30 June 2010
Northwest Foreign Direct Investment programme provides massive
return
• £30 return for every £1 invested
• Over £100m positive impact on the Northwest economy
• Over 2,400 jobs created/safeguarded over 3 years
The Northwest Regional Development Agency (NWDA) can today
reveal the findings of an independent interim evaluation of the
Agency’s overseas inward investment and lead generation activities.
The ekosgen, Lambert Smith Hampton report has found an outstanding
return on the NWDA’s investment between 2006-2009 and recognises
the outstanding value for money the programme has already delivered
and will continue deliver when fully matured.
In the 3 years, between April 2006 and March 2009, the NWDA has
invested £3.5m in overseas inward investment and lead generation
activities for the Northwest, which largely funds the Agency’s
overseas operations in key markets. Foreign Direct Investment (FDI)
is a long term investment but the report has found that for every
£1 the NWDA has put in, the programme is on track to return up to
£30* when the programme has fully matured in 2013. The current
value for money return for the programme, to date, shows an
impressive £16.60 for every £1 invested already.
If the activity continues to mature as estimated the NWDA’s FDI
activity will significantly outperform the national PWC benchmark
for RDA overseas activity, which is set at £20.50 for every £1.
The evaluation report also shows that the NWDA investment has
already generated over £56m in GVA with a massive estimated boost
of up to £104m* in additional economic value to the region by 2013
when all of the FDI activity has fully matured.
In addition, the NWDA’s FDI programme has already
created/safeguarded 2,473 jobs between 2006 and 2009 that are
attributable to the NWDA’s overseas team. The report states: “for a
relatively modest investment the project is showing quite high job
numbers even when we have moderated the figures to ensure that
attribution is a true reflection of effort”.
The region has benefitted from a variety of international
companies making significant investment in the Northwest,
including: corrugated packaging manufacturer SAICA; Typhoo Tea;
Tech-X Corporation, a software company; Westinghouse; and Ineos
Fluor, a chemicals company, who all introduced new projects to the
region during 2009/10.
Steven Broomhead, NWDA Chief Executive, said:
“Foreign Direct Investment (FDI) is a fierce competition but the
Northwest has an excellent track-record and we continue to be the
most successful region for FDI outside of the South East.”
“For every £1 The NWDA spends on FDI, nearly £30 is generated
for the Northwest - that's an incredible return in any book. I am
delighted that we can now show the true value of our overseas
strategy from an independent author.”
“The NWDA works with partners across the region, overseas and
the UKTI, to develop the international competitiveness of our
region and we shall continue to focus our efforts on good quality
foreign investment, particularly in the important markets, and the
significant returns this creates for the Northwest. Given the
recent changes announced by Government regarding economic
development in the region, it is important we maintain this success
in the new arrangements.”
England’s Northwest has been the UK’s leading region for Foreign
Direct Investment (FDI) outside of London and the South East for
over three years. FDI plays a very important part in the Northwest
economy. A study by DTZ for the NWDA in 2008 highlighted the value
and significance that FDI has in our region. The report found that
over 17% of regional GVA is accounted for by foreign owned
companies operating in the Northwest and that economic output (GVA)
per worker is almost 50% higher in foreign owned companies compared
to the regional average.
The report comes just weeks before the official UKTI statistics for
FDI 2009/10 are revealed (mid-July) and swiftly follows the
findings of a DTZ independent Interim Evaluation of the NWDA’s
Northwest International Trade Programme.
In May the DTZ found an excellent return on the NWDA’s £3m
investment and recognised the value for money the programme
delivered over the past two years.
Between 2007 and 2009 the NWDA invested £2.92m in the
International Trade Programme for the Northwest. The DTZ report
found that for every £1 the NWDA put in, the programme returned
£20.57.
The evaluation report showed that the NWDA investment generated
£390m additional economic value to the region between 2007 and
2009. In addition, the NWDA revealed that over the full three-year
lifetime of the programme (2006-2009), the International Trade
Programme created 458 and safeguarded 1,867 jobs for the
Northwest.
ENDS
Notes to Editors:
*Using the nationally recognised PWC methodology