The year ahead: Let’s not get left behind!

Damian Waters is brutally clear on the challenge facing Lancashire in 2018. “Manchester is on to its seventh devolution deal already and Lancashire is being left behind,” he points out.

The regional director of the CBI is also crystal clear about what needs to happen over the next 12 months. “All parties must come together to act in the interests of creating an economy that creates a more prosperous society,” he says.

A devolution deal – or the impact of not having one – is also at the forefront of other industry and business leaders as they look towards the year ahead.

Miranda Barker, chief executive of  East Lancashire’s  Chamber of Commerce, wants to see some joined up thinking – and that includes “a clear strategy” and sense of leadership from the powers that be both in Westminster - and nearer home.

She says: “The initiatives we’re seeing coming out of Westminster, such as the Industrial Strategy, have to overlap and work with each other in a cohesive way if we are to tackle issues such as productivity.

“That joined up thinking also goes for local government. The stalling on a combined authority we’ve seen has not been helpful. There is frustration in the business community that an opportunity to get more direct control over important issues is not being taken.

“It has been made clear that when it comes to money and influence those areas that have devolution deals will be first in the queue. The danger is Lancashire will be left out in the corridor.”

And she adds: “It is also really important that Lancashire has a strong voice when it comes to the Northern Powerhouse. Our manufacturers and engineers should have a real role to play in its development.”

At County Hall, Michel Green, cabinet member for economic development, environment and planning, says there is a busy and productive year ahead, not least with the continued delivery of the £430m City Deal programme.

Boost, Lancashire's Business Growth Hub, has already created more than 1,500 new jobs, he says, and in 2018 will deliver its 2,000th bespoke growth programme for a local SME.

He adds: “In 2018 we will launch the Lancashire Advanced Manufacturing and Energy Cluster, focused on our four Enterprise Zones at Samlesbury, Hillhouse, Blackpool Airport and Warton - an investment offer of Northern Powerhouse significance.

“Construction will begin at Cuerden, Lancashire's largest employment site, with major new developments taking shape in Lancaster, Burnley and along the M65 Growth Corridor.”

There are challenges around the county’s east-west connectivity which continue and need to be recognised, he says adding: “We are working with the Northern Powerhouse Minister and Transport for the North to ensure this.”

Stuart Thompson, chairman of Lancashire’s Institute of Directors, describes 2018 as a “pivotal year” for the county and says the first challenge for businesses is managing the uncertainty surrounding Brexit.

Meanwhile, Gary Lovatt, non-operational director and Lancashire and Cumbria regional chairman of the Federation of Small Businesses, says companies in the county continue to be resilient. But he wants them to be given more certainty.

He says: “The focus on economic performance has changed in recent months, moving away from austerity to looking at how we improve productivity.

“The seemingly age-old question around why we are so less productive than counterparts on the continent has no clear answer, yet the solution will need to be stimulated by investment, whether that be in skills, road and rail infrastructure or better broadband.”

The final word goes to Miranda Barker. “Despite the uncertainty, some say chaos, that we witnessed throughout 2017, manufacturing in Lancashire has been growing. It highlights the resilience of business in the county and gives a sense of reassurance for the year ahead.

“I’ve got a lot of faith that whatever the circumstances our businesses will find a way to succeed.”

A fuller version of this article appears in the current edition of Lancashire Business View

---

Let’s get innovative

By Shru Morris, CEO of regional law firm Napthens.

Innovation is key to sustainable growth in Lancashire - that’s the message from many of the businesses we speak to on a daily basis.

The next 12 months will undoubtedly contain challenges, often relating to the uncertainties of preparing for Brexit, but also plenty of opportunities.

Brexit has been on the horizon for some time, so many Lancashire businesses are prepared for the difficulties this may bring with clear business strategies and operational plans in place.

There are concerns around the skills gap. We hear time and again of the need to attract skills from outside Lancashire. So we must promote the benefits of working here – the cost of living, work-life balance, good schools and the high number of world-class businesses based in the area.

This has been an important message for us, as we have been successful in attracting talent from outside the area to our firm. Meanwhile, our apprenticeship scheme and the use of graduate training contracts is helping us retain local talent from our high calibre universities, colleges and schools.

Pressure on wage growth will require businesses to focus on incentivising and motivating staff without high costs. Innovation will be crucial for many in adding value to products and services and to support future growth. Businesses need to take advantage of local government incentive schemes where available, particularly around funding to invest in technology and associated training.

For 2018, Napthens has three areas of focus and we know that many businesses across the region share these priorities:

• Investing in our people through training and clear career development
• Listening to our clients, continually improving services to meet their changing needs
• Innovating and developing new ways of delivering services to help clients meet these needs

The local economy has proven its resilience time and again, but we can’t take this for granted. Brexit will undoubtedly have an impact on sectors like construction and leisure which could be impacted by restrictions on future migration; meanwhile the weak pound will remain challenging for manufacturing businesses. To remain competitive, Lancashire must retain its strength in innovation, developing and attracting the skills we need to achieve continued growth.