Manchester Named UK’s Best City for Manufacturing Growth

26 3 minutes read

Listen to this article

A specialist in Yorkshire’s steelworks has pointed out the cities that are leading the charge in Britain’s manufacturing scene, even as the industry faces increasing challenges.

According to the Tadweld UK Manufacturing Index, Manchester has been crowned the top city for manufacturing in 2026.

This fresh study evaluates the UK’s manufacturing hotspots based on various factors, including growth, workforce strength, investment, transport links, property affordability, business support, and the long-term success of manufacturers.

Manchester came out on top with an impressive manufacturing momentum score of 9.1 out of 10. The index highlights that the city’s strong position is due to significant manufacturing investment, excellent transport connections, a highly skilled engineering workforce, vibrant industrial clusters, and a solid history of manufacturers thriving and expanding over time.

Sheffield closely follows with a score of 9.0, while Birmingham and the West Midlands take third place with 8.9, and Liverpool comes in fourth with 8.8, showcasing a fiercely competitive top tier in the index.

UK’s Top Manufacturing Cities for 2026

Manchester clinched the top spot thanks to its blend of robust business growth, industrial investment, logistics infrastructure, and a readily available workforce. The city is reaping the benefits of major regeneration projects, advanced manufacturing investments, and boasts one of the largest engineering talent pools in the UK.

Sheffield, in second place, continues to uphold its reputation as one of Britain’s premier locations for steel, fabrication, and advanced manufacturing, backed by a skilled workforce and impressive manufacturer retention rates.

Birmingham and the West Midlands, securing third place, are propelled by their central location, extensive supply chain networks, and significant contributions to the UK’s manufacturing output.

Liverpool, in fourth place, benefits from strong port connectivity and a rise in manufacturing investments.

The report arrives at a time when manufacturers are grappling with soaring operational costs, inflation, and increased taxes.

Chris Houston, Managing Director at Tadweld, shared his thoughts:

“Manchester’s top ranking perfectly captures what manufacturers need in today’s landscape – access to skilled talent, robust infrastructure, confidence in investment, and a thriving business ecosystem that supports long-term growth.

“What’s particularly interesting from the data is how closely matched the competition is among Manchester, Sheffield, Birmingham, and Liverpool. Each city brings its own unique strengths to the table, whether it’s workforce expertise, logistics, supply chain access, or industrial investment. Yet, all four have shown incredible resilience over the past five years.”

Houston also pointed out that taxation is a crucial factor for manufacturers as they try to balance their contributions to public finances with the need to invest in future growth.

“Taxation is essential for funding public services, and businesses understand that responsibility. However, when you look closely at the figures, the contribution from a single SME can be quite substantial. For instance, a company with 50 employees generating over £1 million annually for HMRC makes a significant fiscal impact.

“The government rightly encourages businesses to invest, innovate, and create jobs. But every rise in business costs chips away at the funds manufacturers can reinvest into apprenticeships, automation, machinery, and productivity enhancements.

“That’s why it’s truly impressive that so many manufacturers across the UK are still managing to grow, invest, and create jobs despite the hurdles they face. Thriving as a manufacturer in 2026 and beyond is no small feat, and many businesses are doing an outstanding job just staying afloat while continuing to serve their customers, employees, and the broader economy.”

Most Challenging UK Locations for Manufacturing

In addition to the index, Tadweld also pinpointed areas where manufacturers face significant challenges.

The five toughest locations for manufacturing are:

London
Cambridge
Oxford
Brighton
Aberdeen

London takes the top spot in the challenge rankings, primarily due to its sky-high industrial property prices and operating costs, which make it tough for large-scale manufacturing to thrive.

Cambridge and Oxford, while globally recognized for their research and innovation, unfortunately fall short when it comes to having enough industrial space to support significant manufacturing growth.

Brighton has seen its economy increasingly lean towards service and creative industries, which has limited the potential for industrial expansion. Meanwhile, Aberdeen is grappling with uncertainty as manufacturers navigate the long-term shift away from traditional oil and gas activities.

Commenting on these findings, Houston noted:

“Cities like Aberdeen show how broader economic shifts can shake manufacturing confidence. Businesses in regions experiencing major industrial changes often deal with heightened uncertainty when it comes to making long-term investment choices.

“Similarly, while cities like London, Oxford, and Cambridge are fantastic hubs for innovation, manufacturers need more than just innovative ideas. They require affordable industrial spaces, strong supply chains, good transport links, and access to skilled workers. Without these essential elements, fostering manufacturing growth becomes a real challenge.”

The Tadweld UK Manufacturing Index pulls together data from various sources, including the Office for National Statistics (ONS), Companies House, the Department for Business and Trade, Make UK, regional combined authorities, commercial property market reports, and manufacturing industry organizations.

This study evaluates the UK’s most competitive manufacturing locations based on factors like growth, resilience, investment, workforce availability, logistics connectivity, and long-term business sustainability.

You can find the complete Tadweld UK Manufacturing Index 2026 available online.