Plymouth has a growing economy that generates £5.2billion a year – and its manufacturing and medical sectors are helping fuel that growth, an expert says.
David Beaumont, regional director at Lloyds Bank Commercial Banking, said a city typically associated with its maritime roots and quaint cobbled streets, is becoming an increasingly active economic hub.
With its growing population the city now has much to offer businesses great and small, he said. It also boasts the appeal of low-cost rent, typically costing 35% less than in the South East of England.
As a result, more and more firms are starting to call the region home and Mr Beaumont said: “We are seeing pockets of fast growth across a range of sectors from the more traditional manufacturing, tourism and leisure, to creative industries, life science, and healthcare.”
And he singled out these two sectors as particularly important:
Manufacturing
With over nine miles of coastline in Plymouth, marine manufacturing contributes more than £400million to the local economy annually, and accounts for 9.2% of entire marine industry in England, according to Data Plymouth.
In real terms, this equates to 7,100 local jobs.
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Plymouth’s port is rooted in heritage with many major marine manufacturers, such as yacht builder Princess Yachts, having been located in the city for years. To this day the industry is still thriving and a major source of employment in the region.
But, while the sector has a strong and long-standing history, modern-day technology is playing an increasingly important role when it comes to manufacturing.
In order to remain competitive, it is important that businesses invest in the latest manufacturing tools that often include automated machinery and robotics.
This is with the aim of increasing capacity, improving margins and, often, the quality of the product too.
“Investing in the latest technology and machinery is a large capital investment,” said Mr Beaumont. “For smaller businesses, justifying such a large upfront cost can be more difficult, and often cash flow won’t allow it.
“Products such as asset finance and hire purchase facilities can allow businesses to buy expensive pieces of equipment without making a dent in daily cash flow requirements.
“This means a company can continue to operate and reach for other growth opportunities, while knowing that the investment in the machinery is working away in the background.”
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Medical and healthcare
Plymouth’s position as a national expert in medical and healthcare has been firmly cemented by the work of the Peninsula Radiology Academy, which has helped to shape its rise as a strong local industry.
Similarly, Plymouth Hospital Trust works with the Peninsula Medical School and the University of Plymouth to conduct ongoing research into a number of fields such as haematology, clinical diabetes and oncology.
Over the past decade, this has established Plymouth as a developing medical base that offers a number of skilled job opportunities for locals and attracts positive attention from other institutes both domestically and internationally.
The establishment of this sector from specialised educational institutes and research organisations means that there is now a healthy mix of life science companies across the city and beyond, and this is only set to continue as more and more budding professionals register to train in the region, Mr Beaumont said.
In 2017/18, 9,000 students started studying health-related degrees at the University of Plymouth alone, he added.
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Business Live's South West Business Reporter is William Telford. William has more than a decade's experience reporting on the business scene in Plymouth and the South West. He is based in Plymouth but covers the entire region.
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“It is important that employers operating across these industries continue to work in partnership with local universities to gain access to students that will one day be qualified to fulfil the available jobs.
“This will also ensure that these companies continue to have the manpower required to unearth medical advancements and make breakthroughs in the months and years ahead.
“Local companies across Plymouth should feel confident in their position as an up-and-coming commercial and economic hub. It is more important than ever for these companies to ensure they have the right support on hand to be able to continue investing in growth now and in the future.”