A ‘Productivity Hero’ conjures up a remarkable image of a Batman (or is it Superman) style creature, oozing obsequious sales smiles, pumping up biceps whilst dealing out products like a poker ace.
According to business definitions “A Productivity Hero is a business that achieves something remarkable: it grows its turnover, creates jobs and improves productivity – all at the same time”.1
The well respected Economic Intelligence Wales (EIW)*, the specialist research partnership that provides independent robust insight into the Welsh economy has published a new report, that shows that Wales boasts more than 1,700 Productivity Heroes across numerous sectors.
These firms matter because they endorse the definition of Productivity Hero and combine turnover growth, productivity growth and job creation to produce successful business performance. In future, business support and business finance should be targeted more deliberately towards these high-value, lean and employee-focused models seen among Productivity Heroes.2
Recently launched at a breakfast briefing co-hosted by the Federation of Small Businesses (FSB) Wales, the report, “Productivity Heroes and why they matter”, analyses the criteria behind business performance, and illustrates how targeted investment, strong leadership and effective business support can develop stronger economic growth across Wales and beyond.
Opening the event, Adam Price, Cabinet Minister for Enterprise, Connectivity and Energy, said: “This research shows that Wales already has the businesses, ideas and ambition needed to build a stronger, more productive economy. Our national productivity mission is about backing that potential and turning it into higher pay, stronger firms and better opportunities in every part of Wales.
"The message from these businesses is clear: with the right support for skills, leadership and innovation, more Welsh firms can grow, create jobs and become more productive. Our new national development agency will be central to making that support simpler, sharper and more effective.”
Speaking at the event, Professor Melanie Jones, Professor of Economics at Cardiff Business School and Academic Lead for the Wales Productivity Forum said:
“Productivity growth is critical to improving the things people care about including real wage growth, business profitability, and public service delivery. Narrowing the existing and persistent 15% productivity gap between Wales and the rest of the UK will require a step change in Wales’ productivity growth. Events like this which support understanding and sharing best practice about the drivers of productivity growth among firms in Wales and collaboration between policymakers and business leaders are key to achieving this.”
Professor Mark Hart, Deputy Director of the Enterprise Research Centre, and lead author of the report, said: “Productivity Heroes demonstrate that businesses do not have to choose between creating jobs and improving productivity. These firms are successfully achieving both, making them important to Wales's long-term economic performance. Better understanding what they are doing well can help create more of them.
“Our research shows that the strongest-performing businesses invest just as much in leadership, workforce development and organisational culture as they do in innovation. By understanding what sets these firms apart, we can better identify the practical support that enables more businesses to grow, improve productivity and create sustainable employment.”
Findings
The report found that the 1,732 ‘Productivity Heroes’ across Wales generated £6.04 billion in turnover and created more than 5,200 jobs, demonstrating that businesses can indeed:
- grow turnover
- create jobs
- improve productivity – all at the same time.
The report shows that labour productivity increased by some 24 per cent, rising from approximately £133,000 per employee to almost £165,000. Productivity Heroes are not confined to high-tech or knowledge-intensive industries but are found in manufacturing, construction, professional services, wholesale, hospitality and other sectors.
The report finds that the most successful businesses invest in three areas:
- a strong customer focus
- developing people through leadership and skills
- embracing innovation and digital adoption.
The research reveals that the trifold results, growth in turnover, employment and productivity are dependent on trifold investment customer focus, staff training and development and positive adaptation of technical innovation. 3
Zealous for Growth
One example of the productivity-led growth as commended in the report, is Zeal Innovation, trading as LITELOK. The Swansea based company designs and manufactures possibly the most secure, high-security, grinder-resistant locks for bicycles and motorcycles. Litelok is backed by The Development Bank of Wales, who offer flexible business finance such as loans or equity for companies based in Wales from £1000 up to £6million.
The successful business has grown its turnover per full-time employee from around £45,000 to around £350,000 since 2017, with annual revenues now approaching £10 million. Litelok’s exponential growth demonstrates how persistent innovation, investment and customer focus can result in increased profitability alongside improved staff development and productivity.
Live Productivity Hero Principles
Locking into the principle of Productivity Hero – Professor Neal Barron Founder and CEO of Litelok says “We started with a vision to redefine manufacturing standards and provide solutions that industries can rely on.
Over the years, we have grown into a team of skilled professionals equipped with cutting-edge technology, serving clients across diverse sectors and geographies.
What drives us is not just producing components, but delivering value — ensuring every part we manufacture contributes to our client’s success. Our commitment to quality, timely delivery, and innovation has helped us establish long-term partnerships with leading businesses worldwide.
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All the components you need to develop your own Productivity Heroes. Find the success and the support at Parc Felindre, business land for growth.
References
1 https://www.enterpriseresearch.ac.uk/publications/productivity-
2 https://developmentbank.wales/productivity-heroes-wales-who-they-are-and-why-they-matter
3 https://developmentbank.wales/news-and-events/https://developmentbank.wales/news-and-events/
*EIW is a collaboration between the Development Bank of Wales, the Enterprise Research Centre at Warwick Business School, Cardiff Business School, Bangor Business School and the Office for National Statistics. It provides independent economic intelligence to help improve understanding of the Welsh economy and support evidence-led decision making.
Photographs courtesy of:
1 https://developmentbank.wales/news-and-events/new-research-identifies-productivity-heroes-driving-growth-jobs-and-stronger
2 https://businesscloud.co.uk/founders/professor-neil-barron-litelok/
