Overseas Investment Gives a Boost to Construction Prospects in the North

Posted by Glenigan on 19th October 2022 -

A rare piece of economic good news emerged in a recent report suggesting that the drive for ‘levelling up’ is having an impact and generating some significant new construction work in the North of England thanks to a sharp rise in overseas investment in the area.

The report The Internationalisation of the Northern Powerhouse highlights a 72% increase in foreign direct investment (FDI) in the region over the five years up to 2021. It has been driven by some significant new projects funded by overseas investors in key sectors such as renewable energy, electrical components, chemicals, and biotechnology.

In all, the report shows FDI in the North of England rose to $43.7 billion (£39.2 billion) over 2017-21, up from $25.4 billion (£22.7 billion) in the previous five years. Over the same period, by contrast, FDI in the rest of England fell by 16%. A third of all FDI into England in the period went into the Northern Powerhouse region – which stretches across the North East, North West, Yorkshire & Humber, and North Wales.

The report chimes with Glenigan data which points to a promising outlook for industrial sector work in the North of England, helped by some major overseas investments. The value of industrial projects starts in the North East rose by 155% to £446 million in the three months to August this year, compared to the previous three months, according to the September edition of the Glenigan Construction Review.

Meanwhile, the pipeline in the region also looks good; the value of planning approvals for industrial starts in the North East rose more than three-fold in the quarter to August, to £302 million, compared to a year earlier.

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