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

Analysis Report: Economic and Business Activity in Neath Port Talbot

Overview

Neath Port Talbot exhibits a diversified economic profile, with notable emphasis on sectors like construction, retail trade, and professional activities. Despite no IPOs, the area shows resilience through a 9.9% employee growth rate and a foundation of 34 scale-ups. The gender diversity in leadership roles, particularly in director positions, is gradually improving, though male dominance persists.

Employment and Business Growth

  • Total Employees: 23,517. This indicates stable employment, with a marginal increase in employee count (234 employees), signifying steady economic activity in the region.
  • Employee Growth Rate: 9.9%. This positive growth rate suggests a healthy, expanding job market, potentially driven by the rise of scale-ups and new companies.
  • Scale-ups: 34 companies. These high-growth businesses are crucial for economic dynamism, contributing significantly to job creation.

Sector Analysis

  • Top Sectors: Construction, retail trade, and professional activities are predominant, comprising a significant portion of the local economy. This diversification suggests a balanced economic structure, resilient to sector-specific downturns.
  • Sector Raisers: Emerging sectors like materials technology and energy utilities services show potential for future growth, diversifying the economic base further.

Business Continuity

  • Company Cessations: 5,527 companies ceased operations. This high number could indicate market saturation, economic shifts, or a challenging business environment.
  • New Companies (2 Years): 1,300. This reflects a dynamic entrepreneurial environment, despite the high cessation rate.
  • Small and Medium Enterprises (SMEs): 3,189. SMEs form the backbone of the local economy, driving innovation and employment.

Leadership and Innovation

  • Gender Diversity in Leadership: 11.9% female founders, 26.2% female directors. While there’s progress in gender diversity, there’s room for improvement, especially in founder roles.
  • Young Directors: 24.46% of directors are in the 40-50 age range, indicating a blend of experience and new perspectives in business leadership.
  • Innovation Indicators: 149 patent owners and 3 grantees suggest a modest but present innovation ecosystem.

Conclusion

Neath Port Talbot’s economy is characterised by a diversified sector profile, with a stable employment base and a growing number of SMEs. The high company cessation rate is a concern, but the rise in new companies and scale-ups offers a counterbalance. Efforts to enhance gender diversity in leadership roles and nurture emerging sectors could further strengthen the economic landscape.

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