What is the Gatwick Diamond initiative and how is it helping the region recover from the pandemic?
Hard hit by the aviation industry and covid economic shocks, the Gatwick Diamond region is making a strong return to form. It is a UK leader in terms of economic recovery. We look at a number of public private partnerships in the region which are spearheading the way to better days...
What is the Gatwick Diamond
The Gatwick Diamond is the geographical area of West Sussex and East Surrey, with a population of some 750 000.
It is the economic region running north-south from London to the coast and east/west from Guildford to Royal Tunbridge.
READ MORE: Outlook 'positive' for Gatwick Diamond region
The Gatwick Diamond boasts an economy of £24billion and some 45000 businesses from SMEs to international conglomerates.
The region comprises seven council areas namely, Epsom and Ewell, Reigate and Banstead, Tandridge, Mole Valley, Crawley, Mid Sussex and Horsham.
One of the UKs largest business parks in The Manor Royal Industrial Park is located in the region. The Park is home to more than 600 businesses and 30 000 employees.
The Gatwick Diamond economy performs well above the national average on a range of different economic indicators, such as its levels of productivity, share of high-skilled jobs and track record at attracting foreign investment.
Is the Gatwick Diamond different to LEPs?
The diamond does have cross over areas with two Local Enterprise Partnership (LEPs)areas. While those government funded bodies are also charged with building local economic growth and prosperity.
“There is a certain amount of crossover in that strategic partnership. We have a good and close working relationship with them but we are privately led and funded unlike LEPs who draw down public funds,” explained Jeff Alexander of the Gatwick Diamond Initiative.
READ MORE: Gatwick Airport South Terminal to reopen
The genesis of the Gatwick Diamond, said Mr Alexander, came from the withdrawal of local authority funding. “This funding stream expired five years ago so the business community, recognising its value, privately financed the projects.
“We had built up some legacy funding and that helped keep us going in the short term,” explains Mr. Alexander.
What role does it play
Currently the private sector led model is in the process of refocusing its attention from the: “Strategic influencing role we once had to one of regional promotion.
“We did challenge policy and policy makers and will continue to do so, but we are switching our attention to bringing inward investment.
“We are focused on promoting the region as a great investment opportunity. We have access to the London markets, without being hindered by central London prices, the wider UK markets and this area is a fantastic launchpad into Europe. We were a great entry point into the EU but that disappeared overnight, so we are working hard to replace that with inward investment - though we haven’t seen a great bounce back in terms of that just yet.
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“The region does lead the UK in terms of foreign direct investment from US and South East Asian firms.
“Add to that our magnificent infrastructure in terms of road and rail network and of course Gatwick Airport sits at the centre of the diamond and it is clear we offer solid regional inward investment opportunity.
“We are committed to promoting the Diamond area as a great place to live, work and invest.”
The Gatwick Diamond Initiative (GDI) and Gatwick Diamond Business (GDB) are sister yet separate organisations. Their undertakings are paid for by members’ subscriptions and networking events. Mr Alexander is CEO of both.
The not for profit GDB is a networking and support organisation for businesses in the diamond. Their 70 year track record has earned them a reputation as an informed and respected voice of business in the Gatwick Diamond.
The GDI have objectives beyond supporting existing members. These include – the promotion of the area as a world class business location; Attracting inward investment; Help retain existing businesses; And fostering the growth of existing and new businesses.
Mr. Alexander: “We represent members’ interests and assist them in lobbying toward their long terms interests. The GDI also assists those companies seeking to establish a presence in the region with introduction to key players both in the established supply chain and the political ecosystem.”
Economic performance and post-pandemic outlook
The diamond area continues to be a front runner in terms of post pandemic economic recovery. It is significantly outperforming other regions.
Crawley Borough Council, for example, which lies at the centre of the Diamond and in which Gatwick Airport is located, was one of the hardest hit regions in the UK by the covid downturn.
Jeff Alexander said: "We are experiencing a very significant change in fortunes."
This week’s reopening of the South Terminal at Gatwick Airport is the latest example of Crawley’s buoyant economy.
The economic shock caused by lock down and travel bans was perhaps more pronounced in Crawley than elsewhere due to its economic reliance on the airport. Unemployment in the Borough doubled, 22, 000 airport staff were furloughed, more than 12 000 were made redundant.
“Well these have certainly been tough times for the region,” said Mr. Alexander.
“It has long been a criticism of our local economy that it is over-reliant on the aviation industry but the speed of our recovery proves the dynamism of what we are doing. It proves how resilient, strong and diverse our economy is.
“There is no doubt the airport is a key economic driver in terms of our recovery. Our employment rate shot back up after covid.
“Rather than a weakness the aviation sector is in fact key to the regions success.”
The area has one of the strongest economies within the UK, thanks largely to the performance of the aviation/defence, digital economy, financial services and medical technology sectors.
Challenges
These sectors, while buoyant also provide certain demands. A successful transfer into post-pandemic economy hinges on how the region manages the skills gap.
“The underlying concern on our economy is the same as it was pre-covid,” said Mr. Alexander, “that is our skills scarcity, our ability to match existing skillsets to the available jobs.”
Traditionally Crawley had an inflow of higher skilled employees commuting in and an outflow of workers moving out, toward lower skilled positions.
“This is not a sustainable model, work on the skills base is required to ensure we can continue to offer those investing in the region the skills required for the new economy.”
Future trends
The success of two GDI supported projects will see employers and skills providers work closer than before.
“These are both very important initiatives for the region,” said Mr. Alexander.
The first is a Coast to Capital LEP and Chichester College network led, Insititute of Technology project. The project funding has been secured for phase two of the government programme and was announced this month.
The institute will, in collaboration with industry leaders, offer training in advanced manufacturing, digital and cyber security, aerospace and healthcare. The syllabus’ will be in line with employers’ requirements.
Education secretary Nadhim Zahawi said of the new Institute: “It will boost access to more high-quality and flexible education and training – giving people the chance to learn at a pace that is right for them, while ensuring we have the skilled workforce needed to boost our economy.”
Work is expected to begin within two years.
The second initiative will see work begin on a Crawley Innovation Centre.
The Coast to Capital LEP has approved £8.4 million funding ear-marked from the government’s “Getting Building Fund” to enable the design, build and launch of the centre in the Manor Royal Business District.
It is hoped work will commence by end of 2023.
The project is a priority in Crawley’s Economic Recovery Plan 2022-2037 and it is also closely aligned to the Coast to Capital plan to Build Back Smarter, Stronger and Greener.
The aim is for the centre to help create over 200 new jobs and directly benefit local businesses.
The Crawley Innovation Centre project are also seeking £2.5 million of funding from the Crawley Towns Fund programme to invest in the operational establishment of the centre.
A business case is subject to approval by Crawley Borough Council and endorsement by the Crawley Town Deal Board.
Councillor Peter Smith, Cabinet member for Planning and Economic Development at Crawley Borough Council said: “We are delighted that the Crawley Innovation Centre has been given the green light. We believe it will bring a much-needed boost to the Crawley economy by creating new jobs and helping existing local businesses, as well as a wealth of innovation and technological benefits. Importantly, it will also focus on investment in skills and the environment for the future of young generations.”
The view Jeff Alexander and the GDB is that: “There are innovation centres in Brighton and Croyden but nothing in between so this is a very welcome project.
"After a very difficult few years things are looking good for the Gatwick diamond region.”
