When we think of Wales, we think of castles, coastlines, and culture, but when it comes to the nation’s economy, these are only small—though not inconsequential—aspects of what drives its success. The Welsh economy is powered by eight key industries that contribute to Welsh daily life and have global applications. These key industries include renewable energy, life sciences, fintech, manufacturing, technology, entertainment, food and drink, and tourism. Through the Economic Action Plan, the Welsh government supports these industries in accelerating the economy and assisting with their positive social initiatives.
1. Renewable Energy
Wales was the first nation to pass legislation in line with the UN’s Sustainable Development goals, and this action pinpoints the emphasis placed on renewables for the country. This emphasis is also why the renewables industry is one of the leading industries driving the nation’s economy.
The industry encompasses energy production, waste management, water treatment, and environmental monitoring. It employs over 58,000 people and contributes £4.8 billion in revenue. The most notable projects, however, are the marine energy projects, which use the Welsh coastline to produce clean energy. A key player is Marine Power Systems, which focuses on offshore wind energy production and ‘unlocking the power of oceans’. Much of what the industry produces on Welsh soil is sent around the world, helping support sustainable initiatives in other countries.
2. Life Sciences
The life sciences sector is thriving in Wales, and like renewables, much of the produced work is exported to other countries. The industry comprises over 260 companies and employs more than 12,000 people. The industry excels in regenerative medicine and is considered a world leader in this area.
While Wales’ strong academics play a role in this thriving industry by raising and bringing talent to the country, the Life Sciences Hub has also played an important role. The development of the Life Sciences Hub in Cardiff has assisted in developing the nation’s world-leading reputation and the overall life sciences industry by creating a single place that brings organisations, talent, and skills together. Through the Life Sciences Hub, various experts contributing to the shared goal of better health can come together to innovate, further expand the sector, and support people’s well-being.
3. Fintech
Fintech (financial technology) is a growing industry in many countries in the world and a thriving industry in Wales. Wales has seen thousands of jobs in this sector created in recent years, thanks to companies like Starling Bank, Wealthify, Monzo, and Currencycloud. The Welsh fintech industry includes banking, customer service, and financial crime. Wales has also developed education programs that foster talent in the fintech industry, setting it up for success today and into the future. The initiatives include the University of Wales’ Centre for Financial and Professional Services.
4. Manufacturing
Wales’ economy has long been associated with manufacturing, and as manufacturing needs have changed, it has adapted and kept pace with these changes. Thanks to its strong educational institutions, the nation is known for its skilled workforce. Wales assists with production, research, and development for fields as diverse as aerospace and low-carbon energy. The industry employs over 150,000 people across 5,000 companies. Many goods developed and manufactured in Wales are exported to other countries.
5. Technology
The technology industry in Wales is booming, with cybersecurity and compound semiconductors at the forefront of the sector. Over 3,000 tech organisations operate in Wales, producing essential tech products that enable our devices and keep digital spheres secure. The production of compound semiconductors is necessary for operating devices as diverse as smartphones, robotics, and satellite communication systems. IQE is a major producer of semiconductor products worldwide, taking up a 55% market share, and it’s based out of Cardiff, showcasing how powerful the technology industry in Wales is. Adding to this, international cybersecurity organisations like Oracle have set up operations in Wales, while small startups are finding their footing to advance the sector even further.
6. Entertainment
Entertainment comes in many forms, from online casinos to TV programs. In Wales, the creative sector, including film and music production, plays a major role in the economy. The stunning coastlines and landscapes offer a picturesque backdrop for a range of TV and film production needs, appearing in Doctor Who, Sherlock, Torchwood, and His Dark Materials, all of which have earned—and entertained—millions.
7. Food and Drink
The food and drink industry in Wales is thriving. It employs over 240,000 people and generates £19.1 billion in revenue. The industry encompasses producing, processing, packaging, and transporting food and drink items, alongside a foodie scene where restaurants serve patrons. Supporting the industry is Wales’ natural landscape, which fosters agriculture, and Wales’ universities, which offer programs such as food science and technology and food production management. Wales has developed a food and drink industry where every stage of food production can be completed, becoming a leader in food production technologies.
8. Tourism
With a picturesque landscape and attractions like Cardiff Castle and Snowdonia National Park, it’s no surprise that Wales draws many tourists, allowing the tourism industry to be a pillar of its economy. It’s a £5 billion industry that Wales aims to expand. Wales is home to multiple UNESCO World Heritage Sites and a unique culture that includes two living languages (Welsh and English). Tourists are also drawn to the relaxing and charming places to stay.
Final Thoughts
From renewables to tourism, Wales has several economic pillars that allow its economy to thrive and help support countries worldwide. Wales may be a small country, but it is influential—a perfect example of how small can be mighty.