• Swindon & Wiltshire Economy
• Wednesday June 18 2025

South West sees a fall in foreign investment projects

The number of foreign direct investment projects in the West of England fell last year as investors looked away from Europe towards more competitive global destinations such as Asia and the US.

There were 30 foreign direct investment (FDI) projects in total across the region – with Bristol securing the highest number of inward investment projects with six, according to the latest UK Attractiveness Survey from accountancy firm EY.

The South West’s annual total represented a 32 per cent decline from the 44 projects reported in 2023.

However, the South West recorded a year-on-year increase in investment related to new company headquarters, securing seven headquarters-related investment projects in 2024, an increase from the three secured in 2023.

Key sectors driving investment include transportation manufacturers and suppliers (seven projects), agri-food (five), and software and IT services (four projects)

When compared to all twelve UK regions and devolved administrations, the South West ranked ninth for attracting FDI projects in 2024 – two places lower than 2023.

The UK recorded 853 FDI projects in 2024, a 13 per cent decline 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 per cent year-on-year. Europe as a whole recorded a five per cent year-on-year decrease in FDI projects.

The South West also saw a sharp decrease in employment associated with FDI projects, with only 1,209 jobs recorded in 2024.

This represents a 79.9 per cent decline compared to the previous year, emphasising, said EY, the urgent need for strategies to attract new investments and bolster job creation.

The United States was the origin for almost a third (29 per cent) of investment projects in the region, followed by Ireland and France, which contributed five and four projects respectively.

Karen Kirkwood, office managing partner for EY in the South West, said: “Bristol’s recognition as the leading investment destination in the South West is a testament to the city’s resilience and innovative spirit.

“While we face challenges in attracting FDI, the strong performance of sectors such as transportation manufacturing, agri-food, and software and IT services highlights the diverse opportunities available in our region.

“It is crucial that we build on these strengths and work collaboratively to address the factors contributing to the decline in overall investment, ensuring a prosperous future for the region’s businesses.”