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

Analysis Report: Economic and Business Activity in Newcastle-under-Lyme

Overview

This analysis focuses on Newcastle-under-Lyme’s economic and business landscape. With a workforce of 66,772 employees and a notable increase in employment, the region shows dynamic economic activity. Key sectors include Wholesale/Retail Trade, Professional Services, and Construction, with emerging growth in niche areas like Mobile Apps. The gender diversity in company leadership shows a male-dominated trend, with 90% male founders and a higher percentage of male directors. The presence of scaleups and new companies indicate a fostering environment for business growth, despite a significant number of company cessations.

Employment and Business Growth

  • Total Employees: 66,772. The employment landscape in Newcastle-under-Lyme is robust, marked by a growth rate of 11.60%. This suggests a healthy job market, potentially driven by the diversification of local industries and the emergence of new businesses.
  • Employment Growth: The region saw a rise in employment, with 738 companies reporting an increase in employees. This positive trend is indicative of economic resilience and potential for further growth.
  • Top Sectors for Employment: The leading sectors are Wholesale/Retail Trade (13.59%), Professional Services (13.27%), and Construction (13.20%). These sectors form the economic backbone of Newcastle-under-Lyme, providing a diverse range of job opportunities.

Sector Dynamics

  • Top Sectors by Company Numbers: The region’s economy is diversified, with Wholesale/Retail Trade (835 companies), Professional Services (815 companies), and Construction (811 companies) leading. This diversification supports economic stability and resilience.
  • Emerging Sectors: Notable growth is seen in niche areas like Mobile Apps, Toys/Games, Waste Management, Internet Platforms, and Consumer Goods. While these sectors are smaller in scale, their growth signifies innovation and adaptation to market demands.

Business Continuity

  • Company Cessations: With 7,337 companies ceasing operations, there is a significant churn in the business landscape. This could indicate a competitive market or shifting economic conditions.
  • New Companies: In the last two years, 1,392 new companies were established, signaling an active entrepreneurial environment. This influx of new businesses is vital for economic renewal and innovation.
  • Scaleups: The presence of 43 scaleups indicates a supportive environment for business growth, essential for long-term economic health.

Leadership and Diversity

  • Founders’ Gender: 90% of founders are male, with only 10% female founders, showing a gender gap in entrepreneurship.
  • Directors’ Gender: A similar trend is seen in company leadership, with 69.58% male directors and 26.66% female directors. This disparity highlights the need for greater gender diversity in leadership roles.

Conclusion

Newcastle-under-Lyme’s economic landscape is characterised by a strong employment base, sectoral diversification, and an active business environment. While there is significant business churn, the emergence of new companies and scaleups indicates a dynamic and evolving economy. However, the notable gender disparity in business leadership warrants attention for fostering greater diversity.

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