Manchester named top city for FDI outside London

Manchester has overtaken Birmingham to once again become the UK’s most successful city outside the capital in attracting foreign direct investment (FDI).

Manchester has been the UK’s leading city in securing FDI projects for three of the past five years, attracted 44 inward investment projects in 2024, according to EY UK Attractiveness Survey 2025.

The survey by Big 4 accountancy firm, EY, ranked 259 regions across Europe according to the number of FDI projects each attracted in 2024. As well as noting the success of Manchester as a city, it found that the wider North West region was Europe’s joint 14th best performing region, placing it above major global cities such as Istanbul and Berlin.

Local and national strengths in the tech and manufacturing sector have helped power success in Manchester and the wider region in attracting FDI. Peter Arnold, EY UK Chief Economist, said:

“Tech has been the consistent lead sector for UK FDI over the last twelve years, and London has continued to hoover up the lion’s share of digital projects. But the sector and activity mix outside London remains diverse, which could be an advantage for the UK in the years ahead. The prominence of manufacturing in the North West, logistics in the Midlands and R&D activity in the South East, alongside renewable energy opportunities in Scotland and the North East, means the UK has various hubs that could potentially lead Europe in the years ahead. 

“Policymakers will need to determine how best to support these regional strengths while also fuelling those sectors that investors see as the key driver for UK investment in future, such as professional services and technology. The upcoming Industrial Strategy should provide opportunities to coordinate a nationwide approach to bolster and protect high-value sectors and activity. For example, elevated energy costs may present challenges for the North’s ongoing recovery in manufacturing, and enhanced energy security could help mitigate some of the impact.”

The news of the city-region’s FDI success comes as Japanese food and drink manufacturer, Mizkan, announces plans to invest in its Middleton site, best known for producing Sarsons vinegar. Mizkan will use the £17 million investment to upskill staff, expand and refurbish its facilities, and develop new products.?

Japan is one of the city-region’s most important economic partners, with about 25 Japanese companies in Greater Manchester, including Mizkan, Daikin and Astemo. Exports from the city-region including £99 million in goods in 2022, as well as services worth £151 million as of 202, and is a major source of FDI into the UK more widely.

Mizkan’s investment also coincides with a trade visit to Japan from leading figures from the city-region, including Greater Manchester Mayor Andy Burnham, as well as business representatives from the likes of Manchester Airport and Stockport-based Electricity North West. The city-region has also previously signed a partnership agreement with the city of Osaka, which has resulted in a dedicated Manchester Day at the Osaka EXPO 2025’s UK pavillion, which will take place on 19th June.

Mayor of Greater Manchester, Andy Burnham, said:

“At EXPO 2025 the world’s spotlight will be on Osaka, and our partnership with the city gives us a once-in-a-generation opportunity to put Greater Manchester on the global stage.

“As we begin our mission to Japan, we are celebrating a significant investment by Mizkan. We met with the company on our last mission to Japan two years ago, while I had the opportunity to visit the company’s Middleton plant earlier this month. Their investment is hugely encouraging and their continued commitment to Greater Manchester is fantastic to see.

“Through our continued engagement with Japanese businesses, we want to create new relationships, opening up opportunities for trade and attracting the investment that will create jobs and prosperity for people across Greater Manchester.”