> Tor Svensson, Chairman CFI.co
Vibrant Manchester Outshining London as the Best Business City Manchester’s ability to adapt and reinvent itself has replaced an industrial past with digital, creative and service industries. Now, regeneration and redevelopment have brought new vibrancy.
D
uring the Industrial Revolution, Manchester became the first industrialised city in the world. After the Second World War, fortunes changed. Between 1961 and 1983, Manchester lost 150,000 jobs in manufacturing. The spark has returned to the city centre which has been the subject of massive investment. Industry and trade are still front-runners, but “softer”, knowledge-based sectors also thrive: fintech, media, retail and wholesale, life sciences, leisure, education, and health. MANCHESTER EDGES-OUT LONDON AS THE BEST BUSINESS CITY IN EUROPE Manchester has seen the lion’s share of foreign and domestic investment, and research shows that it outshines London as the best European city to invest in for innovation-centred growth businesses (see Table 1). Manchester has been dubbed “The Second City of the UK”, with a metropolitan area population of 3.3 million (versus London’s commuter belt inhabitants approaching 15 million).
CFI.co Columnist
The relative value of smart human capital and cost of living are important factors in Manchester’s favour, along with health, safety and quality of life. Also beneficial are the city’s impressive transport systems, infrastructure and connectivity, within the region and internationally. Manchester’s growing tourism industry attracts more international and business visitors than all English cities other than London. Major companies and corporations have made a home there, including Google, the BBC, The Co-op, and Kellogg's. Amazon is planning to expand its staffing to 6,000 in the northwest. Doug Gurr, Amazon's UK country manager, says Manchester offers “an incredible talent pool, a thriving hub of fast-growing UK tech startups and is a centre of academic and intellectual excellence”. The city is also an education hotspot, home to the University of Manchester, internationally 32
Manchester: Media City UK
BEST INVESTMENT CITY FOR
BEST INVESTMENT CITY FOR
INNOVATION-CENTRED
INNOVATION-CENTRED
GROWTH BUSINESSES IN EUROPE
GROWTH BUSINESSES (GLOBAL)
1. Manchester (97)
1. New York (100)
2. London (96)
2. Dubai (99)
3. Amsterdam (93)
3. Singapore (98)
4. Dublin (92)
4. Manchester (97)
5. Copenhagen (90)
5. London (96)
6. Dusseldorf (88)
6. Amsterdam (93)
7. Barcelona (86)
7. Dublin (92)
8. Zurich (83)
8. San Francisco (91)
9. Paris (80)
9. Copenhagen (90)
10. Brussels (79)
10. Mexico City (89)
Table 1. Source: CFI.co
Table 2. Source: CFI.co
Research Methodology The study was conducted in March 2020 during the Coronavirus outbreak, which significantly affected the results.
The perspective is that of innovation-centred MSMEs across industry sectors, comprising start-ups, relocation and business expansion for domestic and foreign investors as well as joint ventures. The results are influenced by early development stage AI-powered proprietary algorithms to handle the volume of data from publicly available information, statistics, surveys and research.
The city score is based on parameters from lagging indicators and forward-looking factors and forecasts – which can be speculative and uncertain – relating to aspects including business climate, FDI friendliness, tax environment, connectivity, infrastructure, innovation ecosystems, reputation, job creation, human capital, lifestyle quality, safety, and healthcare systems.
CFI.co | Capital Finance International
The results were partly established on discretionary scoring. The top-scoring city is set on par, and those following were standardised on a relative basis. Further background information on the tallying and ranking methodology is available from CFI.co upon request.