The West Midlands economy is soaring – the region is a bright economic hotspot drawing the attention of businesses worldwide.
A combination of strong economic sectors, the Business and Tourism Programme, the Commonwealth Games and the efforts of the West Midlands Growth Company – the region’s official investment promotion agency – have helped draw more companies than ever towards the West Midlands.
UK Foreign Direct Investment Figures 2022-2023
The Department for Business and Trade (DBT) publishes the official FDI figures annually and has done so since 2016. The statistics chart the changing economic landscape of the United Kingdom.
Overall, the West Midlands region bucked the trend of year-on-year decline seen across the country, landed more FDI projects than Scotland and Wales combined, and saw more growth than London.
More FDI Projects than Scotland and Wales Combined
The FDI figures for 2022/23, the 7th annual figures released, clearly show that the West Midlands is now the UK’s leading regional location for Foreign Direct Investment. Across the year, the West Midlands landed 181 investment projects (DBT).
This totals more than Scotland and Wales combined and puts the region at the head of the country, only outperformed by London.
The 181 West Midlands projects represent over 10% of the total amount landed in the UK. The region’s sector strengths in Advanced Manufacturing, Mobility, Low Carbon, BPFS, Gaming and Tech have proven irresistible to companies looking to take advantage of everything the region offers.
FDI Employment Bucks National Trend
The large number of projects landing in the West Midlands generated more local jobs than ever before. FDI projects that began operating in the West Midlands last year generated employment for 8,252 people (DBT).
This is the second-highest number of jobs created in a financial year from FDI for the region, surpassed only by the 2017/18 financial year, which saw 9,424 new jobs. Since the DBT released the first FDI figures in 2016, 43,187 jobs have been created in the region by international investment projects (DBT).
While the South East region has had a higher number of projects land in the six years of the DBT’s reported figures, the West Midlands has consistently generated more jobs per year from FDI, demonstrating a large and positive impact on the general population (DBT).
FDI Growth Surpasses London
The last 12 months have been a record-breaking year for the West Midlands. The Commonwealth Games and the Business and Tourism Programme have undeniably impacted the economic landscape, generating opportunities and putting our cities, towns and the people who live here on the global stage.
The region not only broke records with the number of FDI projects landed but by how much growth it has seen. The financial year of 2022/23 represents the largest year-on-year growth in West Midlands FDI projects history (DBT).
The year-on-year increase of 26.6% is greater than all previous years for the region and far surpasses the growth seen across the country.
Overall, year-on-year FDI projects in London rose by 18.9%, while the national total saw an increase of 4%, showing just how far the West Midlands has outstripped the rest of the country (DBT).
The story is similar when looking at generated jobs. The West Midlands had a growth of 48.1%, London saw an increase of 13.9%, and the UK saw a decrease, with 6.1% fewer jobs being generated compared to 2021/22 (DBT).
West Midlands Growth Company Records Best-Ever FDI Projects and Jobs
The West Midlands Growth Company (WMGC) is the region’s official investment promotion and economic development agency. It works to attract investment to the West Midlands, helps entrepreneurs start a business in the region, and helps companies establish a foothold in the UK market.
WMGC has been working towards this goal since it was established in 2017. During the last financial year, it recorded its best-ever FDI results for projects and jobs (WMGC).
Leveraging the Commonwealth Games, the advice of sector experts, and initiatives like the Global Growth Programme, WMGC brought 57 foreign investments into the region. This exceeded expectations, representing a year-on-year increase of 159% (WMGC).
Coupled with this, a reported 3,655 jobs were created in relation to FDI projects brought into the West Midlands with the help of WMGC, a increase compared to the previous financial year (WMGC).
Last November, a delegation from the UK visited India in one of the largest trade missions in the company’s history. Through this and other efforts, WMGC helped land 15 investment projects from India in the last year alone (WMGC).
This helped India to overtake the USA as the West Midlands’ leading source of FDI, with tech-led investments into the region representing a prominent trend.
Experiencing Success with a West Midlands Investment
Many companies have excelled by investing in the West Midlands, and many have made the move with help from the West Midlands Growth Company.
The Disposal Company
The Disposal Company originates in Jaipur but opened operations in the West Midlands so that they could benefit from the drive to offset carbon and meet the local target to be zero-carbon by 2041.
WMGC was able to help them with everything from registering the company to taxes to setting them up with local business mentors. As part of the Global Growth Programme, the Disposal Company were able to take advantage of extra benefits that made setting up in the UK easy and allowed them to ace their strategy and goals.
Goldilock
Richard Bate of Goldilock spoke to us and described just why the West Midlands was the perfect location for the cybersecurity company.
“The Wolverhampton Science Park was really key to where we wanted to establish our basic business, and also this fully fledged R&D facility that we have. It was also within proximity of the University of Wolverhampton and all the cyber talent that’s associated with it.
“Now the West Midlands has given us real unparalleled access to industry and talent and on a very practical and affordable level – whilst being in quite easy reach of London and the ecosystem that comes with London.
“The West Midlands growth company really has also kept us in contact with significant events taking place in the region as well. And as a start-up with a very limited resource, this has created quite valuable networking opportunities for us whilst also being able to amplify our voice in quite a crowded marketplace.”
Continued UK Market Success in the West Midlands
The last few years represent one of the most turbulent times in recent history. Despite this, the UK, particularly the West Midlands, has proven to be an attractive choice for international investors.
The West Midlands offers many benefits to companies operating here, from a network of economic business leaders, initiatives like the Global Growth Programme, accelerators and incubators that help companies grow and operate faster, and the business opportunities generated by our industry sectors.
The West Midlands Growth Company helps companies enter the UK market, offering bespoke support.