Economy
With ten years of uninterrupted growth (pre-pandemic), our £117bn economy is on target to continue its rapid growth over the next decade.
Supported by our skilled population of 4.7 million (which, with 32% of residents under 25, is one of the youngest in Europe), our local sectors offer a lucrative place for established or scaling businesses to excel.
We draw on our history of manufacturing to constantly reinvent the automotive market, and we tread new ground in the world of healthcare tech. We have one of the biggest gaming scenes in the UK, and we are leading the way with low-carbon solutions. We are a vibrant, economic powerhouse in the middle of the UK, on par with the likes of Morocco, Slovakia and Cuba.
An attractive region to big names
It is no surprise that in recent years the West Midlands has ranked as one of the UK’s leading regions for attracting Foreign Direct Investment (FDI).
Birmingham in particular, sitting at the heart of our unique three-city-region, is a major magnet for investors and was recently ranked the UK’s Most Investible City by PwC, which also saw it ranked as having the best investment prospectus by over 800 European real estate professionals.
A place for new ventures
The city has also been home to the highest number of start-ups, second only to London, in the last seven years and has the largest regional city economy in the UK. Yet despite this, Birmingham’s office space costs remain highly competitive (for example, it’s 14% lower than Manchester for new stock and 45% less for secondary stock).
Wider success
The region’s economic success, growth potential and investibilty doesn’t stop at Birmingham.
Solihull was recently ranked as one of the UK’s most productive locations with a GVA-per-filled job ratio on a par with London (and one far higher than most major UK cities).
By the same measure, the West Midlands overall has a considerably higher GVA-per-job rate than many other UK regions, including the South West and Greater Manchester.
Our economic strengths
The West Midlands can be a lucrative place for any new business venture, but we have certain strengths that lend themselves to our vibrant economy.
Advanced Manufacturing
Our history as an industrial behemoth can be seen today in our supply chains and the way that businesses here keep redefining modern manufacturing.
In fact, advanced manufacturing in the West Midlands generates £16bn for the national economy and 10.6% of local employment is in manufacturing.
Business, Professional and Financial Services
Also known as Modern Business Services, the BPFS sector covers everything from banking to Fintech to insurance. Birmingham’s economic district, Colmore Row, is home to some of the largest names in finance, including PwC, EY and Deloitte.
Business here has grown by 30% in the last five years, providing a stable and vibrant economic heart to our region.
Creative and Digital Technologies
The Creative and Digital Technologies sector in the West Midlands is the UK’s fastest-growing tech sector. This is no surprise, with a network of a multitude of accelerators and incubators helping new companies start up and thrive.
Leamington Spa, found next to Coventry, is home to one of the largest concentrations of games studios in the country. The West Midlands is responsible for 25% of the UK’s gaming output. We are always looking for the next great digital idea.
Low Carbon
The West Midlands is a green-conscious region. We are revolutionising technology and infrastructure through the likes of the Tyseley Energy Park. We have risen to the challenge of decarbonisation and have the goal to be zero carbon by 2041.
We think it is important to protect the countryside that surrounds our cities and the green spaces we’ve cultivated throughout them. It means better health for all and beautiful parks to visit with the family and connect with nature.
