ShareShare on LinkedIn

Not many people know that! - November 2011

This region is full of surprises - and potential

Some of you will be aware that the Chamber has been developing a series of fact cards about the region – called ‘Business Bullets’ – which contain key facts about our economy. So far there are business bullets for: Oil and Gas, Renewables, Food and Drink, Tourism, the Creative industries and Transport. You can view them all on our website at www.agcc.co.uk/business-bullets

These fact cards, together with the eight sector surveys that we plan to deliver jointly with RGU and ACSEF as part of a KTP programme over this year and next – Tourism and Renewables are completed and Food & Drink is next – and our increased dissemination to members of third party research and intelligence, are part of our quiet campaign to improve evidence-based decision-making. We would like to play our part in improving the public debate about the economy of the North-east by using evidence rather than opinion wherever possible – that way we are likely to make better decisions about our future prosperity.

Here are some key facts that might surprise you:

  • Aberdeen City and Shire has 9% of the population of Scotland, but in 2010 the region accounted for 13.7% of all Scottish enterprises – some 20,965. We punch above our weight. (Source: ACSEF/SG, 2011)
  • In Aberdeenshire, 92% of these were classified as small enterprises with less than 50 employees, in line with the Scottish average. In Aberdeen City, 86% were small enterprises, 6% classified as medium with between 50 and 250 employees, and 8% are large enterprises. (Source: ACSEF/SG, 2011)
  • These large enterprises provide half of all the jobs in the region. Eighteen of the top 50 companies in Scotland are in the North-east – all energy related apart from FirstGroup and Aberdeen Asset Management. (Source: ACSEF/SG, 2011)
  • Aberdeen Airport supports over 1000 jobs and generates £114m of GVA for the region. (Source: York Aviation report, July 2010.) The University of Aberdeen supports 8,358 jobs and generates £377m in the region (Source: Biggar Economics, 2009.) The figures for Aberdeen Harbour are £420 million generated for the  region’s economy, and helps sutain 11,000 full time jobs.
  • The total value of fish landings at the three North-east ports in 2010 was £190m representing 42% of the Scottish total. Peterhead alone accounted for £140m and 31% of the Scottish total. (Source: MacKay/SG, 2011)
  • In 2010 the North-east accounted for 26% of business turnover at £67.5b, with only 9% of the population (Source: MacKay/ONS/SG, 2011)
  • The average shop vacancy rate in the UK for large centres with more than 400 shops in 2010 was 16.9%. The lowest shop vacancy rate in the UK was in Aberdeen with 8.5%. Rotherham was the highest with 28.3%. (Source: Local Data Company, 2011)

What these other statistics and insights tell us is that the region is an economic powerhouse for Scotland and the UK, and that this is founded on oil and gas. As the region diversifies away from the UKCS to exports and a wider energy brief, builds new high-value sectors, and develops a more varied economy, it is really important that the number one job is to look after the energy sector, and specifically oil and gas.

Members of the Chamber are becoming increasingly concerned that the true economic potential of the region, and the longevity of our energy sector is being choked off by lack of investment in infrastructure, poor appreciation about the influence of the North-east to the UK economy and lack of understanding in government. The plan is simple: anchor oil and gas, build the AWPR, invest in transport infrastructure, build more houses, attract talent, smarten up the city centre, export more and deliver for the people of the region.

Delivering this simple plan is proving to be more difficult than anticipated. We must keep working through these difficulties, as there are really no alternatives.