At the same time, however, there was a decline in the number of employed (about 7,000) and inactivity continues to rise.  Overall, SW labour ratios compare well with equivalents in the rest of the United Kingdom. 

The claimant count figures for February repeat this positive story with the SW average rate down to 3.1% relative to a UK average of 4.4%.  Within the region, only Torbay, Swindon and Gloucester are above the UK average – and all three only just so.  It is noticeable that, for the first time since the recession started, the claimant rate is now lower than a year ago in two places: Swindon and Devon.  In the first case, this reflects the very bad base of February 2009.  For the latter, it is more that the rate has barely moved at all throughout most of the downturn.  In contrast, the biggest increases this month are in our two largest urban areas: Bournemouth-Poole and the Bristol City region.

The question is whether we have all been underestimating the ability of our economy to recover this year or whether what we are seeing in early 2010 is a false dawn.  The evidence is mixed.  With both unemployment and employment down, one begins to wonder if we need to look more deeply at the official statistics.  The interesting story is, perhaps, the increase in inactivity and the stubbornness of long-term and youth unemployment.  There again, as the forthcoming Budget and the election will emphasise, the public sector part of the downturn is yet to hit SW England.  In contrast to the real weather, the labour market spring came early this year but we could still be in for a damp and dismal employment summer.

The plan has been published today by the Department for Energy and Climate Change (DECC) and was officially launched by Minister of State for Energy, Lord Hunt of Kings Heath.

Lord Hunt predicted that marine energy could provide enough power for 15 million homes and save 70 million tonnes of carbon dioxide by 2050, and provide up to 16,000 jobs.The RDA, which is investing millions of pounds to support the development of a marine energy industry in the South West, worked closely with DECC in drawing up the plan.
The South West was named the UK’s first Low Carbon Economic Area last year in recognition of its excellence in marine renewables.

Claire Gibson, Director of Sustainable Resources at the South West RDA and a member of the Marine Energy Action Plan steering group, said:

“This action plan reiterates the Government’s commitment to the marine energy sector and builds on the activity we have been pioneering in South West England through our Wave Hub project, and investment in research and supply chain development.

“It has also been a real collaborative effort between the public and private sector to agree priorities, and that ongoing co-operation is vital if we are to maintain the UK’s position at the vanguard of marine renewables development.”

Among the recommendations in the action plan is a UK-wide co-ordination group for planning and approving marine renewables projects, a review of the Renewables Obligation banding later this year, addressing market failure in funding technology development, and building a marine energy supply chain.

Lord Hunt also announced a Ministerial Task Force on Marine Energy that will bring together key players to oversee future work on the action plan. Meanwhile the RDA continues to support the industry through its £42 million Wave Hub project currently under construction in Cornwall. This will create the world’s largest test site for wave energy devices and is on course to be completed this year, with the first devices deployed in 2011.

Last week (March 4) the South West RDA announced a £100,000 study to map offshore renewable energy potential around the coast of South West England. It will examine the potential for wave, tidal and offshore wind installations up to 2030 and feed into the Government’s Strategic Environmental Assessment for marine energy, which was also confirmed last week.

The South West RDA is also investing up to £2 million in a £12 million package from the Technology Strategy Board to help innovative businesses develop the wave and tidal technologies of the future.
And it has committed £7.3 million over three years to the Peninsula Research Institute for Marine Renewable Energy, a collaboration between the Universities of Exeter and Plymouth that boasts one of the highest concentrations of marine renewables expertise anywhere in the world.

The announcement follows a commitment from the South West RDA to invest £9.96 million from its groundbreaking Regional Infrastructure Fund (RIF) and means all the funding is now in place.

Borough of Poole Council, which is spearheading the project, says it will shortly appoint contractors and that the bridge will open in 2012.

Ian Piper, the RDA’s Director of Development and Regeneration, said: “This is a transformational project for Poole that will unlock the huge regeneration potential of this site, creating thousands of jobs, and is exactly the sort of project the RDA set up the RIF to deliver.”

Councillor Brian Leverett, Leader of the Council said: “This is an historic day for Poole.  The Twin Sails Bridge is a world class bridge and is a symbol of our ambition for the town.  We are very thankful to the South West RDA for its commitment to this project.”

The RIF is an innovative £50 million fund which delivers vital infrastructure much earlier than it might otherwise be provided. Infrastructure is often the key element that, once in place, allows the rest of a development to happen.

The fund then reclaims the investment from private developers usually through so-called Section 106 contributions collected by local authorities, and the money can then be recycled to other projects in the South West.

By providing a much-needed second harbour crossing, the Twin Sails Bridge will open up 32 hectares of land for development where more than 40 per cent of Poole’s homes will be delivered over the next 20 years, along with employment space, shops, hotels and a new quayside accessible to the public.

Other RIF investments in the region include £22 million for key infrastructure needed to kick start the recession-delayed Cranbook development, near Exeter, and a £7 million investment in Plymouth City Council’s £19 million East End Community Transport Improvement scheme, work on which started this month.

Boosted by the news that the beginning of 2010 saw the manufacturing industry enjoy its largest increase in productivity in the last two years, many industry commentators are heralding a new dawn for the sector. On the wave of this optimism, the 1-5 March saw the launch of EEF ‘Manufacturing Week’ which was part of a long running campaign to promote the success of the sector and create an internationally competitive business environment for manufacturing.

Simon Howes, business development director at the Manufacturing Advisory Service in the South West (MAS-SW), is confident that there are many opportunities on the horizon for the region’s manufacturers, especially those willing to take advantage of the growing low carbon economy and advanced manufacturing.

There are approximately 12,000 manufacturing businesses in the region generating more than £11billion for the local economy and employing nearly 300,000 people, and the MAS-SW has supported and advised more than 2,000 South West manufacturers since its launch in 2002 on issues ranging from implementing low carbon practices, increasing productivity and helping companies enter new markets. Encouragingly, the South West is leading the field when it comes to survival rates for businesses with the highest figure of all regions in the UK.

But how do the region’s manufacturers feel about their future? The South West Manufacturing Barometer, compiled by the MAS-SW, recently indicated that manufacturers in the region are optimistic for what lies ahead in 2010. Results reveal that over a third (38.2 per cent), have seen a rise in enquiry levels compared to six months ago, whilst 54 per cent expect to see a further increase in sales over the next six months.

While South West manufacturers, it seems, are optimistic about what lies ahead, the barometer did expose a lack of awareness regarding the potential for business growth in new areas such as low carbon technologies. Around 76 per cent of those interviewed said that the emerging low carbon market would have no impact on their business despite the fact that the South West of England was declared the UK’s first Low Carbon Economic Area in July 2009. This represents a real challenge for the MAS-SW. A Government commitment to make £19.5 million available to the region as part of a £100 million two-year programme in marine renewables provides an investment that manufacturers can definitely capitalise on.

The MAS-SW, one of the Government’s Solutions for Business suite of offerings, funded by the South West Regional Development Agency (RDA) through the European Regional Development Fund (ERDF), is in no doubt that the next 12 months will continue to present challenges for manufacturers in the South West. However, many are well placed, in terms of their geography and knowledge base, to embrace emerging markets. In the course of this journey, the MAS-SW is on hand to provide manufacturers with free or highly subsidised support, through its team of experienced specialists, on issues such as implementing low carbon practices and increasing productivity to identifying new opportunities for growth.

For more information, on how MAS-SW can help manufacturers to ready themselves and compete to win in 2010, visit www.mas.bis.gov.uk/south-west

ENDS

The latest Purchasing Managers Index indicates that business sentiment in the South West bounced back relatively strongly after the weather affected many parts of the region during January. The rate at which output expanded was the fastest in four months. The strengthening in new business orders was led by a good showing from the manufacturing sector, partly reflecting a further improvement in demand from abroad. The relatively weak value of sterling is now beginning to have a positive impact for exporters and also to act as a stimulus. We have had to wait a while for existing contracts to unwind fully, but now businesses appear able to compete on a price basis. This is particularly in European markets where SW businesses have mostly traded.

The most confident region remains London. Previous recessionary experiences show London often leads the rest of the country out of recession and it’s economic health is, of course, fundamentally important for the rest of the country. 

The Chartered Institute of Purchasing and Supply February surveys of purchasing managers in manufacturing and services both pointed to sharp increases in the level of business activity over the previous month.

New orders in manufacturing continued the strong growth seen in January and there was again a marginal increase in employment.

The improving performance in services is thought to have been partly due to the carrying over of activity disrupted by the snow in January. But incoming new business was also strong. Service companies, however, are reportedly continuing to reduce staffing levels but through natural wastage and non-replacement rather than redundancies.

In contrast the Institute’s construction sector survey reported activity still falling in February but the rate of decline was relatively moderate, as it had been in the previous month. The lack of new orders was compounded by the poor weather conditions leading to a further sharp fall in employment.

This generally positive picture was supported by a jobs’ report from the Recruitment and Employment Confederation which showed continued growth in permanent appointments alongside a rise in the level of vacancies. It was noted that some sectors particularly badly hit by the recession, like IT and engineering, were now clearly on the rebound.

There was also encouraging news this week for UK exporters: the equivalent Purchasing Managers surveys in the Eurozone reported a sustained level of output growth. Within the overall figure, manufacturing was markedly stronger than services and France and Germany continued to lead the recovery. In contrast output in the countries already in trouble, Spain, Ireland and Greece in particular, continued to contract.

The South West RDA has commissioned its own research, also published today, which shows that there is a growing demand from businesses in the South West for faster broadband.

The research will inform the RDA’s strategy to actively encourage investment into the region and support national plans to ensure that the appropriate infrastructure is in place.

The South West has specific challenges to overcome because of the region’s size and its large proportion of rural areas. This means that the region is at a disadvantage when compared to others and may fall short of national targets of 90 per cent coverage by 2017 even with the additional monies being discussed with Government.

Businesses in the larger towns and cities have the greatest access to fast and effective broadband and infrastructure must be put in place to meet the growing demand from across the region, particularly in rural areas.

The RDA wants to encourage greater access to faster broadband so that more businesses can benefit from more efficient and productive ways of working. Faster broadband will result in more businesses becoming more competitive globally and will enable them to adopt new business models which use high band width.

Stephen Peacock, executive director for enterprise and innovation at the South West RDA, said: “This research indicates that there is likely to be a high demand for faster broadband in many parts of the region, which is good news as it can encourage providers to invest more quickly.

“However, providers will be drawn to where demand is highest, mainly in urban areas where there are more businesses, so we need to highlight the business case for investing in the more rural areas as well.  We are currently reviewing tenders from a number of communities for pilot projects, which shows that investment is needed.”

As part of this agenda, the RDA is working with European Convergence partners in Cornwall and the Isles of Scilly to secure significant investment to roll out faster broadband to parts of the county which have limited access. This investment has the potential to transform Cornwall’s economy, and enable companies to compete nationally and internationally.

The Cornwall project will be delivered by the recently established Cornwall Development Company and it is hoped that the roll-out will start this year. The initiative is supported by both the RDA and Cornwall Council, and is seen as a cornerstone of the European Regional Development Fund (ERDF) Convergence Programme in Cornwall.

Stephen Peacock continued: “The providers’ investment in extending this network will be substantial and the region is vast, therefore we appreciate this can’t happen overnight.

“That said we are keen to see faster broadband become more accessible so that businesses can fulfil their potential and we will be working with partners and communities to explore avenues to maximise benefits for the region from national investment plans.”

The RDA’s next step will be to work with partners on a regional response to a national consultation on access to fast broadband which comes to an end on April 1.

The South West RDA (Regional Development Agency) has appointed renewable energy consultancy PMSS to lead the £100,000 study. It will examine the potential for wave, tidal and offshore wind installations up to 2030.

This will inform future investment decisions by the industry, feed into the ongoing consultation about Marine Conservation Zones through the Finding Sanctuary project and help the South West retain its leading role in the development of marine renewables.

The announcement was made at today’s RenewableUK Wave and Tidal conference in London, during an update from the RDA about its pioneering Wave Hub marine energy project in Cornwall.

Claire Gibson, Director of Sustainable Resources at the South West RDA, said: “The ability to deploy commercial installations is crucial to the development of the marine energy industry in the South West and this study will map the potential over the next 20 years.

“It will provide data invaluable to the industry and will help ensure that marine renewables are given due consideration in future discussions about planning for the South West’s marine environment. This includes the Strategic Environmental Assessment (SEA) for marine energy confirmed by the Government today, which we welcome. We have long championed the need for an SEA as an essential pre-cursor to licensing areas of sea for commercial development, and we look forward to its swift progress.”

The RDA’s resource study has been welcomed by Chris Bale, Chief Executive of Ocean Electric Power, a marine renewable energy project development company based in Plymouth.

He said: “Marine renewables is a nascent industry with the potential to make an enormous contribution to tackling climate change and boosting the economy, but it needs support. What’s important is that marine spatial planning policy doesn’t compromise the emergence of this important sector, so the RDA’s study is very timely.”

PMSS, which has offices in Bath, is a leading consultancy in renewables with particular expertise in the marine environment, working on wave and tidal projects with companies such as Marine Current Turbines, Aquamarine Power, Atlantis Resources, Scottish Power Renewables and with the public sector.

Andrew Prior, Director of Environment of PMSS, said: “As a company with offices in the South West of England, PMSS is delighted to be working with the South West RDA to support the deployment of marine renewables and boost the economy of the region.”

The South West was the first area of the UK to be designated a Low Carbon Economic Area because of its strength in marine renewables in July last year.

The South West RDA’s flagship marine energy project is Wave Hub, which will create the world’s largest test site for wave energy technology by building a grid-connected socket on the seabed, 10 miles off the coast, to which wave power devices can be connected and their performance evaluated.

The first phase of onshore construction was completed last month and work began this week on a new electricity sub-station in Hayle where Wave Hub’s subsea cable will come ashore on the north coast of Cornwall.

Wave Hub will be completed this year with the first wave energy devices expected to be deployed in 2011.

The £42 million project is being funded with £12.5 million from the South West RDA, £20 million from the European Regional Development Fund Convergence Programme and £9.5 million from the UK government.

The project will see the transfer of the shop – currently housed in a Portacabin and the Post Office sited in a cottage on the outskirts of the Village – to the more accessible hub in the centre of the village.

The new 100 square metre extension to the recently re-built village hall has been made possible by a grant from the Rural Development Programme for England (RDPE) which will supply £196,045 of the £261,935 total project costs. 

Villagers themselves have raised over £25,000 towards the costs through a wide range of innovative fund raising events over the years.

Sheila Bull, chairman of the shop society since its inception in 1999, confirms that the new arrangement will continue to be run as a social enterprise. She re-affirms that the policy has always been to use local suppliers and said: “It will mean we can work with our suppliers and partners to extend and develop the range of locally-sourced food and products to our mutual benefit.”

At least 25 local volunteers will be involved in providing the new services, and the business transfer and development will be overseen by the shop society, which has been running the existing shop at a small surplus for 11 years.

Terry Hardie, deputy chairman of the parish council said that the Parish Plan, to which 91% of the adult population contributed, was instrumental to the formulation of the overall project and gave it a clear focus as to villagers’ needs.

While applying for the RDPE grant, the Village Hall Committee was encouraged to make best use of low energy devices and, as a result, the new hub will feature solar and photovoltaic panels, light tubes, an air source heat pump and rainwater harvesting.

Down Ampney, population 526, is the birth place of Ralph Vaughan Williams and is located within the Cotswold Water Park area.  As it is also the location of the Veterans’ Arnhem Memorial commemorating war time operations from Down Ampney Airfield.  Down Ampney is a popular destination for tourists in the Cotswolds. 

“There has been tremendous local support for this project throughout its various stages,” said David Job, Chairman of the Village Hall Committee, who is overseeing the project.  “The villagers of Down Ampney have earned a county-wide reputation of fulfilling community projects which – from my experience with this project – is fully justified.”

RDPE funding for the Down Ampney village hub is part of the social and community enterprise theme to improve or maintain the living conditions and welfare of those living in rural areas.

“Social enterprises are an effective means of delivering and maintaining rural services,” said Andy Wood, head of place-making and partnerships at the South West RDA, which manages RDPE in the region.

“This social enterprise is already self-sustaining and the project has the potential to build on this strength.  It will also contribute towards our regional aim of working towards a low-carbon economy via the renewable energy features integrated within the building and the purchase and management practices of the hub.”

James Lloyd, RDPE project development facilitator at Gloucestershire First, who helped Gloucestershire Rural Community Council in developing Down Ampney’s grant application said: This is an excellent example of community working together to improve basic services.  I would encourage other rural community groups to take advantage of the funding currently available.”