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Public Procurement: Quantifying economic value in the North East. Adam Wilkinson Commissioned by One North East April 2007. Objectives. Quantify total public procurement expenditure in the North East and broad inward/outward investment patterns.

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public procurement quantifying economic value in the north east

Public Procurement: Quantifying economic value in the North East

Adam Wilkinson Commissioned by One North East

April 2007

objectives
Objectives
  • Quantify total public procurement expenditure in the North East and broad inward/outward investment patterns.
  • Analyse current economic impact of this expenditure on participation levels, productivity levels, and regional GVA, and model a baseline trend to 2016
  • Develop a modelling profile to evaluate the potential economic impact of this expenditure to 2016
  • Carry out a gap analysis to identify the potential economic contribution of public procurement expenditure to achievement of the overall 2016 RES targets

Adam Wilkinson www.beyondprofit.org/procurement

baseline impact on gva

Baseline impact on GVA

Public sector directly accounts for £10.39 m or 30.2% of total GVA

Adam Wilkinson www.beyondprofit.org/procurement

baseline impact fte
Baseline Impact FTE

Adam Wilkinson www.beyondprofit.org/procurement

merged baseline impact dbs
Merged Baseline impact (DBS)

IN ADDITION TO THE 261,000 ALREADY EMPLOYED (23.7%) WORKFORCE

Adam Wilkinson www.beyondprofit.org/procurement

projection public sector budget
Projection Public Sector budget

3% reduction in public procurement spending 2008 – 2011. Then flat to 2016

Adam Wilkinson www.beyondprofit.org/procurement

1 annual increase in regional procurement sourcing
1% annual increase in regional procurement sourcing

Adam Wilkinson www.beyondprofit.org/procurement

combination of 3 and 1
Combination of -3% and +1%

Adam Wilkinson www.beyondprofit.org/procurement

online interactive report
Online interactive report

Adam Wilkinson www.beyondprofit.org/procurement

where are the opportunities
Where are the opportunities ?
  • Identify the strengths of the private sector in the North East
  • Strategic support to increase public sector respend locally has measurable impact on the economy and RES objectives
  • Same approach has the probablility of strengthening the Regional ability to complete for national public procurement offering the double win.
  • Achieved only by joint working across all sectors of the economy.

Adam Wilkinson www.beyondprofit.org/procurement