Insider Media Limited

The Midlands is the most attractive destination to overseas investors outside London. According to research by accountant Ernst & Young, Birmingham was the biggest centre of activity with 14 inward investment projects. Katie Teasdale, head of policy at the Birmingham Chamber Group, told Insider the region benefited from a versatile set of skills, but "knows how to play to its strengths".

According to the European Attractiveness Survey conducted by Ernst & Young, 91 inward investment projects were established in the region in 2010.

This makes the Midlands the most attractive destination for inward investment projects outside of London and shows an increase of more than 35 per cent on last year’s figures.

The projects resulted in 3,769 jobs being created in the region, an increase of 150 per cent -the largest in England.

Teasdale said the region was assisted by its proximity to London and its transport links to large cities across the UK, and added that the introduction of High Speed rail would have a "huge impact" on future investors.

"There are a lot of exciting things happening in the West Midlands, and the versatile skills base here is a real incentive for overseas investors. The West Midlands has a breadth of sectors which it performs well in, but it really excels when it comes to low carbon manufacturing, aerospace, food and drink and professional services – the region knows where its strengths lie and that really helps to attract the investment from overseas."

She added the £65m redevelopment of Birmingham Airport and an enterprise zone proposal submitted by the Greater Birmingham and Solihull LEP could also help bring in investment.

"We're really excited about the enterprise zone proposal, which could bring in up to £70m a year. There's also the New Street station development, which is worth about £600m. There's a lot to be excited about at the moment."

According to the survey, Birmingham was the biggest centre of activity in the region, with 14 new investment projects. There were also 13 investment projects in Nottingham and five in Coventry. The majority of these investments originated from the US (27), while 11 came from Germany.

Sara Fowler, Ernst & Young’s senior partner in Birmingham, identified manufacturing as a key asset to the region.

She said: "As in previous years the report has shown the strength of the manufacturing sector in the region with 30 per cent of the investment projects coming from this sector. Foreign businesses are continuing to invest in the region because of its strong reputation and expertise in the sector.

“This year we have also seen investment projects in a variety of other sectors, including software, business services and electrical. This proves the versatility of the Midlands and the excellent opportunities it presents to businesses.”

Wouter Schuitemaker, investment director for Business Birmingham, the city’s inward investment programme, said foreign investors are attracted to the Midlands because of its "strong reputation and expertise in manufacturing, digital media and business services".

However, he added: "We also have to build awareness of the diversity of the region’s offer – while a key strength, we are about more than just manufacturing.

"The region’s expertise and reputation in the manufacturing sector is key – but we are keen to develop investors’ understanding of the region’s broader offer including our strengths in R&D, digital media and business services.

"Many of the UK’s investors are repeat investors – with the UK building up a strong loyalty and reputation among those organisations that have created a firm base in the market. This is true in the Midlands – Tata is just one example. Once we get investors here they realise what incredible potential the region has – and we are now working with investors from across the region to spread the word."

Teasdale said the work of organisations including the chamber group, Marketing Birmingham, Business Birmingham and UK Trade and Investment had become "much smarter" over the last year.

"Everyone has the same goal – to increase the amount of investment in the city and grow the economy. So they have become much smarter with strategy and targets – it's a much more collaborative approach."

According to the Ernst & Young research, the UK remains Europe’s top destination for foreign direct investment with its highest number of investments since 1997.