Tag: Andrew Hodgson

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Nissan’s decision to continue production in Sunderland underlines the quality of the region’s automotive sector

Last week the North East LEP, along with the region’s business leaders and workforce, welcomed the announcement that Nissan will produce its new Qashqai and X-Trail models at its Sunderland plant.

This decision not only secures the jobs of nearly 7,000 people at the Nissan plant itself but also tens of thousands of jobs within the wider supply chain which is linked with Nissan throughout the North East.

Production at Sunderland’s Nissan plant began in 1986 and the first car to roll off the production line was a Nissan Bluebird. During the past 30 years models including the Nissan Micra, Nissan Note and Nissan Infiniti Q30 have all been made in Sunderland and the electric Leaf model has been produced here since 2012. The plant turns out around half a million cars a year and has ambitions to increase production even more, further cementing the region’s reputation as a leader in the automotive industry.

I believe that Nissan’s decision is a clear indication that the North East’s automotive sector is world-class. Cars produced in Sunderland are exported to more than 130 countries and the plant is regularly ranked as the most productive in the UK. It’s an astounding fact that one in every three cars made in the UK is made at the site in Sunderland.

The North East is at the forefront of the automotive industry – not just in the UK but globally – and this is something which the North East LEP will be working to build on, with the advanced manufacturing and automotive sector forming a key part of our strategic economic plan for the region.

The news that Nissan will continue to produce its cars in Sunderland is important for people working in the automotive sector today and it’s also important for young people in the region. It’s vital that the future workforce have good quality career opportunities which they can progress to when they leave education. We’ll continue to work with education providers and local industry to make sure that our young people are equipped with the skills they need to begin their careers here in the North East.

Nissan’s decision is an investment in the North East, an investment in our automotive sector and an investment in the people here who make it a global success story.

Andrew Hodgson, Chair of the North East Local Enterprise Partnership

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In Conversation with North East LEP Chair, Andrew Hodgson: North Easy Ready To Capitalise on EU Funding Guarantee

The North East ready to capitalise on EU funding guarantee.

The announcement by the Chancellor of the Exchequer Philip Hammond extending the European Union funding guarantee to the point of Brexit is an opportunity the North East is determined to seize.

Confirmation that the Government will honour structural and investment fund projects signed before we have left the EU is welcome news.

We now hope that this signals that the programmes will start to flow again.

In the North East, we are ready, poised and waiting with our partners to ensure those projects in the pipeline get over the line and secure much needed EU funding.

The Government is clear about the criteria projects must meet for this to happen.

They must continue to meet EU funding rules but must also demonstrate good value for money and be in line with domestic strategic priorities.

In the North East, we have a very strong pipeline of projects.

Many of them are aligned with the priorities of the refreshed North East Strategic Economic Plan, produced after widespread consultation by the North East Local Enterprise Partnership with its partners.

It’s about making sure that we all have those projects lined up and ready to respond to any opportunities that might be forthcoming.

And the only way to get more projects to come forward now is to have more application rounds or calls.

We are waiting for Government to press the button and invite more applications which could be before or after the Autumn Statement on 23 November.

We know where we are going with a clear vision and plan and it’s the LEP’s role to make sure that the strategically important projects are supported by our local partners.

It’s important at this point to take stock of what is at stake here and why this investment is so important to our region.

The North East was originally allocated £437m in European Structural Funds up to 2020. Out of that central pot, at present over £198m remains unallocated.

Some of this funding is earmarked to support business growth and job creation. The LEP and partners recognise the need to support more business start-ups, create more growth through innovation, and support more small and medium sized businesses to export.

The European Social Fund is funding earmarked for skills and employment support, helping the unemployed and economically inactive back into work and supporting those in work to up-skill and re-skill. This will mean employees in the workplace will get the opportunity to progress their careers, and to provide them with the opportunity to progress from part-time to full-time work.

We also have key sectors that we need to support with digital skills, a need identified in the work we did with the business community in the SEP refresh and a key Government priority.

We need to ensure that people within traditional industries have the skills to allow them to take the career progression opportunities further up the ladder.

In the healthcare sector for example, one of the gaps we can see emerging is the need for more skilled individuals able to support the sector’s growth.

The 50-plus workforce could lend itself well to this sector, they have the capability to fill these roles given their life experience, but they need new skill sets to take those opportunities.

We are saying to Government that we are ready and poised and we know what our priorities are.

We will work tirelessly to take the funding opportunities when they arrive.

North East England is one of the UK regions which needs EU funding most, with a proven track record of investing it well.

If this money is committed, it could see our region with structural funding in place up to 2021-2022, which gives Government the time to create the new policies to have new funding streams in place for the period after this.

There is a need to do this. Let’s get this moving and let’s do this well.

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North East LEP seeking Government assurances on Euro funding

Brexit and its impact on European Union structural funding will be more keenly felt in the North East than any other region.

We have an outstanding track record of securing substantial investment from Europe and investing it wisely to drive our economic growth.

While I can’t give cast iron guarantees about future EU funding, I think it’s important to outline where we are currently at and what the North East LEP is doing to press Government for assurances so we can plan ahead for a future without EU investment.

The North East LEP area has £90m of its total £437m EU funding allocation committed to projects planned to run until 2020.

We also have £104m worth of projects in the pipeline, put forward to Government for approval before the referendum vote.

There are big numbers attached to these schemes. In total, they will assist more than 7,400 businesses, support almost 30,000 people into work and help upskill people in work.

So far the Government has stated that it is ‘business as usual’ for contracted projects.
However, for the £104m of pipeline projects, the assurance of being able to secure EU funding is uncertain.

There are two important issues that we are seeking urgent Government assurance on.

Firstly, quantum. We have had verbal commitment – albeit from ministers no longer there – and quite strong public comments that the Government is committed to replacing the quantum of support that the North East currently has from the EU.

There have been more mixed signals since the referendum, however, about whether they will honour the full amount.

We have not had unequivocal certainty from Government. That is fuelling economic uncertainty and we need a commitment quickly that they will underwrite the full amount.

If the Government does commit to match the EU funding being lost, then that brings us to a second issue.

Can the Government commit to an absolute timing mechanism that triggers as soon as the EU funds stop?

That would allow our partners match funding the big structural projects to be able to develop their business cases and plan ahead with greater certainty for the longer term.

The future of the £120m Jeremie 2 fund is another hugely important issue for the North East.

European money makes up half of the fund which we worked hard to keep in the region for the exclusive support of North East small and medium-sized businesses.

We are seeking assurance that there will not be a negative impact on Jeremie 2 due to Brexit. In parallel, we are also exploring alternative ways to deliver similar support if that scenario arises.

A substantial amount of regional funding comes from the UK, through the Regional and Local Growth Funds and Enterprise Zones.

We handed our final submission for Local Growth Fund 3 to Government this week. We have put forward a very ambitious list of projects for the North East.

A really positive signal from Government would be a positive response to our Local Growth Fund bid – that would demonstrate real confidence in our economic future.

By Andrew Hodgson, North East LEP Chair

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North East LEP seeking Government assurances on EU structural funding

The North East Local Enterprise Partnership (LEP) is seeking reassurance that European (EU) funded projects already signed off by Government will continue to be delivered.

To date, the North East LEP area has £89.5million of its £437million EU structural funding committed to projects for the 2014-2020 period.

A further £104.5million worth of projects were put forward to Government for approval in advance of the Referendum.

Collectively these projects will support over 7,400 businesses across the North East LEP area, which covers Durham, Northumberland and Tyne and Wear, driving growth and job creation.

The funding will also support almost 30,000 local people into employment and provide those in employment with the skills they need to progress in work.

Chair of the North East LEP Andrew Hodgson said: “We are hopeful that these projects will be honoured by Government and deliver important support to businesses and local people before Brexit happens.

“It is important to realise we will not be immediately losing the opportunities that EU funding has historically brought to the North East.

“Millions of pounds of projects are still likely to go ahead, bringing new jobs and closing the skills gap in the North East. The truth is that we just don’t know yet if or when we will see changes.

“EU funding has hugely benefitted the North East over the last few decades and we are lobbying Government for clarity and seeking assurances that any potential future funding gap will be filled. We urge the Government to provide this guidance quickly to ensure opportunities to create jobs and growth are not lost.”

There is no formal Government guidance available currently following the EU Referendum result on the amount of European funding that will be available in the future for North East businesses and organisations beyond the projects already approved.

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In Conversation with North East LEP Chair and Chief Executive of Subsea Engineering Specialist Soil Machine Dynamics, Andrew Hodgson

It’s been a busy start to March for the region’s energy sector, with some real positives on the agenda for both immediate and longer-term growth.

More than 600 delegates from the worldwide industry were in Gateshead for the NOF annual energy conference at Sage Gateshead on Wednesday, March 10. Although Durham-based NOF badges this as a national conference, it attracts international attendees including delegations from Brazil, Canada and Oklahoma in the US.

The energy industry is a strong sectoral community that supports a lot of jobs in the North East. It’s also one that we’re really well-positioned to benefit from in the future, whether that’s oil and gas, offshore renewables or nuclear. Offshore engineering is one of the LEP’s smart specialisation areas and we’re investing heavily into the riverside infrastructure through the Enterprise Zones adjacent to the rivers Tyne, Wear and Blyth. This excellent deep-water access is vital for companies in the offshore sector.

Some of the NOF conference delegates were able to see our Tyneside facilities first hand, on an Invest North East England-hosted trip along the river. It was a well-received tour, which showcased some of the Tyne’s capabilities and some of the Enterprise Zone investments to a new audience.

Energy is an evolving industry and it’s vital for the region to be at the forefront of innovation if we’re to fully benefit from the more and better jobs it will create in the years ahead. The LEP is supporting the creation of the Neptune National Centre for Subsea and Offshore Engineering on the North bank of the Tyne. The centre, headed by Newcastle University, is the first of its kind in the UK and will lead the development of new technology for the industry.

We also have a very strong supply chain, which is recognised nationally and internationally. There were a lot of conversations at the NOF conference about the strength of the North East’s manufacturing and supply chain and its support of the energy sector worldwide.

We can’t ignore the downward pressure on jobs that has been caused by recent low global oil prices. The view from the NOF conference was that the industry is cyclical and these low prices are not sustainable, and that particularly offshore gas – as well as oil – still has huge growth potential. Plus, there is work available in efficiencies and decommissioning ahead of the upturn forecast by the industry. In the North East, I’m confident that in the long term, this is a sector where there are some really strong opportunities for the region.

In addition to the positives coming out of the NOF conference and some excellent forecasts of longer-term prospects for the region, we’ve also had some welcome news for the sector that will have more immediate benefit for the North East.

After a number of years of talks, the UK Round 3 offshore wind project is beginning to show significant progress with contracts starting to be placed for the planned new wind farms. Three North East companies – Tekmar, JDR Cables and Deep Ocean – are among the businesses to benefit as the programme finally gets underway.

For the oil and gas industry, it could be 12 to 18 months before we start to see signs of a major revival, but the industry is confident there are opportunities for growth on the horizon.

Andrew Hodgson is chair of the North East LEP, chief executive of subsea engineering company Soil Machine Dynamics, and chair of Subsea North East.

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Leading businessman Andrew Hodgson new North East LEP chair

Respected regional business leader Andrew Hodgson has been appointed the new chair of the North East LEP.

The chief executive of Tyneside-based Soil Machine Dynamics Limited (SMD) was elected chair at the LEP board meeting to succeed Paul Woolston, who stood down after five years at the helm of the organisation.

Andrew is a highly-respected leader in the subsea engineering industry, a recipient of three Queen’s Awards for Industry.

He is a former North East Business Executive of the Year, EY Entrepreneur of the Year, EEF’s UK Manufacturing Champion and was awarded an OBE for his work in Manufacturing and the North East economy.

SMD is recognised as one of the world’s leading manufacturers of remote intervention equipment, operating in some of the planet’s most hazardous environments.

Andrew’s appointment has been welcomed by the private and public sectors.

Andrew said: “It is a privilege to have the opportunity as the new North East LEP Chair to work with the public and private sectors to help grow the regional economy.

“The foundations are in place for this growth to continue thanks to the work of Paul Woolston and the team at the LEP in securing £1.5bn in funding to fuel new business growth and job creation.

“With all the opportunities that the devolution of powers from central Government will present the North East economy, we face a once in a generation opportunity to really transform our region. We must also ensure that the current momentum is not lost as we establish what devolution means to us.

“I’ve spent my career growing world class businesses both here in the North East and internationally. I will use my knowledge and that of the LEP board to create more and better jobs. We will make investments into the regional economy that will stimulate growth and allow us to seize these new opportunities.”

James Ramsbotham, North East Chamber of Commerce Chief Executive, said: “Andrew is a world-class business leader and his appointment as LEP Chair will ensure that business and its priorities are at the very heart of the LEP’s activities.”

Sarah Glendinning, Regional Director of the CBI, said: “Andrew’s appointment is excellent news for the region at a time when strong leadership and proven business acumen are needed to ensure we maximise the opportunities devolution presents us.”

Simon Hanson, Development Manager of FSB, said: “Paul Woolston did an outstanding job for the North East. The FSB is delighted that Andrew has stepped up to follow in his footsteps and continue to do the North East proud.”

Councillor Simon Henig, Chair of the North East Combined Authority and Leader of Durham County Council, said: “Paul Woolston has created a strong foundation for the North East economy to grow and I wholeheartedly support Andrew’s appointment to lead the LEP through the next phase. He has a deep understanding of the North East LEP from his time as vice-chair and is ideally placed to take the organisation forward.”