West Midlands could reap £1.5bn a year manufacturing boost

The West Midlands has the potential for a £1.5bn a year manufacturing dividend, according to new analysis by the UK’s strategic hub for industrial research.

The High Value Manufacturing Catapult analysis marks the move of its HQ to Innovation Birmingham, part of the Bruntwood SciTech network and Birmingham’s digital and tech campus.

Formed 11 years ago by Innovate UK, the HVM Catapult comprises seven research centres, including WMG, and worked with more than 5,500 industrial partners in 2020/21.

Andy Street, Mayor of the West Midlands, commented: “Birmingham, and indeed the wider West Midlands, has for centuries enjoyed a distinguished heritage as a centre of manufacturing excellence and it remains a source of strength as we reinvent the sector for the 21st century.

“Thanks to the calibre of research output emanating from our local universities, our dynamic private sector and cross-party political will, we’re well placed to help shape the future of manufacturing not just here in the UK but right around the world.

“That’s why it’s fantastic news that HVM Catapult, by moving its headquarters to Innovation Birmingham, will now join this powerful concentration of commitment to manufacturing. I’m confident that HVM Catapult will serve as a brilliant sector catalyst – joining dots, showcasing talent and shining a spotlight on best practice.

“As we bounce back from Covid and seek to supercharge our region’s recovery, it is vital that we fulfil our true potential in terms of the contribution that R&D, innovation and advanced manufacturing can and must make to our overall economic performance. HVM Catapult will help us to deliver on this important mission.”

HVM Catapult claims to see a “wealth of growth potential” in the West Midlands. The wider manufacturing sector supports 317,000 direct jobs in the region, the second highest in the UK, with strengths in automotive and aerospace engineering.

The 50 biggest manufacturing enterprises in the West Midlands are “globally competitive” and account for £3.5bn of gross value added per year. The average economic contribution (GVA) per job of these companies is 48 per cent above the UK average for the sector.

However, the GVA per job of the wider manufacturing base in the region is 10 per cent below the UK average.

By supporting smaller companies and enhancing regional supply chains through joint research and innovation, from simplifying production lines to developing more efficient technology, the HVM Catapult aims to help bridge that productivity gap.

By Matthew Neville – Correspondent, Bdaily

• Add me on LinkedIn and Twitter to keep up to date
• And follow Bdaily on Facebook, Twitter and LinkedIn
• Submit press releases to editor@bdaily.co.uk for consideration.

Looking to promote your product/service to SME businesses in your region? Find out how Bdaily can help →