• Swindon & Wiltshire Economy
• Tuesday June 23 2026

Leap for foreign direct investment in Swindon, as Bristol leads

Bristol remained the South West’s leading destination for inward investment last year, with Swindon recording four projects — a notable increase from just one in 2024, according to a new report.

South West England maintained stable levels of foreign direct investment (FDI) in 2025 and improved its position among UK regions, despite a challenging economic backdrop, according to the EY 2026 UK Attractiveness Survey.

The region secured 30 FDI projects in 2025, unchanged from 2024.

Despite being one of the lowest annual totals for the past decade, the South West outperformed the wider UK, where project numbers fell 14.4 per cent – the lowest national total in 10 years.

As a result, the South West increased its share of UK FDI projects to 4.1per cent – up from 3.5 per cent in 2024 – and rose from ninth to seventh place in the regional rankings.

A key strength for the region was growth in new investment. Excluding reinvestments, the South West recorded 19 new FDI projects in 2025, up from 18 in 2024 — a 5.6per cent increase.

This contrasts with an 11per cent decline in new projects nationally and indicates continued investor appetite for fresh opportunities in the region. The South West’s share of new UK projects also increased to 4four per cent, from three per cent the previous year.

Employment linked to inward investment eased slightly. FDI projects announced 1,184 jobs in 2025, down two per cent from 1,209 in 2024.

The region ranked eighth in the UK for FDI-related employment. Despite the marginal decline, the South West increased its share of total UK FDI employment to four per cent, up from three per cent, reflecting the broader softness in national job creation.

The South West’s investment profile continues to reflect a balanced mix of sectors, combining strengths in both advanced manufacturing and high-value services.

In 2025, Software & IT Services and Machinery & Equipment were the joint-leading sectors, each attracting five projects. Transportation manufacturers and suppliers followed with four projects. Over the past decade, Software & IT services has remained the region’s leading sector, with 74 projects, highlighting the growing importance of digital and technology-led investment.

Analysis by activity reinforces the region’s industrial base and innovation capability.

The South West secured nine manufacturing projects in 2025, up from seven in 2024, alongside five R&D projects and five logistics projects.

Notably, the region achieved its highest share of UK R&D activity in a decade, accounting for 13 per cent of all such projects, and recorded a decade-high share of logistics investment at 10 per cent.

The United States (US) remained the South West’s most significant source of investment in 2025, accounting for eight projects – 27per cent of the total. Overall, the region attracted investment from 15 different countries, underlining the breadth of international interest.

Germany was the second-largest contributor with six projects, followed by India (three), and Denmark and Portugal with two projects each.

At a city level, Bristol remained the South West’s leading destination for inward investment, securing five projects in 2025 and ranking joint 11th among UK cities outside London.

Swindon was the only other South West location to feature in the top 17, recording four projects — a notable increase from just one in 2024.

The region also saw several larger-scale investments, with six projects expected to create 100 or more jobs.

Karen Kirkwood, office managing partner for EY in the South West, said: “The South West’s performance in 2025 demonstrates a region that has remained resilient in a challenging investment environment.

Holding project numbers steady and improving its UK ranking — while increasing new investment — is a positive outcome, particularly against the backdrop of a broader national decline.

“What stands out is the strength and diversity of the South West’s investment proposition. The region continues to attract a broad mix of projects across technology, R&D, manufacturing and logistics, supported by a strong skills base and attractive locations for international investors.

“Looking ahead, the opportunity is to build on this resilience and convert it into sustained growth. By continuing to attract new investment and scaling activity in high-value sectors, the South West is well placed to strengthen its position further as investor confidence returns.”

Photo by Sean Pollock on Unsplash