The economic contribution of the UK ports industry A report for Maritime UK

Transcription

1 The ecnmic cntributin f the UK prts industry A reprt fr Maritime UK September 2017

2 2 Disclaimer Whilst every effrt has been made t ensure the accuracy f the material in this dcument, neither Centre fr Ecnmics and Business Research Ltd nr the reprt s authrs will be liable fr any lss r damages incurred thrugh the use f the reprt. Authrship and acknwledgements This reprt has been prduced by Cebr, an independent ecnmics and business research cnsultancy established in The views expressed herein are thse f the authrs nly and are based upn independent research by them. The reprt des nt necessarily reflect the views f Maritime UK. Lndn, September 2017

3 3 Cntents Executive Summary 4 1 Intrductin Abut Maritime UK Purpse f this reprt Overview f the study and methdlgy Structure f the reprt The Maritime sectr and the prts industry The definitin f the Maritime sectr and its cnstituent activities Quantifying the direct ecnmic impacts f the industry at natinal level Quantifying the direct ecnmic impacts f the industry at reginal level 10 The direct ecnmic impact f the prts industry The direct impact thrugh turnver The direct impact thrugh GVA The direct cntributin thrugh emplyment The direct impact thrugh the cmpensatin f emplyees The direct Exchequer cntributin The direct cntributin thrugh the exprts f gds and services 19 The aggregate ecnmic impact f the prts industry The aggregate ecnmic impact thrugh turnver The aggregate ecnmic impacts thrugh GVA The aggregate ecnmic impacts thrugh emplyment The aggregate ecnmic impact thrugh the cmpensatin f emplyees 25 The reginal ecnmic impact f the prts industry The direct ecnmic impact f the prts industry by UK regin The aggregate ecnmic impact f the prts industry by UK regin 30 Annex A: Full set f direct ecnmic impacts by regin 33 Annex B: List f majr and minr UK prts 35

4 4 Executive Summary The Centre fr Ecnmics and Business Research (Cebr) has been cmmissined by Maritime UK t quantify the ecnmic cntributin f the prts industry. This reprt frms ne f seven reprts which als assess the cntributin f the Maritime sectr as a whle, at industry-level, in, and in the Slent LEP regin. In this cntext, the prts industry cmprises all thse activities undertaken in prts. This reprt draws upn a cmbinatin f data surces, t quantify bth the direct and aggregate ecnmic impact f these activities in the UK ecnmy in the years t. The prts industry makes a substantive macrecnmic cntributin t the UK thrugh the key macrecnmic indicatrs: business turnver, Grss Value Added (GVA), emplyment and the cmpensatin f emplyees. It is estimated that in the prts industry directly cntributed apprximately 22.6 billin in business turnver, 7.6 billin in GVA and 101,000 jbs fr UK emplyees in. This respectively equates t 57% f turnver, 52% f GVA and 50% f emplyment directly supprted by the wider UK Maritime sectr in. The direct cntributin f the prts industry thrugh turnver, GVA and emplyment in was higher than in, when turnver, GVA and emplyment are estimated t have been 20 billin, 7.4 billin and just ver 99,600 jbs respectively. The prts industry als helps t raise millins f punds each year t the UK Exchequer and makes a sizeable cntributin t UK trade thrugh exprts f gds and services. The industry cntributed an estimated ttal f just under 1.5 billin in tax revenues in, spread acrss Crpratin Tax, Incme Tax, Natinal Insurance Cntributins (NICs) and Business Rates. The industry is als estimated t have exprted 9.1 billin f gds and services in. After quantifying the aggregate ecnmic impacts thrugh the industry supply chains and induced effects n expenditures, it is estimated that the prts industry helped t supprt a ttal f 23.8 billin f GVA in. This implies that, fr every 1 in GVA directly cntributed by the prts industry, a further 2.15 in GVA is generated acrss the wider UK ecnmy. These aggregate ecnmic impacts assciated with the prts industry als extend t turnver, emplyment and the cmpensatin f emplyees. It is estimated that the prts industry helped t supprt a ttal f 53.7 billin in turnver, 695,200 jbs and 8.4 billin thrugh the cmpensatin f emplyees in. While the ecnmic cntributin f the industry is spread acrss all UK regins, Lndn cntributes the mst t GVA and emplyment, bth thrugh direct and aggregate impacts. In, it is estimated that the industry in Lndn directly cntributed 2 billin f GVA (27.4 % f the industry s ttal direct cntributin) and 20,000 jbs (19.8% f the direct cntributin). After indirect and induced effects are cnsidered, the aggregate impact f the industry in Lndn rises t almst 6.0 billin f GVA and 195,300 jbs.

5 5 1 Intrductin Cebr is pleased t present this reprt t Maritime UK n the ecnmic impact f the prts industry n the UK ecnmy. Fr the purpses f this reprt, the prts industry is defined as cmprising the activities undertaken in prts; in ther wrds, the activities f the prts themselves, as well as shipping and shipbuilding activities. This reprt frms ne f seven reprts n the ecnmic cntributin f the Maritime sectr, which is defined as cmprising the individual shipping, prts, marine and maritime business services industries, each cmprising a wide range f cmpnent activities. The ther reprts fcus n the ecnmic cntributin f the shipping, marine and maritime business services industries at the UK level; the ecnmic cntributin f the sectr in, the Slent LEP, and the cntributin f the Maritime sectr at UK-level. It is therefre imprtant t cnsider this reprt as part f the wider framewrk set ut in the seven reprts, which set ut the impact f the Maritime sectr bth at a natinal and reginal level. Our examinatin spans the perid frm t (inclusive), with the latter being the latest year fr which full data are available, and endeavurs t capture the full ecnmic ftprint f the prts industry. As such, ur reprt is nt cnfined t direct nging cntributins t GDP and emplyment thrugh the prts industry s peratins and activities in the UK, but als prvides assessments f the assciated indirect and induced multiplier impacts (tgether yielding the aggregate impact f the industry). 1.1 Abut Maritime UK Maritime UK is the prmtinal bdy fr the UK s maritime sectr, representing cmpanies and partner rganisatins in the shipping, prts, marine and maritime business services industries. It acts t prmte the sectr, influence gvernment and drive grwth. 1.2 Purpse f this reprt This study seeks t equip Maritime UK with statistics and figures n the value f the prts industry t the UK ecnmy, within the cntext f the value f the wider Maritime sectr. As such, Cebr has fcused n the fllwing key ecnmic indicatrs: business turnver, emplyment, Grss Value Added (GVA), the cmpensatin f emplyees, the Exchequer cntributin (thrugh tax revenues raised) and exprts f gds and services. The study als seeks t identify the cntributin f the prts industry at reginal level (acrss the frmer Gvernment Office Regins). 1.3 Overview f the study and methdlgy Purpse f the study This reprt prvides a thrugh and cmprehensive examinatin f the rle f the prts industry in the UK and its cnstituent sub-reginal ecnmies. It presents a range f analyses demnstrating different aspects f the value cntributed by the industry, including direct cntributins t GDP and emplyment, indirect and induced multiplier impacts and the prts industry s cntributin t the UK Exchequer thrugh tax revenues raised. An imprtant task has been t develp an in-depth understanding f the prts industry. T prduce a rbust study, it is necessary t interrgate the available data t ensure that it captures the full range f activities that shuld be included in establishing the ttal ecnmic ftprint f the industry. Fllwing the cllatin f the necessary data capturing these activities, the values f key ecnmic indicatrs were established t demnstrate the impact f the industry. The key macrecnmic indicatrs include:

6 6 The value f the turnver f the prts industry and, again, the turnver supprted in the UK and reginal ecnmies thrugh multiplier impacts. GVA1 cntributins t UK and reginal GDP generated by the prts industry, directly and thrugh indirect and induced multiplier impacts. Jbs supprted by the industry, including direct, indirect and induced jbs thrugh multiplier impacts. The value f emplyee cmpensatin2 generated by the prts industry, representing the ttal remuneratin f emplyees perating in the industry. The cntributin f the prts industry thrugh revenues raised fr the Exchequer. The direct, indirect and induced ecnmic impacts referred t abve are defined later in this sectin: by way f backgrund the latter tw effects bradly refer t hw the direct impacts f an industry prpagate thrugh the supply chains f that industry and thrugh the brader ecnmy as a whle, respectively. Quantifying the direct ecnmic impacts f the prts industry and data surces In rder t quantify the direct ecnmic impacts f the prts industry, a number f different appraches have been taken which reflect the degree f alignment (r therwise) fr each activity within the prts industry against the Natinal Accunts framewrk, and is summarised belw. A mre detailed descriptin f surces used fr each activity within the prts industry can be fund in Sectin 2 f this reprt. The majr surce f data used t quantify the direct ecnmic cntributin f the prts industry is the Financial Accunts Made Easy (FAME) database, which prvides business demgraphy and financial accunts data fr cmpanies. The FAME database has been used t generate estimates fr the business turnver, GVA, emplyment, the cmpensatin f emplyees and industry prfitability. This data has then been used by extensin t quantify the cntributin that the prts industry makes t the UK Exchequer, and the prductivity f the industry in terms f GVA per jb. Data fr exprts f services exprts frm the prts industry has been surced frm bth the ONS Pink Bk and the UK Chamber f Shipping s (UKCS) Annual Sea Inquiry. Quantifying the aggregate ecnmic impacts f the prts industry After cllatin and interrgatin f the data, the direct ecnmic impacts fr the prts industry have then been embedded within Cebr s ecnmic impacts mdels f the UK ecnmy. Fr each activity grup, the direct impacts are then cmbined with the bespke ecnmic multipliers t generate indirect, induced and by extensin the aggregate impacts. These multipliers were calculated by Cebr using ur input-utput mdelling appraches, as these activities are nt standard sectrs reprted in the ONS input-utput tables. Cebr s mdels establish the relatinships between industries thrugh supply chain linkages, as well as industries linkages with gvernment, capital investrs and the rest f the wrld (thrugh trade). The 1 GVA, r grss value added, is a measure f the value frm prductin in the natinal accunts and can be thught f as the value f industrial utput less intermediate cnsumptin. That is, the value f what is prduced less the value f the intermediate gds and services used as inputs t prduce it. GVA is als cmmnly knwn as incme frm prductin and is distributed in three directins t emplyees, t sharehlders and t gvernment. GVA is linked as a measurement t GDP bth being a measure f ecnmic utput. That relatinship is (GVA + Taxes n prducts - Subsidies n prducts = GDP). Because taxes and subsidies n individual prduct categries are nly available at the whle ecnmy level (rather than at the sectral r reginal level), GVA tends t be used fr measuring things like grss reginal dmestic prduct and ther measures f ecnmic utput f entities that are smaller than the whle ecnmy. 2 Cmpensatin f emplyees is the ttal remuneratin, in cash r in kind, payable by an emplyer t an emplyee in return fr emplyers' scial cntributins, mainly cnsisting f emplyers' actual scial cntributins (excluding apprentices), emplyers' imputed scial cntributins (excluding apprentices) and emplyers' scial cntributins fr apprentices.

7 7 mdels prduce three types f impact fr fur indicatrs turnver; GVA; emplyment; and the cmpensatin f emplyees. The three types f impact are: Direct: the value generated and jbs supprted directly by the ecnmic activities f the prts industry. Indirect: the value generated and jbs supprted in industries that supply inputs t the prts industry. Induced: this is the value generated and jbs supprted in the UK ecnmy when the direct and indirect emplyees f the prts industry spend their wages and salaries n final gds and services. These three impacts are then cmbined t cnvey the aggregate ecnmic impact assciated with each activity, in terms f turnver, GVA, emplyment, and the cmpensatin f emplyees. 1.4 Structure f the reprt The remainder f the reprt is structured as fllws: Sectin 2 prvides an verview f hw the Maritime Sectr has been defined, and in turn hw the prts industry fits within this definitin. Further infrmatin is als prvided n hw the key macrecnmic indicatrs have been captured r estimated; Sectin 3 utlines the direct ecnmic impacts f the prts industry. We cnsider the direct impacts thrugh turnver; GVA; emplyment; the cmpensatin f emplyees; exprts; and the cntributin t the UK Exchequer thrugh tax revenues cntributed by the prts industry. Sectin 4 cnsiders the multiplier impacts f the prts industry thrugh the activities it stimulates in the lcal supply chain and in the wider ecnmy when emplyees directly and indirectly emplyed by the prts industry spend their wages and salaries in the lcal and wider ecnmy. Sectin 5 examines the direct and multiplier (indirect and induced) impacts f the prts industry at reginal level, as disaggregated by the twelve frmer Gvernment Office Regins (GORS).

8 8 2 The Maritime sectr and the prts industry Here we set ut hw the Maritime sectr has been defined fr the purpses f the study, and hw the prts industry is characterised within the sectr. On a hlistic level, the wider sectr can be disaggregated int the shipping, prts, marine and maritime business services industries, which in themselves are frmed f numerus individual and distinct activities, f which the prts industry is the fcus f this reprt. 2.1 The definitin f the Maritime sectr and its cnstituent activities Maritime UK have prvided a list f activities which fall under the auspices f the Maritime sectr; Cebr has subsequently undertaken a mapping exercise using this list t identify hw each f these activities aligns with the natinal accunts. Fr mst Maritime sectr activities, a crrespnding Standard Industrial Classificatin (SIC) cde exists which enables the identificatin and quantificatin f the direct ecnmic impacts using publicly-available data surces. A minrity f activities d nt map neatly against the SIC framewrk, necessitating the use f industry r lcal-level data fr quantificatin purpses. Shipping Prts Warehusing and strage; Prt activities and management; Stevedres, carg and passenger handling; Brder agency, HMRC and public sectr emplyees perating in prts. Marine Internatinal transprt f passengers; Transprt f passengers n inland waterways; Internatinal transprt f freight; Transprt f freight n inland waterways. Shipbuilding; Batbuilding (leisure marine vessels); Marine renewable energy; Marine supprt activities fr ffshre il and gas, engineering and mining; Recreatinal marine activities, marine finance and legal activities and general marine services; Marine science and academic activities, including gvernment vessels and technical cnsulting; Maritime Business Services Shipbrking and ther miscellaneus transprt services; Maritime insurance, finance and legal services; 3 Ship surveying and classificatin; Maritime Educatin; Maritime Cnsultancy; Maritime Accuntancy. Here we fcus n what we term the prts industry, which in this cntext is defined as cmprising all activities taking place in and arund prts shipping, shipbuilding and the activities f prts themselves. The remainder f this sectin sets ut the apprach by which the direct, aggregate and reginal ecnmic impacts f the prts industry have been estimated. 3 These activities are distinct frm thse Insurance, Financial and Legal activities taking place within the Marine industry, and the cntributin f these activities are treated and quantified separately as a result.

9 9 2.2 Quantifying the direct ecnmic impacts f the industry at natinal level Here we set ut in further detail the apprach taken t quantify the direct ecnmic impact f the prts industry thrugh its cnstituent activities. Table 1 belw shws hw activities fr the prts industry have been identified, and the data surces used t capture and quantify the assciated ecnmic activity. As it is pssible t separately identify shipping and shipbuilding activities using SIC cdes (and fr prts by assuming that activity taking place in a cuncil ward with a prt is prts-related), business demgraphy data taken frm the FAME database has been the majr surce f infrmatin used t generate UK-level estimates fr the direct ecnmic impacts f each activity. Table 1: Mapping f the prts industry by activity GROUPING PORTS SHIPPING SHIPBUILDING ACTIVITY MAPPING SOURCE(S) USED Warehusing and Strage Identified thrugh SIC cde 52101, "Operatin f Warehusing and Strage Facilities fr Water Transprt activities". Activities are then mapped t cuncil wards cntaining majr and minr UK prts. FAME, BRES Prt Authrity Management, Prt Security and Marshals, Prt Marine and Vessel Management Services, Marine Pilts, Prt Harbur Supprt Vessels, and Engineering and Maintenance Identified thrugh SIC cde 52220, "Service activities incidental t water transprtatin". Activities are then mapped t cuncil wards cntaining majr and minr UK prts. FAME, BRES Stevedres, carg and passenger handling including crane/vehicle/plant drivers/peratrs Identified thrugh SIC cde 52241, "Carg Handling fr Water Transprt Activities". Activities are then mapped t cuncil wards cntaining majr and minr UK prts. FAME, BRES Brder Agency, Hme Office and HMRC staff perating in Prts Identified as public sectr emplyees perating in UK prts. Institute fr Gvernment, Prt Freight Statistics, Cebr analysis Transprt f Passengers Internatinal / Sea Faring Identified thrugh SIC cde 50100, "Sea and Castal Passenger Water Transprt". FAME, BRES Transprt f Passengers n Inland Waterways Identified thrugh SIC cde 50300, "Inland Passenger Water Transprt". FAME, BRES Transprt f Freight Internatinal/ Sea Faring Identified thrugh SIC cdes and 77342, "Sea and castal freight water transprt", and "Renting and Leasing f Freight Water Transprt Equipment". FAME, BRES Transprt f Freight n Inland Waterways Identified thrugh SIC cde 50400, "Inland Freight Water Transprt". FAME, BRES Other Shipping activity nt captured thrugh SIC cdes Identified thrugh f UKCS statistics fr shipping-related emplyment. UKCS Manpwer Survey Shipbuilding and Marine Engineering Identified thrugh SIC cdes 3011 ("Building f ships and flating structures") and 3315 ("Repair and Maintenance f Ships and Bats") FAME, BRES Surce: Maritime UK, Cebr analysis

10 Quantifying the direct ecnmic impacts f the industry at reginal level Here we set ut the apprach taken t disaggregate the direct and aggregate ecnmic impacts f the prts industry at reginal level. A full set f estimates fr the reginal direct ecnmic impacts are prvided in Annex A. As it is pssible t quantify the ecnmic cntributin at natinal level using SIC cdes, by extensin the apprach taken invlves using publicly-available statistics which can be disaggregated at reginal level and cmbining these with the UK-level direct and aggregate impacts fr the prts industry. The first step f this apprach invlved determining the reginal disaggregatin f emplyment fr each activity. The majr surce f emplyment data by regin was the Business Register and Emplyment Survey (BRES)4, as accessed thrugh NOMIS. Emplyment data assciated with each SIC cde fr the prts industry were gathered and an implied reginal breakdwn estimated after interplating fr sme missing infrmatin. As BRES nly prvides cverage fr Great Britain, emplyment data in has been estimated using a cmbinatin f BRES and the ONS Annual Business Survey (ABS)5, the latter prviding the prprtin f emplyment in acrss the nearest industrial sectr categry. Fr the ther key macrecnmic indicatrs turnver, GVA, and the cmpensatin f emplyees ABS has been used alngside the reginal emplyment estimates. Other adjustments have been made t the reginal disaggregatin f the key macrecnmic indicatrs which represent the direct ecnmic impacts f the prts industry, in rder t reflect differences in ecnmic perfrmance acrss the regins. These are as fllws: T accunt fr reginal differences in average prductivity (GVA per emplyee), the breakdwn f GVA has been adjusted using the ONS GVA per emplyee by regin statistics.6 Fr example, the average emplyee in Lndn in was 46% mre prductive than the average UK emplyee, while the average emplyee in the Nrth East was 10% less prductive. T accunt fr reginal differences in wages and salaries, estimated wages and salaries paid t emplyees in the prts industry have been adjusted using differentials taken frm ASHE.7 Fr example, the average wage fr an emplyee in the was 4% higher than the natinal average in. T accunt fr reginal variatin in the rati f cmpensatin f emplyees t GVA in different sectrs, the cmpensatin f emplyees fr the industry have been adjusted using reginal differentials implied by the clsest industry, as surced frm the Annual Business Survey. The reginal disaggregatin prcess can therefre be summarised as fllws: Estimate the reginal disaggregatin f emplyment in the prts industry by cmbining the UK emplyment ttal with the BRES-implied split; Estimate the reginal disaggregatin f GVA by applying emplyment-t-gva ratis, adjusting fr reginal prductivity differentials, and cnstraining the reginal ttals t the UK ttal; Estimate the reginal disaggregatin f turnver by applying reginal industry turnver-t-gva ratis surced frm ABS, again cnstraining the reginal ttals t the UK ttal; Estimate the reginal disaggregatin f the cmpensatin f emplyees (COE) by applying reginal industry COE-t-GVA ratis surced frm ABS, again cnstraining the reginal ttals t the UK ttal. 4 The Business Register and Emplyment Survey (BRES), prduced by the ONS n an annual basis, is the fficial surce f emplyee and emplyment estimates by detailed gegraphy and industry within Great Britain. 5 The Annual Business Survey is a census f prductin in the United Kingdm prduced by the ONS. 6 ONS, Subreginal Prductivity: Labur Prductivity (GVA per hur wrked and GVA per filled jb) indices by UK NUTS2, NUTS3 subregins and City regins. 7 Ibid.

11 11 Presented belw are the resulting reginal emplyment breakdwns using the apprach described abve. Prts Table 2 belw shws the breakdwn f emplyment in shipping as implied thrugh BRES data. The regins with the largest shares f emplyment in prts themselves are the, Yrkshire and the Humber and. Table 2: The estimated reginal breakdwn f UK emplyment in prts activities as implied by BRES and ABS, t Emplyment Prts activities England East Midlands Lndn Nrth East West Midlands Yrkshire and the Humber 77.6% 15.3% 6.1% 1.1% 31.5% 0.3% 0.8% 6.0% 5.1% 9.5% 5.8% 0.0% 18.6% 77.7% 14.7% 6.3% 1.3% 34.9% 0.3% 0.8% 4.4% 5.8% 9.1% 4.6% 0.0% 17.9% 73.7% 19.8% 5.4% 1.1% 32.2% 0.2% 0.8% 6.4% 5.3% 7.4% 5.2% 0.0% 16.1% 74.4% 19.1% 5.4% 1.1% 26.2% 0.2% 0.8% 10.2% 7.1% 8.3% 5.2% 0.0% 16.3% 73.8% 18.2% 6.9% 1.1% 27.4% 0.3% 1.5% 9.3% 5.5% 6.9% 4.5% 0.0% 18.4% 74.0% 18.2% 6.9% 0.9% 27.5% 0.3% 1.5% 9.3% 5.5% 6.9% 4.5% 0.0% 18.4% Surce: ONS, Cebr analysis Shipping Table 3 belw shws the breakdwn f emplyment in shipping as implied thrugh BRES data. The regins with the largest shares f shipping activity emplyment are the, Lndn and. Table 3: The estimated reginal breakdwn f UK emplyment in shipping activities as implied by BRES and ABS, t Emplyment Shipping activities England East Midlands Lndn Nrth East West Midlands Yrkshire and the Humber 77.1% 13.0% 7.3% 2.6% 7.2% 1.7% 18.8% 0.9% 6.9% 27.6% 6.7% 3.5% 3.8% 73.6% 14.5% 8.3% 3.6% 8.3% 0.6% 21.8% 1.0% 7.8% 25.6% 4.4% 1.1% 3.0% 76.5% 14.3% 5.9% 3.2% 5.7% 0.3% 19.3% 0.8% 6.2% 27.3% 10.2% 0.8% 5.8% 76.2% 14.0% 7.1% 2.8% 6.4% 2.4% 16.9% 0.7% 7.1% 30.2% 8.0% 1.3% 3.1% 77.8% 15.2% 4.6% 2.4% 7.3% 6.6% 21.6% 1.4% 7.6% 26.3% 3.7% 2.3% 1.1% 79.8% 12.5% 5.4% 2.2% 4.5% 3.0% 31.8% 1.8% 6.4% 20.9% 6.7% 1.2% 3.5% Surce: ONS, Cebr analysis

12 12 Shipbuilding Finally, Table 4 belw shws the breakdwn f emplyment in shipbuilding activities as implied thrugh BRES data. The regins with the largest shares f emplyment in shipbuilding are the, and the as f. Table 4: The estimated reginal breakdwn f UK emplyment in shipbuilding activities as implied by BRES and ABS, t Emplyment Prts activities England East Midlands Lndn Nrth East West Midlands Yrkshire and the Humber 68.8% 26.4% 1.5% 3.2% 3.1% 0.4% 0.1% 4.4% 26.4% 11.0% 22.0% 0.7% 0.7% 68.8% 26.0% 1.7% 3.5% 1.3% 0.7% 0.1% 3.0% 26.0% 8.7% 26.0% 0.4% 2.6% 67.6% 28.0% 1.2% 3.2% 1.0% 0.9% 0.8% 2.3% 28.0% 10.5% 23.3% 0.5% 0.2% 67.5% 27.4% 1.4% 3.7% 2.1% 0.7% 0.0% 1.4% 27.4% 8.0% 27.4% 0.2% 0.2% 64.7% 30.4% 0.7% 4.2% 1.3% 0.9% 0.3% 1.0% 30.4% 3.9% 26.1% 0.2% 0.7% 69.4% 25.1% 1.3% 4.2% 1.9% 0.2% 0.2% 0.8% 37.7% 2.9% 25.1% 0.2% 0.4% Surce: ONS, Cebr analysis The results f this reginal analysis are shwn in the final sectin f this reprt, which sets ut the direct and aggregate ecnmic impacts f the prts industry at reginal-level. The next sectins in this reprt set ut the direct and aggregate ecnmic impacts f the prts industry in the UK.

13 13 3 The direct ecnmic impact f the prts industry In this sectin we ut estimates fr the direct cntributin f the prts industry t the fllwing key macrecnmic indicatrs: turnver; GVA; emplyment; the cmpensatin f emplyees; the exchequer cntributin thrugh tax revenues raised; and exprts. After quantifying the direct cntributins made thrugh the first fur f these activities, the aggregate ecnmic impact that the prts industry has n the UK ecnmy is then examined in the next sectin f the reprt. 3.1 The direct impact thrugh turnver This sectin examines the level f turnver which is directly supprted by the prts industry. Figure 1 belw illustrates the direct impact f the prts industry thrugh turnver in the perid -, bth in abslute levels and as a percentage f the ttal direct cntributin frm the UK Maritime sectr. Figure 1: The estimated turnver f the prts industry, and share f the Maritime sectr s ttal turnver 55.0% 20,000 millins 50.0% 15, % 10, % 5, % % f ttal Maritime sectr 60.0% 25, % 0 % f Maritime Sectr It is estimated that the ttal direct impact f the prts industry thrugh turnver in was apprximately 22.6 billin. This cnstitutes apprximately 56.6% f the ttal direct impact f the Maritime sectr thrugh turnver. As illustrated, this direct turnver cntributin has been fairly cnsistent frm t ; increasing in mst years and reaching its highest value in. Nt nly has turnver frm the prts industry grwn ver the six year perid, average prfitability (as measured using the aggregated rati f grss prfits t turnver) in the prts industry is als estimated t have increased since, and cmpares favurably t that f the verall UK Maritime sectr. Table 5 shws trends in prfitability: the verall prfitability f the industry, which in was in alignment with the Maritime sectr average, was just under 8ppt higher in. Table 5: Estimated prfitability (average grss prfit rati) f the prts industry and cnstituent activities Prfitability UK Maritime sectr UK prts industry 18.4% 18.9% 19.7% 19.4% 21.4% 20.7% 21.4% 21.2% 23.0% 23.6% 22.9% 24.5% T place the direct cntributin thrugh turnver in cntext, Figure 2 belw cmpares the prt industry s direct cntributin thrugh turnver against that f cmparable transprt industry activities acrss air,

14 14 rad and rail; nminal turnver grwth against the level is als shwn fr each industry activity. Turnver data fr the cmparable industries has been surced frm the Annual Business Survey. 30,000 30% 25,000 25% 20,000 20% 15,000 15% 10,000 10% 5,000 5% 0 % grwth n level millin Figure 2. The estimated turnver f the prts industry against cmparable industries in, and grwth against the level 0% Freight rail transprt Passenger rail transprt Warehusing and Strage Turnver ( millin) Prts Air Transprt Grwth since (RHS) Manufacture f air and spacecraft Freight transprt by rad Relative t the cmparisn activities, the prts industry experienced the largest grwth between and ; at 29%. In cntrast, Air Transprt grew nly 16% relative t its level. The estimated turnver f the prts industry therefre exceeded that f the wider Warehusing and Strage, Passenger Rail transprt and Freight rail transprt industries. 3.2 The direct impact thrugh GVA This subsectin firstly illustrates the direct cntributins in terms f the GVA frm the prts industry t UK GDP. Figure 3 depicts this direct impact acrss the years t ; bth in abslute levels (left axis) and as a percentage f the ttal Maritime sectr turnver cntributin (right axis). It is estimated that the prts industry directly cntributed apprximately 7.6 billin t GVA in. This cnstitutes apprximately 52% f the ttal direct GVA cntributin frm the UK Maritime sectr in the same year. The direct cntributin t GVA was highest in and lwest in ; with the estimate being the secnd highest value. Figure 3. The direct cntributin f the prts industry thrugh GVA, and the industry s share f the Maritime sectr s ttal direct cntributin thrugh GVA 60% 9,000 8,000 55% 7,000 millins 5,000 45% 4,000 40% 3,000 2,000 35% 1,000 % f Maritime sectr 50% 6,000 30% 0 % f Maritime sectr

15 15 Fllwing Figure 2, Figure 4 belw cmpares GVA trends in the prts industry against thse f cmparable activities. In terms f the direct GVA cntributin in, the prts industry was larger than Freight rail transprt, with 7.6 billin relative t 0.96 billin. The grwth rate in the direct GVA f the prts industry since was 25%, which was exceeded nly by Freight rail transprt and the Manufacture f air and spacecraft. 30,000 30% 25,000 25% 20,000 20% 15,000 15% 10,000 10% 5,000 5% 0 % grwth n level millin Figure 4. The estimated GVA f the prts industry against cmparable industries in, and grwth against the level 0% Freight rail transprt Prts Warehusing and Strage GVA ( millin) Passenger rail transprt Air Transprt Freight transprt Manufacture f by rad air and spacecraft Grwth since (RHS) 3.3 The direct cntributin thrugh emplyment This subsectin utlines the direct emplyment impact frm the prts industry t the UK ecnmy. In additin t its cntributin thrugh GVA, the prts industry als directly supprts a significant number f jbs. Figure 5 belw shws the estimated direct emplyment impact fr prts industry fr each year frm t ; bth in abslute levels (left axis) and as a percentage f the ttal Maritime sectr turnver cntributin (right axis) % % % % % % 0 % f Maritime sectr Thusands Figure 5. The direct cntributin f the prts industry t UK emplyment, and the share f the ttal direct Maritime sectr cntributin t UK emplyment, t. 30.0% Shipping Prts Shipbuilding % f Maritime sectr

16 16 It is estimated that the prts industry directly cntributed apprximately 101,000 jbs in. This cnstituted apprximately 54% f the Maritime sectr direct jb cntributin in that year. As illustrated, the direct cntributin is relatively cnsistent acrss each year bth in abslute magnitude and as a percentage f the Maritime sectr direct emplyment cntributin. Based n the trends in GVA and emplyment presented in Figure 3 and Figure 5, emplyees perating in the prts industry are highly prductive, as measured by GVA per jb. Table 6 belw shws the estimated average prductivity f the prts industry acrss the years t, and cmpared against the average prductivity level f the Maritime sectr and the UK as a whle. The prts industry as a whle is slightly less prductive than the brader Maritime sectr but higher than the UK average; while the average industry jb generated 74,900 in GVA in, the average jb in the UK ecnmy nly generated 50,800. Table 6: Average prductivity (GVA per jb) in the prts industry in cmparisn t the Maritime sectr and UK ecnmy GVA per emplyee UK ecnmy UK Maritime sectr UK prts industry 45,734 76,273 74,023 46,652 73,557 73,979 47,735 85,822 84,427 49,009 76,130 66,687 50,205 75,917 75,244 50,830 77,897 74,911 Figure 6 belw cmpares the direct cntributin that the prts industry made thrugh UK emplyment in against cmparable industries and activities. Emplyment in the prts industry exceeded aggregate emplyment in the Manufacture f air and spacecraft; Passenger rail transprt and Freight rail transprt % 40% 35% 30% 25% 20% 15% 10% 5% 0% -5% -10% Thusands f jbs Freight rail transprt Passenger rail transprt Manufacture f air and spacecraft Emplyment (thusands) Prts % grwth n level Figure 6. The estimated emplyment f the prts industry against cmparable industries in, and grwth relative t. Warehusing and Freight transprt by Strage rad Grwth since (RHS) 3.4 The direct impact thrugh the cmpensatin f emplyees This sectin cnsiders the cmpensatin f emplyees which is directly supprted by the prts industry. Figure 7 belw depicts the direct impact f the prts industry t emplyee cmpensatin fr each f the years t ; bth in abslute terms and as a percentage f the ttal Maritime sectr cntributin.

17 17 Figure 7. The direct cntributin f the prts industry t the cmpensatin f emplyees, and the share f the ttal cntributin frm the UK Maritime sectr, t 3, % millins 3, % 2,500 2, % 1, % 1, % % f ttal Maritime sectr 60.0% 4, % Shipping Shipbuilding Prts % f Maritime Sectr It is estimated that the direct emplyee cmpensatin f the prts industry in was 3.6 billin. This cnstitutes apprximately 50% f the ttal Maritime sectr ttal in the same year. In abslute terms, the direct impact f emplyee cmpensatin increased each year cnsidered, with the exceptin f. 3.5 The direct Exchequer cntributin Here we examine the cntributin f the prts industry t the UK Exchequer, thrugh tax revenues raised frm its activities. In rder t capture the incidence f taxatin thrugh the direct activities (rather than indirect and induced), Cebr has measured the direct cntributin thrugh the revenues raised frm the tax heads listed belw. It has been assumed that the prts industry des nt generated Value-Added Tax (VAT) revenues fr the UK Exchequer, with zer-rating applying t shipping services and shipbuilding.8 Incme Tax; Natinal Insurance Cntributins (NICs) frm bth Emplyer and Emplyee cntributins; Crpratin Tax; Natinal Nn-Dmestic Rates (Business Rates) Fr the persnal taxes listed abve, Incme Tax and NICs revenues have been calculated by applying tax rates t the estimated wages and salaries paid t emplyees perating in the prts industry; rates and threshlds have been surced frm HMRC fr the years t. Wages and salaries fr emplyees have been surced frm the Annual Survey fr Hurs and Earnings (ASHE)9. Fr the business taxes listed abve, Crpratin Tax revenues have been estimated by applying HMRC estimates fr Average Effective 8 The fllwing services are zer-rated by HMRC: Passenger transprt in a vehicle, bat r aircraft that carries nt less than ten passengers; Internatinal freight transprt that takes place in the UK and its territrial waters; Dmestic leg f freight transprt t r frm a place utside the EU; Ship repairs and maintenance. Further infrmatin n the list f zer-rated and VAT-exempt gds and services can be fund here: 9 The Annual Survey f Hurs and Earnings (ASHE) prvides data n the levels, distributin and make-up f earnings and hurs wrked fr UK emplyees by sex and full-time r part-time status in all industries and ccupatins.

18 18 Tax Rates (AETRs) t the estimated Grss Prfit f each industry activity. Business Rates have been estimated using the average level f Business Rates paid as a prprtin f Maritime sectr GVA, drawing upn the ONS Annual Business Survey (ABS). Figure 8 belw shws the direct cntributin f the prts industry t the UK Exchequer in the years t. The ttal Exchequer cntributin is estimated t have been 1.47 billin in. As illustrated, this direct cntributin is estimated t have peaked in at 1.5 billin (slightly higher than in ). 1,600 40% 1,400 35% millin 1,200 30% 1, % % % % % f Maritime sectr cntributin Figure 8. The direct cntributin f the prts industry t the UK Exchequer, millin, t, and as a share f the Maritime sectr s ttal cntributin t the UK Exchequer % f Maritime sectr The prts industry makes a significant cntributin t the UK Maritime sectr s verall Exchequer cntributin, typically arund 31% in mst years. Figure 9 belw disaggregates the direct cntributin by tax head acrss the years t. In each f the years, there is a clear rdering: NICs and Incme Tax cntribute the largest share (in that rder), fllwed by Crpratin Tax and then Business Rates. In the shares were as fllws: 36% fr NICs; 29% fr Incme Tax; 25% fr Crpratin Tax; and 10% fr Business Rates. Figure 9. The direct cntributin f the prts industry t the UK Exchequer by tax head, millin, t. 1,600 1,400 millin 1,200 1, Incme Tax NICs Crpratin Tax Business Rates Surce: ONS, FAME, Cebr analysis

19 The direct cntributin thrugh the exprts f gds and services This sectin demnstrates the direct cntributin that the prts industry makes thrugh the exprts f gds and services. Figure 10 belw shws the estimated value f exprts between and, bth in abslute terms and as a percentage f the ttal Maritime sectr cntributin. Figure 10. Exprts f gds and services frm the prts industry, t, millin 16,000 90% 14,000 millin 80% 10,000 8,000 75% 6,000 70% 4,000 % f Maritime sectr 85% 12,000 65% 2, % as % UK Maritime Sectr (RHS) Surce: UKCS, ONS, Cebr analysis A ttal value f apprximately 9 billin in gds and services was exprted by the prts industry in, equating t 75.1% f ttal Maritime sectr exprts that year. Figure 11 cmpares exprts frm the prts industry against thse frm ther transprtatin activities. We bserve that the value f exprts f services frm the prts industry was significantly in excess f that f Rad, Rail and Pstal and Curier activities, althugh belw that f the Air Transprt industry (16.5 billin) in. Figure 11: Exprts f services frm the prts industry in against cmparable transprtatin activities, millin 18,000 16,000 millin 14,000 12,000 10,000 8,000 6,000 4,000 2,000 0 Pstal and Curier Rail Rad Business Travel Prts Air Surce: ONS, Cebr analysis

20 20 In the next sectin we examine hw the direct cntributin that the prts industry makes thrugh business turnver, GVA, emplyment and the cmpensatin f emplyees translates int aggregate ecnmic impacts, thrugh the additin f indirect and induced effects.

21 21 4 The aggregate ecnmic impact f the prts industry This sectin sets ut the aggregate ecnmic impacts f the prts industry, by taking int accunt the indirect (r supply chain) and induced (emplyee spending) impacts that arise frm the activities f firms within this industry. The fur macrecnmic indicatrs fr which the aggregate ecnmic impact have been calculated are as fllws: turnver; GVA; emplyment; and the cmpensatin f emplyees. Multipliers have been generated using Cebr s ecnmic impact mdel fr the UK. 4.1 The aggregate ecnmic impact thrugh turnver This sectin sets ut the aggregate ecnmic impact f the prts industry thrugh turnver. Figure 12 belw illustrates the direct, indirect and induced turnver impacts assciated with the prts industry. Here the interpretatin is that fr, every 1 f turnver directly supprted by the prts industry, 0.71 wrth f turnver is stimulated in the supply chains and 0.66 wrth f turnver in the wider ecnmy when direct and indirect (supply chain) emplyees spend their earnings. Therefre, fr every 1 turnver directly cntributed by the prts industry in, a ttal f 2.37 was supprted acrss the ecnmy. Figure 12. Turnver multiplier impacts f the prts industry, Table 7 belw disaggregates the direct, indirect, induced and aggregate impacts n turnver. The prts industry directly cntributed 22.6 billin in turnver in (see previus sectin); nce the indirect and induced ecnmic channels are taken int cnsideratin the prts industry cntributed an aggregate ecnmic impact f 53.7 billin in turnver. Table 7: Turnver impact f the prts industry in, millin Turnver in Prts industry Direct Impact 22,648 Indirect Impact 16,113 Induced Impact 14,982 Aggregate Impact 53,743 Table 8 belw shws hw the ttal turnver f the prts industry is estimated t have evlved since. The aggregate turnver impact reached its highest level in, at 53.7 billin. This increase relative t ther years ( t ) was largely driven thrugh the higher direct impact, as the cmpsite turnver multiplier is marginally lwer in (2.37) than in all ther years (2.38).

22 22 Table 8: Turnver impact f the prts industry, t, millin Direct Impact Cmpsite multiplier Aggregate turnver impact 19, ,637 20, ,754 20, ,204 20, ,334 21, ,015 22, , The aggregate ecnmic impacts thrugh GVA Figure 13 belw illustrates the GVA multipliers fr the prts industry. Here the interpretatin is that, fr every 1 f GVA directly supprted by the prts industry, 1.10 wrth f turnver is stimulated in the supply chains and 1.06 wrth f GVA in the wider ecnmy when direct and indirect (supply chain) emplyees spend their earnings. Therefre, fr every 1 f GVA initially cntributed by the prts industry in, the UK ecnmy as a whle experienced an increase in GVA f Figure 13. GVA Multiplier impacts fr the prts industry, Table 9 shws the estimated aggregate GVA impacts frm the prts industry. The prts industry directly cntributed just under 7.6 billin t the UK ecnmy s GDP in. Once the indirect and induced ecnmic channels are taken int cnsideratin the prts industry cntributed apprximately 23.8 billin t GDP. Table 9: GVA impact f the prts industry in, millin GVA in Prts industry Direct Impact Indirect Impact Induced Impact Aggregate Impact 7,562 8,283 7,985 23,830 Table 10 belw shws the estimated direct and aggregate GVA impacts f the prts industry acrss the years t. The GVA multiplier was highest at 3.22; whilst the aggregate GVA impact was highest in (due t the high direct impact in that year). The aggregate GVA impact acrss the years ranges frm 20,421 in t 23,830 in.

23 23 Table 10: Direct and aggregate GVA impact f prts industry, t, millin Direct Impact Cmpsite GVA multiplier Aggregate GVA impact 7,375 7,259 8,119 6,551 7,296 7, ,726 23,035 25,645 20,421 22,802 23,830 T place these results in cntext, Figure 14 belw cmpares the aggregate GVA impact f the prts industry against the cmparable transprt activities identified in the previus sectin. In additin, the GVA multipliers assciated with each activity are als presented. Figure 14. The aggregate GVA impact and GVA multiplier f the prts industry against cmparable industries in. 80, , , , ,000 Multiplier millin 60, , , Freight rail transprt Warehusing and Strage Prts Passenger rail transprt GVA ( millin) Freight transprt by rad Air Transprt Manufacture f air and spacecraft Multiplier (RHS) The aggregate GVA impact f the prts industry exceeds that fr Freight rail transprt and Warehusing and Strage, and the GVA multiplier fr the prts industry is exceeded nly by that f Freight rail transprt. S whilst the prts industry has a lwer aggregate GVA impact than industries such as Air Transprt and Freight transprt by rad, the assciated GVA multiplier is cnsiderably higher. In ther wrds, while Air Transprt f passengers generated an aggregate GVA impact f 58.6 billin in, its GVA multiplier was This means that fr each additinal 1 f GVA initially generated thrugh this activity, a ttal f 2.55 in GVA was generated in the UK ecnmy cmpared t 3.15 fr the prts industry. 4.3 The aggregate ecnmic impacts thrugh emplyment In this sectin, we cnsider the aggregate ecnmic impact that the prts industry makes thrugh emplyment. As identified earlier in this reprt, the prts industry is already estimated t make a significant direct cntributin t emplyment. Figure 15 belw illustrates the direct, indirect and induced emplyment impact multipliers assciated with the prts industry. Here the interpretatin is that fr every jb directly supprted by the prts industry, 3.16 jbs are stimulated in the industry s supply chains and a further 2.78 jbs are supprted in the wider ecnmy when direct and indirect (supply chain) emplyees spend their earnings. Therefre, fr every 1 jb direct supprted by the prts industry in, a ttal f 6.89 were supprted in the brader UK ecnmy.

24 24 Figure 15. Emplyment multiplier impacts f the prts industry, Table 11 belw shws the estimated aggregate emplyment impacts frm the prts industry. The prts industry directly supprted arund 101,000 jbs in the UK in. Once the indirect and induced ecnmic channels are taken int cnsideratin the prts industry supprted a ttal f 695,000 jbs in. As illustrated, shipping is the by far largest cntributr t emplyment in the prts industry. Table 11: Emplyment impact f the Marine industry in, in thusands f jbs Emplyment in Prts industry Direct Impact 101 Indirect Impact 319 Induced Impact 276 Aggregate Impact 695 Table 12 shws hw the aggregate emplyment impact f the prts industry is estimated t have evlved since. As illustrated, the direct impact frm emplyment was fairly cnsistent acrss the years, ranging frm 98,000 (in and ) t 102,000 in. The cmpsite emplyment multiplier was highest in at 7.03 and less than 6.9 in all subsequent years: cnsequently, the aggregate emplyment impact was highest in. Table 12: Direct and aggregate emplyment impact f the prts industry, t, thusands f jbs Direct Impact Cmpsite multiplier Aggregate impact Surce: ONS, UKCS, FAME, Cebr analysis T place these results in cntext, Figure 16 belw cmpares the aggregate emplyment impact f the prts industry in against the cmparable transprt activities identified in the previus sectin. In additin, the emplyment multipliers assciated with each activity are als presented.

25 Multiplier Thusands f Jbs Figure 16: The aggregate emplyment impact and multiplier f the prts industry against cmparable industries in 0.0 Freight rail transprt Passenger rail transprt Manufacture f air Warehusing and Freight transprt by and spacecraft Strage rad Emplyment (thusands) Prts Multiplier (RHS) As is clearly depicted, the prts industry cntributes significantly mre t emplyment than all ther industries included in the cmparisn: i.e., significantly mre than Freight transprt by rad; warehusing and strage; and manufacture f air and spacecraft. Furthermre, the GVA cmpsite emplyment multiplier fr the prts industry is substantially higher than fr the ther cmparisn industries: 6.80 fr the prts industry relative t the next highest f 3.98 fr Freight rail transprt. 4.4 The aggregate ecnmic impact thrugh the cmpensatin f emplyees This subsectin sets ut the aggregate ecnmic impact f the prts industry thrugh the cmpensatin f emplyees. Figure 17 belw illustrates the direct, indirect and induced cmpensatin f emplyee multiplier impacts assciated with the prts industry. Here the interpretatin is that, fr every 1 f emplyee cmpensatin directly supprted by the prts industry, 0.71 f emplyee cmpensatin was stimulated thrugh the supply chain and an additinal 0.61 f emplyee cmpensatin was stimulated thrugh spending in the wider ecnmy when direct and indirect (supply chain) emplyees spend their earnings. Therefre, fr every 1 f emplyee cmpensatin directly cntributed by the prts industry in, a ttal f 2.32 was supprted acrss the ecnmy. Figure 17. Emplyee cmpensatin multiplier impacts f the prts industry, Table 13 presents the direct, indirect, induced and aggregate impacts n the cmpensatin f emplyees fr the prts industry in. It is estimated that the prts industry supprted a ttal f apprximately 8.5 billin in emplyee cmpensatin in.

26 26 Table 13: Impact thrugh the cmpensatin f emplyees in the prts industry in, millin Cmpensatin f Emplyees in Prts industry Direct Impact 3,641 Indirect Impact 2,599 Induced Impact 2,203 Aggregate Impact 8,443 Surce: ONS, UKCS, FAME, Cebr analysis Table 14 shws hw the ttal emplyee cmpensatin f the prts industry is estimated t have evlved since. As illustrated, the direct impact increased in each year with the exceptin f. Similarly, the aggregate emplyee cmpensatin impacts increased in each year. Table 14: Direct and aggregate impacts thrugh the cmpensatin f emplyees frm the prts industry, t, millin Direct Impact Cmpsite multiplier Aggregate emplyee cmpensatin impact 3, ,289 3, ,446 3, ,037 3, ,014 3, ,159 3, ,443 Having estimated the direct and aggregate ecnmic impact f the prts industry at UK-level, in the final sectin f the reprt we examine these ecnmic impacts at reginal-level.

27 27 5 The reginal ecnmic impact f the prts industry In this final sectin we examine the ecnmic cntributin f the prts industry acrss the different UK regins, fllwing the apprach set ut earlier in sectin 2 f this reprt. A full set f reginal direct ecnmic impacts fr each year ver the perid t can be fund in Annex A. 5.1 The direct ecnmic impact f the prts industry by UK regin Business Turnver and GVA Figure 18 and Figure 19 belw shw the estimated reginal breakdwn f business turnver and GVA directly supprted by the prts industry in. Figure 18. Reginal breakdwn f turnver directly cntributed by the prts industry in The direct turnver cntributin f the prts industry is brken dwn reginally as fllws: the majrity f turnver ccurs in Lndn, with an estimated value f 6.6bn (r 29% f the ttal). The next largest cntributing regins are the and (in that rder); cntributing apprximately 2.9bn each (arund 13% f the ttal). Nte: Figures subject t runding t nearest 10 millin.

28 28 Figure 19. Reginal breakdwn f GVA directly cntributed by the prts industry in An inspectin f the reginal breakdwn f GVA unsurprisingly yields similar results t thse in Figure 18. It is estimated that Lndn directly generated 2 billin in GVA in, r arund 27% f the industry ttal. The next largest cntributrs were again and the (in that rder), with 1bn and 0.9bn direct GVA cntributins. Nte: Figures subject t runding t nearest 10 millin. Emplyment and the Cmpensatin f Emplyees Figure 20 and Figure 21 verleaf shw the estimated reginal breakdwn f emplyment and the cmpensatin f emplyees directly supprted by the prts industry in. Once again, the lin s share f the direct cntributin is cncentrated in Lndn, with an estimated 9,200 in jbs and 600 millin thrugh the cmpensatin f emplyees.

29 29 Figure 20: Reginal breakdwn f emplyment directly cntributed by the prts industry in The Lndn regin directly cntributes 19,990 jbs (arund 20% f the ttal direct cntributin f the prts industry). The is the next largest cntributr, with 15,190 jbs; fllwed by (14,800 jbs); the (11,200 jbs) and the (10,050 jbs). Nte: Figures subject t runding t the nearest 10 jbs.

30 30 Figure 21: Reginal breakdwn f the direct cntributin thrugh the cmpensatin f emplyees by the prts industry in The direct cmpensatin f emplyees by the prts industry is brken dwn reginally as fllws: Lndn is the largest cntributr with 730m (20%); fllwed by with 560m (15.4); and then the, and regins. Nte: Figures subject t runding t nearest 10 millin. 5.2 The aggregate ecnmic impact f the prts industry by UK regin This final subsectin examines the aggregate ecnmic impact f the prts industry acrss each regin fr the fur macrecnmic indicatrs cvered in the previus subsectin. In rder t estimate the aggregate ecnmic impact f the industry at reginal level, the direct ecnmic impacts as already estimated were cmbined with Cebr s suite f reginal ecnmic impact mdels, within which the activities f the prts industry were separately identified and islated. It shuld be nted that the ecnmic impact multipliers as estimated fr each regin are necessarily lwer than the equivalent multiplier fr the prts industry as a whle, reflecting the leakage f impacts when the activity f the industry in a particular regin imprts inputs frm elsewhere in the UK utside that regin.