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BCU DISCUSSION PAPER November 2014 Assessing the Secondary Economic Impact of Manufacturing in the Midlands

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Page 1: Assessing the Secondary Economic Impact of …...6 Assessing the Secondary Economic Impact of Manufacturing in the Midlands-15 -10 -5 0 5 10 15 20 25 30 0 20 40 60 80 100 120 1950

BCU DISCUSSION PAPER

November 2014

Assessing the Secondary Economic Impact of Manufacturing in the Midlands

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Production 38%

Logistics 18%

Services 21%

Societal 23%

Agriculture 1%

Manufacturing 15%

Electcrity & Gas 2%

Water & Sewerage 1%

Construction 7%

ManuServices 12%

Wholesale & Retail 9%

Transportation 4%

Accommodation & Food 2%

IT 3%

Finance 5%

Real Estate 10%

Professional 2%

Administrative 4%

Public 5%

Education 7%

Health & Social 8%

Arts 1%

Other Services 2%

Midlands Output Structure, 2011

Source: ONS and WMEF

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November 2014 3

Foreword from Professor Cliff Allan, Vice Chancellor, Birmingham City University 4

1. Overview 5

2. Background 5

3. Outsourcing 8

4. Servitisation 9

5. Secondary Impact of Manufacturing 12

Appendix 1: Secondary Impact of Manufacturing & Production Sectors 14

Birmingham City University: Corporate Engagement 16

Contents

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4 Assessing the Secondary Economic Impact of Manufacturing in the Midlands

Foreword from Professor Cliff Allan, Vice Chancellor, Birmingham City University

Birmingham City University plays an important role in the economic, cultural and social life of

Birmingham and the Midlands – with 70% of our 23,000 students remaining here following

graduation.

Like others in our sector, we are fully cognisant of our responsibility to prepare our students for

successful careers in a demanding job market. Located at the heart of Birmingham with its long

tradition as the City of a thousand trades and surrounded by our rich manufacturing hinterland

across the Midlands, we are working to provide our regional economy with the talent, skills,

knowledge and applied research needed to drive future growth.

We continue to support many manufacturing companies through the dedicated professionalism of

our staff and enthusiastic engagement of our students. This ongoing dialogue has been facilitated by

our BCU think and do tank, Idea Birmingham, which, through numerous collaborations, seminars,

showcases and surveys, has been seeking to gain much greater insights into the competitive needs

of leading Midlands brands including – Jaguar Land Rover, GKN, Rolls-Royce, JCB, Aston Martin,

Triumph Motorcycles, AGA Rangemaster, Pashley Cycles, Brooks England Saddles, Hille, Emma

Bridgewater, WB the Creative Jewellery Group and J Hudson & Co Acme Whistles, to name a few.

Through projects with these and other businesses, it has grown ever more apparent to us, that the

manufacturing economy has become increasingly distributed with a growing requirement for inputs

from a complex supply chain, including many aspects of the creative, design, digital and cultural

economy. This has led us, like many in industry, to question the basis of how we measure the

manufacturing economy, how we speak about it, provide skills and talent to meet this sectors’

needs, as well as how we can best play our part in ensuring it has greater support from the regional

ecosystems gaining an increasing prominence in nurturing competitiveness within these businesses

and their supply chains, so vital to our continued sustainable economic well-being.

Professor Cliff Allan Vice ChancellorBirmingham City University

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November 2014 5

The interaction between the manufacturing, production and services sector seems to have been

overlooked by both commentators and policy-makers. Yet a cursory examination reveals a dynamic

and productive relationship. As the economy rebalances, the potential that this relationship offers,

especially in terms of enhanced value-added input, is significant and indeed already seems

considerable. The purpose of this discussion paper is to suggest a method to quantify this

interaction and provide an alternative approach to benchmarking the economy. Although more

research is required, it is estimated that the wider impact of the manufacturing is in the region of

38% of GVA, and could be as high as 53%, whilst the overall production sector impact is close to 41%

of the economy and perhaps as great at 58%. Whilst further research is likely to refine this data, the

case remains that the services sectors dependent on manufacturing demand is a key component of

the economy and driver of future economic growth.

Prior to the Financial Crisis of 2007-08, there was an apparent widespread perception that

manufacturing was locked into irreversible long-term terminal decline, in marked contrast to the

financial services sector which seemingly offered the potential for limitless growth. Although the

crisis has undermined some confidence in this assumption, with the overall economy generally

described as comprising almost 80% services sector, the locus of future growth is still regarded as

embedded in the services sector.

How accurate are these assumptions?

Whilst manufacturing has certainly declined as a proportion of the overall economy, it is not the case

that it has declined in absolute terms, rather growth in the sector has been comparatively weaker

than that achieved in other sectors. Similarly, despite the fact that manufacturing employment

undoubtedly haemorrhaged, actual sector output has continued to expand and per capita sector

productivity increased.

1. Overview

2. Background

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6 Assessing the Secondary Economic Impact of Manufacturing in the Midlands

-15

-10

-5

0

5

10

15

20

25

30

0

20

40

60

80

100

120

1950

1953

1956

1959

1962

1965

1968

1971

1974

1977

1980

1983

1986

1989

1992

1995

1998

2001

2004

2007

2010

2013

Index of Manufacturing Manufacturing Growth (% change, rhs)

Manufacturing Performance, index 100=2010

Source: ONS and WMEF

In the 63 years since 1950, the ONS index of manufacturing recorded growth in 43 of these, and

moreover manufacturing output peaked in 2007. In that year output was almost 130% of that

achieved in 1950, close to a quarter greater than that achieved in 1970 and about 30% larger than in

1980.

Although overall manufacturing output growth has been sustained, the structure of labour demand

has shifted markedly. In the early 1980s, it is estimated that manufacturing accounted for a quarter

of all jobs, and although in 1996 still representing 1 in 7 workers, by 2014 had fallen close to 1 in 15.

This represented between 1996 and 2014, a fall equivalent to 1.6 million (or almost 40%) FTEs in

manufacturing. In contrast other sectors recorded growth over the same period, in other production

sectors by 13% and in logistics and distribution by 17%, although notably employment in the finance

and insurance sector was a modest 4%. Total employment in the British economy increased by close

to a fifth from 27.2 million in 1996 to 32.4 million in 2014. Apart from societal employment, which

recorded growth of 32% - largely due to increased education employment up 43%, and health &

social up 46%, whereas public administration contracted 6% - the principal employment growth

sectors were real estate, expanding 110%; professional, scientific & technical 75% increase;

administration and support 61%; and IT 60% growth. Indeed, the actual number of jobs created in the

last three sectors, some 2.7 million, more than compensated for the dramatic fall in manufacturing

sector.

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November 2014 7

Societal Other Services Real Estate Finance Logistics Other Production Manufacturing

12%

28%

30%

9%

15%

32%

17%

30%

9%

7% 0

5,000,000

10,000,000

15,000,000

20,000,000

25,000,000

30,000,000

35,000,000

Mar

-96

Au

g-96

Ja

n-9

7 Ju

n-9

7 N

ov-

97

Ap

r-98

Se

p-9

8 Fe

b-9

9 Ju

l-99

Dec

-99

May

-00

Oct

-00

Mar

-01

Au

g-01

Ja

n-0

2 Ju

n-0

2 N

ov-

02

Ap

r-03

Se

p-0

3 Fe

b-0

4 Ju

l-04

Dec

-04

May

-05

Oct

-05

Mar

-06

Au

g-06

Ja

n-0

7 Ju

n-0

7 N

ov-

07

Ap

r-08

Se

p-0

8 Fe

b-0

9 Ju

l-09

Dec

-09

May

-10

Oct

-10

Mar

-11

Au

g-11

Ja

n-1

2 Ju

n-1

2 N

ov-

12

Ap

r-13

Se

p-1

3 Fe

b-1

4

Evolution of GB Sector Employment

Source: ONS and WMEF

These shifts in labour demand patterns coupled with output growth undoubtedly contributed to per

capita productivity growth across the economy. Strikingly however, it is the transport and logistics

and manufacturing sectors that realised the most robust rates of growth.

58%

50% 48%

31%

25%

6%

2% 1% -2%

Tran

spo

rt

& C

om

ms

Agr

icu

ltu

re

Man

ufa

ctu

rin

g

Fin

ance

&

Bu

s Se

rvs

Dis

trib

uti

on

&

Ho

tels

Min

ing

Co

nst

ruct

ion

Oth

er S

ervi

ces

Pub

lic A

dm

in

Productivity Growth 1997-2007, Output in constant prices per employee

Source: PwC, ONS and WMEF

The shifts in labour demand however may also be indicative of a deeper shift in the actual structure

of the UK economy. Globally, in many of the more successful economies, the distinction between the

manufacturing and services sector has become increasingly hard to define. This can be attributed to

two associated but separate trends: firstly, the outsourcing of activities by manufacturers that are

not considered as intrinsic to enterprise activities; and secondly, the so-called servitisation of

manufacturing, whereby manufacturers no longer simply sell products but products coupled with an

associated bundle of ancillary services customised to meet client needs.

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8 Assessing the Secondary Economic Impact of Manufacturing in the Midlands

Overall HR Strategy In-Business HR

Labour Relations Strategy Compensation & Benefits Policy/Design

Strategic Workforce Planning & Analysis HR Policy

Labour Relations Vendor Management

Change Management Consulting Learning Management

Perfromance Management Integrated Disability Case Management

International Service Personnel Admin Recruitment, Assessment & Selection

Training Administration Policy Inquiries & Resolution

Relocation Services Benefits Administration

Job Posting Employment Changes

Payroll Benefits Sign-up

Form Submission Employee Record Keeping

HRIS

Low

High

Val

ue-

add

ed

Complexity of Interaction

Corporate Governance

Services

Professional& Advisory

ServicesEmployment

Services Transactions Services

Low High

Human Resources Outsourcing

Source: EC High

The first trend, outsourcing of activities from the manufacturing sector essentially to the services

sector, is a clearly identifiable trend in recent decades. This is not simply just the human resources

component, although that in itself is significant, but across a range of activities, such as operational

management, transport, distribution, as well as accountancy, marketing and customer relations

management. Furthermore, the impact of public sector policies, at European, national and local level,

has created a complex business operating environment, but one in which enterprises must strive to

be competitive. This ensures that companies have to remain abreast of opportunities that can

become available within these policy frameworks, in areas such as trade, finance, monetary, taxation,

legal, infrastructure, education, labour, technology and innovation. For most SMEs and indeed many

of the larger corporates the cost of retaining such in-house expertise would probably prove

prohibitive. Demand for these services by manufacturers is obviously closely related to the actual

and forecast performance of the manufacturers themselves.

3. Outsourcing

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November 2014 9

The second trend, is the servitisation of manufacturing. The manufacturing sector is probably the

most heavily integrated with other economic sectors, and as a result has a higher multiplier impact

on the overall economy. In terms of comparative impact, for every pound of product expenditure in

the manufacturing sector it is calculated that that this creates £1.76 of product expenditure in the

wider economy. Only the agricultural and construction sectors produce greater returns. This is due to

the fact that manufacturing encompasses research, development, sales, distribution, logistics,

customer service, marketing and support. It is not simply the sale of products, but includes the

delivery of associated services.

1.80 1.76

1.84

1.66

1.50

1.58 1.56 1.56

1.37

1.45

1.0

1.1

1.2

1.3

1.4

1.5

1.6

1.7

1.8

1.9

Agricu

lture

Prod

uctio

n

Co

nstru

ction

Distrib

utio

n

IT Finan

ce

Real Estate

Professio

nal

Sup

po

rt

Societal

Oth

erServices

Comparative GDP Impact of Sector Product Spend, 2010 Leontief Inverse per £

Source: ONS and WMEF

Servitisation, the tendency for manufacturers to sell services and solutions, rather than just goods,

has widened the impact of the sector across the overall economy. It has also increased the demand

for new forms of services. Most noticeably business services demand has grown robustly and is

forecast to remain strong. The EC has estimated that at a European-level, business services currently

accounts for C1.5 trillion of GVA and of 20 million jobs in 4 million enterprises. Comparing growth

rates achieved in other economies, the EC forecasts that the global business service will be

equivalent to close to C8 trillion within a decade. In effect, servitisation is reindustrialising the

economy, a trend that can be expected to intensify by the deepening utilisation of internet services

by manufacturing.

4. Servitisation

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10 Assessing the Secondary Economic Impact of Manufacturing in the Midlands

80

90

100

110

120

130

2009 JAN 2009 JUL

2010 JAN 2010 JUL

2011 JAN 2011 JUL

2012 JAN 2012 JUL

2013 JAN 2013 JUL

2014 JAN

All Services Admin & Support Publishing Air Transport

Computer Programming Accomoda�on Wholesale Warehousing

Real Estate Professional Finance

Service Sector Output: Top Performers, Index 2010=100

Source: ONS and WMEF

While growth in manufacturing can be anticipated through actual product output expansion, as a

result of output re-shoring, proximity manufacturing and new product lines, value-added expansion

can also be expected from the impact of services associated with manufacturing. Additionally, as

automation and use of robotics deepens within manufacturing sector, programming and systems

analytics have become increasingly significant – a feature that is likely to become increasingly

prevalent. Furthermore, greater export market penetration can be achieved via improving customer

utilisation of products and the longevity of products as well as the competitiveness of products.

Intellectual property and knowledge-driven enterprises become critical to success. Indeed

enterprises that are able to incorporate best-market-practice from both the manufacturing and

services spheres are most likely to be successful. Rolls-Royce is a key local example that has managed

the transition from a pure manufacturer to a provider of integrated solutions across product

lifetimes – it is estimated that over half of company revenues are now generated from services.

0%

5%

10%

15%

20%

25%

30%

35%

40%

Agriculture

Mining

Food & Products

Textiles & Apparel

Wood & Paper

Chemicals & Minerals

Basic Metals

Machinery

Electrical Equipment

Transport Equipment

Other Manufactures

Domestic Service Contents Foreign Service Contents 1995 Total

Services Content of Gross Exports, by Industry 2009 %

Source: OECD and WMEF

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November 2014 11

The increasing interdependence of the services and manufacturing sectors is perhaps evident in the

recent performance of services. Prior to the financial crisis, growth in services was driven by rapid

expansion in finance and insurance, post-crisis this no longer appears to be the case. Rather financial

services output has continued to deteriorate, and expansion in the sector is now largely driven by

other sub-sectors and generally those that to a greater extent interact with manufacturing, through a

range of activities such as design, quality, transport and distribution. Servitisation increases the

value-added that can be derived from production. This not only enhances competitiveness but can

also to some extent insulate enterprises from external competition, especially those processes

involving relatively low labour content or high transport costs.

-60

-40

-20

0

20

40

60

Low-skill

EU15 France Germany United Kindom United States Japan

Medium-skill High-skill Total

Change in Demand for Labour by Type, % channge over 1995-2008 relative to level in 1995

Source: Los et al. 2014, OECD and WMEF

Servitisation appears to be partly responsible for the shift in the structure of labour demand, away

from low-skilled occupations (as defined by the OECD), toward more skill-intensive occupations.

During the same period that the structure of labour demand radically changed, the skill structure of

the jobs markets fundamentally altered. According to analysis provided by the OECD, the number of

low-skilled jobs has fallen, whilst medium- and high-skilled jobs has increased. This shift in the skills

demand toward higher skills sets, with the implication that these jobs available are in more capital

intensive environments, will impact future output growth options. Both re-shoring of output and

proximity manufacturing are likely to take place within the context of achieving greater value-added

realisation and attempting to geographically relocate low-skilled production processes is unlikely to

prove viable over the longer-term.

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12 Assessing the Secondary Economic Impact of Manufacturing in the Midlands

Given these factors it is possible to estimate the secondary impact of the manufacturing sector on

the Midlands economy, and also identify what makes it distinctive or similar in structure to the

national economy. For the overall UK economy in 2011 (the latest for which data is available),

manufacturing provides 10.5% of national GVA, whereas in the Midlands the sector provides 14.7% of

GVA. Similarly, the wider production sector (Agriculture, Mining & Quarrying, Manufacturing,

Electricity & Gas, Water & Sewerage and Construction) contributes the equivalent of 20.7% of total

GVA, whilst in the Midlands the sector is comparatively larger providing 26.3% of GVA.

An indication of the scale of services dependency on manufacturing demand, can be developed by

simply weighting the services sectors by the implied demand of manufacturing and services at

NUTS-level 3. With the production sector equivalent to 26% of regional GVA, this would suggest that

this demand generates related services sector activity of close to 27% of regional GVA, accordingly

the primary and secondary impact of production, including manufacturing, on the wider economy

can be estimated as close to 53% of GVA. This has obvious and significant implications for policy and

strategy to facilitate the rebalancing of the economy and fostering industrial expansion.

29% 28% 27% 26%

26% 26%

27% 27% 26% 26%

26% 27%

0

20 000

2006

2007

2008

2009

2010

2011

40 000

60 000

80 000

100 000

120 000

140 000

160 000

180 000

Public Other Sectors Finance Production Production-related Services

Comparative Contribution of Production to Midlands, GVA £

Source: ONS and WMEF

While the previous approach gives an indication of the probable level of interaction, accurately

defining the secondary impact of manufacturing sector would require analysis of industry down to

5-digit SIC level and sampling of key enterprises within these industries to examine their use of

services and their degree of servitisation. This is obviously beyond the scope of this discussion

paper. Rather in an attempt to assess the scale of the interaction between services and

manufacturing, the method adopted has been to weight the services sectors by the notional

demand manufacturing makes on each of the respective sectors. Whilst it is recognised that further

research needs to be undertaken to establish these weightings, at this stage the relative proportions

of the manufacturing and production has been used to indicate the level of likely demand and

interaction regionally.

5. Secondary Impact of Manufacturing

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November 2014 13

In the case of manufacturing a weighting of 0.15 was given and for overall production of 0.26. These

weightings were then applied to each of the various services sub-sectors. In addition, a qualitative

assessment was made of each of the sectors, and in cases the assessment was that there was likely

to be no or slight relationship and a 0 weighting was applied, for a few others it was concluded that

the service was entirely dependent on manufacturing or production and as a result a weighting of 1

was applied (details of the sectoral weightings are attached in Appendix 1). As a result, the

manufacturing sector impact was assessed to be equivalent to 38% of regional GVA.

Production 38%

Logistics 18%

Services 21%

Societal 23%

Agriculture 1%

Manufacturing 15%

Electcrity & Gas 2%

Water & Sewerage 1%

Construction 7%

ManuServices 12%

Wholesale & Retail 9%

Transportation 4%

Accommodation & Food 2%

IT 3%

Finance 5%

Real Estate 10%

Professional 2%

Administrative 4%

Public 5%

Education 7%

Health & Social 8%

Arts 1%

Other Services 2%

Midlands Output Structure, 2011

Source: ONS and WMEF

Taking a broader approach, and assessing the impact of the wider production sector, including

manufacturing, would suggest that the overall impact would be equivalent to 15% of GVA, suggesting

the overall the impact of production is equivalent to 41% of GVA. Furthermore, if one considers just

the Non-Financial Business Sector of the economy, the impact is greater, with manufacturing

equivalent to 53% and production 58%.

Further research is required to arrive at a more sustainable calculation of this impact and gain a more

balanced comprehension of the real structure of the economy.

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14 Assessing the Secondary Economic Impact of Manufacturing in the Midlands

Manufacturing Impact as % of Midlands: GVA 38% Non-Finance Business Sector 53% Production Impact as % of Midlands: GVA 41% Non-Finance Business Sector 58%

GVA £ million 2012 Weighting Manufacturing Weighting Production Manufacturing Impact Production Impact

Midlands Total Output 176,789

A-S (Part) Midlands Non-Financial Business Economy 127,238

A (Part) Agriculture, forestry and fishing 148 1 148 1 148

01 (Part) Crop and animal production, hunting and related service activities 1 1

02 Forestry and logging 1 1

03 Fishing and aquaculture 1 1

B-E Production industries (residual) 37,819 1 362 1 362

B Mining and quarrying 360 1 360 1 360

05 Mining of coal and lignite 1 1

06 Extraction of crude petroleum and natural gas 1 1

07 Mining of metal ores 1 1

08 Other mining and quarrying 1 1

09 Mining support service activities 1 1

C Manufacturing 29,959 1 29,959 1 29,959

10 Manufacture of food products 1 1

11 Manufacture of beverages 1 1

12 Manufacture of tobacco products 1 1

13 Manufacture of textiles 1 1

14 Manufacture of wearing of apparel 1 1

15 Manufacture of leather and related products 1 1

16 Manufacture of wood and of products of wood and cork, except furniture; 1 1 manufacture of articles of straw and plaiting materials

17 Manufacture of paper and paper products 1 1

18 Printing and reproduction of recorded media 1 1

19 Manufacture of coke and refined petroleum products 1 1

20 Manufacture of chemicals and chemical products 1 1

21 Manufacture of basic pharmaceutical products 1 1 and pharmaceutical preparations

22 Manufacture of rubber and plastic products 1 1

23 Manufacture of other non-metallic mineral products 1 1

24 Manufacture basic metals 1 1

25 Manufacture of fabricated metal products, 1 1 except machinery and equipment

26 Manufacture of computer, electronic and optical products 1 1

27 Manufacture of electrical equipment 1 1

28 Manufacture of machinery and equipment n.e.c. 1 1

29 Manufacture of motor vehicles, trailers and semi-trailers 1 1

30 Manufacture of other transport equipment 1 1

31 Manufacture of furniture 1 1

32 Other manufacturing 1 1

33 Repair and installation of machinery and equipment 1 1

D Electricity, gas, steam and air conditioning supply 4,824 1 4,824 1 4,824

E Water supply, sewerage, waste management, 2,674 1 2,674 1 2,674 and remediation activities

36 Water collection, treatment and supply 1 1

37 Sewerage 1 1

38 Waste collection, treatment and disposal activities; materials recovery 1 1

39 Remediation activities and other waste management services 1 1

F Construction 9,479 1 9,479 1 9,479

41 Construction of buildings 1 1

42 Civil engineering 1 1

43 Specialised construction activities 1 1

G Wholesale and retail trade; repair of motor vehicles 22,912 0.15 6,541 0.26 8,660 and motorcycles

45 Wholesale and retail trade and repair of motor 1 1 vehicles and motorcycles

46 Wholesale trade, except of motor vehicles and motorcycles 0.15 0.26

47 Retail trade, except of motor vehicles and motorcycles 0.15 0.26

Appendix 1: Secondary Impact of Manufacturing & Production Sectors

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November 2014 15

GVA £ million 2012 Weighting Manufacturing Weighting Production Manufacturing Impact Production Impact

H-S (Part) Non-Financial Service industries 56,881 0.15 0.26

H Transport and Storage 9,450 0.15 1,418 0.26 2,457

49 Land transport and transport via pipelines 0.15 0.26

50 Water transport 0.15 0.26

51 Air transport 0.15 0.26

52 Warehousing and support activities for transportation 0.15 0.26

53 Postal and courier activities 2,109 0.15 0.26

I Accommodation and food service activities 4,843 0.15 726 0.26 1,259

55 Accommodation 0.15 0.26

56 Food and beverage service activities 0.15 0.26

J Information and communication 7,363 0.15 1,068 0.26 1,852

58 Publishing activities 0.15 0.26

59 Motion picture, video and television programme production, 0 0 sound recording and music publishing activities

60 Programming and broadcasting activities 0 0

61 Telecommunications 0.15 0.26

62 Computer programming, consultancy and related activities 0.15 0.26

63 Information service activities 0.15 0.26

L Real estate activities 2,913 0.15 437 0.26 757

M Professional, scientific and technical activities 11,593 0.15 5,534 0.26 6,356

69 Legal and accounting services 0.15 0.26

70 Activities of head offices; management consultancy activities 1 1

71 Architectural and engineering activities; technical testing and analysis 0.15 0.26

72 Scientific research and development 1 1

73 Advertising and market research 0.15 0.26

74 Other professional, scientific and technical activities 1 1

75 Veterinary activities 0 0.26

N Administrative and support service activities 11,022 0.15 1,653 0.26 2,866

77 Rental and leasing activities 0.15 0.26

78 Employment activities 0.15 0.26

79 Travel agency, tour operator and other reservation 0.15 0 . 2 6 service and related activitie

80 Security and investigation activities 0.15 0.26

81 Services to buildings and landscapes activities 0.15 0.26

82 Office administrative, office support and 0.15 0 . 2 6 other business support activities

P (Part) Education 1,830 0 0 0 0

Q (Part) Human health and social work activities 3,790 0 0 0 0

86 Human health activities 0 0

87 Residential care activities 0 0

88 Social work activities without accommodation 0 0

R Arts, entertainment and recreation 2,119 0 0 0 0

90 Creative, arts and entertainment activities 0 0

91 Libraries, archives, museums and other cultural activities 0 0

92 Gambling and betting activities 0 0

93 Sports activities and amusement and recreation activities 0 0

S Other service activities 1,957 0.15 82 0.26 142

94 Activities of membership organisations 0.15 0.26

95 Repair of computers and personal household goods 0.15 0.26

96 Other personal service activities 0 0

source: ONS Annual Business Survey 2012 & WMEF

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16 Assessing the Secondary Economic Impact of Manufacturing in the Midlands

Birmingham City University: Corporate Engagement

Birmingham City University is focussed on providing skills, applied knowledge and research to

meet the needs of employers, business and partners in Birmingham and across the Midlands working

closely with leading business, political figures and economic organisations. Building on the

University’s existing partnerships our programmes offer practice-based learning opportunities for

23,000 students – with over 70% remaining here following graduation.

The University is working with business and industry as a partner actively working to drive the

region’s economic prosperity. Our Corporate Affairs programme reflects our determination to forge

ever closer links with stakeholders and influencers, to strengthen awareness of our offer and our

contribution to the economic, cultural and societal sectors, as well as the contribution made by our

students, graduates and staff. The Corporate Affairs programme is a key component of the

University’s vision for 2020 and beyond, an ambitious strategic plan based on offering transformative

opportunities for students, and importantly incorporating hands-on experience of industry.

Idea Birmingham is Birmingham City University think and do tank, representing a membership-

based collaboration of manufacturing and brand-led businesses, including support from Jaguar Land

Rover, JCDecaux, AGA Rangemaster, Millennium Point, Aston Martin, WB the Creative Jewellery

Group, GKN, Pashley Cycles, Brooks England Saddles, J Hudson & Co. Acme Whistles, Rolls-Royce,

JCB, Triumph Motorcycles, Aston University and Birmingham City Council, amongst others.

Developed to promote our emerging talent, position design-driven innovation and entrepreneurial

excellence at the heart of our economic growth strategy, and bring this together through the

authentic and great brands designed and made in Birmingham and the Midlands.

Birmingham Made Me Expo 19th November Millennium Point is the Midland’s most important

annual celebration of the design-led manufacturing capabilities and achievements originating in the

region. Birmingham, the UK’s biggest regional city, is host to this annual celebration of design and

innovation gathering together world-class businesses, speakers and thought leaders from the

transport and automotive, health, consumer, education, renewables, digital and new media

industries. A combination of events, demonstrations, performances and displays, the Expo

showcases the region’s innovations and successes, linking emerging talent and entrepreneurship

into business. www.birmingham-made-me.org

For further information, contact:

Beverley Nielsen

Director Corporate Affairs

Birmingham City University

Mob 07791 301 325

Direct 0121 331 7397

[email protected]

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November 2014 19

Disclaimer: The analysis presented in this report accurately represents the personal assessment of the analyst(s) and no

part of the compensation of the analyst(s) was, or will be directly or indirectly related to the inclusion of specific

views in this report. Further information is available on request. The information contained, and any views

expressed, herein are based on data currently available within the public domain. The contents of this Report

are not a substitute for specific advice and should not be relied on as such. Accordingly, whilst every care has

been taken in the preparation of this publication, no representation or warranty is made or given in respect of

its contents and no responsibility is accepted for the consequences of any reliance placed on it by any person.

This report was prepared by the West Midlands Economic Forum

West Midlands Economic Forum The Hawthorns West Bromwich B71 4 LF

[email protected] www.westmidlandseconomicforum.co.uk

Registered in Cardiff, number: 07025784.

© Copyright 2014 Birmingham City University

Joint authors:

WMEF

Paul Forrest, Head of Research

Owen Wright, Research Analyst

For business development:

Spencer Terry, Manager