Key facts
The Annual Business Inquiry covers approximately two thirds of the economy. The main sectors not covered are the financial sector and some of the public sector. The figures quoted below reflect this coverage and relate to 2007 unless otherwise stated.
Headline figures
- The latest figures show an increase in turnover between 2006 and 2007 in manufacturing, construction and services sectors. Whilst construction and services increased gross value added (GVA) between 2006 and 2007, manufacturing sector showed a slight fall.
- In terms of turnover, between 2006 and 2007, increases were as follows: services up by £3,833m (4%), manufacturing up by £935m (2%) and construction increased by £832m (6%).
- The main sectors saw the following changes in gross value added between 2006 and 2007: services up by £428m (1%), construction up by £336m (6%) and manufacturing fell by £160m (-1%).
- In 2007, GVA per employee in manufacturing (£61,300) was over twice as high as that in services sector (£29,500). Whilst labour costs per employee in manufacturing (£28,900) were nearly 50% higher than in services (£19,500). The lower levels found in services partly reflects the higher level of part time working in this sector.
- Scottish manufacturing accounted for around 7.7% of total UK manufacturing in terms of turnover and 8.5% in terms of GVA. Whilst equivalent figures for Scottish services were around 5.6% for turnover and 6.3% for GVA.
Size of specific industries
- The two industries with the largest turnover in 2007 (excluding Oil & Gas) were retail (£21 bn) and wholesale (£20 bn). In terms of GVA, the largest sectors were other business activities (which includes legal activities, architectural & engineering, labour recruitment etc) (£10 bn) and construction (£6 bn).
- Within the manufacturing sector, the top industry contributors in terms of gross value added were food & drink industry (£3.2 billion which equates to 23% of total manufacturing GVA) followed by chemicals sector (£2.1 bn / 16%) and manufacture of fabricated metal products (£1.3 billion / 10%). Together these three industries accounted for around half of total manufacturing GVA.
- Within the services sector, the top industry contributors in terms of gross value added were other business activities (£10.1 bn which equates to 27% of total services GVA) followed by retail (£5.3 billion / 14%) and wholesale (£3.7 billion / 10%). Together these three industries accounted for around half of total services GVA (which excludes the financial sector and some of the public sector).
Ownership of businesses in Scotland
- Within manufacturing, foreign-owned companies accounted for 32 per cent of GVA but only 28 per cent of employees, whilst Scottish-owned firms accounted for 41 per cent of GVA and 58 per cent of employees.
- GVA per employee for foreign manufacturing companies (£69,800) was around 60% more than GVA per employee for Scottish-owned firms (£44,000). However, labour costs per employee were around 50% higher in foreign manufacturing firms (£35,800) than in Scottish-owned companies (£24,400).
- Within services, foreign-owned companies accounted for 19 per cent of GVA but only 13 per cent of employees, whilst Scottish-owned firms accounted for 58 per cent of GVA and 64 per cent of employees.
- GVA per employee for foreign services firms (£42,500) was around 60% more than GVA per employee for Scottish-owned companies (£26,400). However, labour costs per employee were around 30% higher in foreign services firms (£24,000) than in Scottish-owned companies (£18,900).
Local authority figures
- Within manufacturing the top three local authorities in terms of gross value added were Falkirk (13%), Glasgow City (11%) and Fife (7%).
- Within services sector the top three local authorities in terms of gross value added were Glasgow City (16%), Aberdeen City and Edinburgh City (both 15%).
- Within manufacturing, around a third of local authorities accounted for less than 1% each of total GVA. Whilst, within services, seven local authorities accounted for less than 1% each of total GVA.