The key limitation of <strong>the</strong> area appears to be <strong>the</strong> lack of specific support at <strong>the</strong> regional level (One NorthEast, Regional Development Agency) and <strong>the</strong> wavering promotion of <strong>the</strong> marine/ offshore cluster concept: - lack of active marketing; - poor high level investment in enterprise, research and development and incubator poles, <strong>for</strong> example, by comparison with o<strong>the</strong>r UK areas. The effect appears to be that of not adding value to <strong>the</strong> industries of <strong>the</strong> sector that are located in Walker. The practice, however, equally unfavourable to industries of different sectors that are located in <strong>the</strong> area and feel <strong>the</strong>ir businesses are not valued. O<strong>the</strong>r disadvantages of <strong>the</strong> area are its poor local accessibility, <strong>the</strong> topographical constraints, <strong>the</strong> restricted yards, and <strong>the</strong> poor physical image of <strong>the</strong> core area. 3.3 Current Property Situation site, which came on <strong>the</strong> market during <strong>the</strong> study, with a fur<strong>the</strong>r 6.8 ha (16.8 acres) whose leases expire on or be<strong>for</strong>e 2011. There is a concentration of available or potentially available land in <strong>the</strong> central part of <strong>the</strong> study area, where constraints (topography, access, different aspirations of <strong>the</strong> residents) are more acute. The availability of sites opens up <strong>the</strong> opportunity of upgrading parts of <strong>the</strong> area, improving <strong>the</strong> infrastructure (particularly access), and of reviewing land use / occupation policies. 3.4 Site Marketing The City Council directly manages and markets <strong>the</strong> industrial Walker Riverside. The area is easily identified through a web search, in <strong>the</strong> Competitive Newcastle website, where appropriate contact details are given. Similar contacts are provided on site, on signposts. The area is well known in <strong>the</strong> industrybecause of its shipbuilding tradition. The City Council is freehold owners of approximately 75% of <strong>the</strong> overall area, which is largely let out and subject to ground leases. The City Council, thus, has a degree of control over <strong>the</strong> area, particularly where <strong>the</strong> leases are about to expire. The March 2003 Supply and Demand <strong>Study</strong> descibed around 50% of <strong>the</strong> premises as“pre World War 2”, and less than 30% as “Modern”. The proportion has slightly changed, with a few more premises recently developed and a few older ones cleared and demolished (see Fig. 3.3). Rental levels are in line with those achieved in o<strong>the</strong>r industrial locations across Tyne & Wear. However some units on Fisher Street achieve lower rents, and one recent scheme (UK Land) struggled to find tenants and none of its occupiers has associations with <strong>the</strong> marine/ offshore sector. From <strong>the</strong> site visits, however, it is evident that <strong>the</strong>re is a good proportion of active and growing industries in <strong>the</strong> Walker Riverside: - Duco and Wellstream are growing businesses; - Most medium and small sized industries of <strong>the</strong> sector have recently wea<strong>the</strong>red a contraction and are now <strong>for</strong>ecasting expansion within <strong>the</strong>ir premises or within <strong>the</strong> area itself; - The companies most closely linked with shipbuilding are experiencing a decline in activity and have reduced <strong>the</strong> number of staff. They are, however, preparing <strong>the</strong>mselves <strong>for</strong> future diversification. - Most recently built units are fully occupied, even if taken up by businesses not related to <strong>the</strong> marine and offshore sector. Never<strong>the</strong>less, it is a time of change in <strong>the</strong> Walker Riverside: in 2002 (prior to <strong>the</strong> suspension of work at A&P Tyne) 45% of businesses and 83% of <strong>the</strong> land had associations with <strong>the</strong> marine/offshore sector. This proportion might change according to <strong>the</strong> future of <strong>the</strong> Neptune Yard and <strong>the</strong> A&P site (see Fig. 3.1). There is no high level marketing strategy at <strong>the</strong> international, national and regional levels. The Regional Development Agency, One NorthEast, has not included Walker Riverside on North Tyneside within its priority commercial areas (see Chapter 5). The Regional Economic Strategy refers to <strong>the</strong> Renewable Energy Centre <strong>for</strong> Excellence in Blyth and <strong>the</strong> AMEC offshore industry Visitor Centre. Closer links with <strong>the</strong>se initiatives could be developed <strong>for</strong> more effective marketing of <strong>the</strong> Walker Riverside. 3.5 Likely Demand Manufacturing and shipbuilding are in decline in Tyneside. Many areas close to <strong>the</strong> city centre have been recently successfully converted into residential or leisure/ cultural areas. There are still large areas of <strong>the</strong> Tyneside River Corridor that are available <strong>for</strong> industrial development. The Property Supply and Demand <strong>Study</strong> had identified approximately 60 ha of available land on <strong>the</strong> north bank and 23 ha in <strong>the</strong> south bank (2002). This figure is likely to increase if <strong>the</strong> whole of A&P Tyne, Swan Hunter and AMEC sites came to <strong>the</strong> market. It also has to be remembered that <strong>the</strong> marine/ offshore sector is a global operation, and as such, <strong>the</strong>re is a global choice of potential sites. Incentives and political support are likely to be required to attract ei<strong>the</strong>r substantial marine work in <strong>the</strong> existing yards or ano<strong>the</strong>r global player of <strong>the</strong> scale of Duco or Wellstream to Walker Riverside. In this event, <strong>the</strong> established and well knit fabric of related industries of <strong>the</strong> area would be sufficient to generate momentum <strong>for</strong> <strong>the</strong> concept of cluster to come to life again. Clear branding, marketing and infrastructure investments are likely to be required, particularly given <strong>the</strong> long term weakness of shipbuilding activities in <strong>the</strong> area and <strong>the</strong> need to refocus <strong>the</strong> sector (see Section 2). There are large vacant sites, a number of smaller ones, and some of <strong>the</strong> leases are about to expire (see Fig. 3.2). Vacant land amounts to a total of 24 ha (59 acres), including <strong>the</strong> A&P 12 Colin Buchanan
www.cbuchanan.co.uk Fig. 3.2 - Site availability N Vacant land Leases expiring on or be<strong>for</strong>e 2011 O<strong>the</strong>r sites <strong>for</strong> potential change Council freehold Freehold o<strong>the</strong>rs Walker Riverside <strong>Feasibility</strong> <strong>Study</strong> Section 1 - p. 13