Employment Land Study 2008

Appendix One THE ECONOMY The Workplace Economy Industrial Structure Broad Sectors 1.1 In 2005, there were approximately 114,200 employee jobs in Doncaster1. 1.2 Figure 1 shows the composition of these jobs by broad sector and compares the structure of employment in Doncaster with neighbouring authorities and the regional average. It shows that the Yorkshire and Humber region differs slightly from the national employment structure as it has a higher proportion of jobs in manufacturing and public administration and a lower share of jobs in other financial business services. The structure of the South Yorkshire economy is similar to the overall regional employment structure. However, Doncaster’s employment structure differs slightly from the average across South Yorkshire as it has a lower proportion of employment in business services and a greater proportion in public administration. Business Services in Doncaster accounts for 9% of total employment, 3% below the sub-regional average. Employment in Public Administration, Education and Health accounts for 31% of employment in Doncaster, 2% more than the Sub-regional average. 1.3 Amongst the districts, Bassetlaw has the highest proportion of manufacturing jobs, accounting for 19% of the district’s total employment. Sheffield has the highest proportion of business services jobs, providing 14% of the total employment. Figure 01 Industrial Structure, 2005 100% 90% 25% 26% 27% 30% 31% 30% 29% 28% 80% 70% 7% 4% 6% 6% 5% 6% 6% 6% 8% 60% 13% 11% 8% 12% 14% 9% 14% 15% 50% 10% 13% 40% 13% 12% 12% 11% 12% 6% 30% 6% 6% 6% 6% 6% 6% 20% 6% 18% 10% 16% 16% 14% 12% 12% 14% 11% 0% Barnsley Doncaster Rotherham Sheffield Bassetlaw South Yorkshire Yorkshire and Great Britain The Humber Agr & Fish En & Wat Manuf Constr Whole Hotel & Cat Retail Bank & Ins Bus Sev Other FBS Trans & Comm Public Admin Other Services Source Annual Business Inquiry 2005 1.4 Table 1 further examines the industrial structure within Doncaster by identifying the activities that can be regarded as Doncaster’s current strengths as they provide more than 500 jobs and the location quotient is greater than or equal to 1.3, thereby 1 Appendix One indicating that the share of employment in this sector in Doncaster is 30% above the national average. Table 01 Location Quotient, 2005 No. of Jobs in LQ Doncaster 20 : Manuf wood/products/cork, etc 665 2.0 25 : Manuf rubber and plastic goods 2,187 2.7 26 : Manuf other non-metallic products 945 2.2 27 : Manuf basic metals 599 1.9 31 : Manuf electrical machinery/apparatus nec 719 1.4 45 : Construction 7,223 1.4 50 : Sale,maintenance/repair motor vehicles 3,881 1.6 60 : Land transport; transport via pipelines 5,034 2.2 85 : Health and social work 18,846 1.4 90 : Sewage/refuse disposal, sanitation, etc 607 1.4 Source Annual Business Inquiry 2005 1.5 With the exception of health and social work these activities tend to be industrial and warehousing activities. The importance of freight distribution is highlighted by the land transport sector, which will include the distribution and logistics activities carried out by B & Q distribution, Next Distribution, Ikea Distribution Centre, Power Logistics, Wincanton Logistics, and ACR Logistics. The over-representation in the manufacture of rubber and plastics products will reflect the presence of Polypipe, the largest plastics manufacturer in Europe, in the borough. 1.6 In contrast, activities which are least represented in Doncaster (i.e. with the lowest LQ’s) are those in the financial and business services sectors, including other business services and financial intermediation. 1.7 Figure 2 (below) shows the location quotient for each of the industries in Doncaster (at 2 digit SIC level) where employment numbers are equal to or greater than 500, plotted against that industry’s national growth rate (1998 -2005). 1.8 Sectors which fall above the horizontal axis have encountered growth in the period 1998-2005. The higher up the scale it lies, the faster the growth has been over the last 7 years. These growing sectors can be subdivided into two groups: i) The north-east quadrant of the graph shows sectors that are over-represented in the local economy. The further to the right the sector lies against the y axis the greater is that sector’s over-representation. The sectors within this quadrant can be divided into two groups namely those that occupy ‘B space’ and sectors which serve local needs such as retail, health and social work and education. ii) The north-west quadrant identifies sectors that have grown nationally but which are under-represented in Doncaster’s economy. The sectors within this quadrant are mainly those classified as financial and business services that occupy office space. 1.9 Sectors which lie below the horizontal axis have been experiencing a decline in employment nationally. Many of these activities are in the manufacturing, wholesale and financial sectors. Most of these sectors are found in the south-east quadrant of the graph, thus indicating that Doncaster tends to have a high proportion of generally declining sectors. 2 Appendix One Figure 02 Industrial Structure and Growth, Doncaster, 1998 - 2005 60% Real Estate Act 40% Support Aux Trans Act Leisure Education Health & Social Work Other Bus Act 20% Other Services Hotels & Restaurant Retail Construction Act of Membership Org Post and Telecommunications Financial Intermediation Land Transport Public Admin 0% Wholesale Sale and Repair of motor 0.0 0.5 1.0Sewage and Refuse 1.5 2.0 2.5 3.0 vehicles Mfg of Wood Mfg of Transport Equipment Mfg of Food & Beverages GB Growth 98 - 05 -20% Mfg of Motor Vehicles Mfg of Fabricated Metal Mfg of Non Metallic Minerals Mfg of furniture Insuance and Pension Funds Mfg of Rubber & Plastics Mfg of Other Mach -40% Mfg of Electrical Mach etc Mfg Basic Metals -60% LQ Source Annual Business Inquiry 1998 and 2005 3 Appendix One 1.10 In summary, despite a prolonged period of restructuring, Doncaster’s industrial structure remains unfavourable in general terms to employment growth, which will adversely affect the demand for business space. The data shows that: many sectors growing nationally are under-represented in the district; many of the sectors declining nationally are over-represented in Doncaster, thereby implying that further reductions in employment in these sectors are likely Knowledge Based Employment. 1.11 Employment in knowledge-based industries is recognised as a key measure of economic competitiveness, which is itself a determinant of current and future prosperity. The thinking behind this view is summarised in a quote from the Government White Paper Our Competitive Future: Building the Knowledge Economy: “In a knowledge-driven economy….the generation and exploitation of knowledge has come to play the predominant part in the creation of wealth. Companies in countries with higher labour costs, such as the UK, therefore have to innovate and adapt continuously to retain their competitive edge.” 1.12 Figure 03 shows employment in knowledge based industries according to the OECD definition.2 Figure 03 Knowledge Based Industries, 2005 18% 1% 16% 1% 2% 14% 1% 1% 3% 1% 12% 1% 1% 10% 2% 1% 8% 1% 0% 12% 1% 12% % of total employment % of total 0% 6% 1% 10% 9% 7% 4% 7% 4% 6% 2% 0% Bassetlaw Barnsley Doncaster Rotherham Sheffield South Yorkshire Y & H GB Hi Tech Manuf FBS Computing Media Communication Source Annual Business Inquiry 2005 1.13 In South Yorkshire, 13% of jobs can be described as ‘knowledge based’ which is identical to the regional average yet below the national average of 17%. 1.14 In Doncaster knowledge-based jobs account for 9% of total employment, which is below the national, regional and sub-regional averages. Of the comparison local authority areas, Sheffield has the highest level of knowledge-based employment (KBE) with some 15% of jobs found in these sectors, in part reflecting the presence 2 OECD – need reference 5 Appendix One of the universities. However, Doncaster’s position is better than that found in Bassetlaw where KBE accounts for less than 6% of all employment. Business Space Occupiers 1.15 In this study we focus on jobs that occupy ‘business space’, compromising of office, warehousing and industrial jobs, jointly referred to as ‘B space’ occupiers. 1.16 To identify these jobs we apply a definition of Industrial, Warehousing and Office occupiers based on sectors from the Standard Industrial Classification (SIC) 2003. Industrial space occupiers consist of manufacturing industries and certain parts of the construction industry, motor repairs/ maintenance and sewage and refuse disposal. Warehousing occupiers are made up from a variety of transport and distribution activities which are widely spread across the Standard Industrial Classification. 1.17 The definition of office occupiers that we use is derived from the ODPM definition (source town centre work), which is also set out in Appendix 1, although we also include public administration activities. We have approximated the SIC sectors as closely as possible at a detailed (4 digit) level. 1.18 The correspondence between sectors and types of space is not perfect and hence our definitions of office and industrial/ warehousing jobs are no more than approximations. But, they are the best approximations, which we have developed through a series of recent employment space studies. 1.19 As Table 2 demonstrates, ‘B space’ employment accounts for 36% of total employment within the District of Doncaster, which is lower than the national average. Employment in Industrial and Warehouse occupiers account for 24% of total jobs, 3% above the national average. Conversely, office-based employment accounts for a modest 12% of jobs, significantly below the national average of 21%.

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