5What is a resilient economy? One that is not adversely affected by an economic crisis - ie does not go into decline (Resistant)One that is adversely affected by an economic crisis but recovers to its former peak (Recovery)One that is adversely affected by an economic crisis but recovers to its past growth path (Renewal)Questions of what measure to use(GDP, employment, household income…)(Economic Crisis: Resilience of Regions – Cardiff University lead)
6Components of resilience BusinessEconomic structureSectoral diversityExport orientationProfitability and debtPeopleQualifications and skillsLabour market flexibilityLabour market adaptabilitySavings rateMigration patternsCommunitySocial networksBehavioural normsNon-market economyDisposable incomePlaceUrban structureAccessibilityNatural environmentTerritorial characteristicsGovernanceComplexity of cause and responseResponses will be spatially different – depending on local mix and “path dependency”6
7Preston – location and context Key: Cities with characteristics ofTourism/HeritageRegional ServicesIndustrialTravel-to-work areaTo GlasgowM6Ribble ValleyRailIrish SeaBlackpoolM55BurnleyPrestonBlackburnM65M61Note – brown arrows indicate direction of main travel-to-work movementsTo Manchester AirportTo LondonGreater Manchester
8Promoting Growth…through City Deal Partnership between Preston City Council, Lancashire County Council and South Ribble Borough council – comprising:City Deal Infrastructure Delivery Programme - £ 334m – 4 major highway schemes, community infrastructureCity Deal Investment Fund - £ 100m allocation from Lancashire Pension Fund for co-investment in housing and development schemes in city deal areaCity Deal Stewardship Board – retained HCA sale receipts (estimated at £ 37m)To unlock:20,000+ new private sector jobs17,420 net new homesNearly £ 1bn in additional GVA; and£ 2.3bn in leveraged commercial investment
9..and Promoting Fairness Living Wage – accreditation and promotion to local businessesCo-operative promotion – sponsorship, partnership, business support – e.g.“Simply Buyout” launch 19th November; Mondragon speaker 21st November with UCLANNew Credit Union coverage for PrestonInner East Preston Neighbourhood Plan – in train; Community Asset Transfer etc.Community Engagement work – community food production, guerrilla gardening etc.Community Wealth Building – draw inspiration from Ted Howard of the Democratic Collective/”Evergreen” Co-opSocial Forum – bringing civic society together to promote/campaign on
10STRATEGY Focus anchor institution purchasing locally Create new community-based, co-op businessesGreenLink to expanding sectors of the economy(e.g., health, aging, energy, food, waste & green technologies)Ensure financing and management to move to scale10
11Community Wealth Building (1) What is an anchor institution?“Sticky capital” that doesn’t get up and leaveTypically among the largest employers in most major urban areasLocal economic engines: employ large numbers of people; purchase large amounts of goods & servicesVested interest in surrounding communitiesTypically non-profitLargely untapped potential
12Community Wealth Building (2) Preston City Council, Lancashire County Council, Preston College, Cardinal Newman College, Lancashire Constabulary, University of Central Lancashire, Community Gateway (Housing) Association – all on board!Work with CLES for independent analysis and experienceDraw on Manchester experience and FSB national report on procurement spendActionUndertake baseline supply chain analysis for each anchor (take largest 300 contracts by value)Development of collaborative vision for local benefitActions with each anchor institution around process and practiceIdentification of sectors and services where there is scope to influence and derive more local economic benefitWork still in progress….
13Benefits of Local Procurement Local Procurement benefit to anchors:Better vendor servicing/better access to critical goods and services in crisis situation/decrease carbon footprint/lower costsLocal Procurement benefit to community:Increasing local employment/stabilizing neighbor-hoodsBuilding a network of inter-connected vendors, purchasers, financial institutions, training and higher education
14Emerging Findings - PCC PCC – total procurement spend £ 14.3m20% of spend on business activities suppliers14% spend within Preston LAD boundary69% of Preston spend in areas of deprivationKey gaps in business activities and manufacturing spend29% spend in LancashireKey gaps in business activities and other services
15Emerging Findings – across Anchors Relatively low levels of local spend across the institutionsCommitment to the project for four reasons:To support local employment and Living WageTo think differently about procurement practiceSpirit of co-operation and maximising benefitNeed for new models of supply
16Key IssuesHow do you define “local”? City boundary, FEA, PUA, sub-region?What do you track – spend or employment?What if a national company is a significant local provider/presence?Can you really identify local vendors if purchasers track by PO Box address and/or have multiple locationsHow do you build trust between the anchors?Are “gap” co-ops realistic in the UK context?Work with the grain of EU procurement rules – not as daunting as you might think
17Next Steps Finalise baseline supply chain analysis Identify gaps in spend and opportunitiesDraw together anchors and procurement specialists at a workshop (January 2014)Develop collaborative vision across anchorsTailor specific actions to each anchor. Might include:service commissioning (links to corporate priorities)procurement strategies (accessible portals, packaging, streamlining process & documentation)pre-procurement (work with local business networks, apprenticeships, local labour clauses, capacity building)Delivery (supplier networks, spend analysis & outcome monitoring, paying suppliers quickly)
18In difficult times - a continuing role for local intervention!