Enterprise zones are a Government initiative to encourage private sector growth by allowing LEPs to choose areas that can enjoy benefits such as reduced business rates and simplified planning rules.

It said that after a detailed analysis of each proposal the Aire Valley Leeds was identified as the most productive option.

According to the LEP, the Aire Valley Leeds can deliver a long term funding stream for the LEP to invest in promoting economic growth, a significant increase in economic output and new jobs, and access to job opportunities across a wide geographic area

The recommendation has been also guided by the Government’s requirement that the enterprise zones should be generally based on ‘clean sites’ with little or no business occupants.

The LEP said the Aire Valley Leeds can deliver £550m of additional economic output and over 9,500 new jobs by 2025, which will be accessible to over 630,000 households in the city region.

Neil McLean, chairman of the Leeds City Region LEP board, said: “The opportunity presented by the Aire Valley enterprise zone is extremely good news for the whole city region and seen by the LEP as a positive first step towards fulfilling its ambition to grow and become a world-leading, dynamic economy.

“Bradford city centre is a clear regeneration priority for the city region and has the LEP’s full support. Next steps include examining which funds and financial mechanisms can best support the delivery of major investments that the Bradford city centre needs.

“We are also supporting Selby’s Regional Growth Fund bid to round twb and we have made a commitment to work with Wakefield to broaden the district’s employment base.”

The LEP board said it feels that the opportunity presented by this funding stream is important for the City Region but needs to be seen as part of a wider range of funding options being explored by the LEP board.

It said: “The work already conducted on the other enterprise zone proposals has identified a range of important issues that the LEP will need to give consideration to in developing its plan, to address its longer term priorities and deliver its ambition.”

The plan will be discussed with businesses and LEPs across the country at a national event organised by the Leeds City Region Partnership on September 9.

While the skills gap and over-regulation present continuing problems for manufacturing companies, management from firms including Mitsubishi Power Systems Europe, Group Rhodes, Thorite, LBBC and Airedale International all said that market conditions are improving and they are focused on taking advantage of growing opportunities.

Leeds Manufacturers: Surviving and Thriving in a Competitive Environment was organised by Leeds Manufacturing in partnership with sponsors Santander Corporate Banking, Clarion Solicitors and Deloitte, who hosted the breakfast at its offices at No 1 City Square in Leeds city centre.

Speakers at the event included Leeds City Council chief executive Tom Riordan, Andy Tuscher from EEF, managing director of LBBC Howard Pickard and Airedale International’s managing director Clive Parkman.

Riordan told manufacturers that they have a bigger role than ever to play in the success of the region, particularly with the launch of the local enterprise partnership.

He said: “We are at the start of a new era in which business and economic growth will be self-starting and business-led. The message from the LEP is to lose the politics and concentrate on jobs and investment.

“Let’s do some myth-busting: manufacturing makes a major contribution to the economy of Leeds and the wider city region and is critically important for the economy going forward.”

>>> Read the full report on Leeds manufacturers: surviving and thriving on The BusinessDesk.com

But, aware of the potential impact on their competitiveness, rather than passing price rises on to customers they are working hard to find new ways of reducing overall costs and reduce overheads.

And, while commentators seem to be predicting an increase in interest rates as almost inevitable, companies surveyed by question the effectiveness of a rate rise.

The survey findings are summarised in a new report published by Leeds, York and North Yorkshire Chamber of Commerce and the University of Leeds.

Mark Goldstone, the chamber’s head of corporate relations, points out that he majority of price increases are coming from international increases in basic commodity prices such as oil, metal and foods. “Increasing interest rates could simply add to the cost pressures facing business rather than relieving them,” he says.

Recognising that rising costs make it increasingly difficult to compete in price, the report advises businesses to focus on quality, niche positioning, product development and diversification as alternative business strategies.

It also calls for increased investment and a review of processes to increase productivity. And the report recommends businesses renegotiate commercial terms with partners, highlighting the preferential rates on a wide range of business services that are available to chamber members.

The full report – Under pressure: How inflation and rising cost pressures are impacting on local businesses – is available online.

Finding the right people will also be crucial to long term sustainability of manufacturing. This was reflected in discussion round our table, with many manufacturers now ‘importing’ skills form other parts of the UK but recognising that, ultimately, the ageing workforce profile of the sector makes it essential to open up manufacturing to a new generation.

It’s a problem across the sector as shown by the launch today of the ‘Work Wise’ initiative, which aims to encourage and support young people to take up careers in manufacturing and engineering. The initiative has been backed by 50 South Yorkshire employers who are accutely aware of the need to renew the skills base within industry instead of companies feeding off one another’s skills base.

Given that there nearly twice as many people employed in manufacturing in West Yorkshire than there are in South Yorkshire, the need for an initiative in this kind is even more pressing. Something for the Leeds city region Employment & Skills Board and organisations like the EEF to consider?