The Economic Impact of Scotch Whisky Production in the UK 2015

28 Jan 2015

This report on "The Economic Impact of Scotch Whisky Production in the UK", prepared by 4-Consulting with the Scotch Whisky Association, illustrates the major contribution of the Scotch Whisky industry to the Scottish and broader UK economies.

It explores Scotch Whisky's direct contribution to GDP, the UK's trade performance, employment in the industry, productivity, the supply chain, and the industry's contribution to rural communities.

Benefits to the Economy
Scotch Whisky adds £3.3 billion directly and its total impact is to add nearly £5bn overall to UK GDP.

Every £1 of value added in the industry produces another £0.52 of value in the broader economy. In other words every £1 million of value added in the industry produces another £520,000 of value in the broader economy.

The industry is the UK's largest single food and drink sector. It accounts for 25% of the UK's food and drink exports.

90% of its operating expenditure is within the UK.

In value added Scotch Whisky is bigger than the UK's iron/steel, textiles, shipbuilding, or computer industries; about half the size of the UK's pharmaceuticals or aerospace industries; and one third the size of the entire UK car industry.

Jobs
The industry supports 40,300 jobs directly and indirectly across the UK.

Every job in the Scotch Whisky industry supports 2.7 further jobs in the broader economy.

Productivity
Scotch Whisky workers are the second most productive in Scotland (behind energy).

They are four times as efficient in terms of production as workers in Scotland's aerospace and life sciences industries, and four and a half times more productive than workers in digital industries.

Salaries
Scotch Whisky workers are the third best paid in Scotland (behind energy and life sciences). They are better paid than employees in financial and business services.

Every £1 paid to workers in the Scotch Whisky industry generates a further £1.68 in salaries for workers in the broader economy

Supply Chain
Every £1 paid to the industry's supply chain sustains a further £0.54 in salaries to workers in the supply chain.

Scotch Whisky producers spend £1.4bn a year on Scottish suppliers.

Rural Communities
The industry sustains around 7,400 jobs, around £900 million of GV£250 million of income in Scotland's rural communities.

Trade
The industry exports over £4bn annually. It is the UK's second strongest contributor to national trade performance. The 2013 trade deficit would have been 16% larger without the Scotch Whisky industry.