Read: Getting Britain back on track - why investment in our railways holds the key
A new report launched by Hitachi Rail and the Purpose Coalition assesses the importance of investment in the rail industry in Britain, particularly looking at its socio-economic impact.
The report provides a detailed assessment of the economic benefits of Hitachi Rail’s footprint in the UK, which delivers an annual £654 million gross value to the UK economy and supports almost 10,000 jobs across Scotland, Wales and England.
More importantly the report also examines the social value Hitachi’s £2.6bn investment in the UK economy and the benefits of the improved connectivity that 286 Hitachi mainline passenger trains deliver. The report also highlights how Hitachi Rail is more than train manufacturer or maintainer by investing in building a skilled talent pipeline, raising aspirations and enriching communities through social and economic connection.
The report assesses Hitachi Rail’s work against the framework of the Purpose Goals, a set of sector-relevant social impact criteria which focus on key life stages and the main barriers that prevent a level playing field. It showcases its leadership within the rail sector in terms of boosting social mobility, maximising social return on investment and wider economic impact of the company itself and the impact it has on communities around its key sites. This has been shown particularly through the lens of five key Purpose Goals: Goal 2 Successful School Years, Goal 3 Positive Destinations Post 16+, Goal 9 Extending Enterprise, Goal 11 Infrastructure for Opportunity and Goal 13 Harness the Energy Transition and Net Zero.
Standout examples of its work range from its partnership with South Durham University Technical College which supports young people through their educational journey to the employment opportunities created by its sector-leading Operations, Service and Maintenance (OSM) operations in strategic areas; from its Newton Aycliffe facility in Durham which builds and maintains state of the art trains and acts as an anchor location supporting both the national and regional economies to its innovative battery solution leading the rail industry towards full decarbonisation.
Jim Brewin, Chief Director of UK&I, Hitachi Rail said: “The direct benefits of Hitachi Rail’s annual £645 million gross value add are easy to see, including the 9,787 jobs we support across the UK. However, what is equally important is the social value Hitachi Rail delivers.
This is why partnering with the Purpose Coalition is so important. Together we can shine a light on the social value of rail: be it partnering with South Durham University Technical College, trains tackling the transport poverty or the importance of highly skilled maintenance jobs in social mobility cold spots.
Delivering social value is not only becoming increasingly important for our UK business, it is essential. In working with the Purpose Coalition we have assessed our current activity against the 14 Purpose Goals framework, which are influenced by the UN Sustainability Goals.
Achieving five Purpose Goals is fantastic, but I am eager our Purpose Coalition partnership grows the positive impact of Hitachi Rail in the local communities across our UK footprint.
Chair of the Purpose Coalition, Rt Hon Justine Greening, said: “Rail connectivity and infrastructure are critically important to our nation’s economic growth and social cohesion, as I saw for myself as Transport Secretary. With its countrywide network, our railways are more than a means of transport - they can uplift regions in need, stimulate economic growth and enhance quality of life for customers, colleagues, and local communities. For many it can be a lifeline. The sustainable transport options our railways offer means it is also a cornerstone of our efforts to achieve a net zero future.
“Hitachi Rail’s best practice, showcased in this report, demonstrates the rail industry’s potential for making a difference in fostering positive change across industries and communities over the long-term. Hitachi Rail is actively investing in building a skilled talent pipeline, raising aspirations, and enriching communities through social and economic connection.
“I hope that Hitachi Rail’s examples evidenced in this report will encourage policy makers to think strategically about future infrastructure projects and understand how they can drive economic growth and open up opportunity, especially in social mobility cold spots. I am looking forward to continuing our partnership to encourage investment in the rail sector and to help shape its positive social impact in the future.”
Nick Forbes CBE said: “It’s clear from this report that Hitachi Rail understands the importance of social value to its business. That extends far beyond its core operations to its extensive supply chain, with an annual expenditure of £157.4 million which supports around 2,000 jobs every year in the wider UK supply chain. Its work creates an ecosystem of businesses that benefit from its activities, including a wide range of SMEs which get support and the opportunity to grow, often in areas where there have previously been limited opportunities.
”It is critical that the principle of social value is properly embedded in our procurement process, and that the Procurement Bill currently going through Parliament reflects that. More clarity will allow companies like Hitachi and others participating in large infrastructure schemes which make a significant contribution to regional and national growth to leverage their activities more effectively so that social value is at the heart of every procurement decision “.
