Advanced manufacturing powering region's growth economy, new research finds
Report identifies a concentration of advanced manufacturing and related technologies across Birmingham, Coventry and Leamington Spa
The Midlands' strength in advanced manufacturing is helping to underpin a highly connected regional business economy, according to new research.
The Regional Clusters report from Barclays Eagle Labs and Beauhurst identifies a concentration of advanced manufacturing and related technologies across Birmingham, Coventry and Leamington Spa, with complementary strengths spanning electric vehicles, robotics and 3D printing.
In Birmingham, the analysis identifies 378 advanced manufacturing businesses, alongside strengths in robotics and 3D printing.
Coventry has 219, with the sector almost three times as concentrated in the local economy as it is nationally, alongside a significant specialism in electric and hybrid vehicles.
Leamington Spa adds further strengths in advanced manufacturing, electric and hybrid vehicles and technology. Together, the three form a triangle of complementary strengths that the research describes as a wider industrial cluster.
The findings align with the West Midlands Combined Authority's Growth Plan which puts reindustrialisation at its centre, including stronger supply chains, faster technology adoption and support for advanced manufacturing.
West Midlands Mayor Richard Parker said: "Manufacturing built the West Midlands, and it will play a critical role in our future prosperity too.
"This research highlights the strength of our industrial base and the growing concentration of businesses in high-value sectors such as electric vehicles, robotics and defence.
"But we're not taking anything for granted. My focus is on making sure that more of those businesses can start, grow and scale in the West Midlands.
"Our Reindustrialisation Blueprint sets out how we're backing innovation, supporting investment and giving firms the skills, sites and infrastructure they need to succeed, so the next generation of essential products and technologies can be made right here."
The research also reveals how interconnected the Midlands business economy is.
Birmingham-headquartered companies frequently have subsidiaries or trading locations elsewhere in the region, with particularly strong connections to Dudley, Wolverhampton and Walsall.
The Birmingham-Dudley link is the strongest among these: 4,600 subsidiary and trading-address links, around 6.6 times the number that would normally be expected given wider patterns of business activity.
Paul Faulkner, vice-chairman of Barclays in the Midlands, added: "Advanced manufacturing has been part of the Midlands' economic story for generations and these findings demonstrate its importance to the region's future growth too.
"What stands out is the combination of specialist strengths across Birmingham, Coventry and Leamington Spa, alongside the wider business connections that stretch across the Black Country, Warwickshire and Worcestershire.
"The opportunity now is to build on those strengths and help more ambitious Midlands businesses access the investment, expertise and markets they need to grow and create jobs here in the region."