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Read on for analysis, opinion and insights on Carlisle’s economy – including an overview of key industries, plus latest figures on business growth, employment data and more.
Carlisle’s economy – what are the main business sectors driving the city forward?
Carlisle is at the heart of Cumbria’s diverse economy with its significant retail, leisure and tourism sector a beating heart of the city.
Areas such as construction, transport, manufacturing, food and the digital sector are amongst the areas driving economic activity, as well as a range of business services, including a high number of legal firms.
Other key economic drivers include the presence of the University of Cumbria having its main operations in Carlisle, as well as historically the city being a major administrative base for the county. Carlisle also has the status of being the only city in Cumbria, and as the capital of one of England’s biggest rural counties, it provides a centre for a much wider rural area. Not surprisingly a wide range of business activity linked to agriculture and forestry also form part of the mix.
Carlisle also benefits from its unique location as a historical border city and gateway between England and Scotland.
It is also a strategic base for the North of England, adjacent to the M6 and with strong inter-city rail links reaching the rest of Britain. Carlisle also provides convenient east west road links connecting the north and west coasts of England.
Need expert insight into the current state of play of Carlisle’s business community?
Joe Sanders, of Cumbria Chamber of Commerce, provides his take on Carlisle’s economic outlook as we reach an important stage in the city’s evolution.
As summer gets underway, understandably this is a key time for businesses in Carlisle to step up a gear, including the city’s retail, leisure and tourism sectors. But alongside this seasonal swing in activity, a host of development and regeneration projects are also underway.
Joe, marketing manager at Cumbria Chamber of Commerce, says that with so much energy in the Carlisle community right now and various strategic partners coming together from the public and private sectors to facilitate projects, the prospects for Carlisle businesses, despite the challenges of recent years, is very optimistic.
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“Carlisle has long played an important role as the main shopping destination for Northern Cumbria and Southern Scotland,” says Joe.
“However, much like many other high streets throughout the country, the growth of online retail has led to the closure of several important and well-loved shops, most notably Debenhams.
“However, in recent months, we’ve seen some really exciting developments in Carlisle’s retail and hospitality sectors, with business activity picking up around the town centre.
“For example, the new Bordo Lounge on English Street adds a great deal of vibrancy to the market square; West Walls Brewing Co and Taproom is due for launch this summer; the new STACK leisure development proposed for Lowther Street and turning vacant retail spaces into residential property.
“There are also regeneration projects underway on Devonshire Street and at Carlisle Station, and the University of Cumbria’s new Citadels campus. With everything going on, it’s a great time to be in business in Carlisle.
“In terms of the wider business community, one of the ways we can gauge its vitality is through attendance at our events, which have been very busy indeed.
“Recently, our Directors Forum event on AI & Automation, a networking event at Carlisle Races and our regular Business Bites networking at the Halston, have brought many of our members and other business people together to share ideas and make new connections.”
Who are some of the major players in the Carlisle business world?
Carlisle represents a significant regional economy not just for Cumbria, but for the North of England.
World-leading companies operate in the Carlisle area, including Pirelli Tyres; Dalston-based Nestle; Pladis – the global brand behind McVities; Cavaghan & Gray, part of 2 Sisters Food Group. Manufacturing giants in Carlisle include Crown Packaging.
As well as food and manufacturing, the retail economy is also a major sector and employer, with recent figures showing 11.8 per cent of Carlisle’s adult population are employed in this area.
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How is Carlisle’s economy coping following the UK’s economic challenges?
Signs are emerging that Carlisle is recovering from a very challenging period affecting the UK in recent years – including the lingering impact of Covid on many businesses, the transition to Brexit and a period of sustained inflationary pressures, as well as a dramatic spike in energy prices.
There are signs of optimism, however, in terms of economic growth for Carlisle following the recessionary quarter of late 2023.
This appears reflected in recent data findings from the Labour Market Briefing, published in March.
These include a month-on-month increase in job postings, Carlisle being the area mentioned most frequently in postings in Cumbria for quarter one, with 3,117 postings – Barrow was second with 1,074.
Carlisle also saw the largest number of Companies House incorporations for the county – latest figures available from February revealed 65 incorporations for the city.
Further evidence of shoots of recovery includes data from the Red Flag Alert (RFA) database system.
The RFA rates businesses active at Companies House, from stable, little risk, down to red flags such as a highest risk of failure.
Again this data shows hopeful signs for Carlisle’s economy. Compared to 4.9 per cent nationally, Carlisle is on 3.5 per cent respectively.
While only 22.1 per cent of businesses in Carlisle listed on the system are designated as likely or very likely to experience growth, this is statistically quite high for this criteria, and compares favourably to 18.6 per cent for the UK, so again whilst there continues to be challenges for many businesses, there are signs the local Carlisle economy is quite resilient and there is definitely optimism emerging.
What types of jobs do people do in Carlisle?
Carlisle has a population of 88,200 according to latest Census figures, and forms the largest urban population for the county of Cumbria.
The figures below provide a breakdown of occupations across the city district.
Compared to national figures for England, the city hosts a larger number of manufacturing jobs, skilled trades, customer service and sales workers, and also elementary occupations – the latter category comprises jobs such as agricultural workers, labourers and food preparation workers.
Occupations in Carlisle
Occupation | Carlisle | England | |
---|---|---|---|
1 | Managers, directors and senior officials | 9.7% | 12.9% |
2 | Professional occupations | 14.5% | 20.3% |
3 | Associate professional and technical occupations | 10.1% | 13.3% |
4 | Administrative and secretarial occupations | 9.1% | 9.3% |
5 | Skilled trades occupations | 11.8% | 10.2% |
6 | Caring, leisure and other service occupations | 10.3% | 9.3% |
7 | Sales and customer service occupations | 9.1% | 7.5% |
8 | Process, plant and machine operatives | 12.7% | 6.9% |
9 | Elementary occupations | 12.8% | 10.5% |
What needs to happen now?
The encouraging labour market figures for Carlisle also emerge as a new forecast from the Confederation of British Industry has upgraded its forecast for GDP growth for the country from 1.6 per cent to 1.9 per cent next year, which is closer to pre-pandemic levels.
Meanwhile, with inflation subsiding, interest rate reductions are expected in the near to medium future.
This should provide a boost to spending and support further economic recovery. It’s a delicate balance but if managed carefully, this could lead to not only increased consumer spending but increased and more impactful investment in business led regeneration projects.
Also the Carlisle community can support its local economy by supporting Carlisle area businesses: shopping local, supporting the high street, supporting local community events, concerts and Initiatives, supporting local business services, and supporting innovation where possible in their own areas of business activity in order to boost productivity. Remember, when a local economy thrives, it can provide wider benefits to the entire community.