Introduction
The purpose of this report is to provide a comprehensive analysis of the business environment within the North West region, focusing on various performance metrics for the year 2022. The data has been aggregated from multiple councils within the region, offering insights into employment, industry sectors, business dynamics, and economic activities. This analysis aims to identify key trends, highlight the performance of individual councils, and provide actionable insights for stakeholders.
Population and Employment Overview
| Council | Number of Employees | Population | Employees per 1000 Residents |
|---|---|---|---|
| Manchester | 609,916 | 389,646 | 1565.71 |
| Liverpool | 294,788 | 337,574 | 873.33 |
| Warrington | 258,964 | 130,730 | 1981.38 |
| Trafford | 251,866 | 145,499 | 1731.16 |
| Cheshire East | 243,086 | 226,794 | 1071.89 |
| Salford | 180,981 | 169,685 | 1066.62 |
| Stockport | 146,406 | 177,458 | 824.91 |
| Cheshire West and Chester | 147,734 | 207,180 | 713.18 |
| Wirral | 202,075 | 192,800 | 1047.81 |
| Bolton | 143,528 | 176,041 | 815.33 |
| Bury | 120,527 | 117,077 | 1029.42 |
| Blackburn with Darwen | 273,901 | 93,335 | 2935.29 |
| Oldham | 64,916 | 145,455 | 446.27 |
| Rochdale | 53,943 | 137,618 | 392.02 |
| Tameside | 52,372 | 140,706 | 372.16 |
| St. Helens | 52,860 | 110,177 | 479.90 |
| Sefton | 61,132 | 163,019 | 375.07 |
| Knowsley | 45,115 | 94,311 | 478.29 |
| Preston | 61,323 | 92,744 | 661.13 |
| West Lancashire | 42,241 | 69,236 | 610.18 |
| South Ribble | 41,856 | 66,813 | 626.47 |
| Chorley | 37,910 | 72,793 | 520.77 |
| Fylde | 42,893 | 45,925 | 934.10 |
| Hyndburn | 27,298 | 49,187 | 554.93 |
| Rossendale | 19,387 | 44,067 | 439.78 |
| Ribble Valley | 16,952 | 36,138 | 469.03 |
| Wyre | 22,451 | 63,291 | 354.87 |
| Westmorland and Furness | 29,013 | 227,600 | 127.52 |
| Pendle | 28,967 | 55,416 | 522.66 |
| Burnley | 32,924 | 53,540 | 614.68 |
| Cumberland | 45,302 | 275,400 | 164.47 |
Business Dynamics
The North West region shows a diverse range of business activities across its councils. Manchester, with the highest number of employees, also leads in new company formations with a significant number of companies founded in 2022. Liverpool, despite having fewer employees than Manchester, shows robust activity in sectors such as wholesale and retail trade. Smaller councils like Ribble Valley and Wyre, although having fewer employees, show higher employee ratios per capita, indicating a potentially denser concentration of business activities relative to their population.
Sector Analysis
Professional, scientific and technical services dominate in councils such as Trafford and Cheshire East, reflecting a trend towards high-skilled industries. In contrast, wholesale and retail trade are prevalent in Blackburn with Darwen and Oldham, indicating a strong presence of traditional commerce. The diversity in sector prominence underscores the economic heterogeneity within the North West region.
Scaleups and Growth
Scaleup activity is notably high in Manchester, which aligns with its large base of employees and vibrant economic environment. The presence of IPOs, although limited across the region, highlights a growing interest in public listings, particularly in Blackburn with Darwen where the only IPO was recorded in 2022.
International and Export Dynamics
Export activities are significant in Salford and Liverpool, suggesting a strong external trade sector. The presence of companies with non-UK ultimate parents is highest in Manchester and Liverpool, indicating their strategic importance to foreign investors and multinational corporations.
Investment and Innovation
Fundraising activities are most prominent in Manchester, reflecting its status as a financial hub in the North West. Patent ownership is widespread in councils like Trafford and Cheshire East, underscoring a focus on innovation and technology development.
Academic and Research Contributions
Academic spinouts are particularly notable in Lancaster and Manchester, highlighting their strong ties to academic institutions and focus on commercializing research.
Diversity and Governance
The diversity in founder and director demographics varies significantly across the region, with Manchester showing a higher percentage of young directors, which may indicate a dynamic and entrepreneurial leadership landscape.
Entrepreneurship and Support Programs
Accelerator program attendance is robust in Manchester and Trafford, supporting the growth of startups and fostering innovation within the local business ecosystem.
Business Stability and Longevity
Business continuity challenges are evident in Blackburn with Darwen and Liverpool, where the number of ceased operations is relatively high. This could indicate areas where economic resilience needs to be strengthened.
Conclusion and Recommendations
This report has highlighted the diverse and dynamic nature of the North West’s business environment. Key recommendations include focusing on enhancing sector diversity in smaller councils, bolstering support for scaleups, and increasing resilience against business closures. Continued investment in innovation and support for international trade can further strengthen the region’s economic base.
Future Outlook
Looking ahead, the North West region is poised for continued growth, particularly in high-tech industries and international trade. Strengthening the entrepreneurial ecosystem, particularly in smaller councils, will be crucial for sustaining long-term economic health and resilience.