As part of Tees Valley Unlimited’s role as Local Enterprise Partnership for the area we aim to provide you with a Tees Valley wide view of economic trends, business news stories and developments.
We have therefore put together the attached “Tees Valley Economic Briefing” which brings together up to date information about the Tees Valley economy. We have tried to present the information in a concise format which we hope will find is quick and easy to digest.
1. Economic Briefing
D AT E A p r i l 2 0 11
ISSUE 1
This Tees Valley Economic
Briefing aims to provide a
brief summary of activity in
the Tees Valley economy
for April 2011 including
statistical trends and key
announcements for the
month.
Summary Indicator Overview Data Direction
The Tees Valley economy Reported jobs gains and losses Previous
experienced a number of Quarter
Little overall trend in job gains and
positive developments in losses is evident, although there have
March. These were both been more job gains than losses over the
in terms of large-scale job last quarter. Any trend in job gains and 2010/
losses is often hidden by large individual 2011
creation, with the
announcements, such as the SSI takeover
completion of the deal of TCP in February creating 800 jobs. In
by SSI to take over the addition, many of the job losses have come Source: Tees Valley Unlimited
Tata steel manufacturing from the public sector, where although the
plant in Redcar (creating losses have been announced many will
actually take place over 4 years.
800, and safeguarding
700, jobs) and the location Previous
of the Hitachi Trains Employment Quarter
project at neighbouring Slight increase in Tees Valley's
Employment Rate. The Tees Valley's
Newton Aycliffe, as well employment rate fell steadily during the
as announcements from recession, however this fall appears to 2009/
2010
government. The latter have ceased. Employment rates in the
saw the Centre for Tees Valley have broadly followed the
national trend, whilst the North East's
Process Innovation at
employment rate appears to be increasing
Wilton form part of the at a slightly faster rate.
Source: Office for National Statistics
new UK Technology
Innovation Centre and the
Unemployment Previous
Tees Valley designated Quarter
Claimant Count has begun to rise again.
by the Chancellor as a After falling from the peak at the beginning
location for the of 2010, unemployment has started to rise
establishment of a new again in recent months, reaching the levels 2010/
2011
Enterprise Zone to attract seen at January 2010. Unemployment in
new jobs and businesses. Tees Valley remains higher than the North
East as a whole and the gap between Tees
In addition, a positive start Valley and the average for the whole of Source: Office for National Statistics
to the year was had by Great Britain is increasing.
Durham Tees Valley
Airport, with figures out GVA Per Head 2000/
this month showing 2008
GVA per head increasing but still well
passenger numbers up below national average. The Tees
24% in February Valley's GVA per head relative to the UK
compared to a year earlier, fell markedly up to 2002. Whilst there has
been some recovery, the Tees Valley is stil
and work began on the below the North East as a whole and
£300m housing and significantly below the UK level.
regeneration scheme Source: Office for National Statistics & Tees Valley Unlimited
NorthShore in Stockton.
For further statistical information about the Tees Valley economy visit www.teesvalleyunlimited.gov.uk
Reported job gains and losses are based upon announcements as reported in the press and are
therefore not designed to be fully comprehensive.
2. Economic Briefing April 2011 - Issue 1
Summary cont.... Engineering & Manufacturing Air Products and SITA, as well as the
plans of PYReco and SembCorp. In
Over 550 jobs were March’s considerable job creation was addition, Biffa opened the UK’s first fully
reported as created in largely built on companies in the integrated sorting and recycling facility for
March across a number of engineering and manufacturing sectors mixed plastic packaging at Redcar in
sectors, with the potential expanding and securing new contracts. March, creating 28 new jobs. Meanwhile,
for over 100 more in Leaving aside SSI, the likes of Darlington offshore wind suppliers continue to prosper,
ongoing renewable energy engine assemblers Cummins, Stockton with growth at subsea support specialists
projects. Around 30 job car-parts manufacturer Nifco and Tekmar Group, who have a site in
losses were announced Hartlepool oil and gas platform Darlington, and continued success at the
from a handful of Tees manufacturers Heerema created the likes of JDR Cables in Hartlepool and MPI
Valley firms this month, but majority of jobs this month with 120, 120 Offshore in neighboring Stokesley.
possible losses could climb and 190 respectively. In addition, Radiola Darlington based consultants Eco
further with over 300 Aerospace was a successful inward Environments are also looking to increase
employees at investor, setting up in Stockton, and staff.
Middlesbrough-based companies across Tees Valley were invited
Redhall Engineering to register their interest in supplying the
Group, Darlington's Four Newton Aycliffe-based Hitachi Trains
Logistics
Seasons Healthcare and project. 22 job losses were announced, PD Ports’ £29m expansion of their
Teesside Power Station however, at drinks manufacturer Tetley in container terminal at Teesport, which aims
at Wilton respectively Stockton and there is a threat to 200 jobs to increase container capacity from
under threat of at Redhall Engineering Group in 235,000 TEU to 450,000 TEU which began
redundancy. Regionally, Middlesbrough due to a contract dispute. in February, continues apace.
according to Lloyds TSB’s Nationally, the CBI reported increased
latest business index, the orders and growth expectations from
North East economy grew manufacturers, while EEF reported Professional Services
at its fastest pace in stronger confidence among engineering The professional services sector in the
February for almost a year, firms in the North East driven by a rise in sub-region was relatively quiet in March,
above the national export orders. although digital and creative companies
average, driven primarily continue to prosper. A total of 25 jobs were
by an increase in output
and orders in the Oil & Gas created at digital firms Via Creative in
Redcar. Thap and iBod in Middlesbrough,
manufacturing industry. Alongside Heerema, who secured a tying into the expertise of Digital City in
contract with Centrica to fabricate an Middlesbrough and the plans for The Hub
Misc offshore oil and gas platform, AMEC won a in Redcar. In addition, Webworks in
£32m contract to supply the Teesside Gas Darlington is creating a further 16 posts. A
A Barclays Wealth study Processing Plant (TGPP) at Seal Sands, couple of contact centre businesses this
this month reported that which will process natural gas from RWE’s month showed contrasting fortunes with
the number of millionaires field in the North Sea. Meanwhile, due to a new start-up Call Agents UK employing a
in the North East has drop in demand, Teesside Power Station further 30 people in Middlesbrough, while
increased by 17% over the is being partially mothballed with 100 jobs Darlington’s Infoserve are losing 10 staff
past 2 years, the fastest at International Power looking uncertain. as a result of declining profits. With the
growth outside of the likes of law firm Dickinson Dees reporting
South East, and is increased volumes of work, such positive
predicted to be the fastest Renewable Energy findings contrast with national data
gainer between now and Two potential waste-to-energy projects suggesting a slowdown in growth in the
2020. The North East announced their intention to set up in Tees service sector.
does, however, remain Valley this month, including Earthly
bottom of the English Energy’s project to turn food and garden
regional league table for waste into biogas, creating 84 permanent
millionaires. jobs. This builds on the positive momentum
built up sub-regionally over recent months
with the expansion of the likes of Ineos Bio,
Cavendish House Tel: 01642 524400
Teesdale Business Park E-mail: info@teesvalleyunlimited.gov.uk
Stockton-on-Tees Web: www.teesvalleyunlimited.gov.uk
Tees Valley
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