Slough Business Focus Study & Strategic Response Slough Borough Council. May 2015

Transcription

1 Slough Business Focus Study & Strategic Response Slough Borough Council May 2015

2 Slough Strategic Response Paper 1

3 Summary This paper sets out possible areas for intervention for Slough Borough Council and partners to respond to economic development issues locally. The interventions respond specifically to the needs which have been identified in the Slough Business Focus Study and include: Support economic growth Support key sectors and diversify into new ones Address skills issues Encourage and support enterprise and innovation Support development at key employment sites Address deficits in sites and premises Maximise opportunities resulting from transport 2

4 Support Economic Growth Achieving economic success and improving the competitiveness of Slough into the future are two key issues which need to be addressed. This will require a broad set of interventions cutting across a number of areas for example, skills, enterprise and infrastructure (amongst others) and these are discussed further below. Given the success of London, and Sloughs location in close proximity to boroughs in West London, Slough could look to these areas for opportunities in terms of investment, supply-chains, business and sector opportunities. The two critical issues for Slough are as follows: 1. Improve Slough s competitiveness: there are some signs that Slough is becoming less competitive compared to other areas. According to the UK Competitiveness Index, Slough has lost its competitiveness compared to other areas since 2008, falling two places to the 50th most competitive borough in the UK (out of 407). In order to address this issue, Slough needs to identify and communicate its USP to ensure that it can compete, promoting its business strengths and strengths in key sectors will be key. Ensuring that Slough remains an attractive place to live and work will also be important and ensuring that the town centre remains attractive will be key. 2. Address employment decline: whilst the business base in Slough increased between 2008 and 2013, the borough has witnessed a decline in employment over the same period. A decline of -0.6% is higher than that experienced nationally (-0.2%) and is in contrast to the growth experienced by the West London Alliance area over the same period (+5.7%). The sector recommendations below (amongst other recommendations) will be important in addressing employment decline. 3

5 Support key sectors and diversify into new ones Slough should continue to support key sectors whilst looking to diversify into new ones. Key sectors for Slough include the following: 1. ICT: this sector supports 16% (13,050) of all jobs in Slough. It is a fast growing sector with employment increasing by 8% since Slough also has a significant specialism in this sector compared to the UK as a whole. As a high value added sector with potential for growth nationally, this sector should be supported. Slough has recently lost key employers in this sector to other locations and it is important that the area does not lose its competitiveness in relation to this area. We understand that there is significant demand for data centres in Slough and it is important that this is supported together with higher value opportunities. Other strengths which provide opportunities include software and ICT consultancy. Ensuring that the skills are in place to support this sector (particularly STEM/digital skills) will be important. 2. Logistics: this is also a key sector for Slough, supporting 8,260 employees (10% of the total) and employment is particularly concentrated compared to national levels. However, the sector has experienced a decline in employment of around 15% since This could be due to a range of factors such as increased levels of productivity and increased competition from other locations. Given Slough s accessibility, it is expected that growth in this sector will continue to be strong. There is a strong presence around Heathrow airport and to some extent the growth of the sector will be dependent on the future of the airport. Ensuring strong accessibility and good transport links, together with provision of large sites to support growth will be key. 4

6 Support key sectors and diversify into new ones Slough should continue to support key sectors whilst looking to diversify into new ones. Key sectors for Slough include the following: 3. Retail: there are 13,600 jobs within the wholesale and retail trade sector in Slough (17%) but employment in this sector is declining. Promoting and ensuring the growth of this sector will be essential to the growth of Slough town centre, a key priority for the borough. This will only happen if wider improvements to the town centre are made (as part of the Heart of Slough initiative). In relation to retail, consideration should be given to the role and vision of the town centre and how it can differentiate itself from other nearby centres which have received investment (such as Bracknell Forest and Reading). 4. To a lesser extent food manufacturing is a key sector but more broadly it is advanced manufacturing which is important. The food manufacturing sector is also fairly small in size, employing 2,420 people and employment in the sector is declining. Nevertheless, levels of concentration within this sector in Slough are higher than nationally. There may be some opportunities for growth in this sector but this should be seen in the context of developing advanced manufacturing techniques. With competition from lower cost overseas locations for manufacturing activities, Slough will need to ensure that it can communicate the right offer to retain and attract firms in this sector. 5

7 Support key sectors and diversify into new ones At the same time, it is important that Slough does not become too focused on a narrow range of sectors, which would leave the area vulnerable to structural changes in the economy. Slough should look to diversify into new opportunities: Pharmaceuticals and life sciences: is a key opportunity. This sector already supports 1,530 jobs in Slough but employment is growing and the area has greater specialisms compared to nationally. Nationally, life sciences is seen to be a key growth area, with increased demand resulting from a growing and ageing population (with people living longer). As well as pharmaceuticals, there may be opportunities resulting from an ageing population, particularly around medical technologies and assisted living. Slough BC needs to recognise the challenges for all of these sectors (e.g. competition from abroad) and as such the area should not be complacent. Further work will need to be carried out to understand specific opportunities for investment. Key priorities include: Carry out research into emerging sector opportunities such as life sciences (as well as potentially the creative industries sector, though this is small in size). This should identify the specific opportunities for growth and provide a clear action plan to achieve this. Overall, intervention will be required to support key and new sectors across the following areas: supporting skills within these sectors; making sites available which are suitable for the needs of the sector; provide targeted business support to encourage higher value / high growth opportunities. An inward investment strategy to attract new firms in key sectors will also be important. 6

8 Address Skills Issues Addressing skills issues in Slough will be important in ensuring that local people can benefit from the opportunities which exist across the borough and can help to enhance the competitiveness of the area. There are a number of priorities or issues: 1. Address low levels of attainment and support progression: Slough is the 6th highest achieving local authority in the country and highest performing outside of London in terms of students achieving five or more GCSEs grade A*- C. At the same time, an above average proportion of residents in Slough have no qualifications. Whilst there are increasing levels of residents qualified to NVQ Level 4 + and above in Slough (i.e. degree level qualifications), performance is still below other comparator areas such as the Thames Valley Berkshire LEP and the West London Alliance. Issues of low levels of attainment need to be addressed and there needs to be greater emphasis on progression. This will be key to ensuring that local people can access jobs locally and key responses include: Work with partners such as FE Colleges to provide information, advice and guidance (IAG) to local people to ensure that they are aware of the opportunities which exist and how to access these. An emphasis should be placed on providing information about skills opportunities which relate to the types of jobs which are available locally. As well as progression to university, vocational routes will also be important. 7

9 Address Skills Issues 2. Address issues which cause a skills mismatch: our discussions have indicated that there is a severe skills mismatch in Slough, with the relatively low skilled workforce in Slough contrasting with the highly skilled nature of the jobs which are available locally. The high levels of in-commuting into Slough and the differentials between resident and workplace based earnings confirm that this is an issue. Tackling the supply side issues which exist, that is providers working with residents and employers to ensure that specific skills needs are understood and responded to will be a priority. Demand side issues (i.e. ensuring a range of suitable jobs and a responsible approach to local recruitment from employers) are also important. Key priorities include the following: Partners (Slough BC, FE providers) need to develop a better understanding of business skills needs. A business survey or in-depth discussions with key firms across a range of key sectors would help to develop a better understanding of the issues and requirements. This will inform the specific response required. Provide opportunities to develop Science, technology, engineering and maths (STEM) skills, which are important for supporting the IT and science based firms based in Slough. FE providers will need to ensure that there is appropriate provision in these areas to support these skills. This could include working with local employers to provide apprenticeships. Improve basic skills amongst local residents. There are still reported to be particular issues locally in relation to a lack of basic skills such as English and maths. Again, FE providers need to ensure that there is appropriate provision which local people can access. Slough Aspire allows local businesses to collaborate with public sector partners to ensure the local workforce has the right level of skills to meet the needs of local companies. A Skills and Enterprise Centre has been created at Slough Trading Estate and East Berkshire College delivers training on site which is aligned to business needs. This is a key project which should be supported and where required enhanced. This may include providing more specific opportunities for companies to discuss vacancies and providing recruitment opportunities. 8

10 Encourage and Support Enterprise and Innovation 1. Address low business survival rates in Slough: Slough s business start-up rate is above that for the Thames Valley Berkshire LEP and national levels, which is positive. However, the 5 year business survival rate in Slough is lower than all of the other boroughs within the Thames Valley Berkshire LEP area. Our research suggests that the majority of businesses who stop trading, do so within the second and third years after they are established. Support is therefore required to address the low survival rates locally. Key responses include: Firstly, further research is required to understand what is driving levels of start-up in Slough, the characteristics of these firms, and their requirements (e.g. property and infrastructure). It is also important to understand what the key barriers are which are resulting in the low survival rates (e.g. finance, markets) to inform a response to address this. Secondly, it is important that support is provided to encourage business start-ups and to promote their growth. It is likely that Thames Valley Berkshire Business Growth Hub will provide key opportunities for the area in this regard. In addition, the European Structural and Investment Fund Strategy (ESIF) for Thames Valley Berkshire will also provide opportunities for specific business support projects locally. 9

11 Encourage and Support Enterprise and Innovation 2. Support Innovation and R&D: data available suggests that there are high levels of innovation amongst businesses located in the South East. The nature of the firms in Slough, particularly around the Trading Estate also suggests that there are reasonably high levels of innovation and R&D and it is important that this is supported and encouraged. Key responses are likely to include: Further research could be carried out to understand the true extent of innovation and investment in R&D amongst businesses located in Slough. This could be used as an opportunity to promote the area and to raise local profile. Some firms, particularly SME s will require support with innovation and R&D and partners can assist through developing links with universities and research institutes. Due to the lack of a university in Slough, partners should look to forge greater links with key, relevant institutions outside of the borough. The Growth Hub and ESIF will both provide opportunities for support in this area. 10

12 Support development at key employment sites There are two key employment sites which should be the focus for attention. The key issues and responses relating to these are summarised below. 1. Support Town Centre Regeneration: the town centre experienced the highest loss of jobs out of all SOAs with 1,750 jobs lost between 2008 and Investment is therefore required to enhance the town centre s competitiveness and to create employment. The town centre currently has a poor image and offer and there is limited choice in terms of retail, restaurants and leisure uses and this acts as a barrier to supporting footfall and development in the town. The Heart of Slough project is aimed at regenerating the town centre, with a number of key developments such as the bus station improvements already complete or underway. The council is preparing a revised strategy (including a fresh vision) for the town centre and it is important that this is progressed. The council has a key role in driving this forward through land assembly and working with the private sector to secure investment (potentially through a joint venture partnership). It is important that a mix of uses is promoted such as residential and commercial uses. There should be a focus on improving the image of Slough, together with developments which can improve the town centre gateways. In terms of commercial premises, our discussions have indicated that there is a need for more Grade A office space and that this should be delivered in time to capitalise on key improvements such as Crossrail and WRaTH. There is a need to differentiate the town centre s offer with that available at Slough Trading Estate, which suggests a stronger focus on space for medium sized firms together with smaller businesses. 11

13 Support development at key employment sites 2. Slough Trading Estate: has been performing reasonably well and has seen a marginal increase in employment (980 jobs since 2008), whilst Slough overall has seen a decline. It is important that the role of the Trading Estate is maintained and enhanced, since this is a key asset for the Thames Valley Berkshire area as a whole, as well as Slough. The key responses to ensure the estates competitiveness includes the following: Recognise and assist with transport and parking issues: there are particular challenges around congestion and car parking on the estate. In terms of addressing this issue, the focus should be on the promotion of a sustainable transport plan to encourage more people to travel by public transport and to ensure better links between the estate and the town centre. The expansion of Heathrow is also key to the estate s continued success with around 60% of firms at Slough Trading Estate indicating that they are located there to be in close proximity to the airport. Continued support for its expansion is therefore important. Identify and maximise opportunities for development: a lack of development land is not just specific to the expansion of Trading Estate but a wider issue across the whole of Slough to support employment growth. Slough Borough Council should work with the Trading Estate to maximise opportunities for development on the site (through re-use of land, maximising density where possible and identifying additional development opportunities). Failure to do this will lead to stagnating or declining employment levels and loss of opportunities to employment sites elsewhere. Tackling skills issues will also be important and the actions identified above will be critical in addressing some of the issues which exist. Continued support for Slough Aspire will be important. 12

14 Address Deficits in Sites and Premises Ensuring that there are sufficient sites and premises available for businesses will be critical to supporting growth. Key issues and responses are likely to include: 1. Ensure that there are sufficient sites to support development: there is already a shortage of land at some locations (such as Slough Trading Estate). Discussions have also indicated that there is some concern over the availability of sites to accommodate development in Slough post 2019 when there is likely to be no allocated greenfield sites available to accommodate additional development. The council should begin to consider how it will address these issues now and it is particularly important that employment land is not lost to other higher value uses such as housing. Protecting key sites and marketing these will be key. 2. Use land more effectively: some land can also be used more effectively, for example in the town centre, there are opportunities for higher value uses and redevelopment of sites. This will be particularly important as the availability of land becomes more constrained. 3. Address housing issues: it is important that sufficient homes are developed to support a growing population and to address affordability issues which exist across the South East. It is important that the right mix of housing is delivered to support growth, with a requirement for new, good quality housing in Slough which will appeal to those in higher level occupations. 4. Ensure that there are sufficient commercial premises to meet demand: our discussions have indicated that there is a shortage of Grade A offices in Slough. At the same time, we understand that some good office space has been available for some time. It is anticipated that demand for this type of space will increase with new transport improvements such as Crossrail and Slough needs to be positioned to capitalise from these developments. Key sites which will benefit include the town centre as well as Slough Trading Estate. 13

15 Maximise Transport Opportunities A number of transport opportunities exist and it is important that Slough capitalises on this. At the same time, there is a need to continue to address any transport issues which exist. 1. Reinforce local connectivity: the area s strong transport connectivity is one of the key factors underpinning its local economic performance, making the area attractive to businesses and enabling labour market improvements. Infrastructure investments such as Crossrail and Western Rail Access to Heathrow (WRAtH) will help to reinforce Slough s comparative advantage, boosting investment. Identifying additional opportunities for investment which can maintain the areas competitiveness will be key. 2. Address congestion issues: it is recognised that this is a key potential constraint to the area s economic success and solutions to address this may include car sharing and home working. Continuation of good public transport links (e.g. shuttle buses) to and from key employment areas such as Slough Trading Estate may also help to reduce congestion. 3. Ensure continued success of Heathrowthe expansion of Heathrow is important in ensuring the areas success with locations such as Slough Trading Estate attractive to businesses who wish to be in close proximity to an international airport. Some sectors such as pharmaceuticals are particularly reliant on this. Continued support for airport expansion will therefore be important. 4. Consider smarter ways to address issues which exist: smart cities use digital technologies to enhance performance, reduce costs/consumption. There is support for the concept at both European and national level (BIS). Transport is one of the key smart sectors and this may provide opportunities to identify smarter ways to deal with issues such as congestion e.g. through smarter ways to travel. The council could explore European funding opportunities to support this. 14

16 Implementation A strong performing economy in Slough will require collaborative working with a range of partners. Slough BC should look to work with the following key groups in order to support growth locally: 1. Private Sector: engaging with local businesses will be important in ensuring that Slough BC has a good understanding of the nature of the issues which exist and ensuring that any support meets these needs. The council should seek to maximise opportunities to secure their input into designing and implementing economic development initiatives. As well as larger firms (e.g. those relating to key sectors), this should also include small and medium sized firms. Engaging with developers and landlords across the town will be particularly important. 2. Key Stakeholders: engagement with a range of partners including colleges (such as East Berkshire College), business support organisations (such as the local chamber of commerce) as well as community and voluntary groups will also be important in terms of the delivery of economic development initiatives. 3. Neighbouring Local Authorities: engagement with this group will be particularly important in terms of addressing cross-boundary planning issues. This is essential in the light of potential constraints over land for housing and commercial development. 4. Thames Valley Berkshire LEP: is likely to continue to play an important role in providing strategic input into economic development issues across the area and in providing funding opportunities to support key projects. It is important therefore that Slough BC continues to have a strong representation on the LEP to ensure that this partnership reflects any issues and priorities which are important to the council, particularly for large strategic issues such as sites and transport. 15

17 Funding Slough BC should explore funding opportunities to support economic development priorities. Some of the key opportunities are likely to include: Local Growth Fund (LGF): Growth Deals provide funds to local enterprise partnerships (LEPs) for projects that benefit the local area and economy, focusing on job creation. LEPs themselves are responsible for identifying priority projects, working closely with partners such as local authorities. Potential projects include infrastructure projects (such as roads or enabling site development) as well as projects which support key sectors. Regional Growth Fund (RGF): supports projects which are raising economic growth and employment. The focus is on projects which create jobs and bids need to be led by the private sector. Nationally, there has been funding across a number of key sectors such as automotives and low carbon. A smaller number of projects have been supported in the South East. Nevertheless, Slough BC could work with the private sector to develop bids which support jobs growth. European Funding: there are various strands of European funding available. The LEPs ESIF document sets out priorities for projects focusing on ESF (skills investment) and ERDF (e.g. innovation). There is also European funding to support the Trans-European Transport Network (TEN-T) which could also be explored. URBACT can provide finding towards city planning and Interreg can provide opportunities for projects focusing on innovation. Other funding: other opportunities stem from New Homes Bonus (NHB) and retention of business rates. S106 or CIL can provide funding from developers to support the necessary investment in infrastructure such as roads. 16

18 Slough Sector Study Section 1: Introduction 17

19 Section 1 Introduction, Contents and Approach Study Purpose and Context Regeneris has been commissioned by Slough Borough Council to carry out an Economic Study which is seeking to provide an up to date picture of the nature of the business community in Slough (including numbers of firms, size and sectors) and the growth potential of the business base. This builds on the 2011 Local Economic Assessment carried out for East Berkshire (focusing on both Slough BC and Windsor and Maidenhead Council). Our work will also provide some high level recommendations which will update the 2011 Strategic Response document. This report sets out the findings of our research and provides: Section 2 A summary of the headline characteristics of the Slough economy, focusing on business and enterprise performance in the Borough Section 3 A headline review of the Borough s sectoral composition Section 4 A detailed consideration of the Boroughs key sectors, focusing on performance and opportunities in ICT, Pharma and Life Sciences, Logistics and Food Manufacturing. 18

20 Section 1 Introduction, Contents and Approach Study Approach The research has been largely a desk-based, statistical exercise, and has drawn upon the following data-sources: The Inter-Departmental Business Register (IDBR) we have used the 2014 IDBR dataset for Slough throughout. This is the most detailed local economic dataset available, providing intelligence on the Slough economy at the level of individual firms The Business Register and Employment Survey (BRES) we have supported our analysis with information from the BRES. This provides survey based information on employment at the local level and allows comparison of Slough performance to wider geographies. Other ONS Datasets we have also used a number of other relevant ONS datasets including ONS business start up and demography data. These datasets are referenced where relevant within the text. We have used comparator areas throughout the data analysis to gain a better understanding of Slough s economy relative to its neighbours, in addition to national data. Areas which were chosen for comparison are: Thames Valley Berkshire LEP (consisting of Bracknell Forest, Reading, Slough, West Berkshire, Windsor and Maidenhead and Wokingham) West London Alliance (consisting of Barnet, Brent, Ealing, Harrow, Hillingdon and Hounslow) In addition a number of consultations were held with a variety of key stakeholders in the Slough economy to gain a better understanding of current business needs in the Borough, potential opportunities for future business growth and where there is room for improvement in Slough s economy in the future. 19

21 Section 2: The Slough Economy This section provides a headline level update on overall economic performance across Slough 20

22 Size and Performance of the Slough Economy Section 2: The Slough Economy Economy Overview The performance of the Slough economy has been mixed in recent years, with the recent recession constricting opportunities for growth. The business base has increased by 17.0% between 2008 and 2013, with strong growth in the number of micro businesses (+28.3%). This business growth is higher than experienced in the Thames Valley Berkshire LEP (+8.6%) and nationally (6.3%), although similar to business growth in the West London Alliance (17.5%) The borough is home to around 82,000 jobs, however this has declined slightly since 2008 (-0.6%). This is likely to be due to a lack of business confidence after the recession, with Slough experiencing a higher employment decline than nationally (-0.2%). Across Thames Valley Berkshire LEP there was a larger decline in employment between 2008 and 2013 (-0.9%), although West London Alliance experienced employment growth of 5.7%. When ranked across a range of socio-economic indicators, Slough is ranked as the 50 th most competitive borough in the UK (out of 407), however it is the lowest ranked borough in the Thames Valley Berkshire LEP and has lost competitiveness relative to other areas since 2008 (falling by two places). Slough s Business and Employment Base Change Business Base Businesses 4,685 5, (17.0%) Micro Businesses (0-5 employees) 2,950 3, (28.3%) Large Businesses (250+ employees) (0.0%) Mean Business Size (1.9%) Employment Base Total Employment 82,050 81, (-0.6%) % Full-time Employment 77.7% 78.2% 0.5% Overall Competitiveness UK Competitiveness Index Rank* vs UK Boroughs 48 th (out of 407) 50 th (out of 407) -2 *The UK Competitiveness Index is an integrated measure of competitiveness across the UK focusing on both the development and sustainability of businesses and the economic welfare of individuals. Accessed from 21

23 Section 2: The Slough Economy Regional Output Size and Performance of the Berkshire Economy The wider Berkshire region is a highly productive area and is the most productive NUTS 3 sub region in the UK outside of London. This is calculated by the GVA produced per hour worked and indicates that businesses in the region are highly efficient in producing goods and services. Berkshire GVA per head, 2013 Inner London - West 135,888 Inner London - East Berkshire Edinburgh, City of Milton Keynes Belfast Aberdeen City and Aberdeenshire 38,921 38,918 38,134 38,029 36,553 36,242 Glasgow City Swindon Surrey Bristol, City of Oxfordshire 32,279 30,945 30,610 28,863 28,767 United Kingdom 23,755 20,000 25,000 30,000 35,000 40,000 45,000 50,000 Source: ONS GVA by Sub-Region (2013) GVA per head 22

24 Size and Performance of the Berkshire Economy Section 2: The Slough Economy Regional Output The growth rate of GVA in the Berkshire has been very volatile over the last 15 years, although it has only declined once (in 2009). When analysing Berkshire s GVA growth by sector over the last 15 years, seven sectors have seen their GVA double in that time period. Sectors which have performed well are: Real Estate (162%), Information and Communications (138%), Agriculture (117%) and Public Administration, Education and Health (111%). Sectors which have not performed well are: Production (of which manufacturing is one component) (19%) and Finance and Insurance (54%), which may in part be due to the financial crisis of % 8% 6% 4% 2% Berkshire GVA Growth Rate (%) 180% 160% 140% 120% 100% 80% 60% 40% 20% 0% -20% Berkshire GVA Growth Rate by Sector, (%) 162% 138% 138% 117% 106% 108% 111% 93% 72% 54% 19% -4% 0% -2% GVA Growth Rate (%) Source: ONS GVA by Sub-Region (2013) Source: ONS GVA by Sub-Region (2013) 23

25 Recent Business Performance: Regionally Section 2: The Slough Economy Recent Business Performance Slough has experienced a significant increase in its business base since 2004 (+43.3%*) and this is the highest level of business growth across the Thames Valley Berkshire LEP (+19.6%). Slough has a relatively low business density, with 55.9 business per 1,000 population relative to the national level (56.8). Across Thames Valley Berkshire LEP, the business density is 72.1, with concentrations in Windsor and Maidenhead (101.1) and West Berkshire (89.2).This reflects the presence of several large firms in Slough. % Change in Business Base, Business Density, 2013 Source: ONS Business Demography (2013) * = Data source (ONS Business Demography) is different to slide 5 (UK Business Count) Source: Annual Population Survey (2013) & UK Business Count (2013) 24

26 Section 2: The Slough Economy Recent Business Performance Recent Business Performance: Locally When analysing Slough s business performance in more detail, it can be seen that there has been strong business growth in information and communication (+47.5%), health (GPs, hospitals and care homes) (+45.9%) and transport and storage (+29.9%). The sector which has seen the largest decline is the public administration and defence (-42.9%) sector and this is largely the result of the current austerity measures in the public sector. Areas which have seen exceptional business growth within Slough are the West of Langley (+59.0%) and Wexham (+45.8%). The Slough Trading Estate has had the smallest rise in the business base, increasing by only 0.9% since % Change in Business Base, % Change in Business Base by sector, Manufacturing 2% Construction 11% Motor trades 15% Wholesale 6% Retail 6% Transport & Storage 30% Accommodation & Food -5% Info & Communication 47% Finance & Insurance -5% Property -4% Professional, Science & Tech 31% Business Admin & Support 6% Public Admin & Defence -43% Education 16% Health 46% Arts, Entertainment & Recreation 8% TOTAL 17% -50% -30% -10% 10% 30% 50% 70% Source: UK Business Count (2010 & 2014) Source: UK Business Count (2010 & 2014) 25

27 Business Characteristics Section 2: The Slough Economy Business Characteristics Slough has a slightly larger average business size than the wider Thames Valley Berkshire area, with 69.1% of businesses employing 0-4 people and 5.1% employing 50+ people, compared to 72.3% and 3.3% respectively across Thames Valley Berkshire as a whole. Slough Thames Valley Berkshire Slough Businesses by Employment Sizeband (IDBR) 0 to 4 5 to 9 10 to to plus Total Number 3, ,480 % 69.1% 12.3% 13.5% 4.3% 0.8% - % 72.3% 12.0% 12.3% 2.8% 0.5% - Slough s businesses base is younger than comparator areas, with 27.2% of businesses less than two years old, compared to 19.9% in Thames Valley Berkshire LEP, 22.6% in the West London Alliance and 17.4% nationally. Additionally, Slough has relatively few well established businesses, with only 31.1% of businesses older than 10 years, compared to 38.6% in Thames Valley Berkshire, 33.5% in the West London Alliance and 42.8% nationally. This suggests that either Slough has recently gained a high number of new businesses, adding to its existing base, or that business survival rates are poor as businesses cannot be competitive in the market. Slough Business Age Profile Less than 2 years 2-3 years 4-9 years 10+ years Slough 27.2% 16.7% 25.0% 31.1% Thames Gateway Berkshire LEP 19.9% 14.4% 27.1% 38.6% West London Alliance 22.6% 16.7% 27.3% 33.5% England 17.4% 13.1% 26.6% 42.8% Source: ONS Business Demography (2013) 26

28 Enterprise Performance Section 2: The Slough Economy Enterprise Performance: Business Start Up Rates Slough has a business start-up rate (10.8) comparable to the Thames Valley Berkshire rate (10.5) and higher than the national level (9.1), although lower than the West London Alliance (13.9). Slough (41.1%) has the lowest 5 year business survival rate out of all the boroughs in the Thames Valley Berkshire LEP (average = 45.2%). Slough does have a slightly better business survival rate than the West London Alliance area (39.7%) The data suggests that the majority of businesses who stop trading, do so within the second and third years after their establishment, with 17.9% of businesses stopping in the second year and 16.2% in the third year. Business Survival Rates (%) based on 2008 business births Per 1,000 Residents Start-up Rate Death Rate Net Change 5 Year Survival Rate Slough % Thames Valley Berkshire LEP West London Alliance % % England % Source: ONS Business Demography (2013) Slough Enterprise Characteristics, % Slough Thames Valley Berkshire LEP West London Alliance England 50% 0% 1 Year 2 Years 3 Years 4 Years 5 Years Source: ONS Business Demography (2013) 27

29 Section 2: The Slough Economy Research and Development Research and Development within the Slough Economy Data for Research and Development (R&D) is only available at the regional level. It reveals that in 2012, the South East of England has the highest R&D spending per head in the UK ( 714 per person). A large proportion of this comes from business, which has an R&D expenditure of 486 per person, and accounts for 68% of all R&D spending. It is not easy to predict patterns of R&D spending in Slough, in part due to two reasons. The presence of many headquarters of large multi-national companies in Slough, could mean that business R&D expenditure is above the South East level. However, the lack of any higher education establishments in Slough, will likely result in less higher education R&D expenditure. R&D Expenditure, s per person (2013) Government Higher Education Business Private Non-Profit Total South East London England Source: ONS (2013) 28

30 Section 2: The Slough Economy Recent Employment Performance Employment Change: Wider Area Slough s total employment has fallen by 0.6% between 2008 and This is a lower fall than experienced across Thames Valley Berkshire LEP (-0.9%), with high falls in Bracknell Forest (-9.2%) and Reading (-3.1%). The West London Alliance saw an increase in employment by 5.7%, experiencing high growth in Hounslow (+11.9%) and Brent (+11.0%). Nationally employment fell by 0.2%. Slough s job density (the number of jobs per working aged person) is 0.9, similar to the Thames Valley Berkshire level (0.9) and higher than nationally (0.8). The West London Alliance has a considerably lower job density (0.6), although this is largely due to high levels of commuting to Central London. Hillingdon has a job density of 1.1, due to the presence of Heathrow Airport, which again has high levels of in-commuting. % Change in Employment, Job Density, 2013 Source: BRES (2008 & 2013) Source: BRES (2013) & Annual Population Survey (2013) 29

31 Employment Change: Locally Analysing employment change at the local level reveals that since 2008, there are 500 fewer jobs in Slough (-0.6%), a higher rate of decline than nationally (-0.2%). Sectors experiencing the highest growth are the Information and Communications sector (+1,530 jobs, +13.1%) and the Transport and Communications sector (+1,140 jobs, +15.4%) Sectors experiencing the highest decline in employment since 2008 are Manufacturing (-1,760 jobs, -19.1%), Business Administration and Support (-1,690 jobs, -16.7%) and Construction (-1,030, -27.9%). The highest increase in employment, occurred in the area between Slough Trading Estate and the town centre, with 1,010 additional jobs created since Slough town centre has seen the highest loss, with 1,750 jobs lost. The Slough Trading Estate has seen an additional 90 jobs since Change in Employment, Section 2: The Slough Economy Recent Employment Performance % Change in Employment by Sector, Manufacturing Construction Wholesale & Retail Transport & Storage Accomodation & Food Info & Comms Finance & Insurance Real Estate Prof., Science Tech Admin & Support Public Admin & Defence Education Health Arts, Entertain. & Rec -40% -20% 0% 20% Slough England Source: BRES (2008 & 2013) Source: BRES (2008 & 2013) 30

32 Economic Activity Section 2: The Slough Economy Labour Market: Economic Activity When analysing economic activity data, it reveals that in 2014, 77.2% of the working age population was economically active, a rate similar to the national level (77.7%) and West London Alliance (76.2%) although lower than the proportion in Thames Valley Berkshire LEP as a whole (81.4%). The proportion of economically active people in Slough has remained constant over the last ten years, with a slight decline experienced during the recent recession. The unemployment rate has fluctuated significantly over the last ten years, largely the result of the recession. Slough has largely remained at the national level for the whole period, although it has been consistently higher than the wider Thames Valley Berkshire LEP area. 84% 82% Economic Activity Rate (%) Slough Thames Valley Berkshire LEP West London Alliance England 6% 5% Unemployment Rate (%) Slough Thames Valley Berkshire LEP West London Alliance England 80% 4% 78% 3% 76% 2% 74% % Source: Annual Population Survey (2013) Source: Claimant Count ( ) 31

33 Section 2: The Slough Economy Labour Market: Salaries and Earnings Recent Performance There is a notable difference between residence-based and workplace-based salaries. The average weekly salary for Slough s residents is 529 whereas the average salary for people working in Slough is 574. This suggests that a significant number of high-earners who work in Slough live outside of the Borough, taking money away from the area. Slough s residents have a very similar weekly salary to the national level ( 524), although this is significantly below the TVB LEP level ( 601) and the West London Alliance ( 580) There are high levels of net in-commuting from Wokingham (1,250), Bracknell Forest (1,130) and Spelthorne (870). Slough has high net out-commuting to Hillingdon (-2,410), Westminster (-1,200) and Windsor and Maidenhead (520). Residence-based and Workplace-based Weekly Salaries, 2014 ( ) Slough Thames Valley Berkshire LEP Residence Based West London Alliance Workplace Based Source: Annual Survey of Hours and Earnings (2014) 524 England 523 Workplace-based Weekly Pay ( ) Slough Thames Valley Berkshire LEP West London Alliance England Residence-based Weekly Pay ( ) Source: Annual Survey of Hours and Earnings ( ) 32

34 Qualifications Section 2: The Slough Economy Labour Market: Skills Base Slough s residents have a distribution of qualifications comparable to the national level however Slough underperforms relative to the wider Thames Valley Berkshire LEP. 37% of Slough s residents are educated to NVQ Level 4+, compared to 43% in TVB LEP and 46% in the West London Alliance. Nationally 35% of people are educated to this level. 10% of Slough s residents have no qualifications, compared to 9% nationally, 6% in TVB LEP and 7% in the West London Alliance Slough has an increasing proportion of people educated at or above NVQ Level 4, and this has now exceeded the proportion of people nationally who hold this level of qualification. The benefits of a highly educated workforce, are twofold. One, it provides local firms with a pool of well educated workers, making them more productive. Secondly, an individual who has a qualification (of any kind) is far more likely to be employed (72.9%) than an individual with no qualifications (50.9%). 50% 40% Highest Level of Qualification 45% 40% % Qualified at or above NVQ Level 4 Slough Thames Valley Berkshire England 30% 35% 20% 30% 10% 25% 0% No NVQ Level 1 NVQ Level 2 NVQ Level 3 NVQ Level 4 qualifications Other qualifications Thames Valley Berkshire LEP West London Alliance England Slough Source: Annual Population Survey (2014) 20% 15% Source: Annual Population Survey ( ) 33

35 School Leavers Qualifications & Higher Education Participation Section 2: The Slough Economy Labour Market: Skills Base Slough has an exceptionally high proportion of pupils achieving five or more GCSEs grade A*-C grade (including English and maths), with 71.4% of pupils achieving this grade in 2012/13. This places Slough as the 6 th highest achieving Local Authority in the country, and the highest performing outside of London*. Having these high levels of qualifications offers school leavers more options in their future, allowing them to attend college, university and apply for higher-level jobs. The presence of four Grammar schools in Slough, which attract a number of students from outside the Slough area, may increase the level of Slough s attainment rates, and therefore these figures may not reflect the qualifications held by residents. Data on higher education participation rates, suggests that Slough performs well below expectations, with relatively few people attending university based on Slough s GCSE attainment and ethnic profile. 9 out of 14 wards in Slough have higher education participation rates below expectations. 75% 70% 65% 60% 55% 50% % of Pupils achieving 5+ A*-C Grade including English and mathematics GCSEs Slough South East Outer London England Actual Higher Education Participation vs. Expected** Higher Education Participation, % * = Excluding the Isles of Scilly Source: Department for Education ( ) ** = Calculated using GCSE attainment and ethnic profile Source: Higher Education Funding Council for England (2013) 34

36 Section 2: The Slough Economy Economy Overview Size and Performance of the Slough Economy The Index of Multiple Deprivation (IMD) is an index produced by the government, which is calculated by examining the following areas: Income Employment Health Deprivation and Disability Education, Skills and Training Barriers to Housing and Services Crime Living Environment Slough is more deprived than the rest of Thames Valley Berkshire LEP. One LSOA in Slough is among the top 10% most deprived in the country. No LSOA in Slough is in the top 20% least deprived in the country. Index of Multiple Deprivation (IMD) 2013 Source: DCLG (2013) 35

37 Section 2: The Slough Economy Commercial Property Market Commercial Property Market The current office supply in Slough consists of a relatively high amount of Grade B and C office space, with far less Grade A office space available. By comparison, Reading has a large amount of Grade A office space. Across the wider Thames Valley area, Grade A office supply accounts for 40% of the total, compared to 27% in New occupiers are increasingly faced with a choice between poor end Grade B or new Grade A space. Occupiers are increasingly willing to pay higher rental values for Grade A office space, even if they have to wait for new facilities to be built. The worrying lack of available Grade A office space may deter potential occupiers from locating to Slough, favouring nearby towns such as Reading with a high supply of Grade A office space. Lambert Smith Hampton make four key predictions for the office market within the Thames Valley area for 2015: 1) Take up will increase; 2) Rental values will move upward; 3) There will be further polarisation of supply towards Grade A; 4) Investment yields will harden. Source: Lambert Smith Hampton (2015) 36

38 Section 3: Sectoral Composition This section provides an high level review of the sectoral composition of the Slough economy to ascertain existing sector strengths and any emerging opportunities 37

39 Slough s Employment Sector Breakdown Section 3: Sectoral Composition Broad Employment Sectors By analysing the composition of employment in Slough, the key sectors which provide the largest amount of employment can be identified. By comparing this to national figures, it can be seen whether employment is more or less concentrated in Slough s sectors compared to nationally and this helps identify the key sectors in the economy. This is known as the Location Quotient (LQ). Key strengths of the Slough economy are: Information and Communication (LQ = 3.9), Transport and Storage (LQ = 2.3), Business Administration and Support (LQ = 1.2) and Manufacturing (LQ = 1.1). Degree of Specialisation of Employment by Sector Manufacturing Construction Wholesale & Retail Transport & Storage Accom. & Food Info & Comms Finance & Insurance Property Prof, Science Business Admin Public Admin Education Health Arts Employment 7,470 2,660 13,570 8,520 2,950 13,200 1, ,430 8,440 1,740 5,640 6,160 2,160 Slough LQ* An LQ (Location quotient) provide an indication of relative specialisation in a specific sector locally, in this case relative to the England average 18% Thames Valley Berkshire LEP West London Alliance England Slough 15% 12% 9% 6% 3% 0% 18% 15% 12% 9% 6% 3% 0% Source: BRES (2013) 38

40 Slough s Business Breakdown Section 3: Sectoral Composition Broad Business Sectors Analysing the business composition in Slough, reveals that Slough has a significantly higher business concentration than the national level in the Transport and Storage (LQ = 2.8), and Information and Communication (LQ = 2.1) sectors. This follows a similar trend to the employment distribution Other sectors which have a higher concentration of businesses in Slough than nationally are wholesale and retail (LQ = 1.1) and business administration and support (LQ = 1.1). Location Quotient of Businesses by Sector Manufac Construction Wholesale & Retail Transport & Storage Accom & Food Info & Comms Finance & Insurance Real Estate Prof, Science Business Admin Public Admin Education Health Arts Businesses , < Slough LQ vs. England % 15% 10% Slough England 5% 0% 39 Source: UK Business Count (2014)

41 Section 3: Sectoral Composition Sector Drill Down: Largest Employment Sub-Sectors Slough s Largest Employment Sub-Sectors 2 Digit Standard Industrial Classification (SIC) codes allow for more detailed analysis of the parts of Slough s economy which are performing more strongly or less strongly. The top 10 largest sub-sectors provide 61% of the Borough s employment: Computer programming, consulting and related activities is the largest provider of employment, accounting for 10% of the employment base. A related sub-sector, telecommunications, also provides an additional 6% of jobs (4,870). Retail trade and wholesale trade also account for over 11,370 jobs, accounting for 14% of the total. Sub-sector (2 Digit SIC Code) Examples Employment % of Total Computer programming, consultancy and 7,810 10% Computer programmers, IT Consultants related activities Retail trade Supermarkets, shopping centres 6,670 8% Education Teachers (nursery/primary/secondary) 5,640 7% Employment activities Recruitment Agencies 4,900 6% Telecommunications Mobile Phone operators 4,870 6% Human Health Activities GPs, Nurses, hospital staff 4,740 6% Wholesale trade Resale of new or used goods to retailers 4,700 6% Activities of head offices; management 3,630 4% Jobs within the HQs of companies consultancy activities Postal and courier activities Postmen, delivery drivers 3,440 4% Warehousing and support activities for 3,370 4% Packaging, sorters transportation Top 10 Combined 49,770 61% Source: BRES (2013) 40

42 Section 3: Sectoral Composition Sector Drill Down: Most Specialised Sub-Sectors Slough s Most Specialised Employment Sub-Sectors Analysis of Slough s employment and the 5-digit SIC code level, reveals the sub-sectors in Slough with the highest degree of specialisation relative to the UK. Wireless telecommunication activities (LQ 35.5) and manufacture of cocoa and chocolate confectionary (LQ = 33.4) are the two sub-sectors with the highest concentration of employment relative to the national level. Sub-sector (5 Digit SIC codes) LQ (relative to Large Employers in Employment England) Slough Wireless Telecommunication Activities ,650 Telefonica (O2) Manufacture of cocoa and chocolate confectionery ,030 Mars Manufacture of basic pharmaceutical products Lonza Freight air transport Davies Turner Manufacture of paints, varnishes and similar coatings, mastics and sealants AkzoNobel Repair of communication equipment Panasonic Avionics Manufacture of non-electronic instruments and appliances for measuring, testing and navigation, Mobrey except industrial process control equipment Licensed Carriers Consolidated Logistics Wholesale of mining, construction and civil engineering machinery Unatrac, Finning Research and experimental development on social sciences and humanities National Foundation for Educational Research Top 10 Combined - 5,190 (6.4% of total) Source: BRES (2013) 41

43 Section 3: Sectoral Composition Sector Drill Down: Top Growth Sub-Sectors Slough s Top Growth Employment Sub-Sectors Some of Slough s sub-sectors have seen very high growth rates in the last 5 years. In particular telecommunications (+1,150 jobs) and warehousing and support services for transportation (+920 jobs) have seen the highest real increases. The sewerage sub-sector (+1,919%) and the repair of computers and personal and household goods (+1,467%) have seen the highest proportional increase. Sub-sector (2 Digit SIC codes) Examples Increase (%) Telecommunications Mobile Phone operators 3,720 4,870 1,150 (30%) Warehousing and support activities for transportation Packaging, sorters 2,450 3, (37%) Activities of head offices; management consultancy Jobs within the HQs of companies 2,740 3, (32%) activities Education Teachers (nursery/primary/secondary) 4,800 5, (17%) Retail trade Supermarkets, shopping centres 6,060 6, (10%) Repair of computers and personal and household goods Computer repairs (1,467%) Computer programming, consultancy and related Computer programmers, IT 7,350 7, (6%) activities Consultants Sewerage Waste water management (1,919%) Postal and courier activities Postmen, delivery drivers 3,120 3, (10%) Public administration and defence; compulsory social security Local authority, Police, Immigration 1,480 1, (18%) Source: BRES (2013) 42

44 Section 3: Sectoral Composition Sector Drill Down: Declining Sub-Sectors Slough s Declining Sub-Sectors Several sectors in Slough have experienced a decline in employment since Wholesale trade has seen the largest real fall in employment (-1,290 jobs), and is one of the sectors which employs the largest number of people in Slough. In addition, the specialised construction sub-sector has seen employment decline by 720 jobs (-27%) The repair and installation of machinery and equipment sub-sector has experienced the highest proportional decline in employment (-93%) followed by the travel agency, tour operator sub-sector (-85%). Sub-sector (2 Digit SIC codes) Examples Decline (%) Wholesale trade Resale of new or used goods to retailers 5,990 4,700-1,290 (-22%) Specialised construction activities Electricians, Painters, Demolition, Plumbers 2,700 1, (-27%) Services to buildings and landscape activities Cleaners, Gardeners 2,150 1, (-26%) Repair and installation of machinery and General of Routine Maintenance of Machinery (-93%) equipment Manufacture of computer, electronic and Manufactures of computers, communication (-61%) optical products equipment, watches and clocks Office administrative, office support and other Office administrator, Printers, Call Centres (-40%) business support activities Advertising and market research Advertisers and marketers (-73%) Manufacture of machinery and equipment Manufacture of hand-held devices, special (-41%) n.e.c. equipment for transportation. Manufacture of food products Food Manufacturing 2,690 2, (-13%) Travel agency, tour operator and other reservation service and related activities Travel agents (-85%) Source: BRES (2013) 43

45 Section 4: Key Sectors Analysis This section focuses on a number of Slough s key sectors and provides a detailed assessment of current performance in 4 specific sectors: ICT, Pharma and Life Sciences, Logistics and Food Manufacturing 44

46 Section 4: Key Sectors Key Sectors Analysis What are Slough s Key Sectors? In identifying the sectors which are likely to be most important in driving future economic growth in Slough, it is important to take into account both existing strengths and future growth prospects (both local and at wider geographic levels): Existing Slough sector strengths: based on analysis of data detailed previously and review of council policy documents, existing sector strengths for Slough include information and communications, transport and storage, education and health; Key Thames Valley Berkshire LEP Sectors based on opportunity sectors targeted by the Thames Valley LEP in their Strategic Economic Plan. This includes ICT, Pharma and Life Sciences, Business and Financial Services, Energy and Defence and Logistics. This section examines Slough s current performance in each of the above sectors. Specific focus is placed on opportunities to develop local strengths in: 1. ICT; 2. Pharma and Life Sciences; 3. Logistics; 4. Food Manufacturing activities. 45

47 % of Total Employment ICT Sector in Slough: Overview Section 4: Key Sectors Focus on 1. ICT The ICT sector currently has an extremely large presence in Slough, with both large multinational firms and small enterprises located in the Borough. This sector accounts for 16.0% of all employment and 15.1% of all businesses. Slough has the second highest concentration of employment in the Thames Valley Berkshire LEP (behind Wokingham). The concentration of employment in this sector is 5 times higher than the national level (3.2%). There has been a reduction in the number of people employed on a full time basis (declining by 0.7% points since 2008), although this may indicate increasing levels of self employment in this sector. Slough ICT Sector Overview Change Business Base Businesses (% of total) 545 (11.6%) 825 (15.1%) +280 (+51.4%) Micro Businesses (0-10 employees) (+62.4%) Employment Base Change Total Employment (% of total) 12,110 (13.5%) 13,050 (16.0%) 950 (7.8%) % Full-time Employment 95.3% 94.6% -0.7% points Location Quotient % 15% 12% 9% 6% 3% 0% 17% 16% 13% Wokingham Slough Thames Valley Berkshire LEP 12% 11% 11% 10% 4% 3% Reading Bracknell Forest West Berkshire Windsor and West London England Source: BRES (2013) Maidenhead Alliance 46

48 Section 4: Key Sectors Focus on 1. ICT ICT in Slough: Geography Activity in the ICT sector is concentrated in two wards Upton has 35% of Slough s ICT employment (due to the presence of several large ICT firms around the town centre ) and Farnham has 24% of employment in ICT (with this ward containing Slough Trading Estate). There is a fairly even distribution of businesses across the borough, although there are notable concentrations around Slough Trading Estate and the town centre. Large firms located in Slough include Telefoncia O2 (1,600 employees), Blackberry (550 employees) and Travelport (500 employees). ICT Sector Employment Density ICT Sector Location of Businesses Source: BRES (2013) Source: IDBR (2014) 47

49 Section 4: Key Sectors Focus on 1. ICT 48

50 % of Total Employment Pharma and Life Sciences in Slough: Overview 2.5% 2.0% 1.5% 2.1% 1.9% 1.8% Section 4: Key Sectors Focus on 2. Pharma and Life Sciences The pharmaceutical sector currently has a relatively small presence in Slough, contributing 1.9% of employment (1,530 jobs). However employment in this sector is over three times more concentrated than nationally, suggesting that the sector is strongly performing despite its small size. Pharma and life sciences companies account for only 0.4% of the district s business base, highlighting the larger than average employment size of businesses in this sector locally. Overall the number of business in this sector has increased by 33.3% between 2010 and 2014 (albeit from a very low base) Slough Pharma and Life Sciences Sector Change Business Base Businesses (% of total) 15 (0.2%) 20 (0.4%) +5 (+33.3%) Micro Businesses (0-5 employees) (+100%) Change Employment Base Total Employment (% of total) 1,130 (1.3%) 1,530 (1.9%) 400 (35.9%) % Full-time Employment 80.6% 95.5% +14.9% points Location Quotient % 1.6% 1.0% 0.5% 0.0% 0.6% 0.5% 0.2% West Berkshire Slough Wokingham Windsor and Thames Valley West London England Reading Source: BRES (2013) Maidenhead Berkshire LEP Alliance 49

51 Section 4: Key Sectors Focus on 2. Pharma and Life Sciences Pharma and Life Sciences in Slough: Geography Pharmaceutical activity is largely concentrated around Slough Trading Estate, especially in Farnham ward (61.4% of employment) and Cippenham Meadows (27.9%). The largest firms in the pharmaceutical sector are all located in Slough Trading Estate and these are Lonza (610 employees), Reckitt Benckiser Healthcare (420), RB (400), Karl Storz Endoscopy (150) and UCB (120). Pharma and Life Sciences Sector Employment Density Pharma and Life Sciences Sector Location of Businesses Source: BRES (2013) Source: IDBR (2014) 50

52 Section 4: Key Sectors Focus on 2. Pharma and Life Sciences 51

53 % of Total Employment Logistics in Slough: Overview Section 4: Key Sectors Focus on 3. Logistics Slough has a significant strength in the logistics sector, in part due to its strategic location between the M4, M25 and Heathrow Airport. The sector employs 8,260 people and accounts for 10.1% of all employment in the Borough. This is far higher than any other Borough in the Thames Valley Berkshire LEP (3.2%) and nationally (3.2%). Worryingly, despite a significant increase in business numbers (+33.3%) since 2010, employment in this sector has declined by 14.9% (-1,440 jobs) since 2008, suggesting that firms in Slough are losing their competitiveness. Slough Logistics Sector Change Business Base Businesses (% of total) 330 (7.0%) 440 (8.0%) +110 (+33.3%) Micro Businesses (0-5 employees) (+41.3%) Change Employment Base 10% 10% Total Employment (% of total) 9,700 (10.8%) 8,260 (10.1%) -1,440 (-14.9%) % Full-time Employment 83.4% 88.2% +4.8% points Location Quotient % 6% 6% Source: BRES (2013) 4% 2% 3% 3% 3% 2% 2% 2% 1% 0% Slough West London Alliance Thames Valley Berkshire LEP England Bracknell Forest West Berkshire Reading Windsor and Maidenhead Wokingham 52

54 Section 4: Key Sectors Focus on 3. Logistics Logistics in Slough: Geography The logistics sector is mostly concentrated around Heathrow Airport and Junction 5 of the M4. Colnbrook with Poyle ward has the highest concentration of Slough s employment in this sector, accounting for 51% of jobs in this sector. The adjoining ward of Foxborough accounts for a further 28% of logistics employment Large firms located in Slough are Royal Mail (2,000 employees), DHL (600 employees), Saints Transport (300 employees and UPS (200 employees). All of these are located in the Colnbrook with Poyle ward. Logistics Sector Employment Density Logistics Sector Location of Businesses Source: BRES (2013) Source: IDBR (2014) 53

55 Section 4: Key Sectors Focus on 3. Logistics 54

56 % of Total Employment Food Manufacturing in Slough: Overview Section 4: Key Sectors Focus on 4. Food Manufacturing The Food Manufacturing sector is relatively small in Slough, accounting for 3.0% of total employment (2,420 jobs). However it is more concentrated than nationally (LQ = 2.3) and has the highest concentration of employment relative to other Boroughs in the Thames Valley Berkshire LEP. The large average size of companies based in this sector is highlighted by the relatively low number of businesses, which nonetheless still represents a notable increase (+33.3%) since Slough Food Manufacturing Sector Change Business Base Businesses (% of total) 15 (0.3%) 20 (0.4%) +5 (+33.3%) Micro Businesses (0-5 employees) (+100%) Change Employment Base Total Employment (% of total) 2,490 (2.8%) 2,420 (3.0%) -70 (-2.8%) % Full-time Employment 96.0% 96.5% +0.5% points Location Quotient % 3.0% 2.5% 2.0% 2.1% 1.5% 1.0% 1.3% 0.9% 0.7% 0.5% 0.0% Slough West London Alliance England West Berkshire Thames Valley Berkshire LEP 0.2% Windsor and Maidenhead 0.1% 0.1% 0.0% Wokingham Bracknell Forest Reading 55 Source: BRES (2013)

57 Section 4: Key Sectors Focus on 4. Food Manufacturing Food Manufacturing in Slough: Geography Employment within the Food Manufacturing sector is found almost entirely within two wards. Colnbrook with Poyle wards accounts for 50% of Slough s employment in the logistics sector and Haymill ward accounts for 43% of employment. Large firms located within these wards are: Mars (1,000 employees; Haymill Ward), Food Partners (900 employees; Colnbrook with Poyle ward) and Montana Bakery (290 employees; Colnbrook with Poyle ward). Food Manufacturing Sector Employment Density Food Manufacturing Sector Location of Businesses Source: BRES (2013) Source: IDBR (2014) 56

58 Section 4: Key Sectors Focus on 4. Food Manufacturing 57