And FDI creates hundreds of jobs across the West Midlands
BUSINESSES in the Black Country, Coventry & Warwickshire and The Marches area have all benefitted from millions of pounds of direct foreign investment, latest figures have shown.
The figures from UK Trade & Investment show that in the Black Country investment by foreign-owned businesses over the past 12 months has been one of the chief factors in a 310% increase in new jobs.
There were 457 new jobs attributed to foreign direct investment (FDI), well up on the 2013/14 figure of 146.
The picture was a similar one in Coventry & Warwickshire, where the advanced manufacturing and digital technology sectors were the principal beneficiaries of FDI.
UKTI’s Inward Investment Report for 2014 to 2015 shows The Marches LEP area was also successful in securing FDI, with the number of projects attracting investment increasing to 16 over the past 12 months. The investments created 302 jobs and safeguarded a further 250.
Stewart Towe, chair, Black Country LEP, said: “The figures are testament to the ongoing work that the Black Country LEP is doing, through Invest Black Country and partners, to promote the Black Country as an investment destination.
“Our sector strengths, coupled to the effort we have put into raising the profile of the area, mean that we are at the head of a growing pipeline of enquiries in the automotive, aerospace and construction technologies sectors.
“The figures continue to highlight that the Black Country, alongside our partners in the Midlands, is fast becoming the investment hotspot in the UK, and a real contender to London.”
Wayne Langford, Head of Invest Black Country, said: “Not only has the Black Country attracted investment that created 457 jobs last year, but we have also seen a considerable increase in awareness of the Black Country amongst overseas businesses and agencies. This has led to a strong pipeline of potential FDI projects that Invest Black Country is now working, with our partners, to secure.”
The UKTI Inward Investment Report reveals 468 projects across the UK were supported in advanced manufacturing.
Other sectors where the UK is performing strongly are financial and professional services, energy and infrastructure and creative industries and ICT – an area where Coventry and Warwickshire is strong with the games development cluster in Leamington, Warwick and Southam known as ‘Silicon Spa’ amounting to more than 30 studios directly employing 1,200 people.
The London Taxi Company was also mentioned in the annual report for its £250m investment in a new plant at Ansty Park for the manufacture of a hybrid version of its famous black cabs.
Supported by the Regional Growth Fund, this investment by the Chinese owners of the London Taxi Company, Geely, will create up to 1,000 new jobs.
Dr George Gillespie, board director of the Coventry and Warwickshire LEP and chief executive officer of MIRA in Nuneaton, said foreign investment continued to strengthen the UK’s competitiveness in key industries.
“Advanced manufacturing and engineering remains a major strength for Coventry and Warwickshire as we develop a growing reputation for being a national and international hub in this specialist area,” he said.
“The rapid growth in this sector underlines the UK has all the right ingredients to attract foreign trade and investment as highlighted by the plans announced by Geely which is the first green-field investment of its kind in the UK by a Chinese automotive company.
“The report shows research and design is generally funded through foreign investment and this is vital to increase productivity and remain competitive in the global economy.”
Commenting on the level of FDI in The Marches, Gill Hamer, a director of the Marches LEP, said: “The Marches has enjoyed a significant uplift in the levels of overseas investment in the last year with 16 successful projects being confirmed. This is an increase from 12 in the previous year.
“We have witnessed particular interest from businesses within advanced engineering and manufacturing, as well as food and drink production, which plays well to the LEP’s key business sectors. We have also found that the region is of particular interest to investors from across Europe, the Middle East and Asia.”
The UKTI report shows that the UK maintained its position as the number one destination for FDI in Europe after attracting a record number of FDI projects.
