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New Science and Innovation Audit identifies ways the North East can prepare for Industry 4.0 – the fourth industrial revolution.

The integration of digital technologies into manufacturing is a major opportunity for businesses in the North East according to the findings of a new Science and Innovation audit.

Through a new audit of the region’s advanced manufacturing and digital sectors, the North East LEP and partners have identified opportunities for businesses in the automotive, pharmaceutical and chemical manufacturing sectors to build links with the North East digital sector, increasing the region’s competitiveness in the global marketplace.

James Davies, North East LEP Innovation Programme Manager, said: “In the North East we have a reputation for making things and making them well and our goods and products remain the source of the majority of our exports. However, the way we make these goods is continually changing and the region must prepare for this next great shift. We see the potential for links between the digital and advanced manufacturing sectors leading to new types of products and services.

“Our Applied Digital Technologies Science and Innovation Audit (SIA) was carried out in partnership with organisations across the North East and Tees Valley, with the aim of understanding more about how Industry 4.0 will impact on some of the North East’s biggest businesses.”

Based on a proposition set out by the German Government, Industry 4.0 refers to the next stage in manufacturing that uses new, digital and real-time approaches to production to meet demand for more complex, individualised and digitally enabled products.

The North East LEP worked with Tees Valley Combined Authority, local business and sector organisations, universities and the national Catapult Centres for Digital (North East and Tees Valley) and High Value Manufacturing (CPI) to carry out the SIA, gathering information on the opportunities and challenges facing three of the North East’s biggest manufacturing sectors: automotive, chemicals and pharmaceuticals.

The audit also looked into how the region’s digital sector can provide solutions, for example by using digital technologies to drive efficiency and competitiveness within the manufacturing process.

James Davies added: “We knew there was already work being done in the North East to use digital technologies to make our manufacturing more productive and competitive and the audit has helped to show what can be done to support more of this type of integration. We found opportunities to accelerate the adoption of digital technologies within advanced manufacturing businesses in the region, including actions that will help overcome the barriers to uptake.

“The digitisation of manufacturing is a major opportunity for us here in the North East and we will now be working with partners to roll out delivery of the recommendations from the audit.”

A summary of the Applied Digital Technologies in Advanced Manufacturing Science and Innovation Audit can be read here, while the full report can be downloaded here.

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North East LEP ONS Labour Market Statistics Reaction

North East Local Enterprise Partnership (LEP) Senior Economist Victoria Sutherland gave her reaction to this month’s regional labour market statistics.

“We welcome the increase in employment among 16 to 64 year olds in the North East during the last three months. A further 6,000 people in this age group have found employment.

“There is also data that shows that we are seeing an increase in both full time employment and self-employment whilst the numbers working part time are declining.

“However, today’s release showed that unemployment has increased, with 14,000 more people now actively seeking work.

“These mixed results reflect the fluctuations we have seen in the North East’s labour market performance during the last 12 months.

“The North East LEP will continue to work with its partners to achieve more and better jobs for the region. Our updated Strategic Economic Plan, setting out how we will work together to create 100,000 more jobs for the region between 2014 and 2024, with at least 70% of these being in managerial, professional and technical roles, will be launched on 14 February 2019.

If you have any further questions about this article, please do not hesitate to contact us directly.

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North East to pilot Open Innovation 2.0 Lab, working in partnership with European SMEs and multinationals

SMEs in the North East are being given the opportunity to partner with European businesses to develop new projects, solving problems posed by multinational manufacturers such as Nissan, Caterpillar and Komatsu.

 

The North East has been selected to pilot the Open Innovation 2.0 Lab programme which is designed to encourage cross-border collaboration and to give SMEs the opportunity to devise solutions to problems faced by large manufacturers.

Alan Welby, Innovation Director at the North East Local Enterprise Partnership (LEP), explained: “We know we have innovative, forward-thinking businesses here in the North East and this project will give those companies the chance to access real business opportunities with some of the largest manufacturing companies in Europe.

“The North East, along with Stuttgart, has been selected to pilot this programme and we will be matching international businesses that have industrial challenges with SMEs from our region and from Europe who can work together to provide solutions.”

SMEs which take part in Open Innovation 2.0 Lab will be given a real-world challenge which is faced by a large manufacturing business and invited to submit an idea for a possible solution. Those which are selected for the programme will be partnered with a European SME to further develop their idea and will also receive a €5000 voucher to support their work.

“We are strong believers in collaboration and by pairing each North East SME with a European counterpart we hope that businesses will be able to work together to further develop, strengthen and refine their ideas,” added Alan Welby.

The project is open to all SMEs based in the North East and businesses are invited to attend a launch event on Thursday 24 January at Newcastle’s Crowne Plaza where the challenge will be unveiled.

Successful applicants will be paired with a European partner in April 2019 to collaborate and work their idea into a deliverable solution.

Open Innovation 2.0 LAB is a two year Horizon 2020 project managed by partners from Greece, Luxembourg, Belgium, Germany and the UK.

Open Innovation 2.0 LAB is led in the North East by the North East LEP, RTC and Innovation SuperNetwork.

You can register for the launch event at https://www.eventbrite.co.uk/e/open-innovation-20-launch-event-tickets-54535655614

Find out more about the Open Innovation 2.0 Lab at www.northeastgrowthhub.co.uk/invite/

 

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North East LEP ONS Regional Labour Market Statistics Reaction

North East Local Enterprise Partnership (LEP) Senior Economist Victoria Sutherland gave her reaction to today’s regional labour market statistics.

“We are pleased to see that employment in the North East has increased by 17,000 over the last three months. This is particularly encouraging as the number of people employed in the North East declined earlier in the year.

“However, the unemployment rate has also increased from 4.4% to 5.5% over the last three months. Whilst this is disappointing, the unemployment rate still remains lower than it was this time last year, when it was 5.9%.

“Given the increases in both employment and unemployment, we have seen a decline in the number of people who are outside of the labour market, by 31,000 over the last three months. People can be outside of the labour market for a number of reasons, including full-time study, looking after family or home, disability, ill-health and retirement.

“We have seen fluctuation in the North East’s labour market performance during 2018. This is being driven by the considerable uncertainty in the national economy.

“This uncertainty was also reflected in yesterday’s EY UK Regional Economic Forecast report that showed that the North East is the region with the lowest forecast growth to 2020. It is critically important for the North East that we move to a period of greater certainty so that businesses are able to plan and grow.

“The North East LEP will continue to work with its partners throughout 2019 to deliver the Strategic Economic Plan’s ambition of creating 100,000 more jobs for the region between 2014 and 2024, with at least 70% of these being in managerial, professional and technical roles.

“We have recently worked with partners to launch a Brexit Toolkit that brings together business support, access to finance schemes and resources to help businesses with their preparations during this uncertain time.

The Brexit Toolkit can be accessed here: https://www.northeastgrowthhub.co.uk/toolkits/brexit-toolkit/

If you have any further questions about this article, please do not hesitate to contact us directly.

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Multimillion-pound business support programme set to launch

North East businesses will benefit from the launch of a new multimillion-pound programme aimed at those who wish to diversify, broaden their customer base and unlock new market opportunities.

Supply Chain North East will see four key partners joining forces to work with over 800 businesses between 2018-2021 supporting businesses to identify opportunities in new and existing markets. An integral part of the North East Growth Hub, Supply Chain North East will be delivered across the region by RTC North, Generator, North East Automotive Alliance (NEAA) and North East Process Industry Cluster (NEPIC).

Colin Bell, Business Growth Director at the North East LEP and leading the North East Growth Hub, said:

“Supply Chain North East has been created to enable more collaboration across multiple sectors. For example, often we see smaller businesses wanting to work within manufacturing or automotive but don’t know how to penetrate the market.

“Through this programme and the partners’ vast networks, we can give valuable advice delivered both at events and via one to one support to help them on that journey.

“A key benefit that businesses will gain is that they will build more diverse revenue streams, reducing reliance on a few customers and markets, which is particularly important with Brexit on the horizon.

“With new supply chain prospects in the North East, such as the £500 million Nexus Fleet Replacement Programme and opportunities further afield, this initiative has been designed to ensure our region’s businesses are well placed to grow their customer base, strengthen supply chain management and diversify their products and services.

“Supply Chain North East also focuses on helping businesses make the most of new technology to drive higher profits, productivity and innovation in new products and services.”

Alan Whittaker, Programme Manager of Supply Chain, added:

“We’re delighted to be delivering a programme that can make a real difference to local businesses in the North East by tapping into national and international opportunities.“All partners involved in delivering this programme offer businesses access to a vast amount of expertise and wealth of experience. It’s the strength of this partnership that will ensure Supply Chain North East helps businesses to thrive and succeed.”

If you are business that meets the following criteria;

Based in the North East LEP area (Sunderland, Durham, Gateshead, Newcastle, North Tyneside, South Tyneside, Northumberland) and are in the following sectors:

  • Advanced manufacturing
  • Subsea, offshore and energy technologies
  • Automotive and transport
  • Health and life sciences
  • Digital, tech and creative
  • Process, chemical and pharmaceutical

Then join us for the launch event on Thursday, 24th January at the Crowne Plaza, Newcastle. To register visit here >>

Visit www.supplychainnortheast.co.uk for more information or call 0191 516 4400.

If you have any further questions about this article, please do not hesitate to contact us directly.

ENDS

Notes to editor:

RTC services are designed to help clients innovate, compete and grow. Specialising in the commercialisation of new products and services, we work with individuals, businesses and the public sector to help create more innovative and vibrant economies.

Founded in 1989, the company has vast experience of helping organisations with all stages of the innovation and IP commercialisation process and uses this expertise to support partners at a UK regional, national and European level.

RTC is a lead UK partner in the worlds’ largest business support network – Enterprise Europe Network – and has established relationships with partners in Asia as well as North and South America.

ERDF

Supply Chain North East project is supported by the England European Regional Development Fund as part of the European Structural and Investment Funds Growth Programme 2014-2020.

About the North East LEP

The North East LEP is a public, private and education sector partnership that covers Durham, Gateshead, Newcastle, Northumberland, North Tyneside, South Tyneside and Sunderland local authority areas.

The £270.4m Local Growth Fund, secured as part of the North East Growth Deal, supports the North East LEP’s delivery of the Strategic Economic Plan, which aims to create 100,000 more and better jobs by 2024.

Local Growth Fund

Local Enterprise Partnerships are playing a vital role in driving forward economic growth across the country, helping to build a country that works for everyone.

That’s why by 2021 Government will have invested over £12bn through the Local Growth Fund, allowing LEPs to use their local knowledge to get all areas of the country firing on all cylinders.

Analysis has shown that every £1 of Local Growth Fund invested could generate £4.81 in benefits.

Generator

Generator is the leading sector specialist development agency in the North of England.

The flexible and agile approach to supporting both businesses and creatives in the digital and music industries has kept it ahead of the curve when supplying business and talent development for over 25 years.

Starting out as an organisation seeking to navigate pathways for musicians, songwriters and bands to the national music industry and help strike meaningful careers in their chosen direction Generator has evolved into one of the only sector specialist business support agencies for the creative digital tech and music sectors in the UK.

NEAA

The North East Automotive Alliance (NEAA) is an industry-led cluster group, established to support the economic sustainable growth and competitiveness of the sector in the North East of England.
Launched in March 2015, with over 330 cluster participants, the NEAA is the largest automotive cluster in the UK and one of the fastest growing clusters across Europe. The NEAA provides a single unified voice to key stakeholder groups and promotes the true value created by the North East Automotive sector.

NEPIC

NEPIC works with chemical-processing and supply chain companies to help them become successful and sustainable organisations in a business environment that enables them to grow. Through its established network, NEPIC provides business growth support to companies small and large via networking, events, mentoring, best practice, promotion and signposting.

 

 

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A statement from the North East Brexit Group

The North East LEP recognises that Brexit is a complex debate and that economic output is only one aspect of it, however the North East LEP has a responsibility to provide information on the economic outcomes in the most balanced and responsible way we can. We were therefore instrumental in forming the North East Brexit Group within the region following the decision to leave the EU.

The Group provides a collective, single voice to contribute to and influence the on-going national dialogue around the UK leaving the European Union. It is made up of members from business representative organisations, the education sector, trade unions, local authorities, the North East LEP and voluntary organisations.

The Group has monitored and prepared evidence about the potential impact of Brexit scenarios and related economic issues, incorporating evidence, views, experiences and responses of business, education and other organisations in the North East region, aiming to ensure that a clear and co-ordinated North East voice is heard.

In this work, the group has:

  • Published a response to the Migration Advisory Committee Call for Evidence in October 2017, which can be viewed here
  • Published a ‘key messages’ statement on what our regional priorities are to inform Brexit negotiations, available here
  • Published a meta-analysis of reports and studies examining the impact of Brexit on the North East economy and its key sectors, available here. The accompanying press release is available here
  • Responded to the All Party Parliamentary Group (APPG) inquiry into post-Brexit funding, specifically the UK Shared Prosperity Fund, available here
  • Supported the development of the Brexit Toolkit which is now live on the North East Growth Hub, available here.

The North East Strategic Economic Plan, which will inform the Local Industrial Strategy, aims to create 100,000 ‘more and better’ jobs between 2014-2024. To date there are 62,500 ‘more’ jobs of which 78% are ‘better’ jobs.

The reports and evidence detailed above are available to inform the practical arrangements for Brexit and the potential impacts on the North East economy, and therefore on our residents and businesses.

If you have any further questions about this article, please do not hesitate to contact us directly.

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North East LEP ONS Regional Labour Market Statistics Reaction

North East Local Enterprise Partnership (LEP) Senior Economist Victoria Sutherland gave her reaction to today’s regional labour market statistics.

“Today’s statistics show a mixed picture. We are pleased to see that employment in the North East has increased by 11,000 over the last three months. This is particularly encouraging as employment across England as a whole only increased by 23,000 and many regions experienced a decline in the numbers in work over this period.

“More disappointingly, unemployment has also increased over this period. Over the quarter, the unemployment rate has increased from 4.3% to 5.0%. However, it is still below the level it was at this time last year (5.5%).

With more people working and actively seeking work, the numbers economically inactive have fallen over the quarter. The economically inactive includes individuals who are not actively seeking work for a wide range of reasons, including full-time study, looking after family and home, disability and ill-health, and retirement.

“Over the last few months we have seen considerable uncertainty in the economy and this is being reflected in the labour market statistics.

“One driver is the uncertainty about Brexit. It is important that businesses are able to plan for the future and we have worked with regional partners to launch a Brexit Toolkit that brings together business support, access to finance schemes and resources to help businesses with their preparations.

“The North East LEP will continue to work with its partners to deliver the Strategic Economic Plan’s ambition of more and better jobs.”

Ends

The Brexit Toolkit can be accessed here: https://www.northeastgrowthhub.co.uk/toolkits/brexit-toolkit/

If you have any further questions about this article, please do not hesitate to contact us directly.

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Regional governance changes

Regional governance changed today after the Government agreed to form a new Mayoral-led North of the Tyne Combined Authority, under which Northumberland, North Tyneside and Newcastle local authorities have joined forces.

The stand-alone organisation will operate separately to the North East Combined Authority, which will continue with the four local authorities south of the Tyne: Durham, Gateshead, South Tyneside and Sunderland.

As before, transport matters for the North East region will be overseen by all seven local authorities.

There will be no changes to the North East Local Enterprise Partnership (LEP) which will continue to advocate for the region as a whole and provide strong, collaborative leadership to grow the North East economy through an effective partnership with the public, private, education and third sectors.

The North East LEP, together with its partners, remains committed to creating 100,000 more and better jobs for the region by 2024 and the North East Strategic Economic Plan.

Regional governance chart.

To read the press release on this news from the Government, click here.

Statements from the North of Tyne Combined Authority and the North East Combined Authority are detailed below:

Press release from North of Tyne Combined Authority

North of Tyne leaders welcome a historic moment as £600m devolution deal gets final approval by Parliament

Economic growth, job creation, support for people and their families, rural communities, and inward investment will all be on the agenda when the new North of Tyne Combined Authority meets for the first time on Thursday 8 November.

The authority – the body that will drive economic growth and job creation in the area – has been formally approved and brought into law by Parliament.

The signing of the Parliamentary Order by Northern Powerhouse Minister Jake Berry last night (1 November) formally concludes the ambitious £600m North of Tyne devolution deal – an unprecedented transfer of power and investment from Westminster to the North East.

The inaugural meeting of the cabinet for the new combined authority will take place at Morpeth Town Hall on 8 November.

At that meeting, the new authority will agree its policy and investment priorities – wasting no time in getting on with implementing the areas in the devolution deal to benefit people, communities and businesses across the North of Tyne area.

It will also agree the process for the appointment of the interim Mayor who will head up the authority until the first Mayoral elections take place in May 2019.

Welcoming a new era in local decision-making, the new North of Tyne cabinet will focus on getting on with things and making sure that people and businesses will quickly start to see a real difference and the benefits of devolution.

Councillor Nick Forbes, Leader of Newcastle City Council, said: “Today marks a significant day in the north’s devolution journey. We’ve begun the work of uniting behind a single voice and taking control of our future.

“We still have much more to do in bringing further powers and decision making back to people here, but this devolution deal marks a big step forward in our plans to create more and better jobs across Newcastle, North Tyneside and Northumberland. Now we need to get on with the task at hand, investing in our region and showing the nation and beyond why this is such a great place to live, work and visit.

North Tyneside’s Elected Mayor, Norma Redfearn CBE, said: “This is a historic day for the region. The North of Tyne area already boasts one of the fastest growing economies and job rates anywhere in the UK and this will offer us greater opportunities to grow and develop. We have shown that we are big enough and bold enough to carve our own destiny and devolution puts us in a very strong position to build on our strengths and achieve great things for all of our businesses and residents long into the future.”

Councillor Peter Jackson, Leader of Northumberland County Council, said: “So much work has gone into securing the best deal for the North of Tyne and I’m delighted we can now move forward with the real business of driving the region’s economic growth.

“We’re working on a number of exciting and transformative schemes which will benefit millions of people in the region now, as well as future generations, and we are all excited by the opportunities that lie ahead.”

Andrew Hodgson, Chair of the North East Local Enterprise Partnership (LEP) said: “The North East LEP welcomes the new powers, funding and opportunities that devolution brings to the North East.  We look forward to working with colleagues in the new North of Tyne authority as we collectively continue making the North East a more prosperous place for our businesses and residents.  Here at the North East LEP we will continue to advocate for the region as a whole and provide strong, collaborative leadership to grow the North East economy through an effective partnership with the public, private, education and third sectors.”

Northern Powerhouse Minister, Jake Berry MP, said: “Today is a great day for the North of Tyne area. Thanks to the hard work of local leaders, we have delivered a historic devolution deal in the Northern Powerhouse and over half a billion pounds of investment into North Tyneside, Northumberland and Newcastle-upon-Tyne to improve services, create new jobs and drive growth. We’re transferring funding and decision making away from Westminster and placing them directly into the hands of local people, allowing them to shape their own public services and forge their own destiny.”

ENDS

NOTES TO EDITORS:

A summary of the exciting new powers and funding that will be available to the North of Tyne through this deal:

  • A new, directly elected Mayor for North of Tyne to give a strong and powerful voice to our area.
  • £600 million of extra money to invest in the North of Tyne.
  • Projects to improve education, skills and help people get into work.
  • Local control of the £23 million per year budget for adult education.
  • Powers to develop land for economic growth and regeneration.
  • Projects that increase the growth and productivity of our rural communities.
  • Working better with Government to boost trade and investment.
  • Projects to grow our digital sector and low-carbon economy.
  • A joint committee to manage public transport across the North East.
  • A commitment to explore new opportunities for the North of Tyne in future.

About North of Tyne:

North of Tyne describes the area covered by Newcastle, North Tyneside and Northumberland local authorities.
It begins at the most southerly boundary of Northumberland and continues north to the border with Scotland, and spans from the North Sea on the east coast to the border with Cumbria in the west.
The area has a population of 880,000, a local economy of £17 billion, over 360,000 jobs and it is home to 23,000 businesses.
The North of Tyne is filled with stunning natural landscapes, great people, and has a strong track record of creating jobs and supporting world-leading businesses. It also has lots of potential, including:

  • one of the fastest-growing local economies and job growth rates in the country
  • one of the fastest-growing technology sectors outside of London
  • the highest-skilled workforce in the North
  • excellent transport links nationally and internationally
  • innovation, research and development hubs in two universities and world-leading businesses
  • a huge range of natural, historic and cultural assets.

Statement from the North East Combined Authority:

A statement issued on behalf of the leaders of Durham County, Gateshead, South Tyneside and Sunderland City Councils; Councillors Simon Henig, Martin Gannon, Iain Malcolm and Graeme Miller, said: “The North East has an abundance of assets and vast economic potential and the four North East Combined Authority councils – Durham, Gateshead, South Tyneside and Sunderland – have an absolute and steadfast commitment to unlocking more and more of this potential.

“Though the North of Tyne Devolution Deal has seen our counterpart authorities in Newcastle, North Tyneside and Northumberland form their own new mayoral combined authority, we know that the strength of partnership that remains across all parts of our region will allow us to continue to drive forward priorities around economic development and regeneration, delivering huge benefits for everyone across the North East.

“Leaders from the NECA authorities will meet soon to consider the results of an economic assessment that will help us understand more of the scale and potential of our area – a place that is already making a significant contribution to not only the wider North East, but UK Plc as a whole.

“There remains an unwavering commitment from NECA to work in partnership with our colleagues in the north of the region, as well as in Tees Valley – there are great synergies between all three areas.  We will work shoulder to shoulder with colleagues across the North East to make sure that our part of the region delivers on its undoubted promise and potential.”

Ends.

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North East LEP ONS Regional Labour Market Statistics Reaction – October 2018

North East Local Enterprise Partnership (LEP) Senior Economist Victoria Sutherland gave her reaction to today’s regional labour market statistics.

“We are pleased to see that unemployment in the North East continues to fall. There are 18,000 fewer people unemployed than a year ago and 4,000 fewer than last quarter.

“Over the year, the North East’s unemployment rate has fallen from 5.8% to 4.5%, the largest decline of all UK regions and nations. This is good news for the North East’s residents.

“Over the last quarter, we have also seen an increase in employment of 6,000. This is positive news as earlier in the year we experienced some falls in employment. Such short term movements highlight the uncertainty and challenges in the global economy and we are likely to see more of these in the coming months.

“Looking at the year to June, there has been growth in employment across a number of different sectors including professional, scientific and technical activities (which includes activities in law, accountancy, consultancy, architecture and engineering amongst others) and transport and storage.

“As well as those in employment and those that are unemployed, there is a third group that is comprised of those who do not have a job but are not actively seeking work.

“The number of working age people (aged 16 to 64) in this group has increased over the quarter and the year. Whilst this may initially look like a negative trend, further analysis shows that this has been driven by an increase in people who are inactive and do not want a job (for example, because they are in education or they are looking after family or home).

“The North East LEP will continue to work with its partners to deliver the Strategic Economic Plan’s ambition of more and better jobs.”

Ends