Derby discovers a new lease of life

Ask someone what they know about Derby, and they will most probably mention Brian Clough, the celebrated football manager, or Rolls-Royce the luxury car and engineering brand, long associated with the city. However, aside from these facts, most people know little else about Derby. That’s likely to change, if John Forkin, Managing Director of Marketing Derby, has his way. For when current talk is of a need to rebalance the UK economy back to a more advanced manufacturing base founded on exports, Derby, with a two billion pound redevelopment masterplan underway, is already spearheading the route forward.

A hi-tech economy
Over the past ten years, Derby has become a hi-tech economy, with heavyweight employers such as Rolls-Royce, who headquarter their world aerospace coupled with its nuclear research and development facility in the city.

“The job mix in those types of companies has moved up the technology chain. What we have is a very wealth creating, rich economy. The city’s biggest single employer is the private sector – as opposed to the city council, NHS, or universities,” says Forkin. “So for example, 12 percent of Derby’s workforce is now working in high technology jobs – four times the national average – and the city commands the highest salaries of any city outside London, driven by that hi-tech job mix. There is also a very vibrant SME community.”

One of the underlining challenges for the city is to retain its talent and wealth, encouraging more people to spend their time and money in Derby, rather than in neighbouring cities such as Leeds, Nottingham or Birmingham.

Derby’s detailed planning has involved remodelling the city centre in a way that reflects the city’s transition from a traditional manufacturing economy to a hi-tech economy. Putting aside thoughts of oily boiler suits, modern manufacturing looks far different than it did a few decades ago. Out of 12,000 Rolls-Royce staff, for example, says Forkin, approximately 10,000 of those employees work in offices, whether that involves research and development, design, treasury, marketing or legal work.

The Derby masterplan is also part of an increasing trend in urban development away from the outskirts of cities, towards the city centre. “I think we are moving away from the traditional business parks, for example,” says Forkin. “Increasingly, professional companies are looking to cluster together in city centres, as with Birmingham’s Snowhill development. Staff prefer to be able to walk out at lunch and do some shopping, rather than being marooned on a business park. They want to come into work on public transport, or cycle in, rather than drive in.”

In addition to one million sq ft of new retail space, and five thousand new housing units, Derby’s masterplan involves creating 1.5 million sq ft of commercial property space.
“The regeneration of the city centre is seen as key to continuing to grow Derby’s economy and in particular to retaining a lot of the wealth that is already created in Derby’s economy,” says Forkin. “And commercial property is a really important part of that plan. The city centre needs to be a place not only where people shop, but also where they live, work and play.”

The business case for Derby
Businesses looking to locate in the area will undoubtedly ask if there is a strong enough business case for doing so. They will also likely ask if they will be able to retain and attract the right staff to run their operations and consistently deliver to customers. They will also want to know what the transport and communication infrastructure is like. How do rental costs compare to other locations?

Derby certainly appears to tick all of the boxes. Centrally located in the East Midlands on the banks of the River Derwent, Derby is close to both the M1 motorway and the East Midlands airport nearby. Impressively, the fastest train service to London’s St Pancras and the international connections from there, takes as little as 90 minutes and run every half hour. There is also easy access to cities such as Birmingham and Leeds.

The fact that there is a hugely skilled workforce to draw upon is also an important decision making factor for organisations. There are 1.7 million people located within 45 minutes of Derby city centre.

The city’s hi-tech focus extends to the LightSpeed campaign, a cross sector initiative which is aimed to create an environment that will encourage the roll out of superfast broadband throughout Derby.

The quality of life in Derby and the surrounding area is further bolstered by its fantastic vincity. Not only is there a vibrant city to enjoy, the nearby National Forest and the 555 sq miles of Peak District National Park falls right on Derby’s doorstep.

These factors help bolster the area’s appeal for businesses and residents. “Derby is a compact, centrally located, accessible city. Most people who move here, quickly find that they get more for their money. While you have always been able to live 20 minutes from the city centre and be in a barn conversion on the edge of the Peak District National Park, now, because of the masterplan, living in the city has much more to offer too,” says Forkin.

“Westfield’s first shopping centre outside London is located in Derby, with the UK’s largest indoor market alongside. There are new arts centres, cinemas, new hotels” Forkin adds as just some of the developments going on.

No wonder, then, that Derby is already home to employees of a range of multinational organisations, including Rolls-Royce, the integrated power systems business, Bombardier, the French-Canadian owned train maker, Toyota, the Japanese car manufacturer, and Westfield, the Australian retail property group – all located in and around the city.

Citibank is one recent arrival. The banking giant, which has its UK headquarters in Canary Wharf, London, was consolidating its UK operations when the credit crunch hit, and selected Derby as a main location for the Egg online banking firm which it acquired in 2007.

“Derby works well for us which is why we have centred most of Egg and much of Citibank’s technology requirement here,” says Bert Pijls, head of UK Consumer for Citibank. “We have never had an issue with recruiting talented people in Derby.”

A sustainable future
Sustainability is an increasingly important issue for many businesses, and this takes into account the provision of office space in Derby’s development masterplan. “All the offices to be developed will be BREEAM excellent and cutting edge in terms of the technology that is available at the moment,” says Forkin. “In a city where one in eight employees work in hi-technology jobs I think it is right that the city centre should reflect that hi -tech emphasis.”

Norseman’s proposed One Derby development, for example, with five new office buildings containing 400,000 sq ft of Grade A office space, is designed to achieve a BREEAM Excellent rating, and will have a fully managed environment. Furthermore, there is plenty of flexibility, with office space opportunities ranging from 40,000 up to 400,000 sq ft in the pipeline.

While forging ahead as a location for hi-tech business, the City hopes to achieve a diversified mix of sectors, including, for example, financial services and back office functions. “While there may not be many government relocations over the next five to ten years, if any, I think we might see a lot of back office bank relocations, for example. Why pay £55 per sq ft or similar to have 1,000 back office staff in the City of London, the West End, or Canary Wharf, when you could pay £15 per sq ft in Derby and even get a better workforce?”

With all indications pointing in the right direction, Derby looks set to establish itself as a base for companies in the region. It may take a few years to come to fruition, but all the signs are that Derby’s new city masterplan will put the city firmly on the map as a prime location for business.