09 Aug 2023
By Richard Muir, Deputy Chief Executive of Glasgow Chamber of Commerce
The challenges facing many businesses in Scotland have been well documented in recent times. The Scottish Chambers of Commerce quarterly survey last month underlined this point by revealing that overall growth is positive but "significantly subdued", with most firms reporting no change to investment levels. This makes prospects for medium and long-term growth more difficult.
However, despite the continuing difficulties, there has been some heartening news coming from some of the most prominent businesses in Glasgow in the last few weeks – something we must never lose sight of, especially in such tough times.
Firms in engineering and manufacturing, media, and life sciences all play a vital role in boosting the economy of Glasgow city region, which is the driving force of the Scottish economy, and they all have their own success story to tell this summer.
I’ll start with BAE Systems, which employs 3,900 people across Scotland, including at its Naval Ships business in Glasgow and manufacturing facilities at Hillend. From their half-year results last week, the company revealed it supports a vibrant supply chain and spent more than £500m with Scottish firms last year, sustaining a further 7,200 jobs in Scotland.
Newly-released research carried out by Oxford Economics shows the extent of BAE Systems’ contribution to the Scottish economy, including creating highly skilled jobs, funding world-leading research and sustaining a vibrant national supply chain.
Last year alone BAE Systems sustained a total of 14,800 jobs through this chain, which includes local communities in Scotland. The Company also recruited more than 300 apprentices and graduates in Scotland in 2022 and is also investing £300m in its Glasgow shipyards with improvements to dock and site infrastructure on the Clyde, helping to safeguard the city’s rich shipbuilding heritage.
Meanwhile, a short way along the banks of the River Clyde at STV, the acquisition of a major UK unscripted production group, Greenbird Media, has been announced in a £24m transaction. The deal enhances Glasgow-based STV Studios’ portfolio, growing the number of labels within the business from nine to 24 and places the business as one of the largest production groups in the UK.
TV production is recognised as a key growth sector of the Scottish economy and Glasgow is at its heart, establishing itself as a popular destination over the past decade for UK broadcasters who have increased the amount of content commissioned in the Nations and Regions. STV has become very successful as one of the UK’s leading content production businesses and STV Studios is the creative powerhouse behind many popular programmes such Bridge of Lies (for BBC One), Catchphrase (ITV and STV), and prison drama Screw (Channel 4) filmed in the Kelvin Hall in Glasgow.
Joining the list of recent successes is Merck, a leading science and technology company which has invested more than £30million in biosafety testing at its Glasgow and Stirling sites. Biosafety testing is a critical step in the drug development and manufacturing process and the expansion will create nearly 500 new jobs, bringing Merck's workforce to over 1,200 employees across the two sites.
This is great news for Glasgow as Merck has leased an additional 1,200sqm in West of Scotland Science Park to fit out as biosafety testing labs, adjacent to its existing buildings. The new building will be used for a range of Molecular Biology pathogen detection tests as well as other advanced genetic sequencing services which help to assure the safety of its clients’ products.
Merck serves a global client base who are, in turn, focused on developing cutting-edge therapeutics and vaccines. This reinforces the growing importance of Glasgow as a hub for science and innovation built on an excellent pipeline of talented new staff.
These recent success stories will all play a central role in shaping opportunities for high quality careers in the city region and add to Glasgow’s international reputation as a strong, diverse and compelling economy.
This article was first published in The Herald on Wednesday 9 August 2023
