Statistical Bulletin: NO IND/1999/C1.9 :1

Statistical Bulletin: NO IND/1999/C1.9

1. Introduction

1.1 This Bulletin updates the detailed analysis of the electronics industry in Scotland contained in the previous Bulletin, C1.8, published April 1998. It presents statistics relating to employment, output, gross value added (GVA) per employee and capital investment, for the most up-to-date period available from the UK-wide inquiries carried out by the Office for National Statistics (ONS).

1.2 Data for 1992 onwards are available at Standard Industrial Classification SIC92. This Bulletin presents output data for 1993 to 1997 from the Scottish Index of Production, and employment, GVA per employee, ownership and capital expenditure data from the Scottish Production Database (SPD) for 1992 to 1996, based on SIC92. Earlier Bulletins covered the period 1983 to 1994 at SIC80.

1.3 Using the SIC92 classification system, the electronics industry is defined as including seven Activity Headings (see Annex for definitions). This is a more accurate definition than under SIC80 where at the most detailed level it was not possible to separate all non-electronics and electronics manufacturing activity. This results in a reduced estimate of Scottish electronics industry employment.

2. Main Points

2.1 Output (at 1995 constant prices) for the Scottish electronics industry rose by 16 per cent in 1997, compared to growth of 5 per cent in total manufacturing.

2.2 The estimated number of employees (adjusted for part time workers), in Scotland, in plants classified to the electronics industry in 1996, was approximately 39,800. The share of total manufacturing employment attributable to the electronics industry increased from under 10 per cent in 1992 to nearly 13 per cent in 1995 and fell to just under 12 per cent in 1996.

2.3 Between 1995 and 1996, there was a fall from 48 to 42 per cent of all employment in the Scottish electronics industry which was within UK-owned plants. USA-owned plants accounted for the largest share of employment within the electronics sector in Scotland in 1996, with 46 per cent.

2.4 In 1996, Gross Value Added (GVA) per employee, at current prices, in the electronics industry fell by 4 per cent compared to 1995. Total Scottish manufacturing GVA per employee rose by 2 per cent.

2.5 In 1996, investment, in terms of net capital expenditure by the electronics industry, accounted for 26 per cent of all investment by Scottish manufacturing industries. The industry’s investment figure decreased by 31 per cent between 1995 and 1996, with a total spend in 1996 of Ł457.4 million.

3. Output

3.1 Between 1993 and 1997, the electronics industry in Scotland increased output by an average of 20 per cent per annum, in real terms. The leading sector was electronic components (see Annex for definitions) which had an annual average growth rate of 22 per cent. This was followed by the annual average growth rate for data processing equipment, which was 21 per cent (see Table 1 and Fig 1).

3.2 Between 1996 and 1997, the electronics industry saw growth in real terms of 16 per cent. This follows a real terms growth rate of 18 per cent between 1995 and 1996. The rise in electronics output between 1996 and 1997 was made up of rises in 3 out of 4 of its constituent sectors with only electronic instrument engineering experiencing a fall in output over the year (-7 per cent).

TABLE 1: INDICES OF ELECTRONICS AND MANUFACTURING OUTPUT 1993-97⁽¹⁾

Index Values 1995 = 100⁽²

Year	Data Processing Equipment	Electronic Components	Electronic Instrument Engineering	Other Electronics	Total Electronics	Non- Electronics	Total Manufacturing
Weight⁽³⁾	64	68	13	4	149	678	827
1993	69.5	59.1	96.9	69.3	67.2	95.5	90.4
1994	82.4	81.8	96.5	80.6	83.3	98.1	95.5
1995	100.0	100.0	100.0	100.0	100.0	100.0	100.0
1996	132.1	105.1	118.7	105.2	117.9	99.8	103.1
1997	151.0	130.6	110.3	123.5	137.3	101.6	108.1
% Change 1996-97	14.3	24.3	-7.1	17.4	16.5	1.8	4.8
% Change per annum 1993-97	21.4	22.0	3.3	15.6	19.6	1.6	4.6

Source: Index of Production for Scotland⁽⁴⁾

Notes
1. For definitions see Annex, "Statistical notes and definitions".
2. Constant 1995 prices.
3. Total Production = 1000.
4. As published at 1998 Q3 on 3 February 1999 (for details see Annex).

3.3 Scotland’s manufacturing industry relies considerably on the electronics industry. In the 4 years since 1993, total manufacturing output rose by 20 per cent. Without the contribution of the electronics industry, total manufacturing in Scotland would only have shown a 6 per cent rise over the same period.