Business has always discussed the indigenous versus the inward investment needs of the economy.The naive say that Wales cannot rely on inward investment .In a minute we might only have indigenous to rely upon.That would be a disaster.The answer is that Wales needs both.The SME sector feeds off the larger investors Bosch, Visteon, Hoover, Linemar,Indesit are all brands we have lost in recent times.Investment sticks for a while and key inputs are developed in the economy.
The continued denial that figures on the economy are not important reminds us of rugby teams who think that performance is more important than winning.If you win you usually perform.Oxford Economics, a consultancy, in forecasts for the Financial Times, calculates that London and south-east England will create jobs at more than twice the rate of the rest of the UK over the next five years.Well that is not a surprise but do not deny it-embrace it as a challenge.Wales needs to draw investment passed Avonmouth and Chester.Let's roll up our sleeves.
If Wales is going to succeed it needs targets not politics.
According to the FT this week:
HOW THE WORLD MAKES ITS LIVING -Private sector to take the lead in UK jobs growth.
Where will employment growth come from?
- Manufacturing has only an 8 per cent share of the UK’s 31m jobs, compared with 24 per cent three decades ago. Short of a dramatic reversal of its long-term decline, it is too small to provide a large proportion.
- Services, which have generated 8m new jobs since 1980 – the majority in the private sector – are likely to take the strain once more. Their share has grown from 64 per cent then to 83 per cent today, according to the Office for National Statistics.
- Boundaries between manufacturing and services have blurred: much of industry today sells advice as well as hardware while services such as consultancy feed off manufacturing. But most people’s jobs are unlike the blue-collar roles of former generations.
- Health and social work has experienced the biggest increase: jobs in the sector have doubled to almost 4m since 1980, driven by Labour’s heavy investment in the National Health Service during the past decade. Even though the NHS is ring-fenced from spending cuts, it is unlikely to grow so fast in future.
- Education, another state-driven sector, has added 1m jobs to reach 2.7m. Spending cuts will hold it back, while public administration, defence and social security, which account for 1.8m posts, seem set to shrink.
That leaves predominantly private sector categories. More than 1.5m jobs have come in professional, scientific and technical activities – a trebling in 30 years to 2.3m. This includes lawyers, management consultants, advertising and marketing staff and designers as well as scientific researchers.
More than 1.3m jobs have come in administration, taking today’s total to 2.4m. Hotels, restaurants and bar jobs have grown by 600,000 to 1.9m. Retail and wholesale have added 400,000 to reach 4.7m. Since 2008, this category has also lost 400,000 but it may grow again in a recovery.
Arts, entertainment and recreation have grown by 330,000 to 850,000. Much hope is vested in the creative economy, although state-subsidised arts will be hit by spending cuts. Finance and insurance come relatively low down the list, having grown by 200,000 to 1.1m jobs. Employment in property has grown faster, up by 260,000 to 450,000.
Information and communication provide 1.1m and transport 1.4m, both up slightly. Construction provides 2m, barely up on its 1980 level. This cyclical industry has lost 300,000 jobs since 2007, and its recovery will be held back by public spending cuts.
SEE - Balance and Power by Brian Groom in FT
http://www.ft.com/cms/s/0/e25aeeda-94f1-11df-af3b-00144feab49a.html