The Local Economy

Much of Stevenage's success is due to its industry and commerce. There are two main business areas in the town - the Gunnels Wood area on the west side of the town, and the Pin Green area in the north-east. The town also provides further employment in shops and service industries, located primarily in the town centre and Old Town, but also in the schools and neighbourhood centres located throughout the town.

'The breakdown of the employment
sectors in 2002 was:'

Source: Business Strategy, Spring 2002

Types of Industry
Early economic growth was stimulated by manufacturing companies moving into the town. The resultant jobs were concentrated in aerospace, instrumentation, mechanical and electronic engineering and chemicals.

Since then manufacturing, whilst still important, is no longer the most dominant industry and new industries such as computing, research and development, pharmaceuticals and financial services have become established in Stevenage.

Distribution, both wholesale and retail is also important. Owing to its strategic location, Stevenage has attracted several large distribution centres, including John Lewis and Dixons.

Skills
Stevenage has traditionally had a highly skilled workforce, due to the existence of many firms based in the engineering and aerospace sectors. Economic restructuring and the ending of the 'Cold War' in the 1980's and early 1990's led to a scaling down of the workforce in these sectors, and hence there is a pool of skilled labour to be tapped into.

The unemployment figure in December 2004 was 1.6% with an economically active population of about 50,400. The skills base of the town has been further strengthened in the 1990's by diversification into the financial services, information technology and pharmaceutical sectors.

This is supported by a well qualified workforce in the county of Hertfordshire as a whole, where 30% are qualified to degree level and 55% of GCSE students (16 years +) attain 5 or more GCSE grades A-C.

The 'Stevenage Brighter for Business' campaign began in January 1995. It is a partnership between Stevenage Borough Council and major local companies to encourage companies to start up in or relocate to Stevenage.

The following are just a few examples of the recent investments made by business in Stevenage:

GSK is one of the major successes since the campaign began. The Queen officially opened a new medicines research centre for the company in April 1995, employing 1500 staff, with an investment of over £700 million.

The centre now employs 2,000 scientists, research technicians and support staff.

A skilled local workforce was one of the main factors behind IFR's decision to move their headquarters to Stevenage in 1995. The HQ in Norton Green Road employs 350 staff in ground-breaking communications work. Not only does the company benefit from the skills of its own workforce but also from the support of numerous other local companies.

EADS Astrium is a joint venture owned by EADS and BAe Systems which continues to win a number of large space infrastructure related contracts. It employs 1,500 people in Stevenage.

UIA (Insurance) Ltd relocated from Central London to Stevenage in 1995. The home contents insurance company are owned by members of the trade union UNISON. UIA initially brought 65 jobs to the town, and has since recruited 140 staff at its head office and contact centre based in Stevenage.

Dixons Warehouse Distribution Centre For many years Dixons have been a major employer in the town at their warehouse distribution centre in Stevenage. The company has recently expanded its site, increasing its workforce.

The Stevenage Leisure Park opened in 1996, represents a massive vote of confidence by the leisure industry in Stevenage. Situated next to the main line railway station and a short walk from the town centre and bus station, the Leisure Park is home to a 12 screen Cineworld cinema, a ten pin Hollywood bowling alley, a David Lloyd Fitness Centre and numerous bars, restaurants and nightclubs. The Park employs around 800 people in Stevenage.

Total Employment in Stevenage by unit size

source: Hertfordshire Local Economy Assessment 2001