Data for the LLEP’s latest sector profiles has been gathered and published for fifteen key sectors of interest. These reflect Leicestershire’s diversity as well as Government priorities such as science and technology, innovation, and the green agenda.
The Leicester and Leicestershire economy is diverse, with representation across a variety of sectors. Traditional strengths such as manufacturing and logistics exist alongside high-growth areas like space and low carbon.
The sectors were chosen based on their relative size and importance to the economy of Leicester and Leicestershire. The intelligence gathered has been used to develop the LLEP’s longer term Economic Growth Strategy and will inform future investment opportunities.
The outlook for all sectors has shifted since the start of the Covid-19 pandemic. The research aimed to better understand the impact of both Covid-19 and EU Exit across key sectors in the county and what the future could look like in the short, medium and longer term.
These new sector profiles also look at economic and growth indicators and future skills challenges.
Logistics is one sector that bucked the trend during the strict lockdowns. With the exception of air travel, the sector saw a boost in activity due to an increase in online orders.
Leicester and Leicestershire supports some well-established and fast-growing specialisms in logistics, particularly relating to goods handling, storage and distribution, with some 3,835 businesses, 38,000 jobs and the potential to create another 2,700 jobs by 2030.
The sector is expected to be at the forefront of the recovery, with post-Covid rates of growth (2.6% p.a.) faster than the economy average (2.0%).
In contrast, the impact of Covid-19 on the tourism and hospitality sector has been significant, closing borders and international transport links, restricting international and domestic visitors and the closing of accommodation, hospitality venues, and attractions and limiting household travel.
The sector in Leicester and Leicestershire is underpinned by 4,400 businesses and 48,300 jobs. The value of the sector is expected to contract more than any other sector in Leicestershire due to the impact of Covid-19 – by approximately 25% – equating to losses of £310m to the local economy.
Now recovery is underway though, the tourism and hospitality sector has the potential to rebound with £390m of growth by 2030, aided by a staycation boom and pent-up consumer demand. In fact, growth throughout the 2020’s (3.7% p.a.) is expected to be the fastest of any sector, and almost twice the economy average (2.1% p.a.). Yet given the scale of the initial impact, it could still be 6-7 years until the sector recovers to pre-Covid levels.
The fifteen sectors of interest are:
- Advance Manufacturing and Engineering
- Aerospace and satellite technology
- Agri-food and drink
- Construction and development
- Creative and cultural
- Digital tech and communications
- Health and social care
- Life sciences and bio tech
- Logistics and distribution
- Low Carbon
- Professional & Financial Services
- Retail and wholesale
- Sport and physical activity
- Textile and fashion
- Tourism and Hospitality
Kevin Harris, Chair of the LLEP Board of Directors, said:
“An understanding of our key sectors is central to the LLEP’s Economic Growth Strategy as we move forward.
“We recognise that although all sectors have been affected by Covid-19 and Brexit, the impact on each differs substantially.
“It is important to gather sector intelligence to know where there are opportunities for growth or where there will be significant future demand so that we can support businesses appropriately.
“We also need to understand future occupational skills needs across sectors so that we can prepare young people leaving school, college and university to gain the right qualifications, work experience and skills needed for jobs in the coming decades.”
View the new Sector Profiles here