West Midlands achieves decade high for inward investment

THE number of investment projects continued to rise sharply in the West Midlands in 2015 for the second successive year.

The region welcomed 92 foreign direct investment (FDI) projects last year, up 46% on 2014’s 63. In 2013 the West Midlands had 47 projects, which was also the average for the eight-year period from 2006.

The projects counted include both investments by businesses new to the region and new projects by businesses that are already here.

Eight Midlands projects reported they would create 300-plus jobs, including manufacturing investments by Jaguar Land Rover, Geely and Brose Fahrzeugteile.

Analysis by EY, for its annual UK Attractiveness Survey, found the FDI projects created 7,134 jobs in the region, with more than three-quarters of those jobs being created in the manufacturing sector.

Sara Fowler, senior partner at EY in the Midlands, said: “It’s been another exceptional year for the West Midlands with record inward investment in 2015, bringing more jobs, and contributing to the strong performance of the Midlands Engine.”

Nationally, the UK attracted 1,065 FDI projects, the first time it has secured more than 1,000 projects in the 20 years since the survey began.

Three of the UK’s 12 regions saw a decline in the number of projects secured during the year – the South East of England was down 22%, Northern Ireland dropped 62% and Wales had a 2% fall.

Ms Fowler added: “2015 was indeed the year of the UK’s regions and cities. The geographic mix of inward investment last year strongly suggests that the UK is using FDI very effectively to help rebalance its economy, with almost 90% of the UK’s total FDI growth coming from the regions outside of London and the South East.

“Investors are voicing solid support for the UK’s agenda to devolve power to a regional level, it now seems devolution is starting to work and foreign investors are helping rebalance economic activity more evenly across the country.”