The West Midlands secured 181 FDI projects in 2022/23, surpassing Scotland and Wales combined and representing over 10% of UK’s total foreign investment. You’ll find the region achieved a remarkable 171% year-on-year growth rate, the highest in the UK, while creating 8,252 new jobs (a 48% increase). The West Midlands Growth Company’s strategic initiatives, boosted by the Commonwealth Games, helped the region rank 14th among 259 European regions for FDI performance. Further exploration reveals how this industrial heartland continues defying national trends.
The West Midlands has emerged as the UK’s leading region for foreign direct investment, securing an impressive 181 FDI projects in 2022/23. This remarkable achievement surpasses the combined total of Scotland and Wales, accounting for over 10% of the UK’s total FDI wins.
You’ll find the region has outpaced traditional investment hotspots like London and the South East regarding growth rate. The region recorded a staggering 171% increase in FDI projects compared to the previous year, the highest growth rate in the entire UK.
What’s particularly remarkable is that while the nation overall experienced a decline in FDI-related employment, the West Midlands bucked this trend with a 48% increase in jobs created through overseas investment. These investments created 8,252 new jobs across the region in 2022/23.
The West Midlands Growth Company (WMGC) has played a vital role in this success, achieving its highest-ever performance in stimulating inward investment. The Commonwealth Games Business and Tourism Programme greatly boosted the region’s international profile.
In a European context, the West Midlands ranks as the 14th best performing region for FDI out of 259 regions. Though 2024 saw a 32% decline to 86 projects, the region maintained its high status, tying with North West England as the joint third best UK regions for inward investment after London and Scotland.
Birmingham specifically has emerged as a major player, ranking joint-third among UK cities outside London for FDI projects, alongside Edinburgh with 24 projects. The city’s strong performance reflects the broader regional strength in attracting international capital.
Investors are particularly drawn to Birmingham’s thriving economy with £29.1bn GVA, the largest of any city outside London, making it an attractive alternative to the capital.
For the first time in 2022/23, the West Midlands surpassed the South East England region for FDI projects. The success spans diverse sectors including manufacturing, technology, and advanced engineering, building on the region’s strong industrial foundation and innovation capabilities.
Strategic initiatives like targeted in-market representation for North American investors and improved lead generation have clearly paid dividends in establishing the West Midlands as a premier destination for global investment. India has recently emerged as the leading source of FDI for the West Midlands, surpassing the United States as foreign investors continue to recognize the region’s potential.
Frequently Asked Questions
How Does the Investment Surge Affect Local Job Markets?
The investment surge creates substantial job opportunities in your region.
You’ll see nearly 7,000 new positions from last year’s 72% increase in overseas projects. This growth spans various sectors, raising demand for skilled workers and graduates.
You’ll benefit from improved wages, especially in high-value industries like tech and advanced manufacturing.
The expansion generates multiplier effects, supporting additional jobs in logistics, retail, and professional services beyond the initial investments.
What Sectors Attracted the Most Foreign Investment in West Midlands?
The automotive and advanced manufacturing sector led foreign investment in the West Midlands in 2024, attracting 15 notable FDI projects.
You’ll find this was the region’s top investment sector, followed closely by the agri-food industry.
Life sciences, digital technology, and financial services also drew substantial foreign capital.
The West Midlands’ manufacturing infrastructure, skilled workforce, and central location make it particularly appealing to global companies seeking a strategic UK base for their operations.
Which Countries Are the Top Investors in the Region?
The top investors in the West Midlands region are the United States, Germany, Japan, France, and the Netherlands.
You’ll find the U.S. leads in foreign direct investment, particularly in technology and innovation sectors.
Germany focuses on advanced manufacturing and engineering investments, while Japan commits considerably to automotive and technology projects.
French investors contribute mainly to financial services and manufacturing, and Dutch companies prioritize logistics, transportation, and tech startups that benefit from the region’s strategic location.
How Sustainable Is This Investment Growth Long-Term?
Your region’s investment growth shows strong sustainability markers.
You’re anchored by diverse sector strengths across manufacturing, life sciences, and digital technologies. Despite UK-wide FDI declining 12%, your area maintains robust performance.
Long-term sustainability depends on addressing challenges like shifting global capital flows and regulatory uncertainty.
Your continued focus on innovation, skills development, and clean growth technologies will be essential to maintaining investment attractiveness in a competitive global environment.
What Government Incentives Contributed to Attracting Foreign Investment?
You’ve seen several government incentives that attracted foreign investment to the West Midlands.
The £500 million from the Deeper Devolution deal supports housing and regeneration projects.
The West Midlands Investment Zone offers business rate retention schemes and tax breaks in strategic sectors.
The region’s £150 million Investment Opportunity Fund aims to boost private investments.
These incentives, combined with the Industrial Strategy‘s focus on innovation and skills development, have created an attractive environment for international investors.
