State of The Economy
For the Monthly Summary of business conditions in the United Kingdom, as reported by the Bank's Agents click here.
South Kesteven Economy
There have been further job losses at Pinguin, Grantham furniture company and Wordsworth Holdings. However, all of this must be put into perspective. South Kesteven is an economically successful area and there is evidence to support this.
Environcomhas now successfully relocated onto the former Corus steel site. They attracted significant interest at the Jobs Fair.
We are also currently supporting other employers in their search for premises to support planned expansions - more news to follow in due course.
The latest phase of construction on theTegometallplant at Gonerby has now been completed.
There are also proposals being put forward within the District to introduce further quality office and commercial premises.The Deepings Business Incubation Centreproposals are being currently worked up by the architects and a planning application will be submitted shortly.
Growth Point- work is now underway on the Grantham town centre development brief proposals for Greyfriars and Station Point. The Growth Point website should be updated to reflect recent changes within the month.
Housing- SK prices are bucking the trend with the highest prices in the County and by far the highest average price (£201,506) and highest annual (4.4%) and quarterly growth (9.7%). Nearly all other areas are experiencing price decreases.
Agriculture- Returns on crops such as wheat have soared and land prices are hitting new highs in Lincolnshire. The stock market and housing market have both seen big falls in recent months but overseas investors and investment companies in particular see Lincolnshire farmland as good quality affordable farming land and this is driving the dramatic surge in prices. Lincolnshire land which was fetching £2500 an acre a few years ago, is now fetching upwards of £5000, an acre with 30 buyers for every one farm
Jobs Fair- In October, following the Fenland closure, we hosted a Jobs Fair at the Guildhall with JobCentrePlus. This was attended by nearly 400 jobseekers and over twenty exhibitors were present. 198 of the 735 ex-Fenland staff applied for Jobseekers allowance - a lower than feared figure. It is encouraging that many have managed to find alternative employment in spite of the current economic downturn.
However there are likely to be several underlying reasons beyond these low figures. Many of the migrant workers are returning to their countries of origin as the advantages of working there are increasing compared to the benefits of working here. Many staff are drawing down on their savings or have gone part time. With Jobcentre Plus, we will be monitoring the outcomes from the event and the success of those recently made redundant in finding alternative employment.
We have also recently promoted and supported a series of business events - "Is it for me" at Queen Eleanor Technical College and "Motivate me" at Stoke Rochford both of which were well attended.
We are currently working with the GMB Union on a package of measures to support those made redundant into getting back into work, up-skilling and overcoming any barriers to accessing the support available.
Looking ahead
It is a priority of SKDC economic team to actively seek new quality employment into the area.
There are many obstacles to this:
Suitable available premises - we are working with our colleagues in Lincs County Council and our planning policy team to ensure that sites become available.
Brownfield sites - work is currently underway to identify and prioritise those sites that can be realistically brought forward for development. Many are unviable without public sector intervention and this exercise will assist future public funding decisions.
Marketing / inwards investment - we continue to market sites and opportunities for development across the region
Skills levels are low and hence we are working with the LSC and Business Link to promote the ever increasing government funded programmes available to businesses across the District. Major employers and local business groups will be approached over the coming months to provide updates on recent developments.
Page Last Updated: November 26, 2008