The latest HSBC UK Corporate Tracker has identified clusters of large businesses in Wales that are outpacing the average UK growth rate for major firms, underlining the crucial role the nation can play in delivering the UK’s Industrial Strategy.
Using Beauhurst data, which draws on the most recent financial disclosures, the biannual HSBC UK tracker found that 57% of Wales’s fastest-growing large companies are located in clusters across Cardiff, Rhondda Cynon Taf and Wrexham.
Despite a backdrop of continued economic uncertainty, 52 large Welsh firms based in these clusters achieved annual turnover growth above the UK median rate for large businesses of 10.5% between 2021 and 2024, outpacing the UK economy’s 7.73% annual GVA growth over the same period.
The clusters contain many companies operating within the UK Government’s eight future‑focused sectors1 – the ‘IS‑8’. These sectors, including advanced manufacturing, clean energy and life sciences, have been selected as central to boosting long-term productivity and attracting investment.
In Wales, they include the financial services, digital and technologies, and creative industries, represented by growing businesses such as Admiral and Oprema. Digital and technology activity, in particular, is a key area of potential growth in Wales. Since 2020, the nation has hosted the Compound Semiconductor Catapult, supporting innovation and scale-up across the sector.
Corporates are a small but mighty group – they represent just 0.39% of all active UK businesses yet employ 45% of the workforce.
Together, these large companies account for around 70% of total employment amongst companies operating in IS-8. These sectors, including advanced manufacturing, clean energy and life sciences, have been selected as central to boosting long-term productivity and attracting investment.
Mark Timms, Head of Corporate Banking, Wales, Midlands & South East at HSBC UK, explained: “The performance of a relatively small number of large businesses will be critical to the success of the UK’s Industrial Strategy. Our research shows that the clusters we’ve identified in Cardiff, Rhondda Cynon Taf and Wrexham will play a central role in the UK’s future competitiveness.”
“The UK economy is at a turning point and decisions taken here on investment, skills, R&D and supply chains will materially influence whether the UK meets its long term economic ambitions. That’s why HSBC UK is working closely with many of these Welsh corporates and their supply chains to support their continued growth. Connecting businesses to opportunities both domestically and internationally and ensuring they have access to the capital, insights, and expertise to deliver growth and success.”
