cu portfolio pages

cardiffcardiff EmployEE SurvEy

tranSport

facilitiES

buSinESSES

Shopping

culturE

vibrant

public

pEoplE

linkS

clEanlinESS

city

StrEEtS

wElSh

capital

grEEn

infraStruturE

nightlifE

parking

walES

community dEvElopmEntmodErn

friEndly

rESidEntS

traffic

congEStion

EmploymEnt

invEStmEnt

opportunitiES

travEl

cardiff buSinESS School

cardiff buSinESS partnErShip

cardiff

CU CBS Employment Report AW.indd 1 03/04/2011 21:42

Client ProjeCtSheet

Cardiff University, Cardiff Business SchoolCardiff Employee SurveyReport Cover

Shortlisted for ‘The Best of Welsh Design Awards 2011’

mobile: 07515353340twittering: @NeilMAsherhttps://vimeo.com/neilmasher

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Cardiff University, Cardiff Business SchoolCardiff Employee SurveyInternal Pages Spreads

Cardiff Business School is one of the leading business and management schools in the UK. In the most recent UK Government Research Assessment Exercise, it was ranked 4th in the UK for the quality of its research. 70% of the School’s research is considered to be internationally excellent or world leading. Its academics work with leading blue-chip, global businesses such as Tesco, Nestle, Hewlett Packard and Johnson & Johnson, and with international public sector and not-for-profit organisations such as the United Nations, International Labour Organisation and Department for Communities and Local Government. The School educates 2,600 students each year, delivering a broad portfolio of undergraduate, postgraduate and postgraduate research degrees.

The Cardiff Business Partnership (CBP) consists of leading employers in the Capital of Wales. Its mission is to represent businesses in the Capital, ensuring that the views of enterprise are at the heart of the development of Cardiff as a competitive global location. The Partnership aims to identify key issues facing the Capital’s economy. Through its members, the Partnership has the unique ability to go beyond advocacy to action.

The Partnership also serves as a resource of expertise

and creative thinking for policy makers, media and

others concerned with taking forward the Cardiff and

Welsh economy. The Partnership seeks to influence

policy by presenting the views of leading businesses,

sponsoring research, and bringing together experts

and leaders in city development.

CBP and Cardiff Council have entered a collaborative

arrangement with Cardiff Business School, which

will spearhead leading research aimed at helping to

improve the competitiveness of Cardiff.

itS mEmbErS includE:

admiral

boomErang

frEShwatEr

grant thornton

hugh JamES SolicitorS

lEgal & gEnEral

mEdia walES

pricEwatErhouSEcoopErS

principality building SociEty

S a brain & co.

tata

tESco

www.cardiffbusinesspartnership.com

2 Cardiff Business sChool and Cardiff Business PartnershiPcardiff EmployEE SurvEy


As the capital of Wales, Cardiff is seen as the economic powerhouse of the nation.The population of the greater Cardiff area, including the Vale of Glamorgan, grew at around 0.5% pa over the period 2002-09 and is projected to continue to grow at this rate until 2013. Cardiff’s growth has outpaced the rest of Wales and is expected to continue to do so for the next decade. One of the biggest group of respondents came from the financial services sector: in 2011, Cardiff has approximately 30,000 people employed in financial services and thousands more in business services. The businesses of Cardiff have seen a continual demand for labour which has outstripped local supply for many years. This has led to the growth of the Cardiff city region: over 70,000 people commute from the Valleys and further across South Wales to work in Cardiff each day.

This report summarises some key findings from a major survey of employees working in Cardiff. The research and analysis has been conducted by Cardiff Business School in conjunction with Cardiff Business Partnership. The survey is the first to look at how people feel about Cardiff as a place to work.

The primary finding from the research is that people report very positively on their employment and Cardiff as a city. The vast majority of respondents (95%) wanted to continue to work in Cardiff for at least the immediate future and over two-thirds (68%) indicated that they believed their longer-term futures were in Cardiff.

In the following pages we explore these findings in detail. In particular, we will look at what it is that people like about Cardiff and what they want to see the city invest in over the coming years. We also focus on the commuting patterns of respondents and how commuting workers from different parts of south east Wales had different opinions on the city's future direction and priorities.

introduction

walES

cardiff

population

all pEoplE agEd 16-64 (%)

SErvicE SEctor

groSS wEEkly pay (£)

Economically activE % of population

figurES, StatS walES and nomiS (2008)

2999300

680750

167800

486.2

451.1

68.9 74.2

72.863.4

336200



3

The city of Cardiff has a diverse economic base and is a major regional employer, drawing 70,000 people from outside the city to work each day. This survey examined the views of employees within the service sector: the sector employs 167,800 people and is of considerable importance to the Welsh economy. It is therefore constructive to explore the structure of the industry in terms of its employees and attempt to glean insight into their thoughts on work and the city.

This report presents the findings from a research project conducted by Cardiff Business School and Cardiff Business Partnership. The project examined employees’ perceptions of Cardiff as a place to work and asked them what they wanted from the city in the future. Over 640 individuals responded to the survey of which the majority were employees from the Cardiff Business Partnership firms.

ExEcutivE Summary

moSt pEoplE wErE attractEd to thE city by

‘thE Job itSElf’ but othEr big attractionS arE thE nightlifE and Shopping

facilitiES.

driving to work is By far the most Common method of transPort regardless of where

PeoPle live.

half of the resPondents would

like to Be working for their Current

emPloyer in Cardiff, But in a more senior Position, in 15 years'

time.

Congestion is a ConCern for

those surveyed, with most seeing

City transPort infrastruCture as a key investment

need over the next deCade.

of those surveyed want to keeP

working in Cardiff for at least the

immediate future,

with over 65% indiCating that they

wish to keeP working in the City for the

foreseeaBle future.

kEy findingS

ababababab ababababab ababababab ababababab ababababab ababababab ababababab ababababab ababababab ababababab

ababababab ababababab ababababab ababababab ababababab ababababab ababababab ababababab ababababab ababababab

95%

65%

1⁄2


The survey examined whether people wanted to continue working in Cardiff, based on their experiences to date. There was an overwhelmingly positive response to this question. 95% of respondents wanted to continue working in Cardiff for at least the immediate future, with 68% saying they wanted to continue for the foreseeable future. The 5% who said that they did not want to keep working in Cardiff were asked their reasons for wanting to leave: personal reasons and better standard of living were the major responses given.

what rESpondEntS think of cardiff aS a placE to work

5%

No

68%

Yes

keep workiNgiN Cardiff?

do You waNt toyes, for the foreseeaBle

future

27%

Yesyes, at least

for the immediate

future

5


The positive response continues when we consider respondent views on where they would like to be working and for whom in 15 years' time. Close to half of the respondents would like to be working for their current employer in Cardiff, but in a more senior position, in 15 years' time. This suggests considerable satisfaction on the part of many employees with both their employer and city of employment.

Respondents commonly reported that they 'enjoy working with colleagues’ and had an ‘enjoyable working environment'. A number of other features were mentioned, including stimulating work and flexible working arrangements.

Another positive factor for a significant minority was working close to home.

When examining commuting it seems that car/motorbike is the primary means for getting to work, with over 51% of respondents reporting this type of transport use.

Many of those who took part in the survey (62%) chose more than one method of commuting, with train and walking being the most common combination. More detail on commuting patterns will be presented later in this report.

6 Cardiff Business sChool and Cardiff Business PartnershiP

g2026

where would you

like to Be working in fifteen

years' time?

what do you like aBout working for your Current

emPloyer?

getting to work

48% working in a more senior role with your Current emPloyer in Cardiff

28% good Pay

22%walk

8%CyCle

16%Bus

22%train

51%Car / motorCyCle5% working with your

Current emPloyer outside Cardiff

43% work is stimulating

7% working in a similar joB, But for another emPloyer, in Cardiff

58% enjoyaBle working environment

4% working in a similar joB, But for another emPloyer, outside Cardiff

69% you enjoy working with Colleagues

9% doing a ComPletely different joB in Cardiff 48% you work Close to home

9% no Change in your Current CirCumstanCes

29% good Career ProsPeCts

13% doing a ComPletely different joB outside Cardiff

42% flexiBle working arrangements

34% training oPPortunities

cardiff EmployEE SurvEy


8 Cardiff Business sChool and Cardiff Business PartnershiP

cardiff cardiff?

Job, facilitiES

family, friEndS

walES, proximity

It is important to understand why people choose Cardiff as a place to work, as this helps to explain what it is about the city that is attractive. One reason for working in Cardiff is that people were born here or have lived here since childhood (32% of respondents) or that they were initially brought to the area by a job (24%). To explore this further, more detail was requested from respondents: one of the key findings is that people come originally because family or friends are in Cardiff. Many respondents reported that they were not originally from Cardiff but came here when they met their partner (11%). The positive impact of Cardiff’s higher education institutions is also clear from the data, with more than a tenth of people reporting that they chose to stay on after graduation (13%). People also allude to facilities and the size of the city itself: “The main reason was for a better work/life balance and to be near friends and family”.

what attractEd pEoplE to

why didyou dEcidEto work in

32% you’ve always lived in or around Cardiff

24% you aPPlied for a joB and it haPPened to Be

in Cardiff

10% you liked the City and deCided to look for a joB here 13%

you Came to Cardiff to study and deCided to stay

11% you moved here to Be with a Partner/family

9% other



7

51%Car / motorCyCle

There was a wide distribution of earnings among the respondents. Although 27% fell into the £15,000 to £20,000 bracket, over 41% of those surveyed earn in excess of £25,000.

The survey was distributed to around 5,000 employees of the member firms of Cardiff Business Partnership. 648 completed questionnaires were returned (response rate of 12.96%). There is a broad split amongst sex and age with a slight skew towards women and respondents aged 24-39. 42% of the sample are under 30 years of age: given that Cardiff has a young population, the sample is thought to be representative.

annual earnings

sex Profile of resPondents age Profile of resPondentsrESpondEntS’ profilE

< £10k£10k-15k

£15k-£20k£20k-£25k£25k-£30k£30k-£40k

> £40k

££££££££££££££££££££££££££££££££££££££££££££££££££££££££££££££££££££££££££££££££££££££££££££££££££££££££££££££££££££££££££££££££££££££££££££££££££££££££££££££££££££££££££££££££££££££££££££££££££££££££££££££££££

27%

16%

14%

12%

11%

3% £££

malE

fEmalE

57%

43%

25-39

18-24

40-54

55-6465+

11%

57%

26%

5%


9

32% Better emPloyment elsewhere

36%

48%

21%

9%

Better standard of housing elsewhere

Personal reasons

Better Cultural offer elsewhere

Better leisure offer elsewhere

21%

6%

ProBlems in Commuting

Cost and availaBility of housing

dangErouS

city living

ExpEnSivE£££££££££

commuting

parking /congEStiontranSport

ba what pEoplE don’t likE

]

rEaSonS you don’t want

to kEEp working in

cardiff

ba


cardiff EmployEE SurvEy10 Cardiff Business sChool and Cardiff Business PartnershiP10 Cardiff Business sChool and Cardiff Business PartnershiP

what don't you likE about working in cardiff?

2% 12%

19%

21%

29%

54%

3% unfriEndly

citypoor

houSing choicE

outSidE of work, it'S

hard to gEt around thE

city

lack of EmploymEnt

opportunitiES

lack of promotion

lack of clEanilinESS

congEStion

poor cultural

offEr

6% 9%

othEr

While the picture painted in the survey is broadly positive, it is important to reflect on the negatives. Although only 5% of those surveyed said they did not want to continue working in Cardiff, it was important to explore the reasons behind their desire to leave. By far the most important motivation for wanting to leave was personal reasons, followed by the perceived better standard of living elsewhere.

More generally, to give a more rounded picture of Cardiff, we also asked all those surveyed what concerns they had about working in the city. The largest area of concern for respondents was congestion, with over half the people (54%) in the survey highlighting this. This appears to refer specifically to the problem of getting in and out of the city to work since only 9% of respondents said that getting around the city outside work was a problem. The other most significant concern was the lack of cleanliness (29%).

When the more detailed, qualitative comments provided by individual respondents were explored, concerns about transport were raised again. Almost 80% of comments were about the problems with transport and infrastructure. Along with congestion, the other major area of concern is parking, with numerous respondents expressing annoyance with the limited parking available and cost of parking in the city centre. A number of respondents thought that buses and trains did not provide effective alternatives to driving, with a typical comment being: "There is no train connections leaving at a suitable time that will get me into work for 9".

Early cloSing hourS

crimE 25%

22%



location and commutinghome of resPondents

Approximately 70,000 people commute into Cardiff to work each day. We undertook a spatial analysis of respondents using data provided on post-codes. Of those surveyed, 57% were from the greater Cardiff area. The remaining respondents come from as far afield as 60 miles away, indicating an extensive travel to work area.

outSidE cardiff

living in cardiff

58%

42%

BRIDGEND

PENARTH

CAERPHILLY

PONTYPRIDD

RHONDDA CYNON TAF

BRECON BEACONS

CARDIFFTHE VALE OF GLAMORGAN

CF3

CF10 41

CF11 45

CF14 59

CF15 18

CF23 31

CF24 69

CF3 32

CF48 12

CF5 60

CF62 19

CF63 12

CF64 31

CF72 14

CF23

CF24

CF83

CF32

CF14CF15

CF37

CF40

CF43 CF45

CF47

CF42

CF71

CF61

CF34

CF35

CF62 CF63 CF64

CF72

CF10CF11CF5

CF38

CF36

CF31

CF33

CF39

CF44

CF48

CF81

most Common PostCodes of resPondents



11

thE futurE of thE city rEgion

ProjeCts you think the City needs to invest in

what issues should the City ConCentrate on over the next 10 years

0% 10% 20% 30% 40% 50% 60%

transPort in the City

transPort to other areas

retailfaCilities

sPorting faCilities

Parks & green sPaCes

residential develoPment

0 10 20 30 40 50

Creating more joBsCreating more graduate joBseasier Commute to workBetter transPort in the City

imProved health of residentsaddressing soCial exClusionmaking the City safermore things to do in the CityattraCt Better shoPsmore Bars/restaurantsBetter digital CommuniCationsCleaner environment

PuBliC serviCes

The development of Cardiff’s infrastructure must be at the heart of long term economic strategy. Examining the views expressed by those that work and live, and/or commute into the city, means that important development priorities can be identified.

Those surveyed expressed clear views about the issues that need the city's attention. Public services are cited by over 50% and this is closely followed by transport in general, both in the city and its hinterland. Along with the physical infrastructure, nearly one third of respondents wanted to see investment in parks and green spaces.


what don't you like aBout working in Cardiff?

13

Most attractedthe job itselfthe job itselfthe job itselfthe job itselfthe job itselfthe job itselfLocal environmentcity nightlife, pubs, bars & restaurantsthe job itselfthe job itselfstandard of living

PostcodecF10cF11cF14cF15cF23cF24cF3cF48cF5cF62cF63

Postcode

cF3/14/23 cF10/24/11 cF62/63/5 cF15/48

£10k - £20k66.763.050.040.038.737.342.460.030.516.733.3

congEStion

30.9

26.3

25.6

24.4

£20k - £40k30.826.139.733.351.652.248.530.045.850.025.0

hard city to gEt around

4.6

4.7

5.5

14.6

over £40k2.6

10.910.326.7

9.710.4

9.110.023.733.341.7

lack of EmploymEnt opportunitiES

6.9

6.7

16.5

4.9

poor houSing

4.1

2.7

3.0

4.9

lack of promotion

10.1

9.8

17.7

7.3

poor cultural offEr

2.3

2.0

1.2

0.0

crimE

13.4

16.9

10.4

12.2

lack of clEanlinESS

14.3

19.2

11.6

17.1

night facilitiES

10.1

11.4

6.7

14.6

Most coMMon Method oF transPortWalkingBusWalkingBuscar/MotorcycleWalkingtraintraintraincar/Motorcyclecycle

Residential location is a key factor in explaining the methods of transport used to commute. Although car/motorcycle dominated the modes of transport overall, walking or bus was a strong preference for those from Central Cardiff (CF24, CF14, CF11, CF10). Contrary to this, CF23 in central Cardiff saw larger numbers driving to work. Train was the preferred travel option for commuters from the Valleys.

In terms of earnings there are significant differences between respondents according to residential area. Respondents from Central Cardiff reported lower than average earnings with both CF11 and CF14 having around 5% of those

surveyed earning less than £10,000 per annum. The only other area surveyed which had a higher percentage of low earners was CF48 (Merthyr Tydfil) with 20%. At the other end of the scale CF62 and CF63 have the highest percentage of respondents earning over £40,000. Over 40% of respondents from Barry (CF63) earned over £40,000.

When looking at what attracted people to Cardiff, there is little difference between areas with the exception of two: the first is CF63, where the standard of living was the most attractive factor in coming to Cardiff, while people living in CF3 indicated that the local environment was the most attractive factor.

Clear geographical patterns also emerge when exploring the factors that concern people about the city. Those from city areas such as CF11 and CF14 have concerns with cleanliness and crime. Almost all areas have some degree of concern with congestion, but it appears that those living right in the city centre (CF23, CF24) feel this the most. This is an interesting finding as it is in these areas where most people walk to work. The other interesting detail is that, out of all areas, the farthest postcode in this selection, CF48 (Merthyr Tydfil), appears to have the least concern with congestion.

*For the purpose of this analysis postcodes were grouped by distance from Cardiff city centre



5Cardiff Business sChool and Cardiff Business PartnershiP

BaCkground: inward investment attraCtion in wales

wales and the uk in the inward investment game

table 1: Percentage of uk inward investment Projects** won (excluding london) *Source: uKTi and Fdi MarKeTS™ FroM The Financial TiMeS** ThiS iS new inveSTMenTS.


Welsh and global inward investment flows have seen a steep downturn over the last decade. What has been disappointing for Wales is that there appears to have been a continuous fall in levels since 2003. There is a further concern for Wales; this is the improving performance of other regions in the UK, particularly Scotland, whose activity during the late ‘90s was far below Wales' but has now improved to lead the UK (outside London).

If the figures are considered in terms of overall inward investment projects won, Scotland has become the number one ranked region in the UK (excluding London). At the same time Wales has gone from number two in the UK in 2003 to second from bottom in 2010. Table 1 shows Welsh performance compared to all regions.

Some background needs to be given when contrasting the performance of Wales with other regions. Figures published by the Welsh Assembly Government (WAG 2010) suggest that the number of "foreign owned enterprises active in Wales" is smaller than that in any English region. There were around 1000 in 2007, rising to 1100 in 2009 and falling back to 1000 in 2010. They employed around 139,000 people in 2010, 11,000 fewer than in the peak year, 2009.

2003-042005-10

av % 8.5av % 9

rank 1rank 1 -

scotland

2003-042005-10

av % 3av % 3.3

rank 6rank 10 g

south west

2003-042005-10

av % 2.5av % 3.7

rank 8rank 7 i

east anglia

2003-042005-10

av % 4.5av % 5

rank 4rank 3 i

west midlands

2003-042005-10

av % 7.5av % 3.5

rank 2rank 9 g

wales

2003-042005-10

av % 6.5av % 6.8

rank 3rank 2 i

north west 2003-042005-10

av % 3.5av % 3.7

rank 6rank 5 i

north east

2003-042005-10

av % 2av % 3.7

rank 9rank 6 i

yorkshire & humber

2003-042005-10

av % 3.5av % 3.5

rank 8rank 8 -

east midlands

2003-042005-10

av % 4av % 4.3

rank 5rank 4 i

northern ireland

10575 CU CBS InwardInvest Report v9.indd 5 20/01/2012 12:23

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Cardiff University, Cardiff Business SchoolSelling Wales: Report Internal Page Detail


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selling Wales: the role of agencies in attracting inward investment 6

The aim of the analysis was to interview key personnel from all the agencies involved in inward investment attraction to the Cardiff city region. It became clear that there is a delineation of control and activity. Therefore the interviews needed to be undertaken across agencies at different spatial levels in order to establish why certain tasks were taking place. Table 2 gives a profile summary of the respondents involved and Figure 1 shows the relationship between the agencies operating within the Cardiff city region.

the research


15

12

6

5

key Point

method

lack of communication

interview

Practitioner*key Point

method

misinformation

interview / Questionnaire

firm

key Point

method

consistency in communication

interview / Questionnaire

government / council

key Point

method

lack of resource

interview

Policy imPlementation*

welsh government

ukti

ibw cardiff and codePartment of economy

and transPortcaPital wales

cardiff council

table 2: Profile of resPondents *SoMe oF TheSe reSpondenTS are no longer worKing in The agencieS, buT were in ThoSe roleS during The period (2004-2011).

Figure 1: agency STrucTure * agencieS have been coded a-g For The purpoSeS oF conFidenTialiTy ** arrowS repreSenT coMMunicaTion FlowS idenTiFied by reSpondenTS.



attraCting inward investment

ComPetition amongst agenCies

Since the 1960s and the true advent of globalised multinationals, there has been critical debate amongst scholars and practitioners alike on how best to attract inward investment. During the early ‘90s, Europe saw vast numbers of firms moving into nations to take advantage of the growing wealth of the trading bloc. The impact of inward investment on local economies has been studied in some depth with the notable works of Hill and Munday (1992), Blomstrom et al (2000) and Driffield (1999) identifying the impact of firm “spillovers” on local development. With these advantages of inward investment accepted by politicians, many governments concerned themselves with developing inward investment friendly policies. During the early ‘90s, firms’ location decisions appeared to be driven purely by economic factors, with “winning” regions offering the lowest possible cost base through both tax incentives and grant schemes (Bellak and Leibrecht, 2005).

During the early ‘90s Wales was seen as a highly successful region in attracting inward investment - its low cost base and English speaking work force were seen as critical factors in its success (Cooke and Morgan, 1998). As relative operating costs began to rise the firms once flocking to the country began to leave. They were drawn first to Eastern Europe. Over the last decade, the growth of China and India as power houses of low cost business has meant developed regions in Europe have had to compete even harder to attract firms. Today, policies to attract inward investment into developed nations vary by locality yet there are some common practices identified by Guimon (2009) with a strong focus on highly skilled work forces and local amenities. As a result, it has been accepted that “marketing of place” plays an important role in attracting investment in developed nations, over and above tax incentives.

With large numbers of regions and countries all competing for inward investment, intense competition has arisen between agencies. With so much to gain, pressure has been put on governments (and economies) to be as competitive as possible. This pressure is a double edged sword as although it can lead to efficiency and productivity improvements, too much pressure can generate a so called “race to the bottom”. Here nations trying to reduce wage bills and offering more competitive (expensive) packages of support can effectively produce poor welfare outcomes. Charlton (2003) provides a useful framework to understand this competition for inward investment.

The matrix describes the associated consequences of different types of inward investment strategy. For example, if a region attempts to take an investment from where it is naturally more efficient, the overall economy will suffer while a smaller area may benefit (top left corner). Although the original matrix allows comparisons between regions it is also possible to use it to analyse investments within the same region. If one agency attempts to offer incentives over and above another agency, the result is a loss of overall welfare of the region (bottom left corner). This competitive analysis of inward investment suggests that while some competition is healthy, too much can create substantial welfare losses.


investment Poaching domestiC welfare gain? international welfare loss?

healthy comPetition

domestiC welfare gain? international welfare gain?

beggar thy neighbour

domestiC welfare loss?international welfare loss?

winner’s curse

domestiC welfare loss? international welfare gain?

Figure 3: charlTon'S FraMeworK


17Cardiff Business sChool and Cardiff Business PartnershiPCardiff Business sChool and Cardiff Business PartnershiP 17Cardiff Business sChool and Cardiff Business PartnershiP

annex 1 - new inward investment, uk and wales

wales

key

uk

uk ranking

Percentage

9.2

6

2005-06

new jobs

uk uk

34,077 36,526

9.3

4

2006-07

new jobs

8.3

6

2007-08

new jobs

6.4

4

2009-10

new jobs

6.2

7

2008-09

new jobs

ukwales

3,743 45,051ukwales

2,185 35,111

ukwales

3,431 53,358

inward investment - new jobs 2005/06 - 2009/10 Source: uK Trade & induSTrynoTe: (1) analySiS baSed on Secured projecTS, aS per uKT&i eligibiliTy criTeria

wales

3,132wales

3,379


London area(see inset)


2000 20042002 2006 20082001 20052003 2007 2009

A number of individuals contrasted the poor performance in Wales with the relative success that Scotland has had in the recent past. It is useful to look at the Scottish case to put these comments into context. Existing data on Scottish inward investment attraction have been examined to show trends over the course of the last eight years. Respondents’ comments on the work of SDI (Scottish Development International) have also been analysed.

There are two sets of data to contrast. First is the type of inward investment actually being attracted. To this end this research contrasts the figures on R&D investment. This is high value activity associated with the greatest economic spillover to the wider economy. The second measure is the aggregate numbers in terms of actual projects that have chosen to invest.

the case of scotland

inward investment, wales v sCotland

5

10

15

20

0

9

7

34

8

10

12

16

9

14

2

12

25 5

12

6

3

number of r&d inward investment Projects *auThorS' conSTrucTion, daTa acceSSed FroM oFFice oF naTional STaTiSTicS (onS)

% of inward investment Projects against uk total *auThorS' conSTrucTion, daTa acceSSed FroM oFFice oF naTional STaTiSTicS (onS)

2000 20042002 2006 20082001 20052003 2007 2009

12

10

8

6

4

2

0

109

11

9

8 8

6

10

6 6

2 2

3 3

55

7

9

7

9wales

key

scotland


London area(see inset)


If we look at the two nations there are similar trends across the period. Although there were significant declines between 2004 and 2005, the Scottish bounce back has been much greater than Wales' and the flows have held up well during the period 2007-2009.

There has been a positive trend in Scotland in terms of both numbers and value, in particular in the most sought-after sector, global financial services2. A number of respondents from different agencies argued that the Scottish model was successful at the expense of the Welsh:

the case of scotland

Another respondent expressed a similar view.

“Over the last three years we have seen the SDI [Scottish Development International] ramp up their overseas work, they have a very clear goal of where they want to be and how they want to get there, and it seems to me that this pressure has possibly caused a squeeze on some of the targets we originally had. IBW could not compete with them, it is too slow, everything has to be double checked and put through too many people’s desks.”

“Why is Wales in general not attracting as much FDI? Short answer, Scotland, long answer organisation. Scotland is streamlined, they are very efficient. I know guys working there, they are very savvy and more importantly than that they know people in UKTI [United Kingdom Trade and Invest]….. they have an office we don’t.”

Scotland has also been accused by some respondents of “copying” a similar approach in terms of branding to that used by the WDA during the mid ‘90s. SDI has reportedly advertised heavily in overseas markets where Wales was once strong, namely the USA and the Far East. There is also a common belief that Wales in general will struggle for the foreseeable future against such a strong brand.

2http://www.ukti.gov.uk/uktihome/media/news/100745.html



table 2: inward investment – new jobs over the last ten years

2000-01 2001-02

6.3% 11.3%

7 1

wales

4,520uk

71,488

wales

3,872uk

34,087

2002-03 2003-04

11.8% 15.9%

3 1

wales

4,083uk

34,396

wales

4,064uk

25,463

2006-07 2007-08

9.3% 8.3%

4 6

wales

3,379uk

36,526

wales

3,743uk

45,051

2008-09 2009-10

6.2% 6.4%

7 4

wales

2,185uk

35,111

wales

3,431uk

53,358

2004-05

6.5%

9

wales

2,593uk

39,592

2005-06

9.2%

6uk

34,077

wales

3,132

key new jobs ranking against the uk's 12 geograPhic areasyear wales uk Percentage


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