Japanese investors have poured almost £118 million into Greater Manchester over the past year, in a fresh sign of the region’s growing international profile — but business leaders say Whitehall must match that confidence with long-term support for regional growth.
New figures show a surge in Japanese investment in the North West, led by companies such as Astemo, Daikin and Mizkan, which have expanded their presence or established new operations in the area. The wave of funding underscores Manchester’s growing appeal as a global hub for advanced manufacturing, innovation and green technology.
The region now hosts more than 25 Japanese firms, including NGK, Hitachi, Shimadzu, Sharp, Dentsu, Brother and Sun Chemical, reflecting deepening commercial ties between Japan and the North of England.
“While London dominates the headlines for productivity, international businesses are increasingly betting on Manchester,” said Ed Foulkes, managing partner at law firm Clarke Willmott in Manchester. “This highlights the city’s potential and the need for more balanced national support.”
Foulkes, whose firm advises major UK and international clients across manufacturing, energy and infrastructure, said the Japanese vote of confidence in Manchester demonstrated how regional economies can compete globally when they receive sustained investment and attention.
“Attracting investment like this shows that regions outside London can compete on the world stage,” he said. “With targeted infrastructure and government backing, the North West could secure the next wave of international business and innovation.”
He added that Japanese investment was not only bringing capital but also strengthening local skills, research and development, and supply chains, supporting Greater Manchester’s transition into an innovation-led economy.
“The confidence shown by Japanese companies should encourage other international investors to consider Manchester as a strategic base in the UK,” he said. “Companies are already showing confidence — now it’s time for the government to match it with strategic support.”
Greater Manchester continues to cement its position as the UK’s most successful destination for foreign direct investment outside London, topping national rankings for the third time in five years in 2024.
Analysts point to a mix of factors behind the city’s success: its world-class universities, innovation hubs in advanced materials and AI, and strong transport and logistics links make it a magnet for global manufacturers and technology firms.
The region’s export relationship with Japan has also deepened in recent years. According to official trade data, Greater Manchester exported £99 million in goods to Japan in 2022, alongside £151 million in service exports in 2021 — spanning professional services, digital industries and life sciences.
This economic partnership has been bolstered by the UK–Japan Comprehensive Economic Partnership Agreement (CEPA), which came into force after Brexit, and Japan’s membership of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), further strengthening trade routes for British exporters.
Despite this momentum, regional leaders have warned that central government must do more to support Manchester’s growth trajectory. While the area benefits from devolution through the Greater Manchester Combined Authority (GMCA) and Mayor Andy Burnham’s leadership, local businesses have called for additional investment in infrastructure, skills, and transport links to sustain international confidence.
Foulkes said the government’s “levelling up” rhetoric must now translate into real outcomes.
“Japanese businesses are placing big bets on Manchester’s potential,” he said. “The government must now make sure that domestic policy — from transport and housing to R&D funding — supports that same level of ambition.”
With the region’s growing reputation for science, technology and green industry, and international interest continuing to rise, business leaders believe Manchester is entering a pivotal decade.
If the government matches foreign investors’ enthusiasm with equal commitment, Foulkes said, “the North West could define the next chapter of Britain’s industrial future.”
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Japanese investors bet on Manchester — now UK must follow