Mersey Maritime - A driving force for the maritime industry on merseysideMersey Maritime - A driving force for the maritime industry on merseyside

Mersey Maritime publishes major report into economic impact of maritime sector in the Liverpool City Region

By Mersey Maritime

Chief Executive of Mersey Maritime, Chris Shirling-Rooke, writes:

At London International Shipping week in September, Maritime UK – the national body which brings together the UK’s shipping, ports, services, engineering and leisure marine industries – launched its ‘State of the Maritime Nation 2019’ report. This analysis highlighted the vital role the sector plays in the British economy with 95% of all trade facilitated by UK maritime; larger than both the automotive and aerospace transport industries. The sector also boasts high productivity and is a major contributor to the UK Exchequer. That’s the national picture but what about here in the Liverpool City Region (LCR)? For centuries maritime has been a major employer, with hundreds of maritime related businesses operating locally ranging from major corporations right through to small and medium sized enterprises. It stands to reason that this national context is replicated in our regional economy too?

Over the summer, Mersey Maritime, working with Maritime UK, commissioned a special report in partnership with the Centre for Economics and Business Research (Cebr) to ‘deep-dive’ into how the national impact is reflected at a regional level. Working closely with a range of businesses across the sector in our role as a regional cluster organisation, we already had a strong sense of the dynamism and vitality of the maritime offer here in the LCR but we were keen to know in more detail the actual figures that underpin this.

The findings have confirmed for us just how critical the sector is to the regional and national economy. The numbers are big, with:

  • 52,000 jobs supported across the sector in the LCR
  • An overall contribution of £4.2 billion to the UK economy in business turnover
  • Some of the most productive works in the country compared to the national average: £81,461 LCR maritime workers (Gross Value Added ‘GVA’ per employee) v £77,358 in the UK maritime sector / £54,330 in the economy nationally

But the good news doesn’t stop there. The forecast for growth is 16% cumulative between 2019 and 2023 – a real vote of confidence in the region and the commitment  of the people Mersey Maritime deal with on a day to day basis, our members.

Whilst the national picture might be uncertain at a political level with all the noise around Brexit, it is clear that maritime businesses here in the Liverpool City Region are getting on with what they do best: investing to bring the stability that comes from jobs and business growth locally. Mersey Maritime will continue to champion our sector and support all those who are making this success story happen.

You can read the full report here

Cebr report highlights – overall analysis covers the period 2010 to 2017:

  • The maritime sector in the Liverpool City Region (LCR) directly drove:
    • £2.0 billion in domestic output (through business turnover)
      • 2% of the overall UK maritime sector turnover contribution
      • An increase of approx. £1 billion compared to 2010
      • Total growth over the period of 118%
      • Marine engineering and scientific industry grew the most (158% increase between 2010 and 2017)
    • £650 million in Gross Value Added
    • 7,899 jobs in the LCR in 2017
  • Sector contributed £163million to the UK Exchequer in 2017 (up £80 million relative to 2010) – spread across VAT, Corporation Tax, Income Tax etc
  • For every £1 generated by the maritime sector in the LCR, the wider economy benefits by £2.64
  • Wider economic impact:
    • £4.2 billion in domestic output (through business turnover)
    • 52,000 jobs (direct jobs supported = 7,900 / Indirect (supply-chain) = 27,300 / Induced (wider-spending) = 16,800)
    • £570 million through the compensation of employees in 2017
  • Every job generated by the maritime sector in the LCR, a total of 6.57 jobs supported in the wider LCR/UK economy
  • A growing sector for the LCR: growth forecast for 2019-2023: 16% cumulative

 

Mersey Maritime
About Mersey Maritime
Mersey Maritime is the representative body for the Maritime Sector and related industry sectors operating across the Liverpool City Region. We work with businesses of all sizes and in all locations to develop strong, market-responsive supply chains and promote Liverpool’s maritime industry as a world class Centre of Excellence.

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Mersey Maritime publishes major report into economic impact of maritime sector in the Liverpool City Region