Economy and industry

The most economically productive areas within the region are Bristol, the M4 corridor and south east Dorset which are all areas with the best links to London. Bristol alone accounts for a quarter of the region's economy, with the surrounding areas of Gloucestershire, Somerset and Wiltshire accounting for a further quarter.^[119] The South West of England Regional Development Agency is based in Exeter (although this is expected to cease operations by March 2012, its functions being generally replaced by Local Enterprise Partnerships), and the South West Strategic Leaders' Board (which makes funding decisions) is in Taunton.

Bristol's economy has been built on maritime trade (including the import of tobacco and the slave trade). Since the early 20th century, however, aeronautics have taken over as the basis of Bristol's economy, with companies including Airbus UK, Rolls-Royce (military division) and BAE Systems (former Bristol Aeroplane Company then BAC) manufacturing in Filton. Defence Equipment and Support is at MoD Abbey Wood. More recently defence, telecommunications, information technology and electronics have been important industries in Bristol, Swindon and elsewhere. VOSA, the Soil Association, Clerical Medical, the Arts and Humanities Research Council, Bristol Water, and the Bristol and West Bank are in Bristol; Orange United Kingdom and the Environment Agency are based at Aztec West (South Gloucestershire); Indesit makes tumble dryers in Yate; and HP have a large site and Infineon Technologies UK are at Stoke Gifford. Knorr-Bremse UK make air brakes in Kingswood. The South West Observatory's Economy Module provides a detailed analysis of the region's economy.^[120]

The electricity for the area formerly looked after by SWEB, is now looked after by Western Power Distribution, owned by the American company, PPL.

The region's Gross value added (GVA) breaks down as 69.9% service industry, 28.1% production industry and 2.0% agriculture. This is a slightly higher proportion in production, and lower proportion in services, than the UK average. Agriculture, though in decline, is important in many parts of the region. Dairy farming is especially important in Dorset and Devon, and the region has 1.76 million cattle, second to only one other UK region, and 3,520 square miles (9,117 km²) of grassland, more than any other region. Only 5.6% of the region's agriculture is arable.^[119]

Tourism is important in the region, and in 2003 the tourist sector contributed £4,928 million to the region's economy.^[121] In 2001 the GVA of the hotel industry was £2,200 million, and the region had 13,800 hotels with 250,000 bed spaces.^[119]

There are very large differences in prosperity between the eastern parts of the region and the west. While Bristol is the second most affluent large city in England after London,^[122] some parts of Cornwall and Devon have among the lowest average incomes in the UK.

Cornwall in particular relies on tourism. The county has the lowest GVA per head of any county or unitary authority in the country,^[123] contributes only 6.5% of the region's economy and receives EU Objective One funding.^[124] Around five million people visit the county each year.^[125] Cornwall's poor economic performance is partly caused by its remoteness and poor transport links,^[119] and by the decline of its traditional industries, such as mining, agriculture and fishing.

NHS South West, the strategic health authority is based in Taunton off junction 25 of the M5. The Devon Air Ambulance is based at the Devon and Cornwall Police HQ in Exeter; the Cornwall Air Ambulance is at Newquay Cornwall Airport; Dorset and Somerset Air Ambulance is at Henstridge east of Yeovil on the A30; the Great Western Air Ambulance is at Bristol Filton Airport (one of the last in the UK when it began in June 2008); and the Wiltshire Air Ambulance (shared with the police) is at Devizes (police HQ). The South Western Ambulance Service is on the Sowton Industrial Estate, next to the M5, half a mile east of the police HQ. The region's Manufacturing Advisory Service is on the A38 north of Gloucester at Twigworth,^[126] its Business Link is in central Swindon,^[127] and the UKTI office is at the Leigh Court Business Centre in Abbots Leigh, North Somerset.^[128]

Cornwall

Major companies in Cornwall include Imerys who are major producers of kaolin, Dairy Crest who have their main cheese creamery in Davidstow making Cathedral City Cheddar on the former RAF Davidstow Moor, and Ginsters have a food production plant in Callington, off the A390 between Liskeard and Tavistock. Rodda's make clotted cream near Scorrier, off the A30 east of Redruth. Fugro Seacore in Mongleath near Falmouth are leading offshore drilling contractors. Kensa Heat Pumps are west of Truro.

Devon

The Met Office is in Exeter as is Connaught plc, and Pennon Group, the water company. The airline Flybe is based at Exeter Airport. Hemerdon Mine, east of Plymouth, has one of the largest deposits of tungsten in the world. Britannia Royal Naval College is at Dartmouth. Appledore Shipbuilders are based at Appledore, Torridge, Devon, three miles north of Bideford. Parker Hannifin have their instrumentation division next to the Taw Bridge (A361) at Pottington in Barnstaple. Next to Royal Marines Base Chivenor Perrigo makes Germolene and own-label OTC medicines at the Wrafton Laboratories in Heanton Punchardon on the A361.

All Ambrosia products are made in Lifton, off the A30 on the River Lyd. Parkham Farms make Westcountry Farmhouse Cheddar at Woolfardisworthy, Torridge. Supacat at Dunkeswell Aerodrome, north of Honiton, make protective vehicles for the Army, notably the Jackal. These vehicles are also made in Plymouth by Devonport Management Limited (DML). Centrax make industrial gas turbines in Newton Abbot. To the north-west, on the A38 at the A382 junction at Heathfield in Bovey Tracey, British Ceramic Tile have the largest ceramic tile plant in Europe.

Beverage Brands, maker of WKD Original Vodka, is in Torquay.

Wm. Wrigley Jr. Company UK (chewing gum) and HMNB Devonport (the largest naval base in western Europe) are in Plymouth. Toshiba had a large presence in Ernesettle, in the north Plymouth of, which was the second largest employer after the Royal Navy, until they moved production of televisions to Kobierzyce in Poland in 2009; Britain made its last television at the site on 27 August 2009. Princess Yachts make motor yachts off the A374 in Stonehouse.

Dorset

New Look is in Weymouth. Hall & Woodhouse brewery is in Blandford Forum (home of the Royal Corps of Signals). Wytch Farm (BP) is the UK's largest onshore oil field. Meggitt is a leading aerospace and defence contractor, based west of Bournemouth Airport, with Hobbycraft, at a former BAC works in Hurn, close to West Parley. The Royal Armoured Corps is based at Bovington Camp, and next door is the Bovington Tank Museum.

Unisys Insurance Services is headquartered in Bournemouth. Imagine Publishing, a magazine publisher, is at the A35/A347 junction.

Merlin Entertainments (who own Sea Life Centres, and are the world's second largest theme park operator after Disney) is in Poole, at the end of the A350 near the Twin Sails Bridge; Lush, the cosmetics company, and the Royal National Lifeboat Institution (RNLI) are headquartered nearby. Parvalux, on the A3049 on the West Howe Ind Estate in Wallisdown, makes geared DC electric motors and gearboxes. Ryvita is made in Parkstone on the B3061. Hamworthy Combustion is an international engineering consultancy based at the A349/A3049 junction in Fleetsbridge. Fitness First, the largest privately owned health club group in the world, originated in Bournemouth and is now globally headquartered south of Fleet's Corner. Siemens Traffic Controls make most of the UK's traffic lights west near Fleet's Corner, and Sunseeker International is a main motor yacht manufacturer.

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