Pinewood Studios: Business Case and Economic Impact Assessment

Pinewood Studios LtdPinewood Studios: Business Case and Economic Impact AssessmentJanuary 2013leakage – the overall level of leakage is likely to be closely related to the phasing ofproposals and the nature of the scheme proposed. In terms of the nature of the proposals,specialist construction activities relating to non-standard activities or the installation ofspecific plant and other equipment are more likely to be carried out by expert contractors,operating at a national or international level. The level of leakage associated with suchemployment is likely to be high. It is expected that locally procured labour will be involvedin more general activity. In particular, there is likely to be local demand for employmentwithin key occupations identified in Figure 4.10 above including:ground workers;concrete frame workers;steel erectors;cladding and roofing workers;bricklayers;finishing tradespersons;fitters;welders;electricians; andmechanical workers.The proposed phasing of development will ensure that there is not a requirement for veryhigh levels of peak on-site employment. On this basis, the need to source labour from thewider area to meet any such requirement is likely to be reduced.At the national level, all construction employment is expected to be sourced from within theUK and therefore leakage at this spatial level will be zero. For the other spatial areas,reference has been made to Census travel to work flows data. On the basis of thisinformation, leakage rates of 35% for the LEP, 40% for Beaconsfield constituency and 45%for South Bucks have been applied. Since the construction work will take place over anumber of years the actual level of leakage will vary depending on a range factors includingthe nature of the labour demanded and the tightness of the labour market. However, PSLwill work with its appointed contractor and local organisations to achieve high levels of localrecruitment.displacement – in order to derive an estimate of the potential level of displacement,consideration has been given to the required level of construction employment and thepotential available workforce. At the national level, the construction sector has experienceda significant slowdown in activity since 2007. With limited growth and severe fundingconstraints, demand for new development has stagnated. While contractors have sought toreduce their cost base by releasing staff, a number of large contractors have gone intoadministration as a result of cash flow issues. Due to limited demand, there is a significantsurplus of skilled construction labour across all regions of the UK.53