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Regional Profile Middlesbrough & Tees Valley
Regional Profile: Middlesbrough
Overview of Middlesbrough & Tees Valley Economy Workforce Skills Employment Summary
Middlesbrough
Regional Profile: Middlesbrough
Overview History of Middlesbrough and Tees Valley Middlesbrough was originally a coal port. However in 1851 the first blast furnace opened in Middlesbrough. Soon the iron industry was booming. Large numbers of men flocked to work in the iron industry and as a result the population of Middlesbrough boomed. By 1861 the population had reached nearly 20,000 (the town was producing 33% of the nation’s total iron output). The Tees Valley generally has a long history of research and development; with new ideas ranging from the invention of the safety match and the production of the first steam engine to developing Perspex and polyethylene.
Snapshot of early inventions include: 1755 First modern chemical plant 1825 Steam Passenger Train 1917 Synthetic Ammonia 1917 Dorman Long established Redcar Company - Dorman Long founded the Teesside Steelworks which produced steel to build the Sydney Harbour Bridge, Auckland Harbour Bridge and many others. 1920s Fertilisers - Teesside became a major fertiliser manufacturing location. 1931 Perspex - developed at Billingham on Teeside 1931
Dulux Paints developed by ICI
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Regional Profile:
Overview Middlesbrough and Tees Valley today
Middlesbrough
Middlesbrough is the capital of the Tees Valley. The Tees Valley functional economic area includes: Darlington, Hartlepool, Redcar & Cleveland, Middlesbrough and Stockton on Tees. Middlesbrough is a large town situated on the south bank of the River Tees north-east England. Middlesbrough is technically not in any county. It was historically part of the North Riding of Yorkshire, but became part of The County Borough of Teeside in 1968 and then part of Cleveland in 1974. Cleveland was abolished in 1996 and Middlesbrough became a unitary authority within the county of North Yorkshire for postal and ceremonial purposes. Middlesbrough shares a common boundary with Stockton-on-Tees to the north and west, Redcar and Cleveland to the east and North Yorkshire to the south.
The Tees Valley is located on the North East coast of England, ideally positioned between Manchester, Leeds and Newcastle.
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Regional Profile: Middlesbrough
Economy Summary of economy Tees Valley, an area based on innovation and reinvention, has been a main contributor to the economic performance of the UK over the last 150 years – moving from ironstone mining, steel making and ship building to processing and chemical industries – and now changing again to include advanced manufacturing, renewable energy and ICT.
The Tees Valley economy has made progress in recent years. Although it still underperforms in comparison to the national average on employment, enterprise, earnings and skills. However, positive achievements have been made, particularly in narrowing the gap in enterprise growth, qualification levels and earnings. Recent private sector job growth, particularly in sectors such as advanced manufacturing, digital and the low carbon economy, provide optimism for the future. Tees Valley’s petrochemical and other base chemical cluster is one of the foremost in Europe. The Petrochemicals industry in Tees Valley stretches back over 170 years during which time there has been a continuous stream of new products and processes and a continual business rejuvenation driven by innovation, investment and changes of ownership. While Tees Valley’s production industry is one of the biggest in the UK, its service sectors – from engineering design and business and professional services to retail, digital, health and social care, and logistics – provide significant employment and 82% of Tees Valley jobs. The Tees Valley contributes £10 billion to the national economy – it has a population of 663,000. However, the catchment area of the population is much higher with one million people within a thirty minute drive and 2.7 million within one hour’s drive.
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Regional Profile: Middlesbrough
Economy Major industries Advanced Manufacturing
Super-sectors
Tees Valley is home to key manufacturing industries and large world leading employers that are fundamentally important to UK advanced manufacturing.
Tees Valley is fast being recognised as leading the way in the development of sustainable supersectors, into which there has been over £750m of inward investment over the past three years alone, including from global industry leading companies such as SABIC, Hitachi, Mitsubishi, SSI, Ineos, Esterline, Jacobs and Lotte.
It has a cluster of multinational corporations and a ready supply chain with expertise from manufacturing and design to research and development. Supplying markets including energy, oil and gas, process, defence, aerospace and automotive, Tees Valley is leading the way on advanced manufacturing, from the resurgence of steel making to major firms supplying OEMs like Airbus, Boeing, Honda and Jaguar Land Rover. With a leading design engineering industry and supported by both England’s largest exporting port and key research and development assets, Tees Valley is at the very forefront of both export-led growth and UK advanced manufacturing.
Petrochemicals The Tees Valley is the largest integrated chemical complex in the UK in terms of manufacturing capacity and the second largest in Western Europe. The area is home to a range of key clusters in the chemical sector including refining, petrochemicals, speciality and fine chemicals, plastics, biotechnology and pharmaceuticals. The production sector as a whole in Tees Valley makes up 22% of GVA and employs 29,500, 11% of total employment. The wider process sector in Tees Valley, however, employs many more and has a much wider reach, with over 1,400 firms in the supply chain.
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Regional Profile: Middlesbrough
Economy Major industries Retail
Health and Social Care
A number of Tees Valley town centres have experienced, or are undergoing, considerable regeneration and investment to improve the leisure, shopping and cultural experience.
Tees Valley is home to the headquarters of a number of social care operators, four nationallyrecognised NHS Trusts and a number of innovative bio-medical start-ups.
Logistics Tees Valley is increasingly playing host to major distribution centres, such as Tesco and Asda, with Teesport a key asset and businesses moving to the area to reduce road mileage costs.
Professional Services Over 7,500 people are employed in contact centre and business process outsourcing activities in Tees Valley for blue-chip firms such as Santander, EE, Virgin Media and NPower, jobs which offer entry level and employment opportunities to combat social exclusion.
Future Economic Developments A £780m of investment underway into energy-related projects This includes the likes of Lucite International’s chemical plant to supply electric vehicle battery electrolyte, Ineos Bio’s energy from waste project, Sembcorp and SITA’s biomass power station, Solvert’s chemicals from commercial waste proposal and Tees Alliance Group’s offshore wind monopile manufacturing plant.
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Workforce Skills Skills must be continuously updated
Technology may change the way education and skills training are delivered and there is, more than ever, a need for skills to be updated and enhanced throughout a working life, rather than being seen as a one event at the beginning of a career. While the Tees Valley has seen a rise in residents with level 3 and degree level qualifications, there is still a gap between the area and the national average. Furthermore, skills issues are concentrated in the higher skills occupations, with the hardest to fill vacancies in the professional, technical and skilled trades. Many new jobs in sectors such as advanced manufacturing require higher level skills and there is a growing shortage of experienced engineers, skilled technicians and professionals.
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Middlesbrough
Regional Profile: Middlesbrough
Workforce Skills Impact of skill shortages Skills shortages within critical workforces can severely hinder a company’s ability to execute strategy, accommodate clients and drive innovation. Scores of essential skills remain in short supply and new employees often take too long to reach competency. All businesses need to grow and develop in some way whether it is into new markets or through developing new products. Therefore, continual growth and development is essential for business survival.
Teeside University Tees Valley has a network of excellent schools, colleges and training providers that provide industry-specific training. Teeside University has 29,000 students (almost 10,000 fulltime) with two-thirds of the students from the North East. The university has five established research institutes aimed at leading research activity on Teesside:
Investment in skills is the key factor because productivity is going to be severely affected in the Tees Valley if the issue of skills shortage is not addressed. Employers should recruit locally,
• Digital Futures Institute
appreciate community talent, and train and nurture a skilful neighbouring workforce.
• Institute of Design, Culture and the Arts • Health and Social Care Institute • Social Futures Institute • Technology Futures Institute
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Regional Profile: Middlesbrough
Workforce Skills Skills clusters The table below shows the skills clusters requested in the Tees Valley Skill Cluster Number
Skill Cluster Number
IT 898
Construction 159
Health 867
Sciences 150
Customer Service
680
Research 76
Finance 623
Production 73
Admin Support
490
Management 67
Engineering 480
HR 65
Sales 351
Education 62
Marketing 273
Arts 55
Digital Media & Design
Product Design & Development 53
241
Green 230
Food Service
Legal 222
Manufacturing 31
Business 219
Advanced Manufacturing
Repair 208
Transportation 22
Supply Chain & Logistics
Social Services
162
IT is the skills cluster that is in greatest demand over the last few months followed by Health and Customer Service.
45 24 7
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Workforce Skills Top 10 Local Authorities for NEETs in England Tees Valley has a high number of NEETS, well above the national average. Newcastle
Halton
Salford
9.8%
8.4%
8.1%
Middlesbrough
Liverpool
Sunderland
9.7%
8.3%
8.0%
Telford & Wrekin
South Tyneside
8.8%
8.3%
Stockton on Tees
North East Lincolnshire
8.6%
8.1%
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Middlesbrough
Regional Profile:
Employment Growth potential The Tees Valley economy has the potential to increase employment by some 25,000 net additional jobs and over £1bn of GVA. The 25,000 target has been developed because: • 29,800 additional jobs are required for Tees Valley to close the gap with national employment rates. • Between 23,000 and 28,000 new jobs are required in private service sectors to match the level in key regional areas such as Greater Manchester, Greater Birmingham and Leeds City region. • The target is achievable because, between 1996 and 2006, a period of sustained growth nationally, over 28,000 jobs were created in Tees Valley. Even when accounting for decline in Tees Valley between 2006 and 2008, 18,000 jobs were created over the course of the decade. • The ‘City Deal and wider Tees Valley Unlimited Statement of Ambition’ will play a crucial role in achieving this target, although it is likely that other interventions, supported by European Structural and Investment funds will be necessary.
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Middlesbrough
Regional Profile: Middlesbrough
Employment Job creation 2014-2024 Net Job Creation 2014 – 2024
Employment
GVA
Low Carbon +2,500 £147m Advanced Manufacturing +2,500 £147m Other Manufacturing -5,000 -£250m Construction +4,000 £231m Tourism and retail +2,000 £57m Finance and Business Services (ex digital)
+8,000
£307m
Logistics +2,000 £118m Telecoms and Digital +2,000 £87m Higher Education +1,000 £31m Health (Care) +4,000 £116m Other public services +2,000 £62m TOTAL +25,000 £1,052m
An additional 8,500 jobs will be safeguarded through the City Deal (5,000 in industrial sectors and 3,500 in private services). Overview | Economy | Workforce Skills | Employment | Summary
Regional Profile: Middlesbrough
Employment Economic growth requires innovation Tees Valley’s new and existing industries identified for future growth must remain competitive through innovation.
Growth in low carbon economy and digital economy More recently the city region has been looking to build on its existing economic assets. Those assets include the world’s largest polyethylene plant (SABIC), a growing pipeline in renewable energy and biofuels (enshrined by being granted Centre for Offshore Renewable Engineering status), the development of Teesport as a major container terminal and the expertise and reputation in developing digital businesses at Digital City Business and the Institute of Digital Innovation at Teesside University. The process industries are the biggest generator of wealth in the Tees Valley and innovation remains central to their success.
Impact of Ageing Population The Tees Valley, in line with national trends, is experiencing an ageing population. One of the biggest impacts of an ageing population is the loss of key skilled individuals resulting in; skill shortages which present a significant challenge to meet the demands of business and the economy.
Demographic Change: The population is growing but ageing, with increasing numbers of people living and working longer. This will mean increased retail and construction demand, and for care services, but an older workforce may indicate a changing workplace with increased demand for lifelong learning. There will most definitely be a significant growth in the number of jobs in the Health and Social Care sector due to increasing numbers of elderly people.
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Regional Profile: Middlesbrough
Economy Vacancies The highest proportions of vacancies are in the Professional Occupations group followed by the Associate Professional and Technical Occupations, then Skilled Trades. In Darlington the third most popular occupation group is Administrative and Secretarial followed by Skilled Trades. Stockton-on-Tees has the highest percentage of Professional Occupations advertised while Redcar and Cleveland shows the highest percentage of Associate Professional and Technical. The number of job vacancies for Caring, Leisure and Other Service Occupations has risen in general across the Tees Valley, with the largest increase being seen in Hartlepool.
Self-employment in the Tees Valley Between September 2011 and March 2014, the number of selfemployed aged from 16-24 has increased by 24%. This compares to 8% nationally, 9% in the North East and 5% in North Yorkshire. The number of self-employed people in the Tees Valley has increased dramatically since 2011.
Stockton-on-Tees has seen a large rise in the Human Health and Social Work sector along with Hartlepool. In contrast Middlesbrough and Redcar and Cleveland show a decline in this sector, with Darlington showing a smaller decline. Jobs advertised in the Manufacturing sector have shown an increase in both Middlesbrough and Stockton-on-Tees. However there has been a decrease in Redcar and Cleveland, Hartlepool and Darlington. Overview | Economy | Workforce Skills | Employment | Summary
Regional Profile: Middlesbrough
Economy Top 20 occupations The table below shows the top 20 occupations in the Tees Valley Top 1 - 10 Occupations
Top 11 - 20 Occupations
Nurses
Chartered and certified accountants
Primary and nursery education teaching professionals
Chemical scientists
Care workers and home carers
Social workers
Teaching assistants
Engineering professionals
Medical practitioners
Electrical engineers
Civil engineers
Secondary education teaching professionals
Programmers and software development professionals
Business and financial project management professionals
Mechanical engineers IT business analysts, architects and systems designers Nursing auxiliaries and assistants
Chartered surveyors Information technology and telecommunications professionals Legal
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Economy Occupations with biggest increase of job vacancies An additional 8,500 jobs will be safeguarded through the City Deal (5,000 in industrial sectors and 3,500 in private services). Occupation 2013 2014 Change Teaching assistants 6 117 111 Medical practitioners 13 117 104 Care workers and home carers
40
127
87
Nursing auxiliaries and assistants
2
59
57
Nursery nurses and assistants
5
29
24
Senior care workers 2 25 23 Childminders and related occupations
6
22
16
Quality control and planning engineers
2
15
13
Quality assurance and regulatory professionals
8
19
11
Social and humanities scientists
11
21
10
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Middlesbrough
Regional Profile:
Summary Addressing problems of high youth unemployment High youth unemployment has a negative effect on economic growth and productivity. There is a risk of loss of talent and skills since a great amount of university graduates are unable to find a job and to put their knowledge and capabilities into producing innovation and contributing to economic growth. Youth unemployment remains a huge problem for the region and high youth unemployment is one of the biggest problems confronting societies around the world; there must be more effort and emphasis on vocational training and increased intake of apprenticeships not only to provide employment but to meet today’s rapidly increasing skills shortages. Early unemployment has a negative effect not only on the future employability of young people but also on their self-esteem. Being young and unemployed can lead to increase in social exclusion as well as cause a loss of motivation and mental health problems. Furthermore, fresh graduates lacking experience often find themselves trapped in a vicious cycle because they do not have the required experience needed to fill a job opening, which prevents them from getting employed. As a recruitment agency we appreciate just how important it is for young people to be properly integrated into the labour market.
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Middlesbrough
Regional Profile:
Summary Advantages of recruiting young people Young people often have an abundance of energy and a natural thirst for knowledge, which can rub off on colleagues and help invigorate the workplace. Furthermore, as a recruitment agency, we witness how young people tend to push themselves, wanting to make a lasting impression and prove what they can do. Their sheer determination to complete their work can inspire colleagues around them. Therefore, if a company puts sufficient time and thought into recruiting young people, it can subsequently provide a very positive return on investment.
There are clear business benefits to employing young people It is crucial for the wellbeing of young people that businesses throughout Tees Valley take real ownership for skills development and good job creation because it is by local employers accepting responsibility that the whole community will achieve a positive impact and sustainable employment.
Middlesbrough
Fresh ideas It is also important to remember that any young person could be the next Bill Gates or Mark Zuckerberg. Although they lack experience, new young people are generally easier to train, due to being driven and eager to excel. It is therefore imperative that representatives of companies, together with colleges and universities, throughout Tees Valley should strategically consider methods of attracting students and young people into their industry by creating incentive and lucrative offers to influence an increased steady input of talented individuals to sustain, develop and secure the future economy of Tees Valley. Just by tapping into the huge numbers of unemployed young people in the region, a company is not only providing jobs but will be allowing those young people to present fresh ideas, vision and inspiration which are the necessities of every organisation.
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Summary Cordant’s objective At Cordant People we constantly research, study statistics and skill shortages, and have learned that by the time today’s primary school children are capable of work, the UK will then need over two million additional engineers and if these cannot be filled there will be devastating consequences for the UK economy, as engineering is central to future economic growth of any city and nation. Cordant People constantly endeavour to develop and nurture relationships which they have with all their candidates on their database, as well as continually seeking and engaging with new candidates to attract fresh talent. At Cordant People we recognise, completely, that the long-term economic health of towns and cities rests on investment in citizens’ skills and professional qualifications. Also as a recruitment agency we acknowledge our responsibility “that we must always be at the forefront of industry knowledge.” It is our objective to help and assist all companies in Tees Valley to recruit and employ successful candidates in order that they may fulfil business targets and compete in today’s increasingly competitive global markets.
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Middlesbrough
Cordant People
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