The Importanceof Physicsto Economic Growth

Physics at the heart of the industrial strategyPhysics is vital to the economy of the United Kingdom. Physics-based businesses contribute 8.5% of the UK’s economic output and employ more than a million people. The sectors that will power the UK’s economy in the future, from agri-tech to business services to offshore wind power, are built on the innovative application of physics and the skills of physics-trained people.

More than 500 000 people are employed in high-value physics-based manufacturing in the UK, contributing more than £20 billion to the UK economy directly, and creating products and devices that enable growth in the aerospace and electricity generation sectors. Physics technologies such as photonics and precision optics drive progress in the information economy and the life sciences.

Physics drives employment across the UK. Large employers such as Seagate in Northern Ireland use physics to develop advanced computer hard drives; Oxford Instruments is a world-leading manufacturer and exporter of scientific equipment used in the development of novel materials. More people are employed in physics- based businesses in the UK than in both the finance and construction sectors.

The recent economic downturn affected physics-based sectors as much as the broader economy, but the signs are there that physics can lead the recovery. Exports from physics-based business amounted to more than £100 bn in 2009, physics-based business in the UK account for more exports as a share of the total than those in France. Physics-based sectors have increased their investment in research and development in the years following the crash.

For the UK economy to grow and be rebalanced in favour of high-tech, knowledge-intensive industries, there must be more and more-focussed support for physics-based businesses through innovative public procurement and more ready access to the capital essential for growth. This, combined with sustained and stable funding of physics research and a ready supply of physics-trained workers, will allow physics – and the economy – to thrive.

1 million PhySIcS-baSEd bUSINESSES EMPLOy MOrE ThaN ONE MILLION PEOPLE IN ThE UK – 4% OF ThE TOTaL wOrKFOrcE, MOrE ThaN ThE cONSTrUcTION INdUSTry.

£100 bn PhySIcS-baSEd bUSINESSES ExPOrT £100 bN OF GOOdS aNd SErvIcES.

£77 bn PhySIcS-baSEd bUSINESSES dIrEcTLy cONTrIbUTE 8.5% OF ThE UK’S EcONOMIc OUTPUT, MOrE ThaN £77 bN PEr yEar.

£70 000 ThE GrOSS vaLUE addEd PEr wOrKEr IN PhySIcS-baSEd bUSINESSES IS TwIcE ThE NaTIONaL avEraGE.

2 ThE IMPOrTaNcE OF PhySIcS TO EcONOMIc GrOwTh JUNE 2013

Scotland

Jobs: 109 000GVA: £8.5 bn

Northern Ireland

Jobs: 26 000GVA: £1.5 bn

Wales

Jobs: 40 000GVA: £2.3 bn

4% OF THE UK WORKFORCE IS EMPLOYED IN PHYSICS-BASED SECTORS, CONTRIBUTING 8.5%OF THE TOTAL UK ECONOMIC OUTPUT.

England

Jobs: 890 000GVA: £64.4 bn

South West

Jobs: 107 000

North West

Jobs: 114 000

West Midlands

Jobs: 85 000

East Midlands

Jobs: 65 000

Yorkshire & Humber

Jobs: 70 000

North East

Jobs: 43 000

London

Jobs: 143 000

South East

Jobs: 188 000

East

Jobs: 111 000

3ThE IMPOrTaNcE OF PhySIcS TO EcONOMIc GrOwTh JUNE 2013

4 ThE IMPOrTaNcE OF PhySIcS TO EcONOMIc GrOwTh JUNE 2013

Physics is a driver of industrial growth

From energy generation to novel medicines, physics and physics-based businesses play a crucial role in driving innovation and development of new technologies. The companies highlighted here are all dependent on physics and are key enablers of the industrial strategy.

nuclear and offshore windPhysics-based electricity production and distribution industry in the UK directly employs 50 000 people; £7 bn in Gva. Physics is at the heart of new nuclear power station and wind-farms; from the design and construction of the infrastructure to efficiently capturing and storing the energy.

Magnox limitedMagnox Limited specialises in providing safe energy generation in addition to overseeing the decommissioning of nuclear power stations. There are 10 nuclear power sites in the UK. Putting into practice Magnox’s physics-based knowledge through the use of nuclear energy, has reduced the need for fossil fuels for energy generation in wales. This has prevented the production of over 200 million tonnes carbon dioxide (cO2) at the wylfa site alone.

Moreover, safe decommissioning of nuclear power plants relies on a profound understanding of the fundamental working of the nuclear power station. To fulfil this role, a significant proportion of Magnox’s 2500 employees are physicists, who are involved with the technical development of the plant decommissioning to approach this safely and efficiently.

business servicesPhysics-based business services in the UK directly contribute £4 bn in Gva to the economy. business services across the UK are dependent on physics-based semiconductors that found in hard drives across the globe that power our computers.

seagateSeagate, the hard-drive manufacturer, employs 1400 people at their site in Northern Ireland. One aspect of Seagate’s business is to develop and manufacture magnetic recording heads for hardware applications and 30% of the global demand for such technology is manufactured at Seagate’s site in Northern Ireland, contributing to their £90 m annual turnover.

Many aspects of Seagate’s research require significant developments in both fundamental and applied physics and they depend on trained Phd students and graduates who have specialised in magnetism, nanophotonics, spintronics and thin-film processing. The company currently employs more than 40 Phd students and graduates in Northern Ireland. These physicists have the necessary training to implement industrial development of Seagate’s products.

50 000 PhySIcS-baSEd ELEcTrIcITy PrOdUcTION aNd dISTrIbUTION INdUSTry IN ThE UK dIrEcTLy EMPLOyS 50 000 PEOPLE.

£4 bn PhySIcS-baSEd bUSINESS SErvIcES IN ThE UK dIrEcTLy cONTrIbUTE £4 bN IN Gva.

5ThE IMPOrTaNcE OF PhySIcS TO EcONOMIc GrOwTh JUNE 2013

aerosPace and autoMotive industriesPhysics-based transport industries directly contribute 60 000 jobs to the UK economy; £5 bn in Gva. Physics-based technologies, such as advanced materials, are driving development in the aerospace sector. For example nanomaterials are now used to coat aircraft to reduce friction which in turn reduces the fuel consumption and lowers the cost of powering the flight.

oxford instrumentsOxford Instruments is a leading provider of high-technology tools and systems to academic, research and industrial markets. a FTSE250 company, its £337 m annual turnover is completely reliant on physics. a global business with 33 sites around the world and more than 1900 employees, Oxford Instruments’ core skills lie in science,

technology, engineering and mathematics (STEM) subjects. Its products are used to address the key challenges of the 21st century and range from fundamental physics research into quantum processing and new nanomaterials like graphene, to compliance testing for hazardous substances and metals analysis.

6 ThE IMPOrTaNcE OF PhySIcS TO EcONOMIc GrOwTh JUNE 2013

life sciences and agri-techPhysics technologies are critical to advances in life sciences. Physics played a fundamental role in the discovery of dNa. Over the past 60 years physics has continued to under-pin research in this area through technologies such as high-resolution cameras and optical tweezers – a laser system that is able to move biological systems on the micrometre scale.

andor technology Plcandor Technology uses physics research and development (r&d), alongside engineering disciplines, to produce cameras, spectrographs and software for spectroscopic and low-light imaging applications in research institutions across 55 countries. andor employs 330 people globally, of which more than 240 are based in Northern Ireland.

andor manufactures high-specification, charge-coupled device (ccd) cameras for novel research that form part of an intricate optical set-up. Therefore, being able to employ

physicists, electrical engineers, software programmers and mechanical engineers is important to the company. Physicists are valuable to andor because not only do they possess technical knowledge but they speak the customer’s language, which is vital for effective customer-focused problem solving and innovation. Even among the marketing department in this company there is a significant proportion of physicists and many of the team leaders and the key managers in marketing are physicists or physical science Phd graduates, who drive the direction of this business.

7ThE IMPOrTaNcE OF PhySIcS TO EcONOMIc GrOwTh JUNE 2013

“without Physics, and its related fields, we would be unable to have our Products Meet the efficiency and cost targets that are critical for our business to achieve Profitability.” bboXX ltd

constructionThe physics-based construction industry directly employs 21 000 people and contributes £2.3 bn in Gva to the UK economy. Engineering physics is instrumental in developing new materials and technologies, and increasing the sustainability and efficiency of new buildings through energy management and built in renewable energy generation.

bboXXbbOxx provides solar equipment and services dedicated to the electrification markets in 12 developing countries across africa and asia. based in Macclesfield, they have sites in china, hong Kong and Uganda.

Physics plays a leading role in developing the electronic components of the solar equipment that is fundamental to bbOxx’s products. On-going physics-based r&d has led to an increase in the performance of their solar panels. bbOxx endeavours to increase their annual turnover further by developing both their solar panels and batteries for energy generation and storage, respectively. This would lead to an increase in the overall module efficiency and provide cheaper energy for their consumers. Physics r&d could accelerate the implementation of more cost-effective materials and produce more efficient electronic components to reduce the cost of the products further.

inforMation econoMyThe digital economy is rapidly expanding as the communication infrastructure in the UK expands. Physics underpins this infrastructure, not only through the laser, photonics and semiconductor industries but through the extensive knowledge network in the UK through the highly skilled physics-trained workers.

coherent scotland ltdcoherent Scotland, based at the west Scotland Science Park in Glasgow, manufactures cutting-edge laser systems for academic and industrial applications. There are a significant number of physics graduates and post- graduates among coherent’s employees, who are responsible for both the design and manufacture of the lasers.

The biggest customers for coherent Scotland’s products are manufacturers in the semiconductor, photovoltaic and flat-panel-display industries, as well as neuroscientists and biologists in research hospitals and universities. These industries are responsible for next-generation displays, more efficient solar cells and faster, more compact semiconductors. coherent Scotland’s physics-based r&d is rapidly developing new laser technology to meet their customer’s needs.

21 000 ThE PhySIcS-baSEd cONSTrUcTION INdUSTry dIrEcTLy EMPLOyS 21 000 PEOPLE.

for further information contact:alex connor

ioP Institute of Physics

76 Portland Place, London w1b 1NTTel +44 (0)20 7470 4800E-mail alex.connor@iop.orgwww.iop.org

charity registration number 293851Scottish charity register number Sc040092

The Kitemark is a symbol of certification by bSI and hasbeen awarded to the Institute of Physics for exceptionalpractice in environmental management systems.

certificate number: EMS 573735 June 2013

oil and gasThere are 33 000 physics-based jobs in the oil and gas sector in the UK, contributing £1.5 bn in Gva. Physics technologies are integral to the extraction and processing of oil and gas.

shellShell Global Solutions is the largest lubricant merchant in the world, with an approximate 13.5% market share of the estimated £30 bn annual global lubricants spend. The company’s UK headquarters are based near chester, employing more than 500 people.

Shell Global Solutions produce fuels and lubricants for the motor industry and industrial machinery, critical to this is their expertise in understanding the properties of lubricants and their operating conditions within machinery, which enables them to improve fuel efficiency and increase cost-efficiency; financial savings which may then be passed on to the consumer.

Physics, along with other scientific disciplines, such as engineering, chemistry and materials science, is an important speciality in the area of tribology; the science of friction, lubrication and wear. Tribology underpins Shell’s lubricants business, which is a large and profitable part of Shell’s overall business. continuing chemical- physics research, including lubricant r&d, may lead to the development of less viscous oils, reducing wear in machine elements and increasing machine lifetime. This, in turn, would enhance the company’s profits and overall customer satisfaction.