Crucial advanced manufacturing and engineering centre to take step forward
Friday 19 July 2024
Plans for a vital project aimed at supporting a key growth area in West Suffolk and beyond by delivering an advanced manufacturing and engineering (AME) centre is due to take a step forward.
West Suffolk Council and Suffolk County Council are working together to kick start a scheme which would benefit businesses across Suffolk.
This had previously stalled due to external pressures on costs such as inflation, Brexit, Ukraine War and increases in utility costs, as well as the need for funding agreements to be reached with the Local Enterprise Partnership which was being disbanded as part of new Government rules.
Now West Suffolk Council Cabinet will discuss plans for the initiative to reach the next planning gateway stage (stage 4) with an investment of £450,000 – split evenly between West Suffolk Council and Suffolk County Council. This will make sure the plans are robust for the centre to go forward for planning and construction.
Suffolk County Council has taken over the duties of the Local Enterprise Partnership with the creation of the new Business Board. Both councils have been working on a plan to bridge the gap in funding and are working towards a decision in autumn.
According to 2022 data, this is a key growth area for West Suffolk as 9.2 per cent of employees work in manufacturing in the district compared to 7.5 per cent nationally. The median wage in this sector is 11 per cent higher than the national median wage. In addition, businesses have indicated the need for such a centre and facilities.
The business case for this project was originally approved at Council in December 2021. This included the allocation of a £12.1 million capital budget funded from the Investing in Growth Fund through prudential borrowing.
This included the purchase of 6.8 acres of land at Suffolk Business Park which has already taken place to develop an 80,000 sq ft AME Centre in two phases. The first phase of the centre includes:
- self-contained but linked, flexible workshop units
- a Hub building with, meeting rooms, offices, facilities and administration management, and a café
- car parking, landscaping, HGV access
- opportunity for business support and networking events for the wider AME community.
The financial case included details of the unique way this project was to be funded with an annual income from the Suffolk Park Enterprise Zone (EZ) over a 25 year (total) lifetime. However, due to external pressures beyond the control of the council and effecting all public services those costs have continued to grow and therefore we have established a budget of £15.1m is likely to deliver the project.
Manufacturing is vital as part of the drive for sustainable growth and is being encouraged by West Suffolk Council. The West Suffolk Manufacturing Group, set up by the council in 2019 has been nurtured into a strong networking and information group which regularly sees over thirty independent businesses attend its meetings. Businesses have reported that attending these meetings has introduced them to other companies, opportunities and enabled them to learn different skills. One business estimated that attendance at “the group has allowed us to explore and take advantage of opportunities estimated at £800,000.”
Cllr Indy Wijenayaka, Cabinet Member for Growth for West Suffolk Council, said: “It is clear that manufacturing is a growth area in West Suffolk and this new Advanced Manufacturing and Engineering Centre will further support that growth. This will not only bring new skills, expert support and opportunities for West Suffolk businesses but others beyond the district.
“Working in partnership with Suffolk County Council and the new Business Board, we will help kick start this vital scheme. Subject to the appropriate decision making processes, both Councils are working in partnership to make sure robust financial plans are in place to make this scheme a reality and support sustainable growth, jobs and the economy.”
Cllr Richard Smith MVO, Deputy Leader and Cabinet Member for Finance, Economic Development and Skills for Suffolk County Council, said:
“Work is currently taking place under the Business Board to define a revised economic strategy and priorities for Suffolk. This work is in relatively early days, but I hope that the AME sector will be a key component and future priority, and that the strategy will recognise the critical role district schemes and projects will play in delivering the strategy. We are pleased that a decision has been made to progress the project to the next gateway. We have contributed £225,000 towards the cost of this stage as we recognise the potential benefits for West Suffolk and the rest of the county.”