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July 2023

Strengths, challenges
and opportunities

Greater Manchester is widely regarded as the leading tech hub outside of London. Its digital ecosystem is valued at £5.4bn, according to government figures, and the city of Manchester is the jewel in the metropolitan county. In 2022, startups based in the city collectively raised a record £532m from investors, according to Dealroom.

The 658 active high-growth companies based in Manchester employ a workforce of over 40,000 people, according to Beauhurst, with a healthy pipeline of talent flowing from the region’s leading universities. Furthermore, Manchester has become one of the UK’s epicentres for tech unicorns, producing six companies valued at more than $1bn. But what are the factors underpinning its success, and what are the barriers for growth?

Professor Janice Allan

Dean of Salford Business School

“Greater Manchester is the fastest-growing tech hub in Europe and its strengths as a digital and tech city region are many and varied. With a profound legacy of innovation dating back to its pivotal role in the industrial revolution, we are now home to a vibrant and eclectic tech ecosystem. GM’s unique blend of globally competitive talent – nurtured by our outstanding universities and FE colleges – as well as our thriving tech hub and strong spirit of collaboration, set us apart.”

Strengths

Q2. What, if anything, do you consider to be the biggest strengths) of Greater Manchester as a region to start and grow a technology business in? (Tick up to 3)

Support networks - accelerators, incubators, business programmes, skills bootcamps
Collaboration between businesses and networks across the Greater Manchester region
Digital infrastructure and connectivity
Diversity and inclusivity within workforce
Transport and infrastructure
Access to talent
The wider Northern Powerhouse initiative
Access to funding
Support networks and collaboration
Digital connectivity

Professor Janice Allan

Dean of Salford Business School

“With our robust digital infrastructure, from the thriving MediaCityUK to burgeoning startups and some of the country’s most valuable unicorns, Greater Manchester offers a fertile environment that sparks continual tech advancement and fuels innovation.”

Challenges

Q3. What, if anything, do you consider to be the biggest weakness(es) of Greater Manchester as a region to start and grow a technology business in? (Tick up to 3)

Access to funding
Support from local government
Access to talent
Transport and infrastructure
The wider Northern Powerhouse initiative
Diversity and inclusivity within workforce
N/A -I do not consider anything to be the biggest weakness(es) of this
Support networks - accelerators, Incubators, business programmes, skills bootcamps
Access to funding
Access to talent

Kai Ojo

CEO, Planisware UK&I

“Like other regions, there is a limited pool of talent to maintain the accelerated speed at which the industry is growing. Manchester thankfully has a backbone of well-established educational institutions to join industry expectation up with. A technology company requires multiple skill sets and learning the complexities can usually only come from hands on experience. For our tech industry to thrive we must allow equal opportunities and transparency to where each educational pathway leads, this way individuals will gain proper support and progress at pace.”

Opportunities

Q4. Which of these measures, if any, do you think would have biggest impact in driving growth for Greater Manchester tech ecosystem? (Tick up to 3)

Better connections between Greater Manchester's technology businesses and university STEM degrees
Greater investment into digital skills training
More careers guidance to educate young people on potentially pursuing a career in tech
More growth programmes and entrepreneurs' support networks
Creating more specialist commercial properties / workspaces geared towards technology businesses
More events and networks to foster collaboration across the Greater Manchester region
Greater investment into digital infrastructure, such as 5G and superfast broadband
Greater investment into transport infrastructure, within the region and to other regions
Plugging the digital skills gap
Improving transport infrastructure

Develop & diversify: new thinking to tackle tech talent challenges

Andy Wadsworth

Andy Wadsworth
Associate Director, Tech Division, at Morson Group

Andy Wadsworth

Andy Wadsworth
Associate Director, Tech Division, at Morson Group

The mainstream media is fond of headlines about the unpredictability of future skills requirements, stating that anywhere between 65% and 85% of today’s children’s jobs do not yet exist. Who knows where those finger-in-the-air statements originate, but one thing’s certain: demand for an ever-evolving range of tech skills not only creates a constantly changing recruitment landscape, it also creates challenges across both tech and conventional sectors, as competition for talent increases exponentially.

At Morson Group, we believe responding to those challenges requires more than fishing in the same limited ponds for the right people and skills. There is an acute imperative to identify, develop and deploy talent from a much wider demographic, and engage with employers on a strategic level to help them plan their talent pipeline for current and future needs.

As an international recruitment company, the fierce demand for tech talent and the fast-paced evolution of the skills those people need are trends that we’re seeing played out across the UK and around the world. But the tech talent supply/demand dynamic in the Greater Manchester city region is specific and severe.

With a £5bn digital ecosystem, Greater Manchester is the UK’s top digital tech city outside London, with a huge variety of business models and tech disciplines across the city region’s 10,000-plus digital and tech businesses. A recent study – appropriately enough conducted by AI – found that Manchester is recognised as a leading location for tech businesses in fields as diverse as AI, data, cybersecurity, ecommerce, IoT, and fintech.

It’s a fantastic story of success and transformation. The epicentre of the UK’s industrial revolution is now a powerful force in industry 4.0, but success comes with challenges. Tech employers are vulnerable to skills shortages, remuneration inflation, and rapidly changing talent needs as both technology and the ways in which we utilise it expand exponentially.

Addressing a challenge on this scale requires robust training and HR strategies that consider talent pipelines and current recruitment goals. As recruiters, we not only need to think creatively about how we support our clients, but we also must engage with potential candidates and develop end-to-end solutions that will deliver both skills for employers and opportunities for people from all demographics.

Plugging skills gaps and creating career opportunities
New thinking for a new era of talent

Is your business is trying to define the skills you need and struggling to find them? The Morson Pathfinders Academy could be the solution. Get in touch with the Morson team to find out how this unique initiative could bring new tech talent into your business

on 0161 707 1516, or email cat.mawdsley@morson.com

Click below to find out how Morson Pathfinder’s Academy is providing businesses with a solution to the digital skills crisis.

Andy Wadsworth

Andy Wadsworth

Associate Director, Tech Division, at Morson Group