Telford - Economy

Economy

During the economic crisis of the late 1960s (with unemployment doubling nationally during the second half of the decade), unemployment in the then-new town was initially high.

However, in 1967 Halesfield Industrial Estate was founded on the south-eastern edge of the town - the first real answer to Telford's unemployment problems. Other large estates followed, in 1973 with Stafford Park just east of the town centre and in 1979 with Hortonwood, to the north, helping ease the unemployment crisis in a decade which saw an almost unbroken rise in unemployment.

In total, half a million square metres of factory space were provided between 1968 and 1983, making Telford an attractive investment area.

By 1976, Telford had begun to recruit industry from the U.S.A., Europe, and Japan. The foreign firms required larger factories, and they began to be built at Stafford Park. By 1983 over 2,000 jobs in Telford were provided by around 40 (mostly American) foreign companies. In contrast to industry in the Black Country at the time, these new companies focused on high-technology industries rather than the heavy and metal-finishing industries.

The new arrivals included the American company Unimation and three firms from Japan: Nikon U.K. Ltd., which opened a warehouse at Halesfield in 1983; video tape manufacturers Hitachi Maxell at Apley Castle in 1983; and office equipment manufacturers Ricoh, who took a 22-acre (89,000 m2) site for a factory at Priorslee next to the M54, and formed the first in Telford's new enterprise zone.

Consequently, from the later 1970s, Telford began to attract high-technology firms and to diversify its industry, and the promotion of the Service industry also began to prosper, in the Telford Town Centre area. However, a deepening national recession meant that, despite the creation of new jobs, there were net job losses from 1979. Unemployment grew from 3.4 per cent in 1969 to over 8 per cent in 1972 and 22.3 per cent in 1983; long-term unemployment rose even faster. Nevertheless the rate of increase in unemployment was slowing down by 1983 and was making some progress against national and regional trends.

Unemployment in Telford was still around the 20% mark - nearly double the national average at the time - as late as 1986. The Lawson Boom of the next three years saw that figure fall dramatically by the end of the decade, only for it to rise to a similarly high figure again by 1992 as a result of the early 1990s recession.

Telford has attracted several large IT services companies, including EDS who support the MOD contract from the Euston Park site, as well as a vast array of clients across the world from the Plaza building. Also Capgemini and Fujitsu employ a significant number of staff in the area, mainly supporting their governmental client, Her Majesty's Revenue and Customs (HMRC). The expansion in these job sectors provided a great asset to Telford's economic recovery after 1992. By August 2007, the success story of Telford's economy had seen unemployment shrink to 3.3% - a fraction of its peak 15 years earlier.

However, the subsequent recession meant that unemployment in the area had risen to 5% by February 2011.

The Shropshire Star evening newspaper is based at Ketley, Telford.

In recent times there have been significant job losses, with the movement of 500 Defence Logistics Organisation (DLO) jobs at the MoD base at Sapphire House, Telford, to Bristol. The closure of the local sugar beet factory at Allscott in 2007 is another recent example.