Real estate has recorded the second-fastest rate of business population growth among major UK industry groups over the past five years, according to research from Approved Business Finance.
The analysis puts the sector’s average annual five-year growth rate at 4.2%, behind only electricity, gas, steam and air conditioning at 12.5%.
Approved Business Finance analysed Office for National Statistics business population data covering 615 industries before grouping them into 19 broader categories using Standard Industrial Classification codes.
Information and communication ranks third with average growth of 3.5%, followed by human health and social work at 2.8%.
CONSTRUCTION ALSO EXPANDS
Construction recorded average annual growth of 1.5% over the five-year period, placing it sixth among the 19 broad industry groups analysed.
Water, sewerage and waste management recorded 1.8% growth, while accommodation and food services increased by 1.2%.
At the other end of the table, mining and quarrying recorded a 4.2% decline, while financial and insurance activities fell 2.5% and manufacturing declined 1.2%.
The figures measure changes in the number of businesses operating within the respective sectors rather than changes in economic output or activity.
‘GROWTH IS FAR FROM EVENLY DISTRIBUTED’
Mark Kozo (main picture, inset), commercial director of Approved Finance Group, says: “Our data shows that while some industries are expanding rapidly, growth is far from being evenly distributed across the UK economy.
“For businesses operating in growth sectors, the challenge now is turning favourable market conditions into sustainable expansion.
“Whether it is investing in new equipment, taking on additional staff, increasing stock, or moving into larger premises, growth often requires capital before the additional revenue arrives.
“For SMEs in particular, having access to the right finance at the right time can be crucial to making these opportunities happen. Rather than waiting until cash flow becomes a barrier, businesses should consider where investment could help them increase capacity and improve efficiency.”
Kozo adds that businesses with the financial flexibility to invest as opportunities emerge may be better placed to convert wider industry expansion into growth of their own.
