Key Sectors in the West of England

Anthony PlumridgeBristol Business School

1. Scale – significant for the sub-regional economy2. Growth potential – recent growth best indicator3. Above UK average as proportion of employment (Location

Quotient >1)4. High external income generation (large proportion of

revenue from outside sub-region)5. High income retention (high local multiplier)

• 1 to 3 readily quantifiable from employment data• 4 and 5 difficult to assess from available data

Three employment criteria for judging the significance of a sector

1. Scale of sector – percentage of WofE employment2. Growth of employment over 2004-20063. Importance of sector in WofE relative to importance of

sector in UK as a whole sector using employment Location Quotients

These three criteria are combined:• Combined Measure = Location Quotient x Proportional

growth x Employment %• Applied to 235 sub-sectors from the Standard Industrial

Classification SIC 3 digit)

West of England: Top 25% by combined measure851 : Human health activities 100.00% 900 : Sewage and refuse disposal, sanitation and similar activities74.40%353 : Manufacture of aircraft and spacecraft 99.40% 300 : Manufacture of office machinery and computers73.90%853 : Social work activities 98.90% 514 : Wholesale of household goods 73.40%521 : Retail sale in non-specialised stores 98.40% 285 : Treatment and coating of metals; general mechanical engineering72.90%660 : Insurance and pension funding, except compulsory social security97.90% 222 : Printing and services activities related to printing72.40%803 : Higher education 97.40% 503 : Sale of motor vehicle parts and accessories71.90%723 : Data processing 96.90% 454 : Building completion 71.40%524 : Other retail sale of new goods in specialised stores96.40% 744 : Advertising 70.90%741 : Legal, accounting, book-keeping and auditing activities; tax consultancy; market research and public opinion polling; business and managesment consultancy; holdings95.90% 158 : Manufacture of other food products 70.40%745 : Labour recruitment and provision of personnel95.40% 726 : Other computer related activities 69.80%751 : Administration of the State and the economic and social policy of the community94.80% 522 : Retail sale of food, beverages and tobacco in specialised stores69.30%651 : Monetary intermediation 94.30% 711 : Renting of automobiles 68.80%801 : Primary education 93.80% 455 : Renting of construction or demolition equipment with operator68.30%554 : Bars 93.30% 922 : Radio and television activities 67.80%752 : Provision of services to the community as a whole92.80% 634 : Activities of other transport agencies 67.30%742 : Architectural and engineering activities and related technical consultancy92.30% 753 : Compulsory social security activities 66.80%553 : Restaurants 91.80% 523 : Retail sale of pharmaceutical and medical goods, cosmetic and toilet articles66.30%802 : Secondary Education 91.30% 702 : Letting of own property 65.80%602 : Oher land transport 90.80% 401 : Production and distribution of electricity 65.30%746 : Investigation and security activities 90.30% 155 : Manufacture of dairy products 64.70%722 : Software consultancy and supply 89.70% 701 : Real estate activities with own property 64.20%747 : Industrial cleaning 89.20% 333 : Manufacture of industrial process control equipment63.70%452 : Building of complete construction or parts thereof; civil engineering88.70% 266 : Manufacture of articles of concrete, plaster and cement63.20%632 : Other supporting transport activities 88.20% 292 : Manufacture of other general purpose machinery62.70%642 : Telecommunications 87.70% 631 : Cargo handling and storage 62.20%748 : Miscellaneous business activities not elsewhere classified87.20% 296 : Manufacture of weapons and ammunition61.70%641 : Post and courier activities 86.70% 519 : Other wholesale 61.20%703 : Real estate activities on a fee or contract basis86.20% 921 : Motion picture and video activities 60.70%913 : Activities of other membership organisations 85.70% 291 : Manufacture of machinery for the production and use of mechanical power, except aircraft, vehicle and cycle engines60.20%372 : Recycling of non-metal waste and scrap 85.20% 925 : Library, archives, museums and other cultural activities59.60%513 : Wholesale of food, beverages and tobacco 84.60% 923 : Other entertainment activities 59.10%671 : Activities auxiliary to financial intermediation, except insurance and pension funding84.10% 526 : Retail sale of not in stores 58.60%453 : Building installation 83.60% 294 : Manufacture of machine tools 58.10%804 : Adult and other education 83.10% 927 : Other recreational activities 57.60%672 : Activities auxiliary to insurance and pension funding82.60% 159 : Manufacture of beverages 57.10%515 : Wholesale of non-agricultural intermediate products, waste and scrap82.10% 243 : Manufacture of paints, varnishes and similar coatings, printing ink and mastics56.60%410 : Collection, purification and distribution of water81.60% 311 : Manufacture of electric motors, generators and transformers56.10%551 : Hotels 81.10% 511 : Wholesale on a fee or contract basis 55.60%930 : Other service activities 80.60% 852 : Veterinary activities 55.10%221 : Publishing 80.10% 252 : Manufacture of plastic products 54.50%142 : Quarrying of sand and clay 79.50% 633 : Activities of travel agencies and tour operators; tourist assistance activities not elsewhere classified54.00%713 : Renting of other machinery and equipment 79.00% 731 : Research and experimental development on natural sciences and engineering53.50%518 : Wholesale of machinery, equipment and supplies78.50% 242 : Manufacture of pesticides and other agro-chemical products53.00%212 : Manufacture of articles of paper and paperboard78.00% 334 : Manufacture of optical instruments and photographic equipment52.50%502 : Maintenance and repair of motor vehicles 77.50% 342 : Manufacture of bodies (coachwork) for motor vehicles: manufacture of trailers and semi-trailers52.00%501 : Sale of motor vehicles 77.00% 451 : Site preparation 51.50%555 : Canteens and Catering 76.50% 153 : Processing and preserving of fruit and vegetables51.00%743 : Technical testing and analysis 76.00% 244 : Manufacture of pharmaceuticals, medicinal chemicals and botanical products50.50%926 : Sporting activities 75.50% 361 : Manufacture of furniture 50.00%160 : Manufacture of tobacco products 75.00%

Next 25% by combined measure

Public sectorAdvanced engineeringBanking, Legal & FinanceBiotechnologyCreative IndustriesMarineDistributionEnvironmental TechnologiesFood and drinkICTTourism and Leisure

Banking Legal and Finance Combined Index % of jobs660 : Insurance and pension funding, except compulsory social security 456 1.87741 : Legal and accounting; market research; managesment consultancy. 383 3.58651 : Monetary intermediation 276 2.27671 : Financial intermediation support, not insurance or pension funding 98 0.68672 : Activities auxiliary to insurance and pension funding 87 0.68652 : Other financial intermediation 6 0.18AVERAGE INDEX/TOTAL 321 9.26

Advanced Engineering Combined Index % of jobs353 : Manufacture of aircraft and spacecraft 829 1.75333 : Manufacture of industrial process control equipment 26 0.09296 : Manufacture of weapons and ammunition 25 0.12294 : Manufacture of machine tools 16 0.07334 : Manufacture of optical instruments and photographic equipment 12 0.08332 : Manufacture of instruments, except process control equipment 7 0.09AVERAGE INDEX/TOTAL 662 2.21

Environmental Technology Combined Index % of jobs452 : Building of complete construction or parts thereof; civil engineering 160 2.29372 : Recycling of non-metal waste and scrap 104 0.13453 : Building installation 96 1.17410 : Collection, purification and distribution of water 77 0.21743 : Technical testing and analysis 59 0.19900 : Sewage and refuse disposal, sanitation and similar activities 51 0.45292 : Manufacture of other general purpose machinery 26 0.30451 : Site preparation 12 0.08AVERAGE INDEX/TOTAL 229 4.84

1. Scale – significant for the sub-regional economy2. Growth potential – recent growth best indicator3. Above UK average as proportion of employment (Location

Quotient >1)4. High external income generation (large proportion of

revenue from outside sub-region)5. High income retention (high local multiplier)

• Business survey to indicate “exports” and “imports”• Regional Accounts input-output model provides indicative

multipliers

A B A/B

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Advanced engineering 92 77 1.2Banking, Legal and Finance 50 69 0.7Biotechnology 46 93 0.5Creative 75 67 1.1Distribution 42 88 0.5Environmental Technology 85 63 1.3Food and Drink 30 62 0.5ICT 84 93 0.9Marine 100 95 1.1Tourism 49 44 1.1

Combined index Income Generation Multiplier Overall rating %Advanced Engineering 662 1.2 12 19Banking, Finance and Legal 321 0.7 17 12Biotechnology 12 0.5 12 5Creative Industries 131 1.1 19 11Distribution 138 0.5 18 8Environmental Technology 229 1.3 9 11Food and Beverages 37 0.5 15 6ICT 163 0.9 14 9Marine 22 1.1 19 8Tourism 56 1.1 26 11

Combined index Income Generation Multiplier Overall rating %Advanced Engineering 662 1.2 12 19Banking, Finance and Legal 321 0.7 17 12Environmental Technology 229 1.3 9 11Creative Industries 131 1.1 19 11Tourism 56 1.1 26 11ICT 163 0.9 14 9Marine 22 1.1 19 8Distribution 138 0.5 18 8Food and Beverages 37 0.5 15 6Biotechnology 12 0.5 12 5

West of South East West North North Yorks & South East London Wales Scotland Edinburgh NorthernEngland West Midlands Midlands West Humber East Ireland

Creative IndustriesWholesale and DistributionEnvironmental TechnologiesFood & DrinkTourismMarine

Advanced Engineering BiotechnologyFinancial and Business ServicesICT

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Advanced engineering 53 7 13 20 0Banking, Legal and Finance 45 18 9 9 45Biotechnology 50 25 0 50 0Creative 25 5 25 35 25Distribution 60 10 0 30 0Environmental Technology 22 6 11 39 0Food and Drink 0 25 0 0 75ICT 38 8 0 38 15Marine 50 0 0 50 0Tourism 17 17 0 50 17

1. Supporting knowledge exchange and skills for innovation• Linking innovating high value added businesses with universities:

events, workshops, KTPs, Quickmark• Technological forecasting – sector consultants2. Working with sector support agencies to sponsor inter-sector

collaborations:• ICT and Creative Industries• Advanced Engineering and Environmental Technology• Leisure and Tourism and Food and Drink3. Ongoing infrastructure/premises improvement4. Continue to collect data on key sector businesses, their markets

and supply chains