North Hampshire / M3 Corridor

Transcription

1 / M3 Corridor Manufacturing and Distribution Employment 2013 East West Locations

2 Executive A Growing Population with a Highly Skilled Workforce Over half a million people live within a 35 minute peak time Journey To Work Area serving. In contrast to a forecast decline among those of working age in the South East and England, the catchment s working age population is forecast to grow by 1.1% to s catchment provides a young workforce with employees aged between 16 and 24 accounting for 15.9% of total against 12.6% in the South East and 12.4% nationally. Manufacturing employment accounts for 11.6% of all jobs, 2% above the region and remaining higher than the national average of 10.8%. A high proportion of these jobs are found in highly skilled manufacturing activities, in part due to the area s long historic involvement in aerospace and defence, including the production of electronics, computers and components, precision optical instruments and electrical equipment. 2

3 Distribution related activity is focused on warehousing and storage, reflecting the catchment s proximity to two of the UK s busiest freight handling locations, Heathrow Airport and Southampton Docks. The catchment is home to a skilled workforce with a considerably higher proportion of both fully qualified and semi-qualified professionals than reported regionally and nationally. Levels of work related training across a broad range of activities are also higher in the area than in the South East and England as a whole. Close to 70% of working age residents hold an NVQ, again above average in the region or nationally. 36.5% hold NVQ4, similar to a degree, compared to 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 in are competitive against competing locations in the region. Major companies include.. ATC Ltd BAE Systems Balfour Beatty Boeing Defence GE Energy Mars Drinks Shire Pharmaceuticals Group plc Steris Corporation Weston Aerospace WSP Group plc 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 across a range of manufacturing positions in s central area travel from unless otherwise stated. The JTWA takes account of travel to work methods, competing employment locations and transport conditions in the area. 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 Area - Manufacturing Jobs Average Journey To Work Area (JTWA) during Peak Commuting Periods 5

6 The Location Average Travel Times: Road Rail Birmingham 2 hrs 20 2 hrs Bristol 1 hr 40 1 hr 40 Cardiff 2 hrs 20 2 hrs 5 Central London 1 hr mins Manchester 3 hrs 50 3 hrs 50 Milton Keynes 1 hr 30 2 hrs 20 Nottingham 2 hrs 50 3 hrs 35 Oxford 1 hr 5 50 mins Swindon 1 hr mins Gatwick Airport 1 hr 1 hr 20 Heathrow Airport 45 mins 1 hr 30 Rail travel times are from Basingstoke station 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 A Large and Growing Population.. Overall Demographics (mid 2011) Catchment Population 531,100 male 264,200 female 266,900 Working Age Population (16-64) 345,000 male 173,450 female 171,550 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) +3,900 Growth, % of Current Population +1.1% (South East -0.5%, England -0.3%) Over half a million people live in a 35 minute Journey To Work Area serving employers located in. Catchments similar in scale include Kingston upon Thames (523,000 people) and Swansea (530,600). The catchment contains 345,000 residents of working age (OWA). At 65% of total, this is above the average of 63.6% in the South East and remains above 64.7% in England. The overall population has increased by 7.2% since The catchment has also experienced a growth of almost 5% among those OWA over the same time period. Looking forward, as more 5 to 14 year olds replace those retiring, the working age group is forecast to increase by almost 4,000 people over the coming decade. This growth contrasts the forecast decline in the working age population scales of both the South East and England up to to 14 year olds make up 12.2% of the catchment s total resident population, above 11.6% regionally and 11.4% in England. 8

9 ..with a Broad Age Profile 16 to 19 Year Olds Total Residents, 16 to 19 26,200 males 13,950 females 12, to 29 Year Olds Total Residents, 20 to 29 62,750 males 32,250 females 30, to 39 Year Olds Total Residents, 30 to 39 74,550 males 36,950 females 37, to 39 yrs, % of Working Age 39.8% 40 to 49 Year Olds Total Residents, 40 to 49 84,100 males 41,650 females 42,450 Those Approaching Retirement 55 to 64 Year Olds 60,800 The age profile of the working age group shows a quarter of residents under 30 years old. At 25.8% OWA, this is below the South East average of 27% and 28.9% nationally. However, residents in their thirties account for 21.6% OWA, one percentage point above 20.3% in the region and the national pattern of 20.5%. In total, those aged between 20 and 39 years make up 39.8% OWA as in the wider South East area. The largest group of residents are those in their forties. This group makes up 24.4% of the working age total, again one per cent above the regional profile of 23.6% but two per cent above the national profile of 22.6%. Those within the last ten years of their official working life account for 17.6% OWA. This incidence is below 18.7% reported throughout the region as a whole and just below 18% nationally. 9

10 A Young Workforce Profile Employment Data (mid 2012) Overall Employees 269,600 males 143,500 females 126,100 Employees of Working Age 259,550 males 137,800 females 121,750 Young Employed, 16 to 24 yr olds 42,900 males 21,250 females 21,650 Employed, 25 to 34 yr olds 55,100 males 30,450 females 24,650 Silver Employees, retirement age+ 10,000 % of Employees 3.7% (South East 3.6%, England 3.1%) % Working Part Time 86.8% Close to 270,000 people living in the recruitment catchment were in work at June Males formed a majority of 53.2%. Working age employees numbered 259,500 with the same gender balance as the overall workforce. In contrast to the general demographic profile, the workforce of the area is relatively young. 16 to 24 year old employees made up 15.9% of total, significantly above 12.6% in the South East and a national average of 12.4%. Females accounted for 50.5% of employees in this age group due to a very high proportion among 16 to 19 year old employees in particular, where they account for 58% of all in work. A further 20.4% of those in work were aged between 25 and 34, slightly below the regional pattern of 20.7%. People working beyond official retirement age accounted for 3.7% of total, close to the South East average and above England s 3.1% rate. Over four fifths of this group work on a part time basis, well above 69% in both the South East and nationally. 10

11 General Employment Profile Employment by Sector Private Service Sector Employees 141,250 males 80,150 females 61,100 of which Manufacturing Employees 31,300 males 22,950 females 8,350 Financial & Business Services 56,200 males 31,600 females 24,600 Other Private Sector Employees 53,750 males 25,600 females 28,150 of which Logistics (incl. Wholesale) 20,200 males 14,000 females 6,200 Public Sector Employees 72,750 males 18,050 females 54,700 Over half of the catchment s workforce are employed by private service sector firms. At 52.4% of total, this stands considerably above 50.3% in the South East and 49.5% nationally. Manufacturing employment accounts for 11.6% of total, 2% above the region and remaining higher than the national average of 10.8%. 73.3% of those employed in manufacturing activities are male. One in five jobs are in other private sector firms, including retail, distribution, telecommunications and private healthcare and education. At 19.9%, this rate falls below 22.1% regionally and 20.4% nationally. 20,200 of those employed in other private sector jobs work in the logistics industry forming 7.5% of total, broadly mirroring 7.3% in the region and 7.8% in England. Public sector employment is relatively low among the catchment s residents, 27% against 29.9% in the South East and 29.5% nationally. Three quarters of public sector employees are women due to their dominance in healthcare and education activities. 11

12 Manufacturing Employment Profile Manufacturing Jobs (mid 2012) Total Manufacturing Employment 31,300 of which Food & Drinks Industry 2,300 Chemicals & Pharmaceuticals 2,000 Manufacture of Metals & Products 1,900 Machine Manufacture and 10,450 Engineering Rubber & Plastic Products 1,600 Other Manufacturing 13,050 Manufacturing employment is relatively high in s recruitment area. It accounts for 11.6% of all jobs against 9.6% in the region and the English incidence of 10.8%. By far the largest proportion of manufacturing jobs, 10,450 in total, are in machine manufacture and engineering activities. These account for one third of manufacturing employment compared to 28.8% nationally. Generally, more positions in machinery manufacture involve the higher end of the skills and value chain than in other more process-oriented manufacturing activities. A quarter of these types of manufacturing jobs occur in electronics, computer and components manufacture and precision optical products. A further one in five jobs involve the manufacture of electrical equipment and at 43.6%, over two fifths are in firms manufacturing industrial machinery. Automotive and transport manufacturing make up only 13.3% of jobs in machine manufacture and engineering in the area. 12

13 Distribution Activity Distribution Jobs (mid 2012) Total Distribution Employment 5,100 males 3,800 females 1,300 of which.. Road Freight 800 Warehousing & Storage 1,850 Warehouse & Transport Support 800 Light Courier & Delivery Activities 550 Postal Services (incl. Royal Mail) 1,050 Distribution activity provides jobs for 1.9% of employed residents. This falls well below both the regional rate of 2.9% and 3.5% nationally. The largest employment activity is general warehousing and storage, accounting for 36.6% of all distribution sector jobs against just 21.7% in the South East and only 24% across England as a whole. This pattern reflects the area s proximity to two of the UK s busiest freight locations at Heathrow Airport and Southampton Docks, and the importance of the motorway network in distributing goods to the large populations of London and the South East. At 10.8% of all distribution jobs, light courier and other delivery activities are more prevalent in the catchment than 9.7% in the region and 8.3% in England. Other postal services (not shown on the chart but including Royal Mail) account for over 1,000 jobs, 20.7% of distribution sector employment and above both regional and national rates. 13

14 Residents Occupation Profile Employment by Occupation Senior Managers & Officials 31,900 Professional Staff 56,900 Part-Qualified Professionals 50,700 Admin/Secretarial Occupations 30,850 Skilled Trades Occupations 22,150 Process & Plant/Machinery Jobs 10,100 Part Time Employees Part Time Employment 75,400 Total Employed Part Time 28.0% (South East 27.9%, England 27.0%) Part Time, yrs old 8,350 Part Time, yrs old 9,050 Part Time, above retirement age 8, % of part time employees are under 25 years old compared to 17.3% regionally and 17.7% in England. By occupation, 11.7% of the catchment s employees are managers, company directors and senior level officials, a profile that matches the regional incidence of 11.6% but is above 10.4% in England as a whole. Over a fifth of residents are fully qualified professionals. At 21.1%, this stands slightly above 20.7% for the South East region but two per cent above 19.2% nationally. A noteworthy 36.6% of professionals are involved in science, research, engineering and technology activities against only 31.4% in the region and an English average ten per cent lower at 26.4%. 18.6% of employees work in semi-qualified professional positions, well above 15.8% in the region or 14.2% in England s workforce profile. Skilled trades occupations account for 8.5% of employees against 10.1% regionally and process, plant and machine operatives make up 3.7% of total compared to a regional 4.4%. Over 75,000 employees work in part time positions. At 28%, the part time employment rate closely matches the South East. 14

15 Non-Working & Off Labour Market Groups Jobseekers Data (JSA) Unemployed (mid 2012) 6,100 males 4,050 females 2,050 Unemployed 20 to 29 1,950 males 1,350 females 600 Unemployed 30 to 39 1,200 males 750 females 450 Claimant Count Rate 1.8% (South East 2.7%, England 3.8%) The Hidden Labour Market Economically Inactive OWA 59,600 males 19,050 females 40, to 24 year olds 13, to 34 year olds 7,100 % Who State They Want Work 21.0% An average of 6,000 people per month were registered seeking work in the catchment in the year to June % were male. The jobseekers pool is relatively young. Close to a third of those seeking work were in their twenties and one in five were in their thirties. The catchment s average claimant count rate remained below both the region and England. A further potential recruitment group to those in and seeking work are the 59,600 people classed as economically inactive. These make up 17.3% of the OWA population. At 26.5% a large proportion of this group are under 25 years old. Moreover, 21% of the economically inactive have stated a preference to work given suitable employment opportunities. This provides a potential recruitment pool of some 12,500 people. Often quoted obstacles to taking up work are poor access to childcare and inflexible hours. Employers addressing these issues will open up further choice of candidates from the local population. 15

16 A Well Trained & Skilled Workforce Workforce Training (2012) % OWA employees in training 23.8% males in training 42,900 females in training 39,200 Production Industries in training 25.6% Private Service Sector in training 28.0% Public Sector in training 45.5% Qualifications (2012) OWA Residents with NVQ Level 1 44,100 Out of work, % total OWA 3.7% OWA Residents with NVQ Level 2 59,700 Out of work, % total OWA 4.6% OWA Residents with NVQ Level 3 55,300 Out of work, % total OWA 2.9% OWA Residents with NVQ Level 4 125,850 Out of work, % total OWA 4.4% The area s workforce is well trained and possesses modern work related skills. Over 82,000 residents benefitted from work related training during At 23.8% OWA, the catchment's training participation rate is significantly above 19.6% in the South East and 17.3% in England. Training rates were high across all types of employment. 25.6% of those working in production industries were involved in training for example, against 20.2% in the region and only 18.8% nationally. 285,000 residents possess an NVQ. At 69.8% OWA, this is above the regional average (68%) and well ahead of the 64.1% national average. Over 125,000 residents hold a Level 4 NVQ, broadly equivalent to a degree. At 36.5% of the OWA group this profile is almost five percentage points above 31.7% in England. Importantly for recruitment, 54,000 OWA residents holding NVQs are not currently working of which 10,100 hold NVQ3 and 15,100 hold NVQ4 level qualifications. 16

17 Education Factors Educational Achievement (2012) Proportion of pupils gaining.. 5 or more GCSEs (A* - G grades) 96.0% (South East 95.9%, England 95.8%) 5 or more GCSEs (A* - C grades) 80.8% (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 similar to both the region and England whilst the proportion of those gaining 5 or more A* to C grades falls just below. Average GCSE points scores are slightly above the regional and national pattern. A level scores fall against the region but outperform the national average. 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% and 14.3% in the region and 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