Regional Profile North East England
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1 Regional Profile North East England
2 Contents Population Key Points of the North East Newcastle Sunderland County Durham Middlesbrough & Tees Valley Conclusion
3 Population for the North East: The North East has the smallest population of any English region, but in common with every region between there was an increase in growth. The increase in the North East was the smallest in any region. (Census 2011) County Durham 493,800 (+3.9%) Northumberland 307,400 (+2.8%) Newcastle upon Tyne 266, %) Sunderland 284,600 (-3.2%) North Tyneside 192,000 (+4.6%) Gateshead 191,200 (4.7%) Stockton-on-Tees 183,800 (+4.2%) South Tyneside 152,800 (-3.1%) Middlesbrough 141,200 (-2.0%) Redcar and Cleveland 139,200 (-2.9%) Darlington 97,900 (+7.9%) Hartlepool 90,200 (+2.0%)
4 Key Points of the North East: The North East is the best performing export region in England, but the most distant from other major domestic markets. However, the North East s leadership in export (as well as expertise in vital industry sectors) has the capacity for further development and is an essential component of future growth for the region. Thus the North East is a huge asset to the UK and must be allowed to flourish. Office costs are as much as 50% lower than London and the South East and 20% lower than Leeds and Manchester. The North East has a 4bn visitor economy including World Heritage sites such as Hadrian s Wall and Durham Cathedral. A consortium of North East businesses under the banner of Energy Coast, have invested 400m in the offshore renewable energy market. The North East is the only region in the UK with a trade surplus, which stands at around 3bn. However, the level of business activity in the North East is still behind many other areas of the UK. Consequently, this leaves the region with lower employment, income and asset values than elsewhere. The North East needs major events in order to maximise their economic value; because such events produce widespread business opportunities and project the region internationally. Manufacturing is currently worth 7.5bn to the North East economy.
5 Newcastle Newcastle s economy is renowned for its outstanding and loyal workforce and 27 per cent of them are employed in the public administration, health and education sector, with Newcastle City Council, University of Newcastle and Newcastle General and Royal Infirmary being the major employers within this sector. Also the manufacturing sector remains important in the city region economy, with Newcastle s traditional strength in the engineering sector being in fabricated metal products and machinery. However, although these remain strong sectors in the region, their position as the largest manufacturing sector has now been replaced by the automotive industry. The sector now represents just over 6 per cent of the city s workforce in key employers such as: Vickers Defence Systems; Rolls Royce Industrial Power Group; BAE Systems and Chieftan. Newcastle is already acclaimed as the UK s most sustainable city and company registrations climbed to a record high in Newcastle upon Tyne in October Newcastle s Science City Science Central will evolve over the next 15 to 20 years, creating an estimated 1,900 jobs on a site which will see university institutes spring up next to offices, homes and public squares. The development will have a significant impact on the future economic prosperity of the region, helping to bring more and better jobs to the North East, by driving innovation and attracting employers to locate in Newcastle.
6 Sunderland The city has a good track record of attracting and keeping business investment, particularly around the automotive supply chain and major employers in Sunderland include: Nissan; Hitachi; EDF and Siemens. As home to the UK s largest car plant - Nissan - Sunderland lies at the heart of the country s foremost automotive manufacturing region and is known as a producer city and its economy today includes the key sectors of automotive and advanced manufacturing. (Nissan is now exporting 80% of its production to 92 world markets - and they announced in January 2014, that a further 500 jobs will be created in Sunderland.) Also Sunderland s coastal position has always played a huge part in its economy and will do so long into the future as the city sets its sights on becoming the UK s low carbon hub. Home to many global companies such as Siemens, GE Oil and Gas, and EDF, the area is recognised as a primary location to further expand and grow the successful offshore energy market including oil, gas, renewables and subsea. Sunderland s population is 284,600 but is dropping at one of the fastest rates in Britain, according to census 2011 figures. The city s headcount decreased by 3.2%, while Newcastle s population increased by 5.2% during the same period.
7 County Durham Durham s long-established industrial profile means that technology, engineering and manufacturing accounts for 23% of the County s economy as compared with Cambridgeshire at 15%, London at 4%, and the UK as a whole at 16%. Durham has a workforce that is practical, hardworking, with a sense of pride in their community as well as a shared heritage of spirit, passion, creativity, industry and innovation. Biopharma, Healthcare and Medical Durham is one of the major global locations for the pharmaceutical industry, with 33% of the UK s pharmaceutical GDP generated in the region. Globally important organisations such as GlaxoSmithKline and Merck Millipor have encouraged clusters of companies to develop in Durham. Communications The Communications sector is defined as a mix of fixed-line, cellular, satellite and internet based services. County Durham strengths lie in the research, design and development of mobile communication services, broadcast and internet services, biometric systems and terminal equipment. The dramatic nature of growth in this sector means research and investment are strong. However, County Durham faces a challenge to raise its higher level skills profile, which is regarded as a key factor which will influence the longer term economic success and adaptability of the economy.
8 Middlesbrough & Tees Valley The Tees Valley contributes 10 billion to the national economy and it has a population of 663,000. However, the catchment area of the population is much higher with one million people within a thirty minute drive and 2.7 million within one hour s drive. Middlesbrough is the capital of the Tees Valley. The Tees Valley functional economic area includes: Darlington, Hartlepool, Redcar & Cleveland, Middlesbrough and Stockton on Tees. Super-sectors Tees Valley is fast being recognised as leading the way in the development of sustainable super-sectors, into which there has been over 750m of inward investment over the past three years alone, including from global industry leading companies such as SABIC, Hitachi, Mitsubishi, SSI, Ineos, Esterline, Jacobs and Lotte. Petrochemicals The Tees Valley is the largest integrated chemical complex in the UK in terms of manufacturing capacity and the second largest in Western Europe. Future Economic Developments A 780m of investment underway into energy-related projects This includes the likes of Lucite International s chemical plant to supply electric vehicle battery electrolyte, Ineos Bio s energy from waste project, Sembcorp and SITA s biomass power station, Solvert s chemicals from commercial waste proposal and Tees Alliance Group s offshore wind monopile manufacturing plant.
9 Conclusion The North East economy has become one of the most dynamic in the UK and Europe, helped by massive investment in a new generation of advanced technologies. Its companies now serve expanding markets around the world with products exploiting those technologies. The scale and composition of employment are fundamental to the economic and social prosperity of regions. Technical change and global competition represent challenges to the sustainability of existing employment patterns. There are great reasons to do business in the North East of England and firms operating in the region enjoy tremendous value for money, excellent international connectivity and have access to a committed workforce. Cordant Recruitment appreciates that as a trading region the North East requires reliable, affordable and predictable access, both physically and digitally, to foreign markets in order to keep up its impressive export performance. Therefore, as a recruitment company we recognise the importance and relevance of the fact that the North East must now push for better career advice in schools tailored to the North East economy, with a particular focus on STEM skills; because it is crucial that young people in the region are given the best possible chance to access job opportunities locally. It is essential for the future economy of the North East to encourage greater graduate attraction and retention in the district, especially in areas such as ICT and engineering; because higher level skills are vital for a competitive business community. Now is the time for more flexible funding and incentives for businesses to employ and train young people; because more investment in skills is urgent and necessary and firms must have the best opportunity to do so. Two of the region s biggest strengths are its international trade both through export and as an attractive location for inward investment by global firms and innovation. Therefore building on these is essential. Cordant Recruitment is fully committed to assist and advise in all matters of employment. At Cordant Recruitment we entirely comprehend just how crucial it is for a region to accept the challenge to remain competitive, which requires a city, town or district to attract and nurture investment in business and, of course, maintain a skilled workforce.
10 Cordant Recruitment A trading division of Prime Time Recruitment Limited Registered No Registered Office: Chevron House, 346 Long Lane, Hillingdon, Middlesex, UB10 9PF Head Office: Oriel House Sheep Street Northampton NN1 2NE t: f:
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