Glasgow - Economy

Economy

Glasgow has the largest economy in Scotland and is at the hub of the metropolitan area of West Central Scotland. Glasgow also has the third highest GDP Per capita of any city in the UK (after London and Edinburgh). The city itself sustains more than 410,000 jobs in over 12,000 companies. Over 153,000 jobs were created in the city between 2000 and 2005 — a growth rate of 32%. Glasgow's annual economic growth rate of 4.4% is now second only to that of London. In 2005, over 17,000 new jobs were created, and 2006 saw private-sector investment in the city reaching £4.2 billion pounds, an increase of 22% in a single year. 55% of the residents in the Greater Glasgow area commute to the city every day. Once dominant export orientated manufacturing industries such as shipbuilding and other heavy engineering have been gradually replaced in importance by more diversified forms of economic activity, although major manufacturing firms continue to be headquartered in the city, such as Aggreko, Weir Group, Clyde Blowers, Howden, Linn Products, Firebrand Games, William Grant & Sons, Whyte and Mackay, The Edrington Group, British Polar Engines, Albion Motors and Lunday Electrical Contractors.

Glasgow was once one of the most significant cities in the UK for manufacturing, which generated a great deal of the city's wealth; the most prominent industry being shipbuilding based on the River Clyde. Although Glasgow owed much of its economic growth to the shipbuilding industry, which still continues today in the form of BAE Systems Maritime - Naval Ships' two shipyards, the city has its roots in the tobacco trade and is noted to have "risen from its medieval slumber" from trade in tobacco, pioneered by figures such as John Glassford. The city was also noted for its locomotive construction industry — led by firms such as the North British Locomotive Company — which grew during the 19th century before entering a decline in the 1960s.

Whilst manufacturing has declined, Glasgow's economy has seen significant relative growth of tertiary sector industries such as financial and business services, communications, biosciences, creative industries, healthcare, higher education, retail and tourism. Glasgow is now the second most popular foreign tourist destination in Scotland (fourth in the UK) and its largest retail centre.

Between 1998 and 2001, the city's financial services sector grew at a rate of 30%, making considerable gains on Edinburgh, which has historically been the centre of the Scottish financial sector. Glasgow is now one of Europe's sixteen largest financial centres, with a growing number of Blue chip financial sector companies establishing significant operations or headquarters in the city.

The 1990s and first decade of the 21st century saw substantial growth in the number of call centres based in Glasgow. In 2007 roughly 20,000 people, a third of all call centre employees in Scotland, were employed by Glasgow call centres. This growth and its high use of recruitment agencies to hire graduates as temporary workers has led to accusations of exploitative practices such as long hours, poor pay and lack of job security by the TUC and other union bodies. In recent years some call centres have taken steps to rectify this criticism.

The city's main manufacturing industries include companies involved in; shipbuilding, engineering, construction, brewing and distilling, printing and publishing, chemicals and textiles as well as newer growth sectors such as optoelectronics, software development and biotechnology. Glasgow forms the western part of the Silicon Glen high tech sector of Scotland.