West Midlands driving UK’s foreign investment and jobs

Over the past year, more new jobs were created through foreign direct investment (FDI) in West Midlands than any other region outside London, according to the DIT’s figures. A total of 171 new FDI projects were recorded during 2017/18, with the number of associated jobs reaching 9,424. This represents around a quarter of all jobs in England (excluding London) created through foreign investment (34,995), a 13% increase in FDI projects and a 43% increase on the number of jobs recorded compared to the previous year.All other UK regions witnessed a decrease on either one or both counts.  

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'Inclusive, diversified economy'

Commenting on the official figures, Neil Rami, chief executive at the West Midlands Growth Company, which attracts regional investment and encourages tourism to the English region, said: “Our investment strategy for the region is centered on supporting an inclusive, diversified economy and attracting quality projects that yield the greatest employment opportunities."These latest figures from DIT represent a huge vote of confidence in our approach and how the West Midlands is perceived internationally. Foreign companies are investing here as they to look to capitalise on the flourishing network of innovation hubs, R&D facilities and enterprise zones that underpin the West Midlands’ success.“The region’s leading advanced manufacturing supply chain includes heavyweights such as JLR, Guhring and Rolls-Royce, while the strategic central location of the West Midlands and its world-class talent pool have fostered both the UK’s largest tech & digital and professional services sectors outside the capital”.Among new investors in the West Midlands are New York-owned technical testing company Exova in the Black Country and Austrian manufacturer Benteler Automotive, a Coventry and Warwickshire investment.Engineering, construction and project management company Bechtel and US hydraulics manufacturer HydraForce – both US firms – also newly invested or expanded into the region.

Infrastructure improvements attracting investment

As Relocate magazine reported earlier this year, the region is receiving significant infrastructure improvements, with HS2 – the high-speed rail link between London, Birmingham, Crewe and Manchester scheduled to open in 2026 – and road investments. These latest figures also compound rising economic output per head in the region.Paul Gibbs, Bechtel’s managing director of UK infrastructure, said:“The West Midlands is investing at an unprecedented level in its infrastructure, with major schemes such as HS2 underpinning the region’s growth potential."By locating here, we are ideally positioned to capitalise on these opportunities and pursue further projects across the region’s highways, rail and aviation markets, working with Highways England, Network Rail and key infrastructure organisations. We were already working closely with HS2 Ltd at their Birmingham headquarters, so to have a physical presence nearby made complete sense.”

Attractive places to live and work

Quality of life and the skilled workforce are also key success factors for the region and the companies investing here. Tony Brown, managing director at HydraForce, Europe, says: “Headquartered in the US, HydraForce’s facility in the West Midlands has been the company’s single biggest investment to date. With the organisation creating an additional 216 local jobs and achieving a global turnover of $378m in 2017, we’re undoubtedly reaping the rewards of this investment. “Having access to a talent pool skilled in technical manufacturing is of central importance to us. Here in the West Midlands we have essential strong links with local higher education institutions and well-established apprenticeships and undergraduate programmes”.At a national level, the US, Germany and China led the way as the largest sources of investment into the country. The UK’s environment, infrastructure & transportation sector attracted the most FDI, followed by the food & drink sector.For related news and features, visit our Enterprise section. Find out who won in this year's Relocate Awards. Relocate’s new Global Mobility Toolkit provides free information, practical advice and support for HR, global mobility managers and global teams operating overseas.Access hundreds of global services and suppliers in our Online Directory

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