Member Article

Jobs created by foreign investment in Yorkshire increase by 150% despite year-on-year decline in projects

The total number of jobs generated as a result of foreign direct investment (FDI) projects in Yorkshire increased by over 150% to 955 in 2013 compared to a year earlier (380), according to EY’s annual UK Attractiveness Survey.

However, the number of FDI projects secured by the region fell from 21 in 2012 to 20 last year, representing the lowest total of all 12 UK regions analysed.

Yorkshire was one of five UK regions to record a year-on-year decline in FDI projects in 2013, alongside Wales (-23%), the South East (-15%), the North East (-12%) and the West Midlands (-6%).

London (380), Scotland (82) and the North West (56) were the top UK regions by volume of FDI projects secured last year, helping the total number of projects in the UK as a whole rise 15% to 799, the highest country total in Europe.

The results mean that, over the last decade, Yorkshire ranks 10th of the 12 UK regions in terms of FDI projects secured and lies in last place (12th) in jobs created via FDI.

David Buckley, senior partner at EY in Yorkshire, said: “While a three-fold increase in jobs as a result of FDI illustrates that the quality of investments in Yorkshire is improving, the marginal decline in the number of projects last year from what was a very low base in 2012 highlights the continued need to re-focus support on the region’s global competitiveness.

“While some areas grew FDI levels significantly, total projects in the English regions – excluding London and the South East – were still 20% lower in 2013 than 2010, when the regional development agencies were abolished. The rest of the UK is at risk of being overshadowed by London, which accounted for nearly half of all investments in 2013.

“The fact that Yorkshire is in last place in the UK regions for foreign direct investment should be an alarm bell. What are others doing that we are not?”

“The region’s pre-eminent cities – none of which featured in the UK top 10 for FDI projects secured in 2013 – must do more to articulate their benefits to attract important business services projects, which are increasingly driving high levels of employment.”

Manufacturing was the dominant sector in Yorkshire in terms of volume of FDI projects last year, adding 13. Finance and business services, and transport and communications were the second most popular industries, each securing two projects.

Germany was the top source of FDI projects in Yorkshire in 2013 with four, followed by the US (3) and Sweden (3). The region also secured investment from organisations based in Japan and India, but has failed to attract a project from China since 2004.

This was posted in Bdaily's Members' News section by Clare Burnett .