Barnstaple - Economy

Economy

North Devon is some distance from the UK's traditional areas of industrial activity and population. In the late 1970s Barnstaple gained a number of industrial companies due to the availability of central government grants for the construction of factories and their operation on low or zero levels of local taxation. This was only partially successful, with few of these lasting more than the few years that grants were available. One success was the manufacturing of generic medicines by Cox Pharmaceuticals (now branded Actavis), who moved in 1980 from their site in Brighton, Sussex. The most lasting consequence for the town was the development and expansion of the industrial estates at Seven Brethren, Whiddon Valley and Pottington.

Whilst the 1989 opening of the improved A361 connection to the motorway network helped in some ways to promote trade, notably weekend tourism, it had a detrimental effect on a number of distribution businesses. The latter had previously viewed the town as a base for local distribution networks, a need that was removed with an approximate halving of travelling time to the M5 motorway.

Because Barnstaple is the main shopping area for North Devon, retail work is a contributor to the economy. There are many generic chain stores in the town centre and in the Roundswell Business Park, on the western fringe of the town. However, by far the largest employer in the region is local and central Government. The two main government employers in the area are the Royal Marines Base Chivenor, 3 miles (4.8 km) west of the town, and North Devon District Hospital, 1 mile (1.6 km) to the north.

In 2005 unemployment in North Devon was 1.8–2.4%, and the median per capita wage for North Devon was 73% of the UK national average. The level of work in the informal or casual sector is high, partly due to the impact of seasonal tourism, as is the case in much of the South West of England.