The Financial Times once stated that the North West economy, led by the redevelopment of Manchester and Liverpool, is a genuine rival to ‘overheated London’. It’s a sentiment that’s hard to argue with.
Each distinct, but interconnecting sub region within the North West’s boundaries is brimming with industry – some traditional, some emerging to become sector leading. Whether it’s pharmaceutical, technology, automotive, retail, manufacturing, aerospace, utilities, chemical engineering, nuclear, or food manufacturing – not to mention the rich heritage in sport and culture, which contributes significantly to the regional economy – there is an abundance of talent and intent, combined with a strong identity and desire to put the North West on the global map.
While its chronically ‘wet and grey’ tag is well-known, the climate in the North West has never set the tone when it comes to the spirit and endeavour of the regional business community. “The business community remains close-knit, plain-speaking and has the energy and desire to make things happen, rather than waiting for others to do it for us,” explains Tom Hall, corporate partner at Pannone. “I don’t see that changing.”
In every corner of the North West there’s a fascinating story to tell about the businesses that contribute significantly to the wider UK economy; there are inspiring business leaders who are making their mark, not just on the region, but nationally and internationally; and there is a working population striving for change and good – all proud of the region, what is means and what it does.
It was these drivers that inspired our report Ambition 2025. We wanted to listen to those voices – hear their stories about growth and ambition, while understand the key motivations that will bring success over the course of the next 12 months. Through a combination of research and in-depth interviews, our aim was to paint a picture of the people and businesses that make up the North West business community and what aspirations they have for the future.
Survey highlights
As part of Ambition 2025, we conducted a survey of 200 North West businesses to understand the key drivers of growth. The research focused on five core areas: people, finance, impact, innovation and ambition. The results shine a spotlight on the motivations, priorities, and challenges for regional businesses, as they strive towards their goals in 2025. So, what does the survey tell us?
Legacy the ultimate ambition: Over 75% of respondents have selected at least one legacy building factor as their ultimate business objective. This compares to just 62% who selected at least one financial motivation.
External investment as a priority: Attracting external investment is the most important goal for businesses aiming to achieve their ambitions, surpassing even brand-building. This focus is especially strong among younger decision-makers (16-34 years old), where 56% identify external investment as key to their strategy.
Half of those aiming to sell their business to fund retirement also prioritise external investment as essential to achieving this goal.
Flexible work: The top people priority for businesses over the next 12 months is offering more flexible work options for employees. This focus on flexibility tops other people-related factors such as improving pay and recruitment. Arguably, it reflects a broader trend toward workplace cultural transformation.
Business leaders aged 45-54, however, prioritise investing in wellbeing and improving pay and rewards. This potentially highlights that people in these age groups are slightly more focused on more traditional, office-based perks compared to younger business leaders?
The role of AI: No businesses surveyed doubt AI’s potential impact, with the majority viewing it as a tool for enhancing efficiency and reducing administrative burden. This trend is particularly strong in HR and non-tech sectors, where AI is seen as a means to streamline operations.
In finance and retail sectors, AI is seen as an enabler for recruitment, training, and development.
Growing demand for funding: More than 80% of businesses in the North West, particularly in education (93%) and hospitality (92%), are actively seeking funding over the next 12 months. Angel investment and growth capital are the most favoured types of funding (21% each). Private Equity and Venture Capital are less attractive options (less than 6%).
M&A on the rise: M&A activity is a significant focus, with over three-quarters of businesses in the North West planning to explore opportunities within the next year. This trend is particularly prevalent in leisure (88%), with tech following closely behind (84%). Younger decision-makers appear less enthusiastic about M&A, with an even split between those who are considering it and those who are not.
Sustainability initiatives: Sustainability is on the radar of all businesses surveyed. The most common sustainability initiative is upgrading fleets to cleaner, greener options, reflecting a growing awareness of environmental impact across industries.
Generational differences: Throughout the survey, some clear generational differences emerged in terms of priorities and strategies. In particular, younger business leaders (16-34) are more focused on external investment, flexible working conditions, and growth, while those over 45 tend to prioritise wellbeing, pay improvements, and legacy creation.
Younger people are also more likely to prioritise external investment for meeting ambitions and be less likely to feel their business will embark on M&A in the next 12 months.
To complement our survey findings, we also interviewed 15 businesses based in the North West about what aspirations they have for the future, focusing on the same five core areas. Participants included: The Lowry, Direct Access Group, Serotonin, Duo UK, LOFT UK and One + All – businesses that are all passionate and driven by people who have a crystal vision, a real sense of purpose, and a desire to enact change – whether on a local, regional, national, or international scale.
What this insight has shown us is that the North West has a strong heritage of ambitious, entrepreneurial companies that are intent on growth. Despite the economic, social and geo-political challenges that exist in the market, there is clearly an appetite to seize opportunities and navigate the obstacles and barriers that lie ahead.
It’s certainly the attitude, approach and sense of identity that differentiates the North West and its component parts from other areas of the UK. It’s this personality that drives ambition and a core feature of our report.
“I came to the conclusion that the inhabitants here are of a different spirit which makes them want to enjoy life a little more.” Johann George Büsch, 1777
To read the Ambition 2025 report in more detail click here https://pannonecorporate.com/reports/