’s cities. Following significant investment in Cardiff, including the redevelopment of Cardiff Bay, the city centre and the Wales Millennium Centre, the city has grown as a destination for leisure, culture and retail, hosting the Rugby World Cup, FA Cup Finals and Ashes test matches, with close to 20 million people now visiting the city and annually spending £1 billion. Over the next 15 years it is the world’s middleweight cities, like Cardiff, that will be driving forward economic growth. Analysis by the McKinsey Global Institute highlights that in 2007, cities with a population of between 200,000 and 2,000,000 were home to 7% of the world’s population. However, this group is expected to contribute almost a fifth of total economic growth up to 2025, more than twice the expected contribution based on population numbers alone. Cardiff, as a city that is primed for growth, will be at the forefront of the middleweight city revolution. The data already shows that Cardiff is growing faster than other cities in the UK, supported by a skilled and competitive workforce, the best quality of life of any UK city, and big investment in the city’s business infrastructure. It is no surprise therefore, that Cardiff is expected to continue growing faster than any other UK city over the next
20 years. Despite its growth, the city remains a competitive location for investors and, with a ‘Team Cardiff’ approach between the City Council, the Cardiff Business Council and the Welsh Government, support for investors is always on hand. The city’s vision is now to build on this growth and development of Cardiff’s business infrastructure. Whilst the city has seen growth in employment across a number of sectors, there is still significant capacity to build on the competitive business services and creative sectors. With high numbers of graduates and a steady supply of skilled workers from across the city-region, Cardiff already has in place the building blocks to be one of the UK’s most competitive cities, and over the next 20 years the city aims to put in place development that will help Cardiff to become one of the most competitive in the UK in terms of its business offer. Investment in the city’s transport infrastructure, linking with the surrounding areas in the city-region, will strengthen the labour market and improve quality of life across South Wales. Key investment in the business infrastructure, including a new regenerated Central Square, and the development of the Enterprise Zone will create a world-class business environment. These developments will complement the city’s reputation as a great place to live, providing the quality jobs and opportunities for the city region that will make Cardiff one of Europe’s top quality of life capitals. Cllr Phil Bale, Leader, Cardiff Council
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Deloitte is delighted to be associated with this guide to investing in Cardiff which we hope you will find interesting and informative. The origins of Deloitte in Cardiff go back by more than 100 years to a time when Wales was a major international producer of coal and steel and home to the largest shipping line in the world. Many new entrepreneurial businesses were established in this area and many of those continue to this day. The last 30 years in particular has witnessed a change in the economy of both Cardiff and Wales. Coal extraction and some manufacturing have declined but what has emerged is a strong service sector and a value-added driven economy. In the 21st century Cardiff is proud of its history and looks forward with hope to its future. Deloitte is proud to have supported many of Wales’ leading businesses during this time and we will continue to play our part in the evolution of this vibrant economy, providing thought leadership and commercial guidance. Our aim is to drive excellence in Wales by connecting, engaging and informing. Our Cardiff offices are situated three minutes from Cardiff Central station. We provide the full range of services offered by professional services firms and we also support the quality and risk operations for the UK firm. We are continuing to invest and grow our presence in Cardiff with a current workforce of just over 300 people and significant plans to expand further in the near future. Wayne Harvey | Senior Partner | Deloitte LLP
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Deloitte Cardiff Delivery Centre In addition to our long standing core client services, Deloitte has been developing centralised business operations in Cardiff since 2006. This began with a small team helping assure that some of our compliance obligations were met for a defined part of our business. The results of this work were very successful, leading to an expansion to the rest of the business and replication of the business model to other functions. We have found that Cardiff offers us a capable, loyal, stable and dedicated workforce that delivers work of a high quality. We have therefore decided to incorporate the centralisation of more work in Cardiff as an enabler in our strategic growth plan with the creation of the Cardiff Delivery Centre. Our five year plan, announced in January 2015, is to create an additional 700 jobs. The new jobs to be created are as a result of demand amongst, for example, the banks, financial institutions and life sciences industries for services related to governance, risk and compliance. This centre will incorporate existing teams and add others which will deliver an increasing range of work, largely in direct support of deliverables and innovative offerings for our clients.
2 DELOITTE IN CARDIFF
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Cardiff is one of the UK Core Cities1 and is the capital of Wales. With a population of 351,700 it is the largest city in Wales and the ninth largest city in the United Kingdom2. It lies at the heart of the Cardiff Capital Region3, which is home to 1.5 million people. The city is also one of the fastest growing in the UK, with faster job growth than any of the UK Core Cities between 2000 and 20104. In addition to large increases in population and jobs, Cardiff has also seen a significant increase in the number of visitors. This has resulted in an increase in visitor spend of over £400 million a year in the past five years to over £1 billion in 2013.
Leeds
Manchester Liverpool 200km
Sheffield
Nottingham
Birmingham 100km
M5
Bristol
GREATWESTERN MAINLINE
M4
Cardiff
M25 London
Source: Cardiff Council / Google Maps
Cardiff is just two hours away from the centre of London by rail or road, with easy access to the country’s other important business centres. Cardiff Airport has direct flights to a number of cities across Europe, with flights to destinations across the globe through regular scheduled flights via Amsterdam and Dublin. Located on the M4, Cardiff has convenient connections to Heathrow which is a two hour drive from the city.
1
There are ten Core Cities in the UK that are the economically largest areas in England, Scotland and Wales outside of London. ONS 2013 mid-year population estimates The Cardiff City Region consists of the local authorities of Bridgend, Vale of Glamorgan, Rhondda, Cynon, Taff, Merthyr Tydfil, Caerphilly, Blaenau Gwent, Torfaen, Monmouthshire, Newport and Cardiff. 4 ONS mid-year population estimates 2
3
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3 OVERVIEW
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4 THE CAPITAL DIFFERENCE
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As the capital city of Wales, companies and staff based in Cardiff have access to a number of national institutions on their door step. In 1997 the people of Wales voted in favour of establishing a National Assembly which came into force in 1999. The National Assembly for Wales meets in Cardiff and takes decisions affecting the city and the rest of Wales. Investors in Cardiff are able to deal directly with national and city government leaders, meaning quick decisions can be made, and a support package through the ‘Team Cardiff’ approach means that all local partners are working together to support investment, regeneration and development. Support is provided by the Cardiff Business Council, a business-led organisation set up to grow Cardiff’s private sector by marketing and promoting the Cardiff Capital Region as a world-class destination for business investment and tourism. Cardiff Business Council also acts as the primary link between the City of Cardiff Council and the local business community, be they inward investors or indigenous businesses. Cardiff is also the commercial, cultural and retail centre for Wales, and is the focal point for business activity. As the home of the Millennium Stadium - which with a capacity of 75,000 and a retractable roof is Europe’s largest indoor arena - and the Millennium Centre – one of the UK’s leading arts and cultural venues, Cardiff is also the place where Wales’ major events take place, from international rugby and football, to the Welsh National Opera.
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The population of Cardiff has grown by 4.1% in the last five years5 compared to a national average of 3% and the city’s growth is expected to continue. Analysis of Welsh Government projections, and National Statistics population forecasts (using 2011 mid-year population estimates for Wales, and 2012 mid-year estimated for England) show that Cardiff is due to grow faster over the next 20 years than any of the other UK Core Cities, and even faster than London. The city’s Local Development Plan is to accommodate an additional 41,000 new homes, and 40,000 new jobs up to 2026. This growth is just that within the local authority – the wider city region is also due to grow and will support the development of Cardiff as the centre of commerce, culture and government in Wales. 20 year Projected Population Growth 2014 - 2034
30% 25% 20% 15% 10% 5% 0%
Investment in infrastructure is also forecast to drive future growth, supporting the city’s Local Development Plan and the development of the city-region. This includes £1 billion of investment in the region’s transport infrastructure as part of the development of a new metro for Cardiff. This investment is predicted to result in a large fall in journey times and a big increase in frequency of rail and light rail that will bring the city-regions population and labour force even closer to Cardiff citycentre. Investment in the Great Western Mainline, including a direct link to Heathrow, will see travel time to London fall to less than 100 minutes.
5
ONS mid-year population estimates.
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Source: Welsh Government mid-2011 based population projections; National Statistics mid-2012 based population projections
5 FAST GROWING CAPITAL
The city’s growth plan is supported by its graduate workforce, accessibility, leading universities, competitive cost for salaries and property and the best quality of life of any UK city6. Cardiff is a popular university destination and many students stay on in the city – this is reflected in the higher than average population age bands between 15 and 39. Recent investment, including the expansion of Deloitte’s Cardiff operation, the BBC’s new HQ in Central Square, and leading cyber security specialists Alert Logic decision to locate its European HQ in the city reflect the current status of the city as an increasing popular destination for businesses. Cardiff Population Pyramid 2014 Source: ONS mid-year population estimates
Aged 85 and over
UK Female Cardiff Female
Aged 80 - 84 years
UK Male
Aged 75 - 79 years
Cardiff Male Aged 70 - 74 years Aged 65 - 69 years Aged 60 - 64 years Aged 55 - 59 years Aged 50 - 54 years Aged 45 - 49 years Aged 40 - 44 years Aged 35 - 39 years Aged 30 - 34 years Aged 25 - 29 years Aged 20 - 24 years Aged 15 - 19 years Aged 10 - 14 years Aged 5 - 9 years Aged 1 - 4 years Aged under 1 year 10
8
6
4
2
0
2
4
6
8
10
Cardiff has also seen a marked increase in tourism in recent years, resulting in visitor expenditure of over £1 billion per annum, and 18.9 million visitors annually. The city boasts a range of attractions for visitors, from its city centre retail offer, to the Millennium Stadium and Cardiff Castle in the city centre, as well as Cardiff Bay, one of Europe’s largest waterfront regeneration developments. 6
2014 data on “Employment by occupation“ from ONS reveals that 49.9% of the Cardiff workforce are employed in Soc 2010 groups 1-3 (managers, professionals & associate professionals) compared with a national average of 44.3%.
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6 THE WORKFORCE
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Size of the workforce The Cardiff city-region is home to 1.5 million people, with over 350,000 living in the central local authority. Almost half of Wales’ total population live within the city region, whilst a total of 1.6 million live within a 45 minute drive of the centre. Within the city-region there is a total working age population of over 950,000 people. Population Data Total population
Cardiff
Aged 16 - 64
Number
Number
% 68.0%
351,700
239,200
City-Region
1,493,600
955,000
63.9%
Wales
3,082,400
1,926,600
62.5%
United Kingdom
64,105,700
40,915,200
63.8%
Source: ONS mid-year population estimates
Census 2011 Drive Time Area – Cardiff City Centre
Abergavenny Ammanford Ystradgynlais Merthyr Tydfil
Brynmawr Ebbw TredegarVale Rhymney
Cinderford
Monmouth Coleford
Blaenavon
Abertillery
Pontardawe
Lydney
Aberdare Treherbert
Pontypool
Bargoed Blackwood
Neath
Cwmbran Swansea
Port Talbot
Porth
Maesteg
Chepstow
Risca
Pontypridd
Thornbury Caldicot
Newport
Caerphilly Llantrisant Pyle Bridgend
Rumney
Porthcawl
Filton
City Centre "
Cowbridge
Llantwit Major
Caerau
Portishead
Cardiff
Penarth Dinas Powys
Clevedon
Bristol Nailsea Keynsham
Barry Ba
Source: Arup
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Skilled workforce Cardiff offers one of the highest graduate workforce percentages outside London, with 38.6% of the working age population with a qualification at NVQ4 or above and almost 50% of the workforce is employed in professional or managerial roles7. Job satisfaction in Cardiff is also very high, as outlined in a Cardiff University survey8 of the city’s leading businesses, where 95% of staff surveyed said they want to keep working in Cardiff for the immediate future. Half of all respondents also noted that they would like to work for their current employer, in a more senior position, in 15 years’ time.
Workforce skills – Core City comparisons 2013 % with degree or equivalent and above aged 16-64 Bristol
42.8
Manchester
38.8
Cardiff
38.6
Sheffield
35.9
Great Britain
35.2
Leeds
35.1
Newcastle upon Tyne
34.6
Nottingham
29.3
Liverpool
27.2
Birmingham
25.8
Workforce skills – Core City comparisons 2013
Language skills Cardiff is a cosmopolitan city, and for 200 years has welcomed workers from across the globe. Today the city is home to over a hundred different nationalities, with a broad range of language skills. In addition Cardiff is a popular destination for international students, with over a quarter of the city’s students hailing from outside the UK9, and companies have a good experience of recruiting business language expertise. The 2011 census shows that in addition to English and Welsh the people in Cardiff consider a number of other languages to be their main language: đƫƫƫƫ .!* $Čƫ , *%/$Čƫ +(%/$ƫ * ƫ+0$!.ƫ 1.+,! *ƫ( *#1 #!/čƫƫ ĉČĈĀĀ đƫƫƫƫ . % ƫ * ƫ+0$!.ƫ /% *ƫ( *#1 #!/čƫƫ ƫ ƫ āćČĀĀĀ
7
ONS annual population survey. ‘Cardiff Employee Survey’ Cardiff Business School and Cardiff Business Partnership ‘Cardiff: Knowledge Ecology and Economy’ Robert Huggins and Piers Thompson, A Report to Cardiff Council through the Know Cities project.
8
9
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Quality of Life Quality of life is one of the big competitive advantages of Cardiff. It is consistently recognised as one of the best cities to live in by residents, and in the latest EU Urban Audit Perceptions survey Cardiff was voted the number 1 city in the UK for quality of life. The city also ranked highly on a range of other indicators: The 2013 EU Urban Audit Perception Survey by the European Commission ranked Cardiff as: x x x x x
UK’s number 1 city for quality of life according to residents Best UK city for sports facilities 6th best city in Europe for cultural facilities Best UK city in terms of quality of public space Best UK city for retail, and top ten in Europe
Quality of Life Rankings 2014 Rank
UK 12 largest cities
2014 Rank
UK 12 largest cities
1
Cardiff
7
Edinburgh
2
Belfast
8
Manchester
3
Bradford
9
Sheffield
4
London
10
Glasgow
5
Bristol
11
Liverpool
6
Leeds
12
Birmingham
Source: Moneysupermarket.com 2014 Annual Quality of Living Index
Cardiff also ranked first in Moneysupermarket.com’s quality of life survey, which scored the 12 biggest cities in the UK in terms of: đƫƫƫƫ +1/!ƫ,.% !ƫ#.+30$ƫ đƫƫƫƫ $!ƫ +/0ƫ+"ƫ.!*0%*#ƫ đƫƫƫƫ 2!. #!ƫ/ ( .%!/ƫ đƫƫƫƫ *!),(+5)!*0ƫ đƫƫƫƫ !*!. (ƫ(%"!ƫ/ 0%/" 0%+* A recent survey undertaken by Legal & General also showed Cardiff as the best UK city for young adults because of its low cost of living, and good job opportunities10. The city is also safe, and across a range of indicators measuring crime, is ranking as the safest urban area in the UK. The UK Peace Index 2013 compared all areas of the UK, including the major urban areas, using a composite of key crime statistics. Police Force Area
Major Urban Area
South Wales
Cardiff
Overall Rank 1
South Yorkshire
Sheffield
2
Nottinghamshire
Nottingham
3
West Yorkshire
Leeds
4
Merseyside
Liverpool
5
Greater Manchester
Manchester
6
West Midlands
Birmingham
7
District A & B
Belfast
8
Metropolitan Police
London
9
Strathclyde
Glasgow
10 Source: UK Peace Index
10
Legal & General Best City to be Young report - 2013.
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Cardiff is home to three major higher education institutions: Cardiff University, Cardiff Metropolitan University and the University of South Wales. In total there are around 75,000 students in the city-region, around half of all university students in Wales. Higher education in Cardiff also attracts talent from around the world, with over a quarter of all students being international students. Universities in Cardiff City-Region 2012/13 Total students Cardiff University
30,060
Cardiff Metropolitan University
12,440
The University of South Wales
32,130
Source: ‘Students in Higher Education Institutions 2012/13’ HESA
University profiles Cardiff University has a strong reputation for the quality of its teaching and research and it is a member of the Russell group of leading research universities. There are around 30,000 students, including more than 3,000 from over 100 countries outside the UK, helping to create a vibrant, cosmopolitan community. Ranked 6th in the recent Research Excellence Framework (REF), Cardiff University broke into the “Golden Triangle” of Oxford, Cambridge and London and confirmed its place as a world-leading university. Key results of the REF for Cardiff University include: đƫƫƫƫĆ0$ƫ1*%2!./%05ƫ* 0%+* ((5ƫ+*ƫ. *'%*#/ƫ /! ƫ+*ƫ.!/! . $ƫ%), 0 đƫƫƫƫĂ* ƫ* 0%+* ((5ƫ+*ƫ. *'%*#/ƫ /! ƫ+*ƫ%), 0 đƫƫƫƫĆƫ+10ƫ+"ƫĂĈƫ !)% ƫ %/ %,(%*!/ƫ .!ƫü./0ƫ+*ƫ%), 0ċƫƫ $!/!ƫ .!ƫ Architecture, Built Environment and Planning; Civil and Construction Engineering; Communication, Cultural and Media Studies; General Engineering; Modern Languages and Linguistics đƫƫƫƫćƫ+10ƫ+"ƫĂĈƫ !)% ƫ %/ %,(%*!/ƫ .!ƫ%*ƫ0$!ƫ0+,ƫĆƫ+*ƫ-1 (%05ċƫƫ $!/!ƫ are Civil and Construction Engineering (1st in UK); Psychology, Psychiatry and Neuroscience (2nd in UK); Communication, Cultural and Media Studies (2nd in UK); Sociology (3rd in UK); Allied Health (joint 4th in UK); Education (joint 5th in UK) đƫƫƫƫĉĈŌƫ+"ƫ.!/! . $ƫ //!//! ƫ /ƫ3+.( ġ(! %*#ƫ+.ƫ%*0!.* 0%+* ((5ƫ!4 !((!*0
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7 UNIVERSITIES
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2014 Research Excellence Framework (REF) table of excellence Rank 2014
Rank 2008
Institution
GPA
1
1
Institute of Cancer Research
3.40
2
6
Imperial College London
3.36
3
=4
London School of Economics
3.35
4
=4
University of Oxford
3.34
5
2
University of Cambridge
3.33
6
=22
Cardiff University
3.27
7
=22
King’s College London
3.23
=8
7
University College London
3.22
=8
9
University of Warwick
3.22
10
3
London School of Hygiene and Tropical Medicine
3.20
Source: Hefce; GPA (Grade Point Average) calculation by Times Higher Education
2014 Research Excellence Framework (REF) top ten by impact Rank 2014
Institution
GPA
1
Institute of Cancer Research
3.87
2
London School of Hygiene and Tropical Medicine
3.74
3
Imperial College London
3.68
4
St. George’s, University of London
3.64
5
Cardiff University
3.61
6
Liverpool School of Tropical Medicine
3.57
7
University College London
3.54
8
King’s College London
3.52
9
University of Oxford
3.51
=10
University of Bristol
3.50
=10
London School of Economics
3.50
Source: Hefce; GPA (Grade Point Average) calculation by Times Higher Education
Cardiff Business School has a close relationship with businesses in the city, including its collaboration with Legal & General, which has led to Cardiff developing the largest cluster of medical underwriters in the UK. Cardiff University’s Business School has also collaborated with OSTC to develop a Cardiff Trading Room to support the development of traders. In addition the Business School also has an Islamic Banking and Finance Centre of Excellence.
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Cardiff Metropolitan University (formerly University of Wales Institute, Cardiff) is a leading new university mainly due to its careerorientated courses that make graduates popular with employers. For the fourth year running, the university was ranked overall top in the UK for international student satisfaction in the latest International Student Barometer. It’s also a top sporting university with first-class facilities and a proud tradition of competition – and success with the largest School of Sport of any UK university. Cardiff Metropolitan is a growing university, with business and management a key strength. In total Cardiff Metropolitan’s specialisms are focussed around its five schools, namely Cardiff School of Art & Design, the Cardiff School of Education, the Cardiff School of Health Sciences, the Cardiff School of Management and Cardiff School of Sport. In addition, the National Centre for Product Design and Development Research (PDR) provides expertise in design and innovation, offering support from research to manufacturing businesses. PDR has worked with several leading aerospace companies in Wales and is well known for its pioneering work in maxillofacial surgery. The University won the ‘student experience’ award from Times Higher Education in November 2014 and was categorised as ‘first-class’ in a UK-universities sustainability assessment. Through independent student-employability surveys, 94% of Cardiff Met graduates are in employment-or-further-study within six months of graduation.
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In the recent Research Excellence Framework results, Cardiff Metropolitan University was ranked as the highest post-1992 ‘modern’ university in 41st place, with 80% of the University’s overall quality profile rated as ‘world leading’ (4*) or ‘internationally excellent’ (3*). For impact, the proportion rated as 3* or 4* is even better at 83%. The University of South Wales was formed in April 2013 following a merger between the University of Glamorgan and the University of Wales, Newport. The university has campuses in Cardiff, Newport and the South Wales Valleys. Its 33,000 students place it in the top ten largest campus universities and it attracts a cosmopolitan mix of students from 122 countries and all backgrounds. It delivers the full range of Stem subjects, from engineering and mathematics to computing and surveying, and is an experienced provider of teacher training courses. The University of South Wales has recently launched its Centre for Financial and Professional Services in Cardiff, working with the Welsh Government to meet Cardiff’s demand for skills in the financial and professional services sector. The University is also a major research university in Wales, with specialisms in the creative industries, sustainable energy, and mobile communications. In the 2014 Research Excellence Framework results, the University of South Wales doubled its amount of research rated as world leading. Half of its research is regarded as world leading or internationally excellent standard providing practical solutions for culture, society and the economy.
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8 INDUSTRY STRENGTHS
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In the early 1900s, Cardiff was a major base for the coal industry, its docks were the world’s largest exporter and the city’s Coal Exchange set the world price. In recent times, however, Cardiff’s economy has become more diverse and heavy industry has given way to service and knowledge driven sectors. Supported by a large and skilled labour market, the city is now one of the most competitive locations in the UK for skilled service sector businesses. The city is also home to an advanced manufacturing sector, linking with Universities delivering world-class research. Today, around 200,000 people are employed in the city and over 600,000 in the wider city region. Of this over 50,000 people in Cardiff and over 100,000 in the city-region are employed in financial and professional services. The city also employs over 20,000 people in education, and almost 30,000 in healthcare. A growing creative cluster is home to around 10,000 people in the city, and over 25,000 in the city-region. Employment by Sector 2013 Primary industries and utilities
Cardiff
City Region
4,600
11,600
Manufacturing
8,800
68,700
Construction
8,000
26,200
Wholesale and retail
30,100
94,700
Transport & storage (inc postal)
5,400
19,200
Accommodation & food services
14,500
40,000
Finance, business and communication
53,000
112,500
Public administration, education and health
64,300
205,800
Arts, entertainment, recreation & other services
10,000
25,900
Source: Business Register and Employment Survey
The key sectors in the city - with both significant clusters of activity and capacity for growth – include: đƫƫƫƫ %* * % (ƫ * ƫ 1/%*!//ƫ !.2% !/ đƫƫƫƫ .! 0%2!ƫ * 1/0.%!/ đƫƫƫƫ %"!ƫ %!* !/ƫ đƫƫƫƫ 2 * ! ƫ *1" 01.%*# These sectors benefit from Cardiff Council and the Welsh Government support, as well as benefiting from a workforce stemming from the city’s universities.
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FINANCIAL AND BUSINESS SERVICES
Cardiff’s ďŹ nancial and business services sector is rooted in its growth as a centre of the world’s coal trade. Throughout the 19th century Cardiff became prominent as a coal port, culminating in 1913, when over 10 million tonnes of coal were exported, making Cardiff the biggest coal exporting port in the world. At that time the world’s price for Coal was set in the city’s Coal Exchange, while the individuals and ďŹ rms operating in the Coal Exchange helped develop new markets for the coal, and established the city’s ďŹ rst cluster of ďŹ nancial services expertise. This role as a centre for shipping and commerce meant that Cardiff developed as a centre for international ďŹ nance and business, a legacy that has continued throughout the city’s history. Today the Financial and Business Services sector in the city employs over 1 in 4 of the city’s workforce - over 50,000 people11. Key employers include a number of globally recognised ďŹ nancial services companies, including Admiral, Atradius, Legal & General, Lloyds Bank and Zurich. In addition, homegrown companies such as The Principality Building Society, Julian Hodge Bank and Thomas Carroll have expanded their operation in Cardiff over recent years. The city is also home to some of the UK’s biggest accountancy ďŹ rms, including Deloitte, PWC, Grant Thornton and KPMG. Overall, the ďŹ nancial services sector has grown by more than 60% in Cardiff in employment terms over the past decade, faster than any other UK city12. There is still, however, capacity for the sector to grow, whilst the city employs a quarter of its workforce in the sector this is substantially lower than in cities such as Nottingham, Manchester and Edinburgh.
11
Ä‘ĆŤĆŤĆŤĆŤ 2!.ĆŤÄ†Ä€ÄŒÄ€Ä€Ä€ĆŤ,!+,(!ĆŤ%*ĆŤ employment Ä‘ĆŤĆŤĆŤĆŤ %* * % (ĆŤ * ĆŤ%*/1. * !ĆŤ activities, real estate activities and business service activities now account for ÂŁ4 billion of output – around 40% of total output Ä‘ĆŤĆŤĆŤĆŤ * $+./ĆŤ * ĆŤ **+2 0+./ĆŤÄĄĆŤ Admiral & Go-Compare Ä‘ĆŤĆŤĆŤĆŤ *ĆŤÄ‚Ä€Ä Ä‚ÄŒĆŤ ĆŤ%*ĆŤ0$!ĆŤĂź* * % (ĆŤ and professional services sector in Cardiff increased by a massive 83% in the year, bucking UK trends13. Ä‘ĆŤĆŤĆŤĆŤ .+//ĆŤ (!/ĆŤ)+.!ĆŤ0$ *ĆŤ 135,000 people work in the ďŹ nancial and professional services sector, and this number is set to grow to 200,000 by 202114
Cardiff’s expertise within the sector is growing, with headquarters of a number of leading ďŹ nancial and ďŹ ntech services in Cardiff, all complemented by higher education in the city that not only provides a steady stream of skilled graduates, but also works closely with business to design and shape courses for the sector. Links with the city’s higher education institutions have also had an impact on the sector, for example, Legal & General has been working with Cardiff University to deliver medical training for medical underwriters and claims assessors. The content and structure of the courses has been adapted over time to accommodate the changing needs and requirements of the business.
2013 Business Register and Employment Survey, Sections J, K, L, M, N Where next for UK ďŹ nancial services? Part 2: Regions of opportunity, PWC ‘fDi Supplement August/September 2013’ fDiIntelligence.com 14 ‘fDi Supplement August/September 2013’ fDiIntelligence.com 12
13
28 | CARDIFF - THE CAPITAL CONNECTION
In comparison with the UK’s Core Cities, Cardiff has a broad range of businesses within the ďŹ nancial services sector with employment spread across a range of different operations, from insurance to banking to risk evaluation. Employment in insurance is signiďŹ cantly above the UK average, with the proportion of people employed in life insurance seven times greater than the UK average. Location Quotients for Cardiff Financial Services Sector (1=UK average employment percentage) Life insurance
7.0
Non-life insurance
5.0
Combined facilities support activities
3.8
Legal activities
2.2
Other credit granting
2.0
Risk and damage evaluation
2.0
Other activities auxiliary to insurance and pension funding
2.0
Other activities auxiliary to ďŹ nancial services, except insurance and pension funding
1.8
Other monetary intermediation
1.7
Activities of call centres
1.7
Technical testing and analysis
1.5
Source: 2013 Business Register and Employment Survey
CREATIVE INDUSTRIES
Cardiff has become the hub of Wales’ creative industries sector, with particular strengths in broadcasting and TV and film production. A significant concentration of creative companies are attracted to Cardiff due to the presence of major broadcasters such as the BBC, S4C, ITV and because of its academic excellence. The announcement in 2014 that Pinewood Studios Wales will develop a base in Cardiff15, estimated to bring in around £90 million to the economy, will add to the city’s already established studios including the BBC Drama Village. The BBC Drama Village, located in Porth Teigr, Cardiff Bay, is a 170,000 square foot facility, including nine studios and equivalent in length to three football pitches, is now the permanent, purpose-built home of four flagship BBC dramas Casualty, Pobol y Cwm, Doctor Who and Wizards vs Aliens. The studio’s aim is to be a hub for creative sustainability, bringing talent together and allowing knowledge and expertise to be shared. BBC Wales has also announced their plans for a new regional headquarters at Central Square. Designed by internationally renowned architects Sir Norman Foster and Partners, the statement building will form the centrepiece of a new destination for the creative sector in the heart of the city centre. The city is also supported by a wide variety of incubation space for the creative industries, from the newly developed Gloworks creative industries centre in the heart of Porth Teigr, Cardiff Bay, as well as space in the city’s established Cardiff Business Technology Centre. 15
As well as being a prime location for major players in the creative sector, Cardiff is also home to a growing creative start-up community that has been growing in size and confidence. One example of the city’s thriving start up community in creative and digital sectors is Cardiff Start, a group of entrepreneurs, start-up founders, creatives, students, and investors who believe that Cardiff is a brilliant place to work and live, and are uniting the digital scene in our city. đƫƫƫƫ .+1* ƫ ƫ0$%. ƫ+"ƫ ((ƫ !(/$ƫ creative industry jobs are based in Cardiff đƫƫƫƫ +)!ƫ0+ƫ0.%,(!ƫ ))5ƫ 3 . ƫ production Sherlock as well as leading BBC prime time productions Dr Who and Casualty đƫƫƫƫ ),(+5/ƫ+2!.ƫćČĀĀĀƫ,!+,(!16 đƫƫƫƫāČćĀĀƫ .! 0%2!ƫ 1/%*!//!/ƫ%*ƫ Cardiff17 đƫƫƫƫ !/0ƫ,!*!0. 0%+*ƫ+"ƫ/1,!." /0ƫ broadband of UK Core Cities, boosted by a New Internet Exchange in the heart of the city đƫƫƫƫ $!ƫ 1)!*ƫ .%6!Čƫ /! ƫ%*ƫ Cardiff, is the world’s biggest digital arts prize đƫƫƫƫ $!ƫ .! 0%2!ƫ * 1/0.5ƫ/! 0+.ƫ is the fastest growing sector in Wales with employment in the sector increasing 58% between 2005 and 201318 đƫƫƫƫ ƫ.!*+3*! ƫ1*%2!./%05ƫ system with nearly 5,000 creative industries graduates each year, in subjects such as animation, visual effects, and digital and mobile technology development19 đƫƫƫƫ .+//ƫ (1!ƫ ! ƫĨ ĩƫ"+.ƫ the sector in Wales was £787 million for 201220
‘Welsh Government kick starts £30 million film investment fund with Pinewood Studios movie’ WalesOnline 2013 BRES, Welsh Government Cluster Definition Businesses listed in MINT database in Cardiff under SIC codes 58,59,60,62,90,91,92,93 18 Welsh Government Statistics 19 Welsh Government Statistics 20 Annual Business Survey, Regional Accounts and Annual Population Survey, ONS / Welsh Government 16 17
30 | CARDIFF - THE CAPITAL CONNECTION
Location Quotients for Cardiff Creative Sector (1=UK average employment percentage) Operation of arts facilities
3.7
Translation and interpretation activities
3.4
Printing of newspapers
3.1
Motion picture projection activities
2.2
Performing arts
2.1
Support activities to performing arts
2.0
Television programming and broadcasting activities
1.9
Source: 2013 Business Register and Employment Survey
LIFE SCIENCES
The city’s life sciences businesses, such as GE Healthcare, are world leading enterprises. The biosciences cluster in Cardiff is supported by the region’s universities which are home to world leading research expertise with a signiďŹ cant commercial outlook. As well as facilities such as the Cardiff Medicentre (a medical technology incubator on the site of the University hospital), there has also been signiďŹ cant investment in the new Life Sciences Hub Wales, based in Cardiff Bay, a focal point for the sector in Wales – stimulating interaction, innovation, networking and collaboration. The hub is a nerve centre for the whole of the Life Sciences sector, including academic and healthcare organisations, business, expert advisers, clinical and funding organisations, it helps bring about investment, commercialisation and ongoing business success. Global companies like Johnson & Johnson Innovation have already signed up as Hub members alongside NHS Wales, Arthurian Life Sciences (which manages the Wales Life Sciences Investment Fund), Finance Wales and BBI Healthcare. Employing almost 2,00021 people in the city, and more across the city-region, the cluster in Cardiff is one of the most competitive in the UK, and with support from higher education and the Welsh Government has been targeted as one of the key growth sectors for the South Wales economy.
21
Ä‘ĆŤĆŤĆŤĆŤ + /ĆŤ#.+30$ĆŤ+"ĆŤ+2!.ĆŤÄƒÄ†ĹŒĆŤ between 2003 and 2010 Ä‘ĆŤĆŤĆŤĆŤ ),(+5/ĆŤÄ ÄŒÄˆÄ€Ä€ĆŤ,!+,(!ĆŤ%*ĆŤ+*!ĆŤ of the largest clusters in the UK22 Ä‘ĆŤĆŤĆŤĆŤ (1/0!.ĆŤ%* (1 !/ĆŤ +), *%!/ĆŤ such as GE Healthcare, CELSA, Huntleigh Healthcare, Ortho Clinical Diagnostics, ConvaTec, Genesis Bioscience, Norgine and Quotient Bioresearch Ä‘ĆŤĆŤĆŤĆŤ *!ĆŤ+"ĆŤ0$!ĆŤ0+,ĆŤĂź2!ĆŤ3+.( ĆŤ diagnostic companies have operations in Wales (Ortho Clinical Diagnostics, Pencoed)23 Ä‘ĆŤĆŤĆŤĆŤ !(/$ĆŤ +1* ĆŤ **+2 0%+*ĆŤ Centre: ÂŁ4 million national centre of excellence in wound prevention and treatment at Llantrisant Ä‘ĆŤĆŤĆŤĆŤ . %Ýƍ *%2!./%05ĆŤ%/ĆŤ0$!ĆŤ /!ĆŤ for Sir Martin Evans, Nobel Prize Winner for discovery of embryonic stem cells, and has an MRC Centre for Neuropsychiatric Genetics and Brain Imaging Research Centre (CUBRIC) Ä‘ĆŤĆŤĆŤĆŤ ĆŤ ! 0$ .!ĆŤ/0!)ĆŤ !((ĆŤ sciences R&D base at Cardiff with the appointment of the internationally renowned stem cell scientist Prof Stephen Minger as Chief Scientist Ä‘ĆŤĆŤĆŤĆŤ ! !1.+*ĆŤ%/ĆŤ0$!ĆŤĂź./0ĆŤ company to carry out clinical trials of stem cells in stroke patients. They are moving their entire operation from Guildford, UK to South Wales Ä‘ĆŤĆŤĆŤĆŤ .+//ĆŤ (1!ĆŤ ! ƍĨ ÄŠĆŤ was ÂŁ565 million for the sector in Wales for 201224
2013 Business Register and Employment Survey, 2007 SIC Welsh Government DeďŹ nition 2013 Business Register and Employment Survey, 2007 SIC Welsh Government DeďŹ nition Welsh Government 24 Annual Business Survey, Regional Accounts and Annual Population Survey, ONS / Welsh Government 22
23
32 | CARDIFF - THE CAPITAL CONNECTION
Employment in Life Sciences (% workforce) Cardiff
0.9
Liverpool
0.9
Sheffield
0.7
Nottingham
0.6
Birmingham
0.5
Bristol
0.4
Leeds
0.4
Newcastle upon Tyne
0.3
Manchester
0.3
Source: 2013 Business Register and Employment Survey, 2007 SIC Welsh Government DeďŹ nition
In comparison with the UK’s Core Cities, Cardiff has a broad range of businesses within life sciences. The table below outlines that a greater proportion of people are employed in Cardiff in the manufacture of irradiation, electromedical and electrotherapeutic equipment, other inorganic basic chemicals, medical and dental instruments and supplies and pharmaceutical preparations than the UK average. Location Quotients for Selected Cardiff Life Sciences Sectors (1=UK average employment percentage) Manufacture of irradiation, electromedical and electrotherapeutic equipment
4.7
Manufacture of other inorganic basic chemicals
3.3
Manufacture of medical and dental instruments and supplies
2.2
Manufacture of pharmaceutical preparations
1.8
Source: 2013 Business Register and Employment Survey
ADVANCED MANUFACTURING
Cardiff is also home to an advanced manufacturing sector, supported by links to higher education, and a skilled workforce in manufacturing techniques. Specialism range from electronics, to state of the art steel production at EU’s most efficient Electric Arc Furnace at Celsa Steel UK. Around 4,000 people are employed in advanced manufacturing in Cardiff, with many more employed in supporting sectors. The sector is also supported by the city’s universities, who have a close link with business and the commercialisation of research. The Centre for Advanced Manufacturing Systems at Cardiff (CAMSAC) is one example, a research centre set up to build directly on Cardiff’s existing strong reputation for internationally leading manufacturing related research. CAMSAC bridges both engineering and business disciplines and works closely with businesses to develop new manufacturing concepts, drawing on funding from the Welsh Government, the EPSRC, the Technology Strategy Board, the European Union and industry. Across the city-region there is also a wide range of expertise in sectors such as aerospace and defence, with businesses such as GE Aviation, British Airways, Airbus Defence & Security, BAE Systems, and General Dynamics having a presence in South East Wales. Other sectors with a significant presence include the automotive sector, where there is a particular focus on low carbon research, with business and academia working together, such as Cardiff University’s Institute of Energy collaboration with Ricardo and Qinetiq on alternative fuels and technologies.
25
đƫƫƫƫăĉČĊĀĀƫ,!+,(!ƫ!),(+5! ƫ across the sector in the cityregion – 6.5% of the total workforce25 đƫƫƫƫ (!/Ěƫ 2 * ! ƫ 0!.% (/ƫ and Manufacturing productivity is 20% higher than the UK average26 đƫƫƫƫ ! % 0! ƫ !.+/, !ƫ Enterprise Zone at St. Athan and Cardiff Airport đƫƫƫƫąĀƫ$! 0 .!ƫ) *1" 01.%*#ƫ Enterprise Zone in the cityregion at Ebbw Vale đƫƫƫƫ +.( ġ.!*+3*! ƫ reputation for aircraft MRO (Maintenance, Repair and Overhaul), with over 20% of the UK’s market đƫƫƫƫ .+//ƫ (1!ƫ ! ƫĨ ĩƫ for advanced manufacturing and materials in Wales was £5,080 million for 2012 đƫƫƫƫ ƫ,!.ƫ$+1.ƫ3+.'! ƫ3 /ƫ £33.6 in 2012; 27% higher than the equivalent UK figure and 56.1% above the average for all industries in Wales The city is also home to advanced technology manufactures such as IQE, who use advanced crystal growth technology (epitaxy) to manufacture and supply bespoke semiconductor wafers (‘epi-wafers’) to the major chip manufacturing companies. IQE is unique in being able to supply wafers using all of the leading crystal growth technology platforms. In comparison with the UK’s Core Cities, Cardiff has a broad range of businesses within advanced manufacturing. The table above outlines that a greater proportion of people are employed in Cardiff in a range of manufacturing sectors than the UK average, from electronic appliances top construction materials.
2013 BRES, NOMIS, ONS http://www.wales.com/media/viewfile.aspx?filetype=4&filepath=AMM_Brochure.pdf
26
34 | CARDIFF - THE CAPITAL CONNECTION
Location Quotients for Cardiff Manufacturing Sector (1=UK average employment percentage) Manufacture of electric domestic appliances
6.9
Manufacture of irradiation, electromedical and electrotherapeutic equipment
4.7
Manufacture of medical and dental instruments and supplies
2.2
Manufacture of fibre cement
2.0
Source: 2013 Business Register and Employment Survey
Road The M4 is the main road artery linking Cardiff to other cities in South Wales, Southern England and London. The main northsouth road link in Wales is the A470 and the A40 / M5 links South Wales to the Midlands and the North of England, which means that 6 million people are within a one-hour drive of the city. Rail Cardiff has one of the largest urban rail networks in the UK outside London, with 89 rail stations linking the city to the wider region. The network is currently being upgraded with ÂŁ1bn of investment to electrify rail infrastructure in South Wales. This will create one of the best metropolitan rail systems in the UK, bringing the city-region closer together, and creating a travel to work area that covers more than half of the total population of Wales, all able to use rail to get to Cardiff city centre in less than an hour even at city-region extremes. Cardiff Central and Cardiff Queen Street are the two main passenger stations in the city centre with trains connections serving all of Wales. Cardiff Central has a direct twice-hourly, two-hour journey time, service to the heart of London. There are also rail freight depots in Cardiff which provide containerised delivery facilities. The City also has a Eurofreight terminal and is the main rail depot in Wales for European and world markets. An additional ÂŁ500 million investment has been committed to improve links to London through the electriďŹ ed mainline and new rolling stock for freight and passengers. This will reduce travel time between London and Cardiff to less than 100 mins. by 2018. In addition there will be
27
OFCOM Communication Market Review 2014.
36 | CARDIFF - THE CAPITAL CONNECTION
direct rail access to Heathrow through investment in the Heathrow Spur of the Great Western Mainline. This means that it will become just as easy to get to Cardiff Central as it will be for many of London’s city centre locations. Telecom / Digital Cardiff is already one of the most connected cities in the UK, and, under the SuperConnected Cities programme, Cardiff Council has secured funding for a Peering Grant scheme for businesses to connect with the new Internet Exchange Point (IXP). This will help SMEs to peer with other organisations which will improve speeds within the city, provide resilience nationally, help attract further investment by reducing barriers to entry, reduce costs to end-users (as a result of creating greater competition in the local ISP market) and create an infrastructure that will support rapid expansion. Ä‘ĆŤĆŤĆŤĆŤ . %Ýƍ (.! 5ĆŤ$ /ĆŤ+*!ĆŤ+"ĆŤ the best penetration rates of superfast broadband of UK Core Cities – with 91% of homes and businesses in 2014 boasting access to superfast broadband27. Ä‘ĆŤĆŤĆŤĆŤÄšÄ Ä€ĆŤ)%((%+*ĆŤ%*2!/0)!*0ĆŤ+2!.ĆŤ the next 12 months to support businesses in installing superfast broadband, and supporting private sector infrastructure investment. Ä‘ĆŤĆŤĆŤĆŤ !3ĆŤ *0!.*!0ĆŤ 4 $ *#!ĆŤ%*ĆŤ the heart of the city in 2014, making internet connections faster and more competitively prices – with businesses reporting a 20% reduction in costs for leased lines in the city. Ä‘ĆŤĆŤĆŤĆŤ +*0%#1+1/ĆŤ %05ĆŤ !*0.!ĆŤ".!!ÄĄ0+ÄĄ access Wi-Fi launched in 2013, and free to access wiďŹ across both public buildings and the city’s bus network.
9 INFRASTRUCTURE
Current Metro System for Cardiff-City Region
CARDIFF - THE CAPITAL CONNECTION
| 37
10 COST COMPARISON
38 | CARDIFF - THE CAPITAL CONNECTION
Cardiff offers a competitive base both in terms of staff and property costs.
Salary comparison Average salaries in Cardiff are among the lowest when compared to other major cities across the UK and close to 20% lower than London. Graduate salaries are also extremely competitive, with a steady supply of skilled and talented workers providing a strong and competitive workforce to support businesses across the city. Both city and regional data shows how competitive Cardiff is in terms of graduate salaries, and with around 12,000 people each year gaining undergraduate qualifications in the city-region, there is a constant and steady supply of skilled workers28. Low cost of living, with low house prices and rents in comparison with South East England, means that the purchasing power for workers is also much better in comparison with those working in other South East cities.
Graduate Salaries by City 2014 Average London
£29,000
Bristol
£25,000
Manchester
£25,000
Edinburgh
£25,000
Sheffield
£25,000
Glasgow
£25,000
Leeds
£25,000
Nottingham
£25,000
Birmingham
£25,000
Newcastle
£24,000
Cardiff
£23,000
Liverpool
£23,000 Source: totaljobs.com
28
‘2012/13 Employment of leavers’ Higher Education Statistics Agency
CARDIFF - THE CAPITAL CONNECTION
| 39
10 COST COMPARISON
Commercial property There are a number of property options available for companies wishing to establish a base in Cardiff, ranging from serviced offices to industrial properties. There are also a range of incentives and support available for businesses looking to start up or locate in the city. Office occupancy costs in Cardiff can be around 40% of that in London. Allied with competitive labour costs this means that starting or locating a business in Cardiff can give clear cost advantages, whilst also having the security of a large and skilled workforce and the best quality of life of any UK city. Cardiff is an established office market and 2014 (Q1-Q3) has recorded a 59% rise in tenant demand on the 2013 total takeup and has even surpassed the 2012 figure. Like most UK office markets, Cardiff had been impacted by tenant cautiousness as a result of the economic uncertainty.
Cardiff city office market: annual take-up sq ft 700,000
600,000
500,000
400,000
300,000
200,000
100,000
2004
2005
2006
2007
2008
2009
Take-up sq ft
2010
2011
2012
2013
2014 Q1-Q3
10 year average
Source: Deloitte Real Estate Research
Cardiff city office market: Prime rent £ per sq ft 23.00 22.00
Much akin to other regional city office markets, development has started to return to Cardiff, with two speculative schemes having commenced this year and developer sentiment is strengthening. Prime rents in Cardiff have remained at £237 psm (£22.00 psf) per annum, since 2012.
21.00 20.00 19.00 18.00 17.00 16.00 15.00 2008
2009
2010
Source: Deloitte Real Estate Research
40 | CARDIFF - THE CAPITAL CONNECTION
2011
2012
2013
Q3 2014
Cardiff city office market: Prime rent £ per sq ft 23.00 22.00 21.00 20.00
Compared to a number of other UK core cites the prime rents in Cardiff have remained fairly stable.
19.00 18.00 17.00 16.00 15.00 2008
2009
2010
2011
2012
2013
Q3 2014
Source: Deloitte Real Estate Research
Q3 2014 - Key statistics at a glance Regional city office market: Prime rent
Prime Headline Rent (£ psf) Q3 2014
£ per sq ft 33.00
London West End
31.00
Birmingham
£115.00
London City
£63.50
Aberdeen
£32.00
Manchester
£31.00
Glasgow
£29.50
Manchester
29.00
Leeds Liverpool
27.00
Cardiff Glasgow
25.00
Edinburgh
23.00 21.00 19.00 17.00 15.00 2008
2009
2010
2011
2012
2013
Source: Deloitte Real Estate Research
Cardiff continues to offer significant saving over London and many of the other UK core cities.
Q3 2014
Birmingham
£28.50
Edinburgh
£28.00
Bristol
£27.50
Leeds
£26.00
Cardiff
£22.00
Newcastle
£21.50
Liverpool
£21.00
Sheffield
£20.00
Source: Deloitte Real Estate Research
CARDIFF - THE CAPITAL CONNECTION
| 41
Cardiff is well placed to attract a wide range of grant aid and ďŹ nancial support from the Welsh Government, Cardiff Council and the European Commission. Investment projects which meet the Council’s criteria can potentially attract between 10% and 30% of a company’s costs for capital investment and job creation, with potentially higher levels available for research and development. While we know that grant aid and ďŹ nancial support are not key reasons for a company choosing a vibrant location like Cardiff, the availability of grant can help reduce the risks of an investment and potentially improve returns. Alongside competitive salaries the availability of a grant package can provide a very competitive offer for businesses looking for a long term sustainable location. The level of funding can be inuenced by your location in the city and the size of business i.e. small and medium or a large enterprise. The key grant schemes are as follows: Ä‘ĆŤĆŤĆŤĆŤ +*ÄĄ.!, 5 (!ĆŤĂź* * !ĆŤÄĄĆŤ $%/ĆŤ is a regional aid scheme for businesses investing and creating jobs within Cardiff. The scheme has a range of criteria which must be met. This has been one of the principal sources of grant aid that has supported inward investment into the Cardiff area. Average levels of grant aid have been circa ÂŁ6,000 per job created /safeguarded. Ä‘ĆŤĆŤĆŤĆŤ . %*%*#ƍĢƍ . *0ĆŤ/1,,+.0ĆŤ"+.ĆŤ company’s training programme can be made available up to a maximum of â‚Ź2 million per project. Under this scheme, the company’s training costs can be funded alongside third party costs. Generally non repayable ďŹ nance and training support are negotiated.
42 | CARDIFF - THE CAPITAL CONNECTION
Ä‘ĆŤĆŤĆŤĆŤ !/! . $ĆŤ * ĆŤ !2!(+,)!*0ƍĢƍ Grant support towards research and development can also be made available. The rate of support is dependent on the type of research undertaken and the degree of collaboration involved. Generally, support is capped at â‚Ź15 million per project. Ä‘ĆŤĆŤĆŤĆŤ !ĆŤ %*%)%/ƍĢƍ !ĆŤ %*%)%/ĆŤ % ĆŤ can be provided for projects not meeting any of the above criteria or for businesses located within parts of the city that may not attract a full range of grant aid. Under this scheme, a maximum of â‚Ź400,000 can be provided over a four year period. Ä‘ĆŤĆŤĆŤĆŤ . %Ýƍ !*0. (ĆŤ *0!.,.%/!ĆŤ +*!ĆŤ – Cardiff Enterprise Zone is located within an Assisted Area in Cardiff, and also beneďŹ ts from further support from the Welsh Government, including opportunities for some businesses to claim rate free periods within the Zone. The schemes above are not exhaustive and we would anticipate providing bespoke guidance to any company looking to invest in Cardiff to ensure that the funding package meets their speciďŹ c requirements. The Cardiff Economic Development team, working in concert with the Welsh Government, can advise Clients on the most appropriate funding package. It is important to emphasise that all funding is discretionary and negotiable and there is no automatic entitlement to aid.
Commercial ďŹ nance is also available from a number of ďŹ nancial institutions in Wales. This includes “Finance Walesâ€? which provides commercial ďŹ nance through loans, venture capital packages and introductions to investors through Xenos, a business angel organisation. The city has been able to attract international investors attracted by both property deals and invest opportunities in our companies as Cardiff gains wider recognition as competitive business location with growth potential.
Cardiff Assisted Area Map
M4
Great Western Mainline
11 FINANCIAL SUPPORT
Assisted Area Status Assisted Areas are those areas where regional aid can be offered under Commission state aid rules. In Wales discretionary financial support is available for businesses. Business Premises Renovation Allowance (BPRA) is also available and gives 100% rate relief for expenditure on converting or renovating unused business premises in assisted areas. Property Attractive rental packages, rent free periods are an integral part of the financial and support package for investing in our Capital City. Unlike most cities in the UK, Cardiff has both high quality sites and Grade A
buildings in the ownership of the private and public sector. This includes commercial offices and land in the city centre and Enterprise Zone and greenfield locations office locations like Cardiff Gate and St Mellons which can be made available to businesses investing in the city. The Council also has a portfolio of technology /incubation units which it could make available to investors seeking accommodation or requiring short term accommodation prior to occupying long term premises. Post Investment Support Cardiff prides itself in looking after its investors. We have a dedicated team within Economic Development and supported
by the Welsh Government and Cardiff Business Council which provides ongoing support to our existing businesses. Every investor has a dedicated project officer who will ensure you continue to have access to financial support schemes, business networks and relevant University departments in order to ensure your investment in Cardiff remains successful.
For further information, please contact Ken Poole, FRICS.
M4
Great Western Mainline
CARDIFF Head of Economic Development, Cardiff Council, County Hall, Cardiff, CF10 4UW. 029 2087 2545 Ken.poole@cardiff.gov.uk
Cardiff City Centre
Assisted Area
Enterprise Zone
Cardiff Bay
CARDIFF - THE CAPITAL CONNECTION
| 43
12 USEFUL WEBSITES
44 | CARDIFF - THE CAPITAL CONNECTION
Universities Cardiff University Cardiff Metropolitan University University of South Wales Industry and Business Groups Aerospace Wales Cardiff Business Council Cardiff Enterprise Zone Cardiff Start Cogent – Skills for Science Based Industries Confederation of British Industry (CBI) EEF (Engineering Employers’ Federation) Wales Finance Wales Life Sciences Hub Wales MediWales Skillset Wales University of South Wales Wales Contact Centre Forum Wales Screen Commission Xenos Government departments City of Cardiff Welsh Government Business Wales Corporate and personal taxation (HMRC) Driving licence applications (DVLA) Transport and logistics British International Freight Association Freight Transport Association Highways Agency Road Haulage Association Nearby airports and ports Cardiff Airport Barry, Cardiff, Newport, Port Talbot and Swansea ports Workforce Chartered Institute of Personnel and Development Department for Work and Pensions Institute of Directors Telecommunications Ofcom British Telecom Premises The Valuation Office Agency British Council for Offices Wales Property Database Business formation Companies House Utility costs Utility cost information Utility cost comparison
www.cardiff.ac.uk www.cardiffmet.ac.uk www.southwales.ac.uk www.aerospacewalesforum.com www.cardiffbusinesscouncil.com www.business.wales.gov.uk/enterprisezones/ enterprise-zone-locations/central-cardiff www.cardiffstart.com www.cogent-ssc.com www.cbi.org.uk www.eef.org.uk/membership/membership-team/wales www.financewales.co.uk www.lifescienceshubwales.com www.mediwales.com www.creativeskillset.org/nations/wales www.southwales.ac.uk www.welshcontactcentreforum.co.uk/ www.walesscreen.com www.xenos.co.uk www.cardiff.gov.uk www.wales.gov.uk www.wales.com/business www.hmrc.gov.uk www.dvla.gov.uk www.bifa.org www.fta.co.uk www.highways.gov.uk www.rha.net www.cardiff-airport.com www.abports.co.uk www.cipd.co.uk www.dwp.gov.uk www.iod.com www.ofcom.org.uk www.bt.com www.voa.gov.uk www.bco.org.uk http://business.wales.gov.uk/property-database www.companieshouse.gov.uk www.energyhelpline.com/business www.uswitch.com
CARDIFF - THE CAPITAL CONNECTION
| 45
Deloitte refers to one or more Deloitte Touche Tohmatsu Limited (“DTTL�), a UK private company limited by guarantee, and its network of member.