Transcript Mid Term Evaluation of RENEW North Staffordshire

Economic Geography, Linkages
and Low Carbon Economy
Economic Performance,
Drivers and Comparisons
John McCreadie – 6th July 2010
Presentation Structure
Answering the Questions:
•Which key sectors and sub-sectors have played the most
important roles in driving employment and GVA growth in the
City Region over the last decade?
•How does the City Region compare with other, similar city
regions, in the terms of its economic specialisms?
•Are the high employment and GVA sectors of the recent
past the ones which will drive economic change in the
future?
Broad Economy Overview
1. Public
Sector
• Over 200,000 FTE
jobs
• £6.6bn GVA
• Strong growth driven
by public admin
2. Financial &
Professional
Business
Services
• Over 120,000 FTE
jobs
• £7.2bn GVA
• Exceptional growth
driven by other
business services and
financial services
3.
Manufacturing
• Over 89,500 FTE jobs
• Significant
employment decline –
although below national
average
Broad Economy Overview
Group 1
• Above average employment and
GVA growth, productivity at least
90% of GB average
Construction; Creative and Digital;
Mining and Metals; R&D
Group 2
• Above average employment and
GVA growth, productivity below
90% of GB average
Financial & Professional Business
Services; Public Services; Process
Industries; Aerospace and Defence;
Glass Products
Group 3
Transport; Tourism
• Others with employment growth of
4.5% or more
Group 4
• Others with productivity at least
90% of GB average
Health & Wellbeing; Automotive,
Energy; Food and Drink; Timber and
Wood; Other services; Clothes; Other
manufacturing
Benchmarking Tyne and Wear City Region
• TWCR employment growth has
outperformed other northern CRs
since 2000 (except Sheffield)
• TWCR is most similar to
Sheffield, Liverpool and Glasgow
• Much higher rates of employment
growth in Tourism; Digital and
Creative; Financial, Professional
and Business Services; and
Public Sector
City Region Location Quotient 2008
FPB Services
Pub. Services
Manufacturing
Tourism
Autom otive
CDI
0.5
0.6
0.7
0.8
0.9
1.0
1.1
1.2
1.3
1.4
Bristol City Region
Glasgow City Region
Leeds City Region
Liverpool City Region
Manchester City Region
Nottingham City Region
Sheffield City Region
Tyne and Wear City Region
1.5
City Region Employment Growth (%) 2000-2008
FPB Services
Pub. Services
Manufacturing
Tourism
Autom otive
• Employment in TWCR is more
highly concentrated in Public
Sector; Automotive; and Tourism
CDI
-45
-25
-5
15
35
Bristol City Region
Glasgow City Region
Leeds City Region
Liverpool City Region
Manchester City Region
Nottingham City Region
Sheffield City Region
Tyne and Wear City Region
55
The Employment Gap
• Over 33,500 jobs across
6 private service sectors
are required to close the
employment gap with the
CR average
• Increases to around
43,000 to close the gap
with the national average
• High levels of growth
needed to achieve this
e.g. Transport (+40%),
Financial, Professional
Business Services; and
Digital and Creative
(+20%)
Sector
Gap with Gap with
CR
GB
Average Average
Financial & Professional
Business Services
21,320
21,339
Wholesale & Retail
8,323
9,352
Creative & Digital
447
4,988
Transport
2,904
4,805
Research &Development 655
1,733
Other Services
0
526
Total
33,649
42,744
Sectors Offering Opportunity
• Identifying sectors with
ability to bring money into
TWCR
• Three groups:
- Private service sectors
- Public Sector: subsectors not dependent on
local demand
- Industrial: stabilising
manufacturing employment
based on acknowledged
strengths and market
opportunities including Low
Carbon
• Account for c.20% of the
total economy
Private Service Sectors
Other Business Services
51,294
Financial Services
21,861
Creative and Digital
26,189
Tourism
34,903
Public Sector
Regional/national
headquarters/service centres
10,000
Universities
18,568
Industrial
Automotive
11,252
Process Industries
11,989
Low Carbon – Electric Vehicle
/ Renewable Energy
N/A
Summary
• City Region catch up driven by growth in
private sector service economy
• Further catch up required to match City
Region peers
• Financial and Professional Business
Services are the most likely source of
employment and GVA opportunities
• Opportunities in Creative and Digital and
Tourism