Hull and East Yorkshire’s digital economy worth £7bn, according to new report

Hull and East Yorkshire’s digital economy is nearly worth £7bn and employs 57,000 people in the region, according to a new report.

The report findings, commissioned by communications provider KC, show the huge scale of the economic impact of digital activity locally and identifies Hull and East Yorkshire growing as a digital hotspot.

The research conducted by specialist technology analysts Innovation Observatory found:

• The digital economy in Hull and East Yorkshire accounts for £6.93bn per annum (24% of the total local economy).
• It employs 57,600 people (22% of total employment locally).
• The local digital economy grew by 5.5% in 2014, compared to growth in the total UK economy of 2.6%.
• Companies that are more active in the digital economy have grown faster than the average and expect to continue to grow faster.
• The strength of the region’s digital capability is contributing to business success locally.
• The local digital economy has “clearly benefited” from KC’s deployment of its ultrafast Lightstream broadband network.

Gary Young, KC managing director, who is also Chair of the Humber Local Enterprise Partnership (LEP) Digital Sector Group, said: “This research shows for the first time the huge impact of digital activity on the local economy.

“It also underlines the area’s credentials and advantages as a digital centre of excellence. Digital is a major opportunity for the region as a whole and for businesses across all sectors within it.”

Although the findings reveal significantly higher values for the scale of the digital economy in Hull and East Yorkshire than previously estimated, this is because it is based on a broader scale of the digital economy, showcasing that digital activity is now a major part of many businesses.

Organisations contributing to the the digital economy were categorised by if they use the internet and/or connected technologies to interact or trade with consumers or businesses. The research then measured the proportion of activity within organisations that could be defined as digital.

271 organisations of all sizes in Hull and the East Yorkshire were surveyed, and findings were then extensively cross-checked for modelling assumptions against data sets and estimates generated by the government and other agencies.

A major factor in the region’s growth in the digital economy was superfast broadband, with many respondents citing KC’s multi-million pound investment in its Lightstream fibre broadband network.

Hull is the only city in the UK where broadband is officially described as “ultrafast” – delivering download speeds of at least 100Mbps (megabits per second) – is being rolled out as standard. KC’s slowest service for businesses offers 250Mbps, while its fastest delivers 1Gbps (gigabit per second) – the fastest service available in the UK.

Respondents with Lightstream reported a higher proportion of their revenues came from the digital economy.

Mr Young added: “As well as producing robust figures for revenues and employment in the local digital economy, this research has also highlighted a number of key issues and opportunities to address in order to support further growth. It’s important that decision-makers focus on these issues to ensure the region’s digital potential is fully developed.

“The research also underlines how important superfast connectivity is to business growth in the digital age and it is encouraging to see that, among the survey sample, businesses that use Lightstream reported faster growth than other companies that were surveyed.

“The results support our belief in the transformational impact of Lightstream upon the local economy and the major competitive advantage it is delivering for local businesses.”

This report solidifies the importance of Hull and East Yorkshire as a leading centre for digital technology.

Companies that contributed to the research said the results underlined the importance of digital activity to business growth and highlighted a major opportunity for the region.

Richard Tuplin, sales and operations director of consultancy insurance business Jelf Insurance Partnership, based at Priory Park, Hull, said the business had “moved rapidly into the digital age.”

“We’re not a sexy, creative company but we do work within the digital economy. Having a digital infrastructure and focus is an enabler of excellent customer service, competitive pricing and a fantastic claims handling service. It enables us to stay current, stay ahead of our competitors and grow.”