• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar

Woodknowledge Wales

Woodknowledge Wales

  • Facebook
  • LinkedIn
  • Twitter

Inspiring innovation through collaboration

  • About
    • Who We Are
    • Our Mission
    • What we do
  • Projects
    • Home-Grown Homes Project / Prosiect Cartrefi o Bren Lleol
    • Welsh Timber Windows
    • Investing in Afforestation
    • Procurement
  • Latest News
  • Members
    • Our Members
    • Membership Benefits
    • Join WKW
    • Ask our Network
  • Events
  • Resources
  • Contact Us

The Foundational Economy and its impact on the timber construction sector in Wales

May 31, 2020 by admin

Photo of Gary Newman, WKW
Gary Newman, Chief Executive of Woodknowledge Wales expores what the Foundational Economy is, why Welsh Government are interested in it and what it means for the Welsh timber sector.
The Welsh first Minister, Mark Drakeford AM, is increasingly considering Welsh development policy through the lens of the Foundational Economy. I’m also drawn to the Foundational Economy, concerned as it is with the development of local supply chains for the provision of the basic needs that have a huge influence over the quality of life for people in Wales. That means that the activities of our membership can be considered to be part of the Foundational Economy as they are engaged with the provision of housing and the supply of timber products. It is therefore important to understand more.

What is the Foundational Economy?

The term Foundational Economy was first coined by a group of academic economists led by Professor Karel Williams at Manchester University in the early 2010’s. It is now an internationally recognised concept. Foundational economists are concerned with addressing the everyday parts of the economy. The parts that are fundamental to the quality of people’s lives but typically not very newsworthy and often taken for granted – such as utilities, health and social care, education, food and housing. In fact, foundational sectors make up about 45% of the Welsh economy.
There is inevitably considerable debate about what the foundational economy actually is – which sectors are in and which are not. I’m not writing this article as an academic review so I will spare you the detail of that debate. Let’s just say that housing and its supply chains (including timber manufacturing and forestry) are included.

So, the timber construction sector is foundational, but what does that mean?

The short answer is, I’m not entirely sure. But some things are clear. Using the lever of public procurement to support local business is most definitely a foundational economic strategy. The problem here is that public procurement strategies have been a go-to solution for some time and have not led to change in the way that we might have expected. Will liberation from EU procurement rules change that? I remain sceptical, but that is definitely a subject for another day. What’s important here is that there is much more to the foundational economy than the tweaking of public procurement policy.

Developing local supply chains

Lowfield Timber Frames Ltd. Marton, Welshpool

Foundational economic activity desires the development of resilient organisations owned and run in a purposeful way that delivers financial returns for owners, meaningful employment to the local community and wider value to Welsh society. This means that policies need to focus on supporting the right kind of business. Policies that are not simply pro-business, but pro the right kind of business. As a slight segue, there is a strong overlap here with the low carbon agenda. Some businesses are most definitely ‘the wrong kind of business’ and have to go (e.g. fossil fuels), some must shrink (e.g. cement production) and others need to grow (e.g. low carbon timber homes and their timber supply chains)

What is the right kind of business?

Here could start another long discussion, but for me the right kind of business are those that are rooted within the communities that they serve. In the private sector, good examples would be family owned and multi-generational medium-sized enterprises, cooperatives and social enterprises. Who owns the business and what the business is for, really does matter. In the intermediate sector, housing associations are another excellent example. Of course, that does not mean that multinationals and private equity owned firms are not valuable to Wales. It simply means that these types of organisations should not be the centre of attention in strategic policy terms (other than to demand more from them in return for locating in Wales and gaining access to Welsh workers and Welsh markets). It also means that we should be very careful about the tendency to look elsewhere for solutions or silver bullets. I certainly believe that in Wales we have the key ingredients for a vibrant low carbon economy based upon our natural resources. To deliver that, the first thing we need is not money, it is belief.

What is Woodknowledge Wales doing?

The Woodknowledge Wales team certainly don’t view government policies as the only means of change. In fact, we believe that governments often follow with policy after others have successfully demonstrated what’s possible. So, foundational economic thinking, when appropriately articulated, is not only an agenda for Welsh Government. It could certainly also inspire and guide the actions of our network and others operating within the foundational sectors of our economy.
I’ve probably over-simplified the subject. But I’m definitely a believer in the Foundational Economy and its focus on local supply chain development. That said, to get a better grasp on what foundational economic development really means for the Woodknowledge Wales membership and our wider network, we’re working with Karel Williams and his Foundational Economy team. Together we are interrogating the dynamics of the timber construction supply chain, how the sector currently operates and how it could develop to become more purposefully aligned to deliver greater economic, environmental and social benefit.

We will be reporting the findings from this exciting study in the Autumn.

For more reading on the foundational economy I recommend two publications – What Wales Could Be, and topically What Comes after the Pandemic.   There are also a number of relevant articles on the Institute for Welsh Affairs website.

Filed Under: News, Uncategorized

Primary Sidebar

Search

Join our mailing list

Subscribe

Join our mailing list

SUBSCRIBE

Contact Us

Woodknowledge Wales Ltd
Ffarm Moelyci
Felin Hen Road
Tregarth
Gwynedd
LL57 4BB
Email:  info@woodknowledge.wales

Follow us

  • Facebook
  • LinkedIn
  • Twitter

Read our updated Privacy Policy
Copyright © 2022 Woodknowledge Wales.

We use cookies to ensure that we give you the best experience on our website. If you click OK and continue to use this site we will assume that you are happy with it.
OK Read More
Manage consent

Privacy Overview

This website uses cookies to improve your experience while you navigate through the website. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may affect your browsing experience.
Necessary
Always Enabled
Necessary cookies are absolutely essential for the website to function properly. These cookies ensure basic functionalities and security features of the website, anonymously.
CookieDurationDescription
cookielawinfo-checkbox-analytics11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Analytics".
cookielawinfo-checkbox-functional11 monthsThe cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Functional".
cookielawinfo-checkbox-necessary11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookies is used to store the user consent for the cookies in the category "Necessary".
cookielawinfo-checkbox-others11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Other.
cookielawinfo-checkbox-performance11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Performance".
viewed_cookie_policy11 monthsThe cookie is set by the GDPR Cookie Consent plugin and is used to store whether or not user has consented to the use of cookies. It does not store any personal data.
Functional
Functional cookies help to perform certain functionalities like sharing the content of the website on social media platforms, collect feedbacks, and other third-party features.
Performance
Performance cookies are used to understand and analyze the key performance indexes of the website which helps in delivering a better user experience for the visitors.
Analytics
Analytical cookies are used to understand how visitors interact with the website. These cookies help provide information on metrics the number of visitors, bounce rate, traffic source, etc.
Advertisement
Advertisement cookies are used to provide visitors with relevant ads and marketing campaigns. These cookies track visitors across websites and collect information to provide customized ads.
Others
Other uncategorized cookies are those that are being analyzed and have not been classified into a category as yet.
SAVE & ACCEPT