Economy of Birmingham
Encyclopedia
City
A city is a relatively large and permanent settlement. Although there is no agreement on how a city is distinguished from a town within general English language meanings, many cities have a particular administrative, legal, or historical status based on local law.For example, in the U.S...
of Birmingham
Birmingham
Birmingham is a city and metropolitan borough in the West Midlands of England. It is the most populous British city outside the capital London, with a population of 1,036,900 , and lies at the heart of the West Midlands conurbation, the second most populous urban area in the United Kingdom with a...
, in England
England
England is a country that is part of the United Kingdom. It shares land borders with Scotland to the north and Wales to the west; the Irish Sea is to the north west, the Celtic Sea to the south west, with the North Sea to the east and the English Channel to the south separating it from continental...
, is an important manufacturing
Manufacturing
Manufacturing is the use of machines, tools and labor to produce goods for use or sale. The term may refer to a range of human activity, from handicraft to high tech, but is most commonly applied to industrial production, in which raw materials are transformed into finished goods on a large scale...
and engineering
Engineering
Engineering is the discipline, art, skill and profession of acquiring and applying scientific, mathematical, economic, social, and practical knowledge, in order to design and build structures, machines, devices, systems, materials and processes that safely realize improvements to the lives of...
centre, employing over 100,000 people in the industry and contributing billions to the national economy. During 2005, the West Midlands
West Midlands (region)
The West Midlands is an official region of England, covering the western half of the area traditionally known as the Midlands. It contains the second most populous British city, Birmingham, and the larger West Midlands conurbation, which includes the city of Wolverhampton and large towns of Dudley,...
region as a whole created UK exports worth £15.2 billion, around 7.1% of the national total. Output is forecast to grow during the next five years.
Although Birmingham has seen strong economic growth overall in recent years, with per capita GDP rising from 2% above the UK average in 1995 to 7% above in 2003, the benefits have not been felt evenly throughout the city. Many of the higher skilled jobs generated have gone to commuters from the surrounding area, and the two parliamentary constituencies with the highest unemployment rates in the UK - Ladywood and Sparkbrook and Small Heath - are both in inner-city Birmingham. Growth has also placed significant strain on the city's transport infrastructure, with many major roads and the central New Street railway station
Birmingham New Street Station
Birmingham New Street is the main railway station serving Birmingham, England, located in the city centre. It is an important hub for the British railway system, being served by a number of important long-distance and cross-country lines, including the Birmingham loop of the West Coast Main Line,...
operating considerably over capacity during peak periods.
In 2010, Birmingham was ranked as the 55th-most livable city in the world and the third most livable in the UK, according to the Mercer
Mercer (consulting firm)
Mercer is a human resource and related financial services consulting firm, headquartered in New York City. The firm operates internationally in more than 40 countries, with more than 19,000 employees, and is the world's largest human resource consulting firm....
Index of worldwide standards of living. Birmingham was also one of the founding cities for the Eurocities
Eurocities
EUROCITIES is the network of major European cities.The EUROCITIES network was founded in 1986 by mayors from six large European cities:* Barcelona, Spain* Birmingham, United Kingdom* Frankfurt, Germany* Lyon, France* Milan, Italy* Rotterdam, Netherlands...
group and is also sitting as chair. Birmingham has the second-largest city economy in the UK, and was ranked 72nd in the world in 2008.
Modern economy
This is a chart of trend of regional gross value addedGross value added
Gross Value Added ' is a measure in economics of the value of goods and services produced in an area, industry or sector of an economy...
(GVA) of Birmingham at current basic prices published (pp. 240–253) by Office for National Statistics with figures in millions of British Pounds Sterling.
| Year | Regional Gross Value Added | Agriculture | Industry | Services |
|---|---|---|---|---|
| 1995 | 11,106 | 3 | 3,632 | 7,470 |
| 2000 | 14,579 | 1 | 3,826 | 10,751 |
| 2003 | 16,890 | 2 | 3,859 | 13,029 |
includes hunting and forestry
includes energy and construction
includes financial intermediation services indirectly measured
Components may not sum to totals due to rounding
Today the city's products include: motor vehicles
Automobile
An automobile, autocar, motor car or car is a wheeled motor vehicle used for transporting passengers, which also carries its own engine or motor...
, vehicle components and accessories, weapon
Weapon
A weapon, arm, or armament is a tool or instrument used with the aim of causing damage or harm to living beings or artificial structures or systems...
s, electrical equipment, plastic
Plastic
A plastic material is any of a wide range of synthetic or semi-synthetic organic solids used in the manufacture of industrial products. Plastics are typically polymers of high molecular mass, and may contain other substances to improve performance and/or reduce production costs...
s, machine tool
Machine tool
A machine tool is a machine, typically powered other than by human muscle , used to make manufactured parts in various ways that include cutting or certain other kinds of deformation...
s, chemicals, food, jewellery
Jewellery
Jewellery or jewelry is a form of personal adornment, such as brooches, rings, necklaces, earrings, and bracelets.With some exceptions, such as medical alert bracelets or military dog tags, jewellery normally differs from other items of personal adornment in that it has no other purpose than to...
and glass
Glass
Glass is an amorphous solid material. Glasses are typically brittle and optically transparent.The most familiar type of glass, used for centuries in windows and drinking vessels, is soda-lime glass, composed of about 75% silica plus Na2O, CaO, and several minor additives...
. Birmingham is home to two major car factories, MG Rover in Longbridge
Longbridge
Longbridge is an area of Birmingham, England. For local government purposes it is a ward within the district of Northfield.Since 1905, the area has been dominated by the Longbridge plant, which produced Austin, Nash Metropolitan, Morris, British Leyland, and most recently MG Rover cars...
and Jaguar
Jaguar (car)
Jaguar Cars Ltd, known simply as Jaguar , is a British luxury car manufacturer, headquartered in Whitley, Coventry, England. It is part of the Jaguar Land Rover business, a subsidiary of the Indian company Tata Motors....
in Castle Bromwich
Castle Bromwich
Castle Bromwich is a suburb situated within the northern part of the Metropolitan Borough of Solihull in the English county of West Midlands. It is bordered by the rest of the borough to the south east, North Warwickshire to the east and north east; also Shard End to the south west, Castle Vale,...
(and Land Rover
Land Rover
Land Rover is a British car manufacturer with its headquarters in Gaydon, Warwickshire, United Kingdom which specialises in four-wheel-drive vehicles. It is owned by the Indian company Tata Motors, forming part of their Jaguar Land Rover group...
s are manufactured in neighbouring Solihull
Solihull
Solihull is a town in the West Midlands of England with a population of 94,753. It is a part of the West Midlands conurbation and is located 9 miles southeast of Birmingham city centre...
).
Jewellery Quarter
Jewellery Quarter
The Jewellery Quarter is an area of Birmingham City Centre, England, situated in the south of the Hockley area. It is covered by the Ladywood district. There is a population of around 3,000 people in a area....
is the largest concentration of dedicated jewellers in Europe. One third of the jewellery manufactured in the UK is made within one mile of Birmingham city centre. Until 2003, coin
Coin
A coin is a piece of hard material that is standardized in weight, is produced in large quantities in order to facilitate trade, and primarily can be used as a legal tender token for commerce in the designated country, region, or territory....
s for circulation were manufactured in the Jewellery Quarter at the Birmingham Mint
Birmingham Mint
The Birmingham Mint, a coining mint, originally known as Heaton's Mint or Ralph Heaton & Sons, in Birmingham, England started producing tokens and coins in 1850 as a private enterprise, separate from, but in cooperation with the Royal Mint. Its factory was situated in Icknield Street , on the edge...
, the oldest independent mint in the world, which continues to produce commemorative coin
Commemorative coin
Commemorative coins are coins that were issued to commemorate some particular event or issue. Most world commemorative coins were issued from the 1960s onward, although there are numerous examples of commemorative coins of earlier date. Such coins have a distinct design with reference to the...
s and medal
Medal
A medal, or medallion, is generally a circular object that has been sculpted, molded, cast, struck, stamped, or some way rendered with an insignia, portrait, or other artistic rendering. A medal may be awarded to a person or organization as a form of recognition for athletic, military, scientific,...
s.
From manufacturing to service and research
As with most of the British economy, manufacturing in Birmingham has declined in importance since the 1970s, and it now employs a minority of the workforce. In recent years Birmingham's economy has diversified into service industries, retailingRetailing
Retail consists of the sale of physical goods or merchandise from a fixed location, such as a department store, boutique or kiosk, or by mail, in small or individual lots for direct consumption by the purchaser. Retailing may include subordinated services, such as delivery. Purchasers may be...
and tourism
Tourism
Tourism is travel for recreational, leisure or business purposes. The World Tourism Organization defines tourists as people "traveling to and staying in places outside their usual environment for not more than one consecutive year for leisure, business and other purposes".Tourism has become a...
, which are now the main employers in the city. There are problems when labour skills do not match available job vacancies. Jobs in the service and tourist sectors are estimated to rise by 50,000 over the next ten years.
Retail
Birmingham is home to one of the largest shopping centres in the UK, the Bullring. It is also the busiest in the UK attracting 36.5 million visitors in its first year. Birmingham is the most visited retail destination outside London and the retail sector makes up a large proportion of the cities economy.The city centre currently has four major shopping centres; Bullring, The Mailbox, The Pavilions and The Pallasades, as well as a number of smaller arcades and precincts and four department stores; Selfridges, Debenhams, House of Fraser and Harvey Nichols with John Lewis opening its biggest store outside London in the cities New Street station development in 2014.
The cities designer and high end fashion stores are mostly situated in the up-market Mailbox shopping centre, around the Colmore Row financial district although the Bullring has seen an influx of designer brands such as Hugo Boss, Thomas Sabo, Radley and Armani Exchange.
The city centre also has four markets; The Bullring indoor market, The Birmingham rag market, St Martins outdoor market and the Oasis clothes market.
Tourism
With major facilities such as the International Convention CentreInternational Convention Centre, Birmingham
The International Convention Centre is a major conference venue in central Birmingham, England. The centre includes Symphony Hall and it faces Centenary Square. The building has another entrance leading to the canals of Birmingham. The Convention Quarter area, which includes Brindleyplace, is...
, the National Exhibition Centre
National Exhibition Centre
The National Exhibition Centre is an exhibition centre in Birmingham, England. It is near junction 6 of the M42 motorway, and is adjacent to Birmingham International Airport and Birmingham International railway station. It has 20 interconnected halls, set in grounds of 628 acres making it the...
and the Symphony Hall
Symphony Hall, Birmingham
Symphony Hall is a 2,262 seat concert venue located inside the International Convention Centre in Birmingham, England. It was officially opened by the Queen in June 1991, although had been opened on April 15, 1991. It is home to the City of Birmingham Symphony Orchestra and hosts around 270 events...
the Birmingham area accounts for 42% of the UK conference and exhibition trade. The city's sporting and cultural venues attract large numbers of visitors.
Research at Birmingham
Research at the University of BirminghamUniversity of Birmingham
The University of Birmingham is a British Redbrick university located in the city of Birmingham, England. It received its royal charter in 1900 as a successor to Birmingham Medical School and Mason Science College . Birmingham was the first Redbrick university to gain a charter and thus...
, both theoretical and practical has contributed to the success of the city and the West Midlands region
West Midlands (region)
The West Midlands is an official region of England, covering the western half of the area traditionally known as the Midlands. It contains the second most populous British city, Birmingham, and the larger West Midlands conurbation, which includes the city of Wolverhampton and large towns of Dudley,...
and had worldwide impact for more than a century. Now the University ranks fifth in the country. Scientific research including research into the controversial nano technology at the University of Birmingham, is expanding in the city and will possibly play a part in the city's economic future.
Banking, insurance and law
Law firm
A law firm is a business entity formed by one or more lawyers to engage in the practice of law. The primary service rendered by a law firm is to advise clients about their legal rights and responsibilities, and to represent clients in civil or criminal cases, business transactions, and other...
s, and has a number of insurance
Insurance
In law and economics, insurance is a form of risk management primarily used to hedge against the risk of a contingent, uncertain loss. Insurance is defined as the equitable transfer of the risk of a loss, from one entity to another, in exchange for payment. An insurer is a company selling the...
companies. The city attracts over 40% of the UK's total conference trade. Two of Britain's "big four" banks were founded in Birmingham: Lloyds Bank
Lloyds Bank
Lloyds Bank Plc was a British retail bank which operated in England and Wales from 1765 until its merger into Lloyds TSB in 1995; it remains a registered company but is currently dormant. It expanded during the nineteenth and twentieth centuries and took over a number of smaller banking companies...
(now Lloyds Banking Group
Lloyds Banking Group
Lloyds Banking Group plc is a major British financial institution, formed through the acquisition of HBOS by Lloyds TSB in 2009. As at February 2010, HM Treasury held a 41% shareholding through UK Financial Investments Limited . The Group headquarters is located at 25 Gresham Street in London, with...
) was established in the city in 1765 and The Midland Bank
Midland Bank
Midland Bank Plc was one of the Big Four banking groups in the United Kingdom for most of the 20th century. It is now part of HSBC. The bank was founded as the Birmingham and Midland Bank in Union Street, Birmingham, England in August 1836...
(now HSBC Bank plc
HSBC Bank (Europe)
HSBC Bank plc is one of the four major clearing banks in the United Kingdom and is a wholly owned subsidiary of HSBC Holdings. The business ranges from the traditional High Street roles of personal finance and commercial banking, to private banking, consumer finance as well as corporate and...
) opened in Union Street, in August 1836.
Renewable resources
Birmingham has a large incinerationIncineration
Incineration is a waste treatment process that involves the combustion of organic substances contained in waste materials. Incineration and other high temperature waste treatment systems are described as "thermal treatment". Incineration of waste materials converts the waste into ash, flue gas, and...
plant, the Tyseley Energy from Waste Plant
Tyseley Energy from Waste Plant
The Tyseley Energy from Waste Plant is a large incineration plant in the Tyseley area of Birmingham, England. It burns rubbish and in the process produces electricity for the National Grid....
which produces electricity for the National Grid through the process of burning waste
Waste
Waste is unwanted or useless materials. In biology, waste is any of the many unwanted substances or toxins that are expelled from living organisms, metabolic waste; such as urea, sweat or feces. Litter is waste which has been disposed of improperly...
. It was built in 1996 by Veolia.
Famous brands
Famous brands from the "city of a thousand trades" include Bird's CustardBird's Custard
Bird's Custard is the original version of what is known generically as custard powder. It is a cornflour -based powder which thickens to form a custard-like sauce when mixed with milk and heated to a sufficient temperature...
, Typhoo Tea, the Birmingham Wire Gauge, Brylcreem
Brylcreem
Brylcreem is a brand of hair styling products for men. The first Brylcreem product was a pomade created in 1928 by County Chemicals at the Chemico Works in Bradford Street, Birmingham, England. The pomade is an emulsion of water and mineral oil stabilised with beeswax.Beecham was the longtime...
, Chad Valley
Chad Valley
Chad Valley is a long-established brand of toys in the United Kingdom owned by Home Retail Group. The company has its roots in a printing business established by Anthony Bunn Johnson in Birmingham in the early 19th century...
Toys, BSA
Birmingham Small Arms Company
This article is not about Gamo subsidiary BSA Guns Limited of Armoury Road, Small Heath, Birmingham B11 2PP or BSA Company or its successors....
, Bakelite, Cadburys chocolate, HP Sauce
HP Sauce
HP Sauce is a popular brown sauce originally produced by HP Foods in the UK, now produced by H.J. Heinz in the Netherlands.It is the best-known brand of brown sauce in the United Kingdom and Canada as well as the best selling, with 71% of the UK market....
, Epsc
EPSC
EPSC can stand for:* Elasto-Plastic Self-Consistent Modeling* Escola Politècnica Superior de Castelldefels* European Planetary Science Congress* Excitatory postsynaptic current* The European Process Safety Centre...
and the MG Rover Group
MG Rover Group
MG Rover was the last domestically owned mass-production car manufacturer in the British motor industry. The company was formed when BMW sold the car-making and engine manufacturing assets of the original Rover Group to the Phoenix Consortium in 2000....
; although no Rover cars are set to be produced in the future, with Nanjing Automobile Group
Nanjing Automobile Group
Nanjing Automobile is a state-owned enterprise with a history that dates from 1947, making it the oldest of the Chinese automobile manufacturers, although the comparatively younger First Automobile Works was the first to actually make cars.The group's products have included cars, trucks, and...
to focus on the MG cars.