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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. 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

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  1. Public Procurement: Quantifying economic value in the North East Adam Wilkinson Commissioned by One North East April 2007

  2. 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

  3. Baseline impact on GVA Public sector directly accounts for £10.39 m or 30.2% of total GVA Adam Wilkinson www.beyondprofit.org/procurement

  4. Baseline Impact FTE Adam Wilkinson www.beyondprofit.org/procurement

  5. Merged Baseline impact (DBS) IN ADDITION TO THE 261,000 ALREADY EMPLOYED (23.7%) WORKFORCE Adam Wilkinson www.beyondprofit.org/procurement

  6. Projection Public Sector budget 3% reduction in public procurement spending 2008 – 2011. Then flat to 2016 Adam Wilkinson www.beyondprofit.org/procurement

  7. 1% annual increase in regional procurement sourcing Adam Wilkinson www.beyondprofit.org/procurement

  8. Combination of -3% and +1% Adam Wilkinson www.beyondprofit.org/procurement

  9. Online interactive report Adam Wilkinson www.beyondprofit.org/procurement

  10. Adam Wilkinson www.beyondprofit.org/procurement

  11. Adam Wilkinson www.beyondprofit.org/procurement

  12. 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

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