Coventry and Warwickshire
Economic Review – Strand 5:
Advanced Manufacturing and
Engineering in Coventry and
Warwickshire
A report to Coventry and Warwickshire Local
Enterprise Partnership
August 2013
NOTE ON THE USE OF THIS REPORT:
The raw data (on which the analysis contained in this report is based) were supplied
to SQW by Warwickshire County Council, and are subject to confidentiality and
disclosure issues and restrictions. These would need to be addressed before this
report is shared with any third party. At present therefore, the report should be used
by
CWLEP
for
internal
purposes
only
Contents
1. Introduction and overview of the AME sector .................................................................. 1
2. AME companies in Coventry and Warwickshire ............................................................. 10
3. Research infrastructure .................................................................................................... 16
4. AME sector: constraints to growth in Coventry and Warwickshire ............................. 23
5. Projections for the AME sector – and the impact of an alternative growth scenario . 27
6. Conclusions ........................................................................................................................ 32
Contact:
Christine Doel
Rebecca Pates
Kathryn Hill
Tel:
Approved by:
Christine Doel
Date:
01223 209400
0161 475 2112
020 7391 4116
email:
cmdoel@sqw.co.uk
rpates@sqw.co.uk
khill@sqw.co.uk
August 2013
Director
0
1. Introduction and overview of the AME sector
1.1
SQW was commissioned in July 2013 to undertake an economic and intelligence review for
Coventry and Warwickshire Local Enterprise Partnership (CWLEP). The purpose of the
work was to help develop a clear and consistent evidence base to underpin the City Deal bid
and the forthcoming Strategic Economic Plan and EU Investment Strategy.
1.2
Given the significance of the Advanced Manufacturing and Engineering (AME) sector to
Coventry and Warwickshire’s (C&W’s) economy1, and its central focus in the City Deal bid,
the decision was made to undertake a specific review of the sector. This paper summarises
the findings of this review, and provides a synthesis of evidence related to:
1.3

Economic performance of the sector – in terms of scale (employment and GVA),
structure, and spatial distribution

Profile of large AME companies in C&W – including automobile, energy and
IT/communications companies

Research infrastructure – including private- and public sector research and
development (R&D) and testing facilities

Constraints to growth characterising the sector – including skills, infrastructure
and business environment constraints

Future projections in relation to the AME sector in Coventry and Warwickshire,
and the economic impacts linked to an alternative growth scenario.
This document is based primarily on secondary (statistical and other) data sources and
projections from Cambridge Econometrics. It also draws on the knowledge of local partners
(based on a working meeting which was held in late July 2013, and then a wider workshop
which was held in August), as well as comments from partners in response to an earlier draft
of this report.
Definition of the AME Sector
1.4
The manufacturing sector has evolved rapidly in the UK over the last decade. Technological
changes and the transfer of production to lower wage economies has increased the
importance of advanced manufacturing, which is now seen as one of the linchpins of the UK’s
future economic growth2. AME is a difficult sector to define however. It cuts across a
number of other value chains and sectors (including the retail and service industries), and
while often used to refer solely to products, it also covers the processes and behaviours
producing them.
1.5
In C&W, a relatively ‘broad’ definition of AME has been adopted, covering both products and
processes, and applied on a case-by-case basis, according to a set of underlying and
relatively broad ‘principles’, rather than pre-defined characteristics. These principles align
AME featured in top 5 sectors in CSW Sector Growth Analysis, which ranked sectors in the sub-region according to their
contribution to employment, economic output, growth potential, competitive advantage and wider economic benefit
2 BIS, September 2012, BIS Economics Paper No. 18, Industrial Strategy: Sector Analysis.
1
1
closely with the national government’s classification of the sector, as defined in the Growth
Review Framework for Advanced Manufacturing3. AME companies are classified as follows:
1.6

innovative in nature, drawing heavily on capital and knowledge

requiring significant investment in R&D and modern technologies

requiring a highly-skilled workforce, with the transferable skills (particularly in
STEM subjects) to allow for a quick and flexible response to new market
opportunities

competing in international and domestic markets.
Sectors to which these principles apply include the life sciences (including medical
technologies), agri-technology, environmental technologies, low carbon and green
technology, aerospace engineering, and some retail and service activities. The automotive
industry (and the knowledge intensive services that have been built up around it) is most
commonly associated with AME in C&W. However, as this report highlights, the energy
sector and IT/communications also play a key role.
AME sector and the UK Industrial Policy
1.7
CWLEP’s focus on the AME sector as a priority for future investment and growth has strong
synergies with wider UK economic policy, as expressed in the Industrial Strategy4, the ‘Witty
Review’5 and the 2010 Growth Review. The sector is now seen by the Coalition Government
as a key driver of growth and innovation in the UK, featuring centrally in the Industrial
Strategy for a number of reasons. This includes its potential for significant expansion, given
the growing market demand for high-end, luxury vehicle and new aircraft, and contribution
to innovation and knowledge spill-over across other sectors. AME is also seen to offer
strong opportunities for government to collaborate with business and generate impact, for
example by addressing market failures and procurement policy. Finally, the sector is seen as
key to improving the economic resilience of areas, which is important given this issue has
gained increasing ground in economic policy since the global economic downturn.
1.8
The extent of current government’s commitment towards advanced manufacturing was
made clear in the 2011 Plan for Growth (2011):
“Advanced manufacturing will particularly benefit from: changes to capital allowances;
the establishment of a High Value Manufacturing Technology and Innovation Centre;
the development of a new degree-equivalent Higher Level Apprenticeship; and nine new
university based centres for innovative manufacturing”.
1.9
While the status and scope of this support may have changed a little since this Plan was
published, government’s commitment to the sector has remained. Sub-sector strategies,
such as the 2013 Automobile Strategy6, have generated their own investment and growth
Growth Review Framework for Advanced Manufacturing, Department for Business, Innovation and Skills, 2010.
BIS, September 2012, BIS Economics Paper No. 18, Industrial Strategy: Sector Analysis.
5Sir Andrew Witty, 2012, Independent Review of Universities and Growth.
6 Driving Success – a strategy for growth and sustainability in the UK automotive sector, UK Government, 2013.
3
4
2
plans, and wider policy reference to AME has commonly been made, such as in Chancellor of
the Exchequer’s reference to the ‘Eight Great Technologies’7 in 2012.
1.10
Even though the Industrial Strategy is a national strategy reflecting national strengths and
competitiveness, its focus on AME, as well as knowledge-intensive services and enabling
sectors, therefore stands C&W in good stead. As government policy increasingly favours a
sector-based, localised approach to economic policy, based on local areas prioritising their
own areas of competitiveness and specialisation, it makes sense that C&W aims to capitalise
on these strengths. However there are a number of significant research gaps, which are
highlighted in further detail below.
Scale of the AME sector in Coventry and Warwickshire
1.11
C&W’s employment base has changed significantly in recent years, as a sharp decline in
manufacturing sector employment has coincided with considerable growth in business and
financial services, transport and logistics, construction and public services (particularly
health and education). Between 1998 and 2008, approximately 42,360 manufacturing jobs
were lost in the Coventry, Solihull and Warwickshire sub-region8, the largest element of
which was in the manufacturing of motor vehicles. This sector saw a decline of 14,400 jobs
between 1998 and 2008, predominantly in Coventry and Solihull9. Manufacturing of
fabricated metals (-6,900, mostly in Warwickshire), and the manufacturing of machinery &
equipment (-5,030, mostly in Coventry) also suffered major job losses during this 10 year
period10.
1.12
Over the last few years, employment data present a more mixed picture. Data captured as
part of the 2012 Quarterly Economic Survey highlighted 28% of AME employers
experiencing a reduction in their labour force between the second quarter of 2009 and the
third quarter of 201211. There have also been recent reports of potential job losses by
companies such as Rolls-Royce. On the other hand, data on C&W’s top 100 companies12
suggests a positive trend in AME employment, with large increases in the workforce of some
of the sector’s largest employers (including JLR, Tata Motors, Brose, Alstom, and YUT Ltd13)
between 2008 and 2011. In addition, there have been signs of resilience picked up among
SMEs, with 27.4% of smaller companies reporting in a recent survey an increase in staff
numbers14.
1.13
Despite negative growth forecasts at the ‘headline’ level, employment in the AME sector
therefore seems robust. According to 2009-2011 BRES data, the sector accounts for 9.7% of
overall employment15 (38,480 jobs) in C&W, although more recent estimates suggest that
The ‘Eight Great Technologies’ are the big data revolution and energy efficient computing, synthetic biology,
regenerative medicine, agri-science, energy storage, advanced materials, robotics and autonomous systems, satellites and
commercial applications of space
8 Understanding future sectoral growth in the Coventry, Solihull and Warwickshire Sub-region. Warwickshire County
Council, 2012.
9 Ibid.
10 Ibid.
11 Quarterly Economic Survey, Preliminary Report – Third Quarter, 2012.
12 CWLEP Top 100 growth companies, 2012, TBR Observatory 2012 and 2013.
13 Between 2011 and 2013, JLR increased its workforce at Gaydon by 32%; and Tata increased its Coventry-based
workforce by 42%.
14 Advanced Manufacturing and Engineering Skills Analysis for Coventry, Warwickshire, Hinckley and Bosworth, A Report
to Coventry and Warwickshire LEP, ECORYS, 2013. p. 26.
15 BRES data, based on a three-year average for 2009-2011.
7
3
this level is higher. This figure is comparable to other large sectors, notably education
(11%), retail (9%16) and health (6%). As noted in the Coventry and Warwickshire Interim
Growth Plan17, the manufacturing sector also spends a significant percentage in industries
including electricity, gas and water provision, transport and financial services.
1.14
Relative to England, the sector’s contribution to employment in C&W is also above average.
C&W ranks in the top three 39 LEP areas based on the contribution of the sector to overall
medium and high technology manufacturing employment. Gloucestershire and Leeds City
Region are the only LEP areas with greater shares of AME employment18. According to data
recently released by UKTI, the LEP areas that had the largest share of inward investment in
the ‘AEM119’ sector in 2012-13 were Greater Birmingham and Solihull, Sheffield and Leeds
City Region20.
1.15
Within AME, the specialism that bears the most significance in terms of both employment
and location quotient (LQ) in C&W is the automobile sector. According to BRES data, the
manufacture of motor vehicles, trailers and semi-trailers represents 2.6% of employment in
C&W, and has a location quotient of 5.1 relative to England21. Approximately one tenth of all
automotive jobs in the UK are located in C&W22.
1.16
Other AME sub-sectors that are significant in employment terms, but do not have as high a
LQ are architectural and engineering activities, the manufacturing of fabricated metal
products, and the manufacturing of machinery and equipment. These have LQs of 1.5, 1.6
and 1.8 relative to England, and account for 2.3%, 1.7% and 1.2% of overall employment.
Figure 1-1 below highlights the contribution of employment provided by these AME subsectors relative to the England average; the strong LQs for the individual specialisms are
clearly apparent.
This figure does not include the retail of motor vehicles.
Coventry and Warwickshire Interim Growth Plan, County Council, 2011. p.17
18 Snapshot of the AME Sector in Coventry and Warwickshire. Philip Amison, 2013.
19 AEM1 covers automotive, railways, mechanical electrical and process engineering, metals, minerals and materials,
metallurgical process plant, textiles.
20 Coventry and Warwickshire Inward Investment Report, A report in confidence from UKTI Investment Services Team to
Coventry and Warwickshire, July 2013.
21 BRES data, based on a three-year average for 2009-2011.
22 Coventry and Warwickshire Interim Growth Plan, County Council, 2011. p.33
16
17
4
Figure 1-1: Share of employment and LQ for CWLEP
Source: SQW
1.17
1.18
Alongside a relatively robust employment base, available evidence suggests that key AME
businesses are also growing in C&W, and diversifying their product base to respond to new
market opportunities and niche sectors. For example:

approximately 600 enquiries are made to the Inward Investment team at WCC per
year; a good proportion are related to the AME sector

some 50% of manufacturing businesses that responded to a business survey
conducted by TBR in C&W in 2012 stated that their business had experienced an
increase in orders, custom and/or bookings compared to 34% a year earlier; the
2012 survey reported the highest rates since the survey began23

AME companies feature centrally in those identified by TBR in 2012 and 2013 as
having the highest potential for growth24. TBR’s list included the more ‘obvious’
larger employers (e.g. JLR, Tata), as well as smaller suppliers including Automotive
Trim Developments Ltd, Kennet Equipment Leasing Ltd, G Tec Engineering Ltd, and
Universal Heat Transfer Ltd.
Reasons provided for this growth are both local and wider in scope. Despite suggestions
that some European investors are reluctant to invest in the UK’s AME sector, due to
perceptions that the market is ‘dislocated’ from continental Europe, reports suggest that
strong R&D practices, a flexible labour market, and good investment climate, supported by
several government interventions (e.g. tax breaks, enterprise zones) have created an
environment in which foreign investors are increasingly looking to the UK as a focus of
investment. This certainly applies to the automobile sector, and recent investment decisions
23
24
CWLEP Top 100 growth companies, 2012, TBR Observatory 2012 and 2013.
Ibid.
5
indicate that it may also apply to other sectors, notably energy25. The automotive sector is
one of the UK’s leading exporters in value, generating £30.7 billion in revenue in 2012 and
representing 6.3% of UK exports26.
1.19
Locally, Jaguar-Land Rover and more generally C&W’s historical specialisms in AME also
continue to exert a strong influence on investment decisions, as does the strong R&D base,
which is seen as key to the area’s comparative advantage in AME. The majority of C&W’s
strongest competitors in AME do not have this infrastructure, which includes five of the nine
technology developers signed up to The Proving Factory, the Automotive Council’s key R&D
intervention27. Nor can their investment pipeline really compare to that scheduled in C&W
which includes the recent announcement that work will shortly commence on a new £92
million automotive research facility, to be established at the University of Warwick.28
Structure of the AME sector within Coventry and Warwickshire
1.20
While some manufacturing activities are being undertaken in C&W, most AME activity is
centred on other parts of the value chain, notably R&D, product development and testing,
and services (e.g. sales, after-sales). In relation to inward investment, this is reflected in the
data released by UKTI for 2012-1329. The data shows a relatively even balance of
investment across the value chain, covering HQ, distribution, manufacturing, R&D, sales and
services. In 2012-13, the largest share of project successes were in R&D and services (35%
and 27% of project successes respectively). HQ and distribution activities had the lowest
number of project wins (4% each), while manufacturing accounted for 15%. This
investment profile essentially reflects the fact that JLR, the largest AME employer in the subregion, undertakes R&D, testing and HQ activities at its Coventry and Gaydon plants, but
manufacturing outside of the area in the West Midlands and North West. The job profiles of
those employed within the sector reflect these value chain functions. As detailed in the
Ecorys skills report, the largest proportion of jobs in the industry are taken up by managers
and senior officials, responsible for strategic decision making, day-to-day running and
customer facing activities, as well as highly skilled plant and machine operatives. A much
lower than average proportion of C&W’s workforce in AME is involved in elementary,
personal service and sales occupations30.
1.21
In terms of company size, several AME businesses are among C&W’s top 50 employers, but
small and medium-sized enterprises make up the majority of businesses in the sector, with
only 10.6% of the 113 AME surveyed in the Ecorys skills study having over 50 staff31.
Despite the large SME supplier base, however, evidence is inconclusive with regard to the
level of collaboration and networking. In the Ecorys study, the clustering of activity within
AME was cited as one of the key reasons why C&W is a good place to do business, but wider
suggestions in the industry are that SMEs are not well linked by physical proximity and
According to research by Ernst and Young in 2012, 18% of foreign investors named manufacturing as one of the top
three industries driving UK growth in the coming years. Staying ahead of the game, Ernst and Young, 2012.
26 HM Government: Driving Success – a strategy for growth and sustainability in the UK automotive sector, 2013.
27 The five in C&W are Productiv (based in London and at MIRA), MIRA (Nuneaton), MTC (Ansty), WMG (Coventry)
MAN. The four outside of C&W are Tata Steel, the University of Sheffield, Boeing and Shaeffler.
28 http://www2.warwick.ac.uk/newsandevents/pressreleases/16392_million_national/
29 Coventry and Warwickshire Inward Investment Report, A report in confidence from UKTI Investment Services Team to
Coventry and Warwickshire, July 2013.
30 Advanced Manufacturing and Engineering Skills Analysis for Coventry, Warwickshire, Hinckley and Bosworth, A Report
to Coventry and Warwickshire LEP, ECORYS, 2013. p. 26.
31 Ibid.
25
6
supply chains are underdeveloped generally32. Without a detailed supply chain map it is
difficult to make any firm conclusions about the level of collaboration and economic flows
within the sector, and it is recommended that a future piece of research is commissioned
around this issue.
1.22
Existing research also suggests a low level of start-up activity, despite a number of industryspecific initiatives, including support from the chamber subsector group, WMG’s SME team,
the International Institute for Product and Service Innovation (IIPSI) and MAN, which is one
of C&W’s Proving Factory technology centres and aims to build synergies among smaller
market ‘players’ around skills development and business opportunities. Examples of recent
start-ups do exist and enquiries are taken from start-ups by WCC. However data suggest
that over 50% of AME businesses in C&W have been established for at least 20 years33.
These low rates could reflect the naturally higher barriers to entry facing AME companies
relative to other SMEs34, but they also raise important questions about the ease with which
SMEs can establish and do business in C&W, and the impact that the historic dominance of a
small number of large companies has had on the entrepreneurial culture in the region. As
described in Chapter 4 below, insight into the constraints facing the AME sector is relatively
limited at the local level. Better understanding would help facilitate strategies to support
SME development.
Productivity performance of the AME sector
1.23
Data from Cambridge Econometrics’ Local Economy Forecasting Model suggest that
Coventry and Warwickshire’s AME sector is more productive (at £50k per job) than the
economy as a whole (£36k per job), and that productivity exceeds the UK average for the
AME sector (£48k per job). However, within Coventry and Warwickshire’s AME sector, the
modelled estimates suggest that some sub-sectors may be more productive than others:
productivity is well above the UK average in architectural and engineering services,
electronics, other transport equipment and other manufacturing repairs; productivity
matches the UK average in machinery; and it is below the UK in motor vehicles and electrical
equipment.
Table 1-1: Comparing productivity for the economy as a whole and the AME sector, 2012
Productivity Productivity – AME
AME sector
economy average sector (£k per job) productivity as %
(£k per job)
of UK AME average
Coventry and Warwickshire average
36
50
103%
North+ (North Warwickshire, Rugby
and Hinckley and Bosworth)
37
52
108%
Central (Coventry and Nuneaton and
Bedworth)
36
48
100%
South (Stratford-on-Avon and
Warwick)
36
50
103%
40
48
UK
Source: SQW analysis of data provided by Cambridge Econometrics
The region is often perceived as having “a supplier base, but not a supply chain”.
Ibid.
34 Start-up rates for AME companies are typically lower than other SMEs at the national level, due to the larger investment
in capital, technology, high-skills and other factors required for this sector.
32
33
7
Spatial distribution of AME activity in Coventry and Warwickshire
1.24
Within the UK, the automotive industry is clustered around a number of major vehicle
plants, based in the West Midlands, North West, North East and South Wales. This spatial
distribution is clear in the heat maps produced as part of the Witty Review, which are
provided in Annex 1. Conversely, the aerospace industry spans most of the UK, as does the
life science industry (although the latter has some regional specialisms in Yorkshire, the
Midlands and South East35). The clustering of the automotive industry around the West
Midlands raises an important question about whether wider collaboration outside of the
area should be considered as part of future growth plans. The maps provided in Annex 1
show a clear concentration of activity around the C&W, Northamptonshire, Oxfordshire and
Birmingham. This clustering would lend itself well to sector-specific coordination, as is
recommended in the Witty Review, but would require full buy-in from all interested LEPs.
1.25
In C&W, the spatial geography of AME activity closely reflects the area’s industrial legacy. In
contrast to the north (Coventry, North Warwickshire, Nuneaton and Bedworth), which has a
high presence of mining and low-medium value manufacturing, the southern parts grew
more significantly after World War II and are associated with more ‘innovative’ types of
manufacturing and knowledge-intensive services. Today, the main concentration of AME
activity is also close to major sites, and motorways and arterial roads (e.g. M46 and M6).
Some 90% of staff are estimated to live within 10 miles of the majority of AME sites,
indicating generally localised labour markets36.
1.26
Localised spatial concentrations can be seen throughout the sub-region. The presence of
manufacturing remains stronger in the north of the CWLEP area, where the economy is also
much more reliant on the public sector. Conversely, the economies of the south are more
private-sector based and knowledge intensive37. When BRES data are analysed, the strong
contribution that automotive manufacturing has on employment in the sub-region is clear
(see Table 1-2 below). In the central and south part of C&W, automotive manufacturing
accounts for 3.4% of employment in the central area and 2.4% in south C&W. With LQs of
6.7 and 4.7, the central and south parts also have a greater concentration than the England
average. In the south, the significance of architectural and engineering activities (including
testing and analysis) is evident, representing a 2.5% share of overall employment and a 2.5
LQ relative to England. Conversely, in the north, the dominance of more ‘traditional’
manufacturing is highlighted through the prominence that the manufacturing of fabricated
metal products, representing 2.4% of overall employment.
Table 1-2: Contribution AME sector to C&W – employment and location quotient
AME sector
Manufacture of
fabricated metal
products
North
Central
South
CWLEP
LQ
% share
of emp’t
LQ
% share
of emp’t
LQ
% share
of empl’t
LQ
% share
of empl’t
2.2
2.4%
1.8
2.0%
1.0
1.1%
1.6
1.7%
Sir Andrew Witty, 2012, Independent Review of Universities and Growth.
Advanced Manufacturing and Engineering Skills Analysis for Coventry, Warwickshire, Hinckley and Bosworth, A Report
to Coventry and Warwickshire LEP, ECORYS, 2013. p. 26. Two thirds of companies surveyed reported that 90% staff
within 10 miles.
37 Driving growth: Supporting business innovation in Coventry & Warwickshire, Centre for Cities Naomi Clayton & Dmitry
Sivaev. p. 17. Note though that the findings from BRES data appear rather different
35
36
8
AME sector
North
Central
South
CWLEP
Manufacture of
computer,
electronic and
optical products
2.0
0.9%
0.6
0.3%
0.7
0.3%
0.8
0.3%
Manufacture of
electrical
equipment
1.8
0.6%
1.1
0.4%
1.4
0.4%
1.5
0.5%
Manufacture of
machinery and
equipment
3.0
2.0%
1.9
1.3%
1.3
0.9%
1.8
1.2%
Manufacture of
motor vehicles,
trailers and semitrailers
1.8
0.9%
6.7
3.4%
4.7
2.4%
5.1
2.6%
Manufacture of
other transport
equipment
2.1
1.0%
1.2
0.6%
0.9
0.4%
1.1
0.5%
Architectural and
engineering
activities;
technical testing
and analysis
1.3
1.9%
0.8
1.2%
2.5
3.8%
1.5
2.3%
Scientific
research and
development
1.2
0.6%
0.2
0.1%
0.9
0.4%
0.5
0.2%
Other
professional,
scientific and
technical
activities
0.6
0.3%
0.4
0.2%
1.0
0.5%
0.6
0.3%
Source: BRES
1.27
This spatial differentiation can also be tracked across a range of socio-economic indicators,
including skills, enterprise and unemployment38. Without a strong understanding of the
innovation and growth plans of those AME companies present throughout the sub-region, it
is difficult to determine what the impact of this differentiation could be in the long term,
however the relatively high dependency in Coventry and surrounding areas on public sector
employment does risk impacting on long-term growth prospects.
Driving growth: Supporting business innovation in Coventry & Warwickshire, Centre for Cities Naomi Clayton & Dmitry
Sivaev. p. 17.
38
9
2. AME companies in Coventry and
Warwickshire
2.1
Some 18 AME businesses have over 500 employees in C&W. The majority of these are
involved in automotive operations, although among the larger employers are also a number
of notable energy and IT companies (e.g. GE Energy, National Grid, IBM). Table 2-1 below
provides a list of AME companies in C&W that employ over 500 staff, based on data compiled
by CWLEP in 2013. These data should be treated cautiously: employment estimates from
different sources can vary enormously. However, the data do serve the purpose of
highlighting at a ‘headline’ level which are the key employers in C&W. According to these
data, the largest employer is Jaguar Land Rover (5668 employees), followed by GE Power
Conversion, National Grid, IBM and Rolls Royce.
Table 2-1: Companies with over 500 staff in C&W
Company
Sector
Employees
Automotive
5,668
GE Energy Power Conversion
Energy
2,500
National Grid
Energy
2,500
IT / Communications
1500
Rolls Royce
Aerospace
1,160
Aston Martin Lagonda
Automotive
1,147
BMW Hams Hall Engine Plant
Automotive
800
Energy
700
AME
700
Delphi Lockheed Automotive
Automotive
700
Prodrive
Automotive
700
Energy
650
PSA Peugeot Citroen
Automotive
640
Meggiit Aircraft Braking Systems
Aerospace
600
Triumph Motorcycles Ltd (automotive)
Automotive
600
MIRA
Automotive
500
Ricardo UK
Automotive
500
Digital/telecom
372
Jaguar Land Rover
IBM
Alstom UK
Aga Rangemaster
E.ON
Telent plc
Source: CWLEP AME Database and Company Reports. Also
based on feedback from Ian Flynn (WCC)
2.2
Figure 2-1 below indicates the spatial distribution of these major sites, as well as key
information about the top employers. The map highlights two broad clusters of activity. The
first is around Coventry and Rugby, where aerospace and energy companies are heavily
concentrated. The second cluster is located in the south of C&W and appears to be more
related to the automotive industry. These are broad categorisations, but are useful when
10
interpreting the spatial make-up of the sector in the region. They are also important when
interpreting the area’s R&D infrastructure, as picked up in more detail in Chapter 3 below.
Further detail on the major AME sites is provided in Annex B.
Figure 2-1: Major AME sites in Coventry and Warwickshire
Source: SQW, based on data supplied by CWLEP
2.3
Across Coventry and Warwickshire, there are a total of 117 manufacturing foreign owned
firms and a further 44 firms are classed as “professional, scientific and technical”. It is
estimated that around 35% of the manufacturing foreign owned firms are in the AME sector
and 48% of the professional, scientific and technical foreign owned firms are in the AME
sector. Overall, AME firms account for 6% of all foreign owned firms in Coventry and
Warwickshire.
11
Key AME companies
Jaguar Land Rover
2.4
JLR is by far the most significant contributor to CWLEP’s economy in employment terms,
with approximately 5,668 staff. Until recently, JLR brands Jaguar and Land Rover were
separate, although from 1968 until 1984 they were part of the same group. Both companies
can trace their roots back to Coventry. Rover was a brand of bikes from the Starley & Sutton
company of 1878, with the Land Rover name appearing first in 1948, shortly after the
company relocated to Solihull. Jaguar was established in Coventry as Swallow Sidecars from
1926. JLR now operates out of two plants; Whitley (headquarters) and Gaydon (R&D and
testing facility). JLR’s manufacturing operations are run outside of C&W in Solihull, Castle
Bromwich and Halewood.
2.5
In 2008, JLR was sold to Indian-based Tata Steel, following financial difficulties within Ford,
which had taken over Jaguar and Land Rover companies in 1990 and 2000 respectively. The
two companies, together with Aston Martin and Volvo, formed Ford’s Premier Auto Group.
Aston Martin and Volvo were also sold on in 2008 to raise capital for restructuring; Aston
Martin to a consortium of investors, and Volvo to Geely.
2.6
Since the transfer of ownership to Tata Steel, JLR has experienced rapid growth, reportedly
due to changes in the management structure and significant investment in product
development. Globally, the company reported revenues of £15.8 billion in 2012/13, a rise of
17% from the previous financial year39, while over £2 billion in investment was committed
by the company during this time to product creation and infrastructure investment. Data on
JLR’s investment in C&W specifically are not available. However qualitative feedback
suggests considerable focus in the area on green and low-carbon technologies and recent
announcements suggest significant future job creation at the company’s Halewood plant.
Outside of C&W, recent investments have included the development of an advanced
manufacturing facility in Solihull (£370 million, announced in 2012), and an engine plant in
Wolverhampton, which is expected to open in late 2014 (£500 million investment).
2.7
An estimated 1,532 jobs were generated in C&W between 2008 and 2011, equivalent to an
increase of 32.8%40. Locally, the company has strong supply chain and R&D linkages, which
has had a significant influence on the spatial distribution of the wider AME sector more
generally. Under Tata ownership, JLR’s management structure has been simplified, and
managers make all of the decisions locally, rather than at the European or US level, which
happened under Ford. This has had a significant influence in strengthening JLR’s
relationships with suppliers41. The company’s relationships with Warwick Manufacturing
Group (WMG) and Tata European Technology Centre are also well-established. Key R&D
linkages exist between JLR, the University of Warwick (through the Warwick Manufacturing
Group) and Coventry University (through CEPAD). In July 2013, the company committed to
investing a further £1.4 million over the next five years to fund the leadership of the National
Automotive Innovation Centre (NAIC) in Coventry, a £92m initiative that will be based out of
the University of Warwick and is set to be started next year. It will be the largest research
facility of its kind outside of Germany, and is aimed at facilitating collaboration between
Jaguar Land Rover, Annual Report, 2012/13.
CWLEP Top 100 growth companies, 2012, TBR Observatory 2012 and 2013.
41 See Jewels in the Crown: How Tata of India Transformed Britain's Jaguar and Land Rover, Ray Hutton, 2013.
39
40
12
industry and research institutions for innovative technology development42. Outside of the
UK, JLR’s most significant investment plans include the recent establishment of a joint
venture with Cherry Automotive in China, a £1.15 billion investment that will include a new
R&D centre and engine production facility, and a large manufacturing site in Pune, India.
GE Power Conversion
2.8
GE Power Conversion specialises in energy infrastructure, developing technologies including
subsea power systems, high speed motors, permanent magnet generators and HVDC
systems. The company was formerly known as Converteam UK Ltd (established originally
out of General Electrical Company plc), and was bought by GE Energy in 2008. The
company’s UK base is located in Rugby. Outside of the UK, the company has divisions in the
US, Germany, France, and subsidiaries in India, Brazil and China.
2.9
At the Rugby Site, where approximately 2,500 staff are based, the company manufactures
and supplies positioning, vessel control, and power and propulsion systems in Europe. It
offers substations, generators, and power conversion equipment; compact induction
generators for tidal and wave power generation; and automation, control, and monitoring
systems. Its support services also include project management, feasibility studies, and
system calculations and analysis; and system integration, installation, service, and training43.
National Grid
2.10
National Grid’s UK headquarters are based in Warwick, where approximately 2000 staff are
located. NG is a network utility company, providing core services in transmission and
distribution of electricity and gas, metering services, liquefied national gas facilities and
property in the UK and electricity interconnectors in the UK and US. It has expanded in
recent years with other sites consolidated onto the site in Warwick from 2002. Outside of
Warwick, NG’s main employment sites are in Hinckley and Wokingham.
2.11
UK growth plans for the company are focused on upgrading the electricity and gas
transmission networks and replacing old gas mains with new MDPE pipe work. This will
increase spend and staff significantly, with an estimated 2800 staff expected to be employed
in Warwick44 in the coming years.
Rolls Royce
2.12
Rolls Royce’s Ansty plant covers approximately 200 acres and is occupied by Rolls-Royce
Aero Repair & Overhaul (AR&O), Rolls-Royce Power Engineering and various other
operational units engaged in the manufacture of new components. The most prominent on
site is the Gas Turbine Services AR&O facility, specialising in supporting a large fleet of gas
turbines for a range of customers. Marine gas turbines are also overhauled on site for the
Rolls-Royce Naval Marine business45.
2.13
The Ansty plant employs approximately 800 people, making the company the sixth largest
AME employer in the CWLEP area, although it was recently announced that nearly 400 jobs
http://www.coventrytelegraph.net/news/coventry-news/jaguar-invests-14m-fund-leadership-5262791
http://www.insideview.com/directory/converteam-uk-ltd
44 Employment in Hinckley is expected to increase from 1200 staff to 1500, and in Wokingham from 600 increase to 700.
45 http://www.rolls-royce.com/careers/where_in_the_world/uk/ansty.jsp
42
43
13
could be lost in future years, due to the potential transfer of strategic defence contracts46.
Rolls-Royce’s Energy Customer Business headquarters, which are based in Warwick,
employs 240.
2.14
Rolls-Royce has a significant local impact. Aside from direct employment, the company has a
well-established local supply chain and strong links to institutions including MTC. The
company has also invested heavily in skills and workforce development, particularly in the
area of apprenticeship training. This has included the development of an apprenticeship
academy, which has led to the recruitment of 18 additional apprentices so far in Coventry.
The involvement of national government in the Ansty plant discussions highlights the
importance that any reduction in operations could have on the local area.
Aston Martin
2.15
Aston Martin was founded in London in 1913 and first established in C&W in 2003, with the
opening of the Gaydon factory, which was the company’s first purpose-built factory. The
company is a sizeable employer in C&W, accounting for approximately 1,147 jobs and
producing approximately 4,000 vehicles/year from its Gaydon base. It continues to produce
five models at the site (the V8 Vantage, V12 Vantage, Vanquish, DB9 and DB9 Volante), all
targeted at high-end luxury vehicle markets, primarily in the UK and Middle East.
2.16
Following ownership by Ford between 1994 and 2007, the company was bought by a group
of investors from the UK (including the owner of Prodrive, David Richards) and Middle East
(Kuwait). There has since been a strong consolidation of assets. In early 2008, a partnership
with Magna Steyr was announced to outsource the manufacturing of over 2,000 cars
annually to Graz, Austria47. The company immediately pledged that operations would
continue in Gaydon, which recent investment decisions seem to support. Since the end of
2012, for example, the first four-door Aston Martin has been entirely manufactured out of
Gaydon.
2.17
Close linkages also continue to exist between the company and local R&D facilities, including
MIRA. In addition, despite a reduction in the company’s global workforce in 2010, recent
announcements indicate ambitious growth plans and investor confidence, including
continued expansion in China, and the announcement in July 2013 that Aston Martin would
collaborate with Mercedes-AMG to develop a new generation of bespoke V8 engines48.
Alstom UK
2.18
International engineering firm Alstom UK specialises in power, grid and transport
manufacturing, and is based in Rugby, as well as Manchester, Wolverhampton, London and
Bristol. Globally, the company has a presence in more than 100 countries worldwide. With
almost 100,000 employees, it turns over more than £15 billion a year and invests in excess
of £600million in research and development.
2.19
In Rugby, Alstom employs approximately 700 staff, focused on the design of steam turbines
for global clients. The company has shown strong growth since being established in the
http://www.bbc.co.uk/news/uk-england-coventry-warwickshire-21145802
http://www.nextcar.com.au/n.astonmartin.rapide.prod.08mar.html
48 http://www.reuters.com/article/2013/07/25/us-astonmartin-daimler-idUSBRE96O0BL20130725
46
47
14
region, reporting sales of over £1 billion in the 2012/13 financial year. More than a quarter
of these were destined for overseas markets, particularly the Middle East49. Recent contract
wins in the UK include EDF, London Underground, Scottish Hydro Electric Transmission,
Centrica and Crossrail. It is likely that this growth will have some impact in C&W. When
announcing its final year figures, the company also announced plans to create a further 600
jobs across the country, of which a reported 49 are intended to be taken up in Rugby. The
company’s decision in May 2013 to join the Manufacturing Technology Group also shows the
willingness to forge strong links in the area.
BMW
2.20
BMW’s C&W operations are based at Hams Hall and focused on manufacturing, with some
testing activities. The 85 ha Hams Hall site that was formerly home to one of the largest
electricity-generating power stations in Europe. Construction began on the BMW factory at
Hams Hall in 1998, and following an investment in the region of £400 million, volume
production commenced in 2001. Four-cylinder petrol engines are produced for both BMW
(BMW 1 Series, BMW 3 Series and BMW X1) and MINI50. Other BMW sites include Oxford,
Germany, UK, South Africa and Austria.
2.21
BMW is the eighth largest AME employer in the region, with approximately 800 staff, and
has shown a strong growth performance in the last 12 years. Between 2001 and 2012,
annual production increased from 70,000 to 433,689, with an increase of nearly 50,000
reported between 2011 and 2012 alone51. BMW’s investment in the region also seems
strong. Hams Hall was recently selected as site for production of engines for the BMW I8
Supercar in 2014.
http://www.bbc.co.uk/news/uk-england-coventry-warwickshire-21149729
http://www.bmw-plant-hamshall.com/facts-figures/plant-overview/factory-data.aspx
51 http://www.bmw-plant-hamshall.com/facts-figures/plant-overview/factory-data.aspx
49
50
15
3. Research infrastructure
Overview of research infrastructure
3.1
Sustained specialisation in AME, and particularly automotive manufacturing, has helped
accumulate a significant amount of specialist knowledge and expertise in C&W, where the
business base is seen as among the most innovative in the country. The ‘richness’ of this
infrastructure is reflected in the high patenting rate relative to neighbouring areas and the
England average (15.6 per 100k residents in CW area in 2009, compared to 13 for
England52), and in local R&D employment levels within the private sector, which are almost
double those in Birmingham and Solihull53. The sub-region also continues to attract a highly
skilled engineering and technical workforce, such that while manufacturing activity is
limited in the area, C&W remains a centre of expertise and knowledge generation for
automotive design and R&D. According to the UKTI’s 2012-13 report54, C&W had a larger
investment in R&D than other LEP areas such as Greater Birmingham and Solihull, Leeds
City Region and Sheffield: Some 35% of inward investment projects in 2012-13 were
focused on R&D, compared to 31%, 18% and 23% respectively in the other three areas.
Other LEP areas that secured a large proportion of R&D project successes were
Gloucestershire (50%), Greater Cambridge and Greater Peterborough (52%) and Leicester
and Leicestershire (50%).
3.2
Institutions linked to the automotive industry are the cornerstones of the R&D and
innovation systems in the region. Innovation activity is heavily concentrated among a small
number of large companies and institutions, with 94% of in-house R&D expenditure in the
CWLEP area accounted for by the top 5% largest R&D investors55. These include large
manufacturers who run their global R&D operations from the area (JLR and Aston Martin),
private sector R&D specialists (MIRA, Manufacturing Technology Centre (MTC) and the Tata
Motors European Technical Centre (TMETC)), and university-based institutions (Warwick
Manufacturing Group (WMG) at the University of Warwick, and Centre of Excellence for
Product and Automotive Design (CEPAD) and the Automotive Engineering Applied Research
Group (AAERG) at Coventry University). Recent announcements that construction will
commence in 2014 on the National Automotive Innovation Centre (NAIC), a £100 million
project to be based out of the University of Warwick, and the Low Carbon Manufacturing
Institute in Coventry (a joint University of Coventry-Unipart initiative) provide further
testament to the potential for future R&D growth in C&W.
3.3
Conversely, existing research also suggests that there may be a need for better collaboration
between the business sector and schools, colleges, training providers and universities,
particularly around skills provision56. In is unclear from the existing literature what level of
collaboration exists within the industry around skills, but general consensus suggests that
greater participation of employers into the design of courses, training and qualifications is
LEP Benchmarking report.
Ibid.
54 Coventry and Warwickshire Inward Investment Report, A report in confidence from UKTI Investment Services Team to
Coventry and Warwickshire, July 2013.
55 Ibid.
56 Advanced Manufacturing and Engineering Skills Analysis for Coventry, Warwickshire, Hinckley and Bosworth, A Report
to Coventry and Warwickshire LEP, ECORYS, 2013.
52
53
16
required. The Coalition Government’s current emphasis on employer-led skills provision
(e.g. Employer Ownership Pilot) provides a strong policy (and funding) context for this.
Figure 3-1: Innovation assets
Source: Warwickshire Council
17
Research ‘clusters’
3.4
Further information about specific research institutions is provided below, though a broad
understanding of the spatial characteristics of R&D activity in C&W is useful before digging
deeper into this. Broadly speaking, two clusters of R&D activity exist, generally aligned with
the two clusters detailed in the chapter above:

The first cluster is located in the north and central parts (between Coventry and
Rugby), and constitutes an estimated 44% of R&D expenditure and 42% of R&D
employment57. This appears to be where most aerospace activity is undertaken,
centred around MTC as the primary research facility.

The second cluster (around Stratford-upon-Avon) is primarily private-sector based
(including JLR at Gaydon) and focused on automobile manufacturing. This accounts
for 47% of R&D expenditure and 41% of R&D employment58. The main research
nodes for this cluster are WMG59 and Warwick Technology Park.
Figure 3-2: Major AME sites in Coventry and Warwickshire
Advanced Manufacturing and Engineering Skills Analysis for Coventry, Warwickshire, Hinckley and Bosworth, A Report
to Coventry and Warwickshire LEP, ECORYS, 2013.
58 Ibid.
59 For example, Lord Butterworth formally of WMG played a strategic role in securing Tata’s investment in JLR in 2008.
57
18
Source: SQW, based on data supplied by CWLEP
3.5
Figure 3-3 below provides a diagrammatic representation of these key clusters.
Figure 3-3: R&D clusters linked to C&W’s AME sector
Source: SQW
3.6
The establishment of these clusters reflects a number of factors, including geographical
linkages, research specialisms, and business connections. MTC has a relationship with
companies such as Rolls Royce and Alstom, whereas WMG and the Warwick Technology
Park have closer links with companies such as JLR and Tata. Unfortunately, understanding
of supply chain linkages beyond the ‘major players’ is limited, and relatively little is known
about the ‘soft wiring’ across the sector in C&W. A review of the data available for major
sites provides some insight on the relationship existing between large and medium sized
firms, but little is known about micro- and small-scale business. Given that these are likely
to be crucial to the overall impact of AME in the long-term, it is critical that research is
undertaken to explore this ‘soft wiring’ – including the interests, capacities and investment
plans featured among businesses of varying sizes across the supply chain.
Key research institutions
Private R&D activity
3.7
C&W is home to two of the seven centres in the UK that form the High Value Manufacturing
Catapult, established by government to provide a stimulus for British manufacturing. The
two have different specialisms and governance arrangements, but have been productive in
securing the area’s position at the forefront of AME R&D activity:

The Manufacturing Technology Centre (MTC) opened in 2011 following a £40
million publicly funded investment. It is a partnership between a number of major
manufacturers and three forward-thinking universities: Birmingham, Nottingham
and Loughborough as well as The Welding Institute (TWI) Ltd, the operating
19
division of The Welding Institute. The MTC’s mandate it to provide a competitive
environment to bridge the gap between university-based research and the
development of innovative manufacturing solutions, in line with the government’s
manufacturing strategy. Key specialisms include net shape manufacturing,
intelligent automation, electronics manufacturing, computerised engineering, and
metrology. MTC members include Airbus, HP, Nikon, London Underground,
Siemens, Gudel, Aerotech and Alstom, covering sectors including aerospace,
environmental technology, electronic engineering and IT

Warwick Manufacturing Group (WMG) is based out of the University of Warwick
and was founded in 1980, with the aim of reinvigorating manufacturing. Today,
WMG employs over 450 people working across five buildings on the Warwick
campus plus collaborative centres in six countries (India, China, Malaysia, Russia,
Singapore and Thailand). WMG now extends beyond traditional manufacturing,
automotive and aerospace sectors and encompasses areas including
pharmaceuticals, agriculture, mining, banking and telecommunications. The centre
remains closely affiliated with key automobile producers in the area however,
notably JLR and Tata. Other key partners include AstraZeneca, BAE and Network
Rail, though some of these organisations are based outside of C&W.
WMG has a number of smaller research centres at the University of Warwick,
including the International Institute for Product and Service Innovation (IIPSI).
Supported by the European Regional Development Fund, IIPSI is a dedicated facility
to support regional SMEs in accessing innovative products and services, notably
digital technology. It is expected that 200 jobs will either be created of safeguarded
through IIPSI’s support to SMEs, which will run until June 2015. WMG specialists
are closely involved in the delivery of support through IIPSI.
The Digital Lab is another WMG research group located at the University of
Warwick. This multi–disciplinary research centre was created to combine the
expertise of WMG together with sciences including psychology, medicine, computer
science and mathematics. It now provides expertise across three broad sectors –
digital manufacturing, healthcare sciences, and services – focused specifically on
integrated services including cybersecurity, digital innovation, experiential
engineering and e-Business.
Finally, WMG’s Energy Innovation Centre consists of a Vehicle Energy Facility
(VEF) and an Energy Storage and R&D Centre. The former provides companies with
the opportunity to test hybrid powertrain designs; the latter is a new £13m facility is
a climate-controlled facility, which recently opened to enable electrochemists to
create full-size prototype battery cells using innovative chemistries, without having
to rely on battery manufacturers to make the larger cells. The facility is the first of
its kind and is expected to greatly improve performance, battery life and safety in
WMG’s comprehensive battery testing facilities”.
3.8
MIRA, formerly the government-funded Motor Industry Research Associate, is a private
company focused on leading innovation and research in advanced vehicle and systems
technology. The company was founded in 1946 and aims to ‘bridge the gap’ between
emerging technology providers, manufacturers and suppliers in a number of sectors,
20
including automotive, transport, defence, environmental and low-carbon technologies. It
has shown significant growth since being established, and in 2012/13, reported a turnover
of £43.5 million, an increase of 4% on the previous year60.
3.9
Behind this continued growth are initiatives such as the MIRA Technology Park (MTP), a
87.5 hectare site which was recently created by MIRA to provide bespoke R&D facilities for
both small and large employers. MTP provides clients with a flexible platform to create
research and development facilities, with a mix of workshop, laboratory and office
accommodation. The size, configuration and appearance of these buildings will be designed
in subject to client specifications; the condition being that only companies that do business
with MIRA are eligible to locate on the site. Considerable interest and investment has
already been registered at the site, which is home to leading companies including Pirelli,
Bosch, Triumph, Continental, JLR and Lockheed Martin UK. Many of these companies also
have bases at WMG or MTC, and it would be interesting to identify whether any
transfer/movement has occurred since the MIRA Technology Park was established.
3.10
Tata Motors European Technical Centre (TMETC), also located at the University of
Warwick, was set up in the UK in 2005 as a full subsidiary of Tata Motors. TMETC is engaged
in design engineering and the development of products for the automotive industry, and has
considerable links with European equipment manufacturers, first-tier suppliers and
engineering consultancies. TMETC works in synergy with the Tata Motors' Engineering
Research Centre at Pune
3.11
Looking ahead, the National Automotive Innovation Centre (NAIC) will be a £92 million
facility that will be based out of the University of Warwick. Construction on NAIC is set to
start next year. When established, it will be largest research facility of its kind outside of
Germany, and is aimed at facilitating collaboration between industry and research
institutions for innovative technology development61. Funding for the initiative will come
primarily from government through the UK Research Partnership Investment Fund
(UKRPIF), supplemented by funding from private businesses, notably JLR and TMETC.
University-based R&D
3.12
Broadly speaking, research specialisms at Warwick and Coventry Universities align closely
with sectoral specialisms in C&W. The University of Warwick provides leading expertise in
business/management, economics, engineering, maths, and undertakes a high number of
research contracts, while Coventry University is internationally renowned for its specialist
expertise in materials, automotives/aerospace engineering, and electronics. Generally
speaking, the University of Warwick is seen to be more strongly research oriented, providing
innovation and research services through WMG (and associated research centres), as well as
the Warwick Science Park and Warwick Technology Park.
3.13
In contrast, Coventry is seen as more business focused62. The university hosts a number of
leading AME research institutions, including the Centre of Excellence for Product and
Automotive Design (CEPAD) and the Automotive Engineering Applied Research Group
http://www.mira.co.uk/about-mira/annual-report---accounts
http://www.coventrytelegraph.net/news/coventry-news/jaguar-invests-14m-fund-leadership-5262791
62 Driving growth: Supporting business innovation in Coventry & Warwickshire, Centre for Cities Naomi Clayton & Dmitry
Sivaev. p. 17.
60
61
21
(AAERG). Earlier in 2013, the University also announced a new partnership with Unipart
Group to develop the Manufacturing Institute, which will focus on research and skills
training within the low carbon manufacturing sector. The initiative, which has been
awarded a £50 million grant through the national government’s Catalyst Fund, is expected to
create 600 jobs and support 5,000 new or upskilled engineers by 2015. Unipart’s
manufacturing site in Coventry will form the base for the institute, where new
undergraduate, postgraduate and low carbon R&D programmes will create a ‘faculty on the
factory floor’. Coventry University’s recently-opened Engineering and Computing Building is
also due to provide a home to many of the teaching and research activities of the new
institute. Data provided by the university reveals also that it is directly engaged with
industry partners delivering 17 Knowledge Transfer Partnership Projects (KTPs) and 35
Knowledge Exchange and Enterprise Network (KEEN) projects; 25 of which are with firms in
the AME sector. This includes projects with JLR, Unipart, Penso, Alphateq, RBT and
Sykamore.
University spin-off activity
3.14
Research on the level of spin-off activity is limited in the C&W area. Research by SQW
undertaken in 2009 suggested reasonably high levels of spin-off activity from C&W’s
universities, and relatively high levels of staff resources at the universities committed to the
purpose of commercial activities. At Coventry University, 200 full time equivalents were
reported by SQW to be employed to engage with commercial partners in 200963. HEBCI data
for Coventry University provides some insight into the level of commercial activities64. In
2011/12, the university reported 9,800 consultancy contracts with SMEs worth £1.4m in
addition to extensive CPD activity (as a benchmark in 2010/11 the number of contracts was
9490 and CU was ranked second of all universities in the UK). Contract research service
engagements were primarily with non-commercial organisations (69%). In addition, 13
newly limited spin-out companies were created between 2000 and 2012, predominantly
thought to be in the high technology and creative sectors (approximately 50% are thought to
be in AME). As a full sectoral breakdown is not available, care should be taken in
interpreting this data. It is also not clear where these spin-out businesses are located, and
whether they stayed within the local area.
3.15
Besides local initiatives, a number of funds specifically exist at the national level to support
spin-off activity in this sector (e.g. Mercia Fund). Again however, it is unclear what the
uptake
and
outcomes
of
these
funding
sources
have
been.
63
64
Regenerating the West Midlands Region: A Study to Consider High Technology Corridors/Clusters, SQW, 2009.
Higher Education Business and Community Interaction, 2011-12.
22
4. AME sector: constraints to growth in
Coventry and Warwickshire
4.1
Despite strong evidence to suggest that AME companies are entering into a greater number
of new products and services, and in the case of larger companies at least, increasing their
workforce, a number of challenges facing AME businesses in C&W have been noted in this
report, particularly with regards to small and medium-sized businesses. These are not
specific to C&W alone. A study of advanced manufacturing conducted in the Leeds City
Region in late 201265 identified a number of barriers to business growth, including
constraints associated with the current economic climate, weak market demand, lack of
bank lending and cash flow problems66. Nevertheless, they must be addressed to ensure the
long term sustainability and competitiveness of the sector.
4.2
In C&W, understanding about constraints to growth within the AME sector is relatively
limited. The Centre for Cities67 report produced earlier in 2013 provides a broad overview
of constraints to growth. The report cited a number of barriers, including access to finance,
skills and specialist labour, business support, engagement in open innovation, which are
discussed in further details below.
Workforce and skills
4.3
Skills shortages are a common constraint faced within the AME sector across the UK, due to
the highly specialist nature of the skills involved. Existing research highlights significant
demand for new skills within the industry, driven by developments in technology and
changing market demands. In C&W, over 50% of companies that participated in the survey
conducted as part of the Centre for Cities research reported difficulties in recruiting skilled
tradespeople and technicians, with almost 40% reporting that they were struggling to hire
professional engineers68.
4.4
Among the skills commonly cited as in shortage are: skills in leadership and management,
particularly in relation to export markets; promotional activity; IT usage; product design and
development; software programming and operational systems programmers69. More
technical skills gaps have also identified within electrical, structural, mechanical and
manufacturing disciplines with particular requirements in metrology and robotics.
Amongst companies further down supply chains, requirements for Computer Aided Design
(CAD) technicians and multi-skilled machinists were identified, with the latter being a
significant issue for many SMEs. Echoing the work conducted in Leeds, the stakeholders
placed significant importance on recruiting new graduates or industry entrants with a
strong foundation in engineering and technical competence.
Advanced Manufacturing in Leeds City Region. Final Report, 2012. Yorkshire Cities.
Lesser factors identified in the study included unsuitable premises, red tape and regulations, and high business rates,
although the companies surveyed added that such issues would not call for any interventions beyond a firm-specific level.
6767 Driving growth: Supporting business innovation in Coventry & Warwickshire, Centre for Cities Naomi Clayton &
Dmitry Sivaev. p. 17.
6868 Ibid.
69 Advanced Manufacturing and Engineering Skills Analysis for Coventry, Warwickshire, Hinckley and Bosworth, A Report
to Coventry and Warwickshire LEP, ECORYS, 2013. p. 26.
65
66
23
4.5
Lack of experience is the most often-cited reason for skills deficiencies, which is
unsurprising given that managerial and supervisory skills, and sector-specific skills are
those often most desired within the sector. Many of these skills are learnt ‘on the job’ and
indeed existing research indicates a relatively high degree of existing private sector
involvement in skills development in C&W. Some 85% of firms surveyed in the Ecorys
analysis had undertaken training in the last 12 months. On the other hand, evidence
indicates mixed experiences of apprenticeships, low graduate retention, and a relatively low
degree of cross-sector collaboration around skills development within the area.
4.6
A number of organisations in C&W are providing skills and vocational training, including
Coventry University, which is providing vocational-based education to support the needs
and the MIRA academy, which is training engineers and technicians. Moreover, a number of
university technical colleges are in establishment, including the WMG Academy for Young
Engineers at the University of Warwick, which is due to provide vocational training for 1419 year olds from September 2014. However, a more thorough understanding of skills
needs is probably required before a coherent and sustainable approach to skills
development is found. It is unclear from previous research, for example, how the increased
demand for skills such as green and low-carbon technology, smart meters and fuel efficiency,
is being experienced by AME businesses in C&W. The skills needs of sectors such as medical
technologies are also likely to quite different to those for automotive engineering, and at
present these differences are poorly understood.
Infrastructure
4.7
Detailed information on the infrastructure constraints that inhibit AME growth in C&W is
limited at present, although information can be pulled from a number of sources on the
matter.

Land and property – previous research undertaken by SQW on the High
Technology Corridor in Coventry, Solihull and Warwickshire indicated a lack of
readily available commercial property suited to the needs of hi-tech/knowledge
based firms. This was also confirmed in the skills analysis undertaken by Ecorys
earlier this year, which identified ‘dilapidation’ in certain locations as one of the key
reasons why businesses would judge the CWLEP area a difficult place to do business.
A review of major sites – completed in August 2013 - indicates that most are of
medium to high quality and it also provides information on rental levels (see Annex
B). In outline:

Higher quality sites, which feature modern buildings, good road
maintenance, no derelict sites, and maintenance of vacant plots include
Tachborook & Spa Park, Budbook Industrial Estate, Warwick Technology
Park, and Whiteley, and are unsurprisingly home to larger AME companies.
Average to lower quality sites include Bayton Road Industrial Estate,
Foleshill and Coleshill Industrial Estate, and are home to smaller and
medium-sized companies. Lower quality sites are typically older (dating
from the 1960-80s) and have poorer road conditions, unmaintained vacant
24
plots, derelict buildings and inadequate power supplies70, although it is
worth noting that the higher quality sites also have issues. Traffic
congestion, lack of public transport, parking and poor access to basic
amenities are constraints common to most AME sites in C&W.


Data on rental levels across the different sites is inconclusive, and so it is not
possible to assess how rental levels vary according to quality, location and
other factors. Annual rental levels for warehousing are approximately £4550/m2 , and for business use (B1 classification) approximately £140160/m2 (although the range is between £64-226/m2). The level of
occupancy is typically 80-90%, even for average quality sites, which reflects
the high level of local demand. As noted above however, there are signs that
the lack of commercial property is acting as a strong disincentive for inward
investment. For example, Automotive Insulations of Rugby struggled to find
local premises with enough power capacity, which encouraged them to open
a second site abroad, in Sweden.
Digital connectivity – data are not available on how well connected C&W’s AME
sites digitally, although feedback from industry suggests that digital connectivity is a
problem facing businesses and influencing investment decisions. For example,
Somers Road in Rugby is known to have poor digital connectivity.
Business support
4.8
Evidence from the skills analysis undertaken earlier this year by Ecorys71, suggested that the
CWLEP area is a seen a relatively good place to do business. 27.4% of the total 113 survey
respondents stated that the business environment was very good, and 38.9% suggested is it
a good place to do business. Among the reasons stated for why the area is a good place to do
business was a strong local business climate (characterised by clustering of activity,
particularly in relation to automotive and aerospace industries), good customer base and
strong R&D infrastructure.
4.9
In the last part of the Ecorys survey, companies were asked to consider whether they faced
any barriers to doing business beyond skills. Among SMEs, management and resource
deficiencies, including lack of access to finance and cash flow, was a common response.
15.2% of respondents cited barriers with cash-flow as an issues, and 10.9% lack of capital
investment. Access to finance is seen as a key constraint to AME growth among SMEs at the
national level. Identified in the recent automotive strategy as a key priority area for action,
the Automotive Council and major bank have recently been collaborating to produce a
framework agreement on an approach to provide tooling finance72. Interestingly,
competition was also identified in the Ecorys survey as a significant barrier, specifically the
‘poaching’ of staff from SMEs to large corporations in the supply chain73.
According to the Centre for Cities report, there are very few manufacturing premises with spare power grid capacity
Advanced Manufacturing and Engineering Skills Analysis for Coventry, Warwickshire, Hinckley and Bosworth, A Report
to Coventry and Warwickshire LEP, ECORYS, 2013. p. 26.
72 Driving success – a strategy for growth and sustainability in the UK automotive sector, Department for Business,
Innovation and Skills and the Automotive Council UK, July 2013. P.49.
73 Advanced Manufacturing and Engineering Skills Analysis for Coventry, Warwickshire, Hinckley and Bosworth, A Report
to Coventry and Warwickshire LEP, ECORYS, 2013. p. 26.
Ibid. p. 40
70
71
25
4.10
Evidence on that challenges that AME businesses, and particularly SMEs face in terms of
international trade and export development, and access to business coaching and mentoring
is also limited. A number of research centres are providing business support to SMEs (e.g.
IPSII), although it is unclear whether this support includes hands-on business coaching and
mentoring.
26
5. Projections for the AME sector – and the
impact of an alternative growth scenario
Economic projections for the AME sector
5.1
Below, we present an analysis of projections for the AME sector74 provided by Cambridge
Econometrics (CE) through its Local Economy Forecasting Model (LEFM)75. This includes
baseline “business as usual” projections for the AME sector, and the results of a growth
scenario to test the impact of a 20% uplift in GVA from the AME sector and the implications
for the wider economy.
5.2
For further details on the LEFM Model and a more detailed analysis of the projections for
Coventry and Warwickshire, please turn to SQW’s “Coventry and Warwickshire Economic
Review – Strand 1: Employment and GVA projections” report. Note however that these are
modelled data and that their robustness at a district level is limited: there may be any
number of “local” reasons as to why projected outcomes may not, in practice, materialise.
Hence they should be regarded as one hypothesis relating to the sector’s future within
Coventry and Warwickshire, not as a definitive forecast.
Baseline projections for the AME sector
Gross Value Added (GVA)
5.3
In 2012, Coventry and Warwickshire’s AME sector generated £1.67bn in GVA (in constant
prices, 2009), which represented 10% of the total GVA (down from 13% of total GVA in
2000). Based on CE’s baseline projection, the AME sector is expected to generate around
£2.2bn in GVA by 2025, which will account for 10% of the area’s total GVA.
5.4
In terms of growth in GVA from the AME sector, this declined in real terms by 0.5% pa
between 2000 and 2012 compared to growth of 0.9% pa in the UK. However, the picture
varied considerably at the sub-LEP level – the north+76 and central areas saw a fall in GVA
generated by the AME sector whereas the baseline projections suggest that the south77 saw
substantial growth. Looking forward to 2025, GVA generated by the AME sector across
Coventry and Warwickshire is projected to increase by 2.2% pa, a slightly faster growth rate
than the UK average. All sub-areas are projected to observe growth in AME GVA, but
performance is diverging: the north+ will continue to grow more slowly than the UK; the
This has been defined as the following sectors in CE’s dataset: 12 Electronics; 13 Electrical equipment; 14 Machinery
etc; 15 Motor vehicles etc; 16 Other transport equipment; 17 Other manufacturing & repair; 36 Architectural and
engineering services
75 LEFM has been developed by Cambridge Econometrics in collaboration with the Institute for Employment Research
(IER) at the University of Warwick. The baseline LEFM projections are based on historical growth in the local area
relative to the region or UK (depending on which area it has the strongest relationship with), on an industry-by-industry
basis. Thus, if an industry in the local area outperformed the industry in the region (or UK) as a whole in the past, then it
will be assumed to do so in the future. Similarly, if it underperformed the region (or UK) in the past then it will be
assumed to underperform the region (or UK) in the future. The forecasts for the region and UK come from CE's Regional
Multi-sectoral Dynamic Model (MDM) of the UK economy. The projections for Coventry and Warwickshire reported in
this paper are consistent with the forecasts for the region and UK published by CE in May 2013. The GVA and
productivity data are in 2009 constant prices.
76 Defined as North Warwickshire, Rugby and Hinckley and Bosworth districts
77 Defined as Stratford-on-Avon and Warwick districts
74
27
south will grow more quickly than the UK; and growth in the central area78 will match the
UK average.
Figure 5-1: GVA in AME sector growth (Indexed to 2000)
Source: SQW analysis of CE projections
Employment
5.5
According to CE data, the AME sector accounted for 7% of employment across Coventry and
Warwickshire in 2012 (34,000 jobs79) compared to 10% of GVA. Over time, the proportion
of jobs in the sector has declined, from 14% in 2000 to 7% in 2012. It is projected to
continue to decline but much more slowly – to 6% in 2025.
5.6
Between 2000 and 2012, CE’s data suggest that employment in the AME sector fell by 4.6%
pa, much more quickly than the UK average for this sector (-2.1% pa). All of the sub-areas
saw a fall in employment – in the north+ and central areas, the decline was greater than the
UK average, but the pace of decline was slower in the south. In future, employment in the
AME sector is projected to fall at -0.2% pa, the same rate as the UK. The north+ and central
areas are expected to see a decline in AME employment, but levels in the south are projected
to remain static.
Growth prospects for AME sub-sectors
5.7
In the diagram below we have categorised Coventry and Warwickshire’s AME sub-sectors
according to their projected performance:

(a) expanders: sectors with projected growth in GVA and employment (2012-2025)

(b) adjusters: projected growth in GVA and decline in employment (2012-2025)

(c) shrinkers: sectors with projected decline in GVA and employment (2012-2025).
78
79
Defined as Coventry and Nuneaton and Bedworth districts
This compares to an estimate of 38,480 jobs in the BRES data (three year average, 2009-11), reported above.
28
5.8
The size of the bubble represents the sub-sector’s GVA contribution in 2012.
5.9
In summary, the “expanders” are expected to be architecture and engineering services (a
sector which accounted for a large share of AME GVA in 2012, as illustrated by the large
bubble), electrical equipment and other manufacturing and repairs. Motor vehicles,
machinery and electronics are “adjusters”, so GVA is projected to increase but employment
will fall. And finally, other transport equipment is classed as a “shrinker”, where both
employment and GVA are projected to decline.
Figure 5-2: Expanders, shrinkers and adjusters (2012-2025) in the AME sub-sectors across
Coventry and Warwickshire
Source: SQW analysis of CE projections. Notes: size of bubble indicates GVA in 2012
Growth scenario for the AME sector
5.10
Alongside the baseline projection, CE has also modelled the impact of a 20% increase in GVA
in the AME sector on the Coventry and Warwickshire economy as a whole.
5.11
As shown in Error! Reference source not found., according to CE’s model, a 20% uplift in
GVA in the AME sector translates into an additional £459m generated by the AME
sector alone each year. Due to the multiplier effects of this uplift on other sectors, the
additional impact on Coventry and Warwickshire’s economy as a whole would be an
additional £653m pa – the economy would be 3% bigger in 2025 than under the “business
as usual” baseline projection. The analysis suggests that under the growth scenario, GVA
generated in non-AME sectors would increase by £194m pa, and the sectors benefiting most
– in absolute terms – from the uplift in AME would be finance and insurance (an uplift of
£27m in GVA pa), business support services and wholesale trade (both up £20m pa), IT
services (up £18m pa). The warehousing and postal, education and construction sectors
also benefit to a lesser extent.
29
Table 5-1: GVA growth across Coventry and Warwickshire and the sub-areas - baseline
projections and growth scenario
2012 GVA £m
2025 GVA Baseline
projection £m
2025 GVA Growth
scenario £m
GVA difference £m
CWLEP area
1,670
2,220
2,679
+459
North+
609
745
907
+162
Central
740
969
1,163
+194
South
621
849
1,023
+174
CWLEP area
16,508
21,219
21,872
+653 (459 due to AME, 194 due
to multipliers)
North+
5,214
6,594
6,819
+225 (162 due to AME, 63 due to
multipliers)
Central
7,304
9,164
9,439
+276 (194 due to AME, 82 due to
multipliers)
South
5,760
7,574
7,819
+244 (174 due to AME, 71 due to
multipliers)
AME sector only
Whole economy
Source: SQW analysis of CE data
5.12
In terms of the consequences of this growth scenario for employment, CE’s modelling
suggests that employment in the AME sector will increase by around 7,000 jobs by
2025 across Coventry and Warwickshire. Due to the multiplier effects of this uplift on
other sectors, the additional impact on employment across the economy as a whole
would be around 12,000 jobs, 2% higher in 2025 than under the “business as usual”
baseline projection. Therefore, the growth scenario would generate around 5,000 additional
jobs in non-AME sectors due to the multiplier effect, particularly in business support
services (c.800 of these jobs) and wholesale trade (600 jobs).
Table 5-2: Employment growth in CWLEP and the sub-areas - baseline projections and growth
scenario
2012
Employment
000s
2025
Employment
000s - Baseline
projection
2025
Employment
000s - Growth
scenario
Employment difference 000s
CWLEP area
34
33
40
+7
North+
12
11
14
+2
Central
15
15
17
+3
South
12
12
15
+3
CWLEP area
462
511
523
+12 (7 due to AME, 5 due to
multipliers)
North+
143
159
163
+4 (2 due to AME, 2 due to
multipliers)
Central
204
221
226
+5 (3 due to AME, 2 due to
multipliers)
South
161
180
185
+5 (3 due to AME, 2 due to
AME sector only
Whole economy
30
2012
Employment
000s
2025
Employment
000s - Baseline
projection
2025
Employment
000s - Growth
scenario
Employment difference 000s
multipliers)
Source: SQW analysis of CE data
Conclusions
5.13
The projections presented above should be treated with caution. They are projections – not
a calibrated forecast. They have been produced through a model based on a “business as
usual”, policy-on context, and there are many reasons why the outcomes in Coventry and
Warwickshire might be different from the modelled projections.
5.14
The projections from LEFM do, nonetheless, provide a useful perspective on the potential
growth trajectory in Coventry and Warwickshire if nothing changes. In relation to the AME
sector, the projections suggest that the sector is expected to see “jobless growth” in future.
However within this, there are again some important intra-area contrasts. The south
appears really quite buoyant with growth projected particularly in the service-related
elements of the AME sector. The multipliers linked to this are significant in the south.
Growth prospects – in absolute and relative terms – are weaker further north. Hence both
spatial and sectoral restructuring appear – on the face of it – to be underway. These issues
raise important questions for the CWLEP in thinking through what might need to change in
order to achieve anything like the magnitude of change modelled through the growth
scenario – of 7,000 AME jobs in order to generate an additional £459m in GVA from that
sector – and, indeed, to what extent this is achievable. If the economy can move in this
direction, given the way in which the AME sector is integrated with the wider economy,
there is substantial scope for knock-on benefits in sectors such as finance and insurance,
business support services, wholesale trade and IT services.
31
6. Conclusions
6.1
The alternative growth scenario presented in Section 5 considers the impact of an uplift in
the performance of Coventry and Warwickshire’s AME sector. It does not assess the route(s)
to achieving it, or whether, indeed, an uplift of this scale is even plausible. These are
questions that CWLEP and wider partners ought to reflect on, for they are absolutely core to
the rationale for the area’s City Deal proposals.
6.2
In terms of route(s) to impact, the City Deal proposals are wide-ranging. They focus,
variously, on business support, skills and training, inward investment and sites and
premises, all with a particular focus on the AME sector. The evidence assembled in this
report appears to provide strong support for the emphasis on skills and training (although
we also need to be careful and acknowledge a degree of circularity: the issues relating to
skills and training for the AME sector have been researched and hence better evidence exists
than for other themes). The shortage of skills linked to STEM subjects is a national concern
and if – through its City Deal – Coventry and Warwickshire (and Hinckley and Bosworth) can
start to define some kind of local solution, the wider impacts could be substantial: “sorting
out” the supply of suitably skilled labour could, for example, be a major fillip to further
inward investment in the sector and this, in turn, could fuel a series of virtuous circles of
benefit to the local area and also the UK as a whole.
6.3
The evidence assembled in this report confirms the view that Coventry and Warwickshire
has (probably unrivalled) strengths in R&D related to AME – within leading firms, and across
private sector research bodies as well as the university sector. What is much less clear is the
extent to which there is a genuine interface and dialogue between the research community
and the wider business base (particularly at lower levels in the supply chain); this is an area
that needs to be researched further. On the face of it, strong “soft” networks ought to be the
route to greater entrepreneurship, investment (including in early stage businesses) and
overall competitiveness: they ought to form a mechanism through which knowledge is
generated, transmitted and used locally, and this in turn ought to secure competitive
advantage. Certainly, Coventry and Warwickshire has the “ingredients” for an AME-based
cluster of this nature, but the extent to which these ingredients currently “gel” in a manner
that is optimal ought to be investigated further.
6.4
If – through the City Deal and other channels (including national ones) – these issues can be
addressed, then some level of performance uplift ought to be perfectly possible. As modelled
in Section 5, this in turn ought to generate wider impacts of benefit to the economy of
Coventry and Warwickshire as a whole.
6.5
However there is a further dimension that ought to be given some careful consideration.
The analyses that have informed this report suggest some important variations within the
AME sector and, further, that these have a distinctive spatial footprint. Overall, the
prospects for the service-related elements of AME appear stronger than those for the more
traditional manufacturing-based elements. The former are concentrated in the south of the
LEP area whereas the latter tend to be based in the central and northern areas. The risk,
therefore, is that future growth is disproportionately concentrated in the south while the
northern area may be “left behind”.
32
6.6
For CWLEP, this risk is not a reason not to focus on AME – it is the area’s strongest economic
asset and also a national priority. However it does mean that in parallel, a positive economic
development plan may be needed, focusing particularly on the long term economic
prospects and well-being of the central and northern areas.
33
Annex A: Spatial distribution of the automotive
sector in the UK
Source: Witty Review
34
Source:
Witty
Review
35
Annex B: Summary of major AME sites
Name of site
Location (postcode,
district, and in
relation to strategic
transport
infrastructure)
CV34 6RL, Warwick,
4 mins drive to Jnc
13/14 M40
Current occupants (broad sector/number of
employees.)
Importance
of site
Size of site
(ha)
Premises
(sq m)
Use Class(es)
Level of
occupancy
Age and quality of site
“Issues” identified with regar
to the site
Calor Gas Ltd (energy, 300)
Engel Uk Ltd (advanced plastics, 5)
Grupo Antolin (automotive, -)
Intier Automotive Interiors Ltd (manufacturing,
5)
Inter/national
names –
significant
presence. Site
attractive to
national
companies
100 ha
B1, B2, B8 +
quasi/retail
80-90%
occupancy
Traffic congestion,
Parking,
Easy immediate site access bu
wider issues on link to strategi
highway network,
Close to limited range of basic
services
Warwick
Gates
CV34 6RR, Warwick,
immediately south
of Tachbrook
 Innovate 2 Make Ltd (adv man, 5)
Site attractive
to national
companies
B1
Budbook
Industrial
Estate
CV34 5XH, Warwick,
very good access to
A46->M40
 Batchflow engineering (machining, 5)
 Contechs (adv man, 10)
 Delphi Lockhead Automotive (automotive,
100)
 Motion drives & controls Ltd (manufacture of
bearing gears, 5)
 Pinnacle Design (design, engineer &
manufacture of automotives 5)
 Railton Products Ltd ( aeronautical engineers
5)
 Rhead Group ( adv man, 5)
Companies
exclusively
Warks based
13.5 ha
(although
9.6ha is
allocated for
residential
development)
5.7 ha
High quality – road maintenance
adequate with minor defects; no
derelict sites but vacant plots need
maintenance.
Age: 1980-2006 modern buildings and
car parking. Building quality
satisfactory – normal level of repair
required in medium term
Established commercial area with
rural or residential area nearby, clear
plot no obstructions, on greenfield
land
High quality - road maintenance
adequate with minor defects, no
derelict sites, vacant plots need
maintenance,
No public transport: not near
station or bus route or cycle
route,
Close to 1 or 2 services (poor
amenities)
Tachbrook &
Spa Park
B1, B2
80-90%
occupancy
Close to a limited range and
quantity of basic services
Age: 1980-2006. Buildings
appropriate quality, normal level of
repair needed in medium term
36
Name of site
Location (postcode,
district, and in
relation to strategic
transport
infrastructure)
CV34 6UW,
Warwick, Jnc 15
M40/A46
interchange
Current occupants (broad sector/number of
employees.)
Importance
of site
Size of site
(ha)
Premises
(sq m)
Use Class(es)
Level of
occupancy
Age and quality of site
“Issues” identified with regar
to the site
 Bytronic automation Ltd (measuring
instruments & appliances, 5)
 Callisto Integration Europe Ltd (adv eng, 2)
 Emicon Systems (components & automotive,
2)
 Hofer Powertrain (engineering, 2)
 Randle Engineering Solutions (design
engineers, 5)
Inter/national
names;
attractive to
national
companies
25 ha
B1 (largest
and highest
profile out of
town)
80-90%
occupancy
Parking
Wedgenock
Industrial
Estate
CV34 9AE, Warwick,
near Jnc 15 M40
and A46
 Aut-Tech (adv eng,-)
 Creative synergies consulting Ltd
(engineering,-)
 Hyperbaric Consult Ltd (underwater
engineering,-)
 Tobin Consulting Engineers Ltd (engineering
related scientific & tech consulting act, 5)
Companies
drawn from
local area,
attractive to
sub-regional
companies
10.9 ha
B1a, B2
60-80%
occupancy
Gaydon
CV35 0DB, Stratford,
good access to Jnc
12 M40
CV47 0FB, Stratford,
access to A423 with
reasonable access
to M40
CV37 9NF, Stratford,
easy access to A46
 Aston Martin Lagonda (automotive, 1147)
 Jaguar Land Rover (automotive, 5668)

 Drive Systems Design (engineering
consultancy, 5)
Good quality - Well maintained roads
– no issues, building high quality
external appearance, no derelict
sites; vacant plots maintained.
Good levels of town centre amenities
and good access via roads and public
transport
Age: 1980-2006. Building quality good
– lower than normal level of
maintenance requirement in medium
run
Below average quality - extensive
repair to roads needed, vacant plots
appear abandoned,
Age: 1960-1980. Building quality fair –
capable of getting satisfactory
condition but with notable
maintenance/technical upgrading in
medium run
Good quality of stock and
environment. Good strategic access,
adequate internal road access
good
Warwick
Technology
Park
South Park
Timothy’s
Bridge Road
Birmingham
Road
Industrial
Estate
Stratford
B1
6 ha
 AES (aerospace, 13)
 W R Pashley Ltd (manufacturing of
motorcycles & bikes, 5)
 Water Utility Control Systems Ltd
(aeronautical engineering, 5)
B1, B2, B8
B1, B2, B8
2.1 ha
Little public transport,
Few amenities
Public transport provision poo
Poor access to amenities
Average quality of stock, good quality
of environment. Good internal &
strategic road access, good public
transport provision
Age: 1970s
B1
37
Name of site
Attleborough
Fields
Location (postcode,
district, and in
relation to strategic
transport
infrastructure)
CV11 6RS, Nuneaton
& Bedworth, access
to A47->A5 & A444
Current occupants (broad sector/number of
employees.)
Importance
of site
Size of site
(ha)
Premises
(sq m)
Use Class(es)
Level of
occupancy
Age and quality of site
“Issues” identified with regar
to the site
 Aermotve (manufacturing panels, 5)
 Armcast Ltd (manufacturing, 5)
 Caledonian Control technology (control
system equipment. 5)
 D L G Racing Products (engineering, 5)
 Gibbs Technologies Ltd (research
&experimental development on natural
sciences, 5)
 Harris Gauges ( repair & calibration, 5)
 JK Machinery & Tools (machining, 5)
 Karl Dungs Ltd (heating systems, 5)
 Penta Patterns & Model (automotives, 16)
 Ray-Ran Test Equipment Ltd (manufacture of
calibration equipment, 5)
 Inifo’ge (UK) (automotive, 4)
Some
inter/national
companies
but majority
from local
region
31.66 ha
B2, B8
80-90%
occupancy
Average quality external
environment, roads need significant
repairs, derelict buildings, vacant
plots untidy.
Age: mix 1960s-1980s -2006 modern
buildings – satisfactory condition
normal level of repair/maintenance
needed in medium run.
Increased traffic flows through
Nuneaton; 10-20mins drive to
strategic access
No public transport, few close
amenities
38
Name of site
Bayton Road
Industrial
Estate
Foleshill
Location (postcode,
district, and in
relation to strategic
transport
infrastructure)
CV7 9EJ, Nuneaton
& Bedworth, easy
access to Jnc 3 M6
and A444
CV6 5NX, Coventry,
easy access to A444
leading M6 Jnc 3
Current occupants (broad sector/number of
employees.)
Importance
of site
Size of site
(ha)
Premises
(sq m)
Use Class(es)
Level of
occupancy
Age and quality of site
“Issues” identified with regar
to the site
 Adept Engineering Company Ltd
(manufacture of machine parts, 5)
 Aerocom metals Ltd (metal manufacture, 5)
 Aktiv solutions (adv manufacturing, 2)
 Anchor Inserts Ltd (metal component
manufacture, 5)
 Arrowsmith engineering (aerospace, 41)
 Bodycote (aerospace, 39)
 Bolyer Engineering (automotive, 25)
 Brose (automotive, 300)
 Chinn Ltd (architectural & engineering
activities, 5)
 D&S engineering (manufactures to aircraft &
defence, 5)
 Doncaster Sterling Coventry (engineering
precision components,-)
 Fardon engineering Ltd (engineering, 5)
 Gilbert Curry Industrial Plastics (adv man, 25)
 Harris RCS, Aerospace, 36)
 Hi-Tech aerospace components (aerospace, 5)
 Luna Engineering Ltd (aeronautical
engineering, 5)
 McS Control Systems (manufacture &
installation of electrical control panels, 5)
 Nasmyth Group Ltd (Precision engineers, 5)
 PowerKut Ltd (aerospace, 26)
 Prima Power U Ltd (manufacture of medical
precision & optical instruments, 5)
 The premier Group (automotive& aerospace,
100)
 Woodcrafts Ltd (design engineers, 5)
 ABB Control Ltd (Power & automation
technologies, 20)
 Giga Solutions Ltd (Prinited & integrated
circuit services, 5)
Inter/national
companies as
well as local –
attractive to
sub-regional
companies
70.3 ha
B2, B8
80-100%
occupancy
Quality: between fair and good – and
average-high external environment –
some significant repairs needed to
buildings and roads. Good easy access
with good public transport provision
and close to local centre for
amenities
Age: 1960-2006
Internal roads poor condition
483.1M2
B1
medium
39
Name of site
University of
Warwick
Coventry
University
Innovation &
Technology
Park
Location (postcode,
district, and in
relation to strategic
transport
infrastructure)
CV4 7EZ, Coventry,
Good access to A45
CV1 2TT, Coventry,
Access to A4600,
A4114 for A45, A46,
M6 and M69
Current occupants (broad sector/number of
employees.)
 Cellfacts Instruments Ltd (R&D labs, 5)
 Circadian Solar (manuf electric motor
generators & transformers, 5)
 Dassault Systemes UK (3D design &
engineering,-)
 Dennis Eagle (automotive, 450)
 Embed Ltd (Automotive software engineering,
5)
 Organics Ltd (Collection & treatment of other
waste, 5)
 Rapide Communications (Telecoms, 5)
 RCD Except (Adv eng, -)
 Spectron gas control systems Ltd (Gas control
equip, 5)
 Tata motors European Technical centre
(automotive, 286)
 Tranzaura UK (transport software/intelligent
mobility, 5)
 Warwick audio technologies Ltd (developers
of flat & flexible loudspeaker technology, 5)
 Warwick effect polymers (plastics &
polymers,-)
 Weltec biopower GmbH (producer of
biogasplants,-)
 WMG Ltd (R &adv eng, 20)
 Neurosolutions Ltd (R & experimental dev on
natural science, 5)
 Oswald Consultancy Ltd (engineering related
scientific & tech consulting, 5)
 Sprue Safety Products Ltd (manufacture of
other electrical equip, 5)
Importance
of site
Size of site
(ha)
Premises
(sq m)
Use Class(es)
0.3 ha
B1, B2
Level of
occupancy
Age and quality of site
“Issues” identified with regar
to the site
Very good quality
40
Name of site
Binley
Business park
Location (postcode,
district, and in
relation to strategic
transport
infrastructure)
CV3 2RQ, Coventry,
Easy access for A46
Current occupants (broad sector/number of
employees.)













Whiteley
CV3 4GA, Coventry

Swift
Point/Valley/
Park
CV21 1DZ, Rugby,
Easy access to A444
for A45 and A46







AirKraft Ltd (adv man, 11)
Bosch Rexroth Ltd (drive & control tech,-)
Double G engineering (precision engineers, 5)
Dow chemical (chemicals)
Engineering systems Ltd (engineering, 5)
European Gauging systems Ltd (measurement
systems & gauging solutions, 5)
Hydrogarden (manufacturing, 73)
Induction tech group (automotive, 15)
Marposs Ltd (manufacture of electrical equip,
5)
Rohm & Haas electrical materials
(manufacture of inorganic basic chemicals, 5)
Rugby Autocar Co Ltd (internal combustion
engines, 5)
Visioneering (automotive, 170)
Whiteley-Brooks engineering Ltd (machined
components, 5)
Cooper Crouse-Hinds UK Ltd (electrical &
instrumentation products for harsh &
hazardous environments,-)
Cameron Systems (energy, 67)
Draka Industrial cables Ltd (multipair &
multicore instrumental cables,-)
Engine Developments Ltd (Judd) (adv man,
20)
GLR Processing Company (manuf of printed
circuits, 5)
In-Situ machining solutions Ltd (machining, 5)
Petreco International (aeronautical engineers,
5)
Raysun Innovative Design Ltd (adv man, 50)
Importance
of site
Size of site
(ha)
Premises
(sq m)
Use Class(es)
Level of
occupancy
Age and quality of site
1.9 ha
B1
Very good quality
32 ha
B1, B2, B8
Very good quality
2000M2
B1, B2, B8
Very good quality
“Issues” identified with regar
to the site
41
Name of site
Butlers Leap/
Prospect
Way
Coleshill
Industrial
Estate
Location (postcode,
district, and in
relation to strategic
transport
infrastructure)
CV21 3RQ, Rugby,
M1 &M6, has own
rail link to the rugby
line
B46 1HG, North
Warwickshire, Jnc 9
M42, Jnc 1 M6 toll,
Jnc 4 M6
Current occupants (broad sector/number of
employees.)
 Airwave Pneumatics Ltd (air & other gas
compressors, 5)
 Blanc aero industries UK (aerospace, 270)
 ITP Group (adv man/eng, 25)
 Lisi aerospace (aerospace, 250)
 PLP Precision Laser Processing (adv man, 21)
 Vacuum interrupters Ltd (engineering related
scientific & technical consulting activities, 5)
 Applied Cooling technology (manuf heat
exchanges, 5)
 Central wheel components ltd (manuf road
wheels, 5)
 CMG ltd/Thomas & betts/Adaptaflex (manuf
& sales electrical products, 5)
 Flixicon Ltd (mauf & sales electrical products,
5)
 Griflex Ltd (manuf & suppliers of hosepipe
fittings,5)
 Mas Precision Engineering (automotive, 6)
 Thru-Thread Ltd (manuf Api & Vam thread
gauges & ancillary gauges,5)
Importance
of site
Size of site
(ha)
Premises
(sq m)
Use Class(es)
Level of
occupancy
Age and quality of site
2950M2
B1, B2, B8
Good quality
4500M2
B2, B8
medium
“Issues” identified with regar
to the site
42