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Sector Profile: Environmental Industries

 

Output (GVA)

This sector contributed £559m (GVA) to the Somerset economy in 2016, roughly 4.9% of total output. Due to this sector including, among other things, electric power generation, supply and distribution, a significant portion of the total contribution comes from West Somerset, where the Hinkley Point nuclear power station is situated. In fact, West Somerset contributed 39% of the Somerset total, some £220m, and 28.7% of the district’s entire economic output. The remainder of the contributions for this sector are split fairly evenly among the remaining districts within Somerset, which might be expected given that much of the remainder is likely to be accounted for by waste services, water services, and sewerage activities.

Employment (FTE)

This sector accounted for more than 4,800 full-time equivalent (FTE) jobs in Somerset in 2016, approximately 2.1% of all employment in the county compared to a national average of 1.7%. Approximately 34% of these jobs (1,650) were in Mendip, 23% (1,091) in West Somerset, 17% (810) in South Somerset, 14% (666) in Taunton Deane, and 13% (616) in Sedgemoor. When we consider the concentration of jobs in this sector across districts, West Somerset stands out. In 2016, 8.2% of all employment in West Somerset was in this sector, almost five times the national average.

Productivity (GVA/FTE)

Measured as GVA per FTE job, productivity in this sector in Somerset in 2016 was £115,690, notably higher than the national average of £103,290. Productivity is higher in this sector than in any other bespoke sector defined and analysed here, and almost 130% higher than average productivity for Somerset. Due to the presence of the nuclear power station at Hinkley and the significant contribution this makes to GVA, productivity in this sector in West Somerset was £201,440, almost twice the national average.

Source: Economic Model for Somerset and the Heart of the South West (HotSW) Local Enterprise Partnership, 2018

£559m
Economic Output (GVA)
4,800
Jobs (FTE)
£115,690
Productivity (GVA/FTE)