Introduction 

Evidence suggests that advanced manufacturing in the North East has strong potential for growth due to our regional assets and capabilities, which is why it is identified as an area of strategic importance in our North East Strategic Economic Plan. 

We have developed an evidence base that looks in detail at the region's advanced manufacturing sector, using a range of public and subscription data sources and by reviewing relevant literature. 

It provides a snapshot of the current position of advanced manufacturing in the North East LEP area and opportunities for further growth in the region. The evidence base was produced over 2022 and is up to date at January 2023. It will be updated again on an annual basis.
 

2008 recession

The 2008 recession had a significant impact on the UK’s economy and led to significant long-term consequences. The North East LEP in particular has seen relatively slow levels of real GDP growth since the recession, with the economy only growing at 1.3% per year from 2009 compared to 1.6% for England excluding London. After taking into account the effects of population and inflation in the North East LEP’s economy was larger in 2006 than it was in 2014.

Manufacturing was hit especially hard in 2008, with sector output falling by 8% between 2008 and 2009 in the North East, compared to a 3% fall for the whole economy . Manufacturing output also recovered much more slowly than the rest of the economy. The North East’s overall output had returned to 2007 levels by 2012. Manufacturing did not reach these levels again until three years later in 2015. In contrast the services sector in the North East was already at 2007 levels by 2011.

Economic shocks such as 2008 can having a scarring effect on the sector, as skilled workers may be forced to leave the sector taking their experience with them. In the North East there is some evidence that advanced manufacturing was less severely impacted by the 2008 recession. Motor vehicles manufacturing in the North East for instance was only below 2007 levels of output for two years in 2011 and 2012, while chemical production was only below 2007 levels for one year in 2011.This highlights the importance of advanced manufacturing to regional resilience in the face of economic shocks. 

COVID-19

The national and regional economy is currently in the processes of recovering from the unprecedented shock of the COVID-19 pandemic. The onset of the pandemic led to falls in business activity, consumer spending and employment on a scale that has rarely been seen in modern times. By Q4 2020 regional output in the North East was 6.0% below the level seen in Q4 2019^[1]. The disruption to employment, skills and supply chains is also likely to have significant downstream effects on the regional economy in the future.

Manufacturing in the North East region was not as severely affected by the initial economic shock as some other sectors. Manufacturing output in Q4 2020 was 3.1% below its level in Q4 2019. This was below the North East region total (+6%) but a significantly smaller decrease than some other sectors such as Education (-16%) and Accommodation and food services (-34%)^[1].

The ‘second round’ effects of the pandemic however, still had a significant impact on the sector. At the end of the furlough scheme in September 2021 9% of eligible employments in manufacturing were on furlough in the North East region. This was the third highest of all sectors^[2]. The automotive subsector also experienced significant disruption due to a shortage of semi-conductors essential to car production. As a result, the number of cars built in UK factories fell by 27% year-on-year to 37,200 in August^[3]. This shortage also had a clear impact on road vehicles exports from the North East which fell from £808 million in Q1 2021 to £401 million in Q2 2021. In Q1 2022 road vehicles exports were still only 82% of 2014 levels (slightly higher than the West Midlands which on 72%), while exports of other commodities from the North East had returned to 2014 levels.

Skills shortages (particularly in logistics), global material shortages and increases in the costs of shipping are likely to lead to increased shortages in the future.^[4]Moreover, as was demonstrated by the arrival of Omicron and subsequent ‘Plan B’ measures at the end of 2021, the end of the COVID-19 pandemic is likely to be unpredictable rather than a smooth easing of public health measures and return to pre-pandemic norms.

EU Exit

One of the other significant changes to the broader economic environment has been the UK’s exit from the European Union. The UK formally exited the union on the 31st of January 2020 entering a transition period until the 31st December 2020. On the 1st of January 2021 the UK ceased to be a member of the EU single market and Customs Union, having agreed the UK/EU and EAEC: Trade and Cooperation Agreement in December 2020.

The UK’s exit from the European Union has led to changes to the procedures and regulations underpinning the import and export of goods to the EU. Border controls were introduced in stages to allow businesses the time to adapt. Full customs checks were applied in January 2022.

The UK’s exit from the European Union also ended the free movement of workers between the UK and EU. The UK provided the opportunity for EU citizens to apply to the EU settlement scheme, which allowed EU, EAA and Swiss citizens resident in the UK prior to the 31st December 2020 with the opportunity to receive settled or pre-settled status (and therefore remain in the UK). 5,589,000 individuals had been granted settled or pre-settled status by the end of September 2021, including 45,600 in the North East LEP area^[1].

Despite the EU settlement scheme the foreign-born population of the UK appears to have fallen significantly since 2019. In Q3 2020, the estimated foreign-born population of the UK was 8.3 million, down from 9.2 million in the same quarter a year earlier^[2]. This was a decline of 894,000 or 10%. The foreign-born population of the North East also fell from 5.6% to 4.5%^[2]. The change in the migrant share of the population for the UK appears for both EU and non-EU born groups, with the labour force survey suggesting a 0.9 percentage point decline in the non-EU born population share and a 0.5 percentage point decline for EU citizens^[2]. There is a considerable degree of uncertainty surrounding these figures due to changes away from face-to-face data collection due to COVID-19 and the likely overestimate of the UK’s current population. However, anecdotally the trend of reduced numbers of foreign nationals is in accordance with staffing shortages in many sectors.

Wider manufacturing, including advanced manufacturing, is one of the sectors most dependent on foreign workers in the North East. In June 2021 4% of payrolled employments in manufacturing in the North East were EU nationals, the highest proportion of any sector apart from accommodation and food services. A further 2% of payrolled employments were non-EU foreign nationals.

The number of EU nationals in North East manufacturing continued to grow between 2014 and 2019, increasing from 3,500 in July 2014 to 4,600 in July 2019. However, the overall totals have declined since 2019, falling to 4,300 by June 2021. Non-EU nationals employed in North East manufacturing increased from 1,500 in July 2014 to 2,100 in June 2021. 

EU nationals working in UK manufacturing possess different qualifications to the UK national workforce. While EU nationals working in manufacturing overall are slightly less likely to possess a degree level qualification than UK nationals, 50% of those from the EU 14 possess such a qualification. These highly skilled workers are crucial for UK manufacturing and EU-Exit has led to uncertainty about their continued residence in the UK.^[3]

In the short run EU-Exit provided a significant positive stimulus to UK manufacturing. Manufacturing output increased 3% between Q4 2018 and Q1 2019, the largest % increase in GVA since 1999^[1]. This is generally thought to be in response to stockpiling of goods prior to the UK’s exit.^[2] The longer-term impact economic impact of EU-Exit has been more difficult to measure because of the concurrent onset of the COVID-19 pandemic. However, qualitative research undertaken for the North East LEP’s report on the impact of COVID-19 and EU-Exit identified a series of challenges and opportunities for businesses in the region^[3]. This includes businesses in the wider manufacturing sector.

Other manufacturing (including automotive manufacturing) was identified as one of the sectors that relied heavily on trading with the EU, with many firms in the sector experiencing additional costs and delays while transitioning to the new administrative systems. The impact, however, has varied widely by firm. Large firms that had the resources to adapt to the new regime have adjusted to the new system and are now operating largely as normal. Smaller firms have experienced much greater disruption, and many have ceased trading with the EU. 

Overall 28% of North East firms in all sectors said that they had faced additional transportation costs due to the end of the EU transition period in April 2022, while 22% said they had faced extra costs due to red tape. 43% said they faced no extra costs^[4].

Some manufacturing firms have been using EU-Exit as an opportunity to re-shore activity in the UK, potentially leading to greater employment opportunities in the region. MAKE UK feedback suggests that up to a quarter of manufacturing businesses intend to re-shore activity back to the UK to address weaknesses in their global supply chains, as well as to increase production and protect jobs and skills domestically. Many firms in the manufacturing sector have also identified opportunities in markets beyond the EU because of EU-Exit. Firms have suggested there may be opportunities to grow exports to Australia, Asia-Pacific and South America. It is worth noting however, that the Office for Budget Responsibility’s long-term projections for UK exports suggests that UK exports will be 15% lower in the long run than if the UK had remained in the EU. They also suggest new trade agreements will have little significant impact due to the UK already having substantial agreements with non-EU partners under the EU’s existing trade agreements.^[5]

The consequences of EU-Exit are still to be fully realised due to many subsections of the EU-UK free trade agreement still being subject to final confirmation^[6]. One of the most significant of these is the Northern Ireland protocol. Currently the protocol avoids the need for a customs border on the island of Ireland by leaving Northern Ireland within the EU’s customs territory and single market for goods, but consequently this requires a customs border within the Irish sea which has proven disruptive to internal UK trade^[7]. The UK wishes to renegotiate the current assumption that goods entering Northern Ireland are EU bound unless this can be proven otherwise and remove the European Court of Justice from the protocol, which could lead to the UK triggering the protocol’s safeguard clause^[7]. These future negotiations could lead to EU trade through Northern Ireland being further disrupted. 

Other areas outstanding could have a particular impact on advanced manufacturing. For instance, the UK has retained for itself the right to diverge from REACH, the EU legislation on the regulation of chemicals in the EU^[8]. Currently the UK has copied the existing legislation meaning the respective regulatory systems are closely aligned, but any future divergence could lead to additional costs for UK based manufactures, particularly as chemical supply chains are complex and often cross the UK-EU border several times. 

In addition, while the UK/EU free trade agreement allows for tariff free trade of goods between the UK and the EU, this is subject to rules of origin requirements^[9]. These requirements mean that a certain percentage of the value of the goods traded must be from either the UK or the EU. Most UK goods meet these requirements but some currently rely heavily on imports from beyond Europe. The batteries in electric vehicles for instance are typically imported from Asia. While currently the existing agreements contain a special provision for electric vehicles which allows a lower required portion of the value to be from the UK/EU this is set to revert to the higher standard in the next few years. If the UK is unable to manufacture a greater portion of these batteries in the UK this could lead to a tariff of up to 10% being applied to electric vehicles exports, which as production increasingly moves to electric vehicles could have a significant impact on the overall cost for UK manufacturers.

Energy crisis and inflation

As the global economy has emerged from the COVID-19 pandemic energy prices have increased dramatically, both in the UK and elsewhere. This has been driven by a series of factors, including a longer than expected winter over 2021 which reduced reserves, the relative underperformance of renewable and nuclear based energy sources over the last year, and increased demand for gas in Asia and South America as these areas transition away from coal^[1]. In the UK this has been exacerbated by the fact natural gas demand has outstripped domestic production for almost all of the last 20 years. At the same time, there’s been a consistent scaling back of storage facilities. Most comparable countries measure reserves in terms of months’ demand, while the UK has just weeks of supply^[2]. 

Manufacturers tend to use more energy than firms in the service sector and the impact of this increase on energy prices on businesses has been considerable^[3]. In the short term most firms are unable to reduce their energy usage and so must either absorb the cost or pass the cost on to consumers^[3].

From a wider economic perspective, the increase in energy prices has also been the primary driver behind increased consumer price inflation in the UK and elsewhere^[3]. The Consumer Price Index reached 10.1% in September, which has a range of implications in terms of how businesses need to cost their inputs and align their prices. 

In their May 2022 Monetary Policy Report the Bank of England stated that they expect inflation to continue to rise over the near term reaching a peak of around 10% in Q4 2022^[3]. The expectation is that consumer price inflation will fall back to 2.1% in two years’ time. 

However, despite the anticipated decline of inflation back towards the 2% target, inflation has considerably worsened the overall economic predictions of the Bank of England. Businesses may also face pressures on wages in response to inflation, further increasing production costs, while consumers may reduce spending in response to rising prices. The UK’s economy is therefore now expected to contract in Q4 2022 and experience very modest growth over the next two-three years^[3].

War in Ukraine

The global economic situation has been adversely impacted by the illegal Russian invasion of Ukraine on February 24th 2022. This is expected to curtail international trade with Russia and Ukraine, further increase energy prices and the price of some other commodity groups, and disrupt global supply chains^[1].

Trade with Russia and Ukraine has already significantly reduced due to disturbance within the conflict zone and the imposition of sanctions on Russia^[2]. This may not have a large impact on the overall trade totals for the North East as both Russia and Ukraine are relatively small markets from a North East perspective. Only 2.5% of North East imports and 1.8% of exports were to these markets in 2021. However, there are particular commodity groups where the North East currnetly sources a high proportion of its imports from these markets. 25% of the petroleum, petroleum products & related materials imported into the North East in 2021 were from Russia while 46% of North East Iron and Steel imports were from Ukraine. The disruption to Iron and Steel has already impacted on the expected revenue of the Port of Sunderland through which much of this steel is imported. The overall trade totals may not be significantly impacted but the supply chains for some commodity groups may have to be altered.

The most significant economic impacts resulting from the invasion however, are likely to be the global impact on prices and the broader disruption to supply chains. Energy prices, which were already rising before the conflict, are expected to further increase due to Russia’s role as a major energy producer responsbile for 17% of the world’s natural gas supply and 12% of its oil^[3]. UK gas futures rose 24% in the week following the Russian invasion (370% up over the year)^[4]. 

The UK is less dependent than many other European countries on Russia for its energy supply importing around 13% of its total fuel (oil, gas, LNG, and electricity) from Russia in 2019. Germany, for example, imported around 30% of its total fuel from Russia in the same year^[3]. However, it should be noted that UK and European energy prices tend to move in tandem, so lower imports from Russia alone may not mean that energy prices in the UK are less impacted than those in other European countries^[3]. It should also be noted that manufactureres are highly dependent on European markets that import a significant amount of energy from Russia. This includes Germany, which was the North East’s single largest export market in 2021.

In terms of broader price increases Russia and Ukraine are responsible for the production of a significant share of world supply of several key commodities. From an advanced manufacturing perspective Russia contributes a large share of global supply of key rare metals, including 41% of global Palladium supply, 9% of Nickel supply, 6% of Aluminium supply and 4% of Copper. Palladium in particular is essential for the production of catalytic converters in cars and there is already evidence of the price of these metals increasing. This may further add to price pressures facing manufacturing firms in the North East.

Beyond price increase the conflict appears to be disrupting global supply chains. While modern supply chains increase security due to flexibility and many firms have proven adaptable in response to the COVID-19 pandemic, if the production of certain goods is affected this can lead to bottlenecks that have effects beyond what might be expected from direct trade links alone^[2]. European measures of supply chain disruption have been increasing since the invasion of Ukraine.

The future economic impact of the Russian invasion is highly dependent on how the conflict evolves. There is also no clear timeline for how the conflcit may end, with some analysts predicting this could take years. Until the conflict does end there may be increased economic disruption in other areas.

Emerging policy areas

Levelling-up

One of the Government’s other flagship policy areas is the Levelling Up agenda. This agenda aims to ensure that everyone in the UK has the opportunity to flourish by ending the extensive geographic inequality between different local areas. The objective of Levelling Up policy is to increase productivity, employment, pay, and living standards by growing the private sector, especially in areas that are currently underperforming. 

The Government’s ambitions were set out in the February 2022 Levelling Up White Paper^[1], which outlines 12 Levelling Up missions intended to provide clarity and consistency on policy objectives across government, with measurable outcomes by 2030. These missions cover a wide range of areas, including living standards, innovation, skills, and pride in place. Alongside each of these missions the Government published a series of provisional metrics against which progress on each mission is to be monitored. These metrics, particularly the metrics for mission 1 (living standards) provide a framework for understanding how growth in the advanced manufacturing sector can contribute to the Levelling Up agenda. 

Advanced manufacturing already makes a key contribution to many of these metrics within the North East, particularly productivity, employment, and regional exports. In terms of productivity, productivity per hour worked in Sunderland is £38 per hour, significantly above the £33 per hour average for England excluding London^[2]. This is largely due to the highly productive automotive cluster in Sunderland and further growth in the sector could help bring overall productivity per hour in the North East LEP closer to the England excluding London average. The sector is also already well positioned to grow due to its embrace of the transition to electric vehicles, with the global electric vehicle market alone predicted to grow at a CAGR 22.6% between 21-25^[3].

In addition to productivity, advanced manufacturing also makes a key contribution to regional employment, with 67,000 individuals in employment in the sector across the North East LEP in 2021^[4]. Not only this, but these employment opportunities are located in some of the more deprived areas of the North East LEP, and therefore contribute towards employment where the overall labour market is relatively weak. For example, the major employer in the sector, Nissan, is located in Sunderland, which of the 316 local authorities in England (excluding the Isles of Scilly) is the 23rd most income-deprived^[5]. Future growth in the sector, building on an existing skills base and ecosystem, can potentially further increase employment in relatively deprived parts of the country. The 21 sites across the North East Enterprise Zone, which enterprises in advanced manufacturing can benefit from, further help ensure that employment opportunities are distributed across the North East LEP area.

These employment opportunities are not limited to the sector itself, for as outlined in the North East Strategic Economic Plan growth in areas of strategic importance also contributes to employment in supporting sectors. In the case of manufacturing there are particular links to growth in employment in logistics through increased exports. Not only does this further increase the contribution of the sector towards regional employment, but growth in exports disproportionally impacts deprived and disadvantaged neighbourhoods, as the wards adjacent to the region’s ports are amongst the most disadvantaged in the region. As manufactured products tend to be exported through ports, these wards are more likely to benefit from growth in the sector.

In addition to its contribution to productivity and employment the sector is responsible for the majority of regional goods exports and a significant proportion of regional service exports. Machinery and transport equipment was responsible for 45% of North East exports in 2021, chemical and related products 24% and manufactured goods classified chiefly by material a further 16%. Road vehicles exports alone accounted for 21% of North East exports in the same year, while manufacturing service exports were the second largest industry grouping in 2019 accounting for 21% of the North East total. Growing the total value of regional exports can build on this already strong sectoral contribution.

Another key objective of Levelling Up policy is to improve pride in place, with Mission 9 focused on residents’ perception of their local area. Manufacturing has a long and distinguished history across the North East, which is reflected in positive public attitudes towards the sector and related industries. The growth and development of the sector can build on this heritage and contribute to regional pride. 

In the Levelling Up White Paper, the government commits to supporting private sector partnerships and clusters to catalyse economic growth, job creation, and innovation. The North East Automotive Alliance (NEAA) and the North East of England Process Industries Cluster (NEPIC) are identified in the White Paper as examples of successful private sector initiatives.

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Beyond COVID-19 there is also a growing awareness of the instability of some key trade routes. For instance, in March 2021 the Ever Given container ship was grounded within the Suez canal for six days. This led to 369 ships in a tailback waiting to pass through the 193km canal on either side of the blockage, and it was estimated that the closure of the Suez canal could cost global trade between $6bn to $10bn a week and reduce annual trade growth by 0.2 to 0.4 percentage points^[1]. There are also concerns that the risk of piracy, already costing the world economy $12 billion a year, may have become more acute due to COVID-19^[2].

While support for reshoring is not universal across the manufacturing sector a significant minority of manufacturing firms intend to re-shore at least some of their production. 37% of surveyed manufacturing firms in 2019 claimed to be planning to move previously offshored processes back to the UK^[3]. MAKE UK also found that up to quarter of manufacturing firms intend to re-shore manufacturing capability^[4]. 

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Internationalisation

A further element of the UK government’s policy agenda is to increase the value of the UK’s exports. Made in the UK, Sold to the World was released in November 2021 and is a refresh of the UK’s previous 2018 trade strategy^[1]. The ambition of the strategy is to reach £1 trillion exports annually before the current projections which suggest that milestone will be reached in the mid-2030s. It notes that exports are key to driving increased capacity in sectors crucial to the success of the Net Zero strategy.

The new trade strategy also focuses on increasing exports in strategic sectors to maximise the UK’s competitive advantage. This includes sectors in which the UK is already a world leader, such as clean economy, and sectors of national significance, such as shipbuilding.

The strategy is to be supported through a 12-point plan for action. A key aspect of this plan includes the opening of new markets to UK exports through new trade deals, with the ambition to have these cover 80% of UK trade by the end of 2022. This includes trade deals that have been reached in principle with Australia and New Zealand and the ambition to ascend to the CPTPP, one of the largest free trade areas in the world covering Asia pacific and the Americas. The Government also announced the beginning of free trade negotiations with India in January 2022 with an aim to conclude an agreement by the end of the year^[2]. These future agreements are focussed on the Asia-Pacific region as the Government believes future world growth will be driven by markets in this area.

The wider North East region has a significant opportunity to capitalise on this strategy. The North East already has a high exports per head compared to the rest of England. Specific aspects of government policy are also likely to create opportunities for the North East region. This includes the creation of the Tee’s valley free port, officially opened in October 2021. This low-tax customs zone is expected to provide a £3.2billion boost to the local economy over the next five years^[3]. The Government has also opened a second DIT headquarters in Darlington, providing close proximity to the DIT for regional exporters. The opportunities provided by this infrastructure on the North East’s LEP’s doorstep have the potential to significantly increase the exporting capability of the North East LEP’s advanced manufacturing sector.

The North East LEP is also actively working with partners across the region to increase North East exports, having published a new trade and exports strategy in June 2021. This strategy highlighted opportunities to build on existing high levels of exports, the trend of increasing global service exports and the growing digital transformation of manufacturing. Advanced manufacturing, offshore energy and subsea technologies and healthcare and pharmaceuticals were also all highlighted as sectors with existing and future exports potential. 

As highlighted in the Levelling Up section above, this future potential builds on the already strong contribution of manufacturing to North East exports. In 2021 the North East exported goods worth £12 billion, including £2.4 billion of Road Vehicles exports. The North East also exported manufacturing services worth £1.4 billion in 2020, with exports from the sector increasing even despite a decline in overall exports totals from the North East. 

Innovation

Underpinning the Government’s ambitions with respect to building back better, Net Zero and internationalisation is their innovation strategy. This strategy highlights successful innovation in the private sector is an essential part of the UK’s future prosperity and therefore essential to achieving the UK’s other objectives. The innovation strategy was released in July 2021 and states that the Government’s objective is to make the UK a global hub for innovation by 2035^[1]. To achieve this the strategy outlines a series of key actions, grouped into four pillars, unleashing businesses, people, institutions & places, and missions & technologies.

The innovation strategy commits to not just designing innovative products in the UK but also manufacturing them domestically. This can reduce the delay between innovation and product launch, realising the gains from innovation more rapidly. It also ensures the resilience of key sectors such as health and life sciences in accordance with the reshoring agenda outlined above. The development of advanced manufacturing is therefore key to underpinning successful innovation.

Advanced manufacturing in the North East possesses considerable regional assets that can accelerate innovation and contribute to the wider innovation agenda. For example, the North East is home to the Centre for Process Innovation (CPI). The CPI helps companies develop and scale-new innovative products by providing access to valuable expertise and networks, and currently has over 550 staff and five sites across the North East of England. 

The automotive & advanced practice group (AMAP) hosted by the University of Sunderland is another important regional innovation asset. Offering business support to advanced manufactures across the region, AMAP aims to inform, inspire, and innovate in advanced manufacturing through the application of research and knowledge. They are also responsible for hosting the Sustainable Advanced Manufacturing project, a £10.9m project to support product and processes development within the SME manufacturing base in the North East funded by the European Union Regional Development Fund.

Despite these regional assets however, there are also structural challenges facing the region that limit the potential for regional innovation. One of the most significant of these is the low level of research and development spending per head in the North East, which is lower than all other English regions. In addition, the strength of alternative centres of research and development such as the West Midlands means that even firms in sectors where the North East is a national leader perform their R&D outside the region.

Overall, the significant regional innovation assets in the North East, along with the further assets outlined in the next section, mean that advanced manufacturing in the North East is well positioned to contribute the Government’s goal of making the UK a global hub for innovation by 2035. One of the Levelling Up missions commits to increasing public R&D spending outside the Greater South East by at least 40% by 2030. This increased expenditure will be key in unlocking regional innovation.

Innovation and business support

• Centre for Process Innovation – Part of the High Value Manufacturing Catapult and headquartered in the North East, the Centre for Process Innovation (CPI) helps companies develop and scale new products and processes. This includes companies operating in the pharmaceutical, automotive and chemical sub-sectors. They have a team of over 550 scientists, engineers, and business specialists who can helping companies to develop, prove and commercialise new products and processes.
  • National Formulation Centre – One of the sites in the CPI, the National Formulation Centre offers tailored solutions for developing and optimising liquid and powder formulations, nanomaterials, composites, chemical processes and new technologies. The site provides state of the art facilities and skilled personal who can help local enterprises develop solutions to their product needs.
  • The National Printable Electronics Centre – Is a further site in the CPI that accelerates the commercialisation of printed and flexible electronics. By providing an environment where companies can test and develop concepts the centre supports innovators through the challenges of scaling products and process.
• Offshore renewable energy catapult – The ORE catapult is UK’s leading technology innovation and research centre for offshore renewable energy and plays a key role in accelerating the development of UK companies in the offshore renewable energy sector. Their site at Blyth contains world leading assets for the testing of renewable energy technology.
  •  The Robotics and Autonomous Systems Test Site – Part of the Offshore Renewable Energy Catapult this new testing site for emerging robotics technology is the first of its kind in the UK. The site was awarded £3 million from the government’s Getting Building Fund in February 2021.
• Centre of Excellence for Sustainable Advanced Manufacturing – Is an innovation centre that supports innovation and knowledge transfer in the advanced manufacturing sector.
• Made Smarter programme – The Made Smarter programme supports businesses to get to market faster, cut costs and reduce downtime. It does so by helping businesses invest in digital tools, innovations and skills. Support through the Made Smarter programme in the North East LEP is available via the North East Growth Hub.
• Automotive & advanced practice group (AMAP) – Hosted by the University of Sunderland AMAP aims to inform, inspire and innovate in advanced manufacturing through the application of research and knowledge. They offer support to local businesses by sharing contacts and best practice, providing training, and undertaking research.
  • Sustainable Advanced Manufacturing Project – Is a £10.9m project to support product and processes development within the SME manufacturing base in the North East. The project is a collaboration between the European Regional Development Fund and the University of Sunderland and is managed by Sunderland University through AMAP.
• North East Centre of Excellence in Satellite Applications – The Centre helps businesses to exploit the use of satellite data, technology and applications to gain a competitive advantage in a global market. The Centre works with both organisations that are currently in the space sector but also those that have potential to operate in the sector but have not yet investigated the opportunities.
• Innovation Supernetwork – The Innovation Supernetwork aims to help North East businesses bring innovative products and services to market. They do this by providing bespoke innovation support to small and medium sized enterprises in the North East LEP area, as well as increasing connectivity and sharing best practice.
• Materials processing institute – Located in the neighbouring Tees Valley, this research and innovation centre focuses on the development of materials and commercialisation of technologies for the industrial processes
• The Welding institute – Located in the neighbouring Tees Valley, the Welding Institute is a leader in materials research, covering a wide range of technologies for industrial sectors
• The industrial digitalisation technology centre – Located in the neighbouring Tees Valley and led by Teesside university, the centre helps local businesses explore the opportunities available through industry 4.0 and digitalisation
   

Further information