Derby continues to set the pace for foreign investment

Derby city centre

Foreign direct investment (FDI) into the East Midlands dropped to its lowest level in four years in 2019, according to new figures.

The EY 2020 UK Attractiveness Survey, which examines the performance and perceptions of Europe, the UK and its regions as destinations for FDI, shows that Derby and Nottingham ranked in the Top-20 best performing locations in the UK for FDI projects in 2019, placing 13th and 18th respectively.

However, despite the East Midlands attracting a decade-high number of new investments – opposed to expansion of existing projects, the overall number was at the lowest levels for four years.

Derby attracted the most inward investment with eight projects. Nottingham secured the second most with six projects. Elsewhere in the region, Chesterfield and Lincoln both had three projects each, Coalville and Corby had two and Northampton had one. In addition, Donington, Groveport, Kegworth, Ketton and Melton Mowbray all received investment for the first time with one project each.

In total, the region secured 39 FDI projects in 2019 – down by one year-one-year. Whilst this figure is lower than the region’s 2017 peak (43 projects), the region recorded its highest total for new projects (as opposed to extensions of existing projects) in a decade.

Like all other UK regions, the East Midlands saw the largest proportion of its investment (36%) come from the US. The second largest proportion of investment (8% each) came from Canada, Italy and the Netherlands.

The agri-food sector was responsible for the largest number of projects (seven) in the East Midlands for a second year running. This is in contrast to other UK regions where the digital sector was the most prevalent.

The digital sector – joint with transport manufacture – was responsible for the second highest number of projects at five projects each. This represented the highest number of digital projects this decade.

EY’s managing partner in the Midlands, Simon O’Neill, said: “It’s great to see Derby and Nottingham had a strong year for FDI in 2019 and that the East Midlands overall had a record year for new investments.

“When looking at the investments in more detail, it’s clear that whilst manufacturing is considered the backbone of the region digital is continuing to grow in strength. However, we must ensure this digital success continues to be shared equally across East Midlands as the region’s local economy continues to transform.”

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