Following news last week of Channel 4’s decision to locate its new national HQ in Leeds, influencers from Birmingham’s business community are calling for the West Midlands to rally together, refocusing their attentions on the region’s existing strength in digital and tech to ensure the momentum built in this sector over recent years is not lost.
“The West Midlands has long been a trailblazer in innovation with Birmingham now recognised as the country’s leading startup hotspot, with its tech and digital sector being the largest outside of the capital,” said Richard Williams, Head of Central Birmingham Offices at Colliers International. “StartUp Britain data shows that 17,473 new businesses were registered in Birmingham during 2016 – an increase of 25% on the previous year, and again more than any other city outside London. There are so many exciting and innovative digital and tech projects being undertaken in the region, not least Birmingham’s pilot of a government programme which will see the city become the UK’s first 5G testbed. Through this and other digital technology projects such as Government Digital Service (GDS)’s new Digital Hub and Bruntwood’s Innovation Birmingham, the region has begun a transformation that will ensure we lead the way in new digital technology and the business community needs to get behind this to ensure investment and momentum is not lost.”
According to the West Midlands Growth Company (WMGC), tech and digital is expected to be one of the region’s biggest growth areas over the next decade, adding £2.2 billion to the West Midlands economy and creating 14,000 new jobs by 2025.
The region’s growth aspirations were bolstered earlier this year with the news that the West Midlands would become home to 5G technology, piloting a new government programme which will see 5G mobile networks rolled out in the Midlands before other parts of the UK, making the region a testbed for new technology.
Neil Rami, Chief Executive of the West Midlands Growth Company, said: “Through this programme, the West Midlands has been propelled to the forefront of the global race to 5G deployment; creating an unprecedented scale of opportunity for businesses spanning all sectors. The region is now better placed than ever before to drive forward the economy and harness its strengths in tech-led innovation, research and development.
“The West Midlands is already home to the UK’s regional startup hotspot, and now businesses – both domestic and foreign – have a unique opportunity to capitalise on a 5G testbed that’s the first of its kind globally.”
The WMGC’s research suggests that the West Midlands’ local talent pool is a rich source of employment for tech and digital firms and a great attraction for occupiers, with 89 per cent of tech businesses recruiting from the region’s workforce or universities.
Rob Valentine, Head of Birmingham for Bruntwood believes that in the current digital age, every business needs to be a technology business and this has transformed the way in which companies perceive office space.
“Information exchange and big data are key to decision making so there’s no doubt that businesses in Birmingham will benefit greatly from the introduction of 5G,” Valentine says. “As the region’s leading location for digital technology businesses, our Innovation Birmingham development is a thriving hub of over 170 companies and will be among the key locations where 5G will have an immediate commercial impact.”
Dr David Hardman MBE, Managing Director of Innovation Birmingham highlights the infrastructure needed to drive the most innovative tech products and processes, and believes that the implementation of 5G will be a key resource from which the region’s businesses will benefit. “Launching 5G in Birmingham will ensure that our brightest innovators are being supported in a community with the best tech infrastructure. Emerging technologies, connected autonomous vehicles and the myriad of sensors supporting the Internet of Things revolution that powers a smart city all require 5G support. I am sure that our diverse community of over 1,000 campus entrepreneurs and techies will see opportunities enabled by 5G.”
Richard Williams, Colliers concludes: “From an inward investment perspective, 5G technology, proximity to London, business cost savings and excellent connectivity to major markets across Europe, makes for the perfect business and talent location, giving Birmingham and the wider region a competitive edge. By refocussing attentions on this unique selling point for our City and Region we will continue to attract big names, just as we did with HSBC, Deutsche Bank, Deloitte, PwC and KPMG, which have all chosen Birmingham to locate major hubs.”