Regional Profile Yorkshire

Regional Profile Yorkshire

Contents Summary Population Development of Industry Timeline for Economic Benefits Yorkshire & Humber as a pioneering low-carbon economy Research on potential employment and value in UK wind industry Future Employment at AHP Snapshot of Data on Some of Yorkshire s Cities and Towns: - Leeds - Sheffield - York - Hull - Bradford Conclusion

Summary Yorkshire has been named as one of the top places in the world to visit in 2014 in a new travel booklet and Lonely Planet put the area third in the top 10 world regions, behind destinations in India and Australia. The Yorkshire economy is showing clear signs of recovery and is now gathering real momentum. Different regions have distinct economic profiles, strengths and weaknesses and Yorkshire and the Humber is taking impressive strides to modernise its industrial base and build a knowledge economy. The aim is to produce a more dynamic environment in which greater numbers of businesses start up and survive. Through this, more jobs can be created, ensuring that a healthy economy spreads prosperity to all its citizens. In the past two decades the region has suffered from the decline of traditional industries with substantial job losses in coal mining, steel, engineering, textiles, rail administration and maintenance, and defence. These losses have been partly balanced by growth in financial, legal and telephone-based services, and the hightechnology sector is growing strongly. The region s towns, cities and rural communities are changing rapidly to meet the challenges ahead. Leeds is already recognised as an important financial service centre and is playing an increasingly key role in driving forward the sub-regional economy. The challenge is to establish more companies where competitive edge is based on knowledge, creativity and skills, producing high value added products and services. The region s universities are a major asset which must be built upon to enable its companies and people to compete effectively in today s knowledge economy. The current and future economic potential for Yorkshire is in areas such as port-centric economic development, off-shore wind turbine manufacturing and other renewable energy projects such as bio-fuel, anaerobic digestion, tidal power and carbon capture, etc.

Population The population of a county/region/sub-region is important because, in addition to the totals giving an indication of the total number of people living within a defined area, characteristics such as structure and distribution provide essential supply and demand-side information for policy development and planning. The population of Yorkshire and the Humber on census day (27 March 2011) was 5.3 million, an increase of 6 per cent from 4.9 million in 2001. By comparison the population across the whole of England and Wales increased by 7 per cent to 56.1 million, the largest growth in population in any 10-year period since census taking began in 1801.

Development of Industry in Yorkshire - Carbon Capture Storage Cluster The need to reduce carbon emissions is a global and a national priority, and the UK is committed to reducing carbon emissions by 80% of the 1990 levels by 2050. Yorkshire and the Humber is the best strategic location in Europe to establish a carbon capture and storage (CCS) cluster. The Yorkshire and the Humber CCS cluster (the CCS cluster ) represents a unique opportunity to develop, promote and sustain new low carbon technology, to further secure the energy and industrial requirements of the UK, and make a significant contribution to local, regional and national economic development. The CCS proposition for Yorkshire and Humber is that if industry develops and sustains the large-scale infrastructure to transport and store CO2 deep under the North Sea, then the impact on industrial development for the region will be significant. Establishing the CCS cluster will also deliver a number of further benefits that drive the development of the local economy. This will take place close to areas that have been affected in recent generations by deindustrialisation, and suffered the departure of high-skilled and high-paid jobs. The development of the CCS core infrastructure will help ensure that there is a future stream of high quality work for a skilled workforce for many years to come, along with the potential to export knowhow derived from the projects. The presence of a significant and advanced supply chain within the region will include some 280 companies and up to 24,000 employees.

Timeline for Economic Benefits Short term (2014-2020) Direct and indirect benefits: Construction-Operation Phase (2012 2019) a maximum of 5,902 jobs per year. Operational phase (2019 2030+): up to 400 net additional jobs per year. Wider economic benefits: These benefits will be felt throughout the Yorkshire and Humber supply chain, initially for services within construction and the technology and specialist supply chain associated with the CCS capital equipment required. The development of the Yorkshire and Humber CCS cluster could have a hugely positive impact on the local, regional and national economy, whilst demonstrating how CCS can be commercialised and deployed at scale. This would secure regional jobs.

Yorkshire & Humber as a pioneering lowcarbon economy The government expects the low-carbon and the environmental sector to grow by 45 billion, totalling 150 billion by 2015 and employing 1.3 million, an increase of 400,000 from 2009. This presents huge opportunities for the regional economy. Addressing the prospect of irreversible climate change is perhaps the most significant economic, social and environmental challenge that confronts the world. The consequences of failing to take the required action cannot be understated. Food and water shortages, rising sea levels and economic crises are just some of the implications, should Governments fail to act decisively because ignoring climate change will eventually damage economic growth, creating risks of major disruption to economic and social activity. To quote Winston Churchill: A politician needs the ability to foretell what is going to happen tomorrow, next week, next month and next year. And to have the ability afterwards to explain why it did not happen. Thus Yorkshire & Humber has the potential to transform itself from what was a heavily industrialised and energy-intensive economy to a world leader in clean energy and environmental technologies.

Research on potential employment and value in offshore wind/uk wind industry Currently, the UK wind industry employs 10,600 people with numbers expected to rise to 88,300 by 2021. Also, a study published by the Centre for Economics and Business Research (CEBR, 2012) suggests that: the UK offshore wind industry is set to create almost 100,000 new jobs by the end of the decade; it estimates that the offshore wind industry will have created 45,000 jobs across the UK by 2015, rising to 97,000 by 2020; and by 2030 the figure will be 173,000 jobs. Siemens - Hull Siemens has already agreed to open an 800-workforce factory in Hull and according to Parsons Brinckerhoff (2012) 3,000-7,600 jobs would rapidly arrive into the Humber-Sub Region from around 2014/15, but only in assembly and manufacture. Moreover, from a 2020 perspective The Prospects for Green Jobs to 2020 report forecasts three scenarios as follows: Low: 5,400; Most Likely: 11,500; High: 16,000. The economic projections and job prospects are estimated based on estimated/possible local content (UK and Humber/Yorkshire regions) as percentages of the different cost elements of four wind farms - (Humber Gateway, Westermost Rough, Hornsea, Dogger Bank) they are offshore of the Humber estuary and are expected to produce 13,459 17,259 MW of renewable energy. Several reports (E.on, Dong, DECC) have estimated that altogether there could be 15,000 jobs created in the Humber region. Skill requirements and therefore job opportunities in offshore wind industry vary greatly, from skilled craft people to scientists, pilots, managers and/or technicians. It is important to note that jobs associated with manufacturing of turbines and balance of plants can be sustainable only when a strong cluster of manufacturers and suppliers is built within the region. The operations and maintenance jobs are expected to stay beyond 2020. While there are some strengths and opportunities, the lack of skills and investment are among the critical weaknesses to be addressed.

Future Employment at AHP Able Humber Port s (AHP) proposed port expansion on the south side of the Humber River includes a combined logistics and Business Park as well as the development of a new marine energy park to house the offshore wind industry. The logistics and Business Park is expected to feature: Warehousing; Storage and distribution Chilled and frozen logistics Data centre (s); Document storage Commodities storage and distribution New location vehicle storage Supporting services including a hotel and an HGV park AHP estimate that by 2020, the logistics and business parks will have created 3,000 jobs. Skills for Logistics (2009) predict a workforce increase in the logistics sector of 1,000 workers by 2017 in the Yorkshire and Humber region.

Snapshot of Data of Some of Yorkshire s Cities and Towns Leeds Leeds is the location of one of the largest financial centres in the United Kingdom outside London, around a quarter of a million people are employed in the financial and professional sector in the Leeds City Region with an output valued at 13 billion per year. The LCR economy is forecast to grow by 23% in GVA terms over the next decade. Employment is also forecast to grow by 10% over the same period. Sheffield Sheffield will require 149,700 new employees by 2020, either into new jobs or (mainly) as replacements for retiring workers and this will have implications for company training and recruitment plans. The sectors in which the largest volume of recruitment is expected include Business Services, followed by other services and transport, all of which are expected to recruit over 18,500 employees by 2020. Both construction and health will also require over 14,500 recruits, with the majority of demand in health occurring post 2015.

Snapshot of Data of Some of Yorkshire s Cities and Towns Hull City of Culture 2017 will bring thousands of jobs In June 2013, it was announced that Hull had made it to the short list of places vying for UK City of Culture 2017, along with Dundee, Leicester and Swansea Bay. On 20 November 2013, it was announced that Hull had won the UK City of Culture award. Hull is therefore on the cusp of social and economic change as this award is worth an estimated 60m to the city, the coveted title will help deliver the 190m ten-year City Plan outlined by Hull City Council to create 7,500 jobs. Start of the Future for Hull Hull currently has a city plan to be the UK s leading energy port city. Hull has had an increase in the past 10 years of the working age population median age is 35.2 years. Investors are now planning developments for 2017 which will create jobs. Census: Hull s population reaches 20-year high The main increase is the number of working age people between 20 and 64 in Hull, which is up by 17,436. The increase in the past ten years of the working age population shows people value Hull as a place to live.

Snapshot of Data of Some of Yorkshire s Cities and Towns York Overall employment rates are above average, but lower in some places, such as coastal towns and parts of Selby and York. Rural isolation and other barriers can make access to work difficult. Generally qualification levels across most of York, North Yorkshire and East Riding are above national average at NVQ 1-3. A third of residents have NVQ level 4 (degree equivalent), less than 1 in 10 have no qualifications. However, York lacks relatively few large employers and employability skills can be lacking in some areas. Replacing skills lost as older workers retire is an issue, especially for manufacturing and engineering. Bradford Bradford is a Producer City. There are 1300 manufacturing businesses in Bradford employing 24,700 people, accounting for 12.8% of all employees, compared to 9.8% in Great Britain as a whole. Bradford has 2,400 textile manufacturing jobs and a further 9,400 jobs in textile and clothing related industries such as chemicals, distribution and retail. Bradford has a growing population of 522,500 and is the youngest major city in the UK with 22.6% of the population under 16 years of age. The work age population is increasing by 1,700 every year. Also Bradford University has been named as the number one university for graduate-level employment in Yorkshire and is in the top 20 nationally, as listed by the Sunday Times University Guide 2013.

Conclusion Yorkshire needs to overcome skill shortages by establishing, consolidating and providing training in offshore installation, O&M and marine services as well as manufacturing. Even though at present there is some training available (marine related training), there is a need to strengthen training provisions in engineering, manufacturing, supply chain, logistics, and complex project management. Today, national and global demographic changes are a potential catalyst for a long-term systemic imbalance. The consequences of a shortage of a skilled workforce will mean higher wage-push inflation and potential decreases in international competitiveness, and even the erosion of future domestic production capacity. Three primary factors have been identified as the reasons for a pending systemic shortage: demographic changes, changing labour force participation patterns, and the need for productivity increases. These three factors are important signals that business must track in order to determine the ultimate size and depth of a systemic shortage. Therefore, industries, schools, colleges and universities in Yorkshire need to consider methods to develop and attract students to train and become successfully skilful in a trade in order to accommodate the current huge deficit of skilled workers not only in Yorkshire but in the whole of the UK. Yorkshire and the Humber is the best strategic location in Europe for leading industries but now is the time for companies to get more involved with recruitment agencies, as skill shortages is a problem that is going to require a long-term process and companies cannot rely on someone else sorting out the problem it is a matter which must be addressed collectively PMP Recruitment offer expert advice and are readily available to assist in all matters of recruitment.

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