A rise in employment levels, an increase in large company numbers and a burgeoning construction sector are driving a bright future for businesses in North Lanarkshire.
In a year of continued economic challenge nationally, there’s cause for economic optimism in North Lanarkshire following new figures published by Businesses In Scotland (Scottish Government, November 2023). These show employment levels are up by 0.9% and an additional 860 jobs have been created.
North Lanarkshire continues to hold a strong position in retaining and attracting large companies to the area. In 2023:
- 6.2% of businesses employ 250+ people
- 4% employ 50-249 people
- 89.8% are small businesses, employing up to 49 people.
An additional five large companies were recorded in North Lanarkshire in 2002/23.
The biggest shift in the economy comes from changes in industry sectors operating in the area. For the first time since these Scottish Government statistics were produced, construction has overtaken wholesale, retail and repairs as the largest sector in North Lanarkshire in terms of business numbers (currently 1,540).
In 2023, construction now represents 18.5% of all North Lanarkshire-based businesses, closely followed by wholesale, retail and repairs at 18.3% of businesses (1,520).
The number of construction businesses increased by 60 (4.1%) between 2022 and 2023. These 1,540 businesses employ 12,480 people and have a combined turnover of £2.4 billion. Capitalising on this growth, the council is working on expanding pathways into employment in the construction industry through an ‘academy’ model. This will open up opportunities at a range of levels with employers including apprenticeships, placements and partnerships.
The wholesale, retail and repairs sector remains the top employment sector in North Lanarkshire, with 21,490 people employed. This accounts for more than a fifth (22%) of private sector employment within the area.
This sector is also top for business turnover performance; the 1,520 businesses recorded a combined turnover of more than £4.5 billion in 2023.
While the overall number of businesses in North Lanarkshire has dropped slightly by 1.1% to 8,325 and company turnover by 1.5% to £15m between 2022-23, these local figures are largely in line with the national picture. Across Scotland there was also a reduction of 1% in business numbers and 5.4% in company turnover.
“These latest figures show there is lot to be positive about here in North Lanarkshire,” said Councillor Alex McVey, Convener of the Enterprise and Fair Work Committee.
“While we’ve seen a small decrease in business numbers in the last year, over the last decade the number of businesses in the area has increased by 1,820 (18.2%). This is significantly higher than the Scottish figure of 8.3% and reflects North Lanarkshire’s prime location in central Scotland with excellent industrial and warehousing provision, unrivalled motorway links and access to a skilled and productive workforce.”
Looking ahead to 2024, the council will continue to strengthen the support available to new and growing business, including:
- continued review of business support services to ensure that SMEs have access to support and services that meet their needs
- continued emphasis on sector-focused support initiatives, ensuring businesses can access meaningful and impactful advice and support
- ongoing work to attract and retain good quality businesses to North Lanarkshire, accelerating investment, creating skilled, high value jobs and improved prospects for young people, and
- ensuring new UK Shared Prosperity Fund investment of £2.5million up to 31 March 2025 supports innovative business support initiatives, enabling a tangible return on that investment to the local economy.