Manchester has once again proven its appeal to international investors, securing a spot in the top 10 UK cities for Foreign Direct Investment (FDI) attractiveness. The city has climbed from the tenth to the eighth position in the latest rankings, emphasising its sustained allure.
Meanwhile, the Investment Attractiveness Index, which is compiled by the Centre for Economics and Business Research (Cebr), assessed the potential of the UK’s 50 largest cities across key indicators such as growth potential, local infrastructure, and local skills. This index provides valuable insights into what makes these cities stand out to investors.
Manchester’s Ranking in FDI Attractiveness
Manchester has successfully retained its position within the top 10 UK cities for Foreign Direct Investment (FDI) attractiveness. The city has moved from the tenth to the eighth spot in the latest Investment Attractiveness Index.
The Investment Attractiveness Index, compiled by the Centre for Economics and Business Research (Cebr), analysed the potential of the UK’s 50 largest cities. The analysis was based on eight key indicators, including growth potential, local infrastructure, and local skills.
Challenges and Improvements
Interestingly, Manchester’s overall attractiveness score has decreased by 7.7 points compared to the previous year. This decline is consistent with the performance of almost every other city analysed, except one. The primary reason for the lower scores is the reduced predicted Gross Value Added (GVA) growth in 2024.
Despite the lower overall score, Manchester has performed well in other crucial areas. The city saw a boost in its Local Infrastructure score, thanks to improved online connectivity.
Manchester’s local skills pillar also experienced a boost. This improvement is attributed to high scores in qualifications, the number of economically active people, and the presence of numerous universities.
Expert Insights
Bryan Bletso, a partner and head of international at Irwin Mitchell, shared his views on Manchester’s performance. He stated, “The results in our report point to challenging conditions and mirror the sentiment amongst both businesses in the North West and overseas investors that we are speaking to.”
Bletso further explained that Manchester’s robust performance is not surprising. The city benefits from many accessible universities, a large economically active population, and strong public transport usage.
These factors make Manchester and Greater Manchester attractive to businesses seeking to employ a large, educated local workforce, supported by a reliable public transport system.
Impact of Government Policies
Bletso also highlighted the significance of recent government policies. “The recent King’s Speech, and the proposed introduction of an English Devolution Bill, is vital for creating a modern, dynamic economy attractive to foreign investors,” he mentioned.
He welcomed legislation that would grant new powers to metro mayors and combined authorities. This development is seen as crucial for enhancing the attractiveness of Northern cities for foreign investments.
Such policies are expected to further boost Manchester’s standing in future FDI attractiveness rankings.
Performance of Other North West Cities
Stockport has made significant strides in the 2024 Investment Attractiveness Index, climbing eight places to secure the 25th position.
This improvement in Stockport’s ranking is largely due to enhanced online connectivity, which saw a remarkable year-on-year improvement of 45 points.
Liverpool, contrastingly, has fallen three places to 27th. This decline occurred despite the city’s improved online connectivity, due to lower relative scores in other areas such as local infrastructure and growth potential.
Warrington and Preston’s Performance
Warrington’s overall score experienced a reduction of 8.2 points. However, its position improved by one rank, placing it in the 20th spot.
Warrington’s improved position, despite a decrease in overall score, indicates stronger performance in selected key indicators compared to other cities.
Preston has shown a similar trend, performing better in specific areas and now holding the 22nd position.
Looking Ahead
Manchester’s consistent top 10 ranking for FDI attractiveness underlines its resilience and capability to adapt to changing economic conditions.
The city’s improved local infrastructure and robust local skills are key assets in maintaining and enhancing its attractiveness for foreign investors.
In conclusion, Manchester’s steady position in the top 10 cities for Foreign Direct Investment signifies its resilience and adaptability. The city’s advancements in local infrastructure and skills are key to maintaining its competitive edge.
Going forward, government policies and a focus on local development will play crucial roles in shaping Manchester’s future attractiveness for investors.
