The North East brought in 42 Foreign Direct Investment (FDI) projects last year – the region’s highest total in seven years, a new survey has revealed.
The region attracted 10.5% more projects compared to 2023, bucking a national trend which saw the Ƶ bring in 13% less FDI projects year-on-year. Meanwhile, Newcastle was the Ƶ’s seventh best-performing city for securing FDI last year, up from eleventh in 2023, with a total of 13 projects, up from 11, according to EY’s latest Ƶ Attractiveness Survey.
However, despite seeing a jump in the number of foreign investment deals in the region, the number of jobs they created dropped significantly, by 35% from 2,887 to 1,864.
Yet the North East’s increase in project numbers saw its share of Ƶ FDI projects jump from 3.9% in 2023 to 4.9% in 2024. It was also the Ƶ’s seventh best-performing region in for attracting FDI projects in 2024, up from eighth in 2023 and the region’s highest ranking since 2016.
The North East attracted a range of inward investment projects last year, with firms within transportation, manufacturing and supply – including automotive and aerospace companies – utilities, professional services and financial services all figuring highly. Software and IT services have been leading sectors for the last decade, but last year the region attracted just two tech-related FDI projects.
The figures showed that the North East’s year-on-year rise in inward investment was driven in part by an increase in projects involving manufacturing. The region attracted 12 manufacturing projects in 2024, a 20% rise on the year before. The most prevalent type of FDI activity was business services, accounting for 13 of the region’s projects last year.
Michael Scoular, EY’s Newcastle office managing partner, said: “The North East’s performance in attracting FDI was encouraging in 2024, with the region displaying its ability to secure projects in strategically important areas such as manufacturing and business services. With the Ƶ’s overall project numbers down, the fact that the North East total saw year-on-year growth is testament to the region’s resilience and versatility.
“Looking beyond this year, our latest investor sentiment survey results also bode well for future prospects, with 11% of those looking to invest in the Ƶ over the next 12 months planning to establish or expand operations in the North East. However, FDI-related employment figures, which can be volatile from year to year, were down quite significantly in 2024 – an area to build and improve on going forward to support prosperity and opportunities across the region.
“Ƶ FDI projects, including in the North East, could be impacted by the current complex global trade landscape, so continuing to promote our great region and our distinct strengths – particularly in manufacturing - to global investors will be a top priority amid a volatile business landscape.
“Our survey highlights that access to a skilled workforce, the availability of partners and suppliers and the strength of local transport infrastructure are key criteria for global investors when considering locations outside London, so collaboration between local and national policymakers to support these priority areas in the North East will be pivotal going forward.”
