Report demonstrates vital importance of Trains, Planes and Automobiles for Derby’s future prosperi

A new report, entitled Planes, Trains and Automobiles, has highlighted the scale and importance of the aerospace, automotive and railway industries to Derby and the wider region.

The report was commissioned by East Midlands Development Agency (emda), Derby City Council and Derbyshire and Nottinghamshire Chamber of Commerce. The aim was to identify in detail, the specific strengths and weaknesses, opportunities and threats in each sector and to assess the interrelationships between each industry.

The report suggests that these three sectors directly employ over 32,000 people through major employers such as Rolls-Royce, Bombardier, Toyota and others.  However, when employment through the supply chain serving these industries is included, the total number of people employed is some 46,000.  It is also estimated that the supply chain in these sectors accounts for more than £10.3 billion of economic output and over 36% of all employment in Derby.

In predicting what might happen in future in the sectors, the research forecasts that there could be a growth in employment by 2019, particularly in the train sector where a growth of 9.3% is estimated, but increasing by up to 66% in a best case scenario.

The automobile sector in Derbyshire is forecasting growth of around 5.9%, rising to almost 22% in the most optimistic predictions. In the aerospace sector, it is anticipated that there may be a slight reduction in employment by 2019, down 3.4%.

However, the report also advises that Derby and the region shouldn't be complacent about the presence of these industries and predicts that in a worst case, long-term scenario, employment could decline if not supported, most significantly in the train sector.

It also highlights that businesses in these sectors tend to suffer, unfairly, from a poor image.  This is having a noticeable impact on the number of skilled young people who are seeking careers in these sectors.  The report recommends that the future manufacturing workforce needs to be educated to understand the breadth of opportunities in these sectors and should be encouraged to train for careers in them.

As part of the research, the report has also identified the relative specific strengths and weaknesses of each sector, along with potential opportunities and threats.  This will help businesses in each sector, to become more aware of the issues that they need to address, as well as identifying new opportunities to develop and grow their markets.

Speaking about the Planes, Trains and Automobiles research, Dr. Bryan Jackson, Chairman of emda, said: "The railway, aerospace and automotive industries are crucial to the economy of Derby, where they employ such a large proportion of the city's workforce.

"Derby has developed a global reputation for its work in all of these sectors and is home to major world class businesses in each case, such as Rolls-Royce, Bombardier and, a company that I am very familiar with, Toyota.  This report has highlighted that there is the potential for further growth in all sectors.  However, it also shows that it is important that we must not be complacent, as there are potentially serious threats that need to be monitored and addressed if necessary.

"Despite this, I am confident that with the unique strengths we have in these sectors, our businesses will continue to grow, developing ever more innovative products and creating new jobs and wealth for Derby and the East Midlands."  

Councillor Hilary Jones, Leader of Derby City Council said: "We value the contribution that the rail, aerospace and automotive sectors bring to the Derby economy through investment and jobs for local people.  We have established good relationships with many of the major businesses in Derby and provide support to them in a number of ways.  This research does give us some useful recommendations about other things we could do, in partnership with emda, the Chamber and others, to retain the wealth that these sectors bring to Derby."

Richard Wilkins, President of Derbyshire and Nottinghamshire Chamber of Commerce said: "Innovations in transportation will play a vital role in creating a sustainable future for the world's economy and climate. 

"In Derbyshire, we have a number of major businesses with the potential to develop and manufacture innovative new solutions which can reduce the cost, journey times and environmental impact of these different modes of transport.

"We will, however, need to invest in skills and provide support to these key businesses and their supply chains to enable Derbyshire to lead the way in these sectors."        

For further information please contact Nick King Media and PR Manager on 0115 988 8375; email: nickking@emd.org.uk  


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