Engineering and Local Growth

By Fiona Tuck and Kealan Freeman

Over the last year we have been working with the Royal Academy of Engineering on the development of a nationwide view on engineering in local economies.

In our early findings released last year for This is Engineering Day we identified 13 hot spots across the UK, places which had a high proportion of their working population employed in their engineering economy.

Engineering, Economy and Place is the full release of this study, comprising of a research report, a dashboard and supporting data for Local Authorities across the UK. The focal point of this study is the introduction of a typology of engineering, the means of understanding the differences between engineering economies and their characteristics at a local level. You can access the full report here.

The resounding message from the work is that engineering is everywhere, but nowhere the same.

Engineering takes a different role and exhibits different features in each place, whether it is the volume of engineers, the level of innovation activity, the vibrancy of the enterprise or the diverse sectoral activity.

Figure 1. Engineering, Economy & Place typology categories

Engineering is also important everywhere (average of 20% of jobs) but it’s rarely the focus of local strategy. Core to this is the challenge of local measurement - data predominantly focuses on sectors and industries, which are of course vital to local economic strategy, but this vertical focus obscures the crosscutting knowledge and disciplines that enable them.

Every sector of the economy employs engineers, and the accepted definition covers 295 engineering industries. It is so widespread and diverse in its practices that singling it out is a real challenge, and therefore rarely done. Engineering is mainly described at local level behind 'Manufacturing &' or not mentioned at all.

This means places might be missing out on targeting growth in what is a high value part of their economy. Engineering is fundamentally tied to technological capability and R&D. It has been central to industrial revolutions and advancements in technology, and will be equally important to future ones, from Artificial Intelligence to green infrastructure.

This study has provided the means of better understanding the structure and value engineering generates, revealing its role in employment, R&D and GVA in places across the UK. The analysis moves beyond traditional classifications to describe how much, what type, where and in what context engineering is happening.

The report and its supporting data remove the barrier to describing the local and national role of engineering, describing engineering economies of all shapes and sizes across the entirety of the UK.

The ambition is that local leaders use the data and insights from the study to help articulate the nuances of their engineering economy and align this with the policies and support that best enhance their strengths and address their needs. We think there are three steps to this:

1. Understand your engineering story

Whilst it is critically important to be on top of the measures of performance and what that means in terms of strengths and weaknesses, those numbers only tell half a story. Each place has its own engineering DNA, composed over time from a tightly interwoven mix of industrial heritage, geological and natural assets, cultural characteristics, and economic development. Start with the experience and story of engineering in the place - the past, the present and how these can influence and shape the future.

2. Understand what you've got to work with

This study reveals the complexity and diversity within engineering, so while many places can be hotspots for engineering, its role within a place can vary significantly. Understanding your engineering economy is therefore essential - where is it happening? With which sectors and industries? Is it a core part of the economy or does it play an enabling role? What people/stakeholders/partners are involved and how do they interact? What are the tangible and in-tangible assets present in the place that could be leveraged?

Try not to let administrative boundaries be a burden or barrier. They might be necessary for measurement and (some) funding, but the mix of different sector footprints and different types of engineering economies in close proximity highlights the importance of collaboration across wider geographies, particularly within city regions and combined authorities. Ensuring connectivity between activities and places that can support each other will enable places to maximise the benefits of engineering.

3. Don't stop at stuff - think about your engineers 

Focus tends to fall on whether we have the stuff we need - kit, buildings, spaces - and where it is and in what combination. Not enough time is spent thinking about getting the right skills, at the right time, in the right combination. The science and technology that underpin finding answers to the challenges of our time can't happen without engineering. The engineering can’t happen without engineers – no matter how great the buildings are. These are also good quality jobs with strong development pathways. And though more needs to be done for pathways in emerging technologies, these routes will be critical to delivering the 'inclusive productivity' we desperately need if we are in any way to achieve our mission of levelling up.

Complexity should never be a reason not to do something or leave it out - we just need to untangle the strands.

Notes

Engineering Economy and Place is a collaborative project between the Royal Academy of Engineering and Metro Dynamics, drawing on the Academy’s deep understanding of engineering and our knowledge of local economies across the UK.

Metro Dynamics continue to support local economies everywhere – please get in touch if you have questions about this study, the approach used or economic development.

The Royal Academy of Engineering’s Enterprise Hub supports talented entrepreneurs and decision makers to transform breakthrough engineering innovations into disruptive spinouts, startups and scaleups. Delivering impact across the UK with tailored partnerships in Northern Ireland and Wales, with more locations to be announced soon. See more here.