Central Hampshire / A31 Corridor. Manufacturing and Distribution Employment

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1 / A31 Corridor Manufacturing and Distribution Employment

2 Executive A Highly Skilled Workforce with Above Average Qualifications Close to a third of a million people live within a 35 minute peak time Journey To Work Area serving s manufacturing employers. s catchment provides an exceptionally young workforce. People aged between 16 and 24 account for 17.6% of all employees against 12.6% in the South East and 12.4% nationally. Close to half of all those in work are employed by private sector companies. Manufacturing employment accounts for 8.8% of total. A high proportion of these jobs are found in highly skilled manufacturing activities, in part due to the area s historic involvement in aerospace and defence, including the production of electronics, computers and components, precision optical instruments and electrical equipment. Employment in distribution is proportionately higher in s recruitment area than regionally, particularly within road freight related activities. 2

3 The catchment contains a skilled workforce with a considerably higher proportion of both fully and semi-qualified professionals than reported regionally and nationally. Participation in work related training across a broad range of activities is also higher in the area than in the South East or England as a whole. Close to three quarters of working age residents hold an NVQ. This is significantly above the average of just 68% in the region and 10% above England. 38% of residents hold an NVQ4, similar to a degree, compared to 35% regionally and just 32% nationally. Over 100,000 students attend the 7 universities in or adjacent to the catchment, two fifths of the regional total. There are proportionately more students enrolled in Engineering & Technology courses than in the region or England. Salary rates for manufacturing staff in Central Hampshire are competitive against other locations across England. Major companies include.. ATC Ltd Britax Excelsior Co-Op Distribution Estee Lauder GE Energy Micheldever Tyre Services plc R Twining & Co Ltd Stannah Lifts Ltd Vitacress Salads Ltd 3

4 About The Location Review Introduction The 2013 Location Review covering s recruitment catchment provides a thorough and independent assessment of the demographic profile, local labour market conditions, target recruitment groups and extent of recruitment potential for employers. All data in the report relate to the current observed Journey To Work Area (JTWA) that the majority of staff working in manufacturing firms located along Hampshire s central A31 corridor travel from unless otherwise stated. The JTWA takes account of travel to work methods, the pull of competing employment locations and transport conditions in the area. The A31 corridor takes in the vast majority of s employment locations relevant to manufacturing sector occupiers. Occupiers in Winchester would also draw on an area to the west of the city, a slightly larger catchment than reported here. The data in the report draws on official statistics, adjusted and presented to reflect the true recruitment area for typical employers. It is the most relevant and up to date source of information on the workforce scale and characteristics in the area. More detailed information including a comprehensive set of demographic, workforce, training, skills and labour market cost data for the area is available from the authors or Invest in Hampshire. The contents of the report are our own and without editorial influence of Hampshire County Council or other parties. East West Locations Ltd 4

5 s Recruitment Catchment Average Journey To Work Area (JTWA) during Peak Commuting Periods 5

6 The Location Average Travel Times: Road Rail Birmingham 2 hrs 10 2 hrs 15 Bristol 1 hr 35 1 hr 35 Cardiff 2 hrs 10 2 hrs 15 Central London 1 hr 30 1 hr Manchester 3 hrs 40 4 hrs Milton Keynes 1 hr 50 2 hrs 25 Nottingham 2 hrs 50 4 hrs Oxford 1 hr 1 hr Swindon 1 hr 5 1 hr 10 Gatwick Airport 1 hr 20 1 hr 30 Heathrow Airport 1 hr 1 hr 30 Road and rail travel times are from Winchester. Locations along the A31 corridor involve additional time. 6

7 HGV Drivetime Zones Several major ports and airports lie within a two hour HGV drivetime of. Included among these are the UK s largest and third largest freight handling airports, Heathrow and Stansted and the UK s third and fourth busiest ports, Tilbury Docks and Southampton Docks. Also accessible within a two hour drivetime are Gatwick Airport and Thamesport/Medway docks. Most of the UK s largest and busiest ports and airports are reachable within the statutory four and a half hour HGV driving limit, including the busiest seaports of the Humber (Grimsby and Immingham) and the second busiest freight handling airport, East Midlands. 7

8 Demographic Profile Overall Demographics (mid 2011) Catchment Population 322,500 male 156,850 female 165,650 Working Age Population (16-64) 200,500 male 98,859 female 101,650 Population Change, % (South East +8.5%, England +8.1%) Working Age Change, % (South East +7.9%, England +9.3%) Forecast Population (16-64) Net Change (to 2021) -2,500 Growth, % of Current Population -1.2% (South East -0.5%, England -0.3%) Close to a third of a million people live within a 35 minute Journey To Work Area serving s employers. Other catchments similar in scale include Maidstone (313,000 people) and Swindon (303,000). Over 200,000 residents are of working age (OWA), equivalent to 62.2% of the total population. By gender, women form a slight majority in this group compared to 49.8% in both the South East and England. The catchment s overall population has experienced strong growth of 7.6% since 2001 with an increase of 5% among the working age population. Looking forward, as fewer 5 to 14 year olds replace those retiring, the working age group is forecast a slight decline in scale to This decline is above the forecast for the South East and England over the following decade. 8

9 Age Profile of the Population 16 to 19 Year Olds Total Residents, 16 to 19 37,850 males 19,600 females 18, to 29 Year Olds Total Residents, 20 to 29 33,450 males 16,700 females 16, to 39 Year Olds Total Residents, 30 to 39 36,750 males 17,750 females 19, to 39 yrs, % of Working Age 35.0% 40 to 49 Year Olds Total Residents, 40 to 49 49,350 males 23,850 females 25,500 Those Approaching Retirement 55 to 64 Year Olds 40,300 The age profile of the catchment s population reveals a higher proportion of 16 to 19 year olds living in the catchment than in the wider areas. 8.6% of working age resident s fall into this age grouping compared to 7.7% in the South East and 7.8% nationally. However, the relative scale of age groupings shrinks compared to larger areas after 20. Residents in their twenties make up 16.7% OWA against 19.3% in the region and 21.1% in England. Those in their thirties make up 18.3% OWA, against a regional average of 20.3% and 20.5% nationally. The largest group among the catchment s OWA population are those in their forties, accounting for 24.6% of total. This stands one percentage point above the region and two percentage points above the English average. Residents in their last ten years OWA make up 20.1% of working age, notably above the regional rate of 18.7% and 18% in England. 9

10 Workforce Profile Employment Data (mid 2012) Overall Employees 153,450 males 82,500 females 70,950 Employees of Working Age 145,750 males 77,700 females 68,050 Young Employed, 16 to 24 yr olds 27,050 males 14,500 females 12,550 Employed, 25 to 34 yr olds 29,250 males 16,150 females 13,100 Silver Employees, retirement age+ 7,700 % of Employees 5.0% (South East 3.6%, England 3.1%) % Working Part Time 79.4% Over 153,000 people living in the catchment were in work during the year to June Males accounted for 53.8% of employees. Close to 146,000 employees were of working age with men forming a half per cent lower majority of the workforce at 53.3% of total. Despite a mature resident age profile, the recruitment area is home to a much greater proportion of young people in work than the regional or national workforce. 16 to 24 year olds represent 17.6% of employees against just 12.6% in the region and 12.4% nationally. Employees aged between 25 and 34 account for a further 19.1% of all those in work compared to 20.7% in the South East region. 7,700 residents continue to work beyond official retirement age, equivalent to 5% of the catchment s workforce. This rate stands much higher than the South East average of 3.6% and two percentage points above the national incidence of silver employment. At 79.4%, the part time rate of retirement age employees stands well above 68.7% across the South East and 69% nationally. 10

11 General Employment Profile Employment by Sector Private Service Sector Employees 76,150 males 42,450 females 33,700 of which Manufacturing Employees 13,550 males 9,900 females 3,650 Financial & Business Services 29,500 males 16,550 females 12,950 Other Private Sector Employees 33,100 males 16,050 females 17,050 of which Logistics (incl. Wholesale) 12,400 males 8,700 females 3,700 Public Sector Employees 47,300 males 14,350 females 32,950 Close to half of all employees work in private service sector companies. At 49.6% of total, this matches the English average and is only slightly lower than 50.3% in the South East. Manufacturing employment in the catchment accounts for 8.8% of total against 9.6% regionally and the national incidence of 10.8%. Males account for 72.9% of these employees. 21.6% of all jobs are found in other private sector employment compared to 22% in the region and 20.4% nationally. These activities include leisure and retail, distribution, private healthcare, education and telecommunications. Employment in logistics activities accounts for 8.1% of total. This is notably above 7.3% in the South East and remains slightly above the English average of 7.8%. Public sector employment is marginally above average in the area. 30.8% of resident s jobs are found in public sector posts against 29.9% regionally and 29.5% nationally. Women occupy a majority of 69.6% of these positions due to their dominance in healthcare and education activities. 11

12 Manufacturing Employment Profile Manufacturing Jobs (mid 2012) Total Manufacturing Employment 13,550 of which Food & Drinks Industry 1,050 Chemicals & Pharmaceuticals 800 Manufacture of Metals & Products 1,500 Machine Manufacture and 4,150 Engineering Rubber & Plastic Products 1,200 Other Manufacturing 4,850 Manufacturing employment accounts for 8.8% of all jobs against 9.6% and 10.8% in the South East and England respectively. The largest proportion of manufacturing jobs are in machine manufacture and engineering related activities. This group accounts for 30.5% of manufacturing activity compared to 28.8% nationally. Jobs in this group are generally at the higher end of the skills and value chain than in more process-oriented manufacturing. Almost 30% of the 4,150 people in these jobs work in the production of computer components, electronic and other precision products for example. Electrical equipment manufacture makes up a further 28% of jobs in machine manufacturing and automotive related activities account for a relatively high 11.6% of the 4,150 jobs. Other more general manufacturing remains high with 4,850 jobs in activities such as wood, paper and paper products, furniture production, textiles and clothing. 12

13 Distribution Activity Distribution Jobs (mid 2012) Total Distribution Employment 5,100 males 3,700 females 1,400 of which.. Road Freight 1,150 Other Freight (Air, Rail, Water) 150 Warehousing & Storage 800 Warehouse & Transport Support 1,050 Light Courier & Delivery Activities 650 Postal Services (incl. Royal Mail) 1,300 Distribution activities provide jobs for 3.3% of employed residents. This stands above the regional average of 2.9% and close to 3.5% in England as a whole. Men occupy a majority of 72.5% of these positions. Employment in the road freight industry is high in s catchment areas, accounting for 22.4% of jobs in distribution against just 18.1% in the South East. Although small in absolute number, non-road freight activities are important to the area. They represent 3.3% of distribution jobs, twice comparable regional and national rates. This is mainly driven by rail hubs south of the catchment at Southampton Docks and Airport. At 13% of distribution activity, post and courier roles are significantly more prevalent in the catchment than 9.7% in the region and 8.3% in England. Other postal services, which include Royal Mail activities, account for a quarter of all distribution jobs, well above the regional and national incidences of 18.6% and 17.2%. 13

14 Residents Occupation Profile Employment by Occupation Senior Managers & Officials 16,400 Professional Staff 37,150 Part-Qualified Professionals 28,200 Admin/Secretarial Occupations 18,000 Skilled Trades Occupations 13,550 Process & Plant/Machinery Jobs 4,900 Part Time Employees Part Time Employment 47,200 Total Employed Part Time 30.8% (South East 29.9%, England 29.5%) Part Time, yrs old 5,850 Part Time, yrs old 5,650 Part Time, above retirement age 6, % of all part time employees are under 25 years old compared to the regional rate of 17.3% and 17.7% nationally. By occupation, 10.6% of working residents are managers, company directors and senior level officials, mirroring the 10.4% national profile. Levels of professional employment are relatively high, whether in full or part qualified positions. Close to a quarter of residents are fully qualified professionals (24.2%) against just 20.7% in the South East and 19.2% nationally. 29.2% of professionals are involved in science, research, engineering and technology posts, well above the 26.4% English average. 18.3% of employees are semi-qualified professionals, again markedly above 15.8% in the region or 14.2% in England. Skilled trades account for 7.9% of employee jobs against 10.1% regionally and process, plant and machine operatives make up 3.2% of total compared to a regional 4.4%. Over 47,000 employees work on a part time basis. At 30.8%, the rate of part time employment stands around one percentage point above the South East and England. 14

15 Non-Working & Off Labour Market Groups Jobseekers Data (JSA) Unemployed (mid 2012) 2,550 males 1,850 females 700 Unemployed 20 to males 650 females 250 Unemployed 30 to males 300 females 150 Claimant Count Rate 1.3% (South East 2.7%, England 3.8%) The Hidden Labour Market Economically Inactive OWA 36,950 males 12,400 females 24, to 24 year olds 11, to 34 year olds 3,950 % Who State They Want Work 27.7% 2,500 residents per month were seeking work in the catchment at June 2012, 72.3% of these were male. The catchment s average claimant count rate of 1.3% is considerably below both regional and national rates. By far the largest group of jobseekers are those in their twenties, accounting for 36.2% of total against 31.8% in the South East. Outside of the traditional labour market, close to 47,000 people were classed as economically inactive during 2012, equivalent to 18.4% of the OWA population. A very large proportion of the group, 31.4%, were under 25. A very high proportion, equivalent to 27.7% all in the economically inactive group, state they would like to work given suitable employment opportunities. This provides a further potential labour pool of over 10,000 people available for immediate recruitment targeting. Often quoted obstacles to taking up work are poor access to childcare and inflexible hours. Employers addressing these issues will open up further choice from the local population. 15

16 A Well Trained & Skilled Workforce Workforce Training (2012) % OWA employees in training 28.9% males in training 31,000 females in training 27,050 Production Industries in training 49.3% Private Service Sector in training 25.9% Public Sector in training 48.9% Qualifications (2012) OWA Residents with NVQ Level 1 20,700 Out of work, % total OWA 3.7% OWA Residents with NVQ Level 2 37,200 Out of work, % total OWA 6.1% OWA Residents with NVQ Level 3 35,200 Out of work, % total OWA 4.4% OWA Residents with NVQ Level 4 76,100 Out of work, % total OWA 6.2% 40,850 OWA residents with NVQs are not currently in employment; 8,850 with Level 3 NVQs and 12,350 with Level 4 NVQs. Levels of participation in work related training are high among the catchment s employees. Over 58,000 residents benefitted from training during At 28.9% OWA, the training participation rate is well above 19.6% in the South East and over ten percentage points above 17.3% in England. Training activity in manufacturing and related jobs is more than double regional and national rates. 49.3% of employees in the production industries, including construction and distribution employment, had benefitted from training against 20.2% and 18.8% in the South East and England respectively. Over 169,000 residents hold NVQs. At 74.1% OWA, this is significantly above 68% in the South East and 10% above national average. Over 76,000 residents hold NVQs at level 4, broadly equivalent to a degree. At 38% of the OWA group, this is markedly above 35.2% in the region and above 31.7% in England. 16

17 Education Factors Educational Achievement (2012) Proportion of pupils gaining.. 5 or more GCSEs (A* - G grades) 96.3% (South East 95.9%, England 95.8%) 5 or more GCSEs (A* - C grades) 81.3% (South East 82.0%, England 83.2%) GCSE points score (capped) (South East 344.5, England 343.9) Average A Level score (South East 789.1, England 780.5) University Labour Pools (2012) University Undergraduates 78,100 overseas, % of total 13.7% University Postgraduates 22,800 overseas, % of total 40.6% Students by Subject of Study Engineering & Technology 10.2% IT (Computer Sciences) 3.9% Business Studies 16.1% All Science Studies 24.0% Schools results in the catchment show pupils gaining 5 or more A* to G graded GCSEs marginally outperforming those of the region and England. Average GCSE points scores are slightly below the regional and national pattern. A level scores outperform both larger area averages. Employers draw on a large pool of graduates from the area s seven universities including those immediately adjacent to the area. Over 100,000 students are enrolled at these universities, 40% of the regional total. 34,000 people graduate annually with one third of these at postgraduate level. 10.2% of students are enrolled on Engineering & Technology courses compared to just 6.1% throughout the South East and 6.3% across all English universities. Similarly, students enrolled on Business Studies courses make up 16.1% of total against 14% regionally and 14.3% across the entire country. 17

18 UK Comparison Costs Manufacturing salary rates in the recruitment catchment serving are extremely competitive. The rates below indicate typical achieved salaries in the area against a range of competing UK locations during The chart shows the area below national average cost for non-managerial shopfloor staff and at the lower end of all locations for both senior management and qualified shopfloor staff. The catchment is not only one of the lowest cost locations in the South of England but compares favourably against many large city locations across the country. 18

19 Further information available from Invest in Hampshire +44 (0) prepared without editorial influence East West Locations Limited 2013