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North West is leading industrial revival, says Barclays

The North West is setting the pace for manufacturing and entrepreneurial activity, according to the latest Barclays Entrepreneurs Index.

According to the banking giant, the region is leading a UK industry revival with a 23% increase in entrepreneurial activity while the number of shares changing hands in manufacturing firms rose by 45% year-on-year.

Regeneration projects were also heralded as part of the North West’s “renaissance” movement, with the £50bn Atlantic Gateway in the pipeline and development at the Port of Liverpool and Manchester Ship Canal.

Barclays also highlighted the region’s involvement in the first wave of City Deals announced by the Government in 2012, which included provision for Manchester and Liverpool to give them greater control over their economic growth policies.

North West entrepreneur and Dragons’ Den try-out, Imran Hakim, commented: “The local councils as well as central government have a particular focus on ensuring that there are initiatives to help this sector thrive during challenging times, because it’s a large part of the life of our regional economy.”

He added that government initiatives have made a particular impact in manufacturing for the region.

One explanation for the North West’s strengths was that weaker businesses are no longer operating there, while only the stronger companies remain.

Evergreen cash pot, The North West Fund, was also flagged up as a regional benefit, with £170m of private investment available for the long-term growth and prosperity in SMEs.

Alan Edwards, director of Barclays Wealth and Investment Management in Manchester, said: “As the birthplace of the Industrial Revolution, we know that the North West’s economy is underpinned by the manufacturing sector.

“From our work on the ground with local clients, we are seeing a noticeable shift in activity and confidence within the industrial sector, which has a knock-on effect for other businesses in the region.”

The North West was second only to London in terms of yearly increases in shares changing hands, although the average profit of these companies did fall marginally to £1.2m.

Recent investment funds such as the £75m mayoral cash pot for Liverpool, and the £1.2bn revolving infrastructure fund in Manchester were also cheered for boosting entrepreneurial activity in the region.

Clive Memmot, chief executive of the Greater Manchester Chamber of Commerce, said these schemes were vital to North West development.

He commented: “Investment in urban areas is crucial, which is why we are really pleased to see centralised initiatives such as City Deals.

“The region has a strong culture of co-operation between the private and public sectors. This unity helps to ensure that business is still being done even in typically more austere times.”

This was posted in Bdaily's Members' News section by Miranda Dobson .