West Midlands Corporate Clusters Outperform National Growth Rates
West Midlands corporate clusters are outperforming national growth rates, strengthening the region’s role in delivering the UK Government’s Industrial Strategy.
According to the latest HSBC UK Corporate Tracker, more than half of the region’s fastest-growing large companies are concentrated in Dudley, Shropshire, Telford and Wrekin, Warwick and Birmingham. As a result, the West Midlands continues to position itself as a key engine of national economic growth.
Growth Rates Outpacing the UK Average
The biannual tracker, based on Beauhurst financial data, found that 162 large firms in these clusters achieved annual turnover growth above the UK median of 10.5% between 2021 and 2024. In comparison, UK Gross Value Added (GVA) grew at 7.73% annually over the same period.
Despite ongoing economic uncertainty, these businesses have expanded at pace. Consequently, the region is demonstrating resilience at a time when national growth remains under pressure.
Notably, 54% of the West Midlands’ fastest-growing large companies are located within defined corporate clusters. Therefore, geographic concentration appears to be accelerating performance.
Supporting the UK’s Priority Sectors
Importantly, many of these firms operate within the Government’s eight priority sectors — known as the ‘IS-8’. These sectors, which include advanced manufacturing, clean energy and life sciences, sit at the heart of the UK’s long-term productivity strategy.
In the West Midlands, strong representation can be seen in advanced manufacturing, creative industries and clean energy. For example, businesses such as Inspired Thinking Group Limited and Project Solar UK reflect the region’s sector diversity.
The expansion of advanced manufacturing is also reflected in projects such as the Wolverhampton engineering tech hub.
Furthermore, digital and technology-led corporates are emerging as a secondary growth driver. This expansion is supported by the region’s established R&D capability, engineering expertise and applied technology ecosystem.
A Small Group with Major Economic Impact
Although large corporates represent just 0.39% of active UK businesses, they employ 45% of the national workforce. In addition, they account for around 70% of total employment within the IS-8 sectors.
Therefore, while relatively small in number, these companies exert significant influence over productivity, skills development and supply chain stability.
Mark Timms, Head of Corporate Banking for the Midlands, Wales and South East at HSBC UK, said the performance of large regional firms will prove critical to the Industrial Strategy’s success.
He noted that decisions around investment, research, skills and supply chains will materially shape the UK’s long-term economic outlook. As a result, regional clusters such as those in the West Midlands will play an increasingly central role in national competitiveness.
Strengthening Regional Advantage
The findings reinforce the West Midlands’ position as a strategic industrial hub. On one hand, the region maintains historic strengths in advanced manufacturing. On the other, it continues to expand into clean energy and digital innovation.
Overall, the data suggests that clustered corporate growth can accelerate productivity and attract further investment. Consequently, policymakers and investors may increasingly look to regional ecosystems as the foundation of national economic renewal.
As the UK Industrial Strategy moves into implementation, the performance of West Midlands corporate clusters could become a defining factor in whether long-term growth ambitions are realised.
