Scottish Key Facts December 2014
SCOTLAND – THE BASICSPopulation 5,327,700 2013
Area 78,807 km2
GDP £132billion 2014, Q2
Total GDP growth on year 2.6% (2014, Q2)
GDP per capita* £24,700 (2014 Q2)
Employment rate (16-64) 73.8% July-Sep
Employment 2,605,000 July-Sep
Unemployment rate (16+) 5.9% July-Sep
Unemployed 164,000 July-Sep
Av. Gross weekly wage (f/t) £508.00 (2013)
Sources: latest data from Mid 2013 population est and Office for National Statistics. GDP Bulletin, Scottish Government Quarterly National Accounts Scotland (onshore figure)*, Labour Market briefing (Nov 2014) / SCOTLAND’S POPULATION
City City region*
Glasgow 593,200 1,787,500
Edinburgh 476,600 1,313,700
Aberdeen 222,800 475,800
Dundee 147,300 410,000
Stirling 48,480 90,200
Perth 47,180 146,700
Inverness 46,870 232,100
Source: Mid-2012 Populations Estimates for Settlements and Localities in Scotland (table 2A) and 2011 Census: First Results on Population and Household Estimates for Scotland - Release 1B
*City regions Aberdeen: Abdn & Aberdeenshire, Dundee: Dundee, Angus, Perth&Kinross. Edinburgh: Edin, East&West Midlothian, Fife&Borders. Glasgow: Glasgow, N&S Lanarkshire, E&W Dunbartonshire, E.Ren&Renfrewshire, Inverclyde. Inverness: Highland, Perth: Perth&Kinross, Stirling: Stirling
EMPLOYMENT by BROAD INDUSTRY GROUP
Agriculture, Forestry & Fishing 82
Mining, Quarrying & Utilities 65
Manufacturing 184
Construction 126
Motor Trades 40
Wholesale 74
Retail 241
Transport & Storage (inc Postal) 96
Accommodation & Food Services 167
Information & Communication 58
Finance & Insurance 91
Property 33
Professional, Scientific & Technical 152
Business Admin. & Support Services 204
Education 180
Health 377
Public Administration 145
Other 113
Source: Business Register and Employment Survey (BRES), 2012 revised, Table 4 - Regional level employment (thousands) by BIG (public/private sector split) / SECTOR PROFILES
GDP at basic prices (GVA) £m 2011 2012
Aerospace 444 386
Business Services 5863 6414
Construction 5842 5772
Creative industries (inc digital) 2813 3068
Energy (inc renewable) 25923 23099
Financial & Insurance 7638 8208
Food and Drink* - -
Life Sciences 1638 1637**
Manufacturing 12018 11896
Retail 6306 6135
Shipbuilding 488 462
Spirits (inc whisky) 2227 2063
Tourism related industries 2846 3240
*Currently being reviewed, Source: Scottish Government Growth Sector Database, Regional GVA Income Approach (Dec 2014) (table 1.3).
This survey does not cover certain sectors, The sectors here are defined as per Scottish Government sector definitions, which may differ from Scottish Enterprise Industry definitions). Please note that a chemicals profile has not been produced for SIC codes 20 & 21, see Scottish Government website for further details.
BUSINESSES IN SCOTLAND
The total number of private sector enterprises in Scotland was335,015at March 2014, a2.4% decrease(8,090 enterprises) on March 2013.Large enterprises (250+ employees) accounted for 45.2% of private sector employment and 62.1% of private sector turnover.SMEs in Scotland fell by2.4%to 332,720in March 2014, accounting for 99.3% of all private sector enterprises, 54.8% of private sector employment and 37.9% of private sector turnover. Registered private sector enterprises with ultimate ownership outside Scotland accounted for 3% of firms, 34.4% of employment, and 57.1% of turnover.The two largest sectors are ‘Professional, Scientific & Technical Activities’ and Construction.15.6% (52,160) of private sector enterprises were in the ‘Professional, Scientific & Technical Activities’ sector while 13.3% (44,540) were in the Construction sector.
Source: Business in Scotland 2014 (November 2014); Scottish Government
INNOVATIONScottish Business Enterprise R&D (BERD) expenditure was £707 million in 2012, which represented 0.59% of Scottish GDP (compared to 1.09% in the UK). BERD expenditure in Scotland is dominated by the Manufacturing sector (£462 million), followed by the Services sector (£180 million) and then Other sectors (£65 million), such as Extractive industries.
Within the UK, the bulk of BERD expenditure takes place within the South East (23.9%) and the East of England (20.2%) regions. In terms of expenditure as a percentage of GDP,
Scotland ranked eighth out of the 12 UK regions/countries in 2012.
Scottish GERD, which comprises R&D undertaken by the Business (BERD), Higher Education (HERD), Government (GoveRD) and Private Non-Profit (PNP) sectors was £1,922 million in 2012, 7.1% of the UK total. In nominal terms this is the same amount as was reported in 2011, whilst in real terms this represents a decrease of £34 million or 1.7% since 2011. GERD (excluding PNP) was 1.58% of Scottish GDP in 2012; this compares to 1.72% for the UK and 1.97% for the EU.
Source: Business Enterprise Research and Development Scotland 2012 (Jan 2014) Scottish Government and Gross Expenditure on Research and Development Scotland 2012 (Mar 2014) / EXPORTS
The value of Scotland's international exports (excluding oil and gas) stood at an estimated £26 billion. This represents an increase of £1.4 billion (5.9%) since 2011.
Scottish Export Performance 2012 £billion
Production/construction 17.0
(of which Manufacturing 15.4)
Services 8.7
Agriculture/Forestry/Fishing 0.3
Top Export Industries £billion
Food & Drink 4.7
(of which Whisky 3.9)
Chemicals (incl. Petroleum Products) 4.5
Oil and Gas supply chain* 3.7
Financial & Insurance Services 1.4
Manuf of Machinery & Equipment 1.3
Manuf of Electronic & Optical Products 1.1
Top 5 Export Destinations £billion
USA 3.6 Netherlands 2.7
France 2.2
Germany 1.5
Norway 0.9
Total Exports by Destination Region £billion
EU27 11.7
North America 3.9
Asia 2.7
Rest of Europe 2.5
Middle East 1.2
Africa 1.2
Other (unallocable) 1.2
Central & South America 1.1
Australasia 0.5
Source: Global Connections Survey 2012, Scottish Government, Jan 2014, * Survey of International Activity in the Oil & Gas Sector 2012-13 (direct only international sales) HMRC
EDUCATION
Scotland has 19 autonomous higher education institutions (HEI) – 17 of these are universities (The SRUC and the Royal Conservatoire are not universities but are classed as HEIs). This diverse range of HEIs includes 14 campus based universities, one distance-learning university, an educational partnership institution based in the Highlands and Islands, one art school, a conservatoire and an agricultural college. The Scottish Funding Council also funds 37 colleges. In 2012-13 there were278,765 students in higher education in Scotland. Compared to 2011-12, total student numbers fell by 2,865 (1%). For higher education institutions (HEIs) as a whole, the number of students fell by 2,040 (or 0.9%) to 230,970 in 2012-13. The number of students participating in HE in colleges also fell, by 825 (1.7%) 2011-12 to 47,795 in 2012-13. The number of Higher Education qualifiers from Scottish institutions has continued to rise, in the most recent year by 2.9% (2,710 qualifiers) to 95,580 which is the highest level recorded. In 2011-12, there were 48,115 overseas students enrolled in HE courses at Scottish HEIs and Colleges representing an increase of 1,170 (or 2.4%) from 2011-112. The majority (56.8% or 27,335) of those overseas students came from outwith Europe, with China (8,445 students), the United States of America (3,790), and India (2,250). SFCinvests around £1.6 billion inScotland's colleges and universities for teaching and learning, research and other activities in support of Scottish government priorities. SFC’s total funding in the academic year 2014/15 for universities will be £1.07bn*, and for colleges will be £526.3m**.
Sources: Higher Education Students and Qualifiers at Scottish Institutions 2012-13 - Mar 2014 (SFC); *Outcome Agreements for Universities Indicative Funding Decisions for AY 14-15 (SFC); **Outcome Agreements for Colleges Indicative Funding Decisions for AY 14-15 (SFC)
SCOTLAND’S INDUSTRIES
CHEMICAL SCIENCESAs one of Scotland's top exporters the chemical sciences sector makes a significant contribution to the economy. Sector exports grew 50% between 2008 and 2012 to £4.5bn, equivalent to 17.3% of international exports, sector turnover was £8.7bn. Over 13,500 people are employed directly in the industry base of 200+ companies supported by a steady flow of scientificand technical employees from Scottish universities, higher education institutions and further education colleges. It is estimated that a total of 70,000 jobs in Scotland are dependent on the sector. World-scale companies such as INEOS, MacFarlan Smith, DOW, FUJIFilm, CalaChem, BASF, GlaxoSmithKline and Syngenta have Scottish operations. The chemicals sector accounts for 28% of Scottish manufacturing by turnover. Chemical sciences research and development, focused on the development of new products and processes, accounts for 18 per cent of Scottish business R&D (including Pharma).This is supported by Scotland’s world class academic base and in particular ScotCHEM, the collaborative venture for the pooling and enhancement of resources for chemistry research in Scotland, bringing together the major players in research in chemical sciences. The nationwide Research Assessment Exercise (RAE) recognised that four of the UK’s top 10 research departments are in Scotland, including WestCHEM and EastCHEM collaborations. RAE determined EastCHEM, the research collaboration between Edinburgh and St Andrews Universites, had the best chemistry faculty power rating in Britain.
CONSTRUCTION The construction industry encompasses a wide range of sub sectors and specialisms; from a supply chain of materials producers (timber, aggregates, cement/concrete etc), through component producers (mechanical/ electrical, building products and construction systems), major, minor and specialist contractors; to architecture/ design/finance/project management/engineering knowledge. In total there are over 31,000 businesses (though less than 3000 employ more than 50 people, and only around 300/350 are of significant scale), and it employs 170,000 people (10% of total Scottish jobs) in the construction sector itself, and a further 38,000 people in its materials supply chain. The construction industry delivers £21.4bn (9%) of Scotland’s GDP, and £8.7bn (10%) of Scotland’s GVA. Its supply chain delivers further significant GVA impact (e.g. the timber supply chain delivers a further £1.1bn) Industry output “enables” a significant proportion of other industries’ to contribute to the economy (e.g. via road/rail, built environment, or specialist construction relating to energy, water, etc). Historically more than 60% of the industry’s turnover originates from the public sector in various forms (infrastructure, social housing, and public buildings). The industry is spread throughout Scotland, with particular concentrations in the central belt and north east, but significant employment exists in all parts of Scotland, including all rural areas where these jobs are of particular significance and importance. The industry’s dominant key market is the UK (with £1.1bn exported the rest of the UK). Scotland has an international reputation for Architecture and Design, Value Engineering and Project Management, and increasingly Low Carbon Products and Technologies, key markets include Western Europe; Middle East; USA/Canada, and Eastern Europe; these account for £80m of (non UK) exports, with significant potential for further future expansion in the medium term. The built environment accounts for nearly 50% of all Scotland’s carbon/CO2 emissions, arising from a wide range of activities relating to the construction and operation of buildings (encompassing extraction and processing of raw materials, production & use of products & materials, site operations, as well as heating, lighting and running of buildings). In addition, the industry is responsible for around 40% of all waste to landfill. Sustainable construction/low carbon built environment are vitally important to the industry, to the Scottish economy and in delivering Scotland’s low carbon targets. Business and public awareness and concern over rising energy costs, environmental, planning and building standards considerations, and initiatives such as Scotland’s low carbon targets and Green Deal will continue to demand increasing innovation in both products and systems – creating a competitive advantage in other UK and international markets. Construction Scotland (the industry leadership group) has launched an industry led construction Innovation centre, which will focus and deliver HEI support/expertise and accelerate development of new construction products, systems and services by businesses. Innovation demand, supported by Scotland’s HEI construction expertise, will deliver significant competitive advantage. It is estimated that up to 14,000 businesses in Scotland are already involved in Low Carbon Built Environment activity.
CREATIVE INDUSTRIES This sector makes an important contribution to the Scottish economy employing 65,200 people, and contributes £2.8B GVA with a turnover of £4.9B. Scotland has world class companies in all areas of the creative industries; from international leaders in games development and interactive platforms to national broadcasters and successful production companies. Scotland has global centres of research excellence which develop next generation technologies to support ongoing growth in the digital media environment, and a well developed infrastructure to support company growth. SE’s key focus is on high growth digital media. SE works with a Digital Media Industry Leadership Group and in partnership with industry, government and the wider public sector. SE maintains close relationships with many key partners and stakeholders; the Technology Strategy Board, the Creative Industries Knowledge Transfer Network, Creative Scotland, trade bodies such as PACT, TIGA and Scottish Music Industry Association, the broadcasters BBC/STV/Channel 4, and management and leadership development organisation, TRC Media. SE also works with a number of academic institutions including Abertay University and Edinburgh’s School of Informatics. Major projects include the ambitious Creative Clyde project which presents a unique opportunity to build on the achievements of the Pacific Quay, Clyde Waterfront and Digital Media Quarter projects to create a hub for one of the fastest growing sectors in the economy. District 10 is an infrastructure project at Seabraes yard in Dundee that uses shipping containers to build affordable office accommodation aimed at early stage creative industry companies. Interactive Scotland has been developed by Scottish Enterprise to drive growth in the sector and support the industry strategy across Scotland.
TECHNOLOGY & ENGINEERING includes high-value manufacturing, advanced materials, software, electronics, sensors and photonics. There are nearly 10,000 technology and engineering companies in Scotland employing 155,000 people in total. Examples of leading companies in the sector include Rolls Royce, BAE Systems, Lockheed Martin, Oracle, Alexander Dennis, Selex ES, Thales and Cirrus Logic. Annually the sector generates turnover of £24.4bn, including exports of £6.5bn, contributing a gross value added (GVA) of £11.2bn to the Scottish economy. Its highly skilled workforce produces £69,565 GVA per head, well above the Scottish average. The capabilities of the sector are diverse but there are clusters around rugged engineering, data capture, real world interfaces and informatics: capabilities which also support the growth and development of Scotland’s other sectors. Key application markets include oil and gas, renewable energy, aerospace, defence and marine. In addition, there is a strong focus on addressing new opportunities in digital health and care, sensor systems, big data and smart mobility. New Innovation Centres are connecting world-class academic research to industry, such as the Digital Health Institute, CENSIS for Sensor and Imaging Systems and the recently announced Data Lab. These complement established facilities including the Advanced Forming Research Centre, part of the UK High Value Manufacturing Catapult. The development of the sector is ably supported through the work of Scotland's Technology Advisory Group (TAG).