Physics-based businesses and commercial property are responsible for supporting 9.72 per cent of gross value added in Wales, according to new research from the Institute of Physics (IOP).
These businesses are contributing around £2.3 billion to the Welsh economy and are providing 40,000 new jobs every year. The sector is further flourishing due to establishing technological advancements and skills that can benefit other businesses in the wider economy.
Professor Sir Peter Knight, president of IOP, said: “If Wales is to recover economically and prosper, physics-based innovation is vital. The jobs market is changing from traditional manufacturing towards high-technology, high-value industries. To succeed, Wales must have a ready supply of physics-trained workers and a stable and sustained research funding environment. This, combined with an environment that promotes innovation, will allow physics-based businesses and Wales to thrive.”
One such company that is developing the sector is harp manufacturer Telynau Teifi, which is located in Llandysyul. Working closely with physicians from Swansea and Cardiff universities, research is being undertaken by Telynau Teifi in structural analysis, materials and elemental examination in order to develop sound quality in its products. More and more companies in the region are partnering with scientists so that they can improve their products and further thrive.
However, Professor Knight went on to argue that it was not all good news. Between 2008 and 2010, Wales experienced a £300 million fall in GVA and a ten per cent decline in employment in the physics sector. Even though it is ahead of England, Wales is still second to Scotland, which adds 9.8 per cent of value from physics-led businesses.
The IOP report investigated into how much physics-based businesses contributed to the economy between 2005 and 2010. The figures were found in partnership with Deloitte.