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New report shows the significant impact of Sage Group on the North East economy

Report spotlights how Sage powers the North East's economic activity.

Key details:

  • Direct economic impact in the region is £251m and its technology is used by almost half of regional small and mid-sized businesses (SMBs).
  • Sage’s secondary operations support a total turnover of £411m, 2,963 jobs and £191m in employee compensation
  • £460k donated to regional charities and 10,000 people have been upskilled in STEM and life skills because of Sage’s commitment to supporting social inclusion.

14 December, 2023 — New research shows Sage, the leader in accounting, financial, HR and payroll technology for 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 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.

Its pride in the region extends beyond business with Sage being the naming partner for the biggest conference and events centre development to be welcomed on The Tyne; work is due to start on The Sage in the Spring.

The new report, by the Centre for Economics and Business Research, shows for the first time the true impact of that support:

A vital source of employment for the region

  • Over 1,800 jobs in the North East region are directly generated by Sage but the company supports 2,963 jobs through its supply chain and wider spending.
  • Sage’s direct employee compensation from its regional workforce was estimated to be £150 million.
  • Sage’s workers are some of the most productive - productivity (GVA/worker) stood at £104,291, which was 79% higher than the UK average of £58,327.

A significant economic contributor to the North East business economy

  • Sage directly generated an estimated £251m 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 £411m 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.

A champion of regional skills development with an aim to foster local tech talent and sustainable tech careers

  • Sage has invested 1.4 million pounds 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 also launched its graduate programme seven years ago, supporting more than 700 apprenticeships helping to increase STEM training.

Committed to empowering communities

  • Recent investments in partnerships to upskill the next generation of tech experts totals around £1.4m.
  • Since October 2020, via Sage Foundation, it has contributed £460k to charitable and community initiatives in the North East.
  • Sage is 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.

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."

FareShare a regional food surplus distributor, said: “In the last 12 months, Sage colleagues have helped to pick, pack and deliver food to 224 Charities, enough for 2.9 million meals. It is estimated that 25K people in the North East have benefitted from this food. Sage colleagues have completed 470 hours of regional volunteering in the last six months, which has been incredibly beneficial.”

Andrew Thompson, Managing Director of Cleveland Containers, said: “We’re incredibly excited and confident about the future, having substantially grown market share, revenue and profits in recent years. Technology is incredibly important to this growth. It impacts so many areas. We can plan and analyse trends better, which enables us to make quicker, more informed decisions on investment, people strategy and customer pricing.

“To use software that was built in the North East for business based up here is a huge testament to the innovation we have in our region.”

To find out more about how Sage supports the North East, please read the full report here.

 


Glossary of terms and methodology:

  • Glossary can be read on p34 of the report.
  • Methodology can be read on p12 of the report.

About Sage:

Sage exists to knock down barriers so everyone can thrive, starting with the millions of Small and Mid-Sized Businesses served by us, our partners and accountants. Customers trust our finance, HR and payroll software to make work and money flow. By digitising business processes and relationships with customers, suppliers, employees, banks and governments, our digital network connects SMBs, removing friction and delivering insights. Knocking down barriers also means we use our time, technology and experience to tackle digital inequality, economic inequality and the climate crisis.