Look at the West Midlands

The West Midlands region is situated in the heart of England, covering 15,500 square kilometres and having a population of 6 million. Just 1.2 million people reside in the region’s rural areas in 97 market towns and 2,300 villages, with Oxfordshire, Herefordshire and Shropshire being the least densely populated counties.

The region remains the capital of UK manufacturing, with the motor industry being the largest. Other key sectors include aerospace, plastics and rubber processing, software, food and drink, electronics and telecommunications. The region also has the fastest-growing service sector in the UK and the largest concentration of professional firms outside London.

Birmingham, England’s second largest city, contains a million people at the heart of a 2.5 million-person conurbation covering the Black Country, Solihull and Coventry.The other main population centre is Stoke-on-Trent (240,000 people).The age structure of the West Midlands mirrors the national picture, with 30 per cent of the region’s workforce being under 34 years old.

The economic growth rate is around the national average, while gross value added (GVA) per head is around £16,000 – 90 per cent of the UK average and 10 per cent of the UK’s total – with wide variations between different parts of the region. The West Midlands provides just over 8 per cent of the UK’s total exports by value, while unemployment is less than 6 per cent, slightly worse than the UK average.

The region contributes £70 billion (8 per cent of UK GDP) to the UK’s GVA from a wide and varied economy. The largest sector continues to be manufacturing, with 25 per cent of the region’s GVA and 19 per cent of the entire UK’s manufacturing output (21,000 workplaces and nearly 500,000 employees). By 2015, manufacturing is expected to contribute 20 per cent of the region’s GVA – the highest of any UK region.

Building technologies companies generate a turnover of £6.7 billion per annum and employ over 260,000 people. Real estate and business services contribute 20 per cent of the regional GVA, and the wholesale and retail sectors continue to grow to 13 per cent of the region’s GVA. Birmingham is the UK’s largest business and professional services sector outside London, employing some 100,000 people, while service industries employ over 1.7 million people (75 per cent of the workforce) in banking and finance, law, accountancy, consultancy and shared service operations.

ICT is another growth sector, with one-third of all UK publicly quoted software and computer services companies operating in the region. Other significant sectors include agriculture and fishing, energy and water, transport and distribution, hotels and catering, communications and public administration.

However, the gap between the productivity (GDP/head) of the region and the UK as a whole is widening (from 87 per cent to 84 per cent of UK over the past decade). Changes are therefore required to transform this economic position. These include reversing a population decline, diversifying the economy, changing the occupational structure to create more senior and professional occupations, and upgrading the skills of the workforce.

There are 13 universities and HE establishments (student population nearly 180,000), more than 50 FE colleges, eight science parks, a range of internationally recognised research institutions, and two of the UK’s top business schools.

Motorways linking the north with the south of England meet in the Birmingham and Coventry areas. The rail link between London and the north-west of England and Scotland passes through Birmingham and Coventry, while the Midland Metro light rail service operates between Birmingham and Wolverhampton. Birmingham is the UK’s fifth largest airport, and 75 per cent of the UK’s population is within five hours’ truck drive, with all the major European cities within a 48-hour drive.

Tourism is a strong and growing sector, with 300,000 people employed and 28,000 businesses operating in the region. Attractions range from the historic – like Stratford-upon-Avon and WarwickCastle – to modern attractions such as AltonTowers and the National Sea Life Centre. The area hosts many major sporting events, and contains significant arts institutions.

Opportunities exist in manufacturing and service industries such as hospitality, with driving (LGV C+E in particular) skills still in great demand. Nursing, medical and care, public administration, education, and financial and business services staff are in demand, as are skills and experience in logistics, construction and distribution. The proposed expansion of BirminghamInternationalAirport will increase opportunities in construction and logistics. Current skills shortages include plumbers, electrical and mechanical engineers, and vocational qualification assessors.

Major local companies with headquarters in the West Midlands include Jaguar, Land Rover, Aston Martin, IMI, Lucas, Cadbury, Tarmac, GKN, Royal Doulton, JCB and Wedgwood. In 2006/07, the West Midlands attracted 97 inward investments from 22 different countries, creating 2,500 new jobs and safeguarding almost 12,000 more. The largest investor was the USA, followed by Germany, India, Australia and France.

Average property prices for the West Midlands region stand at £281,195 for a detached house, £156,345 for a semi-detached, £128,518 for a terraced, and £126,694 for a flat or maisonette, resulting in an average overall property price of £172,151, up 7 per cent from this time last year.

Manufacturing is expected to contribute 20 per cent of the region’s GVA – the highest of any UK region

Birmingham is the UK’s largest business and professional services sector outside London

Opportunities exist in manufacturing and service industries

Current skills shortages include plumbers, electrical and mechanical engineers, and vocational qualification assessors