The latest HSBC UK Corporate Tracker has identified clusters of large businesses in the West Midlands that are outpacing the average UK growth rate for major firms, underlining the crucial role the West Midlands can play in delivering the UK’s Industrial Strategy.
Using Beauhurst data, which draws on the most recent financial disclosures, the biannual HSBC UK tracker found that 54% of the West Midlands fastest-growing large companies are located in clusters across Dudley, Shropshire, Telford and Wrekin, Warwick and Birmingham. Despite a backdrop of continued economic uncertainty, 162 large West Midlands firms based in these clusters achieved annual turnover growth above the UK median rate for large businesses of 10.5% between 2021 and 2024, outpacing the UK economy’s 7.73% annual GVA growth over the same period.
The clusters contain many companies operating within the UK Government’s eight future‑focused sectors1 – the ‘IS‑8’. These sectors, including advanced manufacturing, clean energy and life sciences, have been selected as central to boosting long-term productivity and attracting investment. In the West Midlands, they include clean energy, creative industries and advanced manufacturing, represented by growing businesses such as Inspired Thinking Group Limited and Project Solar UK.
Beyond manufacturing, digital and technology-focused corporates are emerging as a secondary growth driver, supported by the region’s R&D, engineering and applied technology ecosystem. Corporates are a small but mighty group – they represent just 0.39% of all active UK businesses yet employ 45% of the workforce.
Together, these large companies account for around 70% of total employment amongst companies operating in IS-8. These sectors, including advanced manufacturing, clean energy and life sciences, have been selected as central to boosting long-term productivity and attracting investment.
Mark Timms (pic), Head of Corporate Banking, Midlands, Wales & South East at HSBC UK, explained: “The performance of a relatively small number of large businesses will be critical to the success of the UK’s Industrial Strategy.
“Our research shows that the clusters we’ve identified in Dudley, Shropshire, Telford and Wrekin, Warwick and Birmingham, will play a central role in the UK’s future competitiveness. The UK economy is at a turning point and decisions taken here on investment, skills, R&D and supply chains will materially influence whether the UK meets its long term economic ambitions.
“That’s why HSBC UK is working closely with many of these West Midlands corporates and their supply chains to support their continued growth. Connecting businesses to opportunities both domestically and internationally and ensuring they have access to the capital, insights, and expertise to deliver growth and success.”
