Dorset - Economy and Industry

Economy and Industry

In 2003 the gross value added (GVA) for the non-metropolitan county was £4,673 million, with an additional £4,705 million for Poole and Bournemouth. Primary industry produced 2.03% of GVA, secondary industry produced 22.44% and 75.53% came from tertiary industry. The average GVA for the 16 regions of South West England was £4,693 million.

The principal industry in Dorset was once agriculture. It has not, however, been the largest employer since the mid 19th century as mechanisation substantially reduced the number of workers required. Agriculture has become less profitable and the industry has declined further. Within the administrative county between 1995 and 2003, GVA for primary industry (largely agriculture, fishing and quarrying) declined from £229 million to £188 million—7.1% to 4.0%. In 2007, 2,039 km2 (787 sq mi) of the county was in agricultural use, up from 1,986 km2 (767 sq mi) in 1989, although this was due to an increase in permanent grass, and land set aside. By contrast, in the same period, arable land decreased from 9,925 km2 (3,832 sq mi) to 9,157 km2 (3,536 sq mi). Excluding fowl, sheep are the most common animal stock in the county; between 1989 and 2006 their numbers fell from 252,189 to 193,500. Cattle and pig farming has declined similarly; during the same period the number of cattle fell from 240,413 to 170,700, and pigs from 169,636 to 72,700.

In 2009 there were 2,340 armed forces personnel stationed in Dorset including the Royal Armoured Corps at Bovington, Royal Signals at Blandford and the Royal Marines at Poole. The military presence has had a mixed effect on the local economy, bringing additional employment for civilians, but on occasion having a negative impact on the tourist trade, particularly when popular areas are closed for military manoeuvres. Plans to relocate the Royal School of Signals from Blandford to South Wales could result in a loss of up to £74 million GVA for the area.

Other major employers in the county include: BAE Systems, Sunseeker International, J.P. Morgan, Cobham plc and Bournemouth University. Dorset's three ports, Poole, Weymouth and Portland, and the smaller harbours of Christchurch, Swanage, Lyme Regis, Wareham and West Bay generate a substantial amount of international trade and tourism. Around 230 fishing vessels that predominantly catch crab and lobster are based in Dorset's ports. When the waters around Weymouth and Portland were chosen for the sailing events in the 2012 Summer Olympic Games, the area underwent an increased investment in infrastructure and a growth in the marine leisure sector. It is expected that this will continue to have a positive effect on local businesses and tourism.

Tourism has grown in Dorset since the late 18th century and is now the predominant industry. It is estimated that 37,500 people work in Dorset's tourism sector. Some 3.2 million British and 326,000 foreign tourists visited the county in 2008, staying a total of 15.1 million nights. In addition there were 14.6 million day visitors. The combined spending of both groups was £1,458 million. Towns received 56% of Dorset's day trippers, 27% went to the coast and 17% to the countryside. A survey carried out in 1997 concluded that the primary reason tourists were drawn to Dorset was the attractiveness of the county's coast and countryside. Numbers of domestic and foreign tourists have fluctuated in recent years due to various factors including security and economic downturn, a trend reflected throughout the UK.

Manufacturing industry in Dorset provided 10.3% of employment in 2008. This was slightly above the average for Great Britain but below that of the South West region which was at 10.7% for that period. The sector is the county's fourth largest employer, but a predicted decline suggests there will be 10,200 fewer jobs in manufacturing by 2026.