North Wales has never lacked assets or ambition, but what is changing now is the scale of opportunity

CEO of the Development Bank of Wales Giles Thorley says the question is not whether North Wales can grow, but how that growth is shaped and who benefits from it.

From large industrial estates to stunning coastlines, North Wales is a region of stark contrasts. It combines some of the UK’s most significant industrial and energy assets but also rural and coastal communities and a fantastic tourism sector –communities that face very different economic realities.

That contrast is not a weakness. In fact, in many ways, it is one of the region’s defining strengths. But it does mean that growth, if it is to be sustained and inclusive, requires a more deliberate, place-based approach enabling businesses to invest, scale and compete.

Placing the HQ of the Development Bank of Wales in Wrexham was an acknowledgement that North Wales had historically been underrepresented but is a core strategic region. Not just because of its existing industrial base, but because of the scale of opportunity now emerging as major investment programmes move from planning into delivery.

The question is not whether North Wales can grow. It is how that growth is shaped, and who benefits from it.

Deep foundations

North Wales is often described as a single economic area, but in practice it is highly diverse. Across Ynys Môn, Gwynedd, Conwy, Denbighshire, Flintshire and Wrexham, the economic picture varies considerably. Tourism ranges from the staggering beauty of the mountains and countryside to the glorious beaches and coastline. Increasingly, it also reflects a move towards high-quality, year-round attractions that draw visitors from across the UK and beyond.

Attractions such as Zip World, with sites across the region, have become anchor destinations in their own right, reinforcing North Wales’ reputation as a leading adventure tourism destination and extending the economic impact beyond traditional seasonal peaks. Having served as chair of Zip World, I have seen at close quarters the contribution that businesses like these can make to the region’s economy.

In the north east, particularly around Wrexham and Deeside, there is a strong concentration of advanced manufacturing, engineering and industrial services. These businesses are closely integrated with supply chains in the North West of England and are often export-focused, forming a critical part of the wider UK industrial base. Assets such as Wrexham Industrial Estate, one of the largest in Europe, underline the scale and capability that already exists.

Further west, the picture shifts. Businesses tend to be smaller, owner-managed and often rooted in tourism, hospitality, food production and the foundational economy. These sectors are vital to local communities sustaining employment, skills and resilience in coastal and rural communities.

Both parts of the region matter. The challenge is ensuring that investment reflects that diversity and drives local community impact rather than assuming a one-size-fits-all model.

Growth opportunities are immediate

But there is a clear sense that North Wales is entering a new phase where long planned investment can translate into commercial opportunity.

Energy and decarbonisation are perhaps the most obvious examples. The identification of Wylfa on Anglesey as a site for the UK’s first fleet of small modular reactors, alongside activity in hydrogen, renewables and industrial decarbonisation, points to a long-term structural shift in the region’s economy.

That shift will not just create opportunities for large infrastructure projects. It will ripple through supply chains, creating demand for smaller businesses developing specialist capabilities.

We are already seeing early signs of that. On Anglesey, Ecodetect is developing AI-driven technology to help offshore energy developers monitor environmental impact at scale – a clear example of how innovation and clean growth are beginning to intersect.

Elsewhere, businesses like JBF Group in Wrexham are investing in advanced building materials and low-carbon manufacturing, supported by a mix of public and private capital. There are also clear examples of North Wales businesses scaling successfully into global markets.

Aparito, originally founded in Wrexham, developed digital health solutions to support patients with rare diseases and achieved significant international growth before its acquisition by Eli Lilly and Company. Stories like this demonstrate the region’s ability not only to innovate, but to build businesses that attract global interest and investment.

In addition, public investment initiatives are opening up infrastructure and skills pathways essential for business growth. Their worth goes beyond just providing funding. They also instil confidence in private investors and support long-term business decisions.

Local growth matters

At the same time, growth is being driven by the decisions of thousands of local business owners responding to opportunity in their own markets.

Rib Ride on the Menai Strait is a good example. A well-established tourism business, it is investing to extend its operating season, create new training opportunities and support local supply chains. That kind of incremental growth can be just as important in terms of jobs, skills and local resilience.

Similarly, regeneration-led developments such as those led by The Neighbourhood Group on Anglesey, show how targeted investment can unlock the potential of local assets, in this case through the renovation of disused buildings, while creating long-term economic value.

These investments may look different from those in advanced manufacturing or energy, but they play a critical role in ensuring that growth is felt across the region.

Structural challenges

For all these strengths, it is important to recognise the challenges.

Productivity in North Wales remains below UK averages. Skills gaps persist, particularly in higher-value technical roles. Demographic pressures, including an ageing population and outward migration, risk constraining future labour supply.

Connectivity also continues to be a limiting factor, whether that is digital infrastructure, transport links or access to suitable business premises. These are not new issues, but they do shape the investment decisions businesses are willing and able to make. Productivity, skills availability and connectivity all influence whether firms can scale, modernise or take on new contracts.

Alongside this, the region’s universities play a critical role in underpinning future growth. Bangor University and Wrexham University are not only major employers in their own right, but also key partners in developing the skills pipeline, supporting research and innovation, and anchoring economic activity in their communities. Bangor University is also one of our partners in Economic Intelligence Wales, further strengthening the link between academic insight and economic strategy.

This is where development finance has a specific role to play. Working alongside businesses as long-term partners, not just as providers of funding. In North Wales, we see consistent demand for patient capital. Businesses looking to scale, transition ownership or invest in new capability often require funding that is flexible and aligned to long-term outcomes.

That is particularly true in manufacturing and energy-adjacent supply chains, where investment horizons are longer and returns are not always immediate. It is equally important in smaller, rural businesses where access to commercial finance can be more constrained.

Having a local presence matters here. Local insight is often the difference between a transaction and a long-term partnership.

North Wales has never lacked assets or ambition. What is changing now is the scale of opportunity – from industrial growth in the north east to clean energy on the Island of Anglesey and regeneration across coastal communities.

The task is to connect those opportunities with the right kind of investment. Investment that is patient, that is place-based, and that recognises the diversity of the region. If we get that right, North Wales will not only grow, but to do so in a way that is more balanced, more resilient and more inclusive. That is the ultimate prize.

• Giles Thorley is chief executive of the Development Bank of Wales.