HIE Sectoral Profiles

Agriculture:

Overview:

Agriculture is the largest primary industry in the Highlands and Islands and a key contributor to the rural economy. It has important links to other sectors, notably food and drink. The sector includes arable and livestock farming, crofting, horticulture and hunting. With the exception of the Inner Moray Firth and parts of Orkney, much of the agricultural land in the Highlands and Islands is designated as less favoured area. Common Agricultural Policy (CAP) reforms agreed in 2003 will continue to have a strong bearing on the sector in terms of the practical adjustments required to farming practices. Support has been decoupled from production in favour of single farm payments a move intended to encourage farmers to become more customer oriented.

Aquaculture:

Overview:

The aquaculture industry in the Highlands and Islands has expanded substantially since its inception in the 1960s, and is now entering a maturing phase in a globally competitive market place. The industry is regarded as one of the Primary Sectors producing raw materials which go through various value-adding processes in the Highlands and Islands or beyond. The data in this profile is therefore limited to the cultivation of fish and shellfish, seafood processing being included in the Food and Drink profile.

Construction and building services

Overview:

The smooth and efficient operation of the construction and building services sectors is very important both for creating and maintaining employment opportunities and developing the economy and infrastructure of the Highlands and Islands. The sectors encompass a wide range of actions and occupations from site preparation, house building and infrastructure construction to repair, maintenance and conservation of old and historic buildings. Building services covers a range of complementary occupations and activities including electrical, plumbing, heating, ventilation, air conditioning and refrigeration.

Creative Industries

Overview:

The creative industries sector is diverse and fast-growing, and makes an important contribution to the economy and cultural life of the Highlands and Islands. The sector is dominated by small and micro units, and includes a high proportion of semi-professionals, self-employed and voluntary/unpaid workers. This is the standard model worldwide, as business units will work with a much wider chain of units on individual projects.

Environmental Jobs

Overview:

Environmental jobs relates to employment in activities which fit broadly within the growing understanding of sustainable development as well as the Scottish Executives green jobs strategy Going for Green Growth. This includes discrete industries such as renewable energy and waste management, as well as certain sustainable practices within wider industries (sustainable forestry, or organic farming, for example). Since there is no single accepted definition for environmental jobs, this profile outlines a range of employment categories. In some cases, only broad estimates of employment are achievable without significantly more detailed research. It is anticipated that HIE will be undertaking more comprehensive research that will attempt to gauge the level of existing activity in this sector within the Highlands and Islands.

Food and Drink

Overview:

Food and drink is a key component of the manufacturing sector in the Highlands and Islands. It covers all food manufacturing and processing activities, including fish processing and preserving. It also includes the production of all alcoholic and non-alcoholic drinks, such as mineral water, malting for the whisky industry and distilling. Local produce from the Highlands and Islands is perceived and marketed as being high quality, and the food and drink sector is essential for adding value to these products in a competitive market characterised by changing consumer preferences and lifestyles, and improved awareness of issues such as health, food safety, the environment, and animal welfare. The quality of food and drink and eating out are also recognised as impacting on visitors experience and lasting impression of the Highlands and Islands. Food and drink is an important added-value component to the primary sectors in the area.

Forestry

Overview:

Forestry includes all planting, husbandry and timber harvesting operations. Under a wider definition, the sector overlaps with manufacturing to include sawmilling and the manufacture of wood-based products and items manufactured from co-products from sawmills such as wood chips, bark and pellets for biofuel stations. Road haulage is an important linked sector. Ownership of commercial, coniferous woodland is split between the Forestry Commission and a large number of private owners. This profile reports mainly on the wider definition of forestry.

To read more, choose HIE sector profile forestry 2007 (PDF 164.5 Kb)

Health Science

Overview:

The health science sector includes all research and development of new products and techniques for human healthcare (or intermediate outputs and processes which may eventually lead to new products), testing, trials, manufacturing and training. It does not include mainstream healthcare (private or NHS), although the health service provides an important source of expertise and patient access. Increasingly, the NHS is becoming involved in research and development activities which may cross over into the commercial sector.

Industrial Manufacturing and Engineering

Overview:

The sector includes industrial manufacturing and fabrication activities excluding food and drink manufacturing which is covered in a separate sector profile. Engineering includes technical testing and analysis, engineering consultancy services, architecture and related disciplines. IT-related engineering and consultancy is excluded. The oil and gas sector and related activities such as platform inspection, repair and maintenance (IRM) are included within the sector.

Marine Science

Overview:

Marine science focuses on marine biotechnology, which is the use of marine organisms to provide solutions in fields such as healthcare, nutraceuticals, food additives, pharmaceuticals, cosmetics and research tools. There may also be wider processing, environmental and industrial applications. For this analysis, the sector does not include aquaculture, fisheries, renewable energy or marine engineering.

Renewable Energy

Overview:

Rather than forming its own discrete sector, renewable energy covers a wide range of technologies and draws on several sectors of the economy, notably engineering, manufacturing/fabrication, electrical works, construction, transport and research and development.

Sea Fisheries

Overview:

The sea fishing industry provides substantial economic and social benefits in many coastal areas of the Highlands and Islands. The industry is regarded as one of the primary sectors producing raw materials which go through various value-adding processes sometimes within the Highlands and Islands but very commonly outwith the area. The data in this profile is therefore limited to the capture of fish and shellfish (processing is included in the HIE Network food and drink sectoral profile).

Tourism

Overview:

The tourism industry is crucial to the economy of the Highlands and Islands, and proportionally more so than in the rest of Scotland. The sector includes a wide range of accommodation establishments; visitor attractions; restaurants, bars and take-away food shops; travel agencies and tour operators; libraries; and sporting and other recreational activities. Most visitors come to the area because of its natural and cultural heritage, and to participate in outdoor activities such as walking and cycling. The sector is affected by seasonality, and challenges include encouraging dispersal of tourism to outlying as well as honeypot areas. Tourism in the area is heavily reliant on the UK market, although visitors from the important overseas market, which has been recovering in Scotland since 2001, tend to stay slightly longer and spend relatively more per trip.

To read more, choose HIE sector profile tourism 2007 (PDF 173.6 Kb)