The UK’s diverse business culture has the capacity to offer a base to a wide variety of commercial organisations.
However, there are many other countries that will happily offer companies cheaper labour and rents. No one, not even the UK, has escaped the surge in call centre and back office relocations to India and the Far East. These nations offer these services just as efficiently as other European nations but at a fraction of the cost. An average hourly Indian wage (gross) is 46p compared with London’s £9.63.
Within Europe, the UK is also competing with eastern European countries. Poland and Slovakia are among those eager to grab a slice of the market. In those countries, call centre hourly wages are £1.94p and £1.43p, respectively.
What the UK has to do is play on its strength, especially in an ever-changing international market. As Guy Douetil, a partner in client solutions at London-based agency Cushman & Wakefield Healey & Baker, points out: “The important thing to understand is that most international firms are relatively footloose for their requirements unless they have a specific market.”
The UK, says Douetil, has the ability to capture a lot of these free-spirited companies because it boasts several unusual features.
Firstly, there is the UK’s flexible labour market. “The ability to hire and fire with relative ease in relation to the performance of your company is one example. In other European countries, France for example, it is much more difficult to fire staff or downsize companies,” states Douetil.
Secondly, there is the availability of a highly skilled, English-speaking workforce. English obviously benefits US companies, but accent is also important. “The attractiveness of the Scottish, North Eastern and Northern Irish accents is also important, especially in call centre terms,” says Douetil.
Lastly, the UK’s communication systems and ease of access to the rest of the globe is a great draw to foreign companies. Every country in the world is accessible from one of five airports in and around London or through the country’s many regional airports.
A metropolitan city
It is then a matter of choosing the right location. London is the first city on most companies’ minds. It is a truly metropolitan city of over 8m people that has everything to offer. In CWHB’s European cities monitor 2004, it came joint top with Paris in the overall rating as the best city for business.
However, other UK cities, such as Manchester, Birmingham, Glasgow and Edinburgh, are rapidly becoming recognised in the international community as good locations for international headquarters.
Close behind is Leeds – which is developing into the UK’s second financial centre – and Bristol.
Smaller places are not forgotten. Cambridge is one of the UK’s leading sites for bio-tech industry. For distribution and manufacturing, the Midlands and the North are favoured. Meanwhile, Cardiff, the Welsh capital, is increasing its profile in Europe.
Research from Jones Lang LaSalle states that the outlook for the UK economy in the medium term does not pose risks to firms: “Consumer spending is set to slow down after strong growth to about trend rates since 1996, but the strong labour market provides a cushion to consumer spending risks.”
A first step for companies looking to establish themselves in the UK is to contact one of the nine regional development agencies. These were set up in 1998 to co-ordinate land use, transport, energy production, development and agriculture — and they all have offices in Brussels.
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If there is something for every business in the UK, then the same can certainly be said about living in the country. Its nightlife is almost legendary, although more in terms of pubs and bars than theatres. The UK has more than 30,000 licensed premises, with Portsmouth on the south coast holding the top prize for the highest number of pubs per head of any city in the country. Alcohol problems Being known for its pubs has also, unfortunately, earned the UK a poor reputation for binge drinking. Although it applies to only a small percentage of the population, The UK’s government is taking steps to clean up this problem area. The UK is soon to see the first of eight Las Vegas-style casinos opening in the country following a relaxation of the government’s gambling laws. High-quality theatres are really only to be found in the larger cities of Manchester, Edinburgh, Glasgow and London, which is famous for its theatre land. Not surprisingly, with a population of around 8m, the capital has the greatest concentration of major attractions. There are more than 6,000 restaurants in London – 22% of the UK’s total. They offer the cuisine of 70 countries on their menus. Finding the pub and restaurant of choice in London may be easier than finding the right, or at least the cheapest, accommodation. London and the South East of England are among the most expensive places in the world to live. Nick Barnes, a residential research specialist for property agent Knight Frank, says the best thing anyone can do when moving to the UK is to “bring lots of money with them”. Barnes adds that the basic process of buying a property in the UK is the same as in continental Europe. The one exception is that structural surveys are more common in the UK. “The best advice I can give is to make sure you do a really good internet search and trawl of local agents. “Also, get to know the market, and work out how long it will take to commute to work, and where you are in the market cycle,” says Barnes. Finding accommodation near your workplace is the obvious thing to strive for in order to reduce travel times. The UK’s transport system is often criticised by its natives. A recent article in the UK’s Guardian newspaper accused the country of “languishing in the rural dark ages” compared with the rest of Europe. However, Cushman & Wakefield Healey & Baker’s European city monitors report 2004 found that London was rated the top city for internal transport links, while Manchester and Glasgow were in the top 13 European cities. Higher education success In education terms, the UK is still trying to revive its secondary education from the slump it has suffered over the past 10 to 15 years. The country does win with its higher education system, which is still regarded as one of the best in the world, and graduates are more highly rewarded financially for their qualifications than most other countries in the top 30 industrialised nations. |
