History of Salford - Economy

Economy

For decades Salford's economy was heavily dependent on manufacturing industry, especially textiles and engineering. Since the Second World War however, Salford has experienced decades of growing unemployment as these sectors diminished and new sectors chose to locate in out of town locations with better transport links. Between 1965 and 1991 the city lost over 49,000 jobs, or more than 32% of its employment base. Several factors contributed to this decline, not least changes in the national and international economies, the introduction of new technology and the concentration of investment in London and South East England. The biggest job losses were experienced in Salford's traditional industries and although the service sector expanded during this period, it was unable to compensate for the decline in manufacturing.

The inner city's main shopping area is Salford Shopping City, Pendleton – colloquially referred to as "Salford Precinct" – close to the University of Salford. However this area suffers from extreme deprivation and is dominated by the central business district that is Manchester city centre. This is planned to change in the next few years with the implementation of the Pendleton Area Action Plan and the development of the pedestrianised and boulevarded A6 corridor. Salford Quays has been shortlisted as the new possible city centre by 2020.

The Lowry Hotel, the first five-star hotel to be built in Greater Manchester, is on the Salford side of the River Irwell.

Salford is credited as the birthplace of the Bush Roller Chain. Hans Renold, a Swiss-born engineer, came to Salford in the late 19th century. In 1879 he purchased a small textile-chain making business in Ordsall from James Slater and founded the Hans Renold Company, what is now Renold, a firm which still produces chains. Renold invented the bush roller chain shortly after and began producing it. It is the type of chain most commonly used for transmission of mechanical power on bicycles, motorbikes, to industrial and agricultural machinery to uses as varied as rollercoasters and escalators.

According to the 2001 UK census, the industry of employment of Salford's residents aged 16–74 was 18.0% retail and wholesale, 14.4% property and business services, 12.3% manufacturing, 11.7% health and social work, 8.6% education, 7.3% transport and communications, 6.8% hotels and restaurants, 5.8% construction, 4.4% finance, 4.2% public administration, 0.6% energy and water supply, 0.3% agriculture, 0.1% mining, and 5.7% other. Compared with national figures, Salford had a relatively low percentage of residents working in agriculture. The census recorded the economic activity of residents aged 16–74, 4.4% students were with jobs, 9.1% students without jobs, 6.3% looking after home or family, 11.2% permanently sick or disabled, and 4.8% economically inactive for other reasons. The proportion of students economically active in Salford was higher than the City of Salford and England averages (3.0% and 2.6% respectively); the same is true for economically inactive students (5.1% in City of Salford and 4.7% in England). The rest of the figures were roughly inline with national trends.