Posted on: 14 May 2015
Figures released today assessing the economic impact of the UK maritime services sector – including the shipping, ports and business services industries – have shown a stark decline in some areas of the maritime economy. The report shows that the UK is facing unprecedented competition from abroad as income, growth and employment moves elsewhere.
With 95% of our international trade being moved by sea, the strength and prosperity of the shipping and maritime industries are of huge importance to every aspect of our economy, including manufacturers, retailers and farmers.
The report, based on figures from 2013, shows the huge value of the shipping, ports and maritime business services industries to the UK economy:
– The industries’ combined direct contribution to GDP in 2013 totalled £9.9bn;
– 239,200 people were directly employed by the industry in 2013;
– The industries combined direct contribution to the exchequer was £2.5bn.
There have been clear signs of growth and stability in the ports sector- in which employment has risen – and in business services where there was a 15% increase in GDP since 2011 in real terms.
In addition the continued contribution of the sector to the economy of the whole of the UK is clear – with the industry supporting over 2% of all jobs in Scotland and making significant contributions to economies and employment across the regions of the UK including Northern Ireland and the North East of England.
However, the figures show that there has been a stark decline between 2011 and 2013:
– The overall direct contribution of the ports, shipping and maritime business services industries to GDP, fell by nearly £4bn between 2011 and 2013;
– The shipping sector contribution to GDP in particular fell from £5.6bn to £3bn, with direct employment falling by nearly 20,000 jobs.
The report findings suggest that declining activity in the shipping industry was compounded by increased leakage from the UK, as companies relied more heavily on imports and foreign services thereby reducing the amount of revenue that remains in the UK.
The Chairman of Maritime UK, Alderman The Lord Mountevans said: “The maritime sector has long been recognised as a critical part of the UK economy. The importance of the maritime industry to other sectors and businesses throughout the UK, and thus to the health of UK trade, should not be underestimated. The findings of this report require careful consideration from government, the maritime industries and indeed the wider economy. “If strong and decisive action is not taken then there is a great risk that a massive opportunity for economic growth could be lost.
“The commencement by government of the Maritime Growth Study reflects the increasing recognition within government of the huge economic importance of the industry for the country and offers a once-in-a-lifetime opportunity to address the challenges we face. If we get the review right, and are able to provide a more robust, competitive and commercial environment, then companies will invest, they will create jobs and they will grow our economy – the report requires that now, more than ever, we absolutely need to get it right.”
