The importance of sport and physical activity as a foundational sector in supporting economic growth

At the start of last autumn, the government released its industrial strategy green paper, Invest 2035: The UK’s Modern Industrial Strategy. A broad consultation exercise on the principles set out in the strategy concluded at the end of November.

Here, Clare Dunn, Associate Director of Business Engagement at CIMSPA shares her thoughts on how our sector contributes as a foundational sector.

“I’ve been thinking a lot about Invest 2035: The UK’s Modern Industrial Strategy which the government consulted on towards the end of last year.

Economic growth is often associated with ‘cutting-edge’ industries like technology, life sciences, renewable energy, financial services and advanced manufacturing. However, the foundations upon which these sectors are able to survive and thrive are often overlooked by many people.

Foundational sectors, such as public services, transportation, retail, construction and agriculture play a crucial role in enabling sustainable economic progress across all industries. These sectors provide the infrastructure, resources and support systems necessary for the economy to function efficiently and effectively.

And it’s time to add sport and physical activity to that list.

So what are foundational sectors?

They are essential sectors that are the backbone of our economy. Industries that provide core goods and services, facilitating the daily lives of people and the operations of businesses and households. Without these sectors, those ‘cutting-edge’ and priority industries simply cannot function.

Without the transportation sector, it’s impossible to move the goods produced by other sectors and for people to reach the services they need. It’s equally impossible for other industries to get their people to where they need to be in order for their businesses to deliver.

Without the construction sector, there are no physical spaces for businesses to operate and for people working in other industries to live.

Without agriculture, there are no raw materials for manufacturing and food to sustain people that are working in other industries.

And without the sport and physical activity sector, we cannot have an active, healthy population that is able work in other sectors.

Foundational sectors are the bedrock for innovation and growth in other industries. Hi-tech companies, for example, rely on efficient transportation systems to manufacture and distribute their products. Similarly, the sport and physical activity sector enables productivity by maintaining a healthy workforce and as well as generating economic benefits through tourism, sports events and related activities.

Foundational sectors like ours provide the critical inputs and infrastructure that allow other industries to flourish.

Foundational sectors are significant employers, providing jobs for millions of people across diverse skill levels. From carpenters and architects in the construction sector to coaches, facilities managers and fitness professionals in the sport and physical activity sector, these industries offer opportunities for both highly skilled and entry-level workers. By doing so, they contribute to reducing unemployment and create economic stability.

But the sport and physical activity sector’s benefit as a foundational sector extends further.

The opportunities that the sector offers to individuals and communities creates positivity. As well as improving the physical and mental health of people because they are more active, enabling them to be economically active too, the services and activities that the sector provides bring together people who wouldn’t ordinarily come into contact with each other. These interactions can lead to creative thinking and new ideas that people can take into their working lives, no matter what industry they work in. Take the design engineer who happened to stand next to the parent of a disabled child at an exercise class. They got talking and the parent described the challenges that they face transporting a wheelchair. That conversation got the design engineer thinking about lighter weight materials and simplified mechanisms, and to cut a long story short, that resulted in a new product that improved lives but also generated revenue for the engineer’s company. But if that exercise class wasn’t bringing together people from different backgrounds, none of that could have happened.

Investment in foundational sectors is also important for stimulating local development. For example, upgrading transportation networks in rural areas can enhance connectivity, making it easier for businesses to reach new markets. Likewise, investing in sports facilities and community activity programmes can revitalise local economies by attracting visitors and supporting social cohesion. One local district council has reintroduced their first half-marathon since the pandemic. As well as providing a great motivation for local people to get active, it brought visitors from outside the area as participants and spectators. Many of those visitors purchased accommodation, spent time and money at local attractions and contributed to the local hospitality and retail economies.

Foundational sectors also play a crucial role in building resilience and sustainability within the economy. For instance, sustainable agricultural practices help preserve natural resources for future generations while maintaining food security.

In the sport and physical activity sector, encouraging active lifestyles can reduce the burden on the healthcare systems by helping to prevent and manage chronic conditions and helping people recover from illness and/or injury. The sector also improves societal wellbeing, contributing to a more sustainable economy through people feeling and being healthier and happier.

The Industrial Strategy emphasises the importance of building a strong and sustainable economy through investment in key sectors. Foundational sectors align with this by providing the critical infrastructure and resources needed to drive innovation and growth.

The strategy’s call to promote health and wellbeing further underscores the importance of the sport and physical activity sector.

It states: “Ensuring the UK has a healthy population whose skills meet the needs of employers will bring people into the labour market and support their shift into high-skilled, high-wage jobs. The OBR estimates that improving health outcomes among the working-age population, by reducing incidence of work-limiting ill-health by a quarter, would increase the size of the economy by 0.8% over the longer-term.”

By enabling active lifestyles and supporting community-based programmes, our sector contributes to a healthier workforce, which is essential for long-term economic productivity. The strategy also highlights the need for skills development and training, ensuring that the workforce across all foundational sectors, including sport and physical activity, are equipped to adapt to future demands and challenges. In the sector we’re ahead of the game with our local skills project building skills development capacity based on local economic and health priorities.

Policymakers must recognise the importance of foundational sectors and prioritise their development. Investments in infrastructure, skills development and technological advancements can enhance the efficiency and productivity of these industries which in turn can unlock new opportunities for innovation and growth across the economy. The Industrial Strategy provides a catalyst for achieving these goals by aligning sectoral growth with national priorities. Ensuring that the sport and physical activity sector, and in particular our workforce, is integrated into these plans will amplify the economic and social contributions that the sector makes to UK Plc.

Foundational sectors like ours are the unsung heroes of economic growth. They provide the essential services and infrastructure upon which all other industries depend. By investing in and supporting these sectors, our society and government can build a resilient, inclusive and sustainable economy capable of being agile to future challenges.

Strengthening foundational sectors, particularly the sport and physical activity sector, is a crucial step towards achieving long-term, sustainable economic growth and stability.”