Yesterday (19 March), several of the North East’s leading politicians called for an increased focus on skills and investment to boost Teesside’s economy and exports, as the mayor of Tees Valley paid tribute to the region’s “world building” past.
The event, 'Trade Potential of Teesside', was sponsored by Lord Houchen, the current mayor of Tees Valley, and featured speeches from both Houchen and Lord McNicol, the shadow spokesperson for business and trade in the House of Lords.
A number of politicians and representatives from industry were also in attendance to discuss the trade potential of the region.
Institute of Export & International Trade (IOE&IT) director general Marco Forgione spoke of the “huge growth opportunities for Teesside” in his remarks to the room, which included both Labour and Conservative MPs from Stockton, Middlesborough and Hartlepool.
Teesside steel
“Teesside built the world”, said Lord Houchen, referring to the steel that came from northeastern foundries that built projects across the world, such as the Burj Khalifa in the United Arab Emirates and the Sydney Harbour Bridge in Australia.
“We need to work with organisations like IOE&IT to stay ahead of the curve and put skills at the heart of what we do”, the Tees Valley mayor said.
Last year, IOE&IT helped launch the Centre for Digital Trade and Innovation (C4DTI) to “accelerate the digital transformation of trade” in Teesside, particularly for MSMEs (micro-, small- and medium-sized enterprises).
Lord Houchen also spoke of the Tees Valley freeport, calling it the “most successful freeport” currently in operation, citing recent developments such as BP’s Net Zero Teesside project and Liberty Steel’s decision to invest in a carbon capture project in Hartlepool.
The Conservative mayor referenced the air cargo deal Teesside Airport signed with FedEx yesterday (19 March), which many business figures said could play a vital role in growing the local economy and building up the area’s freight capacity.
‘Growth’ is there
Previously, Durham Tees Valley airport had faced risks of closure after a significant drop-off in commercial passenger traffic.
Lord McNicol, a former general secretary of the Labour Party, spoke of the opportunities of the UK’s recent free trade agreements with New Zealand and Australia, as well as the recent accession to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).
He added that “growth is the only way to deliver as a country”, pointing to cross-party work that he hoped would continue regardless of which party wins the next general election, widely expected at some point in 2024.
Skills challenge
Forgione and Lords Houchen and McNicol all referred to the skills gap in Teesside and the need to bridge this as part of the drive to reduce regional inequality.
Last year, IOE&IT together with Flint Global produced a report looking at the UK’s services export potential by region, and found that, although Teesside ranks highly in several metrics, one area in which it currently lags behind is education and skills.
IOE&IT research found that the Tees Valley area ranked 37 out of 41 regions for “economically active professionals” with a qualification above a level 4 qualification. For context, a Level 4 qualification is the equivalent to an apprenticeship or the first year of a university course.
North East 'spark'
Houchen said that “skills should be at the heart” of growing the North East’s economy.
Forgione finished by speaking on the growth opportunities for Teesside from trade, calling the region a “spark” and “exemplar” for the work in building up the UK’s nations and regions.
“The time is now. Teesside is what we’ve been waiting for.”
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