Sage Group plc, the Newcastle-based FTSE 100 global software giant, has published research by the London-based Centre for Economics and Business Research (CEBR) that shows the company “powers the North East’s economic activity.”
The CEBR research shows that Sage, a major provider of accounting, financial, HR and payroll technology for small and mid-sized businesses (SMBs), is “helping to transform the economic landscape of the North East through an economic footprint of £411m and a network of almost 3,000 jobs.”
With its global headquarters based in North Tyneside, Sage said it “has been a stalwart in the North East business scene for almost 43 years” with its technology being used by nearly half of the region’s SMBs.
The CEBR report says more than 1,800 jobs in the North East of England are directly generated by Sage — but the company actually supports 2,963 jobs through its supply chain and wider spending.
The report reveals that Sage’s direct employee compensation from its regional workforce in the North East of England is estimated to be £150 million.
It shows that Sage’s workers are some of the most productive in the UK with productivity (GVA/worker) at £104,291, which is 79% higher than the UK average of £58,327.
Other findings in the report include:
- Sage directly generated an estimated £251 million in turnover from its regional operations in FY22.
- Combining direct (£251m), indirect (£12m), and induced impact layer (£149m), it is estimated that Sage’s operations in Newcastle support an aggregate (or total) footprint of £411 million in turnover throughout the North East economy.
- For every £1 in GVA directly generated by Sage in the North East, a further £0.48 is supported, producing a total GVA multiplier of £1.48.
- Sage’s technology is instrumental in supporting the operations of almost half of small and mid-sized businesses in the North East, with 42% of SMBs using its tech.
- Sage has invested £1.4 million in skill development programs, including those with Newcastle United Foundation, Newcastle University and the Institute for Engineering and Technology.
- More than 10,000 people have been upskilled in STEM and life skills as a result of Sage’s commitment to supporting social inclusion.
- Sage launched its graduate programme seven years ago, supporting more than 700 apprenticeships helping to increase STEM training.
Paul Struthers, managing director of Sage UKI, said: “Sage is proud to call the North East home, and we’re fully committed to driving regional economic growth, nurturing local talent, and empowering businesses to thrive.
“These statistics reflect our dedication to the region’s prosperity but also the passion behind our regional heritage.
“We believe the North East is the best place to start and grow a business, with transformational innovation happening on our doorstep, helping to foster sustainable skills and careers, while boosting the region’s economic resilience.”
Sage is to be the naming partner for the transformational conference and events centre on the banks of the River Tyne called The Sage, where grounding work is starting in March 2024.
The aim of the development is to bring the world stage to the North East, showcasing the best it has to offer.