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Sport Sector Strategy for England’s Northwest Summary 2010-2020
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A Sport Sector Strategy for England’s Northwest Sport is vital to the economy of the Northwest. As a business sector it employs nearly 100,000 people and generates a turnover of £6.5 billion. In 2006 Gross Value Added (GVA) for the sector reached £1.9 billion. GVA per full time employee was £28,300 per annum, significantly higher than the national average. These figures alone however cannot do justice to the far-reaching benefits that sport brings to the region. International events previously held in the Northwest, such as the Commonwealth Games, and regular features of the Northwest sporting event calendar, such as the Grand National, make a unique contribution to the image and profile of the Northwest, as do global brands such as Manchester United and Liverpool FC. As well as helping to make the region an attractive place to live, visit and work in, sport can play a major role in tackling wider health and social issues. The region has an excellent sporting infrastructure, a strong network of professional sport clubs and a stunning environment for outdoor adventure. Real opportunities for further growth are now opening up in the sector. This is aided
Defining the Sport Sector With no universally-accepted definition of the sector, the following has been developed in consultation with key partners and stakeholders. The Sport Sector consists of:
‘Businesses involved both directly and indirectly in the provision, delivery and servicing of sport, casual and organised, through participation and spectating, which contribute to physical and mental health and well-being, whether this is for communities or individuals.’
by the Government's drive to promote healthy living and the advent of the ‘golden decade of sport' heralded by the UK's hosting of major events, including London 2012. However, the region will only reap the full rewards of this growth if key stakeholders plan and act together in a strategic way. This strategy provides a framework for the sustainable development of the sport business sector over the next ten years. The strategic aims for the region are to: • support the growth of sport businesses; • increase innovation in the sector to improve product development and service delivery; • promote coordinated activity to ensure maximum leverage of investment into the region; and • maximise the economic, social and health benefits that sport brings to individuals and communities across the region.
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The National Context The Sport Sector Strategy for the Northwest has been developed in the context of two main policy aims: • To create a world leading sporting nation by 2012, as set out in Playing to Win: A New Era for Sport (2008) produced by The Department of Culture, Media and Sport • To lead on the promotion of physical activity as a route to health and wellbeing, as set out in their guidance Be Active, Be Healthy (2009) written by The Department of Health. While there is no regional policy context for developing sport as a business sector, the Government’s strategies provides vital impetus by promoting participation and investment.
The Regional Context The Regional Economic Strategy highlights sport’s wide–ranging contribution to the region’s prosperity and community well-being (see figure 1). It refers to the need to develop the business of sport, including actions to secure major events, develop business opportunities linked to major events, increase the competitiveness of sport businesses, and promote access to sport and physical activity. This Sport Sector Strategy shares aims with other regional strategies aimed at specific elements of the sport and outdoor activity sector, including A Strategy for Major Events in England’s Northwest (2004) and the Strategy for Tourism in England’s Northwest 2003–2010.
Figure 1: Impact of the Sport Sector
Strategic Impact
Increase Productivity
International Trade Outcomes
Grow the workforce
Inward Investment
Supply Chain Opportunities Enterprise (inc. social)
3rd Sector
Social Inclusion
Improved Health
Physical Regeneration
Employment
Community Regeneration
Tourism Development
Image of the Region
Sport Sector
Consumer Demand
Technological advancements
Drivers New Outdoor Sports
Major events e.g. London 2012
Government Policy to Increase Participation
Government Policy to Tackle Obesity and Promote Well-being
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Regional Strengths The Northwest plays a vital role in the sport sector in England. Compared to other regions, it has a higher-thanaverage percentage of sport businesses, sector employees and turnover generated. The sector has 8,350 businesses, 97,565 employees and generates a turnover of £6.5 billion. The region is home to the UK head offices of large companies such as Adidas, Umbro, Total Fitness and DW Sports Fitness and several national governing bodies of sport, such as British Cycling, English Lacrosse and the British Mountaineering Council. This strategy focuses on four clearly identifiable subsectors with the potential for economic growth: • major sport venues and professional sport clubs; • specialist businesses supplying the sport sector; • outdoor adventure; and • advanced flexible materials (AFM) for sport.
Major sport venues and professional sport clubs
Specialist businesses supplying the sport sector
The Northwest is home to internationally renowned sport clubs and stadia.
This is a diverse cluster of businesses which serve the needs of individual consumers, sport clubs and sporting events. It includes construction, security, hospitality, clothing and equipment, marketing and ICT.
Football clubs enjoy the highest profile, but together the 38 professional sport clubs in the region, which also feature rugby league, rugby union and cricket, generate turnover of £511million and employ 2,885 people. These clubs are spread across the region although most are concentrated in the major conurbations of Greater Manchester and Merseyside. Sporting activities attract over 150,000 people to the Northwest every week, a vital source of income to suppliers of food, drink, transport and accommodation. 4
Major events such as the Grand National generate significant income for suppliers of accommodation, food and transport. Northwest companies already have an enviable track record of supplying goods and services to global events including the FIFA World Cups in 2006 and 2010, and the Beijing Olympic and Paralympic Games in 2008.
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Outdoor adventure
Advanced flexible materials for sport
The Northwest’s coast and countryside provide perfect environments for a rich mix of outdoor activities, attracting people from all over the world.
Advanced flexible materials manufacture remains concentrated in central Lancashire and the northern part of Greater Manchester.
Outdoor adventure is a small and very diverse subsector comprising 483 businesses, many of which are based in Cumbria and Lancashire. The sub-sector employs 2,655 people and generates £44 million GVA. Participation in most outdoor sports is growing, and the sub-sector is a major contributor to the region’s visitor economy.
The concentration of the industry in the region is the most significant in Europe and accounts for two-thirds of UK manufacturing capacity. There are over 480 advanced flexible materials companies, one third of which produce materials for sports goods, employing 37,000 people in the Northwest. The companies combined turnover amounts to £3.97 billion with 70% of sales generated by exports.
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Opportunities The sport sector grew dramatically between 1998 and 2006, with a 63.6% increase in the number of sport employees in the Northwest (compared to a national increase of 39.7%). We predict this growth will continue, based on longer-term trends for increased personal disposable income and a growing awareness of the importance of healthy lifestyles. Innovative technology will open up new markets, and large construction projects on new stadia and sport facilities are planned. Sport’s profile will continue to boom, boosted by London 2012 and the golden decade of sport, with major events continuing to generate huge secondary spend. The Northwest sporting profile will benefit significantly from the relocation of BBC Sport and Radio 5 Live to MediaCityUK .
Challenges We must act now if the region is to reap maximum reward from these opportunities. Currently the sport sector is fragmented, with little networking and collaboration between businesses. Better mechanisms are needed to encourage innovation, aided by knowledge transfer from Higher Education Institutions. We must continue to promote the region’s status as a world-class location for major events and sport businesses. We need to develop the sport sector workforce using evidence of its current and future skills needs. A more strategic approach will support the delivery of the necessary facilities and infrastructure. There is also considerable potential for sport to impact on community regeneration if partners adopt a more coordinated approach. These challenges will be addressed through the Sport Sector Strategy and Action Plan.
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Strategic Framework Our vision for the sport sector in the Northwest is: “A cluster of forward-looking businesses, focussed on the delivery of leading edge products and services to businesses, individuals and communities. As well as supporting economic growth, the sector will promote social inclusion, community and physical regeneration, and improved health amongst the population whilst developing the Northwest as the premier UK region for sport” We will realise this vision by focusing action on four strategic aims:
• • • •
retaining and supporting the growth of new and existing sport businesses; increasing innovative activity in the sector to improve product development and service delivery; promoting the coordination of activity to maximise investment into the region; and maximising the economic, social and health benefits of sport to individuals and communities across the Northwest.
The Action Plan for delivering these strategic aims contains approximately 50 specific tasks, grouped into seven strategic themes. 1. Networking and support 2. Innovation 3. Place making, image and profile 4. Skills 5. Infrastructure 6. Health community and regeneration 7. Strategic influencing The three cross-cutting principles for the strategy are: Sustainability - ensure that the development and growth of the sport sector in the Northwest is economically, socially and environmentally sustainable in the long term. Connectivity
- ensure that all parties, including consumers and businesses, in the sport sector make the best use of ICT and digital technologies to maximise growth in the sector.
Accessibility
- ensure that the development and growth of the sport sector is inclusive to all businesses, individuals and communities.
The tables below set out a shortened version of these tasks. Full details can be found in the complete Sport Sector Strategy document which can be downloaded at www.nwda.co.uk/sportstrategy
Action Plan Strategic theme 1: networking and support Objective
Action
1a. Provide all sport businesses with access to the right support to increase their competitiveness and productivity
1.1
Target business support to sport businesses exhibiting growth potential
1.2.
Develop marketing campaigns to promote business support services to sport businesses
1.3
Organise a regular programme of networking events to promote future developments, knowledge transfer and the exchange of best practice
1.4
Support businesses, through CompeteFor, to compete for London 2012 business and wider sporting event opportunities
1.5
Develop and maintain a Northwest sport sector website
1.6
Support sport businesses to access international markets linked to major sporting events and sport-related infrastructure projects
1b. Support sport businesses to export
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Action Plan Strategic theme 2: innovation Objective
Action
2a. To improve the sport sector’s ability to adopt new products/processes and innovate to increase productivity
2.1
Promote the world class capabilities of HEIs that exploit the growth potential of the sector
2.2
Promote and develop the strong cluster of businesses with a proven track record of supplying Major Sport Events
2.3
Develop a ‘lean’ servicing pilot with 3 major sport venues/professional sport clubs to improve business performance
2.4
Produce regular forecasting and economic impact reports to build the strategic intelligence of factors affecting the sector
Strategic theme 3: place making, image and profile Objective
Action
3a. Promote the Northwest as a world-class location for sport businesses to attract further investment
3.1
Market the sporting strengths of the region focusing on raising awareness amongst target audiences (e.g. investors) of the regions: - high profile brands and high growth sport businesses; - location strengths; - sporting facilities and infrastructure; - specialist sport businesses supplying major sport events; and - outdoor adventure offer to visitors from within and outside the region
3.2
Develop England’s Golf Coast, maximising its tourism, marketing and business development opportunities
3b. To attract and develop sport events of national and international standing
3.3
Promote the region as the location of choice for major sporting events, including Pre Games Training Camps for major events
3c. To raise the profile of the region as a destination of choice for outdoor adventure sport businesses and sport tourism
3.4
Develop event strategies for specific sports
3.5
Develop marketing strategies to raise the profile of the sport offer to visitors
Strategic theme 4: skills
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Objective
Action
4a. To develop the skills base of the existing and future workforce to meet the needs of the sector
4.1
Promote methods of addressing sector skills gaps and shortages to enable HEI and FEI providers to develop appropriate courses
4.2
Support the Northwest base of the National Skills Academies so they help sport businesses to grow
4.3
Develop links with the National Skills Academy for Hospitality to improve the hospitality skills of sport businesses
4.4
Research skills needs and develop plans to ensure provision meets employer needs, focusing on the following priorities: major sport venues and professional sport clubs, outdoor adventure and suppliers to major sport events
4.5
Develop and promote the establishment of a Regional Coaching Agency
4.6
Develop opportunities arising from the Northwest 2012 Skills Action Plan to develop the skills base of the sport sector
4.7
Develop local pathways to employment projects, using sport, linked to local job opportunities
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Strategic theme 5: infrastructure Objective
Action
5a. To develop the right infrastructure to support the growth of the sport sector in the Northwest
5.1
Develop proposals for the development of the sporting infrastructure linked to major regeneration programmes
5.2
Develop a network of 'sport villages' across the Northwest
5b. To encourage the development of the outdoor adventure offer in the Northwest, including improvements to the infrastructure to meet the future needs of consumers
5.3
Develop plans & strategies to improve the outdoor adventure offer from both the location and thematic perspective
5.4
Develop the accommodation offering to meet the needs of the outdoor adventure market
5.5
Develop existing and new infrastructure trails to provide inter-linked routes for outdoor adventure activities
5.6
Undertake a feasibility study into establishing a National Centre for the Outdoors in the Northwest
Strategic theme 6: health, community and regeneration Objective
Action
6a. To maximise the contribution of sport to health, community and regeneration agendas
6.1
Promote new ways of using ICT and digital technologies to encourage take up of physical activity and sport
6.2
Develop a stronger enterprise culture and encourage new start-ups (including social enterprises) in sport
6.3
Develop plans to create a national hub for sport broadcasting, building on the development of MediaCityUK and the relocation of BBC Sport & Radio 5 Live
6.4
Develop specific plans to encourage participation in outdoor sport activities amongst 1) local communities and 2) visitors to the region that support government policies to increase participation in sport and develop healthy lifestyles (e.g. Change 4 Life)
6.5
Develop plans for an integrated regional cycling development programme to maximise the growth from cycling in the region
6b. To increase levels of participation in sport in the Northwest, especially among under-represented groups, linked to maximising business opportunities
Strategic theme 7: strategic influencing Objective
Action
7a. To ensure maximum leverage of investment into the region to support the development of the sport sector
7.1
Establish a strategic Sport Sector Advisory Group to oversee delivery of the Sport Sector Strategy
7.2
Develop an interactive and web-based toolkit for the sport sector to measure its economic and social impact
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Delivering the strategy One of the priority actions highlighted in the Northwest Sport Sector Strategy is to establish a forum for the sector. The NWDA will deliver this strategy in partnership with other key public and private sector stakeholders. The Sport Sector Advisory Forum, coordinated by NWDA, will: • provide strategic direction; • influence the public sector delivery of actions; • provide advice and influence the leverage of investment into the region; • help coordinate and deliver a sporting legacy from London 2012; and • members will act as 'champions' for the Northwest sport sector on a regional, national and international platform. Membership of the Forum will be drawn mainly from private sector businesses and key stakeholders involved in developing the sport sector. An Operational Group will also be set up to coordinate and review delivery of the annual work programme. The group will consist mainly of public sector organisations including Business Link Northwest, UKTI, SkillsActive and National Skills Academy.
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Measuring success A range of Key Performance Indicators to measure success and monitor progress have been identified.
Key Performance Indicators
`
PRIMARY INDICATOR: GVA per head and total GVA for sport sector
The number of business start-ups and their survival rates Business density Increased skills levels (via SkillsActive)
Measuring success Monitoring progress
Number of businesses assisted through Business Link Northwest Business Link Northwest customer satisfaction results
The Sport Secor Forum will review Key Performance Indicators (KPIs) for actions, ensuring that they are specific and measurable and deliver the primary indicator - increased GVA for the sport sector.
The long game The Sport Sector Strategy has been developed in partnership with representatives from sports businesses, public and voluntary sector organisations, and academic institutions. Delivering the strategy will require partners to work together with the sort of dedication and commitment that we associate with our professional sportsmen and women. Sport may not be a priority sector in the current Regional Economic Strategy, but it touches the lives of almost everyone in the Northwest to some degree. We hope this strategy gives a flavour of its importance to the region, and inspires belief that it is a sector well worth nurturing over the next ten years.
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Renaissance House, Centre Park, Warrington, WA1 1QN Tel: +44 (0)1925 400 100 Fax: +44 (0)1925 400 400 www.nwda.co.uk www.englandsnorthwest.com www.visitenglandsnorthwest.com
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