In partnership with
Durham County Council
As Durham builds a national reputation as the home of high growth capability, PETER BARRON assesses the progress being made on helping businesses to grow.
In the three years since she took up her post in Durham, Amy Harhoff has seen “real coherence and focus” in the drive to maximise what she sees as the county’s huge economic potential.
Whilst celebrating the clear progress being made, Durham County Council’s Corporate Director of Regeneration, Economy and Growth insists there is no room for complacency.
“As a county we have to be relentless in our ambition and confidence in our place – absolutely relentless!” she declares.
Having adopted its new Inclusive Economic Strategy in December 2022, Durham has reached an exciting stage in its journey , with the development of scalable sites focused around high growth sectors, such as green energy, low-carbon materials, data science, and technology.
“The ability to create high quality clusters is key to driving productivity, and it’s essential to get ahead and create high quality space speculatively, so that the infrastructure is already in place to meet demand,” adds Amy.
Making Durham “the home of high growth capability” is the aim, with the expansion of NETPark, at Sedgefield; the continuing investment in Jade Business Park, at Murton; and the development of Aykley Heads as the catalyst for the new Durham Innovation District all vital pieces in the jigsaw, underpinned by a place based plan of culture led regeneration.
“Every economy will see the highest growth where it can be the best. One area where Durham really demonstrates competitive advantage is on advanced manufacturing where we outperform the national average as a proportion of our economy. The same applies to green energy, analytics and technology, so that’s where our focus can really add value ,” explains Amy.
“That doesn’t mean other areas of our economy aren’t important – of course they are and are vital parts of the supply chain and place shaping – we have to also be clear at a sector level these are areas where we know our economy will outperform the national picture.”
So, what makes Durham so suited to those types of business? The answer, according to Amy, lies in established skillsets, strategic location, land, exceptional businesses, a productive partnership with anchor institutions such as Durham University and Further Education colleges, and a commitment from the county council to create the spaces for businesses to locate and grow.
“Some of our traditional industries have been through transition, and it’s the muscle-memory and dexterity of our workforce that means they can transition into different manufacturing capabilities, giving the area a competitive advantage.
“Then we have the capacity that’s brought to the region by Durham University, around research and specialisms such as data science.
“One of the first questions a business will ask is ‘will we have the talent to work for us and grow our business.’ Therefore, having a pipeline of talent and support for those industries, through initiatives like the Institute of Technology led by New College Durham, is a crucial part of the investment mechanism.
“In addition to that, we have established clusters and can provide the space for them to grow. We’re not in that difficult position that successful but constrained places in the South East are – we’ve got plans for expansion and there’s a clear commitment in our economic strategy and County Plan to go on investing in those spaces.”
Work began this summer on phase three of NETPark – one of the UK’s premier science parks – after Kier was chosen to deliver the £62m expansion project. Almost 20 years after NETPark opened, phase three will take two years to complete, with the potential to directly create 1,250 skilled jobs, plus 2,200 in the supply chain, generating £625m for the local economy over the next ten years.
The latest phase features up to 232,000 square feet of new laboratory, office and production space, covering an initial seven hectares of land, with more land available for further development beyond that. As well as opening up future inward investment, it will also provide expansion opportunities for existing tenants.
And, although she can’t go into detail just yet, the great news from Amy is that there is already “really exciting interest” in the site within weeks of the work getting underway.
“We know our existing phases of NETPark are at capacity occupied by leading businesses and research, so it’s vital to finish phase 3 at pace so we can create space for growth. We’ve proved that NETPark is a world-class location, with businesses making a global contribution to technology and R&D, so now it’s about taking it to the next level.”
Kromek Group plc, a leading developer of high-performance radiation detection products, is a particularly high-profile NETPark success story, having made the site its global headquarters.
Filtronic – specialists in radio frequency (RF) technology – is another, having established a mmWave centre of excellence at the park. Indeed, a clear sign of the esteem in which Filtronic, and the NETPark cluster, are held came in August when Paul Scully, Minister for Tech and the Digital Economy, visited the site. Talks were held with the Durham County Council representatives on how companies like Filtronic can play a significant part in helping to meet the Government’s objective to make the UK a global science and technology superpower.
As well as those established companies, NETPark also provides first-class incubator facilities for innovative start-up companies including access to Durham University through its Orbit facility, while the spirit of innovation on the site is underpinned by the Centre for Process Innovation (CPI), which gives new products and inventions the best chance of being brought to market.
Fifteen miles north-east of Sedgefield, Jade Business Park, at Murton, is also proving its worth. Phase one of the 55-acre site has delivered seven new industrial units, comprising 155,000 square feet of new space for distribution, technology and advanced manufacturing businesses.
“Jade shows the diversity of what Durham offers because it’s more focused around sustainable energy and low carbon capabilities, it’s another important piece of the jigsaw, as home to world-class businesses,” says Amy.
They include science-led innovative construction solutions company, Low Carbon Materials, which was named as one of three finalists in the ‘Fix Our Climate’ category of The Earthshot Prize, the world’s most prestigious environmental award.
Low Carbon Materials, which was founded by three PhD students from Durham University, received support in its very early stages through the Durham City Incubator, a joint initiative of Business Durham, Durham University and New College Durham, further underlining the importance of the partnerships that have been forged between academia, the council and business.
“It’s great to see an innovative company created from the incredible talent at Durham University and growing within the county, with the potential to make a global impact – from Murton,” smiles Amy.
The progress is evident, with 2021 seeing a record high in the number of businesses and start-ups in the county. What’s more, the council has one of the largest capital programmes of investment it has ever placed and exciting times ahead with further potential through devolution.
However, Amy is quick to acknowledge that there can be no complacency . Closing the productivity gap and ensuring an inclusive prosperous County Durham and its communities remains the ultimate objective. The value of the County Durham economy currently stands at £9 billion, making it the largest in the North-East. But per head of the population against the national average, it should be closer to £12.5 billion.
“Our mission is to increase the productivity value and close that gap,” says Amy. “It will take time, but it’s the right ambition, and we have to believe the actions we’re taking are the ones that support our goal.”
At the heart of innovation
It's coming soon to the heart of historic Durham City… The latest development phase of the Durham Innovation District, already home to Durham University Business School and Milburngate, will now see the Aykley Heads Strategic Employment Site come to the market. As the latest growth cluster, Aykley Heads is creating the scale for an Innovation District of national importance.
Amy Harhoff describes it as a “reimagining” of Aykley Heads, building on an existing business cluster, which is already the location of the Durham City Incubator, encouraging graduate retention through university spin-outs and high growth potential start-ups.
The vision has reached a pivotal stage, with Durham County Council’s Cabinet having agreed to progress procurement for a delivery partner to create a new 380,000 plus square feet development, featuring high-quality office space, and an innovation eco-system to allow businesses to thrive.
The Innovation District will link to established data-focused businesses such as Atom Bank and Waterstons Ltd, as well as creating new opportunities.
The creation of the Innovation District follows Durham being identified in The Treasury’s Kalifa Review – led by former Worldpay executive Ron Kalifa – as one of 10 fintech hotspots around the UK.
The area is seen as an ‘emerging’ cluster for financial technology firms, raising the prospect of attracting more businesses from the fast-moving sector.
“It’s about making Aykley Heads part of a broader Innovation District, and it will change the types of opportunities available for our communities to live, work and play in Durham,” says Amy.
It’s all part of the drive to establish Durham as the home of high growth capabilities, and Amy is passionate in her belief that the county has everything it needs to meet the objectives of its Inclusive Economic Strategy: an adaptable workforce, a strong skills base, productive partnerships, and a county council commitment to go on investing in creating the space for businesses to grow.
“I’ve no doubt that Durham has the potential to be one of the biggest growth areas of the UK – and we are determined to be ambitious in maximising every single opportunity and ensure those opportunities reach our communites,” she says.
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