Key Business Sectors: Maximising Economic Potential

Focus has shifted from traditional sectors of manufacturing towards service industries
Massive economic change over the last 20 years from being a region which relied heavily on traditional manufacturing to service-intensive industries. Closures in recent times of some high-profile companies such as Motorola and NEC had a negative impact but key skills have been re-deployed to other sectors/companies. Most recent negative impact is the closure of Halls. Move towards the service industries such as financial services, retail and hospitality/tourism sectors in recent years yet vulnerable to overall economic factors at play which still remain uncertain. Emphasis now on knowledge based industries, high technology, research and development.

A Vibrant and Dynamic Economy

Around 80,300 jobs based in West Lothian (2011) with no single sector providing more than of jobs highlights the diversity which is inherent in the area. This should be maintained to prevent over-dependency on relatively few sectors and companies.
Young demographic profile which is appealing to employers in terms of available skills and employability but this needs to be developed further. Main industries are public services, retail and distribution, hotels and restaurants, manufacturing, construction and finance and IT, but concern is that these sectors are vulnerable to economic dynamics globally and still dependent upon a number of high profile employers.

There are opportunities for growth in other priority industries including food and drink, tourism and life sciences.

Multinational companies are the largest private employers in the region

Leading companies such as Sky, Tesco, Asda-Wal Mart, and Lloyds Banking Group are the biggest private employers in the area. Despite declines in manufacturing sector in recent years, the sector is still one of the biggest sources of employment in West Lothian given presence of companies such as Johnson & Johnson, Gore, and Mitsubishi. In total, 70% of the workforce is employed across 7 main sectors:
High Technology and Biotechnology Computers and Electronics Distribution and Logistics Business, Customer and Financial Services (including Contact Centres) Manufacturing Retail Food and Drink

Source: West Lothian Council, Scottish Enterprise

Region now focus of knowledge intensive sectors viewed as being key to fuel growth
Energy & Renewables Life Sciences Financial Services Food & Drink Tourism Electronics and High Technology Firms

Key Sectors for Future Growth and Economic Sustainability

What steps can be taken to maximise economic potential of these sectors?

A major objective should be not only to attract new business to the area but a focus on the long-term development of the key business sectors identified. Historically, across key Scottish regions and enterprise zones, foreign firms have exited after a certain time period, leading to unemployment, often large-scale and other associated social problems for the local community. Key strategy should be on sustainability of these sectors so that the benefits can be derived over the longer term which shall enhance the regions positioning within Scotland and beyond.

Key Focus on Skills Development

West Lothian does not perform well in relation to other local authorities with regard to school achievement or entry into further education. In order to attract new business and further development, an appropriate strategy must be executed which shall focus on skills appropriate to the business sectors in question. Such a strategy shall need to be in partnership with the overall education and training framework in place, but also focus on specific attainment across the most relevant skills/expertise and particularly, in partnership with the private sector through adequate apprenticeships, placements etc.

Key Focus on Scottish Companies

Development of Scottish companies is necessary to fuel growth and sustain the economy over the longer term. Provide incentive to Scottish companies to locate, invest and grow in the area through appropriate Marketing campaigns and in conjunction with national agencies such as Scottish Enterprise, Business Gateway and Talent Scotland. Assist in terms of funding, grants and related incentives to locate in the area nationally and internationally. Partnership with external agencies such as SDI, Skills Development and other national employment agencies. Facilitate relationship building between schools, higher education and the private sector to incite innovation.

Support for Entrepreneurship & Innovation

Act as facilitator/promoter between the private and public sector with regard to available funding, business support & advice, especially to smaller firms who may lack expertise or finance to grow. Create awareness of what assistance is available. Actively engage in collaboration with private sector and education apprenticeships, work placements, innovative projects and promote this at a higher level. Promote the region within the UK as well as internationally to attract investment and potential opportunities for JVs, partnership with overseas companies create centres of excellence in key areas.

Improve Social Framework and Local Infrastructure

Attractive location given proximity to Edinburgh and Glasgow M8 Corridor must be promoted and further investment made to road and rail infrastructure in place. Efforts at improving the local community through various regeneration initiatives should lead to creating a much more attractive profile of the local area which will serve to attract more investment. New transport links have had a positive impact but need to be promoted especially given competition between Edinburgh and Glasgow as key locations. Livingstone could become key hub for specific sectors but much more needs to be done to sustain this over the longer term. e.g. Alba Innovation Centre

Scotlands Economic Hub

We recognise our place in the wider world not least as part of the wider city regions in the east of Scotland and our strong connections to and synergies with both Edinburgh and Glasgow. Strengthening West Lothians competitive position is important for West Lothian and for the wider Scottish economy. Key Strategic Drivers Develop the business base Maximise West Lothians competitiveness as an investment location and respond positively to opportunity Realise the potential of young people

Source: West Lothian Economic Partnership, 2010

The Way Forward......

Growth will be dependent upon not only support to new businesses in the area but through raising the profile of the local economy at a national and international level. Attendance at trade shows internationally in key sectors, create synergies across key industries and areas of expertise. Highlight key positive indicators such as workforce, transport links, construction projects etc. Much more collaborative working across both private and public sector agencies especially education and employment as well as a more integrated approach across different functions within the Council. Much more proactive rather than reactive approach in terms of searching for potential opportunities companies looking to grow, locate, drive innovation.