Executive Summary
Report overview
- This is a Cebr report for Animal Free Research UK, assessing the economic contributions made by New Approach Methodologies (NAMs) in the UK.
- The report considers the direct economic contributions made by the UK
- NAMs sector during 2017-2019 as well as a forecast of its projected economic contribution up to 2026.
Methodology
- Our analysis relies on firm level data reported to Companies House by firms in the NAMs industry and the Annual Business Survey (ABS), published by the Office for National Statistics (ONS). Guidance was also provided by Animal Free Research UK.
- Firm level data is aggregated and used to calculate the economic contribution that the NAMs sector made to the UK economy for the three years through 2019. This is considered in terms of four key economic indicators; turnover, Gross Value Added (GVA), employment and employee compensation. Headline findings are presented for 2019, but our full results cover the period 2017-19.
- Following the computation of the baseline impacts, we forecast the industry’s contribution to UK GDP, in terms of GVA, for the seven years through 2026. Upper and lower bounds of employee numbers were also forecast for the same period. Adjustments have been made to counter the effects of survival bias and the industry life cycle stage in which the NAMs industry is currently operating. More information on this is detailed further in section 2.2.
- • The firms included in analyses operated using varying accounting periods. To harmonise the data, we have grouped financial reports into the calendar years in which the majority of their accounting period falls into. For example, 2018-19 data for a firm whose accounting period runs February to February will be included in the 2018 calendar year.