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An Economic Profile of the Glenrothes AreaDecember 2011Enterprise, Planning and Protective Services

TABLE OF CONTENTSINTRODUCTION................................................................................................................2GLENROTHES AREA COMMITTEE BOUNDARY MAP..................................................2ECONOMIC BACKGROUND ............................................................................................3DEMOGRAPHICS..............................................................................................................4Population and Socio-Economic Classification ..............................................................4LABOUR FORCE ..............................................................................................................5Employment by Sector ...................................................................................................5Employment by Status ...................................................................................................6Jobcentre Vacancies ......................................................................................................6Benefit Claimants ...........................................................................................................8Claimants by Benefit Type .............................................................................................9Jobseekers Allowance....................................................................................................9SKILLS.............................................................................................................................11Educational Attainment ................................................................................................11School Leaver Destinations..........................................................................................11EARNINGS ......................................................................................................................12Scottish Index of Multiple Deprivation (SIMD) ..............................................................12Employment Land Availability ......................................................................................13Businesses ...................................................................................................................14Retail ............................................................................................................................15Major Investments in the Glenrothes Area ...................................................................17TOURISM.........................................................................................................................19Visitor Numbers and Expenditure.................................................................................19The Economic Impact of Tourism.................................................................................19Accommodation............................................................................................................20Main Visitor Attractions.................................................................................................20LONG-TERM REGENERATION POTENTIAL ................................................................20FURTHER INFORMATION..............................................................................................20

INTRODUCTIONEconomic profiles for the seven area committee areas in Fife were produced in 2011.These are designed to assist with understanding of the key economic issues, challenges andopportunities within the area as a starting point and building block to develop a portfolio ofeconomic development interventions. The profile is also intended to assist with policy design andinform business decisions.The profile pulls together a wide range of economic information and statistics, all of which arepublically available. These indicators are inter-linked and play a part in the overall health andperformance of the Glenrothes economy. The linkages and relative performance of the variousindicators are also explained in the document.GLENROTHES AREA COMMITTEE BOUNDARY MAPThe Glenrothes area is made up of three multi-member wards (wards 14, 15 and 16), and includesthe smaller settlements of Kinglassie, Thornton, Leslie and Markinch along with Glenrothes.2

ECONOMIC BACKGROUNDGlenrothes• Glenrothes was the second New Town in Scotland, and was designated in 1948. Thedesignated site (5730 acres) was “an area of great natural beauty astride the RiverLeven”.• As a new town, Glenrothes was established to house the miners who were to work at theRothes Colliery which had opened in 1947.• Glenrothes was a genuinely new community; there were no existing settlements ofsignificant scale within the New Town boundary. The first new homes were occupied in1951. The town centre was begun in 1955, but only began to take shape in the 1960s.• Glenrothes grew steadily from the 1960s onwards. Although the failure of the RothesColliery due to extensive flooding was a setback, it enabled the town to develop a morediverse and modern manufacturing economy.• Glenrothes played a key role in the development of Scotland’s Silicon Glen. Between1961 and 2000 several major electronics and hi-tech companies set-up facilities in thetown. The first of these companies, Hughes Aircraft (now Raytheon) moved to Glenrothesin 1960 and is still located in the town to this day.• Glenrothes has become an important administrative centre. The Glenrothes DevelopmentCorporation (set-up to manage the new town), Fife Regional Council and now Fife Councilhave all had their Headquarters in Glenrothes, Since 1996 Glenrothes has also been theHeadquarters for Fife Constabulary.• Glenrothes has become a substantial town, the third largest in Fife. In 2008, thepopulation of Glenrothes town was 38,750, compared with Kirkcaldy (48,630) andDunfermline (46,430).Markinch• The Haig’s whisky bottling plant used to be a major employer in the town. Many localresidents still have connections with the firm, which is now absorbed into Diageo (Leven).Papermaking is an important employer in Markinch and the Tullis Russell paper millprovides employment for around 600.• The former Haig’s Whisky bottling plant is now the Haig Business Park, and the Fife radiostation, Kingdom FM is based there.3

DEMOGRAPHICSPopulation and Socio-Economic Classification• The 2010 population for Fife was 365,020. Fife makes up 7% of Scotland’s totalpopulation.• The Glenrothes Area population was 50,500, which is 13.8% of Fife’s total population.• In 2010 the male population in Glenrothes was 24,280, or 48.1% of total population. Thefemale population makes up 51.9% of total population, at 26,220.Table 1: Estimated Population of Glenrothes Area Committee, 2005 - 2010YearMid-year Population Estimate2005 49,8762006 50,0152007 50,0372008 50,0252009 50,1912010 50,500Source: General Register of Scotland, small area population estimatesFigure 1: 2010 Male and Female Population Shown by 5-Year CohortsFemalesGlenrothesScotland90 & over85 - 8980 - 8475 - 7970 - 7465 - 6960 - 6455 - 5950 - 5445 - 4940 - 4435 - 3930 - 3425 - 2920 - 2416 - 1910 - 155 - 90 - 4MalesGlenrothesScotland10.08.06.04.02.00.00.0 2.0 4.0 6.0 8.0 10.0Source: General Gegister Office for Scotland• The Glenrothes Area population aged 16-64 equals the Fife average of 64.6%There were 22,892 households (13.6% of Fife’s total) in the Glenrothes Area in 2011. Of which:-4

4. Trends in Descriptive Statistics4.1. Prevalence of Child Adoption, 1880-1930 & 2000How common was adoption in the late 19th century? Did adoption become more popular in the early20th century in response to less stigma and wider social acceptance? Table 1 reports the estimatednumbers of biological, adopted, step, and foster children in U.S. households in 1880-1930 and 2000.Alaska and Hawaii are excluded from all years to maintain consistency across years. Although I includeNative Americans and Asians in the table, due to small sample size, estimates for these races areunreliable in early census years. Throughout this paper, child is defined as any person under age 18 (age0 to 17) residing in a household whose relationship to the household head is reported as “child,”including biological, step, and adopted children. I also include foster children in the table even thoughfoster child is reported (not as “child” but) as co-resident nonrelatives in IPUMS. 8 It must be noted thatthe child type is always defined in relation to household head, while the relationship between a childand a spouse of the household head is not directly identified. For example, consider the case of marriedtwo-parent households with children. In 1880-1930, in virtually all such households the household headis children’s father and not mother. In these households, children are labeled “biological” if they have abiological father, regardless of their relationship to a mother. Thus, in our definition, biological childreninclude not only children who have two birth parents but also those who have a biological father and astepmother. Similarly, children are labeled “adopted” when they have an adoptive father even if theirmother is a biological or step mother. As a result, adopted children in our definition include adoptedstepchildren (as in the case of a remarried husband adopting his wife’s biological children from herprevious marriage). 9 Accordingly, step children in our definition exclude children of a biological fatherand a stepmother. Because our definitions of biological and adopted children overlap with“stepchildren” in its common usage of the term, for comparison, I keep step children (in our definition)as a child type throughout the paper.According to Table 1, in 1880-1930, on average 0.26% of white children under age 18 in allhouseholds were adopted, compared to 2.2% in 2000. Although 0.26% may seem small, given the factthat even in 2000 when adoption seems ubiquitous the adopted children were only 2% of all children, itshows that adoption was surprisingly common in the earlier period. I find, however, no positive trend inthe share of adopted children from 1880 to 1930 among whites. This could be that the literature’semphasis on a rising demand for agency adoption has been misplaced or that such increase was offset8 Foster children refer to children who are temporarily cared for by foster parents while their birth parents are unable toperform parental duties due to financial, medical, or emotional reasons. Unlike adoptive parents, foster parents do not assumeparental rights. Historically, however, these two concepts were not well differentiated.9 Note, however, that our definition of adopted children excludes those who are reported as a household head’s “adoptedbrother (or sister),” “adopted nephew (or niece),” and “adopted grandson (or granddaughter)” even if they are under age 18.6

Employment by Status• Around 90% of male employees in the Glenrothes area are employed full-time.• In contrast, around half of all female employees in the Glenrothes area work full-time.• As a total, two-thirds of employees in the area work full-time and one-third work part-time.• Including both full-time and part-time jobs, there are more jobs occupied by women thanmen in the area.Figure 3: Full-time and Part-time Employment in the Glenrothes Area, 200830000Full-Time Part-Time Total: 24,400 employees25000Number of Employees2000015000100001,2086,2137,42116,965500010,5136,4530Male Female TotalSource: Annual Business Inquiry, NomisJobcentre Vacancies• The job centre covering the Glenrothes area advertised 2,913 vacancies through theDepartment for Work and Pensions in 2010.• There was a reduction of 15.4% in the number of vacancies received in 2010 compared to2009.6

Figure 4: Vacancies in the Glenrothes Area during 20105,0004,5004,0003,500Number of Vacancies3,0002,5002,0001,5001,00050002006 2007 2008 2009 2010Source: Vacancies Dataset, Nomis• Process, Plant and Machine Operatives occupations accounted for 18% of total jobcentrevacancies in the Glenrothes area, against a Fife average of 9%.• Managers and Senior Officials accounted for only 3% of the area total which is equal tothe Fife average.Figure 5: Average Jobcentre Vacancies in the Glenrothes Area during 2010Total Vacancies: 2,913Elementaryoccupations 26%Managers & seniorofficials 3%Professionaloccupations 2%Associateprofessional &technical 13%Administraive &secretarial 7%Skilled tradesoccupations 8%Process, plant &machine operatives18%Sales & customerservices 14%Personal services9%Source: Vacancies Dataset, Nomis7

Benefit Claimants• During 2010 there were a total of 6,341benefit claimants in the area.• On average this is 11.8% more than the pre-recession 2008 average.Figure 6: Average Number of Benefit Claimants in the Glenrothes Area 2006-20106,4006,200Number of Benefit Claimants6,0005,8005,6005,4005,2002006 2007 2008 2009 2010Source: Claimant Count Dataset, NomisThe distribution of benefit claimants in the Glenrothes area is illustrated in the map below.Map 1: Average Number of Benefit Claimants in the Glenrothes Area during 2010Source: Claimant Count Dataset, Nomis8

• Based on the assumption that low income is a factor of deprivation, and that benefitclaimants have a relatively low income, then there are severe pockets of incomedeprivation in parts of Auchmuty, Collydean, Tanshall, Macedonia and Leslie.Claimants by Benefit Type• There were over 6,400 out-of-work benefit claimants in the Area in 2010.• Employment Support Allowance (ESA) & Incapacity Benefit claimants accounted for 43%of total claimants during 2010.Figure 7: Type of Benefit Claimants in the Glenrothes Area in 2010Total Claimants: 6,400Jobseeker'sAllowance26%Others on incomerelatedbenefits3%Lone parent10%Bereaved2%Disabled8%Carers8%ESA and IncapacityBenefit43%Source: Department for Work & Pensions, NomisJobseekers Allowance• The number of people claiming Jobseekers Allowance (JSA) rose sharply during the creditcrunch of late 2008 and reached a plateau during 09/10 to an average of 1,600. (4.5%).9

Figure 8: Number of JSA Claimants in the Glenrothes Area, 2006 - 201018001600Total Male Female1400Number of JSA Claimants1200100080060040020002006 2007 2008 2009 2010Source: Claimant Count Dataset, Nomis• The total number of JSA Claimants aged 24 and under has risen by 60% since 2008.• There are almost twice as many males claiming benefits than there are female claimants.Figure 9: JSA Claimants Aged 24 and Under in the Glenrothes Area, 2006 - 2010600Male Female Total500Number of JSA Claimants40030020010002006 2007 2008 2009 2010Source: Claimant Count Dataset, Nomis10

SKILLSEducational Attainment• Educational attainment refers to the national qualifications attainment by secondaryschool pupils from their 4 th year (S4) onwards. In terms of S4 educational attainmentAuchmuty High School out-performed the Fife and Scottish average during 2009 / 10.• The Scottish Qualifications Credit Framework (SCQF) contains 12 levels ranging fromAccess at SCQF level 1, up to Doctorate at level 12. SCQF Level 3 refers to the nationalqualifications taken over two years of study (in S3 and S4) with exams at the end of S4.Table 2: Proportion of S4 Pupils Attaining SCQF Level 3 or Above during 2009/10AuchmutyGlenwoodGlenrothesGlenrothes AreaFifeScotlandTotal S4 Pupils in 2009/10 S4 year group achieving five or more awardsat SCQF Level 3 or above (%)238 93218 86172 91628 909292Source: Scottish Schools onlineSchool Leaver Destinations• The destination of S4 – S6 school leavers from publicly funded schools in the Glenrothesarea, represented by the proportions going into full-time higher or further education,training, employment, or unemployed is illustrated in the table below.Table 3: Destination of School Leavers during 2009/10Auchmuty Glenwood Glenrothes TOTAL Fife ScotlandTotal Pupils 1,241 920 864 3,025Leavers in 2009/10 256 190 169 615School Leaver Destination (%)Higher Education 29 18 30 26 33 36Further Education 43 54 41 46 37 27Training 4 6 7 5 4 5Employment 7 8 12 9 12 19Unemployment 17 13 11 14 13 12Source: Scottish Schools Online• During the 2009/10 academic year secondary schools in Glenrothes had just over 3,000pupils in years S4 – S6. Around one-fifth of pupils left school during 2009/10.11

• The Glenrothes area has a lower share of pupils entering higher education post-schoolcompared with the Fife and Scottish averages.• Glenrothes school leavers are more likely to enter further education or training than schoolleavers in other areas of Fife and Scotland.• The proportion of Glenrothes school leavers moving straight into employment issignificantly below average, whilst the risk of unemployment is slightly higher thanaverage.EARNINGS• Earnings data is not available at an area committee level. However, a study undertakenby Herriot-Watt University in 2004 estimated that the average weekly wage in Glenrothesin 2004 was £433, which was 5% lower than the Fife average of £455.• The below average income reflects the type of jobs available in the Glenrothes area,including higher than average employment in manufacturing and the public sector.Scottish Index of Multiple Deprivation (SIMD)The Scottish Index of Multiple Deprivation (SIMD) is the Scottish Government’s official tool foridentifying small area concentrations of multiple deprivation across Scotland. Datazones are apopulation-based geography with an average of 750 people living in each datazone.Map 2: Deprivation in the Glenrothes Area during 2009Source: Scottish Index of Multiple Deprivation, 200912

• There are 6,505 datazones across the whole of Scotland and 453 of these datazones arein Fife. The Glenrothes area has a total of 64 datazones, which is 14.1% of the Fife total.• In the latest (2009) SIMD report, 19 datazones of the 64 datazones in the Glenrothes Areawere classified as being in the top half of Scotland, with Prestonhall in the top 10% of theleast deprived datazones in Scotland.• A total of 11 datazones in the Glenrothes area were ranked in the most deprived 20% ofdatazones Scotland-wide, of which 2 datazones were ranked in the most deprived 10% ofScottish datazones.• A total of 5 datazones in the Glenrothes area were ranked within the least deprived 20%datazones in Scotland.LAND AND PREMISESEmployment Land Availability• There are 29 sites in total comprising 116.3 ha. Of these 24 sites (113.2 ha) are‘constrained’ sites, which means some investment and site preparation need to beundertaken before making the land suitable for employment purposes.• Five sites (3.1 ha) are ‘immediately available’.• The majority of employment land is available at the south side of Glenrothes and inThornton.Map 3: Employment Land Availability in the Glenrothes Area during 2010Source: Employment Land Audit 201013

Table 4: Employment Land Take Up in Glenrothes Area 2009-2010Year Take Up (ha) Where2009 0.9 ha Bankhead and Viewfield2010 0 -Source: Employment Land Audit 2009/2010BusinessesIn terms of location, more than half of the largest employers in the Glenrothes area aremanufacturing-based. Some of the largest employers in the Glenrothes area include:Table 5: Largest Employers in the Glenrothes Area as at May 2011Organisation / Company Busines Type LocationAdam Smith College* Education GlenrothesASDA Retail GlenrothesMorrisons Retail GlenrothesBalbirnie House Hotel Hotel MarkinchBalgeddie House Hotel Hotel GlenrothesBosch Rexroth Engineering GlenrothesBrand Rex Electronic Cabling GlenrothesFife Council** Public Sector GlenrothesFife Joinery Manufacturing Ltd Joinery GlenrothesRaytheon Systems Electronics GlenrothesTullis Russell Paper Manufacturer MarkinchVelux Company Ltd Window Manufacturer GlenrothesSource: Enterprise, Planning and Protective Services, Fife Council* Adam Smith College has several campuses, including main campuses in Kirkcaldy, Glenrothes and Leven.** Fife Council Headquarters are located in Glenrothes• In total there are 916 office and industrial premises in the area, of which 680 (74%) wereoccupied as at 1 April 2010.• The majority of industrial and office premises are located with settlement areas.• There is a relatively high concentration of protected employment areas, as specified bythe Kirkcaldy and Mid-Fife Local Plan.14

Map 4: Location of Business Premises in the Glenrothes Area during 2010Source: Assessors data 2010, Kirkcaldy and Mid-Fife Local PlanRetailOne way of gauging the economic prosperity of an area is by the volume and types of retailerslocated there. As Investors tend to locate in areas where demand for their goods will be strong.Factors affecting a retailer’s decision to invest in an area include the age structure and the socioeconomicprofile of an area.• Glenrothes town centre provide the largest area of retail space, with around 38,000square metres of space.• Saltire Retail Park and Queensway offer about half of the space, at around 14,000 squaremetres.15

Map 5: Main Retail Areas and Floorspace in the Glenrothes Area during 2010Source: Goad, ExperianTable 6: Town Centre Retail Floorspace and Vacancy Rates during 2010Retail typeFloorspaceFloorspace(Sq m) (%)Comparison Goods 14,700 38.6Services 5,210 13.7Convenience Goods 5,010 13.2Food and Drink 2,580 6.8Supermarkets 2,350 6.2Charity 780 2.0Vacant 7,450 19.6Total 38,080 100.0Source: Goad, Experian (April 2010)• Comparison goods are non-perishable goods often stocked in a wide range of sizes,styles, colours and quantities, such as clothing, furniture, televisions and carpets.Comparison goods account for the largest share of floorspace in Glenrothes town centreat 38.6%.• Services and Convenience goods - goods which are widely distributed, relativelyinexpensive and can be purchased with the minimum of effort, such as petrol,newspapers, grocery items, buy both account for around 13%.• During 2010 over 80% of retail premises were occupied, with the vacancy rate averaging19.6%.16

Figure 10: Town Centre Retail Vacancy Rates during 20104017.5Number of UnitsVacancy Rate (Floor space)20.03614.814.115.814.216.0Number of Vacant Units322812.08.0Vacancy Rate (%)244.020Q1 09 Q2 09 Q3 09 Q4 09 Q1 100.0Source: Goad, Experian (April 2010)• The vacancy rate in Glenrothes has decreased from 17.5% in Quarter 1 2009 to 14.2% inQuarter 1 2010.• Of Fife’s main town centres Glenrothes has the second highest vacancy rate withKirkcaldy (16.4%) higher and Dunfermline (13.3%) and St Andrews (5.5%) having lowervacancy rates.Major Investments in the Glenrothes AreaThe following developments have been undertaken or are under construction in the area.• A £1.7 million contract was awarded to Clark Contracts (Edinburgh) in June 2010 toextend the Balgeddie House Hotel. Completed at the end of 2010, the hotel extensionincludes ten new bedrooms and leisure facilities.• Full planning permission to build a repalcement Fife Institute of Physical Recreation andEducation was granted at the end of 2009. Graham Construction have been awarded the£21 million contract, which will see the new facility completed and operational by April2013.• A new business centre, Buko Business Centre, developed at the former BUKO site in theSouthfeild area of Glenrothes, opened in May 2008. The £1.3 million project consists of11 business units and a tower block with 15 office suites.17

• A £16 million redevelopment of Adam Smith College’s Stenton Campus was officiallyopened in September 2010. State-of-the-art teaching laboritories, testing facilities, motorvehicle, engineering and construction trade workshops are now housed in the college’snew Construction,Science and Engineering department.• A Combined Heat and Power (CHP) plant is being constructed at Tullis Russell inMarkinch. Scheduled for completion in 2012 the new plant will replace the existing coalfiredplant. The new biomass plant is anticipated to reduce the company’s annual CO 2emissions by 250,000 tonnes, which is 70% of current levels. It will also meet 6% ofScotland’s renewable generation targets.• In June 2010 Fife Council purchased the former ADC building at Bankhead. This newfacility is a depot hub, bringing togther services from 8 locations as part of Fife Council’soffice rationalisation programme. The office space (phase one) was fitted out andoccupied by December 2011, whilst the second phase to redevelop the rest of the buildingto form a depot will commence in summer 2012.• In the summer of 2009 ASDA opened a supermarket in Glenrothes.• Construction of the new NHS Glenwood Health Centre on Napier Road was completed inAugust 2011. The Health Centre consists of a single storey dental centre for specialistand routine dental care, car parking, and a two storey health centre.• In Southfield Industrial Estate there is currently construction taking place to erect anagricultural machinery storage and distribution centre, showroom, workshop andgatehouse with staff welfare facility.Map 6: Geographic Location of Key Developments in the Glenrothes AreaSource: Enterprise, Planning and Protective Services, Fife Council18

TOURISMVisitor Numbers and Expenditure• The Scottish Tourism Economic Activity Monitor (STEAM) is a statistical model whichmeasures the economic impact of tourism at local levels.• Tourism data for Fife is broken down into four sub-areas - St Andrews, North-East Fife,Kirkcaldy and Dunfermline. Kirkcaldy covers Kirkcaldy and central Fife and includes thepostcodes KY1, KY2, KY3, KY6, KY7 and KY8. It is not possible to breakdown the tourismfigures for Glenrothes.• In 2010 the Kirkcaldy area recorded a total of 1.72 million tourist days and 704,910visitors.• Total tourism expenditure in the Kirkcaldy area in 2010 was £58.83 million. This gives anaverage daily spend of £34.40 per tourist day.• Around 1,347 full-time equivalents were employed in tourism-related jobs in 2010 in theKirkcaldy and central Fife area.The Economic Impact of Tourism• Kirkcaldy contributes £58.83m annually to tourism in Fife, representing 21.5% of the Fifetotal. The revenue generated by tourist categories in Kirkcaldy for 2010 is summarised inFigure 11.Figure 11: Revenue by Tourist Categories in 2010Non-servicedAccommodation17%Day Visitors24%Staying withFriends andRelatives31%ServicedAccommodation28%Source: STEAM 2010• The staying with friends and relatives category provides the highest proportion ofeconomic impact at 31%.• The peak months for expenditure, across all categories of visitors, is July and August.19

Accommodation• The Glenrothes area has a good mix and standard of visitor accommodation from AAFour Red Stars Status, through to budget accommodation.• There are 20 accommodation establishments in the Glenrothes area providing over 600bedspaces.Main Visitor AttractionsOutdoor Activities• There are a number of golf courses including an 18-hole golf course in both Glenrothesand Thornton, and a 9-hole golf course in Leslie.• Several parks for woodland walks including Balbirnie Park and Riverside Park, and thenearby Lomond Hills Regional Park.• Fife Airport, a general aviation airport is located in Glenrothes. Visitors can dine at theTipsy Nipper restaurant, watch aircrafts using the airport, or or book a lesson to fly one ofseveral light aircrafts.LONG-TERM REGENERATION POTENTIALGlenrothes• A Town Centre Action Plan has been agreed by the Glenrothes Area Committee. A rangeof interested parties, including the owners and tenant businesses of the Kingdom Centre,were asked their opinions on improving the town. Points of interest include the vision forthe town centre, its economic performance, the social and cultural role it plays, and itsphysical appearance.FURTHER INFORMATIONFurther information is available from www.fifedirect.org.ukComments on this publication are welcomed and should be directed to the authors:Graeme Ferguson (graeme.ferguson@fife.gov.uk)Margaret Galbraith (margaret.galbraith@fife.gov.uk)Sarah McKeown (sarah.mckeown@fife.gov.uk)Date of Publication: December 201120