Design in the South West
The headline
Businesses in the South West believe in the value of design more than their counterparts most other parts of the UK do.
Time and again, our survey shows attitudes and statistics here that exceed the UK average. Most importantly, two out of every three businesses believe design has become more important in helping them compete. The UK average is under one in two.
Arguably, the value this region places on design is helping it to grow. According to the South West of England Regional Development Agency, there’s been steady growth in the region over the past two decades. See The link between design and better business performance for more on how design can help a business grow.
The details
What role does design play in business?
Almost half (46%) the businesses in the South West rate design highly. They think it plays either an integral or significant role in their business.
UK average 37%
This marks the region out as one of the UK’s most design-supportive.
In fact, only 16% of its businesses think design doesn’t have a role to play. In some regions, such as the South East, this figure is three times higher.
How important is design to success, compared to other factors?
A quarter (24%) of South West businesses think design is crucial to their success. That’s up on the UK average.
UK average 15%
Of course, traditional factors remain more important to success.
For example, 80% of the region’s businesses rate financial management as crucial. And 60% point to operational management.
How do businesses use design to compete?
Two of every three (65%) businesses in the South West believe that, over the past decade, design has become more important in helping them compete.
UK average 46%
Businesses in the region are also more likely than others to invest in design. Over the past three years, nearly half (44%) have increased their investment.
However, almost one in three (29%) haven’t invested at all. While this is better than the UK average, it’s still an opportunity for improvement.
Like many other regions, South West businesses mostly compete on the added value of their product or service (79%). 19% compete on innovation.
How many businesses have developed new products or services?
Just over half (52%) the businesses in the South West have developed new products or services in the past three years.
UK average 40%
Not only is this above average, it actually doubles the rate in some regions, such as the North East and Northern Ireland.
What types of design do businesses use?
All types of design are used more in the South West than elsewhere in the UK. Communications design is particularly popular – 70% of the region’s businesses use it.
UK average 52%
They’re also twice as likely to use interior and exhibitions design as other parts of the UK. 17% use service design, compared to 6% nationally.
Do businesses use designers?
Businesses in the South West are more likely than elsewhere to commission design from external providers. 28% of businesses do this.
UK average 19%
In contrast, fewer businesses actually employ their own designers internally than elsewhere.
Where do businesses apply design?
Compared to the rest of the UK, South West businesses apply design more to all business activities. Externally facing functions (65%) and marketing (63%) are particularly popular.
UK averages 50% and 48%
Other areas that stand out include new product development, where two in five businesses use design. A quarter of businesses use design in their business planning, a far higher proportion than elsewhere.
Regional portrait
The region’s economy contributes 7.8% of the UK’s gross value added (GVA).
According to the South West of England Regional Development Agency, the region’s economy has tended to perform slightly better than the UK average over the last decade. Generally, however, it follows national trends. Accordingly, recent surveys show its economy slowing through 2005.
While business services and business-to-business activity generally remained fairly buoyant, retail-related sectors – including distribution, household property, tourism, and agriculture and associated land-based services – became rather sluggish.
Manufacturing gave mixed signals. Companies either in globally competitive sectors, or supplying them, seemed to be performing well. But more consumer-orientated businesses were under pressure. Their margins were squeezed by energy and other costs, and/or demand was affected by wider restructuring and off-shoring.
2006-07 is predicted to be a period of transition, as growth gradually moves towards the expected average (approximately 2.8% a year).
The Agency produces six-monthly updates on performance, as part of its Regional Economic Strategy.
For more information on the South West of England, please visit these websites:
How can I use this information?
If you’re a business intermediary
The region’s businesses are among the most supportive of design in the UK. It could be worth looking at The link between design and better business performance to illustrate what these positive attitudes lead to.
You might also want to focus on the handful of areas in our research where the region doesn’t lead the UK. For example, businesses in some other regions, such as the South East, are twice as likely to hire designers internally.
If you're a design business
The South West should be fertile ground for design agencies.
Businesses are well informed about the value of design. But they might be unaware of how their region matches up to the rest when it comes to attitudes to design.
Whatever services you offer, the chances of a business using them here are better than average.
For example, businesses are more than twice as likely to use interior and exhibition design as businesses elsewhere. And the percentage hiring external design agencies is also much higher than usual.
And as well as the results of this survey (which look at what your clients are doing), we’ve also looked at what your peers are doing. The business of design is the first comprehensive survey of the design industry.
Among other things, the research compares the supply of design services in your region to that in others. This complements the demand for services discussed above, and should further help you discuss these issues with your clients.
If you’re a design educator or student
For researchers, the link between the region’s steady growth and its support for design could merit further investigation.
For students interested in a career in design, it’s worth noting that both dedicated design departments and external agencies are popular here.