Yorkshire and the Humber sees significant boost in Foreign Direct Investment

Yorkshire and the Humber recorded 83 Foreign Direct Investment (FDI) projects in 2015, which is more than in any year since 1997, according to the EY UK Attractiveness Survey.

The 83 projects represent an increase of 66% on 2014’s figures when the region attracted 50 projects.

31 FDI projects were recorded in Leeds in 2015, whereas the remaining projects were spread widely across the Yorkshire and the Humber region: eight projects located in Bradford; seven in Hull; seven in Sheffield; six in Barnsley; four in Wakefield; and three in Rotherham.

Stuart Watson, Yorkshire and Humber senior partner at EY said: “The work that has taken place to position the whole of Yorkshire & Humberside as a strong investment location in the global marketplace is starting to pay off.

“These figures show that the international investment community has seen the potential in the region with its access to the right skills, infrastructure and strong supply chain networks.”

While the US dominated in all UK regions, the next most signficant sources of investment for Yorkshire and the Humber were India, the Netherlands and Germany.

India was the second biggest origin for FDI projects for Yorkshire and the Humber in 2015, compared to fifth by number of projects for the UK as a whole. China, however, which was ranked 3rd in the UK as a whole didn’t rank in the top nine in Yorkshire and the Humber.

Strong growth in the number of investments secured by Yorkshire and the Humber were reported from the machinery and equipment, chemicals, electrical, financial services and food sectors. Siemens UK in Humberside, Amazon.com in South Yorkshire and Poundworld in West Yorkshire represented some of the largest FDI projects in the region, creating around 1150 new jobs between them.

Manufacturing was also attracted substantial investment in 2015. Last year, the Yorkshire and the Humber, North West and North East regions occupied three of the top five positions in terms of attracting manufacturing investments in the UK (positions 2, 4 and 5 respectively).

Stuart added: “The UK attracted more manufacturing projects than Germany for the second year running, underpinned by the strong performance of the North. But there is still more market share to be had. We need a more clearly articulated and ambitious manufacturing strategy. Investors in this sector particularly highlight how important infrastructure, especially roads, is when deciding where to locate.

“Improving transport links throughout the North is particularly important for achieving economic growth. The groundwork for this transformation is now taking place, and recent developments such as the establishment of Transport for the North committee and the development of the Northern Transport Strategy should serve to provide clear ideas and a unified voice for advancing the North’s transport investment priorities with the Government.

“The demand for good transport infrastructure makes projects such as HS3 and the electrification of the transpennine rail route are all the more essential, as they will bring better connectivity within the region, reduce logistic times, and could expand the catchment for skilled labour.”

International investors who are aware of devolution are broadly positive towards but only 38% said they know it’s happening, meaning there is still a job to do to raise overall awareness, and therefore interest, in the Northern Powerhouse and its capabilities.

Stuart concluded: “The concept of a Northern Powerhouse has undoubtedly helped to improve the overall attractiveness of the region, but in order that we see sustained benefits flow from this, it will need to remain a key priority consistently for the medium term if we are to realise the full economic benefit from rebalancing the economy.

“In the meantime, we need to continue to encourage investors to look beyond London and see the opportunities available to them across Yorkshire & Humberside. That means pulling together, across the whole of the North, to demonstrate our strengths and capabilities to the world.”

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