Midlands Engine generates 8% increase in overseas investment

Midlands Engine generates 8% increase in overseas investment
Simon O'Neill

The Midlands Engine recorded its highest ever number of Foreign Direct Investment (FDI) projects in 2017 from 130 to 14o, creating over 10,000 jobs, the biggest increase in employment from this source in the last ten years, according to EY’s 2018 UK Attractiveness Survey.

FDI in sales and marketing brought the biggest increase by sector – over 50 new projects – with manufacturing just behind with 48 projects, which is the highest number of such investments in the last decade and up by 55% on 2016.

Fiona Piercy, Midlands Engine Programme Director said: ” We welcome the news of record recent investment and job creation in the Midlands and our unique partnership is working to put robust plans place that will bolster this performance further to create a better and more balanced economy.”

FDI into Birmingham was greater than to other Midland locations, but down by 34% on 2016, while FDI in Solihull increase by 40% on the 2016 figures, and Coventry enjoyed a 60% increase in FDI, making it 6th in the overall UK league table for FDI.

Some overseas investors have expressed concerns about the impact of Brexit, causing a decline in FDI in sectors like financial services and logistics.

Piercy added: ” The Midlands Engine Vision for Growth sets out priority areas for investment in infrastructure, trade and investment, innovation and enterprise that will enable the Midlands to add over £50bn to the Midlands and UK economy , bu helping to drive Britain’s post-Brexit growth.”

Current estimates put the total value of the West Midlands economy at around £218bn.

Simon O’Neill, EY’s Managing Partner in the Midlands said: “The UK’s FDI performance shows an economy in transition, influenced by uncertainty from Brexit and the force of technological change. in 2017 a swell of digital projects flowed into Europe, changing the face of FDI and bringing dynamic new businesses to the continent. Digital projects increased by 33% across Europe- three times the rate of overall market growth – and 36% in the Midlands, but only 22% across the UK as a whole.”

Across the country London, the Northern Powerhouse, and the southern region of England attracted most FDI.

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