17 June 2009
Northwest remains the UK’s leading region for Foreign Direct
Investment outside of the South East
• 176 investment projects creating/safeguarding 11,436 jobs
in 08/09
• 220 jobs created or safeguarded every week
• 15 inward investment projects secured every month
The Northwest Regional Development Agency (NWDA) can reveal that
England’s Northwest is again the UK’s leading region for Foreign
Direct Investment (FDI) outside of London and the South East.
Figures released nationally today (17th June) by UK Trade and
Investment (UKTI) show that the number of inward investment
projects secured in the Northwest over the last financial year has
risen to the highest recorded number for the region, despite the
difficult economic conditions.
The number of jobs created/safeguarded remains strong too,
higher than anywhere else in the UK outside of London, with
significantly higher figures achieved compared to 2006 and 2007
levels, but a lower total compared to the record achieved last
year. Despite securing more foreign direct investment projects this
year than any other there has been a trend for these projects to be
smaller in size. Overall the figures far exceeded
expectations.
The Northwest has attracted 176 investment projects during
2008/09, an increase of 21 projects on last year and an increase of
64 projects on 2006/07.
These 176 projects have created or safeguarded 11,436 jobs, a
surprising increase of 4,000 on the 2006/07 totals, but 3,000 less
than the record breaking figures achieved during the buoyant
economic landscape in 2007/08.
FDI plays a very important part in the Northwest economy. A
study by DTZ for the NWDA in 2008 highlighted the value and
significance that FDI has in our region. The report found that over
17% of regional gross value added (GVA) is accounted for by foreign
owned companies operating in the Northwest and that economic output
(GVA) per worker is almost 50% higher in foreign owned companies
compared to the regional average.
Steven Broomhead, NWDA Chief Executive, said:
“These figures are a real lift from the doom and gloom stories that
have filled our media during this difficult global economic
downturn. FDI remains a fierce competition and we should be proud
of the work of our investment teams across the Northwest and
promote this good news as much as we can to encourage a culture of
business optimism for the year ahead.
The NWDA continues to work with partners across the region,
overseas and the UKTI, to develop the international competitiveness
of the region and we shall continue to focus our efforts on good
quality foreign investment.
We are delighted at the figures this year, particularly given
the economic conditions, but we are remaining realistic and we know
that the year ahead will also be challenging and we should be
prepared for this. However, I am also confident that we are
seeing some seeds of growth and we should all remain optimistic and
prepare for the upturn now.”
The collaboration between the NWDA and sub-regional partners,
including The Mersey Partnership, MIDAS, Lancashire Economic
Partnership, Cheshire & Warrington Economic Alliance and Invest
in Cumbria, has contributed to the impressive figures. The NWDA is
delighted with the figures this year, achieved despite the
difficult economic conditions which have developed across the
world, affecting investment decisions of all sizes, across the
globe.
The USA remains the key source of FDI into the Northwest,
followed by Germany, Switzerland and Japan.
Business Secretary Lord Mandelson, said:
“What the UK has to offer is one of the best and most productive
investment climates in the world. At a time when companies
across the world are tightening their belts and focusing their
investment in the sectors and countries where it will bring the
most benefit, these results are testament to the fundamental
strengths of the UK’s economy and will prove our ability to come
through this downturn stronger, and ready for success.”
Minister for Trade, Investment and Business Lord Davies,
said:
“International trade and investment is vital to the long term
economic health of the UK. Today's results illustrate strong
international confidence in the UK economy and the contribution of
this investment will be critical to our ability to compete and
succeed as a country in the future.”
Sir Andrew Cahn, Chief Executive of UK Trade & Investment
(UKTI) – the government’s international business development
organisation – who announced the results today, said: “Investment
is a significant, expensive and long-term decision for every
company. UK Trade & Investment plays a key role in supporting
the best international companies to invest in the UK and the UK
economy is reaping the rewards.
“True, the climate remains tough and the competition remains
strong. We need to work even harder to stay a global destination of
choice. We are committed to ensuring the UK remains the best place
to start and grow your international business – both for foreign
investors, and our home grown businesses.”
Nationally the RDAs have been involved in more inward investment
projects this year (637) compared to last year (601). And
although there has been a decline in the new jobs created in the
current climate, the RDAs have maintained a steady performance,
with a total of 18,326 new jobs being created as a result of inward
investment projects in which RDAs have been involved.
An increasing focus of the RDAs during 2008-2009 was on
delivering immediate and effective support to help companies
mitigate the impact of the downturn. This led to RDAs helping
a total of 18,028 people remain in employment as a result of jobs
being safeguarded through inward investment, almost 8% more than
last year.
The NWDA is playing a crucial role in response to the current
economic downturn, with a number of actions being taken to meet the
needs of businesses during these challenging times.
To keep updated on the range of support being offered by the NWDA
visit www.nwda.co.uk/supportingbusiness
For further information on business support in England’s Northwest
go to www.businesslink.gov.uk/northwest
Ends
Notes to Editors:
The 2008-09 Annual Inward Investment report is available at
http://www.ukinvest.gov.uk/investmentreport08/09
About UK Trade & Investment (UKTI):
UK Trade & Investment is the UK Government's international
business development organisation, supporting businesses seeking to
establish in the UK and helping UK companies grow internationally.
The services offered by UK Trade & Investment bring together a
network of business sector specialists and support teams across
England and in British diplomatic posts in some 100 markets all
around the world. UK Trade & Investment works with a wide range
of partner organisations in the UK, including other Government
departments, RDAs and the Devolved Administrations, Business Links,
Chambers of Commerce and trade associations. For more
information, visit the web site at www.uktradeinvest.gov.uk
Visit the online newsroom at http://www.newsroom.uktradeinvest.gov.uk
UK FDI Results- 2 June 2009
2008/09 1,744 projects
2007/08 1,573 projects
2006/07 1,431 projects
2005/06 1,220 projects
2008/2009 Results
• 1,744 investment projects - up 11% on
2007/2008
• 35,111 new job + 43,429 safeguarded jobs
• Total of 78,540 associated jobs (new &
safeguarded)
• Every day 215 jobs are created or safeguarded
• Every week 673 jobs are created
• Every day the UK attracts nearly 5 projects
For further information on the Northwest please contact Neil
Roscoe, Senior Press Officer on 01925 400232 or mobile 07980 713282
or neil.roscoe@nwda.co.uk
For more information (Nationally) contact Fiona Cameron, UK
Trade & Investment, on 020 7215 8034 or 07525 126121, fiona.cameron@ukti.gsi.gov.uk