The Midlands remained one of the UK\u2019s leading destinations for foreign direct investment (FDI) in 2025, holding onto its position as the country\u2019s third-largest region for inward investment despite a wider slowdown across the market.<\/p>\n
New analysis from EY\u2019s 2026 UK Attractiveness Survey shows the region secured 102 inward investment projects during 2025, down from 122 the previous year. Despite the decline, the Midlands still accounted for 14% of all UK FDI projects.<\/p>\n
The region also remained a major driver of employment, with inward investment linked to 5,970 jobs during the year, ranking second nationally behind London.<\/p>\n
Birmingham continued to strengthen its appeal to global investors, attracting 26 projects in 2025, up from 24 the previous year. That made it the third most successful city outside London for securing FDI, behind only Manchester and Edinburgh.<\/p>\n
While manufacturing remains a major strength for the Midlands, investment activity increasingly shifted towards service-led sectors in 2025.<\/p>\n
Business and professional services emerged as the region\u2019s strongest sector for inward investment, attracting 18 projects, while software and IT services also recorded growth with 14 projects. Transport manufacturing remained a key contributor, securing 16 projects.<\/p>\n
The US remained the Midlands\u2019 largest source of inward investment, accounting for nearly 15% of all projects. Germany, India and France were also among the region\u2019s strongest investor markets.<\/p>\n
The figures come against a challenging backdrop for the wider UK and European investment landscape. Nationally, UK FDI projects fell 14.4% in 2025 to their lowest level in a decade, while Europe recorded a 6.6% decline.<\/p>\n
Paul Brown, partner, Government and Public Sector at EY in the Midlands, said: \u201cThe Midlands remains a cornerstone of the UK\u2019s foreign direct investment landscape. While project numbers softened in 2025, the region\u2019s ability to retain its position as the UK\u2019s third-largest destination and second for FDI-related employment highlights the strength and resilience of its investment proposition.<\/p>\n
\u201cIt is particularly encouraging to see Birmingham continue to build momentum as one of the UK\u2019s leading cities for investment, alongside clear growth in sectors such as business services and technology. This reflects a broadening of the region\u2019s appeal beyond its traditional industrial base.<\/p>\n
\u201cLooking ahead, the Midlands is well positioned to capitalise on any improvement in investor confidence. The priority now is to convert strong fundamentals – including its skilled workforce, manufacturing heritage and growing innovation capabilities \u2014 into sustained growth in project volumes, particularly in higher-value and future-focused sectors.\u201d<\/p>\n
Neil Rami, chief executive at the West Midlands Growth Company said: \u201cAgainst a backdrop of declining investment across both the UK and Europe, the Midlands has demonstrated its resilience as one of the country\u2019s most competitive destinations for inward investment. Although project volumes have softened in line with wider market conditions, the region ranks as the UK\u2019s leading location for FDI-led employment outside London. With more than one in five UK FDI jobs secured here, the Midlands is punching well above its weight in driving national growth.<\/p>\n
\u201cOur unmatched scale, connected innovation ecosystem and deep talent pool make the region a compelling proposition for international investors. However, in an increasingly competitive global market, investment does not simply follow economic fundamentals. Sustaining growth will require continued targeted intervention, strong international partnerships and a clear, market-led proposition that aligns investor demand with local opportunities. That is how we will secure the next generation of investment, jobs and productivity gains for the West Midlands, wider Midlands, and indeed the UK.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"
It holds onto this position from previous years despite a wider slowdown across the market<\/p>\n","protected":false},"author":266702,"featured_media":2111796,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[53262],"coauthors":[127717],"class_list":["post-2111795","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business-news","tag-derbyshire","tag-featured-story","tag-leicestershire","tag-lincolnshire","tag-northamptonshire","tag-nottinghamshire"],"yoast_head":"\n