Functional Economic Market Microcosms

As part of a recently approved major industrial development, Viable Placemaking pioneered a strategic shift in economic market area analysis - with the introduction of the Functional Economic Market Microcosm 'FEMM'.

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As a planning consultancy with a specialism in development economics and viability, Viable Placemaking are frequently engaged by developers, local authorities, and fellow planners to support with reviewing the economic implications of a development.

As part of a recent Economic Impact Assessment which recently secured a major industrial development - Viable Placemaking pioneered a new way to approach to approaching economic market areas.

The Government's PPG on Plan-making provides guidance on how best to define a Functional Economic Market Area ('FEMA'). A FEMA is the spatial level at which local economies and markets actually operate, reflecting the practical way in which labour, housing, property, and consumer markets function across administrative boundaries.

FEMAs are not usually accurately reflected by a single local authority or pre-established geographical boundary and, while there is no universal or standard approach to defining a FEMA, the PPG identifies a number of factors which may be considered; including travel to work areas, commercial property market areas, and the spatial economic profile.

Having reviewed the development in full as part of our Economic Impact Assessment, we did not consider that the site or area would have its own FEMA. However, upon further analysis of the site's rural context despite being part of an existing employment site, the development's employment implications, and travel to work patterns, which were influenced by the proposed travel plan, we found the development reflected the characteristics normally associated with a FEMA at a smaller scale.

Accordingly, as part of our Economic Impact Assessment, Viable Placemaking introduced the concept of a ‘Functional Economic Market Microcosm’ (FEMM); i.e. – the development represents a community, place, and situation regarded as encapsulating in miniature the characteristics of a larger FEMA.

In reviewing our case, the Council found that the scheme had significant economic benefits and, in the context of the FEMM, sustained the rural economy and clearly complies with the national economic sustainability objective. These benefits were balanced against any impacts of the development and the scheme was approved.

Viable Placemaking are active supporters of sustainable development, including those which deliver much needed jobs at sustainable locations. It is critical that developers consider the role a scheme will play in its economic market areas and how this will impact the future enjoyment of an area.

If you would like to learn more about FEMAs and FEMMs, or how Viable Placemaking can support the planning and economic implications of your development, please don't hesitate to get in touch.