Shropshire's booming economy outpaces UK average

The county's economy is growing faster than that of the wider West Midlands – and significantly above the national average.

Today's Royal Bank of Scotland's Regional Growth Tracker shows Shropshire's economy grew by 3.1 per cent in the first three months of the year, and Telford & Wrekin's by 2.5 per cent.

The figures, released on Budget Day, show that Shropshire is performing better than most of the region, which achieved year-on-year growth of only 2.2 per cent.

It also means that both local authorities in Shropshire are achieving quicker growth than Wolverhampton, which achieved growth of 2.1 per cent, and Second City Birmingham at 1.9 per cent.

Another Midlands powerhouse Coventry showed just 0.9 per cent growth and Dudley floundered at 0.4 per cent.

Shropshire and Telford & Wrekin are also among only a few Midlands areas beating the national average for economic growth, which stands at 2.4 per cent.

The figure has been driven by traditional manufacturing, including the growth of Aga Rangemaster which has spent more than £4 million on its Coalbrookdale foundry in recent months and in April cut the ribbon on a new £1.8 million sand plant at the site.

Tourism is also up, with attractions seeing rising numbers and new leisure developments like Southwater boosting the economy. Agriculture is also doing well, helping the region's rural economy.

Powys showed less strength in its own economic growth, with the county's economy just two per cent larger than it was a year ago – below the 2.5 per cent growth rate achieved by Wales as a whole.

Herefordshire's was the fastest-growing economy in the region in the first quarter, expanding at a rate of 3.7 per cent.

"The West Midlands has seen strong levels of inward investment and a healthy number of start-ups, which is positive news for the region's economy," said RBS's regional director Andrew Mitchell.

He added that agriculture had helped boost the rural economies such as Shropshire's, but that strength in manufacturing was continuing to boost the supply chain of the region as a whole.

Analysis by Business Editor Thom Kennedy

Our economy is growing – and growing strong, new figures released today reveal.

These are exciting times in the world of manufacturing, for Shropshire as much as anywhere else.

Jaguar Land Rover has led a revolution in the automotive sector, the impact of which is trickling into the supply chain, particularly in Telford.

But scratch beneath the surface, and it becomes clear that Shropshire's economy is still ticking to the beat of its traditional industries.

Over the first quarter of 2015, according to figures released by RBS, Shropshire's economy grew by 3.1 per cent, and Telford & Wrekin's by 2.5 per cent.

Both authorities outperformed the West Midlands, which achieved growth of 2.2 per cent year-on-year, after growth of just 0.3 per cent compared to the previous quarter.

They also grew faster than the region's industrial cities, with Birmingham's economy just 1.9 per cent bigger than a year ago, Wolverhampton's up by 2.1 per cent, and Coventry's by 0.9 per cent.

Dudley was the worst-performing part of the West Midlands, with its economy a measly 0.4 per cent larger in the first quarter of last year compared to early 2015.

According to RBS, the strength of Telford and Shropshire's economies is founded on retail, leisure, professional services like lawyers and accountants, and agriculture.

"The West Midlands has seen strong levels of inward investment and a healthy number of start-ups, which is positive news for the region's economy," said RBS regional director Andrew Mitchell.

"Fundamentally we are in a good position. Market conditions are good, confidence is up and we are seeing an increase in requests for lending to fund investment and expansion.

"In particular, we are experiencing a buoyant agricultural sector in Shropshire, Herefordshire and Staffordshire, whilst the leisure sector is delivering growth, leading to increased visitor numbers to the area."

The tracker estimates growth by looking at the make-up of an area's economy, and assessing it against the performance of different sectors nationally.

The figures are then adjusted to take account of each sector's historic performance in a county, and compared to local employment data for accuracy.

"Where Shropshire seems to have done well, and a little bit better than in Telford & Wrekin, is in the construction sector," added economist Rupert Seggins.

"It's about even when it comes to the big, vital business services and retail and leisure sectors. While they are not so glamorous, they are the core of any region's industrial make-up, and most regions will be to a greater or lesser extent reliant on those sectors."

He added: "Telford has done a bit better in things like IT, and it has grown a bit faster in manufacturing.

"But Shropshire has a history of outperforming growth in its mix of sectors. What it has, it uses more competitively than in Telford & Wrekin."

The local economy is also benefiting from businesses choosing to invest in the area – and in recent months we have seen substantial sums spent on premises in the county.

Aga Rangemaster has spent more than £4 million on its Coalbrookdale foundry in recent months, and in April bosses cut the ribbon on a new £1.8 million sand plant at the site.

Shrewsbury's Salop Design has invested more than £2 million in growing and diversifying its business.

And The Park Inn by Radisson in Telford spent £3.5 million on a major refurbishment programme, leading sales manager Sarah Dainty to observe an increase in visitors.

"We have certainly seen an uplift in our leisure market," she said.

"In particular, there has been a marked increase in the number of weekend coach tours being based at the hotel.

"We work closely with leisure and tourism groups in Shropshire to promote Telford as a tourism destination, and visitor numbers have been increasing throughout the year."

Joanne Boddison, who is the general manager at the award-winning Best Western Valley Hotel in Ironbridge, added: "2015 is proving to be an extremely successful year for Shropshire when is comes to the leisure industry and it shows no sign of slowing down."