New report reveals economic impact of Manchester Airport’s second runway after 25 years

A new report has revealed how the construction of a second runway at Manchester Airport has driven foreign investment, exports and academic progress across the North over the past 25 years.

The study, available in full here, by economic consultants Metro Dynamics, A Route to Growth for the North, has highlighted how Runway 2 at Manchester Airport has profoundly shaped the region’s economy since it opened in 2001. Authors conclude that policy-makers should create a ‘super-connected global North’ to drive economic growth and close productivity gaps.

Manchester Airport’s Runway 2 opened 25 years ago is was the last runway to have been built in the UK. It was built as part of a response to deep industrial decline across the North that saw Manchester lose one in four jobs in the preceding decades. The £172 million investment was delivered in just four years from approval being granted and has seen Manchester grow into global gateway for the North with connections to more than 200 countries representing 75% of global GDP. The airport’s economic impact on the North has climbed to £9.5 billion a year.

Manchester’s connectivity has helped the North became a growing economy, with clusters of high-value industries in all its major cities, the report found. It has seen higher value exports; surging student and visitor numbers; and inward investment increasing as national levels declined.

Manchester’s two runways mean it still has the potential to nearly double passenger numbers from today’s 32.3m – more than twice the number it has added since Runway 2 opened. Report authors say this is a reflection of the untapped potential of the Northern economy as a whole.

Writing the foreword, economist and life president of the Northern Powerhouse Partnership Lord Jim O’Neill, said Manchester Airport was now “an asset that benefits more than Greater Manchester alone,” adding: “But that ambition needs to be matched by government investment in the transport links that connect the airport to the wider North.”

He said the Northern economy was “showing consistent signs of economic momentum, yet the airport’s potential catchment remains beyond easy reach. Northern Powerhouse Rail is the mechanism that changes that.”

Lord O’Neill concluded:

“If our new Prime Minister is to hit his target for UK growth, we need higher productivity overall, and that means closing the North-South divide. International connectivity can make a meaningful contribution to that, and in Greater Manchester’s case it already is. The missing piece is the railway that allows the rest of the North to fully share in those benefits.”

Businesses across the North also contributed to the report, sharing how they are benefiting from the global connectivity Manchester Airport offers. In Stockport, Cheadle-based life sciences business, Seda Pharma Development Services see more than half of its revenues coming from exports, with clients across the North America, Europe and Asia-Pacific regions. Marcel de Matas, Chief Business Officer and Co-Founder of Seda, said:

“More than half of our revenue is generated through exports, making international connectivity critical to our continued growth. Our model-informed approach to drug development attracts clients from across the world and Manchester Airport plays an important role in helping us build global relationships, host international visitors and support projects across multiple continents. It demonstrates how world-class life sciences companies can thrive in the North West while competing on an international stage.”

Commenting on the report’s findings, Manchester Airports Group CEO Ken O’Toole said

“Airports are not just buildings people pass through as they travel for work or leisure – they are a route to growth for regional economies – economic catalysts integral to our success as an island trading nation.

“Investing in Manchester Airport’s runways and terminals required visionary leadership, a culture of public and private sector collaboration and an understanding that infrastructure investment not only creates jobs and value in the short term, but can change the economic trajectory of regions in the long term.

“While Runway 2 shows what is possible, the UK’s overall performance on investment ranks poorly against other major economies. This Government has an opportunity to embed a policy environment that encourages key strategic investments just like this in regions across the UK, as part of its mission to deliver growth in every postcode. That includes delivering on Northern Powerhouse Rail and reforming business taxes to remove barriers to much-needed investment.”

Greater Manchester Mayor Bev Craig said:

“Manchester Airport is Greater Manchester’s gateway to the world and one of the North’s great success stories. For 25 years, its second runway has helped connect our businesses, universities and communities to global markets, and has played a major role in our city-region’s reinvention.

“Now we need to make sure more people and places share in that success. Northern Powerhouse Rail, including a high-speed station at the airport, would cut journey times, open up access to jobs and opportunities, and help unlock the North’s full potential. That is the investment our region needs – and the case we will keep making.”

VisitBritain CEO Patricia Yates said:

“Manchester Airport is a gateway to the North and a major driver of tourism growth across regional Britain. For many visitors, tourism is their first experience of a place, and regional gateways like Manchester Airport make it easier to discover more of Britain, underpinning our competitive tourism offer and message of welcome.

“By connecting international business and leisure visitors with destinations across the North, the airport supports local businesses, jobs and spending in communities far beyond its own doorstep, while positioning the North as a world-class destination for leisure, study, trade and investment. As this report demonstrates, investing in connectivity delivers benefits far beyond transport alone, boosting economic growth and ensuring tourism continues to be a driver of prosperity for communities across Britain.”