Bill Greenhalgh

NWDA

Cluster Manager

Cluster Development Team

North West England

• £78 billion GVA

• 7 million People

• 14,000 sq km

• 350,000 enterprises

• 8 Universities

What is a Cluster?

A group of industries and organisations that are linked together in buying and selling relationships, or who share the

same infrastructure, customers or skills base and whose linkages enhance

competitive advantage - Prof. Michael Porter

Markets

What does a Cluster look like?

Core of Cluster

Related & SupportingIndustries

Infrastructure & Services

Market intelligencePackaging

Specialist Consultants

Industry bodies

Marketing /Design

Transport Logistics

Research Institutes

Universities

Colleges

Training Providers

Upgrading & innovative

institutions

Cogent SI

Cluster Analysis Drives...

• Business Support Structures• Supply Chain Development• Trade Development• Inward Investment• Innovation• Infrastructure • Skills

North West Aerospace Cluster

ResearchInstitutes

Colleges

Training Providers

Specialist Institutional Support

Aerospace MarketsInfrastructure, Site and Services (Generic)

Generic site and services

Related & SupportingIndustries (ie 2nd tier)

Weak

Core of Cluster

Insignificant

Medium

North West Aerospace Cluster: Structure

US aerospaceprograms

Strong

UK and European defence airframes

Europeanlarge civilairframes

Avionics

Inter-Industry Market Links

AutomotiveHeavyengineering

Power generation

Electronics

Aero engines

Core skilled engineers/ technicians

Key Europeancivil aerospaceplant

Prime UK military aerospacecontractorCluster-

core designers, manufac-turers

Specialist aerospace suppliers, consultants

Aero-engines

Rotary wingaircraft

Avionicssystems

Fasteners

Treated wire

Metal processing(alloys,heat, etc.)

Steel andsteel fabrication

Regionalcommercialaircraft

Regionalcommercialaircraft

Manuf.process equipment

Carbon-fibreyarns

ChemicalPetrochem.

Medical/Pharma.

Mair/UKRP/SBAC

Aircraftsystems: mechanicalelectrical

Not investigated

Regionaluniversities

(R&D)

Regionalagencies

Localauthorities

Education sector

(general)

Transportand physicalinfrastructure

Clusterorganisation –

NWAA

Aviationsector

Business finance

Spaceindustry

Chemical intermediates

Manmade Fibre manufacturers

Apparel Yarn spinners

Commission yarn dyers

Apparel fabric weavers

Apparel fabric knitters

Yarn dyers

Garment (CMT) manufacturers

Knitwear manufacturers

Footwear manufacturers

Multiple retailers

Independent retailers

Consumers

Wholesalers

Natural fibre growers

Technical yarn spinners

Interior textile yarn spinners

Automotive/aerospace components

Carpet tufters

Carpet weavers

Furnishing fabric weavers

Home textile weavers

Paper manufacturers

Nonwovens (durable)

Nonwovens (non durable)

Coaters and finishers

Technical fabric weavers

Range of Industrial/contract end users

Construction/building supplies

Medical supplies manufacturers

Protective clothing manufacturers

Software & hardware suppliers

Textile machinery manufacturers

Banks/venture capitalists

Agents/merchantsSpecialist consultantsTransport and logistics suppliers

Packaging materials

Apparel accessories

Garment finishers

Trade associations

Journalists/info

providersTextile

engineers

Universities

Testing organisation

s

Dyers & printers

OtherTechnical fabric knitters

Nonwovens (carpets)

Garment importers

Yarn importers

Fabric importers

Finished goods importers

Merchant Converters

KEY

No presence

Weak

Medium

Strong

Growing Influence

Dye stuff manufacturers

Process chemicals

Home textile making-up

Garment designers/ brand-houses

END-USERS

Labels & embellishments

Printers

Resin manufacturers Furniture

manufacturers

Wall coverings manufacturers

D Rigby Associates

North West Textile Cluster

Garments

Household

Technical

Implementation

10 year plan

Cluster Director

Strategy &Action Plans

6 months

Cluster Development Process

Research Engagement

Industry

NWDA

Cluster TeamsAcademia

Partners

Research

Industry

NWDA

Cluster TeamsAcademia

Research

5 months

Industry

NWDA

Cluster TeamsAcademia

Research

Partners

NWDA Cluster Development Programme

Industry Lead BiotechnologyDigital IndustriesAerospaceChemicalsFood & DrinkEnvironmental TechnologiesRenewable EnergyTextilesAutomotiveMaritime

BioNoWDigital Industries NWNorth West Aerospace AllianceChemicals NorthwestNorth West Food AllianceEnvirolinkRenewables NorthwestNWTexNetNorthwest Automotive AllianceMaritime NW

EnergyCreative IndustriesTourism

NWDA Head of EnergyNWDA Head of Creative IndustriesNWDA Head of Tourism

ConstructionFinancial & Professional ServicesAviationHealthcareSport

} }} Cluster Team ( Work in progress )}}

Further Information

Cluster

BiotechnologyDigital IndustriesAerospace

ChemicalsFood & DrinkEnvironmental TechnologiesRenewable EnergyTextilesAutomotive

MaritimeAll Others

Organisation

BioNoWDigital Industries NWNorth West Aerospace AllianceChemicals NorthwestNorth West Food AllianceEnvirolink

Renewables NorthwestNWTexNetNorthwest Automotive AllianceMaritime NW

www.bionow.co.ukwww.digitalindustriesnorthwest.orgwww.aerospace.co.uk

www. chemicalsnorthwest.org.ukwww.nwfoodalliance.co.ukwww.envirolinknorthwest.co.uk

www.renewablesnorthwest.co.ukwww.nwtexnet.comwww.nwautoalliance.com

www.maritimenw.comwww.nwda.co.uk

Website

Cluster Life Cycle

Ecotec 2003

Cluster Life Cycle

TIME

CLUSTER SIZE

CLUSTER

DEVELOPMENT

EARLY WATER- POWERD

LOCATIONS

GEOLOGY,CLIMATE &CULTURE

MECHANICALAND MARITIMEENGINEERING

CREATIVE/DIGITAL INDUSTRIESMULTIMEDIA

SPECIALISTTEXTILES

RECREATION/LIFESTYLE ACTIVITIES

ENVIRONMENTALLYFRIENDLY POWER

SPECIALISTCHEMICALS

“NICHE” MARKETS(E.G. LUXURY CARS)

BIO-MEDICAL

JOINT-VENTURES/CIVIL MODCONTRACTS

1700 1750 1800 1850 1900 1950 2000 2050

Cluster Evolution In North West England: 1700 Onwards

ENERGY/ENV. TECH

BIOSCIENCESRESEARCH

CHEMICALSPRODUCTION

STRATEGICALLYLOCATEDAIRCRAFT

PRODUCTION

URBANISEDSERVICE

ACTIVITIES

COTTONTEXTILES

COTTONTEXTILES

HIGHEREDUCATION

FINANCIALSERVICES

MEDIA, I.T.

COTTON EXCHANGE

NUCLEARPOWER

CLEANENERGY

FOOD &DRINK

TOURISM

RELOCATEDAUTOMOTIVE PROD

MOD

BIO

TECHNOLOGY

CO

NTR

OL

INS

TR

UM

EN

TS

RES

EA

RC

H A

CA

DEM

IC “

SP

IN O

FF”

TE

XT

ILE

MA

CH

INE

RY

SALT ANDMINERALS

STEAM POWERCOALFIELD

ORIENTATION

Prof. Ray Oakey, MBS – NWDA 2003

Evidence of Superior Economic Performance

• North West Regional Economic Strategy launched October 1999

• NWDA Cluster Development Programme launched March 2000

• Major progress in

– Biotechnology (Medical)

– Aerospace

– Chemicals

– Environmental Technologies

– Food & Drink

Earlier Evidence of Superior Economic Performance

• Lancashire Cotton

• Coal

• Chemicals

• Heavy engineering

– Steam Machinery

– Shipbuilding

– Power Engineering

Evidence of Superior Economic Performance

• Scotland

• Cambridge

– Digital Industries

– Life Sciences

• London

– Financial & Professional Services

“Problems” of Cluster Growth

• Congestion

• Shortages of Labour & Factory/Office Space

• Stagnation

Cluster CongestionSolutions

London

• Horse Manure Problem – 1million tonnes + 15000 dead horses in 1901

• The Tube– 1890 First Electric Line - City & South London

• The London Bus– 1910 B-type, 1956 Routemaster

• Docklands Light Railway• Congestion Charge (not a new idea)

Cluster CongestionSolutionsUK Transport - Innovation

• Horse Problems• Petrol Vehicles – post WW1• Diesel Lorries – post WW2• Ex Army Transport• Toll Motorways • Tilting Trains• “Low cost” Airlines

Cluster CongestionSolutions

Chicago

• The Great Fire - 1871• The EL - 1892• Low level streets (goods delivery)

Cluster CongestionSolutions

Lancashire Cotton Industry

• Rivalry between Liverpool & Manchester• The Bridgewater Canal – 1776• Liverpool & Manchester Railway - 1830• Manchester Ship Canal – 1894• East Lancs Road ( & high speed tram ) – 1934

Cluster CongestionSolutions

UK Food Industry

• Wholesalers & Corner Shops• Supermarkets - 1960s• Efficient as far as the shelf• Inefficient from shelf to the larder/freezer• Who sells the most petrol? • Who has the most retail grocery outlets?

Cluster Shortages Solutions

Expand the Cluster Boundaries

• USA Digital Industries– Chips to Japan, Taiwan etc– Software to India

• UK Textiles– Garment production to Morocco etc

• Financial & Professional Services– London Docklands– Call Centres

• Japanese Automotive & Electronics– Assembly plants in UK & Far East

Cluster Stagnation Solutions

Inward Investment (Innovation)

• UK Automotive– Japanese Production Systems

• UK Food– Ethnic foods from Asia

• USA Space Industry– Rocket Technology from Germany

Lessons for Cluster Growth

• Encourage Innovation

• Encourage Inward Investment

• Encourage Networking

• Appropriate Skills for today & tomorrow

• Encourage Market Development

• Constant Change is Here to Stay