'KCOM worth £187m and 1,600 jobs in Hull and East Yorkshire'

By Hull Daily Mail | Posted: 26 Jul 2016

CITY communications company KCOM generates almost 1,600 local jobs and delivers a £187m boost to the economy in Hull and East Yorkshire, according to a new report published today.

The figures are significantly higher than in previous research and demonstrate the substantial impact KCOM has on the local economy through direct and indirect employment and spending with local suppliers.

The report, The Economic Impact Of KCOM In Hull, by commercial real estate services, research and consulting firm Cushman & Wakefield, found KCOM's operations support almost 1,600 full-time equivalent (FTE) jobs in Hull and East Yorkshire with a total value to the local economy of £187m.

Gary Young, who heads up KCOM's operations in Hull and East Yorkshire, said: "This report confirms the positive impact we have on the local economy and the lives of people across Hull and East Yorkshire."As a business founded in Hull and a mainstay of the local economy for many decades, we are proud that we make such a significant and growing contribution to local employment and economic wellbeing."

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The report found KCOM employs 1,011 people (937 FTEs) in its Hull and East Yorkshire operations, including permanent contractors. Of these, 944 (871 FTEs) live in Hull or East Yorkshire, indicating the significant extent to which KCOM operations draw upon a local workforce.

KCOM spends £14.3m with suppliers to support its activities in Hull and East Yorkshire, well over 50 per cent of which is with companies based in the region. This supports a further 170 FTE jobs.

In addition, the report finds spending by KCOM employees and those of its suppliers supports 485 more FTE jobs in Hull and East Yorkshire.

The report shows a substantial increase in economic impact since the last in-depth research in 2010.

At that time, the company was found to generate £150m for the local economy and underpin more than 1,400 FTE jobs.

The analysis of KCOM's operations in the year ended March 31, 2015, concludes the company is more closely integrated economically into the community than other employers, due to its largely local workforce and the high proportion of total procurement that is with Hull-based suppliers.

Other key findings of the research include:

  • KCOM's work-based employment impact equates to 1.3 per cent of overall employment in Hull, equivalent to the city's legal and accounting sector.
  • More than nine out of ten people either directly employed or supported in KCOM's local supply chain are Hull or East Yorkshire residents, meaning most of their income is spent locally.
  • 80 per cent of KCOM employees in Hull are in full-time posts – significantly higher than the local average across all sectors of 66 per cent.

Mr Young said: "Our core contribution comes from being one of the area's biggest employers, with a workforce of about 1,000 people. Almost all of these live locally and spend much of their income in local shops and businesses."In addition, we are passionate about supporting local companies and using suppliers based in the region wherever possible. Our 'buy local' policy means we support hundreds more local jobs and contribute significantly to the success and growth of many Hull and East Yorkshire businesses.

"The benefits we bring to the region's economy and wider community are a great source of pride for the company and our people."

The report also notes how enhanced broadband connectivity through the roll out of KCOM's Lightstream fibre network promotes economic and business growth.

Hull is the only city in the UK where ultrafast broadband, delivered directly to homes and businesses via fibre cables, is being made available as standard. KCOM is investing tens of millions of pounds to make more local homes and businesses the best-connected in the UK.

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