Economy of Birmingham

The economy of Birmingham, England, is a key place for manufacturing and engineering. Many people work in these industries, and they help bring a lot of money to the country.

In 2013, the West Midlands region exported goods worth a lot of money.

Most people in Birmingham work in the service sector. This was true in 2012.

Birmingham is a big place for jobs in public administration, education and health. It is also a large centre for financial and other business services, after Leeds and before London. The wider metropolitan economy is very large, with a GDP of $121.1 billion (in 2014).

Some big companies are based in Birmingham, like IMI plc, Mobico Group, Patisserie Valerie, Claire's, and Mitchells & Butlers. In the wider area, you can find Gymshark and Severn Trent Water. Birmingham has big places like the National Exhibition Centre and International Convention Centre, which bring many visitors for conferences and exhibitions.

Economic indices

Birmingham is an important city in the UK for business and quality of life. In 2013, it ranked 10th in the UK for quality of life among the largest cities. In 2010, it was named the 52nd-most liveable city in the world.

A survey of European businesses in 2010 placed Birmingham 18th in Europe and 3rd in the UK for being a great place to start a business. It also ranked well for access to markets, skilled workers, and office space. The city is known for its value for money in office costs and has good transport links both within the city and to other places.

GVA

In 2013, Birmingham's GVA was £24.1bn. This was 21.8% of the GVA of the West Midlands (region), and 1.6% of the GVA of the UK. Only London and Greater Manchester South had higher GVA among city areas.

The growth in GVA in 2013 was strong, with an increase of 2.2% from 2011 to 2012 for Birmingham.

Productivity

GVA per employee in Birmingham was estimated to be £42,800 in 2012. This placed it 6th among the major cities in the UK and 3rd among the Core Cities, after London, Edinburgh, and Leeds.

²excluding Birmingham, included Bristol, Leeds, Liverpool, Manchester, Newcastle, Nottingham and Sheffield

GVA by sector

GDP

Greater Manchester's GDP per capita was €27,500 in 2012, a little more than the West Midlands at €26,600. This is much less than Dublin at €57,200 or London at €54,200.

Greater Manchester's total GDP was €74.398 bn, and the West Midlands was €73.538 bn. These are smaller than Greater Dublin's €85.700 bn and much smaller than Greater London's €450.379 bn.

Employment, welfare and education

The population of Birmingham was about 1,085,400 in 2012. It was growing at a rate of 1.04%. This growth rate was the fourth highest among major cities, after Nottingham (1.59%), Manchester (1.56%) and Newcastle (1.2%).

¹Median earnings in pounds for employees living in Birmingham

²Median earnings in pounds for employees working in Birmingham.

Business activity

When the UK economy got better after a slow time from 2008 to 2010, Birmingham did not grow as fast as other big cities. In those cities, the number of new businesses went up by 3.6%, but in Birmingham it only went up by 1.6%. Still, many new businesses started in Birmingham, even though some businesses also closed.

³excluding Birmingham, included Bristol, Leeds, Liverpool, Manchester, Newcastle, Nottingham and Sheffield

Jewellery Quarter

The Jewellery Quarter is the biggest place in Europe for making jewellery. A lot of jewellery made in the UK comes from just one mile around Birmingham's city centre. Until 2003, coins used in shops were made here at the Birmingham Mint. The mint still makes special commemorative coins and medals.

From manufacturing to service and research

Like most of Britain, Birmingham has changed a lot since the 1970s. It used to make many things, but now there are more jobs in services, shopping, learning, and tourism.

Birmingham still makes some things, such as motor vehicles, car parts, electrical tools, plastics, machines, chemicals, food, jewellery, and glass. The city has big car factories like MG Rover in Longbridge and Jaguar in Castle Bromwich, with Land Rovers made nearby in Solihull. Smaller factories also help the city.

service industries, retailing, knowledge, tourism

Retail

Birmingham is a very popular place for shopping. It has one of the biggest shopping centers in the UK and Europe, called the Bullring.

The city has three main shopping centers: the Bullring, Mailbox, and Grand Central. There are also smaller shopping areas and four big department stores. Designer shops are mostly found in the Mailbox area and around Colmore Row. The Bullring now has many famous brands.

Tourism

Birmingham is a popular place for visitors. It has big places like the International Convention Centre, the National Exhibition Centre, and Symphony Hall. These help make Birmingham the 4th most visited city in the UK. The city’s sports and cultural spots, such as the library of Birmingham, bring in many tourists.

Research

Birmingham has five universities: Aston University, University of Birmingham, Birmingham City University, University College Birmingham and Newman University. It also has major campuses of the University of Law, BPP University, and the Open University's West Midlands regional base.

The Birmingham Business School, founded in 1902, is the oldest graduate-level business school in the United Kingdom. Other top business schools include Aston Business School and Birmingham City Business School. The Royal Birmingham Conservatoire offers training in music and acting.

Birmingham is also a place for religious education, with schools for different faiths. The city has large colleges that offer further education, including special programs for students with visual impairments or disabilities.

Research at the University of Birmingham has made an impact around the world for over a century. The university is ranked as high as 10th in the UK and continues to explore new areas of science.

Transport

Birmingham has many ways for people to get around. Many people use public transport, like trains and buses, to travel in the city. The main train station is Birmingham New Street, the busiest station in the UK outside of London. It helps people travel to places like London, Glasgow, and Edinburgh. Other stations, such as Birmingham Moor Street and Birmingham Snow Hill, are also important.

Birmingham used to have trams, but they stopped running many years ago. Trams came back in 1999 with the West Midlands Metro, and now they run in the city center again. There are also many bus routes, and you can rent bikes to explore central Birmingham.

The city has many canals, more than Venice. Today, these canals are mainly used for fun and tourism. Places like Brindleyplace have turned the canals into popular spots for visitors.

Banking, insurance and law

In 2011, Birmingham's banking, finance, and insurance services were worth £2.46 billion. This made it the 4th largest in the United Kingdom after London, Edinburgh, and Manchester. Over 111,500 people worked in these jobs. This was 23% of all jobs in the city.

Birmingham has important law centers. It also has many property companies and one of Europe’s biggest insurance markets. Two big UK companies, PwC and Ernst & Young, have offices in the city center. The city gets more than 40% of the UK’s conference business. Two of the UK’s biggest banks started in Birmingham: Lloyds Bank in 1765 and The Midland Bank in 1836.

Renewable resources

Birmingham has a big plant called the Tyseley Energy from Waste Plant. This plant makes electricity for the National Grid by burning waste. The plant was built in 1996 by Veolia.

Famous brands

Birmingham is called the "city of a thousand trades" because it is known for many famous brands. These include Bird's Custard, Typhoo Tea, the Birmingham Wire Gauge, Brylcreem, Chad Valley Toys, BSA, Bakelite, Cadburys chocolate, HP Sauce, the Elite Performance Sports Company (Epic), and the MG Rover Group. Even though Rover cars are no longer made, the focus is now on making MG cars with help from the Nanjing Automobile Group.