 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Last update:24th July 2008 Quick links:
|
EconomyWhat's new on this page...
The environment of the South West is one of the Region's key strengths, and one that sets it apart from the other English regions. It is of immense value to the great many who live in, work in and visit the South West. The economy of the South West of England has grown steadily over the past two decades. The region contributes nearly 8% towards the National Gross Domestic Product and regional GDP growth has consistently out-performed the UK average. Employment growth in the region has also outstripped that of the country as a whole. Between 1995 and 2000 the region netted an additional 155,000 jobs and trailed only London and the south-east in its rate of growth. (South West RDA) The Regional Economic Strategy - environment driverThe Regional Economic Strategy includes the environment as a driver, “ where the region’s unique environmental and cultural assets are protected and enhanced so that they will continue to attract investment and develop economic advantage”. The environment driver encompasses a number of aspects that relate to the special strengths of the South West, as well as the potential opportunities to gain economic benefit from environmental activity. In particular:
In identifying the environment as a key driver for the economy, it is important to protect and enhance the region’s environmental and cultural capital so that it can continue to benefit the region. Six broad themes (outlined below) make up the broad range of activities covered by the SW environment driver.
Source: Regional Economic Strategy Review 2005: Evidence Base Focus on the environment driver should enable the region to develop a strong and positive relationship between economic development and broader issues of sustainability. The South West Debates - preparing for the next economic strategyThe Regional Economic Strategy for South West England (RES) sets out a shared vision for the development of the region’s economy to 2015 and provides a delivery framework to influence and guide what regional partners do. Although the core vision, drivers and strategic objectives are right for this timescale, the RES process identified five emerging themes which are going to influence regional economic success beyond 2015:
We don’t yet know how these themes are going to develop or what impact they will have on the region’s economy. The purpose of the SW Debates, therefore, is to scope out and research the main issues around each theme, debate what they mean for the region’s economy and seek agreement on the way forward. The outcomes will help shape the development of the next Regional Economic Strategy. The South West Debates is a new website that helps you to track these 5 emerging key themes to find out what is happening in each Debate, to explore issues around the five themes and to share what you think. Economic sectors in the South WestThe environment of strength and stability for businesses in South West
is a key factor behind the region's continuing growth and attractiveness.
Many international organisations have chosen to locate within the region,
attracted by the region's proximity and accessibility to London and Europe
as well as it's high quality of life and wealth of natural resources.
Those with an environmental angle are detailed below. Environmental TechnologiesThe South West Regional Development Agency identifies environmental technologies as one of the key economic sectors in the South West. It consists of approximately 1,300 enterprises, employs over 20,000 people and contributes in the region of £1,300 million pounds to the South West economy. The Environmental Prospectus for the South West (1999) estimates that the economy associated with the environment has the potential to develop a further 39,000 jobs and £670 million of additional output over the next few years. The South West has abundant natural resources with the potential to
generate significant amounts of power from renewable energy. For example
the region has some of the best wave energy resources of anywhere in Europe.
The British Energy Association suggests that South West England could
produce 10% of the government's onshore wind energy production targets
for 2010. With such excellent renewable energy resources onshore in wind
and biomass and offshore in wave and tidal stream, SWRDA has decided to
focus on two of its growing sub-sectors; renewable energy and waste. BiotechnologyBiotechnology is one of the key economic sectors in the South West as listed by the South West Regional Development Agency. Biotechnology is the (industrial) use of living organisms, biological processes or products. It provides process and product solutions for the following markets: pharmaceutical, agricultural, food, chemical processing, industrial and environmental. According to the South West Regional Development Agency's pages on biotechnology the region's universities, companies and institutes remain at the forefront of global research and are often recognised leaders within their own specialist field. The main clusters where these South West players are located are in:
South West biotechnology companies reflect the overall strengths of the UK bio-industry which are:
The South West Biotechnology Sector includes:
Food and drinkFood and drink businesses are a key economic sector identified by the South West Regional Development Agency. Farming accounted for less than 2% of regional output and 3% of employment in the South West during 2004. However, In 2004, over 1.8 million hectares (around 80%) of the South West's land was under agriculture according to Defra's Agricultural Census 2005. The natural high quality of the primary foods produced in the region, ie, milk, meat, fish, fruit and vegetables, ensures that the local supply chain is constantly in demand. The South West has the highest are of fully organic and in-conversion land of all the English regions, as well as the highest percentage of total land area that is organic. As the consumer becomes more aware of food safety and quality, environmental and welfare issues, the South West is an excellent location for future investment. With its traditional farming ties and strong links to tourism, South West producers have been able to increase the niche and quality markets - a trend which is expected to continue. There are over 3,000 food and drink producers in the South West. Many small, traditional and new companies are located in this region providing a highly innovative and focused business region. Larger food and drink manufacturers are also well represented in the region, with over 60 companies employing more than 200 people. More information about agriculture in the South West MarineThe South West Regional Development Agency identifies marine businesses as a key economic sector in the South West. The strong tradition of maritime activity and an established core of healthy and diverse companies across all the major sections from commercial and leisure to defence and marine science are important factors in drawing marine businesses to the region. Marine businesses in the South West already employ over 32,000 people
in 2,700 companies generating a turnover of over £1.3 billion per
year, so it is a key sector for the region and has the support of the
South West RDA who may offer grants to both new and existing businesses
in specific locations on a case by case basis. More information about the marine environment Other environmental sectorsThe South West also has a number of environmental businesses that are not included in the key economic sectors by the South West Regional Development Agency, some of which are detailed below. Mining and Quarrying sectorThe South West is rich with mineral resources such as aggregates (crushed rock and sand), coal and hydrocarbons (oil and gas), china and ball clay and building stone. The region contains all of the UK production of ball clay, over three-quarters of which is exported to generate £30 million in export sales each year. China clay is also of importance, with high quality deposits in Cornwall. In 2002, Defra estimated that the china clay industry in Devon and Cornwall contributed more than £150m a year to the local economy. The mining and quarrying sector is small in employment terms; the 2001 Census found that 0.3% of South West residents worked in the industry compared to 0.2% for England as a whole. However, this proportion rises to 1.3% of the resident population of Cornwall. According to the ONS, there were 4,211 people employed in mineral extraction in the South West in 2003, just under 23% of the England total (18,428) and the highest of any region in England and Wales. The highest employment was in limestone quarrying with1,622 employees, followed by sand and gravel with 751 employees. More information about mining & quarrying in the South West. Woodland & forestryAccording to the Forestry Commission, woodland and forests contribute over £500 million per annum to the region’s economy in 2005, roughly 1% of the Gross Domestic Product. Tourism, recreation and other economic effects generate the majority of this revenue with £300 - £375 million, with timber production contributing £17 million, £134 million comes from timber processing and induced effects £50 million. Around 2,570 full-time equivalent people are employed in the woodland and forestry sector in the region. Between 1989 and 1999 employment dropped by over 30%, following the trend in the rest of England. More information about woodland and forestry in the South West. TourismThe tourism sector of the South West's economy is one of its largest industries, worth more than £8 billion annually to the South West economy brought in by almost 26 million visitors and bringing employment for over 300,000 people According to Key Facts of Tourism in the South West 2000 - 2003 (South West Tourism, 2005):
A study by the National Trust found that 78% of all holiday trips to the South West are motivated by the conserved landscape (the managed rural environment, including fields, moors, woods, villages and coastline). (Valuing Our Environment - National Trust, 1998). More information about tourism in the South West. Impact of climate change on the economyClimate change affects all aspects of life including the region’s economy. If the environment is damaged by climate change the region becomes a less attractive location in which to live and work. If transport links are congested, people will be deterred from coming to the area. Traditional businesses in food and farming may also be threatened. However, climate change may also signal new economic opportunities. More information about the impacts of climate change on the region's economy is available here. Economic IndicatorsThe South West Observatory / Business and Economy Module have summarised the various local, regional and national indicators applicable to this sector. The effect of a good environment on the economyIn 1999, environment related economic activity contributed at least 100,000 jobs and £1.6 billion to the South West region. Such activity can be described in three parts: The Environment sectorThe Environment sector generates about 38,000 jobs and has an output of about £833 million. The sector covers:
It is likely that the economic value of this sector has increased significantly since 1999. Uptake by businesses of Environmental Management Schemes such as ISO 14001 has increased and now stands at 142 accreditations in the South West (EMAS, from their web site). Such schemes not only improve environmental performance but also generate significant savings in, for example, energy and waste costs Existing renewable energy schemes in the South West are capable of producing nearly 52 MW of electricity. Proposals to increase the proportion of energy provided from renewable sources could increase this to as much as 259- 597 MW (Terence O'Rourke PLC & ETSU 2001). The lower end of this estimate could translate into at least 14,000 jobs and £194 million wealth creation in the South West (the Prospectus estimates that each 10 MW renewable energy brings in £7.5 million into the region, and every 55 MW creates 3,000 jobs). Regenerating the primary sectorRegenerating the primary sector generates about 600 jobs and an output of c £13.1 million. The sector covers:
Again, the economic value of this sector is likely to have increased since 1999. For example, the land under Countryside Stewardship Schemes in England has almost doubled since 1999, whilst the area under organic management has increased more than 8-fold (DEFRA, from their web site). The Soil Association expect an increase in turnover from organic enterprises in the South West from £28.3 million to £59.1 million by 2005/6 (Soil Association, from their web site). This trend will be enhanced by the results of the Policy Commission on the Future of Farming and Food's report on 'Farming and Food: A Sustainable Future'. This will redirect public funds away from production subsidies and towards environmental goals. The South West is one of the best regions in Britain for growing trees, and the amount of new woodland established is increasing at a rate of about 1,000 ha (4 %) a year. Employment in the sector is projected to grow nationally at the rate of about 1000 jobs per year. Capitalising on a high quality environmentA high quality environment is increasingly recognised as a crucial capital asset for other economic sectors. As such, it generates around 55,000 jobs and £744 million output. The South West's environment particularly contributes to:
The value of the environment as an asset to these sectors is likely to be particularly underestimated by the Prospectus. For example, the National Trust estimate that most (78 %) of all holiday trips to the South West are motivated by conserved landscape, bringing in £2,354 million and supporting 97,200 actual jobs (54,000 full time equivalents). 'Culture' has been estimated to be worth £1 billion to the South West economy. This includes recreation and sporting activities, landscape, museums, libraries and galleries (Culture South West, 2001). There is a higher level of satisfaction with accommodation and area in the South West than is found in any other Region (ONS, 2001). The South West has been described as the place where most people in the country would live if they had the choice (Culture South West, 2001). |
