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The information is accurate as of 31 December 2022.
Data courtesy of Beauhurst.

Analysis Report: Economic and Business Activity in Erewash

Overview

Erewash exhibits a dynamic economic landscape characterised by a diverse range of sectors. The area employs 30,372 people, with a notable increase in employment recently. The dominance of sectors like wholesale/retail trade, construction, and real estate is evident, alongside a healthy presence of manufacturing and technical activities. However, there have been no IPOs, reflecting a potential area for growth. The balance in gender representation among founders and directors is an encouraging sign of diversity in leadership.

Employment and Business Growth

  • Total Employees: 30,372. Erewash has witnessed a positive trend in employment with a 5.53% growth. This indicates a robust job market and a potentially expanding economy.
  • Employee Growth Rate: 5.53%. This growth rate is significant, suggesting that existing businesses are scaling up and new businesses are contributing to job creation.
  • Number of Scaleups: 32. This shows a healthy environment for business expansion, indicating that a number of companies are experiencing significant growth.

Sector Dynamics

  • Top Sectors by Number of Companies: Wholesale/retail trade (890 companies, 15.51%), Construction (863, 15.04%), Real estate activities (630, 10.98%). These sectors are the backbone of Erewash’s economy, with a strong presence in the market.
  • Top Sectors by Growth: Aerospace, Automotive, Defence, Other manufacturing and engineering. While these sectors have fewer companies, their presence indicates a diversification in the economic base.
  • Total Number of Companies: 5,738. This number reflects the overall business activity in the area.
  • New Companies in Last 2 Years: 1,677. A significant number of new businesses have been established, indicating a vibrant entrepreneurial environment.
  • Small and Medium Enterprises (SMEs): 4,275. SMEs form the majority of the business landscape, crucial for economic resilience and innovation.
  • Exporters: 194. While a relatively small number, this suggests a degree of international engagement among local businesses.
  • Companies with Foreign Parent: 96. This number indicates some level of foreign investment and global connectivity.

Business Continuity

  • Company Cessations: 5678 ceased and 524 dead companies. This number, while substantial, needs to be viewed in the context of new company formation and the overall number of companies.

Leadership and Innovation

  • Gender Balance in Founders and Directors: 25.93% female founders and 28.15% female directors. This demonstrates a fair representation of women in leadership, though there is room for improvement.
  • Young Companies with Young Directors: 425. This indicates a significant presence of young entrepreneurs in the business landscape.
  • Patent Owners: 155. This number, although modest, shows a degree of innovation within the local businesses.

Conclusion

Erewash’s economy is characterised by a strong mix of traditional and emerging sectors, with notable growth in employment and business development. The diverse sector dynamics and the healthy number of SMEs suggest economic resilience. However, the absence of IPOs and the number of company cessations indicate areas for potential improvement. The gender balance in leadership roles and the presence of young entrepreneurs are positive indicators for the future. Overall, Erewash presents a robust and evolving economic environment.

Company foundations and cessations over time

Active companies over time

The information is accurate as of 31 December 2022.
Data courtesy of Beauhurst.