Date Created: 30 July 2012
Investors are showing increased confidence in the UK, especially those from Asia and those involved in the manufacturing sector.
A report from Ernst & Young reveals that the UK continued to be the lead destination in Europe for foreign direct investment (FDI) in 2011.
According to the report, companies planning investment projects in the UK over the next 12 months said their focus of activity would be manufacturing, one of the key future growth sectors in the UK economy.
Of all respondents, investors based in Asia were especially confident that the UK’s attractiveness would rise further.
The leading investment sectors in 2011 were business services, software, and machinery and equipment. Financial services FDI was slowing down, albeit not as quickly as in the rest of Europe.
Scotland topped the UK league in terms of job creation from FDI in 2011 for the second year running, with almost 6,000 jobs created in 2011, over 2,000 more than any other UK region.
Interestingly, Scotland also secured secured 33 percent of all R&D projects into UK, up 19 percent from previous year
Recent investments in to Scotland in the manufacturing space have included companies such as Consarc Engineering, Piramal Healthcare, Recyclatech, Michelin Tyres Plc, Brightree Limited, Samsung Heavy Industries (SHI) and Gamesa.
What investors look for
The 500 overseas decision-makers interviewed by Ernst & Young for the survey said the most attractive aspects of the UK from an FDI perspective are its:
- Quality of life
- Culture and language
- Stable political environment
- Technology and infrastructure
Ernst & Young’s report said that job creation is central to reinvigorating the UK’s future economic growth, as the Government seeks to rebalance the economy towards high-value manufacturing and exports.
Lord Green, Minister of State for Trade and Investment, said: “With world markets affected by ongoing economic uncertainty, the sustained impact of FDI on the UK has been transformational, helping to create a globally attractive and truly international economy.”
He added: “We as a nation must continue to invest and support our key industries and areas of competitive advantage that drive our export growth and attract inward investment.”
Find out how we can help companies like yours to invest in Scotland