The Logistics and Transport Sector Report by Northamptonshire Enterprise

Northamptonshire Enterprise Partnership The Logistics and Transport Sector Final Report

A report prepared by

PACEC on behalf of Northamptonshire Enterprise Partnership

PACEC Public and Corporate Economic Consultants www.pacec.co.uk 49-53 Regent Street Cambridge CB2 1AB Tel: 01223 311649 Fax: 01223 362913 e-mail: admin@pacec.co.uk

July 2012

Ref: H:\1112\26NEP\Rep\Final\The Logistics and Transport Sector Fina

PACEC

Contents

Contents Executive Summary ......................................................................................................................... i X2

Analysis of the Sector and Employment Trends ................................................................. i

The Business Survey .........................................................................................................iii

The Consultation with Partners ..........................................................................................iii

Conclusions and Policy Issues .......................................................................................... iv

Introduction ............................................................................................................................. 1 1.1

Introduction and Project Aims ............................................................................................ 1

1.2

The Research Methodology ............................................................................................... 2

1.3

The Structure of the Report ................................................................................................ 3

Analysis of the Sector and Employment Trends .................................................................... 4 2.1

Introduction ......................................................................................................................... 4

2.2

Employment ....................................................................................................................... 4

2.3

Size Structure of Establishments ....................................................................................... 8

2.4

Spatial Distribution of Employment .................................................................................. 12

2.5

The Concentration of Employment. Location Quotients ................................................. 25

2.6

Occupations, Skills and Skills Needs ............................................................................... 34

2.7

The Wages and Pay Levels ............................................................................................. 35

2.8

The Employment Densities in Logistics and Transport .................................................... 37

Results of the Business Survey ............................................................................................ 39 3.2

The Characteristics of Businesses ................................................................................... 39

3.3

Business Objectives and Prospects ................................................................................. 40

3.4

The Business Constraints Facing Firms .......................................................................... 41

3.5

The Strengths and Weaknesses of the Northamptonshire Economy .............................. 45

3.6

Future Prospects for the Sector ....................................................................................... 49

3.7

Key Policy Issues ............................................................................................................. 50

Consultations with Partners .................................................................................................. 51 4.2

The Types of Organisations ............................................................................................. 51

4.3

The Business Constraints Facing Firms .......................................................................... 51

4.4

The Strengths and Weaknesses of the Northamptonshire Economy .............................. 56

4.5

Logistics / Warehousing Sub-Sector. Discussions with the Property Sector .................. 59

4.6

Future Prospects for the Sectors ..................................................................................... 61

4.7

Key Policy Issues ............................................................................................................. 61

Conclusions and Policy Issues ............................................................................................. 63 5.2

The Importance of the Sector ........................................................................................... 63

5.3

The Strengths of the Economy......................................................................................... 63

5.4

Business Constraints and Suggested Actions ................................................................. 64

Appendix B

The Structure of the Interviews ........................................................................... 67

Questionnaire for Businesses .......................................................................................... 67

Questionnaire for Partners ............................................................................................... 67

Appendix C

Site Schedules from West Northamptonshire Employment Land Study from the

Joint Planning Unit ........................................................................................................................ 68 Appendix D

Sites Schedules from North Northamptonshire Joint Planning Unit ................... 71

The Logistics and Transport Sector

PACEC

Executive Summary

Executive Summary X1.1

In January 2012 PACEC was appointed by the Northamptonshire Enterprise Partnership (NEP) to carry out a series of research projects on the Northamptonshire economy to help guide future investments.

The research projects cover sector

profiles in the county and reports on the food and drink and transport and logistics sectors. This report focuses on the logistics and transport sector. It is recognised as an important sector in the Northamptonshire economy and a significant employer. The sector, based on the main activities of businesses, is defined as rail services (for freight and passengers), road freight transport, warehousing, storage and distribution, postal and courier services (with taxis).

It also includes businesses with other

important logistics functions, although this was not their main activity. For example, in food, retail, electronic goods and building supplies. The companies here make a significant contribution to employment opportunities in the county and are predominantly large and well established businesses.

The study builds on the

success of previous NEP work with partners (eg the Logistics Steering Group). It seeks to: ● Achieve a clear definition and understanding of the logistics and transport sector. ● Compile, as accurately as possible, a directory of the companies. ● Carry out an analysis of the sector by, for example, employment, its location, size of companies, skills, and occupations ● Assess the constraints businesses face and development issues X1.2

The research has involved a desk study of relevant reports, an analysis of sector trends using the PACEC Local Economic Profiling System (LEPS), the compilation of the directory of companies, a survey of a representative sample of some 200 businesses, and interviews with some twenty partners as part of the wider economic development system.

These comprised the Local Authorities, business support

groups, the commercial property sector, industry bodies, the education / training sector, and some larger transport companies.

X2 X2.1

Analysis of the Sector and Employment Trends The core logistics and transport sector, with 27,000 jobs, comprised just under a tenth 1

of total employment in Northamptonshire (8%) in 2010 . This is almost double the average for Great Britain (GB) as a whole (4%). The sector employed 1,700 more people (7%) in Northamptonshire in 2010 compared to 2008. In GB the change was minus 5%.

The core sector in Northamptonshire is dominated by road freight

transport and warehousing and storage, which together accounted for almost two thirds of total employment in the sector in 2010 (although they were in decline from 2008-10 when nationally they were growing). The employment in the sectors where logistics is not the primary activity was approximately 12,500 in 2012. Hence this brings the total employment in logistics activities to almost 40,000 for the county. Some key features of the sectors overall were as follows:

Data from the ONS Business Register Employment Survey (BRES), and enhanced by PACEC.

Note the 2011 data is not published for use until December 2012.

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Executive Summary

●

● ● ●

●

Employment in postal and courier activities showed the strongest growth and more than trebled from 1,300 in 2008 to 5,400 jobs in 2010, ie possibly the visible mail and postal activities and other courier growth. There were approximately 1,400 establishments (businesses and branches) operating in the sector as a whole in 2008 (the latest year for data). Almost half of these (48%) were freight road transport businesses. The overwhelming majority of establishments are micro businesses - 84% and some 94% were SMEs. In the sector where logistics is not the primary function but important, the companies are predominantly medium sized and large. In numeric terms, Northampton has the highest number of people employed in the sector, with around 9,100 employees. This represents approximately one-third (34%) of the sector total. Daventry has the second highest number of employees (5,200 or 19%), followed by Corby (3,600 or 13%). One in seven jobs in Daventry (15%) are in the logistics sector, as are one in eight jobs in Corby (12%), where concentrations are highest. The logistics and transport sector as a whole provides almost twice as many jobs in Northamptonshire (1.84) as the national average. There are some seasonal changes to jobs in the sectors where employment increases, particularly over the Christmas period. These include the postal and courier activities, taxis and distribution linked to the retail sectors, when Christmas purchases are higher. . The long term picture for jobs in the sector is very positive. Employment could grow by 8,250 jobs between 2010-21, to a total of 35,250 in the SIC codes with additional growth in companies where logistics is not the primary activity giving a total of 51,750 jobs in the sector The occupations and skills in the sector in Northamptonshire reflect the regional distribution. A third of the jobs in the county and region are management, professional and admin jobs. Two thirds are in the manual occupations. In Northamptonshire, the sector has a much higher proportion of elementary occupations, but fewer plant and machine operatives. The occupations in businesses where logistics is not the primary activity reflect the above, although there are fewer professional / technical staff as these functions are usually carried out on other sites for the businesses (eg the shops themselves) or HQs. However, this does not detract from the important number, and quality, of employment opportunities. The additional skills required were as follows: intermediate manual and elementary skills, English language skills (primarily for migrants), specialist apprenticeships (eg for high tech vehicle maintenance), HGV drivers and general warehousing skills. These were the needs for businesses with logistics as their primary function and for other businesses where logistics activity was important. In the East Midlands, where pay is very similar to Northamptonshire, median weekly gross pay across all sectors was £380, and in the transportation and storage sector it was £440. However, it was lower in the sub-sector where logistics was not the primary function as there were fewer professional / technical staff on site. The size ranges for general warehousing, storage and distribution can be 2 c.450m for low density employment and specialist distribution and up to 2 50,000m for the largest (or above this). The middle ranges could be 2 2 3,000m to 5,000m . These middle range figures apply to the businesses where the logistics function is not the primary activity.

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Executive Summary

The Business Survey

X3.1

The survey provided a representative sample of businesses in the sector.

The

overwhelming majority of the businesses (84%) were independent companies. Just under half (49%) established after 2001. The vast majority were micros and SMEs. X3.2

The survey showed a low level of good business practices – few businesses (around two in five or less) carried out staff training or development, have quality systems, environmental management practices or carry out innovation or collaborate with others for R&D. This is particularly the case with micro and SME businesses, primarily because of the costs involved.

X3.3

The majority of the businesses did not face significant constraints. Where they did the main constraints were the current economic context, sites and premises (the lack of availability, the quality, the poor parking facilities the lack of security), transport links (major roads were too narrow eg the A14, they had poor surfaces that were not repaired and lorry parking facilities were poor) and general operating costs (for fuel, energy, labour and premises).

X3.4

The businesses considered Northamptonshire’s main economic strengths are its overall favourable location (that provided good access to markets and labour), its transport links (in spite of some constraints), and the image and reputation of the county for its quality of life and for providing a “sense of place”.

X3.5

The main weakness of Northamptonshire’s economy was considered to be the low level of business support services (for general and specialist advice including innovation, exporting and finance). The shortage of labour also featured and the difficulty of recruiting HGV drivers and younger drivers (across all sectors).

X3.6

The degree of collaboration between businesses and other organisations (as a feature of clusters) was relatively low except for links with suppliers and customers and other firms for around two fifths of businesses.

However, there were few

educational / training links and just a quarter of firms were a member of, or got involved with, trade associations. X3.7

The commercial property sector in Northamptonshire considered that there were very few vacant logistics and warehousing units available because of relatively high levels of demand. The vacant units were considered to be older and unsuitable units.

X3.8

On the whole, the businesses were optimistic about the future prospects of the sector over the next 3-5 years.

The Consultation with Partners

X4.1

The majority of partners did not think businesses in the sector faced constraints to any great extent. However, they placed more emphasis on them than businesses, possibly because firms contact them directly to deal with issues. The constraints mainly related to transport (problems with the A14, major junctions, lorry parking facilities, and public transport in more rural areas), sites and premises (primarily the need for larger sites and premises, more modern facilities, better access and security), labour and skills (the shortage and HGV drivers, intermediate manual and

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Executive Summary

elementary skills and apprenticeship opportunities) and business support (the need to clarify the support available and create more specialist support). Partners considered that these constraints affected the larger distribution firms more, primarily because of their scale. X4.2

The partners identified some key strengths in the county: the location of the county (with access to markets but subject to improvements in the transport system), its business base (with its diversity), and its overall / general labour market (ie the availability and quantity of labour and skills).

X4.3

The main weakness identified were sites and premises (ie primarily a general lack of availability and the costs to rent or buy). Some of the transport aspects were the need for road widening on major roads (eg the A14), poor lorry parking facilities and motorway services, road / rail interchanges, as well as rural bus services, primarily for employees getting to and from places of work.

X4.4

The property sector organisations consulted highlighted the poor supply of warehousing and distribution sites and premises. It was considered that developer and occupier interest was being diverted to some extent to South Yorkshire and Milton Keynes as a result.

X4.5

The partners were, on the whole, very optimistic about the future prospects of the logistics and transport sector.

Around four-fifths anticipated there would be an

increase in the level of employment over the next three to five years.

Conclusions and Policy Issues The Importance of the Sector

X5.1

Issues arising from the sector and employment trends (chapter 2): ● Given the number of jobs in the logistics and transport sector in Northamptonshire in strategic policy terms it is a sector which should be maintained and encouraged to grow in appropriate locations and subject to its compatibility. ● The road freight and warehousing and storage sectors should be a focus of strategic policy to arrest the decline in the county (in the face of national growth). ● Jobs are concentrated in some locations. However, opportunities to distribute the employment opportunities more widely in the county may be limited.

The Strengths of the Economy X5.2

Issues arising from the survey of businesses and consultations with partners (chapter 4 and 5) ●

The location of Northamptonshire with access to markets and the labour supply is a key strength which should be maintained by improvements to transport links (especially roads).

●

The diversity of the business base is a strength which should be developed positively as a feature of the County’s growth policy scenarios.

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Executive Summary

Business Constraints and Suggested Improvements X5.3

Issues arising from the survey of businesses and consultations with partners (chapter 4 and 5)

X5.4

The discussions with businesses and partners directly identified constraints and suggestions which should be prioritised for action. 1 A Shortage of Adequate Sites and Premises – Actions Improve the availability and diversity of sites including larger sites with modern facilities. Increase the range of premises with grow-on space and larger units that are of better quality and are secure and highly accessible. Improve the quality of the environment at sites and estates. 2 Transport Issues – Actions Accelerate A14 improvements (with widening and improved junctions). Increase lorry parking provision, public transport in rural areas and east-west rail links. 3 The Supply of Labour and Skills – Actions Strengthen skills through improved training provision for HVG drivers, warehousing staff, high tech vehicle maintenance staff (with apprenticeships), and upgrade manual, elementary skills and English language skills (for migrants). Encourage more training for the unemployed and target higher quality jobs that are attractive to job seekers and existing employees. 4 Business Support Issues – Actions Increase the overall level of business support and the specialist support for business development, innovation and product development and exporting with easier access to support. Promote the services more widely to SMEs and micros. Liaise with banks to improve the supply of debt funding.

X5.5

As part of the research, business practices were reviewed.

There are some

priorities that business support services could focus on. In particular staff training and development, quality and accreditation systems, environmental management practices and support for innovation to develop new and enhanced products or services. X5.6

It is considered that the stakeholders and partners in Northamptonshire should develop a strategy and action plan focusing on the study findings to maintain and build on the county’s strengths and address constraints.

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Introduction

1.1

Introduction and Project Aims

1.1.1

In January 2012 PACEC was appointed by the Northamptonshire Enterprise Partnership (NEP) to carry out a series of research projects on the Northamptonshire economy. The aim was to provide additional evidence to help shape and guide future strategic investments. The research projects cover:

1.1.2

A review of Northamptonshire’s sector profile including an assessment of the strengths of the main sectors and the numbers of jobs with their growth and decline

A sector profile of the food and drink sector, the trends in the county, and the issues faced

A sector profile of the logistics and transport sector, the trends in the county and the issues faced

It was recognised at the outset that these studies overlapped to some extent and that some of the research tasks and issues faced overlapped to some extent.

1.1.3

The report focuses on the logistics and transport sector. The project brief recognised that the logistics and transport sector is a large part of the Northamptonshire economy and Northamptonshire is the heart of the “golden triangle” for logistics distribution locations – with over 80% of the UK population located within a four hour drive time.

1.1.4

It was seen as the largest employment sector in the county and one which Northamptonshire Enterprise Partnership was working with to provide further support and look at barriers to growth and strengthen the sector in the county and aid future investment.

1.1.5

In this context NEP was collaborating closely with partners and a steering group for logistics has been formed, and has met to identify a number of key areas of work to aid the sector, including defining the companies based in the county.

1.1.6

The economic context is important because of the growth scenarios being developed for the county, coupled with the economic prospects and the double-dip in overall growth.

1.1.7

Building on the success of this work in the sector, and in direct response to feedback from the recently formed Logistics Steering Group, the objective of this research is to; ●

Achieve a clear definition and understanding of Northamptonshire’s Transport & Logistics Sector and the impact of the cluster on the Northamptonshire economy.

●

Compile an as close to definitive as possible a 2011/12 listing of the companies in the cluster and to provide contact information for companies.

●

Carry out analysis of the sector to include - A mapping by employment in different parts of the county

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Introduction

1.1.8

The availability of premises / units The average size of companies and size bands by employment and the average size of buildings (with floor space per worker / densities) Salaries in the sector and comparisons with national averages Skills & qualification needs of companies in the sector

It was anticipated that a short â&#x20AC;&#x2DC;state of the sector / clusterâ&#x20AC;&#x2122; report would be completed for March 2013 and March 2014 to update the core data above.

1.2

The Research Methodology

1.2.1

To meet the aims of the project an integrated research programme has been carried out. This has involved a number of key tasks: a

The inception meeting. This was held with the Steering Group to clarify the project aims, gain further insights into the key issues, agree the sector definition, and marshal the relevant information for the project, including previous reports and papers relevant to the sector, the past activities held, and appropriate contact information for consultations with partners and stakeholders. The logistics and transport sector was defined by the Steering Group as follows based on the main activity of businesses: - Rail (freight and interurban passengers) - Urban / suburban passenger land transport - Taxi companies - Other passenger land transport activities - Freight transport by road - Removal services - Air, water, or pipeline transport - Warehousing and storage - Cargo handling and related transport services - Other transportation support activities - Postal services - Other postal and courier activities The sector encompasses a number of sub-sectors in order to capture the full range of activities. The main ones are the distribution of freight / goods by road, warehousing and storage, and general delivery and courier services using smaller vehicles â&#x20AC;&#x201C; sometimes taxis (as the logistics companies increasingly deal with larger / bulk services while there is still a requirement for the delivery of smaller parcels etc). The definition above was extended to include the significant number of larger firms based in Northamptonshire who had an important logistics function, primarily to distribute their own products / services and handle supplies. Logistics was not their primary activity, which could include, for example, food retail, electrical goods, and building supplies. The sectors represent the components of the supply chain for logistics and transport comprising, for example, the distribution and export of goods from producers with some goods going via the road freight facilities and the ports. Other goods are imported to the county, for example from the ports, and distributed to outlets in the county for both producers and ultimately consumers (as part of the retail sector and other services).

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1.2.2

Introduction

A desk study. This formed an overview of the key documents to assist with the development of the issues, identify relevant information, and feed into the design of the research highlighting in particular where there were gaps to fill.

An analysis of sector trends. To carry this out the PACEC Local Economic Profiling System (LEPS) was used. This is a computer based statistical toolkit which has been developed with agencies to examine economic development issues. LEPS builds on, and enhances, published data sources such as the ONS Business Register Employment Survey (and other databases). Key outputs for the project are employment trends for the sector and the distribution and concentration of employment in different parts of Northamptonshire.

The directory of companies. This list was drawn from a commercial database for February 2012 and verified using contacts from the business survey shown below.

A survey of businesses. Interviews were held with a stratified sample of some two hundred core logistics and transport businesses by sector, subsector, size bands and locations in the county. Some twenty companies were also interviewed where logistics was not their primary activity. The interviews were carried out using a structured questionnaire piloted with businesses before the full fieldwork. The key topics covered employment information, the business constraints faced and the strengths and weaknesses of the county as a place to do business.

Interviews with wider partners. These interviews were held with some twenty five partners in the Local Authorities (planning and economic development teams), the commercial property sector, business associations for the sector and business support groups. A structured set of topics was used. The topics covered the business constraints faced and the strengths and weaknesses of the county as a place to do business.

To allow the surveys and interviews to be analysed efficiently, a database was set up so that the results could be verified and computed.

1.3

The Structure of the Report

1.3.1

Following this introduction, the following chapter sets out the analysis of the sector and employment trends. Chapter three outlines the main features of the company directory. Chapter four sets out the results of the business survey and chapter five the results of the partner interviews. The final chapter draws out some conclusions and key issues for the sector drawn from the businesses and partner discussion.

1.3.2

The supporting appendices show the topics used for the surveys and information on sites for logistics and warehousing / distribution in the county.

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Analysis of the Sector and Employment Trends

2.1

Introduction

2.1.1

This chapter sets out an analysis of the logistics and transport sector in Northamptonshire. The sector encompasses a number of sub-sectors in order to capture the full range of activities. The main ones are the distribution of freight / goods by road, warehousing and storage, and general delivery and courier services using smaller vehicles, as shown in the introduction. They represent the components of the supply chain for logistics and transport comprising, for example, the export of goods from producers with some goods going via the road freight facilities and the ports. Other goods are imported to the county, for example from the ports, and distributed to outlets in the county for both producers and ultimately consumers (as part of the retail sector and other services). The analysis covers:

2.1.2

The overall employment trends for the sector

The size structure of establishments

The spatial distribution of employment in the Local Authority areas

The concentrations of employment and location quotients

Self employment in the sector

To carry out the analysis the PACEC Local Economic Profiling System (LEPS) has been used which builds on published data sources such as the Office of National Statistics (ONS) Business Register Employment Survey. Additional research was carried out on businesses who had an important logistics function, although it was not their main activity. The information on these activities is not available through ONS / LEPS, which uses the main activity as the SIC definition. We report on this sector in separate paragraphs below.

Data is not available to permit analysis using full

estimates of employment by district or location quotients / concentrations as there is no national information.

2.2

Employment

2.2.1

The Logistics and Transport sector comprises a wide range of transport-related activities, covering the movement of goods and passengers.

The sector has

experienced significant overall employment growth during the economic downturn, with an increase of approximately 1,700 jobs (a rise of 7%) between 2008 and 2010. Although there was a three percent fall in the jobs total in 2008-09 (-700 jobs), this was more than compensated for by a jump of almost a tenth (9% or 2,400 jobs) in 2009-10. As might be expected, there was considerable variation in the employment performance of the different sectoral activity areas during the period. Employment in postal and courier activities more than trebled, and rose from 1,300 in 2008 to 5,400 in 2010, ie possibly the visible mail and postal activities and other courier services. There were smaller, but still significant, increases in employment in all passenger transport services, such as urban/suburban land transport (60% or 500 jobs), other

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Analysis of the Sector and Employment Trends

passenger land transport (75% or 200 jobs) and taxi operation (70% or 200 jobs); and also in postal activities (9% or 200 jobs).

But there were significant job losses

elsewhere. By far the largest overall fall in employment (26%) was in freight road transport, which shed more than 3,000 jobs. A sharp decline of 4,500 jobs in 200809, was followed by a rise of 1,400 in 2009-10. Smaller but significant job losses were also recorded in warehousing and storage (8% or 600 jobs) and in other transport support activities (14% or 200 jobs).

Table 2.1 shows the trends in

employment in the logistics and transport sector in Northamptonshire.

The main

logistics sectors are shown as the first four sub-sectors. Table 2.1

Employment trends Employment (including employees and working proprietors) 2008

2009

2010

2008-10 2008-10 absolute %

Logistics Rail (freight and interurban passenger)

100

200

100

n/a

Freight transport by road

12,000

7,500

8,900

-3,100

-26%

Warehousing and storage

6,800

6,100

6,200

-600

-8%

Cargo handling and incidental transport services

200

300

200

Urban/suburban passenger land transport

800

700

1,200

500

60%

Taxi operation

300

400

600

200

70%

Other passenger land transport

200

300

400

200

75%

Removal services

100

0* n/a

Air, water, or pipeline transport

0* n/a

n/a

Other transportation support activities

1,100

1,000

-200

-14%

Other postal activities (universal service obligation)

2,500

2,400

2,800

200

Postal and courier activities

1,300

5,400

4,200

332%

25,300

24,600

27,000

1,700

Grand Total

Note: Statistics are rounded to the nearest 100. Therefore, the statistics in each column may not add up to the rounded grand total. Rounded employment figures below 50 are reported as 0* and calculations based on these statistics are marked â&#x20AC;&#x153;n/aâ&#x20AC;? as they would be disclosive. Source: Office for National Statistics (Business Register Employment Survey); PACEC

2.2.2

Table 2.1 also shows that freight road transport employs the largest number of people within the logistics and transport sector. In 2008 it accounted for almost half of the workforce in the sector; and despite the job losses sustained in the downturn, freight road transport, with some 8,900 employees and working proprietors, was still the largest, with a third of the workforce in logistics and transport. Warehousing and storage is the second largest activity area. In 2008 it accounted for more than a quarter (27%) of the workforce in logistics and transport. Although some 600 jobs were lost in the downturn, warehousing and storage still employed almost a quarter (23%) of the total workforce in logistics and transport in 2010 or 6,200 jobs. Postal activities are the third largest employer in the logistics and transport sector, and activities here increased in Northamptonshire between 2008 and 2010 by some 4,200 jobs. This can be seen in particular in postal and courier activities which recorded a significant rise in jobs, from only five percent of employment in logistics and transport

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Analysis of the Sector and Employment Trends

in 2008, to 20% in 2010. This change is likely to be the visible mail and postal activities and other courier growth. important.

Some sectors are relatively small and less

For example, removal services, air/water related transport, rail

employment, miscellaneous passenger services, and taxis (albeit the latter two grew by 200 jobs each between 2008-2010). 2.2.3

The logistics and transport sector provides a distribution service for a variety of companies in the agricultural, manufacturing, construction, wholesale and retail industries. In many cases (due to economies of scale etc.) larger companies in nontransport sectors may operate their own logistics sites. These may not be classified under the transport and logistics industry as defined above, but provide significant additional employment to the Northamptonshire economy. Based on an analysis of Experian employment data from companies in a range of key logistics sites across the county, we estimate that an additional 12,500 employees may be working in logistics activities for companies whose primary industry of activity falls outside the logistics and transport sector defined above. This represents an additional 46% over and above the employment of 27,000 reported above.

2.2.4

For the purpose of comparison with the Northamptonshire position, Table 2.2 presents the employment picture by sector for Great Britain as a whole. It can be seen that the transport and logistics sector as a whole lost 5% of its employment between 2008 and 2010, compared to the 7% overall rise in its employment in Northamptonshire. This makes Northamptonshireâ&#x20AC;&#x2122;s relative performance all the more impressive, as the sector has bucked the national trend.

The full breakdown of

employment for all the sub-sectors of the transport and logistics sector is shown below. However, freight transport by road and warehousing and storage employment has been in decline in Northamptonshire but growing nationally by 14% and 6% respectively.

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Table 2.2

Employment trends in Great Britain Employment (including employees and working proprietors) 2008-10 absolute 2008-10 %

2008

2009

2010

53,900

51,400

50,900

-3,000

-6%

Freight transport by road

115,500

134,100

132,000

16,500

14%

Warehousing and storage

36,100

37,600

38,400

2,300

Cargo handling and incidental transport services

71,700

65,100

66,500

-5,200

-7%

274,300

230,300

223,200

-51,100

-19%

15,600

14,800

-800

-5%

Other passenger land transport

101,700

90,600

85,700

-16,000

-16%

Removal services

151,500

156,200

159,400

7,900

Air, water, or pipeline transport

154,200

141,200

139,500

-14,700

-10%

66,600

62,300

54,700

-11,900

-18%

188,500

184,700

166,100

-22,400

-12%

72,800

105,700

104,600

31,800

44%

1,302,400 1,274,100 1,235,900 -66,500

-5%

Logistics Rail (freight and interurban passenger)

Urban/suburban passenger land transport Taxi operation

Other transportation support activities Postal activities under universal service obligation Other postal and courier activities Grand Total

2.2.5

PACEC maintains a contiguous series of employment data dating back to 1971, which takes account of all the different data collection methods and industrial classifications which have been used over that period. This data series provides some insight into the broader, longer-term national trends in the transport sector as a whole - however, repeated changes in the classification of different parts of the logistics industry make it impossible to discern trends in the sub-sectors. The number of workplace jobs in Northamptonshire provided by the transport sector trebled between 1971 and 2011. The rate of growth appeared to slow over the latter part of the 2000s â&#x20AC;&#x201C; however, the response of the transport sector to the recession to date has been encouraging, and the views of partners and businesses were positive, with over half of businesses anticipating growth over the next three years and the great majority of partners expecting the sector to continue to grow (see later chapters). The PACEC forecasts using LEPS and the sector views indicate that employment could grow by 8,250 jobs between 2010-21, or a total of 35,250 in the SIC codes and with additional growth in companies where logistics is not the primary activity growing similarly giving a total of 51,750 jobs in the sector.

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Analysis of the Sector and Employment Trends

Figure 2.1

Workplace jobs in the transport sector, 1971-2010

Source: Office for National Statistics (Census of Population 1971-2001, Business Register Employment Survey and antecedents); PACEC

2.3

Size Structure of Establishments

2.3.1

The size structure of establishments in the logistics and transport sector in Northamptonshire is shown in Table 2.3. The latest available data included in the table indicate that there were approximately 1,400 establishments operating in the sector as a whole in 2008. Almost half of these (48%) operate freight road transport businesses. Just under a quarter (23%) are engaged in postal and courier services, almost one in ten (8%) operate warehousing and storage, and six per cent are engaged in taxi operations. The table also shows that the overwhelming majority of establishments are micro businesses with ten or fewer employees. Micro businesses account for more than four-fifths (84%) of all establishments in the sector and with SMEs â&#x20AC;&#x201C; up to 49 employees (94%). One in ten establishments (9%) employ 11-49 people, and the rest (6%) 50 or more. The micros are dominant in all sectors but further details cannot be published for confidentiality reasons.

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Analysis of the Sector and Employment Trends

Table 2.3

Size structure of establishments in logistics and transport subsectors (2008) Size of establishment (employees) 1-10

11-49

50+

Rail (freight and interurban passenger)

n/a

Freight transport by road

580

Warehousing and storage

Cargo handling and incidental transport services

n/a

Urban/suburban passenger land transport

n/a

Taxi operation

n/a

Other passenger land transport

n/a

Removal services

n/a

Air, water, or pipeline transport

n/a

Other transportation support activities

n/a

Postal activities under universal service obligation

n/a

260

n/a

1,190

130

Logistics

Other postal and courier activities Grand Total

Note: Statistics are rounded to the nearest 10. Therefore, the statistics in each column may not add up to the rounded grand total. Statistics relating to 20 or fewer establishments may not be quoted as they would be disclosive, and are marked â&#x20AC;&#x153;n/aâ&#x20AC;?. Source: Office for National Statistics (Annual Business Inquiry); PACEC

2.3.2

Further analysis of the data showed that the average number of employees per establishment in the logistics and transport sector was about 17 (see Table 2.4). But there was considerable variation in employment levels across the sector. In terms of headcount, warehousing and storage businesses employed the most people, with around 54 employees for each establishment.

They were followed by urban

passenger land transport and postal services under licence, with around 31 employees for each establishment. The other establishments with significant average number of employees were freight road transport and other transport activities, with an average of around 17 employees.

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Analysis of the Sector and Employment Trends

Table 2.4

Employees per establishment in logistics and transport subsectors (2008) Employees per establishment

Logistics Rail (freight and interurban passenger)

5.6

Freight transport by road

17.0

Warehousing and storage

54.6

Cargo handling and incidental transport services Urban/suburban passenger land transport

4.7 31.6

Taxi operation

3.1

Other passenger land transport

7.1

Removal services

4.5

Air, water, or pipeline transport

1.0

Other transportation support activities

16.8

Postal activities under universal service obligation

31.3

Other postal and courier activities Average

4.5 17.1

Source: Office for National Statistics (Annual Business Inquiry); PACEC

2.3.3

The estimate of 12,500 additional jobs in logistics activities for companies whose primary industry of activity is not logistics or transport includes employment data for a number of substantial employment sites throughout Northamptonshire. Where we have been able to source employment data, the average employment at these sites has been slightly over 100. As these employment sites will often have come into being to take advantage of the economies of scale which can be exploited by their very large parent organisations, it is reasonable to suppose that they are of above average size for the logistics and transport sector. However, it is also likely that the set of companies and sites for which good employment data can be found is biased towards the larger organisations, which suggests that a reasonable estimate for the number of employees per site in these logistics operations is somewhere between 50 (roughly the average for warehousing and storage) and 100.

2.3.4

Figure 2.2 below shows the number of establishments in each district. It confirms that over a quarter of the establishments in the logistics and transport sector are concentrated in Northampton, with the other districts being of similar sizes but with Daventry having the next highest establishment count and Corby having the fewest establishments.

The Logistics and Transport Sector

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Analysis of the Sector and Employment Trends

Figure 2.2

Map of establishments

Corby East Northamptonshire Kettering

Daventry Wellingborough Northampton

Establishments

South Northamptonshire

100 to 150 150 to 200 200 to 250 250 to 300 300 to 350 350 to 400

Source: PACEC

2.3.5

Figure 2.3 shows the percentage of establishments in each district which have 50 employees or more for the sectors where logistics is the primary activity or it is an important activity. It shows that while Corby has the fewest establishments, these tend to be larger in size, with over 11% of having 50 employees or more.

South

Northamptonshire and Kettering have the lowest share of larger companies, with South Northamptonshire having 3.5% and East Northamptonshire having 2.6%.

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Analysis of the Sector and Employment Trends

Figure 2.3

Map of concentration of larger establishments (50+ employees) for all sectors

Corby East Northamptonshire Kettering

Daventry Wellingborough Northampton

South Northamptonshire

Large firms 2% to 4% 4% to 6% 6% to 8% 8% to 10% 10% to 12%

Source: PACEC

2.3.6

The additional analysis of logistics activities operated by companies whose primary industry of activity is not logistics or transport confirms the general pattern of distribution in the above map, and indeed suggests that the distribution of large firms may be even concentrated in Corby and Northampton, which are host to distribution centres for companies such as Avon, Comet, Matalan, and Sainsbury’s in Corby, and Carlsberg Tetley, Travis Perkins, Asda, Sainsbury’s, Morrisons, and John Lewis in Northampton.

2.4

Spatial Distribution of Employment

2.4.1

Table 2.5 shows the overall distribution of employment in the areas of sector activity across the county districts. In numeric terms, Northampton has the highest number of people employed in the Logistics sector, with around 9,100 employees and working proprietors.

This represents approximately one-third (34%) of the sector’s total

workforce of around 27,000 people. Daventry has the second highest number of employees (5,200 or 19%), followed by Corby (3,600: 13%), Wellingborough (2,600: 10%), East Northamptonshire (2,400: 9%), South Northamptonshire (2,200: 8%) and Kettering (1,900: 7%). Table 1.2 shows further that employment in the sector is concentrated in four main areas of activity. Freight road transport employs the largest number of people. With almost 9,000 people employed, it accounts for a third (33%: 8,900) of the workforce. Warehousing and storage accounts for just under a quarter

The Logistics and Transport Sector

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Analysis of the Sector and Employment Trends

of people employed (23%: 6,200); postal and courier services, a fifth (20%: 5,400); and other postal activities, approximately one-tenth (10%: 2,800). 2.4.2

In terms of their overall distribution, the data also show that employment in freight road transport is quite widely spread within the county, albeit with particular concentrations in Northampton, Daventry and Corby. Warehousing and storage is, similarly, well-represented across the districts, but with heavy concentrations in Corby and Northampton, and slightly less so in South Northamptonshire and Daventry. Postal services are the most heavily concentrated, with two-thirds of jobs located in Northampton (35%) and Daventry (30%), possibly with the visible mail and postal activities and other courier growth, and around a fifth in Wellingborough (19%). The rest of the sectoral activities are represented on much smaller scale across most of the districts.

The Logistics and Transport Sector

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Analysis of the Sector and Employment Trends

Table 2.5

Employment by district, 2010 Employment (including employees and working proprietors) Corby

Daventry

East Northants

Kettering

NorthampSouth ton Northants

Wellingborough

Northants total

Logistics Rail (freight and interurban passenger)

100

200

Freight transport by road

1,400

1,600

800

600

3,100

800

600

8,900

Warehousing and storage

1,400

800

300

700

1,300

900

700

6,200

Cargo handling and incidental transport services

Urban/suburban passenger land transport

100

Taxi operation

100

Other passenger land transport

100

100 0* 100 0*

0* 400

0* 200

0* 500

200

1,200

100

200

100

600

400

Removal services

100

Air, water, or pipeline transport

100

Other transportation support activities

1,000

100

200

100

500

Postal activities under universal service obligation

100

800

100

200

1,300

Other postal and courier activities

300

1,600

500

100

1,900

3,600

5,200

2,400

1,900

9,100

Grand Total

100 0* 2,200

100

2,800

1,000

5,400

2,600

27,000

2.4.3

The distribution of the estimated 12,500 additional employees working in logistics activities for companies whose primary industry of activity is not logistics or transport appears to be a exaggerated version of the distribution set out in Table 2.5 above, with over half of the activity (or some 7,000 employees) concentrated in Northampton. We estimate that the next largest concentration of employees in these activities is to be found in Corby, with 2,300 employees; this fits with the observations above that Corby has a higher density of larger companies than the other districts, and may suit the logistical spin-off establishments of larger organisations in other industries.

The Logistics and Transport Sector

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2.4.4

Analysis of the Sector and Employment Trends

Figure 2.4 shows the share of total employment in each district for all sectors. It confirms that Northampton has substantially the largest share of employment with around a third of the total. Daventry is second with 19% of Northamptonshireâ&#x20AC;&#x2122;s employment, and the other districts are all of broadly similar sizes, with Kettering smallest. Figure 2.4

Employment by district for all logistics and transport sectors

Corby East Northamptonshire Kettering

Daventry Wellingborough Northampton

Employment Up to 2000 2000-4000 4000-6000 6000-8000 8000-10000

South Northamptonshire

Source: PACEC

The Logistics and Transport Sector

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2.4.5

Analysis of the Sector and Employment Trends

The contribution that the sector makes to total employment in each district provides a measure of its importance to the local economy. Table 2.6 shows that jobs in the logistics and transport sector make up just under a tenth of total employment in Northamptonshire (8%). This is almost double the average of four percent of logistics and transport jobs in Great Britain as a whole. The average for the county, however, masks the true significance of the sector to overall employment some districts. For example, one in seven jobs in Daventry (15%) are in the Logistics sector, as are one in eight jobs in Corby (12%). When taken individually, freight road transport provided around five per cent of total employment in Corby and Daventry. These compare very favourably with their average contribution of around three percent of employment in the county, and less than one percent of employment nationally. Warehousing and storage provided around five percent of total employment in Corby, compared with two percent in the county, and less than one percent nationally. Likewise, postal and courier activities, with five percent of jobs in Daventry, compared with only two percent in Northamptonshire as a whole.

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Table 2.6

Percentage of total employment by subsector and district, 2010 Employment (including employees and working proprietors) Corby

East Northamp South Welling- Northants Daventry Northants Kettering -ton Northants borough total

Great Britain

Logistics Rail (freight and interurban passenger)

n/a

0.1%

n/a

0.1%

0.2%

Freight transport by road

4.8%

4.5%

2.9%

1.5%

2.4%

2.7%

1.8%

2.7%

0.8%

Warehousing and storage

4.6%

2.3%

1.2%

1.7%

1.0%

3.1%

2.2%

1.9%

0.6%

Cargo handling and incidental transport services

n/a

Urban/suburban passenger land transport

0.5%

Taxi operation

0.4%

Other passenger land transport

0.2%

0.1% n/a 0.3% n/a

n/a 1.4%

n/a 0.5%

n/a 0.4%

n/a

0.1%

0.5%

n/a

0.4%

0.5%

0.2%

0.1%

n/a

0.1%

0.2%

n/a

0.1%

0.2%

n/a

0.0%

0.7%

0.2%

Removal services

n/a

0.0%

0.1%

Air, water, or pipeline transport

n/a

0.0%

0.3%

Other transportation support activities

n/a

0.3%

0.2%

0.4%

0.8%

0.6%

2.9%

1.7%

0.4%

7.9%

8.3%

4.4%

0.3%

0.6%

0.2%

0.4%

Postal activities under universal service obligation

0.3%

2.4%

0.2%

0.5%

1.0%

Other postal and courier activities

1.2%

4.5%

1.7%

0.3%

1.4%

12.1%

14.6%

8.5%

5.0%

6.9%

Grand Total

0.3% n/a 7.4%

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2.4.6

Analysis of the Sector and Employment Trends

Looking more specifically at the districts, employment in logistics and transport in Corby is dominated by freight road transport and warehousing and storage which, together account for at least four-fifths of jobs in the sector. Table 2.7 shows that overall employment in logistics and transport in Corby fell slightly over the three-year period, from 3,800 in 2008 to 3,600 in 2010. Freight road transport saw the largest fall in the number of jobs; with employment in the sub-sector declining by about a third (34%). However, there was a significant increase in employment in passenger land transport, which includes taxi operations and urban passenger transport, during this period. There was a slight increase of about 5% in employment in warehousing and storage, from 1,300 in 2008 to 1,400 in 2010. Table 2.7

Employment trends – Corby Employment (including employees and working proprietors)

2008

2009

2010

2010 2008-10 Location absolute 2008-10 % Quotient

Logistics Rail (freight and interurban passenger)

n/a

Freight transport by road

2,100

1,500

1,400

-700

-34%

6.02

Warehousing and storage

1,300

1,400

100

8.02

Cargo handling and incidental transport services

n/a

Urban/suburban passenger land transport

100

68%

0.95

Taxi operation

100

92%

2.97

100

n/a

0.91

Other passenger land transport

Removal services

n/a

Air, water, or pipeline transport

n/a

Other transportation support activities

100

Postal activities under universal service obligation

100

300

n/a

3,500

3,600

-200

Other postal and courier activities Grand Total

0* 3,800

2% n/a -5%

0.56 3.14 2.73

Note: Statistics are rounded to the nearest 100. Therefore, the statistics in each column may not add up to the rounded grand total. Rounded employment figures below 50 are reported as 0* and calculations based on these statistics are marked “n/a” as they would be disclosive. Source: Office for National Statistics (Business Register Employment Survey); PACEC

2.4.7

As set out in 2.4.3 above, we believe that there is also substantial employment in Corby at logistics employment sites operated by companies whose primary industry of activity is not logistics or transport; these include companies such as Avon, Comet, Matalan, and Sainsbury’s. We estimate that this could amount to a further 2,300 employees working in logistics activities in Corby. This estimate is based on partial employment data – it is not possible to know how the Office for National Statistics made its internal classification of each company.

2.4.8

The logistics and transport sector in Daventry is currently concentrated in freight road transport, warehousing and storage and postal and courier services.

The Logistics and Transport Sector

Table 2.8

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Analysis of the Sector and Employment Trends

shows that in 2008, freight transport employed more than three-fifths (62%) of the workforce in the sector. Warehousing and storage accounted for a fifth (20%) of employment, and postal activities, one in eight (13%).

However, the sector

experienced significant changes in employment with the onset of recession. Total employment fell by more than a tenth (12%) - from 6,000 to 5,200 – between 2008 and 2010. The decline was largely prompted by the loss of more than 2,000 jobs in freight road transport. Employment in the sub-sector fell by two-thirds (65%), from 3,700 in 2008 to 1,300 in 2009.

And although there was a slight recovery the

following year, with an increase of around 300 jobs, this still left the sub-sector with a net loss of over 2,000, or more than half (56%) of its overall workforce during the three-year period. Warehousing and storage also experienced some job losses, with employment declining by more than a quarter (29% or 300 jobs). Over the same period, though, there was a sharp increase in jobs in postal and courier services, where employment rose from less than 50 in 2008 to 1,600 the following year. Indeed, by 2010 postal and courier services accounted for almost a third (31%) of employment in logistics and transport in Daventry. Table 2.8

Employment trends – Daventry Employment (including employees and working proprietors)

2008

2009

2010

2010 2008-10 Location absolute 2008-10 % Quotient

Logistics Rail (freight and interurban passenger)

n/a

Freight transport by road

3,700

1,300

1,600

-2,100

-56%

5.40

Warehousing and storage

1,200

1,100

800

-300

-29%

3.92

100

-9%

0.27

Cargo handling and incidental transport services Urban/suburban passenger land transport Taxi operation

0* 100

n/a 0

n/a 79%

n/a 2.16

Other passenger land transport

n/a

Removal services

n/a

Air, water, or pipeline transport

n/a

Other transportation support activities

n/a

Postal activities under universal service obligation Other postal and courier activities

800 0*

Grand Total

6,000

100

n/a

800

1,600

n/a

5,200

-700

3% n/a -12%

1.27 3.82 11.49 3.17

Note: Statistics are rounded to the nearest 100. Therefore, the statistics in each column may not add up to the rounded grand total. Rounded employment figures below 50 are reported as 0* and calculations based on these statistics are marked “n/a” as they would be disclosive. Source: Office for National Statistics (Business Register Employment Survey); PACEC

2.4.9

Employment in logistics and transport is more evenly distributed in East Northamptonshire, albeit with freight road transport providing more jobs than any other sub-sector.

Overall employment in logistics and transport in East

Northamptonshire rose by nearly a quarter (23%) between 2008 and 2010; from

The Logistics and Transport Sector

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Analysis of the Sector and Employment Trends

1,900 to 2,400. There was variation though in the employment performance of the sub-sectors. Most notably, employment in freight road transport fell by more than a quarter (29%); and there were falls in postal activities under licence (43%) and other transport support activities (14%). But employment rose elsewhere, by a quarter (25%) in warehousing and storage, and by more than double in postal and courier activities. Postal and courier services have increased in importance, and accounted for more than a quarter (28%) of employment in the sector in 2009, and a fifth (21%) in 2010. See Table 2.9. Table 2.9

Employment trends â&#x20AC;&#x201C; East Northamptonshire Employment (including employees and working proprietors)

2008

2009

2010

2010 2008-10 Location absolute 2008-10 % Quotient

Logistics Rail (freight and interurban passenger) Freight transport by road Warehousing and storage

n/a

1,100

700

800

-300

-29%

3.52

300

100

25%

2.08

n/a

Cargo handling and incidental transport services

Urban/suburban passenger land transport

400

n/a

2.78

Taxi operation

100

n/a

1.33

Other passenger land transport

100

n/a

0.77

Removal services

n/a

Air, water, or pipeline transport

n/a

Other transportation support activities

200

-14%

2.76

Postal activities under universal service obligation

100

-43%

0.37

Other postal and courier activities

100

500

400

286%

4.51

1,900

1,800

2,400

500

23%

1.85

Grand Total

2.4.10

The logistics and transport sector in Kettering is relatively small, in terms of the number of people employed in companies with logistics and transport as their core activity (see 2.4.11 below for the logistics activity of companies in other sectors). Although employment in the sector as a whole increased by two-fifths (40% or 500 jobs) over the three-year period 2008-10, this was from a relatively low base of 1,400 jobs in 2008. Employment in the sector is also more evenly spread, with no one particular sub-sector dominant, as is the case in other districts. Nevertheless, there are some notable trends within the sector in Kettering. Employment in warehousing and storage almost doubled, from 300 in 2008 to 700 in 2010. This is significant, as the sub-sector now employs three times as many people, compared with employment in that activity nationally.

The Logistics and Transport Sector

There was a smaller, but still significant, increase in

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Analysis of the Sector and Employment Trends

employment in freight road transport (200 jobs or 42%). There was a slight decline in employment in postal activities under licence. See Table 2.10. Table 2.10

Employment trends – Kettering Employment (including employees and working proprietors)

2008

2009

2010

2010 2008-10 Location absolute 2008-10 % Quotient

Logistics Rail (freight and interurban passenger)

n/a

Freight transport by road

400

500

600

200

42%

1.81

Warehousing and storage

300

700

300

92%

3.01

n/a

Cargo handling and incidental transport services Urban/suburban passenger land transport

0* 200

100 200

0* 200

10%

n/a 1.04

Taxi operation

n/a

Other passenger land transport

n/a

Removal services

n/a

Air, water, or pipeline transport

n/a

Other transportation support activities

100

82%

1.20

Postal activities under universal service obligation

200

-9%

0.84

Other postal and courier activities

100

0.66

1,400

1,900

500

40%

1.11

Grand Total

Note: Statistics are rounded to the nearest 100. Therefore, the statistics in each column may not add up to the rounded grand total. Rounded employment figures below 50 are reported as 0* and calculations based on these statistics are marked “n/a” as they would be disclosive. Source: Office for National Statistics (Business Register Employment Survey); PACEC

2.4.11

In addition to the 1,900 employees set out above, we estimate that a further 1,2001,500 employees work at employment sites providing logistics support to companies whose primary industry of activity is not logistics or transport, such as Morrisons, Weetabix, Greggs, and Bosch Siemens. These employees may not be recorded in the table above as logistics and transport is not the primary activity of the parent company. This estimate is based on partial employment data – it is not possible to know how the Office for National Statistics made its internal classification of each company.

2.4.12

The logistics and transport sector is an important provider of employment in the county’s main town of Northampton. Employment in the sector as a whole, increased by 14% (or 1,100 jobs) between 2008 and 2010; from 7,900 to 9,100. Most activity areas in the sector are represented in Northampton, although four dominate, in employment terms. Freight road transport is the most dominant, and accounted for two-fifths (39%) of employment in the sector in 2008. This fell to 29% the following year, but rose again after that, to account for a third of employment (34%) in 2010. Warehousing and storage also provided more than a fifth (22%) of employment in the sector in 2008, but has seen its share drop to 14% in 2009, and to 14% in 2010. Employment in warehousing and storage has declined by a fifth (21%) overall. The

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Analysis of the Sector and Employment Trends

Employment in postal activities under licence increased by a little over a third (35%) between, although its share, as a proportion of the total for the sector, remained steady. By far the largest increase in employment was in postal and courier services, where the number of jobs more than doubled, from only one tenth (10%) in 2008 to a fifth (21%) in 2010. Employment increased elsewhere, although not to the same extent as for postal and courier services. For example, there was an increase of almost three-fifths (58%) in taxi operations. See Table 2.11. Table 2.11

Employment trends – Northampton Employment (including employees and working proprietors)

2008

2009

2010

2010 2008-10 Location absolute 2008-10 % Quotient

Logistics Rail (freight and interurban passenger)

100

n/a

0.51

Freight transport by road

3,100

2,200

3,100

2.95

Warehousing and storage

1,700

1,300

-400

-21%

1.73

Cargo handling and incidental transport services

n/a

Urban/suburban passenger land transport

500

0.82

Taxi operation

100

58%

0.68

100

n/a

0.17

n/a

Other passenger land transport

Removal services

Air, water, or pipeline transport

Other transportation support activities Postal activities under universal service obligation Other postal and courier activities Grand Total

100

700

500

-200

-25%

2.10

1,000

900

1,300

300

35%

1.69

800

1,800

1,900

1,100

137%

3.78

7,900

7,500

9,100

1,100

14%

1.55

Note: Statistics are rounded to the nearest 100. Therefore, the statistics in each column may not add up to the rounded grand total. Rounded employment figures below 50 are reported as 0* and calculations based on these statistics are marked “n/a” as they would be disclosive. Source: Office for National Statistics (Business Register Employment Survey); PACEC

2.4.13

As set out in 2.4.3 above, we believe that there is also substantial employment in Northampton at logistics employment sites operated by companies whose primary industry of activity is not logistics or transport. These activities are distributed across the major industrial parks such as Brackmills, Swan Valley, Grange Park and Lodge Farm, and include logistics operations for Carlsberg Tetley, Travis Perkins, Asda, Sainsbury’s, Morrisons, and John Lewis, among others. We estimate that this could amount to a further 7,000 employees working in logistics activities in Northampton. This estimate is based on partial employment data – it is not possible to know how the Office for National Statistics made its internal classification of each company.

2.4.14

The logistics and transport sector in South Northamptonshire is relatively small, with fewer than 3,000 employees and working proprietors. Perhaps unsurprisingly, too, fewer activities are located in the district. Of those represented, warehousing and storage provide the most jobs, followed by freight road transport, and other land

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Analysis of the Sector and Employment Trends

transport. Overall employment in logistics and transport increased by more than a tenth (14%) over the three-year period, 2008-10, much of that coming from other land transport and freight road transport. Employment fell slightly in warehousing and storage (4%), but considerably more in postal activities under licence (19%). See Table 2.12. 2.4.15

The logistics and transport sector is fairly well represented in Wellingborough, with almost 3,000 people employed. Four sub-sectors provide the bulk of employment: freight road transport, warehousing and storage, postal activities under licence, and postal and courier services. Employment across the sector as a whole increased by about a tenth (9%) between 2008 and 2010, although this masked considerable variation in the [employment] performance in different areas of activity. Employment in freight road transport fell by a third (31%) over the three-year period, much of that in the severe economic downturn in 2009.

Warehousing and storage has

experienced a steady decline, culminating in a net loss of 300 jobs, or more than a quarter (27%). Postal activities under licence also lost just over a fifth of jobs (22%). On the other hand, there was a spectacular rise in the number of jobs created in the postal and courier services. Employment in the sub-sector increased four-fold, from only 200 in 2008 to more than 1,000 in 2010. The increasing importance of postal and courier services, in terms of employment, can be seen from the fact that in 2008, warehousing and storage (42%) and freight road transport (38%) provided more four in five jobs in the sector in Wellingborough, and postal and courier services, less than a tenth (8%). In 2009, postal and courier services accounted for around a third (34%) of overall employment in the sector, and in 2010, almost two-fifths (38%) of jobs. See Table 2.13.

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Table 2.12

Employment trends – South Northamptonshire Employment (including employees and working proprietors)

2008

2009

2010

2010 2008-10 Location absolute 2008-10 % Quotient

Logistics Rail (freight and interurban passenger) Freight transport by road Warehousing and storage

n/a

700

800

100

19%

3.18

1,000

600

900

-4%

5.22

Cargo handling and incidental transport services

n/a

Urban/suburban passenger land transport

n/a

Taxi operation

Other passenger land transport

100

n/a

1.64

100

200

100

136%

2.77

Removal services

n/a

Air, water, or pipeline transport

n/a

Other transportation support activities

n/a

Postal activities under universal service obligation Other postal and courier activities Grand Total

100 0* 1,900

100 0* 1,800

100 0* 2,200

-19%

n/a

300

14%

0.46 n/a 1.59

Note: Statistics are rounded to the nearest 100. Therefore, the statistics in each column may not add up to the rounded grand total. Rounded employment figures below 50 are reported as 0* and calculations based on these statistics are marked “n/a” as they would be disclosive. Source: Office for National Statistics (Business Register Employment Survey); PACEC

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Analysis of the Sector and Employment Trends

Table 2.13

Employment trends – Wellingborough Employment (including employees and working proprietors)

2008

2009

2010

2010 2008-10 Location absolute 2008-10 % Quotient

Logistics Rail (freight and interurban passenger) Freight transport by road Warehousing and storage

n/a

900

500

600

-300

-31%

2.20

1,000

900

700

-300

-27%

3.85

Cargo handling and incidental transport services

Urban/suburban passenger land transport

Taxi operation

Other passenger land transport

Removal services

Air, water, or pipeline transport

100

n/a

0* 100

100

1.34

Other transportation support activities

100

Postal activities under universal service obligation

200

100

-22%

0.72

Other postal and courier activities

200

1,000

800

423%

7.70

2,400

2,900

2,600

200

1.76

Grand Total

Note: Statistics are rounded to the nearest 100. Therefore, the statistics in each column may not add up to the rounded grand total. Rounded employment figures below 50 are reported as 0* and calculations based on these statistics are marked “n/a” as they would be disclosive. Source: Office for National Statistics (Business Register Employment Survey); PACEC

2.5

The Concentration of Employment. Location Quotients

2.5.1

The significance of a particular sector to Northampton’s economy lies in the relative shares of employment of the individual activity areas, compared to the UK average. This is the “location quotient” (LQ), and is calculated by dividing the local share of employment in a particular industry by the national share of employment in that industry. Table 2.14 shows the location quotients for the activity areas in the logistics and transport sector in Northamptonshire.

It can be seen that the logistics and

transport sector as a whole provides almost twice as many jobs in Northamptonshire (1.84) than would be expected according to the national distribution of jobs. Indeed, activities in logistics and transport make much more notable contributions to employment not only in the county as a whole, but even more so in individual districts, as will be seen later. For example, Northamptonshire has almost four-anda-half (4.37) times as many postal and courier services jobs. These would most likely include the visible mail and postal activities and other courier services. There are more than three times as many in freight road transport (3.36), and warehousing and storage (3.27) jobs compared to the national figures. The table also shows that logistics and transport sector makes very significant contribution to the economies of many districts, in terms of the number of people employed in different areas of activity in those locations. It is notable that the sector, as a whole, employs more than three

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Analysis of the Sector and Employment Trends

times as many people in Daventry (3.17), and more than two-and-a-half times as many in Corby (2.73) than nationally.

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Analysis of the Sector and Employment Trends

Table 2.14

Location quotients by district, 2010 Employment (including employees and working proprietors) Corby

Daventry

East Northants

Kettering

n/a

NorthampSouth ton Northants

Wellingborough

Northants total

Logistics Rail (freight and interurban passenger)

n/a

0.51

n/a

0.32

Freight transport by road

6.02

5.40

3.52

1.81

2.95

3.18

2.20

3.36

Warehousing and storage

8.02

3.92

2.08

3.01

1.73

5.22

3.85

3.27

Cargo handling and incidental transport services

n/a

Urban/suburban passenger land transport

0.95

Taxi operation

2.97

Other passenger land transport

0.91

0.27 n/a 2.16 n/a

n/a 2.78

n/a 1.04

n/a 0.82

n/a

0.12

n/a

0.78

1.33

n/a

0.68

1.64

0.77

n/a

0.17

2.77

1.34

1.22

n/a

0.54

Removal services

n/a

0.66

Air, water, or pipeline transport

n/a

0.06

Other transportation support activities

n/a

1.48

1.27

2.76

1.20

2.10

Postal activities under universal service obligation

0.56

3.82

0.37

0.84

1.69

Other postal and courier activities

3.14

11.49

4.51

0.66

3.78

Grand Total

2.73

3.17

1.85

1.11

1.55

0.46 n/a 1.59

0.72

1.40

7.70

4.37

1.76

1.84

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2.5.2

Analysis of the Sector and Employment Trends

The trend location quotient data presented in Table 2.15 show that overall, the logistics and transport sector provided much higher levels of employment in Northamptonshire than was the case across the UK as a whole over the three-year period, 2008-10. Three sub-sectors in particular have stood out as significant job providers.

Over the period, freight road transport and warehousing and storage

consistently provided at least three times as many jobs in Northamptonshire than nationally.

But as has been noted elsewhere in the analyses so far, postal and

courier services have become increasingly important. How important can be seen from the fact that the sub-sector now provides more than twice as many jobs as the average for the rest of the sector in Northamptonshire, and four times as many jobs as the sector nationally. Taxi operations increased slightly their employment profile, although not to the same extent as postal and courier services. The rest of the subsectors broadly maintained their shares of employment over the three-year period. Table 2.15

Location quotient trends in Northamptonshire Employment (including employees and working proprietors) 2008

2009

2010

0.23

0.32

Logistics Rail (freight and interurban passenger)

n/a

Freight transport by road

3.66

2.77

3.36

Warehousing and storage

3.73

3.34

3.27

Cargo handling and incidental transport services

0.09

0.16

0.12

Urban/suburban passenger land transport

0.55

0.46

0.78

Taxi operation

0.76

0.97

1.22

Other passenger land transport

0.28

0.43

0.54

Removal services

0.53

0.47

0.66

0.09

0.06

Air, water, or pipeline transport

n/a

Other transportation support activities

1.41

1.46

1.48

Postal activities under universal service obligation

1.12

1.09

1.40

Other postal and courier activities

1.44

4.34

4.37

Grand Total

1.63

1.64

1.84

Concentrations at District Level and Location Quotients 2.5.3

The overall share of employment in the logistics and transport sector in Corby remained steady, at well over twice the national level between 2008 and 2010. The disaggregated data presented in Table 2.16 show that freight road transport and warehousing and storage stand out particularly, with levels of employment at six times or more than the national average. Freight road transport retained its status as a significant job provider, despite the decline in its share of employment, from 7.24 in 2008 to 6.02 in 2010. The table also shows the emerging importance of postal and

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Analysis of the Sector and Employment Trends

courier services and, to a slightly lesser extent, taxi operations in Corby. The two sub-sectors increased their share of employment from below the average for the sector as a whole in 2008, to well above that average in 2010. Table 2.16

Location quotient trends â&#x20AC;&#x201C; Corby Employment (including employees and working proprietors) 2008

2009

2010

Logistics Rail (freight and interurban passenger)

n/a

Freight transport by road

7.24

6.15

6.02

Warehousing and storage

7.91

8.08

8.02

Cargo handling and incidental transport services

n/a

Urban/suburban passenger land transport

0.63

0.62

0.95

Taxi operation

1.61

2.11

2.97

Other passenger land transport

n/a

0.91

Removal services

n/a

Air, water, or pipeline transport

n/a

Other transportation support activities

0.72

0.78

Postal activities under universal service obligation

0.48

0.49

0.56

3.07

3.14

2.63

2.73

Other postal and courier activities Grand Total

n/a 2.69

n/a

2.5.4

The share of employment in logistics and transport in Daventry is three times as high as the national average. The trend data show that five areas of sectoral activity have become particularly important for employment provision in the district.

The most

notable, by far, is in postal and courier services, where the share of employment was almost negligible in 2008, but had increased more than ten-fold in a short period of time. Although the share of employment in freight transport almost halved (from a high of 9.23 in 2008), the sub-sector still provided five times as many jobs in Daventry in 2010, compared with the situation for the sector in UK. See Table 2.17. 2.5.5

East Northamptonshire has a higher share in employment in six areas of sectoral activity than is the case nationally. In 2010, postal and courier services (4.51), freight road transport (3.52), transport support activities (2.76), warehousing and storage (2.08), passenger land transport (2.78) and taxi operations (1.33), all had shares of employment higher, or even significantly so in some cases, than the distribution of employment in the sector in the UK as a whole. As has been seen in other districts, the most significant trend in employment in East Northamptonshire has been the upward trajectory in postal and courier services, where the share of employment is almost five times as high as is the case nationally.

Table 2.18 summarises the

location quotient trends in East Northamptonshire.

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Analysis of the Sector and Employment Trends

Table 2.17

Location quotient trends – Daventry Employment (including employees and working proprietors) 2008

2009

2010

Logistics Rail (freight and interurban passenger)

n/a

Freight transport by road

9.23

4.25

5.40

Warehousing and storage

5.34

5.28

3.92

Cargo handling and incidental transport services

0.25

0.35

0.27

Urban/suburban passenger land transport operation

n/a 1.18

n/a 1.59

n/a 2.16

Other passenger land transport

n/a

Removal services

n/a

Air, water, or pipeline transport

n/a

Other transportation support activities

n/a

Postal activities under universal service obligation Other postal and courier activities Grand Total

3.00 n/a 3.13

0.94

1.27

3.36

3.82

11.25

11.49

3.02

3.17

Note: Statistics are rounded to the nearest 100. Therefore, the statistics in each column may not add up to the rounded grand total. Rounded employment figures below 50 are reported as 0* and calculations based on these statistics are marked “n/a” as they would be disclosive. Source: Office for National Statistics (Business Register Employment Survey); PACEC

Table 2.18

Location quotient trends – East Northamptonshire Employment (including employees and working proprietors) 2008

2009

2010

Logistics Rail (freight and interurban passenger)

n/a

Freight transport by road

4.00

2.92

3.52

Warehousing and storage

1.75

1.72

2.08

Cargo handling and incidental transport services

n/a

Urban/suburban passenger land transport

n/a

2.78

Taxi operation

n/a

1.33

Other passenger land transport

n/a

0.77

Removal services

n/a

Air, water, or pipeline transport

n/a

Other transportation support activities

2.63

2.67

2.76

Postal activities under universal service obligation

0.57

0.37

Other postal and courier activities

1.67

4.33

4.51

Grand Total

1.42

1.34

1.85

Note: Statistics are rounded to the nearest 100. Therefore, the statistics in each column may not add up to the rounded grand total. Rounded employment figures below 50 are reported as 0* and calculations based on these statistics are marked “n/a” as they would be disclosive. Source: Office for National Statistics (Business Register Employment Survey); PACEC

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2.5.6

Analysis of the Sector and Employment Trends

The share of employment in the logistics and transport sector in Kettering in 2010 was around the average for the distribution of jobs in the sector across the UK. This was a significant improvement from two years earlier, when the share in Kettering was about three-quarters of the UK average. However, Kettering has a significant advantage in warehousing and storage, with the share of employment here three times as high as the national average. The only other sectoral activity areas with an advantage in employment were freight road transport (1.81) and, to a lesser extent, transport support activities (1.21). See Table 2.19. Table 2.19

Location quotient trends – Kettering Employment (including employees and working proprietors) 2008

2009

2010

Logistics Rail (freight and interurban passenger)

n/a

Freight transport by road

1.03

1.54

1.81

Warehousing and storage

1.65

3.01

Cargo handling and incidental transport services Urban/suburban passenger land transport

n/a 1.08

0.36 0.93

n/a 1.04

Taxi operation

n/a

Other passenger land transport

n/a

Removal services

n/a

Air, water, or pipeline transport

n/a

Other transportation support activities

0.54

1.39

1.20

Postal activities under universal service obligation

0.81

0.80

0.84

Other postal and courier activities

0.90

0.68

0.66

Grand Total

0.76

1.08

1.11

Note: Statistics are rounded to the nearest 100. Therefore, the statistics in each column may not add up to the rounded grand total. Rounded employment figures below 50 are reported as 0* and calculations based on these statistics are marked “n/a” as they would be disclosive. Source: Office for National Statistics (Business Register Employment Survey); PACEC

2.5.7

The share of employment in logistics and transport in Northampton rose somewhat between 2008 and 2010, such that employment here was around one-and-a-half times higher than the national average.

However, some sectoral activity areas

recorded notably higher shares. In particular, the share of employment in postal and courier services increased sharply, from just over two times to almost four times as high as the UK average. Freight road transport showed some fluctuation, but in 2010 had employment almost three times higher than nationally. The share of employment in other transport support activities showed similar fluctuation, but was also two times as high. There was a decline, though, in the share of employment in warehousing and storage, although it still was almost twice as high as the national average. See Table 2.20. 2.5.8

The share of employment in logistics and transport in South Northamptonshire increased slightly overall between 2008 and 2010. As can be seen in Table 2.21 South Northamptonshire has particular advantage in four areas of sectoral activity.

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Analysis of the Sector and Employment Trends

The most significant is warehousing and storage, with employment levels more than five times as high as nationally. But freight road transport (3.18), passenger land transport (2.77) and taxi operations (1.64) all increased their share of employment over the three-year period 2008-2010. Table 2.20

Location quotient trends â&#x20AC;&#x201C; Northampton Employment (including employees and working proprietors) 2008

2009

2010

0.28

0.51

Logistics Rail (freight and interurban passenger)

n/a

Freight transport by road

2.41

2.09

2.95

Warehousing and storage

2.35

1.76

1.73

Cargo handling and incidental transport services

n/a

Urban/suburban passenger land transport

0.95

0.73

0.82

Taxi operation

0.47

0.57

0.68

Other passenger land transport

n/a

Removal services

n/a

Air, water, or pipeline transport

n/a

0.20

0.17 n/a n/a

Other transportation support activities

2.33

1.90

2.10

Postal activities under universal service obligation

1.12

1.07

1.69

Other postal and courier activities

2.33

3.70

3.78

Grand Total

1.31

1.28

1.55

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Table 2.21

Location quotient by time – South Northamptonshire Employment (including employees and working proprietors) 2008

2009

2010

Logistics 49.1-2: Rail (freight and interurban passenger)

n/a

49.41: Freight transport by road

2.19

2.97

3.18

52.1: Warehousing and storage

5.77

3.38

5.22

52.21-4: Cargo handling and incidental transport services

n/a

49.31: Urban/suburban passenger land transport

n/a

49.32: Taxi operation

n/a

49.39: Other passenger land transport

1.09

1.42

1.64

1.96

2.77

49.42: Removal services

n/a

50-51, 49.5: Air, water, or pipeline transport

n/a

52.29: Other transportation support activities

n/a

53.1: Postal activities under universal service obligation 53.2: Other postal and courier activities

0.51 n/a

Grand Total

1.33

0.44 n/a 1.23

0.46 n/a 1.59

Note: Statistics are rounded to the nearest 100. Therefore, the statistics in each column may not add up to the rounded grand total. Rounded employment figures below 50 are reported as 0* and calculations based on these statistics are marked “n/a” as they would be disclosive. Source: Office for National Statistics (Business Register Employment Survey); PACEC

2.5.9

Lastly, in this section, Table 2.22 shows the location quotient trends in Wellingborough. The share of employment in logistics and transport in the district is more than one-and-a-half times higher than the distribution of employment nationally. Four sectoral activity areas stand out as having significantly higher levels of employment. The share of employment in postal and courier services between 2008 and 2009, although it fell slightly the following year to stand almost eight times higher than the UK average. Freight road transport showed some fluctuation, but still had a share twice as high.

Taxi operations gained in importance, with its share of

employment following an upward trajectory. By contrast, the share of employment in warehousing and storage has followed a downward trajectory since 2008, but is still almost four times as high as the UK average.

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Analysis of the Sector and Employment Trends

Table 2.22

Location quotient trends â&#x20AC;&#x201C; Wellingborough Employment (including employees and working proprietors) 2008

2009

2010

Rail (freight and interurban passenger)

n/a

Freight transport by road

2.59

1.86

2.20

Warehousing and storage

5.56

4.79

3.85

Cargo handling and incidental transport services

n/a

0.43

n/a

Urban/suburban passenger land transport

n/a

Taxi operation

n/a

1.10

1.34

Other passenger land transport

n/a

Removal services

n/a

Air, water, or pipeline transport

n/a

Other transportation support activities

0.73

1.11

n/a

Postal activities under universal service obligation

0.81

0.71

0.72

Other postal and courier activities

2.11

8.18

7.70

Grand Total

1.53

1.86

1.76

Logistics

2.6

Occupations, Skills and Skills Needs

2.6.1

Information on the skills levels and occupational distribution of different industries is collected in the Annual Population Survey. As this is a sample survey with a limited number of responses, fine disaggregations by industry are statistically unreliable. It is however possible to analyse the transport sector using this source. It is grouped in the official data with the smaller communications sector (which includes ICT, publishing, and media sectors) and hence mainly consists of transport jobs. Hence it is mainly transport and logistics. The main occupations are skilled trades, process, plant and machine operatives (with drivers) 30%, and elementary occupations with general manual skills 35%. The admin, professional, sales occupations account for about a third.

In Northamptonshire, this combined sector has a much higher

proportion of elementary occupations (35% in Northamptonshire, vs 18% nationally across all sectors), and plant and machine operatives which includes the drivers of vehicles (eg HGV class drivers) and relatively high skilled jobs (25% in Northamptonshire vs 10% nationally across all sectors). The combined sector has correspondingly fewer skilled trades occupations which are more relevant to the construction sector (4% in Northamptonshire vs 12% nationally across all sectors in Northamptonshire)

and

professional,

associate

professional,

and

technical

occupations (16% in transport and communications, 26% across all sectors).

logistics and transport these would include the transport and route planning and senior stock control jobs at the high end of the skills hierarchy. In the East Midlands and in Great Britain as a whole, the combined transport and communications sector

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Analysis of the Sector and Employment Trends

has more employment in professional and technical occupations, and less in elementary occupations; this probably reflects a bias towards the ICT component of the combined sector rather than anything different in the transport sector specifically. Table 2.23

Employment by occupation for the transport & communications industry, 2011 Occupation breakdown of employment Northants

East Midlands

Great Britain

Transport Transport Transport & All & All & All Comms sectors Comms sectors Comms sectors All people

100%

10%

2 Professional Occupations

12%

15%

13%

16%

20%

19%

3 Associate Professional & Technical Occupations

11%

14%

4 Administrative and Secretarial Occupations

10%

11%

5 Skilled Trades Occupations

12%

11%

1 Managers, Directors and Senior Officials

6 Caring, Leisure and Other Service Occupations

n/a

11%

10%

7 Sales and Customer Service Occupations

n/a

8 Process, Plant and Machine Operatives (with Drivers)

25%

10%

32%

25%

9 Elementary occupations

35%

18%

21%

13%

12%

11%

Source: Office for National Statistics, Annual Population Survey; PACEC

2.6.2

The occupations in the companies where logistics is not their main activity reflects those for the primary logistics sector â&#x20AC;&#x201C; by main activity in Northamptonshire. However, there are probably fewer Directors, Senior Officials, professional and associate professional / technical occupations compared to the primary logistics companies. These tasks are carried out in other offices / locations.

2.6.3

The additional skills required were as follows: intermediate manual and elementary skills, specialist apprenticeships (eg for high tech vehicle maintenance), HGV drivers and general warehousing skills. These were needs for businesses with logistics as their primary function and for other businesses where logistics activity was important.

2.7

The Wages and Pay Levels

2.7.1

Information on wages is derived from the Office for National Statistics Annual Survey of Hours and Earnings. As it is based upon a non-exhaustive sample of employment records, it is possible to disaggregate by industry for the UK and East Midlands, but not for Northamptonshire, as the number of data points is not sufficient to report the results with any statistical confidence. However, it was considered by businesses and partners consulted as part of the research that wage rates generally reflected

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Analysis of the Sector and Employment Trends

those of the East Midlands rather than the levels of the South East which were thought to be higher. 2.7.2

By way of providing a context, the median weekly gross pay in the sector overall in the UK was £404 in 2010.

It had increased by 1.7% over the previous year.

Transportation and the storage industry pay was higher, at £470 median gross per week, and had risen faster: 3.1% over the previous year. In the East Midlands, median weekly gross pay across all sectors was £380, and in the transportation and storage

sector

was

£440.

Pay in

Northamptonshire

was

statistically

indistinguishable from the rest of the East Midlands, with a reported gross weekly median pay of £382 in the survey of businesses. The inference can be made that pay levels in transportation and storage in Northamptonshire are comparable to those for the East Midlands, which in turn would put them below the UK median pay across all sectors.

Breakdown of median gross pay and annual percentage change by

industry and location are shown in Table 2.24 below, along with the mean gross pay (which is typically higher than median pay as there is more variability towards the higher end of the wage scale than the lower end). Table 2.24

Weekly gross pay (before tax / deductions) by industry and location, 2010 Weekly gross pay /£ for all employee jobs

Median

Annual percentage change

Mean

Annual percentage change

United Kingdom total

404

1.7

488

1.4

Transportation and storage sector total

470

3.1

531

1.4

Land transport and transport via pipelines

480

5.4

509

3.6

Water transport

481

1.5

634

-3.7

Air transport

594

4.1

707

5.5

Warehousing and support activities for transportation

508

2.5

584

1.1

Postal and courier activities

417

2.3

457

-1.0

East Midlands

380

1.0

448

0.6

Transportation and storage sector total

440

6.0

490

2.2

Land transport and transport via pipelines

452

8.5

469

5.4

Water transport

n/a

Air transport

428

n/a

449

n/a

Warehousing and support activities for transportation

459

0.7

526

0.5

Postal and courier activities

410

6.2

488

3.2

Northamptonshire

382

-0.8

447

1.0

Note: Statistics marked “n/a” have been suppressed as they are statistically unreliable or disclosive. Source: Office for National Statistics, Annual Survey of Hours and Earnings (2010), PACEC

2.7.3

A salary review survey of human resources departments and organisations conducted for the Northamptonshire HR group (and managed by NEP) in October

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Analysis of the Sector and Employment Trends

2010 provides some local context for the median and mean figures drawn from the Annual Survey of Hours and Earnings. The survey provided basic rates of pay for a wide range of occupations working in logistics organisations in Northamptonshire. As the survey covered a small number of organisations and the number of staff in each occupation is not given, it is impossible to compute meaningful average salaries. However, the range of salaries by occupation provides a useful comparison with the mean and median wages shown above in Table 2.24. 2.7.4

According to this survey, warehouse operatives not using fork-lift trucks typically earned around £280 per week, with the full range of weekly wages for the survey varying from just £230 to £320 (for comparison, the national minimum wage for the first three quarters of 2010 was £5.80, i.e. £203 for a 35-hour week and £232 for a 40-hour week). Those using fork-lift trucks were paid slightly more, averaging around £320 per week. Administrative staff also had weekly earnings below the averages given above, typically ranging from £290 to £400 per week.

A wide range of

managerial-level occupations, on the other hand, earned salaries in excess of the average for transportation and storage industry workers given above (£490/week, or £25,500 per year).

Managerial salaries typically ranged between £35k-£45k per

annum (or £673-865 per week), with some specialist occupations such as IT/systems managers, supply chain managers, and top-grade financial and account managers earning £40k-£70k per annum (£769-£1346/wk). The skewed distribution of wages, with a majority of workers earning somewhat below the average and a minority earning substantially above the average, is typical of wage distributions, and is the reason that the median wages given above in Table 2.24 are lower than the mean wages. 2.7.5

In the businesses where the primary activity is not logistics, the median income in the East Midlands is probably lower because the professional / technical occupations (which tend to be more highly paid) are not so fully represented in these companies on site compared to the primary logistics companies.

2.8

The Employment Densities in Logistics and Transport

2.8.1

Employment in the logistics and the warehousing / storage sectors requires a great deal of land and as such is suited to out-of-town sites where the densities are usually lower. In the county most of the distribution and storage sites are located out of town and close to the main roads. The second edition of the Employment Densities guide, published by the Office of Project and Programme Advice and Training, and the Homes and Communities Agency, gives an average gross external area per full-time equivalent (FTE) employee of 70 m

for general warehousing and distribution

(ranging from 25-115 m , increasing with the capital intensity of the business), and 80 2

m for large scale and high bay warehousing (with wide variation depending upon scale and storage duration). The employment densities for businesses who carry out 2

logistics but it is not their primary function and likely to be 70m to 80m per employee on site.

By comparison, industrial uses require approximately half as much

floorspace per FTE employee, and office-based employment requires on average 10

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m of net internal area per employee (and can achieve higher densities on the same footprint by adding additional stories). 2.8.2

The employment densities in other transport sectors are consistently higher than in warehousing and storage and probably reflect the national average of some 1 to 102

15m for office based and light industrial occupations. 2.8.3

The size of the premises varies widely by sub-sector, as indicated above in the employment densities.

Using these, the average number of employees, and the

discussions with businesses and partners (see below), it is possible to assess the size ranges of premises. The size ranges for general warehousing, storage and 2

distribution can be c.450m for low density employment and specialist distribution and 2

up to 50,000m for the largest (or above this). The middle ranges could be 3,000m

to 5,000m . These middle range figures apply to the businesses where the logistics function is not the primary activity.

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3.1.1

This chapter reports on the survey of businesses in the logistics and transport sector(s). It characterises the businesses by sector and size and sets out their views on issues they face in Northamptonshire. These include:

3.1.2

The business constraints facing firms (eg premises, transport and labour market issues)

The perceived prospects for the logistics sector

The strengths and weaknesses of the Northamptonshire economy

Some key policy issues

In total some 200 telephone interviews were held with businesses where logistics and transport are their primary activity representing a cross section of businesses, subsectors, sizes (by employment bands) and location in the county. The data was reasonably representative of the population of businesses in the county and was expost weighted to reflect the population. Interviews were also held with some twenty businesses who had an important logistics function, although it was not their main activity. All the responses from the telephone interviews have been combined for the main analysis set out below. The businesses were able to respond to the questions and issues in the study brief. Most of the respondents were able to answer the questions when contacted. Some follow-up appointments were made, both for the initial interviews and detailed discussions on some of the issues raised.

3.1.3

The majority of the results are shown in the tables below with qualitative comments where appropriate.

3.2

The Characteristics of Businesses

3.2.1

The businesses included in the survey were drawn from the company directory, and the survey results were weighted to reflect the population in the directory in terms of their industrial sector and employment size. reasonably representative sample.

This process ensured it was a

As set out in the Experian establishment count

table in chapter 3 above, these companies are concentrated in the freight and passenger land transport, warehousing and transportation support activity, and postal and courier sectors. 3.2.2

With regard to status, nine out of ten of the businesses surveyed (84%) were independent companies. The remaining were either a branch of a larger organisation (9%), or subsidiaries of UK (4%) and multinational (1%) companies. Around nine out of ten companies (93%) were indigenous to Northamptonshire, and started trading there. They were at different stages of maturity, in terms of when they started trading in Northamptonshire. The longest established (7%) started trading there before 1962; one in five (20%) between 1962 and 1987; more than a quarter (31%) between 1988 and the turn of the millennium in 2001; just under a quarter (21%) between 2002 and 2006; one in eight (13%) between 2007 and 2009; and one in ten (9%) from 2010. It is worth noting, on this evidence, that more than a fifth of the businesses had been

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established and started trading in Northamptonshire during a period of financial and economic instability in the UK. 3.2.3

In terms of their size, the median number of people employed by the businesses was five. The average (mean) number of people employed was twenty three. The largest business employed almost 2,000 people and, as might be expected, the smallest businesses were sole traders. Where they had them, the average number of parttime employees was around three, with a reported maximum of 30 part-time employees.

At the peak time in 2011, the businesses employed on average 15

people, again with median employment of five.

Hence there was little seasonal

variation in employment across the sector as a whole. However peaks occur in some sectors (eg including the postal and courier activities, taxis and distribution linked to retail sectors), primarily at the Christmas period were offset by declines in other sectors. These suggest that on the whole there has been little change in the level of employment over the past year or so. On the other hand, Northamptonshire appears to have attracted a number of larger employers during the course of the year. 3.2.4

The occupations and skills of businesses stated in the survey were primarily made up of the drivers group (ie process and plant operatives) and other skills and elementary jobs (overall over a half of all jobs including these groups).

There were fewer

managerial / professional admin jobs (ie about a quarter) and the remainder (ie almost a fifth) sales / customer service jobs which reflects national data.

3.3

Business Objectives and Prospects

3.3.1

The businesses in the survey were asked about their ambitions for growth over the medium term (3 years or so) period. One in ten indicated that their priority in the immediate to medium term was to continue to survive (9%). A small proportion of the businesses (4%) was less sanguine, and thought they would shrink in size and become smaller. On the other hand the majority of businesses were more upbeat about their prospects. Two out of five (38%) were anticipating to stay the same size, while more almost half were looking to grow moderately (48%) or even rapidly (1%). It is gratifying that almost all the businesses (97%) indicated they were planning to continue to stay in Northamptonshire.

Only a very small number (5 businesses)

indicated they would be re-locating elsewhere away from the county. 3.3.2

The inquiry was extended to explore the activities of the businesses on a range of activities which it is known, either on their own or taken together, enhance skills development and encourage innovation in product and service development within organisations. When they were asked which of the particular activities they have, or carry out, two-thirds of businesses claimed they had a health safety plan (68%), and around three-fifths (61%), a business plan.

Just over two fifths had a staff

development plan (44%), or carried out regular staff appraisals (48%). Closely allied with this, around a third carried out training and other staff development activities. Two in five had a quality assurance accreditation system (40%), and one in five, an environmental management plan. On the whole, the respondent businesses did not appear to undertake much innovation activities. It was notable that only around one

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in ten had carried out product or service development (12%), or carried out research and development (9%), or had been involved in any collaborative activity for innovation (4%). The lower level of practices is particularly the case with micro and SME businesses, primarily because of cost although they acknowledge that it would be useful to carry out the practices. Table 3.1

Which practices does your company have/carry out? Percentages of all respondents

Innovation: product / service development

R&D activities

Collaborative activity for innovation / R&D

A business plan

A training / staff development plan

Training / staff development activities

Quality assurance system / accreditation

Regular staff appraisals

Environmental management plan

Health safety plan

Respondents could select more than one option; so percentages in any column may sum to more than 100 Source: PACEC Survey of businesses, 2011 (Q16)

3.4

The Business Constraints Facing Firms

3.4.1

The extent to which businesses are able to meet their overall objectives, including their growth ambitions, is influenced by a number of different factors, not least those that limit or constrain their abilities to meet those ambitions. The respondents in the survey were asked their views about the impact of a wide range of probable and potential constraining factors on their businesses. It is important to caution here that the results from the responses reported should be interpreted with some care. This is particularly because the scale of the impact of factors may not be accurately ascertained, as the respondents were not probed to elaborate further on the rationale or basis for their initial assessment.

It is important, furthermore, to say that the

majority of the respondent establishments did not appear to face significant constraints that could potentially restrict their organisations from achieving their aims and objectives. The main areas where businesses considered there were constraints related to the economic conditions, sites and premises, transport, and costs in general. 3.4.2

With regard to the impact of the regional economy as a whole on their business, the main concern centred on uncertainty about the economy as a whole, which also affected their markets. More than two-fifths of the respondents (44%) cited economic and market uncertainty as a constraint on their firmâ&#x20AC;&#x2122;s ability to meet the ambitions and objectives of the business. One in three of those respondents thought that in terms of scale, economic uncertainty exerted only â&#x20AC;&#x153;someâ&#x20AC;? (31%), but not large (10%) or great (3%) impact. By the same token, around a third of respondents (33%) indicated that

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increasing competition was a constraint, while a similar proportion (31%), thought there was low demand for their products and services. Perhaps not surprisingly, around a quarter of the respondents (27%) indicated that lack of confidence was proving to be a constraint on their ability to meet the aims of their business. See Table 3.2. Table 3.2

Economic Constraints Percentages of all respondents Great

Large

Some

None

Lack of confidence in prospects

Economic / market uncertainty:

Low demand for Products or Services:

Increasing competition:

Access to clients:

Location of clients:

Location of retail centres:

Access to major population centres:

Other Markets / clients :

Source: PACEC Survey of businesses, 2011 (Q17)

3.4.3

The next range of constraints related to the availability of sites and premises. Here, the significant constraints were the issues of parking (33%) and safety and security (27%). It is notable that 4% of respondents considered the impact of safety and security to be great. The availability of suitable sites and premises was seen as constraining by almost a third of the respondents (27%). Indeed, around one in eight (12%) suggested that the impact of this factor was great or large. This in part reflects a shortage of adequate vacant units. Where vacancies existed the premises were sometimes seen as unsuitable, primarily because they, and the facilities, were old. Site constraint issues were also a problem where they (sites) were not close to major road and rail interchanges. One in seven (14%) described this impact as large or great. Table 3.3 summarises respondentsâ&#x20AC;&#x2122; views about the constraints and impacts of sites and premises on their businesses.

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Table 3.3

Site and Premises Constraints Percentages of all respondents Great

Large

Some

None

Planning policies:

Availability of sites or premises:

Sites too isolated / away from markets/customers:

Sites not close to major roads/rail interchanges:

Premises / warehousing / storage space too small:

Premises / warehousing / storage space too large:

100

Premises are too old / do not meet the current industry specification:

Premises for HQs:

Handling facilities at premises:

Storage facilities at premises:

Quality of sites/premises :

Safety / security:

Parking:

General transport/access :

Poor physical environment:

Other Sites / premises:

Source: PACEC Survey of businesses, 2011 (Q17)

3.4.4

The third group of constraints were concerned with transport in general.

The

problems posed by transport constraints were considered as having the most farreaching impact on the ability of the businesses in the survey to achieve their ambitions. Table 3.4 sets out the views of the respondents on the impact of the extensive range of transport-related factors.

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Table 3.4

Transport Constraints Percentages of all respondents Great

Large

Some

None

Road/rail interchanges/hubs:

Road:

Rail:

Fast rail:

Bus service:

Airports / freight services:

Lack of signage for parking sites:

Not sufficient truck parking sites:

Poor facilities at parking sites (eg overnight stays):

Parking sites too expensive:

Parking sites lack security:

Few hard shoulders on main roads (eg A14):

Poor roadside services:

Poor road surfaces:

Major roads too narrow / need widening:

Motorway service areas (MSAs):

Other Transport: Source: PACEC Survey of businesses, 2011 (Q17)

3.4.5

Unsurprisingly because businesses in the sector are highly dependent on the road infrastructure, road conditions and the availability of services were considered the most significant constraints. Most notably, a fifth or more businesses identified the constraints of poor road surfaces (which had not been repaired), the width of major roads, and the service areas along the motorway network as great. Slightly smaller in scale but nevertheless constraining on the same scale, were: the shortage of parking sites for trucks; the lack of hard shoulders, particularly on main roads, such as the A14; and the lack of signage for parking sites.

3.4.6

The next most significant group of constraints concerned costs in general.

Two

specific areas of cost stood out here as particularly debilitating for the businesses included in the survey. Again, and perhaps not surprisingly for businesses engaged in logistics and transport, the cost of fuel for vehicles and associated general duty on motoring was considered by three out of five respondents as a exerting great (25%) or large (11%) impact. Indeed, only around two-fifths of the respondent businesses in the survey (47%) did not consider the cost of fuel as a constraint on their business at all. The other cost of note was energy costs, with around one in eight businesses describing their impact as great (3%) or large (9%). See Table 3.5.

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Table 3.5

Costs Constraints Percentages of all respondents (see ยง1.4 for details) Great

Large

Some

None

Cost of goods/services:

Cost of labour:

Cost of sites/premises:

Cost of energy:

Cost of business support / advice:

Cost of suppliers:

Cost of fuel for vehicles / duty: Other costs: Source: PACEC Survey of businesses, 2011 (Q17)

3.4.7

The respondents were asked about the types of business support organisations they would normally contact for advice and, importantly, which ones they had used recently. Unsurprisingly, the respondents relied on accountants, solicitors and banks for much of their business support needs. Almost three-quarters (69%) indicated they would normally contact accountants and solicitors, and around two-fifths (42%), their bank.

It is perhaps an indication of their relatively small size that one in six

respondents (16%) claimed they would normally contact a friend or relative for business advice. Otherwise, there was minimal use overall of public sector services (eg the universities, the training sector, and other support), specialist consultants (5%), or trade and business associations and chambers (6%).

3.5

The Strengths and Weaknesses of the Northamptonshire Economy

3.5.1

The overall strengths and weaknesses in the Northamptonshire economy were explored with businesses. The main areas where the economy was strongest were in terms of the location, the overall transport network, and the image and reputation of the county. The main weaknesses were considered to be with the availability of business support with the demise of emda, Business Links and general public sector cuts. Both emda and Business Link services were primarily used by micro and small businesses. In other areas the view was that the conditions were considered to be a strength with a very small number of points on weaknesses.

3.5.2

The key location strengths identified by the overwhelming majority of partners were the proximity to the transport network for businesses (including the internal rail freight ports), the central location in England and proximity to markets, customers, ports and airports, and labour skills and the supply of employees. The factors were identified by around seven out of ten businesses.

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Table 3.6

Main business operational strengths and weaknesses of the local area: the effect of location Percentages of all respondents Strong

Neutral/OK

Weak

Location in general

Central location for access to markets, ports, airports

Proximity to transportation network

Proximity to similar sector / cluster

Proximity to labour / employees

Proximity to customers/markets

Proximity to suppliers

Respondents could select more than one option; so percentages in any column may sum to more than 100 Source: PACEC Survey of businesses, 2011 (q20)

3.5.3

The transport network in general was seen as a strength by almost two fifths of businesses, while almost half were neutral and just over one in ten identified weaknesses. The main strengths were the overall road network, along with the rail communications (reflecting the new Corby station and freight services) (each identified by almost half the businesses) followed by the speed of the rail services (and the potential of fast rail between London/Birmingham subject to accessible boarding points). Areas of weakness were seen to be the shortage of lorry parking facilities (20%) and the road interchanges and hubs (18%). See Table 3.7. Table 3.7

Main business operational strengths and weaknesses of the local area: the effect of transport network Percentages of all respondents Strong

Neutral/OK

Weak

Transport network in general

Lorry parking

Motorway service areas (MSAs)

Road/rail interchanges/hubs

Road

Rail

Fast rail

Bus service

Airports

Respondents could select more than one option; so percentages in any column may sum to more than 100 Source: PACEC Survey of businesses, 2011 (q20)

3.5.4

The other main strength of the county was its image and reputation in general (reflecting the growth culture), although there were some negative perceptions (eg the incidence of crime was mentioned featuring on regional news bulletins). Key strengths were the overall quality of life (72%) in terms of urban and rural areas (ie the environment), low unemployment and accessibility. The county had developed a sense of place and was seen to be â&#x20AC;&#x153;on the mapâ&#x20AC;? as a result of its communications / transport infrastructure. See Table 3.8.

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Table 3.8

Main business operational strengths and weaknesses of the local area: the effect of image and reputation Percentages of all respondents Strong

Neutral/OK

Weak

Image / reputation in general

Low awareness of warehousing / storage premises / facilities

A sense of place â&#x20AC;&#x201C; Northamptonshire

Northamptonshire is on the map

Overall quality of life

Other features

Respondents could select more than one option; so percentages in any column may sum to more than 100 Source: PACEC Survey of businesses, 2011 (q20)

3.5.5

The main area of concern in the county was seen as level of business support services in general. The vast majority of businesses thought these services were just ok / neutral. Only 16% identified this as a strength â&#x20AC;&#x201C; ie the lowest percentage of all the key topic areas. Support for innovation and finance were identified by just 12% as a strength. For just over one in five the support for training / skills development was seen as a strength. Table 3.9

Main business operational strengths and weaknesses of the local area: the effect of business support Percentages of all respondents Strong

Neutral/OK

Weak

Business support in general

Ease of access / signposting of support

The approaches of agencies towards businesses

Business forums

Transport / logistics summits

Support for innovation

Support for finance

support for business development / marketing / sales / exporting

Training / skills development issues

Respondents could select more than one option; so percentages in any column may sum to more than 100 Source: PACEC Survey of businesses, 2011 (q20)

3.5.6

Other features of the county that potentially affected the operation of businesses were generally seen as neutral / ok but with some strengths than weaknesses. The main points in order were: a

Transport. While the overall network was seen as a strength, there were weaknesses in terms of the A14 / A43 and the need for widening and the lack of lorry parks.

The labour market. The general availability of labour and the willingness of employees / residents to train were seen as a strength by one in three businesses. The weaknesses which affected more firms were the tightness of the labour market, resulting in a shortage of labour, where it was

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considered that unemployment was relatively low and, in particular, constraints in terms of recruiting HGV drivers and younger drivers (across all sectors).

3.5.7

The overall cost base. The main strengths were the cost of transport, labour and goods and services identified by a third of businesses. however, fuel costs were high.

The business base. The proximity of markets / clients and suppliers / services were seen as the main strength (by two in five and a third of businesses)

Premises. For around two in five the environment at premises, the location, and the quality / condition were seen as strengths. However, there were also significant issues with availability and quality.

Land / sites. Just over a quarter of businesses said the availability, quality / condition, and location of sites were a strength. However, some of the sites were not in the right locations and too far from the major roads.

It was important in this study to explore the trading links and relationships between firms within Northamptonshire and much wider elsewhere.

Consequently, the

respondents were asked about the destination of their sales. Table 3.10 shows that the large majority of the business in the logistics and transport sector is conducted locally. This is reflected in the volume and value of sales and purchases, and in the sourcing of labour for their business. On average, the businesses generated 71% of sales by value in Northamptonshire. The table shows that much smaller value of overall sales came from the nearby midlands region (7%) and the wider south east region (3%). On the other hand, more than a tenth of sales (15%) came from the rest of the UK. 3.5.8

Further analysis of the data showed that small proportions of businesses were involved in export and overseas trade. Indeed, only about 4% of sales by value were generated from overseas.

However, firms engaged in warehousing and logistics

support appeared to do trade more widely, and generated more than 40% of their sales from the rest of the UK, and about 12% from overseas â&#x20AC;&#x201C; albeit their actual clients were UK based, the volume of traffic overseas was much greater. This is likely to be made easier because of the inland rail freight ports in the county. Table 3.10

Trading links and relationships in logistics and transport Average (mean) amount (see Â§1.4 for details) Sales by value Purchase by value

Northamptonshire

Employees

Rest of East/West Midlands

London and South East

Rest of UK

Overseas

Source: PACEC Survey of businesses, 2011 (Q21)

3.5.9

The survey explored the business linkages with other organisations, by looking at the extent to which the businesses collaborated with different partners in the Northamptonshire area. Table 3.11 shows that their strongest relationships were with

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suppliers,

customers,

other

competitors,

firms,

and

trade

associations.

Unsurprisingly, around a half of businesses (55%) had some relationship with suppliers and other firms (45%). Around one third also collaborated at some level with trade associations (34%), and with competitors (23%). Fewer than one in ten of the firms, though, had some relationship with educational institutions and other training organisations. Table 3.11

Extent of collaboration with different partners in the Northamptonshire area Percentages of all respondents (see ยง1.4 for details) Any extent

Not at all

Not sure

Your suppliers

Your customers

Your competitors:

Other Firms:

Trade/Business Associations:

Training providers:

Universities:

FE colleges:

Other: Source: PACEC Survey of businesses, 2011 (Q21)

3.5.10

Overall, just a quarter of businesses (22%) were a member of or got involved in any trade groups or business associations in the county (and attended events or received information).

3.5.11

In terms of employment, the businesses considered that around 98% of their employees lived in or close to Northamptonshire with the remainder living in the West / East Midlands.

3.6

Future Prospects for the Sector

3.6.1

The preceding sections described the constraints businesses perceived as inhibiting them in achieving their objectives and ambitions, as well as their views on the strengths and weaknesses of Northamptonshire as a whole. The juxtaposition of these and current economic conditions may be expected to influence the views of the businesses in the survey about the future prospects of the sector in the immediate and medium term future. Consequently, the survey sought the views of respondents on how they anticipated that employment in their sector would change over the next few years. On the whole, the views of the respondents were rather mixed. A large majority (68%) thought there would be little or no change in employment over the next three to five years. However, one in six (16%) believed employment would decrease. But an almost identical proportion (16%) took the contrary view, and believed employment would increase over the same time period.

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3.6.2

Results of the Business Survey

The inquiry was extended to probe the respondents further about their optimism, or otherwise, about the business prospects for the sector over the next few years. For the short-term, a large majority of the respondents indicated they were optimistic about the business prospects for their sector over the next three years. One in ten (10%) were very optimistic, and three-fifths (60%), quite optimistic.

More than a

quarter (29%) claimed they were not very optimistic. A slightly higher proportion of the respondents were even more optimistic when looking to the medium-term future. Again, one in ten (11%) were still very optimistic, while almost two-thirds (65%) now indicated they were quite optimistic about business prospects for the sector in the next three to five years. The share of those claiming not to be very optimistic over the next five years was around a quarter (24%).

3.7

Key Policy Issues

3.7.1

Lastly, in the survey, the businesses were asked for their views on specific issues that should be addressed through policies for Northamptonshire. The main issues related to the county as a location for businesses, sites and premises, transport, business support and the need to promote the countyâ&#x20AC;&#x2122;s strengths.

The specific

issues are shown in the conclusions to the report.

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Consultations with Partners

4.1.1

This chapter covers the interviews that have been held with partners in Northamptonshire and those organisations with a wider spatial remit that also have responsibility for policies affecting the logistics and transport sectors including those businesses where the primary activity was not logistics, although it was an important function. The chapter describes the types of agencies and their activities. It then sets out the views of interviewees on a number of the issues that were the subject of the discussions.

4.1.2

The business constraints facing firms (for example the premises, transport and labour market issues)

The strengths and weaknesses of the Northamptonshire economy

The property market issues for the logistics / warehousing sub-sector

The perceived prospects for the logistics and transport sector

The key policy issues

In total some twenty five organisations were interviewed.

The results of the

interviews are presented in some key tables and reported on qualitatively.

The

interviews with organisations in the property sector are shown in section 4.5 below.

4.2

The Types of Organisations

4.2.1

There were a mixture of organisations, including local authorities, central government agencies, business associations representing the sector and other businesses, the higher and further education sectors and the commercial property sector, and some larger businesses (in the county). A number of these had been present at a summit organised by the County Council and NEP on the A14, and related issues, who agreed to follow-up interviews.

4.2.2

The activities they carried out included responsibility for major roads and transport systems, the provision of advice to businesses and services (eg related to premises), the development of policies for the sector together with research activities.

4.3

The Business Constraints Facing Firms

4.3.1

The perceived constraints were discussed under a series of headings (eg the markets for firms, the premises and transport issues). Overall the majority of partners said that Northamptonshire did not face constraints to any great extent that prevented businesses achieving their aims and objectives. The main constraints, in order, were considered to be related to transport, sites and premises, labour and skills, business support and the costs of operating businesses.

4.3.2

The other constraints faced by businesses, as perceived by partners, were less significant.

They covered the economy and markets, technology, finance and

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suppliers. Generally the majority of partners did not consider that there were any significant constraints in these areas. 4.3.3

The main constraints in terms of transport issues are shown in Table 4.1.

The

constraints that affected businesses and often resulted in congestion or a lack of progress on the roads to a greater extent were that major roads were too narrow and needed widening (ie mainly the A14, A43, A45 and A428), there were insufficient lorry parking sites and there were too few facilities at existing parking sites. A third or so of partners identified these constraints.

The partners considered that the larger

businesses (by employment) were affected most compared to medium sized and smaller firms, primarily because they had larger fleets and more traffic on the roads. Other factors identified as affecting businesses to a great extent (albeit by a minority of partners) were poor roads, few hard shoulders on some of the major roads (eg the A14), and poor road side and motorway service areas (MSAs). Partners were least concerned about airports (and freight services) and rail services (including fast rail services). Table 4.1

Transport Constraints Percentage of all respondents Great extent

Road/rail interchanges / hubs

To a large extent To some extent

To no extent

Rail

Fast rail

Bus service

Airports / freight service

Lack of signage for truck parking sites

Not sufficient truck / lorry parking sites

Poor facilities at parking sites

Parking sites too expensive

Parking sites lack security

Few hard shoulders on main roads (egA14)

Poor roadside services

Major roads too narrow / need widening

Poor motorway service areas (MSAs)

Road

Poor road surfaces

Source: PACEC Survey of partners 2011 (Q9)

4.3.4

On the sites and premises topic it was considered that the issues which impact to the greatest extent (albeit by a small group of partners â&#x20AC;&#x201C; 8-15%) were the lack of premises for HQ operations on business parks and in city centres, followed by premises for warehousing and storage space being too small or too large and sites

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being too isolated / away from markets and clients and insufficient out of town locations (and close to main roads) mentioned particularly by the warehousing and distribution companies.

The partners considered that the larger businesses (by

employment) were affected by premises not being large enough or being away from major junctions as they had the larger fleets of vehicles. Other factors impacting to a large extent (selected by a third to almost a half of businesses) were sites not being located close to major roads and transport interchanges, the premises being too old, a lack of parking and a general lack of site availability. It was considered that there were few suitable vacant premises. Where vacancies existed the premises were often too old and unsuitable. Features which impacted least were where premises were too large, had inadequate handling facilities, or a poor physical environment. Table 4.2

Sites / Premises Constraints Percentage of all respondents Great extent

To a large extent To some extent

To no extent

Planning policies

Availability of sites or premises

Sites too isolated / away from markets / customers

Sites not close to major roads / rail interchanges â&#x20AC;&#x201C; out of town

Premises / warehousing / storage space too small

Premises / warehousing / storage space too large

Premises are too old / do not meet the current industry specification

Handling facilities at premises

Storage facilities at premises

Quality of sites / premises

Safety / security

Parking

General transport / access

Poor physical environment

Premises for HQs

Source: PACEC Survey of partners 2011 (Q9)

4.3.5

The general lack of availability for sites and premises was partly because the partners considered that there were very few vacant premises in the county, especially for the logistics and warehousing sub-sector. This was mainly because of the high level of demand in recent years, coupled with a shortage of new premises. Where premises were vacant they were largely considered to be older and unsuitable. Appendix C for sites in West Northamptonshire shows that, in addition there was scope for intensification on a small number of sites where there was underused space. However, for the majority of sites there was no scope for expansion but some sites were not developed. Data was not available on vacant floorspace.

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4.3.6

Consultations with Partners

In terms of labour and skills issues, it was considered that the overall labour market was relatively tight and that unemployment was low.

However, generally these

factors had not pushed up costs, although they had an impact for around a quarter of partners and a large impact for some 15%. Hence just over one in ten partners considered that there were skills shortages and recruitment difficulties for businesses. In particular there were shortages of HGV drivers and younger drivers (across all sectors â&#x20AC;&#x201C; although the precise age was not specified). Issues of least concern were the availability of management skills, the ability to raise productivity, and internal skills gaps faced by employers amongst existing employees. See Table 4.3. Table 4.3

Labour / Skills Constraints Percentage of all respondents Great extent

To a large extent To some extent

To no extent

Younger drivers

HGV drivers

Other dirvers

Management skills

Raising employee productivity

Staff retention

Training / education facilities

Skill shortages Skill gaps internally Recruitment difficulties / hard to fill vacancies

Source: PACEC Survey of partners 2011 (Q9)

4.3.7

The issue of cost featured as the fourth most important area of concern in Northamptonshire for partners, mainly because of the cost of fuel (and related taxes / duty) for vehicles. This was identified by some 60% of partners and highlighted because of the recent increases in prices and the potential threat of a shortfall in fuel because of industrial action being considered by petrol tanker drivers. Some 14% also mentioned the rising cost of energy. However, other cost issues were not a concern except that the cost of premises was having some impact. See Table 4.4.

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Table 4.4

Cost Constraints Percentage of all respondents Great extent

To a large extent To some extent

To no extent

Costs of goods / services

Cost of labour

Cost of sites / premises

Cost of business support / advice

Cost of suppliers

Cost of energy

Cost of fuel for vehicle / duty

Source: PACEC Survey of partners 2011 (Q9)

4.3.8

Some aspects of business support were identified by partners as having a moderate impact. These were uncertainty and confusion over the business advice available (ie almost half the partners), and a general lack of support (for a quarter), especially since the demise of emda, the re-positioning of the Business Link web-based service, and the reductions in public expenditure and business support services. However, it was mentioned that the new Enterprise Zone for central Northampton (on the waterside sites) would ultimately provide a boost for businesses â&#x20AC;&#x201C; through the tax and rate relief measures.

However the zone is not targeted on the logistics sector,

although some smaller firms are located there and others may move to the area. Other features were a lack of specialist advice (mentioned by around a third of partners) and a lack of support for innovation (a quarter). Table 4.5

Business Support Constraints Percentage of all respondents Great extent

To a large extent To some extent

To no extent

Lack of external business support and advice

Difficult to access support

Lack of specialist / sector advice

Lack of innovation support

Uncertainty / confusion about advice available

Source: PACEC Survey of partners 2011 (Q9)

4.3.9

Other features of the economy posed few constraints.

Some of the constraints

mentioned in a context where most of the features were neutral were as follows: a

The economy. There was a lack of certainty and confidence to some extent affecting the demand for products and services (ie a quarter to a half of partners).

Markets and clients. While the location of the county was generally an advantage, there were some problems with local access to clients and markets to some extent (around 60% of partners) and the location of retail centres for delivery cased some issues (25%).

Technology / innovation. There was some concerns about the digital infrastructure (almost half of partners) and the availability / use of ICT

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equipment (a half). For a third the handling facilities at warehouses was seen as a constraint. d

Finance. Around a half of partners mentioned the difficulty of raising loans / overdrafts for businesses (especially SMEs) and ongoing cashflow issues.

Suppliers. There were very few constraints.

4.4

The Strengths and Weaknesses of the Northamptonshire Economy

4.4.1

The overall strengths and weaknesses in the Northamptonshire economy were explored with partners. The main areas where the economy was strong were in terms of the location, the business base and the labour market.

The main

weaknesses were considered to be sites and premises and transport. In other areas the view was that the conditions were neutral / ok with a very small number of points on strengths and weaknesses. 4.4.2

The key location strengths identified by the overwhelming majority of partners were the proximity to the transport network for businesses, the central location in England and proximity to markets and customers. See Table 4.6. Table 4.6

Location Strengths Percentages of all respondents Strong

Neutral / OK

Weak

Central location for access to markets, ports, airports

Proximity to transport network

100

Proximity to similar sector / cluster businesses

Proximity to labour / employees

Proximity to customers / market

Proximity to suppliers

Source: PACEC Survey of partners, 2011 (Q10)

4.4.3

Linked to this the Northamptonshire business base was generally seen as a strength, in particular the level of economy activity (three quarters of partners), markets and proximity of clients (69%), the mix of businesses in general and the presence of suppliers (46% on each).

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Table 4.7

Business Base Strengths Percentages of all respondents Strong

Neutral / OK

Weak

Business base in general

Markets / clients

Suppliers / services

The economic base / activity

Key sectors / clusters

Culture for innovation

Entrepreneurial business culture

Networking between businesses

Collaboration between businesses

Source: PACEC Survey of partners, 2011 (Q10)

4.4.4

The third main strength was the overall labour market and supply, especially the availability and quantity of labour (just over half of partners), the quality of skills (a third) and the labour support (a quarter). Table 4.8

Labour Market Strengths Percentages of all respondents Strong

Neutral / OK

Weak

Labour market in general

Availability â&#x20AC;&#x201C; quantity of labour

Quality / skills of labour force

100

Willingness to work / train

Source: PACEC Survey of partners, 2011 (Q10)

4.4.5

While most partners considered that land and site availability was neutral / ok, around about a third thought the costs for leasing and the availability was potentially a weakness. However, it was recognised that there were a significant number of larger warehousing and storage sites in the county which would become more accessible through the improved road system and steps to improve access being discussed between the partners (eg the Highways Agency and the planning agencies). There were some 40 or so sites. See Appendix C and Appendix D for the schedules of main sites available in West Northamptonshire (c 30 sites of 10ha and above) and North Northamptonshire (c.7/8 sites of around 5 ha and above). Hence most of the sites / and land are in the West.

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Table 4.9

Land / Sites Weaknesses Percentages of all respondents Strong

Neutral / OK

Weak

Availability

Quality / condition

Cost to lease

Cost to buy

Size of sites

Location

Source: PACEC Survey of partners, 2011 (Q10)

4.4.6

While recognising the extent of the transport infrastructure, most partners thought that there were some significant transport weaknesses in Northamptonshire. Notably for lorry parking, motorway service areas, and road / rail interchange hubs (for some seven in ten partners), followed by bus services (particularly in the rural areas). The main strengths were the road network and the overall network, although most partners thought they were ok or they were neutral on these features. Table 4.10

Transport Network Weaknesses Percentages of all respondents Strong

Transport network in general

Neutral / OK

Weak

Lorry parking

Motorway service areas (MSAs)

Road / rail interchange / hubs

Rail

Fast rail

Bus service

Road

Airports

Source: PACEC Survey of partners, 2011 (Q10)

4.4.7

Other features of the county which influenced economic development and sector prospects were generally recognised as neutral, but some strong and weak features were mentioned. a

Business support services. There was recognition for the business forum(s) and events and transport / logistics summit recently held on the A14. Some six in ten of partners saw this as a strength. The general reduction in business support services was seen as a weakness.

The countyâ&#x20AC;&#x2122;s image and reputation. While generally considered neutral, a quarter or so saw the quality of life as a strength re the growth prospects, the location, the small towns with rural environs, access to the countryside, and low unemployment.

Costs. The overall costs, and the cost of labour, were seen as a strength while the costs of premises / land, transport and the business rates in particular were seen as more of a weakness than a strength.

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4.4.8

Consultations with Partners

It was considered that future demand for logistics / distribution floorspace will come largely from Corby, Kettering, Wellingborough, given that there is a lack of readily available sites / developments available within Northamptonshire and the existing locations within Northampton have limited future development opportunities. It was the view that there would be a likely demand for an additional 1.14 million sq ft of distribution floorspace over a 10 year period in Northampton, given changing population dynamics in the county. However, this does not take into account leases coming to an end, or restructuring in the local economy.

4.5

Logistics / Warehousing Sub-Sector. Discussions with the Property Sector

4.5.1

As part of the consultation with partners on the constraints facing businesses and strengths and weaknesses, discussions were held with the commercial property sector including agents and developers in the logistics sector. This section provides an overview of the market based on the information they provided and an overview of the discussions. The summary of the research on the logistics / distribution property market at a national, regional and local Northampton level is as follows:

4.5.2

●

Take-up across the UK for logistics / distribution accommodation has increased in the recent years. It totalled 15.9 million sq ft during 2011, 900,000 sq ft above the long-run annual average of 15 million sq ft. Take up in the East Midlands of logistics / distribution accommodation (for units over 100,000 sq ft) stood at 2.16 million sq ft in 2011, which equated to 13.6% of total take-up.

●

The second half of 2011 was noted for a lack of larger transactions (primarily due to restricted supply) and low levels of activity especially amongst retailers. Five key deals were completed in 2011 in the East Midlands ranging from units of 270,000 sq ft – 540,000 sq ft.

●

Given the lack of speculative development nationally, the supply of readily available logistics / distribution floorspace declined by 19% during 2011 to 29.4 million sq ft. Some regions, including the East Midlands have an extremely limited amount of new space. In the East Midlands availability stood at 2.8 million sq ft at the end of Q4 2011, which was down by some margin on the average total since 2009 of 4 million sq ft.

●

In terms of investment transactions, 17% of all investment transactions were completed in the East Midlands. Prime rents in the East Midlands are estimated to be in the region of £5.25 per sq ft, which is on par with the West Midlands and the South West. Prime investment yields were around 6.75% and have been at this level since end 2009.

In terms of the local Northamptonshire market, 2008 saw significant volumes of completed accommodation coming onto the market, a large proportion of which was attributable to Prologis’ development at Pineham North. However since 2008, completion levels have declined significantly, with no completions in 2010 and only a modest amount coming to the market in 2011, which has restructured the availability of floorspace.

4.5.3

Declines in new build development, combined with the drop in availability, due to significant take up in 2010 has resulted in a limited amount of readily available

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Consultations with Partners

developments for immediate occupation. This will continue to have an impact on demand and take up rates, particularly given that no new space is currently underway to satisfy requirements in the near future. 4.5.4

The cyclical relationship between development completions, supply and demand will have an impact on prime rental levels in the future, given the lack of new build space available and the failing levels of availability generally across the market. Over recent years prime rental levels have remained stable at £5.25 per sq ft. However, it has been suggested that this is not particularly representative of the desirability of Northampton as an industrial location.

4.5.5

The agents and developers were aware of the sites and opportunities in Northamptonshire as shown in Appendix C and Appendix D. Most sites could not be expanded, although a small number were not developed. Data was not available on vacant premises. The summary of views on key issues with commercial agents and developers that cover the logistics and warehousing sub-sector was as follows: ●

The county is very highly regarded as a central location for occupiers and developers given its central position in England and transport links to centres of population and the ports

●

The county commands good rents and yields and investment provides a very solid opportunity for investors and as such is highly sort after by developers.

●

A key weakness was that there is a significant shortage in the supply and availability of suitable sites that provide choice for developers. While there were some sites available, the supply was not strong enough. The shortage of large sites was seen as a consistent major issue for the Northamptonshire logistics / warehousing sector, particularly as existing occupiers are seeking to expand and are forced to move out of Northamptonshire.

●

It was considered by some organisations that the South Yorkshire area was gaining in prominence as a location due to the cheaper prices and lower costs though this trend did tail off to some extent during the recession.

●

Developers keen to invest in Northampton are hampered by a lack of choice and site availability. The cost of acquiring older sites to redevelop is prohibitive.

●

All interviewees said that they would have no problems taking up sites of around 50 acres, given the current demand, for logistics development.

●

A consistent view but not shared by all was that the planning system is restrictive for B8 warehousing and site availability and was reluctant to allocate new sites despite the market attractiveness of the location.

●

The result of the poor supply has some movement in terms of investment towards Milton Keynes in particular where potential occupiers could have four or five sites to choose from compared to very limited available around Northampton.

●

This movement may be reinforced by the perception that Milton Keynes is beginning to establish itself as a logistics hub with a potential new land port opportunity coming forward.

●

Northampton itself is already under future pressure from centres such as Corby and Kettering where developers previously active in Northampton are seeking new opportunities due to the lack of supply and perceived planning issues.

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4.5.6

Consultations with Partners

The property sector considered that there were very few vacant logistics and warehousing units because of relatively high levels of demand. The vacant units were considered to be older and unsuitable units.

4.5.7

In conclusion it was considered that Northampton itself was an excellent location for the logistics sector given its central location. However, this position going forward was significantly at risk due to the limited choice and better availability of sites coming forward elsewhere in competing centres.

4.6

Future Prospects for the Sectors

4.6.1

Taking account of the constraints facing the sector and the views on the strengths and weaknesses of the Northamptonshire economy, the partners were asked what they thought the future prospects for the sector were. Overall some four fifths of partners considered that over the next three to five years there would be an increase in employment and almost a fifth saw little or no change.

None of the partners

thought that there would be a decline. Similarly, one in ten were quite optimistic about future prospects over the next three to five years.

One in ten were very

optimistic and none of the partners were not very optimistic / pessimistic. 4.6.2

The partners made an estimate of the anticipated percentage growth in employment in the logistics / transport sector over the next three to five years. estimate was 10% growth and the mean 5%.

The median

In terms of the increases in

employment, the ranges expressed are shown in Table 4.11 below. Table 4.11

Anticipated Percentage Growth in Employment

Rate of growth%

Partners (%)

Source: PACEC, from partnersâ&#x20AC;&#x2122; views

4.7

Key Policy Issues

4.7.1

As a reflection of the constraints outlined above, some one in five identified some specific policy issues. The key ones are shown below in the conclusions chapter. It was recognised by the partners that steps were already being undertaken to address some of the constraints. In particular the transport measures to improve the roads and access to sites and the development of the planning policies for the major warehousing and distribution sites (combined with agreements with the Highways Agency on policies to allow the use and development of sites). However, some issues were not covered by the policies that existed prior to the wind-up of the RDAs

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Consultations with Partners

(EMDA) and the spending constraints faced by Local Authorities and other partners, eg general and specialist business support.

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Conclusions and Policy Issues

5.1.1

This chapter draws on the results of the research above to set out some of the key issues and suggested actions to underpin the development of the transport and logistics sector in the county and prospects for growth. It examines:

5.1.2

The importance of the sector in the county and the distribution of opportunities

The strengths of the county that help underpin business activity

The constraints facing businesses in the county and weaknesses

Based on the views of businesses and partners, suggestions are made for improvements to help alleviate the constraints identified. The views include those of businesses whose primary function is logistics and those where it is not, although it is an important function for them.

5.2

The Importance of the Sector

5.2.1

Issues arising from the sector and employment trends (chapter 2):

5.2.2

â&#x2014;?

Given the number of jobs in the logistics and transport sector in Northampton in policy terms it is a sector which should be maintained and encouraged to grow in appropriate locations and subject to its compatibility. Logistics and transport employs some twenty seven thousand people and accounts for some 8% of jobs in the county. It has continued to grow in the period of the credit crunch and the recession / post recessionary period by 7% compared to the county as a whole where some 3% of jobs have been lost. As well as growth, the competitiveness of the sector is underpinned by the fact that the jobs in the county are almost twice as concentrated compared to the UK as a whole.

â&#x2014;?

The road freight and warehousing and storage sectors should be a focus for strategic policies. They provide some two thirds of the transport and logistics jobs but the total has declined while it has grown nationally.

One issue for policy to consider is whether attempts could be made to redistribute the jobs to different parts of the county, as some two thirds are found in Northampton (34%), Daventry (19%) and Corby (13%). However, the employers need to be close to the major road system along with the major logistics initiatives in Daventry and Corby. On this basis opportunities to distribute the opportunities more widely in the county may be limited.

5.3

The Strengths of the Economy

5.3.1

Issues arising form the survey of businesses and consultations with partners (chapter 4 and 5):

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5.3.2

Conclusions and Policy Issues

The county has some key strengths agreed by businesses and partners, with some differences in emphasis, which should be maintained and developed to help underpin and enhance the competitiveness of the sector.

5.3.3

●

A key strength is the location of the county with its central position between the midlands and the south east. However, the attractiveness of the location is subject to good transport links which should be improved especially the road systems, the A14, major junctions and facilities.

●

The business base, and its diversity and depth, was also seen as a strength. This should be retained and developed by retaining the policy growth scenarios developed by partners for the county.

Some other key features were identified by businesses and partners (within the context of strengths) which should be maintained and strengthened, including the quality of labour of skills, and the image and reputation of the county. However, some features aspects of these also resulted in constraints which are shown below.

5.4

Business Constraints and Suggested Actions

5.4.1

Issues arising from the survey of businesses and consultations with partners (chapter 4 and 5):

5.4.2

The discussions with businesses and partners directly identified constraints and suggestions which should be priorities for action. The priorities were: 1. A Shortage of Adequate Sites and Premises – Actions ●

●

Improve the availability of land / sites (especially for logistics, warehousing, storage and distribution): -

Provide more diverse sites

Improve availability of larger sites

Provide more modern sites (eg ICT infrastructure)

Encourage land for lower cost sites

Improve site access

Improve the availability of premises (especially for logistics, warehousing, storage and distribution): -

Ensure that a range of premises by size are available for businesses as they grow

Encourage larger warehouses / storage units

Ensure premises are located in better / more accessible positions

Improve the accessibility to premises and parking available for lorries and cars

Improve security at sites

Improve warehousing facilities

Improve the quality of premises with more modern buildings and facilities

Improve the environment at warehousing sites / estates

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Conclusions and Policy Issues

Encourage the take-up of vacant premises

Provide some form of business tax relief

Encourage more affordable units (either through the councils or developers)

2. Transport Issues – Actions ●

Improve road – rail interchanges

●

Secure A14 improvements: widening, better junctions, upgrading

●

Encourage road widening and better hard shoulders especially on the roads leading to the A14

●

Improve lorry parking facilities (eg A14, A43, A45)

●

Improve the major road junctions

●

Improve public transport in more rural areas

●

Improve east – west rail links

These suggestions were seen as important to help reduce transport costs. 3. The Supply of Labour and Skills – Actions ●

Upgrade intermediate manual skills to higher levels

●

Improve elementary skills

●

Provide more training courses for the young unemployed in the growth sectors

●

Provide specialist apprenticeships for high tech vehicle maintenance

●

Develop schemes to increase the supply of HGV drivers

●

Improve the skills of drivers and warehouse staff

●

Provide higher quality jobs at major urban centres to improve skills retention within the county

●

Encourage more high quality employment opportunities to prevent outmigration of staff (including encouragement for inward investment)

4. Business Support Issues – Actions ●

Clarify what services are available and promote them especially to micros and SMEs

●

Ensure service providers collaborate and coordinate with one another over the services offered and signpost businesses to the appropriate providers

●

Reduce bureaucracy when support is sought (eg exporting)

●

Strengthen services with more focused / specialist provision (eg innovation support)

●

Increase the overall level of sector support (ie for innovation for product / service development and general business management)

●

Improve access to debt finance (especially loans and overdrafts) and liaise with the banks to help achieve this

●

Reduce business rates for SMEs

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5.4.3

Conclusions and Policy Issues

As part of the research, business practices were reviewed. There are some key priorities that business support services should focus on. 5. Improve Business Practices – Actions

5.4.4

●

Encourage staff training and development

●

Encourage the take-up of quality assurance schemes

●

Encourage environmental management practices

●

Improve innovation and product / service development

●

Encourage collaboration and cluster development activities

●

Encourage the use and membership of trade associations and forums

●

Raise awareness, and the use, of external business support

It is considered that the stakeholders and partners in Northamptonshire should develop a strategy and action plan focusing on the above findings to maintain and develop the County’s strengths and address the constraints and issues raised by businesses. They should establish the priorities, responsibilities (reflecting functions), the resource availability, and milestones for implementation along with governance and monitoring arrangements.

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The Structure of the Interviews

Appendix B B1

The Structure of the Interviews

Questionnaire for Businesses The topics covered:

●

Contact Details and Business Characteristics

●

Business Objectives and Prospects

●

Business Constraints

●

Strengths and Weaknesses of Northamptonshire

●

Business Linkages in Northamptonshire

●

Economic downturn

●

Key Policy Issues

Questionnaire for Partners The topics covered: ●

Details of Organisation

●

Business Constraints in the Sector

●

Strengths and Weaknesses of Northamptonshire

●

Economic Prospects for the Sector

●

Key Policy Issues

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PACECSite Schedules from West Northamptonshire Employment Land Study from the Joint Planning Unit

Appendix C

C1.1

Site Schedules from West Northamptonshire Employment Land Study from the Joint Planning Unit

This schedule shows the main sites over 0.5ha in area and the scope for renewal and further development.

Ref Nos

Location / Address

Predominant

Market Renewal

Scope for intensification –

Market Sector

without changing Morrison's distribution and some medium sized office units. Distribution and offices.

Too modern to need renewal.

use. Mixed Use? Yes – underused space

Too modern to need renewal.

Yes – underused space

52.86

Distribution

Still being developed – future phases planned and two new units not currently let

Yes – underused space

Pineham, North of Kislingbury Way, West Hunsbury M1 Junction 15A/A43, West Hunsbury

26.81

Undeveloped land

4.83

Undeveloped land

26 Milton Ham

Milton Ham, West Hunsbury

8.72

Undeveloped land

27 Duston Mill

Duston Mill, Duston Mill Lane, St James

5.03

Undeveloped land

61 Weedon Road Industrial Estate 37 Lodge Farm

Weedon Road Industrial Estate, St James

14.46

None.

No.

Lodge Farm, Spencer

52.53

None.

No.

27 Delapre

Delapare, Old Towcester Road, Castle St James, Harvey Reeves Road, St James

1.18

Light engineering and offices. Distribution, light industrial and engineering and offices. Undeveloped land. Undeveloped land.

Road Studland Road, Kingsthorpe

10.32

No.

28 Moulton Park

Moulton Park, Northampton

104.96

Distribution, manufacturing and light engineering. Engineering, distribution, food wholesalers, manufacturing and offices.

purpose. New development happening on Deer Park Road – new production/office units.

No.

6 Moulton Park, Kings Park

Moulton Park, Northampton

3.32

30 Swan Valley Industrial Estate West

Swan Valley, West Hunsbury

26.69

31 Swan Valley Industrial Estate East 29 Swan Valley Industrial Estate

Swan Valley, West Hunsbury

40.82

Swan Valley, West Hunsbury

25 Pineham

24 M1 Junction 15A/A43

28 St James, Harvey Reeves Road 35 Studland Road

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0.62

Undeveloped land.

Page 68

PACECSite Schedules from West Northamptonshire Employment Land Study from the Joint Planning Unit

Ref Nos

Location / Address

Predominant

Market Renewal

Scope for intensification â&#x20AC;&#x201C;

Market Sector

without changing use. Mixed Use? Road 8 Moulton Park

0.7

Distribution.

None.

No.

10 Moulton Park

Moulton Park, Northampton Quarry Park Close, Moulton Park, Parklands.

1.19

None.

No.

65 Round Spinney

Round Spinney, Thorplands.

36.48 + 0.39 + 0.46 + 0.3

None.

No.

27 Kettering Road North

565 Kettering Road North, Parklands

10.55

None.

No.

Crow Lane Industrial Estate 52

Crow Lane, Billing

10.95

None.

No.

Brackmills South/ Northampton Business Park 66

Brackmills/Northampton Business Park, Nene Valley

122.83

None.

No.

Brackmills 20 Brackmills 21

Brackmills, Nene Valley Brackmills, Reynoldstone Road, Nene Valley Brackmills, Nene Valley

20.05 25.05

Manufacturing, light engineering, distribution and marketing. Distribution, storage, manufacturing, light engineering and some offices. Light engineering, distribution and car breakdown recovery. Distribution, manufacturing (food and other), car dealership, cash & carry. Light engineering, distribution, manufacturing, IT solutions, offices. Distribution. Distribution .

None. None.

Some. No.

36.14

Distribution and manufacturing,

None.

Rothersthorpe Avenue Industrial Estate 59 Ransome Road Industrial Estate 30

Rothersthorpe Avenue, Far Cotton

14.25

None.

Southbridge Area, Delapre

17.83

None.

No.

Riverside Park 20

Nene Valley Way, Billing

27.12

None.

Some.

Royal Oak Industrial Estate 5

Royal Oak Industrial Estate, Daventry

109.03

Light engineering, manufacturing and distribution. Light engineering, distribution, haulage, retail (cars) Retail, distribution, light engineering, storage companies, office Ford, Cummings, Tesco distribution plus small, medium, light engineering

Yes - undeveloped, vacant land next to the Coca-Cola warehouse. No.

Some limited renewal but only on prominent sites, even then it looks like existing companies

No - quite high density at the moment but could accommodate some offices if needed/demanded.

Brackmills 22

The Logistics and Transport Sector

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PACECSite Schedules from West Northamptonshire Employment Land Study from the Joint Planning Unit

Ref Nos

Location / Address

Predominant

Market Renewal

Scope for intensification –

Market Sector

without changing use. Mixed Use? and services.

Drayton Fields Industrial Estate 4

Drayton Fields Industrial Estate, Daventry

29.01

Heartlands Site 1 Brunel Close Site 3

Heartlands, Daventry

17.90

Brunel Close, Daventry

9.29

Long March 11

Long March Industrial Estate, Daventry

16.07

Grange Park

Grange Park, Northampton

31.21

Light engineering, some services and food and some distribution. National Distribution Mixed – some distribution but also some local general industrial and service units Older estate, some distribution but mostly mixed aged general industrial. Limited offices. National distribution.

building purpose built units so they will probably vacate older units. Yes - some new infil and new building being developed or redeveloped.

No.

Site too new to be renewed. A little but not much

No.

Yes some units appear to have been replaced with new

No.

None.

Not really – not much vacant land around the site available to develop.

No.

Source: The West Northamptonshire Joint Planning Unit

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PACEC

Sites Schedules from North Northamptonshire Joint Planning Unit

Appendix D D1.1

Sites Schedules from North Northamptonshire Joint Planning Unit

This schedule shows the main sites above a development area of 4ha and the site characteristics and constraints.

Site Name/ Address Vehicle Depot And Adjacent Land, Kettering Road (SELA reference E5)

Haldens Parkway, Thrapston, NN14 4QS, Plot 5 Haldens Parkway, Thrapston, NN14 4QS, Plot 6 Haldens Parkway, Thrapston, NN14 4QS, Plots 11-14 Unit 10, Warth Park Way 7 Express Business Park RPC Containers Ltd, A45 Bypass

Gross site area (ha)

Developable area

23.3

23.27

Site characteristics - surrounding uses, constraints etc Single ownership. Some buildings on site, but predominantly open air vehicle storage.

4.31

Central location within industrial area

5.8

Central location within industrial area

Y Y Y

5.89

13.22 4.62 4.92

15.59

6.58

Central location within industrial area Fully developed, self contained B8 warehouse

Purpose built warehouses

Source: The North Northamptonshire Joint Planning Unit

The Logistics and Transport Sector

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