The property industry has a role to play in bridging the skills gap in the advanced manufacturing sector if the Northern Powerhouse vision is to be realised, according to Ezra Nahome, Chief Executive of national commercial property consultancy Lambert Smith Hampton (LSH).
Advanced manufacturing is widely reported as an area of significant potential growth for the Northern Powerhouse economy. Manufacturing represents 11% of the UK’s Gross Value Added (GVA) figure and accounts for 44% of all of its exports, with over 80,000 people employed in the sector in Sheffield City Region alone. Only last month it was cited it as being one of the prime capabilities for the region in Transport for the North’s long-awaited Northern Powerhouse Independent Economic Review.
However, the sharp rise in exports coupled with advancements in technology mean that demand for qualified, experienced staff is on the verge of outstripping supply. Companies are struggling to recruit candidates with the necessary skills; creating a significant barrier to the success of the Northern Powerhouse.
As commercial property agents, we’re increasingly finding that occupiers’ relocation requirements are no longer solely based around a specific location. Instead, the brief is usually “where should we locate our business to give us access to a skilled labour pool and proximity of other like-minded businesses?” rather than “what premises are available in XYZ location”.
The property industry needs to recognise its role in developing the local skills base, by working in conjunction with local businesses and education establishments to support the future growth of the advanced manufacturing sector. The most effective way of doing this is to move away from geographically-competitive developments to cluster-led hubs; a prime example of which can be seen by the collaboration between developers Harworth Estates and Sheffield Business Park in delivering the UK’s first Advanced Manufacturing Innovation District (AMID) on the Sheffield-Rotherham border.
Since winning LSH’s £15,000 Enterprise Award six months ago through a bid that explained the AMID’s aims and objectives, both firms took the decision to match LSH’s prize money to create a £30,000 fund to launch a new flexible apprenticeship programme for small businesses at the University of Sheffield’s AMRC Training Centre – specifically to kickstart the property industry’s efforts to support the sector’s future workforce.
This programme enables local young people that aren’t in education, employment or training to get apprenticeships with local advanced manufacturers and a place at the AMRC Training Centre. Small businesses and start-ups who have not recruited an apprentice within the last 12 months can now take on an apprentice for the first time. Apprentices are immediately contributing to growth and performance, as the new flexible programme allows them to be with their employer for several weeks at a time in between training. Four apprentices were recruited in March with four more due to employed and trained from September.
This has been bolstered by Harworth’s recent confirmation that it has developed and made available a further 25 acres of land at the Advanced Manufacturing Park in Rotherham. Known as ‘AMPlify’, this development is primarily aimed at advanced manufacturers and their supply chains and can accommodate 465,000 sq. ft of new employment space – including a single unit of c. 200,000 sq ft.
Both developments prove that innovative thinking from the property sector in helping to create business infrastructure built on a deep understanding of diverse regional and sectoral characteristics – with people and their skills at its heart – can act as a catalyst for the UK’s future economic growth.
