Presentation by Val Moon and Professor Susan Smith - UCLAN
Minutes:
Val Moon and Professor Susan Smith (both University of Central Lancashire) gave a presentation containing the results of a Productivity Study undertaken.
It was noted that in terms of overall productivity in Lancashire a calculation measuring Gross Value Added (GVA) per hour measured as a percentage relative to UK and the top 10 and lowest 10 scoring regions were presented.
Inner London – East scored over 140 GVA where as Lancashire scored slightly over 80 GVA.
It was noted that business in Lancashire had been consulted and requested to complete surveys. From this it was concluded that:
· Companies in Lancashire may be overestimating their productivity, some do not regard it as a managerial priority, and not many measure it.
· The notion that workplace flexibility could be used to improve productivity was not being embraced by a significant proportion of businesses.
· Investment in training and skills compared to the previous year was only seen in around a quarter of the businesses responding and only around a fifth had invested in research and development.
· Most of the business leaders in the research described themselves as “good” but fewer than half described themselves as ambitious and yet it has been found that these descriptions can be relevant to business productivity.
· To the extent that growth of businesses can be correlated to growth in number of employees, there is only a core of growing businesses in the region. However, there is ambition and intent amongst SMEs to achieve growth and it seems that SMEs are most interested in differentiation and innovation.
· There is good evidence to link stronger productivity in SMEs to their degree of internationalisation. However, the majority of SMEs surveyed for this work do not export.
· There is ambition and intent amongst SMEs to achieve growth and it seems that SMEs are most interested in new markets, training and innovation.
· The most common suggestion as a potential source of help with reducing obstacles to productivity was the LEP/local authorities.
In terms of recommendations to improve productivity, the board noted the following:
· To devise and deliver a campaign to educate SMEs about productivity and its importance.
· Flexible working practices are well documented as potentially influential in the improvement of productivity. More information and education about the potential benefits of flexible working should be made available and conveyed to SMEs in Lancashire.
· To devise policy and training that will encourage more business leaders to invest in skills and training for their workforce and research and development for their business.
· It is recommended to increase training, research and development and leadership skills amongst businesses in Lancashire. Given what is known regarding the contributions to productivity by the latter, this is likely to improve productivity.
· To share expertise in the areas of differentiation and innovation.
· The agenda of exporting and internationalisation should be brought even further to the fore amongst SMEs in Lancashire.
· To share expertise in the areas of accessing new markets, training and innovation.
· Services such as the BOOST business gateway and the projects funded by the European Economic Community support this agenda. A contingency/action plan should be created to ensure that this type of initiative continues.
Resolved: That the presentation on the Productivity Study be received and that the actions and recommendations be endorsed. In addition the Business Support Management Board requested that the Head of Service Business Growth, Lancashire County Council produces a report on Productivity and submits it to the full LEP Board meeting scheduled to be held in November 2018.