Regional Watch Europe UK (Economy) Disclaimer Click HERE for Tutorial Click HERE to launch dashboard www.lloyds.com/REGIONALWATCH [email protected]CLASS OF BUSINESS DISTRIBUTION NAT CAT MARKET PLAYERS CONTENT ECONOMY LLOYD’S BUSINESS 1 3 2 0 1 3 2 0 1 3 2 0 1 3 2 0 1 3 2 0 1 3 2 0 IN DEPTH ANALYSIS 3 HIGH LEVEL ANALYSIS 2 EXECUTIVE SUMMARY 1 0 NOT AVAILABLE KEY Recent Updates: 28 October 2010 Key industry sectors Economic activity by region Number of small, medium & large enterprises by industry sector and reg ion
The UK economy ranks around the fifth-largest in the world and is one of the most open. The economy enjoyed a prolonged period of strong, low inflationary growth between 1993 and 2007, benefiting from largely healthy global growth and a stable domestic political backdrop. Indeed, GDP growth averaged 3.0% per year during this period, while consumer price inflation averaged 1.8%. Nevertheless, the economy increasingly unravelled in 2008, and continued to struggle immensely in 2009, reflecting major domestic and global economic problems.
The global financial crisis hit the UK economy particularly hard due to the importance of its financial sector, while the UK's problems have been compounded by an overvalued housing market and high consumer debt levels.
HEADLINESEconomy Still Faces Bumpy Recovery Despite Q2 2010 Surge in Growth: Although GDP growth unexpectedly jumped to 1.2% quarter-on-quarter in the second quarter of 2010 from 0.4% in the first quarter, this is likely to the limit for the UK economy. Recovery is likely to remain muted overall in the face of serious headwinds, including major fiscal tightening. Slowing global growth and problems in the Eurozone also pose a risk to UK growth prospects. Consequently, projected GDP growth to be limited to 1.6% in 2010 and 1.5% in 2011
Emergency Budget Accelerates Fiscal Tightening: The new Conservative-Liberal Democrat government presented an emergency budget in June 2010 that contained an extra GBP 40bn of fiscal tightening on top of the GBP 73bn of measures inherited from the previous Labour government. Consequently, the government puts the total consolidation at GBP 113bn per year by 2014/15. This will be split 77%:23% between spending cuts and tax rises. The October 2010 spending review confirmed this tight fiscal stance.
Interest Rates Unlikely to Rise Before Late 2011: Despite extended above-target consumer price inflation (3.1% in August 2010), the Bank of England is unlikely to raise its key interest rate from the current level of 0.50% before late 2011, given the serious threats to longer-term growth prospects, most notably including major, extended fiscal tightening. Meanwhile, it is looking increasingly likely that the Bank of England will revive its quantitative easing (QE) programme.
Market Intelligence based on: Global Insight, “Executive Summary”, (October 2010)
Strong economic growth amid domestic stimuli China as an export -driven economy is vulnerable to the external environment.
Shrinking external demand , overcapacity in some sectors, difficult business conditions fo r enterprises, rising unemployment in urban areas and greater d ownward pressure on economic growth.
Stimulus to focus on internal demand growth ; tax reductions for enterprises
Series of interest rate cuts and other policy developments to improve business and consumer confidence. Lending has been improving, easing credit situati on.
Foreign exchange reserves of USD 1.95 trillion
Fundamentals remain strong , domestic demand to improve. China ’s economic growth will depend on access to an alternative market for its exports. China to drive Asian Growth .
China ’s Stimulus Package of USD 586bn:
Stimulus package with focus on infrastructure development: housing, transport and rural
Tax reforms to reduce burden on large, small and medium industries
Industry specific support for Automotive and Steel
Support plans for the auto, steel, shipbuilding, textile and ma chinery manufacturing,
electronics, petrochemicals and light industry
Successive interest rate cuts to boost liquidity
Market Intelligence based on: Berkley APEC Study Center, “Responding to the Global Crisis:Market and Nonmarket Strategies for Success”, (March 2009)
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economic output
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Macro drivers of economy
Growth sectors of economy
Summary
Ways of Doing
business
Strong economic growth amid domestic stimuli China as an export -driven economy is vulnerable to the external environment.
Shrinking external demand , overcapacity in some sectors, difficult business conditions fo r enterprises, rising unemployment in urban areas and greater d ownward pressure on economic growth.
Stimulus to focus on internal demand growth ; tax reductions for enterprises
Series of interest rate cuts and other policy developments to improve business and consumer confidence. Lending has been improving, easing credit situati on.
Foreign exchange reserves of USD 1.95 trillion
Fundamentals remain strong , domestic demand to improve. China ’s economic growth will depend on access to an alternative market for its exports. China to drive Asian Growth .
China ’s Stimulus Package of USD 586bn:
Stimulus package with focus on infrastructure development: housing, transport and rural
Tax reforms to reduce burden on large, small and medium industries
Industry specific support for Automotive and Steel
Support plans for the auto, steel, shipbuilding, textile and ma chinery manufacturing,
electronics, petrochemicals and light industry
Successive interest rate cuts to boost liquidity
Market Intelligence based on: Berkley APEC Study Center, “Responding to the Global Crisis:Market and Nonmarket Strategies for Success”, (March 2009)
Business meetings are punctual. It is advisable to arrive a bit early at meetings. Negotiations often proceed at a slow pace and conversations may initially be very non-committal – instead of saying “yes” or “no”, more likely comments are “we will think about it” or “we will see”. You should always have your own interpreter at any meeting, to ensure the translation is done correctly and to pick up on conversations between the opposite party.
Gifts indicate a desire to establish a relationship. Gifts need not be expensive, but they should always be wrapped and you should avoid using black or white paper. Gifts normally will not be opened in your presence. Something representative of your country or your town will be particularly appreciated. Never give a clock or white flowers, as these signify death. Never give sharp objects such as knives or scissors as they signify cutting of a relationship. Four is an unlucky number. Lucky numbers are six and eight.
Learn a few simple Chinese words. This not only shows respect and interest in the Chinese language and culture, but also provides a good icebreaking topic. Try to avoid discussing political or religious topics publicly. Chinese food, places to visit and entertainment are good topics.
Market Intelligence based on: British Chambers of Commerce, “The British Chamber of Commerce Shanghai”, (November 2009)Soft
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Recovery is still expected to be bumpy and gradual overall, despite GDP growth only moderating to 0.8% quarter-on-quarter (q/q) in the third quarter of 2010 from 1.2% q/q in the second quarter. On the positive side, growth is currently being supported by record-low interest rates, the stock of quantitative easing, the weak pound, and reasonable global economic activity and trade. Meanwhile, stocks are still being rebuilt having been pared during the recession. Significantly though, some growth props have been removed, while substantial, extended fiscal tightening is on the way. Although the bulk of the spending cuts (which will lead to major job losses in the public sector) and tax hikes will not really start to bite until 2011, consumer and business confidence and behavior are already being undermined. Furthermore, IHS Global Insight expects global growth to be modestly softer over the latter months of 2010 and the first half of 2011, which is likely to limit exports. Meanwhile, rebuilding stocks can only support economic growth for a limited period. Meanwhile, considerable obstacles remain to sustainable, robust growth. Ongoing tight credit conditions amid still-serious financial-sector problems, the need for consumers to improve their finances and elevated unemployment are particular handicaps to growth. Business investment will also be constrained for an extended period by substantial spare capacity, although businesses are likely to be increasingly prepared to upgrade or replace dated capacity. Thus, we expect GDP growth to moderate over the final months of 2010 and the first half of 2011 before stabilizing and then gradually regaining upward momentum. We now expect overall GDP growth to be 1.8% in 2010, moderating to 1.6% in 2011. (The higher third-quarter 2010 GDP outturn has necessitated an upward revision of our October monthly interim forecasts of 1.6% in 2010 and 1.5% in 2011.)
Consumer price inflation is expected to trend down gradually further after retreating to 3.1% in September from a 17-month high of 3.7% in April
Inflation is expected to moderate as the temporary upward impact from value-added tax (VAT) developments, higher energy prices, and sterling's past sharp depreciation wanes. Meanwhile, underlying inflationary pressures should be limited by substantial excess capacity, muted growth, intense competition, and high unemployment. Nevertheless, higher food prices, in the near term at least, and a VAT rise from 17.5% to 20.0% in January 2011 will have some upward effect on inflation. Consequently, consumer price inflation is not expected to fall below the Bank of England's 2.0% target level until 2012.
The Bank of England is unlikely to raise its key interest rate from the current record-low level of 0.50% before late 2011 in the face of muted recovery and limited underlying inflationary pressures. Furthermore, interest rates are likely to then rise only gradually and stay low compared with long-term norms, as a counter to the very tight fiscal policy that will be needed for an extended period. Meanwhile, there is a significant—and rising—possibility that the Bank of England will revive its quantitative easing program, which has been on hold since February.
Soft
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Market Intelligence based on: Global Insight, “Country Report”, (October 2010)
Market Intelligence based on: Global Insight, “World Industry Service”, (Last Updated Aug 2009)
United Kingdom: Top-10 Sectors Ranked by Value Added
2008 Level 2009 Percent Change Percent Share of GDP
(Bil. US$) (Real terms) (Nominal terms)
1. Business Services 241.5 -3.3 10.0
2. Real Estate 235.4 -2.1 9.7
3. Retail Trade - Total 176.6 0.0 7.3
4. Health and Social Services 172.3 4.0 7.1
5. Construction 150.6 -13.2 6.2
6. Education 142.9 2.2 5.9
7. Banking and Related Financial 126.4 -0.5 5.2
8. Public Admin. and Defense 123.0 4.5 5.1
9. Sanitation, Trade Organizations 105.4 3.2 4.4
10. Wholesale Trade 91.0 -8.8 3.8
Top-10 Total 1,565.0 64.8
Financial Services: At over 540, London hosts more foreign banks than any other international financial center. The sector has been helped by impressive regulatory reforms, integrating control under the Financial Services Authority (FSA). Banks are also comfortably capitalized, despite inevitable additional risk in the context of any global downturn. The United Kingdom is the world leader in marine and aviation insurance. Advisory Services associated with the City are very well established. In addition, the United Kingdom hosts many of the world's leading accountancy, consultancy, and legal firms. London is a world leader in securities, derivatives, and, indeed, metals trading, although the London Stock Exchange has struggled to defend itself from more dynamic international rivals.
Market Intelligence based on: Global Insight, “World Industry Service”, (Last Updated Aug 2009)
Energy: The U.K. economy has benefited greatly from its huge North Sea oil and gas reserves. The United Kingdom is the largest energy producer in the European Union (EU) and until 2005, was energy self-sufficient. The country hosts the oil giants BP and Shell and has around 25 offshore fields producing crude oil. Nevertheless, with North Sea oil reserves diminishing, the United Kingdom has reviewed its security of supply to take in greater imports and focus more on renewables. In the electricity sector, the United Kingdom leads the EU in creating a liberalised, competitive home market, introducing the new NETA trading rules in March 2001. Some regional companies (REC) have diversified and formed partnerships, especially in Europe. The government has advocated a revival of nuclear power, predicting that in 2020 it will provide 3% of the country's energy needs. The U.K. government also has a strong renewables policy, with subsidies backing up greenhouse gas emission restrictions.
Information Technology: The United Kingdom has been faster than any other country in Europe to endorse information technology (IT). Substantial investments in both hardware and software development have been made by U.S. and Japanese giants in the country (including Microsoft and Cisco Systems), particularly those based around the Thames Valley. Research developments in IT, as well as other sectors, have been particularly strong in firms clustered around Cambridge. The recent turbulence in the sector has hurt investment, but the United Kingdom remains a very popular investment destination.
Pharmaceuticals: This sector is world class, with companies such as GlaxoSmithKline and AstraZeneca. The United Kingdom is the world's second-largest exporter of medicines, accounting for around 13% of the developed world's export market. The sector also accounts for around one-quarter of all commercial research and development (R&D) in the United Kingdom. A large amount of foreign investment has flowed into the sector, overwhelmingly from the United States.
Telecommunications: The United Kingdom was the first European country to liberalise its telecoms market. Since the Telecommunications Act of 1981 opened up the sector, the UK has been one of the trailblazers in global telecommunications. BT (British Telecom), the former monopoly provider, has witnessed the rise of significant competition since liberalization. Most notable among this competition has been Vodafone.
Workplace-based gross value added: by region (2007)
Gro
ss V
alu
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Map
Chart: Value Added
Market Intelligence based on: Office of National Statistics, www.statistics.gov.uk 2007 GVA in billion
250.7
Scotland
Northern Ireland
North East
North West
Yorkshire & the Humber
Wales
East Midlands
West Midlands
South West
East of England
South East
London
176,3
106.8
119.7
98.5
94.2
92.4
87.4
77.9
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300
200
100
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About this Indicator
Gross Value Added (GVA) represents the amount that individual businesses, industries or sectors contribute to the economy. Broadly, this is measured by the income generated by the business, industry or sector less their intermediate consumption of goods and services used up in order to produce their output.
Workplace-based gross value added: 2006: in billion GBP at current basic prices
Valu
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Market Intelligence based on: Office of National Statistics: www.statistics.gov.uk; For Regional Development Agency see: www.lda.gov.uk
SUMMARYLondon generates approximately about a fifth of the UK's GDP; London is one of the pre-eminent financial centres of the world.
London's largest industry is finance, and its financial exports make it a large contributor to the UK's balance of payments. Around 325,000 people were employed in financial services in London until mid-2007. London has over 480 overseas banks, more than any other city in the world. Due to its prominent global role, London's economy has been affected by the global financial crisis of 2008–2009.
More than half of the UK's top 100 listed companies (the FTSE 100) and over 100 of Europe's 500 largest companies are headquartered in Central London. Over 70% of the FTSE 100 are located within London's metropolitan area, and 75% of Fortune 500 companies have offices in London.
SECTOR CLASSIFCATIONS
Agriculture
A. Agriculture, hunting, forestry & fishing
B. Mining and quarrying of energy producing materials
C. Other mining and quarrying
Industry
D. Manufacturing
E. Electricity, gas and water supply
F. Construction
Service
G. Wholesale and retail trade (including motor trade)
Workplace-based gross value added: 2006: in billion GBP at current basic prices
Valu
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dded b
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ect
or
SUMMARYThe South East is home to around 750,000 businesses and 16 universities, including the University of Oxford. This brings a special opportunity – the power to link research-based innovation with business skills to drive economic prosperity. Business opportunities generated by the locus of hi-tech expertise and innovation are supported by the people of the South East who have above average skills and qualifications.
Local transport infrastructure includes: Heathrow and Gatwick Airports, major ports including Dover, Southampton and Portsmouth and access to the Channel Tunnel.
SECTOR CLASSIFCATIONS
Agriculture
A. Agriculture, hunting, forestry & fishing
B. Mining and quarrying of energy producing materials
C. Other mining and quarrying
Industry
D. Manufacturing
E. Electricity, gas and water supply
F. Construction
Service
G. Wholesale and retail trade (including motor trade)
H. Hotels and restaurants
I. Transport, storage and communication
J. Financial intermediation
K. Real estate, renting and business activities
L. Public administration and defence
M. Education
N. Health and social work
O. Other Services
South East
0
10
20
30
40
50
60
K G D I F N M J O L H E A C B
UK Average
Gross Value Added per worker: 2007in thousand GBP
38
52
62
0
20
40
60
80
Manufactur ing Ser vices Other
Market Intelligence based on: Office of National Statistics: www.statistics.gov.uk; For Regional Development Agency see: www.seeda.co.uk
Workplace-based gross value added: 2006: in billion GBP at current basic prices
Valu
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SUMMARYWith a 252,000 businesses, England’s North West is the UK’s largest regional economy and bigger than 15 EU countries. It boasts Manchester, one of the best cities in Europe to locate a business; Liverpool, one of Europe's fastest-growing economies and European Capital of Culture 2008; Cheshire, home to AstraZeneca's largest global R&D centre; Lancashire, a world leader in advanced manufacturing and engineering; and Cumbria, at the international cutting-edge of nuclear technology.
Over the past years, the regional economy has undergone large scale restructuring.
SECTOR CLASSIFCATIONS
Agriculture
A. Agriculture, hunting, forestry & fishing
B. Mining and quarrying of energy producing materials
C. Other mining and quarrying
Industry
D. Manufacturing
E. Electricity, gas and water supply
F. Construction
Service
G. Wholesale and retail trade (including motor trade)
H. Hotels and restaurants
I. Transport, storage and communication
J. Financial intermediation
K. Real estate, renting and business activities
L. Public administration and defence
M. Education
N. Health and social work
O. Other Services
North West
0
10
20
30
K D G N I F M J L O H E A C B
Gross Value Added per worker: 2007in thousand GBP
32
49 52
0
20
40
60
80
Manufactur ing Ser vices Other
UK Average
Market Intelligence based on: Office of National Statistics: www.statistics.gov.uk; For Regional Development Agency see: www.nwda.co.uk
Workplace-based gross value added: 2006: in billion GBP at current basic prices
Valu
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or
SUMMARYThe East of England is marketed as the UK's “ideas region.” The region comprises the six counties of Bedfordshire, Cambridgeshire, Essex, Hertfordshire, Norfolk, Suffolk and the unitary authorities of Peterborough, Luton, Southend-on-Sea and Thurrock.
With London on the region's doorstep, the East of England is one of the most dynamic and fastest growing regions in the UK. The region's economy is home to over 430,000 businesses and 5.6 million people.
The East of England is characterised by a number of flourishing medium-sized towns and cities - each with its own distinctive character and strengths.
These urban centres are complemented by extensive rural areas. These have diverse economies including a strong tourism industry supported by miles of beautiful coastline.
SECTOR CLASSIFCATIONS
Agriculture
A. Agriculture, hunting, forestry & fishing
B. Mining and quarrying of energy producing materials
C. Other mining and quarrying
Industry
D. Manufacturing
E. Electricity, gas and water supply
F. Construction
Service
G. Wholesale and retail trade (including motor trade)
H. Hotels and restaurants
I. Transport, storage and communication
J. Financial intermediation
K. Real estate, renting and business activities
L. Public administration and defence
M. Education
N. Health and social work
O. Other Services
East of England
0
10
20
30
K D G F I N M J O L H E A C B
Gross Value Added per worker: 2007in thousand GBP
35
48
58
0
20
40
60
80
Manufactur ing Ser vices Other
UK Average
Market Intelligence based on: Office of National Statistics: www.statistics.gov.uk; For Regional Development Agency see: www.eeda.org.uk
Workplace-based gross value added: 2006: in billion GBP at current basic prices
Valu
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dded b
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ect
or
Scotland
0
4
8
12
16
20
K D G N J F I L M O H E B A C
SUMMARYScotland is renowned for its expertise in finance including global custody, asset servicing, banking, investment management, software development and life assurance and pensions. It also has vibrant general insurance, corporate finance and broking services sectors, and a strong community of professional advisors and suppliers.
Scotland is home to more than 4,000 digital media and enabling technology companies, including multi-nationals Hewlett-Packard, Micrsoft, NCR and IBM. Indigenous companies such as Nallatech, Optos, Rock Start North and Wolfson Microelectronics are global leaders in their fields of expertise.
Plus with North Sea oil and gas, and renewable energies such as wind and wave power, Scotland has a burgeoning and diverse energy sector.
SECTOR CLASSIFCATIONS
Agriculture
A. Agriculture, hunting, forestry & fishing
B. Mining and quarrying of energy producing materials
C. Other mining and quarrying
Industry
D. Manufacturing
E. Electricity, gas and water supply
F. Construction
Service
G. Wholesale and retail trade (including motor trade)
H. Hotels and restaurants
I. Transport, storage and communication
J. Financial intermediation
K. Real estate, renting and business activities
L. Public administration and defence
M. Education
N. Health and social work
O. Other Services
Gross Value Added per worker: 2007in thousand GBP
UK Average
34
5450
0
20
40
60
80
Manufactur ing Ser vices Other
Market Intelligence based on: Office of National Statistics: www.statistics.gov.uk; For Regional Development Agency see: www.sdi.co.uk
Workplace-based gross value added: 2006: in billion GBP at current basic prices
Valu
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or
SUMMARYSouth West England is ranked top of the nine English regions as a place to live and work. Businesses in the South West are among the most productive in the UK, making this the most productive region outside London and the Greater South East (Source: Office of National Statistics, Regional GVA).
The South West has the best business survival rate of anywhere in Britain. The region has a good infrastructure in place as well as some of the UK's most rapidly expanding airports making the region your gateway to UK and Europe. South West England has a proven pedigree as the place for international businesses to succeed. Over 1,500 international businesses have chosen to locate here and share in our success.
SECTOR CLASSIFCATIONS
Agriculture
A. Agriculture, hunting, forestry & fishing
B. Mining and quarrying of energy producing materials
C. Other mining and quarrying
Industry
D. Manufacturing
E. Electricity, gas and water supply
F. Construction
Service
G. Wholesale and retail trade (including motor trade)
H. Hotels and restaurants
I. Transport, storage and communication
J. Financial intermediation
K. Real estate, renting and business activities
L. Public administration and defence
M. Education
N. Health and social work
O. Other Services
South West
0
5
10
15
20
25
K D G N L F M J I O H E A C B
Gross Value Added per worker: 2007in thousand GBP
UK Average
3342
70
0
20
40
60
80
Manufactur ing Ser vices Other
Market Intelligence based on: Office of National Statistics: www.statistics.gov.uk; For Regional Development Agency see: www.southwestrda.org.uk
Workplace-based gross value added: 2006: in billion GBP at current basic prices
Valu
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dded b
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ect
or
SUMMARYThe West Midlands comprises the counties of Shropshire, Staffordshire, Warwickshire and Worcestershire; the unitary authorities of Herefordshire, Stoke-on-Trent and Telford and Wrekin; and the seven metropolitan districts of Birmingham, Coventry, Dudley, Sandwell, Solihull, Walsall and Wolverhampton.
As the birthplace of the Industrial Revolution, the West Midlands was once known as the workshop of the world. Now, 150 years on, our region continues to influence the world. The West Midlands boasts a world-class business environment, with highly developed supply chains and professional service networks that complement our untouchable industrial pedigree. Internationally famous names like Cadbury Schweppes, JCB and Wedgwood started, and continue to prosper, in our region. The West Midlands' central location, impressive infrastructure and ready-made skills base have led international companies like Fujitsu, Vodaphone and Muller to locate operations in the region.
SECTOR CLASSIFCATIONS
Agriculture
A. Agriculture, hunting, forestry & fishing
B. Mining and quarrying of energy producing materials
C. Other mining and quarrying
Industry
D. Manufacturing
E. Electricity, gas and water supply
F. Construction
Service
G. Wholesale and retail trade (including motor trade)
H. Hotels and restaurants
I. Transport, storage and communication
J. Financial intermediation
K. Real estate, renting and business activities
L. Public administration and defence
M. Education
N. Health and social work
O. Other Services
West Midlands
0
5
10
15
20
25
K D G N M F I J O L H E A C B
Gross Value Added per worker: 2007in thousand GBP
UK Average
3242
58
0
20
40
60
80
Manufactur ing Ser vices Other
Market Intelligence based on: Office of National Statistics: www.statistics.gov.uk; For Regional Development Agency see: www.advantagewm.co.uk
Workplace-based gross value added: 2006: in billion GBP at current basic prices
Valu
e A
dded b
y S
ect
or
SUMMARYYorkshire & the Humber covers most of the historic county of Yorkshire, along with the part of northern Lincolnshire within the former shire county of Humberside. The region is home to a diverse set of industries including AEM, food & drink, health technologies, environmental technologies, chemicals, digital & new media, and financial services.
SECTOR CLASSIFCATIONS
Agriculture
A. Agriculture, hunting, forestry & fishing
B. Mining and quarrying of energy producing materials
C. Other mining and quarrying
Industry
D. Manufacturing
E. Electricity, gas and water supply
F. Construction
Service
G. Wholesale and retail trade (including motor trade)
H. Hotels and restaurants
I. Transport, storage and communication
J. Financial intermediation
K. Real estate, renting and business activities
L. Public administration and defence
M. Education
N. Health and social work
O. Other Services
Yorkshire & the Humber
0
5
10
15
20
K D G N F I M J L O H E A B C
UK Average
Gross Value Added per worker: 2007in thousand GBP
31
4247
0
20
40
60
80
Manufactur ing Ser vices Other
Market Intelligence based on: Office of National Statistics: www.statistics.gov.uk; For Regional Development Agency see: www.yorkshire-forward.com
Workplace-based gross value added: 2006: in billion GBP at current basic prices
Valu
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dded b
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ect
or
SUMMARYThe East Midlands is a large, active and diverse region, with 4.3 million people and over 260,000 businesses. The region benefits from its geographical location at the heart of the UK with strong links to London and the south east and to the northern regions. From the
Peak District National Park through the dynamic cities of Nottingham, Derby and Leicester to the Lincolnshire coast and the counties of Rutland and Northamptonshire, the region has plenty to offer. But it also faces a wide range of challenges - both in urban and rural areas.
SECTOR CLASSIFCATIONS
Agriculture
A. Agriculture, hunting, forestry & fishing
B. Mining and quarrying of energy producing materials
C. Other mining and quarrying
Industry
D. Manufacturing
E. Electricity, gas and water supply
F. Construction
Service
G. Wholesale and retail trade (including motor trade)
H. Hotels and restaurants
I. Transport, storage and communication
J. Financial intermediation
K. Real estate, renting and business activities
L. Public administration and defence
M. Education
N. Health and social work
O. Other Services
East Midlands
0
5
10
15
20
K D G F N I M L O J H E A C B
UK Average
Gross Value Added per worker: 2007in thousand GBP
35
48
58
0
20
40
60
80
Manufactur ing Ser vices Other
Market Intelligence based on: Office of National Statistics: www.statistics.gov.uk; For Regional Development Agency see: www.emda.org.uk
Workplace-based gross value added: 2006: in billion GBP at current basic prices
Valu
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dded b
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ect
or
SUMMARYFrom the early 1970s, the Welsh economy faced massive restructuring with large numbers of jobs in traditional heavy industry disappearing and being replaced eventually by new ones in light industry and in services. Over this period Wales was successful in attracting an above average share of foreign direct investment (FDI) in the UK.
The relative importance of manufacturing is underlined by the fact that it accounts for 24% of gross value added to the Welsh economy. This compares with 18% in the UK economy as a whole. This sector provides around 179,000 direct jobs in Wales and supports many others.
SECTOR CLASSIFCATIONS
Agriculture
A. Agriculture, hunting, forestry & fishing
B. Mining and quarrying of energy producing materials
C. Other mining and quarrying
Industry
D. Manufacturing
E. Electricity, gas and water supply
F. Construction
Service
G. Wholesale and retail trade (including motor trade)
H. Hotels and restaurants
I. Transport, storage and communication
J. Financial intermediation
K. Real estate, renting and business activities
L. Public administration and defence
M. Education
N. Health and social work
O. Other Services
Wales
0
2
4
6
8
10
K D G N M F L I O J H E A C B
UK Average
Gross Value Added per worker: 2007in thousand GBP
29
4247
0
20
40
60
80
Manufactur ing Ser vices Other
Market Intelligence based on: Office of National Statistics: www.statistics.gov.uk; For Regional Development Agency see: www.ibwales.com
Workplace-based gross value added: 2006: in billion GBP at current basic prices
Valu
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dded b
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ect
or
SUMMARYNorth East England comprises the combined area of Northumberland, County Durham, Tyne and Wear, and Tees Valley (including parts of North Yorkshire). The main city in the region is Newcastle upon Tyne. Other towns in the area are: Gateshead, Sunderland, South Shields, Durham, Middlesbrough, Stockton-on-Tees, Hartlepool and Darlington.
The economy was for several decades unusually highly focused on two industries, ship building and coal mining.
SECTOR CLASSIFCATIONS
Agriculture
A. Agriculture, hunting, forestry & fishing
B. Mining and quarrying of energy producing materials
C. Other mining and quarrying
Industry
D. Manufacturing
E. Electricity, gas and water supply
F. Construction
Service
G. Wholesale and retail trade (including motor trade)
H. Hotels and restaurants
I. Transport, storage and communication
J. Financial intermediation
K. Real estate, renting and business activities
L. Public administration and defence
M. Education
N. Health and social work
O. Other Services
North East
0
2
4
6
8
10
K D G N M F L I J O H E A C B
Gross Value Added per worker: 2007in thousand GBP
UK Average
31
48 50
0
20
40
60
80
Manufactur ing Ser vices Other
Market Intelligence based on: Office of National Statistics: www.statistics.gov.uk; For Regional Development Agency see: www.onenortheast.co.uk
Workplace-based gross value added: 2006: in billion GBP at current basic prices
Valu
e A
dded b
y S
ect
or
SUMMARYThe Northern Ireland economy is the smallest of the four economies making up the UK. Northern Ireland has traditionally had an industrial economy, most notably in shipbuilding, rope manufacture and textiles, but most heavy industry has since been replaced by services, primarily the public sector. Tourism also plays a big role in the local economy. More recently the economy has benefited from major investment by many large multi-national corporations into high tech industry.
There are now over 700 foreign investors and a multitude of investors from the rest of
the UK have chosen to locate here.
SECTOR CLASSIFCATIONS
Agriculture
A. Agriculture, hunting, forestry & fishing
B. Mining and quarrying of energy producing materials
C. Other mining and quarrying
Industry
D. Manufacturing
E. Electricity, gas and water supply
F. Construction
Service
G. Wholesale and retail trade (including motor trade)
H. Hotels and restaurants
I. Transport, storage and communication
J. Financial intermediation
K. Real estate, renting and business activities
L. Public administration and defence
M. Education
N. Health and social work
O. Other Services
Northern Ireland
0
1
2
3
4
5
6
K D G L N F M I J O H E A C B
UK Average
Gross Value Added per worker: 2007in thousand GBP
32
46
32
0
20
40
60
80
Manufactur ing Ser vices Other
Market Intelligence based on: Office of National Statistics: www.statistics.gov.uk; For Regional Development Agency see: www.investni.com
Company size: private sector employees by segment (2008)
Em
plo
yees
by S
ect
or
SECTOR CLASSIFCATIONS
Agriculture
A. Agriculture, hunting, forestry & fishing
B. Mining and quarrying of energy producing materials
C. Other mining and quarrying
Industry
D. Manufacturing
E. Electricity, gas and water supply
F. Construction
Service
G. Wholesale and retail trade (including motor trade)
H. Hotels and restaurants
I. Transport, storage and communication
J. Financial intermediation
K. Real estate, renting and business activities
L. Public administration and defence
M. Education
N. Health and social work
O. Other Services
Market Intelligence based on: Office of National Statistics: http://stats.bis.gov.uk/ed/sme; http://www.statistics.gov.uk/StatBase/Product.asp?vlnk=14161
250+ employees
50 – 249 employees
1 – 49 employees
None*"None" comprises sole proprietorships and partnerships comprising only the self-employed owner-manager(s), and companies comprising only an employee director.
Company size: private sector employees by segment (2008)
Em
plo
yees
by S
ect
or
SECTOR CLASSIFCATIONS
Agriculture
A. Agriculture, hunting, forestry & fishing
B. Mining and quarrying of energy producing materials
C. Other mining and quarrying
Industry
D. Manufacturing
E. Electricity, gas and water supply
F. Construction
Service
G. Wholesale and retail trade (including motor trade)
H. Hotels and restaurants
I. Transport, storage and communication
J. Financial intermediation
K. Real estate, renting and business activities
L. Public administration and defence
M. Education
N. Health and social work
O. Other Services
Market Intelligence based on: Office of National Statistics: http://stats.bis.gov.uk/ed/sme; http://www.statistics.gov.uk/StatBase/Product.asp?vlnk=14161
250+ employees
50 – 249 employees
1 – 49 employees
None*"None" comprises sole proprietorships and partnerships comprising only the self-employed owner-manager(s), and companies comprising only an employee director.
Company size: private sector employees by segment (2008)
Em
plo
yees
by S
ect
or
SECTOR CLASSIFCATIONS
Agriculture
A. Agriculture, hunting, forestry & fishing
B. Mining and quarrying of energy producing materials
C. Other mining and quarrying
Industry
D. Manufacturing
E. Electricity, gas and water supply
F. Construction
Service
G. Wholesale and retail trade (including motor trade)
H. Hotels and restaurants
I. Transport, storage and communication
J. Financial intermediation
K. Real estate, renting and business activities
L. Public administration and defence
M. Education
N. Health and social work
O. Other Services
Market Intelligence based on: Office of National Statistics: http://stats.bis.gov.uk/ed/sme; http://www.statistics.gov.uk/StatBase/Product.asp?vlnk=14161
250+ employees
50 – 249 employees
1 – 49 employees
None*"None" comprises sole proprietorships and partnerships comprising only the self-employed owner-manager(s), and companies comprising only an employee director.
Company size: private sector employees by segment (2008)
Em
plo
yees
by S
ect
or
SECTOR CLASSIFCATIONS
Agriculture
A. Agriculture, hunting, forestry & fishing
B. Mining and quarrying of energy producing materials
C. Other mining and quarrying
Industry
D. Manufacturing
E. Electricity, gas and water supply
F. Construction
Service
G. Wholesale and retail trade (including motor trade)
H. Hotels and restaurants
I. Transport, storage and communication
J. Financial intermediation
K. Real estate, renting and business activities
L. Public administration and defence
M. Education
N. Health and social work
O. Other Services
Market Intelligence based on: Office of National Statistics: http://stats.bis.gov.uk/ed/sme; http://www.statistics.gov.uk/StatBase/Product.asp?vlnk=14161
250+ employees
50 – 249 employees
1 – 49 employees
None*"None" comprises sole proprietorships and partnerships comprising only the self-employed owner-manager(s), and companies comprising only an employee director.
Company size: private sector employees by segment (2008)
Em
plo
yees
by S
ect
or
SECTOR CLASSIFCATIONS
Agriculture
A. Agriculture, hunting, forestry & fishing
B. Mining and quarrying of energy producing materials
C. Other mining and quarrying
Industry
D. Manufacturing
E. Electricity, gas and water supply
F. Construction
Service
G. Wholesale and retail trade (including motor trade)
H. Hotels and restaurants
I. Transport, storage and communication
J. Financial intermediation
K. Real estate, renting and business activities
L. Public administration and defence
M. Education
N. Health and social work
O. Other Services
Market Intelligence based on: Office of National Statistics: http://stats.bis.gov.uk/ed/sme; http://www.statistics.gov.uk/StatBase/Product.asp?vlnk=14161
250+ employees
50 – 249 employees
1 – 49 employees
None*"None" comprises sole proprietorships and partnerships comprising only the self-employed owner-manager(s), and companies comprising only an employee director.
Company size: private sector employees by segment (2008)
Em
plo
yees
by S
ect
or
SECTOR CLASSIFCATIONS
Agriculture
A. Agriculture, hunting, forestry & fishing
B. Mining and quarrying of energy producing materials
C. Other mining and quarrying
Industry
D. Manufacturing
E. Electricity, gas and water supply
F. Construction
Service
G. Wholesale and retail trade (including motor trade)
H. Hotels and restaurants
I. Transport, storage and communication
J. Financial intermediation
K. Real estate, renting and business activities
L. Public administration and defence
M. Education
N. Health and social work
O. Other Services
Market Intelligence based on: Office of National Statistics: http://stats.bis.gov.uk/ed/sme; http://www.statistics.gov.uk/StatBase/Product.asp?vlnk=14161
250+ employees
50 – 249 employees
1 – 49 employees
None*"None" comprises sole proprietorships and partnerships comprising only the self-employed owner-manager(s), and companies comprising only an employee director.
B. Mining and quarrying of energy producing materials
C. Other mining and quarrying
Industry
D. Manufacturing
E. Electricity, gas and water supply
F. Construction
Service
G. Wholesale and retail trade (including motor trade)
H. Hotels and restaurants
I. Transport, storage and communication
J. Financial intermediation
K. Real estate, renting and business activities
L. Public administration and defence
M. Education
N. Health and social work
O. Other Services
Market Intelligence based on: Department for Business Innovation & Skills, « SME Statistics for the UK and Regions », (2008); *NB: no figures available for C,E and M for None
Company size: private sector employees by segment (2008)
Em
plo
yees
by S
ect
or
SECTOR CLASSIFCATIONS
Agriculture
A. Agriculture, hunting, forestry & fishing
B. Mining and quarrying of energy producing materials
C. Other mining and quarrying
Industry
D. Manufacturing
E. Electricity, gas and water supply
F. Construction
Service
G. Wholesale and retail trade (including motor trade)
H. Hotels and restaurants
I. Transport, storage and communication
J. Financial intermediation
K. Real estate, renting and business activities
L. Public administration and defence
M. Education
N. Health and social work
O. Other Services
Market Intelligence based on: Office of National Statistics: http://stats.bis.gov.uk/ed/sme; http://www.statistics.gov.uk/StatBase/Product.asp?vlnk=14161
250+ employees
50 – 249 employees
1 – 49 employees
None*"None" comprises sole proprietorships and partnerships comprising only the self-employed owner-manager(s), and companies comprising only an employee director.
B. Mining and quarrying of energy producing materials
C. Other mining and quarrying
Industry
D. Manufacturing
E. Electricity, gas and water supply
F. Construction
Service
G. Wholesale and retail trade (including motor trade)
H. Hotels and restaurants
I. Transport, storage and communication
J. Financial intermediation
K. Real estate, renting and business activities
L. Public administration and defence
M. Education
N. Health and social work
O. Other Services
Market Intelligence based on: Department for Business Innovation & Skills, « SME Statistics for the UK and Regions », (2008); *NB: no figures available for C,E and M for None
Company size: private sector employees by segment (2008)
Em
plo
yees
by S
ect
or
SECTOR CLASSIFCATIONS
Agriculture
A. Agriculture, hunting, forestry & fishing
B. Mining and quarrying of energy producing materials
C. Other mining and quarrying
Industry
D. Manufacturing
E. Electricity, gas and water supply
F. Construction
Service
G. Wholesale and retail trade (including motor trade)
H. Hotels and restaurants
I. Transport, storage and communication
J. Financial intermediation
K. Real estate, renting and business activities
L. Public administration and defence
M. Education
N. Health and social work
O. Other Services
Market Intelligence based on: Office of National Statistics: http://stats.bis.gov.uk/ed/sme; http://www.statistics.gov.uk/StatBase/Product.asp?vlnk=14161
250+ employees
50 – 249 employees
1 – 49 employees
None*"None" comprises sole proprietorships and partnerships comprising only the self-employed owner-manager(s), and companies comprising only an employee director.
Company size: private sector employees by segment (2008)
Em
plo
yees
by S
ect
or
SECTOR CLASSIFCATIONS
Agriculture
A. Agriculture, hunting, forestry & fishing
B. Mining and quarrying of energy producing materials
C. Other mining and quarrying
Industry
D. Manufacturing
E. Electricity, gas and water supply
F. Construction
Service
G. Wholesale and retail trade (including motor trade)
H. Hotels and restaurants
I. Transport, storage and communication
J. Financial intermediation
K. Real estate, renting and business activities
L. Public administration and defence
M. Education
N. Health and social work
O. Other Services
Market Intelligence based on: Office of National Statistics: http://stats.bis.gov.uk/ed/sme; http://www.statistics.gov.uk/StatBase/Product.asp?vlnk=14161
250+ employees
50 – 249 employees
1 – 49 employees
None*"None" comprises sole proprietorships and partnerships comprising only the self-employed owner-manager(s), and companies comprising only an employee director.
Company size: private sector employees by segment (2008)
Em
plo
yees
by S
ect
or
SECTOR CLASSIFCATIONS
Agriculture
A. Agriculture, hunting, forestry & fishing
B. Mining and quarrying of energy producing materials
C. Other mining and quarrying
Industry
D. Manufacturing
E. Electricity, gas and water supply
F. Construction
Service
G. Wholesale and retail trade (including motor trade)
H. Hotels and restaurants
I. Transport, storage and communication
J. Financial intermediation
K. Real estate, renting and business activities
L. Public administration and defence
M. Education
N. Health and social work
O. Other Services
Market Intelligence based on: Office of National Statistics: http://stats.bis.gov.uk/ed/sme; http://www.statistics.gov.uk/StatBase/Product.asp?vlnk=14161
250+ employees
50 – 249 employees
1 – 49 employees
None*"None" comprises sole proprietorships and partnerships comprising only the self-employed owner-manager(s), and companies comprising only an employee director.
Company size: private sector employees by segment (2008)
Em
plo
yees
by S
ect
or
SECTOR CLASSIFCATIONS
Agriculture
A. Agriculture, hunting, forestry & fishing
B. Mining and quarrying of energy producing materials
C. Other mining and quarrying
Industry
D. Manufacturing
E. Electricity, gas and water supply
F. Construction
Service
G. Wholesale and retail trade (including motor trade)
H. Hotels and restaurants
I. Transport, storage and communication
J. Financial intermediation
K. Real estate, renting and business activities
L. Public administration and defence
M. Education
N. Health and social work
O. Other Services
North East
Market Intelligence based on: Office of National Statistics: http://stats.bis.gov.uk/ed/sme; http://www.statistics.gov.uk/StatBase/Product.asp?vlnk=14161
DisclaimerDisclaimer
3.2%
0.1%
6%
25%
11%
4%
7%
2%
20%
4%
7%
12%
0%
5%
10%
15%
20%
25%
30%
A,B C, E D F G H I J K M N O
Employees by company size (2008)
250+ employees
50 – 249 employees
1 – 49 employees
None*"None" comprises sole proprietorships and partnerships comprising only the self-employed owner-manager(s), and companies comprising only an employee director.
Company size: private sector employees by segment (2008)
Em
plo
yees
by S
ect
or
SECTOR CLASSIFCATIONS
Agriculture
A. Agriculture, hunting, forestry & fishing
B. Mining and quarrying of energy producing materials
C. Other mining and quarrying
Industry
D. Manufacturing
E. Electricity, gas and water supply
F. Construction
Service
G. Wholesale and retail trade (including motor trade)
H. Hotels and restaurants
I. Transport, storage and communication
J. Financial intermediation
K. Real estate, renting and business activities
L. Public administration and defence
M. Education
N. Health and social work
O. Other Services
Market Intelligence based on: Office of National Statistics: http://stats.bis.gov.uk/ed/sme; http://www.statistics.gov.uk/StatBase/Product.asp?vlnk=14161
DisclaimerDisclaimer
Employees by company size (2008)
250+ employees
50 – 249 employees
1 – 49 employees
None*"None" comprises sole proprietorships and partnerships comprising only the self-employed owner-manager(s), and companies comprising only an employee director.
! Market Intelligence based on: Office of National Statistics, www.statistics.gov.uk
Population density, 2007
(people per sq km)
1 Islington2 Tower Hamlets3 Barking and Dagenham4 Hammersmith and Fulham5 Kensington and Chelsea6 Westminster 7 City of London8 Richmond upon Thames9 Wandsworth10 Lambeth11 Southwark12 Lewisham13 Kingston upon Thames
! Market Intelligence based on: Office of National Statistics, www.statistics.gov.uk
Population density, 2007
(people per sq km)
1 Forest of Dean2 Tewkesbury3 Gloucester4 Cheltenham5 South Gloucestershire 6 Swindon 7 City of Bristol 8 North Somerset 9 Bath and North East Somerset 10 West Wiltshire11 Poole 12 Bournemouth 13 Christchurch
! Market Intelligence based on: Office of National Statistics, www.statistics.gov.uk
1 Aberdeen City2 Dundee City3 Clackmannanshire4 West Dunbartonshire5 East Dunbartonshire6 Falkirk7 Inverclyde8 Renfrewshire9 Glasgow City10 North Lanarkshire11 West Lothian12 City of Edinburgh13 Midlothian14 East Lothian15 North Ayrshire16 East Renfrewshire17 East Ayrshire18 South Lanarkshire
! Market Intelligence based on: Office of National Statistics, www.statistics.gov.uk
Population density, 2007
(people per sq km)
1 Chesterfield2 North East Derbyshire3 Bolsover4 Mansfield5 Lincoln6 Ashfield7 Gedling8 Erewash9 Broxtowe10 Nottingham 11 South Derbyshire12 North West Leicestershire13 Hinckley and Bosworth14 Leicester 15 Blaby16 Oadby and Wigston17 East Northamptonshire18 Wellingborough19 Northampton
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Lloyd's does not accept any responsibility or liability for any loss to any person acting or refraining from action as a result of, but not limited to, any statement, fact, figure, expression of opinion or belief contained in this document.
