public procurement: quantifying economic value in the north east adam wilkinsoncommissioned by one...
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Public Procurement: Quantifying economic value in the North East
Adam Wilkinson Commissioned by One North EastApril 2007
OBJECTIVES
Quantify total public procurement expenditure in the North East and broad inward/outward investment patterns.
Analyse current economic impact of this expenditure on participation levels, productivity levels, and regional GVA, and model a baseline trend to 2016
Develop a modelling profile to evaluate the potential economic impact of this expenditure to 2016
Carry out a gap analysis to identify the potential economic contribution of public procurement expenditure to achievement of the overall 2016 RES targets
1st May 20072 Adam Wilkinson www.beyondprofit.org/procurement
1st May 2007Adam Wilkinson www.beyondprofit.org/procurement3
Baseline impact on GVA
GVA £m Direct Other TotalPrimary industries 1.61 2.15 3.75Secondary industries 95.63 36.74 132.37Manufacturing 49.38 22.87 72.24Energy and water 75.40 74.52 149.92Construction 342.60 121.46 464.06Services 263.18 74.34 337.52Total 827.79 332.07 1159.86
Public sector directly accounts for £10.39 m or 30.2% of total GVA
Baseline Impact FTE
1st May 20074 Adam Wilkinson www.beyondprofit.org/procurement
FTE Created Direct Other TotalPrimary industries 123.99 162.56 286.94Secondary industries 2854.53 917.55 3772.87Manufacturing 1945.86 901.32 2847.18Energy and water 3360.50 3410.22 6771.11Construction 7522.22 2613.56 10135.38Services 9050.13 2736.76 11787.68Total 24857.22 10741.96 35601.17
Merged Baseline impact (DBS)
1st May 20075 Adam Wilkinson www.beyondprofit.org/procurement
IN ADDITION TO THE 261,000 ALREADY EMPLOYED (23.7%) WORKFORCE
Projection Public Sector budgetGVA £m Direct Other Total
Primary industries 0 0 0Secondary industries -3 -2 -5
Manufacturing -3 -1 -4Energy and water -4 -4 -7
Construction -17 -6 -23Services -14 -4 -17
Total -40 -16 -56
1st May 20076 Adam Wilkinson www.beyondprofit.org/procurement
3% reduction in public procurement spending 2008 – 2011. Then flat to 2016
1% annual increase in regional procurement sourcing
1st May 20077 Adam Wilkinson www.beyondprofit.org/procurement
Where are the opportunities ? Identify the strengths of the private sector in
the North East Strategic support to increase public sector
respend locally has measurable impact on the economy and RES objectives
Same approach has the probablility of strengthening the Regional ability to complete for national public procurement offering the double win.
Achieved only by joint working across all sectors of the economy.
1st May 2007Adam Wilkinson www.beyondprofit.org/procurement
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