Business Facilities - May 2008 - (Page 8)

INTERNATIONAL PROFILE United Kingdom By Bill Trüb The UK’s Most Lucrative Locations, Pound for Pound Bolstered by its powerful currency, the UK offers a sterling business climate, but savvy U.S. companies are sidestepping the expenses of London for cheaper locations. L ondon is the kingpin of the UK’s business economy, with more than half of all inward foreign direct investment pouring into the English capital in 2007, according to Ernst & Young’s European Investment Monitor, an online tracker of European inward investment. But with London’s exorbitant rental rates for office space and generally high operating costs, many companies are moving west into Wales, across the sea to Northern Ireland, and even north to the upper stretches of England. CLOSING SALES IN WALES From its mountainous expanses in the north to its young, booming capital of Cardiff in the south, Wales attracts nearly 10% of the UK’s foreign investment despite being home to less than 5% of the total population. Accessibility to land, workforce, and government officials make Wales a viable option for relocating or expanding companies. In April, U.S. online powerhouse Amazon opened its new logistics and distribution center in Swansea, the second largest city in Wales. The 800,000-square-foot facility is located on 33 acres near Swansea’s seaport, and will create 1,000 new jobs this year, with an additional 1,700 full- and part-time positions to be filled over the next five years. This facility will be Amazon’s fourth and largest in the UK, with others located in Glenrothes and Gourock in Scotland and Milton Keynes in southern England. While Wales is a geographically small country, its size can be a big advantage to businesses looking to relocate quickly. Ian Williams, director of International Business Wales (IBW), notes “incredibly fast links to decisions makers” as a huge factor for companies considering Wales. “Our ministers are available and ready and waiting to make decisions, which can be an enormous advantage to companies not wanting to get held up in a huge bureaucracy,” says Williams. Regarding the Amazon deal, First Minister for Wales Rhodri Morgan says, “The speed of delivery of this project has been exceptional, taking just 16 months from initial approaches between Amazon and the Assembly Government to the opening of this mega-facility.” “We feel that the site’s great location, coupled with the ability to draw from a pool of strong local talent, will make this an extremely effective and efficient operation,” says Allan Lyall, Amazon’s vice president of European operations. While Swansea currently is undergoing a £1 billion facelift of its city center, Wales’ largest city, Cardiff, is busy luring foreign businesses thanks to its redeveloped bay front and significantly lower operating and living costs than London. Sustainable energy is one targeted sector for Wales that has seen growth in the past year and a half. Californ- Cardiff City Hall ian solar panel firm G24 Innovations (G24i) recently invested $55 million for its European headquarters in Cardiff. “Renewable technology is a very new market in the UK, so cluster movement was not a driver for the move to Wales,” says G24i President Clemens Betzel. Instead, proximity to London, which is two hours away by train, drew Betzel to Cardiff, as did the mechanical engineering talent around Cardiff University. IBW and the Welsh Assembly were able to quickly reach an agreement with G24i, sparking a trend of fast deal making that is becoming a hallmark of Welsh business practice. “We were looking for a world headquarters in Europe,” says G24i’s sustainability programs manager, Eliot Abel. “For us, having agencies like International Business Wales supporting us as we move forward, and the backing of a country that has green credentials and a real commitment to sustainable energy, as well as access to the strong, skilled workforce that exists in Wales, were important issues.” 8 M AY 2 0 0 8 PHOTO CREDIT: BILL TRÜB

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Business Facilities - May 2008 Contents First Word Snapshots The UK's Most Lucrative Locations, Pound for Pound Economic Development in a Flash Corporate Moves: Massachusetts Florida: A Ripe Climate for Innovation Innovating Big in Rhode IIsland Retail Set to Ride Out a Recession Corporate Moves: New Jersey South Carolina: A Sweet Spot in the Southeast Endless Opportunities in North Carolina Economic Awakening in the Mohawk Valley Metro Spotlight: Alexandria, LA Where Call Centers Call Home Texas Receives First Business Facilities State of the Year Award Advertiser Index Inside Livexchange

Business Facilities - May 2008

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