Surge in energy, tourism, and digital tech sectors for Newcastle and Gateshead
Invest Newcastle supported 31 new companies establishing themselves in the area during the year ending 31 March, as well as nine business that expanded their operations, marking the second highest level since it began in 2013.
These businesses are expected to create 1,600 jobs over the next three years, and contribute around £62m in gross value added to the local economy.
The sectors attracting investment last year span across sectors such as energy and sustainability, responsible for 26% of all projects, followed by the visitor economy (23%), corporate services (19%), and digital and tech (16%).
The city also saw investments in the defence and creative industries sectors, both of which are predicted to become major growth areas for Newcastle and Gateshead over the coming years.
Notable new arrivals include Neptune North, a software development company, which is creating up to 200 jobs at Bank House and Atom Bank, a fintech company with deep roots in the North East, which has relocated its headquarters to The Pattern Shop, bringing more than 400 jobs to the city.
Life sciences and drug development consultancy Coronado Research also opened an office in Newcastle last year, as did construction management business Rider Levett Bucknall and planning consultants Axis.
Gateshead saw the arrival of energy storage and battery technology business, Titanvolt, alongside companies such as Kada Research, Battlekarts and Metro Bank.
While overall investment levels for the city remained high, market conditions point to a changing environment, with companies taking longer to commit to new locations and are initially creating fewer jobs upon entry.
A number of projects also came about as a result of relocation or consolidation from other parts of the UK rather than greenfield foreign direct investment (FDI) where all the jobs created are new to the domestic labour market.
Nationally, the UK recorded its worst FDI performance since records began in 2024/25, with only 1,375 projects landing over the course of the year.
This is the first time the number of projects has dipped below 1,500 since 2010/11 in the wake of the global financial crisis.
These national trends were reflected locally in a slowdown in the number of business expansions to the lowest levels since 2018/19.
Only nine employers increased headcount during 2024/25 with many citing rising operational costs and inflationary pressures as barriers to growth, however expansions from Accord Healthcare and Siemens Energy show the value of long-term business relationships and strategic investment, with these two companies adding 121 new jobs.
Moving into the new financial year, Invest Newcastle has said it will focus on adapting to shifting market dynamics, such as the increased demand for flexible grade A offices; industrial space for digital tech, such as data centres; and sustainability credentials and green industrial businesses.
