Whilst London is still the world s top destination for investment, Manchester saw significant improvement in its relative performance.

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2 MIDAS BUSINESS PLAN EXECUTIVE SUMMARY The MIDAS Business Plan sets out key operational initiatives which will be taken forward in financial year 2010/11 in order to meet our job creation targets and overall MIDAS objectives. The document supports the overarching three year strategic vision for MIDAS published in 2008 and covering the period The MIDAS approach is all about understanding the needs of business. In gaining access to new and growing markets was largely replaced by a drive for lower costs, often leading to consolidation and job losses. MIDAS refocused its energy to put more emphasis on investor development significantly increasing its focus on developing relationships with both UK and internationally owned companies. The approach proved itself successful with 25% of companies visited resulting in a project of some sort. MIDAS, once again beat its ambitious targets against the backdrop of global economic turmoil and Manchester proved itself to have the right ingredients to respond to opportunity as it presented itself. Whilst London is still the world s top destination for investment, Manchester saw significant improvement in its relative performance. As a result of this, Manchester is now ranked as a new entry in the IBM Global Top 20, at 15, above both Frankfurt and Dublin. MIDAS will continue its traditional targeting approach towards large and fast growing companies throughout our key sectors and markets. We continue to develop a sophistication of account management of multipliers and international partners to deliver the maximum number of projects. Working hand in hand with our Local Authority stakeholders, the NWDA, the Commission for the New Economy and the private sector, we continue to tailor Manchester City Region s offer building on our key assets. Our value proposition to investors should continue to meet their immediate needs for cost reduction and consolidation, ensuring that the City Region is seen as a solution and not a problem.

3 The tough economic climate will continue to test our nerve but we also need to be ready to take advantage of the opportunities that will inevitably arise from the eventual upturn in the global economy. We need to know what sectors and markets will grow and which will irreversibly decline. A number of new initiatives focus on innovation and talent. Financial services, Creative, Media, Digital and ICT and Lifesciences will clearly remain lead sectors, knowledge, innovation and R&D will be key, whilst our work in London will remain critical to attracting UK and overseas investment, with the US, Europe and India again the lead markets in and Japan still important for investor development activity.

4 INTRODUCTION TO THIS BUSINESS PLAN MIDAS is Manchester s investment and development agency and works to attract new investment and employment to the city region. MIDAS drives the global business marketing of Manchester as a world-class location and delivers an extensive package of expert, free and confidential advice for location potential investors and consultants. MIDAS services are available to national and international companies that want to expand in or relocate to Manchester City Region. Working on behalf of the ten Local Authorities of Greater Manchester and in partnership with the Northwest Regional Development Agency, MIDAS provides services such as relocation support, PR and networking, finding property solutions and advice on recruitment and training as well as assistance with securing grants. The intention is for this plan to focus all activity on the core MIDAS functions, to ensure we optimise efficiencies and make best use of our annually reducing resources. The MIDAS approach is all about: Understanding the needs of business in gaining access to new and growing markets was mostly replaced by a drive for lower costs, often leading to consolidation and job losses. Leveraging public sector support to attract those global businesses embracing new technology emphasising the need to market Manchester as a Smart City. Knowledge and Innovation are the key themes. Working towards balancing attracting new investment with assisting the expansion of existing firms - this is achieved by committing roughly 50% of business development resource to investor development activity focused on retaining and expanding existing investors and 50% of the resource to winning new investment in a globally competitive marketplace.

5 BUILDING ON AN IMPRESSIVE TRACK RECORD According to IBM (Global Location Trends, October 2009) the impact of the global financial crisis first hit inward investment in 2007 and by 2008 there had been a decline of more than 25% in international investment the largest drop since IBM began recording data. The shift from increased market access to cost containment and reduction was unparalleled with companies also reporting that they were finding it increasingly difficult to finance their investment projects. Manchester however proved relatively resilient and MIDAS figures were impressive under the circumstances. In a recent report by Centre for Cities, Manchester is highlighted as an already robust economy which will continue to grow stronger as the economy recovers. The City Region is praised as one of the five big hitters with more than one in three jobs (39%) in the UK being based in Manchester, Birmingham, Leeds, Liverpool and Greater London. IBM also recognised the strength of Manchester in their annual report (October 2009): Cities, themselves virtually complete economies in some instances, are increasingly becoming the focal points of global economic activity... measured by number of projects London is the world s top destination for investment... London is followed by traditional strong performers such as Singapore and Paris. Cities such as Hong Kong, Dubai, Manchester and Frankfurt saw significant improvements in their relative performance, while some cities that have been known as major hot spots in recent years, such as Budapest, experienced relative decline in their ranking. IBM ranked Manchester a new entry in the Global Top 20, at 15, above both Frankfurt and Dublin.

6 In summary MIDAS results in recent years are; 2008/ / /07 Total number of successful projects** Actual Jobs Created and Safeguarded (UK & Foreign Owned Companies) Jobs Created Target (UK & Foreign Owned Companies) Actual Jobs Created (UK & Foreign Owned Companies) Projects which are FDI 36% 42% 33% Projects which are Indigenous (UK Owned) 64% 58% 67% Jobs Created which are FDI 48% 50% 27% Jobs Created which are Indigenous 52% 50% 73% Jobs Safeguarded which are FDI 73% 53% 27% Jobs Safeguarded which are Indigenous 27% 47% 73% Projects with US origin Projects with European origin Projects with China/Taiwan origin Projects with Indian origin Projects with Other origin 43% n/a n/a 32% n/a n/a 11% n/a n/a 4% n/a n/a 10% n/a n/a **See later note of imperative for the reintroduction of a soft landing service

7 IMPROVING PARTNERSHIP WORKING MIDAS continues to work in close partnership with all ten local authority stakeholders and the URC s and is seeking to strengthen this relationship even further over the next year. MIDAS Chief Executive and Chairman will continue to meet with each Local Authority Chief Executive and Leader and URC Chair and Chief Executive for an annual meeting to discuss performance and key issues. On at least a quarterly basis, contact meetings will take place between the nominated member of the business development team and the Economic Development Director of each authority to discuss projects and activity within the relevant area. MIDAS also runs a post Board meeting so all Stakeholders are informed of key Board decisions and business. This group meets quarterly as do the MIDAS/Local Authority Systems Working Group, which meets to oversee development of the Enquiry Management and Property Database Search Facility. A twice-yearly Marketing Forum also takes place with communications representatives from each Local Authority. MIDAS continues to engage stakeholders through attendance at their economic partnerships supporting the development of their local economic development plans and sharing market intelligence gained through MIDAS employer engagement programme. MIDAS seeks to support each local authority in developing their distinctive offer within the context of the wider City Region proposition. Creating the right conditions for investment is critical to the success of the ten authorities, particularly in relation to providing investors with the right site and accommodation. MIDAS will continue to push the development of a demand-led Greater Manchester Spatial Strategy encompassing town centre developments as well as out of town business parks and large sites.

8 Development of the Enquiry Management and Greater Manchester Property Database Search Facility continues in partnership with all Local Authorities across Greater Manchester. During this financial year it will provide to the MIDAS Partnership and clients a vastly improved property availability provision made possible by a new partnership with the CoStar/ Focus Group. This will ensure MIDAS continues to deliver the most accurate and up to date property information available for clients, and provide unique market intelligence to all authorities related to demand categories. Property analysis figures will be available to inform and shape economic development across Greater Manchester in the future. Alongside the increased partnership working with Local Authority Stakeholders, MIDAS continues to work towards strengthening the relationship with the North West Regional Development Agency. Through the drafting of a protocol document which captures a series of key principles, MIDAS and the NWDA seek to improve sharing of market intelligence and project information. The document also seeks to set out the respective leadership roles of each organisation and reduce duplication of activity and improve efficiency. A new bi-monthly meeting between key MIDAS and NWDA personnel will also be implemented to further improve communication between the respective agencies. The group will be chaired by Steven Broomhead. As well as the ten Local Authority stakeholders and the North West Development Agency, MIDAS activities are all delivered in partnership with; the Commission for the New Economy, Marketing Manchester and Manchester Knowledge Capital. MIDAS also works closely with membership organisations such as Greater Manchester Chamber, Pro Manchester, as well as with Manchester Airport, the Universities and Business Schools, Business Link and the NWDA funded regional/sub regional cluster organisations and sector networks.

9 THE CURRENT ECONOMIC CLIMATE The IMF do not believe that a depression will happen now in the UK due to government fiscal intervention, however not all economists agree. Some say that the macro economy is coming good but most agree that unemployment figures have a time lag so are likely to continue to grow. Whilst economic conditions stabilise and some growth is forecast, a cautious approach to is still to be recommended. Pre-recession growth levels are unlikely to return for some years to come and recovery will, for many, be uncomfortably slow. Looking to the future it is clear that we should focus on improving our competitive offer. Manchester has strong spheres of influence on which we can capitalise on internationally. The impact on this business plan should be that we carry on as normal but seek to leverage more resource to get into new and emerging markets such as Brazil, Russia, China and the Gulf States. At a local level, although Manchester's property market has been hit by the recession, around a 25% fall from 2008, it has not necessarily been catastrophic, with the 2009 figure being approximately 15% below the long term average. Manchester has not been hit as hard as other UK cities such as Birmingham, Glasgow and Leeds in this respect and remains the largest property market outside of London. Grade A office take up actually grew for the second year in succession as companies look to make use of more efficient and attractive space, which can prove highly cost effective. In the conurbation core, this leaves approximately 900,000sqft of Grade A office space available at present, with no new development currently underway. As average take up over the last two years has been approximately 350,000sqft, this suggests that there is just over two and a half years left before supply completely dries up, which is a problem which will need to be addressed in the short term. There are schemes which are ready to commence on a pre-let basis, but even these are likely to take a minimum of two years to complete. Speculative build needs therefore to be encouraged at the earliest viable opportunity, so that Manchester remains ahead of other UK and European cities. This is made even more vital by the fact that supply in Central London is very limited, with prices rapidly rising and incentives falling, meaning therefore that the prospects of larger scale relocations from the Capital begin to make more sense in the Boardroom, as long as quality, cost-effective supply exists elsewhere.

10 HOW CAN MIDAS SUPPORT PARTNERS IN IMPROVING THE CITY REGION PRODUCT As the strategic employer engagement body for Greater Manchester, MIDAS has first hand knowledge of the needs of existing and prospective investors. Whilst not a policy making organisation, MIDAS using its market intelligence is able to help partners who can shape and influence the City Region Product, through the emerging Greater Manchester Strategy and City Region Pilot negotiations. An analysis of our employer engagement intelligence and an analysis of the work undertaken with the Business Leadership Council on the needs of large domestic firms in the City Region show that the key issues are: Talent, the No 1 determinant in locational decision making. MIDAS is closely working with the Commission for the New Economy to ensure the skill set of the Manchester City Region Labour Pool meets the needs of employers and to ensure overall economic benefit. Specific initiatives include the potential development of a Talent Bank which would sit within MIDAS and have a two strand approach including a recruitment database matching high calibre candidates in key sectors with needs of incoming and existing MIDAS investors and bringing top talent in to experience the City Region, to showcase the Manchester offer and encourage future relocations. Time Bank' - MIDAS to explore how the GM Chamber/MCC Time Bank initiative (helping SMEs through the recession) could be extended to become a network of professional service firms providing advice and guidance to new investors this could be a natural extension to the Soft Landing Service. This could also include advice on tax incentives which are not understood internationally. MIDAS will explore approaching the top 100 firms to potentially provide 2-3 staff which could build up a network of advisors or mentors, linking with existing networks such as Pro Manchester. Transport, and connectivity at a local, national and international level are critical for investors. Reduced congestion on City Region roads and motorways, developing high speed rail links and the future success of Manchester Airport is key to increasing the local talent pool and links with international markets.

11 Financial Incentives, are still important, and whilst MIER believes that direct cash grants are not beneficial, the proposed Manchester Investment and Development Fund which is aimed at adding value to the existing funding arrangements will assist in the attraction of transformational projects in to the City Region. The suggested fund focuses on a large firms R&D and training grant and is, we believe, within the parameters of European Funding Regulations and does not undermine assisted areas. Digital Infrastructure, ensuring businesses and individuals are equipped with the tools and infrastructure to succeed supporting the business case for future investment in Next Generation Access in Greater Manchester. Tax, we also need partners to Influence Government because the UK tax regime is the 2 nd highest amongst EU countries - a real deterrent. That combined with a cost base higher than in Eastern Europe means we need Greater Manchester and the wider North West to lobby government to reduce Corporation Tax. Property and Site Development, ensuring we have a demand-led strategy in bringing large sites to market and ensuring speculative office development continues to meet the future MIDAS project pipeline. This should be an intergral part of the emerging Greater Manchester spatial strategy. Research Database, ensuring Manchester Family Partners are sharing research findings across organisations, particularly as MIDAS has no dedicated in-house resource for this function at present.

12 WHICH SECTORS PROVIDE BOTH IMMEDIATE OPPORTUNITY AND POTENTIAL FOR LONG TERM GDP GROWTH FROM INNOVATION Over the last 3 financial years the sectors which have created the most MIDAS Inward Investment projects are; Financial and Business Services, Manufacturing including Food and Drink, ICT and Media, with Financial Services and Manufacturing being the biggest job creators. Attracting and retaining businesses from sectors that innovate is a cornerstone of the MIDAS business plan going forward. The key objective being to focus more resource on emerging sectors whilst reducing resource on those sectors that are in structural decline. One key factor in this year s performance has been that over 50% of the jobs created have had salaries of over 30,000 which shows distinct success in the targeting of high-value, as well as high-volume projects. This is coupled with 20% of successful projects having a significant R&D element to them, which not only supports the higher salary value but also the knowledgedriven strategy of MIDAS strategic partners and stakeholders. Financial & Business Services Financial and Professional Services are expected to record year on year growth alongside a strengthened economy with recent reports showing that confidence in the sector is increasing. Confidence in the North West is now higher than it is across the UK as a whole. (KMPG). The impressive list of companies which have invested within the past 12 months included the BNY Mellon, a MIDAS relocation success story from 2005, which expanded its operation in Manchester to create a further 500 new posts, law firm Shoosmiths, which has opened a new office in Manchester and expansions from Lockton and Swinton Insurance which together will create more than 200 new jobs. These investments have helped underpin Manchester s status as the UK s leading financial and professional services centre outside of London. Our long standing discussions with a number of global banks continue despite the credit crisis and importantly these firms appear to be amongst the first to deliver improved results whilst recent meetings have shown that their interest in Manchester appears to be undiminished by recent economic events. In fact the business case for Manchester as a near-shore complementary location to London and as a European growth centre is even stronger. Confidentiality remains critical to these projects. Manchester s image as a stable, sustainable location is key.

13 Life Sciences, Biomedical, Healthcare including Medical Devices and Pharmaceuticals Representing 75% of the North West s total, the Manchester biomedical industry from life sciences to medical science and healthcare forms the majority of the region s activity, and is continuing to evolve, innovate and consolidate, building on the region s industry strengths. Central to the Manchester Bio-community are the incubation facilities.the incubation facilities sit on Manchester s Oxford Road Corridor (The Corridor) which has become the hub for the City Region s biomedical community, with key industry players recognising the benefits of close working and clustering. The Corridor is also home to other major scientific facilities Manchester Science Park which houses a science and technology community that feeds into the healthcare sector. Other residents on the Corridor include two of Manchester s four universities, the Paterson Institute and Christies Hospital which are both world leading brands. Central Manchester & Manchester Childrens University Hopsitals NHS Trust, as well as several other NHS related organisations. Recent statistics indicate that Corridor now has location quotients five times the national average for education, health and creative businesses. Accounting for 5.9 billion GVA in 2004, the sector was the third largest in terms of contribution to total GVA output within the Manchester City Region. Creative, New Media, Digital and ICT Manchester is the 2 nd largest broadcast centre in Europe. It employs 84,900 people and in 2004 generated 2.8 billion in GVA well above the Northwest and UK average. The relocation of five significant BBC departments, forming part of the 200 acre MediacityUK site, combined with initiatives such as the Hive and The Sharp Project will cement the sector s global reputation and its place as a leading centre for convergent media activity. MediacityUK is one of a handful of global centres being developed across Asia, Europe and North America and the only one of its kind in the UK. The development will add 3,000 broadcast hours to regional production and a projected 1.5 billion to the regional economy. It will also be a centre for digital content production, encouraging IT, TV and digital companies to collaborate and innovate, developing and delivering new products and business models.

14 The Sharp Project will offer low cost flexible space to a range of companies across the creative industries with a particular focus on animation and digital content. It will house a virtual super studio with high capacity, next generation broadband, enabling processes to be outsourced to other parts of the world in real time, taking advantage of cost savings and time efficiencies. Manchester s Northern Quarter is a vibrant creative hub, home to many artists, architects, creative agencies and digital facilities. The area is undergoing some development and as well as benefiting from an upgrade to it s digital connectivity and redevelopment of Stevenson Square there will be a new high profile development, The Hive. This will give a focal point to the area and provide cutting edge, facilities and space to those companies who value a bohemian, creative environment. MIDAS continues to support the relocation of the BBC to MediaCity UK and has helped Red Vision, a leading player in computer generated imagery to expand in New East Manchester, safeguarding 50 existing posts and generating 40 new jobs. Advanced Engineering and Manufacturing, Food Manufacturing, Processing and Distribution According to IBM (2009) the largest decline in 2008 as a result of the global recession was in production. However, Manchester had some noteable successes; Sociedad Anónima Industrias Celulosa Aragonesa (SAICA), the Spanish-owned packaging firm, announced the opening of a 250m recycled paper mill in Trafford creating 200 new jobs and MIDAS, in partnership with the NWDA and Stockport MBC, was also instrumental in NIKE Umbro maintaining and expanding its presence in Stockport protecting and creating almost 300 jobs. MIDAS also worked closely with global provider of professional technical services, Jacobs Engineering, to help safeguard 800 jobs in Sale and Cheadle Royal, which has now led to a further expansion in Cheadle of 350 jobs, supported by the NWDA. In terms of global sector trends transport equipment remained the top sector for job creation from foreign investment.

15 Shared Services and Outsourcing Over the last decade, Manchester has emerged as one of Europe s leading shared service hubs resulting in a highly developed industry infrastructure. The city region alone is home to a cluster of 30 facilities with over 50 across the North West. This has meant the city has built a large labour pool specialising in finance, procurement, Human Resources & IT. Manchester is unique in its approach to training, supporting both a Professional Apprenticeship in Shared Services graduate programme to school leavers and a BTEC vocational qualification allowing staff to build skills in a range of areas such as Accounting, Customer Services, IT, HR and Payroll. Manchester is also a leader in Pan European Service Centres supported by its international and cosmopolitan population aiding processes in over 20 languages. This has attracted a number of prestigious global companies including Kellogg s and ESSO. In addition Manchester has traditionally been a strong base for national centres with award winning shared service centres such as TetraPak Business Service and AstraZeneca. Recent announcements from international companies such as the recent 12m Sainsbury s investment for a new HR service centre plus the recent SPX investment will ensure the city region s shared services centres continue to thrive. In 2008/09 leading US business process outsourcing company, Teletech, chose to expand its Manchester operation by 250 new jobs. MIDAS supported Premier Foods, the UK s largest food producers in establishing a shared service operation in Manchester with the creation of 240 new jobs, which increased by a further 100 jobs in January Public Sector Relocation Public Services have supported the economy during the recession however cuts in public sector spending going forward could restrict this growth in the future. In the past 12 months however, MIDAS has continued to be successful in attracting public sector investment with the UK Borders Agency creating 250 new jobs and National Institute for Clinical Excellence (NICE) expanding its presence and generating 140 new posts.

16 Environment & Energy Energy, in particular nuclear and renewable energy, has shown consistent growth over the last two years, despite the economic conditions. With further investment of up to 8m going in to the Dalton Institute at Manchester University, a UK centre of excellence for nuclear power research and companies such as Jacob's Engineering growing its expertise in this area in Manchester, it is an excellent time to be looking to attract further investment around this existing knowledge-base. Renewable Energy also continues to offer increasing opportunity in research and manufacturing, through the proposed North and Irish Sea wind farm developments and strong existing companies such as Ener-G in Salford. Town Centres, Retail & Leisure Although the recession has slowed some Town Centre development across the Manchester City Region, there continues to be important demand-led planning to undertake for future development. Activity within the retail sector is now largely concentrated on those rapidly expanding retailers, or new entrants to the UK market, looking at what business requirements they may have over the short and medium-term, in regards to infrastructure investment, such as national and regional office headquarters and distribution facilities. THE IMPORTANCE OF UK OWNED INVESTMENT IN MANCHESTER UK-based business forms almost 75% of Business Development activity. That is because MIDAS focuses on companies which are both UK owned and Foreignowned but are located in the UK. Historically MIDAS results are 50/50 between FDI and Indigenous Investment (although this year it is a little more weighted towards FDI perhaps due to the number of FOCs engaged and the possible greater impact of the recession on UKowned firms as foreign currencies have risen in value compared to GBP). Much of MIDAS' UK activity is facilitated through London as the commercial hub of the UK.

17 STRATEGY FOR ATTRACTING INWARD INVESTMENT The multiplier account management programme is designed to gain access to as many potential projects as possible through regular interaction with key multipliers. These include location consultants and accountancy firms, property developers and agents and other relevant bodies, based across the UK and beyond. Initiatives for 2010/11 include; Regular information briefings to key multipliers to promote the Manchester messages. Annual property agents and developers dinners to strengthen relationships with the property community. Seeking to extend this to networks of property agents in London. Targeting relationship building with 200 new business engagements per year from outside Greater Manchester. This activity is predominantly focussed within the UK, whether companies are UK or foreign-owned. Raising the profile of Manchester through the promotion of globally significant investments or initiatives in the City Region as a base for lead generation in specific sectors. For example, utilising the developments at MediaCity UK and the Sharp Project in the Creative, New Media & Digital sectors and focussing on the developments on The Corridor for the Bio Medical and Healthcare sectors. Working to attract Non Departmental Public Bodies and Public Sector Research Establishment s in order to thicken the labour pool, particularly the Knowledge, Science and Medical Sectors. Continuing to employ a Senior Adviser to the Chief Executive in London and a Strategic Accounts Director in Manchester, both focusing on securing Board and/or CEO/COO level contact and developing relationships with UK based companies identified as strategically important for MIDAS/ the Manchester City Region. Both of the consultants work from a target list of 50 global companies, which continues to be an important method for lead generation and investor development. Each sector Business Development Manager continues to have a yearly activity plan for events and campaigns which allow them to engage with target organisations in the relevant field. These consist of a mixture of attending sector conferences in the UK and abroad, hosted lunches in London, exhibition stands at conference events such as British Insurance Brokers Association (BIBA) or Call Centre Expo as well as targeted direct marketing campaigns.

18 The use of corporate hospitality at Manchester United as part of a long standing partnership agreement, delivered excellent results for MIDAS last financial year with guests including senior representatives of Coca Cola, Disney, Ascent Media, Santader, Cargill, Fine Lady Bakery, Takeuchi MFG, ITN, The Co-op and L Oreal. MIDAS will evaluate and where appropriate, continue to use corporate hospitality to engage target companies and existing investors in the coming year. Linking NWDA, Manchester Solutions, Business Link and MIDAS through a common database to improve efficiency.

19 THE IMPORTANCE OF PROMOTING THE CITY REGION S KEY ASSETS Manchester has a wealth of key assets which are significant contributors to the success of the City Region. Manchester s Universities, Business School and Alumni are key to the talent pool offer are Manchester Airport, provides the City Region with a major international gateway and access to opportunities across the globe. World Class Developments such as the Spinningfields district should be at the forefront of the Manchester offer. The development for instance is office led and offers 2.37m sq ft of office space to house 25,000 workers, and also includes commercial, civic, residential, hotel, restaurants, retail and leisure elements. Other examples of key assets include: MediaCity UK: A 200 acre site creating a purpose built media city for creative and digital industries. Phase one is 37 acres and will be occupied by the relocation of five BBC departments (2,000 jobs). 15,000 jobs will be created over the next 5 years. Sharp Project: The Sharp Project is a 5m creative and digital hub providing low cost workspace and access to cutting edge technology. The 200,000 square foot building will include a choice of suites to suit all budgets, from incubators and managed workspace through to fully-fitted production studios. The building will also be part of a global virtual super-studio, a network of digital production centres linked by common technology and based on a follow the sun model. With Manchester as the UK hub, additional studios in Canada, Perth, India and China will open up new links with the animation industry worldwide and give those located in Manchester access to new markets and partnerships around the world. Manchester Science Parks (msp) is one of the top-ranking science parks in the UK, internationally recognised as a centre of excellence and location for successful technology based companies. As well as physical assets we should continue to build on our existing brand associations.

20 Our strong existing business base, including BNY Mellon, BT, BUPA Healthcare, L Oreal, Siemens, Kerry Foods, Waters Corporation, PZ Cussons, Jacobs Engineering, Cisco, IBM, Co-operative Group is important. Sport is also a key asset, in particular Manchester United and Manchester City but also Bolton and Wigan in the Premier League, Sale Sharks in Premier League Rugby Union and Lancashire CCC (new ground development). Events and partnerships, such as Manchester International Festival and Soccerex, the World Cup 2018 bid and twinning/sister city agreements, such as Los Angeles all boost our global brand.

21 THE IMPORTANCE OF OVERSEAS INVESTMENT (FDI) AND TARGET MARKETS There are over 1,200 Foreign Owned Companies in Greater Manchester. Foreign Owned Companies have relatively high rates of productivity contributing 17% to the North West Economy (14% higher than UK firms). Our recent international work in India and the US has helped to significantly swell the project pipeline for the coming year, with both long and short-term opportunities in sectors including media and ICT, financial services and manufacturing. The BBC relocation to MediaCity is also starting to become a locational driver for those digital and media firms looking to retain or win BBC commissions. It makes good sense to concentrate on those International markets where English is the first or significant second language. Priority markets USA and Canada The USA continues to remain a priority market for the City Region, accounting for 43% of MIDAS FDI Projects in 2008/09. The market is particularly important for financial and business services and creative, new media & digital and increasingly so for biomedical and healthcare. Activity in US in financial year 2010 includes a business club launch in both New York and Los Angeles. MIDAS will also lead a focussed programme of activity in New York, working with North of England, to meet with US based decision makers in Financial and Professional Services companies and to develop relationships with key multipliers. Europe, in particular France and Germany 32% of MIDAS FDI successes in 2008/09 came from Europe. There are approximately 250 Foreign Owned Companies in Greater Manchester with European parent companies that MIDAS is already targeting and therefore it continues to be an important market for MIDAS, particularly in terms of investor development.

22 India This market is expected to grow significantly in terms of contribution to UK FDI and offers significant potential for the City Region as the Indian economy continues to grow. Research undertaken shows that Financial and Business Services, ICT, Media and Healthcare offer the biggest opportunity and activity should focus around the following geographical locations; Mumbai, Delhi, Bangalore, Hyderabad, Chennai and Calcutta. MIDAS is leading on behalf of the City Region to co-ordinate partnership activity into a single strategy for India. Activity in India in 2010/11 focuses around a launch of the soft landing service. This MIDAS-led initiative will see a high level delegation from the city region visit the six strongest economic areas in India to present the Manchester message and the Hello Manchester offer. These areas are: Mumbai (linking to Pune), Chennai, Delhi, Bangalore, Kolkata, and Hyderabad. India is a top priority for Hello because of the strength and the compatibility of sectors and also because of the awareness and success of Touchdown London in India. There is an increasing possibility of a flight between Manchester and India which further strengthens the case for activity in this market. Japan Recent activity has proved beneficial, particularly for Investor Development activity. A recent trip saw relationships strengthened with all 37 Japanese Owned Greater Manchester firms and the trip identified at least 3 projects. It is proposed that future activity includes an annual visit to Japan. Second tier and emerging markets China and Taiwan Whilst there is an issue to resolve in terms of immediate resource versus longerterm outputs when considering China, MIDAS will continue to explore this as a priority market alongside the Commission for the New Economy and will be producing an overall strategy for the City Region taking into account existing relationships held by the Ten Local Authorities. The idea is to have a more strategic, cohesive and co-ordinated Greater Manchester approach and activity plan for China, which builds on some of the successful work previously undertaken by Greater Manchester agencies and local authorities but also looks at ways of generating even higher value or bang for the buck from the limited investment available for this important market.

23 Further areas of opportunity include Shanghai 2010 and the UK China Business Awards in September which also coincides with the visit of the Lord Mayor of City of London to China. South East Asia In particular Malaysia and Singapore. These markets are key to supporting the work to attract and retain direct long haul airline routes and are in the first phase of business club launches. There is some potential in the ICT and services sectors in these markets and there is are also academic links to build on particularly in Malaysia which is the 2 nd largest market for overseas students in Manchester and has a Manchester University office. Gulf States Capitalising on the Abu Dhabi investment, MIDAS will continue to support the civic-led activity in this market. Strengthening links with the Chamber of Commerce and British Business Group in Abu Dhabi and also new projects and existing company ties in both Abu Dhabi and Dubai. Latin America In particular Brazil which may present opportunities for biotech/science/r&d and Creative, New Media, Digital. MIDAS will explore this and any possible academic links within this market as part of the civic led partnership activity being undertaken around Soccerex. Russia This is forecast along with the US, India, China and Brazil to be one of the top 6 global economies by MIDAS will monitor this market for future opportunity it may present, although doubts exist about any immediate potential. South Africa Exploring the possibly limited potential offered by the financial & business services and sports sectors as civic led partner activity around World Cup 2010.

24 An overview of MIDAS markets and their links with partner agency priority markets is as follows: Inward Investment Academic Links Business (Trade) Business Tourism Leisure Tourism Route Development Australasia** Potential Brazil/Latin America Potential? China/Taiwan Potential Europe PRIORITY India PRIORITY* Japan PRIORITY*** Malaysa/Singapore Potential Russia Potential South Africa Potential? UAE Potential UK PRIORITY USA PRIORITY* *Priorities within NWDA Internationalisation Strategy ** Included as the NWDA continues to have resource in these markets *** Also for Investor Development/R&D rather than new investment

25 INITIATIVES TO ATTRACT MORE FDI INTO MANCHESTER MIDAS has a number of initiatives planned for 2010/11; Exploring ways of improving contact and raising the profile of Manchester with the North of England office overseas, in partnership with the Region. Building on our strong Spheres of Influence internationally including: Manchester s Universities, Business School and Alumni, Manchester Airport, existing UK and Foreign Owned Companies such as BNY Mellon, Coop Bank (new HQ) PZ Cussons (new HQ) and RBS. This can be achieved by greater co-ordination of marketing activity between HEIs, and the Private and Public Sectors. Exploring the potential of AGMA Brussels office and a possibly expanded remit to support the MIDAS investor development strategy through the ongoing account management of Greater Manchester located firms at their European Headquarters. Encouraging R&D collaborations especially in connection with the Greater Manchester Science Parks with a particular focus on India and China given these two countries interests in building their own R&D capability. Through Greater Manchester Chamber, MIDAS will seek better contact both within the UK and internationally with Chambers of Commerce and also through Business Groups such as BABC seek to improve MIDAS networks and contacts overseas and better link to trade and Investment activities. Enhancing the existing programme of activity with key multipliers, including location consultants and property agents. Researching links between British Organisations/Large Companies and their overseas links, for example, the BT Investment in Abu Dhabi Universities in order to strengthen our spheres of influence. Mapping existing Consulates within Greater Manchester and increasing levels of contact and activity.

26 Continuing to support the ASDF partnership activity and launching a series of Business Clubs in key markets (Mumbai, Singapore, Kuala Lumpur, New York and Los Angeles) supporting direct long haul route development and retention and maximising engagement with foreign owned companies. The clubs play an important part in the international strategy and the wider package of support offered by MIDAS. The Air Services Development Fund is a 2.5 million, fiveyear initiative to help retain and develop direct long haul air routes out of Manchester. The programme of activity is developed by the four partners responsible for its delivery the NWDA, Marketing Manchester, Manchester Airport and MIDAS.

27 LAUNCHING A NEW SOFT LANDING SERVICE MIDAS, Manchester s Investment and Development Agency has joined forces with Manchester serviced office providers and the NWDA to launch a new soft landing service for Manchester City Region and the wider northwest. The new service offers new investors to the Manchester City Region and the Northwest, free desk space for the first 12 months of their relocation to the area as part of Manchester s continued drive to attract investment and jobs. The soft landing service, Hello Manchester, is being launched in partnership with Avanta, Bruntwood, Manchester Science Park and Orega and includes the following locations, with potential to add more as the scheme develops: Manchester City Region Atria, Bolton (Bruntwood) Centurion House, Spinningfields (Bruntwood) City Tower, Manchester City Centre (Bruntwood NB from 2010) Furness House, Salford Quays (Bruntwood) Landmark House, Cheadle Hulme, Stockport (Bruntwood) Lowry House, Financial District (Bruntwood) Royal Mills, Ancoats (Avanta) Station House, Altrincham (Bruntwood) 3 Piccadilly Place, Manchester City Centre next to station (Orega) 111 Piccadilly Place, Manchester City Centre (Bruntwood) Manchester Science Park, Manchester (MSP) and in the wider Northwest Booths Park (Bruntwood) Daresbury Park/Daresbury Science and Innovation Campus Liverpool Science Park The Plaza, Liverpool (Bruntwood) Wilderspool Business Park (Bruntwood) Schemes that fall outside of Manchester City region will be supported by the NWDA and other sub regional partners.

28 Key elements of the scheme are as follows: 12 months rent free in full fitted accommodation in anchor locations across the city region and wider Northwest. Offered by a range of serviced office providers. Rent free period applies to one free desk per investing company. Service and parking charges would be negotiated and contracted directly between the company and the service office provider. The free rent service would be supported by the full spectrum of business development services provided by MIDAS and partner organisations including, Manchester City Council, NWDA, Business Link etc. No restrictions on market or type of business although the project will place an emphasis on attracting innovative companies, creating skilled employment and expanding the economy. 120 UK Owned and Indigenous (Greater Manchester Head Quartered) Firms also to be engaged in 2010/11. Funding The Northwest Regional Development Agency has agreed to contribute 25,000 towards the marketing of the scheme and MIDAS will match this marketing spend and also utilise fully its sales and marketing resource to promote Hello Manchester in key markets. Launch Plans Hello Manchester has already been unveiled in Singapore during a recent MIDAS visit and is being actively promoted by the MIDAS business development team. To date Hello Manchester has helped attract four investors. We are currently working up materials to be distributed through MIDAS and partner organisations, NWDA, UKTI offices overseas and used as part of Manchester Partnership activity overseas. There is a plan to launch to the media immediately with release and photocall followed by Hello Manchester and Hello Northwest launch events with key intermediaries to promote Hello offer and utilise strength of Manchester s ambassadors.

29 THE IMPORTANCE OF OUR INVESTOR DEVELOPMENT WORK AND INITIATIVES UNDERWAY OR PLANNED The foreign-owned company investor development programme has been successfully concluded with 25% of the 500 companies visited in 2008/09 resulting in projects of some sort, some short-term and others much longer-term, hence some of the benefits will not necessarily be seen for some time. 2009/10 has produced nearer 15% due to economic conditions. MIDAS initiatives include; Foreign Owned Companies continue to be engaged under the NWDA contract, with up to 750 companies to be engaged in 2010/ UK Owned and Indigenous (Greater Manchester Head Quartered) Firms also to be engaged in 2010/11. Account management of strategically important Top 100 firms across Greater Manchester and sharing the resultant market intelligence with the Commission for the New Economy. Further advancing discussions with the Commission for the New Economy on more intensive engagement with large domestics, high value and companies with high growth potential, also exploring how we resource this. Supporting the Internationalisation of existing SME s and large firms agenda, as recommended by MIER, through our Investor Development Programme. Engaging at Home and Abroad; needing to engage with Manchester office and also with in-country head office, where possible. Rolling out the model used during the September 2009 Japan visit, to other markets. MIDAS is working more closely with Pro Manchester on one of the key drivers of company growth - Private Equity - to enable us to reach some of the fastest growing companies in the UK which form part of the private equity companies portfolios. Mergers and Acquisitions Approximately 70% of global inward investment takes place through merger and acquisition activity and for this reason MIDAS is seeking to enter the M&A process at an earlier stage, so that where location has the potential to be influenced, this forms part of an M&A deal rather than is simply made public after the event. MIDAS is working closely in the UK and internationally with large accountancy firms and consultancies in order to highlight the services available within the M&A process.

30 MARKETING INITIATIVES Manchester needs to continue to tailor its offer and value propositions to investors immediate needs for cost reduction and consolidation, ensuring that the City Region is seen as a solution and not a problem. We also need to be ready to take advantage of the opportunities that will inevitably arise from the eventual upturn in the global economy, what sectors and markets will grow and which will decline. In broad terms therefore the marketing strategy for 2010/11 is to continue to use the two key messages of Manchester City Region, its strength and assets, and the MIDAS service to promote Manchester as a business location of choice and to continue to maximise opportunities on a global platform. In promoting Manchester City Region we will continue to use Manchester as the attack brand, particularly in key markets such as London, Europe, US, India and China and we will underpin this message with Manchester s key attributes: the talent pool, the connectivity, a centre of excellence for key sectors, the proven cost savings, the impressive and diverse property portfolio and the lifestyle offering. We will also seek to position Manchester in its rightful place alongside London with the other UK city messaging. Manchester as a complementary offer to London. Our target audience of decision making investors remains the same and we will strive to achieve that global reach while concentrating on the key geographical and sector markets mirroring the work of the business development team to strengthen our effort. Intermediaries such as location consultants, property professionals, and recruitment consultants will continue to form part of our target audience and this year will see a focused campaign to raise awareness and understanding among that important audience particularly in the case of the property community. MIDAS will continue to use a blend of marketing activity to convey the key messages to the target audience. The press and PR campaign will form an important part of this as will an extensive programme of events evaluated year on year for efficacy and value for money. We will also continue to use corporate hospitality to reach key decision makers and engage with the target audience through web, e-communication, print (including TEN magazine, the Black Book and the MIDAS Review) and film.