Huge increase in inward investment projects for North
Jun 28 2008 by Andrew Hebden, The Journal
THE North East saw a 50% rise in the number of inward investment projects during 2007, bucking the trend in most regions outside London.
New figures from Ernst and Young’s European Investment Monitor also reveal that the North East was the top-performing region for foreign investment in manufacturing projects.
There were 42 foreign direct investment (FDI) projects in the North East during 2007, up from 28 in 2006 which had been a five-year low for the region.
Japan was the largest overseas investor in the region with seven projects including Nissan, CAV Aerospace and NSK Steering System Europe. The US and Norway were the next largest contributors.
The European Investment Monitor, which is used by UK Trade and Investment to track FDI, reveals that North Shields was the top destination for inward investment in the region (seven projects) followed by Newcastle and Sunderland (five each), Hartlepool (four) and Gateshead (three). Nigel Wilcock, regional development director at Ernst and Young, said: “The North East has performed particularly strongly in securing manufacturing investment.
“It is the leading UK region for manufacturing investment in 2007 and demonstrates that in certain industrial sectors, the UK still has a strong appeal for overseas manufacturers.”
Simon Goon, One NorthEast head of business investment, welcomed the findings of the study.
“This highly-regarded survey endorses the region’s approach to securing inward investment and the value it can bring to the North East economy,” he said.
“The investment team at One NorthEast has focused over the past few years on developing links with potential foreign direct investors, specifically in manufacturing activities in new and renewable energy, automotive and advanced engineering.
“This performance shows that the region is still a premier location for overseas business – further excellent news in the wake of the region’s best annual export statistics.”
Tony Sarginson, regional manager for the EEF, said the study was great news and reflected his own organisation’s research which showed certain sectors of manufacturing were doing very well.
“It is great that these foreign companies have got confidence in us, although it obviously puts pressure on us to find the skilled people to do the work,” he said.
Liz Smith, CBI North East assistant director, described the figures as encouraging.
“Globalisation has delivered a great deal to the region in terms of new companies and jobs as well as presenting opportunities to indigenous North East businesses,” she said.
“It remains to be seen what impact the credit crunch will have on future flows, but in the meantime the region has certainly benefited from new investment in our manufacturing sector.”
The study also shows that London dominates when it comes to attracting FDI into the UK, accounting for 42% of the total number of projects, something Nigel Wilcock said presented an increasing challenge for the regions.
