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.