Terry Hodgkinson: Five ways to boost Yorkshire economyas business chiefs prepare for summit

In my opinion, there are five issues that need exploring.

1, We need to get more out of our universities and further education colleges.

This means connecting them better to business so local firms benefit from excellence in research, training, business development and the like.

From my experience and inter-action with these institutions, there are untapped resources in abundance that our businesses could gain from.

For example, knowledge on product development with the cross-fertilization of ideas across industry sectors.

We need to find new ways of doing this.

2, Making ordinary businesses exceptional.

If you’re in the service or leisure industry, this means outstanding customer service and if you want to be the best, ask and learn from the best, like Disney in Florida.

But if you want a few smaller local scale examples, take The Magpie in Whitby.

You rarely see it without a queue of 20 or more outside any time of the year, or take any outlet of Bettys, they are nearly always full.

Lastly the new Ice Cream Farm, Halton East, near Skipton, a great concept, in its early days but destined for success, with a little bit of “Disney” magic.

If you’re in manufacturing or production, it’s all about quality, on time, at the right price, with the right people in the right place and the attention to detail that differentiates great companies from the also-rans and their products.

Ask and learn from the best in class.

3, Take opportunities to change production habits and increase exports in changing world markets.

Places like China and India have enjoyed double figure growth for many years, but their labour costs are now rising. Along with raw material prices and the cost of shipping, outsourcing is no longer as attractive – witness the call centres returning to the UK – and alternative UK manufacture and assembly should be a worthwhile consideration for several industries.

China’s thirst has grown for high quality goods, which have fuelled Land Rover’s results recently, even with a 100 per cent per cent import duty. While I’m told that women in Britain judge men by the quality of their shoes, I understand such decisions are based on the quality of the cigarette they smoke in China.

A Wakefield printing machinery business exports several million pounds worth of specialist printing equipment each year that prints high quality cigarette packets laminated with gold leaf and has never been busier.

Yorkshire needs to be back in to high quality manufacturing and selling its brands to these new found wealth markets with changing lifestyles.

4, Develop inspirational leaders.

In every successful business lie leaders with this characteristic, who have been critical to business growth and success – we need more of them.

I’ve seen it first hand in many of our Yorkshire-based companies like Gripple, Pace, Mamas and Papas, NG Bailey, Sewell Group, Wakefield College, Skipton Building Society, Asda, Morrisons and Nestle – I’ve seen characters who have made them great.

But for some others, I’ve seen a confusing ignorance between the acts of management and leadership, for those, they need to manage “things” and lead people.

You often see in successful organisations leaders surrounding themselves with great people, they penetrate and eradicate the “marshmallow” tier of ineffective leadership left from previous regimes. It is time for brave, bold, and wise leadership to successfully navigate our current stormy economic waters.

5, The promotion and take-up of different types and styles of business. Franchising would be a good example of this, it’s been around for some time in the food business with companies like Pizza Hut and McDonalds.

There is a new wave of ventures started like The Alternative Board fronted by Martin Allison, which creates business support groups.

One of the big advantages of franchising is that for a relatively small investment, you have enormous support that would not normally be available to a standalone start-up venture.

There are plenty of websites to visit to look for opportunities, but it wouldn’t be a bad idea for the Local Enterprise Partnership to encourage franchising.

I’ve also seen significant internet businesses grow from small beginnings in a very short time.

Take Rita Britton’s Pollyanna design outlet in Barnsley, I remember taking a very elegant lady from London on her first visit to Barnsley after a meeting for a coffee at Rita’s to impress her.

Ten minutes into the conversation, she opened up her jacket to reveal the Pollyanna label, bought on-line, but she was so pleased to meet the person behind the brand. Another great example is the many women who are part of the group Women in Rural Enterprise who have created on-line businesses. On-line business is not new, but with ever improving coverage, speeds and access, it makes new and more sophisticated on-line models a possibility.

These are the kind of issues that Yorkshire needs to address if it is to have a prosperous and vibrant future.

The Leeds City Region Local Enterprise Partnership will launch its plan to boost the area’s economy at a free conference at the Royal Armouries in Leeds on September 9. Places are limited.

For more details, visit www.leedscityregionsummit2011.

* Terry Hodgkinson is the former chairman of Yorkshire Forward