Symmetry Park, Biggleswade Local Workforce Analysis

Transcription

1 Symmetry Park, Biggleswade Local Workforce Analysis Regeneris Consulting November 2017

2 Headlines Based on the analysis within this report, the workforce living locally to Symmetry Park Biggleswade has the following characteristics: Dynamic: A young, active population with appropriate skills. There are c. 109,700 residents with qualifications which are typically sought by the logistics sector. Lower Cost: An available workforce at a lower cost than other competitor locations. We estimate the annual cost of a workforce of 1,300-1,800 people for Symmetry Park, to be around million cheaper than the equivalent workforce in Bedford, and around million cheaper than Milton Keynes. Mobile: A local logistics workforce that currently has to travel long distances to work. Around 70% of residents employed in transport and logistics locally travel up to 40km to work. Growing: Housing growth to support a growing working age population. By 2035, Biggleswade s immediate local workforce could increase by c. 4,000 additional working age residents. Focussed: Less competition for labour compared to other locations. Research of the top-10 employers in Biggleswade shows that there are no major firms currently trading in logistics within its catchment.

3 Background & Scope of Report db symmetry is looking to attract occupiers to locate at Symmetry Park Biggleswade, a recently-acquired site located off the A1. The site extends to 50 acres and benefits from outline consent for B1, B2 and B8 uses. Symmetry Park is located 600 metres from the A1, which can be reached via a newly reconfigured junction. Symmetry Park is a 30-minute drive from J23 of the M25. This development provides a once-in-a-generation opportunity for the development of a dynamic, sustainable, and premium site with potential to generate significant economic and employment benefits in Biggleswade and its surrounding area. Symmetry Park offers design-and-build opportunities ranging from 70,000 sq. ft. to 1 million sq. ft. and has potential to support between 1,300 and 1,800 jobs. Regeneris Consulting was commissioned by db symmetry to undertake research into the current and future workforce, establishing the comparative advantages of that workforce in Symmetry Park Biggleswade s catchment area. Regeneris is a specialist economic development and regeneration consultancy, with over 30 members of staff providing high quality economic research to both public and private sector clients across the United Kingdom.

4 Site Context

5 Profiling the Logistics & Distribution Sector Whilst a modern logistics fulfilment centre provides a diverse mix of jobs, to understand the appropriateness of the local workforce we have used existing industry information to profile the typical individual who might be employed by a successful logistics business. The following analysis is based on current logistics and distribution job listings, as well as sector-based research on skills requirements for the sector. Our profile of the workforce generally is as follows: Age of workforce 55% of workforce in logistics is aged under 45. Its ability to attract a younger workforce will become more important as nationally the sector is expected to require 1.2 million additional workers by Qualifications held by workforce A large proportion of workforce in logistics has up to NVQ levels 1 and 2 qualifications (ie. 1-4 and 5+ GCSEs) and apprenticeships. Skills of workforce Logistics is moving towards a high-skills business model. However, low level skills (incl. knowledge of warehouse management systems, problem solving, numeracy and literacy and communication skills) remain important. Salaries of workforce Salaries for jobs in logistics and distribution vary by location, role and experience. Based on current listings in Biggleswade, (gross) weekly salaries for warehouse operatives are around 325.

6 Our Approach To identify the catchment area for Biggleswade s workforce we have assumed that the average worker will travel around 30 minutes to work (based on latest travel to work data). We have used the TravelTime Platform developed by igeolise, which allows us to select a starting location (in this case Symmetry Park, Biggleswade), start time and mode of transport to complete a journey. This gives us a clear catchment area (see right). Indicators Used To look at the appropriateness of the workforce within the Biggleswade catchment we have used the following national statistics: participation in the labour market occupations skills and qualifications population age unemployment & job seekers profile salary percentage of people who live and work in the same area The assessment presented below draws on the latest official datasets (from the Office for National Statistics) for each relevant catchment. This includes data from the latest Census of Population (2011), Annual Population Survey (2017), Population Estimates (2016), Annual Survey of Hours and Earnings (2017), Central Bedfordshire s Local Plan and other desk-based research.

7 Evidence & Analysis

8 The Biggleswade Employment Catchment A young, active population with appropriate skills Age of Workforce: 339,100 people aged (or 2-in-3 of total population in catchment) Workforce Skills: 66,100 people in relevant occupations (or 1-in-5 of all working age residents) Qualifications: 109,700 residents with qualifications often sought by sector (1-in-3 residents) Economic Activity: over 4-in-5 residents are engaged, and an unemployment rate of 3.4% Workforce Skills There are 66,100 people living within Biggleswade s catchment who work in occupations relevant to the logistics and distribution sector. This accounts for 1-in-5 of all working age residents. Workforce Qualifications Around 87,800 people in Biggleswade s catchment are qualified to GCSE Level. There are a further 21,900 people with other relevant qualifications (eg. apprenticeships). In total, there are c. 109,700 residents with qualifications which are typically sought by the sector. This represents 1-in-3 of working age residents.

9 The Biggleswade Employment Catchment An available workforce at a lower cost than other areas Economic Activity & Unemployment There are 279,700 people who are economically active within Biggleswade s employment catchment. This translates to more than 4-in-5 working age residents. Overall unemployment rate is 3.4% with c. 4,800 people registered as unemployed and looking for work. Cost of Labour Current local job listings show the average (gross) weekly salary for a warehouse operative to be 325 (accessed 04/10/17). This falls within the 15 th percentile for salaries in Central Bedfordshire based on Annual Survey of Hours and Earnings (ASHE) data. This is lower than the equivalent in the East of England ( 334) and nationally ( 338). Median weekly (gross) salaries (from ASHE) for jobs in Central Bedfordshire ( 487) are lower than regional ( 529) and national ( 544) medians as well. Age Profile of Workforce Biggleswade s catchment is home to 339,100 people aged 16 to 64, representing c. 2-in-3 of the area s total population. In addition, around 3-in-5 working age residents (or 200,500 people) are aged under 45. Future Workforce Growth The Central Bedfordshire (draft) Local Plan for , identifies the need for between 19,500 and 31,800 homes. This is expected to have considerable impact on the area s population, which could increase by 48,000-78,600 by The working age population is estimated to increase by 29,100-47,700 people, (or between 17% and 27%).

10 Containment of the Labour Market Local residents working in the sector currently have to travel further to work 70% of residents employed in transport & storage travel up to 40 km to work 66% of residents employed in transport & storage travel up to 30 km to work 58% of residents employed in transport & storage travel up to 20 km to work The last Census showed that around 70% of residents employed in transport and logistics locally travel up to 40km to work. This gives Central Bedfordshire a low containment rate (ie. % who live and work in the same area) compared to Bedford and Milton Keynes. Central Bedfordshire Bedford Milton Keynes up to 10 km 35% 51% 56% up to 20 km 58% 62% 62% up to 30 km 66% 71% 68% Source: Office for National Statistics, Census of Population % of residents employed in transport & storage travel up to 10 km to work It is reasonable to assume that residents working in the sector would prefer to work at a site closer to home.

11 Housing Growth in Biggleswade Housing growth in the area will support a bigger working population The (draft) Central Bedfordshire Local Plan outlines how the area could see considerable growth (both in terms of housing and employment land) over the plan period to The Plan identifies the area east of Biggleswade (number 3 on the diagram to the left) to have potential for around 3,000 new dwellings by It is estimated that as a result of this growth, Biggleswade s total population could increase by c. 6,900 people by It is, in turn, estimated that around 2-in-3 people would be of working age (16-64). This means that by 2035, Biggleswade s immediate local workforce could increase by c. 4,000 additional working age residents. Source: Central Bedfordshire Local Plan (Draft Plan July 2017)

12 Cost of Labour Market Significant savings on salary costs vs Milton Keynes and Bedford Listings for jobs in logistics within the Biggleswade catchment give an average (gross) weekly salary of 325. When compared with other (competitor) locations in the region (eg. Bedford & Milton Keynes), Central Bedfordshire clearly has lower relative wages. The table below shows the equivalent (gross) weekly salary in Bedford and Milton Keynes to be 339 and 382 respectively. Central Bedfordshire Bedford Milton Keynes Assumed no. of jobs (at Symmetry Park) Weekly (gross) salary 15 th percentile Assumed annual wage bill ( million) Difference vs C. Beds ( million per annum) 1,300-1,800 1,300-1,800 1,300-1, Source: Based on (gross) weekly salary data from the ONS s Annual Survey of Hours and Earnings, 2017 To put this into perspective, we estimate the annual cost of a workforce of 1,300-1,800 people for Symmetry Park, to be around million cheaper than the equivalent workforce in Bedford, and around million cheaper than Milton Keynes.

13 Demand for Skills in Logistics Less competition from other sectors compared to other areas The Logistics Employer Skills Survey (published by Skills for Logistics, 2014) reports that many firms nationally employ staff members who are not fully proficient in their role, with at least a third reporting skills gaps. Taking into account future growth, the age of the workforce, competition from other sectors and trends in automation, Working Futures (2014) indicate that by 2024 around 25,300 people in the South East Midlands Local Enterprise Partnership (SEM LEP) area will need to be trained (and skilled) in transport and storage. This suggests that competition for skilled labour in Milton Keynes is stronger than elsewhere in the region. In addition, Milton Keynes has pressure from a range of other sectors, which constrain availability and increase labour costs. The top employers in logistics and distribution in Biggleswade include: 1. Turpin Distribution Services Ltd Andersons Transport Services Ltd n/a Desk-based research of the top-10 employers in Biggleswade shows that there are no major firms operating logistics warehouses within its catchment (hence the high commuting rates). A similar exercise for Milton Keynes shows a number of major logistics businesses locally.

14 Demand for Skills in Logistics (continued) The following are the top 10 employers in logistics and distribution in Milton Keynes and Bedford respectively Top Employers in Logistics in Milton Keynes (estimated no of jobs): 1. John Lewis (national distribution centre) 1, Kuehne+Nagel Drinks Logistics Ltd 1, Yusen Logistics (UK) Ltd 1, IKEA Distribution Services Ltd Waitrose Amazon fulfilment centre Ingram Micro (UK) Ltd River Island wholesale Tesco Distribution Coca Cola 200 Top Employers in Logistics in Bedford (estimated no of jobs): 1. Argos Distribution Centre Movianto Sainsbury s Distribution Ark H Handling ASDA Distribution centre n/a

15 Summary of Findings Biggleswade s catchment is home to 339,100 people aged 16-64, representing 2-in-3 of its total population Over half (c. 60%) of these people are aged under 45 There are 279,700 people who are economically active in the catchment At present 4,800 people are registered as unemployed and looking for work within the catchment The Biggleswade catchment has 109,700 residents with qualifications sought by the logistics sector. This represents 1-in-3 of its working age population There are 66,100 people in occupations relevant to logistics Current listings for employment in logistics within Biggleswade s catchment indicate an average weekly (gross) salary of 325. Compared to other locations, such as Bedford ( 339) and Milton Keynes ( 382) Biggleswade offers a more affordable workforce A workforce of 1,300-1,800 people in Symmetry Park Biggleswade has potential to be around million cheaper than the equivalent workforce in Milton Keynes Central Bedfordshire is expected to see 19,500-31,800 new homes built by Around 3,000 new homes are earmarked to be built east of Biggleswade, increasing the catchment s working age population (16-64) by 4,000 people by 2035 The South East Midlands Local Enterprise Partnership (SEM LEP) is expected to see demand for c. 25,300 additional jobs in logistics by As no major logistics employers are located within the Biggleswade catchment, it is reasonable to assume that competition for labour will be less intense than in locations (such as Milton Keynes).

16 London Manchester