lincolnshire research observatory opportunities for innovation and supply chains in lincolnshire...

Lincolnshire Research Observatory www.research-lincs.org.uk

Opportunities for Innovation and Supply Chains in Lincolnshire

Opportunities for Supply Chains and Innovation in Lincolnshire

Katy Thomas

Team Leader

Research and Information Team

Lincolnshire County Council



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



Research Programme

• Our Place in the Global Economy

• Opportunities for Greater Lincolnshire Supply Chains

• Opportunities for Innovation within the Greater Lincolnshire Traditional Industries



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



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



• Consolidation of suppliers, issues associated with international ownership, access to the supply chain by SME’s

• Short-term contracts and influence of large retailers

• Issues of engaging with businesses

• Availability of skilled labour

• Funding for R&D

• Potential for further development of established clusters

• Opportunities in the fresh produce sector, emerging renewable energy supply chain, health and care

Key Findings – Supply Chains



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 R&D 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



Cross Cutting Challenges

• Consolidation of suppliers

• Issues of international ownership

• SME access into the supply chain


• Funding for R&D

• Gaps in local supply chains

• Issues around legislation

• Innovation is reactive



Key Priority Sectors for the LEP

• Manufacturing and Engineering

• Agri-Food

• Renewables / Green Technologies

• Ports & Logistics

• Visitor Economy

• Health & Care



• Consolidation of suppliers

• International ownership

• SME access into the chain


• Funding for R&D

• Gaps in local supply chains

• Legislation

• Innovation reactive



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



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




• 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




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



Potential Cross Cutting Actions for the GLLEP

• Leading, influencing and lobbying

• Communication with our large producers/employers

• Dialogue with SME’s 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



• 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 R&D 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)

Potential Leading, Influencing and Lobbying Actions



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



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



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



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

• 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.

lincolnshire research observatory opportunities for innovation and supply chains in lincolnshire...

Documents

lincolnshire opportunities

lincolnshire cross

chains slide

opportunities potential

local supply chains

lincolnshire introduction

supply chain pressures

research projects