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Public Procurement: Quantifying economic value in the North East Adam WilkinsonCommissioned by One North East April 2007.

Published byAbigail Gardner Modified over 9 years ago

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Presentation on theme: "Public Procurement: Quantifying economic value in the North East Adam WilkinsonCommissioned by One North East April 2007."— Presentation transcript:

1 Public Procurement: Quantifying economic value in the North East Adam WilkinsonCommissioned by One North East April 2007

2 OBJECTIVES  Quantify total public procurement expenditure in the North East and broad inward/outward investment patterns.  Analyse current economic impact of this expenditure on participation levels, productivity levels, and regional GVA, and model a baseline trend to 2016  Develop a modelling profile to evaluate the potential economic impact of this expenditure to 2016  Carry out a gap analysis to identify the potential economic contribution of public procurement expenditure to achievement of the overall 2016 RES targets 1st May 20072Adam Wilkinson www.beyondprofit.org/procurement

3 1st May 2007 Adam Wilkinson www.beyondprofit.org/procurement 3 Baseline impact on GVA GVA £mDirectOtherTotal Primary industries1.612.153.75 Secondary industries95.6336.74132.37 Manufacturing49.3822.8772.24 Energy and water75.4074.52149.92 Construction342.60121.46464.06 Services263.1874.34337.52 Total827.79332.071159.86 Public sector directly accounts for £10.39 m or 30.2% of total GVA

4 Baseline Impact FTE 1st May 20074Adam Wilkinson www.beyondprofit.org/procurement FTE CreatedDirectOtherTotal Primary industries123.99162.56286.94 Secondary industries2854.53917.553772.87 Manufacturing1945.86901.322847.18 Energy and water3360.503410.226771.11 Construction7522.222613.5610135.38 Services9050.132736.7611787.68 Total24857.2210741.9635601.17

5 Merged Baseline impact (DBS) 1st May 20075Adam Wilkinson www.beyondprofit.org/procurement IN ADDITION TO THE 261,000 ALREADY EMPLOYED (23.7%) WORKFORCE

6 Projection Public Sector budget GVA £mDirectOtherTotal Primary industries000 Secondary industries-3-2-5 Manufacturing-3-4 Energy and water-4 -7 Construction-17-6-23 Services-14-4-17 Total-40-16-56 1st May 20076Adam Wilkinson www.beyondprofit.org/procurement 3% reduction in public procurement spending 2008 – 2011. Then flat to 2016

7 1% annual increase in regional procurement sourcing 1st May 20077Adam Wilkinson www.beyondprofit.org/procurement

8 Combination of -3% and +1% 1st May 20078Adam Wilkinson www.beyondprofit.org/procurement

9 Online interactive report 1st May 20079Adam Wilkinson www.beyondprofit.org/procurement

10 1st May 2007Adam Wilkinson www.beyondprofit.org/procurement10

11 1st May 2007Adam Wilkinson www.beyondprofit.org/procurement11

12 Where are the opportunities ?  Identify the strengths of the private sector in the North East  Strategic support to increase public sector respend locally has measurable impact on the economy and RES objectives  Same approach has the probablility of strengthening the Regional ability to complete for national public procurement offering the double win.  Achieved only by joint working across all sectors of the economy. 1st May 2007Adam Wilkinson www.beyondprofit.org/procurement12

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