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North East Advanced Material Electronics Landscape Report launched

Date: 22.01.2025

Purple geodesic spheres glow in NETPark Sedgefield against a blue evening sky, near a lit street lamp on the green. - CSA Catapult
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A new report, published on behalf of Business Durham and Compound Semiconductor Applications (CSA) Catapult, shows the significant contribution the North East electronics industry can have on the UK economy.

 

The landscape report of the North East advanced material electronics sector shows that over 7,000 jobs and nearly £900m of gross value added (GVA) is projected be contributed to the UK economy in the next five years. Undertaken by Urban Foresight, the assessment reveals the advanced material electronics sector in the region has potential for "significant growth", and already delivers many jobs and economic benefits.

North East AME sector particularly strong

The report confirms the range of the advanced material electronics (AME) sector in North East England, with strengths in:

  • microwave communications
  • sensors
  • defence display technology
  • space and aerospace
  • telecommunications
  • healthcare

 

With 58 businesses in the AME sector across the North East, the report confirms the outlook is positive - with room for growth, helped by business growth support programmes - such as networking body North East Advanced Material Electronics (NEAME). The study estimates almost half of the sector's new jobs and £50.6m of the increased GVA is as a result of this support. However, the report warns, constraints on growth could arise in the form of skills gaps, funding needs and challenges around developing new products.

Key findings from the Advanced Material Electronics Landscape report:

  • The North East AME sector currently employs 2,798 people, an increase from 1,800 in 2020. 
  • The North East AME sector could employ a total of 7,583 people in the next five years. 
  • The North East AME sector currently provides £369.9m of gross value added (GVA) to the local economy, an increase from £183.9m in 2020. 
  • Accounting for wider economic impacts, the total projected GVA contribution to the North East economy is £893.8m over the next five years.  

“As a rapidly growing SME focused on satellite communications and aerospace, with its base at NETPark and a founder member of NEAME, we are pleased to operate with our key partner suppliers in the region.

"We have witnessed the significant growth of the advanced manufacturing sector particularly over the last five years and experienced the supportive business climate.  We look forward to participating in the continued support for the region to deliver further growth in the next five years.”

Steve Clements, CEO at aXenic

“We were thrilled to be able to refresh our landscape research from 2020 and produce a new report that demonstrates how investment from the council has directly supported business growth.  

“The main difference between the 2020 report and this new one, however, is the broader definition of AME. This encompasses a wide range of electronics and material technologies. Our research found that the full breadth of technologies, services and markets are served by the region – surely a unique offer in the UK. 

“As a North East business ourselves, we are proud to help showcase these strengths.” 

Emma Clement, Principal Consultant at Urban Foresight

"We are delighted to see the significant growth potential of the North East electronics industry, as highlighted in this report. Business Durham is committed to supporting the growth of this important sector, which is creating jobs and contributing to the economic prosperity of the region.   

“The North East has a strong track record in innovation and manufacturing, and we believe that the advanced materials electronics sector has a bright future ahead. We will continue to work with our partners to support businesses in this sector to access the skills, funding, and research and they need to thrive.” 

Kerry Walker, Business Growth Director at Business Durham

“This new report provides clear evidence of the growth opportunity across the North East electronics industry.  

“The region is supporting critical industries such as defence, telecoms and healthcare by developing next-generation semiconductor and compound semiconductor technologies in collaboration with a strong academic base. 

“CSA Catapult is committed to supporting growth in the region. Our role as a trusted, neutral convener is to help the region achieve the significant projections outlined in the report.” 

Martin McHugh, CEO at CSA Catapult

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CSA Catapult is the UK’s authority on compound semiconductor applications and commercialisation.

CSA Catapult helps deliver long-term benefit to the UK economy and accelerate UK economic growth in industries where applying compound semiconductors creates a competitive advantage and enables new products or end markets. It provides expert knowledge and access to specialist equipment that enables businesses to de-risk their technologies and speed up their time to market. 

In 2023, CSA Catapult opened an office at NETPark in Durham to help support a thriving cluster of businesses specialising in compound semiconductor technologies. 

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