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

Analysis Report: Economic and Business Activity in Sandwell

Overview

Sandwell’s economic landscape is characterised by a diversified business sector, with a significant presence in wholesale, retail trade, construction, and transportation. The council area shows stable growth in employment, with notable developments in various sectors. The data indicates a healthy mix of small and medium-sized enterprises (SMEs), highlighting Sandwell’s supportive environment for business development.

Employment and Business Growth

  • Total Employees: Sandwell has a total of 104,572 employees. With 375 companies reporting an increase in employees, the region demonstrates a positive trend in employment growth.
  • Employee Growth: The percentage of employee growth stands at 9.92%, signifying a robust increase in employment opportunities.
  • Top Sectors by Company Numbers: Key sectors include Wholesale and Retail Trade (4,787 companies), Construction (3,492), Transportation (2,857), Information and Communication (1,964), and Real Estate Activities (1,939). These sectors form the backbone of Sandwell’s economy.
  • Top Sectors with Employment Growth: Sectors such as Other Manufacturing, Machinery, Toys, Games, and Sports Equipment show signs of emerging growth, despite their smaller size.

Business Continuity

  • Company Cessations: There are 2,637 companies reported as ceased, which needs to be evaluated against the backdrop of 7,696 new companies established in the last two years. This indicates a dynamic but challenging business environment.
  • Scale-ups: With 108 scale-ups, Sandwell is nurturing high-growth companies, crucial for economic development.
  • SMEs and Exporters: 14,253 SMEs and 560 exporters underline the strength of small businesses in Sandwell’s economy, contributing significantly to local and international trade.
  • Foreign Parent Companies: The presence of 317 companies with foreign parentage suggests an attractive investment environment.
  • Fundraisings and Patent Owners: The region has 492 companies involved in fundraising activities and six patent owners, indicating a focus on innovation and growth.

Gender Representation in Leadership

  • Founders: Gender distribution among founders is 20.63% female and 79.37% male.
  • Directors: Female representation among directors is 22.23%, with male directors at 72.90%. This shows a gender gap in leadership roles.
  • Age Distribution of Directors: Directors’ age distribution suggests a diverse range in leadership, with significant representation in the 40-60 age group.

Additional Insights

  • Young Companies with Young Directors: There are 1,885 young companies with young directors, indicating a vibrant startup ecosystem.
  • Attendance in Events: Sandwell has a notable level of engagement in business events, with 16 attendances.
  • Intellectual Property and Innovation: The presence of six patent owners reflects a modest but important focus on innovation within the region.

Conclusion

Sandwell presents a dynamic and growing business environment, marked by a diverse range of sectors and a healthy mix of SMEs and larger enterprises. The area shows positive trends in employment growth, with challenges in gender diversity in leadership roles. The council’s focus on nurturing scale-ups and innovation is commendable, positioning it as a fertile ground for economic development and investment.

Company foundations and cessations over time

Active companies over time

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