Whenever we discuss direct foreign investment into the UK, our thoughts often turn to the capital. After all, London remains a popular destination for overseas investors, with real estate particularly sought after as the value of the pound continues to fluctuate within a relatively narrow range.
If we move outside of real estate investment and financial services, however, locations outside of the capital are becoming increasingly popular among wealthy individuals. These include Manchester, which is now among the world’s top 10 cities for direct foreign investment according to a recent IBM report.
In this article, we’ll consider the growth of Manchester as viable investment hub, while asking why this city is blazing a trail for the North of England.
How has Manchester Attracted Overseas Investment?
At the heart of Manchester’s appeal is a thriving and diverse job market, which is benefitting from growing specialisms in cyber security, FinTech and the production of advanced materials.
The number of unemployed people in the North West has dropped by 5,000 according to new figures from the Office for National Statistics, with just 142,000 people out of work during July.
Manchester was central to this trend, with employment in the region increasing by 137,000 in the second financial quarter and reaching the highest level since records began back in 1971.
Manchester certainly performed well in relation to similar metropolitan areas with equal labour catchment areas across the globe, ousting Barcelona, Dublin and Toronto in IBM’s study.
In addition to Manchester’s growing and progressive job market, the cities strategic links with Liverpool are also appealing to global investors. The Manchester – Liverpool area attracted a combined total of 68 foreign direct investment (FDI) projects during 2017, which was the 10th highest overall and generated 7,000 jobs for locals.
Interestingly, Liverpool’s core sectors are considered to be health, life sciences and digital manufacturing, and this created added diversity to the North West region while attracting investors to the region from a wealth of overseas countries.
What Does this Mean for the North of England?
IBM’s report still listed London at the top of the pile for FDI projects, followed closely by Paris, Singapore and Amsterdam-Rotterdam.
Chicago, Berlin, Frankfurt and Munich also featured prominently, while Dubai continues to draw investors from across the globe.
The prominence of Manchester and Liverpool represents excellent news for the UK, however, while it also suggests that the diversification and regeneration of the North West region is finally starting to yield dividends.
Cities including Manchester, Liverpool and Leeds are leading this charge, creating the type of Northern Powerhouse that former Chancellor George Osborne talked about at length during his time in office.
The diversity of the Manchester jobs market can be seen by visiting jobs website CV Library.
