From Steel to Software: Sheffield’s Evolving Technological Landscape

Sheffield's evolving technological landscape have made it a key player in the digital age. Discover the city's tech transformation.
10.07.23 Charles Griffiths

Sheffield is home to over 1100 tech companies and was ranked the 10th best tech destination in 2022.

Once renowned as the ‘Steel City’, Sheffield has always been associated with industry and manufacturing. It’s then perhaps no surprise that the city is now playing a crucial role in the 4th Industrial Revolution as a technology hub.

From state-of-the-art technology parks to targeted government support, Sheffield is an attractive location for both multinational businesses and enterprising start-ups.

The Steel Legacy

Sheffield built its reputation as a major centre for steel production. At one point, Sheffield produced 85% of British steel and accounted for 40% of steel production in Europe.

However, after World War 2, global competition and changing market dynamics meant that Sheffield’s steel industry was no longer viable. The 1980s saw the closure of many mills, which dealt a heavy blow to the local economy.

The Rise of the Technology Sector

Sheffield’s shift toward the technology sector was driven by the need to diversify the city’s economic base. By establishing the Local Enterprise Partnership (LEP), Sheffield was able to develop a clear plan for developing local industry and promoting local economic development.

The LEP has fostered collaboration between academic institutions, the private sector and government. Partnerships between the city’s two universities and many businesses have flourished, creating a vibrant innovation ecosystem.

Educational institutions and research facilities have been pivotal in fostering technological growth in Sheffield. The University of Sheffield and Sheffield Hallam University invest in cutting-edge research and development. Technology-focused courses attract bright minds who leave as highly skilled graduates with the knowledge and expertise needed to thrive in the digital age.

why sheffield is so attractive to tech start-ups

Building a Digital Infrastructure

Sheffield’s efforts to attract tech companies and foster entrepreneurship have been integral to its technological growth. The city has actively positioned itself as an attractive destination for businesses in the technology sector.

The Advanced Manufacturing Research Centre (AMRC) conducts world-class research into advanced manufacturing. Industrial partners include Boeing, Rolls-Royce and Airbus, with total partnerships numbering over 125.

A commitment to creating a favourable business environment with comparatively cheap rents, supportive policies, and a vibrant talent pool has further enticed tech companies to set up in Sheffield.

The city has cultivated a culture of innovation and risk-taking, encouraging entrepreneurs to transform their ideas into successful start-ups. In 2022, Sheffield was ranked the best UK city to start a business, with notable highlights being living costs, transport links and a highly skilled workforce.

Sheffield’s investment and support to the tech sector are seeing fantastic returns, as digital companies contribute over £2 billion a year to the local economy.

Fostering Talent and Skills

Educational institutions are pivotal in shaping the talent pool for Sheffield’s technology sector. The city boasts renowned universities and colleges that have embraced the digital revolution. Sheffield hosts over 60% of the UK’s educational technology capacity.

These institutions have adapted their curricula to equip students with the necessary skills in computer science, software engineering, data analytics, and cyber security.

Partnerships between local universities, businesses, and startups have been instrumental in fostering talent and skills in Sheffield. The University of Sheffield offers work placements with most of its courses. This invaluable experience helps bridge the gap between academia and industry and provides gateways into employment upon graduation.


As Sheffield continues to evolve as a technology hub, its future looks promising. Growth of the tech sector is estimated at 70%, highlighting the success of its initiatives and thriving tech ecosystem.

Sheffield’s transformation from steel to software is a triumph of resilience, vision, and determination. As Sheffield embraces the future as a prominent player in the technology sector, it paves the way for economic growth, job creation, and a brighter future for the city and its inhabitants.

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