The West Midlands Theory of Growth

Hypothesis:

Perceptions of the West Midlands represent a barrier to attracting people and investment. This is not a narrow branding issue and recent successes represent a foundation for improvement.

People’s and businesses’ perceptions of the West Midlands are important. People’s perceptions of a region are developed over time based on factual information, personal experience, history and cultural memory and media influences. They matter for attracting and retaining people in the region, boosting community cohesion and quality of life and enabling better institutional integration. Businesses’ perceptions are important primarily for influencing investment in the region. Below, we set out the evidence on how both perceive the region.

People’s perceptions of the West Midlands. The West Midlands is recognised for its rich cultural heritage and contributions. It boasts more parks than Paris, more canals than Venice, and the most Michelin stars outside of London. The region is home to world-class museums, galleries, theatres, and cinemas, and has given the world Shakespeare, heavy metal, and bhangra. These cultural offerings have consistently attracted people to the region. For example, the success of “Peaky Blinders” is credited with a 26% increase in domestic visitors to Birmingham and a 19% rise in international tourists. The WMCA’s three major cities— Birmingham, Coventry, and Wolverhampton—boast some of the UK’s best universities and cultural assets. The region’s location is an attractive asset, with easy access to London and other parts of the UK, as it its diverse population. The West Midlands has a varied reputation when it comes to liveability. Some view it as an attractive place to live due to its affordable living costs and amenities.

However, there are also challenges which negative impact people’s perceptions of the West Midlands in and outside the region. These include:

• 52% of adults in the West Midlands felt a strong sense of belonging to their immediate neighbourhood community, which is lower than the England average of 61%. This percentage has remained relatively stable over the past few years, with minor fluctuations. The sense of belonging in the West Midlands has consistently been slightly lower than the national average.
• There has been a slight decline in perceptions of local area attractiveness over the past few years, indicating a need for initiatives to improve the physical and social environment.
• Parts of our region, particularly the Black Country, are often seen as industrial. This image can lead to perceptions of the area being outdated or lacking in modern amenities; an image seen demonstrated on popular social media sites. Negative stereotypes about the region’s industrial past and social issues can impact its ability to attract skilled workers and investment. Moreover, there is a perception that the West Midlands struggles with economic issues, such as high unemployment rates and a reliance on manufacturing.
• The West Midlands has a graduate retention rate of 42.0%, which is lower than the UK average. This indicates that fewer graduates choose to stay in the region after completing their studies compared to other parts of the UK. The West Midlands’ retention rate is among the lowest in the UK, with only the East Midlands (33.8%) having a lower retention rate for STEM graduates. This suggests that the region faces significant challenges in retaining graduates, particularly in high-demand fields.
• Alongside economic factors and liveability, the region’s limited visibility in the marketplace can impact its attractiveness to people to the West Midlands. Efforts to improve the region’s profile and promote its strengths are essential to address this challenge. Continued investment in educational infrastructure and marketing is crucial to enhance the region’s attractiveness and ensuring that the West Midlands is seen as a dynamic and supportive place for graduates will help improve retention rates.

Businesses perceptions of the West Midlands. According to perception studies from the West Midlands Growth Company (WMGC), poor perceptions of the region are not a significant inhibitor of investment decisions. Birmingham’s success in attracting FDI – including on the back of the 2022 Birmingham Commonwealth Games – highlights positive perceptions among international investors, particularly in the technology sector. EY’s Attractiveness Survey found that those familiar with the West Midlands had a positive perception of the region. They cited its strengths, such as its business environment, cultural assets, and infrastructure, which align well with the region’s marketing messages. Positive perceptions of the West Midlands, particularly in sectors like technology and manufacturing, have contributed to increased FDI.

However, challenges remain with how businesses perceive the region.

• Many businesses still associate the region with its industrial history, viewing it as outdated and lacking modern amenities. This perception can overshadow the significant advancements and modernisation efforts in the area. More work needs to be done to highlight the opportunities, attract investment and skilled workers to high-productivity tech, creative industry, financial, and professional services sectors in the West Midlands.
• The EY Attractiveness Survey also highlighted the region’s limited visibility in the marketplace. The West Midlands lags behind competitor destinations in terms of recognition and awareness, a barrier to attracting more investment and interest. This lack of awareness can contribute to a general negative or indifferent perception of the West Midlands.
• There is a perception that the West Midlands struggles with economic issues, such as poverty, deprivation and high unemployment. These challenges can deter potential investors and businesses from considering the region.
• Negative cultural stereotypes about the region persist and can negatively impact the region’s image.

What the region has been doing to improve perceptions. The region has been taking steps to improve perceptions among businesses and people. Recently, the ‘It Starts Here’ regional marketing campaign to reset negative perceptions, increase the visibility of the region’s innovation ecosystem, and improve the city and region’s reputation. It both highlights the history of innovation as the place where breakthroughs happen and the contributions that the West Midlands has made to the world, as well as opportunities for the future. These include developments in green power, game changing technologies, next-generation services and life- changing sciences, thus showcasing the region’s Future Mobility, Digital Technologies, ProfTech and Life Sciences sectors. Additionally, the Business and Tourism Programme has sort to use the 2022 Commonwealth Games to highlight the region and embed positive perceptions of the West Midlands into the international imagination, driving long-term economic benefits through new overseas investment and additional export deals.

How we can go further. Although these programmes have been successful, we think we need to go further to improve regional perceptions and develop a strong story that sets out the opportunities in the West Midlands to the wider world. To do this, we think we need to do 8 things:

1. Promote positive stories. The West Midlands suffers from limited visibility in the marketplace and a lack of consistent investment in long-term strategies to improve this. Highlighting success stories and positive developments in the region can help counteract negative stereotypes. This includes highlighting local businesses, cultural events, and community initiatives.
2. Enhance visibility. Increasing the visibility of the region’s strengths through media, social media, and public relations can help reshape perceptions. This includes promoting the region’s cultural heritage, modern amenities, and economic opportunities. Collaborations with influencers and media outlets can amplify these messages. A consistent, well-funded strategic approach to marketing the region can improve visibility and attract more investment.
3. Develop a strong, shared regional narrative. Creating a coherent and compelling regional narrative or unique selling proposition (USP) can help unify the region’s image. This narrative needs to emphasise the West Midlands’ strong economic foundations—outlined in an earlier chapter—and should be developed in a way that includes local communities in order to create a sense of ownership and recognition of the story. Consistent messaging across all platforms is key.
4. Engagement with local communities. Involving local residents in initiatives to improve the region’s image can foster a sense of pride and ownership. Community events, public consultations, and local projects can help residents feel more connected and positive about their region. Social networks and cultural norms within social enclaves can limit exposure to novel lifestyle choices and hinder wider community integration. This means it is essential to promote wider integration and engagement between diverse communities to improve social cohesion and perceptions.
5. Invest in infrastructure and amenities. Continued investment in infrastructure, public transport, and amenities can improve the region’s liveability and attractiveness. Highlighting these improvements can help change perceptions about the region being outdated or industrial. There is a need to leverage cultural assets and events to enhance perceptions and attract tourists and residents.
6. Leverage partnerships. Collaborating with businesses, educational institutions, cultural organisations, and the voluntary, community sector and other public sector organisations can help promote the region’s strengths. Partnerships can lead to joint initiatives that highlight the West Midlands as a vibrant and dynamic place to live, work, and invest.
7. Address stereotypes directly. Acknowledging and addressing negative stereotypes head- on can be an effective strategy. This can involve public campaigns that challenge misconceptions and provide factual information to counteract stereotypes.
8. Monitor and adapt. Regularly monitoring public perceptions and adapting strategies based on feedback and changing circumstances is crucial. Surveys, focus groups, and social media analysis can provide valuable insights into how perceptions are evolving.

Connection with other sub-systems