Rochdale pegged as one to watch for future growth

Business Growth Hub reveals Greater Manchester’s growth regions of the future

• Rochdale pegged as one to watch for future growth
• Rochdale, Trafford & Tameside are biggest exporters
• Manchester, Salford & Trafford top growth locations

The Business Growth Hub has teamed up with leading business data analysts Experian to create a new business performance map of the Greater Manchester region.

Using data gathered from businesses across the Greater Manchester area the Business Growth Hub survey found that, while Manchester, Salford and Trafford remain the region’s most popular locations for growing businesses, the North of the city is fighting back.

Rochdale in particular is shining through with the highest proportion of small firms with identified growth characteristics, as home to the biggest number of businesses who export and showing great potential for exporting, ranked as the 16th Local Authority in the UK (out of 324).

The local growth research looks at three different types of growth for the economy - Business led growth looking at churn and business champions between 2010 and 2012; Export led growth, analysing current and potential export level; and Sector led growth using official data and forecasting to assess sectors that are likely to drive the economy in the short and medium term. Highlights of the findings in each of these areas for Greater Manchester businesses are:

Business Led Growth 

• Bury and Stockport have experienced the greatest churn within their business base over the last two years, with on average two per cent year on year growth 
• Rochdale, Salford and Wigan have the highest proportion of Business Champions, small firms with identified growth characteristics
• Six of the ten LADs in Greater Manchester have at or above England average proportion of business champions within their business base

Export Led Growth 

• Currently the top exporting LADs in GM are Rochdale, Trafford and Tameside
• Rochdale shows great potential for exporting* ranked as the 16th LA (out of 324). Wigan, Bury, Oldham and Salford are also ranked highly. (45, 87, 61 and 68th respectively) 
• Bolton and Wigan have the great exporting potential and rank within the top 15 per cent across England for export potential * 
• Trafford ranks highest in GM for its proportion of foreign owned businesses followed by Manchester 
• Rochdale and Trafford in the top 100 LAs for current exporters (58th and 87th respectively) 
• Greater Manchester is well represented with business champions. Rochdale, Salford, Wigan and Oldham rankled 31ST, 40TH, 53RD and 75TH

Sector led growth 

• Strong performance in the sectors which we anticipate to grow in the medium / long term (including professional service, financial services and administrative and support services) with Trafford ranked 24th, Manchester 28th and Salford 40th, creating a ‘growth crescent’ 
• Trafford and Wigan have the lowest proportion of public sector employment with Trafford in ranking within the top 5 per cent within England 
• Oldham and Manchester have the highest proportion of public sector workers 
• Trafford, Manchester and Salford are ranked highest for their proportion of employment within the sectors anticipated to grow in the medium to longer term. All three LADs have around a third of employment in sectors including professional services, financial services and administrative and support services. 
• Tameside and Oldham have the lowest proportion of identified growth sector employment

Richard Jeffery, Director of the Business Growth Hub, comments: “This research throws up some really interesting trends and developments in Greater Manchester’s business growth. While the traditionally better performing areas are continuing to do well, the green shoots of recovery and optimism that we are seeing in areas like Rochdale and Bolton are good news for business, particularly with the export opportunities that are open to them. We are supporting these all important growth companies in every way we cam – from mentoring and alternative financing to green health checks and access to new markets.”

* Export potential is based upon the proportion of businesses which fall into manufacturing sectors that tend to export highly, as well as to a lesser extent the proportion of foreign owned businesses and business champions