Landmark North West Animation Survey Reveals Steady Sector Growth but Precarious Future for Freelancers
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Results have been revealed from a major sector survey mapping the scale, growth and challenges of Greater Manchester’s animation, VFX, motion graphics, games cinematic and immersive media industries. The research was led by Manchester Animation Festival in collaboration with BBC Children’s & Education, MediaCity and the MediaCity Immersive Technologies Innovation Hub, following the launch of a landmark data‑gathering initiative in October 2025 designed to build the most comprehensive portrait to date of the region’s animation ecosystem.
The survey highlights a contrast between a sector valued at £120.3 million – influenced in part by the presence of a major live‑animation broadcast supplier – and increasing instability within the freelance workforce that supports it. Respondents were asked to classify only work that would qualify under a hypothetical regional animation tax credit, ensuring a consistent and accurate definition of animation activity across the board.
The data shows a sector that has grown rapidly in recent years. Combined company turnover has more than doubled, rising from £50 million between 2017 and 2021 to £120.3 million between 2022 and 2024. Employment has also increased, with 1,665 jobs recorded in 2025, and more than 7,000 hours of content produced over the past two years. This growth reflects not only the strength of established studios but also the contribution of companies that may not traditionally identify as animation studios yet deliver substantial qualifying animation work. The inclusion of a major live‑animation broadcast supplier further highlights the breadth of activity taking place in the region.
Greater Manchester’s animation companies are now working with some of the world’s most influential commissioners and collaborators, including the BBC, Disney, Netflix, Channel 4, ITV, Sky, Sony, Channel 5, Apple TV, Microsoft and the NHS. The findings position the region as a significant UK production hub serving both global entertainment markets and public‑sector clients.
Last month’s BAFTAⓇ Film Awards win for Manchester‑based studio One6th, with their stop‑motion short Two Black Boys in Paradise, highlights the exceptional creative talent rooted in the region and the national prestige it brings. It’s a timely reminder that animation is not only a cultural asset but a significant contributor to Greater Manchester’s creative economy – one that deserves sustained recognition and strategic support to continue thriving.
We founded One6th in 2018 with very few local connections, yet our reputation has grown entirely because of the world‑class artists we’ve been able to hire here. That talent – and the studios who employ them – make a meaningful contribution to the local economy. As studio leaders we’ve made significant concessions to our own pay and profits to ensure we can continue offering fair rates to local artists, and support from regional organisations has been limited. Despite this, our studio was recently recognised by BAFTA. It does make you wonder what the region’s freelancers and studios could achieve with more consistent support behind them.
Baz Sells, BAFTA‑winning director and One6th Co-founder
However, the picture is far less stable for freelancers, who make up 77% of the animation workforce. Surveyed for the first time, freelancers reported a marked decline in confidence and security. Forty‑two percent said they feel less secure in their role than before, while 28% are actively considering leaving the industry altogether. Taken together, the data shows that 70% of the freelance workforce is either losing confidence in the sector or preparing to exit it – a trend that, if left unaddressed, risks a serious loss of skills, capacity and competitiveness for the region.
What we’re seeing in Greater Manchester reflects a much wider national issue. Freelancers are the backbone of the UK’s animation industry, yet many are feeling increasingly insecure about their future. British animated content is celebrated around the world and remains a major cultural export – but without investment in the artists who create it, our place on the world stage looks likely to disappear. Greater Manchester could well be a ‘canary in the coal mine’ for the UK animation industry, but there’s still time for the right people to invest and avert disaster.
Dr Steve Henderson, Festival Director at MAF and GMAS Survey Author
Freelancers also shared insights into where their work is coming from: 58% is sourced within Greater Manchester, 29% from elsewhere in the UK, with the remainder coming from international clients. Views on the impact of AI were mixed, with nearly half reporting no noticeable change, 42% reporting a negative impact and 11% seeing a positive effect. The responses point to a workforce navigating unpredictable income, inconsistent commissioning patterns and emerging technological pressures. A number of freelancers also spoke about a general drop in morale, with AI emerging as a growing source of anxiety. One interviewee noted, “The company I work for has a good AI policy but generally the morale of everyone working on the production is low. Everyone is scared for their jobs in the future.”
Animation is one of Greater Manchester’s most globally connected creative strengths. Through MITIH we’ve spent the past three years supporting studios and freelancers – who produce exceptional, award‑winning work – to innovate and prepare for their future success. As so much of the sector depends on freelancers whose morale is clearly under pressure, we can see that many are carrying this success on increasingly fragile foundations. We are optimistic that the findings of the survey will help to shape collaboration across GM and ensure the animation sector’s voice continues to be heard through the new Creative Leadership Council and Freelancer Task Force.
Anthony Hatton, MITIH Programme Director
In response to the findings, the report outlines several recommended actions for GMCA to help stabilise the workforce and support the sector’s continued growth. These include formally recognising animation as a priority creative industry and embedding it within all regional screen, film, digital and creative strategies. The report also calls for animation representation on the Creative Leadership Council and the Freelancer Task Force, reflecting the sector’s heavy reliance on freelance labour, and recommends formalising the Greater Manchester Animation Industry Task Force as an advisory sub‑committee.
The survey highlights the need for any future Screen Office or Screen Fund to actively support animation alongside its focus on live‑action production. Suggested measures include early‑stage development funding for new animation IP, support for regional IP ownership, and increased promotion of Greater Manchester animation to national and international commissioners. The findings also underline the importance of addressing freelancer insecurity and ensuring animation workers are included in regional responses to automation and AI disruption.
Animation is a vital part of Greater Manchester’s creative economy, skills, innovation and our international profile. We welcome this important piece of research which helps us understand the characteristics and potential of the sector. Its recommendations will help inform how we strengthen our talent pipeline, support growth, respond to technological change and better evidence the sector’s economic impact.
Greater Manchester recently published a Creative Industries Sector Plan and through this we will continue dialogue with the animation sector to ensure the plan remains responsive to all subsectors. We want to build on our global reputation and support sustainable, long‑term growth across all parts of the creative industries.
Cllr Bev Craig, Leader of Manchester City Council and Greater Manchester lead for Economy, Business, and Inclusive Growth
Finally, the report recommends formalising support for key industry events such as Manchester Animation Festival and Motion North, positioning them as flagship gatherings that can help raise the region’s profile internationally.
The results will be shared and discussed this week at Animating Tomorrow, a two‑day industry summit taking place at MediaCity, Salford. The event will bring together studios, freelancers, commissioners and policymakers to explore the findings and their implications for the sector. Access to the full report is available here.