GCGP area beacon for Inward Investment

FOREIGN INVESTMENT UP 17% YEAR ON YEAR

The amount of foreign investment into the Greater Cambridge Greater Peterborough LEP area has increased by 17% year on year according to the latest official Government statistics.

The latest figures showcasing the amount of foreign owned companies who have invested into the UK have been released from the Department for International Trade (previously known as UKTI).

These statistics show that in the Greater Cambridge Greater Peterborough LEP area there were 66 successful Foreign Direct Investment (FDI) projects in the 2016/17 financial year, which represents a 17% increase on the previous year. In total, these investments will create 1,556 new jobs and safeguard a further 146. In addition to these 66 projects, a further six multi-area projects will have made an investment in the GCGP area.

Mark Reeve, Chairman of the Greater Cambridge Greater Peterborough (GCGP) LEP, commented:

“Inward Investment is critical for the growth of our local economy, so we are very pleased to see this increase in Foreign Direct Investments across our area. With Cambridge – one of the best-known brands in the UK – within our patch, we want to do even more in the future to encourage Inward Investment across the entirety of our area. Such investment not only generates new jobs, it also creates new supply chain opportunities for our existing businesses.”

FDI investment in the GCGP area showed that 28 investments came from new investors to the UK market, with a further 29 investments from existing investors, with the remainder coming from acquisitions or mergers. However, these existing investors demonstrated the ability to create far more jobs with 1309 jobs created, compared to 241 from brand new investors to the UK.

Looking at the figures on a country by country basis, the top five countries to invest in the GCGP area are as follows:

  1. United States of America – 15 investment projects
  2. Japan – nine investment projects
  3. Spain – seven investment projects
  4. China – six investment projects
  5. Ireland – four investment projects

In total 30 investments made into the GCGP area came from the European Union, showing that even despite Brexit, the EU remains a very important market for the GCGP area.

The top sectors to attract investment into the GCGP area mirrored the strengths of the local economy, with Life Sciences and Healthcare attracting the largest number of investments, followed by the food and drink sector, followed by software, hardware and communications.

Whilst investments have been made across the LEP area, Cambridge and South Cambridgeshire secured 44 successes out of a total of 72, which will generate 1,311 new jobs in the local area.

Mark Reeve, added:

“Outside of these official figures, there are strong signals that other parts of the GCGP area are demonstrating a strong pull for international investors. Peterborough has been experiencing strong manufacturing interest from investors in the first part of this financial year. Local agent’s Barker Storey Matthews reported that a South African premium soft drinks and alternative beverage company has signed a deal on a new production facility, whilst new business premises are also being taken by a German company looking for a UK base for their support services, to name just two companies choosing to locate in Peterborough.”

simPRO Software Ltd is an excellent example of foreign investment into the LEP area. This Australian based software firm first moved to St Ives, Cambridgeshire, in December 2015 before officially launching their UK business last year. So far, simPRO have increased their staff numbers from six to 21 already, with hopes to continue this growth further.

The Greater Cambridge Greater Peterborough LEP works closely with both the Department for International Trade and businesses to help them invest in the local area. The LEP team recently welcomed Steve Clarke as their full time Head of Inward Investment, further underlining their commitment to this important area of work.

Companies considering moving to the LEP area are encouraged to speak to Steve Clarke, Head of Inward Investment at the Greater Cambridge Greater Peterborough LEP on 01480 277180 or via steve.clarke@gcgp.co.uk.