Overview
Torfaen’s economic landscape is characterised by a diverse mix of sectors, with a particular emphasis on wholesale and retail trade, construction, and manufacturing. The region shows signs of steady business growth, underpinned by a workforce of 17,336 employees. Notably, there has been a 9.43% growth in employee numbers, indicating an expanding job market. Despite no recent IPOs, the presence of scaleups and new companies in the past two years highlights an environment conducive to business development.
Employment and Business Growth
- Total Employees: 17,336. Torfaen has experienced a significant increase in employment, with a 9.43% growth in the workforce. This indicates robust economic activity and potential for future job creation.
- Employee Growth: 9.43%. This growth rate reflects a dynamic job market, likely driven by the expansion of existing businesses and the establishment of new ones.
- Number of Scaleups: 23. The presence of scaleups signifies a mature business ecosystem capable of supporting growing companies.
- New Companies (2 Years): 1,071. A substantial number of new businesses have emerged, demonstrating entrepreneurial activity and economic dynamism.
Sector Dynamics
- Top Sectors: Wholesale/retail trade (20.2%), Construction (15%), Manufacturing (9.04%). These sectors dominate the economic landscape, indicating a balanced mix of service-oriented and industrial activities.
- Sectors with Most Growth: Advertising and branding services, Telecommunications services, Professional services for businesses, SaaS. Although small in number, these sectors are growing, reflecting trends in digital transformation and service-oriented business models.
Business Continuity
- Company Cessations: 3,721. This figure suggests a challenging environment for some businesses, potentially due to competitive pressures or economic shifts.
- Company Deaths: 314. The number of companies ceasing operations highlights the importance of business resilience and adaptation in the region.
Company and Founder Demographics
- Female Founders: 19.57%. While there’s a presence of female entrepreneurship, there’s room for increased gender diversity in business leadership.
- Male Founders: 78.26%. Male founders dominate the entrepreneurial landscape, reflecting a common trend in business ownership.
- Female Directors: 27.03%. Female representation in company directorship is notable but highlights the ongoing need for gender balance in leadership roles.
- Male Directors: 70.6%. Male directors form the majority, indicating traditional gender roles in corporate governance.
Conclusion
Torfaen’s economic environment is vibrant, marked by a diverse sectoral presence and significant employment growth. The rise in new companies and scaleups is encouraging, though the high number of company cessations points to potential challenges. Efforts to foster a more gender-balanced entrepreneurial and leadership landscape could further enhance the economic vitality of the region.