University of Sheffield launches radical business plan to replace income lost to the pandemic

Vice chancellor Koen Lamberts said innovation was now ‘as important’ as education and research, and working with business was ‘right at the heart’ of its mission.

The 7,000 strong institution is facing a £100m hole due to the outbreak. Student numbers and government funding are uncertain, sparking a drive for new sources of income.

Mr Lamberts said the Advanced Manufacturing Research Centre was ‘absolutely crucial’ to the new plan.

The AMRC, which has 100 paying partners including Boeing, Rolls Royce and McLaren, was ‘by far’ its strongest link with business.

It would now be the main route to commercialise research from across the university.

He added: “We have no choice. The crisis shows how exposed we are to international student fee income.

“The economic challenge is comparable to the 1980s in Sheffield but this time we have the tools to develop new sectors quickly and a willingness to do it. It’s about mindset. We have to support ourselves.”

The university spent £230m on research annually. Much of it could potentially benefit business but some was unused and some was ‘given away’, he added.

The AMRC helped the engineering department earn £124m in research income last year, the highest in the UK.

It was ‘the most important channel’ between academics and business and would help create spin-off companies, joint ventures and licensing deals, Mr Lamberts said.

There had been ‘distrust’ between the AMRC and faculties, he added. But after a change of personnel and a newly created role - Vice Chancellor for Innovation - new ‘synergies’ had been created.

Established on the former Orgreave Coking Works in 2001, the AMRC has a dozen hi-tech buildings, satellites in Derby, Preston, Wales, the Wirral and Korea and a training centre for hundreds of apprentices. More than 100 firms have moved nearby.

Co-founder Keith Ridgway led it to international renown before retiring in November, following a ‘clash of cultures’.

Mr Lamberts added: “I want academics to understand what they have got. The AMRC has opened a way for them, they have to follow that with research that has impact.”

Previously, university bosses had urged government to invest in expanding the AMRC across the North. That was still the hope, especially after the success of AMRC Cymru, near the Airbus factory in Broughton, North Wales.

Mr Lamberts added: “I think they understand its potential. If we invest in it the right way it could be transformational for the North.”

AMRC boss Steve Foxley said they were focused on digital to help manufacturers ‘leapfrog’ forward.

Sustainability, resilience, and ’levelling up’ the North were important, as were reducing reliance on European research funding and any risks from Brexit.

He said: “We have an obligation to help innovation-driven entrepreneurs who are creating jobs. We have the right ingredients but it needs more emphasis.”

Andy Storer, managing director of the Nuclear AMRC, said they were working on an education programme for faculties and to bring academics to the Advanced Manufacturing Park in Rotherham

The Nuclear AMRC works with partners including Rolls Royce on maintaining nuclear power - which is 25 per cent of the UK’s energy and 40 per cent of its green energy - and developing new capability, such as small modular reactors that can fit on a football field.

With the arrival of the UK Atomic Energy Centre Authority’s fusion research centre nearby, Sheffield could be the clean energy capital of manufacturing and research, he added.

The AMRC Training Centre trains hundreds of apprentices who work for local manufacturers.

Director Nikki Jones said they were continuing to teach and support youngsters online. Firms were continuing to recruit to avoid a skills gap when the pandemic was over, she added.

“Apprentices put £20m in wages into homes of some of the most disadvantaged in the region.”

Earlier this month Mr Lamberts wrote to staff calling for ‘an exceptional university-wide effort’.

He added: “Our financial modelling shows that we now need to plan for a £100 million loss of income.

“In the face of this loss, we must take all reasonable steps to ensure the long-term financial sustainability of the university.

“It is important that we make efficiency savings where possible, and alongside the Voluntary Severance Scheme we have asked colleagues on the University Executive Board to work through the implications of a 15 per cent reduction to budgets for 2021.

“We will need an exceptional, university-wide effort to overcome the challenges ahead, with a particular focus on student recruitment and ensuring we provide the best possible education and student experience.”

As well as voluntary severance, bosses are considering giving workers the option of reducing their hours or taking extra unpaid leave to save money.

Employees have been furloughed through the Government's Job Retention Scheme, some capital projects have been paused, new job posts and contract extensions have been put under review and ‘non-essential’ spending curbed.

The university, which has nearly 7,000 members of staff, is also looking at reducing its 2021 budget by 15 per cent.

Last month Sheffield University said it had weighed up 'two potential recruitment scenarios’ for the 2020/21 academic year – the most dramatic assumed no international students would take up their places, equating to a 50 per cent reduction in tuition fee income.

Each year it attracts some 7,000 international students from 150 countries, it has particularly strong links with China.