Region remains a magnet for inward investment

THE North West continues to be a magnet for inward investors with 27% growth in the number of inward investment projects in 2013, according to a key annual survey.

EY’s annual UK Attractiveness Survey ranks the region as the third most successful of the 12 UK regions in attracting FDI, and the lead English region outside London.

The North West trailed only London (380) and Scotland (82) last year, as the total volume of FDI projects in the UK as a whole rose by 15% to 799, the highest country total in Europe.

Securing 31 FDI projects, Greater Manchester was the most successful area of the North West in 2013. It was followed by Merseyside (10) and Cheshire (9), which attracted the largest project of last year; the expansion of Bentley Motors’ manufacturing facility in Crewe, creating 1,000 jobs. Lancashire attracted four new projects, while Cumbria attracted two.

After Bentley Motors, the largest projects in the North West in terms of jobs created during 2013 were investments by Tata Consultancy Services in Liverpool (300), Hinduja Global Solutions in Preston (250), Aldi in Bolton (100) and NXP Semiconductors in Stockport (100).

The North West was ranked fifth of the 12 UK regions for jobs created as a result of FDI projects in 2013, but saw its total decline 60% to 2,247 compared with a year earlier (5,572) – when the region secured more large projects in the 500-plus jobs bracket.

The results mean that, over the last decade, the North West ranks fifth of the 12 UK regions in terms of both FDI projects secured and jobs created via FDI.

Simon Allport, North West senior partner at EY, said: “Our findings cement the North West’s position amongst the UK leaders in inward investment and are testament to the region’s compelling offering to overseas corporates.

“This is underpinned by world class transport infrastructure, an established business services community and a strong talent pool.”

Manufacturing was the most popular sector in the North West for FDI projects last year, adding 24. It was followed by transport and communications (16), and finance and business services (11).

Mr Allport continued: “The North West has become a leading destination for a diverse range of manufacturers and, importantly, business services providers, which are increasingly driving job and wealth creation in the UK’s major cities.”

The Netherlands was the top source of FDI projects in the North West in 2013 with 13, followed by the US (12), Germany (9) and France (5). The region also secured five projects from India last year.

Mr Allport added: “Despite a strong 2013, the region can’t stand still. Greater focus on internationalisation will be fundamental to the North West’s future prosperity, so we should work to build stronger links with growing markets such as China, India and the Middle East, whilst maintaining our relationships in Europe.”