Economy

The wider Tees Valley economic region contributed £79billion to the UK economy in 2020. Tees Valley itself is home to a rapidly expanding Service sector, currently worth £10.7billion, a Health and Social Care sector worth around £1.4billion, an established Advanced Manufacturing sector worth £690million, a globally competitive Chemical industry worth £455million and a growing Digital sector worth £425million.

Whilst 2020 saw the Tees Valley economy contract in line with other parts of the country, prior to the pandemic the area had one of the fastest growing economies of any part of the country.

Between 2017 and 2019 the Tees Valley lay in the top quintile of English LEP areas for economic growth and was the second fastest growing LEP area in the North of England, a little behind Hull & East Yorkshire but ahead of both Greater Manchester and Leeds City Region for example.

Tees Valley Gross Domestic Product (GDP) grew by £747million or 4.8% in real terms between 2017 and 2019, well above the national increase of 3.4%. Notable high-growth sectors in terms of Gross Value Added (GVA) over this two-year period include Information and Communication, up 42%, Civil Engineering, up 16% and Manufacturing, up 14%. Nationally these sectors grew by 22%, 4% and 7% respectively, showing the strength and capacity for growth in the area.

Bouncing back after the pandemic, the Tees Valley is an area that continues to see economic growth, and ongoing investments in key and emerging sectors will see that trend continue.

The Strategic Economic Plan for Tees Valley sets out our goals between 2016 and 2026. It is our local Industrial Strategy that includes plans to diversify and accelerate growth in the local economy to benefit businesses and residents.

Our ambition is to create 25,000 additional jobs and add an additional £2.8billion into the Tees Valley economy by 2026. We want to see Tees Valley as the demonstration region for the circular economy in England as we look to become a high-value, low-carbon, diverse and inclusive economy.

We have big ambitions and by 2040 we will see Tees Valley contribute 10% of the total GVA growth target for the Northern Powerhouse, with only 4% of the population.

A highly productive region: At £86,000 GVA per employee in the production sector, Tees Valley is well above the Local Enterprise Partnership average of £76,800.
A highly innovative region: Tees Valley has the fourth highest proportion of businesses undertaking product or service innovation in the UK.
An export intensive region: Tees Valley is part of the only continuous net exporting region of goods in the UK with additional opportunities to pursue.

A region with growth potential to be unlocked: Tees Valley is third place in the UK for business expansion of existing companies and business start-up rates continue to outperform the UK average.

It is clear that the economic situation in Tees Valley is healthy, with major investments announced regularly and plenty more in the pipeline. The time is now to be a part of one of the most exciting, forward-thinking areas in the country.

Tees Valley Combined Authority is driving forward our ambitions, underpinned by a Strategic Economic Plan, Ten-Year Investment Plan and a number of strategies in our key sectors.