Nestled in the heart of the UK, Lancashire boasts a vibrant business landscape with deep historical roots. 55,000 businesses already call Lancashire home, and the size of its economy is in excess of £33 billion. It’s a hub for advanced manufacturing, aerospace, and energy — to name a few. Amidst the ever-changing global financial scene, Lancashire has continually displayed resilience and adaptability.
There are many driving forces shaping the global economy. The digital transformation wave has been sweeping across industries for some time now, redefining how business is conducted. Equally impactful is the trend towards sustainability — as seen with initiatives like ESG — which is changing things dramatically not only in the energy sector but also areas like finance and banking.
Another consideration is in the realm of geopolitics. As these types of relationships evolve and change, so too do the currencies countries use for trade. A good illustration of this is in the DXY — index measuring the strength of the US dollar that is often seen as a barometer of economic health. A strong dollar can attract global investment flows into areas like Lancashire, and if changing geopolitical alliances lead to a weakening of the dollar, this could impact its ability to attract investment from abroad.
The last trend to think about is the COVID-19 pandemic. Although the world is now thankfully on the other side of it, some of the global economic trends we saw remain. The strain placed on supply chains saw businesses need to be adaptable and change processes quickly, and many of those temporary measures have now become permanent ways of doing business.
Lancashire is one of the leading centres for advanced manufacturing and engineering in the UK, and as global trends lean towards innovation, this industry should continue to thrive. The region also has a strong aerospace and defence industry, with global leader BAE Systems being Lancashire’s largest employer in the private sector. BAE has two major sites that were designated as local enterprise zones in 2011, and they will continue to be an important player in the economy.
