The UK has been ranked as the top investment destination in the world, knocking the US off the top spot.It is the first time the UK has taken the top spot in the rankings by professional services firm EY in the survey’s 10-year history.In 2018 the UK accounted for 10 per cent of global M&A [...]
www.cityam.com
thought this was a bit strange with all this turmoil going on?
For me this is a bit of a double edged sword mate. If I'm not mistaken, this relates to foreign investment and the UK has always been an attractive proposition in that regard, although it is, as you say a bit strange, that we have knocked the US off top position at a time that we would expect overseas investment to be decreasing. It maybe says more about the US than it does about the UK in fairness.
Whilst it's always nice to attract foreign investment, not all of it is entirely positive as regards production and job creation. A lot of this foreign investment is takeover of UK companies, which can actually end in reduced jobs and production, not to mention a longer term drain in resources as the profits from these companies disappear overseas. Some of our very best medium sized companies are being cherry picked by overseas investors. I'm talking the likes of innovative technology and precision engineering companies that you have probably never heard of.
A prime example of the long term effect of this is the car industry. The UK were once up there with the very best, and to a degree still are in terms of manufacture. The difference now is none of car manufacturing is undertaken by UK owned companies. Even names like Jaguar, Rolls Royce, Mini, Land Rover and Aston Martin are foreign owned. As the motor industry evolves, and automation increases productivity even more, the number of manufacturing plants will reduce and you will see a marked de-globalisation until companies are only manufacturing in their home country. We have seen this started already with Japanese and US firms announcing plans to close plants in UK and Europe. It's been convenient to some to blame Brexit for this, but it's a much bigger problem than that.