AS far as many industry analysts are concerned, Greater Manchester\u2019s digital and creative sector is constantly reaffirming our position as the \u2018original modern city\u2019.<\/p>\n
For a start, the success of MediaCityUK has focused the eyes of the world on what we\u2019re doing and how it can be achieved. And that\u2019s before the sector\u2019s close ties with The Sharp Project, in east Manchester, and Manchester\u2019s Northern Quarter are factored into the equation.<\/p>\n
Indeed, many believe those innovative, fast growth tech companies based here will now rise to even greater prominence on the other side of the Atlantic thanks to new direct flights between Manchester Airport and San Francisco being launched next summer.<\/p>\n
Graham Pearce, head of technology at KPMG in the North, sums up the city\u2019s evolution in the creative and digital sector by saying: \u201cManchester is ambitious. The city\u2019s entrepreneurs don\u2019t want to play second fiddle to those in London and there\u2019s an ambition to achieve growth on a global scale, putting Manchester on the map internationally. Indeed, this is happening already.<\/p>\n
\u201cLandmark transactions, such as JMI Equity\u2019s \u00a332m investment in Avecto, demonstrate how Manchester businesses are attracting overseas attention and investment.<\/p>\n
\u201cThe recent Business Rocks conference embodied the confidence and energy we see across the city\u2019s digital and creative sector.<\/p>\n
\u201cIt showcased Manchester, but also demonstrated our ability to attract some of the best talent from around the world.<\/p>\n
\u201cIt\u2019s clear that momentum is building and with many private equity and venture capital firms keen to invest, particularly for those businesses that can deliver high returns, are scalable and will disrupt the market, there\u2019s still a lot more to come.\u201d<\/p>\n
Alison Loveday, the chief executive of Manchester law firm Berg, maintains that this is a particularly good time for start-up companies in the creative and digital sector.<\/p>\n
She explained: \u201cTo realise this potential, the region must develop a global mind-set, as opposed to just thinking nationwide. We are not just competing with Tech City in London, but the rest of the world.<\/p>\n
\u201cWhile it may be too early to compare Manchester to Silicon Valley, the announcement that Manchester and San Francisco are to be connected via a direct flight further demonstrates the potential for the city\u2019s burgeoning tech sector to grow and build links with the world\u2019s leading tech hub.<\/p>\n
\u201cIt provides an opportunity for sharing and building knowledge and expertise on a global scale that we haven\u2019t seen before.\u201d<\/p>\n
Rob Wilde, co-founder of Manchester-based recruitment website developer Volcanic, said that one of the main reasons why creative and digital companies operating in the north west flourish is because they constantly innovate.<\/p>\n
Rob said: \u201cWe feel fortunate to be working in a sector that is currently one of the fastest-growing in the UK.<\/p>\n
\u201cIndeed, if the UK is to grow its economy, it is vital that businesses in the creative sector are nurtured and invested in.<\/p>\n
\u201cIt\u2019s creative and digital industries that will help to drive growth across the UK\u2019s major cities in the near future and the biggest challenges to this will be retaining key staff and overcoming a lack of skilled jobseekers.<\/p>\n
\u201cThe UK is currently one of the world leaders when it comes to fostering a powerful digital and creative industry, but we\u2019re not exempt from stiff global competition.<\/p>\n
\u201cIn this respect, standing still is not an option, coming up with the best and most innovative ideas are our currency and this is what enables us to stay ahead of the pack.\u201d<\/p>\n
However, other industry insiders are warning that the picture isn\u2019t resolutely rosy.<\/p>\n
Ann Rimmer, chief executive of Manchester-based Clock Creative and former chairperson of the north west branch of the The Design Business Association, explained: \u201cGreater Manchester\u2019s digital and creative scene is going through a period of fragmentation.<\/p>\n
\u201cThere are a lot of small players all offering similar services, which is enabling clients to push prices down.<\/p>\n
\u201cThe trouble with this is that the smaller players lack specialism and ultimately are creating a real opportunity for differentiation within the sector.<\/p>\n
\u201cWhat we are seeing, though, is continued growth in branding and content, and marketing automation is becoming increasingly popular.<\/p>\n
\u201cI think over the coming year we will see some consolidation.<\/p>\n
\u201cAt the moment, clients are trying to do more themselves but, eventually, I think we\u2019ll see a return to the value of creativity and digital expertise.\u201d<\/p>\n
Dale Huxford, corporate finance and technology specialist in the Manchester office of law firm Squire Patton Boggs observed that last year was a relatively weak one for technology mergers and acquisitions.<\/p>\n
He said: \u201cBut this isn\u2019t altogether surprising given the amount of money invested in 2014-2015. That said, we\u2019re already seeing a stronger start to 2016, and we would expect this trend to continue as companies reach the end of their capital reserves and must make the decision on whether to raise additional funds for the next growth phase, or whether to look for a logical partnership or exit.<\/p>\n
\u201cEarly-stage investment has slowed slightly from its peak toward the end of 2015, but not nearly as much as pundits have claimed.\u201d<\/p>\n
Dale believes that those medical technology companies aimed directly at consumers will be among the best performing in the coming year.<\/p>\n
He added: \u201cI think that the extension of the North West Interactive Healthcare Fund for digital small and medium-sized enterprises underlines the significance of that sector in our region.<\/p>\n
\u201cThere are also more business-to-business technology companies with strong product and sales pipelines, and a number of leading online gaming companies that are either headquartered in Manchester, taking advantage of the cluster of skills around MediaCityUK, or that have established strong development centres in and around this region.<\/p>\n
\u201cGiven how many strong digital technology companies are focused on the FinTech, MedTech, Internet of Things and online gaming sectors, it wouldn\u2019t be at all surprising to see a rush of companies move into the next-generation information security space, as each of those sectors involves the collection and use of highly sensitive personal information.<\/p>\n
\u201cIf I had to offer a prediction on what will be the fastest moving sector for 2016, that might be the one I\u2019d choose.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"
AS far as many industry analysts are concerned, Greater Manchester\u2019s digital and creative sector is constantly reaffirming our position as the \u2018original modern city\u2019. For a start, the success of MediaCityUK has focused the eyes of the world on what we\u2019re doing and how it can be achieved. And that\u2019s before the sector\u2019s close ties […]<\/p>\n","protected":false},"author":1,"featured_media":1115,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[19],"tags":[123],"class_list":["post-1114","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-innovation","tag-manchester"],"yoast_head":"\n