Top 3 Growing Industries in the East Midlands – And How Principal Business Finance Can Support Their Success

The East Midlands has emerged as one of the UK’s most dynamic regions for business innovation and economic expansion. From advanced manufacturing to logistics and clean energy, the region is attracting investment, creating jobs, and setting a strong foundation for future growth.

At Principal Business Finance Ltd, we’re proud to work with a range of East Midlands businesses, helping them unlock funding and scale with confidence. Based on current market trends and regional performance indicators, here are the top three fastest-growing industries in the East Midlands and how we can support their momentum.

1. Advanced Manufacturing

The East Midlands has long been a centre for engineering excellence. Today, the sector is expanding into areas such as aerospace, precision engineering, electronics, and 3D printing.

According to the East Midlands Development Corporation and Make UK, the manufacturing sector contributes approximately £17 billion annually to the region’s economy and employs over 300,000 people. Nottinghamshire, Derbyshire, and Leicestershire are home to major manufacturers such as Rolls-Royce, Toyota, and Bombardier, as well as a fast-growing base of SMEs.

The growth is driven by technological advancement, Industry 4.0 adoption, and regional investment in innovation hubs like the Midlands Engine and Nottingham Enterprise Zone.

How Principal Business Finance Can Help:

• Asset Finance for machinery, robotics, or production lines
• Invoice Finance to smooth cash flow between supply and payment cycles
• R&D Capital Loans to invest in prototyping or technology upgrades
• Equipment Refinance to release equity from owned machinery

Source: Make UK – East Midlands Manufacturing Outlook

2. Transport and Logistics

With its central location and access to major motorways (M1, A1), railway links, and East Midlands Airport one of the UK’s busiest for cargo the region is a strategic hub for logistics and distribution.

The East Midlands Gateway (SEGRO), a 700-acre logistics park near Castle Donington, is home to Amazon, DHL, and XPO Logistics, reflecting a wider boom in e-commerce and just-in-time delivery models. According to the Midlands Engine Economic Observatory, the logistics sector grew by 14% between 2020 and 2023, with increasing demand for warehousing and fleet expansion.

How Principal Business Finance Can Help:

• Vehicle Finance to acquire new vans, trucks, HGVs, or EVs
• Commercial Mortgages for warehouses or distribution centres
• Fleet Refinance & Leasing to optimise running costs and release capital
• Bridging Loans for property acquisition or depot upgrades

Source: Midlands Engine Observatory

3. Renewable Energy and Green Technologies

The East Midlands is playing a key role in the UK’s journey toward net zero. From solar PV installation to EV infrastructure, battery storage, and sustainable construction, green tech is becoming a major economic driver in the region.

Leicestershire and Lincolnshire are investing in low-carbon innovation centres, while cities like Nottingham are pushing ahead with climate-friendly transport and construction policies. The Nottingham Green Partnership and D2N2 Local Enterprise Partnership are actively supporting clean growth initiatives, with government and private grants targeting SMEs in the sector.

How Principal Business Finance Can Help:

• Green Asset Finance for solar panels, energy-efficient machinery, or EVs
• Development Finance for low-carbon construction and retrofitting
• Working Capital Loans to bridge grant delays or scale installations
• Merchant Cash Advances for businesses with strong card turnover in renewables

Source: D2N2 LEP – Low Carbon Growth

Final Thoughts

The East Midlands is thriving — and its most promising sectors need agile finance to keep growing. Whether you’re building an electric fleet, investing in a sustainable production facility, or scaling a logistics business, Principal Business Finance Ltd is here to help.

With access to over 100 UK lenders and a five-star-rated service, we offer tailored finance solutions that fit your industry, goals, and growth stage.

📞 Looking to grow your East Midlands business? Contact us today for a free consultation. Contact us on 01604217998, email info@principalbusinessfinance.co.uk or enquire at https://principalbusinessfinance.co.uk/contact-us/.