Introduction:
Promising news emerges for the North East as expansive areas are earmarked for significant business expansion and investment growth. Notable statistics indicate that more than two-fifths of local zones in the region, totaling 42%, have been singled out as “Business Creation” hubs—locations anticipated to experience a remarkable surge in both business ventures and investment influx.
Distinct Growth Clusters:
The freshest insights from KPMG UK and the University of Nottingham’s Local Business Pulse Index shed light on various sectors poised for evolution:
- Business Creation Group:
Highlighted Areas: Hartlepool, Middlesbrough, Redcar and Cleveland, South Tyneside, Sunderland - High Investment Group:
Highlighted Areas: County Durham, Gateshead, Stockton-on-Tees - Sales Growth Group:
Highlighted Areas: Darlington, Newcastle upon Tyne - Employment Growth Group:
Highlighted Area: North Tyneside - Consumption Growth Group:
Highlighted Area: Northumberland
Regional Commentary:
Ian Beaumont, the Office Senior Partner at KPMG in the North East, offered insights into the burgeoning scenario: “The number of start-ups and investment prospects in the North East is on the rise, making the area a significant participant in the business creation sector. This is particularly true in Tees Valley, where newly injected investment in freeports, carbon capture, and its new Treasury Campus are bolstering economic prospects in the region and inciting a high level of creativity and entrepreneurship.”
Room for Improvement:
While commendable growth trends emerge, certain areas warrant attention. The dearth of “Research and Innovation” sectors might contribute to the absence of “High Productivity” clusters. Addressing this gap could cultivate an environment conducive to fostering transferable knowledge and skills, potentially enhancing the region’s overall productivity landscape.
Conclusion:
The North East’s prospects are on an upswing, with designated areas primed to lead the charge in business expansion and investment enhancement. This unveiling showcases not only the region’s current growth but also the strategic path to steer it toward a dynamic economic future.
