West Midlands tops regional rankings for foreign investment and growth rate in 2022/23

According to data from the Department for Business and Trade, 181 foreign direct investment projects landed in the region during the financial year – more projects than Scotland and Wales combined and overtaking the South East for the first time.

It represented more than 10 per cent of the UK’s total FDI wins (1,654) and was the largest share of all UK regions outside the capital.

With 8,252 jobs created by overseas investors during the same period – a 48 per cent increase on 2021-2022 – the West Midlands also bucked the national trend of a decline in FDI-related jobs.

The last financial year also saw the West Midlands Growth Company – the region’s official investment promotion agency – achieve a record high performance, with recorded projects representing a 171 per cent increase on the previous year.

The Business and Tourism Programme, the first programme of its kind established to boost the economic impact of the Commonwealth Games, has played a key role in boosting the region’s inward investment performance.

Over the last year, BATP-led trade and investment missions to India; Australia, Malaysia and Singapore and the US have enabled the region to strengthen existing trade ties and reach into new markets to increase its inward investment pipeline. In particular, over the last 12 months, India has overtaken the US to become the West Midlands’ leading source of FDI, with tech-led investments into the region representing a prominent trend.

One third of WMGC’s portfolio of inward investment projects in 2022/23 were secured as a direct result of the Global Growth Programme, a support package led by WMGC, to help international companies kickstart their growth journey in the UK. These include international payments solutions provider Fincra; Singapore-based company Primacy; India-based EdTech company Mind & Matter; India’s first plastic credit platform The Disposal Company and Canada-based pan-African financial technology company Kora.

Richard Bate, chief technology officer at cyber security business Goldilock, said: “Wolverhampton Science Park was key to our decision of where to base the business, providing us with a state-of-the-art research and development and production facility, as well as proximity to cyber skills. The West Midlands gives us unparalleled access to industry and talent on a very practical and affordable level, while being within easy reach of London’s tech ecosystem. WMGC has also kept us connected to significant events taking place in the region. As a start-up with limited resources, this has created valuable networking opportunities, while allowing us to amplify our voice within the marketplace.”

Councillor Stephen Simkins, City of Wolverhampton Council deputy leader and cabinet member for inclusive city economy, said: “These latest figures and Wolverhampton’s number one FDI Intelligence ranking in the Small European Cities of the Future category earlier this year demonstrate the city is a global hotspot for foreign direct investment.

“We are a strong proposition – built on the council’s ‘can do’ partnership approach and an attractive investment prospectus that sets out the case for investment in the city, and highlights opportunities that can deliver transformational change and create jobs.

“Wolverhampton is a city on the rise, with a clear strategy supported by energy and ambition.”

Councillor Adrian Andrew, deputy leader and portfolio holder for regeneration at Walsall Council, said: “Walsall is a significant economy within the context of the Black Country and has the potential to grow. We have seen major changes to Walsall over the last 15 years with housing, transport and employment projects representing almost £1 billion of funding and inward investment. These figures show that despite the uncertainty surrounding business confidence over the last few years, Walsall is a growing favourite amongst investors, and I hope to see even more investment over the coming years as we continue to level up the borough.”

Councillor Paul Bradley, deputy leader of Dudley Council, said: “Dudley has an ambitious 30-year vision to drive economic growth and position the borough for the future.

“We are working hard to attract foreign investment to support our growth and the £1billion regeneration of our borough.

“In the last 12 months, the borough has continued to see investment from overseas-owned businesses including TAE Power Solutions, which have expanded its UK operations with a new battery testing facility for e-mobility and energy storage applications at BCIMO (Black Country Innovative Manufacturing Organisation) in Dudley. This reflects the borough’s strengths within the advanced manufacturing sector.”

Matt Hammond, chairman of the West Midlands Growth Company, said: “Despite the wave of shocks that have faced the global economy over the last year, these latest FDI figures are a reminder that investment appetite in the West Midlands remains extremely strong. It shows the mileage and impact of the West Midlands on the world stage when the right interventions – such as the Business and Tourism Programme – are in place.

“The West Midlands’ impressive figures buck the national trend of declining jobs and outstrip all of the UK when it comes to FDI job growth – including London. They are a demonstration of WMGC’s award-winning investment strategy in practice, as we continue to strengthen ties with key markets to the benefit of local people."

As part of the £1.5 billion Deeper Devolution Deal, WMGC will co-develop a bespoke West Midlands international strategy in conjunction with DBT. This will help us to supercharge the legacy of the games by opening up new overseas markets for West Midlands products and bring millions of pounds worth of foreign direct investment into the region.

Andy Street, the Mayor of the West Midlands, said: “We all know just how important inward investment is to the success of the West Midlands economy, and so it really is brilliant news that this latest data shows how we are the strongest performing region.

“Not only does this mean that our industrial heritage, entrepreneurial culture, world-class universities and a broad and deep talent pool is setting the West Midlands apart in the eyes of overseas investors, but it also means thousands of quality jobs are being created right here for local people.

“There could not be a greater vote of confidence in the region than investors putting their money on the table in the way they have this past year, but it is critical now that we keep up this momentum and continue to build on the global platform that the Commonwealth Games gave us.”

The strength of the West Midlands’ FDI strategy was recently recognised at FDI Intelligence European Cities and Regions of the Future 2023, where Birmingham, Wolverhampton and Coventry and Warwickshire all secured top-three rankings. The rankings benchmark European cities and regions according to their economic, financial, and business strengths.