We have recently looked at the Visitor Economy and the Creative industries using our industry cluster concept to identify trends and regional hotspots. In this piece we’ll look at another cluster — one that has grown massively in recent years, with the increase in internet shopping and the success of companies like Amazon: Logistics and E-commerce.
We have defined this cluster as “the collection, storage and distribution of goods by road and rail, including direct retail sale online or via mail, including the rental and leasing of trucks”, and we have identified a total of eight 4-digit SIC industries that sit within this definition. Beginning at the high level, here is some general insight for the cluster across the country as a whole:
Delving down to the County/Unitary Authority Level, we can take a look at where the job growth in Logistics and E-commerce is projected to be over the next few years. Both Inner London – West and Outer London – West and North West look set to see some significant growth, but so too do places like Milton Keynes, Kent, Liverpool, Berkshire, and Barnsley, Doncaster and Rotherham, all of which look set to see four-digit job growth over the next five years:
As with our pieces looking at the Visitor Economy and Creative industries, we can also look at where the Logistics and E-commerce cluster is concentrated, using the Location Quotient (LQ) function in our Analyst data tool. As a reminder, this figure measures the proportion of jobs there are in a particular sector in a given area, and then compares this with the proportion of jobs the sector makes up in the nation as a whole. The nation is then given a benchmark figure of 1.0, and so any LQ figure over about 1.2 typically means that area being measured has a comparative advantage in that sector.
The graph below shows the Top 10 Local Authorities in terms of LQ for the Logistics and E-commerce cluster, including actual job numbers for 2016:
As you can see, North Warwickshire has a big comparative advantage in the Logistics and E-commerce cluster. However, we can go further into the data to identify the actual 4-digit SIC industries within the cluster, in order to gain some more insight into what is making up this concentration in the area. The following table highlights some interesting data for the Top 5 industries within the Logistics and E-commerce cluster in North Warwickshire:
Contact us to find out about Logistics and E-commerce and other industry cluster in your area.
You can also order a free industry cluster PDF for your region by going to our Local Sector Strengthfinder page.