Region secures record number of foreign investments

The region as a whole saw 111 foreign direct investments, with Birmingham unsurprisingly landing the lion's share with 36.

Shropshire garnered a handful of deals, with two coming in Telford and one in Shrewsbury – matching some larger towns and cities such as Wolverhampton, which had two, and Stoke, Walsall and West Bromwich, which had one each.

According to accounting giant EY’s latest annual Attractiveness Report, in 2016 the majority of UK regions saw an increase in projects, with just four seeing a decline when compared with the previous year – including Wales.

However, investors predict a decline in the UK’s future attractiveness as a destination for foreign investment.

Sara Fowler, senior partner at EY in the Midlands said: “It’s been another outstanding year for inward investment, with the West Midlands now the third best performing UK region for attracting FDI.

"The implementation of the Midlands Engine strategy should serve to attract more businesses and skilled people to the region, which in turn will boost employment and productivity."

The majority of investment in the region originated from Europe, with 61 projects coming from European countries.

On an individual country basis, the USA was the biggest investor in the West Midlands with 23 projects, followed by Germany with 21. In total, the FDI secured in the West Midlands was generated from 26 different countries across the globe.

53 per cent of all foreign direct investment projects in the West Midlands region were announced before the EU Referendum vote.

Ms Fowler added: “The research suggests that the EU Referendum vote and its aftermath may be having an influence on global perceptions of the UK’s medium to long-term attractiveness. Western European investors are twice as negative as Asian and North American investors.

“Decisions on the majority of investments made in 2016 would have been made up to three years ago, which helps to explain the UK’s solid performance last year, but signs of a slowdown are on the horizon.”

Nine per cent of investors surveyed said leaving the European Single Market will prompt them to change their investment plans or re-locate from the UK to Europe in the next three years.