5 Industries Which Fuel the UK Economy
Thinking of launching a startup in the UK? Whether you are interested in setting up your own SME or becoming the next big corporation on the London scene, these 5 industries represent growth areas which show no sign of slowing down.
There is no way to hide it. The UK has an entire eco system all of its own. From the wet, watery, damp, moist forests of the far north to the drizzly, rainy, saturated green meadows of the far south – Britain’s weather has a direct impact upon which industries thrive here and which do not.
Whole Markets Get Rained Off
Take the wedding industry, for example. This multi-billion GBP industry might make even more if we could trust the weather long enough to have outdoor ceremonies without backup plans. The food industry also loses out thanks to the weather. In the UK, the trend is towards all seating being indoors. Why? Nobody wants to get rained on during the Caesar salad.
But this article isn’t about the bad weather, it is about the UK industries which thrive. If you are looking to start a business in Britain, these growth industries represent areas of the market which the UK cannot exist without.
The 5 Industries Fuelling the UK Economy
These are the top five industries to start your new business in if you live in the UK.
1 – Manufacturing
The UK plays home to some of the best inventions of all time. As such, we have the infrastructure for mass-manufacturing of said items unlike any other place in the world. UK manufacturers create products like Marmite, Aston Martins, tumble dryers, pianos, vacuum cleaners – and more. You can view a good list of products made in the UK courtesy of RH Nuttall Ltd.
2 – Agriculture
Fortunately, all that water we get annually is good for one thing and that is growing vegetables. Our agriculture sector in the UK is worth an annual £7.9 billion and rose a full 17% between 2021 and 2022. While the price of commodities rises, so does the profitability of agriculture. The addition and introduction of ethical, sustainable, and carbon-eliminating crops and farming solutions also represent an interesting crossover between big data and farming which is crying out for exploitation.
3 – Utilities – Electricity
Gas and electricity are some of the main products of the UK. Did you know that the energy industry in the UK is worth nearly £100 billion pounds per year? With wind farms the current favourite way to generate electricity, this huge industry has opportunities not just to grow to produce electricity beyond what the UK needs – but to then start selling energy to the rest of the world.
When you are trying to produce renewable energy in the UK you build windfarms and hydroelectric dams, not solar farms!
4 – Construction
The construction industry has been on a boom ever since the pandemic years. When Covid struck, people in Britain were confined to their homes. After long periods of confinement, people started buying bigger homes.
The UK has a slow growing, ageing population (and economy). Couple this with the massive need for more social housing, and you get the picture of a construction industry which is running in deficit. There are more people who need homes than there are homes. As long as the housing market continues on its current trajectory, this should continue.
A warning, though. There are famous economists who caution that the housing market rises and falls on an 18 year cycle. This would put the next scheduled crash in the property market in 2026. Consider yourselves warned. Perhaps think about a mortgage which is far under-budget, rather than over it.
5 – Tourism
Tourism plays a major part of the economy in certain parts of the UK. For example, in the Highlands of Scotland tourism fuels up to 43% of the job market, in remote areas. If you were to start a tourism-based business, testing the local market with a part time alternative could help test the waters. For example, if Airbnb’s to well in your area, then a boutique hotel might be a profitable business idea. Checking into local tourist attractions and even helping to promote them through your website can offer ample opportunities for collaborations.
Don’t Forget Crux Industries
The future is looking ever more digital and, as such, automation and digitalisation are huge right now, on a global scale. If you want an evergreen business idea look towards these industries, along with robotics and computing, for new inspiration. The world is your virtual oyster. Go out and write an app for it.
