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

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Presentation transcript:

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

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

1st May 2007 Adam Wilkinson 3 Baseline impact on GVA GVA £mDirectOtherTotal Primary industries Secondary industries Manufacturing Energy and water Construction Services Total Public sector directly accounts for £10.39 m or 30.2% of total GVA

Baseline Impact FTE 1st May 20074Adam Wilkinson FTE CreatedDirectOtherTotal Primary industries Secondary industries Manufacturing Energy and water Construction Services Total

Merged Baseline impact (DBS) 1st May 20075Adam Wilkinson IN ADDITION TO THE 261,000 ALREADY EMPLOYED (23.7%) WORKFORCE

Projection Public Sector budget GVA £mDirectOtherTotal Primary industries000 Secondary industries Manufacturing-3-4 Energy and water-4 -7 Construction Services Total st May 20076Adam Wilkinson 3% reduction in public procurement spending 2008 – Then flat to 2016

1% annual increase in regional procurement sourcing 1st May 20077Adam Wilkinson

Combination of -3% and +1% 1st May 20078Adam Wilkinson

Online interactive report 1st May 20079Adam Wilkinson

1st May 2007Adam Wilkinson

1st May 2007Adam Wilkinson

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