Economic Profile

The Manufacturing Sector in Birmingham

Birmingham’s manufacturing sector continues to play a key part of the City’s economy, employing over 60,000 people in more than 3,300 manufacturing businesses. These include world-class manufacturing companies, which successfully complete in international markets and highly innovative small businesses at the cutting edge of implementing technology transfer. This is underpinned by the strength of Birmingham’s universities with their excellent scientific and research facilities, providing the platform for the future development of patents, licence opportunities and “spin-out” ventures.

In 2005, the City’s manufacturing sector produced output estimated at £2.9 billion, around a fifth of Birmingham’s total output. Reflecting ongoing productivity improvements, Birmingham’s manufacturing sector output is expected to increase over the next decade, rising from £2,884 million to £3,173 million.

Birmingham’s output figures for key sub-sectors are expected to increase between 2005 and 2015, with for example, the pharmaceuticals industry forecast to see an increase of over 90% in its output and the electronics industry over 40%. This growth is largely due to companies with strong links to the local universities, and highlights the need for the City to strengthen further its position in a number of newly emerging, fast-growth sub-sectors.

Productivity per worker in manufacturing is forecast to remain above the average for businesses across all sectors between 2005 and 2015.

The manufacturing sector remains a significant employer for Birmingham. The city has a higher concentration of manufacturing employment than any other local authority in the UK.

Key sub-sectors within manufacturing in Birmingham are

• Basic metal products
• Food production
• Mechanical engineering
• Printing and recorded media
• Electrical engineering
• Plastics and rubber
• Jewellery and related manufacturing
• Medical and precision instruments
• Clothing and textiles

Employment in the textile industry grew by over 50% between 1991 and 2004. Such figures highlight the City’s potential for key design and technology-led sub-sectors in future years, including environmental technologies.

Birmingham’s manufacturing economic output is forecast to increase in future years. To achieve and strengthen this growth it is vital that this complex sector becomes ever more competitive through the use of leaner processes and faster responses to emerging market needs.

Birmingham is well placed to take advantage of the opportunities in key growth sub-sectors, which include environmental and medical technologies.

Source: Birmingham Economic Information Centre

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