News: Fast-growing Rotherham provides green shoots for closing productivity gap
Rotherham has emerged as one of the fastest-growing sub-regional economies for productivity in the UK, according to new research.
New analysis from the Northern Powerhouse Partnership (NPP) has looked at the rise in gross value added (GVA) per hour worked across the North. NPP is a business-led think tank and advocacy group for the North of England.
The Rotherham ITL3 area is the fastest-growing sub-regional economy in the North, with a 63.9% increase in productivity between 2004 and 2023.
Rotherham's GVA per hour worked figure compares to 24.3% growth in Leeds and 37.6% in Manchester. Other high performers were Berkshire West (67.3%) and Brighton & Hove (62.6%). For the same period, Sheffield's increase was 11.6%, Doncaster's was 29.9% and Barnsley was 7.8%. South Yorkshire overall was 12.2%
The figures are based on ONS labour productivity data, analysed by the Northern Powerhouse Partnership.
This dramatic improvement has been driven by the growth of the Advanced Manufacturing Innovation District shared with neighbouring Sheffield in South Yorkshire. It is a regeneration success story that has turned former site of the of the battle of Orgreave into a globally recognised hub for high-value manufacturing. It includes the Advanced Manufacturing Research Centre (AMRC) which has attracted inward investment to the area and has most recently been helping with R&D for Rolls-Royce SMR (Small Modular Reactors) project.
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South Yorkshire’s Mayor, Oliver Coppard, said: “South Yorkshire is at the forefront of a national industrial revival—and Rotherham is leading the charge. In Rotherham we’re seeing industrial strategy done right, delivering exactly what the country needs: higher productivity, stronger innovation and real economic transformation.
“The results speak for themselves. Rotherham’s emergence as a place where productivity is growing almost quicker than anywhere else in the whole of the UK, is a testament to our advanced manufacturing sector and our success building the industries and jobs of the future. Our success won’t just benefit South Yorkshire—it’s a blueprint for how the UK can grow, compete and thrive.
“From the site of the Battle of Orgreave 40 years ago, to a globally recognised hub for innovation today, Rotherham is national example of industrial strategy done brilliantly well.”
Cllr Chris Read, Leader of Rotherham Council added: “This is welcome recognition of the progress we’ve made in Rotherham — one of the UK’s fastest-growing local economies. It’s a testament to the innovation, investment and skills that have driven our transformation over the past two decades. It also demonstrates the importance of strong public-private partnerships and upfront investment. Hidden in these figures are the real stories of large-scale land reclamation in the north of the borough, as well as the world’s first Advanced Manufacturing Park, which was only possible in collaboration with the University of Sheffield.
“Of course, there remains still much to do to create the jobs and opportunities we want to see right across our borough. We’re forging ahead with the largest programme of physical regeneration for many years, improving our town centre as well as localities beyond. That includes progressing plans for a new train station, which would return mainline train services to Rotherham for the first time since the 1980s, alongside new homes and business premises, to ensure we continue to make progress over the next two decades.”
Analysis for the South Yorkshire Mayoral Combined Authority (SYMCA) describes the region's productivity as poor when compared to other city regions, across all sectors relative to both the Great Britain average and other city regions. GVA per job in South Yorkshire is below the national average in all broad sector areas besides Education and Agriculture.
Sectors that produce higher productivity tradable goods and services are seen as the core engine of growth for the UK’s services-dominated globalised economy. South Yorkshire has seen growth in tradable sectors, particularly in the Sheffield / Rotherham corridor: Between 2015 and 2021, South Yorkshire’s tradables jobs grew 3.4%.
Analysis for Rotherham Council shows that although productivity levels have increased over the past five years; this has been at a slower rate than nationally (3% vs. 5%).
With an investment zone based around advanced manufacturing and innovation, improving poor transport connections that limit the size of the labour market, increasing levels of capital investment and addressing skills gaps with targeted skills interventions focused on the growth industries are set to feature in new economic growth plans for the region.
Images: Harworth Group
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New analysis from the Northern Powerhouse Partnership (NPP) has looked at the rise in gross value added (GVA) per hour worked across the North. NPP is a business-led think tank and advocacy group for the North of England.
The Rotherham ITL3 area is the fastest-growing sub-regional economy in the North, with a 63.9% increase in productivity between 2004 and 2023.
Rotherham's GVA per hour worked figure compares to 24.3% growth in Leeds and 37.6% in Manchester. Other high performers were Berkshire West (67.3%) and Brighton & Hove (62.6%). For the same period, Sheffield's increase was 11.6%, Doncaster's was 29.9% and Barnsley was 7.8%. South Yorkshire overall was 12.2%
The figures are based on ONS labour productivity data, analysed by the Northern Powerhouse Partnership.
This dramatic improvement has been driven by the growth of the Advanced Manufacturing Innovation District shared with neighbouring Sheffield in South Yorkshire. It is a regeneration success story that has turned former site of the of the battle of Orgreave into a globally recognised hub for high-value manufacturing. It includes the Advanced Manufacturing Research Centre (AMRC) which has attracted inward investment to the area and has most recently been helping with R&D for Rolls-Royce SMR (Small Modular Reactors) project.
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South Yorkshire’s Mayor, Oliver Coppard, said: “South Yorkshire is at the forefront of a national industrial revival—and Rotherham is leading the charge. In Rotherham we’re seeing industrial strategy done right, delivering exactly what the country needs: higher productivity, stronger innovation and real economic transformation.
“The results speak for themselves. Rotherham’s emergence as a place where productivity is growing almost quicker than anywhere else in the whole of the UK, is a testament to our advanced manufacturing sector and our success building the industries and jobs of the future. Our success won’t just benefit South Yorkshire—it’s a blueprint for how the UK can grow, compete and thrive.
“From the site of the Battle of Orgreave 40 years ago, to a globally recognised hub for innovation today, Rotherham is national example of industrial strategy done brilliantly well.”
Cllr Chris Read, Leader of Rotherham Council added: “This is welcome recognition of the progress we’ve made in Rotherham — one of the UK’s fastest-growing local economies. It’s a testament to the innovation, investment and skills that have driven our transformation over the past two decades. It also demonstrates the importance of strong public-private partnerships and upfront investment. Hidden in these figures are the real stories of large-scale land reclamation in the north of the borough, as well as the world’s first Advanced Manufacturing Park, which was only possible in collaboration with the University of Sheffield.
“Of course, there remains still much to do to create the jobs and opportunities we want to see right across our borough. We’re forging ahead with the largest programme of physical regeneration for many years, improving our town centre as well as localities beyond. That includes progressing plans for a new train station, which would return mainline train services to Rotherham for the first time since the 1980s, alongside new homes and business premises, to ensure we continue to make progress over the next two decades.”
Analysis for the South Yorkshire Mayoral Combined Authority (SYMCA) describes the region's productivity as poor when compared to other city regions, across all sectors relative to both the Great Britain average and other city regions. GVA per job in South Yorkshire is below the national average in all broad sector areas besides Education and Agriculture.
Sectors that produce higher productivity tradable goods and services are seen as the core engine of growth for the UK’s services-dominated globalised economy. South Yorkshire has seen growth in tradable sectors, particularly in the Sheffield / Rotherham corridor: Between 2015 and 2021, South Yorkshire’s tradables jobs grew 3.4%.
Analysis for Rotherham Council shows that although productivity levels have increased over the past five years; this has been at a slower rate than nationally (3% vs. 5%).
With an investment zone based around advanced manufacturing and innovation, improving poor transport connections that limit the size of the labour market, increasing levels of capital investment and addressing skills gaps with targeted skills interventions focused on the growth industries are set to feature in new economic growth plans for the region.
Images: Harworth Group
