Manchester's Economy (updates)

[majabl]

Originally Posted by skit_uk

So why are we not increasing as much as similar economies? Is it because of massive economic growth in asian cities i.e. china? Or is it because we are hampered by London and the UK government?

Without seeing exactly who's pushing the UK cities down the league, it's hard to say. For instance, it could be that all of the cities pushing the UK's cities down the league are doing it not on purely economic terms but because they're rapidly growing in population terms, either because they're free to grow as they want (eg no green belt to worry about), or are in industrialising countries such as China.

But who *really* cares too much as long as PPP GDP per capita is still high?

EDIT: you can download the full report in question at http://www.pwc.com/extweb/pwcpublica...256E390043C45B

[Architecty]

http://www.ft.com/cms/s/947f2af8-ca8...b5df10621.html

UK construction sector faces skills shortage
By Andrew Taylor, Employment Correspondent

Published: March 4 2007 22:03 | Last updated: March 4 2007 22:03

Britain is expected to experience a building bonanza over the next five years, placing an increasing strain on the availability of skilled labour, according to industry forecasts.

Construction output, already on a high, is predicted to grow by almost 11 per cent by 2011 led by a surge in schools construction, increased spending on transport and projects for the London Olympics.

A lack of trained labour in recent years has sucked in migrant workers from east European countries, such as Ukraine, Poland and Lithuania, to fill gaps on building sites. Unions have complained that rogue employers have jeopardised building standards and safety by using migrant labour to cut costs, paying low wages and avoiding national insurance and tax liabilities.

Demand for labour is expected to intensify in the next few years as construction output further increases. A £4.7bn government programme to renew or rebuild every secondary school in the country will be the largest single project, dwarfing developments for the 2012 Olympics, says *ConstructionSkills.

The organisation is one of a series of employer-led sector skills bodies established by government to ensure that there are sufficient trained workers to meet demand. ConstructionSkills says that employment in the industry will need to rise by almost a sixth to 2.8m by 2011, compared with 2.4m in 2005.

It plans to launch a series of national skills academies on large building sites to provide training for would-be construction workers. The first of these, on a £600m development, by British Land, in London’s Bishopsgate, started last year.

ConstructionSkills says 87,600 new recruits will be needed by the industry “each year between 2007 and 2011 in order to meet demand”. The biggest need is expected to be for skilled trades such as bricklaying, cladders and roofers. There will also be strong demand for painters and decorators, scaffolders and carpenters as well as for professional roles such as construction managers, architects and technical staff, it says.

The biggest growth in output is expected in London, south-east England and East Anglia. Employers in other regions fear that skill shortages could be worsened if labour is sucked into an “overheated” south-east building sector. London alone will need 12,880 new recruits a year, says *ConstructionSkills.

Infrastructure output is expected to be one of the strongest national drivers for new work, with significant railway station expansions and refurbishments planned for Birmingham New Street and Nottingham. Other works include improvements to Manchester Metrolink, the M6 toll road, the M25; expansion of the Victoria underground line in London; the Scottish Executive’s planned £3bn capital investment programme in strategic road and rail projects and expansion of ports at Harwich, Felixstowe and Great Yarmouth.

“This is a significant turn around from the situation earlier in the decade, when infrastructure output fell by a quarter between 2003-2005,” says ConstructionSkills. Social housing growth was also expected to be strongly driven by demand to provide cheaper housing for key workers currently priced out of some areas, says the industry body.

Copyright The Financial Times Limited 2007

[SleepyOne]

Denton Corker Marshall are coming to Manchester!

Great news this and a really prestigeous international name too. Better than that is the prospect of another highly creative, design-led practice not only working here but opening an office here (hopefully long term). The more competition for the established names the better.

The article also confirms their involvement in the Whitworth St West project. (I thought I spied their signature yellow in the renders!).

Denton Corker Marshall announces new Manchester office at MIPIM

International architects Denton Corker Marshall will use their attendance at MIPIM this week to announce the opening of a new office in Manchester. UK Director Stephen Quinlan will represent the practice at the leading international property forum, which takes place in the French city of Cannes from 13-16 March 2007.

Speaking in France, Stephen Quinlan commented,
“2007 is an extremely exciting year for the practice. With the completion of our first major civic building in the UK, the Manchester Civil Justice Centre, only weeks away, and with three additional projects in Manchester on our drawing board, we are looking forward to continuing to work with our partners in the city and to build on our success there. With our existing commitments and new projects in the pipeline, it really does make sense for us to have a permanent presence in the region.”

Denton Corker Marshall’s new Manchester office will run by Tom Goldthorpe and it will be responsible for the day-to-day running of the following projects:

– an eight storey office building at 2+3 Hardman Boulevard , the latest addition to Allied London Properties’ Spinningfields development in Manchester (adjacent to the Manchester Civil Justice Centre)

– a mixed-use development comprising a nine storey office tower, 100 room boutique hotel and 200 apartments at Whitworth Street West in Manchester for ASK Development Ltd

– a 12 storey office building in New York Street, Manchester for Bruntwood.

[jrb]

The last paragraph.

[macc]

http://www.manchestereveningnews.co....n_boosted.html

Whitehall of North plan boosted
David Thame
4/ 4/2007

PICCADILLY is set to become the Whitehall of the North.

The government's Highways Agency has told developers Argent that it wants to take their 30,000 sq ft office requirement to Three Piccadilly Place.

They have chosen the 200,000 sq ft block, now under construction, over Allied London's Spinningfields development.

But now speculation is mounting that the Highways Agency could be joined by a raft of other public sector occupiers as Whitehall moves north.

Market sources say that Visit Britain - the UK tourist agency - could also be heading to Manchester and has Piccadilly on its hit list. Visit Britain is currently based in London.

The Teaching Development Agency is also considering a move from London to Manchester or Coventry.

Insiders say it would make sense for the Government Office for the North West - which shared offices with the Highways Agency at City Tower - to join them at Argent's Piccadilly Place. The Government Office for the North West are understood to have a 30,000 sq ft office requirement.

It has also been announced that law firm Weightmans will leave Spring Gardens to take 20,000 sq ft at Piccadilly Place.

David Partridge, chief executive at Argent, said: "Hopefully the letting to the Highways Agency, will mean many more public sector deals come our way.

"It's good too to see law firms like Weightmans come to Piccadilly Place. Some people were sceptical that we could tempt them from Spring Gardens and Spinningfields."

[Manc Guy]

good times

[jrb]

Bakery is good news for 300 jobs

GREGGS plans to build a new £16m bakery in Openshaw - securing more than 300 jobs.

The firm has announced it will relocate from its existing site in Eccleshall Street, Clayton, to a 75,000sq ft bakery in Parkhouse Street, Openshaw.

The move follows the completion of a deal between the company, Manchester Council and regeneration body New East Manchester, supported by a £7m grant from the North West Development Agency.

New East Manchester will use the land at Eccleshall Street as part of a 400-home development, next to the proposed Metrolink line and Ashton Canal, off Ashton New Road.

Ian Pegg, managing director of Greggs North West, said: "As a major employer in east Manchester, we are delighted with the outcome of these discussions.

"It means we shall be able to keep the skills of the people in our business and also provide new opportunities for people.

"The new site will allow for continued expansion of the Greggs business here in the North West."

Construction work is expected to start in the autumn. The present factory employs 150 people in manufacturing, as well as office and distribution staff.

Robert Hough, chairman of New East Manchester, said: "It's good news that the company's future in east Manchester is now secure.

"This is an excellent example of where the public and private sector work in partnership."

[Irwell]

Originally Posted by jrb

"The new site will allow for continued expansion of the Greggs business here in the North West."

Should I start looking for the razor blades now then?

[jrb]

More good news if you've got an office to sell sell in central Manchester.

MANCHESTER is the world's number one target for international property investors.

So say researchers at Knight Frank, who claim that the city is top of investors' global hit list for shops, top for factories and warehouses, and third for offices.

The city's high profile is thanks to the relatively strong performance of the UK economy, and the relatively higher risks of investing in the emerging markets of Eastern and Central Europe.

Investors, who traditionally only bought in central London, have been tempted to Manchester - and to a lesser extent Glasgow and Birmingham - by the shortage of opportunities in the capital and the strength of Manchester's property market.

Manchester beat Moscow into second place as the most favoured retail city, with Prague in third place and London fourth.

Manchester was behind London in first place and Moscow in second place in the office market rankings, and beat Moscow, Prague and London to take top spot in the industrial rankings.

Joe Simpson, international research associate at Knight Frank, explained: "Manchester came out on top because its property market and economy performed well in the last few years, and the outlook for the next few years is strong."

"It's true that Manchester has an unusual property market - it's very disparate and unfocused, spread over a wide area and several different markets - but, like all the UK cities, it is very much less risky to invest in Manchester than many other places. Economically and demographically, there is little risk attached to Manchester for international investors, less even than in the European mainland."

"UK cities are considered a safe option by international investors - and Manchester is considered a safer city for investors than once it was. With the weight of money targeting the city, its prospects are good."

"There are so many investors looking to buy, and so many are looking beyond London, that the UK is ahead of the game, and Manchester is ahead of the rest of UK regional cities."

[jrb]

King Street unit sold

IRISH business is convinced the boot fits in Manchester.

A private Irish investor has paid more than £3m to buy the King Street building occupied by Jones Bootmakers.

Acting on behalf of a private client, WHR Property Consultants sold 47-49 King Street, which includes the shop at street level, with offices above, and totals 5,598 sq ft. Gary Scorah of WHR Property Consultants commented: "This transaction reiterates the strength of the Manchester freehold market - particularly in the sub-£5m mark.

"King Street is still one of the most sought after locations for both prime retail and office accommodation, and this was a unique opportunity to acquire in this popular city centre sector."

[Manc Guy]

Originally Posted by jrb

More good news if you've got an office to sell sell in central Manchester.

MANCHESTER is the world's number one target for international property investors.

So say researchers at Knight Frank, who claim that the city is top of investors' global hit list for shops, top for factories and warehouses, and third for offices.

The city's high profile is thanks to the relatively strong performance of the UK economy, and the relatively higher risks of investing in the emerging markets of Eastern and Central Europe.

Investors, who traditionally only bought in central London, have been tempted to Manchester - and to a lesser extent Glasgow and Birmingham - by the shortage of opportunities in the capital and the strength of Manchester's property market.

Manchester beat Moscow into second place as the most favoured retail city, with Prague in third place and London fourth.

Manchester was behind London in first place and Moscow in second place in the office market rankings, and beat Moscow, Prague and London to take top spot in the industrial rankings.

Joe Simpson, international research associate at Knight Frank, explained: "Manchester came out on top because its property market and economy performed well in the last few years, and the outlook for the next few years is strong."

"It's true that Manchester has an unusual property market - it's very disparate and unfocused, spread over a wide area and several different markets - but, like all the UK cities, it is very much less risky to invest in Manchester than many other places. Economically and demographically, there is little risk attached to Manchester for international investors, less even than in the European mainland."

"UK cities are considered a safe option by international investors - and Manchester is considered a safer city for investors than once it was. With the weight of money targeting the city, its prospects are good."

"There are so many investors looking to buy, and so many are looking beyond London, that the UK is ahead of the game, and Manchester is ahead of the rest of UK regional cities."

Fantastic!

[URBANISER]

Interesting jrb, I see in todays MEN Gordy Brown wants to put an end to all this speculative office building. It looks like he wants to tax 'empty' commercial property at the same rate as occupied, its currently taxed at only 50% if unoccupied. This will certainly kill of any major future speculative builds if it goes ahead.

[Architecty]

Originally Posted by URBANISER

Interesting jrb, I see in todays MEN Gordy Brown wants to put an end to all this speculative office building. It looks like he wants to tax 'empty' commercial property at the same rate as occupied, its currently taxed at only 50% if unoccupied. This will certainly kill of any major future speculative builds if it goes ahead.

This will also have the side effect of meaning that it may no longer be viable to build a residential block and pre-empt demand for retail units at the bottom. It can be rare enough in peripheral parts of Manchester for developers to take the risk to place ground floor commercial units as it is, when they could be waiting years for commercial demand in the area to be high enough (eg St Georges, Ancoats); this change in taxation could make even speculative retail in city centre location too much of a risk, and unlike office development, this kind of retail doesn’t tend to be built on the back of pre-lets.

The only angle I can think the Treasury is taking is that this will slow down property booms by always requiring demand before supply, instead of pre-empting as is normally the case at the moment. It is a massive risk in my opinion, could have a calamitous effect on the viability of mixed use schemes especially; which in turn could make new schemes return to the bad old ways of turning a blank façade to the street.

[Jongeman]

This is significant I feel. From today's Sunday Torygraph.

China cottons on to Wigan

As in many industrial towns in northern England, Wigan's textiles industry has long vanished, part of the inexorable long-term shift of large-scale manufacturing to lower-cost markets in eastern Europe and Asia.

Now, however, it's set to be revived as the result of an unprecedented investment by the Chinese government to establish Wigan as a manufacturing hub for the country's vast apparel and textiles trade.

The Sunday Telegraph has learned that Chinamex, a state-owned body which helps Chinese companies expand overseas, has agreed with a property developer and Wigan Borough Council to develop a brownfield site at Westwood Park on the fringes of the town.

Dubbed Textiles City by insiders, the project is understood to be viewed by Chinamex as an opportunity to create a manufacturing capability closer to Chinese companies' European customers.

As many as 1,000 companies belonging to China's main apparel and textiles industry body are understood to have expressed an interest in participating in the development, which would be expected to create hundreds of jobs.

According to people involved, Chinamex has agreed to take on up to 2m square feet, about half of which will be used for textiles and apparel manufacturing. The remaining space will be used for research and development and as a "showcase" to demonstrate China's manufacturing prowess to potential customers.

Lord Smith of Leigh, the Labour peer who leads Wigan Borough Council, recently visited Beijing to discuss the plans with Chinamex and the Ministry of Commerce. This weekend he said the development would form "a very important part of inward investment and regeneration in the area".

Textiles City is also expected to require some investment in new road links. The project is to be led by CGP, an Aim-listed British property company which this month unveiled a deal with Chinamex in Manston, Kent, to establish a focal point for Chinese technology companies. CGP was unavailable for comment. A detailed business plan is not expected to be tabled for several weeks.

Chinese officials are keen to see major industries gain footholds abroad as part of the globalisation of the country's economic ambitions. Last week, Beijing signalled that it intended to begin investing more aggressively some of its £655m in foreign exchange reserves internationally, and cited Britain as a likely destination for some of the money.

Its massive trade surplus, particularly with the US, has become the subject of contentious negotiations over the valuation of the Chinese currency, the yuan.

[The Longford]

Its come to something where British labour is cheaper than Chinese!

[Jongeman]

We are talking about Wigan labour though! Ahem.

Originally Posted by jrb

MANCHESTER is the world's number one target for international property investors.

So say researchers at Knight Frank, who claim that the city is top of investors' global hit list for shops, top for factories and warehouses, and third for offices.

It would be good if some of China's £655m in foreign exchange reserves could wing its way to Greater Manchester and its maritime side-kick of Metropolitan Liverpool. It doesn't seem a lot of money really, I thought it would be many billions.

[Cherguevara]

I presume this will be a location for some sort of small scale fashion clothes business, as the distance between China and Europe have been reported as making the former less competetive than more expensive local suppliers (Turkey primarilly) in supplying to the trend lead chains (Topshop, H&M. They, like the tea clippers of old need to get the newest most fashionable garments onto the shelves asap in order to defeat the competition. Having a local base would enable Chinese firms to be competetive on this front whilst keeping the less whimsical side of the business (socks, vests, shirts, plain t-shirts for moronic slogan priniting) in China.

I'm sure their are many places cheaper than Wigan, but they may not be as convienient.

[Cherguevara]

That must be a misprint. Reserve buying has kept the American economy afloat for over 5 years, it must be billions at least.

[Jongeman]

I'm not so sure about 'small scale'. How big is 2 million sq feet in layman's terms? How many B&Q warehouses/Tesco Extras is that?! I've really got no idea.

[The Longford]

The Trafford Centre is 1.6 million sq ft