Connecting Scotland’s Cities – Business Survey on Dualling the A9 and A96
September 2013
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RESEARCH PAPER
About Us
SCDI is an independent and inclusive economic development network which seeks to influence and inspire government and key stakeholders with our ambitious vision to create shared sustainable economic prosperity for Scotland.
Methodology
The survey was issued by SCDI in May 2013 to 476 members and contacts. While all its member businesses in Highland, Perthshire, Moray, Aberdeenshire and Aberdeen were included, SCDI also targeted a range of businesses outwith these areas on the basis that they have current interests in the region or (as the survey was seeking information on investments which might be stimulated as a result of the improved connectivity) might develop them. SCDI also sought to include businesses from each of the key sectors in the Scottish Government Economic Strategy. Inevitably, there was some speculation on SCDI’s part and the survey was, therefore, found not to be relevant to all businesses, especially those outside the north of Scotland. SCDI’s membership includes some business networks and trade associations, and SCDI is also aware that it was forwarded by a small number of them to their own memberships. In total, 210 responses were received within the month, a strong response rate for a survey of this kind, with a good spread across areas and sectors. Analysis of responses to the survey was undertaken in June, July and early August.
Thanks
SCDI would like to thank Transport Scotland for their support; the local authorities, regional transport partnerships and economic development organisations in the areas for their input into the survey design; and, especially, all the businesses which responded for their time and the information and comments which they provided.
For more information on this work please contact the Policy Team at:
Policy Team Scottish Council for Development & Industry 1 Cadogan Square Cadogan Street Glasgow G2 7HF Tel: 0141 243 2667 e: [email protected]
A9/A96 Research | September 2013
CONTENTS
Pages
Foreword – Purpose, Approach and Findings of Research 3
Your Business/ Organisation 5
Your Business/ Organisation and the A9 and A96 10
Perception of the Existing Roads 23
Impact of Existing Standards of your Business/ Organisation 27
Additional Comments 43
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FOREWORD – PURPOSE, APPROACH AND FINDINGS OF RESEARCH
The Scottish Government’s plans to complete the dual carriageway network between Scotland’s cities by fully dualling the A9 between Perth and Inverness by 2025 and the A96 between Inverness and Aberdeen by 2030 are two of the major capital investment programmes which are identified in its Infrastructure Investment Plan.
Improvements to these roads to enable increased economic development, particularly in the north of Scotland, have been high priorities for SCDI for many years and, more recently, improvements to inter-urban connectivity and reduced journey times have been prioritised in Scotland’s Agenda for Cities, a collaboration of Scotland’s seven cities and the Scottish Government, which is facilitated by SCDI.
Following the commitments made by the Scottish Government, Transport Scotland organised workshops with economic development and business organisations to discuss the economic benefits of the projects and how these could be maximised. These agreed that - as their impact would be substantial, long-term, widespread, and potentially transformational - further research of businesses would be very useful. With its broad-based, national membership, including networks in the Highlands and Islands and North East Scotland, and its track-record of business research, this was of strong interest to SCDI, and its proposal was supported by Transport Scotland. The focus for the planned research was discussed by local authorities, regional transport partnerships and economic development organisations, and, after further detailed input into a draft, the survey questionnaire was subsequently approved.
This report presents the findings of the research. Some key findings include:
Some businesses in key sectors intensively use these roads In some sectors, freight movements can be time-critical and/ or high-value Quality of road transport infrastructure is rated as very important or important by a large majority of respondents which are located in the north of Scotland The quality of road transport infrastructure for their location in the north of Scotland is rated as poor or very poor by nearly half of the respondents Well over half of respondents rated the A9 as poor or very poor on safety, service area availability, journey time reliability, journey time, and comfort/ feel of ease when driving, with as many as 70% rating it as poor or very poor for safety Between 60% and 77% of respondents rated the A96 as poor or very poor on journey time, journey time reliability, safety, comfort/ feeling of ease when and service area availability, with as many as 44% giving it the worst rating (‘very poor’) on journey time reliability, and ratings generally even more negative among respondents in the North The direct impact of these issues on businesses varies considerably, with certain respondents identifying some very significant issues, and others experiencing little direct impact (the latter finding is partly explained by the survey including businesses from outwith the north of Scotland and by not all respondents which utilise the A9 also utilising the A96 and vice versa), and also varies in different areas in the north of Scotland and in different sectors For the A9, costs of disruption due to road closures/ diversions, additional costs due to congestion or slow traffic on route, and reduced productivity due to congestion or slow traffic on route, were the top three direct impacts
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Generally, the direct impacts of the A96 were rated as even more significant, with additional costs due to congestion or slow traffic on route, reduced productivity due to congestion or slow traffic on route, costs of disruption due to road closures/ diversions, and missed meeting/ transport connections due to unreliable journey time rated, on average, as the four most significant Nearly two-thirds of businesses make allowances for constraints Thinking about their own business development plans and opportunities, the benefits which were identified by respondents of fully dualling the A9 included: o Improved access for visitors and customers o Productivity gains from reduced journey times and less stressful journeys o Safer journeys for visitors and staff, with fewer significant disruptions o Widen range of potential suppliers, faster deliveries and possibly lower costs o More efficient and reliable road haulage, with reduced vehicle repair costs Thinking about their own business development plans and opportunities, the benefits identified by respondents of fully dualling the A96 included: o Widen labour market from which to recruit skilled people o Improved access for visitors and customers o Widen range of potential suppliers (and potentially reduce costs) o Productivity gains from less stressful, safer journeys and reduced journey times o More efficient and reliable road haulage When offered a range of potential benefits for their businesses of fully dualling the A9, the greatest benefits appear to be increased attractiveness of area for investment, reduced transport costs and improved business confidence, with businesses in Highland and Moray giving particularly high rankings, e.g. nearly a half in each case giving the highest ranking (‘a great deal’) to increased attractiveness of area for investment and 49% of respondents in Moray giving this ranking to improve links between your business locations When offered a range of potential benefits for their businesses of fully dualling the A96, the greatest benefits appear (as with the A9) to be increased attractiveness of area for investment, reduced transport costs and improved business confidence, with the benefits tending to be ranked as more significant by the businesses in the areas which are served by the road
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YOUR BUSINESS/ ORGANISATION
Q1. Company Details
Total number of respondents to survey: 210
Location of Responding Site
3% 2% 3% 1% Highlands
13% Aberdeen & Aberdeenshire 46% Elsewhere in Scotland
Northern & Western Isles 32% Perthshire
Moray
Dundee & Angus
Base: 210 respondents
Q2. Please choose the KEY industry that would best describe your business/ organisation.
Respondents' Key Industries
Oil & Gas 15% 24% Tourism Transport 13% 4% Business Services 4% 9% Food and drink 6% Construction 7% 9% 9% Retail
Creative industries
Public services
Others* Base: 210 respondents
*Others include: renewable energy, forestry, financial services, higher and further education, ICT, marine, minerals, social enterprise, textiles, chemical sciences, property, manufacturing, distribution and legal services.
In Q3 respondents were also asked to describe their main business activity.
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Q4. Across which areas is your business/ organisation located? (businesses were asked to give ALL locations)
Respondents' locations of businesses
70%
60%
50%
40%
61% 30% 49% 20% 36% 24% 23% 10% 20% 15% 12% 15%
0% Moray Highland Angus Overseas the UK the Perthshire Scotland Dundee andDundee Elsewhere Elsewhere in Elsewhere in Northern Northern and Western Isles Western
Base: 210 respondents Aberdeen and Aberdeenshire
Q5. Approximately how many people are currently employed by your business/ organisation in the following locations?
Employment by area
20,000
15,000
10,000 17,886
12,462 10,613 5,000 9,630 7,181 4,711
0 Inverness and Aberdeen Aberdeenshire Moray Perthshire North and East Highlands West Highlands Base: 202 respondents Note: the above employment numbers are from individual businesses which responded to the survey. A response from an association has been excluded from the figures as there will be an element of duplication with the individual companies in the industry who responded. The sum of employees from the association was several thousand for each area.
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Maximum number of Average number of Business locations employees in area employees in area
Inverness and East Highlands 8,673 198
Aberdeen 1,800 301
Aberdeenshire 9,000 314
Moray 6,000 218
Perthshire 5,500 291
North and West Highlands 3,000 187 Note: the minimum number of employees in each area was just one.
Q6. What is the turnover of your business/ organisation in Scotland?
Turnover of business in Scotland
21% 31% Up to £100,000 £0.1m - £0.5m 13% £0.5m - £1m £1m - £5m 12% 8% £5m - £10m 15% £10m or more
Base: 202 respondents
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Q7. Where are your customers located?
Locations of Customers
Highland 16% 20% Moray 4% 14% Aberdeen and Aberdeenshire Perthshire Northern and Western Isles 14% 25% Dundee and Angus 2% 3% 2% Elsewhere in Scotland Elsewhere in the UK Overseas
Base: 195 respondents - Scotland-wide
Locations of Business (by four key areas)
Locations of customers Moray Base: 42) Base: Highland Base: 114) Base: ( 93) (Base: 33) (Base: Perthshire ( Aberdeen & & Aberdeen Aberdeenshire
Highland 33% 23% 9% 21%
Moray 5% 13% 4% 6%
Aberdeen and Aberdeenshire 10% 15% 46% 12%
Perthshire 2% 3% 2% 9%
Northern and Western Isles 3% 4% 2% 3%
Dundee and Angus 2% 1% 1% 2%
Elsewhere in Scotland 15% 15% 11% 21%
Elsewhere in the UK 15% 14% 11% 17%
Overseas 15% 12% 14% 9%
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Q8. Where are your suppliers located?
Locations of Suppliers
Highland 7% 22% Moray 24% 3% Aberdeen and Aberdeenshire Perthshire Northern and Western Isles 20% Dundee and Angus 20% 1% 1% 2% Elsewhere in Scotland Elsewhere in the UK Overseas
Base: 183 respondents - Scotland-wide
Locations of Business (by four key areas)
)
) ) ) re
1 1 i 06 Locations of Suppliers Moray Base: 4 Base: Highland Base: 1 Base: ( 89 (Base: 3 (Base: Perthsh ( Aberdeen & & Aberdeen Aberdeenshire
Highland 35% 19% 11% 22%
Moray 3% 10% 3% 4%
Aberdeen and Aberdeenshire 9% 15% 37% 11%
Perthshire 2% 3% 1% 8%
Northern and Western Isles 2% 1% 1% 2%
Dundee and Angus 1% 2% 2% 3%
Elsewhere in Scotland 21% 19% 15% 25%
Elsewhere in the UK 22% 27% 21% 22%
Overseas 5% 4% 9% 3%
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YOUR BUSINESS/ ORGANISATION AND THE A9 AND A96 1
Q9. On average, how many trips on the A9 (south of Inverness and north of Perth) does your business/ organisation make a week for each of the following purposes?
Making/ receiving deliveries (using own vehicles)
Scotland-wide
3% 5% 3% 1% 5% Less than 1 weekly 1-5 16% 6-10 67% 11-15 16-20 21-100 100+
Base: 143 respondents
Highland Aberdeen & Aberdeenshire 2% 6% 4% 3% 0% 0% 6% Less than 1 weekly 7% 5% Less than 1 weekly 1-5 7% 1-5 6-10 6-10 23% 18% 59% 11-15 60% 11-15 16-20 16-20 21-100 21-100 100+ 100+
Base: 81 respondents Base: 74 respondents
Significant proportions of Scotland-wide respondents indicated that the number of trips on the A9 is less than one per week, particularly when making/ receiving deliveries using their own vehicles.
As might be expected, there is a higher proportion of businesses in Highland, Moray and Perthshire making more trips on the A9, compared to the Scotland-wide responses. Some companies are making more than 100 trips per week, from the following sectors: transport, minerals, food and drink, and retail. This includes 14% of respondents from Moray.
1 There will be duplication of companies in the regional charts in this section, where they have a presence in each of the areas
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...... how many trips on the A9 for:
Making/ receiving deliveries (using haulier/ courier)
Scotland-wide 4% 4% 6% Less than 1 weekly 7% 46% 1-5 9% 6-10 11-15 24% 16-20 21-100 100+
Base: 147 respondents
Highland Aberdeen & Aberdeenshire 1% 0% 6% 5% 1% 8% Less than 1 weekly 10% Less than 1 weekly 29% 11% 1-5 10% 1-5 6-10 52% 6-10 13% 11-15 11-15 21% 16-20 16-20 33% 21-100 21-100 100+ 100+
Base: 83 respondents Base: 75 respondents
Moray Perthshire
Less than 1 weekly 4% 14% Less than 1 weekly 23% 29% 4% 28% 1-5 1-5 10% 6-10 7% 6-10 11-15 7% 11-15 6% 23% 16-20 16-20 6% 36% 21-100 21-100 100+ 100+ 3%
Base: 35 respondents Base: 28 respondents
In general, more trips are made on the A9 for deliveries using a haulier or courier, compared to using own vehicles.
Regionally, a higher proportion of trips are being undertaken by businesses with a presence in Moray. 23% are making over 100 trips per week on the road from the following sectors: transport, minerals, food and drink, forestry and retail.
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...... how many trips on the A9 for:
Business Trips (excl travel to work)
Scotland-wide 4% 3% 1% 6% Less than 1 weekly 9% 48% 1-5 6-10 11-15 29% 16-20 21-100 100+
Base: 169 respondents
Highland Aberdeen & Aberdeenshire 2% 4% 1% 2% 1% 6% 8% Less than 1 weekly 6% Less than 1 weekly 38% 10% 1-5 9% 49% 1-5 6-10 6-10 11-15 11-15 27% 37% 16-20 16-20 21-100 21-100 100+ 100+
Base: 105 respondents Base: 83 respondents
Moray Perthshire
2% 3% 3% 7% 6% 7% 17% Less than 1 weekly 24% Less than 1 weekly 1-5 9% 1-5 14% 6-10 12% 6-10 11-15 11-15 16% 37% 16-20 43% 16-20 21-100 21-100 100+ 100+
Base: 43 respondents Base: 33 respondents
The results for Scotland and for Highland are fairly similar in terms of business trips on the A9, although there is a higher proportion of between one and five trips from Highland. The proportions are larger still in the other key areas of Moray and Perthshire, with 6% in Perthshire making more than 100 trips per week on the road.
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...... how many trips on the A9 for:
Commuting
Scotland-wide 2% 1% 2% 6% Less than 1 weekly 8% 1-5 11% 6-10 11-15 70% 16-20 21-100 100+
Base: 132 respondents
Highland Aberdeen & Aberdeenshire
4% 5% 1% 3% 3% 5% Less than 1 weekly 2% 9% Less than 1 weekly 10% 1-5 1-5 7% 6-10 6-10 13% 7% 64% 11-15 67% 11-15 16-20 16-20 21-100 21-100 100+ 100+
Base: 78 respondents Base: 67 respondents
Moray Perthshire
3% 4%
3% 6% Less than 1 weekly 8% Less than 1 weekly 7% 8% 45% 1-5 4% 1-5 13% 50% 6-10 9% 6-10 11-15 11-15 23% 16-20 17% 16-20 21-100 21-100 100+ 100+
Base: 31 respondents Base: 24 respondents
It is not surprising to note the low levels of trips for commuting on the A9 from Scotland-wide respondents and the areas of Highland and Aberdeen & Aberdeenshire. Companies in Perthshire on the other hand are perhaps more likely to have staff using the A9 for commuting, with their place of work often in Perth.
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Q10. On average, how many trips on the A96 does your business/ organisation make a week for each of the following purposes?
Making/ receiving deliveries (using own vehicles)
Scotland-wide
6% 4% 6% 6% Less than 1 weekly 1-5 7% 6-10 59% 12% 11-15 16-20 21-100 100+
Base: 143 respondents
Highland Aberdeen & Aberdeenshire
2% 6% 5% 6% Less than 1 weekly 11% Less than 1 weekly 4% 4% 8% 1-5 45% 1-5 5% 6-10 12% 6-10 65% 11-15 12% 11-15 16-20 16-20 15% 21-100 21-100 100+ 100+
Base: 82 respondents Base: 74 respondents
Moray Perthshire
23% 20% Less than 1 weekly 7% 7% Less than 1 weekly 7% 1-5 47% 1-5 7% 11% 6-10 6-10 23% 11-15 11-15 6% 16-20 16-20 14% 4% 21% 21-100 21-100 100+ 100+ 3%
Base: 35 respondents Base: 28 respondents
Unlike the A9, the results for the A96 show a higher level of journeys overall, particularly for Moray and Aberdeen and Aberdeenshire companies.
The results show that there are more than 100 trips per week to make and receive deliveries, by companies using their own vehicles, in the following diverse range of sectors: food and drink, oil and gas, minerals, forestry, transport, financial services, and textiles.
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...... how many trips on the A96 for:
Making/ receiving deliveries (using haulier/ courier)
Scotland-wide 4% 5% 3% 8% Less than 1 weekly 48% 1-5 14% 6-10 11-15 18% 16-20 21-100 100+
Base: 143 respondents
Highland Aberdeen & Aberdeenshire 1% 4% 3% 6% Less than 1 weekly 8% Less than 1 weekly 8% 32% 15% 1-5 7% 1-5 50% 6-10 5% 6-10 11-15 11-15 17% 21% 16-20 23% 16-20 21-100 21-100 100+ 100+
Base: 80 respondents Base: 75 respondents
Moray Perthshire
4% 18% Less than 1 weekly 0% 7% Less than 1 weekly 28% 7% 1-5 41% 1-5 18% 6-10 15% 6-10 11-15 11-15 18% 6% 16-20 16-20 12% 26% 21-100 21-100 100+ 100+ 0%
Base: 33 respondents Base: 27 respondents
In general, and similar to the A9, more trips are made on the A96 for deliveries using a haulier or courier, compared to using own vehicles.
Regionally, a higher proportion of trips are being undertaken by businesses with a presence in Moray, with 36% making over 20 trips per week on the road. In Aberdeen and Aberdeenshire, 16% are making over 20 trips per week.
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...... how many trips on the A96 for:
Business Trips (excl travel to work)
Scotland-wide 3% 4% 5% 9% Less than 1 weekly 48% 1-5 9% 6-10 11-15 22% 16-20 21-100 100+
Base: 158 respondents
Highland Aberdeen & Aberdeenshire
5% 3% 5% 3% Less than 1 weekly 5% 10% 5% Less than 1 weekly 33% 1-5 1-5 10% 7% 51% 6-10 6-10 11-15 16% 11-15 23% 16-20 16-20 24% 21-100 21-100 100+ 100+
Base: 96 respondents Base: 81 respondents
Moray Perthshire
0% 10% 14% Less than 1 weekly 7% 7% Less than 1 weekly 19% 1-5 7% 37% 1-5 26% 6-10 16% 6-10 11-15 11-15 12% 16-20 16-20 2% 17% 26% 21-100 21-100 100+ 100+
Base: 42 respondents Base: 30 respondents
Similar to the A9, the results for Scotland and for Highland are fairly similar in terms of business trips on the A96. About a quarter of respondents are making over five business trips a week on this road.
As might be expected, the proportions are larger in the other areas served by the A96, Aberdeen and Aberdeenshire, and Moray.
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...... how many trips on the A96 for:
Commuting
Scotland-wide
14% Less than 1 weekly 9% 1-5 5% 6-10 54% 8% 11-15 2% 8% 16-20 21-100 100+
Base: 131 respondents
Highland Aberdeen & Aberdeenshire
5% 7% 7% Less than 1 weekly 21% Less than 1 weekly 35% 3% 1-5 1-5 7% 6-10 13% 6-10 8% 63% 11-15 11-15 16-20 9% 6% 16-20 13% 21-100 21-100 100+ 100+ 3%
Base: 73 respondents Base: 68 respondents
Moray Perthshire
19% Less than 1 weekly 8% Less than 1 weekly 32% 12% 1-5 1-5 6% 8% 6-10 50% 6-10 16% 11-15 11-15 9% 16-20 13% 16-20 9% 9% 5% 4% 21-100 21-100 100+ 100+
Base: 32 respondents Base: 24 respondents
It is apparent from the analysis of this question how many more journeys are used for commuting on this road, compared to the A9. More than 20 journeys per week are undertaken on this road by over a third of respondents in the Aberdeen and Aberdeenshire area for commuting, the majority of which have indicated more than 100 trips per week for this purpose.
In Moray, nearly a third of respondents are making more than 100 trips per week for commuting.
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Q11. What, if any, freight do you transport via the A9 or A96? Please specify any high- value and/ or time-critical products, and where these are transported from and to. Please estimate, if possible, the value of this freight per movement.
A wide range of freight was identified in the responses, including:
Materials associated with the oil and gas industry Whisky Manufactured food Seafood Construction materials Agricultural Animal feed Timber Textiles Pharmaceuticals Chemicals Fuel Road salt Waste Vehicles Carbon fibres Newspapers Legal documents Glass Other manufactured products
The time-criticality of these movements was particularly evident in the oil and gas and food and drink sectors, and for deliveries of medical drugs and retail. Equipment can be urgently required by clients to maintain offshore oil and gas production. Very high-value movements were identified, especially (again) in the oil and gas (£250,000) and food and drink sectors (up to £375,000), and also in the textiles sector (£1m), carbon fibres (£300,000) and construction (£200,000).
An issue which was noted by a number of companies in the Highlands is the surcharges which they may face for supplies given the greater journey times and unreliability of journeys.
Oil & Gas materials of varying values but all usually time critical to meet vessel mobilisation times. Vessel costs are extremely high and delays caused by poor infrastructure are costly. (oil and gas company 1, Aberdeen)
We often transport time critical equipment on the A96 for delivery to the oil rigs in Nigg and Invergordon. (oil and gas company 2, Aberdeen)
High value oilfield equipment. Can be up to 12 trucks a day coming into our facility to pick up and deliver from these locations mentioned. Frequently rush jobs. (oil and gas company 3, Aberdeen)
We occasionally transport oversized fabrications which have to go at off peak times with police escorts. (oil and gas company 4 and food and drink company 1, Rothes)
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All spirit is time-critical. (food and drink company 2, Scotland)
All goods are time critical, either to meet customers delivery times or meet shipment deadlines for export (£6m). (food and drink company 3, Elgin)
High value cashmere and fine woollens from Elgin to customer. Cashmere and other fibres to Elgin from abroad and from external storage. (textiles company 1, Elgin)
Most are critical because they are parts for repair and maintenance of our machinery. No stock of spares are held here in Inverness unless we stock them ourselves. This costs us up to £10 thousand pounds in tied up money just to hold vital spares. A late delivery can cost us hundreds of pounds in staff not able to work and machinery (HP payments) of £1000 a week. Any delay is expensive we also have to pay premium delivery charges to Inverness (North of Perth) apparently because of the distance and time! These deliveries mostly come from England, Sweden, Denmark and Germany and then get stuck in Perth!! (forestry, Inverness)
International courier shipments sent and received, all time critical. (ICT company, Aviemore)
Imported consignments time critical, taken into stock and turned around and back out asap. Distributed across the Scotland/UK separately to retail customers and in bulk to wholesale customers. (retail company 1, Inverness)
Q12. How important are each of the following factors for your business/ organisation in the north of Scotland, where 1 represents ‘very important’ and 5 is ‘not at all important’?
1 2 3 4 5
Access to customers 64% 11% 10% 3% 12%
Access to suppliers 41% 15% 20% 11% 13%
Access to skilled workforce 53% 15% 10% 10% 12%
Quality of road transport 57% 22% 8% 4% 9% infrastructure Quality of telecoms 69% 9% 7% 3% 12% infrastructure
Range/ quality of rail services 27% 24% 23% 12% 14%
Range/ quality of air services 32% 21% 21% 13% 13%
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How important are these factors (Average ratings when ranked 1-5)
5
4 1 is 'very important' and 5 is 'not at all important'
3
2
2.56 2.63 2.15 2.40 1 1.78 1.86 1.89
0 (a) (b) (c) (d) (e) (f) (g) Base: 183 respondents (a) Quality of telecoms infrastructure (b) Quality of road transport infrastructure (c) Access to customers (d) Access to skilled workforce (e) Access to suppliers (f) Range/ quality of air services (g) Range/ quality of rail services
It is evident from the above that all of these factors are notably important to businesses. Only a small percentage of respondents ranked them as ‘not at all important’.
A geographic analysis of this question does not show any huge variances on the Scotland- wide results. However, it is worth noting that Highland companies gave higher rankings to all factors and respondents from the Aberdeen and Aberdeenshire area showed a similar pattern. In particular, Aberdeen and Aberdeenshire respondents ranked ‘Access to skilled workforce’ with higher importance than other areas. Businesses in Moray also ranked this factor as more important than Scotland-wide. 87% of business in Moray ranked the ‘Quality of road infrastructure’ as a 1 or 2, i.e. very important or important, higher than any other areas. Perthshire was 84%, Highland 82% and Aberdeen and Aberdeenshire 80%. The Scotland-wide figure was 79%.
A number of companies explained their ratings and/ or made extra comments.
The importance of accessibility (to customers, suppliers etc) was reinforced.
While a number of companies commented that the rail system was inappropriate for their business, others commented on the need to improve rail infrastructure, including rolling stock and wi-fi provision, and the potential for some more rail freight movements. Some companies in the Highlands commented on the importance of maintaining and improving air connectivity, particularly via Inverness Airport.
The need to improve broadband and mobile connectivity was also mentioned.
Energy supply infrastructure was highlighted by one Highland manufacturer.
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Q13. How would you rate your present business location(s) in the north of Scotland for each of these factors, where 1 represents ‘very good’ and 5 is ‘very poor’.
1 2 3 4 5
Access to customers 24% 24% 30% 14% 8%
Access to suppliers 11% 22% 42% 15% 10%
Access to skilled workforce 14% 24% 44% 12% 6%
Quality of road transport 4% 13% 37% 28% 18% infrastructure Quality of telecoms 7% 26% 36% 20% 11% infrastructure
Range/ quality of rail services 5% 17% 41% 24% 13%
Range/ quality of air services 3% 22% 44% 19% 12%
How you rate your present business location (Average ratings when ranked 1-5)
5 1 is 'very good', 3 is 'acceptable' and 5 is 'very poor'
4
3
2 3.44 2.92 3.01 3.15 3.22 2.56 2.70 1
0 (a) (b) (c) (d) (e) (f) (g)
Base: 176 respondents (a) Access to customers (b) Access to skilled workforce (c) Access to suppliers (d) Quality of telecoms infrastructure (e) Range/ quality of air services (f) Range/ quality of rail services (g) Quality of road transport infrastructure
The Scotland-wide results show that almost half of respondents ranked ‘Access to customers’ as either good or very good, only 8% was very poor. Conversely, the ‘Quality of road transport infrastructure’ was ranked as poor or very poor by 46% and only 17% ranked this as good or very good. Regionally, an even higher proportion (53% Moray, 52% Aberdeen and Aberdeenshire, and 51% Perthshire) ranked this as poor or very poor. Of Highland companies, 43% ranked this as poor or very poor, with 18% ranking this as good or very good.
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Other regional results are very similar although Aberdeen and Aberdeenshire respondents ranked ‘Access to customers’ and ‘Access to suppliers’ better than Scotland-wide and Highland. Companies in Moray ranked ‘Range/ quality of rail services’ and also ‘Range/ quality of air services’ poorer than all other areas.
Additional Comments
The quality of infrastructure generally in the North of Scotland is a source of frustration for a number of companies. On road infrastructure specifically, as well as the A9 and the A96, the A95 was referenced by some companies based in Moray.
Road infrastructure lags business and residential development. Given ongoing volumes of freight and human resource to support the largest economic contributor to this region, the supporting investment in road infrastructure appears inadequate. Rail transportation can represent a more cost effective and cleaner alternative, but currently no linkages from rural commuting corridors nor to the port facilities where bulk freight is transported from. (oil and gas company 5, Aberdeen)
A9, A96 and A95 freight is often inhibited due to congestion from volume, slow moving freight / tourism and closures due to accidents / weather are disruptive. East coast alternative is expensive. (food and drink company 2, Scotland)
A number of companies – especially SMEs - commented on the higher costs of doing business in the Highlands and Islands. These include the costs of air services to the islands, and, more generally, the costs of freight and courier services.
We are charged a premium to use courier services because of our postcode so getting products to customers is expensive and we cannot be competitive, also many suppliers charge a delivery fee for Highlands and Islands as they class Inverness as not mainland which I find infuriating and therefore we do not purchase from some companies because of this additional cost, in some cases it is £75 for products to come to Inverness and they insist you take a full pallet! (retail company 2, Inverness)
Unless journey times improve and freight costs come down, we'll have to choice but to relocate further south. The Highlands surcharge and extra delays over supplies arriving is having a detrimental effect on our business. (creative industries, Broadford)
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PERCEPTIONS OF THE EXISTING ROADS
Q14. For the A9 (between Perth and Inverness), please rate its current standards for the following factors on a scale of 1 to 5 where 1 is ‘very good’, 3 is ‘acceptable’ and 5 is ‘very poor’.
1 2 3 4 5
Journey time 2% 8% 35% 40% 15%
Journey time reliability 2% 11% 28% 37% 22%
Safety 3% 6% 21% 39% 31%
Comfort/ feeling of ease 1% 15% 31% 36% 17% when driving
Lay by provision 4% 22% 51% 20% 3%
Service area availability 3% 8% 22% 37% 30%
Perceptions of current standards of A9 (Average ratings when ranked 1-5)
5 5 is 'very poor' , 3 is 'acceptable' ,and 1 is 'very good'
4
3
3.89 2 3.82 3.80 3.57 3.52 2.96 1
0 (a) (b) (c) (d) (e) (f)
Base: 161 respondents (a) Safety (b) Service area availability (c) Journey time reliability (d) Journey time (e) Comfort/ feeling of ease when driving (f) Lay by provision
It is apparent from the above that perceptions of the current standards of the A9 are largely poor. Well over half of respondents rated it as poor or very poor on ‘Safety’, ‘Service area availability’, ‘Journey time reliability’, ‘Journey time’, and ‘Comfort/ feel of ease when driving’, 70% for ‘Safety’, including nearly a third for very poor.
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Regionally, perceptions from Highland respondents are slightly poorer than Scotland-wide, particularly for ‘Journey time’, ‘Journey time reliability’ and ‘Service area availability’.
The largest regional difference appears to be from Perthshire companies. With the exception of one company ranking ‘Lay by provision’ as very good, no other factors were given a ranking of 1 by these companies. The current standards of all other factors were ranked much poorer than any other area. In particular, ‘Journey time’, ‘Comfort/ feeling of ease when driving’ were ranked poorer, with 79% and 70% respectively, ranking as either poor or very poor. ‘Service area availability’ was ranked as poor or very poor by a substantial 82% of companies in the Moray area, even higher than Perthshire companies (79%).
Of those companies which provided additional comments, many mentioned safety as a key issue. The main reasons are frustration, caused by traffic convoying behind slower moving lorries and limited overtaking opportunities, and confusion created by the mix of dual- carriageway, 2+1 lanes and single carriageway, which can be especially baffling for visitors to Scotland and even for regular travellers on the road.
The A9 as a trunk road operates poorly as traffic is convoyed behind lorries and generally travel at an average speed below the 60 MPH limit. This causes frustration leading to speeding therefore creating traffic offences and road traffic accidents. Lorries generally drive responsibly but limitations on overtaking lanes, lay byes, rest areas to accommodate commercial and tourist traffic all add to the delays, frustration and general dissatisfaction with these roads and costs to business. (food and drink company 4, Angus)
The road between Pitlochry and Perth is the most challenging in terms of journey time and reliability particularly in the summer months with increased traffic, caravans and camper vans. (food and drink company 5, Miltonduff)
I have never understood why the A9 was not originally constructed as a dual-carriageway. The long flowing curves would be great for speed on a dual carriage way but as a single carriageway it makes for long queues of traffic unable to safely pass slower traffic. In my opinion the road should be dual carriageway with a 70 mph speed limit. I further think there should be more service areas. (food and drink company 6, Portree)
The worst thing, especially for our clients, who are tourists, is the amount of times that the road changes from single carriageway to dual carriageway and back. This is also the most dangerous aspect of the A9. Work should focus on extending the existing dualled stretches, rather than introducing new stretches of dualled road, bound in by single carriageway. (tourism company 1, Aviemore)
Of those companies which provided additional comments, a small number said that drivers rather than the road were the problem, that average speed cameras would address some of the problems and/ or that the investment priority should be rail.
Opinions were split on the need for more service areas. Some companies mentioned a shortage of them for the length of journey and/ or suggested that a lack of 24 hour opening facilities is a problem, others were concerned that further service areas on the road itself would reduce business in the towns and villages next to the route.
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Q15. For the A96 (between Inverurie and Inverness), please rate its current standards for the following factors on a scale of 1 to 5 where 1 is ‘very good’, 3 is ‘acceptable’ and 5 is ‘very poor’.
1 2 3 4 5
Journey time 2% 4% 19% 37% 38%
Journey time reliability 2% 5% 16% 33% 44%
Safety 2% 6% 20% 39% 33%
Comfort/ feeling of ease 2% 6% 27% 38% 27% when driving
Lay by provision 1% 14% 39% 34% 12%
Service area availability 3% 10% 27% 35% 25%
Perceptions of current standards of A96 (Average ratings when ranked 1-5)
5 5 is 'very poor', 3 is 'acceptable' ,and 1 is 'very good'
4
3
4.10 4.05 3.94 3.81 2 3.69 3.42
1
0 (a) (b) (c) (d) (e) (f)
Base: 153 respondents (a) Journey time reliability (b) Journey time (c) Safety (d) Comfort/ feeling of ease when driving (e) Service area availability (f) Lay by provision
Similar to the A9, perceptions of the A96 are also largely poor, with three quarters of respondents rating ‘Journey time reliability’, ‘Journey time’ and ‘Safety’ as poor or very poor. Two thirds rated ‘Comfort/ feeling of ease when driving’, and 60% rated ‘Service area availability’ as poor or very poor.
Three quarters of all respondents ranked ‘Journey time’ as poor or very poor, the same as Aberdeen and Aberdeenshire when analysed at a regional level. However, respondents in other areas ranked ‘Journey time’ even less positively, with a substantial 91% of companies in Perthshire ranking this as poor or very poor, 87% in Moray and 76% in Highland.
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‘Journey time reliability’ was similar, with 77% of all respondents ranking this as poor or very poor. Regionally, a much higher proportion of companies in the Moray area ranked this factor as poor or very poor (89%), similar to Perthshire (87%). Aberdeen and Aberdeenshire was also ranked poorer than Scotland-wide (80%).
Of those companies which provided additional comments, many stated that the road had been starved of investment for many years and that it is of a very poor standard for a major arterial route between cities and serving an important economic area.
Northwest of Aberdeen offers many opportunities for commercial and residential expansion. The A96 is not fit for purpose as a link between the Energy Capital and the Highland Capital. (business services company 1, Aberdeen)
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IMPACT OF EXISTING STANDARDS OF YOUR BUSINESS/ ORGANISATION
Q16. How big an issue is each of the following for your business/ organisation in using the A9 (between Perth and Inverness)? Please rate from 1 to 5, where 1 is ‘not an issue’ and 5 is ‘a very significant issue’.
1 2 3 4 5 Reduced productivity due to congestion 24% 13% 20% 26% 17% or slow traffic on route Additional transport costs due to 24% 9% 27% 19% 21% congestion or slow traffic on route Costs of disruption due to road closures/ 19% 16% 24% 22% 19% diversions Missed meetings/ transport connections 21% 13% 28% 26% 12% due to unreliable journey time
Delays to time-critical freight 43% 8% 23% 16% 10%
Reduced opportunities to access 29% 16% 27% 14% 14% domestic markets
Reduced export opportunities 58% 11% 14% 9% 8%
Missed or reduced inward investment 42% 13% 25% 10% 10% opportunities
Poorer links with your suppliers 22% 15% 21% 27% 15%
Difficulty in attracting customers 28% 15% 23% 15% 19%
Difficulties with staff travel/ commuting 34% 11% 24% 15% 16%
The above shows some very mixed views on these issues at a Scotland-wide level. Some respondents obviously see certain issues as very significant.
At a regional level, a number of the above appear to be more of an issue to Highland, Moray and Perthshire respondents. In particular ‘Difficulty in attracting customers’ is ranked as a significant or very significant issue by 52% of Perthshire respondents, 45% Moray and 44% Highland, compared to only 34% Scotland-wide. ‘Reduced productivity due to congestion or low traffic on route’ is similar, with just over half (52%) of respondents in both Highland and Moray ranking this as a significant or very significant issue, and 48% of Perthshire respondents – 43% is the comparable figure for Scotland-wide.
‘Difficulty with staff travel/ commuting’ is a bigger issue for Moray and Perthshire, with 46% and 44% respectively, citing this as a significant or very significant issue. Aberdeen and Aberdeenshire also ranked this as a bigger issue (36%), compared to 34% in Highland and 31% Scotland-wide.
For Perthshire respondents, ‘Poorer links with your suppliers’ is cited as a significant or very significant issue by a significant 60% of respondents in the area. This compares to 53% in Moray, 44% in Highland, 42% Scotland-wide and 36% in Aberdeen and Aberdeenshire.
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How big an issue are these factors on the A9 (Average ratings when ranked 1-5)
5 1 is 'not an issue' and 5 is 'a very significant issue'
4
3
2 3.06 3.05 2.99 2.96 2.96 2.82 2.68 2.67 2.42 2.34 1 1.96
0 (a) (b) (c) (d) (e) (f) (g) (h) (i) (j) (k)
Base: 161 respondents (a) Costs of disruption due to road closures/ diversions (b) Additional transport costs due to congestion or slow traffic on route (c) Reduced productivity due to congestion or slow traffic on route (d) Missed meetings/ transport connections due to unreliable journey time (e) Poorer links with your suppliers (f) Difficulty in attracting customers (g) Difficulty with staff travel/ commuting (h) Reduced opportunities to access domestic markets (i) Delays to time-critical freight (j) Missed or reduced inward investment opportunities (k) Reduced export opportunities
Additional Comments
Many companies commented that the A9 is dangerous and slow and unreliable in journey times, with slow-moving freight and agricultural vehicles and limited opportunities for overtaking leading to tailgating and risky manoeuvres and a lack of diversion routes at times of disruption. Its poor standard has a negative impact on these businesses in practical terms, for example reduced productivity, visitors not arriving at their accommodation, additional costs of freight movements and the difficulty in managing HGV driver hours. A key perception issue for the Highlands was also highlighted of relative remoteness and inaccessibility which can make it harder to attract inward investment and visitors to areas throughout the wider region.
Virtually all our raw materials and finished goods are travelling via the A9 and therefore it is a critical road for us. The travel time of 3 hours+ to cover 120 miles is ridiculous as a starting point and this increases significantly due to continual works. Due to potential issues with delayed incoming deliveries, we have needed to evolve a system of holding buffer stock, so as not to "let down" our key customers. On average we are holding approx 20K pallets of raw materials which has obviously got huge cost implications for the Company. (food and drink company 7, Aberlour)
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If there is an accident or the road is closed sometimes we do not get a scheduled delivery as it so delayed the drivers have run out of hours or they are sent on a massive 120 mile detour. (retail company 2, Inverness)
Transport delays between Ballindalloch and Blackford can lead to missed stock deliveries, leading to missing customer delivery slots. (food and drink company 8, Blackford)
Less tourists visiting due to roads. Higher costs for me to get stock due to state of road. (tourism company 2, Strathpeffer)
People are less inclined to visit our hotel and amenities as it is a challenge to make the journey and is very difficult indeed to achieve by public transport. (tourism company 3, Ullapool)
For our members it is the travel time to get anywhere for meetings, the transport of freight, the perception we are so far away from a customer point of view and inward investment because of the journey times. (business services company 2, Caithness)
Our HGV fleet has difficulty making the round trip North - South within the allotted driver hours. This is exacerbated in the winter with adverse weather and summer with increased traffic flow and lack of overtaking opportunities when in slow moving traffic. (food and drink company 5, Miltonduff)
HGVs can only travel at 40mph on the two lane sections, and traffic building up behind HGVs with minimum passing places. The sections of road go from two way to dual too often and is very misleading without adequate signage. The signage needs to be improved to ensure drivers do not over take thinking they are on a dual carriageway. The speed limits for HGVs could safely be increased. (transport company 1, Corpach)
If there is an 'incident' on the road which is not on a section of dual carriageway or easy diversionary route our customers simply don't get here. Snow clearance is hit and miss so putting guests off travelling in winter. (tourism company 4, Tomatin)
Attracting the out of season groups is vital to employment and the more we can entice up from England the better for staff and the local economy as they are here to spend. It will help encourage people to travel for weekend breaks as well. (tourism company 5, Inverness)
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Q17. How big an issue is each of the following for your business/ organisation in using the A96 (between Inverurie and Inverness)? Please rate from 1 to 5, where 1 is ‘not an issue’ and 5 is ‘a very significant issue’.
1 2 3 4 5 Reduced productivity due to congestion 21% 16% 17% 25% 21% or slow traffic on route Additional transport costs due to 21% 16% 17% 24% 22% congestion or slow traffic on route Costs of disruption due to road closures/ 17% 19% 22% 24% 18% diversions Missed meetings/ transport connections 20% 15% 23% 25% 17% due to unreliable journey time
Delays to time-critical freight 39% 16% 23% 14% 8%
Reduced opportunities to access 30% 15% 28% 15% 11% domestic markets
Reduced export opportunities 52% 13% 19% 8% 8%
Missed or reduced inward investment 38% 17% 23% 13% 9% opportunities
Poorer links with your suppliers 23% 19% 28% 17% 13%
Difficulty in attracting customers 26% 21% 26% 13% 14%
Difficulties with staff travel/ commuting 29% 11% 22% 18% 20%
When compared to Q16, this question on the A96 shows there are a greater number of businesses ranking the above as more of an issue than the same options relating to the A9.
It is maybe not surprising to learn that the results from Aberdeen and Aberdeenshire, and Moray companies are larger still. In particular, ‘Additional transport costs due to congestion or slow traffic on route’ is ranked as a significant or very significant issue by 59% of Aberdeen and Aberdeenshire respondents and 58% in Moray, compared to 46% from Scotland. Similarly, ‘Reduced productivity due to congestion or slow traffic on route’ is 57% for Aberdeen and Aberdeenshire, 56% for Moray, compared to 46% Scotland-wide. ‘Difficulties with staff travel/ commuting’ is also a more significant issue to Aberdeen and Aberdeenshire, Moray and Perthshire – 48%, 53%, and 50%, compared to 38% from Scotland.
Results from Highland companies are largely similar to that of Scotland-wide respondents, although worth noting that ‘Difficulty in attracting customers’ seems to be more of an issue.
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How big an issue are these factors on the A96 (Average ratings when ranked 1-5)
5
1 is 'not an issue' and 5 is 'a very significant issue' 4
3
2 3.10 3.07 3.06 3.03 2.88 2.79 2.68 2.64 2.40 2.36 1 2.06
0 (a) (b) (c) (d) (e) (f) (g) (h) (i) (j) (k)
Base: 149 respondents
(a) Additional transport costs due to congestion or slow traffic on route (b) Reduced productivity due to congestion or slow traffic on route (c) Costs of disruption due to road closures/ diversions (d) Missed meetings/ transport connections due to unreliable journey time (e) Difficulty with staff travel/ commuting (f) Poorer links with your suppliers (g) Difficulty in attracting customers (h) Reduced opportunities to access domestic markets (i) Missed or reduced inward investment opportunities (j) Delays to time-critical freight (k) Reduced export opportunities
Additional Comments
Many companies commented that the A96 is dangerous, congested especially at peak times, slow in journey times and inefficient for its traffic volumes including freights. In short, it is not of a good enough standard for the main route between two of Scotland’s cities. Its poor standard has a negative impact on these businesses.
The A96 is not fit for purpose for industry in any shape or form. The journey time, safety, road conditions, service areas all lead to a really frustrating journey for all using this road and unacceptable in this day and age. (oil and gas company 6, Inverness)
The A9 and A96 must be the most embarrassing roads in Scotland, SRS regularly utilise roads in Europe and the A9 and A96 are far behind anything available there. (oil and gas company 7, Invergordon)
Oil/gas companies based in Aberdeen view the A96 as a very dangerous road and often won't let their staff travel it for meetings so we have to go to Aberdeen and take the time/safety hits ourselves. The poor connection has reduced our chances of winning Aberdeen based work. Upgrade of this road should be accelerated if possible. (business services company 3, Tain)
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This is a dangerous road due to frustration. If we go to Aberdeen for emergency parts it is a whole day there and back and again due to the stress drivers often have to take the following day off because they are exhausted. The only way around this is to hold more spares and that costs us £10 thousand for basic spares just lying in stock. (forestry, Inverness)
Staff cannot predict journey times especially in poorer weather, safety concerns for our staff using this road, we video conference when we can and rail can be an alternative but not really for shorter or multiple location trips. (financial services, Aberdeen)
Around 30% of our local traffic delivering and collecting material from our distilleries and maturation sites, circa 450 trips per week, transits the A96 as part of the journey, mainly between Elgin and Forres. This can be problematic particularly transiting through Elgin. (food and drink company 5, Miltonduff)
Ridiculously slow journey times from Inverness to Aberdeen inhibit our ability to target day visitors into Highlands and for us to provide activities in Aberdeenshire without incurring overnight costs. (tourism company 6, Inverness)
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Q18. Does your business/ organisation make allowances for the above constraints?
Response Yes 65% No 35% Base: 159 respondents
Many businesses mentioned that they allow for additional time to allow for the unreliability of journey times. This may lead to additional costs, reduced productivity and missed opportunities to win business. Quality of life for employees may be affected by earlier starts and later finishes. Some also look for alternative routes.
Additional time planned in for journeys which reduces productivity and increases costs. Overnight stays to avoid missed or delayed meetings engenders higher costs. (business services company 4, Inverness)
Allows more time leading to additional cost of haulage to the business and the customer. We actually regularly take longer mile diversions on lesser quality roads to avoid extremely slow journey times. (minerals company 1, Scotland)
Use of additional vehicles to cope with longer delivery times, and/or use of overtime to allow same volume of freight to be delivered with less vehicles ... Either way, increased costs to our business. The use of alternative routes is not always possible, but when available, they are usually much longer and much slower. (minerals company 2, Aberdeen)
The business has to artificially level out transport costs in order to keep returns to growers equitable. A highland producer has more input costs than those nearer to central locations from where essential inputs e.g. fertiliser, agro chemicals, input seed, livestock feeds etc are produced or distributed. (food and drink company 4, Angus)
We have to allow more time to hit deadlines when using the A9 or A96 corridor. However we see no financial benefit as our loads are paid on a per mile basis. (transport company 2, Stirling)
We make up to 13 multi drop deliveries in Aberdeenshire. On a good day these can be done within 8 hours on a bad day can take 13 hours and missing our customers closing times. (food and drink company 9, Craigellachie)
Vessels don't sail on time! (transport company 3, Peterhead)
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Q19. Thinking of your own business development plans and opportunities, please describe the main benefits of dualling the A9.
The north of Scotland has a number of key sectors which are expected to grow strongly over the next 20 years. Many businesses, especially from the tourism, food and drink, creative industries, transport, energy and construction sectors, said in response to this question that the proposed improvements to the A9 would support their growth plans. The following benefits were identified by a range of companies:
1. Improved access for visitors and customers 2. Productivity gains from reduced journey times and less stressful journeys 3. Safer journeys for visitors and staff, with fewer significant disruptions 4. Widen range of potential suppliers, faster deliveries and possibly lower costs 5. More efficient and reliable road haulage, with reduced vehicle repair costs
The north of Scotland is at the heart of the country’s tourism offering and tourism is especially important to the economies of rural and remote areas of the north of Scotland. Many companies from the sector commented that fully dualling the A9 between Perth and Inverness would improve the accessibility of the wider region.
The majority [of our customers] are travelling from south of Perth, especially foreign groups who cannot get into Inverness, so always come up through the Central Belt. The A9 is a terrible way to start their holiday because even if there are no delays, it is frustrating and dangerous for them as they can be easily confused and are often getting tired at the end of their journey. It would make for safer travel thereby allowing less warnings to our customers about timings and delays. I have to point them to Traffic Scotland etc and that is not a very positive move when trying to attract customers to the region. (tourism company 7, Nethy Bridge)
More attractive to come North of Perth with safer and more efficient road network whether that be groups from the South of England or even just central belt weekend leisure break guests. It is a win-win for everyone and they might even venture further north as they won't have the monotony of the undualled A9 to look forward to if going in the opposite direction. (tourism company 5, Inverness)
Having safer, quicker and more reliable access to the Cairngorms from the Central Belt would allow significant development, and would very quickly bring forward my investment program to take advantage of a larger customer base. (tourism company 8, Carrbridge)
A safer and easier to understand road for tourists to travel north on. Also, less likelihood of the whole road being closed if there is an accident, which can lead to very long diversions of up to 5 hours, causing huge travel problems for anyone caught up in it. (tourism company 9, Aviemore)
Easier access to the Cairngorms means more customers for us. (tourism company 10, Aviemore)
Could make it easier for customers from Central Belt to come to the Highlands for short breaks. (tourism company 11, Newtonmore)
Increase in visitors to the North of Scotland and onwards to the Northern Isles. (transport company 4, Orkney)
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Easier, safer and faster access for potential customers travelling to/from the Highlands. (transport company 5, Glasgow)
The food and drink sector in the region has experienced strong growth in recent years, with businesses implementing long-term investment plans to meet projection of increasing export demand, particularly from emerging markets. A number of companies from the sector commented on the benefits of upgrading the A9. Given the location of many food and drink companies in Moray, the need to improve the A96 as well as the A9 was highlighted by some as important for their connectivity.
An improved road infrastructure would improve journey times and safety for freight movements and car travel resulting in supporting improved business efficiencies. (food and drink company 10, Glasgow)
For our business, the two roads are the main link south and as such, ought to be of a suitable standard both for business and private travel. As mentioned earlier, we have had to develop internal company operational procedures to cope with our geographical location and the transport infrastructure. (food and drink company 7, Aberlour)
Improved journey times allowing us to complete round trips within the working day. We are currently building warehouses in the South of Scotland to minimise reduce future transport requirements. (food and drink company 5, Miltonduff)
The perception of some that the Highlands is relatively inaccessible was mentioned by a number of companies as a barrier to growing their business and inward investment in the region. Fully dualling the road network between Inverness and Scotland’s other cities would address this perception and increase investment.
Increased attractiveness of Inverness & North Scotland as business environment, reliability of journey time and reduced perception of distance from south. Therefore, greater inward investment. (food and drink company 11, Forres)
A number of companies commented that the improvements would enhance their prospects for securing business from outwith the region. Companies elsewhere in Scotland also commented that they would do more business in the north of Scotland.
We must not underestimate the impact on current and potential client confidence that results from unreliable journey times and risks to time-critical freight. These directly impact our ability to engage with clients in other parts of Scotland and elsewhere. (business services company 5, Wester Ross)
Clients may be more likely to drive away from the big cities and towards Inverness in search of quality legal, property and financial advice. (business services company 6, Inverness)
Customer / regional office / transportation hub access. (oil and gas company 8, Inverness)
Whilst we only do a limited amount of business in the Inverness area, we recognise that the city is growing and this may in future produce new market opportunities. Improved transport links should have a positive impact on market access. (oil and gas company 9, Perth)
Enabling us to operate much more effectively and efficiently across the Highland and Islands, both from our central Scotland base and our Highland campuses. (higher and further education, Stirling)
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Able to offer services to the Highlands whereas we now concentrate our activities south of Perth. (construction company 1, Perth)
Higher fuel costs were identified by a number of companies in the region, including from the haulage industry, as reducing their competitiveness. This is due not only to the higher purchase cost of the fuel, but the greater demands of the roads. One said:
A loaded lorry on a straight flat road uses at least 30% less fuel than a lorry on twisty undulating roads (comparison made between forestry lorries in Sweden and North East of Scotland) multiply that by all the lorries up here in the Highlands and that is a huge amount of diesel that we have to pay for. (forestry, Inverness)
It is possible that improving the standards of the roads would not only address the relative inefficiency of fuel use, but the costs of supplying and buying the fuel:
Fuel sourced at a lower cost from the Grangemouth refinery would be considered for the Inverness market. (fuel distribution, Inverness)
Many construction companies from the region commented on the potential procurement opportunities for industry and jobs from the construction of the road.
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Q20. Thinking of your own business development plans and opportunities, please describe the main benefits of dualling the A96.
The north of Scotland has a number of key sectors which are expected to grow strongly over the next 20 years. Many businesses, especially from the energy, food and drink, tourism, creative industries, retail and construction sectors, commented in response to this question that the proposed improvements to the A96 would support their growth plans. The following benefits were identified by a range of companies:
1. Widen labour market from which to recruit skilled people 2. Improved access for visitors and customers 3. Widen range of potential suppliers (and possibly reduce costs) 4. Productivity gains from less stressful, safer journeys and reduced times 5. More efficient and reliable road haulage
The oil and gas sector is particularly important to the north of Scotland. Recent investment announcements will extend the life of the North Sea until at least 2050. Aberdeen is the Oil and Gas Capital of Europe and has ambition to be an Energy Hub for the Eastern Hemisphere, but it faces resource and cost pressures. Much of the new development in the North Sea will be to the West of Shetland. The Cromarty Firth plays a major role in the oil and gas supply chain and industry in the area has an objective to establish the Inverness- Cromarty Firth area as a new Oil and Gas Hub, which will help to alleviate pressures in Aberdeen. A number of companies commented that dualling the A96 would help to address these opportunities and challenges for the continued long-term success of businesses and the sector.
Easier access between these two main thriving business communities and a greater willingness to travel and make business connections that are paramount in pushing the economy of northern Scotland forward. (business services company 7, Edinburgh, Glasgow, Aberdeen)
The Oil Industry and related services need room to expand and the A96 corridor is a location for this expansion, which will improve trading conditions for our business. (business services company 1, Aberdeen)
More efficient transport links from Aberdeen to key areas in Invergordon and Wick. (oil and gas company 1, Aberdeen)
Ability to obtain urgent parts, able to use alternative suppliers and delivery points, reduced delivery times, possibility of developing new premises in lower cost areas and bringing employment to area. Ease of travel and better catchment area for staff. (oil and gas company 10, Aberdeen)
We can increase our viability to potential customers in the Inverness area. (oil and gas company 11, Aberdeen)
Significant removal of potential customer barriers and it will increase our proportion if work coming from the oil/gas sector. (business services company 3, Tain)
Low levels of unemployment and the ability of the oil and gas sector to attract skilled people into well-paid jobs can lead to skills shortages for other sectors. Some companies commented that upgrading the A96 would expand their labour markets.
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Encouraging families to relocate out to Huntly whereby bring more skills within reach of our business. (food and drink company 11, Huntly)
This would support the growth of these sectors, as well as improving access to global markets, which would promote further diversification of the economy of the north of Scotland, another key challenge given that oil and gas is a finite resource.
Elgin is a big exporter of traditional Scottish and luxury goods which has the chance to boom with the growth of the middle class BRIC market. Transport links would benefit this and help diversify the North of Scotland’s reliance on energy. North East of Scotland needs to diversify its economy in the next decades and improving road links will help this and maintain favourable trading conditions for our business. (business services company 1, Aberdeen)
The improvements to the A96 would also improve the attractiveness, accessibility and integration of the other major transport infrastructure and gateways in the region.
Better deliveries, more efficient business, attract and handle more cargo/customers. (transport company 3, Peterhead) Fully dualing this route would extend the accessibility of Aberdeen International Airport and make connections more convenient for our passengers. (transport company 6, Aberdeen)
Examples of companies, including some outwith the north of Scotland, for which the upgrade would expand their potential market and widen their labour market, include:
We would undoubtedly spend more time in Inverness seeking opportunities which would ultimately result in creating additional employment. (business services company 8, Aberdeen)
The main benefit would be access to customers between Inverurie and Inverness, from both ends, and improved flexibility of staff working between our Inverness and Aberdeen offices. (business services company 9, Aberdeen)
We could commit to more client meetings in Aberdeen if we could rely on journey times. Our remote location would be less of an issue for prospective clients if we could rely on time- critical freight. (business services company 5, Wester Ross)
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Q21. To what extent do you expect your business/ organisation would experience the following benefits by fully dualling the A9? Please rate from 1 to 5, where 1 is ‘not at all’ and 5 is ‘a great deal’
1 2 3 4 5
Increased sales in the North of Scotland 27% 12% 20% 19% 22%
Increased sales in the rest of Scotland 23% 16% 17% 23% 21%
Increased sales to the rest of the UK 30% 16% 20% 13% 21%
Increased exports 50% 15% 16% 8% 11%
Increased productivity 32% 8% 14% 26% 20%
Reduced transport costs 19% 11% 15% 26% 29%
Reduce risks of your business needing 49% 17% 8% 12% 14% to relocate Improve links between your business 31% 11% 9% 17% 32% locations
Improve access to suppliers 21% 11% 18% 23% 27%
Improve access to domestic market 23% 13% 13% 22% 29%
Enlarge size of labour market 33% 16% 18% 18% 15%
Improved business confidence 19% 11% 17% 26% 27%
Increased attractiveness of area for 19% 8% 12% 22% 39% investment
Improved staff recruitment 31% 13% 15% 21% 20%
The greatest benefits to fully dualling the A9 for Scotland-wide respondents are ‘Increased attractiveness of area for investment’, ‘Reduced transport costs’ and ‘Improved business confidence’.
As might be expected, Highland businesses gave much higher rankings to all of these benefits. ‘Increased attractiveness of area for investment’ received the highest number of top rankings, with almost half (47%) rating as a 5. A further 26% of respondents in the area rated this as a 4. Respondents in Moray showed similar results, 47% ranking as a 5 and 22% as a 4.
‘Improve links between your business locations’ is ranked particularly highly with Moray respondents, 49% ranked with a 5 and a further 26% as a 4. When ratings are averaged, this is a bigger benefit to Moray, Perthshire and Highland businesses compared to Scotland- wide. Similarly, ‘Increased productivity’ is ranked as a bigger benefit for these three key areas.
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Aberdeen and Aberdeenshire results are broadly similar than Scotland-wide, although ‘Improve access to domestic market’, ‘Improve links between your business locations’ and ‘Increased productivity’ all rank slightly higher on average.
Many of these benefits are rated highly by respondents in the Tourism industry. Those which are particularly pronounced are ‘Improved access to domestic market’, ‘Increased attractiveness of area for investment’, ‘Increased sales in the North of Scotland/ rest of Scotland/ and rest of the UK’, and ‘Improved business confidence’.
The key benefits reported by Food and Drink respondents were ‘Improve access to suppliers’, ‘Improve links between your business locations’, and ‘Reduced transport costs’, all ranking especially higher than the overall results.
Benefits of fully dualling the A9 (Average ratings when ranked 1-5)
5 1 is 'not at all' and 5 is 'a great deal'' 4
3
2 3.53 3.36 3.31 3.25 3.22 3.09 3.03 2.96 2.94 2.85 2.78 2.66 2.26 1 2.15
0 (a) (b) (c) (d) (e) (f) (g) (h) (i) (j) (k) (l) (m) (n)
Base: 159 respondents
(a) Increased attractiveness of area for investment (b) Reduced transport costs (c) Improved business confidence (d) Improve access to suppliers (e) Improve access to domestic market (f) Improve links between your business locations (g) Increased sales in the rest of Scotland (h) Increased sales in the North of Scotland (i) Increased productivity (j) Improved staff recruitment (k) Increased sales to the rest of the UK (l) Enlarge size of labour market (m) Reduce risks of your business needing to relocate (n) Increased exports
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Q22. To what extent do you expect your business/ organisation would experience the following benefits by fully dualling the A96? Please rate from 1 to 5, where 1 is ‘not at all’ and 5 is ‘a great deal’
1 2 3 4 5
Increased sales in the North of Scotland 23% 15% 23% 16% 23%
Increased sales in the rest of Scotland 24% 15% 24% 20% 17%
Increased sales to the rest of the UK 33% 18% 23% 10% 16%
Increased exports 50% 13% 20% 9% 8%
Increased productivity 24% 7% 25% 22% 22%
Reduced transport costs 19% 9% 19% 25% 28%
Reduce risks of your business needing 48% 13% 15% 11% 13% to relocate Improve links between your business 29% 7% 19% 15% 30% locations
Improve access to suppliers 22% 13% 23% 22% 20%
Improve access to domestic market 24% 13% 16% 23% 24%
Enlarge size of labour market 27% 9% 22% 20% 22%
Improved business confidence 19% 10% 15% 28% 28%
Increased attractiveness of area for 18% 9% 11% 23% 39% investment
Improved staff recruitment 25% 10% 19% 24% 22%
The greatest benefits to fully dualling the A96 for Scotland-wide respondents are ‘Increased attractiveness of area for investment’, ‘Reduced transport costs’ and ‘Improved business confidence’. These are the same top three benefits specified by respondents for the A9.
The majority of benefits are all ranked higher in the Aberdeen and Aberdeenshire results than Scotland-wide, but again, the top three remain the same. Outwith the top three, ‘Increased productivity’ scored higher, taking it to 4th top benefit for companies in this area. The results are similar for the Moray and Perthshire respondents, with all benefits scoring higher than in Scotland as a whole. For both these areas, ‘Improve links between your business locations’ move up to the 2nd top benefit when compared to Scotland, and ‘Increased productivity’ moves up to 4th position compared to 7th for Scotland.
Highland results are broadly similar, with the same top three benefits, although ‘Improved business confidence’ moves from 3rd to 2nd position. ‘Improved access to suppliers’ is also of greater benefit to businesses in the area, making it the 4th top choice, compared to 8th for Scotland as a whole.
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The benefits to the Tourism industry, which are ranked particularly higher than the overall results, are ‘Increased attractiveness of the area for investment’ and ‘Increased sales in the North of Scotland’.
The majority of respondents from the Food and Drink sector rated ‘Improve access to suppliers’ and ‘Increase attractiveness of area for investment’ as particularly high, and more so than the Scotland-wide results.
Largely in line with the Scotland-wide results, the Oil and Gas sector rated the following benefits highly, ‘Improved business confidence’, ‘’Reduced transport costs’, Increased attractiveness of the area for investment’, and ‘Improved staff recruitment’.
Benefits of fully dualling the A96 (Average ratings when ranked 1-5)
5
1 is 'not at all' and 5 is 'a great deal'' 4
3
2 3.57 3.35 3.34 3.10 3.10 3.09 3.08 3.06 3.01 2.99 2.90 2.58 2.26 1 2.12
0 (a) (b) (c) (d) (e) (f) (g) (h) (i) (j) (k) (l) (m) (n) Base: 145 respondents
(a) Increased attractiveness of area for investment (b) Reduced transport costs (c) Improved business confidence (d) Improve links between your business locations (e) Improve access to domestic market (f) Increased productivity (g) Improved staff recruitment (h) Improve access to suppliers (i) Increased sales in the North of Scotland (j) Enlarge size of labour market (k) Increased sales in the rest of Scotland (l) Increased sales to the rest of the UK (m) Reduce risks of your business needing to relocate (n) Increased exports
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Q23. Additional comments
A number of companies made additional comments.
Some businesses used this opportunity to re-emphasise that they believe that improvements to strategically important road connections in the north of Scotland are overdue and to highlight the potential wider economic benefits of the plans, not only for the North, but for Scotland as whole. Some said that they should be accelerated.
The dualling of the A9 and A96 are critical to companies being able to maximise their opportunities to trade; and with rail and air links not meeting the needs of industry, road links need to be at their best to attract customers and any form of inward investment into the Highlands. (oil and gas company 6, Inverness and Aberdeen)
As one of Scotland's strategic geographically located cities, Inverness should be part of a core spine of outstanding road transport routes linking key business locations. The North of Scotland has significant commercial interests to serve in: oil & gas and renewable energy manufacturing; distilling; water; timber extraction; fish and food production; life sciences; and, of course, tourism. These sectors are all constrained to some extent by limitations on transport and access which, if addressed, could trigger a major adjustment and shift in output leading to a surge in accelerated growth. (construction company 2, Inverness)
We have waited too long for this investment to be undertaken as it would benefit the whole Scottish economy in the long term. (retail company 3, Inverness)
A number of specific comments were made in relation to the tourism and hospitality sector. Some businesses were concerned that small towns on or next to the roads may be bypassed by visitors in the region following the upgrades. An opportunity to rebrand the existing roads as tourism routes was suggested as a potential solution.
Ease of access for our visitor markets using efficient, safe, cost-effective, multi-modal means of transport, including our road network, is crucial to the performance of the hospitality industry in all areas of Scotland, the Highlands and Islands and the north-east. Arguably this is more critical for businesses located in rural areas which form a major component of our tourism product. (tourism company 12, Scotland)
When the present A9 was upgraded a missed opportunity for tourism was well and truly lost. Engineers and planners should ensure the Old A9 road is preserved and used as an alternative route to the Highlands for tourism/ cyclists walkers/ bikers etc. We would then keep connections to small villages alive, do not let them be bypassed again!!! Make the Old A9 road a tourist route from Perth to Inverness and beyond. (tourism company 11, Newtonmore)
There were concerns from the rail haulage sector that the improvements to the A9 and A96 would make the Highland Main Line and the Aberdeen-Inverness Line less competitive and that there is less certainty about the planned upgrades to the lines.
In the view of some companies, as the A96 is a poorer standard road than the A9, it is in particular need of upgrading. There were comments about the need to ensure that the improvements to the A96 are made to the same standard as those to the A9.
A number of companies made comments on the need to upgrade other strategic roads in the north of Scotland. These included the road networks in and around the Aberdeen and
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Inverness city-regions; the A82 in the west Highlands; the A90 between Aberdeen and Peterhead, and the A9 between Inverness and Thurso.
A9/A96 Research | September 2013
Aberdeen | Glasgow | Inverness | London [email protected] | @scdinews | @scdiglobal | www.scdi.org.uk | www.yecscotland.co.uk
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