Economy of Sheffield

In 2008, Sheffield ranked among the top 10 UK cities as a business location^[1] and aims to regenerate itself as a modern technology and sports based city. Sheffield has an international reputation for metallurgy and steel-making. It was this industry that established it as one of England's main industrial cities during the 18th, 19th and 20th centuries. This industry used Sheffield's unique combination of local Iron, Coal and water power supplied by the local rivers. This fuelled a massive growth in the city's population that expanded from 60,995 in 1801 to a peak of 577,050 in 1951. However, due to increasing competition from imports, it has seen a decline in heavy engineering industries since the 1960s, which has forced the sector to streamline its operations and lay off the majority of the local employment. The steel industry now concentrates on more specialist steel-making and, in 2005, produced more steel per year by value than at any other time in its history.^[2] The industry is now less noticeable as it has become highly automated and employs far fewer staff than in the past. However a small number of skilled industrial automation engineers still thrive in it. Today the economy is worth over £7 billion a year.^[3]

The largest employers are now all public sector: the two universities, NHS, and national and local government employees. Private fee-paying international students are also a major source (£120 million per year) of income to the local economy through the universities.