Partner Article
Invest Newcastle, part of NewcastleGateshead Initiative (NGI), has released its annual review of inward investment, revealing another strong year for job creation and business attraction despite converging global economic headwinds.
The team supported 31 new companies to establish an employment site across Newcastle and Gateshead in the financial year to March 31st 2025, while a further 9 businesses expanded their operations during the period.
These investments are set to create 1,618 jobs over the next three years, contributing an estimated £62.5m in gross value added to the local economy.
The number of new companies coming to the city was the second highest since Invest Newcastle began delivering a business winning service in 2013.
Notable new arrivals include Neptune North, a software development company, which is creating up to 200 jobs at Bank House and Atom Bank, a fintech company with deep roots in the North East, which has relocated its headquarters to The Pattern Shop, bringing over 400 jobs to the city.
Life sciences and drug development consultancy Coronado Research also opened an office in Newcastle last year, as did construction management business Rider Levett Bucknall and planning consultants Axis.
Gateshead saw the arrival of energy storage and battery technology business, Titanvolt, alongside companies such as Kada Research, Battlekarts and Metro Bank.
The sectors attracting investment last year were more diverse than ever, with energy and sustainability responsible for 26% of all projects followed by the visitor economy (23%), corporate services (19%) and digital and tech (16%).
The city also saw investments in the defence and creative industries sectors, both of which are predicted to become major growth areas for Newcastle and Gateshead over the coming years.
While overall investment levels for the city remained high, market conditions point to a changing environment. Companies are taking longer to commit to new locations and are initially creating fewer jobs upon entry.
A number of projects came about as a result of relocation or consolidation from other parts of the UK rather than greenfield foreign direct investment (FDI) where all the jobs created are new to the domestic labour market.
Nationally, the UK recorded its worst FDI performance since records began in 2024/25, with only 1,375 projects landing over the course of the year. This is the first time the number of projects has dipped below 1,500 since 2010/11 in the wake of the global financial crisis.
These national trends were reflected locally in a slowdown in the number of business expansions to the lowest levels since 2018/19. Only 9 employers increased headcount during 2024/25 and many cited rising operational costs and inflationary pressures as barriers to growth.
Nevertheless, standout expansions from Accord Healthcare and Siemens Energy show the value of long-term business relationships and strategic investment. These two companies added 121 new jobs and safeguarded hundreds more.
Cllr Dan Greenhough, Newcastle City Council Cabinet Member for Economy, Jobs and Skills, said: “It’s really encouraging to see the continued confidence of national and international investors in Newcastle and the wider city region as an attractive place to do business while market conditions continue to be challenging.
“Our strengths in green technologies, life sciences, creative industries, advanced manufacturing and many other sectors continue to attract the investment, jobs and growth that enable us to deliver on our commitment to establish an inclusive local economy that offers the skills and opportunities that allow our communities to reach their full potential.
“It’s particularly pleasing to see the strength of confidence in some of the bigger scale offers in the city, such as Bank House and the lovingly restored Pattern Shop. With further significant infrastructure developments in the pipeline, such as the huge potential waiting to be unlocked at Forth Yards, I’m confident Newcastle and the North East will continue to be an attractive proposition for investors.”
Cllr Leigh Kirton, Gateshead Council Cabinet Member for Economy and Communications, said: “Amid ongoing market challenges, it’s incredibly positive to see both UK and global investors continue to back Gateshead, Newcastle and the wider region as a vibrant, competitive location for doing business.
“2024/25 has been a landmark year for investment in Gateshead, with Capital&Centric’s commitment to the regeneration of the iconic Old Town Hall breathing new life into the historic heart of the borough.
“The arrival of Battlekarts further strengthens Gateshead’s growing appeal as a dynamic destination for creative businesses.
“Looking ahead, we’re excited about the future of regeneration across Gateshead, which will continue to drive inward investment, create new opportunities, and reinforce the area’s status as a hub for innovation and growth.’’
As the nature of inward investment continues to evolve, the team enters 2025/26 with a clear focus on adapting to shifting market dynamics.
Demand for office space is increasingly concentrated around the highest quality, most flexible accommodation, while interest in industrial and manufacturing space is rising – particularly from companies investing in digital infrastructure such as data centres.
Newcastle is also well positioned to capitalise on growing momentum around the energy transition. With the North East playing a central role in the UK’s green industrial future, the city’s established sustainability credentials are proving a strong draw for new investment.
Dr Sarah Green OBE, Chief Executive, NGI, said: “This year’s results demonstrate the resilience of Newcastle and Gateshead as investment destinations.
“Even amid a more complex and cautious global economic environment, the fundamentals of the city remain strong as we see investment in sectors that will define the future economy. We are increasingly benefitting from the rise of hybrid working, with companies opening offices in the region to accommodate employees who want to achieve a better quality of life by moving to the North East.
“Looking ahead, we remain focused on adapting to changing market dynamics, strengthening our business relationships, and ensuring Newcastle and Gateshead continue to offer one of the most compelling and future-facing investment propositions in the UK.”
This was posted in Bdaily’s Members’ News section
by
Molly Lymn
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