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Future Employment Growth Sectors Study Future Employment Growth Sectors Study LOCAL PLAN SUPPORTING STUDY 2017 18. Future Employment Growth Sectors Study Document Title Future Employment Growth Sectors Study Lead Author Regeneris Purpose of the Study The assessment of trends in employment growth and sectors across the London, West London and local area and recommendations of which sectors are already performing well or growing and those which may wish to move into OPDC area in the future Key outputs • Identifies the future growth sectors within the Old Oak and Park Royal area, and a comparative assessment of their potential contri- bution to economic growth. • Provides insights into the key issues impacting on these sectors, highlighting opportunities and challenges for the growth of these sectors. • Identifies the areas / places within Old Oak and Park Royal which could be attractive to each growth sector. • Suggestions for how policies, strategies, tactical and strategic actions could support future employment, skills development and economic growth. Key recommendations There are a number of growth sectors which could be supported in Old Oak and Park Royal including: • Opportunities to retain, strengthen and diversify existing econom- ic strengths. These are focussed on industrial type activities, in particular food manufacturing, transport, wholesale, logistics and to a lesser extent, motor trade activities. The area also appears to have growing strengths in a range of creative industries. There are opportunities to retain, strengthen and diversify these sectors. • Opportunities to grow, attract and innovate other economic sectors. The nature of development at Old Oak means that future growth is likely to be focused around office uses with key sectors being professional and financial services; and ICT and digital media ser- vices. There are also potential opportunities within the low carbon (including clean tech), advanced manufacturing sectors and med- tech/life-science activities. Key ways to support these fit into 4 broad themes: • Sector Development • Workspace, Infrastructure and Placemaking • Skills and Social Inclusion • Evidence and Strategy Examples of recommended measures include setting up specific networking opportunities and sub-groups; targeted business support; supporting the delivery of flexible and affordable workspace for smaller businesses; links with education providers; and maximising transport and accessibility to and within the OPDC area. Some sectors are better suited to particular locations within OPDC’s boundary so the spatial recommendations also show potential suitable locations. Relations to other studies Interfaces with the Park Royal Atlas, Industrial Land Review and In- dustrial Estates Study Relevant Local Plan • Policy SP5 (Resilient Economy); Policies and Chapters • All Place policies • All employment policies (Chapter 9) –– ODPC Future Growth Sector Employment Study: First Stage Report A Final Report by Regeneris Consulting Old Oak and Park Royal Development Corporation (OPDC) ODPC Future Growth Sector Employment Study: First Stage Report February 2017 Regeneris Consulting Ltd www.regeneris.co.uk ODPC Future Growth Sector Employment Study: First Stage Report Contents Page Executive Summary 1 1. Introduction 17 2. Strategic and Policy Context 20 3. Profiling the Old Oak and Park Royal Economy 39 4. OPDC Opportunity Sectors 61 5. Sector Growth Potential 124 6. Recommendations to Support Sector Development 132 Appendix A - Learning from Elsewhere Appendix B - Detailed Analysis of Employment Forecasts Appendix C - Employment Densities Appendix D - A Note on Geographies Appendix E - Measuring Local Employment Appendix F - Sector Definitions Appendix G - Consultations Undertaken 3 ODPC Future Growth Sector Employment Study: First Stage Report Executive Summary i. Regeneris Consulting was commissioned by the Old Oak and Park Royal Development Corporation (OPDC hereafter) to undertake the Old Oak and Park Royal Future Growth Sectors Employment Study. ii. The objectives of the study are to: • Identify future growth sectors within the Old Oak and Park Royal area, and undertake a comparative assessment of their potential contribution to economic growth. • Provide insights into the key issues impacting on these sectors, highlighting opportunities and challenges for the growth of these sectors. • Identify the areas / places within Old Oak and Park Royal which could be attractive to each growth sector, and consider the critical success factors for these. • Provide evidence and recommendations for policies, strategies, tactical and strategic actions to support future employment, skills development and economic growth. iii. A parallel piece of research has been undertaken examining the feasibility of developing a cleantech cluster in the OPDC area. Policy and Strategic Context iv. Old Oak and Park Royal are identified as Opportunity Areas in the London Plan and the Old Oak and Park Royal Development Corporation (OPDC) has been established as the planning authority responsible for guiding development across the area. v. The Draft Local Plan for OPDC (2016) sets out an aspiration to deliver a minimum of 24,000 homes and 55,000 jobs at Old Oak in addition to protecting, strengthening and intensifying activity within the Park Royal Industrial Estate, creating 10,000 new jobs and 1,500 new homes. vi. The OPDC Industrial Land Review suggests that there is “no limit to the level of demand for space”, with the area hugely attractive to businesses seeking an industrial location close to central London and due to the release of industrial space across London reducing overall capacity . At the highest level, aspirations are set for employment development to be office focused in Old Oak, with Park Royal protected for industrial uses. vii. The London Plan establishes aspirations for future economic growth in London, with a specific focus on securing the position of and growth in the digital and creative, low carbon, and finance and professional service sectors. This aspiration is clearly set out in the London LEP’s London 2036: An Agenda for Jobs and Growth document. Recently, the Mayor published ‘A City for all Londoners’ (2016) which identifies a number of priorities to promote London as a global city, economic fairness and to help spread economic benefits. viii. Sector specific aspirations have also been set more locally – particularly in Hammersmith and Fulham where there are aspirations to develop strengths in tech and innovation focused sectors, building on the opportunity granted by the Imperial West development. The London Sustainable 1 ODPC Future Growth Sector Employment Study: First Stage Report Development Commission (LSDC) have also undertaken initial work which has identified the potential to create a ‘cleantech’ cluster in the OPDC area. ix. It is important to note that the London policy context is rapidly evolving in 2016, in the context of the election of a new Mayor and the result of the EU Referendum. The incumbent Mayor has emphasised that previous sector priorities such as creative industries will continue to be a priority. However, the overarching message is that London is ‘open for business’, and in the short term, the focus is likely to be placed on ensuring London retains its competitive position – across the whole economy. Old Oak and Park Royal: Profiling the Economy x. It is estimated that the Old Oak and Park Royal economy currently employs 43,100 people across around 1,700 businesses, with the majority of this activity located within Park Royal. Park Royal is a significant economic hub within London: it is London’s largest industrial area and performs a vital role in supplying and supporting the London’s economy. xi. The area has experienced strong growth in recent years, with employment growth of 19% (8,300 jobs) since 2009, which is higher than comparator areas. The business base has grown by 18% (350 businesses) over the same period. xii. It is important that Old Oak and Park Royal is not considered in isolation. Reflecting its location within London, the area should be viewed as a constituent part of much wider functional economies. Wider economic factors of particular importance to the OPDC area include proximity to other economic hubs (eg central London to the east, and Heathrow to the west), wider regeneration and development investment taking place across London, major transport investments taking place in the area, and proximity to key economic assets (such as universities and research institutes). xiii. The OPDC area is noticeable for the structure of its business base: while the majority of businesses are micro sized (with around three-quarters of businesses employing between 0 and 4 people), this proportion is low when compared to other areas. Reflecting the nature of the area, there is also a comparatively strong concentration of larger businesses in the area. This is illustrated in Figure 1.2 below. xiv. A detailed analysis has been carried out of the sector profile of the area. This shows that, currently, the largest sectors in the OPDC development area are: wholesale (7,300 jobs); ICT, Media and Creative activities (6,700 jobs); public administration, education and health (6,400 jobs); retail (5,600 jobs); and business support services (5,900 jobs). Combined these five sectors account for 61% of all employment in the area. However, in terms of levels of relative specialisation, the most important sectors in the OPDC development area can be considered to be food manufacturing (4,400 jobs and LQ of 13.5),
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