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The Environmental Economy of the West Midlands

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The Environmental Economy of the West Midlands FINAL REPORT Advantage West Midlands, the Environment Agency and Regional Partners in the West Midlands The Environmental Economy of the West Midlands January 2001 Reference 6738 This report has been prepared by Environmental Resources Management the trading name of Environmental Resources Management Limited, with all reasonable skill, care and diligence within the terms of the Contract with the client, incorporating our General Terms and Conditions of Business and taking account of the resources devoted to it by agreement with the client. We disclaim any responsibility to the client and others in respect of any matters outside the scope of the above. This report is confidential to the client and we accept no responsibility of whatsoever nature to third parties to whom this report, or any part thereof, is made known. Any such party relies on the report at their own risk. In line with our company environmental policy we purchase paper for our documents only from ISO 14001 certified or EMAS verified manufacturers. This includes paper with the Nordic Environmental Label. CONTENTS EXECUTIVE SUMMARY i 1. INTRODUCTION 1 1.1 LINKAGES BETWEEN ENVIRONMENT AND THE ECONOMY 1 1.2 STUDY AIMS 1 1.3 THE REGIONAL CONTEXT 1 1.4 STRUCTURE OF THIS REPORT 3 2. STUDY SCOPE 4 2.1 ENVIRONMENTAL INDUSTRY 4 2.2 LAND BASED INDUSTRY 4 2.3 CAPITALISING ON A HIGH QUALITY ENVIRONMENT 4 3. ENVIRONMENTAL INDUSTRY 5 3.1 OVERVIEW 5 3.2 BUSINESSES SUPPLYING ENVIRONMENTAL GOODS & SERVICES 5 3.3 ENVIRONMENTAL MANAGEMENT IN INDUSTRY 13 3.4 ENVIRONMENTAL POSTS IN THE PUBLIC SECTOR 14 3.5 ENVIRONMENTAL ACADEMIC INSTITUTIONS 14 3.6 NON-PROFIT MAKING ENVIRONMENTAL ORGANISATIONS 15 3.7 ENVIRONMENTAL CONSERVATION & ENHANCEMENT SECTOR 16 3.8 SUMMARY 18 4. LAND BASED INDUSTRIES 19 4.1 OVERVIEW OF ECONOMIC SIGNIFICANCE 19 4.2 AGRICULTURE 19 4.3 FORESTRY 22 4.4 FISHERIES 24 4.5 GROWTH POTENTIAL 25 4.6 SUMMARY 26 5. CAPITALISING ON A HIGH QUALITY ENVIRONMENT 27 5.1 OVERVIEW 27 5.2 TOURISM BASED ON A HIGH QUALITY ENVIRONMENT 27 5.3 INWARD INVESTMENT 29 5.4 QUALITY OF LIFE 31 5.5 GROWTH POTENTIAL 31 5.6 SUMMARY 32 6. THE WAY FORWARD 33 6.1 ENVIRONMENTAL BUSINESSES 33 6.2 LAND BASED INDUSTRIES 36 6.3 CAPITALISING ON A HIGH QUALITY ENVIRONMENT 37 6.4 THE ENVIRONMENTAL ECONOMY AS A WHOLE 38 Glossary References THE ENVIRONMENTAL ECONOMY OF THE WEST MIDLANDS Executive Summary This report examines the contribution of the environment to the economy of the West Midlands. This part of the economy has not previously been examined in detail, but is increasingly recognised as a core component of a diverse, modern and sustainable regional economy. The study has identified the current extent of this contribution, its potential for growth and recommended actions for achieving this growth. The study has been commissioned by Advantage West Midlands (AWM) and the Environment Agency, working in partnership with a range of regional organisations including the Government Office for West Midlands, the Countryside Agency, Forest Enterprise, the NFU, the Midlands Environmental Business Club, the CBI and the RSPB. The study has been undertaken by Environmental Resources Management (ERM). 1. Linkages between the Environment and Regional Economy: The study focuses on the positive links between the environment and economic development. It highlights the economic significance of sectors involved in environmental protection, as well as the contribution of the environment to quality of life and to the attractiveness of the region as a place in which to live and work. In particular, the study focuses on: · the environmental industry - businesses and organisations which supply environmental goods and services; · environmental improvement activities in manufacturing industry; · environmentally beneficial activities in land based sectors such as agriculture and forestry; · the importance of the environment to tourism and leisure industries; · the role of the environment in helping to attract inward investment and skilled personnel into the region · the contribution of the environment to quality of life in the West Midlands. 2. The Current Position: There are approximately 91,000 people employed in the ‘environmental economy’ of the West Midlands, generating £1,425 million GDP – as outlined in Box 1 overleaf. This represents around 5% of regional employment and 5% of regional GDP. Within this total, businesses supplying environmental technologies and services employ 29,000 people and tourism based upon a high quality environment accounts for 51,000 jobs. This level of employment and GDP contribution highlights the significance of the environment sector to the region’s economy, particularly when compared to employment in other major regional sectors, for example: Rover employs 22,000 in the West Midlands and generates approximately 3% of the region’s GDP, the telecommunications sector employs 34,0001, the transport sector employs 42,000 and the construction industry employs 77,000. The environmental economy is therefore a large and valuable part of the region’s economy. Its importance is not just because of the direct employment and income that it generates, but also because of the environmental and social benefits that it brings to the West Midlands. The development of the environmental economy will play a key role in progress towards sustainable development in the West Midlands. 1 Sector employment totals drawn from ‘West Midlands Labour Market and Skills Trends, 1998’, GOWM. E NVIRONMENTAL RESOURCES MANAGEMENT THE E NVIRONMENTAL E CONOMY OF THE WEST MIDLANDS i Box 1: Current Size of the Environmental Economy in the West Midlands: 1. The Environmental Sector: c34,300 jobs, c£680 million GDP. This comprises: · Businesses supplying environmental technologies and services – There are approximately 1,600 environmental suppliers in the West Midlands, employing a total of 29,000 people. A recent DTI study showed that the environmental industry in the West Midlands is amongst the strongest in the UK and a large proportion of businesses obtain sales from outside the West Midlands, across the UK and from export markets throughout the world. Successful environmental suppliers in the West Midlands include large companies such as Severn Trent and Whale Tankers in Solihull, as well as smaller firms such as Egbert Taylor & Co Ltd in Worcestershire which provides an example of a company that has successfully diversified into environmental markets from its roots outside the environmental industry. The majority of companies surveyed in the study have experienced growth in the last three years and forecast further growth in the future. · Environmental management in industry – There are approximately 900 people in environmental management posts within other industry sectors in the West Midlands (e.g. automotives, metal fabrication and electronics). These environmental management activities can bring significant cost savings, environmental improvements and benefits to local communities. For example, MBC Precision Castings Ltd in Redditch achieved cost savings equivalent to 2% of their company turnovers through the introduction of environmental improvement and waste minimisation measures. · Public sector organisations providing environmental services or with responsibilities for environmental protection – such as the Environment Agency, Local Authorities and the Countryside Agency – employ over 3,800 personnel in the West Midlands. · Academic institutions providing environmental education, research and environmental services in the West Midlands employ approximately 170 staff. Examples include the Regional Unit for Sustainability and the Environment at the University of Wolverhampton and the Centre for Clean Technology at the University of Central England. · Not for profit and voluntary sector organisations, such as Wildlife Trusts, the RSPB, Groundwork and the National Urban Forestry Unit employ approximately 330 people in environmental improvement projects throughout the West Midlands. Their work includes community led environmental projects (e.g. on Wren’s Nest Estate in Dudley), physical restoration projects (e.g. Ryton Pools in Warwickshire), environmental improvement work with industry (e.g. Groundwork’s Bright Sites scheme) and environmental skills and employment projects, including New Deal / Environmental Task Force projects. 2. Land Based Industries: c5,000 jobs generated or sustained, c £75 million GDP. This comprises: · Environmentally beneficial Farming - Agri-environment schemes (e.g. the Countryside Stewardship Scheme and the Organic Farming Scheme) to bring environmental improvements through farming practices. Examples of projects work underway by the Shropshire Hills Countryside Unit. These schemes create and help to sustain jobs in rural economies. · Regional Produce - Using the high quality of the environment to brand regional produce, encourage local purchasing and raise demand for countryside products. For example, the ‘Local to Ludlow’ scheme which strengthens the links between regional food producers and local markets. · Environmentally beneficial Forestry - Woodland creation and management activities, working woodlands, Community Forests and urban forests which enhance the environment benefits of forestry. For example, the Marches Woodland Initiative and the Black Country Urban Forest which bring environmental improvements as well as employment and social benefits to local communities in rural and urban areas. · Fishing – Freshwater fishing in the West Midlands, which is dependent on high quality water
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