The city of Birmingham is the gateway to the Midlands and one of the best-ranking UK cities in terms of quality of life, entrepreneurship, and global outlook. Sustainable growth and innovation are key priorities for the local business community, as well as for the regional government, who is clearly aware of the city’s potential. Take a detailed look at the key facts and figures that make Birmingham one of the best cities for business in the United Kingdom.
The Economy
Birmingham’s economic impact extends beyond the regional level, as the city has strongly positioned itself as an attractive global business destination. For several years, Birmingham has upheld the title of ‘Britain’s Second City’, as this Midlands metropolis ranks right behind London in terms of population and gross domestic product. The city’s economy is nurtured by a healthy balance between local and foreign investment and its annual GVA is in the region of £48 billion, which makes it only second to the British capital. Birmingham is part of the Core Cities Group, and its inclusion in the group confirms the importance of the local economy and the city’s ability to drive growth and development.
According to Business Birmingham, there are over 70,000 companies registered in the city, and more than 1,500 of those are multinationals. Some of the major corporations with presence in this Midlands city include Jaguar Land Rover, KPMG, Dunlop Tires, Deloitte, Eversheds LLP, Kraft, and the Virgin Group.
Key Industries
Birmingham has a resilient and prosperous economy that relies on a varied range of industries. Over the decades, the city’s industrial profile has changed from being primarily based on manufacturing to becoming a thriving service-oriented economy where high-value and knowledge-intensive industries play an increasingly important role. The city is a hotspot for companies operating in the professional and businesses services sector, banking and finance, digital and media, and construction. Birmingham is also making great progress in being recognised as a centre for innovation, since the research and development sector keeps growing in prestige and value. The University of Birmingham alone supports nearly 12,000 jobs and generates a GVA of £530 million, attracting an average of £145 million in funding every year.
Tourism also contributes significantly to the city’s total economic output. More than 34 million people visited Birmingham in 2014, breaking all previous records and helping create over 2,000 new jobs. All in all, the visitor economy is worth more than £5.3 billion. Growing visitor numbers are driven by the city’s historic and cultural heritage, as well as by its excellent business and conferencing facilities. There is no doubt that the local government has successfully capitalised on Birmingham’s strengths in order to attract more visitors and higher revenues. This has been partially achieved through strategic tourism and business programmes like Business Birmingham, Meet Birmingham, and Visit Birmingham.
Business Innovation
The 2015 edition the Centre for Cities Report provides some interesting insights into the current levels of business innovation in Birmingham. Business stock stands at 263 for every 10,000 people, and in 2013 there were 44 startups for every 10,000 residents. In April 2015, several Birmingham-based businesses were nominated to the Ernst & Young Midlands Entrepreneur of the Year award, which rewarded strategic vision, leadership, innovation, and other elements that are crucial for the city’s economic success.
Infrastructure
The city’s infrastructure is in place to support a thriving business community. Birmingham’s excellent road network makes it possible to reach 90 per cent of the country in approximately 4 hours. The international airport handles more than 9 million passengers a year and its recent expansion has improved Birmingham’s connectivity with the rest of the world, thanks to the addition of several international routes serving world-class business destinations, such as Beijing, Dubai, and New York.
The Big City Plan aims to complete several urban regeneration projects by 2031, setting out Enterprise Zones and making the city more attractive to residents, visitors, and investors.
Jobs and Skills
Although the local employment rate (64 per cent) could certainly be improved, Birmingham has made substantial progress in terms of creating jobs for young people and increasing the number of private sector jobs. Programmes like the Birmingham Baccalaureate have been created to improve the local skills pool and to make the city more competitive. This seems necessary as a 2014 survey by the Greater Birmingham Chamber of Commerce revealed that 74 per cent of employers surveyed claimed that they had problems recruiting skilled staff. In the near future, it is expected that demand for skills in digital media, life sciences, engineering, and insurance will drive economic growth and further job creation.
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Sources:
(1) http://businessbirmingham.com/birmingham-is-ready/for-business/exec-summary
(2) http://www.newstatesman.com/lifestyle/2013/08/birmingham-or-manchester-which-britains-second-city
(3) http://www.centreforcities.org/city/birmingham/
(4) http://www.corecities.com/
(5) http://businessbirmingham.com/birmingham-is-ready/for-business/exec-summary
(6) http://www.birmingham.ac.uk/Documents/university/economic-impact-report-summary.pdf
(7) http://birminghamnewsroom.com/birmingham-visitor-figures-hit-record-high/
(8) http://www.centreforcities.org/city/birmingham/
(9) http://www.ey.com/UK/en/Newsroom/News-releases/15-04-23—Midlands-leading-entrepreneurs-unveiled-for-EY-awards
(10) https://birminghamairport.co.uk/
(11) http://bigcityplan.birmingham.gov.uk/
(12) http://www.skillsforbirmingham.com/
(13) http://www.birminghampost.co.uk/business/business-opinion/examining-the-productivity-dilemma-8437686