THE GOLDEN THREAD · the scenes to ensure other’s success. But The Golden Thread recasts the profession into the role of a ‘golden thread’ – a seam that runs through UK plc,

T H E G O L D E N T H R E A D T H E R E G I O N A L P I C T U R E

Foreword1 GoldenThread:

TheRegionalPicture3 Keythemesandnextsteps6 Regionaldeepdive1:

TheSouthWest12 Regionaldeepdive2:

TheMidlandsEngine18 Regionaldeepdive3:

TheCambridgeCluster24 Regionaldeepdive4:

WestLondon:HeathrowCorridor30 Regionaldeepdive5:

TheNorthernPowerhouse36 Researchmethodology,

acknowledgementsandreferences

Contents

T H E G O L D E N T H R E A D : A S T U D Y O F T H E C O N T R I B U T I O N O F P R O J E C T S A N D P R O J E C T

M A N A G E M E N T T O T H E U K E C O N O M Y

The objectives:� createasetofrobustandevidence-basedbenchmarkstatisticsaroundthesizeandcontributionoftheprofessiontotheUKeconomy

� raisetheawarenessoftheextentof‘projectification’,andoftheprojectprofession

� provideaplatformtoencourageawiderdebateonhowprojectscanbedeliveredbetter.

WesoughttoprovideabenchmarkforfutureresearchandgeneratedebatetobetterunderstandtheimportanceoftheprojectprofessionandthecontributionofprojectsandprojectmanagementtotheUKeconomy.

ForewordBackground on the report Asthecharteredbodyfortheprojectprofession,APM is committed to building the statusandimportanceofprojectmanagementasaprofession.Inthepastyear,APMhaslauncheditscharteredregisterandachievedthemilestonenumberof1,000CharteredProjectProfessionals,helpingtoraisetheprofileandstatusoftheprojectprofession.But,werecognisethereisstillalottodo,particularlyindemonstratingthebenefitsgoodprojectmanagementcanhavefororganisationswhetherprivate,voluntaryorpublic.ThislinksstronglytoAPM’smissiontoincreasethevisibilityandunderstandingofprojectmanagement’seconomicandsocietalcontribution.Webelievethisrapidlychanging

environmentcallsforamoreadaptiveprojectmanagementapproach,whichismoreinclusiveand responsive to the needs of society.An approach which builds a communityof credible, capable and trusted projectprofessionals delivering positive, effectivechange,acrossallsectorsandtoallstakeholders.

Surprisingly,thesizeandextentoftheprojectprofessionintheUKisstillopaqueandthatiswhyAPMcommissionedPwCtoresearchandbenchmark the contribution of the projectprofession to theUKeconomyandsociety.TheresultsfromthisresearchwerepublishedApril2019inthelandmarkreportThe Golden Thread (a study of the contribution of project management and projects to the UK economy and society).

I N T R O D U C T I O N

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O F U K E M P L O Y M E N T ( F T E s )

O F U K G VA

B I L L I O N O F A N N U A L G R O S S VA L U E A D D E D ( G VA )

M I L L I O N F U L L - T I M E E Q U I VA L E N T W O R K E R S ( F T E s )

ThecontributionofprojectsandprojectmanagementtotheUKeconomy

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£186bnProfessionalandbusinessservices

£113bnConstructionindustry

£115.3bnFinancialservices

£35.5bnMarketingprofession

A hidden profession revealed – project management contributes approx. £159.5bn to UK economy and employs almost 1 in 12 workers

The Golden Thread research provided, forthefirsttime,robustdataonthecontributionoftheprojectprofessiontotheUKeconomy.It highlighted the significant impact of theprofessionacrossmanysectorsandrevealedsomeof thechallenges thatare justaroundthecorner.Theaimistogeneratedebateanddiscussionamongprojectprofessionalsaroundhowtotaketheprofessionoutoftheshadowstoembarkonthenextstageofitsevolution.

DebbieDore,chiefexecutiveofAPMwelcomedthepublicationoftheoriginalreportstating:

“Projectmanagementhasfortoolongbeencastasa‘Cinderella’or‘hidden’profession,workinghardbehindthescenestoensureother’ssuccess.ButThe Golden Threadrecaststheprofessionintotheroleofa‘goldenthread’–aseamthatrunsthroughUKplc,helpingtodevelopnewservices,drivestrategicchangeandsector-widereform.Inshort,thisreportfindsthattheprojectprofessionisathreadtrulywovenintothefabricofUKsocietalandeconomicsuccess.”

ContributionofotherprofessionsandindustriestotheUKeconomy

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TheGoldenThreadresearchbyAPMhasgeneratedsignificantinterestintheeconomiccontributionoftheprojectprofessionbothwithintheUKandbeyond.Followinghighlypositivefeedbackandnumerousrequestsforfurtherinformation–particularlyregionalandsectoraldetail–APMcommissionedPwCtoundertakeasecondphasetobuildontheoriginalresearch.ThisdeepdivefocusedonregionalanalysisandthreekeygrowthsectorsthatAPMidentified:pharmaceuticalsandhealth,charitiesandSMEs.Inthisreportwehavesetoutthefindingsoftheregionaldeepdiveanalysis.Thesectoralanalysiswillfollowatalaterdate.

The project profession is a major contributor to the economy in all regions of the UK, both in terms of supporting employment and driving economic outputs. Whether it be mega construction projects like Hinkley Point C in the South West, the programme of cultural events planned for Coventry (the UK’s City of Culture in 2021), or the vast array of projects undertaken by SMEs – projects and project professionals support economic growth the length and breadth of the country.

Someareas,suchasLondonandtheSouthWestdisplayhigherconcentrationsofprojectprofessionalsthan might be expected, compared to generalemploymentlevelsintheseareas.Thiscanbeexplainedbythelargenumberofmajorprojectsintheseareasandtheirassociatedsupplychainnetworks,boostingeconomicgrowth,whichinturncreatesfurtherprojectopportunities.Thiswillbeexploredfurtherintheregionalsnapshotslaterinthisreport.

K E Y T H E M E S A N D N E X T S T E P S

This report builds on the original Golden Thread report (APM and PwC, 2019) and focuses on the regional perspective for project management activity, looking at five specific areas of economic activity in the UK.

Key themes Although each of these regions has its ownchallenges,opportunitiesandgrowthdrivers,thesedeepdiveanalysessuggestthattherearecertainoverarching themes from our interviews withprojectprofessionalsandlocalindustryfigures.

ConnectivityIntermsofbothtransportanddigitalinfrastructure,connectivity is a central means of unlockinganddrivingeconomicgrowth.Severalregionsface key infrastructure challenges in both thetransportanddigitalspace.Asaresult,projectprofessionalsdeliveringmajorinfrastructurewithintheregionscoveredareanessentialcomponentoflocaldevelopment.

UncertaintyBothpoliticalandeconomicuncertaintywascitedasanongoingchallenge,resultinginchangeablelevelsofinvestment,delaystoprojectworkandbackloggedprojectpipelines.Asaresult,planningfor an uncertain future and flexibility were

highlightedaskeysoftskillsforprojectmanagersinthefaceofthecurrentclimate.

Strategic planning Projectprofessionalshighlightedaneedtoplanwellandintegrateimpactassessmentsfromthefirststageofeveryproject,toensuretheoutcomesaremeasurable.There isa recognition that inlightofthesethemes,andasthenatureofworkchangesandbecomesmoredynamic,goodprojectmanagementhasbecomesignificantasameansofcoordinatingworkstreamsandembeddingchange.

Measuring benefitsAssessing and embedding the results ofprojectswashighlightedasthekeyfinalstep,reflectingawidespreadviewthateffectiveprojectmanagement goes beyond ‘box-ticking’, anddeliversdemonstratablechangeandbenefitsataregionallevel.

Creating sustainable growth Identifiedasakeyaimacrosstheregionscovered,sustainablegrowthreferstoanincreasethatiseconomicallymaintainableinthelong-term,and‘clean’andbeneficialfortheenvironment.Thishasresultedinthedevelopmentofinnovativeprojectsintendedtoboostlocaleconomieswhilesustainingtheregions’natureandresources.

Skills shortages and future needsAcross regions, encouraging the use of andawarenessofprojectmanagement techniquesacrossindustrieswillhelpincreasedemandforprojectprofessionals.Itwasidentifiedthatraisingawarenessofprojectmanagementasacareerpathcouldhelpretainlocalgraduatesandattractnewtalent.Upskillingcurrentworkforcesisthoughttobenecessarytohelpemergingsectorsgrowandattractfurtherinvestment.Futureneedsineachregionarehighlyvariableanddependentoneachlocation’suniquesectoralproductivityandcurrentinfrastructure.

Next steps � Look out for Sectoral analysis of project

managementactivityinpharmaceuticalsandhealth,charityandSMEs.

� TheresearchwillbedisseminatedacrosstheprofessionandseektodeepenthepicturesetoutintheoriginalGolden Threadreporttoprovideamoregranularviewofregionalprojectactivity.

� Wewillusethisresearchtohelpdeveloptheworkwearedoingtobuildthecapacityoftheprojectprofession–andinparticularlookattheskillsneededtoensuretheincreasinguseofprojectstodelivereconomicandsocialchange.

� Wewelcomefeedbackon the researchandreport to help inform future work. Pleaseshareanyfeedback,[email protected].

P H A S E 2 – N E W R E S E A R C H G O L D E N T H R E A D P H A S E 2 – R E G I O N A L D E E P D I V E S

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Scotland

189,000Projectprofessionaljobsbyregion(fulltimeequivalents)

£13.95bnContributionoftheprojectprofessionintermsofGVAbyregion

8%UKemployment(%)

9%Projectmanagementemployment(%)

North East



12%UKemployment(%)


North West



11%UKemployment(%)


N.Ireland



3%UKemployment(%)


Midlands



16%UKemployment(%)


Wales



5%UKemployment(%)


South West



9%UKemployment(%)


P R O J E C T M A N A G E M E N T A T A R E G I O N A L L E V E L

ProjectmanagementiskeytoregionaldevelopmentProjects–andgoodprojectmanagement–areintegral to regional economic growth. Frominfrastructure‘megaprojects’tolocalcommunityprogrammes, the successful embedding ofprojectworkcreatesavirtuouscycle,boostingregions’economiesandunlockinginvestmentthat,inturn,createsfurtherprojectopportunities.

Asaresult,APMidentifiedaneedfordetailedregional analysis to bring the connectionsbetweenprojectsandeconomicdevelopmentto life.Thisexamination focuseson fivekeyhubs–theseareasareinterestingfromaprojectperspectiveastheirmajorindustrysectorsareevolving,creatingnotableopportunityandneedforprojectmanagement.Ourresearchconcludesthatprojectmanagementmakesasignificantcontributiontotheregionscoveredinthisstudy,andadditionallyhasthepotentialtomitigatechallengesandbolstergrowthmovingforward.

ContributionoftheprojectprofessionintermsofGVAbyregion

Legend

Projectprofessionaljobsbyregion

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South East



14%UKemployment(%)


East


£7bnContributionoftheprojectprofessionintermsofGVAbyregion

10%UKemployment(%)


London



14%UKemployment(%)


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Research by APM and PwC Research reveals that 16% of the UK’s project management workforce is based in the South West – almost double the proportion of the UK’s total workforce based in the South West, at 8.7%. The South West was therefore selected as a key region in order to explore the reasons behind this trend and illuminate the sectors in the South West driving the demand for project professional skills.

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The South West is one of the largest geographical regions in the UK. A mainly rural region containing two national parks and 700 miles of coastline, it has a thriving tourism sector and a long-standing agricultural industry. Further north, Bristol, the area’s largest city, has long been considered an engineering hub which continues to draw investment into the region.

AnalysisbyPwCResearchindicatesthattheprojectprofessionintheSouthWestregioncontributes£24.3billioninGVAtotheUKeconomy.Intermsoffull-timeequivalentjobs,PwCestimatesthattheregionemploys331,000projectprofessionals,or16%oftheprofession’stotalUKworkforce.Thisissignificantlyhigherthanexpected,giventhattotalemploymentinthesouthwestregionis8.7%oftheUKtotal.

Several factors drive the disproportionatelyhighlevelsofprojectmanagementactivityintheregion.ThehighprofileHinkleyPointCnuclearpowerplant,currentlyunderconstruction,hasstimulateddemandforprojectmanagementskills

tosuccessfullydeliverthismegaproject.Ithasalsogeneratedasignificantsupplychainofsmallandmediumsizedenterprisesintheregion.HinkleyPointChashelpedestablishtheSouthWestasanenergyhub,boosting the localenergyandenvironmentaltechnologyindustries.

Inaddition, theSouthWestbenefits fromthehistoricconcentrationofengineering,aerospace,defence and marine activities around BristolandSomerset.Theareahasbenefittedfromadiversification of industry and infrastructureinvestment,butsomeareasstrugglewitheconomicunderdevelopment,andthereisanin-regionnorth/southdivide.

Whilethenorthernpartoftheregionbenefitsfrom strong industry sectors centred aroundengineering,theemergenceofdigitalindustriesinthesouthernpartoftheregionishelpingtodiversifytheeconomyandboostareaswithmoresluggishgrowth.

Despiteitsdiverseanddynamiceconomy,keychallengestheSouthWestfacesincludebuildingadequateinfrastructuretomeetgrowingdemand,

adapting to new digital technologies and skillgapswithintheregion.Theregionhasastrongreputationforhighereducationbutcanstruggletoretaintopgraduatesandhasarelativelyolderpopulationasa result.Additionally,economicgrowthintheSouthWesthasbeenweakerthanintheUKasawholeinrecentyears(1).

The government has continued to commit todevolutioninthearea,givingmoreautonomytolocalcouncilstomakeinvestmentbasedontheneedsoftheiruniqueareas(2).Keygrowthstrategiesintheregionfocusoncapitalisingonthediverseeconomyandimprovingdigitalinfrastructuretoincreasethecompetitivenessofbusinesses.TheoverallaimistoshowcasetheSouthWestasaleadinghubfortechnologicalanddigitalinnovation.

TheSouthWesthasasmallerconcentrationoflargerfirmscomparedtotherestofthecountry,alowerlevelofbusinessstart-upsandlowervalueofexports.Supportingstart-upsanddrivinginnovationisakeystrategylaidoutbythegovernmentandLocalEnterprisePartnerships(LEPs)(3).

Key Facts and Figures

Key Industries:Tourism,agriculture,engineering,aerospace,defence,marine,photonics,nuclear,digitaltechnology

S E C T O R B R E A K D O W N : T H E S O U T H W E S T

5.6mPopulation

(ONS2018mid-yearestimates)

£24.3bnGVA,projectprofession

(PwCanalysis)

331,000 jobsFTAprojectprofessionals

(PwCanalysis)

9%ProportionofUKtotalemployment(2018ONSLabourForceSurvey)

T H E S O U T H W E S T 7

BuoyantSectorsNuclear TheconstructionofHinkleyPointChasattractedhighlyskilledprojectprofessionalsfromacrosstheUKtotheSouthWestandhasprovidedahugeboonforSMEs involved in thesupplychain.LocalLEPHeartoftheSouthWestandtheWestofEnglandCombinedAuthorityhavecollaboratedwithEDFEnergyandtheWelshGovernmenttoformtheHinkleySupplyChainProgramme,whichaimstoassistlocalfirmsinbiddingforandwinningsupplycontractslinkedtoHinkleyPointC’sconstruction(4).

Furthermore, thismegaprojectwill increasedemand for housing developments andimprovedtransportnetworks–allofwhichwillneedskilledprojectprofessionals.

The region also includes a nuclear sectorclustergroup–NuclearSouthWest–whichisapartnershipbetweenindustry,academia,localbusinessesandpublicsectorstakeholders(5).

OthermajorprojectsintheSouthWest’snuclearsectorinclude:

� Decommissioning of two nuclear powerstationsinBerkeley(Gloucestershire)andWinfrith(Dorset).

� £1.8millionnucleardefenceprogrammeinDevonport(Plymouth).

Defence � TheMinistryofDefencehasastrongpresence

in the region. DE&S and the SubmarineDeliveryAgency(SDA)headquartered inBristolemployaround11,500people,ofwhichanestimated3,000areprojectprofessionalsorengineersinvolvedinprojectmanagement.Thisfacilityisservicedbyasignificantsupplychainofsmallandmediumsizedbusinessesintheregion.

� GovernmentCommunicationsHeadquarters(GCHQ), the intelligence and securityorganisationresponsibleforprovidingsignalsintelligenceandinformationassurancetothegovernmentandarmedforcesoftheUK,islocated in Cheltenham, Gloucestershire.GCHQ employs in the region of 6,000employees,withanestimated10-15%beingprojectprofessionals.

� Babcock International works across themarine,nuclearanddefencesectorsandhelptosupporttheUKRoyalNavy.ThecomplexengineeringprojectsthatBabcockcarriesoutatDevonport(Plymouth),includingrefittingtheHMSVengeance,createsdemandforhighlyskilledprojectprofessionalsinthearea.

AerospaceTheSouthWestisagloballysignificantaerospaceregion–thelargestaerospaceclusterintheUK–andhometomanymajorplayersintheindustry,plusanextensivesupplychain.Asanindustry,aerospace is a major employer of in-houseprojectprofessionals,whichsitwithinthemajorinternationalaerospacecompaniesintheregion.

Supported and continued growth in theseindustriesandincreasedintegrationwithdigitaltechnologywillincreasetheneedforprojectprofessionalsintheregion.

MarineTheSouthWest ishometoarobustmarinesector,includingtwoofthelargestluxuryyachtmanufacturersintheworld,theOceansgatedevelopmentatSouthYardinPlymouth–oneof the largestdockyards inEurope,andtheThalesGroup,also inPlymouth, linking theaerospaceandmarineindustries.Themarinesectoroverlapswithnumerousotherindustries,includingrenewables,advancedengineering,design and manufacturing, and robotics.TheuniversitiesofPlymouthandExeterleadtechnologyandinnovationaroundthemaritimeindustryandenvironmentalsectors.

DigitalWhilethenorthernpartoftheregionbenefitsfromstrongindustrysectors,theemergenceofdigitalindustriesinthesouthernpartoftheregionishelpingtodiversifytheeconomyandboostareaswithmoresluggishgrowth.MajordevelopmentsincludetheUKHydrographicOfficeandMetOfficeinExeter,bothofwhichprovidedatathatcanboostactivityintheSouthWest’ssignificantmarinesector.

The expansion of digital capabilities in theSouthWest is likelyto increasedemandforexperiencedprojectprofessionalsandopenmoretrainingopportunitiesforthosewantingamoveintotheprojectprofession.

“WhyaretheresomanyprojectprofessionalsintheSouthWest?Icantellyouintwowordsandoneletter–HinkleyPointC.It’soneofthemajornationalprojectsandthewholeregionisbenefitting.”

(Research respondent, South West)


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MajorProjectsIncludingthepre-eminentHinkleyPointCproject,majorprojectsintheregionfocusonimprovinginfrastructure and increasing technologicalcapabilities.Driversfortheincreaseddemandforprojectprofessionalskillsintheareacentrearoundaerospace,defenceandmarine/environmentaltechnologies.OtherkeycorporatesintheregionincludeLeonardo,ThalesandMsubs–furtherenhancingdemandforprojectprofessionals.

Examplesofmajorprojects

“Ifwecanincreasetheuseofdigitaldataintheagriculturalandtourismsector,thosebedrockpartsoftheeconomy,itwillhelpgrowproductivity.”

(Research respondent, South West)

A303 Amesbury to Berwick Down£1.5bn-£2.4bn2020-2026

South West Route Capacity£1.2bn2012-2020

Hinkley Point C£19.6bn-£20.3bnProjectapprovalin2016,construction2018

9

“TheSouthWestisalargeanddiverseregion.Bristolisathrivingcity,youcouldsayithasmoreincommonwithLondonandBirminghamthanthesouthern,ruralareashere,whichstrugglealotwitholderpopulationsandlessindustry.”

(Local economic expert)

RegionalChallengesDespite the obvious growth and buoyancy in the region, looking forward, the south west faces several challenges if it is to further expand.

The Tech CrunchGrowthofdigitalandAIwashighlightedinourresearchasamajorbenefitandasachallenge–knownasthe‘techcrunch’–astheSouthWest’sworkforceandinfrastructureadaptstosupportthenewindustry.Universitieswillbekeystakeholdersinthischallenge,helpingtodriveinnovationandbringintoptalentfromaroundtheworld.ExeterandPlymouth’senvironmentalexpertiseanddatacapabilitieswillbeimportantingrowingtheeconomy,especiallyintherelativeabsenceofbigbusinessesintheregion.

Traditional sectorsFromaprojectperspective,theSouthWestbenefitsstronglyfromitsheavyengineeringhistory. However, certain subsectors ofengineering – such as shipbuilding – areperceivedtobelessdiverseandmoretraditionalintheirthinkingandapproaches.Thiscaninhibitcompaniesfromtakingfulladvantageofnewproject approaches and techniques. In theopinionofourlocalexperts,theseindustrieswillneedtoincorporatenewwaysofworking,embracediversityandbewillingtoadapttonewprojectmanagementsystemsinordertogrowtheprojectprofessionwithintheseindustries.

The urban/rural divideClustering of industries around the regioncancreateskillsgapsinsomeareas.Devon,

Somerset and Cornwall have a higher thanaverageconcentrationoftourismactivity,butasmallernumberoflargeremployerscomparedtotheNorthwhereaerospaceandtechnologycompaniestendtocluster.

Skills shortagesAlthoughtheregionattractstopgraduatesfromacrosstheUKtoitsuniversities,particularlyinthemarineandengineeringindustries,itstrugglestoretainthemandmanyleavetheareaaftergraduation. To combat this, universities areattemptingtocreatea‘vortex’toretaintalent,byprovidingmoreopportunitiesandencouragingstart-ups.ExeterScienceParkwasdevelopedtomeetthispurpose,byprovidingahubandsupporttostart-upsspecialisinginSTEMsubjects.

GrowthDriversCollaboration between sectorsEngineering,aerospaceandmarinetechnologiesareestablishedindustriesthatcontinuetoseegrowth;keycorporatesinthisspaceincludeAirbusandRollsRoyce.Aerospaceinparticularisatech-focused,cuttingedgeindustrythattendstobeproactiveandlookingtoadoptnewwaysofworking,whichcandrivedemandforprojectprofessionals.

Furthermore, Hinkley Point C represents amassiveopportunityforbusinessesinthesupplychainfornuclear,whichalsoincludescurrentdecommissioningprojectsaroundHinkleyPointAandOldburynuclearstation.

Incontrast,digitalanddataisanemergingsphereintheSouthWestandisgrowinginimportance.Encouragingcollaborationbetweentheenergy,engineeringanddigitalsectorswillhelpencourageinnovationanddrivegrowthintheregion.Projectprofessionalshavetheopportunitytoplayanimportantroleinthisintegration,withprojectmanagement methodologies beneficial incoordinatingworkstreams.


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B I L L I O N G VA O F P R O J E C T P R O F E S S I O N A L S

P R O P O R T I O N O F U K T O TA L E M P L O Y M E N T( O N S , 2 0 1 8 )

P R O P O R T I O N O F U K P R O J E C T P R O F E S S I O N A L J O B S( P W C R E S E A R C H , 2 0 2 0 )

F T E O F P R O J E C T P R O F E S S I O N A L S

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The Midlands Engine is a coalition of councils, combined authorities and LEPs, universities and businesses across the region. The coalition aims to establish the Midlands as the ‘growth engine’ of the UK. We were interested in exploring how project management is helping to deliver the Midlands Engine strategy, from major transport projects like High Speed 2 to smaller local programmes improving quality of life throughout the region.

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What is the Midlands Engine?The Midlands Engine is a coalition of councils, combined authorities, LEPs, universities and businesses across the region. This coalition is working with the UK Government to form a collective identity and voice for the region, and establish it as England’s ‘growth engine’, capable of competing with the South East and the Northern Powerhouse.

Thiscollectiveidentity,bringingtheEastandWestMidlandstogether,isintendedasameansofattractinginternationaltradeandinvestment.TheMidlandsEngineisalsofocusedonincreasingeconomicgrowthandqualityoflifefortheregion,bygeneratingaddedvaluethroughlocalauthorityandenterprisepartnerships.

Inits‘VisionforGrowth’,theMidlandsEnginesetsoutfivepriorityareasoffocus:connectingtheMidlands,investing in strategic infrastructure, growinginternational trade and investment, increasinginnovationandenterprise,andshapinggreatplaces[tolive,work,learnandvisitfromtheVision.]


Key Industries:Advancedmanufacturingandengineeringservices,retail,automotive,transport,defence,medical,technology,sportsindustryandresearch.

PwC’s analysis indicates that the project profession in the Midlands contributes £20.8 billion in GVA to the UK economy. In terms of full-time equivalent jobs, PwC estimates that the region employs 284,000 project professionals, or 13% of the profession’s total UK workforce. This is slightly lower than expected, given that total employment in the Midlands region equates to 16% of the UK total.

Fromaneconomicperspective,theMidlandsisnationallysignificantduetoitsstrongindustrialheritage.TheregiontodayaccountsforafifthoftheUK’stotalmanufacturingcapability(6).Traditionally,the East Midlands has been focused on lightmanufacturing(textilesinparticular),whiletheWestMidlandsisknownforadvancedmanufacturing.

While manufacturing is still essential in theMidlandseffortstodiversifytheeconomyhaveledtothedevelopmentofkeyservices,encompassingrealestateactivity,businessservices,financialandinsuranceactivities(7).Retail,defence,sportsresearch and medical technology have alsodevelopedaskeyindustrysectors.

Despitethesestrengths,theMidlands’economyfacescertainchallenges.ThereisawideninggapinproductivitylevelsbetweentheMidlandsandtherestoftheUK,andanacknowledgementthatelementsof theMidlands’economicpotentialremainuntapped.

Asaresult,theMidlandsEnginewasdevelopedbytheUKGovernmentasastrategicinitiative,intendedtoestablishtheMidlandsasa‘growthengine’fortheUK,abletocompetewithLondon,theSouthEastandtheNorthernPowerhouse.TheinitiativeunitestheEastandWestMidlandsunderacommonidentity,capableofattractinginternationalinvestment(8).

S E C T O R B R E A K D O W N : T H E M I D L A N D S E N G I N E

T H E M I D L A N D S E N G I N E

10.7mPopulation



(PwCanalysis)

284,000 jobsFTAprojectprofessionals

(PwCanalysis)

16%ProportionofUKtotalemployment(2018ONSLabourForceSurvey)

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“WilltheMidlandsbecomethatservicestationthatnoonereallywantstogoto,buttheyalljuststopoffatontheirwayfromtheSouthEasttotheNorthernPowerhouse?”


BuoyantSectorsManufacturingTheregion’straditionalandmajorindustries,advancedmanufacturing(intheWestMidlands)andlightmanufacturing(intheEastMidlands)are key contributors to the local economyand major drivers of project demand. Themanufacturingsectorisparticularlyimportantdueto thesupplychain itcreates,boostingsmallerbusinessesinthearea.

AutomotiveTheMidlandsissometimesdescribedastheUK’s‘vehicleheartland’andhasastrongautomotiveindustry, includingmajorUKmanufacturerssuchasAstonMartinandJaguarLandRover.Inadditiontoitsownmanufacturingactivity,theMidlandsautomotivesectorgeneratesprojectopportunities through strong investment ininnovationandnewtechnologies.

AerospaceTheMidlandsishometoanotableaerospacecluster,centredaroundRolls-RoyceinDerby,(whichisoneoftheleadingmanufacturersofaircraftengines)andaircraftcontrolssystemsmanufacturersinBirmingham,Wolverhamptonand Coventry. Like the automotive sector,aerospaceistech-focusedandinnovative.Asa result,projectprofessionals reported thatcompaniesinthissectortendtoproactivelytrialandadoptnewwaysofworking,includingnewprojectmanagementtechniquesthatenablethemtocoordinatemultipleworkstreams.


FutureOpportunitiesHS2Asamajorprojectinandofitself,theconstructionofHS2isahugeemployerofprojectprofessionalsnationwide.However,theimpactoftheprojectiswide-reaching,creatingavastsupplychainandboostingthelocaleconomy.Perhapsmoresignificantly,theconnectivitythatHS2isforecasttodeliverisanticipatedtostronglyboosttheregion’seconomyandstimulateprojectdemandinothermajorsectors.

Science, research and techThe Midlands is home to a robust researchbasebyvirtueofits20universities,inparticularBirmingham, Warwick and Nottingham,whichareinthetop150intheworldrankings,and Loughborough University – renowned

forsportscience.TheEastMidlands isalsoestablishing itself as a tech centre, notablythroughthepresenceof theLoughboroughUniversity Science and Enterprise Park, amajortechhubthatadditionallyhashadplansfor a second manufacturing and office hubapproved. The science, research and techindustry in theEast Midlands is planned toreceiveafurtherboost,withthe£100millionLeicesterSpaceParkreceivingthegreenlight.Significantly,theplannedeasternlegofHS2Phase2willconnect theEastandtheWestMidlands,providingtheopportunitytolinkEastMidlands’universitiesandsciencecentreswithadvancedmanufacturersintheWestMidlands:this is forecast to increaseopportunitiesbytranslatinginnovativeresearchintorevenuefortheregion.Additionally,QueenElizabeth

HospitalBirmingham’sstatusasaworld-leaderininnovativemedicalresearchwillcontinuetoattractskilledprojectprofessionalstotheregion.

Green projectsNotableexamplesincludethedevelopmentandmanufactureofultra-lowemissionandelectricvehicles,leveragingtheregion’sautomotiveheritageandexpertise.Thisprojectcomplimentsotherkeyprojectsandareasofdevelopmentintheregion–namely,sustainability,transportandhousingconstruction(throughtheadditionofchargepoints).LocalcouncilsandLEPsarealsodevelopingprogrammesaroundcyclepathregeneration,inordertoeasecongestion,andimprovetheregion’senvironmentalfutureaswellasitseconomicoutlook.

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MajorProjectsAnumberoflarge,highprofileprojectsbasedintheMidlandsareconnectedwiththeMidlandsEngineinitiative.Thebest-knownoftheseisHighSpeed2(HS2),thegovernment’srailinfrastructureprojectintendedtoimproveconnectivitynotonlyintheMidlands,butbetweentheNorthandSouth.OthermajorprojectsontheInfrastructureandProjectsAuthority(IPA)MajorProjectsPortfolioincludethe2020CommonwealthGamesandtheMidlandsMainLineProgramme.

ProjectprofessionalsintheMidlandshighlightthatthereisachallengeandanopportunityaroundthedeliveryofthesemegaprojects,intermsofensuringthatthelocalcommunitycancontinuetoreapthebenefitsinthefuture.ThisincludesemployingalocalworkforcetoworkonHS2,andconvertingtheCommonwealthGamesathletes’villageintohousing,aswasdoneinEastLondonfollowingthe2012Olympics.


“GreaterBirminghamisarealdigitalhub.Thishasbeenagreatdriverofeconomicdevelopment,butit’simportanttobalancethiswiththehumanside.Weneedtodevelopourworkforcesothatwearegrowingthenumberofjobsavailablealongsideourtechadvancements,andnotcreatinggrowththatoutpacesskills,orreplaceshumanswithmachines.”

(Research respondent, Midlands)

Midlands Main Line Programme £514m2014-2023

Coventry UK City of Culture 2021 £8.5m to invest in related projects2020-2021

Commonwealth Games 2020 £778m2017-2020

High Speed 2 Openingintwophases:2028-2031and2035-2040

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GrowthDriversBuilding connectivityTheMidlands’ favourable locationmeans ithasthepotentialtobecomeahubbetweenNorthandSouthandconnectneighbouringregions.TheimprovementtotransportlinksthroughmajorprojectsisacorecomponentoftheMidlandsEnginestrategy–mostnotablythroughHS2–andwouldenabletheregiontofullybenefitfromitscentrallocation.

Establishing a Midlands identity OneofthecornerstonesoftheMidlandsEnginestrategy is establishing a strong, collectiveidentityfortheMidlands(encompassingboththeEastandWestMidlands).Itisproposedas

akeymeansofpromotingtheregionasaglobaleconomy and thus attracting internationalattention and investment – mitigating thedownturnsthatthelocaleconomysufferedasaresultofglobalisationinthepast.

Quality of life AshousingpricesriseandcongestionissuesareincreasinglyhighlightedinLondonandothermajorEnglishcities,localcouncilandLEPfiguresintheMidlandshavetakentheopportunitytopromotetheMidlandsasanattractiveplacetolive–beinglesscostly,withagoodqualityoflifeandstrongemploymentopportunities.Thesuccessoftheseinitiativeswouldhelptoresolvesomeoftheissuesaroundskillsshortagesintheregion.

Local planning and partnerships Despite the certain regional challengesdescribed above, local figures and projectprofessionals in theMidlands reported thattheyarelargelyoptimisticabouttheregion’sfutureandpotentialforsustainablegrowth.The Midlands Engine programme is a keyreasonforthis,butlocalcouncilsandLEPsalsopointtotheregion’sowninternalattentionandcarefulstrategicplanning.Furthermore,regionalcommentatorsreportedincreaseddemandforprojectprofessionalskillscomingthroughlocalSMEnetworksandsmalldevelopers.


RegionalChallengesThe overarching challenge identified by project professionals and key local figures interviewed throughout the Midlands was the risk that the region could be eclipsed by the economically strong South East and developing Northern Powerhouse. There is a feeling that, although the Midlands has significant potential for growth, there are challenges that need to be addressed for this to be realised.

Skills shortagesEconomicreportshavelonghighlightedskillsshortagesasasignificantcontributortothegapintheMidlands’productivitylevels,whichfallbelowthenationalaverage.Localfigureshavealsoraisedthisasachallenge,statingthatabetter-skilledworkforcewouldenableemergingsectorsintheregiontogrow,andadditionally,thatastrongerlocalskillsbasewouldattractfurtherinvestmentfortheregion.

ThereareseveralnuancestotheMidlands’skillsshortages.Oneisthechallengearoundskillsretention–encouraginggraduatestoremainintheMidlandsfollowinguniversity.Localexpertsassert that themoresignificantchallenge istheskillsgapsanddistribution.AlthoughtheMidlandsdoessupportaneducatedandskilledworkforce, local industries have reportedlystruggled to hire employees with certainadvancedskills,suchasleadershipexperienceandtechnicaltraining.Thisappliesequallyintheprojectprofession.

Intra-regional differencesWhileareasfocusedonadvancedengineeringareexperiencinggrowthotherareasdependentonmorevulnerablesectors,suchaslowvalue-addedmanufacturing,werehitharderbythe2008recessionandhavestruggledtorecover.Otherareasstrugglewithspecificlocalissues:Leicester,despitebeingoneofthecountry’shighgrowthcities,isundergoingchallengesaroundhousepricesandcongestion,whilelandremediationchallengesinhibitconstructionwork

intheBlackCountry(9).Asaresult,identifyingandcommissioningprojectstobenefittheregionasawholecanbechallenging,andinvolvesbalancingthecollectivewiththespecific.

Uncertainty ProjectprofessionalsintheMidlandsstatedthattheimportanceoftheautomotiveindustryintheWestMidlandsmeansthatuncertaintyaroundtheUK’sfuturerelationshipwiththeEUhashadanespeciallystrongeffect.LocalfiguresreportthatBrexituncertaintyhasbeenanissueforcarmanufacturersasithaschangedtheusualconditionsoftradewiththeEU,andadditionallyhasreducedconsumerandbusinessconfidence,compoundingthechallenge.

ChangingattitudesaroundsustainabilityandcleanairhavealsoreportedlyledtoadeclineindieselsalesacrossEurope.Althoughthoseintheautomotiveindustryreportthatthispresentsopportunitiesforinnovation–forinstance,theproduction of electric vehicles – making thistransitionischallenginginthecurrentenvironment.

“Overthepastfewyears,somethingwe’velearntisthatwecan’tcontrolpoliticsandtheuncertaintyitgenerates,butwecancontrolourownlong-termstrategicprojectplanning.So,we’vereallyfocusedonthisarea,generatinglongtermplansandstrategicpartnerships,sothatwehaveourownstabilityandcontinuitydespitepoliticalflux.”

(Local industry leader)

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P R O P O R T I O N O F U K P R O J E C T P R O F E S S I O N A L J O B S( P W C R E S E A R C H , 2 0 2 0 )



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The Cambridge Cluster is the informal name of a high growth area centred around the city of Cambridge. Recognised as one of the UK’s most buoyant and innovative areas, the region is home to a number of vibrant pharmaceutical, biotechnology, IT and academic clusters. While the use of project management methodologies is established in the region’s construction, IT and pharmaceutical sectors, uptake is more recent in scientific research and academia. As a result, we were interested in exploring how project management is enabling these sectors to grow and collaborate throughout the region.

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T H E C A M B R I D G E C L U S T E R

What is the Cambridge Cluster?Cambridge Cluster (sometimes known as theSiliconFen)isthenamegiventotheregionaroundCambridge,whichishometoalargecollectionofhigh-techbusinessesfocusingonsoftware,electronicsandbiotechnology.Manyof thesebusinesseshaveconnectionswiththeUniversityofCambridge,andtheareaisnowoneofthemostimportanttechnologycentresinEurope.


Key Industries:Biotechnology,electronics,lifesciences,software

Cambridge, as both a county town and a famous university base, is recognised as one of England’s fastest growing and most innovative cities(10).

Fromconstructionandcapitalprojectsintendedtodevelopandeasepressureonthecity’stransportnetwork, to IT transformation projects andincreasingly,scientificandacademicresearch,examplesofprojectmanagementintheCambridgeClusterarewidespreadandvaried.

ThecityistheheartoftheCambridgeCluster–alsoknownasSiliconFen–withalargegroupingof advanced technology businesses in thebiotechnology,electronicsandsoftwareindustries.Overthepast20years,thesebusinesseshaveprovenextremelysuccessfulinattractingventure

capital and local and international funding,enablingbusinessesandthelocaleconomytogrowrapidly.TheareaalsobenefitsfromUniversityofCambridge,whichhasclosetiestotheCambridgeClusterandadditionallyattractsahighlyskilledlocalworkforce.

AlthoughCambridgehasbenefittedfrombeingafast-growthcity,localcouncilsandLEPshaverecognisedthatthereisaneedtosupportthisgrowthandensurethatitissustainableoverthelong-term.Infrastructurechallenges,skillsgapsandthecontinualneedforaninternationaloutlookhavebeenidentifiedaschallengesfortheregionoverthemedium-term.

S E C T O R B R E A K D O W N : T H E C A M B R I D G E C L U S T E R

*StatisticsrefertoEastEnglandasawhole

6.2mPopulation


£7bn*GVA,projectprofession

(PwCanalysis)

102,00 jobs*FTAprojectprofessionals

(PwCanalysis)

10%*ProportionofUKtotalemployment(2018ONSLabourForceSurvey)

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BuoyantSectorsConstructionAsinmanyotherlocations,constructionwasthefirstindustryinCambridgetomakeuseofprojectmanagementapproachesandaccordingto local project professionals, remains theprimaryemployerofprojectprofessionalsintheregion.Cambridge’sconstructionsectorhasbeenbolsteredbythesuccessofitsothermajor,high-growthsectors.Forinstance,thesuccessof the pharmaceutical and biotechnologyindustrieshistoricallyledtothedevelopmentoftheCambridgeSciencePark,theCambridgeBiomedicalCampusandmorerecently,AstraZeneca’s£500million-plusheadquartersandR&D centre. In addition, the University ofCambridgeisamajorlandownerandasaresultthedemandfornewbuildings,refurbishments

andotherengineeringprojectssustainthelocalconstructionindustry.

ITLocalprojectprofessionalsidentifyCambridge’srobust IT sector as likely being the city’snextstrongestuserofprojectmanagementapproaches.TheseapproacheswereadoptedbyCambridge’s ITsector in itsearlydays–inspiredbytheconstructionsphere–asahighnumberofinitialITstart-upsandprojectsfailed.Itisnowtraditionaltouseprojectmanagementapproaches in IT transformation and otherrelatedprojects.

Pharmaceuticals and biotechnologyDrug development is highlighted as thekey pharmaceutical sub-sector for projectmanagement approaches by Cambridge-basedprojectprofessionals.Asmuchofthe

worldcontendswithagingpopulationsandtheincreasedprevalenceofchronicdiseases,drug development remains a key priority.Drugdevelopmentprojectsfaceanumberofchallengeswhiledrivingaproducttomarket,includingdealingwithcomplexmedicaltopics,multiple stakeholders and contractors, andstringentregulatoryrequirements.Toimprovenewproductdevelopment,thesectoradoptedprojectmanagementasameansofensuringprojectsaredeliveredontime,withinbudgetandtoahighstandard.Projectmanagementwasalsoidentifiedasameansofenablingtheindustrytobecomemoreagileandrespondto scientific developments and regulatorychanges.Cambridge’spositionasaworldleaderinthepharmaceuticalandbiotechnologyfieldsensuresthatdemandforpharmaceuticalprojectprofessionalsisstrongintheregion.

“GettingintoCambridgeisthechallenge.I’monlyhalf-joking–seriously,congestionisarealissue.Itlimitswhocanfeasiblyliveandworkhere,anditreallyaddstotimepressureonprojectsthatinvolvemovingbiomedicalequipment.Localindustryhasbeenflaggingthisissueforsometimenow.”

(Research respondent, Cambridge)



A428 Black Cat to Caxton Gibbet £15 billion 2021-2022,withasecondphase2025-2026

A14 Cambridge to Huntingdon Improvement Scheme £1.5 billion 2016-2019

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RegionalChallengesCambridge is celebrated as one of the country’s fastest-growing cities. However, the speed at which the local economy has developed has facilitated and masked emerging infrastructural issues that, if unchecked, have the potential to limit growth in the future.

Local councils and LEPs have proposed thatinvestmentinhousingandinfrastructureisrequiredtoensurethateconomicdevelopmentissustainableand can be maintained over the long term(11).Althoughhousingandtransportarehighlightedbylocalprojectmanagersandfiguresasthecity’sprimarychallenge,additionalissueswerealsocited,includingthefutureofthecity’sinternationaltiesandtheneedforhighlyskilledlabour.

Growth outpacing infrastructureAlthough Cambridge is known for its highlyeducated workforce, retaining young, newlygraduatedCambridgeUniversitystudentsinthecityisbecomingchallengingastheyareincreasinglypricedoutofthearea.Thereisalackofaffordablehousing,particularlyinthewestwhichhasanidealcombinationofrailconnectivitytoCambridgeandLondonandroadlinkstoindustriesatCambridge’shigh-techbusinessparks.Thislimitswhocanliveandworkinthearea,thusrestrictinginclusivegrowth.

Furthermore,aknock-oneffectofCambridge’shighhousepricesisthehighlevelsofin-commutingtothecityfromneighbouringtownsandvillages.Cambridgebusinesseshavehighlightedthestrainthat lengthy commutes and congestion placeonthelocalworkforce;furthermore,forprojectprofessionals(predominatelyintheconstructionand biotechnology sectors), congestion puts

pressureonprojecttimelinesasittakestimetomovepeopleandequipmentaroundthecity.Asaresponsetothischallenge,severalmajorroadand rail projects are underway, including thedevelopment of the A14 and A505 roads andCambridgeSouthStation.

International tiesThepotentialfortheUK’sexitfromtheEuropeanUniontodampenCambridge’slinkstotherestoftheworldisofconcerntosome,especiallyintheacademicandscientificresearchspheresasresearchfundingisoftenlinkedtoEUfunding.Cambridge’sscientificandpharmaceuticalsectorsarealsoreliantonhighlyeducatedandspecificallyskilledlabour.Asaresult,thereareworriesthatitcouldbecomehardertoattractEUnationalstoworkinthecityinthelongerterm,resultinginglobalbusinessesmoving theirpremises tootheracademicandscientificinnovationcentresoutsidetheUK.AcademicandscientificresearcharecoresectorsinCambridge,andanydeclinescoulddiminishtheinitialinroadsthattheprojectprofessionhasmadeinthesefieldsinrecentyears.

Knowledge-intensive industriesGivenitsmajorindustrysectors,Cambridgehasa higher concentration of projects and projectprofessionalsinhighlytechnicalsectors,suchasIT,lifesciences,biotechnologyandpharmaceuticals,encouragedbythesettingupofCambridgeScienceParkin1970.Thismeansthatthecityneedstoattractprojectprofessionalswithspecificskills.Forinstance,projectprofessionalsinthepharmaceuticalindustrynotedthatemployersrequireprojectprofessionalswith‘dualskills’,bothrobustprojectmanagementqualifications and experience in medical andpharmaceuticalfields(suchasdrugdevelopmentordiagnostics).

Furthermore,projectprofessionalsworking inthese industriesnotedthat there isaneedforcontinuallearningandtraining,notonlyintermsofprojectmanagementbutaroundthelatestscientificorpharmaceuticaladvancementsandregulationchanges.Theneedformanyprojectprofessionalsinthecitytobecomehighlyknowledgeableaboutthefieldstheyareworkingincanaddtoworkloadsandcreatestress.

Thereisafeelingamongsomethatthischallengewillbeaddressedincomingyears:astheprojectprofessionbecomesentrenchedinthesesectors,itisforecastthattherewillbeanincreasedavailabilityoftrainingcourses,conferencesandknowledge-sharing opportunities specifically for projectprofessionalsintheseindustries,mirroringwhatoccurred when project management first sawuptakeintheITindustry(12).

“GreaterCambridgeisamagnettocompaniesfromacrosstheglobeandthehomeofworld-leadingdigital(includingartificialintelligence)andlifescienceclusters.Itslaboursupplyandresearchandinnovationreputationareofthehighestorder.Buttherearesignsthatconstraintsarestartingtobite.Modellingshowsthathousing,energycapacityandtransportissueswillsignificantlyreducethesuccessofGreaterCambridge,ifnotdealtwith.”


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GrowthDriversA strong local economyThestrengthofCambridge’s localeconomymeansthatthereisscopeforthecity’ssuccessfulSiliconFencompanies to furtheracceleratetheir growth, particularly if Cambridge’sinfrastructuralchallengescanbemitigated.There ispotential for theprojectprofessiontohelptackletheseinfrastructuralchallengesandmitigatingthesechallengestoenablethesecompanies togrowfurtherwill likelycreatefurtherprojectopportunitiesinhigh-growthSiliconFensectors.

Investment from international firmsCambridgeisEurope’sforemostbiotechnologycluster.Projectlevelsanddemandforprojectprofessionalsarebolsteredbymajorinternationalfirmschoosing to locate theirheadquartersin the region, as it leads not only to newbiotechnologyandpharmaceuticalprogrammes,

butadditionallytonewconstructionwork.AkeyexampleisAstraZeneca,whichmoveditsglobalheadquarterstoCambridgeinMay2016andhasgeneratedbothbiotechnologyandconstructionprojects,includingthebuildingofAstraZeneca’snewfacilitiesintheCambridgeBiomedicalCampus.

The ‘filtration effect’Cambridge’s tight-knit local economy andcross-industrycollaborationensuresthatworkapproachesthathavebeensuccessfulinoneindustry tend to gain a positive reputation,leadingtouptakeinothersectors.Cambridge’syoung IT start-up sector adopted projectmanagementtechniquesbasedonlearningsfromthelocalconstructionindustry,andthereisevidencethatthesameisnowhappeninginthescientificandacademicresearchsectors,following the successful use of projectmanagementapproachesinlarger-scaleprivatesectorprojects.

Specification by research fundersLocalprojectprofessionalshavehighlightedthatprojectprofessionalsareslowlybecomingin demand in Cambridge’s academic andresearchsectors.Thishasbeenlargelyfunder-driven,withlocalfiguresstatingthatfundersandprojectsponsorsawarding largegrantsincreasinglyeitherrequestprojectprofessionalstooverseelarger,expensiveresearchprojects,orfavouringresearchfundingbids inwhichprojectmanagementisincluded.Inturn,thishasexposedresearcherstoprojectmanagementandinspiredsometoincludeitintheirwork.

EmergingOpportunitiesScientific research Projectprofessionalsandprojectmanagementframeworks are increasingly specified byfundersandsponsorsinCambridge’sscientificresearchsector–particularlyforhigh-budget,collaborative projects involving multipleorganisationsandstakeholders.Thishascreatedopportunitiesforlocalprojectprofessionalstonotonlyexploreanewindustrysector,buttoadditionallydevelopnewprojectmanagementapproachessuitedtothisfield.Researchprojectsareoftenexploratory,ratherthanoutcome-driven, making them very different frommoretraditionalprojects.Asaresult,projectprofessionalsinthisspherearepioneeringways

ofapplyingprojectapproaches ina flexiblemanner,additionallydevelopingbest-practiceapproachestomajorre-planning.

Transport Cambridge’swell-publicisedcongestionissueshaveensuredthattransportisnotonlyamajorareaofattention,butalsoanareaofopportunityforprojectmanagement.Transport-focusedprojectsrangefrommajorroadandrailconstructionsto the Cambridgeshire Autonomous MetroconceptrunbyCambridgeandPeterboroughCombinedAuthority.Inaddition,thecity’sfocusonenvironmentalsustainabilityhasincreasedeffortstocreatecleanairandcongestionfreezones,includingtheAirQualityActionPlanandtheQualityBusPartnership.

Tourism and hospitality AlthoughCambridgeisaworldleaderinseveralfields,localexpertshaveidentifiedaneedtobroadenCambridge’sgrowthandstrengthsbeyonditsmainindustrysectors,inordertokeepgeneratinginclusivegrowththatbenefitsthewholecommunity.Asaresult,tourismandhospitalityhavebeenidentifiedassectorsthatcouldbenefitfromfurtherattentionmovingforward,asmid-sizeindustriescomprisedlargelyoflocalSMEs.Thereisrecognitionthatthesesectorsandsmallerbusinesscouldbenefitfromadoptingprojectmanagementapproachesonasmallerscale,inordertogrow.

“InCambridge,wehavewhatIwoulddescribeasa‘filtrationeffect’,asourbigindustriesareintertwinedandtalktooneanother.TheITindustrypickedupprojectmanagementfromconstructionafterseeingthebenefits,andnowwehavethesamethingwithacademicresearchadoptingprojectmanagementafterseeinghowitworkedforpharma.”



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P R O P O R T I O N O F U K P R O J E C T P R O F E S S I O N A L J O B S( P W C R E S E A R C H F I G U R E S , E A S T O F E N G L A N D , 2 0 2 0 )




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The Heathrow Corridor is an informal but distinctive area, stretching from the western areas of Central London to Reading. The Heathrow Corridor is a highly economically active area, benefitting from Heathrow as a major international transport hub, a high proportion of international businesses and a high number of SMEs, many of which form Heathrow’s extensive supply chain. We explored how local industry collaborates on project work and how project management is being used to address local challenges.

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Key Industries:Transport,railandaviation,healthcare,pharma/lifescience,manufacturing,construction,tourism,media,professionalservices.

W E S T L O N D O N : H E AT H R O W C O R R I D O R

What is the Heathrow Corridor?WestLondon:HeathrowCorridorismadeupofseveralboroughsstretchingfromMarbleArchthroughtoHeathrowandSlough.MajortransportlinksinWestLondonhavehelpedtocreateavariedanddynamiceconomythatisconsidereddistinctfromotherareasofLondon.

WestLondonhasahighlyskilledpopulation,withover45%oftheworkforceeducatedtoLevel3oraboveandprovidesanestimated£73bntotheeconomy–abiggercontributionthanBirmingham,theUK’ssecondlargestcity.KeycorporationsintheregionareBritishAirways,SkyandGSK.

West London: Heathrow Corridor is an informal but distinct area of London, with a concentration of industry around Heathrow linking the area to the rest of the UK and the world. The presence of a major transport hub provides a huge opportunity for SMEs in the supply chain and helps to attract talent to the region. Outside transport, there are a high proportion of jobs in information and communication, healthcare and pharma, science and professional services(13).

WestLondonrepresentsaquarterofLondon’stotalpopulation.Theregionbenefitsfromhistoricgovernmentinvestment,establishedinfrastructure,adiversifiedlocaleconomyandarobustpopulation.Asaresult,theHeathrowCorridorhashugepotentialanddemandforprojectsandprojectprofessionals.

Thoughitsestablishedinfrastructurecreatesanexcellentnetworkforbusinesses,thearearisksbeingoverwhelmedbytrafficcongestionandtheinfluxofworkers.Notonlycanthesefactorsdecreasethequalityoflifeforemployeesintheregion,itcanimpactsupplyandprojecttimelines.WestLondonalsofaceskeychallengesaroundinequality,housingshortagesandpoliticaluncertainty.

Tocapitaliseonitsdiverseeconomy,severallocalorganisationshaveputforwardstrategicinitiativesaimingtocapitaliseonthediversityofbusinessesanditsglobaltransportlinksincludingtheUniversityofWestLondonandWestLondonBusiness.

S E C T O R B R E A K D O W N : W E S T L O N D O N : H E A T H R O W C O R R I D O R

8.9mPopulation


£31.3bn*GVA,projectprofession

(PwCanalysis)

426,000 jobs* FTAprojectprofessionals

(PwCanalysis)

21%*ProportionofUKtotalemployment(2018ONSLabourForceSurvey)

*StatisticsrefertoLondonasawhole

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BuoyantSectorsTransportWithsomeofthebiggestinfrastructureprojectsinEurope,thetransportsectorinWestLondonhasincreaseddemandforprojectprofessionalsintheareaandtheneedtoupskillcurrentstaffinprojectmanagement.HeathrowAirportasacorporatememberofAPM,iscommittedtothedevelopmentofitsprojectprofessionals,advocating a minimum of APM’s ProjectManagement Qualification (PMQ). Shouldexpansionplansproceed,HeathrowAirport’srecruitmentandtrainingofnewstaffwillincreasealongsideitdueitscommitmenttoexcellenceinprojectmanagement.

In2016CrossrailannounceditspartnershipwithAPMtohelpsharesuccessandinsightfromtheconstructionproject.FollowingonfromasuccessfulpartnershipbetweenAPMandtheOlympic Delivery Authority, which helpedshareapproachesfromthegreatsuccessoftheLondonOlympics,Crossrailhavealreadyimplemented.Learninglegacyfromtheprojectwillbesharedonadedicatedwebsite,helpingtoraiseawarenessofbestpractice,innovationandinsightintoprojectmanagement,helpingotherorganisationstoraisethebaracrosstheprojectindustry(15).

TheWestLondonOrbitalprojectplanstoreviveunusedraillinesinWestLondonaspartoftheLondonOvergroundnetwork.TransportforLondonpredictsthisprojectwillhelptoaddresshousingshortagesandincreaseemploymentbyimprovingconnectivityintheregion.Thiswillhelptobringmorelandintouseandencourageinvestment(16).TFLestimatesthatupto29,000homescouldbedeliveredthroughthisschemeifaflexibleapproachtoplanningisapplied(17),which iswhereprojectmanagementwillbecrucialtoitssuccess.

MajorProjectsMajorprojectsinWestLondoncentrearoundtransport,includingplanstoinstallathirdrunwayatHeathrow.Shouldtheexpansionproceed,itwillattracthighlyskilledprojectprofessionalstotheregion;careeropportunitiesinprojectmanagementarealreadyprominentlyadvertisedonHeathrowwebsite.

Anothermegaprojectunderwayintransport,theLondonCrossrailproject,aimstobuildahighfrequencyraillinefromHeathrowtoCanaryWharf.Withanapproximatebudgetof£18bn,itisoneofthelargestandambitiousinfrastructureprojectsinEurope.AnimpactstudycarriedoutbyCrossrailestimatedtheprojectwillhaveasignificantimpactonnewhomesandpropertyvalues.90,599newhomesarepredictedby2021and4.4millionsquarefeetofcommercialoffice(14).IncreasingconnectivitybetweenWestandCentralLondon,itwillhelpdriveinvestmentintheareaandfurtherreinforceWestLondonasaneconomicpowerhouse.

Outside of transport, the Blythe HouseProgramme is the firstof itskindbetweenanationalmuseumandaUKuniversity,helpingtorelocatethehistoricandculturalcollectionsatBlytheHousetoworldclassfacilities.TheBritishMuseumandUniversityofReadingareworkingincollaborationtoprovidemoreaccesstothe incrediblecollectionhousedatBlytheHouse.Withanestimatedbudgetof£338m,theprogramhasattractedprojectprofessionalsexperiencedinprojectandresourcemanagementandexperienceinworkingtotightbudgets.


“Localcouncilbudgetcutsareachallenge.Thetrickledriesup,whichcreatesalackofdistributionofthetaxflowbackintotheboroughforfurthergenerationofindustry.”

(Research respondent, West London)

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FutureOpportunitiesMedia and communication industriesThemediaandcommunicationindustriesacrosstheUKaccountsfornearly8%ofGDPandWestLondonplaysacentralpart inthis.Continuedgrowthinthisareaandtheincorporationofdigitalconnectivityincreasestheopportunitiesforprojectmanagement professionals in these sectors.SkyDigitalinHounslowandEalingStudiosarepotentiallykeycorporatesinthisspace.

TourismWestLondonattractsvisitorsfromallaroundtheworld,particulartoWembleyStadium,HamptonCourt and Windsor. Increased connectivitythroughHeathrow'sthirdrunwaywillonlyhelptoincreasetheflowofvisitorsthroughWestLondon.

Casestudy:AKOptimise,WestLondonAmerjit WaliaisaseasonedprojectmanagementpractitionerandacademicbasedinWestLondon,whodeliverschangethroughpeopleandprojects.HeistheownerofAK Optimize,whichhelpsorganisationstotransformtheirprojectmanagementofferanddevelopfit forpurposeprogrammes.AmerjitleadsAPMofferingsfortheUniversityofWestLondonProjectManagementCentrewiththeClaudeLittnerBusinessSchoolanddevelopstrainingsolutionsfororganisationsrangingfromSMEstolargecorporates.

AsaprojectpractitionerbasedprofessionallyinWestLondon,Amerjithasaclearviewoftheregion’sdynamismandbelievesthatitisatrulyuniquepartofLondon.Inhisview,WestLondonbenefitsfromitswiderangeofcompanies,fromthesocalledA4-M4‘GoldenMile’withlargecorporateslikeGSKandSky,tomid-sizeengineeringcompaniesworkingwith,oronCrossrail,HS2ortheforthcomingHeathrowthirdrunway.Furthermore,thereislargepresenceofIT,construction,retailandcharitysectorsgivetheregionauniqueblendofdiverseemploymentopportunitiesforitsresidents.AmerjitpointstofiguresfromtheWestLondonAlliance(apartnership

betweensevenWestLondonlocalauthorities),estimatingthatWestLondonaloneadded£80billionofvaluetotheeconomyin2018.(Source:WestLondonAllianceReport2018).

InAmerjit’sview,WestLondonis‘buzzingwithSMEs’andhasmorethanitsfairshareofentrepreneursrunningsmallenterprises.Thereisalsoasignificantincreaseinnewinternetstart-upcompaniesaidedbyartificialintelligence.BasedonhisexperienceatAKOptimize,AmerjitbelievesthatSMEshaveakeyroletoplayintheexecutionofprojectsintheregionmovingforward,astheyarelargelyinvolvedinthesupplychain.WestLondonSMEsfaceconsiderablechallengesofgrowthandstiffcompetitionfromeachotheraswellaslargerorganisations.However,AmerjitfeelsthatSMEsareinnovatorsanddriversofchange,andthereforewillbeakeyfeatureofthearea’sdevelopmentinthefuture.

‘SMEs are innovators and drivers of change without always knowing it. Responding to change is very much in the hands of people, change itself is not! Whether we are architects of change or not, we will be impacted upon by changes in our environment. If we are to lead change and be where we want to be, then we need to have the vision and drive to get us there and take our people with us. People deliver projects!’ AmerjitWalia

WhenAKOptimizeprovidetrainingforSMEs,seeing the relevanceofcertainprocesses likebusiness/projectplanning,riskorqualityisnotalwaysforemostintheirlistpriorities,althoughschedulesandcostcontrolis.InAmerjit’sview,discussing the governance of projects is likespeakinginadifferentlanguageandaturnoff.Projectmanagement isseenasextra layersofbureaucracyandunnecessary.

People deliver projectsAK Optimize has tried to develop projectmanagement solutions and processes that arerelevant,thatspeaktoSMEsandaddresstheirneeds,inalanguagethatisunderstoodbythem.Amerjit’sviewisthattheyareoftenwritteninalanguageoruseterminologythatisoutsideoftheexperienceofSMEs.SMEprojectsvaryinsizeandcomplexity,requiringflexibleandstreamlinedpracticesforsuccessfulprojectdelivery,suchasAgile.SMEsoftenseethisastimeandresourceconsuming.

‘When pushed they do acknowledge that good project planning can lead to project success and we are beginning to see SMEs reach out to us for appropriate project development support, particularly from the new high-tech companies and charity organisations.’ AmerjitWalia


Blythe House Programme £338m Tobecompletedin2023

Crossrail Programme (Paddington to Heathrow) £18.2bn Beganin2009,estimatedtoopenin2021

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“Londoniscongestedgenerally,butWestLondonisparticularlycongested,butnewprojectsliketheOrbitalarearesponsetothat.”

(Local industry expert)

GrowthDriversPopulation bufferAlthoughincreasingtheeconomicactivityofthelocalpopulationisachallenge,thehighpopulationdensityinWestLondonincreasesthepotentialtoupskill.Theregionbenefitsfromastrongskillsbase,andshortagesareoflessconcernthanotherlocations.Thelocalavailabilityofskilledlabourhelpstoattractmajorprojectsandinvestmenttotheregion,asfundershaveconfidencethattheareahastheworkforceandsupplychaincapacitytodelivermajorprojectwork.

Diverse local industryIncontrast tootherregionsthathavefacedsetbacksfromhistoricdeclinesintheirmajorindustries,WestLondonbenefitsfrombeinghometoarangeofbusinessesandorganisationsspanning different categories. This createsproject prospects beyond a single stratumandcreatestheopportunityforcross-sectorcollaboration.Thiscross-sectorapproachmeansthatwork is increasinglydynamicandusingprojectmanagementapproachestocoordinateworkstreamsisseenasbusinessasusual.

Strong transport infrastructure in placeAlthough improving local transport links isaprioritygiventheregion’slargepopulation,WestLondonneverthelessbenefitsfromrobustconnectivityanditsstatusasaninternationalhubandgateway,viaHeathrowAirport.ThisiscomplementedbystrongtrainnetworksandproximitytomajormotorwayssuchastheM25.Fromaprojectperspective,thisgivestheregionalogisticaladvantageinsupportinggoodsandcreatingamobileworkforce.


RegionalChallengesPressures on infrastructureAnincreasingpopulationinWestLondonhascaused significant traffic congestion. Thishasaknockoneffectofimpactingsupplyandthereforeprojecttimelines,butalsoimpactsairqualityandemployees’qualityof life.Areputationofheavycongestionanddifficultcommutescanputofftoptalentfrommovingtotheregion,however,theOrbitalandCrossrailprojectsaredesignedtocombatthisissue.

Inthedigitalspace,internetconnectivityhasbeenhighlightedasaneedintheregiongivingtheflexibleanddynamicnatureofbusinessesinWestLondon.Connectivitywillbeessentialforcompaniestocompetewithanever-evolvingdigitallandscape.Wideraccessto5Ghasbeenhighlightedalongwithincreasingdigitalskills.

Developing the local workforceDespiteastrongpopulationbuffer,halfofWestLondon’spopulationareeconomicallyinactiveresultinginhighlevelsofinequalityandpovertyintheregion(WestLondonAllianceReport2018).DevelopingthisworkforcewouldhaveamassiveimpactontheUKeconomy,consideringtheregionalreadycontributes£70billiontotheeconomy.TheWestLondonAlliancehasavisionforgrowthwhichhashighlightedtheskillsgapasakeychallengeintheareaandarehelpingtocreatepoliciesthatwillreducethisandhelpthoseonlowerincomesmoveintohigherskilledjobs.Anopportunityexistsherefortheprojectprofessiontoraiseawarenessoftheprojectmanagementcareerpathtohelpdeveloptheskillsofthelocalpopulation.

Anothercontributingchallengeisthehousingshortagesthatexistintheregion.Itiscrucialthat theWestLondonOrbitalandCrossrail

projectsdeliverontheirpredictionsforhousingdevelopment in order to encourage thecontinuedflowofresidentsintothearea.

Mitigating uncertaintyOngoingpoliticaluncertainty intheUKhashighlightedtheneedforstrongcontingencyplanstobeinplace,especiallyforlarge-scaledprojects,whichfaceheavymediascrutinyoverbudgetoverrunsanddelayedmilestones.Inparticular,HeathrowExpansionisamajorprojectresponsibleforalotof‘rippleeffect’projectworkinWestLondon;delaysonthisprojectcreatechallengesforotherprojectworkandbusinessesrelyingonthesupplychain.

Retaining local fundingKeepingmoneyintheboroughiscitedasakeychallenge,oftenlinkedtocouncilbudgetcuts,withemphasisontheneedforcouncilspendingandtaxflowtocontinuefortheregiontoremainbuoyant.

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P R O P O R T I O N O F U K P R O J E C T P R O F E S S I O N A L J O B S( P W C R E S E A R C H F I G U R E S , L O N D O N , 2 0 2 0 )



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The Northern Powerhouse is an economic initiative, intended to revive the North of England economy and boost productivity outside the South East. Developing infrastructure throughout the North, in order to unlock economic growth, is a central priority of the Northern Powerhouse. Project management will play a critical role in both building infrastructure and attracting further investment to the region.

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T H E N O R T H E R N P O W E R H O U S E

What is the Northern Powerhouse?TheNorthernPowerhouseisaneconomicinitiative,proposedbythe2010-2015Conservative/LiberalDemocratcoalitiongovernment.TheinitiativewasestablishedasameansofrevivingtheNortherneconomyandboostingproductivityoutsidetheSouthEastthroughagglomeration,inparticular,inthecorecitiesofManchester,Liverpool,Leeds,Sheffield,HullandNewcastle.Initialprojectworkhasfocusedonimprovingtransportlinks,regionaldevolution,andgeneratinginvestmentthroughagglomeration.

The Northern Powerhouse’s geographic footprint is defined as the 11 LEP areas of the North of England – Cheshire and Warrington, Cumbria, Greater Manchester, Humber, Lancashire, Leeds City Region, Liverpool City Region, North East Sheffield City Region, Tees Valley, York, North Yorkshire, and East Riding – and North Wales.

TheoverarchinggoaloftheNorthernPowerhouseistoboosteconomicgrowthinthenorthofEnglandbybringinglocalcouncilsandenterprisestogether,asameansof forgingstrongpartnershipsandattractinghigherlevelsofinvestmentthroughthecommonNorthernPowerhouseidentity.

AcrucialcomponentoftheNorthernPowerhouseisTransportfortheNorth,theUK’sfirstsub-nationaltransportbody(STB).STBsgroupcouncilstogetherinordertoprovidestrategictransportgovernanceatalargescale.ImprovingtheNorth’stransportinfrastructureisakeypriorityandseveraltransport-basedprojectsareplanned,includingtheNorthofEnglandProgrammeandHS2.

AnalysisbyPwCResearchindicatesthattheprojectprofessioninthenorthofEnglandregioncontributes£39.9billioninGVAtotheUKeconomy.Intermsoffull-timeequivalentjobs,PwCestimatesthattheregionemploys449,000projectprofessionals,or21%oftheprofession’stotalUKworkforce.

S E C T O R B R E A K D O W N : T H E N O R T H E R N P O W E R H O U S E


Key Industries:Advancedmanufacturing,engineering,health,pharmaceuticals,lifesciences,digital,transport,energy

15.2mPopulation



(PwCanalysis)

449,000 jobs FTAprojectprofessionals

(PwCanalysis)

22.3%ProportionofUKtotalemployment(2018ONSLabourForceSurvey)

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BuoyantSectorsAdvanced manufacturing and engineering TheNorth’straditionalindustries,manufacturingandengineering,remainkeypillarsofeconomicgrowth in the region, and manufacturingand engineering project management is anestablisheddiscipline.Thesectorisanotablesourceofseveralmajorcapitalprojectsintheregion,suchastheengineeringandmanufactureoftheDreadnought-classsubmarines,intendedto replace theUK’sVanguard-classballisticsubmarines.TheNorthhasthehistorictechnicalknowledgeandinfrastructuretosupportthiskindofadvancedengineeringproject,whichlocalLEPsinvolvedintheNorthernPowerhouseareeagertoemphasiseinordertocontinuebeingabaseforthiskindofprojectinthefuture.Futureareasofdevelopmentincludeengineeringlow-carbontechnologiesandmaterials.

Health innovation Theresearchhighlightshealthinnovationasoneoftheregion’sprimecapabilities.LocalexpertsbelievetheNorthhasthepotentialtobealeaderinthisarea,throughthepresenceof various pharmaceutical, health-relatedproductmanufacturing,researchandhealthtechclustersthroughouttheregion.Intermsofresearch,Liverpoolisacentreforinfectiousdiseaseresearch,whileNewcastleandDurhamare leaders in ageing innovation research.

Thisiscombinedwithclustersofprivatesectorhealth tech and pharmaceutical companiesthroughoutManchester,CheshireandLeeds,andmanufacturingofhealthproductsintheHumber.TheNHSisalsoanimportantemployerofprojectprofessionalsintheregion:keyareasofprojectdemandincludemobilisation(movingintonewregionswherehealthcareservicesarelacking),digitalisation,andimprovingpatientpathways.Alltheseareasoffocushaveasimilarendgoal–improvingefficiency–whichiswhydemandforprojectmanagementapproachesinthissectorisstrong.

The use of project management in thepharmaceutical sector has seen strongdevelopment in recentyears,andadoptionisincreasinginthelifesciencesandresearchsectors.Furthermore,localfiguresintheNorth’shealthcaresectorhave identifiedattractinginvestment – which the North has lackedhistorically–asakeyrequirementinsupportingthehealthinnovationindustrytogrowfurther.Commercialisinghealthinnovationresearchsothatitcanbetranslatedintorevenueandjobsfortheregionisalsohighlightedasapriorityforeconomicgrowth.Localprojectprofessionalsworkinginandaroundthehealthcaresectorfeelthatstrongeradoptionofprojectmanagementframeworks could support investment andfunding bids, and project managementapproacheswouldactasavaluablemeansof

coordinatingworkstreams in the future (forinstance,betweenuniversitiesandcommercialentities)tosupportthecommercialisationofhealthcareresearch.

Digital Digitalwasalsohighlightedasaprimecapabilityintheregionandlocalprojectprofessionalsagreethisisanimportantsectorforbotheconomicgrowthandprojectmanagementdemand,withthe tech and IT industries having employedprojectprofessionalsandprojectmanagementmethodologiesforsometimenow.Manchester’stechindustryisvibrant,basedonalargenumberof techstart-ups in the region thatemergedthroughthepresenceofthelocaluniversities.Newcastleishometoanothertechcluster,withCobaltBusinessPark,theUK’slargestbusinesspark,apopularlocationfortechandITcompanies.Local project professionals emphasise thatopportunitiesforgrowthandtheuseofprojectmanagementmethodologiesintheregion’sdigitalsectorspansbeyond‘pure’techandITcompanies,withopportunitiesemergingfromcorporates,government,charities,andhealthcare,throughemphasisondigitaltransformation.


EmergingOpportunitiesTransport infrastructure developmentTransport infrastructure development ishighlighted by local figures and projectprofessionalsasbothan importantdriverofeconomicgrowthintheNorthernPowerhouseandamajorpotentialsourceofprojectdemand.TransportfortheNorthisahugeandimportantplayerintheregionandanimportantpartoftheNorthernPowerhouseagenda.Transportinfrastructureeitherunderwayormarkedfordevelopmentincludestheconstructionofmoreraillinks,electrification(theNorthofEnglandProgramme)andnewTransPennineroutelinkingtheNorthandScotland.HS2isalsoforecasttobecritical,shouldPhase2goahead.Theemphasisontransportalsointerlinkswithotherbuoyantsectors,alongsideimprovedeast-westmovementofgoodsandequipmentintheNorthhighlightedasameansofsupportingtheregion’sadvancedmanufacturingandhealthinnovationsectors.

Energy and clean growthAshighlightedintheNorthernPowerhouse’sIndependent Economic Review, the Northbenefits from historic work and expertisearoundtheenergysector,andmorerecentlythedevelopmentoflow-carbontechnologies.Asinthehealthinnovationsector,researchers,LEPsandthelocalenergyindustryareconsideringopportunitiesfortheNorthtoleadthewayindevelopingthesetechnologies,andthewaysinwhichthiscouldbecommercialisedinordertosupportregionalgrowthmovingforward.

Higher educationTheNorth’smajoruniversitieshavelongbeenengines of growth, supporting the region’sadvancedmanufacturingandengineeringsectorandspurringthecreationoftheNorth’sdigitalandhealthinnovationsectorsthroughresearch,innovationandexpertise.LocalfiguresandtheNorthernPowerhouseIndependentEconomicReviewhighlight thathighereducationand

localuniversitieshavestrongpotentialtoactasfuturehubsforcollaborationbetweenthepublic,educationandprivatesectors.Anecdotalevidencesuggeststhattheadoptionofprojectmanagementmethodologiesintheacademicresearch sector (mainly STEM subjects) isgraduallyincreasing,drivenbyspecificationfrom funders and uptake by universityresearchers.Thishasincreasedthenumberofadministratorsexposedtoprojectmanagementapproachesandraisesawarenessofthebenefitsof project management in the delivery ofresearchprogrammes.

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“Ithinkthere’stwoissueshere.Whatenableseconomicdevelopmentisinfrastructuredevelopment,andprojectmanagersarerequiredtodeliverinfrastructuredevelopment.So,projectmanagementisabsolutelyessential,butit’sameans,notanend.”


“Certainly,whatwe’rehearingfromthevoiceofbusinessisthattheywouldreallyliketogrow,buttheyneedthepeopletodoit.So,whatweneedistocreateavirtuouscircle,inwhichouryoungpeoplehavetheskillstheyneedtobeemployedbybusinesses,andthebusinessescanemploythemandgrow,andthenemployandtrainupmoreyoungpeople.”

(Research respondent, Northern Powerhouse)


Sellafield Model Change £121bn Presentto2120

North of England Programme £1bn 2015-2018

Dreadnought Submarines £31bn lifetime cost 2011-est.2029

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GrowthDriversCollaboration and partnershipsAs demonstrated by the buoyant andemergingindustrysectorswithintheNorthernPowerhouse footprint, partnerships andcollaborationsbetweenthepublicandthirdsector(councilsandlocalauthorities,charities,education/universities)andtheprivatesector(corporates, investors and SMEs) have thepotentialtobetheenginesofgrowthmovingforward,offeringopportunitiestocapitaliseandexpanduponeachother’sworkwithinindustrysectors.Projectmanagementmethodologiesarealreadyusedinthisareaasameansofimprovingcommunicationandcoordinationbetweentheseindustriesandworkstreamsanduseofprojectmanagementinthiswayhasthepotentialtodevelopfurthermovingforward.

InvestmentWriting project management plans andframeworks into fundingbids is recognisedasavaluablemeansofattractinginvestment,asitsignifiestofundersandinvestorsthattheproject’soutcomeswillbedeliveredtoahighstandardandinatimelymanner.

Mentoring schemes and frameworks‘Advanced’skills–forexample,technicalandleadership–arehighlightedaskeyrequirementsforNorthernregionaldevelopmentandgrowth.Asaresult,mentoringschemesandframeworkshavebeenconsideredasameansofassistingthelocalpopulation–youngpeopleinparticular– to develop skills while on the job, whichwouldadditionallyboostemploymentlevels.Localprojectprofessionalsfeltthatmentoringschemeswouldalsobeabeneficialmeansof

bolsteringthenextgenerationoftheNorth’sprojectmanagementworkforce(forinstance,throughmentoredapprenticeshipsforyoungpeople studying for project managementqualifications).Supportedon-the-jobtraining,wasseenasthekeytobuildingleadershipskillsandastronger,appliedknowledgebase:manyalsofeltitwouldhelptopublicisetheappealofprojectmanagementasacareeroptiontolocalyoungpeople.


RegionalChallengesUnlocking investment Acrossourinterviews,localexpertsandprojectprofessionalshighlightedtherolethatalackofinvestmenthasplayedhistoricallyhinderingeconomic development in the North. OneviewisthattheUK’sdecision-makingprocessfor allocating investment can disadvantagethe North, as it tends to follow economicgrowth,ratherthanseekingtostimulateit.Thiscontributes to the North/South divide. Theotherchallengesurroundinginvestmentisthatpoliticalandeconomicuncertaintygenerally(e.g.election,Brexit) leadsto lessspending.Thecapitalsectorisoftenhitdisproportionallybythis,ascapitalprojectscanberegardedasdiscretionaryornon-essential.Unlockingpublicandprivateinvestmentintransportinfrastructureishighlightedasparticularlyimportant,aspoorconnectivity between East and West in theNorthernPowerhouseregionisperceivedasakeyinhibitorofgrowthanddevelopmentoftheregion’smajorandemergingindustries.

Skills shortagesSkillsshortageshave longbeenhighlightedasamajorbarriertoeconomicgrowthintheNorthernPowerhouse’sfootprint.Despitethepresenceofmajoruniversities,theNorthEaststruggleswithahighproportionoflow-scoringschoolsandlevelsofacademicattainmentbelowthenationalaverage(18).

Outsideofeducation,localbusinesses(SMEsinparticular)reportthatalthoughtheywanttogrow,theystruggletofindandemploypeoplewilltheskillsthattheyneed(19).This,inturn,contributestohigherlevelsofunemploymentthroughout theNorth. In largercorporates,thekeyissueisleadershipandmanagementskills,asa lackofthese inhibitsgrowthandproductivity(20).Alackoftechnicalskillsisalsomentionedasachallenge.Inadditiontoalackofeducationorskillsgainedwhileinschool,‘braindrain’isalsohighlightedasacontributortoskillsshortages,withtheregionstrugglingtoretainhighlyeducatedand/orskilledworkersthateithergrewupintheNorthorcametotheregionforuniversity,ascareerandsalaryopportunitiesareoftenstrongerintheSouth.

Asacareerpath,projectmanagementisnotexcluded from these challenges. There isanecdotalevidencefromlocalprojectmanagersthatpathwaystobecomingaprojectprofessionalintheNorthcanbechallenging,dueto lowawarenessofitasacareerpathandalackofon-the-jobtrainingincertainindustries.Thisissignificantnotonlyasitlimitslocalindustry,butalsobecauseitcouldpotentiallynegateanybenefitsgainedthroughpotentialinfrastructurefundinginvestmentinthefuture,astheNorthwouldlacktheprojectprofessionalworkforcetocarryoutinfrastructureprojects.

Lack of new businessesLocalprojectprofessionalsandindustrybodiesnotedthatnewbusinessgrowthandspendingoninnovationandresearchanddevelopmentisloweramongstNorthernbusinessesthaninotherpartsofthecountry(21).Thisissignificantashigh-growthbusinessesaccountforastrongproportionofjobcreation(22).TheissueisalsotiedtotheskillsshortageissuesintheNorth,asbusinesses–especiallysmallerstart-ups–struggletoemploypeoplewiththespecificskillstheyneedinordertogrowinthearea.

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P R O P O R T I O N O F U K P R O J E C T P R O F E S S I O N A L J O B S( P W C R E S E A R C H F I G U R E S , N O R T H E A S T A N D N O R T H W E S T , 2 0 2 0 )


F T E O F P R O J E C T P R O F E S S I O N A L S35

R E S E A R C H M E T H O D O L O G Y , A C K N O W L E D G E M E N T S A N D R E F E R E N C E S

References1. https://ec.europa.eu/growth/tools-

databases/regional-innovation-monitor/base-profile/south-west-england

2. https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/779543/investing-in-the-sw.pdf

3. https://heartofswlep.co.uk/wp-content/uploads/2019/05/Heart-of-the-SW-LEP-Annual-Delivery-Plan-2019-20.pdf

4. https://heartofswlep.co.uk/wp-content/uploads/2018/11/Annual-Report-March-2017-Released-by-EDF-003.pdf

5. https://heartofswlep.co.uk/about-the-lep/strategies-and-priorities/nuclear-south-west/

6. https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/598295Midlands_Engine_Strategy.pdf

7. https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/598295Midlands_Engine_Strategy.pdf

8. https://www.birminghammail.co.uk/news/midlands-news/east-midlands-west-midlands-must-11974315

9. https://www.pwc.co.uk/who-we-are/regional-sites/midlands/press-releases/east-midlands-growth-to-slow-in-2019-as-uncertainty-bites--but-c.html,PwCResearchInterviews.

10. Cambridgeshire and Peterborough Local Industrial Strategy: A Partner in the Oxford-Cambridge Arc.CambridgeshireandPeterboroughCombinedAuthority,July2019.

11. Cambridgeshire and Peterborough Local Industrial Strategy: A Partner in the Oxford-Cambridge Arc.CambridgeshireandPeterboroughCombinedAuthority,July2019.

12. PwCResearchInterviews.

13. https://www.london.gov.uk/sites/default/files/description-londons-economy-working-paper-85.pdf

14. https://learninglegacy.crossrail.co.uk/wp-content/uploads/2018/07/4D-003-crossrail_property_impact_regeneration_study.pdf

15. https://learninglegacy.crossrail.co.uk/about-learning-legacy/

16. http://content.tfl.gov.uk/west-london-orbital-strategic-outline-business-case.pdf

17. https://www.alliancembs.manchester.ac.uk/news/infrastructure-investment-opportunity-to-get-northern-powerhouse-back-on-track/

18. Teachfirst.

19. PwCinterviews.

20. PwCresearchInterviews.

21. PwCResearchInterviews.

22. https://www.northeastlep.co.uk/wp-content/uploads/2019/05/our-economy-2019_full_report__north-east-local-enterprise-partnership.pdf

OverviewofMethodologyThis research is a continuation of our Golden Thread Report. This is a deep dive analysis of key sectors and regions across the UK which consists of 3 stages:

1 Online Surveys:Weboostedoursampleof438UKbusinessessurveyedto535,focusingonbusinesseswithinthecharity,healthcareandlifesciencessectors.Thissurveyhelpeduscalculatethetypeofprojectsbeingundertaken,thesizeoftheseprojectsintermsofbudgetandFTEsinvolvedandtheproportionofprojectactivityforeachofthekeysectors.

2 Validation Interviews:Ineachofthekeyregionsandsectors,weundertookseveralexploratoryin-depthinterviewswithindustryleaders, project professionals, LEPs andacademicswithadetailedunderstandingofregionaldevelopmentsandprojectactivity.

3 Literature Review:Webuiltamoredetailedpictureoftheregionalandsectoraloutlookforprojectmanagementbyreviewingkeysources,includingwhitepapers,policyreviews,ONSdataandlocalcouncilandLEPindustrialstrategydocuments.ONSdataincluded:ONSAnnualBusinessSurvey,ONSLabourForceSurveyandONSMid-yearestimates2018.

FurtherdetailsofourmethodologycanbefoundinourGolden ThreadReport:

https://www.apm.org.uk/media/35641/apm_methodology_may2019-v2.pdf

AuthorsAPMTeam:DavidThomsonandDanielNicholls

PwCTeam:DrAndrewSchuster,JulieMcClean,LaurenStrainandSamuelPownall

AcknowledgementsAPMwouldliketothankPwCResearchfortheirresearchforthislatestreportanddevelopingthemethodologyusedintheoriginalreport.Wewouldliketothankthelocalindustryandregionalexpertswho took part in the study, whose invaluableinputhelpedtoshapethisreport.Intheinterestofconfidentiality,allquotesincludedinthereporthavebeenanonymised.

Thecontributionofthe535organisationsthattookpartinourUK-wide,cross-sectoronlinesurveyisalsoacknowledged.

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Association for Project ManagementIbisHouseRegentParkSummerleysRoadPrincesRisboroughHP279LE

Tel(UK) 08454581944Tel(int) +441844271640Email [email protected] apm.org.uk

Documents

THE GOLDEN THREAD · the scenes to ensure other’s success. But The Golden Thread recasts the profession into the role of a ‘golden thread’ – a seam that runs through UK plc,