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The potential of coworking spaces to contribute to geographically distributed manufacturing activity and regional levelling up in the UK

Research overview

Working from home, or telework, has been rising in the past 20 years, but large-scale adoption of this practice was never really embraced by the majority of UK employers. In March 2020, the COVID-19 pandemic ‘flicked a switch’ overnight, and all workers who were able to work remotely were compelled and facilitated to do so, through digital technologies.

Whilst many people who worked from home during the pandemic, many others found themselves with a lack of appropriate workspace, or experienced a sense of social isolation. As the pandemic subdued, patterns of work have evolved into more complex patterns of hybrid working.

The benefits and disadvantages of working remotely remain in this dichotomy of place – home or the office – yet new workspaces, such as coworking spaces (CWSs) offer a third option. Indeed, the growth of coworking spaces has grown significantly across the world since the pandemic, not only in cities, but also in the suburbs, towns and rural villages.

Other countries (across Europe and the USA) have recognised the potential of CWSs, to help deliver economic growth and develop places beyond their core cities. They have begun to develop explicit policies to support remote working from these places. However, there is a noticeable absence of this type of discussion in UK policy and the question is, why? Are they not popular in such areas of the UK, are they different to city-based CWSs, in what ways? What are the implications for the areas they are located in?

Our pilot study of CWSs in a number of provincial areas in England examined what CWSs in these areas look like, what they do, what are their governance structures and the potential they hold for raising entrepreneurship and business growth beyond core-cities. We interviewed owners, managers and users of CWSs; Chambers of Commerce, local councils, local enterprise partnerships. We made observations of a variety of CWSs types, business models and identified the range of their activities they undertook to support their local areas. We listened to how they were faring, their relationships with each other and other local bodies. Our findings are summarised in two reports. Whilst designed to sit as separate briefs, there is complementary in what they cover, and benefit from being read together.

The first report “The rapid rise of rural co-working in England: sharing experiences for mutual learning” is a briefing for industry. It identifies the activities undertaken across a range of CWSs and collates them to provide insights and suggestions to other CWS owners and managers about the best practices we observed, so that these might be considered by those who do not currently adopt them and strengthen the role of their CWS to its local economy further.

The second report “The potential of coworking spaces to stimulate local growth outside of major cities” is a briefing to local and national policymakers. It identifies more specifically, the contribution CWSs can make to various levels of community: the community within the CWS, the local business community around it, and the wider social community in which they reside. It also identifies areas in which the government could offer more support. The potential value CWSs bring to each level of community means they deserve to have greater attention from local and national policymakers as they grapple with how to stimulate local growth and prosperity across the UK.

This research was conducted by Dr. Felicia M Fai, Dr. Mariachiara Barzotto and Professor Phil Tomlinson (University of Bath). This work was supported by the UKRI Made Smarter Innovation Challenge and the Economic and Social Research Council via InterAct [Grant Reference ES/W007231/1].

For further discussions or potential applications/collaborations, please contact Felicia Fai.

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InterAct Blog

How co-working spaces can boost local economies

The routine of commuting five days a week to and from an employer’s office now seems somewhat old fashioned. Flexible and remote working have become much more common – and popular.

One global survey found that 68% of employees prefer flexible working. In the US, when given the option of remote work, 87% of employees take up the offer. It has also been estimated that up to 25% of workers in some of the world’s largest economies could work remotely for three to five days a week without any loss in productivity.

Improvements in digital technology and better broadband connections have made this drastic change possible. COVID then sped up the whole process, with remote working becoming a necessity for many.

Traditionally – and during COVID lockdowns – remote working meant working from home. But research suggests that much of the recent uptake in remote work is occurring in “co-working spaces”, where people from different professions and organisations work side by side.

These spaces provide flexible access to shared workspaces, with a range of facilities such as decent coffee, good wifi, digital printing and postal services. They range from basic to funky in design, some with natural features or social spaces equipped with table tennis and pool tables, boxing bags and PlayStations. Dogs and other pets are often welcome.

Since they first emerged in the US in 2005, co-working spaces have seen significant growth in both urban and rural locations. They have also been set up in tourist hot spots, catering for workers who wish to combine their jobs with travel on “workcations”, while others are designed for specific groups such as female entrepreneurs.

Some are run by large global companies while others are set up by local independent providers. But they are all designed for workers in search of a flexible approach, a decent location and an appealing working environment.

Part of this appeal comes from the social interaction they provide, reducing the isolation of working from home. They may also be located more conveniently than traditional places of work, reducing commute times and helping parents manage childcare commitments.

Commercial collaboration

The main feature of a co-working space is that the people who use it come from different backgrounds and are not employed by a single company. Such a diverse community can open up new opportunities for collaboration and the exchange of ideas – and even the potential for new commercial partnerships.

Indeed, some research suggests that co-working spaces are similar to “industrial clusters”, where groups of businesses in similar sectors are concentrated in a particular location, such as the Square Mile in London, or the area near Silverstone in England nicknamed Motorsport Valley.

Co-working spaces can be good for employers too, broadening their geographical reach. They may be cheaper than traditional office space, and provide a flexible option to scale up or down depending on economic circumstances.

And while most co-working spaces are designed for desk workers, there are an increasing number of manufacturing and engineering companies getting involved. Spaces which provide access to things like CAD software, 3D printers and lathes are particularly useful for small design or artisan businesses.

A role for policy?

This ease of access to tools and technology can encourage start-ups, or promote the re-emergence of small scale manufacturing in “left behind” places. In the US, for example, there has been a political push to promote co-working spaces as seedbeds of entrepreneurship.

In Italy, a similar policy in Rome has received the same kind of encouragement, while Ireland’s government announced plans for investment in 400 co-working hubs in rural areas to create a national network of facilities.

The Organisation for Economic Co-operation and Development (OECD) has also expressed interest in the potential of co-working spaces to boost regional development.

But so far in the UK the role of co-working spaces has largely been absent from any political party’s vision for developing regional economies. Instead, it seems to have been largely left to local authorities and businesses to take the lead.

In Stoke-on-Trent, for example, a new co-working space development has been launched in a partnership between the local government and private sector investment. Elsewhere, Devon County Council coordinates its own network of co-working hubs.

They have understood that the move towards more flexible working is surely here to stay. For many, it provides a sense of freedom and independence in their working lives.

Overall though there seems to be a lack of strategic thinking from the national government on the funding and location of co-working spaces. In tough economic conditions, this may turn out to be a significant missed opportunity.


Mariachiara Barzotto, Senior Lecturer in Management Strategy and Organisation, University of Bath; Felicia Fai, Associate professor in International Business and Innovation, University of Bath, and Phil Tomlinson, Professor of Industrial Strategy, Co-Director Centre for Governance, Regulation and Industrial Strategy (CGR&IS), University of Bath.

This article is republished from The Conversation under a Creative Commons license. Read the original article.

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InterAct Blog

Why flexible working is part of the ‘future of work’ for manufacturers

While hybrid working stole the limelight during the pandemic, we’re hearing about increasing numbers of employers with frontline staff that are now creating greater flexible working for people who can’t work from home. 

The manufacturing sector is a case in point. Until recently, employers generally told us that flexible working just wasn’t possible where machine operatives and production lines were involved. And yet, we recently spoke at an event with InterAct at Strathclyde University about the ‘future of work’, and we heard from a range of manufacturing and engineering firms that are implementing different kinds of flexibility that support their people and their business. 

For example, The Alex Begg Group, based in Ayr, has moved production staff that handcraft luxury scarves and blankets on to annualised hours. This means staff work four-day weeks at the start and end of the year, and five-day weeks in the busier middle period. Staff benefit from longer weekends in quieter periods, and the business benefits from having staff on hand when they’re most needed without increasing costs.

Livingston-based precision engineers, Almond Engineering, haveintroduced more flexible hours. Staff need to be in work during the core hours of 9am-3pm but people can start and finish before or after these times as long as they work their 39 hours in the week.  

Energy solutions firm Aggreko is promoting more roles as part time, in part to retain older, more experienced workers who are key to training and supporting new recruits and apprentices.  

In each case there are mutual benefits as workers have more choice and control over how they manage their work and home responsibilities, which we know boosts wellbeing, while employers benefit from retaining loyal, engaged and productive staff, and employers are more attractive to a much wider pool of potential new staff. Flexible working is very much part of the future of work for manufacturing firms. 

If you’d like to create more flexible ways of working for frontline manufacturing staff, here are out top 10 practical tips. Many are seemingly very small changes but they can make a big difference. 

1.    Advanced notice of shifts 

If you can plan ahead and give people more notice of their shifts, including specifics about location if this varies, it gives them more control over the rest of their life. They can book medical appointments, arrange childcare, or just know when they can go for swim or take the dog for a walk.  

2.    Reliable, predictable shift patterns 

Creating a regular shift pattern also helps people have more control over work and life outside because they can anticipate shifts, and plan accordingly.  

3.    Know your team 

Understanding someone’s personal circumstances can help you create a shift pattern that works. You might not be able to accommodate everyone’s preferences all the time. But knowing what employees prefer means you can design rotas that keep people happier in general, and need fewer swaps. 

4.    Direct rota input for employees 

Have you ever tried letting your team put together their own rota? You might need to intervene if there are gaps. But you can be sure staff are getting more of the shifts they want if they’ve chosen them directly.  

5.    Easy shift swaps 

Make it simple for people to change shifts with a colleague if they need to. There are good apps that can help teams communicate clearly, view rotas and swap shifts quickly, as well as email and group messaging. 

6.    Small adjustments 

Allowing staff to make small, guilt-free adjustments when the unexpected happens – a broken boiler, poorly child or elderly relative who needs support, for example. This makes a huge difference to how stressed people feel, if it’s ok to make small changes to their working pattern to deal with something important happening at home. 

7.    Flexible hours and shifts 

Would part-time hours work for some people in some roles? This can instantly open up roles to more people, especially parents, carers and people with disabilities who can’t work full time. It can also save the company money by only paying salaries for the time you really need. Would two people job-sharing be able to deliver the same outcomes for customers? Or compressed hours (doing fewer, longer days)? Would a twilight shift suit some people better, or fewer, longer shifts? Think about what sort of flexibility could work for your teams, and remember ost people only want relatively small amounts of flex. 

8.    Small amounts of working from home 

Could some parts of roles could be done at home? Whether it’s admin tasks, some staff meetings or training. Even just a small amount of home working, where possible, can make a difference to someone’s busy week. 

9.    Talk about existing flexible working and wellbeing benefits 

Many companies have brilliant support and benefits that some employees have no idea exist. It’s an easy win to shout about what you already have. Make sure your staff take their leave entitlement, and understand what’s available to support parents and carers. Remind them there’s an employee network that might be helpful, that there are mental health first aiders they can talk to, or simply flag lunchtime activity classes if you have them. Make sure your people know all the support they can tap in to. 

10.  Train great line managers 

Managers who can communicate effectively and empathetically with their teams will get the best from them. This includes ensuring colleagues who aren’t always sat at computers have the information they need and the ability to share their opinion freely, as well was understanding changes in people’s circumstances and being open to sensitive discussions, such as people having too much work. 

For more information about Flexibility Works and the support we provide to employers, please visit flexibilityworks.org