Physics is worth £7.3bn to the Welsh economy
THE physics sector is worth £7.3bn and 113,138 jobs in Wales, according to a new report. The Institute of Physics, working with the Centre of Economic and Business Research, measured physics’ contribution between 2010 and 2019, and found that economic impact is now more than the construction, transport and retail sectors combined.
Physics-based businesses in Wales in 2019 had a combined turnover of £26.7bn, making a 36% increase in a decade.
The institute said this was the fastest rise of the four nations and well above the UK figure of 24%.
The significant growth in turnover included a doubling of performance in the physics manufacturing, space and air transport services and machine sales sub-sectors.
It found that 99% of the 12,170 physics businesses in Wales are SMEs.
There was also a substantial growth in employee pay, up 41% in the same period and the largest increase in the UK.
Economy Minister Vaughan Gething said: “This report underlines Wales’ strong advanced manufacturing and technology base. We have a track-record of delivering high-value manufacturing and innovation, with
specific strengths in sectors that rely on physics, such as automotive, aerospace and aviation
“It’s very encouraging to see the growing contribution physics is making to the Welsh economy, with the progress we’ve made leading to the creation of more and more well-paid, highly-skilled jobs closer to home and spreading prosperity across Wales.”
Eluned Parrott, head of the Institute of Physics Wales, said: “There has been tremendous growth in turnover and pay. The physics sector is made up of good businesses and the rewards of a career at one are clear to see.
“Given the strength in Wales, it is crucial that physics is recognised and
valued in the future economy. The forthcoming national innovation strategy is an opportunity to put that ambition on firmer ground and build on the success of the last decade.”
Although productivity has increased by 10%, the sector still lags behind other parts of the UK. However, labour productivity was particularly high in Wales’ energy and telecom sub-sectors.
Ms Parrot said: “An important message for policymakers across the UK is that for physics, like the broader Welsh economy, SMEs do plenty of heavy lifting. Future policies cannot lose sight of that fact.”
The institute will be issuing further reports on physics in Wales throughout 2022.