Japanese investors bet on Manchester but Whitehall must do the same

With Greater Manchester attracting almost £118 million from Japanese businesses over the past year, the government must support regional growth to match international confidence, says the head of one of the city’s major law firms.

Japanese companies such as Astemo, Daikin and Mizkan have established significant operations or made recent investments in the area, highlighting Manchester’s growing role as a global business hub, particularly in advanced manufacturing and innovation.

“While London dominates the headlines for productivity, international businesses are increasingly betting on Manchester, highlighting the city’s potential and the need for more balanced national support,” says Ed Foulkes, managing partner at Clarke Willmott in Manchester.

“Attracting investment like this demonstrates that regions outside London can compete globally. With targeted infrastructure and government backing, the North West could secure the next wave of international business and innovation.

“This investment also strengthens skills, R&D and supply chains, and with the right backing, the region could attract the next generation of global businesses in emerging sectors such as green technology and digital innovation.

“The confidence shown by Japanese companies should encourage other international investors to consider Manchester as a strategic base in the UK.”

In total, more than 25 Japanese companies now operate in Greater Manchester, including major firms such as NGK, Hitachi, Shimadzu, Sharp, Dentsu, Brother and Sun Chemical.

Ed Foulkes says: “The activity highlights Manchester’s growing influence in advanced manufacturing and innovation and its ability to attract international business. Companies are already showing confidence – now it’s time for the government to match it with strategic support.”

Manchester topped the UK rankings outside London for attracting foreign direct investment in 2024 – the third time in five years – highlighting the city’s growing international appeal.

Japan is one of Greater Manchester’s most important economic partners, with goods exports to the country reaching £99 million in 2022 and service exports £151 million in 2021.

Clarke Willmott LLP is a national law firm with offices in Birmingham, Bristol, Cardiff, London, Manchester, Southampton, and Taunton.