Military in North Yorkshire worth £600m a Year to the Economy

22/02/2010

A report released today has found the Ministry of Defence (MOD) is worth almost £600m a year to North Yorkshire.

Yorkshire Forward in partnership with the MOD, North Yorkshire County Council, Richmondshire District Council and Tees Valley Unlimited commissioned SQW Consulting to explore the economic impact of the military presence in North Yorkshire.

The research focussed on the Catterick Garrison Administration Area (CGAA) which has the largest concentration of Defence activity in York and North Yorkshire and where growth is possible in the future. Evidence for the report was gathered from publicly available statistics, internal MOD data and consultation with key partners and MOD staff.

The report identified last year the MOD employed over 17,000 people in North Yorkshire, with most being based in Richmondshire which is home to Catterick Garrison, and almost half the people in Richmondshire are employed by the MOD.

The size of the military presence in North Yorkshire has provided a strong pull for investments in educational, retail and leisure services. It has supported the housing market and has the potential to bring skilled service leavers into the local workforce.

The study highlights that up to 800 military people leave the services each year in North Yorkshire. They have high level technical and engineering qualifications with organisational and leadership skills that would contribute positively to the local economy. The main challenge for leavers is finding suitable job opportunities in North Yorkshire.

The MOD prepares leavers for life outside the force, and locally it is mounting a major initiative with Yorkshire Forward and York England to raise awareness among local business leaders of what leavers can offer.

The study identified that the MOD procured at least £61m of goods and services each year in CGAA and 64% of the value of these contracts was retained by businesses in Yorkshire and Humber. It was identified that local businesses need to take advantage of CGAA contracts and the MOD needs to raise awareness by providing local suppliers with information on the opportunities to do business.

The MOD’s Military Civil Integration (MCI) Project brings key military and civil Stakeholders in North Yorkshire together to maximise the benefits of this major economic presence in the interest of both communities. Joint working on local procurement, housing, employment and children’s issues is already making a difference.

Other key facts the report highlights is the vast amount of capital investment the MOD has invested in North Yorkshire. Between 2004 and 2008 the MOD invested £308m on capital projects which includes accommodation, messes and medical facilities creating an estimated 170 temporary construction jobs per annum over this period.

Tom Riordan, Chief Executive of Yorkshire Forward commented; “The report demonstrates the sheer scale and impact of the military’s presence in North Yorkshire which contributes a staggering £600m a year to North Yorkshire’s economy.  It is important that we understand the economic impact the MOD has in our region in order to make the most of the opportunities it offers. From skilled leavers, to procurement contracts – the opportunities are vast for North Yorkshire’s and Yorkshire and Humber’s businesses.”

Brigadier David Maddan, who is Chairman of the MCI Main Board commented; “The study shows exactly how important the armed forces’ presence in North Yorkshire is to its economy and that of Yorkshire and the Humber.  The soldiers and airmen who serve and deploy overseas from here are making a huge contribution to the Nation’s defence. Now we can see the scale of the economic benefit they bring as well, and we owe it to them to ensure that they get a good deal from local service providers such as health and education. We also want to ensure that local businesses are aware of the outstanding skills that ex servicemen offer so those they want to can settle in Yorkshire for their second career.”

Notes to editors:

Yorkshire Forward

  • Yorkshire Forward is the Regional Development Agency behind the economic regeneration of Yorkshire and Humber. It aims to make a positive difference by investing in jobs, improving towns and cities, and in supporting businesses throughout the region. 
  • Yorkshire Forward’s investment across the region is maximised by attracting European Regional Development Funding. 
  • For further information, images or to arrange an interview, please contact Laura Scholey, Press Manager on 0113 3949540 or email laura.scholey@yorkshire-forward.com