An Introduction to the Creative Industries Sector - The Skills ...

An Introduction to the Creative IndustriesSectorProduced for Gloucestershire Learning and Skills CouncilJanuary 2004

ContentsContentsList of tablesList of FiguresList of AppendicesExecutive Summaryiiiiiiiiii1 Part 11.1 Introduction 11.2 Objectives 11.3 Scope 11.4 Methodology 11.5 Setting the scene 21.6 Description of the creative industries sector 61.7 The national picture 71.8 Geographical distribution 81.9 The South West region 91.10The creative industries sector in Gloucestershire, the South West and GB in relation to theAnnual Business Inquiry1.10.1 Employees 101.10.2 Employers 111.11The creative industries in Gloucestershire, comparing the Annual Business Inquiry datawith the Gloucestershire Business Link Client Management data9132.0 Part 22.1 Detailed sector analysis 152.2 Employment 162.3 Qualifications 172.4 Present skill requirements 182.5 Skill shortage and skill gaps 182.6 Skill gap by sub sector 182.6.1 Audio-visual 182.6.2 Design 192.6.3 Photo-imaging 192.6.4 Publishing 202.6.5 Arts and entertainment sector 212.7 Future skill requirements 212.8 Education and training 212.9 Training provision 212.10 Government Training Initiatives 223.0 Conclusion 23i

List of Tables1 The creative industries sector 72 Classification of regional clusters relating to the creative industries sector 83 Number of employees in the creative industries sector in GB, SW and Gloucestershire in 1998and 20024 Number of employers in the creative industries sector in GB, SW and Gloucestershire in 1998and 20025 The number of companies and their employees in the creative industries sector inGloucestershire6 Company size in the creative industry sector in Gloucestershire 147 Employment in the creative industries sector in the UK 168 Geographical distribution of employment of four creative industries sub sectors 17101213List of Figures1 The percentage change in employment in the creative industries sector in GB, SW andGloucestershire between 1998 and 20022 The percentage change in the number of employers in the creative industries sector in GB, SWand Gloucestershire between 1998 and 200211131 Current DCMS Sector ClassificationsAppendices2 Relevant SOC categories for the creative industries: based on SOC (90) codes in Creative IndustryMapping Document3 Strategic process for sector skills planning and action4 INDUSTRY HIGHLIGHTS – A description of industry sub sectors from DCMS Creative IndustriesMapping Document 20015 Numbers of VAT- based businesses in the creative industries in Great Britain6 Creative industries employment : Great Britain7 Comparison of the number of employees in the creative industries sector for Great Britain, SouthWest and Gloucestershire8 Comparison of the number of employers in the creative industries sector for Great Britain, SouthWest and Gloucestershire9 Number of employees in the creative industries sector in GB10 Number of employees in the creative industries sector in the South West11 Number of employees in the creative industries sector in Gloucestershire12 Number of employers in the creative industries sector in GB13 Number of employers in the creative industries sector in the South West14 Number of employers in the creative industries sector in Gloucestershire15 Some of the larger companies (21 employees and over) in Gloucestershire16 Description of employment activity in each of the creative industries sub sectors17 Comparison of creative industries sub sectors18 New media or digital media activitiesii

It appears that enterprises tend to suffer from skill gaps rather than skill shortagevacancies. Although there are a number of specific skill gaps affecting sub sectorsone particular area of concern relates to Information and CommunicationTechnology (ICT) and this affects the whole sector.One of the biggest problems facing education and training in the creative industriessector is the transition from education to the workforce and success will rest on theco-operation between training providers, employers, regional and local agencies toenable a clear route from school/college to the workplace.The complex nature of the sector results in an array of organisations and bodiesresponsible for workforce development and this is also improving in terms of whatNTOs are now supplying. The wider influence of the newly formed Creative andCultural Sector Skills Council that has attracted a number of creative industries subsectors may also help to simplify training in the workplace for this sector.There is now a better understanding of this complex industrial sector as a result ofgovernment and regional initiatives to gather data on its constituent activities,assess skills and training issues and apply a development plan to respond to andfocus growth in the right direction.Despite the remaining gaps in the data relating to creative industries, activities andthe speed with which many of these sub sectors are changing, there now appearsto be a structure in place both nationally and regionally to address the manycurrent and future challenges that will undoubtedly arise.iv

1.0 Part 11.1 IntroductionThe developing creative industries sector was identified as an area that neededinvestigation in order to understand its activities, employment, skills issues and itscontribution to the local economy. To this end the Gloucestershire Learning and SkillsCouncil and Gloucestershire County Council commissioned the GloucestershireLabour Market Information Unit (GLMIU) to undertake a literature review of the sector.1.2 ObjectivesTo ascertain the various activities attributed to the creative industries sector and toclassify them in order to identify economic input, employment and skills issues atnational, regional and local level.1.3 ScopeThe first part of the report deals with the evolution and definition of the creativeindustries sector and a national, regional and local overview in terms of turnover,employment and location. The second part of the report comprises a detailed sectoranalysis relating to employment, skills, qualifications and training based on datacollected at national level.1.4 MethodologyThis report is based on a literature review and direct contact with relevantrepresentative organisations. Data on employment was obtained from the Office forNational Statistics Annual Business Inquiry and Gloucestershire Business Link ClientManagement database.The creative industries sector comprises thirteen sub sectors as defined by theDepartment for Culture, Media and Sport (DCMS) and represents a diverse range ofactivities that are difficult to relate to the Standard Industrial Classification (1992) (SIC)because the classification is based on the type of economic activity in whichcompanies are engaged and basically relates to the nature of the products/serviceproduced. Measurement of employment within the creative industries sector istherefore not precise as some activities are either not identified or not described inenough detail in the current SIC. Appendix 1 shows the best match of creative industryactivities to the SIC codes. Of the thirteen sub sectors two (craft and design) have notbeen identified and two groups have been amalgamated to form a total of ninemeasurable sub sectors.There are no appropriate SIC codes identifying Art and antique trade, Design (otherthan architecture), Interactive media and Craft activities. Also the true proportion ofenterprises that reflect the sector is likely to be higher as certain sectors are made upof predominantly small businesses that may not be listed on the Inter-DepartmentalBusiness Register. This register provides the sample for the Annual Business Inquirysurvey and is the main source for data provided in this report.Certain activities will therefore not be covered by the SIC while other elements will beincorporated within a wider description. Where activities have been incorporated in a

allowing for more effective planning policy to support the development ofactivities within the sector• There is a general lack of strategic thinking or understanding of the creativeindustries sector by most local authorities, government departments andagencies and other regional and national agencies. Without strategicframeworks there has been a lack of co-ordination and not enough sharing ofgood practice through links with other agencies and networking.• In relation to data there are still significant gaps and existing data had not beencollected on a standard basis across the creative industries sector. Furtherresearch is needed to build up regional and national profiles which couldidentify – current activity in each sub sector, strengths and weaknesses,potential for future growth, obstacles preventing growth, key issues and actionsessential to the economic health of the sector, its regional economic impact,availability and take up of training and market information.• There is a particular lack of information about the freelance workers as theseare not accounted for. There is also lack of research on the impact creativeindustries have on rural areas and little detailed information on the majority ofsmall and micro businesses that characterise the sector.• The available business support structures and packages are not alwayssuitable for the types of businesses involved as support providers are notfamiliar with or do not fully understand the creative industry sector.• Access to formal education and training is limited and there is concern thatstudents from college courses were not equipped with the right skills foremployment in their business. Training providers were concerned thatemployers and practitioners did not properly articulate their training needs. Theappropriate NTO should bring together employers and training providers toensure most suitable training is provided.• There is a need to support and promote creativity in pre-16 education.• There should be regional cultural strategies that identify and agree regionalpriorities and link with the strategies of partnerships.• In 1999 eight Regional Cultural Consortia (RCC) were established by theDCMS to produce regional cultural strategies. Membership would cover a widerange of interests including representatives from local government, RDAs andthe cultural and creative industries. The RCCs would be the main channels fordebating, representing and developing a whole spectrum of cultural andcreative interests in the regions.Their remit was to:• Provide the main focus and channel for representing the whole spectrum of culturaland creative industries in the region.• Create a common vision expressed in a cultural strategy for the region to take intothe future.3

work is being undertaken by Burns Owen Partnership and Calvin Taylor of LeedsUniversity who will report on the findings in March 2004.According to CSW there is now clear recognition of the role of creative industries as akey strategic theme. CSW has already worked with partners to establish two creativeindustries sub-sector forum groups. These are the Crafts and Design forum soon to befollowed by the Performing Arts forum for early 2004. The forums represent theinterests of those working in the sector, and aim to help to facilitate long-termstrategies for their development.With regard to skills the recommendations of the second National Skills TaskforceReport “Delivering Skills for All 1999” suggested a system of industry sector dialoguesto be developed covering relatively broad industry groupings across a number ofindustries one of which was creative industries (Skills Requirements in the CreativeIndustry 1999).In response to these reports the final National Skills Taskforce Report “DeliveringSkills for All 2000” concluded that individual industry skill shortages were generallybest addressed through the industry’s National Training Organisation (NTO) jointaction plan developed in conjunction with the Learning and Skills Council and relevantRegional Development Agencies. Therefore each NTO should put into place apermanent skills foresight programme to scan for and anticipate potential skillchallenges and engage its employers and relevant trade unions in responding to thesethrough effective sector workforce development plans.Three processes have therefore been identified to support NTO work on skills over thelast few years. These are described in Appendix 3. The NTOs are responsible forproducing the draft workforce development plan for consultation but the final plan willbe agreed by a range of partners with a direct interest in the delivery of skills to thesector. In addition an annual report will be produced by each NTO relating to skillspriorities and progress in meeting them.The Creative industries sector is covered by the following NTOs or group of NTOsMETIER (Arts & Entertainment) representing a workforce of the order of 500,000 -750,000.Cultural Heritage NTO, Publishing NTO representing a workforce of 50,000 - 200,000.Photo Imaging NTO, SKILLSET (Broadcast, Film, Video, Multi-Media) representing aworkforce of 50,000 and less.IMPACT (Media, Culture and Hospitality) comprises NTO groupsIn 2002 new organisations with a wider remit started to replace NTOs, these werecalled Sector Skill Councils. They comprise independent business-led organisationswith boards representing employers in commercial, public and voluntary sector, SMEs,trade union and other professional body representatives and they have four key goals:• Reduce skills gaps and shortages and increase the speed of development andtransition.• Develop specific actions that lead to improved productivity, business, publicservices performance.• Take action leading to the development of the whole sectors’ workforce.• Influence action that leads to improvement in learning supply.5

In 2003 any relevant interested parties were invited to join a number of Creative andCultural Industries to develop a Creative and Cultural Sector Skills Council that wouldinclude the following areas of interest:Archives, libraries information servicesThe arts in all their formsCraftsCultural heritageDesignBy September 2003 there had been an extremely good response to the invitation witha large number of organisations expressing an interest.1.6 Description of the creative industries sectorThe creative industries sector covers a diverse and non-uniform group of activities. Adefinition of the creative industries was produced in 1998 based on those activities forwhich the Department for Culture, Media and Sport Creative Industries Division(DCMS) has responsibility, namely, the Arts and Creative Industries, the ResourceSector (Museums, Libraries and Archives), Heritage, Sport, Tourism, Gambling andthe National Lottery. The definition is as follows:The DCMS defines creative industries as “Those industries which have their origin inindividual creativity, skill and talent and which have a potential for wealth and jobcreation through the generation and exploitation of intellectual property.Thirteen areas of activity have been defined:• advertising• architecture• art and antiques• crafts• design• designer fashion• film and video• interactive leisure software• music• performing arts• publishing• software and computer services• television and radio.”(See Appendix 4 for a full description).The creative industry sector also has close economic inter-relationships with othersectors such as:• tourism• hospitality• libraries, museums and galleries• heritage and sportNationally the largest sectors appear to be Software and computer services and Musicand the visual and performing arts.The sector like many others is characterised by a predominance of self employed andsmall to medium sized enterprises and freelance and part time workers. There are afew large well-known employers (particularly in the broadcasting and publishing6

• Employment in the creative industries sector for June 2002 totalled 1.9 millionjobs comprising 1.1 million jobs in companies in the sector and a further800,000 creative jobs within companies outside the sector.• Over the period 1997-2002 employment in creative industries grew at a rate of3% per annum compared to 1% for the whole economy.• Those sub sectors that have shown above average increases in employmentbetween 1997-2001 were Software (incl leisure) and computer services (8%above average), Design and designer fashion (7% above average) and Video,film, music and photography (5% above average).• The number of companies according to the Inter-Departmental BusinessRegister (IDBR) totalled some 122,000. These represent about 7.6% of all theenterprises on the IDBR, however, the true proportion of enterprises within thecreative industries sector is likely to be higher as certain of its sectors namelycraft are predominantly small businesses that are not represented on the IDBRregister as they are below the VAT threshold or do not run a PAYE scheme.• Nearly three quarters of these enterprises comprise two sectors, namelySoftware (incl leisure) and computer services (56,000 enterprises) and Musicand visual and performing arts (32,000 enterprises)1.8 Geographical distributionNumerous studies of the sector have pointed to the relationship between physicalclustering in relation to the economical success of the activity. A summary of theresearch done by Trends Business Research for the Dti into clusters with reference tocreative industries is shown in Table 2.Table shows the main characteristics of life cycles of the creative industries by usingEmb (Embryonic), Est (Established) or Mat (Mature).Table 2 Classification of regional clusters relating to the Creative Industry sectorIndustry SW SE London East E Mid W Mid NW NE York &HumbAdvertising - - Est - - - - - -Antique dealing / exporting Est Est Est - - Est - - -Leisure software - Emb Emb - - - Emb - -Music - - Est - - - - - -Photography - - Est - - - - - -Publishing - Est Mat - - - - - -Software development / services - Est - Est - - - - -TV/film/digital media Emb - Mat - - - - - -Web design/internet services - Emb Emb - Emb - - - EmbSource: Trends Business Research Feb 2001Table 2 illustrates the importance of London, with eight identified clusters, reflectingthe fact that about one third of the total UK creative industries are based there. Theonly other regions with multiple clusters are the South East with five and the SouthWest with two.8

Although London and the South East continue to be major magnets for the creativeindustries, there is growing recognition in the English regions and also in the rest ofthe UK of their important contribution, both through wealth generation andemployment opportunities, to social inclusion and regeneration strategies.1.9 The South West regionAccording to DCMS (Feb 2000) the growth of the creative industries sector has madea significant contribution to the regional growth of the South West which is seen asone of the UK’s best performing and rapidly expanding regions in terms of economicgrowth.The main growth areas are Software consultancy, Radio and television and Artisticand literary activities. Retail in specialist stores has overtaken Architecture as thelargest area of creative activity in the region.The arts and cultural industries are worth around £1billion per year to the South Westeconomy and employ some 7,500 individual artists and crafts people; that is morethan any region outside London.There are currently about 90,000 people employed in the creative industries sectorrepresenting 5% of total regional employment and the sector has been growing by9.9% per year since 1991.The sector is characterised by a predominance of self employment and small andmedium sized enterprises. There are around 21,000 creative businesses of which90% employ 10 or fewer people1.10 The creative industries sector in Gloucestershire, the South West and GBin relation to the Annual Business Inquiry.In order to give an indicative employment trend in Gloucestershire, the creativeindustries sub sectors as defined by the DCMS have been linked to their relevant SICsand applied to the National Statistics Annual Business Inquiry (Annual Survey ofBusinesses) for the years 1998 to 2002 inclusive.Of the original thirteen creative industries sub sectors two, namely Craft and Design,cannot be defined using the SIC method. Music has been combined with thePerforming Arts sub sector and Interactive Leisure Software has been combined withthe Software and Computer services sub sector to form nine sub sectors in total asshown in Appendix 1. The full set of tables and accompanying graphs can be foundin Appendices 7 to 14. (There are problems associated with these results and they aredescribed in the Methodology section). The following tables provide the salientfindings associated with this data and relate to employees, they do not include theself employed.9

Table 3 Number of employees in the creative industries sector in GB, SW and Gloucestershire in1998 and 2002 (NB Percentage change is based on unrounded figures)Sub sector 1998 2002Advertising83,700(0.3%)GB South West Gloucestershire84,300(0.3%)%change 1998 20020.74,000(0.2%)4,300(0.2%)%change 1998 20028.9900(0.4%)500(0.2%)%change-40.7Architecture72,900(0.3%)75,000(0.3%)2.85,000(0.3%)5,400(0.3%)6.7700(0.3%)500(0.2%)-22.7Art/antique trade16,100(0.1%)19,400(0.1%)20.51,700(0.1%)1,900(0.1%)14.7200(0.1%)300(0.1%)26.6Designer fashion64,500(0.3%)75,300(0.3%)16.74,500(0.2%)4,500(0.2%)0.1800(0.3%)700(0.3%)-3.3Video, film &photography43,500(0.2%)48,600(0.2%)11.62,400(0.1%)3,400(0.2%)38.8200(0.1%)200(0.1%)1.7Music & visual &performing arts84,000(0.3%)103,700(0.4%)23.45,700(0.3%)7,300(0.4%)28.8600(0.3%)1,000(0.4%)56.4Publishing148,600(0.8%)151,000(0.6%)1.69,400(0.5%)11,800(0.6%)25.11,300(0.6%)1,200(0.5%)-6.5Software (inclleisure) &computer services220,600(0.9%)281,100(1.1%)27.414,500(0.8%)18,000(0.9%)24.12,300(1.0%)3,000(1.2%)30.6Radio & TV54,400(0.2%)69,800(0.3%)28.33,300(0.2%)2,700(0.1%)-18.5200*(0.1%)200(0.1%)2.4Total creativeindustries788,400(3.3%)908,100(3.6%)15.250,600( 2.6%)59,300(2.8%)17.37,100(3.0%)7,600(3.1%)7.5Total all industries 24,147,600 25,380,300 5.1 1,921,200 2,086,300 8.6 234,100 246,800 5.5Source ABI 1998, 2002* This is the 1999 figure1.10.1 EmployeesTable 3 shows that the number of employees in the sector has risen by 7.5% inGloucestershire between 1998 and 2002 compared with an increase of 17.3%regionally and 15.2% nationally. The number of employees in the creative industriessector amount to about 7,600 persons accounting for about 3.1% of the total numberof employees in Gloucestershire compared to 2.8% in the South West and 3.6%nationally.The figures for each year as provided in Appendices 7 and 9 to 11 show that overallthere has not been a steady increase in employment over the last five years in thecreative industries sector but rather for Gloucestershire and the SW a significant risein 1999 followed by no change in 2000 then another significant rise in 2001 followedby decline in 2002 although not beyond the values for 2000. This is reflectednationally but more evenly.Regarding the spread of employment across sub sectors it is evident from Appendices7 to 14 that Software (incl leisure) & computer services is the largest sub sector interms of employees comprising 1.2% of total employees in Gloucestershire and 0.9%10

and 1.1% for the South West and GB respectively. This is followed by the Publishingsub sector accounting for 0.5% of total employees in Gloucestershire and 0.6% in theSouth West and GB. In Gloucestershire however, employment appeared to decline inthis sub sector between 1998 and 2002 by 6.5% compared with growth in the SouthWest of 25%.The Music & visual & performing arts sub sector in Gloucestershire as shown in Figure1 exhibits a substantial 56% rise between 1998 and 2002, that is twice that of theregion and nationally. The largest decline appears to in the Advertising sub sector witha 41% drop in the number of employees between 1998 and 2002 compared withgrowth albeit small both nationally and regionally.Figure 1 The percentage change in employment in the creative industries sector in GB, SW &Gloucestershire between 1998 & 2002Advertising-4119Architecture-2337Art/antique trade152027Designer fashion-3017Video, film & photography21239Music & visual & performing arts232956Publishing-6225Software (incl leisure) & computerservices312427GloucsRadio & TVTotal-182*7171528SWGB-60 -40 -20 0 20 40 60 80% changeSource ABI 1998, 2002* This figure relates to 1999 and 20021.10.2 EmployersIn terms of the number of employers Table 4 shows that according to the ABI data thatdoes not include the self employed there were of the order of 1,800 businesses in2002 in the county comprising 7.6% of all businesses in the county compared with6.7% and 7.8% regionally and nationally respectively. There had been an overall riseof 5% in the number of businesses between 1998 and 2002 in the county comparedwith 12% in the South West and 10% nationally.Again if the last five years are considered as shown in Appendices 8 and 12 to 14Gloucestershire shows a decline from 2001 to 2002 whereas the South West and GBshow a steady increase over the period.The largest sub sector in terms of number of companies is Software (incl leisure) &computer services with 700 companies comprising 3% of the total number ofcompanies in Gloucestershire and 2% and 3% in the region and nationally11

espectively. Music & visual & performing arts sub sector follows with 300 companiescomprising 1.3% of the total number of companies in Gloucestershire compared to1.2% and 1.6% regionally and nationally respectively.Table 4 The number of employers in the creative industries sector in GB, SW & Gloucestershire in1998 & 2002 (NB Percentage change is based on unrounded figures)Sub sector 1998 2002AdvertisingArchitectureArt/antique tradeDesigner fashionVideo, film &photography11,600(0.6%)13,800(0.7%)3,100(0.2%)14,700(0.7%)7,100(0.3%)GB South West Gloucestershire12,700(0.6%)14,400(0.7%)3,600(0.2%)19,300(0.9%)9,400(0.4%)%change 1998 2002 % change 1998 20029.74.213.731.232.5800(0.5%)1,100(0.6%)300(0.3%)1,400(0.8%)500(0.3%)1,000(0.5%)1,200(0.6%)400(0.2%)1,600(0.8%)600(0.3%)16.613.913.920.231.1100(0.5%)200(0.7%)0(0.2%)200(0.95)100(0.3%)100(0.6%)200(0.8%)0(0.2%)200(0.9%)100(0.3%)%change19.27.512.42.516.5Music & visual &performing arts34,000(1.6%)34,300(1.6%)0.82,200(1.2%)2,400(1.2%)6.8300(1.3%)300(1.3%)4.6Publishing8,700(0.4%)9,000(0.4%)3.0800(0.4%)1,100(0.5%)41.7100(0.4%)100(0.4%)0.5Software (inclleisure) &computer services58,500(2.8%)62,300(2.9%)6.44,300(2.4%)4,400(2.3%)2.4700(3.1%)700(3.0%)-0.3Radio & TV2,900(0.1%)4,500(0.2%)54.6200(0.1%)300(0.2%)55.60*(0.1%)0(0.1%)13.3Total creativeindustries154,500(7.5%)169,400(7.8%)9.611,600(6.4%)13,000(6.7%)12.41,700(7.6%)1,800(7.6%)4.9Total all industries 2,061,800 2,180,400 5.8 182,000 195,400 7.4 22,600 23,900 5.4Source ABI 1998, 2002* This figure relates to 1999In terms of change over the last five years the Radio and TV sub sector appears tohave undergone the largest change of the order of over 50% regionally and nationallybut these percentages do represent relatively small numbers. In Gloucestershire thelargest increases have occurred in the Advertising (19%) and Video, film andphotography (17%) sub sectors according to Table 4 and Figure 2, which is alsoreflected to a certain extent regionally and nationally. A notable exception is thePublishing sub sector that has expanded by 42% regionally compared with less than1% in Gloucestershire and 3% nationally.12

Figure 2 The percentage change in the number of employers in the creative industries sector inGB, SW & Gloucestershire between 1998 & 2002Advertising101719Architecture4714Art/antique trade121414Designer fashion32031Video, film & photography163132Music & visual & performing arts157PublishingSoftware (incl leisure) & computer services0023642GloucsSWGBRadio & TV13*5655Total51012-10 0 10 20 30 40 50 60% changeSource ABI 1998, 2002* This figure refers to 1999 and 20021.11 The creative industries sector in Gloucestershire, comparing the AnnualBusiness Inquiry data with the Gloucestershire Business Link ClientManagement dataA comparison of employment and number of enterprises in Gloucestershire based ontwo different data sources is shown in Table 5. Both sets of data are based on SICcodes, the ABI data has been scaled as explained in the Methodology section and theBusiness Link data has been related to 5 digit SIC where possible and visuallyscanned for those companies whose description does not relate to the creativeindustries sector.Table 5 The number of companies and their employees in the creative industries sector inGloucestershireSub sector No of employees No of companiesBusiness Link(2003)ABI (2002)Business Link(2003)ABI (2002)Advertising 250 500 108 100Architecture 548 500 134 200Art/antique trade 363 300 184 0Designer fashion 495 700 123 200Video, film & photography 518 200 188 100Music & visual & performing arts 498 1,000 259 300Publishing 1,637 1,200 123 100Software (incl leisure) & computer services 4,977 3,000 385 700Radio & TV 115 200 13 0Total 9,401 7,600 1,517 1,800Source: Business Link Client Management database, Dec 200313

On the whole these figures are quite comparable. There are however, notablediscrepancies in the Music & visual & performing arts, Video, film & photography andAdvertising sub sectors in terms of number of employeesIn terms of number of employers the data are more closely comparable with only onenotable exception being the Software (incl leisure) & computer services sub sector.This may be due to on the one hand the ABI using an estimate for small businessesand on the other hand the Business Link data may not be quite up to date for smallbusinesses.Table 6 shows company size in terms of the number of employees and as is generallyreflected across all industrial sectors in the country the majority fall in the 5 or lessemployee size band. When comparing this with ABI data (which at this level isconfidential and therefore cannot be published) the data is comparable but with threenotable exceptions. Firstly the Art/antique trade (a lot less recorded in the ABI data),secondly the Video film and photography (a lot less recorded in the ABI data) andfinally the Software (incl leisure) & computer services (a lot more recorded in the ABIdata).Table 6 Company size in the creative industry sector in GloucestershireSub sectorCompany size band based on number of employees5 or less 6 - 10 11-20 21-50 51-100 101-200 200+ TotalAdvertising 98 6 3 1 108Architecture 107 17 5 5 134Art/antique trade 174 5 4 1 184Designer fashion 111 5 4 2 1 123Video, film & photography 169 10 5 3 1 188Music & visual & performing arts 246 5 5 3 259Publishing 84 12 10 11 5 1 123Software (incl leisure) & computer services 279 55 26 12 5 7 1 385Radio & TV 8 2 1 2 13Total 1,276 117 63 40 12 7 2 1,517Proportion 84.1 7.7 4.2 2.6 0.8 0.5 0.1 100Source: Business Link Client Management database, Dec 2003As explained earlier some of these sectors are not straightforward to measure in termsof the SIC classification, in addition to the nature of employment ie freelance and selfemployed and trying to update something of the order of 24,000 companies over 70%of which fall into the under 5 employee category.An example of some of the larger companies (21 and over) in Gloucestershire isprovided in Appendix 15.14

2.0 Part 22.1 Detailed sector analysisThe creative industries sector is complex as it comprises interlinked industries thatalthough sharing several common interests, needs and difficulties, across thespectrum of new technological developments, also differ widely in the respectivemarket requirements for their products and services.This complexity has resulted in the adoption of a range of methods used to define andaccommodate the diverse requirements each activity demands.In order to achieve some sort of consistency across the sector a considerable amountof effort has been applied in drawing together what is known about the sector, wherethe gaps are and addressing them.To this end as referred to in section 1.5 Setting the Scene, a series of 16 SkillsDialogues were undertaken at sectoral level by the Department for Education andSkills, NTOs and SSCs. They constituted an initial series of consultations with majorindustries, a wide-ranging analysis of existing material on skills supply and demandand those factors influencing skill trends and discussion of the results at a nationalseminar. The final dialogues therefore incorporate all these stages and culminate in anauthoritative skills assessment for each of the broad sector groupings at national leveland, to a limited extent, at regional level.Data for the Dialogues originated from a number of sources including the results of theSkill Foresight reports produced by NTOs and the national datasets including theAnnual Business Inquiry and the Labour Force Survey.In the creative industries sector both sources of data have limitations that relate to thelimited usefulness of SIC codes and the fact that the design industry for example couldnot be matched to SIC codes and was therefore unable to provide sectoral data in aForesight report. In this instance the consequent unevenness of the data wascompensated for by primary research.The sub sectors that make up the Creative industries sector are described in Appendix16 and are covered by two Skill Dialogue reports, firstly Media and creative industriesdealing with:• audio-visual industry (including broadcast, film, video and interactive media,represented by Skillset);• design (represented by the Small Firm Enterprise Development Initiative);• photo-imaging (represented by the Photo-imaging NTO);• publishing, which covers books, journals, newspapers, magazines andelectronic information services (represented by the Publishing NTO).and secondly Tourism and Cultural industries that include:• arts and entertainment (including performing arts, visual arts and craft, literaryarts, arts management and administration, arts development and teaching,technical production and support (represented by Metier)15

These sub sectors correspond to most of the DCMS defined activities but arearranged in a slightly different way in the Skill Dialogue reports. The Advertising andArchitecture sub sectors are not included and Photo-imaging includes three additionalSIC codes. The comparison is shown in Appendix 17.The following sections relate to the findings of these two Skills Dialogues.2.2 EmploymentOverall employment has grown and is projected to continue growing in the creativeindustries sector. There are relatively high levels of “non-traditional” employmentpatterns and flexible forms of employment contract.In the Publishing sub sector 80% of employers use freelance* workers and 50% ofemployers use them in the Audio-visual sub sector. Photo-imaging involves a similarnumber of self-employed people and in the Arts and entertainment sub sector some55% of the workforce were quoted as freelance, volunteer and short term contractstaff.Some 87% of designers work full time. In the Photo-imaging sub sector 46% ofbusinesses employ part time staff and in the Publishing sub sector 20% of theworkforce is part time. Part time working is almost non-existent in the Audio-visual subsector.The Publishing, Audio-visual and Design sub sectors have a predominantly youngworkforce that is well represented by women whereas Photo-imaging has a range ofages. There is significant male domination in certain parts of the Arts andentertainment sector such as Music, Photography and Technical sub sectors.According to Table 7 the sum of the individual sectors accounts for 1,260,000 peopleemployed. This figure could be larger however, as a result of overlap between thesectors.Table 7Sub sectorEmployment in the Creative Industries sector in the UKEmploymentAudio-visual 200,000Design 129,000Photo-imaging 151,000Publishing 280,000Total 760,000Source: Skills Dialogues No 11Sub sectorWorkforceArts and Entertainment 500,000Source: Arts and Entertainment Sector Workforce Dev Plan 2001, Skills Dialogues No 15*Freelance is difficult to define as it appears to be treated in different ways. Publishing & audio use the term torelate to self-employed individuals who work with a variety of companies, while in photo-imaging this term is notused for a similar way of working.16

Within the Audio-visual sub sector New media (defined as digital content creation)represents the largest activity employing 42,000 people. New media has beendescribed more fully in Appendix 18. Employment in the Photo-imaging sub sectorincludes both traditional photographic and digital photographic processes. The largestactivity in Publishing is newspaper publishing with just over 39% of all Publishingemployment. In relation to size of employer, each sub sector is similar in that there area few large companies and a wealth of small ones.The occupational distribution varies across the sectors. Design can be split into twomain occupational groups namely Graphic designers and Product designers. In thePublishing and Audio-visual sub sectors there is a bias towards specialised higherlevel occupations. Significant growth is expected in the number of designers,journalists and media professionals.After London and the South East the South West has the highest percentage of creativeindustries sub sectors. This corresponds to the findings presented in Table 8.his se 30TTable 8 Geographical distribution of employment of four creative industries sub sectorsAudio-visual Design Photo-imaging Publishing%South East 12 15 15 21South West 6 11 9 8London 54 31 19 33West Midlands 3 5 7 5East Midlands 2 4 6 3East of England 4 5 10 4Yorkshire & Humberside 2 8 7 6North West 4 10 10 7North 3 3 3 3Scotland 4 4 8 6Wales 4 4 4 2Northern Ireland 2 1 2 2SourceSource: Skills Dialogues 112.3 QualificationsAudio VisualIndustriesCensus, 2000%LFS, 2001%Photo-imagingworkforce devplan%Publishing NTOSkills Foresight,based on LFSThe creative industries sector tends on average to employ a more highly qualifiedworkforce than that of the UK as a whole.In the Audio-visual sub sector a very high proportion of the labour force holdsgraduate and post graduate qualifications ie over 80% of freelancers are graduates.Technical qualifications are also widely held. In the Design sub sector designers arehighly qualified with 40% qualified to degree level. New entrants in the Photo-imagingsub sector do not appear to be highly qualified, however, in this industry theemployers’ view is that experience is more important. In the Publishing sub sector67% of employees are qualified to level 3 and above and 44% to level 4 and above.The Arts and entertainment sub sector has 83% qualified at level 3 and above andsome 72% of those had either a first or postgraduate degree.17

2.4 Present skill requirementsResults from the Employer Skills Survey (2001) suggest that the vast majority ofestablishments do not have hard-to-fill or skill shortage vacancies and this also appliesto the creative industries sector.2.5 Skill shortage and skill gapsComparing the data on skill gaps and skill shortage vacancies it can be seen thatalmost twice as many establishments suffer from internal skill gaps as they do fromskill shortage vacancies according to the Employer Skills survey (2001)Data from the above survey shows that seven per cent of establishments have internalskill gaps. Grossed up to the whole economy this suggests that 1.9 million employeesare not fully proficient at their jobs.According to Regional Issues Working Group the main skill gaps experienced by thecreative industries sector relates to business skills and these are reflected nationallyand regionally as follows:ManagementSalesMarketingAdministrationAccountancyFinancial planningRecruitment of staffICT skillsDigital technology2.6 Skill gaps by sub sector2.6.1 Audio-visualIn the Audio-visual sub sector a skills gap in ICT has been identified. One of theparticular concerns for the Audio-visual industry is that most ICT teaching and learninghas emphasised basic ‘how to make the technology work’ skills, whereas there is astrong argument that using a computer as a creative learning tool rather than asteaching machine would lead to more enduring change. In addition, there areconcerns about gaps in management and business skills, including sales andmarketing, administration, accountancy, financial planning and staff recruitment.Concern has been expressed about the employability and key skills of new graduateentrants, particularly with young people not being able to ‘find their own learning’.The nature of the skills gaps differ according to the sub-sector within the broaderAudio-visual industry:• television reports skills gaps in mainly vocational skills areas of: graphic design,web design and development, software engineering, freelance make-up artists.There are also some generic skills shortages:18

• producer directing (as a dual role), production management, productionsecretaries, sales and marketing and business management, although thesewill evidently have very sector-specific elements to these areas;• film reports vocational skills gaps in the area of production accountancy, lineproducers, script reading and editing, craft and technical grades, specialistmedia law and generic skills shortages in health and safety;• digital content creation reports gaps in management skills;• animation reports skills gaps in vocational skills such as basic drawing skills,capability to exploit opportunities in digital content creation, pre-production(including scriptwriting, design, storyboard and layout), producing andproduction management and trainers.672.6.2 DesignThe evidence suggests that skills gaps are very limited in the Design sector. To theextent that they do exist, they are for:• managers: the main skill gap areas are in management skills, particularlyproject management skills, other management skills, commercial businessawareness and advanced IT skills;• designers: the main areas of deficiency for designers are in genericcommercial/business awareness skills and customer handling and relationsskills. There are no indications of skill shortages in specific vocational designskills.• One of the biggest skills that new entrants to the Design industry have to learnis commercial awareness, with a mind-set shift required: ‘they have got torealise that it goes beyond creating a work of art; they have got to tie it into thebusiness.’2.6.3 Photo-imagingThe overwhelming skills gaps in the Photo-imaging sector were perceived to beawareness of vocationally-based digital technology and a more generic generalcomputer literacy. These gaps were not limited to technical staff, but also perceivedto exist in management and supervisory staff.The major skill gaps in the sector that are related to the introduction of digital imagingcan be separated into three areas:• knowledge of digital imaging. There is a problem with knowledge about whatchanges are taking place in the sector. Photography related staff need to knowthe ‘pros and cons’ of the new technology and processes relating to it, theyneed to know when it is best to use it, and when it is best not to do so. Theyneed to have enough knowledge to be able to explain this to their customers;19

• knowledge of the actual technology. Staff require technical training at basic,intermediate and higher levels in specific equipment, software and processes.This relates especially to ‘photoshop’, the sector specific standard software forphotograph manipulation, where businesses in the sector feel that there isinsufficient training available to teach people new to the software to be able touse it efficiently.• business skills relating to how to cope with the new changes, particularlycosting and time management. Aside from the problems relating to digitalimaging, there are also problems relating to the interpersonal skills of thephotographers themselves. A requirement of the job is to spend a good deal oftime in a studio with clients and there is a need to be able to communicate well.The Photo-imaging focus group identified a problem with the combination of creativeand technical skills: ‘generally technical staff do not tend to be very creative andcreative staff are not very technical. It is difficult to train someone to be creative, andthe courses available do not train the creative people to be technical’2.6.4 PublishingIn Publishing, the main skills lacking varied according to the occupational areas, withcommon themes being:• that many of the skills that are thought to be lacking are central to that job role.For example, the most common missing skill for managers is genericmanagement skills, for editors, written communication skills. The shortageareas are not peripheral ‘add-on’ skills, but central to the job performance;• that a shortage of IT skills is common across the four higher level occupations;• the need for experienced people is common across nearly all occupations.With the increased attention being paid to new media and IT skills it is perhapspossible that the fundamentals can be forgotten.Comparable data from the national skills survey puts a far greater emphasis oncommunication, customer handling, team working and problem solving skills. Possiblereasons why publishing varies from the national pattern are that:• these skills which have been found to be in shortage nationally are generally a prerequisitefor entry into publishing and it would, therefore, be unusual if these skillswere lacking for existing employees. However, the industry is at the leading edgein the application of IT and new software developments, hence it is in these areaswhere the skill shortages emerge;• the growth in the sector has led to staff receiving an accelerated promotion intonew jobs before they are fully ready and not ‘eased’ into their new roles, leading tothe shortage of experience. This may particularly be a factor in smaller companies.20

2.6.5 Arts and entertainment sub sectorIn the Arts and entertainment sub sector skills gaps have been identified in Customerhandling and management2.7 Future skill requirementsAccording to Skills Dialogue the main factor influencing the future demand for skillsrelates to ICT and this affects the creative industries sector in the following ways.In the Publishing sub sector although print on paper is still the main output this isgradually being taken over by electronic output. The growth of the Interactive mediasub sector has the potential to transform television into a two-way experienceespecially with the advent of broadband. In the Photo-imaging sub sector the newtechnology of digital-imaging will have a great effect all parts of the photography andphotographic supply chain. In the arts and entertainment sub sector it is apparent thatICT and financial skills will be required.The changing patterns of doing business will also have an impact on skills requiredwith technological change influencing the ways in which companies produce theiroutput.This has created a shift towards multi-skilling, flexibility and adaptability. In otherwords employees will need to be able to do their job to a higher standard, at an everincreasingrate.2.8 Education and TrainingDCMS 2000 recognised that education and training are very important in identifyingand developing new creative talent and also developing and sustaining existing talent.However, the complex nature and structure of the creative industries means thataccess to formal education and training is often problematic and limited. One of thebiggest problems is tackling the transition from education to workforce. There is aneed for the relevant training providers, employers, and regional and local agencies towork together to develop clear pathways from school to college to the workplace.It is also suggested by DCMS 2000 that work can be done at pre-16 levels in schoolsto develop creative skills and provide familiarisation courses for those wishing to workwithin the creative industries. Further and Higher Education can be a rich resource forthe regional cultural strategy.2.9 Training provisionThe Skills Dialogues point out that due to diversity of the sector there is an array oforganisations and bodies responsible for workforce development. A list of NTOs/SSCsresponsible for developing the workforce in the creative industries sector are listed insection 2.1.In the Audio-visual sub sector practices vary in relation to activity. Public sectorbroadcasting train and supply external training, commercial broadcasting have trainingand education commitments written into their licenses although current levels ofsupport might degenerate. Large commercial radio companies have well resourcedand structured training schemes and independent producers vary. In the Design sub21

sector 81% of design consultancies specifically develop the skills of their designersand design juniors. All training is customised and the most common method is bycoaching or mentoring, followed by demonstration and off-the-job training.In the Photo-imaging sub sector 88% of businesses said training was important totheir business. Either in-house training is provided, or training via external providers aswell as through internal staff expertise. Manufacturers who used to provide trainingrelated to their products have nearly ceased and consequently there is now little basictraining. As a result basic Photo-imaging skills training is needed and is a priority.In the Publishing sub sector about 90% employers provided some training over thelast year with 80% providing on-the-job training and 66% providing off-the-job training.Penetration however, is relatively shallow. In relation to the art and entertainment subsector the situation is similar with more on-the-job than off-the-job training.2.10 Government Training initiativesWith regard to the Investors in People standard a large proportion of employers withinthe creative industries sector have no involvement.National Vocational Qualifications are available in most of the sub sectors. In theAudio-visual sub sector some 50 National Occupational Standards (NOSs), 43accredited National Vocational Qualifications (NVQs) and 38 accredited ScottishVocational Qualifications (SVQs) for all key occupations are offered. In the Design subsector NVQs are available at level 2, level 3 and level 4. In the Photo-imaging subsector there is a range of vocational qualifications offered including NVQs and SVQs.In Publishing there is currently industry specific level 4 NVQs relating to newspaperjournalism. The uptake of NVQs is very low in the Arts and entertainment sub sector.Take up has been encouraging in the Photo-imaging and Audio-visual sub sectors andless so in the Publishing sub sector.There is a low level involvement in Modern Apprenticeships across the creativeindustries sector.South West Arts reveals that by 2007 the proportion of 55-65 year olds in the sectorwill outnumber the proportion of 16-25 year olds for the first time. This could lead to ashortage of younger workers and a skills deficit amongst older workers. There is aneed to actively encourage life long learning in the existing workforce. Older workerswill have a key role to play if they can acquire key skills to remain in the workforcelonger. The demand for flexible working patterns will increase, which may bring morepressure on families and the work/life balance.22

3.0 ConclusionThe UK’s creative industries sector comprises thirteen sub sectors that cover adiverse range of activities. They are Advertising, Architecture, Art & antiques,Crafts, Design, Designer fashion, Film & video, Interactive leisure software, Music,Performing arts, Software & computer services, Publishing, Television & radio.In 1997 the Creative Industries Task Force was set up to initially define creativeindustries and identify their contribution to the economy followed by investigation ofthe problems and opportunities relating to these industries and devise a plan ofaction to enable the sector to promote and sustain growth and to enhance itseconomic impact.Over the last five years a considerable amount of study and strategic planningdown to regional level has been applied to the activities relating to creativeindustries resulting in the development from a rather isolated and diverse range ofactivities into an economically important and growing sector.In response to the National Skills Task Force requirements NTOs have addressedskills issues in a number of industrial sectors through the production of SkillsDialogues, two of which relate to the creative industries sector and haveconsequently provided a great amount of useful data.The latest development in 2003 has culminated in the creation of a Creative andCultural Skills Council that has already attracted considerable membership fromthe creative industries sector.In 2001 the creative industries sector employed 1.3m people in the UKrepresenting 4% of UK employment. The creative industries sector is one of thefastest growing parts of the economy both nationally and regionally. The sector inthe South West employs around 90,000 people, accounting for 5% of the region’sworkforce.There is a preponderance of self employed workers, freelance workers, part timeworkers and small and medium sized businesses in many parts of the creativeindustries. Around 90% of companies in the sector employ fewer than 10 people.Sub sectors that have shown above average increases in employment between1997 and 2001 are Software (incl leisure) and computer services, Design anddesigner fashion and Music and the visual and performing arts.London and the South East contain the majority of creative industries but the SouthWest is the only other region with 2 clusters of creative industry relating toestablished Antique dealing and exporting activities and embryonic TV/film/digitalmedia activities.Data on employment have been obtained from the National Statistics AnnualBusiness Register by matching the creative industries activities to the StandardIndustrial Classification codes. Of the thirteen activities defined by the DCMS, Craftand Design cannot be matched and the remainder have been amalgamated toform nine sub sectors that can be identified down to local level.23

In Gloucestershire there are about 7,600 employees in the creative industriessector representing 3.1% of the county’s employees. The number of employees inthe sector has risen by 7.5% between 1998 and 2002 compared with an increaseof 17% regionally and 15% nationally.In terms of employers in 2002 there were about 1,800 businesses inGloucestershire relating to the creative industries sector accounting for about 7.6%of all the businesses in the county and there has been an overall rise of 5% in thenumber of businesses between 1998 and 2002.The Skills Dialogues reports provide an authoritative assessment of the subsectors constituting the creative industries sector. Data has come from a number ofsources; where secondary data was insufficient primary data was undertaken toprovide a coherent picture. The sub sectors used in these reports, althoughcorresponding to the DCMS definition, are arranged in a slightly different way.They comprise five areas of activity and exclude Advertising and Architecture.The five creative industries sub sectors may account for about 1,260,000 peopleemployed in the UK including the self employed and part time workers.The creative industries sector tends on average to employ a more highly qualifiedworkforce than that of the UK as a whole.Almost twice as many establishments suffer from internal skill gaps as from skillshortages.According to the Regional Issues Working Group the main skill gaps identifiedacross the creative industries sector generally relate to Business skills and occur inManagement, Sales, Finance, Administration, Accountancy, Financial planning,Recruitment of staff, ICT skills and Digital technology.The main factor influencing future demand for skills relates to ICT and affects allthe creative industries sub sectors. As a result employees will need to be able todo their job to a higher standard at a constantly increasing rate.The complex nature and structure of the creative industries sector means thataccess to formal education and training is often problematic and limited. One of thebiggest problem areas is the transition from full time education to the workforce.There is a requirement for relevant training providers, employers and regional andlocal agencies to work together to develop clear pathways from school to college tothe workplace.Due to the diversity of the sector there is an array of organisations responsible forworkforce development. However, much of the workforce training appears to beon-the-job.There is a range of NVQs available in most of the creative industries sub sectors.There is however, little involvement in the Modern Apprenticeship scheme.In an increasingly ageing population there is a requirement to encourage lifelonglearning in the existing workforce.24

4.0 Bibliography1. Beer J et al (2002) Plymouth Travel-To-Work Area Sectoral Workforce DevelopmentProgramme: Medium to Long Term Skills Needs: Key Sector: Creative IndustriesSocial Research & Regeneration Unit, University of Plymouth2. Culture South West (2001) In Search of Chunky Dunsters … A Cultural Strategy for theSouth West, Culture South West3. Culture South West (2003) Joining the Dots An Audit and Analysis of existingquantitative and Qualitative Research Data on the Cultural Sector in the South West ofEngland 2003, Culture South West4. Department for Culture, Media and Sport (1998) Creative Industries Mapping Document.DCMS, London5. Department for Culture, Media and Sport (2000), The Report of the Regional IssuesWorking Group, Creative Industries : The Regional Dimension DCMS, London6. Department for Culture, Media and Sport (2001) Creative Industries Mapping Document.DCMS, London7. Department for Culture, Media and Sport (2002) Regional Cultural Data Framework : FinalTechnical Report , DCMS8. Department for Culture, Media and Sport (2003) Creative Industries Economic EstimatesStatistical Bulletin, DCMS9. Department for Education and Employment (1999) Delivering Skills for All: SecondReport of the of the National Skills Task Force, DfEE10. Department for Education and Employment (2000) Skills for All: Proposals for a NationalSkills Agenda Final Report of the National Skills Task Force, DfEE11. Department for Education and Skills (2001) Building a stronger network: Developing therole of National Training Organisations, DfES12. Department for Education and Skills (2001) Employers Skill Survey 2001, DfES13. Digital Content Forum et al (2002) Survey of employment and skill needs for thedevelopment of digital content for the broadband sector, DCF14. Metier (2001) Arts and Entertainment Sector Workforce Development Plan: MetierResearch Report No 315. Parker M (1999), Skills Task Force Research Paper 12: Skills Requirement in theCreative Industries, DfEE16. Skill Dialogues: Listening to Employers SD11(2002) An Assessment of Skill Needs in theMedia and Creative Industries, DfES17. Skill Dialogues: Listening to Employers SD 15(2002) An Assessment of Skill Needs in theTourism and Cultural Industries, DfES18. Skillset (2000) Audio-visual Industries : Employment Census. Skillset NTO, London19. South West Arts (2002), South West Arts Making the Arts Matter Our Plan 2002-200420. Trend Business Research (2001) Business Clusters in the UK: A First Assessment:Volumes 1,2 & 3 Dti, London25

Useful WebsitesArts Council of EnglandCulture South WestDepartment for Culture, Media and Sport (DCMS)Department for Education and SkillsGloucestershire ArtsUpdateSkillnet SWSouth West ArtsSouth West Regional Development AgencySouth West ScreenSW Skills and Learning Intelligence ModuleYour Creative Futurewww.artscouncil.org.ukwww.culturesouthwest.org.ukwww.culture.gov.ukwww.dfes.gov.ukwww.artsupdate.co.ukwww.skillnetsouthwest.comwww.swa.co.ukwww.southwestrda.org.ukwww.swscreen.co.ukwww.swslim.org.ukwww.yourcreativefuture.org26

Appendices27

Appendix 1: Current DCMS Sector ClassificationsSource: Standard Industrial Classification (UK) 1992, 1997 revisionAs a best fit between SIC and everyday terms DCMS have constructed the following list:Industry/SIC class:Film22.32 reproduction of video recording (+)92.11 motion picture and video production92.12 motion picture and video distribution92.13 motion picture projectionMusic and the visual and performing arts22.14 publishing of sound recordings22.31 reproduction of sound recording (+)74.81 photographic activities (+)92.31 artistic & literary creation & interpretation92.32 operation of arts facilities92.34 other entertainment activities nec (+)92.72 other recreational activities nec (+)Architecture74.20 architectural and engineering activities and related technical consultancy (+)Publishing22.11 publishing of books22.12 publishing of newspapers22.13 publishing of journals & periodicals22.15 other publishing (+)92.40 news agency activitiesComputer games, software, electronic publishing22.33 reproduction of computer media (+)72.20 software consultancy & supplyRadio and TV92.20 radio & television activitiesAdvertising74.40 advertisingDesigner fashion17.71, 17.72, 18.10, 18.21, 18.22, 18.23, 18.24, 18.30, 19.30 these codescover manufacture of clothes and footwear, within which are designer fashionactivities (+)74.84 other business activities nec (+)28

Art/antiques trade52.48/9 retail sale in specialised stores nec (+)52.50 retail sale of second-hand goods in stores (+)(+) This is not necessarily a good match. In these cases the creativeindustries are included with other activities and we have taken only aproportion of the data for the class. We have not (with one exception) referredto the subclasses now available in the SIC (e.g. 74.20/1 for architecturalactivities) because the data are not yet generally available for subclasses.There is nothing listed by SIC for crafts (for which we need an analysis byoccupation, which is also used to construct statistics for the full labour force ofthe creative industries).Scaling factors for Creative IndustriesSIC CI share of total class (%)22.32 2522.31 2574.81 2592.34 5092.72 2574.20 2522.15 5022.33 2517.71-19.30 0.574.84 2552.48/9 552.50 529

Appendix 2: Relevant SOC categories for the creative industries: based on SOC(90) codes in Creative Industry Mapping DocumentSOC 90 DescriptionSOC 2000equivalent123 Advertising and public relation managers 1134176 Entertainment and sports managers 1225214 Software engineers 2132260 Architects 2431320 Computer Analysts/programmers 2132380 Authors, writers, journalists 34381 Artists, commercial artists, graphic designers 34382 Industrial designers 34383 Clothing designers 34Actors, entertainers, stage managers,384 producers and directors 34385 Musicians (excludes military bandsmen) 34386Photographers, camera, sound and videoequipment operators 34518Goldsmiths, silversmiths, precious stoneworkers 5495530 Smiths and forge makers 5211550 Weavers 5411551 Knitters 5411556 Tailors, tailoresses and dressmakers 5414/5419561 Printers (so described) 5422562 Bookbinders and print finishers 5423563 Screen printers 5424571 Cabinet makers 5492590 Glass product and ceramics makers 5491593 Musical instrument makers, piano tuners 5494791 Window dressers, floral arrangers 5496/549930

Appendix 3: Strategic process for sector skills planning and actionIn recent years three new processes have been introduced to support NTO work on skills. These are:• Skills Foresight• Skills Dialogues• Sector Workforce Development PlansSkills ForesightWhile the broad picture of UK and national skills needs and trends are well known, these need to becomplemented by more detailed sectoral analyses as a basis for effective skills planning. SkillsForesight reports are key documents representing each NTOs analysis of its sector’s skills needs andthe identification of key priorities. The period a report covers will vary depending on the nature of eachsector.The production of a Skills Foresight report is closely linked to an NTOs capability to generate labourmarket information and intelligence. It requires the ability to look ahead, in consultation with arepresentative cross-section of employers, industry bodies and researchers, at the future skills needs ofthe sector.Most sector-based NTOs have completed their first Skills Foresight reports. At this time, we wouldexpect each NTO to substantially review and produce an updated report at least once every threeyears.Skills DialoguesIn England the programme of Skills Dialogues, which builds on recommendations made by the NationalSkills Task Force, seek to raise the profile and use of skills assessments. They aim to provide a set ofstandard reports on the skill needs of 15 broad industrial groupings, bringing together an analysis of thedemand and supply sides to identify employers' skill needs and gaps and the extent to which thoseneeds are being met. The Dialogues work through broad NTO Groups rather than individual NTOs, anddraw in other partners to provide a rounded assessment. This offers a manageable number ofassessments for major stakeholders such as the LSC and RDAs.There is a two-year rolling programme of sector Skills Dialogues involving a range of partners withdirect interest in the skills needs of the sector. Following each Skills Dialogue conclusions arepresented in a definitive report (including case studies). These are circulated widely to influenceworkforce development plans; and direct the attention of employers and prospective employees topriority skills issues for the sector.Sector Workforce Development PlansSector Workforce Development Plans are self-standing strategic documents covering a period ofbetween three and five years. The structure of Sector Workforce Development Plans is set out in aguide produced by the NTO National Council and covers:• a description of the sector and its workforce;• stakeholder maps showing roles and responsibilities;• key skills issues;• the identification of 3-6 priorities for the sector• the expected impact of action on the skills available to the sector.The first plans are now being produced and will benefit a range of partners by clearly communicatingthe skills priorities of the sector. While NTOs are responsible for producing a draft plan for consultation,the final plan is agreed by a range of partners with a direct interest in the delivery of skills to the sector.Although initially an initiative funded and piloted for use in England, the plans offer the potential for usemore widely in Great Britain with national and regional breakdowns reflecting the geographicaldisposition of the sector. They also offer the potential to incorporate sector targets and skillsbenchmarking information.31

3.25 The three processes have developed independently and without a central focus provided by theproposed core roles for NTOs outlined above. These initiatives, together with the annual report ofprogress, offer the potential for development into a strategic process for planning and action, addingsignificant benefits for NTOs and their key partners. These changes might include:• aligning the timetables for the Skills Foresight, Skills Dialogue and Sector WorkforceDevelopment Plans to match national, sectoral and regional planning needs;• setting clear minimum quality standards for the quality of Skills Foresight, including links withthe UK Foresight processes managed by the Office of Science and Technology andinternational benchmarking of skills;• expanding the Skills Dialogue process to include a wider range of partners;• reflecting national sectoral skills priorities in the membership of Skills Dialogue groups;• developing sector workforce development plans to provide for clear commitments from each ofthe main partners of the action to be taken to meet the skills priorities in the sector;• making clear how these plans feed into the wider workforce development planning system coordinatedby the LSC, CETW and enterprise network in Scotland.During 2001 we plan to explore, through a Workforce Development Planning Group facilitated by DfEE,how to develop this process to meet the needs of sectors, government and the national and regionalbodies in England, Scotland and Wales responsible for education and training delivery.32

Appendix 4: INDUSTRY HIGHLIGHTS - A description of industry sub sectorsfrom DCMS Creative Industries Mapping Document 2001Advertising: The UK is a centre for advertising best practice. London, one of thethree main centres for the global advertising industry, is used increasingly as a basefor targeting pan-European and global markets. Expenditure on online advertising isshowing strong growth.The ability to find skilled and creative people, essential to growth, continues to be adifficulty and there remains a need to develop better training methods. The industrystill needs to nurture more SME (Small and Medium-size Enterprise) clients, and thereis a shift in power from business to customer which the industry will need to reflect.Architecture: There is a large increase in the number of architects working overseasand the value of export earnings. There was a spectacular rise in new commissionsfor leisure and cultural buildings in the latter half of the 1990s. National Lottery andlocal authority funding for arts and cultural projects are significant in increasingdemand.The use of e-commerce and e-business by architects is still at an early stage.Constraints on ICT use include low bandwidth and incompatibility of building designsoftware.There is a need to export architectural expertise more proactively, and the underrepresentationof both women and ethnic minorities remains a concern.Art and Antiques Market: The UK is home to the second largest art and antiquesmarket in the world. It has the second largest number of art and antiques businessesand the highest number of employees in Europe. London is the Central Europeancommodity exchange for art and antiques. The British Council continues to play animportant role in ensuring international exposure of British artists.The proposal for an EU Directive harmonising droit de suite may encourage vendorsto switch high-value sales to New York, Geneva and other non-EU markets. For lowervalue sales, the cost of applying the right may prove disproportionate to the benefit toartists.Crafts: Increasing numbers of students are undertaking crafts and design courses atHigher Education level, and are using higher level skills in production. British crafts arereceiving more international recognition, in part due to the Craft Council's proactiveexport promotion efforts. Technology is becoming increasingly important forcommunication and marketing.The lack of robust industry information is inhibiting development of the sector. There isa need for more good quality trade fairs such as the Chelsea Crafts Fair. There is aneed for better training opportunities particularly among young makers and collegeleavers, and to support the professional development needs of practitioners.Design: Design is integral to most economic activities. The UK - widely regarded as aworld leader across all design disciplines - is the top exporter of design worldwide,with consultancies estimated to generate £1 billion in export earnings in 2000. Ourdesign education system is held in high regard internationally, reflected in the growthof overseas students (up 112% between 1994/5 and 1998/9).33

Whilst there are a range of bodies representing parts of the industry, there is nooverarching body which represents all parts of the design industry, and which couldhelp to inform policy development. Some concerns have been expressed over thequality of recent leavers from design schools, attributed in part to a diminution of oneto-onetime with tutors during courses.Designer Fashion: The UK has the fourth largest designer fashion industry in theworld, with 60% of companies exporting. There is potential for growth in the domesticmarket with the introduction of designer diffusion ranges. The Internet is providing agood opportunity for young designers to have a presence in the market at low cost.The shortage of robust data on the industry impedes companies abilities to identifytrends and opportunities. There is a need to equip new designers with managementskills to ensure business survival and provision of finance to develop businesses.There needs to be better relationships between designers and manufacturers, and thedevelopment of more retail opportunities outside London.Film: UK films were highly successful in 1999 and 2000 in terms of awards, and thefortunes of the UK feature film industry are more positive now than at the start of the1990s. Digitisation may result in savings of 90% in film print production anddistribution. There is large potential for the export of digital equipment for cinemas,and new markets are being created through DVD and Pay-TV.The distribution process, dominated by large US companies, fails to prioritise UK films.There is an insufficient number of integrated UK companies operating acrossdevelopment, production and distribution. There is a need to develop reliable up-todatestatistics on the industry, and to identify ways for new enterprises to secureinvestment and achieve sustained long term growth. There are also concerns over theinvestment needed to move to digital transmission.Interactive Leisure Software: In terms of consumption, the UK is the third largestmarket after the US and Japan. It is arguably the games industry's most importantEuropean territory, and therefore home to subsidiaries of most of the world's majorgames publishers. Although most games studios comprise a single team of 5-15people, there are now a number of highly capitalised studios employing 50 or more.Leisure software is inherently unstable, subject to limited technology and product lifecycles, resulting in “famine and feast”. The industry continues to experience difficultiesin attracting UK-based funding. Technological developments may allow creators tobypass publishers in future, similar to the situation in music. There remains a need formore robust data on the industry.Music: In 1999 the UK was the third largest record sales market in the world, and themarket leader in Europe. Patterns of consumption of music have increasinglydiversified, in relation to both audiences and expenditure. Institutional sectors havecombined spending in the region of £350 million. On-line music sales are projected todouble in each of the next two years.E-commerce is challenging traditional systems of delivery, which may impact onemployment in certain areas. Online distribution poses problems for content creators,e.g. protection of their rights and payment, and for consumers because of theperceived insecurity of online financial transactions. Piracy remains a key problem,and Internet piracy is spreading rapidly.34

Performing Arts: There are over 800 formal theatre performance venues, and over500 companies producing professional drama, dance, opera and music theatre in theUK. There is also a strong amateur tradition in this area. There are some 550 festivalseach year, some 40 of which have strong commitment to the performing arts. TheEdinburgh International Festival is by far the largest.As attendances overall are static, the sector does not demonstrate strong growth. Thehighly developed skills of performers and technicians and the capital stock of new andrefurbished buildings are not being used to the full. There is a higher level ofdependence on market support than in other European countries, resulting in a fear ofcreative risk-taking. There is a need to encourage more private support, and for morerobust data on the sector.Publishing: Retail sales of books in 1999 are forecast to have increased by 10%over the previous year. The industry showed a balance of trade surplus of £690 millionin 1999. Over 80% of UK adults read a consumer magazine, and the UK isresponsible for one-sixth of all new media titles available worldwide. Governmentinitiatives on literacy are creating increases in sales. Copyright and intellectualproperty rights protection remain key issues, as does payment for content. There areconcerns over the speed at which mergers and acquisitions are taking place. There isa need to develop skills, both technical and managerial, particularly in electronicpublishing, where managing rapid growth has proved problematic. Finance forbusiness development and short-term cashflow management are also concerns.Software: The UK is the second largest IT market in Europe after Germany. UKcompanies earn around one-third of their revenues from exports, and employment inthe sector continues to show double digit growth rates. The UK can offer some highlydeveloped sector specific software skills, e.g. in banking and finance. 90% of UKemployees now work in businesses that are connected to the Internet (on a par withthe US's 93%).The lack of availability of specific skills is likely to remain a barrier to growth.Television and Radio: The UK television industry is acknowledged as one ofEurope's most dynamic. Satellite and cable audiences continue to increase.Commercial radio is forecast to grow at twice the rate of other media in 2000 (12%).Digital technology, the Internet and developments in telecommunications are allowingfor a number of new and innovative methods of service delivery by TV and radio.35

Appendix 5: Numbers of VAT- based businesses in the creative industries in Great BritainAdvertisingArchitectureArt &AntiquesDesignerfashionVideo, film &photographyMusic and the visualand performing artsPublishingSoftware, computer games,and electronic publishing Radio and TV Total1996 10,600 3,700 1,400 1,400 4,100 33,100 7,200 48,100 2,300 111,9001997 10,400 3,800 1,500 1,400 4,800 32,600 7,000 49,500 2,300 113,3001998 10,300 3,900 1,600 1,300 5,500 32,500 6,800 52,600 2,300 116,8001999 10,000 4,000 1,700 1,300 6,000 32,200 6,800 55,700 2,700 120,4002000 10,000 3,800 1,800 1,300 6,500 32,500 6,700 56,700 3,000 122,3002001 10,100 3,700 1,800 1,300 6,800 32,600 6,700 56,100 3,400 122,5002002 10,100 3,100 1,800 1,300 7,400 32,300 6,700 55,800 3,600 122,100Source: Estimates based on Interdepartmental Business Register, Office for National Statistics36

Appendix 6: Creative industries employment : Great BritainAdvertisingArchitectureEmployment in Creative Industry companiesArt &AntiquesCraftsDesign &designer fashionVideo, film &photographyMusic and thevisual andperforming artsPublishingSoftware, computergames, andelectronicpublishing Radio and TV Total-Jun-02 88,600 82,700 21,700n/a 54,500 202,600 212,100 351,500 98,600 1,115,900Employment in creative occupations in businesses outside the Creative IndustriesJun-02 137,300 29,800 - 117,200 n/a 12,000 46,800 80,400 231,600 11,800 787,400Total Creative EmploymentJun-95 192,000 97,400 19,700 122,400 88,500 50,800 220,000 333,700 284,500 96,600 1,505,700Jun-96 192,000 108,300 19,700 103,300 95,200 46,200 218,000 327,400 327,400 99,300 1,536,800Jun-97 203,000 99,100 20,400 100,900 89,400 52,600 237,600 317,000 393,400 98,400 1,611,600Jun-98 207,700 101,500 20,100 127,200 98,200 50,700 229,000 328,700 436,700 100,400 1,700,300Jun-99 204,000 103,400 21,100 102,800 104,200 56,100 261,100 337,200 511,000 92,200 1,793,100Jun-00 209,500 107,000 21,300 118,200 109,600 57,400 246,200 304,900 558,400 112,200 1,844,700Jun-01 211,700 106,900 21,200 122,200 116,100 62,600 238,000 306,500 579,700 110,300 1,875,200Jun-02 225,900 112,600 21,700 117,200 123,900 66,500 249,500 292,500 583,000 110,400 1,903,300Annual growth1995-2002 2% 2% 1% -1% 5% 4% 2% -2% 11% 2% 3%1997-2002 2% 3% 1% 3% 7% 5% 1% -2% 8% 2% 3%2001-2002 7% 5% 2% -4% 7% 6% 5% -5% 1% 0% 1%These data show the numbers of people employed in the creative industries or creative occupations in Great Britain. The coverage of these data is broader than for elsewhere in the bulletin.This is since, unlike for exports and GVA, it is possible to count jobs in creative occupations in companies which are classed as being outside of the Creative Industries, e.g. design engineers orgraphic designers who work in a large company whose main activity is manufacturing.Source: Analysis of National Statistics Labour Force survey37

Appendix 7: Comparison of the number of employees in the creative industries sector for Great Britain, South West andGloucestershire. Figures in brackets represent employees in the sub sectors as a proportion of total employees.Great Britain South West GloucestershireAdvertisingArchitectureArt/antique tradeDesigner fashionVideo, film &photographyMusic & visual &performing artsPublishingSoftware (inclleisure) &computer servicesRadio & TVTotal creativeindustries1998 1999 2000 2001 2002 1998 1999 2000 2001 2002 1998 1999 2000 2001 200283,700(0.3%)84,500(0.3%)94,600(0.4%)72,900 75,100 75,800(0.3%) (0.3%) (0.3%)16,100 16,400 17,500(0.1%) (0.1%) (0.1%)64,500 69,700 74,800(0.3%) (0.3%) (0.3%)43,500 43,800 45,000(0.2%) 0.2%) (0.2%)84,000 94,400 95,700(0.3%) (0.4%) (0.4%)148,600 151,500 149,300(0.8%) (0.6%) (0.6%)220,600 253,300 272,700(0.9%) (1.0%) (1.1%)54,400 68,200 68,100(0.2%) (0.3%) (0.3%)788,400 856,900 893,600(3.3%) (3.5%) (3.6%)90,800(0.4%)84,300(0.3%)4,000(0.2%)4,200(0.2%)4,500(0.2%)4,900(0.2%)77,100 75,000 5,000 4,900 4,900 5,600(0.3%) (0.3%) (0.3%) (0.3%) (0.2%) (0.3%)18,900 19,400 1,700 1,600 1,700 1,800(0.1%) (0.1%) (0.1%) (0.1%) (0.1%) (0.1%)75,200 75,300 4,500 4,100 4,000 4,700(0.3%) (0.3%) (0.2%) (0.2%) (0.2%) (0.2%)48,400 48,600 2,400 2,900 3,400 3,600(0.2%) (0.2%) (0.1%) (0.1%) (0.2%) (0.2%)103,400 103,700 5,700 6,700 6,500 7,100(0.4%) (0.4%) (0.3%) (0.3%) 0.3%) (0.3%)155,100 151,000 9,400 10,500 9,800 10,600(0.6%) (0.6%) (0.5%) (0.5%) (0.5%) (0.5%)292,300 281,100 14,500 16,100 15,800 19,200(1.2%) (1.1%) (0.8%) (0.8%) (0.8%) (0.9%)78,000 69,800 3,300 4,100 4,300 3,700(0.3%) (0.3%) (0.2%) (0.2%) (0.2%) (0.2%)939,200 908,100 50,600 55,200 55,000 61,200(3.7%) (3.6%) ( 2.6%) (2.8%) (2.7%) (3.0%)4,300(0.2%)900(0.4%)800(0.3%)900(0.4%)800(0.4%)500(0.2%)5,400 700 700 700 600 500(0.3%) (0.3%) (0.3%) (0.3%) (0.2%) (0.2%)1,900 200 200 200 200 300(0.1%) (0.1%) (0.1%) (0.1%) (0.1%) (0.1%)4,500 800 600 700 700 700(0.2%) (0.3%) (0.3%) (0.3%) (0.3%) (0.3%)3,400 200 200 200 300 200(0.2%) (0.1%) (0.1%) (0.1%) (0.1%) (0.1%)7,300 600 800 800 900 1,000(0.4%) (0.3%) (0.4%) (0.3%) (0.4%) (0.4%)11,800 1,300 1,300 1,200 1,100 1,200(0.6%) (0.6%) (0.5%) (0.5%) (0.4%) (0.5%)18,000 2,300 2,600 2,700 3,100 3,000(0.9%) (1.0%) (1.1%) (1.1%) (1.3%) (1.2%)2,700 - 200 200 300 200(0.1%)(0.1%) (0.1%) (0.1%) (0.1%)59,300 7,100 7,500 7,500 7,900 7,600(2.8%) (3.0%) (3.2%) (3.1%) (3.3%) (3.1%)Total all industries 24,147,600 24,641,300 25,059,200 25,282,500 25,380,300 1,921,200 1,963,100 2,007,900 2,075,300 2,086,300 234,100 236,800 237,000 239,500 246,800Source: ABI 1998, 1999, 2000, 2001, 2002NB Numbers may not add due to rounding38

Appendix 8: Comparison of the number of employers in the creative industries sector for Great Britain, South West andGloucestershire. Figures in brackets represent employers in the sub sectors as a proportion of total employers.AdvertisingArchitectureArt/antique tradeDesigner fashionVideo, film &photographyMusic & visual &performing artsPublishingSoftware (inclleisure) &computer servicesRadio & TVTotal creativeindustriesGreat Britain South West Gloucestershire1998 1999 2000 2001 2002 1998 1999 2000 2001 2002 1998 1999 2000 2001 200211,600(0.6%)13,800(0.7%)3,100(0.2%)14,700(0.7%)7,100(0.3%)34,000(1.6%)8,700(0.4%)58,500(2.8%)2,900(0.1%)154,500(7.5%)12,500(0.6%)14,600(0.7%)3,300(0.2%)16,900(0.8%)7,800(0.4%)34,500(1.6%)8,900(0.4%)62,800(3.0%)3,500(0.2%)164,700(7.7%)12,700(0.6%)14,600(0.7%)3,400(0.2%)18,000(0.8%)8,300(0.4%)34,600(1.6%)8,900(0.4%)62,900(2.9%)3,900(0.2%)167,400(7.7%)12,700(0.6%)14,4000.7%)3,400(0.2%)18,200(0.8%)8,800(0.4%)34,700(1.6%)8,800(0,4%)63,600(2.9%)4,100(0.2%)168,800(7.8%)12,700(0.6%)14,400(0.7%)3,600(0.2%)19,300(0.9%)9,400(0.4%)34,300(1.6%)9,000(0.4%)62,300(2.9%)4,500(0.2%)169,400(7.8%)800(0.5%)1,100(0.6%)300(0.3%)1,400(0.8%)500(0.3%)2,200(1.2%)800(0.4%)4,300(2.4%)200(0.1%)11,600(6.4%)900(0.5%)1,100(0.6%)400(0.2%)1,500(0.8%)500(0.3%)2,300(1.2%)800(0.4%)4,500(2.4%)200(0.1%)900(0.5%)1,200(0.6%)400(0.2%)1,600(0.8%)500(0.3%)2,400(1.2%)800(0.4%)4,400(2.3%)300(0.1%)900(0.5%)1,200(0.6%)400(0.2%)1,600(0.8%)600(0.3%)2,400(1.3%)800(0.4%)4,400(2.3%)300(0.1%)1,000(0.5%)1,200(0.6%)400(0.2%)1,600(0.8%)600(0.3%)2,400(1.2%)1,100(0.5%)4,400(2.3%)300(0.2%)100(0.5%)200(0.7%)0(0.2%)200(0.95)100(0.3%)300(1.3%)100(0.4%)700(3.1%)100(0.5%)200(0.8%)0(0.2%)200(1.0%)100(0.3%)300(1.3%)100(0.5%)700(3.1%)- 0Total all industries 2,061,800 2,128,500 2,160,100 2,168,700 2,180,400 182,000 187,800 191,500 193,700 195,400 22,600 23,400 23,800 23,900 23,900Source: ABI 1998, 1999, 2000, 2001, 2002NB Numbers may not add due to rounding12,300(6.6%)12,500(6.5%)12,600(6.5%)13,000(6.7%)1,700(7.6%)(0.1%)1,800(7.7%)100(0.6%)200(0.8%)0(0.2%)200(1.0%)100(0.3%)300(1.3%)100(0.4%)700(3.1%)0(0.1%)1,800(7.7%)100(0.6%)200(0.8%)0(0.2%)200(0.9%)100(0.3%)300(1.3%)100(0.4%)700(3.1%)0(0.1%)1,900(7.8%)100(0.6%)200(0.8%)0(0.2%)200(0.9%)100(0.3%)300(1.3%)100(0.4%)700(3.0%)0(0.1%)1,800(7.6%)39

Appendix 9:Number of employees in the creative industries sector in GB1,000,000900,000800,000700,00019981999200020012002600,000Employees500,000400,000300,000200,000100,0000Advertising Architecture Art/antiquetradeDesignerfashionVideo, film &photographyMusic & visual& performingartsPublishingSoftware (inclleisure) &computerservicesRadio & TVTotal creativeindustries40

Appendix 10:Number of employees in the creative industries sector in the South West70,00060,00050,00019981999200020012002Employees40,00030,00020,00010,0000Advertising Architecture Art/antiquetradeDesignerfashionVideo, film &photographyMusic & visual& performingartsPublishingSoftware (inclleisure) &computerservicesRadio & TVTotal creativeindustries41

Appendix 11:Number of employees in the creative industries sector in Gloucestershire9,0008,000Employees7,0006,0005,0004,000199819992000200120023,0002,0001,0000Advertising Architecture Art/antiquetradeDesignerfashionVideo, film &photographyMusic & visual& performingartsPublishingSoftware (inclleisure) &computerservicesRadio & TVTotal creativeindustries42

Appendix 12:Number of employers in the creative industries sector in GB180,000160,000Employers140,000120,000100,00080,0001998199920002001200260,00040,00020,0000Advertising Architecture Art/antiquetradeDesignerfashionVideo, film &photographyMusic & visual& performingartsPublishingSoftware (inclleisure) &computerservicesRadio & TVTotal creativeindustries43

Appendix 13:Number of employers in the creative industries sector in the South West14,00012,000Employers10,0008,0006,000199819992000200120024,0002,0000Advertising Architecture Art/antiquetradeDesignerfashionVideo, film &photographyMusic & visual& performingartsPublishingSoftware (inclleisure) &computerservicesRadio & TVTotal creativeindustries44

Appendix 14:Number of employers in the creative industry in Gloucestershire2,0001,8001,6001,4001,20019981999200020012002Employers1,0008006004002000Advertising Architecture Art/antiquetradeDesignerfashionVideo, film &photographyMusic & visual& performingartsPublishingSoftware (inclleisure) &computerservicesRadio & TVTotal creativeindustries45

Appendix: 15 Some of the larger companies (21 employees and over) in GloucestershireCompany Name Activity District PostcodeAdvertisingArnold Designs Ltd Promotional Items Stroud GL6 8NRArchitectureRoberts Gardner Ltd Architects & surveyors Gloucester GL1 2NEAnshen Dyer Associates Architects Cheltenham GL50 1TEDyer Associates Ltd Architects Cheltenham GL50 1TEStephen Limbrick Associates Architects Gloucester GL1 2LGAstam GBC ConsultancyArchitects, surveyors, engineers &planning consultantsGloucester GL1 3HFArt/antique tradeGloucester Antique Centre Antique centre Gloucester GL1 2LEDesigner fashionPresentation Cases (Wotton) LtdManufacture of presentation cases forjewellery, medals, coins etc46StroudGL12 7JPAllan Webb LtdTechnical documentation/documentscanningStroud GL10 3RFThe Jermyn Street Shirtmakers Bespoke & stock shirtmaking Gloucester GL2 4NZVideo, film & photographyH S Baldwin (Stroud) Ltd Photographic processors Stroud GL10 2DGOdeon Cinema Cinema Cheltenham GL52 2NEFocol Photography Photographers - General Gloucester GL1 5LPUCG Gloucester Cinema Gloucester GL1 5SFMusic & visual & performingartsIsis Duplicating Co Ltd Audio cassette duplicating Cheltenham GL51 9NHGloucestershire SymphonyOrchestraOrchestra Stroud GL4 8EAEveryman Theatre Theatre & entertainments Cheltenham GL50 1HQPublishingThe British Publishing CompanyLtdPublishers of Advertising FundedPublications, Local AuthorityDirectories/Guides. Design and Print.GloucesterGL1 1HXCollins Maps & Atlases Map publishers Cheltenham GL51 9EJPublishing & publications - retail &Tempus Publishing Company Ltdwholesale booksStroud GL5 2QGArchant Life Ltd Publisher Cheltenham GL50 1BBIcon Art Fine art reproduction & prints Tewkesbury GL52 7DQNelson Thornes Ltd Book Publishers Tewkesbury GL20 8PE

Company Name Activity District PostcodeEdward Elgar Publishing Ltd Academic Publishing Cheltenham GL50 1UASutton Publishing Ltd Book publisher Stroud GL5 2BNThis England Ltd Publication of magazines & books Cheltenham GL50 1HTCheltenham & GloucesterIndependent NewspapersNewspaper & Magazine Publishers Stroud GL11 4LSThis England Ltd Publication of magazines & books Cheltenham GL50 1HTCheltenham & GloucesterIndependentNewspaper & magazine publishers Stroud GL5 1BENewsquest PlcNewspapers, magazines publisher &printerStroud GL11 4LSA & S Publishing Co Ltd Magazine publishing Gloucester GL1 1HXBaileys News Ltd Newspaper publishers Stroud GL11 4NDThe Paper House Group PlcPublishing greetings cards &stationery designersGloucester GL2 4PHNelson Thornes Ltd Educational book publishers Cheltenham GL53 7THSoftware (incl leisure) &computer servicesetcADS Technical documentation multimedia Cheltenham GL51 9TXTowquest LtdComputer software development &consultantsForest of Dean GL17 0SNDesigning Web sites for financialIS Innovation Software Ltd institutioins & banks. Real time stock Cheltenham GL50 1QBexchange information.IT Consultants & computer networkKenson Network Engineering LtdspecialistsCotswold GL7 1XDCam Systems (Dursley) Limited Computer software house Stroud GL11 5DQP C WorldComputer Systems & Software(Sales)Gloucester GL4 3EAI C L Maintain & repair computers Gloucester GL2 5EAAcclaim Studios LtdComputer Systems & Software(Development)Cheltenham GL50 2JAHopewiser Name and Address software Stroud GL10 3RFMinerva Computer Systems PlcCharity & membership software &servicesCheltenham GL50 1QZFarmplan Computer Systems Software & computer systems Forest of Dean GL18 2BSMessagelabs LtdComputer Systems & Software(Development)Tewkesbury GL3 4ABInfor:Swan Business Solutions Computer software house Tewkesbury GL20 8NDRAC Software Solutions Fleet Management Software Solutions Out of County BS35 2BSChateris Plc IT Consultancy Cotswold GL54 3HBIHS Energy Group Data information for oil & gas industry Cotswold GL8 8LDIntegrated logistic support (ILS)Pennant International Group Plc capabilities inc supportability. Tewkesbury GL51 6TLSimulation and training systems.EDS Defence Ltd Computer software suppliers Tewkesbury GL20 8NBAssureSoft Limited Financial Services Software Cheltenham GL50 1YWAZUR GROUPDesign & supply software systems forCheltenhammanufacturing & industryGL50 2JAOil and gas metering systems, oil andAlderley Plcgas computer systems. Produced Stroud GL12 8JDwater treatment systemsComstor Limited Internet service provider Cotswold GL7 1YTMarlborough Stirling - CorporateServicesSoftware consultancy and supply Cheltenham GL50 3SH47

Company Name Activity District PostcodeMarlborough Stirling PlcSoftware house, outsourcing companyCheltenhamsolutions providerGL50 3SHRadio & TVSevern Sound Radio station Gloucester GL1 1SSBBC Radio Gloucestershire Broadcasting Gloucester GL1 1SW48

Appendix 16: Description of employment activity in each of the creative industriessub sectorsAudio-visualAreas of work include animation, radio and TV broadcast, cable and satellite, cinema exhibition,commercials, corporate production, facilities, films in production, independent production of film, TVand video, new media and others.DesignDesign includes either employed in-house or specialist design consultancies.Photo-imagingCovers photographers, manufacturing, retailing, wholesale, picture libraries, equipment repair,photo kiosks, training, microfilming, distribution and processing. They do not include people whowork in photographic outlets based in major retailers (eg Boots, Tesco etc) nor do they includepeople who work in in-company photographic departments). The basic difference between minilabsand photo retailers, such as Boots, is that minilabs provide both sales of film, cameras andaccessories and film processing, whereas photo retailers concentrate on product sales.Employment in the photo-imaging sector covers both traditional photographic processes and digitalphotographic processes.21PublishingThe four sub sectors that are currently covered by the NTO, employing 200,000 are bookpublishing, newspaper publishing, journal and periodical (including magazine publishing) and otherpublishing (which mainly involved directories and database publishing. The largest of these sectorsis newspaper publishing, with just over 39 per cent of all publishing employment. In addition to thisis the business-to-business communications industry, which covers those businesses supplying anddelivering information and intelligence to those working in industry, commerce and the professions,which estimate employs in the region of 80,000 people.Arts and entertainment sectorMade up of six sub sectors:Performing arts (eg drama and performance, music, circus)Visual arts and craft (eg fine art, sculpture, craft making, art, photography)Literary arts (eg creative writing, poetry, script-writing, storytelling)Arts management and administration (eg artistic direction, box office)Arts development and teaching (eg community arts, dance teaching)Technical production and support (eg sound recording, lighting, costume design)49

Appendix 17:Comparison of creative industries sub sectorsThe DCMS based activities on the left are related to the skills dialogue based activities on the right withsimilar patterns relating to similar SICs.SIC definitions based on DCMS (9 groups)Film22.32 reproduction of video recording (+)92.11 motion picture and video production92.12 motion picture and video distribution92.13 motion picture projectionSIC definitions for Sector Dialogue (4 groups)Audio-visual22.31 reproduction of sound recordings22.32 reproduction of video recordings22.33 reproduction of computer mediaMusic and the visual and performing arts22.14 publishing of sound recordings22.31 reproduction of sound recording (+)74.81 photographic activities (+)92.31 artistic & literary creation & interpretation92.32 operation of arts facilities92.34 other entertainment activities nec (+)92.72 other recreational activities nec (+)Architecture74.20 architectural and engineering activitiesand related technical consultancy (+)Publishing22.11 publishing of books22.12 publishing of newspapers22.13 publishing of journals & periodicals22.15 other publishing (+)92.40 news agency activitiesComputer games, software, electronic publishing22.33 reproduction of computer media (+)72.20 software consultancy & supply72.60 other computer related activities92.11 motion picture & video production92.12 motion picture & video distribution92.13 motion picture projection92.20 radio and TV activitiesPhoto imaging24.64 manufacture of photographic chemical material33.40/3 manufacture of photographic andcinematographic equipment51.47/2 Wholesale of other household goods nec52.48/2 Retail sale of photographic equipment74.81 Photographic activitiesPublishing22.11 book publishing22.12 newspaper publishing22.13 journal and periodical publishing22.15 other publishingRadio and TV92.20 radio & television activitiesAdvertising74.40 advertisingArts and Entertainment92.31 artistic & literary creation & interpretation92.32 operation of arts facilities93.34 other entertainment activities nec92.72 other recreational activities necDesigner fashion17.71, 17.72, 18.10, 18.21, 18.22, 18.23, 18.24, 18.30, 19.30these codes cover manufacture of clothes and footwear,within which are designer fashion activities (+)74.84 other business activities nec (+)Art/antiques trade52.48/9 retail sale in specialised stores nec (+)52.50 retail sale of second-hand goods in stores (+)50

Appendix 18: New media or digital media activitiesNew media or digital media or digital content creation are various names given to a newlyemerging interactive media sector.According to Beer 2002 the sub sector covers activities such as web design, web-based logisticsand management, communications strategy, web or CDROM related software and contentcreation.The emphasis is on the “new” in that although many businesses use digital production and postproductiontechniques and technologies, either their core business is still analogue or off-line orthey are outgrowths of established businesses. This situation however, is fluid and there appearsto be a distinction between established media forms that have been changed by digitaltechnologies and new activities that cannot exist without digital technology. Companies may gothrough this transformation where their core business can ultimately be identified as a new mediaactivity.Beer 2002 also recognises that there is a clear division between the games industry and othernew media companies in that the former has existed for longer and is relatively mature, hasclearer markets and a discernible end product whereas the latter is still relatively immature andboth activity and end products are harder to define. The range of activities is large, some close toretailing, or advertising, some associated with logistics and information management.Two sector training organisations Skillset and the Publishing NTO worked jointly under theauspice of the Digital Content Forum (employer-led body for the interactive media sector) toundertake research that included a survey and consultations across the UK in order to gatherlabour market information about interactive media companies and provide an overview of theindustry. The results of this research were published in November 2002 and the followingidentifies some salient points from this work.Research was focused on ‘new’ more IT-based sub sectors such as web design, computer gamesdevelopment and computer software. It was estimate that at the time of the survey there were2,870 interactive media companies based in the UK employing some 72,615 people with the mostcommon service being offered as bespoke software development.Service providedTable 1 Services offered by companiesService Proportion of companies No of companies*Bespoke software development 36 1,042Software/product sales 25 717Content creation 39 1,104Production/development 44 1,254Pre/Post production development 30 886Design 44 1,262Internet services 33 941Other 36 1,021All companies 100 2,870* More than one response so column does not add up to 100%Table 1 shows that the most common services offered were design and production/developmentservices followed by content creation services.51

Companies were asked to identify for which media their services are provided. Table 2 shows thatthe most common medium for which services are undertaken is on-line in which three out of fivecompanies work. Around two fifths work in CDROM productionTable 2 Media for which services are providedServiceBespoke softwaredevelopmentOn line%Computergames%CDROM%InteractiveTV%Other%No ofcompanies%70 15 42 6 16 508Software/product sales 80 2 28 13 18 227Content creation 73 22 61 25 33 277Production/development 48 8 54 19 38 309Pre/Post productiondevelopment32 2 36 31 71 344Design 67 18 30 18 38 283Internet services 95 8 32 19 5 227Other 36 9 28 21 57 693All companies 57 11 38 19 38 2870The geographical location of these companies is similar to the rest of the creative industriessector.WorkforceOver a third of all companies employ 25 or more people, around a quarter between 10 and 24people and around on fifth each 5-9 and 4 people or less. Pre/Post production, bespoke softwareand software production/sales companies are considerably larger than the norm, with aroundthree quarters of each employing 10 or more people while the majority of content creationcompanies and production/development companies employ less than 10 people as shown inTable 3.Table 3 Total workforce by serviceService Workforce Proportion oftotal workforce%Proportionare freelance%Bespoke software development 20,999 29 10Software/product sales 4,936 7 4Content creation 5,563 8 19Production/development 9.453 12 5Pre/Post production development 9,403 12 7Design 5,196 7 16Internet services 5,283 8 4Other 11,782 17 7All companies 72,615 100 9Includes F/t, P/t, temporary, fixed term contracts, freelancers, volunteers and trainees52

About 73,000 people are employed in the interactive media sub sector. The largest single groupare employed by companies that offer bespoke software development. The greatest proportion offreelancers are employed by companies offering content creation.Employers were generally positive about the future and 30% are expecting an increase in the sizeof their workforce.RecruitmentNearly half of the companies had recruited new staff over the past six months. Recruitment hasbeen from other interactive media companies in half the cases, and a quarter have taken on newgraduates. Less than one tenth had recruited school leavers. At the time of the survey over 80%of employers had no vacancies and for those that did the most common vacancy was forsales/telesales and marketing posts. Only 2% of companies reported any currently hard to fillvacancies. The main cause for this was identified as a lack of applicants with the required workingexperience and a lack of applicants with the required qualifications and skills or just a general lackof applicants. In terms of identifying what skills were lacking in relation to these applicants themajority of employers related to job-specific skills and over half identified cross-disciplinary skillsand customer service skills hard to find.Only 6% of companies reported a high staff turnover and these were in the areas ofsales/marketing and director/management posts and the most common reason given was theoverall condition of the market.Skills gapsOnly 4% of companies reported a skills gap. These were in management and technical architects.In regard to changing skills the majority of employers do not think skills are becoming more or lessimportant. The two skills that were identified as becoming more important were technical skillsand client handling skills. Although the sector is rapidly developing in some areas skills may betransferable whilst in other areas a different skill set may be required. Reasons for changingimportance in skills were change in demand for product, pressure to develop new products andservices, increased competition from outside UK and other technological development.TrainingJust under two thirds of companies had provided training for any of their staff over the past year.There is a strong correlation between size of company and training activity. The likelihood ofhaving training plans and training budgets increased with increasing size of employer.Training provision also varies greatly by type of company. Employers offering internet servicesand software/product sales offer the most training and those in pre/post production andproduction/development offer the lowest amount of training.Training delivery was in the form of on the job training in 85% of the cases followed by taughtcourses off site in 60% of cases.Awareness of external organisationsJust over 22% of employers had heard of the Digital Content Forum and awareness related tocontent creation and more of the smaller companies were aware. In respect of the two sectortraining organisations 48% of respondents had heard of Skillset and 15% had heard of thePublishing NTO.Links with external organisations tend to be with education providers such as universities, FEcolleges and schools.53

Additional commentaryThe bursting of the ‘dot.com bubble’ has been identified in the research as having an effect on thenumber of new start-up companies which is low and employment growth which has been flatalthough employers are more positive about the future.Although the sector appears quite healthy in terms of skill needs the surplus of employeesresulting from the ‘dot com. bubble’ burst may be drying up. Also there is a perceived view of thegrowing importance of technical skills and client handling skills.The effect of broadband is difficult to predict. The take-up has been slower and less than expectedhowever, this may change with aggressive marketing. The effect broadband will have on changesvia the demand for products is thought to create a demand for more people rather than a changein skills.If the sector does expand quickly the practise of recruiting from other interactive media companieswill soon create a need. There does not appear to be any particular external education course toprovide future employment for the sector. Training within the sector appears adequate although itmay still be somewhat unsystematic.Need to take into account the freelance proportion of the workforce and how their future trainingneeds may be met.54