Advanced manufacturing and clean energy specialisms offer a route to inclusive growth — with the right investment and foundations put in place.
- South Tyneside ranks in the bottom 10% of UK local authorities for physical and human capital, with productivity at £28.4 GVA per hour — well below the North East average of £34 and the UK average of £41.9.
- Despite economic headwinds, the borough is a national leader in advanced manufacturing and clean energy, with the Dogger Bank Wind Farm’s operations base at the Port of Tyne representing a 35-year anchor investment for the region.
- South Tyneside’s rate of new business formation (12.1%) outpaces the North East average, and the borough ranks in the top 30% nationally for financial capital — a platform for inclusive growth that is not yet fully leveraged.
- The report calls for investment in skills and health, better transport connectivity, more flexible funding models through devolution, and a stronger external narrative to attract investment into the borough.
Insights North East today welcomes the publication of a major place-based productivity study for South Tyneside, produced by The Productivity Institute (TPI). The report, part of TPI’s national Investment in Productive Places Campaign, examines how South Tyneside can overcome structural barriers to growth and build a more inclusive, productive economy. Insights North East supported the study through facilitating stakeholder engagement and connecting regional expertise to the research process.
The research reveals a borough that leads with its strengths without downplaying its difficulties. Behind the productivity figures — £28.40 GVA per hour against a UK average of £41.90 — lies a deeper picture: high economic inactivity driven by long-term ill health, low skill levels, and child poverty affecting nearly one in four of the borough’s young people.
Yet the report also highlights genuine strengths that set South Tyneside apart from comparable areas. The borough’s specialisation in advanced manufacturing and clean energy — with location quotients of 1.49 and 1.24 respectively, well above the UK average — positions it at the heart of the UK’s industrial and energy transition. The Dogger Bank Wind Farm, the world’s largest offshore wind project, has its operations and maintenance hub at the Port of Tyne, providing a 35-year economic anchor for the area. South Tyneside also outperforms the North East in business formation, with a 12.1% rate of new business starts and a notably high share of high-growth firms, helping it rank in the top 30% nationally for financial capital.
The report points to devolution through the North East Combined Authority as a critical opportunity to reform how funding reaches places like South Tyneside. Short-term project funding cycles currently constrain providers’ ability to deliver sustained support for residents with complex needs, reducing the long-term impact of investment in skills, health and community services. Researchers call for integrated, long-term funding models that pool budgets across health, skills and regeneration — and that measure success using social as well as economic indicators, including wellbeing and community outcomes.
“It has been fantastic to be involved in this project with South Tyneside and the Productivity Institute. As the research reveals, increasing productivity alongside inclusivity remains a critical challenge. Insights North East will continue to work with partners across the region to bring forward robust evidence that can shape new opportunities and deliver real benefits for citizens.”
– Liz Shutt, Director, Insights North East
About the report
The full report, “Framing a place-based investment strategy for South Tyneside,” by Marianne Sensier, Kate Penney, Michael Francis, Abhi Sharma, Alfonso Silva Ruiz and Philip McCann is published by The Productivity Institute and is available at: www.productivity.ac.uk/investment-in-places/.
The study forms part of TPI’s national Investment in Productive Places Campaign and draws on quantitative data analysis, stakeholder workshops held in South Shields in February 2025, and follow-up interviews conducted between March and September 2025.
About Insights North East
Insights North East works to make a positive and long-term impact for people in the North East by connecting the region’s policymakers to evidence and actionable insights. Insights North East facilitated the stakeholder engagement underpinning this research and supported TPI’s access to regional expertise and networks. For more information, visit: www.insightsnortheast.co.uk.
For media inquiries, please contact: Jackalyn.carione@newcastle.ac.uk