The same credit crunch that is closing doors to growth in the South East could be creating new openings for expansion in the Sheffield City Region.

After years of being held back by a lack of premier office space, Sheffield itself can now boast the choice of properties that companies seeking to relocate or expand demand.

Sheffield is not only bucking the national trend, thanks to its burgeoning office portfolio. It also has another key resource - two million people, 1.3 million of whom are of working age, within 60 minutes travelling time.

And city development company Creative Sheffield is determined to make the best of those resources to seize the opportunities the credit crunch is creating.

"Five or six years ago, Sheffield had a very, very poor office offer," says director for business investment David Fletcher.

"We have turned that around and we have a pipeline of committed schemes that are on site now, despite the credit crunch."

Investment manager Ann Allen agrees. In the past, companies were willing to spend up to two years identifying a site, gaining planning consent and having their new offices built.

What do you think? Post your comments below.

Now, they want to be up and running in six to nine months.
"Time scales are much, much shorter. In order to capture market opportunities, businesses have to look at offices that are already complete," says Ann Allen.

"Cities like Sheffield could benefit from a situation like the current one, where the financial market is in a bit of a turmoil and businesses are more cost conscious than before.

"We are talking to a good number of companies based in London that are looking at rationalising, but want to stay in the UK," she adds.

Recent reports that companies are preparing to switch business from City of London lawyers to their national and regional rivals – suggesting that DLA Piper could be among the beneficiaries – serve to bolster Sheffield's case for recognition as a growing business services centre.

But the opportunities don't end there.

David Fletcher believes Sheffield could benefit from a trend for companies to develop shared service centres, bringing human resources, IT and accounts and other common operations under one roof in a lower cost centre.

The growth in outsourcing could also bring further business to the city – from India, of all places.

Indian companies have been so successful in winning outsourcing business that they are looking to expand – and that includes acquiring businesses in places like the UK, to take advantage of outsourcing opportunities which are unlikely to go abroad.

"The outsourcing market is one where Sheffield has a strong offer," says David Fletcher.

"It is an attractive place for people to work and the local labour market is not as overheated as Leeds of Manchester."

READ MORE
Your letters.
Today's features.
Latest sport.
Main news index.