The legal and accountancy professions are expected to enjoy the greatest expansion but banking and insurance could see a decline in their fortunes.
Overall, there is a "striking sense of optimism" in the region, says the Greater Manchester Financial and Professional Services Sector report, commissioned by private firms, pro.manchester and the inward investment agency MIDAS.
The sector has seen job numbers increase 23.3 per cent since 2000, from 176,800 to 218,000, and its value to the economy grow from é3.5bn in 1998 to é8.4bn.
By 2015, the number of people working in the sector is expected to rise by a further 58,000 and its value to the economy top is forecast to top é10bn.
The report says Manchester and its surrounding areas is the largest regional centre for financial, professional and legal services outside London.
Law
It looks at the prospects for firms in fields such as law, accountancy, stockbroking, private equity, banking, property and insurance.
Although the strong growth seen in recent years is predicted to continue, there are some major challenges and potential difficulties ahead, says the report.
On the positive side, it says there is a striking sense of optimism. Manchester is recognised as a "city of cool" and boasts a string of major developments. Its main assets include the airport, universities and the quality of the labour force, and it is home to major players in the financial and professional services sector such as the Co-op, Royal Bank of Scotland, Barclays, Bank of New York, the Big Four accountancy practices and top law firms.
Edward Pysden, a partner at Eversheds Solicitors who helped draft the report, said: "The development of Spinningfields financial district, the success in attracting the Bank of New York and the potential for spin-out demand for the professional services if the BBC relocation to Manchester goes ahead, illustrates the strengthening market."
However, the report identifies some significant hurdles which must be overcome if the sector is to achieve its growth aspirations, including attracting and retaining graduate talent.
Off-shoring
Uncertainty surrounds the insurance and banking sectors, which could suffer job losses in the face of off-shoring, increased automation and changing consumer habits, especially the increase in internet transactions.
Some insurance firms in the city could cut staff numbers by 50 per cent as more activities are transferred to India and elsewhere, the report warns. It forecasts the world of insurance will see no substantial growth over the next 10 years.
Growth in banking will depend largely on the success of the region's corporate sector. There could be a fall in back-office staff numbers as a result of off-shoring, automation and changing habits. The report also highlights a concern over skills shortages.
Expansion will continue in the legal field, and a spate of mergers is likely, says the report. It adds: "Firms dealing with the corporate end of the market will get richer, and smaller firms will struggle to survive. There will be fewer bigger players getting the cream of the work and middle ground firms may also struggle."
Measures
It recommends a series of measures, including a campaign promoting Manchester outfits to FTSE 250 firms.
Manchester is well-represented and well-served by accountants and the report says all firms are experiencing growth and expect this to continue. Top-tier practices are anticipating rapid expansion but the report predicts consolidation in the mid-tier, with scope for more boutique and niche operators.
The sector's growth and performance is dependent on the general health of the economy, it adds, and warns that recruitment and the retention of talent is a "clear potential obstacle".
It also says that the calibre of graduates is a problem, with a lack of commercial skills and basic business awareness.
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