Chamber News
Parklands delivers multi-million-pound economic boost
17 September 2024 • Sarah Medcraf
A new study has found that independent care provider Parklands Care Homes makes a multi-million-pound contribution to the regional and national economy, with its impact set to increase as the care group expands.
The report by economic consultants MKA Economics assesses the group’s current economic impact and projects the effects of its future expansion up to 2028.
Its analysis shows that Grantown based Parklands, which has 12 care homes in the Highlands, Moray and Aberdeenshire, currently contributes £27.5 million a year to the Scottish economy in gross value added (GVA). At the regional level, £10 million is generated in Highland and £15.8 million in Moray and Aberdeenshire.
Parklands’ planned investment, which includes a new 58 bed care home in Inverness currently under construction and due to open in Spring 2025, homes in Elgin, Turriff and Alford, a series of later living villages and enhancements to existing homes, will see its contribution to the Scottish economy reach £41.4 million a year by 2028, with £14.9 million generated in Highland and £23.8 million in the North East.
The study highlights the positive impact of Parklands at a time when social care is facing significant challenges, including the collapse of care operators and the closure of local care homes. The report suggests the number of care beds provided by Parklands is forecast to increase by 59%, from 451 to 718.
Parklands currently employs around 860 staff, including full-time, part-time, and relief workers, and supports employment through its wider supply chain. The economic study converts these numbers into full-time equivalents (FTEs). It projects that Parklands’ expansion will increase its FTE count from 501 to 757, a 51% rise.
Parklands’ investment will also generate a one-off boost for construction worth £33.4 million in GVA to the national economy by 2028. In the North East, this amounts to £19.7 million and in Highland £13.7 million in GVA terms.
Ron Taylor, Managing Director of Parklands Care Homes, said: “Parklands has grown from a single care home into one of the north of Scotland's largest employers, delivering much-needed care capacity and creating new career opportunities for local people. At a time when social care in Scotland is contracting, Parklands is delivering significant investment in the region.
"This economic impact study highlights our role as a major employer and economic driver in the region, with our contribution set to grow significantly as we expand. Our ongoing developments will not only enhance care provision but also deliver a substantial economic dividend to the construction sector and create new employment opportunities for local people, ensuring lasting benefits for communities across the Highlands and the North East.”
Colin Marr, Chief Executive of Inverness Chamber of Commerce, said: “We already knew that Parkland’s is an important contributor to the Highland economy, and this report allows us to quantify their current contribution while also looking ahead to how that contribution will grow over the next few years as their expansion plans come to fruition. All locally based large employers are important for our region and it’s imperative that as our population ages that we have a thriving, quality care sector who can attend to their needs. It’s also important that the care sector supports the community they are based in. This year Parklands is shortlisted for two Highlands Business Awards – employer of the year and community engagement – which both testify to the caring nature of the company.”
Sarah Medcraf, CEO of Moray Chamber of Commerce, said: “I am thrilled to see the profound economic impact that Parklands Care Homes has on our region and beyond. This study underscores the significant contributions that local businesses like Parklands make to the Scottish economy—not just in terms of jobs and investment, but in enhancing the quality of life for our communities. Parklands’ commitment to expansion and its role as a major employer in the Highlands, Moray, and Aberdeenshire is a testament to the strength and resilience of our local economy. Their continued growth will undoubtedly bring lasting benefits, supporting both our workforce and the vital social care sector at a time when it is needed most.”
Dr Donald Macaskill, CEO of Scottish Care, said: “This important and independent study evidences the substantial economic contribution which the Parklands Care Group brings to the areas it works in. It is simply phenomenal to consider that existing provision together with extensive planned investment, will mean that Parklands will contribute to the Scottish economy over £41 million a year by 2028. There can be few organisations contributing so much by direct employment and local community economic contribution.
“Parklands is illustrative of the many organisations delivering social care support across Scotland. Too often when we hear about social care in the media it’s about how much it costs but this research and others shows the reverse - social care is a sector that contributes more to the Scottish economy than many others. It is time economic and political leadership in Scotland started to really invest in social care and its workforce because if that happens not only will individual lives be transformed but whole communities will be regenerated.”
Mark Kummerer, Director of MKA Economics, said: “Parklands Care Homes is a major employer in its own right, and brings demonstrable economic impacts to the areas it serves. The wider ripple effect of their business activities are valuable to the Scottish economy, bringing direct jobs and supporting wider jobs in the economy. This is expected to increase substantially over the next few years. The value in this report lies in the base data, which is drawn from actual performance data, unlike some other economic impact assessments which rely on national proxies and estimates of impact.”