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Planes, Trains and Automobiles Research Planes,Planes, TrainsTrains andand AutomobilesAutomobiles ResearchResearch December 2009 PRODUCED BY Planes, Trains and Automobiles Research Project Title: Planes, Trains and Automobiles Research Report Title: Project No: 49352112 Report Ref: Status: Final Client Contact Name: Catherine Williams Client Company Name: Derby City Council Issued By: Document Production / Approval Record Issue No: Name Date Position Prepared Kevin Duxbury, November 2009 Project Manager / Regeneration by Daniel Collins and Consultant Joanne Woolmer Checked Kevin Duxbury November 2009 Project Manager by Approved Bob Perkins November 2009 Project Director by Document Revision Record Issue No Date Details of Revisions 1 September 2009 Original issue 2 October 2009 Re-drafted issue 3 November 2009 Re-drafted issue including tasks 5 and 6 4 November 2009 Re-drafted issue including additional analysis (Transport iNet rail database) Derby City Council\49352112 Planes Trains & Automobiles Re\MARP0002/LP/BP Final December 2009 Planes, Trains and Automobiles Research LIMITATION URS Corporation Limited (URS) has prepared this Report for the sole use of Derby City Council , the East Midlands Development Agency and Derbyshire and Nottinghamshire Chamber of Commerce in accordance with the Agreement under which our services were performed. No other warranty, expressed or implied, is made as to the professional advice included in this Report or any other services provided by us. This Report may not be relied upon by any other party without the prior and express written agreement of URS. Copyright © Derby City Council (2009) All rights reserved Derby City Council\49352112 Planes Trains & Automobiles Re\MARP0002/LP/BP Final December 2009 Planes, Trains and Automobiles Research CONTENTS Section Page No 1. EXECUTIVE SUMMARY ................................................................................................. 1 1.1. Introduction....................................................................................................................... 1 1.2. Context and importance of the sectors ............................................................................ 1 1.3. Output and employment contributions of the sectors....................................................... 4 1.4. SWOT analysis summary tables ...................................................................................... 5 1.5. Future prospects of the sectors........................................................................................ 6 1.6. Summary of key qualitative findings................................................................................. 7 2. INTRODUCTION.............................................................................................................. 9 2.1. Background to the study .................................................................................................. 9 2.2. Aims of the research ........................................................................................................ 9 2.3. Method overview ............................................................................................................ 10 2.4. Structure of the report .................................................................................................... 10 3. METHODOLOGICAL ISSUES ...................................................................................... 12 3.1. Defining the aerospace and automotive sectors............................................................ 12 3.2. Defining the rail sector ................................................................................................... 13 3.3. Two definitions of each sector........................................................................................ 13 3.4. Data sources utilised...................................................................................................... 15 3.5. Definition of geographies ............................................................................................... 15 4. QUANTIFYING THE CORE SECTORS ........................................................................ 17 4.1. Overall employment levels ............................................................................................. 17 4.2. Employment concentration............................................................................................. 19 4.3. Turnover by employment banding.................................................................................. 21 4.4. Time series analysis (1998 to 2007) .............................................................................. 22 4.5. Impact of the recession .................................................................................................. 23 5. SUPPLY CHAIN ANALYSIS ......................................................................................... 28 5.1. Intermediate demand ..................................................................................................... 28 5.2. Value of purchases in each sector................................................................................. 29 5.3. Summary........................................................................................................................ 29 6. INTER-RELATIONSHIPS BETWEEN SECTORS ........................................................ 30 6.1. Employee linkages ......................................................................................................... 30 6.2. Supplier linkages............................................................................................................ 32 7. TOTAL ECONOMIC IMPACT........................................................................................ 35 7.1. Definitions of economic impact ...................................................................................... 35 7.2. Using multipliers to assess impact................................................................................. 35 7.3. Total economic impact ................................................................................................... 37 7.4. Summary of total economic impact................................................................................ 39 Derby City Council\49352112 Planes Trains & Automobiles Re\MARP0002/LP/BP Page i December 2009 Final Planes, Trains and Automobiles Research CONTENTS Section Page No 8. INVESTMENT ................................................................................................................ 41 8.1. Planes ............................................................................................................................ 41 8.2. Trains ............................................................................................................................. 43 8.3. Automobiles.................................................................................................................... 44 9. SWOT ANALYSIS ......................................................................................................... 46 9.1. SWOT analysis summary tables .................................................................................... 46 9.2. Planes ............................................................................................................................ 49 9.3. Trains ............................................................................................................................. 55 9.4. Automobiles.................................................................................................................... 60 10. EVALUATING THE OPPORTUNITIES AND THREATS .............................................. 66 10.1. Planes ............................................................................................................................ 66 10.2. Trains ............................................................................................................................. 68 10.3. Automobiles.................................................................................................................... 70 11. KEY ISSUES AND RECOMMENDATIONS .................................................................. 73 11.1. Skills ............................................................................................................................... 73 11.2. Business support............................................................................................................ 76 11.3. Market intelligence, influence and collaboration ............................................................ 77 11.4. Investment, research and development......................................................................... 78 11.5. Summary........................................................................................................................ 80 APPENDIX A - INTERMEDIATE DEMAND TABLES APPENDIX B - VALUE OF PURCHASES TABLES APPENDIX C – LIST OF CONSULTEES Derby City Council\49352112 Planes Trains & Automobiles Re\MARP0002/LP/BP Page ii December 2009 Final Planes, Trains and Automobiles Research 1. EXECUTIVE SUMMARY 1.1. Introduction Derby has a strong industrial base across three complementary transport sectors, namely; Aerospace, Automotive and Rail. Within these sectors are a small number of world-renowned employers. Current strategic planning at city and regional level was formulated before the recent economic downturn. The recession has affected different industrial sectors to a varying
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