Foreign investors head to region as exports rise

THE ‘Midlands Engine’ saw its highest level of foreign investment in a decade, according to new research.

There was an eight per cent increase in 2017 compared with the previous year, up from 130 to 140 projects.

But according to EY’s 2018 UK Attractiveness Survey, the Midlands Engine lags behind London (459 projects), the Northern Powerhouse (235 projects) and the southern region of England (203 projects).

The number of Midland jobs secured as a result rose 18 per cent compared to the previous year, up from 8,990 to 10,606, and marks the highest number of jobs secured in a year the last decade.

Simon O’Neill, managing partner at EY in the Midlands, said: “The Midlands Engine vision for growth is attractive on the international stage and it’s positive that we are seeing it translate into record levels of investment across a broad spectrum of sectors and importantly creating jobs.

“Although projects recorded in Birmingham were down 34 per cent year on year in 2017, the city still ranks in fourth position in the top 20 inward investment locations in the UK. The fact that Coventry, Solihull and Nottingham also make the top 20 as significant locations attracting serious inward investment is also major cause for celebration.”

Birmingham continued to dominate the region in terms of attracting foreign direct investment (FDI) by securing 21 projects in 2017, although this was down 34 per cent on 2016. Birmingham ranked fourth in the top 20 locations in the UK, behind London, Manchester and Edinburgh.

Coventry had a more successful year than in 2016, by increasing its ranking to joint sixth place with a 60 per cent increase in projects. Sales and marketing topped the investment list with 50 projects followed by manufacturing with 48 – the highest number of such investments recorded in the decade and up 55 per cent on 2016.

Meanwhile, exports continued to grow across the West Midlands, according to new government figures. The region posted a 7.6 per cent rise to £33.7 billion in its exporting activity for the year ending March 2018, according to the HMRC.

That outstripped the national average of 6.5 per cent growth in exports of goods across England which hit £244.6 billion in 2017/18.

The research also showed that, during the first quarter of 2018, the West Midlands was home to more than 9,680 exporters, an increase of 2.5 per cent year on year, with an average value of £913,000 per exporter.

The largest sector in the West Midlands was machinery and transport at £6.4 billion in the first quarter of 2018. This figure makes up 72 per cent of the £8.8 billion in total exports for the region.

The largest market by region for the West Midlands is the EU at £3.9 billion and by country it is North America at £2 billion.

Ian Harrison, head of exports for the Midlands at the Department for International Trade, said: “The latest HMRC figures continue to show a growing appetite for UK goods in overseas markets and many businesses across the West Midlands are already reaping the rewards of trading with global customers.

“Figures outlined in the latest data reflect the ambitions we have seen first-hand.

“Businesses looking to start their exporting journey, or expand overseas, should be encouraged by this continued positive picture we have seen so far this year.”