Liverpool is recognised as a vibrant economic hub within the UK, boasting a diverse array of prominent industries that drive its growth. Among the leading sectors is the health and social care industry, which stands as the city’s largest in terms of economic output and employment.
With a history enriched by its maritime legacy, Liverpool also excels in manufacturing and logistics, capitalising on its strategic position as a port city to facilitate international trade and supply chain operations.
Key sectors like manufacturing boast significant investment and innovation, with major brands such as Jaguar Land Rover and Unilever operating within the region.
The synergy between Liverpool’s rich commercial history and modern advancements has indeed made it an attractive location for various industries, further enhanced by its robust transport connections by land, air, and sea. These factors combined ensure that the city not only contributes significantly to the regional economy but also holds an important position in the UK’s national economic landscape.
Overview of Liverpool’s Economy
Liverpool’s economy is a significant contributor to the UK’s financial landscape. As a port city with a rich industrial history, it has transformed into a modern hub for various key industries.
Key Sectors:
- Health and Social Care is the largest sector in terms of economic output, contributing significantly to regional GVA.
- Tourism & Hospitality industries play a pivotal role, capitalising on the city’s cultural heritage and entertainment options.
- Life Sciences are also a vital component, leveraging the city’s history in medical innovation.
Employment:
- Health and social care is not only a major economic driver but also the largest employer within the city, with a substantial percentage of the workforce engaged in this sector.
Economic Indicators:
- Liverpool displays a dynamic job market, suggested by a growth in employment figures.
- The city’s GVA and average salary are indicative of its economic health, with the labour force numbering over 330,000.
Diversity & Inclusion:
- Emphasis on diversity continues to shape the economic narrative, linking inclusivity with enhanced economic performance.
The city employs a dynamic and varied workforce, highlighting its capacity to adapt and grow. With a continued focus on diversification and innovation, Liverpool remains a key economic player within the UK.
Maritime Industry
Liverpool’s maritime sector stands out for its advanced infrastructure and comprehensive business services, contributing significantly to the local economy through a network of modern logistics and trade facilitation.
Shipping and Logistics
Shipping and logistics form the backbone of Liverpool’s maritime industry, leveraging the city’s strategic location and advanced port facilities. Firms in this cluster excel at providing integrated transportation services, including vessel management and freight forwarding.
The city’s port infrastructure ensures swift, efficient access for global market access.
Maritime Business Services
The myriad of maritime business services in Liverpool encompasses everything from ship repair to marine surveying. These services are crucial for the industry’s operational excellence, with companies specialising in port agency services and marine insurance. A report by Mersey Maritime underscores the substantial economic impact these services have on the region’s economy.
Tourism Sector
Liverpool’s tourism industry has shown remarkable resilience and growth, now being valued at over £5bn, surpassing its pre-pandemic peak. This sector is a critical part of the city’s economy, driven by its cultural attractions, sports tourism, and hospitality services.
Cultural Attractions
Liverpool is renowned for its diverse array of cultural attractions that draw visitors from around the globe. Cultural landmarks include the Liverpool Waterfront, which is a UNESCO World Heritage site, and the multitude of museums and galleries like the Tate Liverpool and The Beatles Story.
The city’s year-round calendar is packed with events and festivals, celebrating everything from its maritime history to its musical heritage.
Sports Tourism
Liverpool stands out on the global stage for its sports tourism, largely due to the international fan base of its football teams, Liverpool FC and Everton FC. Anfield and Goodison Park are not just stadiums but destinations for fans looking to experience the thrill of live matches and the profound sense of local football culture.
Hospitality Services
The hospitality industry within Liverpool has been instrumental in supporting the tourism boom. Hotels, restaurants, and nightlife venues have adapted to cater to an international audience, with hotel occupancy data reflecting the sustained demand. Hospitality services continually enhance the tourist experience, complementing the city’s attractions and events.
Manufacturing and Industrial Growth
Liverpool’s manufacturing landscape is robust, characterised by significant advancements in automotive, life sciences, and renewable energy sectors. It fosters innovation and sustains a wealth of employment opportunities.
Automotive Industry
The automotive sector in Liverpool is a cornerstone of its industrial potency, hosting influential brands such as Jaguar Land Rover. This industry is pivotal, contributing significantly to the region’s economic output and providing a substantial number of jobs.
Life Sciences and Biomanufacturing
Life sciences and biomanufacturing have surged in Liverpool, with its ecosystem of companies, research institutions, and skilled labour. This sector, noted for its economic contribution, ranges from pharmaceutical developments to biomedical innovations, establishing Liverpool as an influential hub in the health sector.
Renewable Energy and Environmental Technologies
Liverpool leads in the transition towards sustainability, with a focus on renewable energy and environmental technologies. The broad acceptance of green principles is seeding development in green manufacturing, supporting both local and global environmental goals.
Knowledge Economy
Liverpool’s Knowledge Economy is robust and diverse, spearheaded by key sectors that contribute significantly to the city’s economic landscape. Each sector thrives on innovation and expertise, driving growth and attracting investment.
Financial Services
Liverpool boasts a vibrant Financial Services sector. This area serves as an enabler for other industries, with skilled professionals providing essential services in banking, insurance, and investment. The city’s financial institutions play a significant role in the regional economy, supported by its historical trading ties and modern business infrastructure.
Digital and Creative Industries
The Digital and Creative Industries are flourishing in Liverpool, cementing the city’s reputation as a centre for creativity. This sector includes a spectrum of businesses, from digital marketing agencies to videogame developers, all contributing to Liverpool’s economic vitality. Investment in technology and a talent pool of creative minds nurture a dynamic digital economy.
Higher Education and Research
In Liverpool, Higher Education and Research form a cornerstone of the Knowledge Economy. The presence of well-respected universities and research institutions ensure a continuous flow of innovation and skilled graduates. These academic bodies collaborate with industries to fuel research and development, anchoring Liverpool’s status as a hub for educational excellence.
Retail and Leisure
Liverpool’s retail and leisure sectors are significant contributors to the city’s economy, with shopping centres and retail parks providing a plethora of shopping options, while leisure and entertainment facilities cater to a diverse range of interests and activities.
Shopping Centres and Retail Parks
Liverpool ONE serves as the heart of shopping in Liverpool, marking its impact as a multi-faceted shopping destination that has enhanced the local economy, especially after celebrating its 15-year anniversary. The shopping centre not only houses an array of international brands but also bolsters local businesses, thus creating a dynamic consumer experience in the city.
The retail parks in and around Liverpool complement the urban shopping scene by offering convenience and an extensive selection of retail outlets, contributing to the strength and accessibility of Liverpool’s retail economy.
Leisure and Entertainment Facilities
Beyond shopping, Liverpool’s leisure and entertainment facilities are diverse, catering to both locals and tourists. The city’s rich cultural tapestry is reflected in its numerous theatres, live music venues, museums, and galleries.
Recreational spaces such as parks and the revitalised waterfront are also significant, thus ensuring that Liverpool’s leisure and entertainment sectors play a critical role in the city’s overall appeal as a location for both work and play.
Property and Infrastructure Development
Liverpool’s property and infrastructure development is thriving, marked by several high-impact residential and commercial projects. These ventures are reshaping the city’s skyline and generating significant investment opportunities.
Residential Projects
Liverpool’s residential sector is experiencing a boom, with ambitious projects like the Upper Central regeneration scheme set to provide state-of-the-art living spaces in the city centre. Spanning 56 acres, this £2 billion international gateway development is pivotal in offering both luxury and affordable housing solutions.
Commercial Developments
On the commercial front, Liverpool is not standing still. Strategic developments aim to bolster the city’s standing as a key business hub. Iconic projects, such as the new Everton Football Club stadium at Bramley-Moore Dock, underscore the city’s commitment to advancing commercial facilities, alongside generating vibrant new environments for businesses and communities alike.
Business Support and Networks
Liverpool stands out for its robust business support landscape and collaborative networks that are integral for the growth and assistance of both startups and established firms.
Chambers of Commerce
The Liverpool Chamber of Commerce plays a crucial role in local business support. It offers a variety of services such as networking events, business advice, and advocacy to represent the interests of Liverpool businesses on a regional, national, and international scale.
Business Incubators and Accelerators
The city is celebrated for programmes like the Enterprise Hub which positions the Liverpool City Region in the top echelons globally for business start-up support. Business incubators and accelerators such as Excelerate Labs enhance this by providing vital resources, mentorship, and investment opportunities to fledgeling and scaling businesses.
Future Outlook and Investment Opportunities
The Liverpool economy is demonstrating robust signs of growth, with expectations of a significant upturn in GVA growth, projected to reach nearly 6%. This optimistic forecast capitalises on pre-pandemic averages, which hovered around a mere 0.6%.
Key Sectors:
- Advanced Manufacturing: Central to the region’s economic vitality, often linked to Liverpool’s historical expertise in logistics and trade.
- Professional & Financial Services: A flourishing sector, attracting global businesses and fostering local start-ups.
- Digital and Creative Industries: An emerging field offering innovative growth prospects.
Investment in infrastructure and development is apparent, with over £20 billion in investment opportunities. These projects, spanning various sectors, are pivotal in driving Liverpool’s future economic landscape.
Labor Market Prospects: With an expected increase of 9,100 jobs by the end of 2023, the employment outlook is optimistic, implying a strengthened local economy and opportunities for skilled labour.
The region’s investment appeal is further reinforced by its strategic international connections through its western facing port, which is of considerable importance to ‘Global Britain’.
Investors are likely to find a welcoming and dynamic environment in Liverpool, ready to support a diverse range of business endeavours with an eye towards sustainable and innovative growth.
