West Midlands remains foreign investment hotspot
Despite global economic uncertainties posed by the coronavirus pandemic, the West Midlands has once again emerged as the UK’s leading location for attracting foreign direct investment (FDI) outside London and the South East.
It is the fourth consecutive year that the region has held that spot.
A total of 145 FDI projects landed in the region during the 2020-2021 financial year, official data from the Department for International Trade shows.
Attracting more projects than Scotland and Northern Ireland combined, the West Midlands holds the third largest share of all UK regions and is responsible for 9.4 per cent of the UK’s total FDI.
Jobs created by overseas investors during the same period totalled 4,443, bucking the declining national trend to mark a 14 per cent increase in employment from the previous year.
Matt Hammond, chairman of the West Midlands Growth Company – the region’s official investment promotion agency and Midlands region leader at PwC, said: “The last year has tested economies and societies around the world.
"Alongside the health crisis there has been an economic crisis which has been felt keenly in the West Midlands. That said, these latest figures show that despite the storm of uncertainty surrounding business confidence, our region remains a firm favourite with investors at home and overseas.
"This sustained track record of popularity – during such unprecedented conditions – is testament to the strong foundations of industry, innovation, world-class academia and highly-skilled talent that underpin our economy and continue to resonate with organisations across the globe.”
Automotive and software services were among the region’s top performing sectors, alongside food and drink, life sciences and business services.
Notable investments from the last 12 months include a new specialist headquarters in Portersfield Road, Cradley Heath, for German-owned sustainable engineering firm thyssenkrupp.
Billy Kingsbury, chief operating officer at thyssenkrupp UK, said: “Representing thyssenkrupp’s only UK investment during the pandemic, our new fabrications facility in the West Midlands brings together two essential divisions of the company – materials and aerospace – to create a highly productive and specialist UK headquarters.
"The Sandwell-based site is a strategically important centre for our materials-as-a-service capability, supporting the carbon-neutral production of lightweight, bolt-on balconies, where we utilise cutting-edge, off-site construction techniques to drive forward a more sustainable future for urban economies, internationally.
"We have exciting plans to further expand our carbon-conscious production expertise in Sandwell and look forward to sharing more details in due course.”
India, along with the US and Germany, ranked as the West Midlands’ leading sources of FDI throughout 2020. .
Neil Rami, chief executive of the West Midlands Growth Company, added: "As well as reinforcing the West Midlands’ consistent stronghold on inbound FDI, these figures sharpen the case for matching the region’s international success with devolved investment autonomy.
"If we are serious about levelling up our economy and indeed Britain’s declining share of global foreign investment, we must decentralise the country’s FDI levers away from London and devolved nations exclusively, and towards globally appealing, highly productive regions like ours.
"As overseas competition heats-up post-Brexit, now is the time to unleash the West Midlands' investment potential – DIT’s latest ranking is clear testament to that.”
