Member Article

Business key to bringing new firms to North East

The skills and experience of North East businesses must be harnessed if the region is to fulfill its potential as a location for inward investment.

That is the key recommendation of a report, published by the North East Chamber of Commerce into regional strengths in attracting foreign direct investment.

The report, entitled “Bringing Business to the Table: NECC’s Inward Investment Report”, was produced in partnership with legal firm Eversheds and a steering group of NECC members keen to make the case for a robust support infrastructure to present the region as open for business.

It also details how the private sector must be more integrated with current inward investment activity and that opportunities exist to repatriate business to the North East as a result of increasing costs in Far East and Eastern European markets.

NECC Policy Advisor Helen Hayes (pictured) said: “All the elements that make the North East a great place to work, visit and do business are already here, what is required is a co-ordinated approach to promote them, to let others outside the region know what we in the North East have been aware of for years – that the region is open for business.

“This opportunity to harness private sector involvement across the spectrum of inward investment activities needs to be maximised to ensure that the real opportunity offered by inward investment is fully realised within the North East.

“This requires provision to be made by public sector organisations for more private sector involvement and more businesses to come to the table and play their part.”

David Osbourne, managing director of Newton Aycliffe shower manufacturer Roman, said: “In 2006 Roman began importing a price entry shower enclosure range, to compete with the large influx of Chinese imports within our market at this time.

“This is the first and only range which we have manufactured overseas. From 2010 onwards it became obvious that as a manufacturer we would benefit from repatriation.

“As a manufacturer we would rather hold common parts in great volume as opposed to simply stocking the finished products, and our products now all carry the made in Britain marque on the packaging, which is increasingly becoming a key selling benefit.”

The North East has fared relatively well in landing large-scale inward investment.

The most high profile example, Nissan, arrived in 1986 and more recently Hitachi to Newton Aycliffe.

These large companies provide a significant economic boost through expansion, supply chain and potential to bring additional work to the region.

The North East as a region performs relatively well in terms of attracting FDI with FDI created jobs increasing by 152 per cent from 2010/11 to 2011/12, and projects increasing 22 per cent over the same period.

For 2012/13, the North Eastern LEP (NELEP) landed 26 successful projects which created 1,693 new jobs and safeguarded 510 existing jobs.

For Tees Valley Unlimited (TVU), 10 projects were successfully landed which created 440 new jobs and safeguarded 179 other roles.

This was posted in Bdaily's Members' News section by Martin Walker .