Rotherham’s Economic Transformation: Productivity, Structural Change and the Advanced Manufacturing Economy

A new report from the Northern Powerhouse Partnership (NPP) has examined Rotherham’s economic transformation over the past two decade. Their historic partnership with neighbouring Sheffield in delivering the Advanced Manufacturing Park has underpinned its productivity rising faster than any other town in the North.

Rotherham’s economic transformation, with a foreword by former Treasury Minister Lord Jim O’Neill, focuses on growth in Rotherham productivity of 63.9% since 2004 and the factors that have contributed towards it. The shift in the economy of the borough economy has been from traditional heavy industry towards advanced manufacturing, engineering and innovation-led activity.

At the heart of that transformation has been the development of the Advanced Manufacturing Park (AMP) and the wider Don Valley corridor which extends further into Sheffield. The site was developed by Harworth and is anchored by the University of Sheffield’s Advanced Manufacturing Research Centre (AMRC) and now supports a cluster which brings together businesses like Boeing, Rolls-Royce and McLaren Automotive with world-class research capability.

Situated on the former Orgreave colliery and coking works site, the AMP represents a striking example of economic renewal. An area once synonymous with the challenges of industrial decline, it is now home to one of Europe’s most significant clusters of advanced manufacturing, research and engineering activity which has delivered productivity increasing by more than 230% since 2004 in the Rotherham part of the development, while the wider advanced manufacturing corridor spanning Rotherham and Sheffield now supports around £2 billion of economic activity.

The report argues that this success reflects decades of collaboration between local authorities, universities, developers, businesses and regional stakeholders, combining strategic regeneration, research excellence and long-term investment.

While every place has different strengths, Rotherham’s experience demonstrates the value of sustained partnership between the public and private sectors in creating the conditions for long-term growth and investment.

South Yorkshire’s Mayor Oliver Coppard said:

“South Yorkshire powered the first Industrial Revolution. Today we are at the forefront of a new industrial revolution with Rotherham at its heart.  

“What was once the home of the Orgreave colliery and coking works, now hosts the Advanced Manufacturing Research Centre, Energy Innovation Institute and global firms like Rolls Royce, Boeing and McLaren. 

“The Advanced Manufacturing Park is driving innovation and excellence that has seen Rotherham and South Yorkshire become one of the fastest growing parts of the country.  

“For all too many people in South Yorkshire, since the death of our traditional industries, life hasn’t been very fair, or very fun. What’s happening in Rotherham, driven by a long-term plan and a partnership approach between the public and private sector, is showing that we can fight back against that sense of decline, building new industries of the future right here.”

“This country is not broken. We can create places where everyone can stay near and go far. By learning the lessons that Rotherham has to offer we can rebuild the North and renew the whole country.”

Cllr Chris Read, Leader of Rotherham Council, said:

“The story of Orgreave and its transformation into something genuinely world‑leading at the Advanced Manufacturing Park to testimony to an extraordinary group of people, but it demonstrates a model which should inspire us for the future.

“Rotherham’s success story over the last decade is perhaps slightly obscured by the fact that hard work was undertaken in the typically determined, resilient but never showy style of our community. As we look towards the next decade of opportunity, the Don Valley Corridor has the potential to be one of the most important growth areas anywhere in the country and an exemplar for the North. This is about forging ahead, building on the lessons of the AMP while making the most of new industries, infrastructure and investment.

“Our plans for Rotherham Gateway, which would bring mainline services back to Rotherham for the first time since the 1980s, we’re looking to go further still, bringing new connections, new employment space and thousands of good-quality jobs closer to our communities.

“This welcome report shows not just how far we’ve come, but what’s possible when we get that long-term partnership right, giving certainty and stability for investment, and building on our strengths. There is much more to do, but with the momentum we have, we should be looking to the future with confidence.”

Professor Koen Lamberts, President and Vice-Chancellor of the University of Sheffield, said:

“We are really proud of the impact our Advanced Manufacturing Research Centre has had on the South Yorkshire region over the last 25 years – attracting inward investment, creating highly-skilled jobs and driving economic growth. This report demonstrates the role that universities and innovation can play in boosting productivity and prosperity for their neighbouring communities, and creating opportunities that bring benefits for all.”

Lynda Shillaw, Chief Executive Officer of Harworth Group PLC, said:

“During the last 20 years, Harworth has invested over £200 million to transform the former Orgreave Colliery into a globally recognised innovation zone for advanced manufacturing.

“This report underlines the key role we have played alongside public sector partners in unlocking regional economic growth, creating a thriving and sustainable employment community at the Advanced Manufacturing Park that stands as a UK success story.

“As we look to the future, the Don Valley Corridor presents an opportunity to build on these foundations and apply the lessons of the AMP at an even greater scale across South Yorkshire and beyond.”

Andrew McPhillips, Chief Economist at the Northern Powerhouse Partnership and author of the report, said:

“Rotherham has recorded the fastest productivity growth of any major town in the North since 2004, but what is particularly striking is what sits behind that performance.

“Our analysis shows a long-term shift away from traditional heavy industry towards advanced manufacturing, engineering and innovation-led activity centred on the Advanced Manufacturing Park and the wider Don Valley corridor.

“The lesson is not that every place should try to replicate Rotherham exactly, but that through sustained collaboration between universities, businesses, investors and local leaders, we can create the conditions for long-term economic transformation.”

Rotherham’s Economic Transformation also identifies opportunities to build on the success that has been had through the continued development of the Don Valley corridor and proposals around Rotherham Gateway, strengthening links between the AMP, Rotherham town centre and the wider South Yorkshire economy.