The North East of England, traditionally known for its industrial heritage, has undergone a significant transformation over recent years. Today, the region is a hub for various thriving industries, each contributing substantially to the local economy. Here, we explore the top five thriving industries in the North East, supported by recent statistics.
1. Advanced Manufacturing
Advanced manufacturing is a cornerstone of the North East economy. The region boasts a robust manufacturing sector that has evolved from traditional industries to high-tech manufacturing.
- Statistics: The North East’s manufacturing sector contributes approximately £7.5 billion to the regional economy, accounting for 15% of the area’s GVA (Gross Value Added), significantly higher than the national average of 10% .
- Key Players: Major companies like Nissan, Hitachi Rail, and Siemens have established significant operations in the region, leveraging its skilled workforce and strategic location.
2. Digital and Technology
The digital and technology sector is experiencing rapid growth, driven by a surge in startups and the expansion of established tech firms.
- Statistics: In 2023, the digital sector in the North East grew by 26%, contributing over £1.3 billion to the local economy . Employment in this sector has also increased by 20% in the past year.
- Key Hubs: Newcastle and Sunderland are emerging as tech hotspots, with innovation centers like the Sunderland Software City and Digital Catapult North East & Tees Valley fostering growth and collaboration.
3. Renewable Energy
The North East is at the forefront of the renewable energy revolution, with significant investments in wind, solar, and biomass energy.
- Statistics: The region generates more than 30% of its electricity from renewable sources, higher than the national average of 28% . The renewable energy sector employs over 11,000 people, reflecting a 15% increase over the past three years.
- Major Projects: Key projects include the Dogger Bank Wind Farm, which, once completed, will be the world’s largest offshore wind farm, and the Teesside Renewable Energy Plant, a leading biomass power station.
4. Life Sciences and Healthcare
Life sciences and healthcare have become pivotal industries, supported by world-class research facilities and a growing number of biotech companies.
- Statistics: The life sciences sector in the North East has seen a 12% annual growth, with a GVA contribution of £1.6 billion . Employment in this sector has risen by 8% year-on-year.
- Centers of Excellence: The region hosts the National Innovation Centre for Ageing and the Newcastle Helix, a major innovation district focusing on healthcare and data science.
5. Logistics and Distribution
Due to its strategic location and excellent transport links, the logistics and distribution sector is thriving in the North East.
- Statistics: The logistics sector contributes approximately £2.3 billion to the North East economy, employing over 50,000 people . The Port of Tyne is a key asset, handling over 4.5 million tonnes of cargo annually.
- Infrastructure Investments: Significant investments in infrastructure, including the expansion of the A1(M) and the development of new distribution centers, have bolstered the region’s logistics capabilities.
Conclusion
The North East of England is a region in transformation, characterized by diverse and rapidly growing industries. Advanced manufacturing, digital and technology, renewable energy, life sciences and healthcare, and logistics and distribution are driving economic growth and job creation. With continued investment and innovation, these industries are set to play a pivotal role in the region’s future prosperity.
References
- North East Local Enterprise Partnership (NELEP) Reports.
- Office for National Statistics (ONS) – Regional GVA Data.
- Tech Nation 2023 Report.
- RenewableUK – Regional Energy Statistics.
- BioIndustry Association (BIA) – Life Sciences Sector Data.
- Department for Transport (DfT) – Logistics Sector Analysis.