GLASGOW ECONOMIC REVIEW
SPECIAL EDITION
NOVEMBER 2010
Headline Sponsor
13TH ANNUAL
STATE OF THE CITY ECONOMY
CONFERENCE
CONTENTS
Introduction by Gordon Matheson
1
Development Activity by Gerry Gormal Investing in Growth by Stuart Patrick
2
Glasgow Office Market by Ewan Cameron
6
Tourism by Scott Taylor
8
4
2014 Commonwealth Games by John Scott
10
Glasgow Economic/Labour Market Indicators
12
Glasgow Airport by Amanda McMillan
15
Monthly Newsgrid
16
Partnership Working Builds Opportunities for Growth
by Jill Farrell
20
City Centre Retail by Jane Harrison
21
Disclaimer: Although every effort has been made to ensure that the information
contained in this publication is correct at the time of issue, Glasgow City Council
cannot accept liablity for any errors or omissions, or the consequences thereof.
Produced by Development and Regeneration Services, Glasgow City Council. Phone 0141 287 8555 Fax 0142 287 8444 Email [email protected]
INTRODUCTION
In the last edition of the Glasgow
Economic Review, I talked about the
many benefits that the Glasgow 2014
Commonwealth Games were bringing
and would continue to bring to the city.
Key
Regeneration
Areas
Metropolitan Growth
Corridor
Strategic Growth
Corridor
As you will all now know, the Games
are a step closer after a fantastic Flag
Handover ceremony in Delhi, which
showcased in some style what Glasgow
and Scotland can do.
That inspirational performance reminds
us that we must take advantage of this
unique opportunity to provide a platform
of future prosperity for our people and
businesses. For those who haven’t done
so, it is time to join more than 12,000
companies who have registered on the
Commonwealth Games Business Portal
to ensure that they have a chance to bid
for Games-related contracts.
I do not intend to dwell on the shortterm prospects for the public sector,
but the spending reviews of both the
Westminster and Holyrood governments
will undoubtedly mean a few challenging
years for local authorities and other
public bodies. This merely underlines
the importance of a strong partnership
between the public and private spheres
of the economy.
This is the key theme of this edition of
the Glasgow Economic Review - the
importance of partnership working
between both sectors, as advocated by
Glasgow City Council, Glasgow Chamber
of Commerce, Glasgow City Marketing
Bureau and Scottish Enterprise.
Even in these difficult times, this
partnership continues to deliver good
news for the city, and a significant
number of recent announcements from
major employers such as Barclays,
ScottishPower, esure, Scottish and
Southern Energy and Tesco Bank have
told us that the city will attract thousands
of new jobs.
I am sure that this trend will continue
over the next few years, as the city’s now
extremely diverse economy is well placed
to take advantage of economic recovery
over the next few years.
1
GORDON MATHESON
LEADER
GLASGOW CITY COUNCIL
THE SPENDING
REVIEWS OF BOTH THE
WESTMINSTER AND
HOLYROOD GOVERNMENTS
WILL UNDOUBTEDLY MEAN
A FEW CHALLENGING
YEARS FOR LOCAL
AUTHORITIES AND OTHER
PUBLIC BODIES......
THIS MERELY UNDERLINES
THE IMPORTANCE OF A
STRONG PARTNERSHIP
BETWEEN THE PUBLIC AND
PRIVATE SPHERES OF THE
ECONOMY.
PRIVATE SECTOR DEVELOPMENT ACTIVITY
GERRY GORMAL
DIRECTOR
DEVELOPMENT & REGENERATION
SERVICES
GLASGOW CITY COUNCIL
Investment by the City’s development
industry of around £3.84 billion
represents a considerable achievement
in challenging economic circumstances.
Most sectors recorded an increase in the
value of completed development activity
in 2009-10, although this was balanced to
an extent by the fall of £328 million in the
value of residential development. The
drop in the scale of pipeline projects in
most sectors also contributed to the fall of
£110 million in the value of development
activity in Glasgow as a whole. These
figures illustrate the impact that wider
economic factors are having on the
development industry, and are likely to be
typical for the short term.
Given an improvement in the national
economic outlook, the City is in a
competitive position to benefit from
both an upturn in new development
applications, and the implementation
of a number of proposals with current
planning permission.
ONCE THE CURRENT
ECONOMIC CONDITIONS
BECOME MORE
FAVOURABLE, THE CITY
IS IN A COMPETITIVE
POSITION TO BENEFIT
FROM BOTH AN UPTURN
IN NEW DEVELOPMENT
APPLICATIONS, AND THE
IMPLEMENTATION OF A
NUMBER OF PROPOSALS
WITH CURRENT PLANNING
PERMISSION.
Private Sector Development
Activity
The total value of private sector
development activity in Glasgow
was around £3.84 billion in 2009-10,
compared with £3.95 billion in
2008-09. This reduction in values, of
2.8%, is relatively small compared to last
year’s position, where an 8.7% decrease
was recorded.
Development Status
a 16% increase in the value of
projects completed (from £426.4
million in 2008-09 to £496.5 million
in 2009-10;
a 9% decrease in the value of
projects under construction (from
£792.6 million in 2008-09 to £720.3
million in 2009-10);
a 60% decrease in the value
of projects granted planning
permission in the analysis period
(from £885.8 million in 2008-09 to
£350.4 million in 2009-10); and
a 23% increase in the value of
projects granted planning permission
before the analysis period, but not
implemented (from £1851.6 million
in 2008-09 to £2278.5 million in
2009-10).
Development Sectors
The retail sector experienced
improvement in the value of development
activity in 2009-10, with an increase of
£42.2 million to £649.8 million. This
figure can be partly attributed to a £109
million rise in the value of completed
developments, most of which is
accounted for by the completion of the
£100 million St Enoch Centre
re-development. There is around £500
million of development with planning
permission, of which £400 million relates
to the Buchanan Galleries extension.
This figure has changed little since
2008-09, reflecting a degree of caution in
this sector.
A more detailed examination of the
overall value of development activity
reveals the following:
Total Value of Development Activity by Status 2008/09 to 2009/10
(£m)
2500
2008/09
2009/10
2000
2278.5
1851.6
1500
1000
500
0
792.6
426.4
720.3
885.8
496.5
350.4
Complete
2
Under Construction
Planning Permission
Analysis Period
Planning Permission Pre
Analysis Period
development at Atlantic Quay, within the
International Financial Services District.
Overall, however, this sector showed a
decline in 2009-10, due primarily to the
value of developments under construction
and of those granted planning
permission, both significantly down on the
previous financial year. The lower level
of development in the pipeline suggests
that continued improvement in the value
of completed developments in this sector
may not be sustained in 2010-11.
RIVERSIDE MUSEUM
The economic downturn has had a
significant effect on the residential
sector in the last two years, with an
overall fall of £328 million in the value
of development in 2009-10 alone. The
sector still provides the largest share
of development value in Glasgow,
with £1.9 billion (48% of the City total)
invested in residential development in
2009-10. Some major sites completed in
2009-10, such as the first phases of the
developments at Glasgow Harbour and
Parkhouse Road, South Nitshill.
The short term outlook for this sector
is uncertain, however, with lending
restrictions to both developers and
house buyers continuing to impact on
the housing market. This is evident
in all aspects of this sector, with the
value of: (a) completed development,
(b) development under construction,
and (c) development granted planning
permission, all considerably lower than in
2008-09.
NATIONAL INDOOR SPORTS ARENA
Figures for the hotel and leisure sector
comprise the value of development
by both public and private bodies,
reflecting the investment that the City
Council is making to leisure facilities,
particularly as the Commonwealth
Games approaches. Consequently, this
sector has experienced a 100% increase
in the overall value of development, from
£304 million in 2008-09 to £611 million in
2009-10. Most of this increase (around
£250m) has been driven by projects that
are currently on site, such as the National
Indoor Sports Arena and Velodrome and
the Riverside Museum. The completion
of the £10 million Blythswood Square
hotel is also an indication of the private
hotel sector’s confidence in Glasgow as a
travel destination.
The value of development in the
industrial sector has declined from
£62.8 million in 2008-09 to £48.2 million
in 2009-10. This figure breaks a trend of
relatively consistent performance in this
sector of around £60 million annually,
since 2006/07. Glasgow Business Park
continues to attract investment, with £4.4
million of development completed in
2009-10. The lower levels of floorspace
completed, under construction and with
planning permission are, nevertheless,
likely to be a reflection of the general
economic outlook.
In the office sector, the year on year
improvement in the value of completed
developments that has been evident
since 2002-03 continued in 2009-10 with
a £21.5 million increase to £112.9 million.
Notable developments that completed
this year include 17,500 square metres of
floorspace at 1 George Square (valued
at £24 million) and the £15 million office
3
The City Centre and Clyde Waterfront
are key locations in Glasgow’s economic
regeneration, accounting for around
£2.8 billion in development value (or
about 73% of the City’s total value). The
retail and office sectors dominate in the
City Centre, with around £200 million
of development completed in 2009-10.
Relatively little additional floorspace is
under construction or newly consented
in the City Centre, however, reflecting
a cautious approach to the current
economic circumstances.
The regeneration of the Clyde
Waterfront has largely been driven, in
recent years, by residential development
and, to a lesser extent, office and
industrial development. The slowdown
in these markets has, inevitably, had
a significant impact on activity in this
location, although construction at the
Riverside Museum has helped to sustain
a slight improvement on the 2008-09
figures overall.
INVESTING IN GROWTH
As we focus once more on the progress
Glasgow has made in the past year the
fashion for superlatives hasn’t yet faded.
We are still recovering from the worst
financial crisis since the thirties! We
are faced with the most severe public
spending cuts since the Geddes cuts in
the 1920’s! Life will never be quite the
same again!
STUART PATRICK
CHIEF EXECUTIVE
GLASGOW CHAMBER OF
COMMERCE
THERE IS A SHARED
UNDERSTANDING
BETWEEN PUBLIC
AND PRIVATE SECTOR
PARTNERS OF
THE IMPORTANCE
OF ECONOMIC
DEVELOPMENT
IT IS NOW RIGHT THAT
WE TAKE A GOOD LOOK
AT THE ECONOMIC
STRATEGY WE HAVE
LAID OUT FOR THE CITY,
HOW WELL THE CITY IS
HOLDING UP AND WHAT
WE NOW NEED TO DO TO
MAKE SURE THE CITY
RECOVERS SWIFTLY
FROM THE RECESSION.
.....
No doubt we are living through - or better
perhaps, enduring - a dramatic phase
in our economic history and perhaps
it is important to set the experience in
context. But you can only maintain the
frenzy of comparison for so long before
it wears you out. As I write this, the
most recent reports of economic activity
are at best sluggish and the impact of
impending spending cuts on consumer
confidence is a nagging worry. I am
certainly aware of many companies in
retail, in construction and in business
services for whom the brighter times
have yet to appear. Unemployment is
up and, once again with the superlatives
in action - Glasgow’s record of very high
rates of worklessness is being highlighted
as evidence that the city is on the slide.
Well, Glasgow is not on the slide - there
is successful business being done right
across the city and the basic structure
of Glasgow’s economy is proving much
more robust than it did thirty years ago.
We do though have to keep investing for
growth.
Obviously we couldn’t expect Glasgow
to avoid the impact of the recession nor
the coalition government’s subsequent
budget decisions. Nor could we
expect that the resilience of Glasgow’s
transformation would remain untested.
Two years after the financial crisis
reached its climax it is now right that we
4
take a good look at the economic strategy
we have laid out for the city, how well
the city is holding up and what we now
need to do to make sure the city recovers
swiftly from the recession. Glasgow
Chamber of Commerce wholeheartedly
supports the decision taken by the
Glasgow Economic Partnership to
encourage an independent assessment
of our economic strategy. It will be
one of the milestones in Glasgow’s
transformation.
And it is worth remembering just
how much of a transformation there
has been. I recently re-read Sydney
Checkland’s The Upas Tree - published
in 1982 covering the economic history
of Glasgow from 1875 through to
1981. Checkland used the upas tree
- shedding poison so that nothing can
grow beneath it - to symbolise the impact
of heavy engineering on Glasgow and
the disasterous consequences of its
competitive decline. Reading the book
back in the eighties was a relentlessly
gloomy experience. Thirty years on
there is a much better story to tell about
Glasgow’s economic journey.
Glasgow is a much more diverse
economy for sure. Elsewhere in the
Review you will find updates on the city’s
successes in tourism - with conference
business helping to keep hotels busy and
indeed with two further hotels - Citizen
M and the Grand Central - opening in
the last quarter. You’ll no doubt have
gathered too that the International
Financial Services District is holding up
well despite the turmoil in banking with a
positive announcement from Barclays this
quarter to add to those from Tesco Bank
and from esure in previous quarters.
Indeed, esure has been especially
valuable in providing employment options
for those who lost jobs in the one major
loss the IFSD has suffered since the
recession began. Retail too has much
good news to tell through the tough times
with new brands arriving in the city and
the major investments at St Enoch - now
delivered - and Buchanan Galleries - in
planning - helping to keep Glasgow’s
style mile at the number 2 position in
the UK’s retail league tables. In energy,
we see a steady stream of positive
announcements coming from the big
players - from ScottishPower through
its renewables division and through
Scottish and Southern Energy picking
up much of One Waterloo Street for its
new base in Glasgow. Construction has
been having much tougher times but
the pipeline of major public investments
does at least provide a bedrock of work
- the Riverside Museum, the M74, the
New South Glasgow Hospital, the City
of Glasgow College supercampus, the
Commonwealth Games venues - and
Glasgow Housing Association’s £1.2
billion investment programme steadily
continues to deliver.
But perhaps the most cheering news
comes from engineering. Peter
Hughes at Scottish Engineering
has been bouncing about with very
positive messages about the growth of
engineering business over the past two
quarters. Perhaps we have been less
attentive to the importance of engineering
in Glasgow than we should have been.
And perhaps that’s been an unintended
side effect of the Upas Tree analysis.
The list of companies now doing well
in overseas markets - CLYDEUNION
Pumps, Weir Group, Howden, Aggreko,
Thales, Wood Group - is hugely
encouraging and I was especially pleased
that this year’s Glasgow Business Award
for the best performing of our larger
companies went to CLYDEUNION and
that with Howden winning the same
award last year, we have had engineering
companies topping our lists for two years
in a row.
In a passing conversation with Jim
McDonald, the principal of Strathclyde
University, we reflected on the scale of
our engineering presence. Jim could
come up with at least 6,000 qualified
engineers working in and around
Glasgow without really trying. That’s a
huge stock of talent and it’s especially
important that we nurture that talent when
our economic future is more dependent
now on exports than ever. With the
public sector budgets under pressure
and with consumers still reshaping
their household finances, exports are
essential for generating faster economic
growth. That’s why Glasgow Chamber
of Commerce have joined with Scottish
Chamber International (SCI) in increasing
our support for companies looking to
increase their overseas business. We
have seen at the Chamber a very
healthy recovery in the city’s
exports through our work on export
documentation - with both engineering
and whisky being important. We want
to use SCI’s Smart Exporter advisory
programme to keep that recovery
growing.
It’s also because we want to see our
overseas business improve that we’ve
been arguing to protect investment in
transport infrastructure. We believe
that we should reintroduce Route
Development Funding to pump prime
new direct flight options from Glasgow
Airport. We fought for the Glasgow
Airport Rail Link. We believe there
should be investment plans in the West
Coast Main Line to increase capacity at
peak times and to reduce journey times.
In the longer term we expect to see High
Speed Rail coming to Scotland. These
are all important elements of a modern
network of international and national
communications. Together with
The Herald and with excellent support
from Neil Amner at Biggart Baillie LLP
and Mark Savelli at First Group we held
our first Annual Transport Summit to
develop the arguments.
5
Not that there’s anything hugely new in
this. Read the last report of Glasgow
Action - the body formed three years
after the Upas Tree was published to
inject private sector leadership into
the city’s recovery strategy - and you’ll
find the basic arguments for what
needed to be done in Glasgow. Make
Glasgow more attractive as a business
base. Make Glasgow more attractive
to people to visit, to work and to stay.
Create an entrepreneurial environment.
Promote Glasgow. These have been
the basic messages that still influence
Glasgow’s strategy today and where the
Commonwealth Games will now make
its contribution to the city’s
transformation.
Compare Glasgow now, even in the
depths of the worst financial crisis in
80 years, with the city that Glasgow
Action began tackling twenty five years
ago. The transformation is not complete
but it is very well advanced. The city
is commercially more robust and there
is a shared understanding between
public and private sector partners of the
importance that economic development
will play in tackling the issues that
remain. The independent assessment
of our economic strategy follows similar
milestones from McKinsey & Company
in 1983 through to the OECD in 2002.
In each case they have refreshed and
re-energised our passion for investing in
Glasgow’s success. I expect the same
again and I know the city will respond as
enthusiastically as ever.
GLASGOW OFFICE MARKET
Ongoing concerns and uncertainty
regarding the extent of the impact of the
"austerity measures" facing the public
sector cast a shadow over the office
sector throughout the UK but compared
to comparator cities, the Glasgow market
continues to show encouraging resilience
and is performing well.
EWAN CAMERON
REGIONAL MANAGING PARTNER
RYDEN (GLASGOW)
ONGOING CONCERNS AND
UNCERTAINTY REGARDING
THE EXTENT OF THE
IMPACT OF THE 'AUSTERITY
MEASURES' FACING THE
PUBLIC SECTOR CAST A
SHADOW OVER THE OFFICE
SECTOR THROUGHOUT
THE UK BUT COMPARED
TO COMPARATOR CITIES,
THE GLASGOW MARKET
CONTINUES TO SHOW
ENCOURAGING RESILIENCE
AND IS PERFORMING WELL.
The main feature of the market is the lack
of any new build pipeline development.
The supply of new Grade A space in the
city is being further eroded by healthy
take-up, with several anticipated lettings/
acquisitions having concluded over the
last six months. Maclay Murray & Spens
and Ernst & Young have taken
3,607 sq m and 1,906 sq m respectively
at G1, George Square, with strong
interest rumoured in the remaining
3,715 sq m; NFUM purchased the 7,154
sq m Clarion, Wellington Street for owner
occupation and will occupy the majority in
the renamed Centenary House, releasing
c.2,183 sq m back to the market for
lease; Scottish & Southern Energy has
purchased One Waterloo Street, 5,467
sq m for owner occupation, within which
CBRE has already leased 560 sq m;
Strathclyde Pension Fund has taken
1,034 sq m at Capella, York Street; and
i2Offices Limited is to operate a business
centre of 1,477 sq m at 2 West Regent
Street.
There has also been increased activity
in the refurbished and quality end of the
second hand market, with Towergate
Insurance taking 1,009 sq m at 150 St
Vincent Street, RSA taking 2,798 sq m
at BT's Alexander Bain House in the
Broomielaw, Cunningham Lindsey and
Ove Arup leasing 1,970 sq m and 716
sq m respectively at 225 Bath Street and
Hudsons Global Resources taking
950 sq m at 130 St Vincent Street.
market churn has resulted in total take-up
over the last 6 months at 42,405 sq m.
This is an increase of c.75% over the
previous 6 month period, producing a 12
month total of 66,676 sq m, c.18% up on
the same period last year.
The recent burst of activity from large
scale occupiers was anticipated, as a
number of the enquiries which have gone
on to take space had been in the market
for some time. While this level of take-up
will not be sustained over the coming
months, there are nevertheless a range
of enquiries which have short listed to
preferred properties and will proceed to
take space over the next 6-12 months,
thereby further reducing availability of
Grade A and B stock. For example, there
are presently only 4 new build properties
that can offer floorplates over 929 sq m
and only two of these, G1 George Square
and Cuprum, can offer floorplates over
1,394 sq m.
Choice is therefore becoming more
limited, particularly for those parties
seeking floorplates above 929 sq m
and occupiers who need space are
likely to have to consider second hand
accommodation released to the market
such as BT's Alexander Bain House,
Broomielaw. Owners will also be looking
at refurbishing buildings and vacant
space within properties to bring product
to the market to fill the gap left by the lack
of new build development over the next
2-3 years.
Activity at the smaller end of the market
has also picked up over the last 6
months, as local indigenous companies
have sought to take advantage of their
forthcoming break options and/or lease
expiries to "trade up" to higher quality
premises on the back of very attractive
terms being offered by developers and
landlords in this highly competitive sector
of the market.
This activity, combined with general
6
ONE WATERLOO STREET
While there is a pending shortage of
supply within the Grade A sector, there
has been a relatively modest increase
(6%) in total availability of office premises
in the wider city area over the last six
months (14% over the last 12 months) to
337,661 sq m, producing vacancy rates
of 18% (city-wide) and 15% (city centre)
respectively.
Clyde Gateway is also actively offering
design and build and pre-let/sale options
on a variety of sites. Land assembly
continues and the M74 completion
(which is ahead of schedule) allied to the
East End Regeneration route linking
the M74 to the M8 will present a wide
range of cross sector development
options.
Prime rental in the city centre peaked
at around £305 per sq m. This may still
be achieved for the best space on larger
floorplates where there is relatively little
supply. Sentiment is that prime rental for
the wider Grade A market is in the range
£269 - £291 per sq m. Discounted rents
will remain available for buildings that
face wider competition. Rents for top
quality refurbished space are within the
range £185 - £231 per sq m but will be
under pressure from an increasing supply
of good quality second hand space as
this becomes released to the market.
Incentive levels remain very aggressive
but with reducing supply at the top end of
the market where rental levels have now
stabilised, incentives will reduce for the
best space over the next 6- 12 months.
The trick as ever is timing. Despite the
economic uncertainty, there is underlying
demand from indigenous companies
through lease break and expiry which,
linked to new activity from larger
corporates as the economy recovers,
presents developers who can trigger
development with the opportunity of
taking advantage of the gap in the new
build market going forward.
There has been limited letting activity
on Glasgow's peripheral business
parks. Small suites have been taken at
Watermark, Govan; Junction 24, Govan;
Craighall, Port Dundas and Centurion
Business Park, Kinning Park. The Arc at
Hillington has secured a range of lettings
to Ceridian Centrefile Limited, FES and
NES and The Hub at Pacific Quay is
now over 60% let, having attracted a
further six lettings to small media related
companies on flexible leases over the
last six months.
Rents for good quality, non-cooled
business park space around Glasgow are
£140 - £166 per sq m, and for comfort
cooled space £166 - £183 per sq m
(inclusive of car parking).
Glasgow's URC at Clyde Gateway
continues to make progress with
development activity at Brook Street
to provide 6,000 sq m for Glasgow
Community and Safety Services and
1,500 sq m within each of two business
centres at Rutherglen and Bridgeton
Cross.
CLARION, WELLINGTON STREET,
GLASGOW (RENAMED CENTENARY)
Supply, Take-up and Rent of Offices in Glasgow
Notable Office Transactions Concluded in Glasgow
12 Months to end September 2010
Address
Size
Occupier
Clarion, Wellington Street
7,154 sq m
NFU Mutual
141 Bothwell Street
5,685 sq m
Shell
1,630 sq m
BNP Paribas
5,476 sq m
Scottish & Southern Energy
560 sq m
CBRE
3,607 sq m
Maclay Murray & Spens
One Waterloo Street
G1, George Square
1,906 sq m
Ernst & Young
Alexander Bain House, York Street
2,798 sq m
Royal & Sun Alliance
225 Bath Street
1,970 sq m
Cunningham Lindsey
716 sq m
Ove Arup
Capella, York Street
1,034 sq m
Strathclyde Pension Fund
150 St Vincent Street
1,009 sq m
Towergate Insurance
130 St Vincent Street
950 sq m
Hudson Global Resources
7
LEADING GLASGOW’S ECONOMIC FIGHTBACK
Glasgow continues to prove its resilience
in the face of current economic conditions
through focusing on the diversity of its
appeal as a host city for major sporting
and cultural events, international
conferences and as a leading short break
destination.
SCOTT TAYLOR
CHIEF EXECUTIVE
GLASGOW CITY MARKETING
BUREAU
THESE ARE
UNDOUBTEDLY
CHALLENGING TIMES
BUT GLASGOW
CONTINUES TO
DEMONSTRATE A
LEVEL OF ECONOMIC
TOUGHNESS AND
APPETITE FOR
COMMERCIAL SUCCESS,
WHICH COMBINED WITH
COMMITTED PRIVATE/
PUBLIC SECTOR
PARTNERSHIP WILL
ENSURE THAT THE
CITY’S MOMENTUM
DOES NOT FALTER AND
THAT IT CONTINUES
ON AN UPWARD - AND
WINNING - TRAJECTORY.
Statistics from STR (Deloitte) Global’s
monthly UK hotel trends report for August
show that hotel bookings in Glasgow
continued to outperform many of its
major European competitors including
Amsterdam, Hamburg, Barcelona,
Vienna, Dublin, Paris, Rome, Prague and
Copenhagen.
This upward trend continued with the
PKF report on monthly UK hotel trends
for August highlighting that Glasgow
enjoyed the highest year-to-date
occupancy of any Scottish city - the first
time ever in its history. The Lynn Jones
Forecaster meanwhile, which has the
biggest survey sample size of hotels,
showed that Glasgow hotel occupancy
to 30 September had grown to 87% - an
increase of 6% on September 2009.
This represents the highest September
occupancy for Glasgow in more than a
decade and the highest number of rooms
ever on sale in the city.
Between November 2009 and 2011,
more than 850 new hotel rooms will
have appeared in Glasgow, including:
Blythswood Square, Indigo, Jurys, Grand
Central, Grasshoppers and citizenM,
which chose Glasgow as the location for
its first hotel outside Amsterdam.
Robin Chadha, Head of Brand at citizenM
sums up the city’s appeal: “Glasgow
ticked all the boxes. As well as being
the number one conference city outside
London, and the UK’s second retail
city, we were struck by the amount of
motivated people working for the city
and the Glasgow: Scotland with style
branding works well with us. The attitude
of Glasgow is in line with our own style.”
September also saw Glasgow showcase
the city’s event credentials to three very
different global audiences when the
Papal Visit, World Parkinson Congress
and MTV Crashes…Glasgow all took
place within the same month.
MTV Crashes…Glasgow was secured
by GCMB - in partnership with
EventScotland - and saw global superstar
P. Diddy’s new collective Diddy - Dirty
8
Money perform at the Old Fruitmarket on
29 September.
The exclusive, free show was filmed as
an MTV Worldstage event and broadcast
via MTV channels in 161 countries and to
over 640 million households in October
as part of its global Friday night live
music programming giving Glasgow huge
international exposure.
As Kerry Taylor, Senior Vice President
Content & Creative, MTV Networks UK
& Ireland says: “Glasgow was the ideal
destination for MTV Crashes...
The city’s legendary venues and thriving
music scene have already led to Glasgow
being hailed as ‘Europe’s secret capital
of music’ by Time Out. Combining that
with the unprecedented kudos that the
MTV brand delivers made this a gig to
remember!”
On the conventions side, GCMB
worked in close partnership with World
Parkinson Congress (WPC) and the
conference organiser Congrex to offer a
bespoke public relations and marketing
strategy to help drive delegate numbers
and increase global awareness of the
congress, which was being held outside
the US for the first time.
Activity included GCMB’s production
of a bespoke Glasgow city guide app
for delegates attending the conference
and a WPC promotional film, which was
distributed via social media platforms
such as YouTube and Facebook and
appeared as a permanent feature on the
homepage of the Congress website.
The film featured ‘talking heads’ of
internationally renowned academics,
researchers and people living with
Parkinson’s who detailed the key reasons
to attend this World Congress.
Commenting on the conference’s
success Eli Pollard, Congress Manager
- World Parkinson Congress said:
"Glasgow was amazingly welcoming to
us and had the resources we needed.
The SECC was a great centre and we
knew its technology would meet our
requirements. Glasgow City Marketing
Bureau offered help with promoting World
Parkinson Congress within the city and
also offered us PR resources to promote
our meeting beyond the local region. You
don't always get that support from cities
- particularly with larger ones. GCMB
worked harder than other cities and really
wanted our business."
Other major conferences being hosted in
the city over the coming months include:
10th International Congress on
Drug Therapy in HIV Infection in
November (£5.8 million).
UK Stroke Forum in December (£2.4
million).
Social Brain 3 in March 2011 (£1.7
million).
World Council of Credit Unions in
July 2011 (£4.2 million).
Arts Marketing Association in July
2011 (£0.7 million).
International Continence Society in
August 2011 (£5.5 million).
15th Congress of the European
Society for Organ Transplantation in
September 2011 (£6.5 million).
Royal College of Physicians and
Surgeons of Glasgow in November
2011 (£0.8 million).
Conventions aside, Glasgow was named
the winner for marketing sporting events
in the 2010 world league of ultimate
sports cities following an industry analysis
of sports cities globally for SportBusiness,
the leading monthly magazine for the
business of sport.
Criteria for ranking included the number
of annual sports events held, major
events held or hosting rights secured
between 2006 and 2014, numbers of
federations hosted, facilities/venues,
transport, accommodation, government
support, security, legacy, public sports
interest and quality of life.
The importance of attracting major
sporting events to the city is exemplified
by the 2010 World Irish Dancing
Championships, which were held at
Glasgow Royal Concert Hall in April and
attracted 14,803 unique visitors who
generated £12.1 million in local economic
benefit.
Route Development
Glasgow Airport is of strategic importance
to the city’s economy, and no more so
than in the tourism sector. The growth
of direct flights to Glasgow continues to
open up new markets for short breaks to
the city while increased access is a key
driver in attracting greater numbers of
delegates to the conferences that meet
here.
GCMB continues to work closely
with Glasgow Airport to develop
and implement joint marketing
communications activity to support
the airline’s new in-bound services to
Glasgow and maximise local economic
benefit opportunities.
A major part of this activity saw GCMB
collaborating with Glasgow Airport on the
production of their new sales brochure
Imagine Scotland. See Glasgow, which
was launched at September’s World
Route Development Forum in Vancouver.
From March 2011 meanwhile, budget
airline Jet2.com will begin flying to
Glasgow Airport from nine destinations
including Nice on the Côte d’Azur. The
southern French city also lies in close
proximity to the vast technology park of
Sophia Antipolis, which presents Glasgow
companies with potential new business
and research opportunities.
The French visitor market is currently
ranked 5th in the annual league table of
overseas visitors to the city. Last year for
example 46,900 trips to Glasgow were
made by French visitors, which equated
9
to 266,800 bed nights and £8.8 million in
local economic benefit.
Over the coming months KLM will
increase capacity on its Amsterdam
to Glasgow route while Icelandair will
operate a seasonal service between
Glasgow and Washington Dulles
International via Reykjavik from 17 May
to 13 September 2011.
Retail
GCMB will continue to work closely with
Glasgow City Council and Glasgow
Chamber of Commerce on a range of
style mile initiatives that will ensure the
safeguarding of the city centre as the
largest retail centre in the UK outside
London’s West End.
Telling Glasgow’s Story
This year saw Glasgow being added to
the range of stylish city guides compiled
by Wallpaper*, which are aimed at
the design-conscious traveller. Media
coverage over the past year has seen
Glasgow featured in a huge variety
of online, print and broadcast outlets
including PIA’s onboard magazine
Humsafar, US design publication Dwell,
Le Figaro and French Grazia.
Looking ahead, GCMB will focus much
of its UK and overseas consumer media
activity in profiling the opening in 2011
of Glasgow’s iconic Riverside Museum
as the city’s newest world-class visitor
attraction.
These are undoubtedly challenging
times but Glasgow continues to
demonstrate a level of economic
toughness and appetite for commercial
success, which combined with committed
private/public sector partnership will
ensure that the city’s momentum does
not falter and continues on an upward and winning - trajectory.
GLASGOW 2014 COMMONWEALTH GAMES
The dream of the Glasgow 2014
Commonwealth Games is now very much
a reality with the Host City baton having
recently been passed on to us at the
memorable Flag Handover Ceremony in
Delhi last month.
The symbolism of the ceremony has
been matched by a genuine sense
that the pace of developments and
preparation for the Games – ranging
from developments in venues and
facilities to progress in infrastructure
and the transport strategy - has gained
tremendous momentum as we move
towards July 2014.
JOHN SCOTT
CHIEF EXECUTIVE
GLASGOW 2014 LTD
THE EXCITEMENT AND
SENSE OF OPPORTUNITY
AS WE BEGIN THE
COUNTDOWN TO
THE GLASGOW 2014
COMMONWEALTH GAMES
IS PALPABLE: THE
INVESTMENT THAT WILL
BE MADE IN THE DELIVERY
WILL LEAVE A LASTING
AND PERMANENT LEGACY
FOR THE PEOPLE OF
GLASGOW.
The most visible sign of this momentum
is the rapid development of the National
Indoor Sports Arena and Sir Chris Hoy
Velodrome by Sir Robert McAlpine Ltd
and their sub-contractors on the site to
the immediate south of Celtic Park, which
will host the opening ceremony for the
Games. The site has already become a
feature of the East End skyline.
Across Springfield Road, the site of the
Athletes’ Village - planning permission
for its first phase was given by Glasgow
City Council’s Executive Committee in
September - is now ready for construction
to begin, and we can look forward to a
great home for more than 6,500 athletes
and officials four years from now and
a new neighbourhood for the city after
that. The City Legacy consortium has
now taken possession of the site, and
construction will begin soon.
The economic importance of the Glasgow
2014 Commonwealth Games to the
city and country has been made before
in previous editions of the Glasgow
Economic Review, and I am delighted
to say that a number of local enterprises
have won very substantial contracts
through the Commonwealth Games
Business Portal.
Organisations should register on
the Portal in order to be considered
for contracts or sub-contracts for
Games-related projects. There
are still tens of millions of pounds
worth of contracts remaining. Those
organisations interested in registering
to supply services for the Glasgow 2014
Commonwealth Games should visit
www.glasgow2014.com/businessportal
or phone 0845 272 2014.
Development and refurbishment of other
venues to be used during the Games,
such as the Tollcross Leisure Centre
extension and the SECC National
Arena, will continue the good economic
news for Glasgow. This work will bring
employment and skills to our people
and businesses in challenging times and
offer a more attractive infrastructure for
those who wish to both live and set up
business here.
What was undoubtedly good news
was the announcement that the M74
completion project will be finished in
June 2011 - nine months earlier than
expected, and a fantastic effort by all
SIR CHRIS HOY VELODROME
10
200,000
Opening/closing Ceremony
Daily Spectator Demand at each Venue
Jackson Shooting Centre
Barry Buddon Shooting Complex
180,000
Royal Commonwealth Pool
Strathclyde Country Park
160,000
Cathkin Braes Mountain Bike Course
140,000
Hampden Park
Ibrox Stadium
120,000
Glasgow Cycling Road Course
Tollcross Park Leisure Centre
100,000
National Indoor Sports Arena
80,000
Sir Chris Hoy Velodrome
Glasgow Green Hockey Centre
60,000
Kelvin Hall
Kelvingrove Lawn Bowls Centre
40,000
Scotstoun Leisure Centre
20,000
Clyde Auditorium
SECC Hall 4
0
Day 0
Day 1
Day 2
Day 3
Day 4
the partner organisations involved.
Such successful collaboration has
been in evidence in our preparations
for the Games so far, and will be
absolutely necessary to deliver the
fantastic event we are all looking
forward to. The M74 Completion and
the East End Regeneration Route,
together with investment in other
projects such as the refurbishment
of Dalmarnock train station, will bring
us a great deal closer to the transport
infrastructure that Glasgow will need in
2014 and beyond.
Day 5
Day 6
Day 7
Day 8
Day 9 Day 10 Day 11
A successful transport strategy is
essential in the delivery of a great
Commonwealth Games. A couple of
months ago, Glasgow 2014 Ltd and
Glasgow City Council published the first
of three versions of the Transport Plan for
public consultation between now and the
Games.
The first Transport Plan details how the
organisers for the Games will ensure
that spectator and athletes’ transport is
safe, secure, reliable and accessible,
and that Glasgow and Scotland will ‘keep
moving’ during the Games. We are
SECC Hall 3
Scottish National Arena
committed to developing a service that
is efficient and frequent and promotes
sustainable modes of transport.
Throughout the Games period, transport
will play a crucial role for those enjoying
the Games, those working at the Games,
and those competing. The Transport
Plan sets out what each group’s
requirements are likely to be, and the
public transport solution that Glasgow will
be able to provide in 2014 to deliver an
outstanding Games.
After the Games, most of the 20km that
form the Core Route Network will be
transformed into priority bus lanes.
The permanent improvements will also
include: new bus shelters; improved
information and signage along the route;
improved public safety through additional
CCTV; smoother flow of traffic following
evaluation and changes to traffic light
phasing; and reduced pressure on “pinch
point” junctions.
All of these measures will mean that
athletes, officials and spectators will
be able to move between the Athletes’
Village, International Zone and all the
different venues very easily, leaving a
very positive impression of Glasgow and
a lasting and permanent legacy for the
people of Glasgow.
NATIONAL INDOOR SPORTS ARENA (ATHLETICS)
11
The excitement and sense of opportunity
as we begin the countdown to the
Glasgow 2014 Commonwealth Games
is palpable: let’s make sure we take
every chance, whether social, economic
or environmental from this unique event.
GLASGOW ECONOMIC/LABOUR MARKET INDICATORS
ECONOMIC OUTPUT
The most recent figure for Glasgow gross value added, (published in December 2009), is £15.7bn for 2007, which represents
15.8% of Scotland’s gross output. This percentage has been in marginal contraction year-on-year since 2003 when Glasgow’s
contribution to national wealth creation was estimated at 16.1%.
58.7
698.4
1997
9.4
61.4
739.5
1998
9.9
63.9
782.0
1999
10.4
66.1
822.8
2000
10.8
68.2
864.3
2001
11.3
71.1
907.6
2002
12.0
75.0
957.1
2003
12.8
79.6
1015.0
1071.0
2004
13.4
83.9
2005
14.1
87.9
1116.6
2006
14.9
93.5
1181.1
2007
15.7
99.1
1245.7
GVA per Capita
2003
20,430
8.8
19,267
1996
27,009
UK
17,043
Scotland
15,744
Glasgow
22,197
GVA
2007
Glasgow
Scotland
UK
Source: Office for National Statistics
(£bn – Current Basic Prices)
Source: Office for National Statistics
JOBS IN GLASGOW
Total employment in Glasgow in 2008 is estimated to be around 443,000. Employee jobs, (i.e. people who work for a company or
organisation, excluding the self-employed), is the key barometer of employment trends. Over the period 2003 to 2008, Glasgow’s
rate of employee job growth of 7.5% compares with 4.9% for Scotland and the national GB average of 3.8%.
Employee Jobs
By Sector
Jobs in Glasgow
400,000
Employee Jobs
350,000
300,000
Self-employed
250,000
200,000
Armed Forces &
Gov’t Trainees
150,000
100,000
50,000
0
2008
2007
2003
Source: ONS (Employee Jobs)
Experian (Self-employed)
Experian (Armed Forces & Gov’t Trainees)
2008
2003
Energy/Water
3.4
4.0
Manufacturing
21.9
25.2
Construction
17.9
19.1
Distribution
80.0
75.4
Transport
20.4
21.0
Finance
113.6
91.2
Public Services
129.3
123.2
Other Services
22.7
21.4
TOTAL
409.2
380.5
(Thousands)
Source: Office for National Statistics
RESIDENTS IN WORK
From a peak in 2008, the number of Glasgow residents in work has fallen back to levels prevailing in late 2006. However, not all
residents work in the City. In 2001 for example, the Census of Population indicated 80% of residents in work, actually worked in
Glasgow. The Census also indicated 158,000 people who lived outside the city journeyed into Glasgow to work in 2001.
Occupation of Residents
in Employment
Dec 09
Dec 06
Managers
29,500
26,000
Professional
34,900
42,600
Associated Professional
32,300
35,700
Administrative
32,800
35,100
18,800
Skilled
22,000
Personal
26,000
20,300
Sales
27,200
23,500
Operatives
17,700
15,900
Elementary
32,400
34,100
Unspecified
900
1,400
Residents in
Work
ec 06
D
Jan 06 to
ec 07
D
Jan 07 to
ec 08
D
Jan 07 to
ec 09
D
Jan 08 to
Source: Office for National Statistics
253.4
263.4
272.6
255.7
(Thousands: residents aged 16+)
Source: Office for National Statistics
12
GLASGOW ECONOMIC/LABOUR MARKET INDICATORS
INACTIVITY
Unemployment in Glasgow reduced from 21,900 (8.0%) in December 2006 to 17,400 (6.0%) in June 2008. Since then it has
increased to 28,600 (10.1%) in December 2009. Likewise, over the short time-series, the number of Job Seeker Allowance
claimants has increased from 13,138 (3.3%) in November 2007 to 23,381 (5.7%) in September 2009 to 24,844 (6.1%) in
September 2010.
Jan 09 to Dec 09
5,400
11.2%
4.2%
19,700
12,500
7,200
7.0%
8.2%
5.5%
17,400
10,300
7,100
6.0%
6.9%
5.2%
28,600
17,400
11,200
10.1%
12.0%
8.0%
Source: Office for National Statistics (16+)
September 10
Male
23,381
5.7%
16,500
8.0%
5,824
2.8%
21,900
Claimant Count JSA
17,557
8.6%
July 07 to June 08
Female
24,844
6.1%
Jan 07 to Dec 07
Male
6,818
3.3%
Jan 06 to Dec 06
Total
18,026
8.9%
Residents
Unemployed
September 09
Female
Total
Source: Office for National Statistics (Working Age)
DEVELOPMENT
The total value of private sector development activity in Glasgow was around £3.84 bilion in 2009-10, compared with £3.95 billion in
2008-09. The decrease of around 2.8% reflects the effect of the more difficult economic circumstances in the wider UK economy,
which have impacted across all development sectors in the City. The Waterfront area and the City Centre continue to be the focus
for a significant element of Glasgow’s development activity. Collectively, these areas accounted for around 73% of the overall
development activity.
Private Investment Development Values
(current basic prices)
Private Investment
Sector Values (£m)
£3.84bn
2007/08
2008/09
2009/10
£4.22m
£3.95m
2005/06
£4.34.2m
2004/05
£3.47m
£2.77m
Residential
2006/07
2009/10
2008/09
1,895.4
2,223.4
Office & Business
641.3
758.6
Industrial
48.2
62.8
Retail
649.8
607.6
Hotel & Leisure
611.0
304.0
Source: Glasgow City Council (DRS)
POPULATION
Over the past 5 years, the City’s population level has increased from 577,670 in 2004 to 588,470 in 2009. This improvement
primarily relates to long-distance migration and reflects the shift from a net outflow of working-age population in the late 1990s to a
net inflow since 2000. The City’s asylum seeker contract has been an important factor in this regard, as has, more recently,
in-migration from EU Accession Countries.
186,815
Total
396,573
377,953
Source: General Register Office for Scotland
588,470
191,138
193,106
584,240
203,467
Females
581,940
Males
577,670
2004
578,710
2009
629,220
Glasgow Working Age
Population
712,368
Glasgow Population
1981 1991 2001 2004 2007 2008 2009
13
Source: General Register Office for Scotland
GLASGOW ECONOMIC/LABOUR MARKET INDICATORS
TOURISM
Provisional estimates suggest the tourism sector was worth around £546m to the Glasgow economy in 2009 - compared to £584m
in 2008 and £670m in 2007. UK visitors contributed some £335m with overseas tourism expenditure £211m. In terms of overseas
trips, in 2009, Glasgow ranked 5th in the UK inbound visitor top town league table, maintaining its 2008 position.
Rank
Rank
UK Visitors to Glasgow City
00s)
Visitors (0
London
1
Edinburgh
2
1,324
14,211
2007
2008
2009
1.8
1.5
1.6
Manchester
3
800
Birmingham
4
709
Glasgow
5
623
Liverpool
6
458
Bristol
7
421
Oxford
8
416
Cambridge
9
400
Brighton/Hove 10
330
Trips (m)
Nights (m)
4.6
3.7
4.4
Expenditure (£m) historical prices
423
376
335
Overseas Visitors to Glasgow City
2007
2008
2009
Trips (m)
0.75
0.63
0.62
Nights (m)
3.8
3.9
3.9
Expenditure (£m) historical prices
247
208
211
Sources: United Kingdom Tourism Survey
International Passenger Survey
Top Towns by
Overseas Visitors
2009
Source: VisitBritain
ENTERPRISES
Glasgow’s stock of enterprises increased from 15,680 in 2006 to 16,570 in 2008. This 5.7% increase is broadly in line with the UK
and Scotland averages (5.4% and 7.5% respectively) and compares well to the 2004 to 2006 period when Glasgow experienced a
–0.8% fall in active enterprises compared to the 2.3% increase at the UK level and the 2.4% posted for Scotland.
Births/Deaths of Enterprises in Glasgow
in 2008 by Employment Size Band
Enterprises
Glasgow
Stock
Scotland
Stock
UK
Stock
2004
15,810
135,255
2,158,555
2005
15,740
136,985
2,182,750
2006
15,680
138,560
2,207,290
2007
16,045
144,205
2,280,215
2008
16,570
149,010
2,325,770
Births
0-4
5-9
35 45
10-19
20+
1,735
190 175 75 90
2,100
1,425
1,800
Deaths
Total
Source: ONS
Employment Size Band
OFFICE
& BUSINESS FLOORSPACE
Increased activity combined with general market churn has resulted in total take-up producing a 12 month total of 66,676 sq m
- some 17.6% up on the same period last year. Total availability has increased some 13.5% over the past year to 337,661 sq m
producing vacancy rates of 18% (city-wide) and 15% (city centre) respectively.
Glasgow Supply sq m (YE September)
Glasgow Take-up sq m (YE September)
Central
Periphery
Total
110,488
71,064
181,552
Central
Periphery
Total
2001
63,199
17,725
80,924
2001
2002
55,178
22,438
77,616
2002
95,606
83,438
179,044
53,230
2003
127,141
98,391
225,532
2003
32,479
20,751
2004
25,741
24,797
50,538
2004
161,564
90,398
251,962
2005
39,871
55,037
94,908
2005
162,682
82,049
244,731
2006
79,435
38,056
117,491
2006
101,200
57,520
158,720
2007
100,258
63,222
163,480
192,572
2007
57,730
29,333
87,063
2008
44,357
24,431
68,788
2008
111,520
81,052
2009
39,525
17,186
56,711
2009
178,676
118,765
297,441
2010
48,397
18,279
66,676
2010
219,331
118,330
337,661
Source: Ryden
Source: Ryden
14
CITY AIRPORT SET FOR TAKE OFF IN 2011
The recession may be over but for the
airline industry, the economic recovery is
still fragile.
Airports and airlines across the UK
have been left reeling after one of the
worst years in aviation history. Extreme
winter weather, industrial action and the
forced closure of UK airspace as a result
of volcanic ash have taken their toll,
with passenger numbers down at most
airports, including Glasgow. The collapse
of flyglobespan late last year was a further
blow, coming hard on the heels of the
demise of Zoom and XL.
But there are signs that the worst may be
over.
Despite the downturn, Glasgow has
secured a number of new services
this year, including new flights to Cork,
Donegal and Shannon and extra flights to
Dublin.
The holiday market has also been
more buoyant his year, with Barrhead
Travel launching its own brand flights to
Barcelona and Palma, and holiday giants
Thomas Cook adding a sixth aircraft from
its Glasgow base.
Our long haul network is also set for
expansion, with several airlines already
confirming extra capacity from Glasgow,
including US Airways, Canadian Affair
and Icelandair. Thomson has announced
new flights to Dominican Republic and the
west African island of Cape Verde next
summer, and Virgin Atlantic will treble the
number of flights next year, a fantastic
vote of confidence from one of the world’s
most successful airlines.
Glasgow faces tough competition from
airports across the UK and Europe.
However, with the support of our partners
at Glasgow City Marketing Bureau, we are
rising to the challenge and working hard to
secure new business for the city.
The recent announcement that Jet2.com
is to open a new base at Glasgow Airport
in 2011, creating 150 new jobs, is further
evidence that our hard work is paying off.
Industry experts predict the new airline
will generate almost £8m a year for the
Glasgow economy.
A new report commissioned by Scottish
Enterprise, Glasgow City Council,
Renfrewshire Council and Glasgow
Airport, confirms Glasgow Airport’s
status as an asset of strategic national
importance, supporting more than
7,300 FTE jobs across Scotland and
generating some £196m for the Scottish
economy, making Glasgow the largest
contributor to GVA and employment of any
Scottish airport.
However, this contribution cannot be taken
for granted. The report also highlights
major challenges, warning that Glasgow
could lose business to other UK cities
without coordinated action to improve
transport to and from the airport. The
study also highlights the need for more
business focused European short haul
services from Glasgow.
AMANDA MCMILLAN
MANAGING DIRECTOR
GLASGOW AIRPORT
Glasgow Airport can’t deliver these
improvements in isolation. There is a role
to for tourism and enterprise agencies,
and for Government generally.
In fact, so much of the success of the
airport is determined by factors outwith our
direct control – the economy and taxation,
for example.
Governments across Europe are taking
positive, pro-active action to support their
airlines through the downturn. The picture
here is less encouraging, however, with
the UK Government pushing ahead with
planned increases in Air Passenger Duty.
Rising taxes will also undermine
Scotland’s competitiveness and hit
inbound tourism, worth £4bn to the
economy in 2009. If it becomes too
expensive for international passengers to
fly to Scotland, they will go elsewhere.
The lack of a Scottish route development
fund (RDF) is a further source of concern.
However, recent comments from the
Scottish Government on the prospect of a
return of the RDF are encouraging. The
Glasgow-Dubai service was one of several
supported by the previous fund. It was
money well spent. Today it carries more
than 250,000 passengers and is the most
successful long haul route in Scotland.
Despite a difficult year for the industry, and
the significant challenges that lie ahead, I
have real confidence that 2011 will see a
return to growth.
Longer term, the investment we have
made - some £50m over the past 5 years
- and our efforts to cut costs, put us in
a strong position for the future. We are
in good shape as a business, and our
relationships with stakeholders, including
Glasgow City Marketing Bureau, give us
confidence we can achieve our shared
ambitions for the airport and the city.
15
GLASGOW AIRPORT IS AS
AN ASSET OF STRATEGIC
NATIONAL IMPORTANCE,
SUPPORTING MORE
THAN 7,300 FTE JOBS
ACROSS SCOTLAND
AND GENERATING SOME
£196 MILLION FOR THE
SCOTTISH ECONOMY.
DESPITE A DIFFICULT
YEAR FOR THE INDUSTRY,
AND THE SIGNIFICANT
CHALLENGES THAT LIE
AHEAD, I HAVE REAL
CONFIDENCE THAT 2011
WILL SEE A RETURN TO
GROWTH.
MONTHLY NEWSGRID
NOVEMBER 2009 - JANUARY 2010
1,344 new jobs for Glasgow
The Scottish Government/Scottish
Enterprise report, that in the 3 months to
end September 2009, some 10 businesses
in Glasgow accepted Regional Selective
Assistance grant offers totalling over £7.67
million. These offers relate to projects
aimed at the planned creation of 1,344
new jobs:
St Enoch Centre goes big
The first phase of the £100m remodelling
of St Enoch Centre has been completed.
The redevelopment of St Enoch by
Canadian owner and manager Ivanhoe
Cambridge will further strengthen the City
Centre’s retail offer, bringing the Centre
to 765,000 sq ft of retail space. When
fully let, the extension - which has already
seen the addition of several retailers new
to Scotland - will bring the total number
of stores to 115 and raise employment in
the Centre from 2,500 to around 3,200.
The project also involves an upgrade for
the surrounding St Enoch Square into
a café culture plaza-style environment,
refurbishment of the existing mall and
expansion of leisure facilities.
Matchlight Limited
£250,000 - 17 new jobs
PPT (Scotland) Limited
£200,000 - 20 new jobs
Tesco Personal Finance £5,000,000 - 880 new jobs
Velos-IT Limited
£180,000 - 16 new jobs
Bcerta Limited
£150,000 - 15 new jobs
Caboodl Limited
£100,000 - 8 new jobs
City Park Technology Centre
£500,000 - 120 new jobs
Crackit Productions Limited
£140,000 - 10 new jobs
Edan Communication Solutions Limited £50,000 - 8 new jobs
esure Holdings Limited
£1,100,000 - 250 new jobs.
Aircraft Carrier contracts
Aircraft Carrier Alliance - the team
responsible for delivering the £5bn HMS
Queen Elizabeth and HMS Prince of
Wales programme - has awarded Henry
Abrams (Sandyford Place) an £85m
contract to transport sections from yards
across the UK to Rosyth for assembly.
The company currently employs 20 staff
but plans to recruit naval architects,
design/structural engineers, graduates
and administration staff. BAE Systems
Surface Ships Clyde is estimated by the
Fraser of Allander Institute to contribute
some £324m to the UK economy.
Workforce levels at the Glasgow warship
division stand at 3,400 - some 7% up on
the previous year.
FEBRUARY 2010 - APRIL 2010
Hotels check in
As part of the city’s ongoing focus on
major infrastructure developments in
preparation for the 2014 Commonwealth
Games, 850 hotel rooms and luxury
serviced apartments will be built between
now and 2011, including:
esure secures in Glasgow
Lloyds Banking Group has announced
the sale of its 70 per cent stake in esure,
the online and telephone insurer, to a
management buyout vehicle to be called
esure Group Holdings Ltd, led by esure
chairman Peter Wood, in a £185 million
plus deal. In February last year, esure which offers home, motor, travel and pet
insurance - set a target of 500 new jobs
at its Glasgow facilities in the Equinox
building in Cadogan Street by 2014.
Over the past twelve months employment
has increased from 610 to around 830.
A second tranche of recruitment of
280 staff in a range of sales, customer
services and claims roles is expected
over the next two years.
Blythswood Square,
a five-star, £26m 100-bedroom hotel
Lorne Hotel,
a four-star, 107 bedroom luxury
boutique hotel
Grand Central Hotel,
a four-star, £20m refurbished,
186-room hotel
citizenM,
a 198-room hotel
Hotel Indigo,
a £11.5 million, 96-room boutique hotel
Carnbooth House,
luxury hotel
Jury's Inn,
a 230-room hotel on Lancefield Street, near the Scottish Exhibition and
Conference Centre, part of a £90m
four - hotel investment, expected in
2011.
16
Central Quay masterplan
Global property group Goodman has
appointed architecture and design
practice Keppie as chief architects to
comprehensively review the masterplan
and development proposals for its
Central Quay waterfront business park.
The 11-acre park, which is owned,
managed and developed by Goodman,
currently accommodates a number of
companies - GE International, NHS
Scotland, the Association of Certified
Chartered Accountants (ACCA) and
Scottish Daily Record and Sunday Mail
Ltd - which together occupy 160,000
sq ft. The site has the potential to
accommodate up to 500,000 sq ft of
additional space.
MONTHLY NEWSGRID
MAY 2010
Glasgow top regional retail centre
CLYDEUNION pumps up presence
CACI reports that Glasgow is proving a
strong retail centre and resilient in the
recession. Retail Footprint 2010 shows
that while London's West End remains
Britain's number one shopping destination
Glasgow ranks second in the hierarchy.
Rapidly expanding CLYDEUNION Pumps
has announced plans to recruit 100
skilled engineers and 20 new apprentices
over the next twelve months. Since
the acquisition of Weir Pumps in 2007,
CLYDEUNION has gone from strength
to strength. Its key engineering facilities
at Cathcart has already seen the
workforce increase from around 535 at
takeover through the recruitment of 175
engineers and 59 apprentices. Cathcart
has developed as the hub of the global
CLYDEUNION Pumps business and
growth comes on the back of business
generation in the nuclear, oil and gas and
desalination plant sectors particularly
from India, China and Brazil.
2010 Retail Footprint Top Rankings (£bn)
City
Market
Potential
1
London (West End)
£3.17
2
Glasgow
£2.55
3
Birmingham
£2.43
4
Manchester
£2.32
5
Liverpool
£1.96
ScottishPower jobs boost
Iberdola has chosen Glasgow as
its preferred location for the global
headquarters of a new offshore wind
division. The Spanish company – parent
to ScottishPower – will incorporate
the new division into ScottishPower
Renewables at Cathcart Business
Park. The move will mean around 20
staff within Renewables transferring
in to the new division with Iderdola
anticipating a build up of staff to more
than 200 engineers, planners and marine
biologists over the next five years. This
follows on from plans to create around
100 new high-end engineering jobs in an
engineering division specializing in new
renewable energy technology.
JUNE 2010
£840m Glasgow Hospitals Campus
Step change for Tennent’s
Enabling work started in March and
construction is scheduled to begin in
November on the £840m New South
Glasgow Hospitals Campus - the largest
single NHS hospital build project ever
undertaken in Scotland. Construction will
support around 2,500 jobs. Brookfield
Construction UK, the firm building the
campus, has committed to working with
NHSGGC and partner organisations to
maximise opportunities in the area and
will, where possible, be advertising for
local sub-contractors and offering jobs
and training to local apprentices and
people who are currently unemployed.
Almost a year after its acquisition of
Scottish brewer Tennent’s from
Anheuser-Busch Inbev, Irish company
C & C is demonstrating its commitment to
expand its new Scottish operation.
C & C has announced it will invest
£7m in information technology to back
up its distribution and will relocate 23
jobs in areas such as credit control and
management accounts from Prague
and Budapest to the Wellpark Brewery
in the east end of Glasgow. In addition,
a further 37 customer contact telesales
posts which have been in Glasgow under
Inbev will transfer to Tennent’s.
17
Glasgow Caledonian leverage
A new study by analysts Biggar
Economics highlights the importance
of the education sector to the Glasgow
economy. Focusing on the impact of
Glasgow Caledonian University,
Biggar reports the university boosts the
city’s economy by around £230m each
year with a further £176m going to the
wider economic benefit elsewhere in
Scotland. In terms of employment, the
study indicated that Glasgow
Caledonian created the equivalent of
5,075 full time jobs in Glasgow with a
further 6,549 full time jobs in the rest of
Scotland.
MONTHLY NEWSGRID
JULY 2010
£350m University Campus plan
SSE jobs boost
The University of Strathclyde’s Estates
Development Framework will see an
investment of £350m in the first 10 years.
Key elements include a new £36m
building to support world leading drug
discovery and development research at
the Strathclyde Institute of Pharmacy and
Biomedical Sciences due for completion
in 2011, and a £33m Centre for Sport and
Health completed by 2012. A further
key element in the campus plan is the
proposal to create a new Technology and
Innovation Centre between 2013 and
2015 that will enable global companies
and innovative small to medium sized
enterprises to work side-by-side with
graduates and research experts.
Mitsubishi and Scottish and Southern
Energy (SSE) have entered into a
strategic agreement to co-operate on
low carbon energy developments. SSE
established a Centre of Engineering
Excellence in Renewable Energy
in partnership with the University of
Strathclyde in 2009, with over 300 skilled
professional jobs projected to be created
by SSE over the next three years. The
agreement with Mitsubishi builds on
this, with up to 100 additional new
engineering-based jobs being created.
Employment at the Centre is expected
to grow to around 1,000 jobs over the
next five years as other partners locate
engineering-related jobs there.
Tesco Banks on Glasgow
Tesco Bank will open its first Tesco Bank
customer service centre in Glasgow
later this year. The 126,340 sq ft facility
at Broadway One in the City Centre
represents a £15m investment and
Tesco is currently recruiting for a range
of positions. Tesco plans to have some
600 banking services posts and 200
insurance posts in place by mid 2011 at
the centre. In addition, to support its entry
into the mortgage market, Tesco has
outsourced 200 jobs to Vertex at Atlantic
Quay. The new Vertex contact centre has
been part funded by a £1.7m Scottish
Enterprise Regional Selective Assistance
grant to create up to 368 jobs over the
next 5 years.
AUGUST 2010
Silverburn plans £20m expansion
Following the £297m acquisition of
the 93,000 sq m Silverburn Shopping
Centre, Pollok in the south west of the
city in December last year, new owners
Hammerson and Canada Pension Plan
Investment Board (CPPIB) have brought
forward plans for a £20m extension.
Since its opening in 2007, the Centre now
attracts around 14m customers a year
and has a retail footprint of some £380m
according to the latest CACI ranking.
In addition, the Silverburn complex,
which includes one of the largest Tesco
stores in Scotland, has proved a vital
employment generator in the Greater
Pollok area through the creation of some
3,500 jobs - with around 40% to 50% of
those recruited from the local area.
Super College merger approved
Work starts on Collegelands
The Scottish Government has approved
the merger of three city centre colleges
- Central College, Metropolitan College
and Glasgow College of Nautical
Studies - as the new City of Glasgow
College. However, a decision on the
accompanying "supercampus" building
project, described as potentially the
biggest in Europe, is expected by the
middle of next year. Originally costed
at up to £300m, the project planned
to provide fully integrated and jointly
managed campuses on Cathedral
Street and Thistle Street for 40,000
students and 1,500 staff. Reductions in
available public finances however will
require a revision of current plans and
assumptions.
Work has started on the first phase of
the £200m/ 6.81 hectare Collegelands
project at High Street/Duke Street in the
east of the city. The scheme - reported
to be the largest new-start regeneration
project currently in the UK - will create a
new mixed commercial and residential
district. Phase one, which is fully funded
and scheduled for completion by October
2011, includes 102,000 sq ft of office
space, a 200 bedroom hotel, 250 student
accommodation units and a 1,100-space
multi-storey car park. In total, when
fully developed in 2017, the project is
expected to create 2,950 additional jobs,
add £110m per annum to the Glasgow
economy and offer direct employment to
1,600 people throughout the build period.
18
MONTHLY NEWSGRID
SEPTEMBER 2010
(Picture courtesy Transport Scotland)
M74 ahead of schedule
Contractor, Interlink M74 Joint Venture,
has confirmed the M74 Completion
scheme will open next June some nine
months ahead of the projects contractual
deadline of February 2012. The fivemile, six-lane extension will complete
the missing link between the M74 at
Fullarton Road and the M8 to the west
of the Kingston Bridge. The Completion
is currently the biggest infrastructure
project on the ground in Scotland with a
construction value of £445m plus £12m
allowance for mine workings and £200m
for land purchases and preparatory works.
Transport Scotland estimates that some
900 people will have been employed on
the project at its construction peak.
Barclays plans up to 600 new jobs
Athletes’ Village plan approved
Barclays is establishing a global shared
services hub in Glasgow to support its
investment banking and wealth
management divisions Barclays Capital
and Barclays Wealth. In the region of
300 to 350 hires in securities operations,
operations control - within equities, credit
derivatives and structured products and
loans - as well as data reference roles are
set to be created initially. The move is
supported by a grant of up to £6.6 million
of Regional Selective Assistance funding
from Scottish Enterprise based on the
creation of up to 600 posts at the new hub
over a multi-year period.
City Legacy Consortium’s planning
application for the first phase of the
Glasgow 2014 Commonwealth Games
Athletes’ Village has been approved by
the City Council. The Village is located
adjacent to the site being developed for
the National Indoor Sports Arena (NISA)
and Velodrome. The permissions relate
to the build of 700 homes which will
be used by athletes during the Games
before being turned into a new residential
neighbourhood in the city’s east end.
Construction is scheduled to begin later
this year. The Games-time elements
of the Athletes’ Village will be subject to
a separate planning application in due
course.
OCTOBER 2010
Glasgow travels up to 5th
Santander recruitment
Glasgow has been posted fifth in this
years Conde Nast Traveller Readers’
Travel Awards - a climb of three places
over 2009 when the city ranked eighth.
UK cities were scored on criteria such
as service, culture and value for money.
Santander Group - the 9th largest
financial services group in the world
by market capitalisation - is bringing
more jobs to Glasgow. Following on
from its aquistions of Abbey, Alliance
& Leicester and parts of Bradford &
Bingley and, as part of a UK wide
expansion, fast growing Santander
has announced it will recruit an
additional 400 staff at call centres in
Glasgow, Liverpool and Leicester.
Some 120 of these posts have been
allocated to the company’s St Vincent
Street facilities in Glasgow which
currently accommodates around 330
staff. Santander expects that all
posts will be filled over the period to
March 2011.
Top UK Cities
2010
2009
Edinburgh
London
2
Oxford
Edinburgh
3
London
Liverpool
4
Liverpool
Bath
5
Glasgow
Oxford
6
Brighton
Manchester
7
Manchester
York
8
Bath
Glasgow
1
19
Glasgow ‘handed’ the Games
The Commonwealth Games’ Flag
Handover Ceremony has taken place
in Delhi with the official handing over
of the Games to Glasgow and all the
responsibilities that go along with it. In
2014, Glasgow will play host to
over 6,000 of the world’s top
athletes from 71 countries and
hundreds of thousands of
people are expected to visit to
experience the Games. In preparing
the city for the Games, the City
Council is leading on 20 major
infrastructure projects. The Scottish
Government, Glasgow City Council and
Commonwealth Games Scotland have
set out ambitious plans to generate a
lasting social, economic and sporting
legacy from the Games.
PARTNERSHIP WORKING BUILDS OPPORTUNITIES FOR GROWTH
If Glasgow and the West are to emerge
from the recession in a position of
strength, it is essential that we have
the right partnerships to help invest in
the economic infrastructure upon which
our companies thrive and to attract new
investment to build on our world class
strengths and capabilities.
JILL FARRELL
WEST OF SCOTLAND DIRECTOR
SCOTTISH ENTERPRISE
AS WE WORK TO TACKLE
THE CHALLENGES OF
A RAPIDLY CHANGING
ECONOMY AND ITS
ENVIRONMENTAL IMPACTS,
DEVELOPING AND
MAINTAINING STRATEGIC
AND RESPONSIVE
PARTNERSHIPS WHICH
DELIVER TANGIBLE
RESULTS HAS NEVER BEEN
MORE ESSENTIAL. ADD
TO THAT MIX, GROWING
BUDGETARY PRESSURES
AND IT IS CLEAR THAT
COLLABORATION
WILL BE CENTRAL TO
THE PUBLIC SECTOR
ACHIEVING SUBSTANTIAL
EFFICIENCIES AND
GREATER VALUE FOR THE
PUBLIC PURSE.
In terms of scale alone, Glasgow’s
economic performance is critical to the
economic performance of the West of
Scotland and Scotland as a whole. As
importantly, Glasgow and the West has
the assets to contribute to many of the
industries in which Scotland has the
potential to compete at international
level, as identified in the Government’s
Economic Strategy. These include
Tourism, Creative Industries (including
Digital Media), Financial & Business
Services, Enabling Technologies,
Universities and Renewable Energy.
Scottish Enterprise has a strong track
record of partnership working; the
numbers speak for themselves. Over
the past year alone, in Glasgow and
the West, SE has been working with
more than 120 public and private sector
partners to bring to life over 20 significant
and complex infrastructure developments
which are fundamental to the future
economic success not only of Glasgow
but Scotland.
Moreover, despite the undoubted
budgetary pressures and challenging
economic landscape, strong partnership
activity continues to build on the
strengths in sectors which can make
substantial contributions to Glasgow and
the West's economic success. These
include developing a globally competitive
business environment (through projects
such as Interactive Scotland and the
Clyde Waterfront) and supporting the
growth of globally competitive
companies. In addition, support is given
to develop globally competitive industries
such as
Financial Services: Glasgow’s
International Financial Services District
(IFSD), for example, gives the city a
real competitive advantage in a truly
global industry that still boasts huge
potential for growth, particularly in asset
management, asset servicing and the
insurance sector. The area’s appeal
has been demonstrated by the recent
announcement by Barclays to create
600 new jobs in the city - a significant
achievement in today’s difficult economic
climate. Two of the key factors in the
20
success of the IFSD are the long term
vision and commitment to the project
and the strong partnership where the
public sector works day and daily with the
private sector players to build and grow
the number of companies working out of
the IFSD.
Creative Industries: Similarly, the
power of partnership working is driving
the development of Glasgow’s Creative
Industries and Digital Media sectors
where collaboration has resulted in the
highly successful Digital Media Quarter
and ‘Creative Clyde’ initiative. The
Creative Industries account for 2% of
jobs in the region and importantly has
experienced strong growth (up 46%
between 2001 and 2007).
Tourism: Glasgow and the West also
continue to sustain a resilient tourism
sector, despite the industry facing
challenges on a global scale. The sector
is vital, not only to Glasgow, but to the
Scottish economy as it accounts for a
significant amount of Scotland’s output
and is a sector in which Glasgow and
Scotland boasts phenomenal assets.
Glasgow is one of Scotland’s recognised
“key destinations” by virtue of the sheer
size of tourism revenues it generates.
One tourism asset in particular, the SECC
Arena - itself originally a joint venture
between the then Scottish Development
Agency and the City Council - is a
critical part of Glasgow’s and Scotland’s
business tourism “offer” as well being
an iconic part of the city’s continued
riverside regeneration programme - along
with the new Riverside Museum due to
open next year. The new 12,500 seat
National Arena will generate an additional
£131 million per annum, attract major
conferences, exhibitions and concerts
and via associated spending, create
2,500 much-needed jobs. Effective
partnership working is essential to drive
and deliver this national-level project.
Future opportunities in renewable
energy are being developed with public
and private sector partners across the
region and will yield exciting results in the
near future.
All of this demonstrates the power of
partnerships which have a clear purpose
and flexible approach. We are all aware
of the challenges our economy continues
to face, and in Glasgow this proven
capability to deliver through partnerships,
coupled with focus and ambition, will best
place Glasgow to realise future growth
and job opportunities.
RETAIL IN GLASGOW CITY CENTRE
Glasgow’s the style mile project is
continuing to deliver a range of activity
to enhance, promote and protect its city
centre retail offer, now cited as the top
UK retail destination outside London’s
West End by both Experian and CACI.
The latest phase in the style mile project
is the launch of a retail inward investment
strategy for the city centre. This follows
on from the successful approach taken
by the city in attracting new air routes
and hotel investment, which has been
one of the main means of creating new
jobs in Glasgow over the last 10 years
with inward investment responsible for
over 25,000 new jobs attracted during
that period in first or second round
investment. Glasgow City Council
recognises the major contribution that
retail makes to the region’s economy and
that shopping is one of the main reasons
that people visit Glasgow.
Attracting key new brands is an essential
part of the style mile strategy and
consequently the Council, in partnership
with Glasgow Chamber of Commerce,
Glasgow City Marketing Bureau, and
the style mile steering group, is taking a
proactive approach to attract more quality
retailers and brands to the city. This
will involve targeting mainstream luxury
retailers along with high-end design
outlets, by highlighting the benefits of
doing business in Glasgow to top brands
with limited presence in the UK.
To assist businesses, a specialist onestop retail inward investment team has
been created and based at Glasgow
Chamber of Commerce. The team will
work with individual businesses to find
solutions to any challenges they face
when considering Glasgow city centre
as a retail location. It will highlight to
potential investors some of the benefits
of locating in Glasgow, not least the fact
that the city is less than an hour’s flight
from London and benefits from first rate
road, rail and air access. It is Scotland’s
largest city with a metropolitan population
of 1.8m, Europe’s fastest growing
conference destination, and the 5th most
popular visitor destination in the UK. And
over the past decade or so, Glasgow’s
transformation into a dynamic and
vibrant city has produced a truly unique
retail and leisure destination. The city
centre shopping environment has seen
major enhancements, with extended
pedestrianised areas, enhanced public
realm, improved transport access, and
new retail developments - all of which
have assisted in cementing the city
centre’s top retail ranking.
The Council’s primary objective is to
sustain the city centre by promoting high
quality, convenient, varied and attractive
retailing. In promoting new development
designed to contribute positively towards
the creation of high quality environments
and sustainable places, a crucial role
is played by the Planning and Building
Control services as delivery tools and
this is something which will be capitalised
upon by the new strategic approach to
retail inward investment. The critical
factor is the willingness of the city
to engage early with private sector
partners to ensure delivery of the right
development in the right place at the
right time. Most recently, the Council
has successfully assisted in the delivery
of major expansions for both St Enoch
Centre and Buchanan Galleries, where
extensive pre-application discussion and
dedicated planning and building control
resources were the hallmark. This
feature of the Glasgow approach will be
continually promoted to encourage early
communication and engagement with city
centre retail applicants, and to ensure
that applications are dealt with as quickly
and efficiently as possible.
In addition, the Glasgow Works Employer
Engagement Team can support
employers by creating a streamlined
approach to recruitment, including filling
of vacancies, job retention and equality.
The retail inward investment team will
therefore provide fast response to retail
enquiries for available property, work
with letting agents and proprietors if
additional assistance is required, facilitate
contacts with key Council divisions
and other stakeholding organisations,
as well as proactively targeting new
investment. The input of Glasgow City
Marketing Bureau will continue to be vital
in the ongoing extensive marketing and
promotion of Glasgow city centre.
Outwith the Retail Inward Investment
strategy, work is continuing on other
style mile priorities including the second
phase of winter lighting which will focus
this year on Argyle Street. Feasibility
work is continuing on a new scheme
to animate the pedestrian area with an
outdoor café, market kiosks, new lighting
and revamped street furniture layout.
Work is also underway to finalise the new
branding strategy for Glasgow’s festive
period which will see a consolidation of
the Winterfest and Christmas Wrapped
Up campaigns into one cohesive brand.
21
JANE HARRISON
CITY CENTRE INITIATIVES
MANAGER
DEVELOPMENT & REGENERATION
SERVICES
GLASGOW CITY COUNCIL
GLASGOW CITY CENTRE
HAS OVER 1,500 SHOPS
AND ATTRACTS OVER
2.4 MILLION VISITORS PER
YEAR. RETAIL ITSELF
GENERATES A MASSIVE
£2.55 BILLION TO THE CITY’S
ECONOMY EACH YEAR,
EMPLOYS IN THE REGION
OF 38,000 WORKERS,
AND PLAYS A CRITICAL
ROLE IN STRENGTHENING
GLASGOW’S TOURISM AND
LEISURE SECTOR.
Scottish Enterprise
Headline sponsor
Supporting sponsors