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Thursday, December 14, 2017

Maritime Moves 95% of UK's Global Trade

October 12, 2017

Photo: Maritime UK

Photo: Maritime UK

 The Maritime sector makes a substantive macroeconomic contribution to the UK through turnover, Gross Value Added (GVA), employment and through the compensation of employees., says a report by Maritime UK, which is  commissioned the Centre for Economics and Business Research (CEBR)  to estimate the value of the UK maritime sector.

 
The CEBR findings were formally launched in Parliament on Wednesday 13 September 2017 by Maritime Minister, Rt Hon John Hayes MP, Chair of International Trade select committee, Angus MacNeil MP, former Maritime Minister Jim Fitzpatrick MP and Maritime UK Chairman David Dingle
 
It is estimated that the sector directly supported just over GBP 40 billion in business turnover, GBP14.5 billion in GVA and 185,700 jobs for UK employees in 2015. 
 
The marine and shipping industries are the largest constituent industries terms of economic activity, contributing £6.5 billion and £4.3 billion in GVA respectively, and directly supporting around 99,500 jobs and 50,800 jobs respectively in 2015. 
 
The substantial direct economic contribution of the Maritime sector exceeds those of other comparable industries. For example, the sectors direct turnover contribution of just over £40 billion compares to £31.1 billion from the entire Aerospace industry in 2015; similarly, the sectors direct GVA contribution of £14.5 billion compares favourably to £10.0 billion from the Aerospace industry.  
 
The direct contribution of the Maritime sector through turnover, GVA and employment has increased since 2010, when turnover, GVA and employment are estimated to have been £35.5 billion, £13.6 billion and 178,800 jobs respectively. Average productivity in the Maritime sector – as measured through the GVA generated by each job – exceeds that of the national average. Average productivity in each maritime industry also exceeded the national average in each year from 2010 to 2015. 
 
The Maritime sector also helped to raise billions of pounds each year to the UK Exchequer and made a sizeable contribution to UK trade through exports of goods and services. The sector contributed an estimated total of just under £4.7 billion in tax revenues in 2015, or 0.7% of total UK tax revenues, spread across Income Tax, NICs, VAT, Corporation Tax and Business Rates. The Maritime sector exported £12 billion of goods and services in 2015, or around 2.3% of the UK total. 
 
After quantifying the indirect economic impacts through the industry supply chains and induced effects on expenditures, it is estimated that the Maritime sector helped to support a total of £37.4 billion of GVA in 2015. This implies that, for every £1 in GVA directly contributed on average by the sector, a further £2.59 in GVA was generated across the UK economy. 
 
These aggregate economic impacts associated with the Maritime sector also extend to turnover, employment and the compensation of employees. It is estimated that the Maritime sector helped to support a total of £91.9 billion in turnover, 957,300 jobs and £21.0 billion through the compensation of employees in 2015. 
 
While the economic contribution of the industry is spread across all UK regions, London contributes the most to GVA and employment, both directly and more widely. In 2015, it is estimated that the industry in London directly contributed £4.3 billion of GVA (29% of the industry) and 35,800 jobs (19%). After indirect and induced effects are considered, the aggregate contribution from London rises to £8.9 billion of GVA (26%) and 236,000 jobs (28%). 
 
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