The West Midlands was among Europe and the UK’s best performing regions for attracting Foreign Direct Investment (FDI) projects in 2024, while the East Midlands recorded a higher number of projects than the year before.
The EY 2025 UK Attractiveness Survey ranked 259 regions across Europe according to the number of FDI projects each attracted in 2024. The West Midlands attracted 86 FDI projects in 2024, making it Europe’s joint fourteenth best performing region for investment, alongside North West England.
Alongside the North West, the West Midlands was the UK’s joint-third best performing region for attracting inward investment, behind Greater London (265) and Scotland (135).
While the majority of UK regions saw FDI totals decline in 2024, the East Midlands was one of the few parts of the country – alongside Northern England and Wales – to attract more inward investment projects last year than in 2023.
The East Midlands recorded 36 FDI projects in 2024, representing a 16% increase compared to the previous year. Northampton was the region’s leading investment destination, recording six projects in 2024, double the number reported in 2023.
The East Midlands recorded a significant increase in employment associated with FDI projects, rising 23% to 3,513 jobs, the highest total since 2021. The region ranked fifth in the UK for employment generated by FDI.
The leading sectors for FDI in the East Midlands were agri-food (6) and transportation and logistics (5). The agri-food sector, which encompasses food supply chain operations such as farms, food storage and processing, saw its number of FDI projects in the East Midlands triple in 2024 compared to 2023, underscoring the sector’s growing prominence in the region.
Examining FDI by activity also reveals that manufacturing remains a key focus for inward investment in the East Midlands, with the region securing 14 manufacturing projects in 2024 —doubling the number recorded in 2023. Logistics activity projects also played a significant role, with the East Midlands securing 10 logistics projects
Year-on-year FDI decline in West Midlands mirrors national picture
While the West Midlands maintained its position as a leading European destination for investment, the region also encountered challenges last year. The 86 FDI projects recorded in 2024 represented a 32% decrease from the 126 projects attracted in 2023.
Additionally, the West Midlands experienced a decline in the number of jobs associated with FDI projects, totalling 4,926 jobs in 2024, a 27% decrease compared to the previous year.
This decline mirrors the broader national and European picture, with the UK recording a 14% decline in FDI projects and Europe overall recording a 5% decline.
France, the UK and Germany, which have historically attracted around 50% of Europe’s annual FDI project total, saw a more pronounced decline in project numbers in 2024 as low economic growth, high energy prices and competition from other markets, such as Asia and the United States, impacted investment.
The West Midlands’ leading sectors for FDI projects in 2024 were transportation manufacturers and suppliers (15), followed by the agri-food sector (11) and the machinery and equipment sector (9).
When assessing investment by activity, the West Midlands attracted 30 manufacturing-focused FDI projects, 16 business services projects and 11 logistics projects in 2024. No other region in the UK recorded a higher share of logistics-focused FDI projects last year.
The United States has been the largest source of investment projects in the West Midlands over the last decade, contributing one in five (20%) of inward investment projects in the region last year.
Birmingham was the UK’s joint-third most successful city outside London for attracting FDI investment last year, tied with Edinburgh at 24 projects. This followed Manchester (44 projects) and Glasgow (27 projects).
Birmingham remained the West Midlands’ leading destination for investment, however its project total in 2024 was 66% lower than the number it had recorded in 2023. Coventry (9), Telford (7), Warwick (6), and Nuneaton (6) were among the West Midlands’ other key local destinations for investment.
Simon O’Neill, office managing partner for EY in the Midlands, said: “The overall investment picture across the Midlands remained compelling last year as the West Midlands maintained its position as a key European region for FDI and the East Midlands became one of the few UK regions to increase its project total year-on-year.
“The region as a whole continues to be a key hub for logistics and manufacturing activity and that’s a signal to investors that we have the local skills and infrastructure required to excel in these operations and offer strong returns.
“Following a particularly strong FDI performance for the West Midlands in 2023, a subsequent drop-off in 2024 was not unexpected and mirrors the broader national and European picture.
“Looking ahead, it’s important that local policymakers continue to work closely with businesses and the government to develop a coordinated inward invest strategy for the Midlands that plays to region’s strengths and ensures a future recovery in inward investment is felt across the UK, rather than in a few concentrated areas.”
Majority of UK regions saw investment fall last year
Most UK regions attracted fewer FDI projects in 2024 than they had in 2023. Greater London (-26%), Scotland (-5%), the West Midlands (-32%), the South East (-9%), the South West (-32%), the East of England (-36%) and Northern Ireland (-6%) all saw project totals decline year-on-year.
In contrast, regions across the North of England saw their combined FDI total in 2024 rise by over a quarter (29%) compared to 2023. The North West (86 projects) became the UK’s third best performing region for FDI, recording a 27% increase, while Yorkshire and the Humber (52 projects) and the North East (42 projects) saw projects rise by 53% and 11% respectively.
The East Midlands (36 projects) and Wales (16 projects) were the only other two regions to attract a greater number of FDI projects in 2024 than they had in 2023.
