Manchester proves industry has the answers to boosting regional growth
Manchester’s tech sector is one of the fastest-growing clusters in Europe – all thanks to a culture of innovation going back to the industrial revolution, says Alison Ross
When Boris Johnson was Prime Minister, I developed a fierce hatred of the phrase ‘levelling up’, even stronger than the antipathy triggered by the ‘Northern Powerhouse’ motif of the Cameron era. Mention either in a gathering of Manchester business leaders and you are guaranteed a roomful of eye-rolling. Hearing it so many times, it felt as though central government was actively gas-lighting the regions, with promises made and broken so often that you felt you were going mad (see HS2 for details).
The thing that is so frustrating is that the underlying diagnosis is obviously right; regional inequality entrenched by the staggering gravitational pull of London hurts the UK. The ‘productivity puzzle’ doesn’t seem that confounding seen from the North West – low investment, plus skills shortages divided by poor infrastructure tends to equal stagnant growth and poor economic outcomes.
Manchester’s tech sector is however bucking that trend and by any standards – especially Northern ones – thriving. We confidently rank amongst the fastest-growing clusters in Europe, with the digital and creative sector contributing an estimated £5bn-plus to Greater Manchester’s economy each year, employing well over 100,000 people.
Why? The factor most often cited is collaboration, springing from a culture of innovation and industry, dating back to the industrial revolution, when businesses learned to share expertise and resources to stay competitive. Today, local networks like Manchester Digital, have strong ties between universities and industry, and close public-private partnerships further encourage knowledge exchange, a can-do attitude and honest-to-goodness civic pride. Put simply, it feels good to build a business here and be part of a supportive and successful community. My own company, Auto Trader, is soon to move its 1,000 strong Manchester workforce to Circle Square, the physical embodiment of this, a development designed to bring tech companies, universities and the broader community together.
The tech industry will level up Manchester’s economy
Mayor Andy Burnham understands the massive potential of the tech industry to truly level up the region’s economy. The average tech salary in the north-west is approaching £40,000, far outpacing the regional average of £30,000. These are high-quality, high-paying jobs with the potential to transform lives and communities, especially as these are not careers that require a degree. There is a pathway from our more deprived areas, through T-Levels and apprenticeships, that goes straight to offices in the new shiny towers in the city centre, given the right mix of education and employer engagement.
But there is more we can do. The early wins of devolution need to be built upon with a better deal for our regions. There is a huge opportunity to further support the tech sector by understanding and matching the demand for digital skills and addressing a UK skills gap estimated to cost the UK economy some £63bn a year. By empowering regions to take greater control over skills funding and education strategies, local ecosystems can better align training with the specific needs of businesses. This would strengthen local talent pipelines, offer a more agile response to skills shortages, and support the growth of innovative companies.
All our regions do things differently, with strengths and weaknesses which will be best understood by the people who live and work there. But every part of the country needs to contribute – not just the south-east – if the UK wants to be a major player in the industries of the 21st century. Under this government enhanced regional devolution deals could deliver real, dare I say, levelling up at last – not just the Johnson pipe-dream.
Alison is chief people and operations officer at Auto Trader and chair of Manchester Digital