The South West has recorded its highest total of Foreign Direct Investment (FDI) projects since 2017.
The South West attracted 43 FDI projects, representing an increase of 23% (eight projects) on 2022 – outpacing the rate growth seen in Greater London (20%) according to the latest EY UK Attractiveness Survey.
This growth boosted the region’s share of all UK projects to 4.4%, its second highest market share in the past decade.
The South West’s top three sectors, Software and IT, Machinery and Equipment and Utility Supply, continue to contribute significantly to the South West’s FDI, making up more than half (53%) of projects.
Utility Supply, which was the region’s top sector for FDI in 2022, was the only sector in the top three to see a fall in project numbers in 2023. The South West also attracted five Business Services projects, the first time the region has seen investment from the sector since 2020.
FDI projects generated 6,010 jobs in the South West in 2023, a decade high for the region. The South West ranked fourth out of twelve UK regions for FDI-related employment.
Bristol continues to place in the top 20 best cities in the UK for FDI projects, moving up three places from eighth in 2022 to fifth in 2023. The city attracted 17 projects, up by four on the previous year. Around two fifths (39%) of the South West’s 2023 FDI projects were located in Bristol.
Karen Kirkwood, office managing partner for EY in the South West, said: The South West was one of only four UK regions to record a greater number of FDI projects in 2023 than the year before.
“Similar to other regions that saw FDI growth, the digital technology sector played a significant role in the South West’s increased total. These high-value, knowledge-based sectors tend to generate well-paid jobs and growing its share of tech projects will place the South West in good stead for attracting well-paid employment opportunities and enhancing its attractiveness for further investment in the future.”