THE ECONOMIC AND ENVIRONMENTAL IMPACT OF THE HISTORIC AND CLASSIC MOTOR INDUSTRY IN THE UK

17 3.3 Methodology for evaluation Economic impact Our methodology looks at the following different elements: 1. Direct GVA and employment through those directly employed in the industry. This is the economic activity that takes place as a result of the direct spending associated with the different facets of the sector. 2. Indirect support through the supply chains that feed into the industry. The sector is built on specialist subcontractors, so measuring the direct economic activity is always going to understate the true economic activity generated by the sector. The indirect spending through the specialist supply chain is estimated by combining information supplied directly by participants in the industry with input-output modelling data using statistics from the ONS. 3. Workers in the direct and indirect industry sectors spend this money within the economy, thus facilitating induced impacts that provide further layers of support. We model this again using ONS data for spending behaviour. 4. The skills creation, preservation and transfer from the classic car industry. This includes not only the skills within the sector itself but also skills in the supply industries like woodworking, metal working and leather production and working. We have modelled the impact of this using our experience in evaluating the impact of education and skills. 5. The UK’s heritage is a major contributor to the e conomy . Cebr’s report for Historic England in 2019 showed how the sector generated over £3 0 billion per annum for the economy in GVA and over half a million jobs. Classic and historic vehicles are a vital part of the heritage and we also evaluate how they contribute. The overall impacts can be summarised as follows below: Source: Cebr Figure 5 The econo ic impact o clas ic and historic vehicles (1) Direct impact The value generated and jobs supported directly by the classic car industry (2) Indirect impact The value generated and supported in domestic industries that supply the classic car industry (3) Induced impact The value supported in the wider economy when employees associated with direct & indirect impacts spend their earnings in wider economy. (4) Skills spillovers (5) Heritage impact The value supported in the wider economy from the classic car industry’s contribution to the heritage wider economy.