West Midlands Industrial Strategy

1. West Midlands Industrial Strategy July 2018

2. A West Midlands Renaissance Major part of the UK economy: the largest Combined Authority economy, £87.5bn GVA and 20% growth in the last 5 years. Our cities are built on industry and they are now perfectly positioned for the future. We are a region built on social connection, on collaboration. A high-tech, three-city region – the birthplace of the industrial revolution, and now the UK of the 21st century. The West Midlands is on a mission to deliver. Opportunity to integrate large scale investment and maximise impact

3. Challenge and 6 Principles: • Uniquely of the West Midlands – Precise about our offer and strengths • Focus on impact (impact on value and supply chains) • Build on existing LEP and CA strategies. • Be explicit about how we will create the conditions for both inclusive growth and productivity. • Be bold about our investment in human and natural capital – skills, leadership, environment and inclusion. • One West Midlands LIS – Clear about place and 3 LEP geography

4. Sector Specialisms • Aerospace • A global centre for aerospace design and manufacture • 25% of UK aerospace sector based in Midlands • 70 local companies support global players Airbus, BAE Systems, Boeing • Meggit investing £130m in Coventry • Automotive • UK’s premier centre for automotive with firms employing 46,500 people • Birmingham, Coventry and Warwickshire support more automotive jobs than any other LEP areas • Business growth of 12% over last 2 years – outperforming UK as a whole • Materials • Largest concentration of materials-related jobs in the UK • Unrivalled expertise in composite materials • 2,000 materials companies • Rolls Royce technology centre, Birmingham • Life Sciences • Devices, Diagnostics and testing • 13,000 life science companies • 7,400 medical grads/year • Queen Elizabeth Hospital – one of largest hospitals in Europe and includes national Institute of Translational Medicine • Business, Professional and Financial Services • One of largest full service clusters in Europe • A base for major institutions such as Lloyds Bank, Deutsche Bank and HSBC • Cutting-edge city centre space attracts big players • Employs 260,000 people • Creative • Largest jewellery and high-value ‘maker’ cluster in the UK • Also, dance and performance clusters centred on RSC and Birmingham Royal Ballet • 350+ creatives in Digbeth Creative Quarter, Birmingham • 6,860 creative businesses (second only to GMCA) • Gaming and AI • 40 gaming companies in Silicon Spa • 1,560 computer science grads/year • Serious Games Institute, Coventry University • Local universities at cutting edge of AI and VR research • Low Carbon Technology • World class university-led research with National Battery Prototype Centre and National Automotive Centre, both in Coventry • Advanced Propulsion Centre, Warwick • Specialisms in heating and cooling systems, fuel cells and batteries

5. Connectivity challenges and investment WMCA Output Gap £16.5bn

6. Targeted Investment For Growth • Housing Deal – 215,000 homes • HS2 – two stations and a connectivity package • Metro extension • Brownfield land package • Commonwealth Games • City of Culture • The levers we have now mean there is a real opportunity to deliver more and drive up productivity. 2 1 6 4 8 7 9 3 10 12 14 15 11 13 18 19 20 16 17 5

7. Skills Innovation Digital Trade & Investment West Midlands Industrial Strategy on a page Housing Delivery and Employment Land Energy Mobility / Transport Increase wage levels Sector actions plans - prioritising specific specialisms Inclusive Growth – Human Capital Improve activity levels Progression Rates Advanced manufacturing Access to employment Construction Creative Logistics / transport technology Low carbon technology Professional services Life sciences Rail Aerospace Metals & materials Automotive Devices Diagnostics trials Data testing Specific component manufacturing Offsite modern manufacturing Land remediation New mobility Battery development Drive train CAV Full services sector Energy

8. ‘Grand Challenges’ The WM response to the Grand Challenges is to view them at the centre of a wider West Midlands approach to innovation and research. In discussions with over 40 academics, we have identified 9 opportunity spaces. 1 Health data Housing – ageing population and new digital technology 6 Creative technologies in addressing isolation for older people 2 7 Energy and our energy capital Ageing workforce – allowing workers to continue working and ensure they are a regional asset 3 8 Ageing mobility Visitor services around the Commonwealth Games 4 9 Value from waste Urban mobility – end-to-end customer journeys, last mile deliveries and productive travel 5 Following the principle of connectivity. We have been working to connect our sectoral strengths to the opportunities presented by the Grand Challenges and demonstrate what this means for the West Midlands.

9. Future Mobility, Clean Growth and Automotive

10. Life Sciences and AI & Data

11. Timetable • Sector groups convened, with some plans fast-tracked • Review evidence base • Identify headline priorities for early development • Draft plans Co-design July Strategy development Aug - Nov Action Plan Development March • Draft document for September CA Board • Launch Local Industrial Strategy • Autumn Budget First Action Plans drafted April-May Consolidate & review June Scoping February • Workshops with sector groups • Potential Statement of Intent with Government • Deepen engagement process • Pre-recess document publication • Analyse current strengths, future opportunities, requirements, etc. • Develop overarching narrative • Potential Statement of Intent with Government

12. Questions: • How do we get WM businesses to do more and better product and process innovation? • What can the private sector do itself to increase innovation, and where does it need support and help ? • What could change or be different in the West Midlands that would help ? • What significant market opportunities can be created through local innovation strengths and good practice