An independent study, published today, reveals how much Advantage West Midlands is adding value to the regional economy, benefitting people, businesses and communities across the West Midlands.

The National Impact and Evaluation Study, published by PricewaterhouseCoopers on behalf of the Department for Business, Enterprise and Regulatory Reform (BERR), shows that Advantage West Midlands generates an overall benefit to the region of £7.45 for every £1 it invests.

The Study found the Agency's investment directly helped create over 65,000 new jobs and 5,000 new businesses between 2002 and 2007. 

Through its interventions, the Agency is on course to contribute an additional £7.35 billion of Gross Value Added (GVA)1 to the regional economy. Already, £4.17 billion has been achieved, and the balance will come as longer-term projects such as the new high technology parks at Ansty near Coventry and i54 near Wolverhampton continue to provide returns into the future.

Nick Paul CBE, Chairman of Advantage West Midlands, said: "I'm delighted this independent study shows that we are on course to add £7.35 billion GVA to the regional economy.

"We are a business-like and business-led organisation, and our knowledge of business has enabled us to lead the economic development of the region, bringing together public and private sectors effectively to deliver the strong results reported today.

"Evidence of the agency's leadership can be seen in the West Midlands Economic Strategy.  Developed by Advantage West Midlands through unprecedented partner consultation and involvement, it is a robust and focused strategy with real buy-in and support from across public and private sectors.  It sets the direction for the economic development of our region towards a diverse, highly skilled and prosperous West Midlands economy.

"While much of our current focus must be on responding to the economic downturn, working through the West Midlands Taskforce, we also have to maintain a strategic overview of the region's future, leading on the longer-term regional developments such as our £100m investment in Birmingham New Street - the largest single RDA investment ever."

Ian Austin, Regional Minister for the West Midlands, said: "I'm very pleased that the work of Advantage West Midlands has achieved so much. The agency has not only exceeded its overall government targets but, as this study clearly shows, it has delivered excellent value for money, too.

 "I am convinced the West Midlands needs a regional business-led investment body now more than ever - not just to support families, help businesses and save jobs during the downturn, but to build a stronger economy for the long-term. 

"We need to drive up skills, attract more businesses and investment to the region, promote enterprise, create more jobs and build the homes families in the West Midlands need and there is no way we'll meet those challenges without the expertise and hard work put in by everyone at Advantage West Midlands."

Mick Laverty, Chief Executive of Advantage West Midlands, said: "The study provides robust evidence of the Agency's performance in leading the delivery of the West Midlands Economic Strategy and, in comparison with Eddington's2 view that a £5 return on £1 of public investment represents good value, I think our figure of £7.45 GVA return is exemplary. 

"From 2002-2007 we exceeded all our cumulative Government targets but, more importantly, we can be proud of our achievement in creating 65,000 jobs and nearly 5,000 new businesses, providing skills development to over 101,000 people, bringing 570 hectares of brownfield land back into use and attracting nearly £480m of other investments into the West Midlands.

"Even better, the study shows that an overwhelming proportion of the Agency's funds (94%) goes directly to the people and projects we support.  This very high level of efficiency means we offer outstanding value for money for the Government and for the businesses and people of the region.

"We are taking a leading role in the regional response to the current economic downturn through the West Midlands Taskforce, offering support for businesses and people, with a focus on fostering growth and job creation. 

"And with the arrival of the West Midlands' Single Integrated Regional Strategy, we will continue to play a pivotal role in building a more highly skilled, sustainable and prosperous region.    

"We will use the findings of today's study to inform our future investment decisions and will strive for continuous improvement in all our work as part of our implementation of the Business Excellence model.

"This study's finding's are a tribute to the staff, the chairmen and the board, past and present, for all their hard work in adding value to the regional economy, bringing real benefit to the people and communities across the region we serve."

Geoff Percy, Chairman CBI West Midlands "In both good and bad times it's crucial to the region's success that Advantage West Midlands continues to develop regional responses to the challenges industry and commerce face now, and in the future.  This recent study shows the value of the Agency's business-focused approach to working with the private and public sectors.   Our collective challenge is to close the £10bn output gap and make the region the place of choice to do business."  

Richard Boot, Regional Chairman, Institute of Directors "It's great to see that Advantage West Midlands can evidence its positive impact on the regional economy and will return a healthy £7.45 for every £1 invested.  The Institute recognises the value of Advantage West Midlands in bringing the private and public sectors together to tackle the negative trends facing the region.  It must also continue to play a key role in focusing public and private investment on projects that will bring the maximum benefit to the region's economic future." 

Martin Wassell, Chief Executive, EEF "Manufacturing remains a key component in the region's economy and the variety of support and strategic leadership Advantage West Midlands provides is, and will be, a vital ingredient in the West Midlands' continuing success.  The Agency's business focussed approach is welcome as the success of the Manufacturing Advisory Services demonstrates.  Also, the Agency's support for innovation, skills and new technologies sends out the right signals to industry about the need to develop products that will be part of the high-value,  low carbon and low energy future."