- The North West attracted a total of 86 Foreign Direct Investment (FDI) projects in 2024, representing a 27% increase on the region’s 2023 total
- Manchester has now been the UK’s leading city outside London for securing FDI for three of the last five years
- The Software and IT Services and Machinery and Equipment sectors were the North West’s biggest drivers of FDI projects in 2024, with a total of nine projects each
- The North of England as a whole recorded a 29% increase in FDI projects in 2024, despite the UK’s overall UK FDI project total falling by 13%.
North West, 17 June 2025: The North West was among Europe’s best-performing regions for attracting Foreign Direct Investment (FDI) projects in 2024, while Manchester was the UK’s best-performing city outside of London for FDI for the third time in the last five years.
The EY 2025 UK Attractiveness Survey ranked 259 regions across Europe according to the number of FDI projects each attracted in 2024. The North West secured 86 projects in 2024, a 27% increase on its 2023 total, ranking as Europe’s joint-fourteenth best-performing region for investment, alongside the West Midlands. This was despite overall UK projects declining by 13% year-on-year.
Manchester attracted a total of 44 FDI projects last year, up 22% from 36 in 2023, with only London (265 projects) surpassing the city’s total.
Meanwhile, Liverpool was ranked joint-ninth in the UK for attracting FDI in 2024, up from 16th in 2023, despite its annual project total falling from ten to seven.
While more than half of UK regions saw FDI totals decline in 2024, the North West attracted more inward investment projects last year than in 2023. At a regional level, only Greater London (265) and Scotland (135) attracted more FDI projects than the North West and the West Midlands last year.
The North West’s year-on-year rise in FDI meant that its overall share of UK projects increased significantly to 10.1% in 2024 – the highest it has been over the last decade – up from 6.9% in 2023.
The UK recorded 853 FDI projects in 2024, a 13% fall from 2023, making it Europe’s second-best-performing country for attracting inward investment. France ranked first in Europe in 2024 with 1,025 projects, a decline of 14% year-on-year. Europe as a whole recorded a 5% year-on-year decrease in FDI projects.
This continent-wide decline is believed to have been driven in part by relatively modest levels of economic growth in recent years, prompting investors to look towards more competitive global destinations such as Asia and the US.
Despite the broader national UK decline, the North of England as a whole recorded a 29% increase in FDI projects in 2024.
Hilary Heap, EY’s North Market Leader, said: “It’s encouraging to see that the North West and other regions across the North of England increased their annual totals of inward investment projects in 2024 despite a national decline in UK projects. The North West was a leading UK and European destination for investment last year, driven in part by its varied mix of businesses that have the ability to entice a diverse range of tech, manufacturing and professional services investments.
“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 of London. This should be encouraging for the North West’s prospects, given the strength of local talent and density of high-growth businesses. Looking ahead, continued close coordination between local and national policymakers will be vital in ensuring the North West maintains its skills pipeline, while also making the most of strategic infrastructure improvements to maintain and enhance the region’s appeal to global investors.”
North West continues to attract tech and manufacturing investment
While the North West’s volume of inward investment projects increased in 2024, employment created by FDI projects in the region stood at 2,755 jobs in 2024, down by 18% from the 2023 total (3,345). However, since a decline in FDI employment was observed across the UK, the North West’s share of UK FDI employment rose to 7.2% last year, up from 6.4% in 2023.
The Software and IT Services sector was once again a prominent driver of FDI for the region with a total of nine projects, although this represented a fall from the 12 projects secured in 2023. Similarly, the Machinery and Equipment sector was key to the region securing FDI, attracting the same total of nine projects. Professional Services and Pharmaceuticals also remained leading sectors for the region, attracting seven projects each.
In Manchester specifically, the Software and IT Services and Finance sectors drove the most FDI projects, with a total of six each.
Examining FDI by activity reveals that the North West’s year-on-year rise in inward investment was driven in part by an increase in projects involving manufacturing. The region attracted 25 manufacturing projects in 2024, more than double its 2023 manufacturing total (10). Manufacturing was the second most prevalent type of FDI project attracted by the region last year, after business services, which accounted for 26 projects.
The North West attracted 15 projects related to sales and marketing activity, almost twice the 2023 figure (8 projects).
Business services was also the most prominent activity for driving FDI in Manchester with a total of 19 projects, followed by sales and marketing (nine projects) and manufacturing (six projects).
US remains a leading source of North West FDI
The United States (US) has been the leading origin of Foreign Direct Investment projects into the North West over the last decade by a significant margin, accounting for 28.3% of projects.
This continued to be the case in 2024, albeit to a lesser extent, with the US being the origin of 20.9% of the North West’s FDI projects.
Germany has been the region’s second-biggest driver of FDI over the last decade, accounting for 8.9% of projects. In 2024, Germany’s contribution was more significant, making up 12.8% of the region’s FDI projects.
In 2024, the other countries that made up the six largest origins for investment were France, Sweden, India and Poland.
Mixed national picture but North performs strongly
Greater London retained its position as the leading UK region for FDI in 2024, followed by Scotland.
However, 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 project numbers rise last year. As well as the North West, 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 did in 2023.
Peter Arnold, EY UK Chief Economist, said: “Tech has been the consistent lead sector for UK FDI over the last twelve years, and London has continued to hoover up the lion’s share of digital projects. But the sector and activity mix outside London remains diverse, which could be an advantage for the UK in the years ahead. The prominence of manufacturing in the North West, logistics in the Midlands and R&D activity in the South East, alongside renewable energy opportunities in Scotland and the North East, means the UK has various hubs that could potentially lead Europe in the years ahead.
“Policymakers will need to determine how best to support these regional strengths while also fuelling those sectors that investors see as key drivers for UK investment in future, such as professional services and technology. The upcoming Industrial Strategy should provide opportunities to coordinate a nationwide approach to bolster and protect high-value sectors and activity. For example, elevated energy costs may present challenges for the North’s ongoing recovery in manufacturing, and enhanced energy security could help mitigate some of the impact.”
Investors motivated by grants and skills when considering locations outside London
Alongside an analysis of investment numbers, EY also conducted a survey comprising of interviews with a panel of 400 international investment decision-makers between January and March 2025.
When asked for the investment criteria they assess when considering whether to invest in a region outside of London, more than a third (37%) of respondents said that the availability of regional grants and incentives for investment was a key consideration. This was followed by the availability and skills of the local workforce (30%) and the availability of business partners and suppliers (28%).
Other important investment criteria included the strength of local business networks (24%) and the strength of transport infrastructure (21%).