Opportunities for Supply Chains and Innovation in Lincolnshire

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Opportunities for Supply Chains and Innovation in
Lincolnshire

• Katy Thomas
• Team Leader
• Research and Information Team
• Lincolnshire County Council

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Introduction

• Gaps in knowledge identified through the Local
  Economic Assessment and Local Enterprise
  Partnership.
• Cross cutting themes recognised around supply
  chains and Innovation.
• 3 research projects conceived and commissioned
  through the LRO.
• Work carried out in the early part of 2012

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Research Programme

• Our Place in the Global Economy
• Opportunities for Greater Lincolnshire Supply
  Chains
• Opportunities for Innovation within the Greater
  Lincolnshire Traditional Industries

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Aims of the Research Programme

• To investigate barriers and opportunities for
  growth with an emphasis on key sectors, with
  cross cutting themes
• Building on available evidence bases such as the
  Local Economic Assessment
• To identify potential roles for the LEP (and
  other acting locally) in supporting existing
  priority sectors and emerging sectors and in
  enabling Lincolnshire to take advantage of future
  opportunities

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Key Findings Our Place in the Global Economy

• Developing and utilising our natural resources
• Co-operation between key food hubs importance
  of ancillary businesses
• Growth of Logistics - driven by development of
  infrastructure and maximising potential of
  location
• Potential of the energy corridor
• Importance of the potential of developments such
  as the engineering hub in promoting Greater
  Lincolnshire as a centre of excellence

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Key Findings Supply Chains

• Consolidation of suppliers, issues associated
  with international ownership, access to the
  supply chain by SMEs
• Short-term contracts and influence of large
  retailers
• Issues of engaging with businesses
• Availability of skilled labour
• Funding for RD
• Potential for further development of established
  clusters
• Opportunities in the fresh produce sector,
  emerging renewable energy supply chain, health
  and care

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Key Findings Opportunities for Innovation

• Re-active driven by supply chain pressures,
  competition, environmental factors e.g. water
  shortages
• Uncertainty impact of government legislation in
  some sectors
• Funding for RD leading to polarisation of
  producers (innovation in large international
  companies)
• Issues of knowledge transfer in a competitive
  market place potential for building knowledge
  transfer nationally, internationally and
  cross-sector
• Diversification to achieve greater return on
  investments e.g. renewable energy

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Cross Cutting Challenges

• Consolidation of suppliers
• Issues of international ownership
• SME access into the supply chain
• Availability of skilled labour
• Funding for RD
• Gaps in local supply chains
• Issues around legislation
• Innovation is reactive

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Key Priority Sectors for the LEP

• Manufacturing and Engineering
• Agri-Food
• Renewables / Green Technologies
• Ports Logistics
• Visitor Economy
• Health Care

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• Consolidation of suppliers
• International ownership
• SME access into the chain
• Availability of skilled labour
• Funding for RD
• Gaps in local supply chains
• Legislation
• Innovation reactive

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Specific Challenges
Sector Specific challenge
Manufacturing and Engineering Limited true clustering e.g. agri-engineering
Agri-Food International competition influence of large retailers
Renewables / Green Technologies Uncertainty around government legislation
Ports Logistics Increasing transport costs
Visitor Economy External influences e.g. weather
Health Care Supply chain dominated by large international companies Influence of NHS Commissioning
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Cross Cutting Opportunities

• Potential for Greater Lincolnshire to be promoted
  as a centre of excellence
• Buying groups/ joint purchasing/ collaboration
• Immediate opportunities for growth in the sector
• Potential for business co-operation / knowledge
  sharing
• Strong links with other priority sectors

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Cross Cutting Opportunities

• Potential as centre of excellence
• Buying groups/joint purchasing/ collaboration
• Immediate opportunities for growth
• Potential for co-operation / knowledge sharing
• Links with other priority sectors

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Cross Cutting Opportunities
Sector Specific Opportunities
Manufacturing and Engineering Build on current successes
Agri-Food Specialist providers of expertise exist in the area e.g. the Seafood Institute and National Centre for Food Manufacturing
Renewables / Green Technologies Potential of the energy corridor Potential for diversification from other sectors
Ports Logistics Role of logistics in the energy corridor
Visitor Economy Fantastic natural resources major development of some large sites taking place e.g historic Lincoln
Health Care Growing demand from an ageing population Already local growth in medical/dental practices, complementary health activities, and retail sales of medical and orthopaedic equipment
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Potential Cross Cutting Actions for the GLLEP

• Leading, influencing and lobbying
• Communication with our large producers/employers
• Dialogue with SMEs to understand, and help
  others to understand, opportunities
• Identification of emerging opportunities, driving
  partnership reaction, facilitating joint actions
• Promotion of Greater Lincolnshire and its
  priority sectors
• Identification and securing of LEP directed
  finance to support activities in Greater
  Lincolnshire

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Potential Leading, Influencing and Lobbying
Actions

• Create common message on promotion of GL and its
  priority sectors
• Promotion of Greater Lincolnshire as a centre for
  excellence based on the engineering hub
• The need for RD funding in particular sectors
• Issues of transport infrastructure and fuel costs
  as a barrier to growth
• Impact of visa restrictions on availability of
  very specialist workers and subsequently
  knowledge transfer into some sectors
• Changes to national policy (particularly
  agri-food, renewables)

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Potential SME Actions

• knowledge transfer business model innovation as
  well as technical, promotion of specialist
  providers of expertise (eg. the Seafood Institute
  and National Centre for Food Manufacturing)
  facilitation of networks
• accessing supply chains facilitation of buying
  groups/joint purchasing/collaboration, promotion
  of emerging supply chains such as those in the
  renewables sector
• Encouraging engagement with support programmes
  and ensuring business needs are understood by
  providers

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Specific Opportunities in Agri-food

• Promotion of innovation and added value knowledge
  transfer, improving SME knowledge of programmes
  and initiatives that they could target
• Sector concentration through North East GL to
  South east GL sectors very different but some
  similarities, specifically opportunities for
  ancillary businesses, need for workers and
  seasonal staffing, requirement for workspaces,
  transport and storage
• Facilitation of collaboration between large
  businesses
• Engagement of smaller ancillary businesses with
  large businesses and groups of collaboration
  businesses
• Identification and promotion of funding
  opportunities

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Potential for Building on Successes

• Using the example of engineering
• Strong sector with recent developments such as
  the engineering school, however limited true
  clustering for example in Agri-engineering
• How do we build on successful activities to make
  these sectors even better?
• Supply chain gaps/issues - dialogue with large
  and small businesses to increase awareness of
  local supply chains, understand needs and work
  with partners to support filling of local supply
  chain gaps
• Graduate level engineering skills work with
  large and small businesses to understand needs
  and to influence provision and supply of skilled
  labour
• Facilitating collaboration and knowledge transfer
  on innovation to address international freight
  and national transport costs
• Lobbying government on issues such as transport
  and fuel costs as a barrier to growth and visa
  restrictions which impact on the availability of
  very specialist workers and subsequent knowledge
  transfer into the sector

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Potential Further Work

• Exploration of how the energy corridor currently
  functions and how Greater Lincolnshire could
  benefit
• Further consideration of the strategic importance
  of all ports in the area including Boston and
  Sutton Bridge along with the new freight
  facilities in south Lincolnshire
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• Consideration to how Agri-engineering and
  innovation can specifically be supported e.g.
  encouraging and lobbying for demonstration
  activities on farms, technical centres etc.
• Further understanding on issues of international
  ownership of businesses impacts of ageing
  population.

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