The - Glasgow City Council - Glasgow City Council

The Glasgow Economic Monitor is preparedbiannually by Glasgow City Council(Development and Regeneration Services)and Scottish Enterprise Glasgow.By analysing and commenting on a range of economic data, the review aimsto keep Council and SE Glasgow board members aware of the main trends and developments in the local economy and to provide the basis for developing andmonitoring economic and employmentprogrammes and projects.

Both organisations receive a largenumber of requests for economic datafrom a range of public and privateagencies – local, national andinternational. The review is available tothese bodies as a convenient summary ofdevelopments in the Glasgow economyand the local business community.

Information used to compile the review is drawn from official statistics, localsurveys, media reports, and internalsources.

The main focus is on:

• Business Opinion page 2

• Labour Market Trends page 4

• Local Company News page 11

• Local Property Markets page 48

• Differentiation page 56

• State of City Conference page 58

Further information is available from: Fergus CooperGlasgow City CouncilDevelopment and Regeneration Services229 George StreetGlasgowG1 1QU

Telephone: 0141 287 7274Facsimile: 0141 287 7292

E-mail: [email protected]: www.glasgow.gov.uk

Printed by Ricoh Print Scotland. Phone 0141 287 9626 Spring 2004

Over the past year global market conditions havestabilised and encouraging improvements are reportedin corporate profitability.

After a brief period across mid-2001/early-2003 whenbusiness confidence, momentum and employment fellback, renewed vigour has been evident in Glasgowover the past 9 months. Although the signals as yet donot support a rapid return to trend growth, theimprovement has been both solid and persistent.

This is reflected in the latest job creation/job lossfigures. Over the period, July 2003 to February 2004,inward and existing investors announced projects witha total potential of 4,490 jobs whereas some 3,540 joblosses were reported. This net gain of +850 comparesfavourably with the two preceding periods — January2001 to June 2002 and, July 2002 to July 2003 overwhich balances of net job losses of 2,500 and 2,150were flagged up respectively.

Perhaps not surprisingly, the winning formula thatunderpinned Glasgow’s regeneration across the 1990sis again being replicated with growth concentratedprimarily on ‘city type activities’ such as financialservices, business services, the public sector and retailand leisure. Disappointingly, levels of developmentactivity and business sentiment continue to be lowacross virtually all manufacturing environments, (withthe notable exception of shipbuilding), and it is difficultto foresee any rebuild even into the medium term. Onpresent evidence, the successes of service activitieswill continue to substantially more-than-offset thedeficiencies particular to manufacturing.

However, within this improving business climate, as theCBI reports, there is widespread concern this term overthe UK’s and for that matter Scotland’s decliningcompetitiveness. The knock-on feeds through intoinvestment decisions—with many UK companies facingpressure to expand or relocate activities (such as callcentre and customer support functions, R&D, accountsand production) overseas. The flip side of this is thatwith high UK costs being a driving factor, manyoverseas companies that would previously haveconsidered the UK as an investment location arefinding Britain less ‘profit friendly’ and foreign inwardinvestment opportunities are drying up.

As yet however, such concerns have largely avoidedGlasgow’s doorstep and the call centre /outsourcingsector within the city is still experiencing growth. Thelarge call centre culture built up in Glasgow over thepast seven years has been very important to the city’slabour market as a means of encouraging people intothe workforce, particularly women returners and

students, and, increasing the opportunities available for‘double-jobbing’. On the plus side for Glasgow, the cityis currently a lower-cost location than others in the UKand has a fairly high-skilled workforce. Moreover, anemerging trend in Glasgow is that out-of-city-centrespace is strongly placed to compete for national andinternational business services, including back-officefunctions, software related services and dataprocessing as companies pursue lower cost bases.Also importantly, existing businesses in Glasgowappear to be maximizing the offer of current facilitiesby broadening working patterns from 10/5 to 15/7through the introduction of evening and weekend shiftrotas and recruiting additional staff to accommodatethis. The onset of 24/7 operations is likely to reinforcethis trend.

Just as across the ‘90s when Glasgow made impressiveadvances over a broad range of fronts with a focus onservices, higher-value activities and a move totechnical, clerical and professional skills, the newbusiness environments coming on stream at PacificQuay, International Financial Services District,Atlantic Quay, City Science and College BusinessPark should prove attractive to emerging corporaterequirements.

By national standards, Glasgow is bringing to thebusiness community a 21st century infrastructure. Inexcess of £2bn of capital investment is being targetedinto the River Clyde Waterfront, the MerchantCity/Trongate and Clyde Gateway projects.Additionally, the importance of transport to city andmetropolitan prosperity is recognised through majorprojects such as the M74 extension (£437m): theGlasgow Airport Rail Link and associated routeupgrade, (£140m); plans for a Cross City Rail Link(£38m): and proposals for bridgeways atTradeston/Broomielaw (£40m with associated publicrealm work): Finnieston/Pacific Quay (£8.5m) andGlasgow Harbour/Kelvin (£5m). Retailing will beboosted through the £140m/1,400-job ‘Glasgow Fort’:and the £200m/2,700-job Pollok shopping centredevelopment. Meanwhile the entertainment, conferenceand exhibition sector is being flagged by the£350m/3,000 job proposals for the redevelopment ofQueens Dock. Additionally, Heron Quays Investments plan a 300-job/£8millionexpansion scheme to Springfield Quay Leisure Park.

All in all, such developments give a visibility to thecentral case that Glasgow continues to move itseconomy forward through competitive strength.

SPRING 2004: TERM ASSESSMENT

glasgow economic monitor 1

In February 2003, the latest retail ranking carried out byinformation solutions company Experian (andendorsed by the British Council of ShoppingCentres) reported that Glasgow continues to prove theUK’s most attractive shopping destination outsideLondon’s West End. Glasgow has been firmlyestablished in the UK shopping superleague as themost important centre outside London over the pastdecade (Table 1).

Table 1: National Retail Ranking for 2003

Rank Centre Region Rank 2003 2002

1 West End Greater London 1

2 Glasgow Scotland 23 Leeds Yorkshire & Humberside 3

4 Nottingham East Midlands 4

5 Manchester North West 10

6 Cardiff Wales 6

7 Southampton South East 7

8 Reading South East 9

9 Norwich East Anglia 8

10 Bluewater South East 11

Source: Experian (February 2003) *vitality index based on size ofcentre, presence of quality independent outlets, numberof multiple// comparison retailers and vacancies.

Glasgow looks set to maintain this dominance. Inanother key annual retail ranking — this time byFOCUS — the city is described as one of the mostsought-after retail locations in the UK in 2003. Focusreveals that demand for retail space in Glasgow totalssome 708,000 sq ft with the number of retailers lookingfor sites in the city posted at 92.

“In the UK retailsuperleague, Glasgowcontinues to be theprominent centreoutside London.”

Experian February 2003

“Glasgow attracts a lotof retailers. It has ahuge shopping areacoupled with a bigmarket”

Management Horizons Europe; August 2003

Back in August 2003, Glasgow’s shopping dominancewas again highlighted by Management HorizonsEurope which ranked 1,672 cities, towns and retailparks in the UK according to the number and variety ofshops and gave Glasgow the No 1 ‘counter attraction’,far ahead of its nearest rivals Manchester, Edinburgh,Leeds and Nottingham.

A further survey in released in October 2003 confirmedthe importance of the retail sector to Glasgow. MarketResearch UK found that Glasgow’s biggest touristattraction is its massive shopping offer. Some 60% ofvisitors/tourists indicated the main reason for visitingGlasgow was for shopping purposes with some 80% ofthese rating the key reason for shopping in the CityCentre was the variety of shops. Meanwhile, inDecember, Glasgow topped property consultantsGerald Eve Prime Retail report with the best highstreet shopping in the UK. Finally rounding off a goodyear for retail, in January, CACI posted Glasgow’s retailfootprint as £2.4bn—again confirming the city as theUK’s national dominant shopping centre outsideLondon.

Elsewhere, mixed signals however came through fromthe Cushman & Wakefield, Healey & Baker‘European Cities Monitor’ published in October 2003.This report ranks 30 top European cities by howattractive they are as a business location. WhileGlasgow has been in the top 30 tier of cities over thepast decade, its ranking as a business location hasfallen from 17th in 1996 to 21st in 2002. In 2003 the cityretained its 21st position (Table 2). The largest cityeconomies of London, Paris and Frankfurt head the listas normal, and the research suggests that the gapbetween the largest cities and the rest, (includingGlasgow), has widened.

Taking the positives from the latest survey, Europeancompanies perceived Glasgow as offering office spacethat represents value for money. In 2002, Glasgow wasrated as the third best city on this measure, improvingits position of 5th in 2001. This term Glasgow moved to

Business Opinion


2nd place with only Lisbon scoring more highly. Thesurvey also suggests that the availability of office spacein Glasgow is improving. In 2002, Glasgow ranked 9thon this measure but improved to 6th in 2003. A similarthree place shift was evident in the cost of staff index—with Glasgow moving up the rankings from 9th to 6th.

Meanwhile, in November 2003, another businesslocation/relocation consultancy, OMIS Research,reported that Glasgow was Britain’s 7th best city forbusiness. This survey—‘Britain’s Best Cities’—isundertaken every two years and scores cities accordingto factors such as workforce, premises, operating costsand access to transport. Glasgow’s position is aconsiderable improvement over the 14th placeachieved in 2001 and is attributed by OMIS toGlasgow’s workforce profile and increasingly business-friendly environment. Incidentally, earlier in 2003, OMISreported that, with respect to UK contact centrelocations, Glasgow ranked second only to CentralLondon in terms of the availability of suitable premises.

Table 2: Glasgow’s ranking as a European business location(out of 30 cities) 1996-2003

Year Rank1996 17th

1997 16th

1998 19th

1999 17th

2000 19th

2001 19th

2002 21st

2003 21st

Source: Cushman & Wakefield, Healy & Baker, European CitiesMonitor 2003

More good news came in December with Glasgowbeing selected by the Intelligent Community Forumas one of the world’s top seven intelligent communitiesof 2003. The USA-based agency—a project of theWorld Teleport Association—tracks a combination ofindicators, including deployment of broadbandcommunications, education of labour force, innovation,and the ability to attract new industries. Glasgow wascited this term for focusing on business uptake oftechnology, promoting the growth of e-commercesupport industries and progress of e-commerce ineducation and training.


Labour MarketEconomic OutputGross Value Added (GVA) is the headline indicator foreconomic output, measuring, in effect, the sum of thewealth produced in an area. Viewed over time, GVA —as the estimated sum of incomes earned from theproduction of goods and services — can be used as aconventional measure of economic growth. The mostrecent Office for National Statistics (ONS) figure forGlasgow GVA, (published in December 2003), is£11.1bn for 2001, which represents 16.0% of Scotland’sgross output. This is a significant pull forward from the14.4% contribution to national wealth creation thatGlasgow was estimated to have held in 1995 (Table 3).

Table 3: Gross Value Added, 1995-2001(£bn—Current Basic Prices)

1995 1996 1997 1998 1999 2000 2001Glasgow 8.0 8.5 9.1 9.7 10.1 10.6 11.1

Scotland 55.4 58.1 60.8 63.3 64.9 67.2 69.2

UK 639.9 679.6 720.7 762.4 796.3 838.1 874.2

Source: ONS

Business Strategies, (BS), estimates that the shiftout of manufacturing led the Glasgow economy into a–0.6% contraction between 1987 and 1992 and pushedthe city to the bottom of the Scottish output league,well behind national growth levels, (Scotland +10.9%:UK +7.0%). Since then, services have driven theeconomy forward, with ONS confirming that Glasgowoutput rose +38.3% between 1995 and 2001, tooutperform national averages, (Scotland +24.8%: UK+36.6%).

ONS has issued sectoral breakdowns from 1995 to2000. Over that period, while industrial GVA in Glasgowrose only by + 4.6%, the output from services in thecity increased by a sweeping +40.9%. The net effect isthat services accounted for 77% of all Glasgow output,in 1995 (with a further 23% in manufacturing, energy,construction and other production) while in 2000services represented 82% of total Glasgow GVA. Incontext, this is a significant increase from the 1981position when services took only 66%.

Further evidence of Glasgow’s progress beyond 2001 isprovided through the release of GDP/GVA estimates byfour highly regarded independent agencies.

Business Strategies indicated that GVA in Glasgowcontinued to outperform the Scottish average in 2002and 2003. The latest forecasts from BS, (released inSeptember 2003), suggest that the Glasgow economygrew by +2.4% in 2002 against +0.1% for Scotland and,for 2003, an estimated +2.6% against a nationalaverage of +1.6%.

Cambridge Econometrics/SLIMS indicate thatGlasgow GVA grew by +1.0% in 2002, (compared totheir estimate of –0.3% for Scotland). Cambridgefigures for 2003 suggest that Glasgow, with +2.3% GVAgrowth, continued to outperform the Scottish averageof +1.9%.

Meanwhile in December 2003, Mackay Consultants,historically the most accurate of forecasters of Glasgowoutput, predicted a GDP of £11.7bn for the city in2002 — a +0.6% growth against Scotland’s +0.3%.

Interestingly at the wider European perspective,Barclays Bank placed Glasgow at 29th in the top 61cities of Europe in terms of GDP per capita in 2002. Ofthe UK cities, only London (23rd with 35,072 euros percapita) and Edinburgh (25th with 35,018 epc) wereahead of Glasgow (31,893 epc). There was a significantdifference between Glasgow’s position and that ofseveral other UK ‘core’ cities — with Liverpool posted at61st (16,466 epc), Newcastle at 58th (20,499 epc),Manchester 57th (22,099 epc), Birmingham at 56th(22,069 epc) with Leeds in at 43rd (25,619 epc) andBristol at 34th (29,760 epc).

Looking ahead, over the medium term 2002 to 2007,Business Strategies expects Glasgow’s annualaverage growth rates at +3.1% to continue to be abovethe Scottish average (+2.5%) and the UK average(+2.9%) as the expansion of the city’s economycontinues. BS predicts government spending toenhance this growth with a shift in public policy (andspending) underpinning the role of cities in drivingeconomic growth, both in Scotland and UK wide, andhelping to attract private investment.

Employment: Workforce JobsIn terms of trends, sustained job-shedding hascharacterised Glasgow over much of the post-warperiod. The scale of the loss is illustrated across the1950 to 1991 period when overall employment fell from559,000 to around 382,000. Of this massive contraction,the bulk of employment loss was throughmanufacturing, which haemorrhaged over 90% of thenet loss. The lowest point in employment terms came in1996, when Glasgow could only support some 358,000jobs.

However, a significant turnaround took place over the 5year period to 2001, with employee jobs rising stronglyand total employment peaking at 418,000.

Across 2002 however, employment in Glasgow, as inScotland as a whole fell back. For the year 2002, totalemployment in Glasgow is estimated to be around410,500 (Table 4).


Table 4: Total Employment in Glasgow

1991 1996 1998 2001 2002Employee jobs 349,200 326,400* 347,200** 389,700** 384,900**

Self-employed 22,300 25,900 24,500 24,200 22,300

Armed Forces 1,300 1,400 1,400 1,400 1,400

Gov’t Trainees 8,700 4,500 2,600 2,400 1,900

TOTAL 381,500 358,200 375,700 417,700 410,500

Sources: Employees *ONS (AES 1996) : * *ONS (ABI 1998: ABI 2001: ABI 2002)Self-employed—Business Strategies/Slims averageArmed Forces/Government Trainees—Business Strategies

Employee JobsEmployee jobs, (i.e. people who work for a company ororganisation, excluding the self-employed), account foraround 92-95% of all jobs in Glasgow and feature,therefore, as the key barometer of employment trends.

Over the 1998 to 2001 period, the number of employeejobs in Glasgow rose by +42,500. This +12.2% growthwas almost double the ‘official’ ONS-posted +6.8%gain at Scotland level and well in excess of the GreatBritain +4.5% average (Table 5).

Table 5 : Employee Jobs in Glasgow Scotland and GreatBritain (in thousands)

1998 1999 2000 2001 2002GB 24,358.4 24,839.0 25,233.0 25,456.4 25,548.1

Scotland 2,161.9 2,167.0 2,234.3 2,308.6 2,277.9

Glasgow 347.2 354.2 363.9 389.7 384.9

Source: ONS/NOMISNote: GB and Scotland data includes agricultural employment

collected by MAFF and the Scottish Executive in a separate survey.

The push behind the Glasgow figures came from theservice sector which rose from 290,900 to 336,300—anet gain of some +45,400 jobs. Although all the mainservice business groupings showed growth, the keydrivers within Glasgow activities, as Table 6 indicates,were banking, finance, insurance and businessservices, (up +21%: +15,800 jobs): publicadministration, education and health (up +13.2%;+13,500 jobs) and distribution, hotels and restaurants,(up +13.0%: +9,300 jobs). Elsewhere, Glasgowmanufacturing held firm at around 31,500 whileutilities, (energy and water) and construction were innegative territory losing some 3,000 jobs in total.

Table 6: Glasgow Employee Jobs by Sector (in thousands)

SECTOR 1991* 1996 1997 1998 1999 2000 2001 2002Agriculture 0.4 0.2 0.2 0.2 0.2 0.2 0.2 0.2

Energy/ Water 3.8 5.8 3.4 6.1 3.6 2.9 4.5 4.0

Manufacturing 43.7 31.1 31.7 31.4 31.1 30.0 31.3 27.6

Construction 34.4 15.6 17.4 18.7 16.3 19.8 17.5 16.6

Distribution/ 68.8 70.3 74.1 71.1 71.6 73.9 80.3 84.7Catering

Transport/ 22.9 20.3 18.8 20.9 22.6 21.9 23.6 23.5Communications

Financial/ 63.9 67.9 75.7 76.7 86.2 87.1 92.5 89.4Business Services

Public Services 92.4 98.6 102.1 102.3 103.7 109.3 115.8 117.7

Other Services 18.9 16.6 17.7 19.8 18.9 18.8 24.0 21.2

Total Employees 349.2 326.4 341.1 347.2 354.2 363.9 389.7 384.9

Sources: Office for National Statistics(1996-1997 AES;1998-2002 ABI)* Business Strategies (1991 COE re-scaled)

Note: Data excludes agricultural employment collected by MAFF and the Scottish Executive in a separate survey.

The latest figures across 2001/2002 show a loss inGlasgow of some 4,900 jobs to 384,900 — a -1.2% fallbroadly in line with the Scotland average (-1.3%).Reflecting the difficult trading conditions over thisperiod manufacturing employment fell back from31,300 to 27,500 while finance and business activitieslost ground falling from 92,500 to 89,400. In partoffsetting these losses, good progress was evident inthe distribution/hotel/restaurant sector whereemployment increased from 80,300 to 84,700 and inpublic services which rose from 115,800 to 117,700.

Table 7 indicates the employment performance of thelargest UK cities, (excluding London), in the form of‘league rankings’ derived from the three maingovernment employment surveys operational over thepast decade — the Census of Employment, (over 1991-1993 and which is now discontinued), the re-scaledAnnual Employment Survey, (1995 to 1997) and theAnnual Business Inquiry, (from 1998 to 2002).

In the early 1990s, Glasgow ranked a mid-table 7th interms of standing, while across the mid-nineties thecity achieved 3rd position behind Bristol andManchester. Over the 1998 to 2002 period, Glasgowwas again mid-table behind Cardiff, Manchester,Newcastle and Edinburgh.


Table 7: Employment % Change: City to City Comparison

1991—1993 (COE now discontinued)1 Leeds +1.1

2 Edinburgh +0.5

3 Newcastle +0.4

4 Cardiff -0.5

5 Liverpool -2.6

6 Sheffield -3.3

7 GLASGOW -4.58 Manchester -4.6

9 Bristol -5.3

10 Birmingham -7.2

1995-1997 (AES)1 Bristol +8.8

2 Manchester +3.0

3 GLASGOW +2.74 Sheffield +2.8

5 Leeds +1.3

6 Birmingham +0.8

7 Newcastle +0.3

8 Liverpool -2.7

9 Edinburgh -3.2

10 Cardiff -8.8

1998-2002 (ABI)1 Cardiff +17.5

2 Manchester +17.1

3 Newcastle +15.2

4 Edinburgh +11.4

5 GLASGOW +10.86 Bristol +10.6

7 Leeds +9.6

8 Liverpool +8.6

9 Sheffield +4.5

10 Birmingham +3.4

Source: ONS/NOMIS

At the more local level, Table 8 shows that of the 32unitary authorities in Scotland over the 1998-2002period, Glasgow came listed as the 5th best performerin terms of employment gain.

Table 8 : Top 5 Unitary Authority Employment Performers inScotland 1998-2002 (% Change)

1998-2002 (ABI)1 West Dunbartonshire +14.6

2 North Lanarkshire +12.5

3 Midlothian +11.4

4 Edinburgh +11.1

5 GLASGOW +10.8SCOTLAND +5.4

GREAT BRITAIN +4.9

Source: ONS/NOMIS

In the absence of official statistics for self-employmentat unitary authority level, various estimates are postedby different agencies. ONS estimates that some 13,500self-employed people lived in Glasgow in 1998 rising to16,500 in 2002 while Business Strategies suggeststhe total of self-employed jobs in the city, (i.e. residentsand in-commuters), to be 13,500 in 1998 and 14,700 in2002. Interestingly, Cambridge Econometrics/SLIMStakes a more positive view of the numbers of self-employed in-commuting to Glasgow and estimate thattotal self-employment in Glasgow has increased from27,700 in 1998 to 29,900 in 2002. Tables 4 and 9 dataon self-employment use the BS/Cambridge consensusaverage.

Prospects for employment gain in Glasgow over theshort to medium term remain favourable. Despite thereverse in jobs in 2002, both Business Strategies andCambridge anticipate a return to growth although theoverall annual average rate of +0.7% growth, predictedover the 2002-2005 period, is much reduced from the+2.3% that characterised 1998-2002.

Overall, total employment in the City is predicted togrow by +8,100 jobs to 418,600 from 2002 to 2005, withemployee jobs rising from 384,900 to 394,100 (Table 9).

Table 9: Glasgow Employment Forecasts to 2005/2010

2001 2002 2005 2010Employee jobs 389,700** 384,900** 394,100 416,700

Self-employed 24,200 22,300 21,400 20,600

Armed Forces 1,400 1,400 1,400 1,400

Government Trainees 2,400 1,900 1,700 2,000

TOTAL 417,700 410,500 418,600 440,700

** ABI 2001 ; ABI 2002

The largest source of new employee jobs will be fromhealth and social work, hotels and catering and,financial and business services. On the negative side,manufacturing is expected to continue to cut labour. Anet gain in total employment (+22,100 jobs) isanticipated over the 2005–2010 period and this impliesa strengthening in the overall annual average rate ofjob growth to around +1.1%.

Glasgow Residents in WorkThe workplace employment figures presented abovemeasure the total number of jobs in Glasgow,irrespective of where the people employed live (that isa combination of residents and in-commuters). Incontrast, resident employment shows the number ofpeople living in any given area who are in work,regardless of where their jobs are located. The usualsource for such information is the Labour ForceSurvey (LFS).


Information from the LFS shows that, over the periodSpring 1998 to Spring 2002, Glasgow residents in workrose from 212,000 to 234,000 — that is 22,000 moreresidents were in work in 2002 than in 1998. Table 10indicates over that period, male residents in work rosefrom 110,000 to 122,000, while female residents in workincreased from 102,000 to 112,000.

Table 10: Glasgow Residents in Employment Spring 1998 toSpring 2002

1998 1999 2000 2001 2002Males 110,000 105,000 117,000 126,000 122,000

Females 102,000 99,000 106,000 108,000 112,000

All persons 212,000 204,000 223,000 234,000 234,000

Source: Labour Force Survey

Information from the Labour Force Survey also allowsthe calculation of employment rates. The ‘employmentrate’ is simply the proportion of the working agepopulation in any area that is in a job. In Glasgow, theemployment rate has risen from 57.1% in 1998 to 59.8%in 2002. However, the Spring 2002 rate is considerablybelow that of Scotland (73.1%) and Great Britain(74.6%). In effect this means, there would have to be anadditional 52,000 jobs taken by local residents if theGlasgow employment rate were to be brought up tothat of Scotland and some 58,000 jobs if the local ratewas to approach the British average.

UnemploymentThe Office for National Statistics (ONS) has recentlyintroduced several changes to the way unemploymentis measured.

To emphasise the International Labour Organisation(ILO) unemployment definition as the official measureof unemployment in the UK, this statistic, (whichmeasures those who are actively seeking work), hasbeen relabelled as ‘unemployment’ rather than ‘ILOunemployment’. Unemployment rates associated withthe ILO level are calculated against these residents ofworking age (males aged 16-64 and females aged 16-59) who are economically active — that is, either inemployment or unemployed.

While ONS will continue to provide monthly claimantdata, (that is, those people claiming JobSeekersAllowance (JSA)), these are not presented as analternative measure of unemployment. As from January2003, the new claimant proportion has been basedon the number of working age residents in each areawhere there are claimants. While National Statisticswill not support these figures as a proxy forunemployment, these proportions provide a usefulindicator of the local distribution of relative deprivationor social distress.

Figures published by National Statistics showGlasgow had 18,000 residents actively seeking workover the September-November quarter 2003 giving anoverall unemployment rate of 6.7%.

Table 11: Unemployment in Glasgow: Scotland & GreatBritain (1998-2003)

Glasgow

Sep-Nov Sep-Nov Sep-Nov Sep-Nov Sep-Nov Sep-Nov1998 1999 2000 2001 2002 2003

34,000 33,000 25,000 30,000 25,000 18,000

13.5% 12.7% 9.0% 11.6% 9.3% 6.7%

Scotland


391,000 174,000 156,000 166,000 154,000 146,000

7.7% 7.1% 6.2% 6.6% 6.1% 5.8%

Great Britain


1,739,000 1,669,000 1,532,000 1,481,000 1,514000 1,443,000

6.3% 5.9% 5.4% 5.2% 5.3% 5.0%

Source: Nomis

The Glasgow unemployment rate in Sep-Nov 2003 wassome 16% above the Scottish average of 5.8% and,34% higher than the level for Great Britain (5.0%). Thisis a considerable improvement on the relative positionfour years ago when in 1998 the Glasgowunemployment rate was running 77% above that ofScotland and 114% above that in Great Britain (Table11). Overall the number of unemployed reduced by9,000 from 1998 to 2002 and by a further 7,000 over thepast year.

Meanwhile the Glasgow claimant count — in contrast tothe above headline count — only includes those claimingunemployment benefit and is therefore a measure ofonly that group of people. In November 2003, Glasgowhad 16,746 people claiming benefit — equivalent to some84% of the total unemployed in the city.

Claimant Count by AreaBecause claimant count numbers and proportions are arelatively good indicator of joblessness and the onlyreal source of timely information on small areas, theCity Council’s Development and Regeneration ServicesDepartment continues to analyse this information inrelation to the distribution and characteristics ofclaimants at ward level within Glasgow. However, theCity Council has challenged the 2001 Census-basedpopulation estimates for Glasgow City (normally usedto derive claimant count proportions) and is currently


engaged in a technical dialogue with GRO (Scotland)on this issue. Accordingly, the Council uses its ownestimates of population of working age within eachward to derive a claimant count proportion.

It is to be noted that the number of people in Glasgowin receipt of JSA fell to a record low of 16,048 inDecember 2002. Over the period to November 2003however, the downward trend reversed with claimantsin November 2003 posted at 16,746 (with an associatedproportion of 4.4%). Analysis of National Statisticsfigures gives Glasgow, in November 2003, a maleclaimant count of 13,331 (a proportion of 6.9%) with afemale count of 3,415 (1.8%).

The distribution of people claiming unemployment-related JobSeekers Allowance continues to be unevenlyspread across the City. The 10 wards with the highestnumber of claimants in November 2003 are shown inTable 12. Glasgow North Social Inclusion Partnership(SIP) Area is represented by four wards (Royston,Cowlairs, Keppochhill, and Springburn) whileDrumchapel SIP has two (Summerhill and Drumry).Figure 1 plots the ten wards in the city with the highestunemployment rates. The position of all wards is givenin Appendix 1.

Table 12: Wards with Highest/Lowest Claimant Proportions(November 2003)HIGHEST

Ward Number of ProportionClaimants Of Working Age

28 Royston 421 7.8%

29 Cowlairs 364 7.4%

1 Drumry 311 7.0%

2 Summerhill 296 7.0%

26 Keppochhill 294 6.9%

52 Govan 317 6.6%

20 Wyndford 317 6.6%

66 Hutchesontown 315 6.4%

40 Queenslie 239 6.4%

30 Springburn 242 6.1%

LOWESTWard Number of Proportion

Claimants Of Working Age48 Garrowhill 70 1.2%

64 Maxwell Park 59 1.3%

8 Jordanhill 62 1.3%

9 Kelvindale 71 1.6%

46 Mount Vernon 99 2.0%

73 Cathcart 107 2.2%

13 Hyndland 122 2.2%

58 Cardonald 98 2.2%

76 King’s Park 121 2.4%

70 Langside 128 2.4%

Source: ONS/GCC



GLASGOW CITY COUNCIL WARDS

1. Drumry 21. Maryhill 41. Greenfield 61. Nitshill2. Summerhill 22. Summerston 42. Barlanark 62. Darnley3. Blairdardie 23. Milton 43. Shettleston 63. Carnwadric4. Knightswood Park 24. Ashfield 44. Tollcross Park 64. Maxwell Park5. Knightswood South 25. Firhill 45. Braidfauld 65. Pollokshields East6. Yoker 26. Keppochhill 46. Mount Vernon 66. Hutchesontown7. Anniesland 27. Merchant City 47. Baillieston 67. Govanhill8. Jordanhill 28. Royston 48. Garrowhill 68. Strathbungo9. Kelvindale 29. Cowlairs 49. Garthamlock 69. Battlefield

10. Scotstoun 30. Springburn 50. Easterhouse 70. Langside11. Victoria Park 31. Wallacewell 51. Drumoyne 71. Pollokshaws12. Hayburn 32. Milnbank 52. Govan 72. Newlands13. Hyndland 33. Dennistoun 53. Ibrox 73. Cathcart14. Hillhead 34. Calton 54. Kingston 74. Mount Florida15. Partick 35. Bridgeton/Dalmarnock 55. Mosspark 75. Toryglen16. Kelvingrove 36. Parkhead 56. North Cardonald 76. King’s Park17. Anderston 37. Carntyne 57. Penilee 77. Castlemilk18. Woodlands 38. Robroyston 58. Cardonald 78. Carmunnock19. North Kelvin 39. Gartcraig 59. Pollok 79. Glenwood20. Wyndford 40. Queenslie 60. Crookston

© Crown Copyright. All rights reserved. GCC LA09028L 2003

Figure 1: Ten Wards In Glasgow With Highest Claimant Proportion Rates (November 2003)


Table 13: Wards with Greatest Reductions: Gains in ClaimantsNovember 2002 to November 2003

Reduction in Claimant NumbersWard % Change

70 Langside -22.9

18 Woodlands -16.4

55 Mosspark -15.4

42 Barlanark -14.5

34 Calton -10.4

58 Cardonald -9.3

8 Jordanhill -8.8

24 Ashfield -8.8

36 Parkhead -7.6

16 Kelvingrove -6.4

Gain in Claimant NumbersWard % Change

76 King’s Park 28.7

5 Knightswood Park 24.3

27 Merchant City 21.8

20 Wyndford 21.0

6 Yoker 18.5

54 Kingston 18.1

64 Maxwell Park 18.0

74 Mount Florida 17.5

31 Wallacewell 16.4

77 Castlemilk 14.4

Source: ONS/GCC

While over the period November 2002 to November2003, the number of people claiming JobSeekersAllowance increased city-wide by +2.9%, there wereagain significant differences in performance inparticular areas of the city. As Table 13 shows, KingsPark, Knightswood Park, Merchant City and Wyndfordwards each posted an increase of over +20% inclaimants, while 5 wards (Landside, Woodlands,Mosspark, Barlanark, and Calton) recorded a reductionin claimants of over -10%. The change position of allwards is given in Appendix 1.

Claimant Count by AgeA breakdown of the age structure of the registeredclaimant count in Glasgow for November 2003 andNovember 2002 is shown below in Table 14. Althoughrecent numbers in the City have been on a downwardspiral, the fact that around 11,032 people in the primeworking years of 20-44 are without a job remains amatter for concern.

Table 14: Glasgow Claimants by Age (Nov 2002—Nov 2003)

Age Male Female TotalNov Nov Nov Nov Nov Nov

03 02 03 02 03 02Under 20 1,251 1,126 704 667 1,955 1,793

20-24 2,011 1,932 616 593 2,627 2,525

25-34 3,903 3,938 751 729 4,654 4,667

35-44 3,106 3,134 645 568 3,751 3,702

45-54 2,012 1,951 463 436 2,475 2,387

55-59 731 726 178 154 909 880

60+ 123 101 0 0 123 101

Unallocated 194 166 58 53 252 219

Total 13,331 13,074 3,415 3,200 16,746 16,274

Source: Nomis

Youth claimants (i.e. people under the age of 25) inGlasgow form a broadly similar proportion of totalclaimants — at around 27% — as in Scotland as awhole.

Claimant Count by DurationRegistered claimant count levels by duration inGlasgow for November 2003 are detailed in Table 15.Despite the overall rise in claimants, long-termclaimants (persons in receipt of JobSeekers Allowancefor over one year) in Glasgow currently stand at 2,915(17.4% of the total) — down by 61 since November2002.

Table 15: Claimant Count by Duration (Nov 2002—Nov 2003)

Duration Male Female TotalNov Nov Nov Nov Nov Nov

03 02 03 02 03 02Under 6 7,959 8,086 2,391 2,395 10,350 10,481months

6-12 months 2,632 2,365 597 452 3,229 2,817

13-24 months 1,651 1,547 270 212 1,921 1,759

25-36 months 475 371 54 43 529 414

37 months + 420 539 45 45 465 584

Unallocated 194 166 58 53 252 219

Total 13,331 13,074 3,415 3,200 16,746 16,274

Source: Nomis/GCC

Detailed below are the most significant developmentsthat have taken place within Glasgow companies overthe last six months. The information has been collatedfrom a number of sources and is believed to beaccurate, although this cannot be guaranteed.

EnergyThe privatisation and of the UK energy industry acrossthe 1990s left a fragmented structure, with too manyunsustainable companies chasing a limited market,with limited profitability. It also allowed giant Frenchand German utility corporates such as EDF, Eon andRWE to move in and acquire British energy suppliers,while their own domestic markets remained closed toforeign acquisitions. More than half the powergenerating capacity of England and Wales is currentlyunder foreign ownership. However, in November 2002,the European Union opened European power marketsto full liberalisation, effectively meaning that UKcompanies will be able to compete across the EU forbusiness customers from July this year andhouseholder accounts from July 2007.

That said, the UK electricity generating market hasgone flat, with a very competitive trading allied toovercapacity leading to a 40% fall in prices over thepast 3 years, with some producers reporting wholesaleprices declining below the cost of production. BritishEnergy, the UK’s biggest generator, working at 60%capacity, was saved from near insolvency in September2002, only by the injection of government funding. Thesame year, Eon, the German owners of Powergen,announced it was to shut around a quarter of its UKpower stations and, US based TXU Europe, one of thelargest power and gas traders in the UK, and theowners of Eastern Energy and Norweb, (the secondlargest supplier in the UK retail energy market), wasput into administration.

Glasgow-based ScottishPower (SP) has howevermaintained its profile as a leading company in thesector. Since its creation through privatisation in 1991,SP has grown from a £0.8bn regional power operationinto a major international energy group, listed on boththe New York and London Stock Exchanges, with aturnover of £5.3bn in 2002-2003.

One of the strongest performers in Glasgow’s portfolioover the past decade, centralisation of corporateservices in the city, was a keynote feature of SP’sdevelopment with the company first establishing, andthen expanding, in new group headquarters at AtlanticQuay, Broomielaw. The Cathcart operation on thesouth side of the city became the focus of the group’scustomer call and billing network. Cathcart also housedthe management of Energy Supply and Power Systems

divisions as well as the headquarters of SP’s fastgrowing gas supply operations ScottishPower Gas.Yet another SP success across the 1990s was itstelecom subsidiary ScottishTelecom, (headquarteredin Dalmore House, St Vincent Street), which launchedin 1995 and rapidly became a major force withinScotland’s telecommunications industry. Following the£7bn acquisition of US utility PacificCorp in 1999, SPbecame an international energy group.

The past three years, however, have proved difficult andhas led to a strategic refocus on core energy supplybusiness in a bid to maintain revenues and reducedebt. Since US operations account for 60% of thegroups operating profit, restructuring has fallen largelyon UK activities. In November 1999, Scottish Telecomwas demerged to form £2bn Thus, the then seventhlargest quoted company in Scotland; SP’s ContractingDivision was disposed of to Alstom UK and, in June2001, all 156 stores in its loss-making UK retailbusiness were sold.

In February 2002, ScottishPower launched Core UtilitySolutions, a 50/50 joint venture with infrastructureservice company Alfred McAlpine — a move to allowthe company to compete for connection contracts on aUK-wide basis. Around 330 personnel fromScottishPower UK were anticipated to transfer to thenew venture. The major Scottish base at Uddingstonreceived around 50 staff transfers from SP. Furtherrestructuring moves, however, followed in March 2002,with the £2.05 billion sale of its Southern Water armto finance group First Aqua and the announcementthat 200 jobs were to be shed at Cathcart, togetherwith 50 staff at the Atlantic Quay offices.

On top of this, ScottishPower exited from Calanais, a£420m joint venture with top San Diego-basedAmerican computer services group ScienceApplications International Corporation (SAIC), inMay 2001. In October 2002, SAIC relocated itscompany headquarters, (Buchanan Street), and itsmain workforce, (working from leased premises withinScottishPower (Cathcart) and Weir Pumps (Cathcart) toEast Kilbride, with a net loss of 450 jobs to the city.Interestingly, US company Data Systems & Solutions,a joint venture between SAIC and Rolls Royce, acquiredGlasgow technology company Coredata in October2002. Coredata, which provides content solutions forthe aviation industry, operates from Skypark, (ElliotPlace), with a staff of 12.

In total, ScottishPower currently has a workforce ofaround 2,000, (full-time, agency and contractor staff),spread across its divisional and call centre sales, andtrading operations at Cathcart with a further 70 or so

Company News


staff at Dataserve (customer metering and services) atHawick Street, Yoker. This term, further reorganizationat Atlantic Quay has involved the transfer of some staffto SP’s facilities at Bellshill (Strathclyde Business Park)which means that total employment in the corporateheadquarters reduced from 200 in March 2002 toaround 70 by September 2003.

Elsewhere—with public gas transporter Transco havingundertaken its own reorganization across the latenineties (reducing staffing levels at KilbirnieStreet/Blochairn Road from 270 to current 160) — theonly other recent development in this sector came fromtemporary power supplier Aggreko which in October2002, with the help of a Scottish Executive regionalselective assistance offer of £900,000, launched aGlobal Technology Centre at City Park, (the former WillsTobacco building), with some 23 staff. The companyalso has head office representation in the city at WestRegent Street (26 staff). Aggreko, which demergedfrom Christian Salvesen in 1997, now employs 2,000people worldwide, with 90% of its income coming fromoutside the UK.

ShipbuildingKorea and Japan continue to dominate world merchantorder books with China still on a rising trend. With theexpansion of Korean capacity in the late 90s andcurrently China opening new dockyards, OECDestimates that the present surplus of 15% over demandcould reach 30% by 2005. Barry Rogliano Sallesreports the number of orders in sectors whereEuropean merchant shipbuilding is traditionally strong(ro-ro ships, ferries, cruise ships) remains weak. Overthe past three years a number of least efficient yards inGermany, Italy, the Netherlands, Sweden, Norway andPoland have gone bankrupt and layoffs have beenevident in Denmark, Finland, Germany and theNetherlands. These developments come at a time whenEurope’s politicians are no longer preservingshipbuilding’s ‘favoured status’ position in theEuropean Council, given that the average amountspent in 1998, in subsidy per employee in theshipbuilding industry, was 28,000 Euros, compared withonly 1,113 Euros per employee average in all other EUindustry.

Britain’s shipbuilding industry, (which produced 38%of world tonnage in 1950, but now only accounts forunder 1%), is still very much in difficulty, with the fewremaining yards continuing to survive mainly throughservicing the needs of the MOD. The UK governmenthas responded with the largest forward shipbuildingprogramme for the Royal Navy for many years. In total,the Ministry of Defence plans to bring 30 new shipsinto service over the next 15 to 20 years. However, in

August 2003, Babcock International indicated therewere still too many shipyards in the UK chasing purelydefence contracts to create a sustainable domesticshipbuilding industry.

The future of Clydeside, (and indeed Scotland’s),shipbuilding effectively lies with BAE Systems. Formedby the merger of British Aerospace and GECMarconi in 1999, BAE Systems is Europe’s largestcompany involved in shipbuilding. BAE SystemsMarine is the company’s shipbuilding business unitwith two Glasgow yards, (Scotstoun and Govan), and isheadquartered at VSEL (Barrow). Scotstoun alsohouses BAE Land And Sea Systems warship designand support division staff. The ‘navy ships’ business ofthese Glasgow operations broadly produce annualsales of around £300 million.

Following a lean period across 2000—July 2003 whenorders gaps appeared and there was a lack of clarityover future defence contracts, employment atScotstoun fell from around 2,500 to 2,020, the designand support division reduced from 210 to 180 andGovan’s complement was pared back from 770 to 460.

“BAE Systems . . .already with an orderbook secure well intonext decade . . .confident of winningseveral huge contractswhich could create upto 2,000 jobs atScotstoun and Govanyards”.

Herald, 5 August 2003

This time round the picture is more positive. In March2003, BAE announced a restructuring of its navaloperations, with Clyde facilities to undertake surfaceship business, including Type 45 destroyers, LandingShip Docks, export ship projects and shipbuildingactivity associated with the new £2.9bn MOD aircraftcarrier programme. The sister operation at Barrowwould focus on the submarines business and deliveryof the Astute class into service.


In consequence, the Clyde yards will now assemble allBAE’s work allocation and launch all six ships of the£2bn Type 45 destroyer order committed to by theMOD in November 2001 and, undertake build workallocated to BAE under the UK Royal Navy's two new50,000 tonne aircraft carriers programme—a £2.9bnproject which blends aerospace procurement withnaval and carries a £7bn maintenance contract overthe 2012-2042 period.

Build work started on the £2bn Type 45 destroyerprogramme in April 2003; in June, some 165announced redundancies across both yards werewithdrawn and in September, 112 apprentices wererecruited—all in all bringing much needed stability tothe workforce. In January this year employment acrossthe Scotstoun/Govan Systems Marine facilities wasposted at 2,340 with an additional 180 at Land & SeaSystems. In combination, the T-45 and carrierprogrammes should underscore job security atScotstoun and Govan across the next 10 years.

In terms of prospects, BAE announced in August 2003that up to a further 2,000 jobs could be created in thenaval ships division should its bids to win £1bn ‘export’contracts [from Chile (three Type-23), Thailand (twofrigates) and Malaysia (up to four frigates)] provesuccessful and the MOD confirms a further 4-shiporder for Type 45 frigates. Research consultant AMIInternational reported in November 2003 that Asia-Pacific could become the world’s biggest market forwarships over the next 6-7 years with spend set to risefrom around £4.3bn to £8.5bn.

Meanwhile in January 2004, BAE confirmed delivery ofthe first Type 45 would be 2008—a year later thanexpected. The company also reconfirmed that up to afurther 1,300 industrial jobs might be created —dependant on the capture and timing of MOD andoverseas order levels — and it was looking at the optionof sharing manpower with Babcock’s Rosyth yard.

With respect to the two flagship 50,000-tonne aircraftcarriers which are due to go into service over theperiod 2012-2015, BAE will work to Thales (France)carrier concept design and Thales will be a keysupplier. However costings, final designs, and workallocations for this project are still to be finalised.Thales, Europe’s largest defence electronics company,is also well represented in Glasgow with some 580employed at Thales Optronics, Linthouse Road,Govan. Also under the Thales banner in Glasgow is,Thales Fieldforce, (telecoms and IT installation andmaintenance) at Charles Street, Springburn (15 staffand 60 engineers on the payroll) and ThalesTranslink, (telecommunications design andengineering), at Skypark, Elliot Place (45 staff).

EngineeringAcross 2001/02/03, National Statistics posted figuresat interludes showing the UK manufacturing sector hadofficially fallen into recession, driven by a depressedhigh-tech sector and the US-led global slowdown. Theknock-on impacted virtually across the board, with theBritish Chambers of Commerce and EngineeringEmployers Federation reporting depressed domesticand international conditions and lower trade volumes inmany of the UK’s main export markets. Both old andnew engineering industries across the supply chainwere affected with many companies required toredefine business models, defer new capital investmentand make cuts in staff numbers. Scotland, with a largenumber of high profile technology closures/ job lossesand investment cancellations has been one of thehardest hit of the 11 UK regions. In August 2003,Scottish Engineering reported manufacturingengineering still to be in recession with a general trendof declining export and home market orders,continuing pressure on jobs and firms reluctant tocommit to capital investment. These trends wereeffectively reinforced by the CBI and CBI Scotland inNovember 2003 which in addition noted the highincidence of traditional manufacturing moving intoCentral Europe and Asia. In December, the CBIindicated some tentative signs of a pick-up in exportorders at the UK level—but Scotland’s top two marketsFrance and Germany remained sluggish.

With Glasgow having no significant representation inthe volume electronics and computer productionindustries, the national rise in these activities acrossthe 1990s, in terms of employment, output, exports andwealth generation, virtually by-passed the city andaccordingly, the City’s overall contribution to Scotland’sengineering production has fallen dramatically inrecent years. Employment estimates suggest that,excluding marine and shipbuilding activities, theengineering workforce in the city fell from 13,500 in1991, to around 9,800 in 2001.

While, this time round, the main downturn impact hasbeen upon these hi-tech and electronics ‘cluster’locations outwith Glasgow, the City’s traditionalengineering operations and suppliers nonetheless havebeen caught-up in ‘cost-down’ job losses, closures andthe deferral or cancellation of future investments —with many corporates scaling back operations.

Five major closures have been implemented this term.Alcan Foil Europe, (AFE), the Polmadie aluminium foilmanufacturer (a subsidiary of Canadian-basedcompany APA) closed in September 2003. In early2002, the plant had a 220-strong workforce. MeanwhileTyco International, (the US giant that acquired


Keystone Valves, Drumoyne, in 1977) followed on fromtransferring valve and control distribution functions toMarket Harborough in 2002 (with a 50 job loss) byclosing the remaining manufacturing operations in July2003 with a 100 job loss. Meantime, Norson Services,the fluid and pipework specialist relocated fromClydesmill Place, in Cambuslang Investment Park, toAberdeen. In 1997, the company employed a 90-strongworkforce in Glasgow but recently operated with a staffof 7. Another firm which pulled production from theInvestment Park was yacht and pleasure boatequipment manufacturer Clyde Marine. In March2003, the company announced the transfer of riggingproduction to Connecticut (USA) — a move thatreduced the workforce from 70 to around 35. A furtherannouncement in June indicated that windlassproduction would be transferred to Hampshire and theplant closed in October with the loss of the remainingmanufacturing jobs. In a final withdrawal of facilitiesfrom Glasgow, the company indicated its 13 strong HQwould also relocate to Hampshire in Spring 2004.Meanwhile, across the city, metal manufacturersWalker Macleod have closed two subsidiary arms atBulldale Street, Yoker. Walker Macleod Hewitt,(heavy fabrications and machining), and WalkerMacleod Controls, (switchboards and control panels),went into liquidation in September 2003 with the lossof 60 jobs. The company however, still retains apresence at Bulldale Street through Walker Macleod(metal structures) and Walker Macleod Contracting(installation and instrument services) althoughemployment at these operations has fallen from 115 inDecember 1999 to 60 in November 2003.

These developments come on the back of a number ofother fairly high profile losses to Glasgow over therecent period.

In 2001, US control systems group Honeywell relocatedits Elm Holdings subsidiary (North Cardonald), toHoneywell’s HQ facility at Newhouse, with the loss of120 jobs to the City. In 2002, French-owned cablemanufacturers FCI Scotland, (part of Framatome SA)closed its Queenslie facility to concentrate production atPort Glasgow and Hungary, with a subsequent loss of140 jobs to the City. In another relocation, MartecEngineering, (metal fabrication), moved fromSandilands Street, Shettleston, to Rutherglen, with a lossof some 80 jobs to Glasgow’s account. In addition, IBPclosed its two operations in the city — Seaward Street,(manufacture of copper manifolds), and Houston Street,(wholesale) — with a combined loss of some 35 jobs,while component manufacturer A G (Alloys), WoodvilleStreet, closed with the loss of 28 staff, and MacLellanRubber, Shuna Street, Maryhill, closed with the loss ofaround 70 Jobs.

Elsewhere, valve manufacturer BaronshireEngineering, Thornliebank, which was acquired inmid-summer 2000 by PCC Flow Technologies, asubsidiary of US corporate Precision Castparts,downscaled following consolidation of the company’sEuropean operations. Originally intended to become thecompany’s European HQ, with a workforce of around200 staff, the Thornliebank operation shed some 65jobs and its current complement is now 15. Anotherfirm that rationalised operations was plant hire groupHewden Stuart. Acquired by Canadian FinningInternational in December 2000 for £322m, Hewdenrelocated its head offices out of the city, (fromBuchanan Street to Strathclyde Business Park), in 2002and then disposed of its Hewden Contractsoperations, (at Lynedoch Crescent), to NorthConstruction Group. However, in February last year,North Construction called in the receivers with the lossof 160 jobs. Hewden, nonetheless, still retains sevenoperations in Glasgow, (with a total employment of105), including key depots at Easter QueenslieIndustrial Estate and London Road. Another outmoverwas Pentranic, manufacturers and suppliers ofmonitors to the game and amusement industry, whichrelocated in February 2003 to Livingston, with the lossof 15 jobs to the city.

On the back of difficult trading conditions in thevehicle sector over the past two years, AlbionAutomotive, the Scotstoun components manufacturer,and subsidiary of Detroit-based American Axle andManufacturing, (AAM), has pared back itscomplement from 450 to 420 at February 2004.However on the positive side, the US owners seeAlbion as a bridgehead into Europe and the plantreceived a major boost when AAM secured, in August2002, a contract to continue to supply rear axles forRenault Trucks’ commercial vans and medium dutyvehicles. This contract will protect current jobs at theplant until 2006. Staying with the vehicles sector, inOctober 2003 Allied Vehicles, the distributor/manufacturer of ‘Eurotaxi’ taxis, completed thepurchase of a 25,000 sq ft building adjacent to itsexisting operations at Balmore Road. The companyintends to recruit an extra 30 personnel — to add to thecurrent complement of around 200 — on the back ofprojected expansion into the London market andEurope in 2004.

Meanwhile, Cathcart-based Weir Group, one ofGlasgow’s leading companies and Scotland’s largestengineering group, has also been caught up in thewave of consolidation sweeping the sector. Some threeyears ago, Weir firmed its own position in the worldmarket, by the £3.7m purchase by its Weir Westgarthsubsidiary of Envig Holdings, (South Africa), and


thereafter, the £195m takeover of Australian pumpmaker Warman International. Cathcart is the centreof operations for Weir Pumps, Weir EngineeringServices, Weir Westgarth and the Group plc.However, in mid-summer 2001, Weir sold its softwaresubsidiary Weir Systems to Maxima InformationGroup which became Azur Business Solutions, (35staff), and relocated to Hillington Park in Renfrew.Further restructuring (including an 85 job loss in theWeir Pumps division announced in March 2003) hasslimmed back the total Cathcart workforce, from 1,100in 2000 to present levels of around 900 and furtherconsolidation has not been ruled out. Currently, theworld’s 6th largest pump maker, Weir Pumps isintroducing lean manufacturing methods in order tobecome more competitive and further consolidation ofthe workforce has not been ruled out. Strategically, thecompany is also understood to be looking foracquisitions in the global pumps business.

One major announcement, in October 2001, came withaerospace company Rolls Royce indicating itsintention to reduce UK employment by up to 3,800 overthe medium term because of a downturn in business.In November 2001, the company confirmed that theHillington facility, which produces compressor blades,would be closed and in May 2002 indicated thatInchinnan (Renfrew) was the preferred location for anew £85m custom-built factory. Concurrent with this,the Hillington workforce has been reduced from 1,360to 900. Manning levels at the Rolls Royce military andcivil engine plant at East Kilbride has been reduced by40 to 1,070. Also vulnerable are Glasgow residentsamong the 330-strong workforce at the Hoover Candyplant at Cambuslang. In September 2003, Hooverannounced vacuum cleaner production would betransferred to China with the loss of around 260 jobsand confirmed it was looking to move fromCambuslang to a smaller site that could house theremaining 70 staff involved in research, sales andservicing.

New ManufacturingNew professional engineering, (characteristically smalland medium), business environments have beenestablishing and consolidating quickly in biotechnology,software, IT and communications in Glasgow in recentyears. Current development activity, however, has, witha few key exceptions, gone flat, with several companieseither shelving expansion plans, downsizing, or closingdown operations.

Biotechnology was forecast by Ernst & Young to bethis century’s most dynamic industry. The Europeanmarket alone for biotech-related goods and services

was predicted to rise from current levels of around£30bn to £100bn by 2005. Q-One Biotech, (test andvalidation), at the West of Scotland Science Park, hasdeveloped consistently on the back of a £1.5 millionexpansion at its Glasgow head office facilities, toaccommodate growth. The company’s staffing profilehas increased accordingly from 150 in 2001, to currentlevels of 180 in Glasgow. A further 58 staff areemployed in Boston USA. This growth however did notgo unnoticed and in September 2003, US corporateBioReliance acquired Q-One is a £42m deal.

Elsewhere in Glasgow however the signals are lesspositive.

Relative-newcomer ClinTrials, (a USA-headquarteredglobal contract research organisation), which has itsEuropean data management centre at Cadogan Square,was taken over in 2001 by UK firm InvereskResearch. One of the largest biotechnology firms inScotland, Inveresk Research announced, in April 2002,plans to list in the USA and move its headquarters toAmerica. Over the past year employment at theCadogan Square location has slipped back from 135 to100. Another addition to Glasgow’s biotechnologyportfolio came with the establishment of ScottishBiomedical, in February 2001, at the Science Park. Onthe back of a proposed £5.2m investment, some 35staff are currently employed in the company’s twooperations at Todd Campus and Kelvin Campus.Cruachem, another Todd Campus Science Parkbiotechnology firm, was acquired in 2002 by fast-expanding, US-based TransgenomicBioconsumables. The new owners plan to set upmanufacturing operations in Inchinnan, (Renfrew), in aphased operation by June 2004, with R&D beingretained in Glasgow. Over the past eighteen months,employment at the Campus facility has been paredback from 60 to around 30. The latest to experiencedifficulty is PanTherix, (antibiotics researchspecialists), which relocated in 2002 to a £6 millionpurpose-built 3,000 square metre R & D facility, at theWest of Scotland Science Park. Staff numbers grewfrom 17 to 35. However the company failed to raise£15m to take products through clinical trials, and shedits employees in October 2003.

In total, Scottish Enterprise Glasgow (SEG) estimatethat, at December 2002, Glasgow had some 37companies, (with an associated employment count of820 jobs), operating in bioscience, medical device andrelated activities and that the total number ofbioscience ‘cluster’ jobs, (including those at the city’suniversities), was around 3,900. Meanwhile SEG’sparent, Scottish Enterprise signalled a shift in policy


in February 2004 by announcing its bioscience focuswould be more on sustaining and growing existingclusters rather than prioristing new company creation.

Meanwhile, in an effort to match future technologymarkets with research & development, ScottishEnterprise and Highlands and Islands Enterprisehas started to roll out an Intermediate TechnologyInstitute programme with the pledge to commit £450mto this over 10 years. ITI Scotland—a company formedto undertake the programme—launched in Septemberfrom 180 St Vincent Street with 9 staff in post atNovember 2003 with its digital/media arm Techmediataking temporary premises at the Beacon Building, StVincent Street.

On the software side of things, 2001 saw the arrival ofsoftware developer Digital Animations Group at TheLighthouse, Mitchell Street, in a relocation fromStrathclyde Business Park. The move brought 45software engineering jobs to the City. In January 2002,DAG, following its acquisition of Black ID, (the ElliotStreet design company), consolidated Black’soperations and 18 staff at Mitchell Street. In December2002, the company rebranded as DA Group and thecurrent staffing level is put at 50. Meanwhile, AbsoluteStudios, originally launched as a computer gamescompany in 1998, has now diversified into digitalcontent provision for broadcast. The company hasrecently taken an additional 5,000 sq. ft. at thePentagon Centre, Washington Street and currentlyemploys around 10 staff, plus freelances. Meanwhile e-business and software company McLaren Consulting(Atlantic Quay) has reduced its total worldwideemployment from 210 in 2001 to around 80 andrepositioned as a software specialist in the high-valuedocument management market. McLaren had astaffing representation in Glasgow of around 50 inDecember 2003.

However the key announcement this term came inNovember 2003 when Absolute Quality, theMaryland-based computer test and support company,reaffirmed plans to create 150 jobs in Scotland by 2005.The company, which specialises inentertainment/games software, launched a multi-lingual European technical base at Tara House, 46 BathStreet in 1999 with a job target of 120 by 2003. Theseplans were shelved however due to the poor marketconditions. Current employment at the facility is put ataround 60. Absolute will now expand its Europeanoperation and move to new call centre premises at theSkypark.

“US-based softwaretesting and technicalsupport companyAbsolute Qualitypledges to create 150jobs in Glasgow overthe next two years.”

Scotsman, 18 November 2003

On a less positive note, American multinational Unisys,which recently opened a new European Enterprise NTSoftware Centre at its existing premises in Bath Street,to recruit and train software engineers, has shelvedplans to create up to 350 jobs by 2003. Tough marketconditions, over the past 18 months, have seenemployment fall from 100 to 60 in October 2003.Initiative Software, which had announced plans todouble the 50-strong workforce at its Granite House,Stockwell Street facility, has now reduced its staffingcomplement to 35.

Staying on the downside, the past few months haveseen a number of high profile closures and outmovers.

Polaroid closed its international business centre atBath Street in July 2001, with the loss to the city ofsome 200 jobs; Buchanan International, the internetsecurity firm, ceased trading in August 2001, with theloss of 50 jobs: Inform Software, (Renfield Street),closed in November 2001 with the loss of 40 posts andCeon Corporation (Cadogan Street) closed its designand development centre in December 2001, with theloss of 48 jobs. Moreover, the Science Park optical chipcompany, Intense Photonics, relocated to HamiltonInternational Technology Park, (with an associated jobloss of 20), in September 2001, while multimediadesigners Focus Blue, (20 staff at Clyde Street),relocated to Vfacto’s facility in Lanarkshire and,software company Idesta, which relocated from StJames’ Road to Hillington Innovation Centre, on theback of expansion plans and a 200 job target, fell intoadministration last year. Likewise, computer gamescompany Red Lemon, (West George Street), whichwas targeted to expand its workforce in 2002 from 40to 75, downsized to 22 staff, then moved intoliquidation.


On the optoelectronics front, in September 2002, US-owned Coherent Inc, following its acquisition ofMicrolase Optical Systems in 2001 and on the backof a £7m investment, moved to Todd Campus fromKelvin Campus at the West of Scotland Science Parkand was re-branded as Coherent Scotland. Thisexpansion helped to raise employment at the laser-based solutions plant from 20 to 60. The complementhas however fallen back to 49 as at October 2003.Compound Semiconductor Technologies, located atthe Science Park, was sold in December 2001 to agroup of investors, in return for a £3.5m cash injection.The deal allowed the company to expand itsmanufacturing capability and foundry services andemployment increased from 14 to around 20. Currentemployment stands at 15 as at October 2003 Theexpansion plans of Kamelian, the developer andmanufacturer of integrated optical chips, based in theWest of Scotland Science Park, have however had toadjust to difficult trading conditions. The company,following the capture of £12.6m investment funding,has established a manufacturing facility in Oxford with30 staff, (against a target of 70), and plans for 30 newjobs at its Glasgow design and test facilities have beenshelved. Current employment in Glasgow is around 8.

Food and DrinkIndustry analysts report that Britain’s food and drinkmanufacturers are characterised by consolidation andrestructuring in the sector. A string of high-profilenames — Unilever, Cadbury Schweppes, Pepsico,Northern Foods, Unigate, United Biscuits andTomkins — have either sold, or are in the process of‘exiting’ from, low-margin food operations andshedding non-core businesses. Producers — generallycaught up in an increasingly health and legislative-conscious market — continue to face difficultconditions. Moreover, there is little relief from the retailside, with severe downward pressure on supermarketfood profits — a trend predicted to acceleratesubstantially over the next few years. Within the pastfour years, four companies with major operations inGlasgow — Rank Hovis McDougall, United Biscuits,Highland Distillers and Bass subsidiary TennentCaledonian — have changed ownership.

Food producers, in particular, are in a mature andunfashionable sector, characterised by stagnatingproduction, with Scotland’s output entrenched in aseven-year decline, despite repeated promotionalefforts by national bodies to stimulate the industry.Studies by Scottish Enterprise estimated that, by2010, the world will have an additional one billionpotential customers for lower cost, affordableprocessed food and an additional 850 million

customers, who desire higher value-added aspirationaland health-driven nutraceutical food products.However, over the same period, UK market demandgrowth is expected only to be marginal. ScottishEnterprise concludes that success for Scottish foodcompanies will depend on them targeting profitableemerging market segments. Current ScottishEnterprise backed initiatives include a marketadvantage programme; (to promote preserves; readymeals and ice cream), and a food cluster programme,which maintains that increased co-operation betweencompanies could result in a £3.2bn rise in turnover andthe creation of some 6,000 jobs in the Scottish foodand drink sector over the next 10 years.

The performance of Glasgow’s food sector has beenvery much reflective of recent trends and currentconditions, with the Scottish Council (Development& Industry) and Scottish Trade Internationalreporting that the City’s export sales collapsed from£36m in 1992 to £10.8m in 1998 and GlasgowExports, (recording international sales on a differentbasis to SCDI and STI), indicating that food exports inGlasgow have fallen to £7.1m in 2001/2002.

The City Council, together with SE Glasgow, areaware that many food producers in the City, andparticularly small-medium sized businesses, have toinvest substantially to bring up to standard, or rebuild,to remain in business. In August 1997, a ‘Food for Profit’programme was launched and two foodpark initiatives,(the 36-acre Glasgow East Food Park at Cambuslangand the 13-acre M8 Food Park at Port Dundas), weredeveloped to provide space for food-standardproperties, to meet new European and UK regulationsand quality controls.

The Glasgow East Food Park has had mixed fortunes,securing two relocations from elsewhere in the City(Scotplast Containers, (15 staff)¸ and the WaverleyBakery, (40 staff)), together with Walter Black, (40staff). The major boost came in October 1999, with theopening of Robert Wiseman Dairies’ £4m ‘super-depot’. This 38,327 sq. ft. facility by Wiseman, the UK’sfastest growing liquid milk supplier, is now staffed by a220-strong workforce, the majority of whom previouslyworked at the Possil and East Kilbride depots. Thecompany sells 80% of its produce to retailers, includingAsda, Tesco, Safeway and Morrisons. On thedownside, the Joseph Dunn Group relocated from thePark to Blantyre, in 2000, with the loss of 250 jobs tothe city, as did Duncans Food Services, (a 17-jobloss), while the Natural Fruit and BeverageCompany/Crystal Drinks closed operations in 2002,(with the loss of 30 jobs), and Britvic Soft Drinks,


following a workforce decline from 122 to 50, relocatedin June 2002 to Uddingston. The most recentdevelopment at the Park came in January 2003, withthe acquisition by Coatbridge confectioner Lees OfScotland of Waverly Bakery (Scotland’s only icecream cone and wafer manufacturer). Meanwhile, thesmaller M8 Food Park has attracted two wholesalerrelocations, (again from within the City), P & C Morris,(35 staff), and Woodward Food Services, (100 staff).

“Robert WisemanDairies plc—one of theUK’s top 5 dairycompanies—opensScotland’s biggestrefrigerator and brings220 jobs toCambuslang FoodPark.”

Herald, 28 October 1999

There have been some other plus points. Severalnational companies with a major presence in Scotlandhave, over the past four years, undertakencentralisation investment programmes at ‘core’ facilitiesin Glasgow, although such investments have not beenassociated with new employment gain. This has beenparticularly noticeable in the bakery products sector,where two firms, Allied Bakeries and BritishBakeries, hold around 50% of the UK market, byvolume. Both are however under competitive pressurefrom the fast expanding Warburtons (Bellshill) whichhas grabbed some 32% of the wrapped bread marketsince 1997 and is currently on course to doublecapacity at Bellshill through a £14m investmentprogramme.

Allied Bakeries, part of the Associated British FoodGroup, (following five years of profitability decline andstrong pressure from competitor British Bakeries),has restructured and invested in a bid to grow thebusinesses. Allied, which is the largest baker in the UKand currently market leader in the premium breadmarket, with its Allinson and Kingsmill brands, hasspent £10m in an upgrade and expansion at itsGlasgow Balmore operations. Balmore has taken on

tinbread production, (from Lochend, Edinburgh), andestablished a new dedicated distribution,administration and customer service operation. Inconsequence employment levels at Balmore areestimated to have been maintained at around 335 overthe past three years.

In July 1999, Tomkins, parent of Glasgow’s other majorbaker British Bakeries, (Duke Street), gave recognitionto the lack of growth evident in the sector and put thefood business on the market. The £1.1bn sale ofTomkins’ European food manufacturing business to UKprivate equity fund Doughty Hanson was completedin autumn 2000. Most of the RHM brands, (Nimble,Hovis, Mothers Pride), are popular in the UK but largelyunknown in Europe. Prior to takeover, the Duke Streetfacility had a staffing complement of around 460, whichhad fallen to 390 by early summer 2002. In September2002, the company opened a new regional distributioncentre at a 91,150 sq. ft. facility on a 7.5 acre site atEuroCentral, Lanarkshire. With some distributionfunctions at Duke Street transferred over, employmentlevels in Glasgow have fallen slightly to around 320.

The ownership of United Biscuits, (UB), and itssubsidiary McVities Group was settled in May 2000when Finalrealm, (France), took control. Biscuits arecurrently a strong core product within the UB umbrellaand biscuit producer McVities, through householdbrand leaders Homewheat, Digestive, Hob-Nobs, Go-Ahead, Penguins and Jaffa Cakes, has just under halfof UK market share. Recent new product launches, (30in the UK, 38 across Europe), have been backed byinvestment in marketing and plant, which has beengood news for the Victoria Biscuit Works, Tollcross,which in turn has received £6m of facility upgrade andis now one of the most advanced biscuit manufacturingsites in Europe. Employment at Tollcross has remainedstable between 800- 900 over the past 4 years.However Scottish Executive reports that as a result ofa £1.2m regional selective assistance, United Biscuits inGlasgow plans to expand its existing manufacturingcapacity and create 100 jobs. The firm is one of the firstto be offered a New Deal premium — if it recruits andretains 20 New Dealers, the grant on offer will increaseby £100,000.

With McVities in a position to benefit from astrengthening biscuit market, the City’s other keybiscuit producer, Gray Dunn, (at Kinning Park), closedin April 2002 with the loss of 215 jobs. Another casualtycame with chicken and meat supplier, AmbassadorFrozen Foods, (Springburn), which, following a staffingreduction from 49 to 31, went into receivership in July2002.


On the up is Shettleston-based Freshbake Foods, thefrozen food manufacturer. Following a managementbuyout from parent Vlasic Foods International,(USA), in April 2001, the company has invested£200,000 in new machinery, increased sales by 30%and employment has gone up from 180 to 230 atOctober 2003. A buyout going the other way, theacquisition of Brake Brothers, in June 2002, by UScorporation Clayton, Dubilier and Rice, gives theAmerican group ownership of Brake’s subsidiary M & JSeafoods, the fish and seafood supplier at BalmoreRoad, (35 staff).

With the brewing industry still suffering from excesscapacity, falling volumes and reducing margins, highlevels of acquisition activity have been recently evident,with both Whitbread and Six Continents, (thecompany formerly known as Bass plc), focusing onhotel and leisure interests and disposing of brewinginterests to Belgian giant Interbrew, the world’s thirdlargest brewer.

Interbrew subsidiary Tennent Caledonian Breweries,(TCB), is a trading company of Bass Brewers andoperates from a number of sites in Scotland. The keyfacility is Wellpark Brewery at Duke Street in the EastEnd of the City, although the company also has itsmain Scottish distribution depot at Cambuslang. TheDuke Street operation produces brands includingTennents Lager, Velvet, Ember and Special, and hasrecently completed its transformation to low-costproduction of high volume beer and lager brewing, onthe back of a £20m investment in a new brewhouseand production line. Tennents has moved some of theUK production of Stella Artois and some of Interbrew’sexport beers to Wellpark. Employment at Duke Street isput at around 350, (against summer 2002 levels of 315,but a slight decrease on the 450 complement in post in2001). Interbrew is in a particularly strong position inScotland, with around 50% of the lager market andstrategic intentions to market Tennents more actively inEngland can only be good news for Wellpark.

Six Continents has failed to find a buyer for its Britvicsoft drinks business which, like brewing, is viewed as‘non-core’. With the Britvic marketing facility atQueenslie Industrial Estate having closed some threeyears ago, the remaining operation at CambuslangInvestment Park, Britvic Soft Drinks, which has seenworkforce levels fall from 122 to 50 in recent years,relocated In September 2002 out of the city toTannochside. Other recent closures at CambuslangInvestment Park include Natural Fruit and BeverageCompany with the loss of 30 staff in February 2002and Joseph Dunn with the net loss of 250 jobs to theCity. A G Barr, however the UK’s number one

independent soft drinks company, is headquartered inthe City at Gallowgate, where around 250 are employedin HQ/sales and distribution activities.

Meanwhile, in still highly-competitive marketconditions, the Scotch Whisky Association reporteda resilient performance in the face of tough globalconditions across 2002, and, over the first 6 months of2003, good value gains in key Asian markets, the EUand East Europe. In Glasgow, at the corporate level,many producers are refocusing on core brands. Inoverall terms however this sector continues to becharacterised by highly seasonal employment patterns.

Diageo, which was formed in December 1997 by the£23bn merger of Guinness and Grand Metropolitan,is the world’s leading spirits and wines company andhas brand leadership in whisky through JohnnieWalker and J & B. While Edinburgh is now theheadquarters of global operations, responsibility for thegroup’s whisky production in Scotland has beendecentralised to Glasgow. On the back of an £18minvestment programme, the Shieldhall bottling andpackaging plant has doubled capacity and becomeone of the largest spirits bottling centres in the world,capable of packaging 22 million cases a year. In May2002, however, the Shiedhall complex was part of theadministrative transfer of Braehead from Glasgow toRenfrewshire. The 500 or so jobs at Shieldhall are alsolost to Glasgow’s account. Diageo has also retained theexport and distribution operations at Dundas House(Port Dundas) as the company’s worldwide supplybase, with a current workforce of 250 in October 2003down from peak levels of around 350 a few years ago.A further 102 staff are employed in distillery operationsat Port Dundas together with 55 at DundashillCooperage.

A knock-on from the re-figuration of Diageo’s facilitiesin Scotland was that Bacardi, which acquiredDiageo’s Dewar whisky brand in March 1998,announced in 2000 an £8.5m investment in newbottling facilities at the former William Lawson unit,London Road. The facility now operates under the JohnDewar & Sons brand and employment is estimated ataround 170 in October 2003.

In another plus for Glasgow’s whisky industry, theEdrington Group, following the acquisition ofHighland Distilleries in October 1999, is now thesecond-largest independent whisky company in theworld. In April this year, Edrington sold theBunnahabhain and Black Bottle brands to BurnsStewart, and the Glengoyne and Langs brands to IanMacleod. These disposals will allow Edrington toconcentrate on its flagship brands—The Famous


Grouse, Cutty Sark, The Macallan and Highland Park.The company has consolidated blending and bottlingoperations and HQ functions for the group at the GreatWestern Road unit, Drumchapel. This facility, on theback of a £12.5m investment, has the capacity to tripleoutput to around 22 million cases per annum. Afurther £3m extension to the site now houses thegroup’s new headquarters, (in a relocation from WestNile Street), and the company has launched a newtelephone service centre. Current employment at theDrumchapel complex is put at around 500 in October2003 down slightly from the 590 earlier that year—although this may reflect seasonality of demand.

“Edrington Grouplaunches new £3million state-of-the-artbottling plant—theworld’s mosttechnologicallyadvanced Scotchwhisky bottling line atGreat Western Road,Drumchapel—the newfacility saves 50 jobs inthe company.”

Scotsman, 28 October 2003

One other recent change of ownership was the £250mmanagement buy-out of JBB Greater Europe by newventure Kyndal International, in October 2001. Themain backer in the deal was German banking groupWestLB. Kyndal took over the Whyte & Mackay andInvergordon business from the US-giant FortuneBrands subsidiary. In mid-2003, the companyrebranded as Whyte and Mackay and a £20mrestructuring is underway. Employment at theheadquarter facility in Dalmore House, 310 St VincentStreet is estimated to have been trimmed from 80 toaround 50 as at October 2003.

The spirits industry is very important to Glasgow, whichhas a sizeable representation in the industry, both indistilling, blending and bottling, and administrative andheadquarters facilities for a number of spiritoperations. In terms of value to the local economyGlasgow Exports indicates whisky, with an estimated£311m of overseas sales, is the City’s top export earner,accounting for some 36% all manufactured exports and21% of all Glasgow’s international trade.

Printing: Publishing: PackagingAs in other manufacturing industries, the push to bringin new technology and reduce costs has led tocontinued job losses in this sector in Glasgow, withemployment levels falling from 5,800 in 1991, to 4,500in 1995. Nonetheless, the mid to late 1990s sawsomething of a re-emergence of Glasgow as a majorpublishing and media City. In contrast to the positionaround a decade ago ago, when only three titles(“Glasgow Herald”, “Daily Record” and the“Evening Times”) were produced in the City, currentlysome seven dailies are published, (the foregoing plus“The Sun”, “Daily Star”, “Scottish Daily Mail”,“Scottish Daily Express” and the “Metro”).Coincident with this, employment increased to around4,900 by 2000. Since then, however, a downturn in thesector has brought levels to near the 4,500 mark again,with further falls likely.

Mirror Group Newspapers, (MGN), owners of thetitles Daily Record and Sunday Mail, looking to disposeof its newspaper interests, ‘merged’ its papers withregional company Trinity, to form Trinity Mirror inSeptember 1999. Shortly after, the Daily Record andSunday Mail moved its 500 staff along with magazinesubsidiary First Press Publishing (50 staff) into a new91,500 sq.ft. headquarters, in August 2000 at CentralQuay. Elsewhere, its trading division, Saltire Press,which also prints the Metro, houses some 250 staff atCardonald Park. In August 2003 however, Trinityannounced plans to cut some 550 jobs from itsoperations UK-wide—but declined to reveal how itsScottish operations would be affected.


“Further boost to theregeneration of theNorth Bank of theClyde in centralGlasgow—as secondphase of 500,000 sq.ft.,5,000-job businesscampus at CentralQuay gets underway.”


Media group SMG, (which owned interests includingHerald, Evening Times, Scottish Television andGrampian Television), has also reconfigured itsproperty portfolio within Glasgow. The companyrelocated its publishing staff from Albion Street, (CityCentre), to a 52,500 sq.ft. facility at 200 Renfield Street,(Cowcaddens), in August 2000. This brought thenewspaper staff together with the group’s existingScottish Television studio complex and headquarters,to create at the time the biggest multimedia centre inScotland. In May 2000, SMG employed over 1,300 staffin Glasgow. In autumn 2002, the printing process andassociated print staff moved from Albion Street to anew £40m, (100,000 sq.ft.), print centre at CambuslangInvestment Park. Co-incidentally, this facility also printsthe Scottish Daily Mail—which has some 50 editorialstaff at Renfield Street and 16 advertising staff at StVincent Street.

However, SMG, in an effort to reduce its £400m debt,in March 2003, sold its publishing assets, including theflagship Herald, to USA publisher Gannett in a £216mdeal. Gannett’s UK subsidiary Newsquest MediaGroup is already the largest regional publisher inEngland and Wales. It is understood some 680 staff atRenfield Street and around 100 staff at Cambuslangwere involved in the transfer while some 300 wereretained by SMG on the Scottish Television and otherbroadcasting operations.

Staying on the newspaper side of things, Northernand Shell, the owners of the “Express” and “Daily Star”titles, are represented in Glasgow through ExpressNewspapers at Park Circus place (30 staff). Both titlesare printed at D C Thomson’s print works at Port

Dundas (some 300 staff). Meanwhile bucking thetrend, Australian-owned News International —publishers of the ‘Sun’ — keeps building from strengthhaving seen employment levels at their Kinning Parkoperations increase from 230 in 2001 to 270 at October2003.

The UK broadcasting sector has seen an upsurge ofactivity this term with the proposed £4.5bn ‘merger’ ofCarlton and Granada to form ITV plc. Moreover theannouncement by the Government, in May 2002, ofnew media regulation, effectively sets out to make theUK one of the most liberal TV and radio markets in theworld while encouraging investment in the UK’s £12bnmedia industry from non-European sources. All in allthis paves the way for moves by such giants as USViacom and venture capital groups such as Apax.Ulster TV has already been linked with a multi-millionbreak-up bid for Glasgow’s SMG.

Meanwhile in February 2004, SMG confirmed plans tomove to Pacific Quay Media Park by 2006. This followsthe BBC confirming in September 2001 a £30 milliondevelopment on a 6.6-acre site, at Pacific Quay on thesouth side of the Clyde as its preferred location for anew Scottish digital headquarters. All 925 staff at BBCScotland (Television) and the 275 staff at BBC RadioScotland are expected to relocate from the current220,000 sq.ft. headquarters at Queen Margaret Drive,sometime in 2006, to the new 185,000 sq.ft. digitalbroadcasting complex. The move was, however,conditional on a road bridge being built to link the siteto the City Centre and the private sector building thepremises, which the BBC intend to lease back long-term. In January 2003, the Scottish Executiveapproved the new £8.5m Finnieston Bridge — althoughthis is currently awaiting the outcome of a legalobjection. SE Glasgow envisages the BBC will be theanchor tenant for a new media campus for animation,music production and other screen and sound-basedoperations which might create up to a further 2,000jobs. Channel 4 Nations and Regions Office is verysupportive of Pacific Quay and is also consideringrelocation from current premises in the city once thedevelopment is complete. The scheme has supportfrom Scottish Enterprise under the creative industries£25m cluster programme. Elsewhere in the city, CapitaBusiness Services operate the BBC audience linescall centre at Breckenridge House, Sauchiehall Street(133 staff).


“BBC’s new £30 millionheadquarters to be thecentrepiece of a mediacampus at PacificQuay—2,000 furtherjobs expected ascreative/mediacompanies clusteraround theheadquarters.”

Scotsman, 22 September 2000

A net downturn in fortunes has been evident recentlywithin the packaging sector.

In October 2003, the MacFarlane Group, theGlasgow-based packaging group, announced the saleof its loss-making northern packaging division to DSSmith — effectively ending its manufacturingoperations in Glasgow. On the back of difficult tradingconditions, employment at the Govan corrugatedcarboard packaging facility had been reduced over thepast two years from 160 in 2001 to October 2003 levelsof 68. By January 2004, DS Smith had consolidated allwork at its packaging operation in Dumbarton with theloss of the remaining 68 jobs. The MacFarlane Groupalso currently employs 12 staff at its plc headquartersat Newton Place, Charing Cross.

MacFarlane is not alone in finding life hard in thissector. Following the £195m acquisition, in December1999, by Swedish Group SCA of the Rexam Group’scorrugated packaging division, Rexam’s subsidiaryRexam Cartons and Print Scotland, (RiverfordRoad, Pollokshaws), fell under the SCA brand. InJanuary 2000, the carton side of the business wasacquired by Fields and the work transferred to EastKilbride. Further cutbacks followed across 2001 and2002. In consequence, employment at the plant hasfallen from 350 to 150, as at March 2003.

In a similar vein, other firms have experienced difficultyover the past three years. Jarvis Porter, (the labelsand packaging manufacturer), having failed to find abuyer, announced a restructuring programme in itsdrinks and beverages division, because of poor trading

conditions. In Glasgow, the group’s ConventionalLabels Division facility at Clydeholm Road, whichproduced spirits labels for most of the major whiskyproducers, (including Diageo), closed with the loss of105 jobs. A further 53 packaging jobs were lost to theCity in 2001, when Plysu, (plastic bottle makers to thedairy industry), closed its Darnley plant and transferredwork to Durham. Meanwhile, Clyde Polythene,Lawmoor Street, ceased manufacturing in December2000 with the loss of 30 jobs, and Qualpac Services,the Drumchapel packaging company, went intoadministrative receivership in January 2002 with theloss of an estimated 30 jobs.

However, some plus points have been evident. PrintersJohn Watson, (Kyle Street), completed a £1.2mexpansion to undertake the design and production ofhigh quality whisky labels. Staff have been recruited tosupport this investment, bringing the total workforce to75 compared to 50 in 1999. Across the river, StadiumPacking Services, (SPS), at Woodville Street, Ibrox,acquired a further 10,000 sq.ft. of manufacturing space,adjacent to existing facilities, and raised staffing levelsfrom 14 to 25, In addition, in 2001, on the back of a£12m investment, Linpac launched Britain’s firstcorrugated box and foam packaging plant at itsEasterhouse facility. The investment created anadditional 40 jobs and the workforce at October 2003stands at 150.

Clothing and TextilesThe current difficulties of the UK textiles and clothingsector, which has been in continuous decline over thepast 20 years, has been much publicised. With bothclothing retailers and clothing producers increasinglysourcing stock and garments from low-cost overseascountries, domestic production facilities, particularlythose characterised by low productivity levels, arebeing hard hit. Short-term, there is little prospect of anyrevival in the main markets and most major companiesare now focusing on improvements to productivity,quality and supply chain management, while managingthe progressive shift of production to lower costlocations.

Up until autumn 1999, Glasgow escaped most of thetroubles, with the sector in the City having previouslyundergone its own configuration over the early 1990s.Recently however, Glasgow has again been very muchcaught up in the ‘clothing crisis’. Over the periodDecember 1999 to July 2002, some 740 clothing sectorjobs were lost. Baird Clothing closed its Polmadiefacility and Springburn units in 2000 with a 330 jobloss. Other knocks have included the closure ofQueenslie-based jeans factory, Patrol(Manufacturing) Ltd, (in December 1999), with the


loss of 50 jobs; the liquidation (in February 2000) ofCampsie Knitwear, Carntyne with the loss of 280jobs, the closure of Gelfer, (Bridgeton), in January2001, with a job loss of 88 and, in June 2001, theinsolvency of flag maker McSymon & Potter, (18jobs). Last term, in July 2002, bed and upholsterymanufacturer, Airsprung Furniture, announced theclosure of its Queenslie factory with the loss of 103jobs.

This term, the major announcement was the closure ofSunderland of Scotland, golf rainwear and outerwearproduction plant at Trongate in July 2003. Work hasbeen transferred to China. In December 2002 thefacility had a workforce of some 175. Sunderlandhowever still retains a presence in the city at their WestNile Street head office although here too employmenthas fallen back from 25 to 15. Meanwhile employmentat Jacobs & Turner (which trades as TrespassInternational) has fallen slightly over the past twoyears from 75 in 2000 to around 60. The companyoperates a sportswear office/warehouse/designcomplex at Vermont Street, Kinning Park.

However, while the high-volume producers have all butwithdrawn operations from the City, there has been asteady build-up of small design-led, or nicheproducers, in specialised markets.

The upshot has been a reconfiguration of the structureof the sector within Glasgow. In 1993, some 80companies were operating with a total employment of4,300, while current estimates indicate some 100companies are now established, with an associatedemployment count of around 1,500.

Finance and Business ServicesAcross the 90s, the European finance and business

services sector emerged as the focus for strong activity.Leading players responded to the increasingly global orcross-border activities of customers, newly-developingEuro-capital and money markets and the growingemphasis on shareholder values, all of which exertedstrong competitive pressures. In addition, financial andcommercial institutions were having to adapt to theavailability of the new multi-delivery mechanisms oftelephone, TV, e-commerce and smart phonetransactions, in a bid to create a new presence andcapture new clients and new markets. The impetus ofthese trends however has been dented, over the pastthree years, which have seen weakened stock markets,a pull back in corporate revenues and funding levels(with IT budgets) almost universally frozen, or cut backsharply.

The back end of 2003 however delivered a cautiousreturn to market investment with a shift back to suchfundamentals as earnings, profit projections and thestrength or non-strength of economies. Although thefundamentals are in place for a new growth round,many corporates are reluctant to commit to majorinvestment spending. It is noticeable however thatseveral continue to take the easier bolt-on growthoptions of merger and acquisition and therecomposition of structures through internationaloutsourcing—largely in an effort to cut costs.

While, Datamonitor and Keynote both envisage theUK contact centre outsourcing industry will continueexpanding over the short term, Forrester Researchpredicts that India, China, Vietnam, Malaysia,Philippines, South Africa and Uruguay are among aclutch of countries likely, over the next 10 years, tobecome leading recipients for back office functionssuch as data analysis, call centres, accounting andsoftware maintenance. Deloitte Consulting hasestimated that 2 million jobs will be outsourced fromWestern economies to India alone by 2008 whileAccenture has forecast that 70,000 British insurancejobs will have moved to India by the turn of the nextdecade. Trade Union Amicus has estimated that up to20,000 Scottish jobs will be farmed out to India by2008. Financial service companies with strong Glasgowrepresentation already acknowledging this trendinclude Aviva, Royal & Sun Alliance, Lloyds TSB,Barclays, AXA and Abbey.

New groupings and consolidations such asBNP/Paribas; Credit Suisse/First Boston/DLJ; SEBaken/Trygg Hansa; AXA/UAP; Hambros/SocieteGenerale; Firstar/US Bancorp; Aegon/TransAmerica; JP Morgan/Chase Manhattan: andmore recently HSBC/CCF/Household Internationaland Bank of America/FleetBoston have aggressivelyredefined the structure of pan-European insurance andfund management. Industry analysts expect more tofollow, as insurers move into traditional bankingactivities and vice versa, and as world players, such asAIG, (USA), Allianz, (Germany), Aegon, (Netherlands),and AXA, (France), position themselves to provideworldwide ‘on-line brands’, which can easily reachglobal markets through electronic commerce. The driveto acquire global scale is also seen as a means todeliver returns from the significant investments madein technology infrastructure. Interestingly despiteEuropean Parliament agreement on the marketing ofinvestment funds, pensions and credit cards betweenEU member countries and directives aimed at resolvingconcerns at high cross-border bank charges there is asyet no genuine Pan-European market for financial


services and banks, (particularly UK banks), may beslow to change away from highly-profitable traditionalpayment systems.

In the UK, almost every form of financial serviceactivity—banks, finance houses, building societies,general and life insurance, brokers, fund managers—has been affected by such developments. AnalystsSalmon Smith Barney estimated that in 2000, thetransaction cost in a UK branch was 67.5p compared to37p by telephone and 7.5p by internet. Typically, newformats have been being introduced, with ‘lead players’partnership tie-ups with call centre operators,mortgage processors, information-technologyproviders, marketing agencies and general insurers.Finding their role as traditional distributors of financialservices severely cut down by new players, many of themajor retail banks have returned to the market through‘stealth’ or co-branded initiatives by lining up withmajor consumer brands. IBM Business Consultingreported in November 2003 that supermarkets such asSainsbury’s, Tesco and Asda which operate financialservices on a model with 25% less cost (that is, offermore competitive products) than traditional bankingcompanies are set to take on 14.4 million customersover the next 5 years and change yet again the face ofbanking.

Most visibly, as low cost business models wereimplemented, accommodation requirements changed,with disposals of non-essential property, the taking-outof excess high street presence, a move to low-cost‘back-office’ or ‘call centre’ formats and the acquisitionof accommodation on flexible, modern lease terms.Looking ahead, the trend to offshoring—mentionedpreviously—is a major unknown. On the plus side forGlasgow, the city is currently a lower-cost location thanothers in the UK and has a fairly high skilled workforce.Moreover as Grimley notes, an emerging trend inGlasgow is that out-of-city-centre space is stronglyplaced to compete for business services, includingback-office functions, software related services anddata processing as companies introduce lower costbases. Labour requirements have moved from full-timestaff to lower-cost part-time workers on one hand, tothe recruitment of information and technologyspecialists on the other.

These developments follow the move towardsoutsourcing office and ancillary services to specialistcompanies. Metrica reports that 90% of financialcompanies in the UK already outsource to third-partyproviders and the planned increase in spend in thisarea is running at around +25% per year. Theoutsourcing market has matured particularly in

Glasgow, from its early focus on ‘cleaning’, ‘security’,‘catering’ and ‘building maintenance’, to include legal,accounting, media, research, recruitment and a wholerange of other service options. According to NOP, asmany as 89% of companies—both in public and privatesectors—now contract out some or all of their officesupport services.

That said, the recent assessments for the UK financialsector do not make positive reading. In April 2003, theCBI and PwC reported that almost 33% of Britain’sfinancial services companies had cut jobs in the firstthree months of 2003, on the back of global tensions,falling business levels and declining profitability. Thesame month, Michael Page International confirmedstagnation, job losses and hiring freezes in UK financialservices recruitment. Commenting on the Scottishscene, CBI Scotland suggested that, while notimmune to the general UK problems of share tradingdownturn, as well as lack of mergers and acquisitionactivity, Scotland was not suffering to the same extentand was well-placed to pick up back office and callcentre jobs that may be displaced from other parts ofthe UK—a view echoed by Search Consultancy,(Scotland’s largest independent recruitment firm).

This time round, despite improving sentiment few majorplayers are expected to undertake large-scalerecruitment in 2004 beyond replacing natural turnover.Scottish Financial Enterprise in October 2003 wasmindful of the emerging threat of outsoucing functionsand moving financial services offshore and,indicated the future offering from Scotland would be inhigh value, competitive services. While, in November2003, recruiters Melville Craig indicated that a pick-up in a full range of banking vacancies from back-office staff to financial services was emerging inScotland, in January 2004, executive search firmFinlayson Wagner Black reported little indication ofheavy demand for senior new teams in the sector—aview shared by Fletcher Jones.

Insignia Richard Ellis reported in April 2003 that,reflecting difficult times, demand from the financial andinsurance sectors slowed, to account for only 18% ofoffice take-up in Glasgow across 2002. BusinessServices continued however to top the demand profile,with around 31% of take-up.

This notwithstanding, at the local level, thedevelopment of financial and business services hasbeen one of the outstanding features of the Glasgoweconomy since the mid-1990s. Employee job levelsconfirm Glasgow has powered ahead and emerged asone of the leading financial and business servicescentres in the UK. City jobs in this sector are estimated


to have grown from 68,000 in 1996 to peak at 92,500 in2001 before dropping back to 89,400 in 2002.

SEG’s Business Location Services reported in 2002that 750 financial services companies had a base inGlasgow with several of the world’s leading financialcompanies having a major presence including MorganStanley, JP Morgan Chase, National AustraliaBank, esure, Royal Bank of Scotland, Lloyds TSB,Britannic Asset Management, NFU Mutual, Abbey,and Barclays Stockbrokers. SEG indicated the sectorin 2001 accounted for some 31,000 jobs — nearly 1 in11 of all employment in the city with an overall 34%growth in employment in the city’s financial sector over1996—2001.

What became particularly evident from the string ofcorporate incomers to Glasgow over the 1996 to2000/01 period was that the client base being servedwas increasingly of a national or pan-European focus —a factor which lessens the vulnerability of the City to aneconomic downturn in any one market.

“International realestate consultants ATISReal Weatherallsreports a particulardemand from thesoftware, IT, call centreand financial sectorsfor high quality officespace in the centre ofGlasgow . . . Glasgowlooks set to become anincreasingly attractiveoption for companiesseeking a presence inScotland’’

Business & Finance, December 2001

On the back of this, August 2001 saw theannouncement of a £300m scheme to establish aGlasgow International Financial Service District(with a target of 20,000 net new jobs by 2011) betweenthe existing traditional St Vincent Street business areaand the emerging Broomielaw district along the northbank of the Clyde. BT has kick-started the project byannouncing it will invest up to £50m in the area, from2001 to 2006, in high-speed broadband cableinfrastructure, tailored to the financial sector. A 2001report from PricewaterhouseCoopers (PcW),(commissioned by Locate in Scotland), identified 130top financial companies worldwide seeking newlocations around the globe and efforts are being madeto attract these to Glasgow. Promotional campaigns willtarget London, the US and Europe, as major financialinstitutions are expected to decentralise more functions‘post September 11’. In November 2002, a high level ofinterest was shown in Glasgow’s financial districtduring a meeting at New York Stock Exchange, withcompanies such as Goldman Sachs, LehmanBrothers, ING Barings and Bear Stearns reportedlylooking for opportunities to expand. In November 2003however, PcW and Grant Thornton reiterated atougher banking environment was likely to continuethrough 2004.

“£300m plan to turnClydeside into worldfinancial centre willkeep Glasgow in thepremier division ofEuropean financialsuccess.”

Evening Times, 13 August 2001


“High level of interestshown in Glasgow’sfinancial district duringmeeting at New YorkStock Exchange withcompanies such asGoldman Sachs,Lehman Brothers, INGBarings and BearStearns looking foropportunities toexpand”.

Business AM, 26 November 2002

As mentioned across the mid-late 90’s, circumstances‘fell right’ for Glasgow’s financial corporate portfolio,with high levels of corporate activity evident. One of thecity’s star performers has been the Royal Bank ofScotland, (RBS), which has significantly boosted itsprofile, through the acquisitions of NationalWestminster, First Active, Churchill Insurance, andCitizens Bank into the fifth largest bank in the world.RBS has continually underlined its commitment to theCity in recent years by taking 1,860 sq m at Tay House,(Charing Cross), for bank processing; opened aGlasgow Business Centre, (for corporate banking), atBath Street and established a new retail branch inGordon Street. Its subsidiary, Direct Line, isrepresented by its fast-growing DL FinancialServices, (telesales division), now with 560 staff at StVincent Street and its even faster-growing motor andhome insurance facility, (Cadogan Street; 900 staff inMay 2001, 1,200 staff at April 2003). This gives theDirect Line ‘brand’ an estimated workforce of around1,800 in the City. Another RBS venture, the verysuccessful Tesco Bank, (Tesco Bank PersonalFinance), has seen a 450-strong call centre workforceestablished at George House, George Square, over thepast four years. All of which makes RBS, whichincidentally in 2002 became the first truly Scottishcompany to achieve £1bn pre-tax profits, one ofGlasgow’s largest private employers, with some 3,000

staff within the City. Interestingly in March 2001, RBS,(through Topland property investment company),increased its representation in the City by the £312macquisition of 11 Hilton Group hotels nationwide.Ownership of the Glasgow Hilton, (William Street),and Grosvenor Glasgow, (Grosvenor Terrace), is nowunder the RBS portfolio. The latest acquisition by RBScame in June 2003 with the £1.1bn purchase of CreditSuisse subsidiary, Churchill Insurance—a move whicheffectively makes RBS the third largest general insurerin the UK behind Aviva and Royal & Sun Alliance.Churchill currently operates a direct car and homeinsurance facility in Glasgow at St Vincent Street with a400 strong staffing complement. Substantial costsaving are expected through the merging of duplicateIT and claims processing functions between Direct andChurchill. All in all however this consolidates RBS asone of Glasgow’s largest private employers, with some3,000 staff within the City

Another 1990s star was Abbey National, (St VincentStreet). The former building society, which converted inthe early 1990s to become the UK’s sixth largest bankand second biggest mortgage lender, has increasedemployment in its Glasgow divisions from 670 in 1991to its current 3,000 level, through the build-up ofoperations such as Scottish Mutual Assurance,National and Provincial, Scottish Provident andAbbey National Asset Managers at 301 St VincentStreet (2,500 jobs) and Abbey National Direct atElphinstone House, West Regent Street (around 500jobs). However, on the back of difficult trading, thecompany is undertaking a three year major root-and-branch restructuring. This has involved rebrandingitself as ‘Abbey’: disposing of its corporate bankingand private equity operations: outsourcing IToperations, and reducing staff engaged in back officework, such as administration, and processing on a UK-wide basis basis, in an dramatic effort to reduce costs.This term’s developments for Glasgow have been mixedwith Abbey announcing in July 2003 plans to recruitsome 80 financial services professionals and, inOctober, indicating that around 100 data input jobsfrom Edinburgh and Glasgow would be transferred toIndia. In addition, in January this year Abbeyannounced it planned to close its Edinburgh ScottishProvident insurance offices by the end of 2004 andtransfer 900 customer-processing jobs to Glasgow.Moreover also in January, Abbey announced it hadoutsourced its fund management arm Glasgow AssetManagers to US firm State Street with the loss of 60management jobs and that the jobs of the remaining113 processing and administration staff in that divisionwould be under review. However, the final outcome of


headcount restructuring on Glasgow depends onexactly how many transfer and whether cuts will bemade in other areas of life operations. Abbey has alsowarned that as it seeks to reduce its 40 UK officelocations to 5 key facilities at Glasgow, Belfast,Bradford, Milton Keynes and Sheffield further‘offshoring’ of its UK back office functions to cheaperlabour markets such as India might follow.

“Abbey confirms thetransfer of 700 jobsfrom its ScottishProvident insurancebusiness and 200 otherjobs to Glasgow by theend of 2004 as part ofa restructure of its UKoperations to five keylocations.”

Scotsman, 15 January 2004

Lloyds TSB, (the UK’s fourth biggest bank), alsoembraced the offshoring trend by announcing inOctober 2003 that — following a review of its 6 callcenters in the UK — its Newcastle faculty would beclosed by the end of 2004 and 750 full-time jobstransferred to India. Up to a further 500 jobs from otherUK operations are expected to follow at a later date. Atthe local level, Lloyds TSB Scotland focuses its Westof Scotland activities around 2 Atlantic Quay in theBroomielaw, which houses the group’s £7m flagship‘Phonebank’ telebanking centre. where employmenthas remained steady at around 500 over the past 6years. On a slightly less positive note, Lloydsannounced, in September 2000, the closure of its homeloans processing centre at 1 Atlantic Quay, with 238staff affected and, the Lloyds TSB customer serviceadministration centre at Brown Street has seenemployment levels pared back from 300 in February2002 to 210 at April 2003.

On the plus side, Lloyds TSB acquired the Goldfishcredit card and personal loan business from Centricafor £112.5m in September 2003. Goldfish, (formerly

30% owned by Lloyds TSB and 70% by Centrica),launched a 20,000 sq.ft. customer contact centre at 1Atlantic Quay, in July 2002 with a target employment of200. Goldfish has however surpassed expectations andemployment levels stood at 300 in October 2003.Evolvebank, another subsidiary of Lloyds TSB, suppliesthe banking services to Goldfish from its 30 strongcomplement operations at Atlantic Quay.

“Goldfish to create 200new call centre jobs inGlasgow’s internationalfinancial servicesdistrict at AtlanticQuay.’’

Scotsman, 11 April 2002

The Clydesdale Bank is the only clearing bank in theUK with a head office in Glasgow. With the Scottishbanking market for business and personal customersnow extremely competitive, restructuring plansinvolving 1,200 job losses UK-wide were announced byits parent National Australia Bank, (NAB), across2002 and the decision taken to integrate the officefunctions of its two subsidiaries Clydesdale Bank andYorkshire Banks. In addition, up to a further 150 NABjobs in Glasgow, in the Clydesdale’s National CustodianServices Unit, were under review following the loss of amajor client in December 2002. NAB (Europe)Services has an establishment of around 100 at theGuild Hall, (which is the information technologydepartment for the Clydesdale Bank, Yorkshire Bankand the Northern Bank of Ireland), a retail wholesalebanking operation at Nelson Mandela Place, (70 staff),and a financial shared services facility at 225 BathStreet, (115 staff). Meanwhile, the Clydesdale Bank’smajor presence in the City is at St Vincent Place,(corporate headquarters, with an estimated 900 staff atNovember 2002); Wilson Street (Trust and PortfolioManagement, 70 staff), plus a further 280 at the GuildHall, Queen Street. This gives NAB and Clydesdale atotal representation of around 1,500 staff at theselocations in Glasgow. In November 2003, NABannounced its intention to merge Clydesdale andYorkshire operations during 2004 with Clydesdaleabolishing processing jobs but creating additionalcustomer-facing jobs.


“Barclays—Britain’s thirdbiggest bank—cementsits position in Glasgowthrough taking on theEuropean arm of USAonline broker CharlesSchwab and the £210macquisition of SouthAfrican owned privateclient fund managerGerrard.’’

Herald, 28 October 2003

Barclays Bank, Britain’s third largest bank (St VincentStreet), is yet another major player, which hasintensified its Glasgow presence dramatically over thepast decade. Following the lease of 30,000 sq.ft. in TayHouse, (Charing Cross), in 1996 for its BarclayStockbrokers/Barclays Investment Managementsubsidiary (Britain’s biggest online sharedealer), afurther 12,600 sq.ft. was taken in July 1997 toaccommodate expansion in its stockbroking activities.From a mid-90s employment of 300, staffing levels roseto 700 at April 2002 but fell back to 600 in April 2003.Since then further boosts by, among other things,taking on execution stockbroking for the European armof online broker Charles Schwab (which Barclay’sbought in January 2003) raised the complement instockbroking and investment activities at Tay House toaround 750 by Autumn 2003. An additional 100 jobswill be added in 2004. In a further move firming itspresence in Glasgow, Barclays acquired private clientfund manager/stockbroker Gerrard in a £210m deal inOctober 2003. Gerrard has two offices in Glasgow — astockbroking facility at St Vincent Street (261 staff) anda private client fund management business at QueenStreet (185 staff). Barclays also has significantrepresentation elsewhere in Glasgow. In 2000, Barclaysadded to its business interests, when it sub-contracteda 5 year contract for back-office processing toSiemens Business Services, (Cowglen), in a movewhich at that time safeguarded 400 jobs at that facility.By 2002 employment stood at around 550 at Barclays

Cowglen account processing division. This hasincreased to around 700 full-time and agency staff asat October 2003. However in November 2003, Barclaysindicated it was looking at pilot proposals to transferaround 100 data processing jobs from Glasgow to Indiawith Siemens asked to provide the training in India.Elsewhere, Barclays has other business interests inGlasgow. In January 2001, Carnegie, (owned 90% byBarclays Private Equity), acquired ClydesdaleFinancial Services, (the Pollokshields-basedconsumer credit company), for £89.4m, with plans todouble the business at the Academy Park, facility andincrease the staff complement from 200 to 300 by 2004,through diversification and going online. Whileemployment fell back to around 170 at May 2002, thetakeover by Barclaycard in 2003 has brought newbusiness growth with staffing as at November 2003posted at 227. Barclaycard has set new targets for thecompany with the launch of a new motor financedivision and expect to recruit a further 250 staff overthe next 18 months. All in all, Barclays is one ofGlasgow’s most successful growth corporates—with 45staff in 1986 rising to a current employmentrepresentation of around 2,066.

“Clydesdale FinancialServices(Pollokshields),recently acquired byBarclaycard, in line forextensive expansionwith the company setto double in size from250 employees to 500over the next 18months’’

Herald, 21 November 2003

Another credit card newcomer was announced inDecember 2001 — Morgan Stanley, the Americanfinancial services giant. The company leased 52,000sq.ft. at the Cerium building, Douglas Street, to housean extension of its Cumbernauld credit card operation


and as a support centre for other UK-wide activities.Morgan Stanley launched in mid-2002 with a staff of220 and set a target of 450 jobs over the next threeyears. The company is on course to deliver with acomplement in place at October 2003 of 290. Thefacility complements the corporate’s sister operationMorgan Stanley Quilter, the private client division ofthe investment bank, in West Nile Street.

“Another significant steptowards the creation ofa vibrant financialservices district inGlasgow as investmentbanking group MorganStanley announcesexpansion plans.’’

Business AM, 14 December 2001

Yet another fast growing company in this sector is theHalifax Bank of Scotland (HBoS) Group which hasstrengthened its commitment to Glasgow both throughits Bank of Scotland operations and online telephone,motor and home insurance company esure. Followinga sticky period in 2000/01 when overall staffing levelsin its Bank of Scotland Glasgow divisions fell backfrom 900 to 800, the bank has recomposed over2002/03 with employment at its divisional office (WestCampbell Street) growing from 500 to 586 on the backof the launch of a direct business banking facility: theopening of a new corporate banking facility at 123 StVincent Street (95 staff): while maintaining staffinglevels at around 300 at its regional transactionprocessing facility in Queen Street. Meanwhile, internetand telephone insurer esure is one of the successes ofScotland’s financial sector. Launched in Glasgow inJuly 2001, with a staffing complement of 140, fromtemporary premises at Callpoint Europe’s VenlayBuilding, 349 Bath Street, the company relocated tothe Equinox building, Cadogan Street in May 2002 withsome 220 staff in post and set a target staffing level of700 within three years. However, boosted by theaddition of Sainsbury’s Bank Car Insurance to itsHalifax Car Insurance and esure-branded generalinsurance portfolio, this target was met in October 2003when employment rose to 750. The company is now

one of the fastest growing general insurancecompanies in the UK and expects to recruit a further250 people in Glasgow by March 2004.

“esure the telephoneand internet arm ofbanking giant HBoSexpects its Glasgowworkforce to pass1,000 by March 2004—just two years aftersetting up in the city.”

Herald, 22 September 2003

Another highlight in the banking arena has been thearrival of New York-based investment and bankingfirm, JP Morgan. The company launched its £7.3msoftware applications development centre at AlhambraHouse, Waterloo Street in March 2000. The centre,which supports the bank’s European financial servicesoperation, recruited a complement of 250 over theperiod to October 2000. The company’s Europeanexpansion plans have continued, following the $34bntake-over in September 2000 by fellow US bank,Chase Manhattan. In April 2003, JP Morganannounced that up to a further 150 new jobs forsoftware engineers would be created on the back ofexpansion plans and a £1.8m regional selectiveassistance grant from the Scottish Executive. InJanuary 2004, JP announced it planned a $60bnmerger with US retail bank, Bank One — a transactionwhich will consolidate JP Morgan's position as theworld's second biggest bank after Citigroup,


“JP Morgan Chasereinforces commitmentto Glasgow—bank nowexpects to employ 400staff at its EuropeanTechnology Centre inAlhambra House by theend of 2003 againstoriginal target of 325by 2005.”

Sunday Herald, 24 November 2002

This term, blue chip banker Bradford & Bingleyincreased its representation in Glasgow through theacquisition of Park Circus based financial advisorAitchison & Colegrave. In October 2003 the companywas rebranded as Charcol Aitchison & Colegraveand the 40 staff transferred over.

NFU Mutual Group, the tenth-largest insurancecompany in the UK, opened a £3.7m sales andcustomer call centre at the Guild Hall, Queen Street, inApril 2000. The operation, known as NFU MutualDirect, has now built up from around 130 jobs in April2002 to 150 at October 2003. NFU Mutual Insurancealso has representation in the City at West CampbellStreet, where around 60 are currently employed,compared to 80 a year ago.

“NFU Mutual Directlaunches new £3.7mcall centre sales officein Glasgow . . . creates60 jobs with promise ofa further jobs over thenext three years.”

Herald, 14 April 2000

Meanwhile fund management operations are goingthrough a tough time in Glasgow. Abbey’s plans tooutsource its £28bn funds division to State Street havealready been mentioned. In January 2004, ScottishFriendly also announced it would outsource its £350mfund management operation. Staffing at ScottishFriendly’s Blythswood Square offices which has fallenfrom 90 in May 2000 to around 70 at present looks setto fall by a further 20 over the short term.

The impact of weak markets on revenues has alsocaught up with Bothwell Street-based investmentspecialist Britannia Asset Management, (BAM). InSeptember 1999, Britannic Group acquired a 75%stake in BAM and doubled its funds undermanagement. The operation was renamed BritannicAsset Management and, to handle the influx offunds, employment increased from 180 to a level of325. However, employment has fallen back to 240, as atApril 2003. Britannic’s sister operation at BothwellStreet, Alba Life, has also fallen victim to tough marketconditions. This operation employed 570 staff in 2000and 450 in December 2001. Restructuring and thetransfer of some operations to Birmingham has led tofurther reductions, with workforce levels in this side ofthe business being put at around 200 (April 2003). Albanow only looks after closed fund life and pensionproducts while all Britannic Group’s new sales aredirected through BAM.

In October 2000, Aberdeen Asset Managementacquired West Nile Street-based fund manager MurrayJohnstone for £150m. Aberdeen subsequentlycentralised all its Glasgow operations, (AberdeenAsset Management, (Beacon Building), the formerClydesdale Bank Private Equity and MurrayJohnstone), into new offices at 123 St Vincent Street,trading as Aberdeen Property investors andAberdeen Asset Managers. However, the totalworkforce was cut back from 198, to around 80 staff. Afurther 60 staff were however transferred to CogentInvestment Operations, West Nile Street, (thenowned by Australian life office AMP) which wascontracted to undertake Aberdeen’s administrative andback-office work. Aberdeen’s plans to centralise allback-office functions from London to Glasgow, (whichinvolved a potential additional gain to Glasgow of 90jobs) appears however to have been shelved. Moreoverthis term, Aberdeen has been reported as transferringfunds from Glasgow to Edinburgh following itsacquisition of Edinburgh Fund Managers in 2003. InMay 2002, however, Cogent was acquired by Frenchbank BNP Paribas, (the Eurozone’s biggest bank bymarket capitalisation), for some £227m — a movewhich brought BNP into the UK asset administration


market, (and Glasgow), for the first time. The officenow trades as BNP Securities Services and staffinghas been maintained at around 60 (as at July 2003).

Elsewhere, the consensus is that, with UK domesticinsurers becoming increasingly nervous about losingmarket share to banks, supermarkets and foreign-owned incomers, this sector is braced for furtherrounds of rationalisation, (through acquisition orotherwise) and that the insurance industry willconcentrate down to a few major players.

Royal & Sun Alliance, (the UK’s second largestinsurance company through the merger of SunAlliance and Royal Insurance), is currentlyundertaking a round of ‘slash and sell’ restructuring tocover liabilities and strengthen its capital base and aprogramme of relocation, retirement and redundancy tolower its headcount. In 2000, Royal and Sun Alliancerelocated headquarter functions out of Glasgow andsold their part of owner-occupied offices at St VincentStreet. In October 2002, the company announced 130call centre jobs were to be lost in Glasgow andsubsequently vacated 206 St Vincent Street. Otherfunctions have been transferred to Halifax. Allremaining staff (estimated at around 400) have nowbeen consolidated at 200 St Vincent Street. In1999/2000 R & SA had an estimated 780 staff inGlasgow.

Following the 1998 merger of BAT Industries’insurance arm, (British American FinancialServices), with Swiss insurers, Zurich, to form AlliedZurich, Glasgow had a string of operations under onecompany—Eagle Star Insurance and Eagle Star Life,(Bothwell Street), Zurich Insurance and Zurich Life,(West Regent Street), and Zurich Municipal, (at DeltaHouse, West Nile Street). All these operations weresubsequently re-branded under Zurich FinancialServices in the Eagle Building, Bothwell Street, with atotal payroll of around 250. In September 2002, thecompany, (Europe’s third-largest insurer), announcedits intention to pull out of non-core businesses and a2,000-job cut across UK operations. In November 2003,Zurich sold its UK Life business to Swiss Re. Over thepast year, employment at Bothwell Street has beenpared back to 160 (at November 2003) while, of theother companies under the Zurich umbrella in the City,staffing levels at Zurich IFA (West George Street), hasfallen from 30 to 10 while the complement at ZurichAdvice Network/Allied Dunbar (Bath Street), hasbeen maintained at around 75 staff.

Coincidentally, the merger of General Accident withCommercial Union, to form single company, CGU, inthe late 1990s, resulted in a similar multi-location

situation, involving CU’s key operations at 124 StVincent Street, (300 jobs), and 116 Waterloo Street,(250 staff), and GA’s facilities at 220 St Vincent Street,(102 staff). CGU’s £20bn merger with Norwich Union,(NU), to form CGNU, the UK’s biggest insurer, inFebruary 2000, compounded the situation, with NU Life& Pensions and NU Insurance having around 100staff at 139 West Regent Street. Significantreconfiguration has taken place since then, with aname change to Aviva and all products sold in the UKcoming under the Norwich Union brand. In July 2003,NU announced 910 redundancies across its UK offices.Current operations in Glasgow are now centred at 116Waterloo Street (345 staff), and 124 St Vincent Street(240 staff) compared the estimated 800 in post some 3years ago. That said, in December 2003, Norwich Unionannounced it would close 12 operations across the UKover the course of 2004 and move 2,350 jobs to India.Current indications suggest Glasgow operations maynot be affected. Aviva however has not ruled outshifting more jobs to India at a later date.

Meanwhile, following the £3.3bn acquisition, in 1999,by leading French insurer, AXA, of composite UKinsurer Guardian Royal Exchange, AXA hasreconfigured its Glasgow presence. AXA Insuranceoperations are now centred at Atlantic Quay, (250staff), with Guardian Royal facilities at Bothwell Streetand AXA PPP Healthcare at Claremont Terraceclosed and staff transferred over. AXA is alsorepresented in the City by AXA Sun Life Services (22staff) at 285 Bath Street. In May 2002, AXA announcedthat 700 jobs were to be lost from its UK operations.Glasgow facilities, however, remained virtuallyunchanged. In January this year a furtherannouncement from AXA indicated plans to cut 700staff UK-wide and switch jobs to India and althoughfinal plans had not yet been made the Glasgowworkforce could be affected.

In more positive territory, Standard Life’s DirectCustomer division relocated its 105 staff from 2 WestRegent Street to new central offices at 180 WestGeorge Street, in an expansion move in spring 2001.Further recruitment boosted Standard‘s workforce to210 in April 2003. In August 2003, the life assurancegiant announced that it planned to relocate theprocessing of new business sales from its 23 UKregional centers to 6 central offices. This might haveinvolved more jobs coming to Glasgow over theNovember 2003 to October 2004 period but is nowdependant upon the January 2004 announcement thatStandard is to undertake a review of its corporatestructure, and the FSA commissioned review intoStandard’s balance sheet calculations.


Stockbroker Aitken Campbell, a subsidiary of theToronto Dominion Bank, was on the move this termcompleting the relocation of its 45 strong workforcefrom Bothwell Street to new premises at Central Quayin August 2003. Meanwhile in June 2003, mortgagefirm Opus Mortgages, Union Street, announced a 40strong recruitment campaign which will effectivelydouble the company’s staffing complement to 80.Another newcomer, the Higham Group has opened aGlasgow office (20 staff) in West George Street. Thecompany, which provides a pension review service tosuch blue chip companies as BAE Systems, Legal &General, and Lloyds TSB, expects to double itsstaffing over the next 12 months. Other newcomersannounced this term include Mortgages plc (9,450 sqft, at Spectrum Building, Blythswood Street) whichreported in with a staff of 85 as at November 2003 andInsure Mart (1,987 sq ft at Granite House, StockwellStreet) while financial and professional servicescompany Tenon Group has taken representation atBlythswood Square.

Also consolidating in Glasgow is US-giant GeneralElectric, (GE), (the world’s largest company by marketcapitalisation), which, in July 2001, opened its first GECapital Commercial Finance, (GECCF), facility inScotland, as part of plans to expand into Europe.GECCF is based alongside other GE subsidiaries,(Equipment Finance and Woodchester) at SavoyTower, Renfrew Street, where the staffing complementis around 30. In another major move in May 2002,General Electric announced the take-up of 20,000 sq.ft.of office space at Central Quay.

“US bluechipconglomerate GeneralElectric boostsGlasgow’s commercialmarket by taking20,000 sq.ft. of officesin Central Quay”

Scotland on Sunday, 12 May 2002

Meantime, the global leader in risk management andinsurance brokerage AON Corporation, (USA),formerly with a workforce spread across a number ofoperations and locations in the City Centre (including

Alexander Consulting, Alexander Clay, Minet, BainHogg and Godwins), has consolidated AONConsulting and corporate division operations at 131St Vincent Street (212 staff), with AON Risk Services,(200 staff), trading from 145 St Vincent Street. Willis,key UK broker, is also represented in Glasgow atpremises in West George Street, where some 50 staffare employed.

Recent activity elsewhere in the Glasgow financialsector has involved the world’s four-largest insurancebrokers, further boosting the City’s reputation as a hubfor international financial services. Global marketleader, Marsh & McLellan (USA), St Vincent Streetfollowed its £1.2bn acquisition of the world’s third-largest broker, the Sedgewick Group, (UK) byconsolidating operations in the City in the late 90’s.Sedgewick operations in the city were brought underthe Mercer brand. Currently, Marsh & McLellan hasa sizeable presence in Glasgow, with Mercer at 26Blythswood Square, (pensions administration, 103staff), and 45 Waterloo Street, (consultancy, 100 staff).In addition, another subsidiary, Marsh UK, has aninsurance broking and risk management facility at 48St Vincent Street (120 staff).

Going head-to-head with William Mercer in theemployment benefits consultancy side of things, isaccountancy firm Deloitte & Touche, (D&T). In 2000,D&T relocated to new premises at Lomond House,George Square, from 39 St Vincent Place with 140staff and announced plans to create 100 jobs over thenext five years by setting up a pensions administrationunit. Target employment levels have been achievedahead of schedule, with employment at November 2003boosted to 250, although some staff may havetransferred over to Deloitte following the collapse ofAndersen in April 2002.

“Accountancy firmDeloitte & Touche tocreate 100 jobs in newpensions administrationunit in Glasgow.”


The Andersen office, which employed some 300 staff at191 West George Street, closed in 2002. In addition,191 West George Street also housed Andersen’s 250-strong legal network complement, which included


Dundas & Wilson—Scotland’s biggest law firm interms of fee income. In late 2002, Dundas & Wilsonbroke from Andersen Legal to become independentagain. Staffing at Dundas & Wilson in November 2003was around 150—down from the 200 level posted inJuly 2002.

This move, which followed on the back of US-regulatory enquiries into conflicts of interest and auditindependence, has caused similar split-ups, mergersand acquisitions affecting Glasgow-based firms.KPMG, another of the ‘big four’, completed a mergerbetween its legal division, KLegal, and McGrigorDonald, Scotland’s second-largest law firm. Bothorganisations have a substantial presence in Glasgowand restructuring has resulted in some employmentcutbacks. KPMG at 24 Blythswood Square has seen theworkforce pared back slightly from 260 to 250, whilestaffing at McGrigor Donald, at 70 Wellington Street,has dropped from 265 in January 2001, to 188 as atMay 2003.

Meanwhile, another one of the ‘big four’, Ernst &Young, has also reconfigured its operations in the city,by selling its $12.5bn consultancy arm to Cap Gemini,the French technology services company and Europe’slargest IT service business. On the back of this move,Cap Gemini Ernst Young expanded its operation inGlasgow, by taking a further floor at Regent Court,West Regent Street and raised employment levels from150 to 210, by August 2001. However a majorreshuffling has followed and employment dropped to90 in Spring 2003. Ernst & Young has also withdrawnfrom TASCO Europe, (Grosvenor House, GordonStreet), a joint venture company set up in conjunctionwith energy multi-national, Shell, to undertake‘contracted-out’ accountancy functions for Shellcustomers throughout Western Europe. The facility hasbeen rebranded as Shell Finance OperationsScotland and employment levels have been trimmedfrom 400 in 2002, to around the 350 mark in November2003. Ernst & Young operations at George House,George Square in Glasgow have been re-jigged furtherthis term through the transfer of overall control andsome back office functions to Leeds (in August 2003)and the disposal in October 2003 of its Ernst & YoungFinancial Management arm (40 staff at GeorgeSquare) to Cavanagh Group for £3m. All in all, Ernst &Young’s staffing complement has fallen from 410 in2001 to current levels of around 290.

Beyond the majors, merger activity has also beenevident. One of the top ten UK law firms, DLA, hastaken a presence in Scotland through its acquisition ofBird Semple, (95 employees West George Street),while HLB Kidsons, (Sauchiehall Street), has re-

branded, (through merger), as Baker Tilly, to createthe UK’s eighth-largest accounting firm, (and, as partof Baker Tilly International, the eleventh-largestaccountancy network in the world). Employment atBaker Tilly (Sauchiehall Street) has however fallen from130 in October 2002 to around the 75 level inNovember 2003. These now join other key city players,including Scotland’s largest commercial law firm,MacLay Murray & Spens, (St Vincent Street), wherethe workforce has grown from 192 to 274 over the past3 years; accountants Grant Thornton, (BothwellStreet), where staffing levels have gone up from 118 to150; employment and corporate law specialists,MacRoberts, (Bath Street), where the complement hasincreased from 120 to 150; legal specialists HarperMacLeod, (Gordon Street) whose headcount hasincreased from 118 to 172 Gordon Street), and,accountants BDO Stoy Hayward, (70 staff, WestGeorge Street). Moreover in August 2003, JohnstonCarmichael one of Scotland’s biggest independentaccounting firms opened a 7 strong accountancy andadvisory services office in Glasgow at Buchanan Street.This facility also houses Johnson’s recruitment servicesdivision AEA (relocated from St Vincent Street(formerly 12 staff)). A rollout of operations with furtherrecruitment is planned over 2004.

Elsewhere on the business services front, performancehas been more mixed.

US corporate presence in the City was boosted in July2000, when California-based Exult Incorporatedlaunched a web-enabled human resources, (eHR),client service centre at 301 St Vincent Street, withplans to recruit a 200-strong workforce. The centre,(the first in Scotland to cater for eHR processmanagement), operates on a pan-European basis andcame on the back of a £370m HR managementcontract, between Exult and BP Amoco. By mid-summer 2001, the facility had built up a 150-strongstaffing complement. Market conditions however, havecut the workforce to around 125, as at November 2003.

Meanwhile a flurry of activity has characterised Exult’stwo fellow US-based recruiters Monster.com andMelville Craig this term. The tie up between the twocompanies ended when the Hudson Highland Groupde-merged from TMP Worldwide in April 2003.Melville Craig, formerly one of Scotland’s largestrecruitment companies, is now a division ofTMP/Hudson Global Resources — one of the top 5global recruitment and HR consulting firms — andoperates a mid-level executive recruitment and HRconsulting operation from 6 Blythswood Square with astaffing level of around 100. Monster — the worldleader in online recruitment — is now trading as


Monster Worldwide (formerly TMP Worldwide) with a75 strong complement at 100 Queen Street. Monsterhowever plans to take on new business and corporaterecruitment on a UK wide basis—a move that will booststaffing levels by around 125 over the next 12 months.

Also doing well is Data Locator the West CampbellStreet based call centre operation which collectsbusiness and consumer data for direct marketingpurposes. Over the past year, the company recruited afurther 50 staff bringing its total complement to the400 mark. In addition, the outsourcing call centredivision of Data Locator, Chorus Direct in August2003 launched a new facility at City Park, Dennistounthat will employ 150 staff initially. Further expansionlater, at another location, could involve recruitment ofan additional 100 jobs. The new arm trades as ChorusDirect Financial Services.

“250 jobs created withthe opening of callcentre Chorus Direct atCity Park inDennistoun’’


More good news came via information servicescompany I-Documentsystems. In August 2003, thecompany—which employs some 57 staff at GordonStreet—announced plans to transfer its headquartersfrom London to Glasgow. This will involve additionalrecruitment in Glasgow with the option of the openingof another office to serve its Scottish customers.

Marketing Management Services International,(MMSI), which provides IT market intelligence to thebusiness sector, relocated from Bothwell Street to anew £1.5m headquarters at 100 Wellington Street, inAugust 2000. At that time, MMSI announced plans toincrease the Glasgow establishment to 400 by 2004,with the intake being mainly for graduates withlanguage skills. A further 340 were targeted to berecruited for the company’s growing network of officesabroad. Since start-up in 1997, employment increasedfrom 6 staff to 174 at March 2001, (24 full-time; 150part-time). In 2002, however, staffing reduced to 18full-time and 100 part-time. Further reductions havefollowed and, as at May 2003 some 18 full-time and 13part-time were in post.

One major relocation came in June 2002 when USmultinational Jacobs Engineering (engineeringconsultancy and procurement) closed its Glasgowoffices at Park Circus and transferred to new facilitiesat Uddingston, South Lanarkshire with the loss of 250jobs to the city’s account. A further 50 jobs were lostwhen stocktaking service company Pitman Sumlockclosed its Union Street offices in 2002. This term, officefurnishers Georgeson relocated from Newton Place toEast Kilbride in September 2003 with the loss of 30 jobswhile, civil engineering/construction company, KierRegional relocated from Woodside Terrace to Steppsin October 2003 with the loss of 46 jobs to the city, and,in January 2004, Lilley Construction (Charles Street,Springburn) ceased trading with the loss of 190 jobs.

Public SectorIn contrast to the early 1990s, when a number of publicsector organisations took high levels of space in theCity’s office market, the mid-late 1990s were marked byonly moderate movement in the occupational market,by both central and local government. As noted inprevious Monitors, the emphasis was on cost-cuttingmeasures including de-manning, facility procurementunder the Private Finance Initiative, sale-and-leasebackand the disposal of under-utilised properties to releasecash from real estate surplus to requirements. Inconsequence, CB Richard Ellis reported public sectordemand accounted for only 6% of office take-up acrossthe year to December 2001.

Key activity in 2001 included Scottish Enterprise(SE), Scotland’s national economic developmentagency, relocating in September its complement ofsome 470 HQ staff from Bothwell Street to 96,000 sq.ft.of modern premises at Atlantic Quay, Broomielaw.

Among other notable lettings that year were theNational Health Service 24 (NHS 24) and theHealth Technology Board for Scotland taking 15,500sq.ft. at Delta House, West Nile Street. The NHS moveinitially involved the establishment of an Executive HQand the creation of some 30 new jobs. Currently,however around 60 personnel including contractors areemployed. Recruitment also began in 2001 just acrossthe city boundary at the HCI Hospital at Clydebank, forthe NHS 24 direct helpline call centre, which wastargeted to build up to a complement of 230 staff.Moreover the Scottish Criminal Records Office, onthe back of increased workloads and staffing levels,relocated from rented offices at Strathclyde PoliceHeadquarters to Pacific Quay. Current employment atthe SCRO, which provides eight police forces and thewider criminal justice community in Scotland withaccess to criminal history, fingerprint and police


national computer systems, is around 200. In addition,around 350 staff are located at the Criminal InjuriesCompensation Board offices at Tay House, BathStreet.

“Office space boost forGlasgow withDepartment ofEnterprise and LifelongLearning set for newoffices at EuropaHouse.”

Sunday Herald, 26 March 2000

In addition in 2001, the Scottish Executive completedthe transfer of 160 posts from Edinburgh to theDepartment of Enterprise and Lifelong Learning,(DELL), at Europa House, Anderston. These postsjoined the DELL staff at Meridian Court, CadoganStreet and effectively located the whole Department inGlasgow.

Over the past two years however, public sector take-uphas returned to strong levels, with CB Richard Ellisreporting that, across 2002, the public sectordominated the office demand profile in Glasgow, byaccounting for 29% of all identified take-up. In the firsthalf of 2003, the level was 13% of identified take-up—although this excludes the 57,6455 sq ft take-up by theGlasgow Housing Association in Granite House. Onefactor behind this trend is that the government hasrequired UK public bodies to make the majority of theirservices available electronically by 2005—which has ledmany (Local Council’s, Scottish Executive, Police,NHS, Department of Work & Pensions, InlandRevenue etc) to recompose existing structurestowards call or contact centre facilities. The other is thedeclared policy of the Scottish Executive to dispersecivil service and other Executive jobs across Scotland.Over the next few months, decisions are due to bemade on the possible relocation of (among others) theRegisters of Scotland (1,030 staff), Sports Scotland(133), the Scottish Arts Council (100), Visit Scotland(152), the Mental Welfare Commission for Scotland(70), the Scottish Further and Higher EducationFunding Council (150), the Royal Fine ArtsCommission for Scotland (5) and new bodiesincluding the Strategic Transport Authority and the

single Correctional Agency, both of which willemploy several hundred staff.

Headlining the charge, the Department of Work andPensions, (formerly DSS), took 46,650 sq.ft. across 1Atlantic Quay, (second floor, former BAE Systemsoffices, and the second and third floors of 3 AtlanticQuay, former Hilton Group offices) to consolidate workcarried out in a number of different locations in andaround Glasgow. Property outsourcing group, LandSecurities Trillium, is contracted to own and managethe property and Hays is reported to have beeninvolved in recruiting some 200 posts for theDepartment. The Student Loans Company, (SLC),—wholly owned by the UK government and the ScottishExecutive and now one of Europe’s largest lenders—took an additional 15,500 sq.ft. at 100 Bothwell Street in2002. This expansion followed on the rapid build-up ofSLC’s call centre and administrative operations atBothwell Street, (from 300 staff in 1996, to 550 in 2000,then to 600 in 2002). A further recruitment round tookthe complement to 750 at August 2003. Other recentactivity includes Scottish Police InformationStrategy take-up on the 6th floor, 3 Atlantic Quay,Strathclyde Police at 255 St Vincent Street (12,350 sq ft)and ACAS, (Advisory Conciliation & ArbitrationService), with 12,000 sq.ft. at 151 West George Street.Meanwhile, the Ministry of Defence, (DefenceEstates), has vacated Wellesley House, Waterloo Streetand relocated to Douglas Street. The MOD, (Pay andPensions), has also leased 21,500 sq.ft. ofaccommodation at the Cerium Building, CadoganStreet. However, it was announced this term, theScottish Office presence in Glasgow (Meridian Court)is to close and work transferred to Edinburgh with theloss of around 30 to Glasgow’s account.

The operations of Scottish Water, the single waterauthority for Scotland formed in April 2002 have beensignificantly restructured over the past year following areview to reduce operating costs by 33% andsubstantially lower the headcount by 2005/06. InSeptember 2003, Scottish Water announced a £1.8bncapital investment programme to upgrade Scotland’swater infrastructure. This programme—involving some1,500 projects and work for around 8,000 contractors—is to be undertaken by the newly formed private limitedcompany Scottish Water Solutions—a consortiuminvolving Scottish Power and 7 private sectorcompanies (United Utilities, Morgan Est,GallifordTry, Thames Water, Gleeson, AlfredMcAlpine, and KBR). Greater Glasgow’s share of thespend is estimated to be around £180m. The knock-onfor Glasgow has been a restructuring of Scottish Waterfacilities. The operational management for water andsewerage is retained at Scottish Water Glasgow


Balmore Road with employment down to 500 from600 last year) at Balmore Road. However the planningand procurement office in the West of ScotlandScience Park becomes Scottish Water Solutionsengineering headquarters. While overall staffing levelshere have been maintained at around 260, the mix ofstaff involves both Scottish Water personnel andcontractors staff. The Regional Operating Centre atthe Skypark, which had a staff of 100 last year underScottish Water now takes on the role of a ProjectDevelopment sub-office for Scottish Water Solutionswith a complement of around 60—mainly contract—personnel.

Also settling in, is the Glasgow Housing Association(GHA) which has taken 57,655 sq ft at Granite House,Stockwell Street for some 300 staff (the largesttransaction to be completed in the city centre in 2003),as well as 10,360 sq ft at Lipton House, Crown Streetand 7,600 sq ft at the Skypark. The Association—a not-for-profit body—formally acquired the housing stock of80,559 units and other related assets from the CityCouncil in March 2003 together with the employmentof 1,860 members of staff from the Council. GHA willact as a parent group for 62 local housingorganisations operating around the city.

German-owned Siemens Business Services has runthe National Savings Bank, (now re-branded asNational Savings & Investments, (NSI)), networksince 1999, when it inherited around 1,800 staff atCowglen. Current workloads are split between NSIoperations and managing back-office processing,(direct debits, opening and closing accounts, etc.), forBarclays Bank. Continuous NSI operational reviewshave been ongoing, with total employment cut backfrom 840 in September 2002 to 770 at October 2003. Incontrast, however, a further 700 Siemens full-time andagency staff are employed at the Barclays ProcessingCentre, an increase of around 150 over the past year.

Meanwhile, the Royal Mail is about half-way throughits three year network re-invention programme—a£1.2bn nationwide cost-cutting package across all itsbusinesses involving the loss of around 30,000 jobsover the period to 2006. As part of this package, it wasindicated that up to 13,000 jobs would be shed at theParcelforce Transport and Support Divisions andthat a restructuring of the UK urban post officenetwork, involving the closure of up to 3,000 urbanbranches, was to be undertaken and that 17,000 jobswould be shed across the UK from the Royal Mail sideof the business.

Glasgow has traditionally been, and remains, one of theleading centres for postal operations in Scotland. The

Government’s official employment estimates, (theAnnual Business Inquiry), suggest employment inpostal activities in Glasgow remained relatively stableat around 4,000, over the 1995 to 2000 period. Thisequates to 22% of total employment in Scottish postaloperations. Glasgow employment is spread across 66workplaces in the city, which is approximately 10% ofall postal workplaces in Scotland. Royal Mail reportedthat its employment in the city, as at February 2002,was 3,600, (although this may not be on a like-for-likebasis with government figures). The main centre is atSt Rollox, which employs 1,000 head office,administrative and sorting office staff, with around2,600 ‘delivery and other’ staff elsewhere in the city.However, the Parcelforce depot and parcel distributioncentre in Pollokshields (Kilbirnie Street, 72 staff) wasclosed during 2002. It is also understood that the PostOffice is considering closing up to 25 of the 140 postoffices in Glasgow. In another move, a total of 11private firms now have a licence to operate postalservices. Scotland will have at least three newcompanies operating in the postal delivery sector. HaysCommercial Services, Business Post, TNT and TPGPost UK now all hold licences to deliver bulk businessmail in the UK. Indeed, in September 2002, Haysacquired 120,000 sq.ft. of warehousing at ClydesmillPlace, Cambuslang Investment Park and some 72 staffwere in post as at June 2003. More recently in May2003, Cendris—a division of the Dutch Post OfficeGroup TPG—confirmed a 15 year lease at premises inCardonald Business Park for data forwarding purposesand launched with some 60 staff in July 2003.

TelecommunicationsUntil recently, the increasing application andconvergence of wireless, wireline entertainment andinformation technology, across financial, education,retail, media, professional and business services anddomestic use was a bankable and populist growthmarket involving millions of pounds in investment.However, with some market sectors critically oversold,carriers have been hit by massive overcapacity and arapid decline in telecoms spending, and corrections arenow underway. In consequence, a new dynamic—costbase reduction—has been introduced to thetelecoms industry. Many previously fast-expandingtelecoms firms are still either cutting jobs to move intoprofit faster, withdrawing from market niches, or,unable to justify the carriage of debt, have undertakenrestructuring negotiations with banks, and tradingcreditors. ‘Phase 1’ markets are near saturation, andthe spread of potentially (up to 10 times) cheaper and(up to 5 times) faster wireless LAN networks and meshnetwork technologies are already challenging the


much-vaunted 3G network services. Indeed, mobilenetwork operators seem to have particular concernsabout the adoption and take-up rates of third-generation, (3G), services. Long-term though, thereremains little doubt, the future application of telecomstechnology will determine future formats of, and for,business. In September 2001, the Scottish Executivelaunched its broadband telecoms strategy for Scotland,the aim of which is to attract telecoms companies tobuild high-speed networks to link up public sectorusers such as schools, GP’s surgeries and localauthorities, with the Executive pledging to support theupgrade if required.

Glasgow currently provides one of the most advancedtelecoms environments in Europe. Telecoms servicesuppliers include BT, Thus, NTL, PrimusTelecommunications and newcomers Lattice andHutchison 3G.

On the back of a volatile market, the BT Group hasfaced difficult trading. Like other UK majors, BT hasindicated it will pilot call centre facilities in India.Meantime, the company is restructuring operations ona UK wide basis. Its dedicated Scottish Division, BTScotland,—the fourth largest private sector employer inScotland—is phasing in a re-organisation programmeannounced in March 2002 aimed at reducing the 13call centre facilities across Scotland, (and a 600 jobloss), to 3 new state-of-the-art multi-function centresin Glasgow, Dundee and Aberdeen. Glasgowoperations are centralised around the £50m flagshipheadquarters — a BT Workstyle 2000 centre — atAlexander Bain House, Atlantic Quay which employssome 1,200 staff in marketing, sales, service andsoftware development and a further 300 in call centrefunctions. Under the programme, call centre staff atthree facilities in Glasgow—Linfern Road, AlexanderBain House and Dial House, (an estimated total of 578BT employees and 609 agency people),—will beamalgamated into a new centre in Glasgow, at alocation to be announced. It is reported that only staffdirectly employed by BT will move to the new site.Facilities in Ayr, Motherwell, Edinburgh and Bathgate,(which have around 200 BT staff and 220 agency staff),are scheduled for closure, and again people directlyemployed by BT will be given the opportunity to moveto the developing site in Glasgow, or redeployed. Inaddition, BT Scotland has a sizeable engineeringproducts/services presence in Glasgow involving some800 personnel across two sites at Pitt Street andWestergate. While the overall implications of the BTrestructuring programme to Glasgow is as yet unclear,BT Scotland report total full-time BT staff in Glasgow

has been pared back from 3,200 in 2001 to aNovember 2003 level of 2,800. However the companyremains one of the largest private sector employers inGlasgow, which by representation has nearly one-thirdof all total BT staff in Scotland. Meanwhile, across theCity, employment at BT Cellnet O2 (Durham Street,Kinning Park)—formerly DX Communications andnow part of the mmo2 group, Europe’s fifth largestmobile phone business—fell from 100 to 18 at May2002.

After two significant expansions in the last four years—at Berkeley Square and Citypoint—Thus, the demergedtelecoms division of ScottishPower, has alsoreconfigured its site locations and operations inGlasgow and Scotland. The company moved itsheadquarter operations from leased premises inDalmore House, (St Vincent Street), to Berkeley Squarein Autumn 2002, and also vacated its Waterloo Streetpremises and transferred some Glasgow functions,involving a reported 180 jobs, to its Livingstoncustomer service base. Employment at Berkeley Squareis estimated to be around the 450 mark. Staffing levelsat the contact centre at Citypoint, (Tyndrum Street) areput at 550 as at November 2003. In 2000-2001, Thuswas estimated to have around 1,400 staff in Glasgow.Over the short term Thus—on the back of new businesscontracts from Scottish Power, BSkyB and BookClub Associates—is planning to recruit an additional250 employees for its contact centre operations.

“Thus—one of the UK’sleading providers ofvoice, data, internetand contact centreservices—currentlyrecruiting 250 to bringGlasgow contactcentre staffing levelsup to 800”

Herald, 21 November 2003

Meanwhile, one entrant building business isHutchison 3G UK, part of a consortium headed by


Hong Kong telecoms group, Hutchison Whampoa,Britain’s biggest third-generation mobile phone licenceholder. In January 2002, the company set up itsScottish headquarters/call centre at 123 St VincentStreet, where it has taken some 70,000 sq.ft. of space,with the intention to create some 600 jobs over thenext three years. Employment rose rapidly from 50 toaround 250 by mid-2003. While in January 2003, thecompany announced it planned to reach its 600 job-target mark by the end 2003 (on the back of the roll-out of services and as its customer care centrebecomes fully operational), by August, the companyindicated it planned to recruit only a further 100 jobsby the end of the year.

“Third generationmobile phonecompany, Hutchison3G plans to add 100jobs at its Glasgow-based call centre bythe end of this year.’’


Hutchison 3G has signed up with another relativenewcomer to Glasgow, 186K, the telecoms arm of gasdistributor Lattice, which has invested £492m in anational fibre network. In February 2002, 186Klaunched a POP (point of presence) from an 11,000sq.ft. co-location site at Pacific Place. The company willtarget customers in the financial services sector.

Interestingly, Hutchison’s representation in Glasgowwas further increased in August 2002, when parent,Hutchison Whampoa, in conjunction with SingaporeTechnologies Telemedia, successfully acquiredbankrupt telecoms operator, Bermuda-based GlobalCrossing Telecommunication, the supplier ofintegrated communications for corporate organizations.However some 44 staff have been shed at Global’scustomer service centre and directory enquiry facility atSkypark, Finnieston in recent months and theremaining 56 subcontracted to TeleTech to operate thefacility on behalf of Global. Global’s other operation inGlasgow, Global Crossing Reservations—the providerof video conferencing services, at Cadogan Streetwhich employed 75 in 2001—was closed in April 2003.

Elsewhere, UK outsourcing company HotlinesTelemarketing, which has been operating fromtemporary accommodation in Glasgow since 2000,launched a permanent office in 2003 at West NileStreet, with some 50 jobs. The operation wassubsequently taken over by 1Call Direct.

The Royal Mail (formerly Consignia) announced arestructuring of call centre operations in the UK, inAugust 2001. Under a £30m programme the company’s70 call centre sites nationwide were to be replaced by11 ‘super centres’. Glasgow has benefited. Operationshave been centralised around the Post Office callcentre at the Athenaeum in Nelson Mandela Place,which had a staff of around 60 in March 2002. TheRoyal Mail sales centre at the Guild Hall, (QueenStreet), has been closed and the 35 staff in posttransferred over. Staffing levels have built up over thepast 18 months and around 300 are currently in post atthe Atheneum.

Over the past five years, Response Handling, (asubsidiary of Murray International Holdings), on theback of expansion plans, acquired 8,000 sq.ft. atEdmiston House and created new call centre jobs atCopland House, Govan. Services include contractinbound and outbound telemarketing. Following onfrom a 200 staff growth across 1998 and 1999, some100 extra staff were recruited across 2000, with thecapture of new long-term contracts from the financialservices, technology, media and telecoms sectors.Overall, employment levels at Response rose fromaround 20 in the mid-1990s, to around 650 in 2001.Recent contract successes, such as managing calls forthe Student Loans Company and other public bodies,including Scottish Enterprise and ScottishDevelopment International, over the past 2 years,boosted employment to around 800 at the Edmistonand Copland complexes, as at April 2003. This term inAugust 2003, new business gains have prompted a£1.5m extension to Edmiston House and plans to createa further 190 jobs while, in January 2004, it wasannounced a new 225 strong contact facility atClydebank will be launched in April.


“£1.5m expansion ofGlasgow contactcentre meansResponse Handlingrequire a further 190staff taking theworkforce to 1,000plus”

Scottish Business Insider, September 2003

Meantime, USA telecom carrier, PrimusTelecommunications which in June 2002, indicatedthat it planned to increase the number of contactcentre jobs in Glasgow from 60 to 100 has relocatedfrom Stockwell Street to 349 Bath Street. Currentemployment levels however remain around 60. Primusis housed within CallPoint Europe, the outsourcingcompany that provides space in hi-tech call centres forcompanies that do not want to build their own facilities.Callpoint Europe itself is headquartered in Bath Street,with 24 staff.

On the back of call centre demand, the former WillsFactory on Alexandra Parade has been redevelopedand marketed as the £30m City Park, providing300,000 sq.ft. for call centres, large telecom andcomputer clients. Developers, Elphinstone Group,indicates the scheme has a potential for up to 2,500new jobs. Telecommunications and IT company, DigitalIP took 11,000 sq.ft. let, and launched in January 2003with the aim to provide communications to tenants. InOctober 2003 some 25 staff were in post. The Parkreceived a further boost when the outsourcing callcentre division of Data Locator, Chorus Direct inAugust 2003 launched a new facility that will employ150 staff initially. Chorus will undertake telemarketingduties for Scottish Power among others.

Another relative newcomer to the city is Yell Group,(formerly a division of British Telecommunications plc(BT)) which opened an administrative and telesalesoffice at 180 St Vincent Street in mid-summer 2002,with a staffing complement of 130. Yell is Britain’s toppublisher of telephone directories. A growing businessbase has boosted the workforce to around 200 as atNovember 2003.

Meanwhile TeleTech Holdings, (USA), one of theworld’s largest call centre companies, having openedcall centre operations in summer 1998, at CentenaryHouse, Morrison Street, with a 100-strong workforce,moved into the former Greater Glasgow Health Boardoffices, at 225 Bath Street, in October 1999. Thecompany, which manages inbound telephone, Internetand PC-based video enquiries on behalf of clients, builtup to a 620-strong complement in 2001, withexpectations of a further 200 on the basis of ‘spin-out’contracts. Employment levels have since fallen back toaround 300, as at November 2003 this year but thecompany expects to recruit a further 60 over the short-term. Percepta, the customer relationshipmanagement, (CRM), joint venture between TeleTechand Ford Motor Company, has also been growingbusiness recently with the result that employment hasincreased from 159 in April to 180 at the Bath Streetpremises. TeleTech has additional operations atSkypark, Finnieston, where some 56 are employed.

However, there have been several recent knocks.

This term, Vertex, the outsourcing subsidiary of UnitedUtilities, and the contractor for telecoms companyCable & Wireless’s call centres in Glasgow closed its191 West George Street office with the loss of around250 jobs. C&W has suffered badly over the past threeyears and some 1,500 job cuts for the UK-end of thebusiness were announced in June 2003. HoweverVertex retains a C&W presence in the city through‘sister’ facilities at Atrium Court, Waterloo Street whichruns with a 500 strong workforce. Nationally, Vertex hassecured contracts from the Department of Work &Pensions which, in September last year, took 46,650sq.ft. at Atlantic Quay. Interestingly, Vertex has astrategic alliance with Cap Gemini Ernst & YoungConsultancy, which has representation at WestRegent Street.

Damovo — formerly the direct sales and serviceoperation of Swedish Group Ericsson and 80% ownedby private equity firm, Apax Partners — establishednew corporate headquarters in Glasgow in September2001. The company undertook a recruitmentprogramme for its Global Telecoms Shared ServiceCentre, based at 123 St Vincent Street, and transferredin its corporate staff from Hillington, bringing staffingto around 120 at September 2002. However Damovowhich supplies internet, voice and datacommunications to larger companies, also announcedthat the target date for its proposed stock marketfloatation had been put back to 2004, because ofdifficult market conditions. This was followed by areview of operations including proposals in October



2003 to reduce staffing in Glasgow by 50 posts.Owners Apax also indicated the eventual closure of theGlasgow office — or the sale of the business — couldnot be ruled out.

Centrica, which established a telecoms presence inGlasgow in January 2002, through the £2m acquisitionof Iomart’s broadband phone business and ran thebroadband division under the One.Tel brand, hasrelocated from premises at Todd Campus, West ofScotland Science Park, to Erskine, (Renfrewshire), withthe loss of 20 jobs to the City. However Centrica —through Scottish Gas — is planning a major push intothe low cost telecoms market in 2004 as well asupgrading its energy service delivery in Scotland and isto invest in a centre at Queenslie to train additionalengineers. Peer Digital, a US-based company, whichoffers international conferencing services, opened atthe Spectrum Building, 55 Blythswood Street, inJanuary 2001. With a start-up of 22 staff, the companyplanned to create 70 jobs over two years, but has sinceclosed. Likewise, telecom operator, Atlantic Telecom,fell into administration and subsequently closed, with a150-job loss in 2001. Also in July 2001, IT servicescompany, ICL Scotland, (a subsidiary of the JapaneseFujitsu Group), closed its Queenslie offices to relocateto Renfrewshire, with the loss of 50 jobs to the City.

Local telephone, telephony and Internet provider,CableTel, has moved from being a divisional playerinto the major league, following a string of 30acquisitions by US parent International CableTel,including NTL, (in 1996), Comcast, (1998), andComTel, (also 1998), and subsequently re-brandingunder the NTL banner. Employment has grownproportionately, with staff numbers, at the MaxwellRoad HQ in the south of the City, put at 550 in 2000,compared to only 16 at start-up in 1994. NTL howeverhas been caught up in the well-documented falloutfaced by digital operators. In April 2002, NTLrestructured and re-capitalised to cut its £12bn debtand in November 2003 a further rationalisationprogramme was announced. As at December 2003,around 450 staff were employed at Maxwell Road,Pollokshields.

Tourism and Leisure The British Tourist Authority states that the totalnumber of overseas visitors to the UK in 2002 was 24.2million, a 6% increase since 2001. Spending byoverseas visitors also increased in real terms by nearly4% to £11.7 billion.

Domestic visitors took approximately 101.7 millionholidays of one or more nights in 2002, generatingexpenditure of £17.4 billion. This is an increase in the

number of visitors of 0.7 million, and an increase inspending of £0.4 billion. UK residents also made 23.3million overnight business trips generating £5.6 billionexpenditure, representing 0.3 million more trips but adecrease in expenditure of £0.1 billion since 2001.There were 39.6 million overnight trips to friends andrelatives generating expenditure of £3.4 billion—anincrease of 2.6 million trips and of £0.4 billion since2001.

VisitScotland states that there were 1.6 million tripsmade by overseas tourists in 2002, generatingexpenditure of £811 million. This represents no changein the number of trips and an increase in expenditureof £46million in real terms since 2001. UK visitors toScotland in 2002 made 18.5 million trips whichgenerated £3,683 million expenditure—an increase of 1million trips and £227 million in real terms since 2001.

In 2001 there were approximately 197,398 tourismrelated jobs in Scotland, of which 28% were in theGreater Glasgow and Clyde Valley area. These figuresexclude estimates of those who are self-employedwithin tourism-related activities

In 2002, 0.4 million trips were made by overseas visitorsto Glasgow, generating £150 million expenditure andrepresenting an increase of £7 million in real termsover 2001 but below the levels across 1994 to 1998 andsignificantly below the peak 0.5 million visitor and £204million spend levels of 1999. Overseas visitors spend onaverage 7 nights in Glasgow, resulting in a total of 2.8million bednights. Their expenditure represents almosta fifth of total overseas visitor expenditure in Scotland.Domestic trips to Glasgow represent approximately asixth of all UK trips to Scotland and have an averagestay of 2.4 nights in Glasgow, generating 7.3 millionbednights. The majority come for holiday purposes(53%) and over a fifth (22%) come for businesspurposes.

Approximately 3 million trips were made by domestictourists to Glasgow, generating £580 millionexpenditure. This is an increase of 0.3 million trips and£41.5 million in real terms since 2001.

Greater Glasgow and Clyde Valley Tourist Board’sConvention Bureau continues to generate asubstantial number of conferences and delegate roomnights. From March to December 2003 over 300,000delegate room nights were confirmed, equating tomore than £50 million in delegate spend in thedestination. Over 400 new hotel rooms were created inGlasgow during 2003, bringing the city’s total to 6,181.

Glasgow will host the European Respiratory SocietyConference in September for 15,000 delegates, and is

Scotland's largest medical conference ever held.Beating stiff competition from other European cities, itwill showcase Glasgow to an international audienceand create significant economic impact for localcompanies. Many of the delegates will return toGlasgow both for short breaks and to attend othermedical conferences in the city, therefore the economicimpact will continue to be felt after the conference hasended.

The Greater Glasgow and Clyde Valley Tourist Boardmanaged the Air Services Development Fund on behalfof Glasgow City Council in 2003. The fund is designedto encourage airlines to establish new links to GlasgowInternational Airport and Prestwick InternationalAirport. Research shows that almost 50% of inboundpassengers to Prestwick International Airport aretravelling to Glasgow, and the development of routes atboth airports has helped to maintain the buoyantoccupancy levels in the city.

Greater Glasgow and Clyde Valley Tourist Board hasworked with airlines to develop demand for thedestination which has included public relations activity,advertising, electronic marketing, packaging with tourand short break operators, and internet promotions.This has resulted in viable and sustainable routes. Twonew routes announced recently for 2004 — USAirways flying direct to Glasgow from Philadelphia,and Emirates flying daily from Dubai — will increaseGlasgow’s accessibility.

In March this year, Glasgow launched its new citybranding campaign with the aim of projecting a newand confident image on the world stage. Under thestrapline Glasgow: Scotland with Style, the new brandwill position Glasgow as a cosmopolitan European cityas well as a modern, dynamic location for investmentand tourism. The campaign will endeavour to driveGlasgow up the European league table of cities interms of employment, investment and increasedtourism revenue and build on the significant progressmade in transforming the city over the last 20 years. Atotal of £1.5m is being injected into the initial stages ofthe campaign, which is expected to generateinvestment of £42m in the city’s economy over the nexttwo years and create up to 1,000 full-time jobs.

Transport

AirAviation is not only a major industry in its own right,but a key driver of economic activity. Following eventsof September 11 and in the Middle East, many globalairlines moved quickly to downsize operations and

employment and abandon flight slots, in an effort toreduce debt and realign to demand. In July 2002, theGovernment launched a major consultation exercise onthe UK air transport industry. The Scottish Air TransportConsultation Document predicted that the level ofpassenger volumes at Scottish airports could treble to50m over the next 30 years and set down a number ofdevelopment options, including an additional runway ateither Glasgow or Edinburgh, or a package of minorimprovements and alterations at both. In December2003, the published White Paper supported the phaseddevelopment of additional runway capacity atEdinburgh but did not see a clear case for anadditional runway at Glasgow. However, theGovernment accepted that the predicted (15m)passenger levels for Glasgow in 2030 could be higher ifthe recent trend of rapid growth on the eastern side ofthe Central Belt were to halt or be reversed.

Another headline development this term came inMarch 2003, when the Scottish Executive announcedthe preferred rail routes to Edinburgh and Glasgowairports. Glasgow will be the first city in Scotland tohave a direct rail link to its airport. The link to Glasgowairport, from the city’s Central Station via Paisley, willprovide a 15-minute direct link to the airport, with fourtrains an hour. This will also allow for improvements tolinks to Prestwick Airport, as well as improved links toRenfrewshire, Inverclyde and Ayr. The project, whichhas an all-element cost of some £140m, is expected tobe up and running in 2008.

This notwithstanding, the importance of GlasgowAirport to the local economy is reflected in theemployment figures—while operating companyGlasgow Airport Ltd employs around 600 staff, totalemployment within the facility is put at some 5,400.Glasgow residents account for around 13% of the totalworkforce.

Over the twelve months to January 2004, the airport,which is BAA Scottish Airports traditional flagship inScotland, posted another good set of figures, with athroughput of some 8.1m passengers — a +3.8%%increase on the previous year. However EdinburghAirport, experienced much stronger growth, at +8.1%,(to 7.5m).

Prestwick Airport, having already attracted Ryanair,is now also providing competition to Glasgow. With apassenger increase of 27% over the past year (to 1.9m),Prestwick is among the top ten fastest growingEuropean passenger airports and is on course todouble passenger volumes to over 3m over the next 5years. Plans were revealed this term to create a majorinternational hub at Prestwick and in October 2003,


approval was given to build a new £120m air trafficcontrol centre employing 600 staff.

In terms of business development, Scottish Airportsannounced, in May 2002, that £60m would be spentover the next 5 years at its airports, in an effort toboost the number of direct flights to/from Scotland andin October 2003 announced plans to invest a further£500m over 10 years, if the growth predictedmaterialises. In addition, the Scottish Executiveannounced, in November 2002, a £6m RouteDevelopment Fund to attract budget airlines toScotland. Major new routes won this term fromGlasgow include Philadelphia (US Airlines),Toronto/Calgary/Ottawa/Halifax/Edmonton/Vancouver(Zoom Airlines) and, Dubai (Emirate Airlines).

On the plus side, in January 2003, low cost operatorBMIBaby, (BMI British Midland’s budgetalternative), opened a 25-strong national reservationand customer service centre in Glasgow at 225 BathStreet, with TeleTech managing the centre. In addition,in March 2003 Scottish airline flyglobespan.comannounced a new reservation call centre in SauchiehallStreet, with some 50 new jobs. However the majorannouncement this term came in February this year,when British Airways indicated it planned to close itsreservation call centre in Waterloo Street by November2004 with the loss of 350 jobs.

Following two good years of growth over 1999 to 2001when employment rose from 120 to around 320,staffing levels have stabilised at Direct Holidays(Granite House, Stockwell Street). The company, one ofthe UK’s leading tour operators and part of the MyTravel Group has faced — as has most of the holidaytravel trade — difficult market conditions over the pastyear. The same conditions have affected ThomsonTravel Group, (subsidiary of German travel firm Tui),which in November 2000 relocated from MorrisonStreet, into a new custom-built call centre at CardonaldPark with a target employment set at 1,000. The newcentre which brought together existing staff from thegroup’s other operations — Lunn Poly and PortlandDirect — was rebranded as Tui UK. The facility had aworkforce complement of 730 at April 2003 which fellto around 600 in October 2003. However theseasonality of the business will allow for recruitment tothe 700 level over the short term.

“Hilton Hotel Groupopens new globalcustomer centre inAnderston providing140 jobs.”

Scotsman, 12 June 2001

Staying on the holiday side of things, the Hilton hotelchain launched its new high-tech call centre, HiltonReservations, alongside its administrative, accountingservices division in Cadogan Square, Anderston, inJune 2001. The combined facility now has a totalcomplement of 450 staff as at November 2003compared to 320 staff a year ago working for HiltonInternational, Hilton Reservations Worldwide,LivingWell Health Clubs and Ladbroke Casinos.

RailImmediately post-privatisation, the prospects for therail sector never looked more promising, with massiveinvestment scheduled over the next decade and apolitical will, at both the UK and EU levels, to developthe railway markets. The past three years, however,were not a period of good experiences, affected as itwas by the recovery from the repercussions of theHatfield incident; the collapse in 2001 of Railtrack andthe repercussions of its legacy — a backload of work,inefficiency, low performance and, declining publicconfidence in a rail industry which failed to deliver.Moreover, given the number of ‘plans’ and ‘reviews’being rolled out by various parties, it is difficult todiscern the status of the figures — whether they arelegally binding or merely statements of political intent.

In January 2003, the Strategic Rail Authorityannounced its 2003 Strategic Plan, which pencilled inan urgency to cut spending into schemes that producedisappointing results for users, or potential users, inorder to control costs and achieve better performanceon the existing network. Nationally, the plan virtuallyinvolved a freeze on new UK projects over the next twoyears. The main projects for Scotland within the planincluded congestion easement at Waverley Station,(Edinburgh), airport rail links to both Glasgow andEdinburgh Airports, and new railways from Stirling toKincardine, Milngavie to Larkhall. Perhaps significantly,each of these schemes involve Scottish Executivestudies and the Scottish Transport Review suggeststhat larger Scottish projects will only be delivered if theExecutive is the principal funder. The major concern is


that the Executive will only move ahead throughpartnership funding and expects the SRA to assistfunding for such major schemes. For Scotland, bothSRA and the Executive have powers to grant fund newrail infrastructure. The SRA however has indicated ithas no money for such projects until the outcome ofthe government’s spending review in 2004 — which islikely to see schemes either delayed or scaled backunless the government pumps in more money or allowsthe railway bodies to carry more debt. Proposals forfurther reform of the UK network are expected thissummer following the January 2004 announcement bythe government that the post-privatisation structurewas fragmented and dysfunctional.

For Glasgow, the priorities involve the Executive’sproposed Glasgow Airport Rail Link (£140m) andexamining the feasibility of a £38m cross-city rail link(Crossrail). The latter project is a proposal byStrathclyde Passenger Transport for which theScottish Executive awarded £500,000 in November2003 to the SPT to bring the project to a sufficientlydetailed stage of development to allow the Authority topursue Parliamentary Powers for construction.

Meantime the Executive, mindful that it is committed topursuing a number of costly infrastructure projects andof the failure of the industry to deliver in the past has,this term, announced a new Transport Agency forScotland is to be set up in 2004 (on an interim basis —to become fully functional on April 2005). This newunitary transport body will take a remit for overseeingthe delivery of large and complex schemes such as theairport rail links and take responsibility for an annualbudget of £1bn by 2006.

Railtrack, (which owned the tracks, stations, signallingand provides access to track and stations for use bytrain operators), had planned to undertake a £27bninvestment programme for the UK over the next 10years. In October 2001, however, Railtrack, on the backof massive debt, was put into administration and inOctober 2002, Network Rail (NR), (a non-profitmaking company), took over the running of theUK’s rail network. The new company focuses onmaintenance and renewals and not enhancements inScotland leaving new projects to joint-venturecompanies. This term Network Rail — in a move todrive out inefficiencies — took all its maintenance workin-house.

The strategic West Coast Main Line route, (Glasgow’sprincipal rail link to the south and Britain’s busiestmixed traffic rail corridor), was the biggest outstandingissue to be resolved before Railtrack could be removedfrom administration. Infrastructure upgrade estimates

for the line rose from £2.1bn in the late 90’s, to £13bnby 2001, with the inclusion of new Train Protection andWarning Systems and major junction remodelling. Thiswas to be the largest investment project undertaken inBritain’s railway infrastructure in over a generation.Under new proposals by the Strategic Rail Authority,however, the project is to be scaled back with a £9.9bncost cap to focus on safety, reliability and improved,(but not previously targeted), journey times. Moreoverthe upgrade will not be fully complete until 2008, 3years later than first planned. Glasgow to London 10stop journey times are set to reduce incrementally fromthe present 5 hours 35 minutes to 4 hours 18 minutesby 2007/08, (following renewals and maintenance for125 mph running). On the Glasgow ‘fast’ service, thecurrent 3 stop, 5 hour 6 minute schedule will reduce toa 2 stop, 4 hours 18 minute journey by 2007/08.However, the 3 hours 55 minutes time, promised underRailtrack for 2005, has been delayed indefinitely.Moreover, the Rail Regulator in December 2003reiterated that NR’s new £22.2bn funding package overthe next 5 years should ensure that WCMLmaintenance work planned for 2004/05 still goesahead. After 2005 however some improvement workmight be delayed in order to allow NR to introducemore cost savings. Virgin Rail — the network’s trainoperating company — has, however, committed some£1bn in new high-speed Class 390 ‘Pendolino’ tiltingtrains for the line. Virgin Trains, which established anew Scottish business division at Caledonia Chambers,Union Street, (as part of its drive to double the amountof rail travel to England over the next five years), hasrelocated its 6 management staff to Queens House, 19St Vincent Place. Virgin has a further 100 customerservices staff at various facilities throughout the city,including Polmadie Depot.

In May 2001, the then (Shadow) Strategic RailAuthority admitted that even upgrades of the East andWest Coast Main Lines may not be sufficient to copewith expected levels of demand and, accordingly, werelooking at options to introduce a new high-speedNorth-South rail link. In April 2002, the Authorityannounced that it was currently exploring route optionsfor a new 190mph line from London to the North ofEngland, in what would be Britain’s equivalent to theFrench TGV network. Indications suggest the line —which would not be operational until 2020 or beyond —would not run to Scotland with industry analystssuggesting this situation might well reflect insufficientpassenger revenues between Scotland and the south.Nonetheless, overall journey time to Scotland, (viaconnections), would reduce from the current 5 hours tounder 4 hours with target levels set just over 2 hours.


The cost of the high-speed network could be around£36bn, but it is not known if potential sources offunding have been examined. It was expected that theSRA would conduct a public consultation on theproposal, however in January this year it was reportedthat plans had been put off indefinitely with theDepartment for Transport suggesting the industry firstneeded to sort out improvements to the existing eastand west coast routes between Scotland and London.

With a steady build-up in UK rail freight, (a +41%volume growth since 1995), and an expected +80% risein goods carried over the next 10 years, increasingattention is now being paid to freight issues. Oneproject already on the table is Central Railway’sproposal to build and operate a 600km, £5.5bn railway,between North West England, (Liverpool), and NorthernFrance, (Lille), via the Channel Tunnel, with ongoingaccess to Ireland. Central is currently working up anextension to the project to the West of Scotland and, ifit can be made to work commercially, the companywould want to include it in the main scheme. Thepromoters intend that the project will be fully financedfrom the private sector. Parliamentary powers will benecessary before construction can commence and thecompany has been pressing the government to supportthe introduction of a hybrid bill.

The changes in the railway industry over the past fewyears has, however, brought benefits to FirstEngineering — the former British Rail InfrastructureEngineering Division — headquartered at BuchananHouse, Port Dundas Road, (300 staff). The companycurrently maintains all of Scotland’s rail infrastructureand undertakes 60% of track renewals. In April 1999,First agreed a £330m, 5-year, Scotland-widemaintenance contract with Railtrack and in June 2003was the preferred bidder for the next £200m/2 yearcontracting round. In August 2002, First was acquiredin a £65m deal, (subject to regulatory approval), by theWest Yorkshire support services company, PeterhouseGroup. In terms of turnover and employment, First isone of Scotland’s leading engineering operations andhas increased employee numbers UK-wide by 700 to2,800 over the past three years, of whom 1,700 are inScotland. Peterhouse had indicated plans to continueto recruit an additional 370 staff to First over the courseof 2003. However with Network Rail planning to takemaintenance work back in-house, the impact on Firstand indeed Peterhouse is not yet known with someform of takeover/merger/staff transfer not out of thequestion. Network Rail Infrastructure (ScottishRegion) itself now has around 380 staff at the samelocation in Glasgow as First (Buchanan House). In

terms of administration/office staff, some realignmentof Network Rail’s facilities nationally is expected inorder to reduce the cost base. One of the first moves,announced in December 2003, was the intention toclose 4 UK train planning departments — including theone in Glasgow (19 staff) — and concentrate staff atLeeds, Birmingham and London. Glasgow’s other mainrail contractor, Jarvis Rail, announced in March 2003its signalling and projects office at Shettleston, (set upin 2001 alongside its track renewals operation), was tobe phased down over last year, with the loss of 70 jobs.The cutback was due to the ending of contracts withNetwork Rail. Jarvis was expected however, to retain its120-strong sister division at Shettleston.

Staying with the engineering side of things, BabcockInternational, in 2000, placed its subsidiary Railcare —which maintains and refurbishes railway rolling stock —on the market. With a potential sale to Adtranz calledoff, Babcock announced 250 Railcare redundanciesnationwide, in an effort to move back into profit andmake the company more attractive to a wider range ofpotential buyers. Employment at Springburn wasreduced from 230 to 180. In May 2001, the operationwas acquired for £6.6m by French rail engineers,Alstom. Railway analysts indicate the change ofownership could be positive for Springburn, as Alstomhas the contract to maintain ScotRail’s rolling stock,which previously was sent to England for repair andmaintenance. In April 2003, Strathclyde PassengerTransport announced a £1.5m contract to Alstom, torefurbish a 48-strong fleet of trains. A further £1.5mwill be spent installing information, lighting andcounting systems in 28 of the trains. Alstom is alreadyrepresented in the City through Alstom PowerConversions, (electrical instrumentation and controlengineers), at Thornliebank, with a 125-strongworkforce. In September 2003 however, the FrenchGovernment announced a £2bn rescue package forAlstom (which had run up a £3.4bn debt) andrestructuring followed. Glasgow operations are believedto be relatively unaffected.

In March 1999, Eurostar, (which is run by French andBelgian Railways, and Eurostar UK, and chargedwith the delivery of rail services, across the UK, to Parisand Brussels), posted a £90m operating loss andconfirmed that passenger targets were totallyunrealistic. In February 2000, the long-awaitedDepartment of Transport report into Eurostar, asexpected, concluded that regional services to and fromScotland and Wales, and the English Regions, to Parisand Brussels, would not be viable. Scotland is seen toproduce particularly low passenger loadings and the


study, prepared by Arthur D Little, indicated thatScotland’s regional airports offer a variety of low-costfares and convenient timings, which Eurostar wouldfind hard to match. Several organisations, however,including Strathclyde Passenger Transport, calledfor the Government to underwrite losses of up to £15mper year, in exchange for the non-cash benefits ofextending cross-channel services to the remoter partsof the UK. Subsequently, however, a British RailwaysBoard review upheld the study’s findings and furtherconfirmed that the only prospect of direct EurostarServices north of London was if appropriate bodies inthe ‘regions’ subsidised them. In January 2002, theScottish Executive indicated that it had no plans toseek a further review.

This situation compounds the disappointment in 1999,when the Channel Tunnel Rail Link Consortiumannounced that this link would be built in two stages,with the part north of the River Thames, running into StPancras Station, being deferred for up to 10 years.Effectively, this means that, for regional communitiesalong the West Coast Main Line, as for all regionsNorth of London, the benefits of a direct rail line withEurope will be delayed at least into the next decade.

Staying in the south, Eurotunnel announced, inJanuary 2001, a £1m feasibility study for a secondChannel Tunnel, which might include a £3bn rail tunneland a £2.7bn road tunnel. Interestingly, the latestfigures indicate the Channel Tunnel is underused withonly 6.5 million passengers and 2 million tonnes offreight against ‘target’ levels set 9 years ago of 14million passengers and 5 million tonnes of freight.

National Express Group, which runs theaforementioned Eurostar UK, in conjunction withBritish Airways, also operates the ScotRail franchise.The current franchise is due to run out in April 2004and SRA has announced a shortlist of 3 bidders —National Express, FirstGroup, and Arriva. However inJanuary this year, the Office of fair Trading referredFirstGroup’s bid to the Competition Commission onthe grounds that the company also carries 186mpassengers per annum on its bus services in Scotland.(FirstGroup incidentally has a significant presence inGlasgow with some1,970 employed in its bus depots atVictoria Road, Tollcross Road and a new £4.25m garagefacility at South Street Scotstoun.) In terms ofemployment, ScotRail manning levels, which werethinned down from 4,100 to 3,800 in the run up toprivatisation, (April 1997), continued to fall, bottomingout at 3,000 in 2001. However, recruitment rounds fordrivers, conductors and inspectors have raised the total

complement to 3,150, at August 2002. Within Glasgow,staffing levels at ScotRail’s HQ at CaledonianChambers, (Union Street), have fallen from 250 in 1997to around 95.

In an effort to tackle the skills shortage within therailway sector, in areas such as train drivers, signallingengineers and designers, local consulting engineers,Scott Wilson, (86 staff, Park Circus), launched, inSeptember last year, a Scott Wilson Railways division,operating from Buchanan House, Port Dundas. Thenew facility will undertake to train 25 people per yearin track design, in conjunction with the city’s StowCollege.

RoadsOne major theme continuing to be pursued by thegovernment and, indeed, the Scottish Executive, interms of road transport, is the objective of stabilisingroad traffic over the next two decades. Options beingpursued involve controlling the use of cars on the road,by improving public transport availability, convenienceand comfort: by the possibility of road pricing schemes,(with the associated income being spent on improvingtransport infrastructure), and, more directly, throughincreases in fuel and road tax.

A key development in this sector came in January2001, when the Scottish Executive confirmed thebuilding of a three-lane, three-junction M74 extension,connecting the M74, which currently ends at FullartonRoad in the east end of the City, with the M8, south ofthe Kingston Bridge. With a cost of £437m, the projectis expected to site start in 2005 (subject to the outcomeof a public enquiry) and take three years to complete.The extension will help secure economic benefit,through improved transport links and accessibility to 16strategic employment locations along the route and tothe west of the City. The East End Regeneration Route,which will connect the M8/M80 with the M74 has nowbeen designed and will shortly be submitted forplanning consent.


“Scottish Executive’sconfirmation of £250mM74 Extension bringsreal opportunities forthe economicregeneration of WestCentral Scotland.”

Business AM, 23 January 2001

Elsewhere, the £40m Glasgow Southern Orbital RoadScheme — a 6 mile dual carriageway between EastKilbride and the southern end of the M77 near NewtonMearns — was approved in June 2001. In September2001, the Executive indicated that both Glasgow andEdinburgh City Councils should look at how tramswould fit into existing transport networks.

On the company side of things, there has been anupturn in activity in the distribution sector. In 2002,Menzies Distribution, (wholesale supply ofnewspapers and magazines), has closed its depots atBlochairn, (90 staff), Kinning Park, (132 staff), andHamiltonhill, (92 staff), and relocated business andstaff to a large distribution supercentre at the Junction,(Fullarton Drive, Cambuslang). In addition, drinkssupply chain firm, Tradeteam, (a joint venture betweenCoors and Excel), relocated its operations fromClydesmill Place to an £8m, 135,000 sq.ft. distributioncentre just over the city boundary at Dale Avenue inCambuslang in May 2002, with a loss of 150 jobs to thecity. In addition, in September 2002, British Bakeriesopened distribution functions at a new 91,150 sq.ft.facility, on a 7.5 acre site at EuroCentral, Lanarkshire,with the transfer-out of around 50 posts from existingdistribution operations at Duke Street.

Waterfront, Shipping and PortsIn November 2002, Clydeport, (Robertson Street), wasacquired by Manchester developers Peel Holdings for£184m. The jewel in Clydeport’s extensive propertyportfolio is undoubtedly the £500m waterfront village, ‘Glasgow Harbour’, on a site 2.5km long betweenthe Scottish Exhibition Centre and the Clyde Tunnel.The scheme is planned to accommodate up to2,500 new homes, 1.5m sq ft of commercial officespace and 500,000sq ft of retail and leisure facilities.Granted outline planning permission in March 2001,

the development is expected to create some 2,900man-years of construction jobs and around 3,000permanent jobs on completion at the end of thedecade. Site work started in August 2002 on the initialresidential phase, where a consortium including BryantHomes, Cala Homes and Park Lane Caledonian areto build the first 650 homes

“The £500mredevelopment ofMeadowside Quay(Glasgow Harbour) willdeliver a quantum leapforward in the image,infrastructure andamenity of Clydesideon a scale not seensince the industrialrevolution.”

Scotsman, 21 March 2001

On the south bank of the Clyde, Koetter KimArchitects, (credited with much of the design work forCanary Wharf, London), have been commissioned todesign a masterplan for the economic redevelopmentof the 60-acre Pacific Quay. With a number of anchorprojects already on-site, (including the £75m, 120-jobScience Centre and 30,000 sq.ft. headquarters of theScottish Criminal Records Office), or in negotiation,(a new £30m, 1,200-staff BBC Headquarters), theproject also proposes a £25m media village for TV, filmpublishing and media companies. In addition, planningconsent was given, in 2002, to develop the £15msecond phase of the Pacific Quay Developmentsbusiness park, which includes 60,000 sq.ft. of officespace. In January 2003, Scottish Enterprise, whichhas overall responsibility for the Pacific Quaydevelopment, estimated that 1,900 net new jobs wouldbe created by 2006, instead of the original target levelof 3,500, and have asked the European Commission,(which grant-aided the project), for a six-yearextension, to 2012, to meet the target.


“Pacific Quay . . . thekind of qualityinfrastructure toreposition Glasgow asa leading player in thenew age of theknowledge economy.”

Scotsman, 21 March 2001

Complementing the above schemes, Wilson Bowden,(housebuilder and property developer), was granted, inSeptember 2001, a combination of outline and detailedplanning consents for the £50m Phase 1 of a £120moffice, retail and housing, Atlantic Square development,off the Broomielaw at Atlantic Quay. The detailedconsent is 76,000 sq.ft. of speculative-build offices,which will form the focus for a £300m ‘InternationalFinancial Services District’, (IFSD), which will cluster400,000 sq.ft. of floorspace, 62 luxury flats, shops,cafes and restaurants. Some 4,000 jobs are associatedwith the project, which will abut the existing 600,000sq.ft. Broomielaw developments, which house theheadquarters of BT, ScottishPower and ScottishEnterprise.

In addition, in August 2002, developer Bishop Lochannounced proposals for a £100m/950 job City Dockproject at Govan engraving docks on the south bank ofthe Clyde, which includes provision for 500 houses, ahotel, restaurants, offices and shops.

“SECC unveils £350mmaster plan creating avision for the future ofthe Scottish Exhibition& Conference Centre.”

Scottish Property Network, 15 October 2003

Wrapping up a high activity period on the waterfront,October 2003 saw plans unveiled for a £350mredevelopment of the 64 acre Queens Dock home of

the Scottish Exhibition and Conference Centre. Thedevelopment, named QD2 because it marks thesecond redevelopment of Queens Dock, proposes totransform the site into a complete exhibition,conference and entertainments complex. The focus willbe on a National Arena designed to become a worldranking entertainment venue and making SECC uniquein Europe by having a purpose built exhibition centre,conference centre and arena all on one site. Overall QD2, which has been approved in principle bySEC Ltd has the potential to inject £21m into the localeconomy each year, sustaining 806 jobs, adding to the £86m and 3,500 jobs generated by SECC annuallyannually at present.

Tying into these projects are plans for new bridgewaysover the Clyde. Approval has already been granted foran £8.5m Finnieston/Pacific Quay roadbridgealthough this is currently awaiting the outcome of alegal objection. In September 2003, proposals for twomore bridges were announced — a Tradeston/Broomielaw footbridge linking the InternationalFinancial Services District with the south bank of theriver to cost £13m plus an associated £26m publicrealm improvement and a Glasgow Harbour/Kelvinbridge (£5m).

Current developments, such as ‘Glasgow Harbour’,along with ‘Pacific Quay’, ‘Queens Dock’, ‘City Dock’and the ‘Broomielaw/IFSD’ — in conjunction withother developments, such as at Tradeston, (£200mhousing), Oatlands, (£100m housing) — in total involvearound £1.8bn of potential investment — are kick-starting Glasgow’s waterfront transformation. In this,Glasgow is following other port cities such asVancouver, Toronto, London, Liverpool, Newcastle,Belfast and, indeed, Edinburgh, which have eithersuccessfully implemented, or are undertaking, suchmajor waterfront developments.

On the corporate side of things, shipping consultancy,Drewry, predicts an upsurge of consolidation in theworld shipping sector, as several carriers have a largeamount of debt. Glasgow, which is one of the biggestcentres of ship management in the world, has seenownership of three of its key players change over thepast 2 years. In February 2001, Finnieston-based,(Skypark), Acomarit Maritime Services and the staffin its ship management arm was acquired by Monacoshippers, V.Ships—the world’s biggest shipmanagement company. Currently V-Ships has around230 staff in Glasgow. In May 2001, the privately-ownedJ & J Denholm Group merged its ship management


business, Denholm Shipping, (Milton Street, 65 staff),with the Anglo-Eastern Group, (Hong Kong), and wasre-branded Anglo-Eastern Ship Management tobecome the world’s fifth-largest ship managementcompany. In another move, Stirling ShipManagement, (Woodside Crescent, 27 staff), wasacquired by US group Seacor Smit in April 2001 andthe business relocated to Aberdeen in 2002. However,ship owners/managers Harrisons (Clyde) nowoperate from Woodside Crescent with a staff of 7. Thetwo other major operators in Glasgow are Bermuda-owned Norbulk, which has 65 staff at Glassford Street,and Australia-based ASP Seascot, with a 15 staffcomplement at Carrick Street.


Development ActivityIn August 2003, an analysis by the City Council ofdevelopment activity values in 5 key sectors inGlasgow, over the period April 2002-March 2003, foundthat the city had maintained its attractiveness to thedevelopment industry as a whole. Projects eithercompleted or under construction amounted to some£1.23 billion in value, and longer-term developments,(those with consent but yet to start), totalled a further£1 billion. These figures, up respectively 20% and 7%on the previous year, represented encouragingprogress for the City, translating into additionalfacilities, enhanced environments and increased jobopportunities. Across the sectors, residential activityexceeded expectations, office and industrialdevelopment staged a modest comeback in contrast tothe comparative inactivity of the previous year, whileboth the retail and hotel/leisure sectors maintainedtheir significance for the City. The position withinindividual development sectors, at March 2003, withrespect to the level of outstanding consents, (boththose granted 2002-03 and pre-2002, yet to beimplemented), was:

• Residential—£533m

• Office and Business—£259m

• Retail—£96.5m

• Hotel and Leisure—£71m

• Industry—£38m

National Office MarketsThe CB Richard Ellis Scottish Quarterly Index for thethird quarter of 2003 shows (Table 16), that industrialproperty matched retail property in respect of totalreturn, whilst office property preformed below the AllProperty average. Office property rental growth wasalso in negative territory.

Table 16: CB Richard Ellis Scottish Quarterly Index (Year toend September 2003)

Total Return Capital Growth Rental GrowthALL PROPERTY 9.6% 2.1% -0.9%

OFFICES 7.2% -0.8% -2.5%RETAIL 11.2% 4.4% 0.8%

INDUSTRIAL 11.2% 2.7% -0.5%

Source; CB Richard Ellis

Glasgow Office MarketIn the 6 months to September 2003, Ryden/GCCestimated gross take-up at 41,528 sq m, giving a totaltake-up for the 12 months to September 2003 of 70,796sq m, representing a significant fall of over 32,000 sq mover the level of take-up for the previous 12 months.(Figure 2).

Figure 2: Take-up of Office and Business Floorspace inGlasgow 1993-2003

Key lettings over the period included GlasgowHousing Association taking 5,356 sq m at GraniteHouse, Stockwell Street: Strathclyde Police securing1,143 sq m at the Pinnacle, 255 St Vincent Street andMortgages PLC taking 878 sq m at the SpectrumBuilding, 55 Blythswood Street.

Ryden/GCC estimate available office accommodationin the city at 299,951 sq m at September 2003,representing an increase of 61,828 sq m sinceSeptember 2002, (Figure 3). CB Richard Ellishighlights that modest overall demand, together withthe completion of new space has contributed to thisincrease in available accommodation.

Figure 3: Available Office and Business Floorspace 1994 to2003

CB Richard Ellis indicates that the city’s diverseoccupier base, allied to relatively limited ready-to-occupy Grade A space in the city centre, has protectedheadline rent levels at £247 psm (£23.00 psf). CBRichard Ellis also forecasts that the current subduedmarket conditions are likely to prevail in the near term.Ryden confirms that headline rental levels areexpected to hold stable at £231/£247 psm(£21.50/£23.00 psf), while rental levels for top qualitybusiness park space has remained static at £161/£188psm (£15.00/£17.50 psf).

City Centre Office DevelopmentsIn the twelve months to September 2003, only two majoroffice developments were completed. These were CrownDilmun’s 15,700 sq m development at Robertson Streetand the 1,800 sq m office element of FM DevelopmentsLtd Pinnacle Building, 255 St Vincent Street.

Property Markets


Seven developments were under construction. Theseincluded Central Exchange, 20 Waterloo Street by CalaProperties creating 8,000 sq m of floorspace; the 9,500sq m Sentinel development at 103 Waterloo Street byKenmore Wellesley House Ltd and the 6,800 sq mdevelopment by Walker Group (Scotland) Ltd at 200Broomielaw.

Eight proposals were granted planning consent in thetwelve months to September 2003. These included the26,000 sq m Aurora Building at 104 –136 BothwellStreet, by GLP Intressenter AB; a 11,400 sq mdevelopment behind retained façade by TeeslandGroup Plc at 110 St Vincent Street and, an 8 storeyoffice development by Taylor Woodrow Property CoLtd at Cadzow Street/Argyle Street, creating 12,300 sqm of floorspace.

Table 17: Office Developments in Glasgow City Centre (over1,000 square metres gross floorspace), September 2003

Project Status No of Projects Gross Floorspace(square metres)

Completed 2 17,000 (Oct 02—Sept 03)

Under Construction 7 54,750

Planning Permission but not 18 205,470yet under construction

Awaiting Decision 4 42,950*

Source : GCC Development and Regeneration* (floorspace not specified for 1 application)

Four applications were awaiting decision at the end ofSeptember, including the City Science development atCollege St/George St/High St/Ingram St by ScottishEnterprise Glasgow for 36,100 sq m; and ElectricitySupply Nominees Ltd’s 4,950 sq m refurbishmentand extension of offices at 145 St Vincent Street.

Non-City Centre Office DevelopmentsThe City Centre has traditionally been the focus formajor office developments. Office developmentsoutside the City Centre have generally been of asmaller scale than those in the City Centre.

Table 18 : Office Development in Glasgow—Outside CityCentre (over 1,000 square metres gross floorspace),September 2003


Completed (Oct 02—Sept 03) 11 14,920


Planning Permission but not 29 122,380*yet under construction

Awaiting Decision 6 16,150**

Source : GCC Development and Regeneration * (floorspace not specified for 3 applications)** (floorspace not specified for 1 application)

Eleven developments were completed in the twelvemonths to September 2003. These included a 2,060 sqm Class 4 unit at Eagle Street/Borron Street by LuddonConstruction Ltd; the extension of Skypark by AlliedLondon and Scottish Properties to provide anadditional 3,260 sq m of office space and, an officeconversion of 1,800 sq m by Logan ConstructionManagement Ltd at 213 Orr Street.

Nine developments were under construction. Theseincluded 4 office units totalling 2,500 sq m byBusiness Homes (Scotland) Ltd at GlasgowBusiness Park; 2,650 sq m office units at CardonaldBusiness Park by Pacific Shelf and the second phaseof Ibrox Business Park by Modular Holdings Ltdcreating 2,750 sq m of Class 4 business space.

Twenty four proposals were granted planning consentin the twelve months to September 2003. Theseincluded a 3,700 sq m, 3 storey office development byShepherd development Co Ltd at Cardonald Park;office pavilions totalling 4,100 sq m by D Campbell &Co Ltd at Cambuslang Investment Park and, a 13,400sq m Class 4 proposal by Park Lane DevelopmentsLtd at South Street/Balmoral Street.

Five developments were awaiting decision including aproposal by Govan Initiative Ltd for a Class 4development totalling 13,290 sq m at Teucharhill and, aconversion by Glasgow Buildings Preservation Trustto create 980 sq m of office space at 59 Macrie Road.

The Industrial MarketGVA Grimley reports the distribution sector is stilldriving demand in the industrial sector, however,several surveys have revealed improved businessconfidence in respect of manufacturing output and thatthis is positive news for the industrial property marketin Scotland. In the West of Scotland, both GVAGrimley and Ryden highlight that the greatestdemand is for smaller units up to 1,400 sq m.

Several significant developments with longer-termimplications for business location and employmentopportunities, both in and around the City, have beenannounced over the past 2 years. In Spring 2000, theCity Council and Scottish Enterprise Glasgowindicated that, following the momentum achieved bythe Strategic Business and Industrial Sites Programme,(launched in 1996 and involving the provision of goodquality sites at Robroyston, Glasgow Business Park,College Business Park, Cambuslang Investment Park,Pacific Quay, Cardonald Park and the West of ScotlandScience Park), a Phase II programme would beintroduced. This second phase of sites includesRobroyston, (South), Gallowgate, Dawsholm andQueenslie.


In terms of key new developments, the City Counciltogether with South Lanarkshire Council andScottish Enterprise is working up a majorbusiness/residential/leisure regeneration project ‘ClydeGateway’ covering Dalmarnock, Shawfield, Oatlands,London Road, Farme Cross and Rutherglen TownCentre. The £600m project has a 15–20 year timescaleand allows for a projected 150,000 sq m of businessspace, up to 2,000 net new jobs and some 4,500housing units

Analysis of Scottish Property Network, reveals that inthe year to September 2003, 85,956 square metres ofindustrial floorspace was taken up within the City. Thisrepresents a reduction of 17% over the previous 12month period. SPN also revealed an increase in thelevel of industrial premises being marketed. AtSeptember 2003, 317 vacant premises, providing340,899 square metres of floorspace were beingmarketed in the City. Smaller units less than 500square metres represent almost 50% of all availableunits with more than half the available space beingmore than 20 years old.

Table 19 shows industrial development activity in the 12months to the end of September 2003.

Twenty five developments were completed in the twelvemonths to September 2003. These included 2industrial/warehouse units extending to 6,410 sq m atCambuslang Investment Park by Wilson BowdenDevelopments Ltd; 7 industrial/warehouse unitstotalling 5,887 sq m by the IO Group Ltd at GlasgowBusiness Park and, a 3,645 sq m industrial/warehouseunit for Euro PC at Cardonald Business Park.

Eight developments were under construction, includinga 2,322 sq m warehouse unit at Glasgow Business Parkfor ACS Clothing Ltd; a 9,869 sq m wholesale cashand carry warehouse for Sher Bros Ltd at 29 KilbirnieStreet and, industrial/warehouse units totalling 10,460sq m by C&W Assets Ltd at Cardonald Park.

Table 19: Industrial Developments in Glasgow (September2003)


Completed (Oct 02—Sept 03) 25 47,349


Planning Permission but not 48 114,413* yet under construction

Awaiting Decision 18 24,517**

No details for * 4 Applications and ** 1 ApplicationSource : GCC Development and Regeneration

Twenty five proposals obtained planning consent in thetwelve months to September 2003. These included aClass 4, 5 & 6 development by SilverbankDevelopment Co Ltd at 128 Broomloan Roadextending to 10,000 sq m: a 1,750 sq m warehouse unitat 42 Watt Street by Haslemere Estates Ltd and,industrial units extending to 2,225 sq m by NewsteadProperties Ltd at Anniesland Industrial Estate.

Eighteen developments were awaiting decisions atSeptember including industrial/warehouse unitsextending to 4,650 sq m by Hanover Property UnitTrust at 31 Weardale Lane: a 2,600 sq m industrial unitby Bruce Contracts at Brand Street and, workshopunits by Citylink Developments Co Ltd at CarmichaelStreet/Woodville Street extending to 1,632 sq m.

Hotel and Leisure MarketsDevelopment activity in Glasgow’s hotel marketcontinues to be significant, although the slowing downin the pace of development, noted in previous editionsof the Monitor, continues. Certain earlier proposalsappear to be stalled, others now involve conversion tostudent or serviced flats rather than hotelaccommodation, and overall there has been a falling offin the number of new proposals coming forward. Thisis hardly surprising, however, given the high level ofactivity in the past few years.

In the City Centre, recent openings include AccorUK’s twin hotels (Novotel and Ibis), providing a totalof 280 rooms, at West Regent Street/Pitt Street, theMilton Hotel (Washington Street/Argyle Street) with140 rooms, MWB’s Radison SAS Hotel with 251rooms, bars, restaurant and health/leisure club atOswald Street/Argyle Street, the 321-room Jury’s Innon Jamaica Street, and Metroloft’s office conversion toprovide the Somerset Merchant City Hotel (a 102-room serviced apartment hotel in Trongate).


“The new £25 millionJury’s Inn Hotel is thelargest in Scotland. The321-room hotel openedits doors on August 22,creating 110 jobs. Thethree-star hotelincludes 13,000 sq ft ofconference space andwill be the biggest inthe country, eclipsingthe 319-room Hilton inthe City Centre.”

Evening Times, 26 November 2003

A number of other hotel proposals have planningconsent or are the subject of current applications. Inthe City Centre, the investment pipeline continues tobring forward proposals for new hotels and theexpansion and improvement of existing hotels. Thedevelopment roll-call in City Centre currently includesthe following:

With Planning Consent:—

• Centre House Hotels’ proposed conversion ofoffices to a 110-room hotel at 34 Queen Street;

• McMillan Hotels’ proposed pub and 26-roomhotel at 77 Queen Street;

• Bath Hotels’ 19-room extension to Bewley’sHotel, Bath Street;

• MyHotel/Pearl Assurance’s proposed conversionof offices to an 81-room hotel at 141 West GeorgeStreet;

• Thistle Hotels’ proposed 120-room extension atCambridge Street;

• A 30-room extension to Holiday Inn Express at161 West Nile Street;

• Milton Hotels’ proposal to convert the former ArtsCentre at 12 Washington Street to an apartmenthotel with 30 rooms/apartments; and

• SEG’s proposed mixed-use development at CollegeStreet/Shuttle Street, incorporating a proposal for a150-room hotel.

Other Proposals (not yet with Planning Consent):

• Conversion of the former Strathclyde RegionalCouncil offices at India Street into a four-star 320-room hotel;

• Ramada Jarvis’s proposed 91-room extension totheir Ingram Hotel at 201 Ingram Street; and

• An application by Stow College for a mixeddevelopment including hotel beside their campus atShamrock Street.

The hotel development scene remains active in otherparts of the City. Campanile’s 106-bedroom hotel andbistro restaurant has recently opened adjacent to theSECC, and there are several other developmentscurrently in the pipeline including:

• A 40-room Whitbread Travel Inn, adjacent toJunction 2 of the M80 at Robroyston Road/SaughsRoad;

• Arlington Securities’ proposal to erect ahotel/leisure development at Springhill Farm, on theM8 at Easterhouse;

• Proposals for two hotels within the GlasgowHarbour scheme on the north bank of the RiverClyde at Partick, including a 5-star hotel in theYorkhill section and a second hotel (200 rooms) inthe Castlebank section;

• Also on the Clyde waterfront, a mixed developmentat Govan Graving Dock, by City Canal Ltd,including hotel development accommodating 300rooms;

• Meridian Developments’ proposed mixed-usedevelopment at Waukmill Glen, Darnley (beside theM77), to include a hotel/restaurant and fitness club;

• AB Hamilton Ltd’s proposal for a travel inn, puband restaurant at 1227 Cumbernauld Road, and

• Leewood Investments’ mixed-use proposals at350 Helen Street, Govan, including a 40-room hotel.


“A new £5million hotelhas been officiallyopened in Glasgow.The 106-roomCampanile Hotel,which will targetbudget travellers, wasofficially launched byFrench chain Envergurein Finnieston, near theSECC”

Evening Times, 26 November 2003

On the leisure front, the cinema and leisure complex byUGC Cinemas at West Nile Street/Renfrew Street hasnow been completed, as has Chesterfield’s‘Glasshouse’ leisure and retail complex at GlassfordStreet (accommodating a new ‘Tiger Tiger’ nightclub)and the £10.7m extension and redevelopment of theCentre for Contemporary Arts (former Third EyeCentre) in Sauchiehall Street. Elsewhere in the City,UCG have consent to develop a further cinemacomplex as part of the expansion of the Forge Centreat Parkhead. However, there are indications that thecinema boom is petering out; G1 Group have alreadyconverted part of the Grosvenor Cinema to apub/restaurant, while the Odeon in Renfield Street iscurrently being marketed as a 105,000 sq ftretail/leisure opportunity. Meanwhile, on the southbank of the River Clyde, Heron Quays Investments(No. 1) Ltd has bought over Rank Group's SpringfieldQuay leisure park, and have obtained planning consentto expand it through a 300-job, £8million scheme toprovide a 6,000 sq. m. casino, five new restaurants /bars, and children's leisure facilities."

Other recently-completed leisure developments includethe £3million extension to Scotstoun Leisure Centre(National Badminton Centre and new sports pitches)and the new £3.7million Donald Dewar Sports &Leisure Centre at Garscadden Road, Drumchapel. Inthe West End, the ambitious ‘Glasgow Harbour’scheme on the riverfront area at Yorkhill/Partick/Meadowside is likely to contain many leisure elements,including restaurants, cafes and pubs, visitor

attractions, theatre/arena space, public performanceareas and berthing facilities for vessels. At the BotanicGardens, a £7.8million extension to Kibble Palace, toprovide a new visitors’ centre, has been approved.

The expansion of the restaurant/pub sector in the Citycontinues, but at a more muted pace as availableopportunities are taken up. The J D Wetherspoonchain has followed up its earlier ventures with two newCity Centre outlets—the ‘Edward G Wylie’ in BothwellStreet and the ‘Sir John Moore’ in Argyle Street. Avariety of concerns are pursuing proposals for large-scale late-night clubs in the City Centre, and this ishelping to promote Glasgow’s image as a vibrant andexciting 24-hour city, although not without attendantproblems for residential amenity in areas where newhousing accommodation is also increasingly beingdeveloped. Although the City Centre may be reachingsaturation point in terms of new outlets, there is stillpent-up demand by operators in the pub/restaurantsector for outlets in other parts of the City, notably theWest End.

RetailIn the past few years, Glasgow’s retail scene has beendominated by the effects of two major developmentswhich came on stream in 1999, the Buchanan Galleriesand Braehead. Although the administrative transfer ofthe entire Braehead complex from Glasgow toRenfrewshire took place in June 2002, this has notaltered the development’s significance as a majorfeature in the conurbation’s retailing scene. Togetherthese two developments have added a massive 150,000sq m to the retail stock of the City and its environs, andthere is evidence that these have caused a dampeningeffect on retail activity, in the City Centre andelsewhere. These effects may well be heightened bythe arrival, over the next few years, of other majordevelopments such as Glasgow Fort (Easterhouse),Pollok, Ravenscraig and Glasgow Harbour, which aredescribed below.

The £150m Buchanan Galleries was developed byAMP and Slough Estates. John Lewis, the anchortenants occupying a floorspace of some 23,250 sq m,are joined by Next (2,787 sq m), H&M Hennes, Boots,Wallis, Miss Selfridge, USC, Envy, Gap, Mango,Thomas Kinkade and Sainsbury. Habitat howeverhas now left the Galleries and returned to its earlierhome at Bothwell Street, to be replaced by fashionretailers Open (3,500 sq m). A further 23,000 sq m hasbeen taken by additional stores and some 70 shopunits. In the two years since opening, the Gallerieshave enjoyed buoyant trading conditions and havetransformed the pattern of City Centre shopping.

The progress of this development has stimulatedwidespread retailer and investor interest in Buchanan


Street, the City’s prime shopping location. In 2002,German womenswear retailer Olsen opened its firstUK showcase store while Scotland’s first UrbanOutfitters and Zara stores also took representationthis summer along with Miss Sixty. AtlasInvestments has consent for a proposed £20 millionretail/leisure scheme at Buchanan Street/Bath Street/West Nile Street, although land assembly problemsrequire to be overcome before this can progress;Standard Commercial Property Securities has alsobrought forward development proposals in this block.To the south, around Nelson Mandela Square, ScottishMetropolitan Property’s conversion of the formerStock Exchange to a prestige £20m retail developmentover six floors is now complete, and two schemes haveplanning consent—Pilton Land’s conversion of theformer Town House Hotel to retail use (£5m), andBritannia Life’s conversion of the Atheneum, also toretailing (£3m). North of Bath Street, Helical’s £12.5mdevelopment of the former George Hotel block housingVirgin Retail’s Scottish flagship audio store, Burton,Dorothy Perkins, Top Shop and JD Sports, has nowbeen in operation for three years.

Other parts of the City Centre’s prime pitch have alsoseen recent development activity. In Sauchiehall Street,the opening of Dunne’s Store has been followed bythe completion of the joint venture by Capital &Regional and Stannifer to redevelop the SauchiehallCentre, providing major new outlets for Primark andTK Maxx. At the other end of the ‘Z’, ownersDespaFonds has proposals for a £15m/50,000sqftexpansion to the St Enoch Centre, to create a newfrontage on to St Enoch Square.

The Merchant City continues to benefit fromdevelopment interest covering a range of retail andother commercial leisure activities. Merchant CityProperties has completed its £2.8m refurbishment ofthe Candleriggs Market to form a high-quality foodmarket, together with shops, restaurants, bars,nightclubs etc. The same company has now obtainedconsent for a retail and residential development atHigh Street, just outside the City Centre. Nearby, theGoldberg’s block (Trongate/Hutcheson Street/WilsonStreet/Candleriggs), formerly the subject ofPathfinder’s ‘Merchant Village’ proposal, has beenacquired by Selfridge’s, who is pursuing a scheme fora mixed residential and retail development including itsown £90m/20,000sq m/1,000 job Scottish flagship store,although rumours persist that the company isreassessing its proposals. If it proceeds, thisdevelopment—with its targeted 2007 opening—as wellas bringing a further prestige name to the Glasgowretail scene, should do much to revive the fortunes of

the Trongate and buttress other investment in theMerchant City. Meanwhile the opening of Scotland’sfirst TJ Hughes in May 2002 has brought additionalretailing space into this part of the Merchant City.Formerly the C&A building, TJ Hughes has reused allfour floors and added a 200 seat restaurant and café.Crown Dilmun is pushing ahead with itsredevelopment of the Ingram Street frontage of theformer Head Post Office for retail use, including outletsfor Polo, Ralph Lauren and Tommy Hilfiger.

One novel feature of retailing in the City Centre is theappearance of several new local food store outletsopened by the mainstream food operators. This followson the success of the Tesco Metro store in ArgyleStreet and Sainsbury Central at the BuchananGalleries. So far, Sainsbury has opened local stores inQueen Street, Sauchiehall Street and Bothwell Street;Marks & Spencer has also opened small format foodstores in Bothwell Street and the Central Station, whileSafeway has been trading from their new outlet in theCa’d’oro building at Union Street/Gordon Street for thepast year. The vogue for local food stores is beginningto spread beyond the City Centre, with the opening ofSainbury’s new outlet in Shawlands.

The last few years have seen the development ofseveral major new retail parks in the City, greatlyincreasing Glasgow’s representation of this retailingformat in the process. Grantchester’s £16.2mParkhead Forge Retail Park is now tradingsuccessfully, and a major expansion has now beencompleted, including a Kingfisher ‘Big-W’ and a B&QWarehouse Store. The retail park complements theexisting Forge development and augments Parkhead’srole as the commercial heart of the regenerated EastEnd. The Parkhead Forge Shopping Centre itself hasrecently been the subject of major expansion proposalsby owners Resolution Forge (C.I.) Ltd and NDProperties, to accommodate a new outlet for Dunne’sStores. An expansion of the adjacent Forge MarketHall also has consent. In the north east of the City,Stewart Milne Group has obtained outline consentfor a retail warehouse development at Robroyston,adjacent to the existing Asda and Junction 2 of theM80.

Also in the east of the City, Highland Properties hasconsent for two retail warehouse units of 10,000 andover 20,000 sq m respectively at their ‘Glasgow Gait’site at Mount Vernon, the first of which, for Focus DIY,is now in operation. Site works for the construction ofthe second unit have now commenced, with theintention of developing a ‘Home and Lifestyle Centre’.Meanwhile, Capital and Regional/Pillar


Developments’ proposal to develop a large retail andleisure complex at Auchinlea Park, Easterhouse,adjacent to Junction 10 of the M8, is now welladvanced and will open later this year. Thisdevelopment, which will operate under the title‘Glasgow Fort’, will comprise a major town centreexpansion of 37,000 sq m (recently increased toaccommodate 9,000 sq m of mezzanine space), as wellas extensive leisure facilities and is due to open laterthis year. A new superstore of 12,000 sq m will be builtby Morrison’s on the adjacent site presently occupiedby Junction 10 Retail Park. These developments, to belinked with the existing centre at Shandwick Square,will have a powerful impact on the regeneration of thearea.

“Capital & Regional/Pillar Property’s£140m, 300,000 sq ftGlasgow Fortdevelopment set toemploy 400construction Workersand 900—1,000 full-time equivalentretail/leisure jobs whenoperational: WilliamMorrison set to build12,000sq m /500 jobsuperstore adjacent toFort”

Herald, 24 September 2002

At the opposite side of the City, a number of retailproposals are emerging in the Partick area, includingthe proposed superstore development at CastlebankStreet (where Stannifer’s former interest has beenacquired by Tesco), and up to 16,000 sq m of leisure-related retail at ‘Glasgow Harbour’, along the north

bank of the Clyde between Yorkhill and Meadowside.This development has recently been taken over by PeelDevelopments, who is currently reviewing the detaileddevelopment options.

“Retail PropertyHoldings to spend£200m transformingPollok shopping centreand predict 1,000construction jobs witha further 2,700 inretail/leisure onopening in autumn2006”

Evening Times, 5 September 2003

South of the River, adjacent to Junction 2 of the M77,the Scottish Executive Development Department hasrecently given clearance for a major redevelopment andexpansion of Pollok Town Centre, and the developer,Retail Property Holdings, now has outline consent toprovide up to 79,000 sq m of retail floorspace, withassociated leisure and community facilities with anassociated investment of £200m. Also south of theRiver, two major retail warehouse proposals in theGorbals area obtained consent in 1997. HoweverStannifer, in conjunction with the existing owners ofthese sites, has brought forward a proposal to switchthe retail warehousing to a new site adjacent to theAsda superstore at Toryglen, while releasing theGorbals sites for other uses such as housing andindustry.

In the food retailing sector, the principal operators aregoing through a period of consolidation following aspate of recent openings. Asda/Walmart are anxiousto provide additional trading floorspace; the companyhas already installed a mezzanine floor in its HelenStreet (Govan) store, and has consent to do likewise attheir Robroyston outlet. Tesco has followed up itssuperstore openings at St Rollox (Springburn) andShettleston by pursuing new store developments atPartick and Pollok, and a possible expansion at


Maryhill. Keeping pace with its rivals, Safeway hasbrought forward proposals for significant expansions ofits stores at Anniesland (now trading) and Pollokshaws.Safeway also has consent for a new store at MontraveStreet, Cardonald. Morrison’s is keen to penetrate theWest of Scotland market, and its projected takeover ofSafeway will greatly facilitate this. As alreadymentioned, Morrison’s will shortly mark their arrival byopening one of the City’s largest superstores atAuchinlea Park.

While the big four Tesco, Sainsbury, Safeway andAsda continue to seek increased market share, thepace of development among discount food storeoperators appears to have stabilised. Nationally,Somerfield/Kwik Save are trying to rationalise theirnetwork of outlets, and with their strong representationin the Glasgow area, this may have repercussions here.However the German discounters Lidl and Aldi areboth actively extending their representation in the City.Lidl now has stores operating at Crookston Road, DukeStreet, Maryhill, Pollokshaws, St Rollox, Woodside,Yoker, Nitshill, Tollcross and Linthouse, while Aldi istrading at the Forge Retail Park, Baillieston andRobroyston.

Outwith the City, proposals to create a new town centreat Ravenscraig in Lanarkshire were cleared by theScottish Executive at the end of last year, but progresson the scheme has now stalled as a result of courtaction by rival retailing interests. Last year’s opening ofthe new £90m Centre West shopping centre in EastKilbride means the town centre has the equivalentfloorspace of the Metro Centre at Gateshead and thiswill have an effect on shopping patterns in Lanarkshireand possibly also in the East End of the City. Overall,the retail sector in the West of Scotland is still buoyant,with further major proposals in the pipeline.


Special Article by Moira Dyer, Manager Public Relations,Greater Glasgow & Clyde ValleyTourist Board

The secret of Glasgow’s success has always been itsentrepreneurial spirit and its ability to forge strategicalliances. From the time of the Tobacco Lords, throughthe Industrial Revolution and the city’s post-industrialmetamorphosis, Glasgow’s key players have long beenperceptive to changes in the markets they have had toserve and adapted accordingly.

This is no less true of the city’s tourism industry, whichthough scarcely two decades old, is now responsiblefor attracting in the region of 4 million visitors annuallyand generating more than £800 million in localeconomic benefit through successful public/privatepartnership.

Although Glasgow has now emerged as a seriouscontender on the global tourism stage, the city’sposition in this fickle arena is by no means secure. Tomaintain and indeed enhance its status, it mustconstantly strive to combat socio-economic andpolitical threats as well as fierce competition fromestablished tourism ‘hot spots’ and emergingdestinations such as the ten accession members of theEU.

This can only be achieved through focused activity,clarity of thought and differentiation.

It is well documented that the McKinsey & Co reportof 1983 made four key recommendations, which theyargued, were vital for Glasgow’s economicregeneration, namely:

• Revitalisation of the city centre through restorationof its architecture and creation of the ‘MerchantCity’.

• Expansion of the retail sector.

• Inward investment.

• Development of tourism and the establishment of alocal tourist board.

The advice was heeded and today, Glasgow’s citycentre is universally regarded as a showpiece ofVictorian architecture, its Merchant City is burgeoning,it is the second largest retail centre in the UK outsideLondon and creation of the new Financial District iswell underway.

In terms of tourism development, Greater Glasgow &Clyde Valley Tourist Board (GG&CVTB) has seen itspolicy of forging strategic alliances with carriers andintermediaries pay enormous dividends.

During 2002/03 for example, activity carried out withSuperbreak—the UK’s largest short breaks operator—resulted in Glasgow moving from fifth to third mostpopular UK destination among Superbreak customers.

The ‘Scotch with a Twist’ US short breaks campaign,developed by GG&CVTB in conjunction withIcelandair, was promoted direct to the airline’scontacts database and to 120,000 potential consumersin North America.

Over the same period, its joint activity with Stena Lineand Ryanair generated £3.2 million and £1.3 millionrespectively for the local economy.

Convention tourism continues to play a pivotal role ingenerating local economic benefit through showcasingthe city to international delegates and profiling itscredentials as a world centre for medical and scientificresearch.

The city has doubled its market share in Europe overthe last four years leading to it being dubbed ‘Europe’sfastest growing Conference Destination’ by theprestigious Union of International Associations.

The involvement of local ‘ambassadors’ in spearheadingconference bids is critical to the Board’s conventionssales effort and major emphasis will continue to beplaced on expanding the network of 2,000 medics,scientists, academics and business professionals whoalready assist through the Conference AmbassadorProgramme.

43% of GG&CVTB’s reported £72 million of totalconference sales during the last financial year weregenerated through partnership with local ambassadorsunderlining the importance of the initiative.

The successful hosting of major sporting events suchas UEFA Champions League Final and World Bowl XI,expansion of the retail sector as well as increasedinvestment in new hotels, which has seen Glasgow’saccommodation stock increase by 27% in the last fouryears yet still maintain an average annual occupancyrate of 68% (Jan-Dec 2003), have all played their partin the city’s repositioning.

Direct air access—also vital for continued growth—hasbeen boosted yet further with the news that Emirates,US Airways, Zoom and Canadian Affair will allshortly commence long haul routes into GlasgowInternational Airport in 2004.

Differentiation: Key to Glasgow’s Economic Growth


In particular the advent of Emirates’ daily flight fromDubai will make Glasgow — and Scotland — muchmore accessible to other destinations in the Indiansub- continent, the Far East, Australasia and Africa.

Similarly, Ryanair’s continued expansion of its Prestwickbase (the low cost airline now operates services fromhere to twelve European destinations) providesGlasgow with the potential to exploit new, lucrativemarket territories. It is worth underlining however, thatas Ryanair, EasyJet and other budget carriers expandtheir operations, they simultaneously create more citybreak competitors and represent a threat as well asopportunity.

To compete effectively in the European arena or indeedthe global market place therefore requires a uniqueproposition. What sets you apart from your competitorsis crucial and differentiation is the key.

The creation of a new brand for Glasgow, which willarticulate this unique proposition and have applicationsacross tourism and inward investment as well as at alocal level, is thus vital to future growth.

Greater Glasgow & Clyde Valley Tourist Board believesthat it is the place that matters. The events strategy ofthe past is no longer necessary because the quality ofthe Glasgow offer is now recognised. It needs tocapitalise on the strengths that have made Glasgow adynamic 21st century European city by a brand for theplace rather than relying on events.

In March this year, Glasgow launched its new citybranding campaign with the aim of projecting a newand confident image on the world stage. Under thestrapline Glasgow: Scotland with Style, the new brandwill position Glasgow as a cosmopolitan European cityas well as a modern, dynamic location for investmentand tourism. The campaign will endeavour to driveGlasgow up the European league table of cities interms of employment, investment and increasedtourism revenue and build on the significant progressmade in transforming the city over the last 20 years.

This new brand will have direct and positive impact onvisitor attractions, hospitality, leisure and tourismbusinesses and the perceptions of business visitorsand inward investors.

It is estimated that through the Glasgow Brandinitiative the city will see a 5% increase in overnightvisitor trips by the end of 2005 representing 640,000additional bed nights.

In addition, it will also generate additional expenditureof £42 million and lead to the creation and support ofup to 1,000 full time jobs and make a significantcontribution to safeguarding existing jobs in the region.

It will benefit Glasgow and Glaswegians and protectthe future of the city by allowing it to competeeffectively in today’s global economy.

For further information please contact:

Moira Dyer Manager—Public Relations Greater Glasgow & Clyde Valley Tourist Board 11 George Square Glasgow G2 1DY

Tel: 0141 566 4014 Fax: 0141 566 4073e-mail: [email protected] http://media.seeglasgow.com


Special Article by Nicole Garry, of Scottish Enterprise Glasgow on behalf of Glasgow EconomicForum

Glasgow Economic Forum hosts an annualstakeholder event entitled State of the City Economy.The role of the Glasgow Economic Forum is to agreeand implement actions for the streamlining andimprovement of the local delivery of economicdevelopment services.

The 7th Annual State of the City Economy conference,to be held in October 2004, will focus on Glasgow’s‘human capital’ and the contribution that people andtheir skills make to the city’s economic performance.As usual, there will be an overview of Glasgow’s recentand forecast economic performance.

At the 6th State of the City Economy conference heldat Hampden, Scotland’s National Stadium on 28thOctober 2003, the theme was Glasgow’s ‘National andInternational Competitiveness’. Workforce and skillsdevelopment issues were highlighted throughout andbecame an emerging theme.

Glasgow’s Continuing ProsperityCharlie Gordon, Leader of Glasgow City Council andRon Culley, Chief Executive of Scottish EnterpriseGlasgow highlighted the critical issues raised in theGlasgow Economic Audit 2003. These included:

• Economic growth in Glasgow has continued tooutperform the rest of Scotland and the UKgrowing at an estimated 2.4% in 2002.

• Glasgow has experienced a period of high jobcreation and is the largest employment location inScotland ahead of Edinburgh, Aberdeen, Dundeeand Stirling.

• Glasgow’s competitiveness (as measured by outputper employee) is now above the Scottish averageand exceeds that recorded in most of thecomparable UK cities.

Glasgow’s performance at a city and metropolitan levelhas also been strong in a European context. Both GDPand employment have grown faster in Glasgow thanthe European city average, and the outlook is set forthis to continue over the next decade.

However, there are economic issues that remain to betackled. Growth in new business registrations was thestrongest it has been for several years and the numberleaving the VAT register fell. Despite this, Glasgow’sstock of business has continued to fall, although thedrop was the smallest for six years.

In 2002, 4.4% of Glasgow’s land area was specified asbeing derelict, significantly above the Scottish average.Nevertheless, current levels of vacant and derelict landin the city are well below those recorded five years ago,illustrating that the large number of regenerationprogrammes in the city have had a marked impact onGlasgow’s environment.

The scale and rate of unemployment has fallen inrecent years in Glasgow as a direct response to thejobs boom that the city has been enjoying. However,unemployment rates are still above the Scottishaverage and the employment rates of city residents arelow. Levels of economic inactivity remain very high atover 100,000. Research by the University of Glasgowindicates that 35,000 people who are inactive wouldlike to work. If this proportion could find work thedirect gain in economic output could be around £900million and Glasgow’s participation rate would rise tothe Scottish average.

A well-qualified and highly skilled workforce isessential if Glasgow is to remain competitive andcontinue to attract new investment to the city. In thespring of 2003, Glasgow’s working age population hadlower than average qualification levels. Approaching aquarter held no qualifications, compared to a Scottishaverage of just 16%. Likewise, a greater proportion ofGlasgow residents hold the lowest level of qualification.By contrast, Glasgow’s population is less likely than theScottish average to hold higher level qualifications atSVQ levels 3, 4 and 5. The issue of improving workforcedevelopment and skill levels is critical to the city’sfuture business and economic success.

Making Competitive City RegionsPaolo Verri, Managing Director of AssociazioneTorino Internazionale highlighted how strategicplanning at a metropolitan level has assisted theeconomic transformation in Turin. Urban economictransformation was integrated with an approach tosocial cohesion to maximise the benefits andsustainability of developments. Active participation instrategic planning was seen as key, involving residentsand businesses as well as the need to improve theconnectivity with nearby centres such as Milan andother key European cities.

Michael Parkinson is Director of the EuropeanInstitute of Urban Affairs at John Moores Universityin Liverpool. He is an advisor on urban affairs to theEuropean Commission, the OECD and the UKGovernment and is currently leading an internationalproject on Competitive European Cities.

He stated that Cities and City Regions are moving upthe political agenda across the world. Europeangovernments in particular have recognised this and are


State of the City Economy Conference


actively targeting and empowering cities. There areconcerns that UK cities are not punching their weightat the level of the national economy and lack thepowers, responsibilities and resources required tobecome truly competitive. Furthermore, they are fallingbehind London and European cities in terms ofperformance.

Glasgow’s performance compares favourably toEnglish cities in relation to wealth creation, economicand employment growth. However, the European urbanchallenge is much bigger and Glasgow still faces theissue of further improving its economiccompetitiveness and reducing its economic and socialexclusion. However, it should also be remembered thatcompetitiveness and cohesion are not mutuallyexclusive but desirable to achieve sustainableeconomic growth.

Cities can help themselves and this can be achievedmore effectively at the city region level. The keycharacteristics that competitive city regions mustdevelop include strategic capacity, innovation, sectoraldiversity, good connectivity, high quality of life andhigh skills levels amongst its people.

The presentations from the State of the City EconomyConference 2003 are available via the website,www.glasgoweconomicfacts.com

This year’s Annual State of the City EconomyConference will be held at Glasgow Royal Concert Hallon Tuesday 26th October 2004 (am). For furtherinformation on any aspect of the State of the CityEconomy Conference, please contact either:

John GodwinScottish Enterprise GlasgowAtrium Court50 Waterloo StreetGlasgow G2 6HQTelephone: 0141 204 111Email: [email protected]

Anne MurrayGlasgow City CouncilDevelopment and Regeneration Services229 George StreetGlasgow G1 1QUTelephone: 0141 287 7218Email: [email protected]


Appendix 1

CLAIMANT COUNT AND PROPORTIONS BY WARD NOVEMBER 2003

% Gain orChange in no. reduction in

of claimants number ofWard Male Male Female Female Total Total since Nov. claimants

Propn. Propn. Propn. 2002 since Nov. 021 Drumry 245 11.7% 66 2.8% 311 7.0% 15 5.1

2 Summerhill 224 11.7% 72 3.1% 296 7.0% 28 10.4

3 Blairdardie 135 6.2% 19 0.9% 154 3.7% 7 4.8

4 Knight. Park 180 8.4% 40 2.0% 220 5.3% 43 24.3

5 Knight. South 161 7.7% 35 1.8% 196 4.9% 3 1.6

6 Yoker 244 9.7% 51 2.1% 295 5.9% 46 18.5

7 Anniesland 131 5.4% 40 1.6% 171 3.5% 2 1.2

8 Jordanhill 47 1.9% 15 0.6% 62 1.3% -6 -8.8

9 Kelvindale 50 2.3% 21 0.9% 71 1.6% 4 6.0

10 Scotstoun 208 8.0% 51 2.0% 259 5.0% 6 -2.4

11 Victoria Park 138 5.7% 44 1.9% 182 3.8% 7 4.0

12 Hayburn 171 6.0% 45 1.6% 216 3.9% -2 -0.9

13 Hyndland 84 2.9% 38 1.4% 122 2.2% 7 6.1

14 Hillhead 121 4.0% 52 1.8% 173 3.0% -9 -4.9

15 Partick 163 5.9% 45 1.6% 208 3.7% 13 6.7

16 Kelvingrove 157 4.2% 48 1.4% 205 2.8% -14 -6.4

17 Anderston 244 8.3% 55 2.4% 299 5.7% 29 10.7

18 Woodlands 136 4.2% 43 1.4% 179 2.8% -35 -16.4

19 North Kelvin 121 4.5% 51 1.8% 172 3.1% 2 1.2

20 Wyndford 246 9.8% 71 3.1% 317 6.6% 55 21.0

21 Maryhill 198 8.9% 57 2.4% 255 5.5% 17 7.1

22 Summerston 121 5.0% 34 1.4% 155 3.2% 9 6.2

23 Milton 205 10.2% 49 2.3% 254 6.1% -10 -3.8

24 Ashfield 179 8.7% 39 2.0% 218 5.4% -21 -8.8

25 Firhill 153 5.7% 50 1.9% 203 3.9% 5 2.5

26 Keppochhill 235 11.3% 59 2.7% 294 6.9% 8 2.8

27 Merchant City 186 6.4% 32 1.3% 218 4.0% 39 21.8

28 Royston 339 11.8% 82 3.3% 421 7.8% 2 0.5

29 Cowlairs 306 12.1% 58 2.4% 364 7.4% 35 10.6

30 Springburn 184 9.5% 58 2.9% 242 6.1% -4 -1.6

31 Wallacewell 208 9.8% 55 2.4% 263 6.0% 37 16.4

32 Milnbank 196 7.9% 43 1.9% 239 5.0% 29 13.8

33 Dennistoun 147 5.9% 43 1.8% 190 3.9% 13 7.3

34 Calton 229 7.7% 20 0.9% 249 4.8% -29 -10.4

35 Dalmarnock 174 9.4% 32 1.7% 206 5.6% -9 -4.2

36 Parkhead 216 9.2% 51 2.3% 267 5.8% -22 -7.6

37 Carntyne 170 8.1% 44 2.1% 214 5.0% 1 0.5

38 Robroyston 132 4.5% 29 1.0% 161 2.7% 3 1.9

39 Gartcraig 166 6.9% 29 1.4% 195 4.4% 15 8.3

40 Queenslie 187 10.5% 52 2.6% 239 6.4% 22 10.1


CLAIMANT COUNT AND PROPORTIONS BY WARD NOVEMBER 2003 (Continued)

% Gain orChange in no. reduction in

of claimants number ofWard Male Male Female Female Total Total since Nov. claimants

Propn. Propn. Propn. 2002 since Nov. 0241 Greenfield 127 5.5% 35 1.5% 162 3.5% 6 3.8

42 Barlanark 198 9.6% 55 2.4% 253 5.8% -43 -14.5

43 Shettleston 122 5.0% 29 1.3% 151 3.3% 10 7.1

44 Tollcross Park 196 9.2% 46 2.1% 242 5.6% 16 7.1

45 Braidfauld 203 10.1% 43 1.9% 246 5.7% 11 4.7

46 Mount Vernon 78 3.0% 21 0.9% 99 2.0% 3 3.1

47 Baillieston 115 4.5% 30 1.2% 145 2.9% 12 9.0

48 Garrowhill 53 1.8% 17 0.6% 70 1.2% 2 2.9

49 Garthamlock 198 9.0% 44 1.9% 242 5.3% -12 -4.7

50 Easterhouse 206 9.6% 54 2.2% 260 5.6% -1 -0.4

51 Drumoyne 196 9.6% 30 1.4% 226 5.4% 10 4.6

52 Govan 251 10.2% 66 2.8% 317 6.6% -13 -3.9

53 Ibrox 237 8.7% 68 2.8% 305 5.9% -4 -1.3

54 Kingston 190 6.0% 51 1.9% 241 4.1% 37 18.1

55 Mosspark 113 6.1% 24 1.4% 137 3.8% -25 -15.4

56 N. Cardonald 121 6.1% 26 1.2% 147 3.6% 0 0.0

57 Penilee 154 7.3% 46 2.1% 200 4.7% -6 -2.9

58 Cardonald 82 3.7% 16 0.7% 98 2.2% -10 -9.3

59 Pollok 183 6.9% 36 1.3% 219 4.1% -10 -4.4

60 Crookston 157 7.1% 46 1.9% 203 4.4% 22 12.2

61 Nitshill 193 8.5% 30 1.2% 223 4.7% 6 2.8

62 Darnley 184 6.7% 51 1.8% 235 4.2% 2 0.9

63 Carnwadric 199 8.0% 52 2.1% 251 5.1% 1 0.4

64 Maxwell Park 40 1.6% 19 0.9% 59 1.3% 9 18.0

65 Pollokshields E. 145 4.9% 41 1.7% 186 3.5% -5 -2.6

66 Hutchesontown 258 9.4% 57 2.6% 315 6.4% 0 0.0

67 Govanhill 233 8.7% 49 1.9% 282 5.4% 34 13.7

68 Strathbungo 189 5.9% 61 2.3% 250 4.2% -5 -2.0

69 Battlefield 125 4.8% 42 1.7% 167 3.3% -11 -6.2

70 Langside 87 3.2% 41 1.6% 128 2.4% -38 -22.9

71 Pollokshaws 184 6.9% 45 1.9% 229 4.5% -2 -0.9

72 Newlands 94 3.7% 34 1.5% 128 2.6% 8 6.7

73 Cathcart 88 3.4% 19 0.8% 107 2.2% 0 0.0

74 Mount Florida 131 5.5% 30 1.3% 161 3.5% 24 17.5

75 Toryglen 161 8.5% 47 2.5% 208 5.5% 3 1.5

76 King's Park 100 4.0% 21 0.8% 121 2.4% 27 28.7

77 Castlemilk 120 5.7% 31 1.5% 151 3.6% 19 14.4

78 Carmunnock 92 4.0% 30 1.3% 122 2.6% -4 -3.2

79 Glenwood 197 8.6% 56 2.1% 253 5.1% 25 11.0

Unallocated 194 58 252 33 15.1

GLASGOW 13,331 6.9% 3,415 1.8% 16,746 4.4% 472 2.9

Sources: (1) Stock — ONS/GCC/SLIMS (2) Rates GCC

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