Breeze Strategy

The Myth of Centrality

Ask almost any inward investment team in the country to list their location’s key selling points and there’s a fair bet that ‘central location’ crops up within seconds.

It sounds good but what does it actually mean?

A cursory search online demonstrates that centrality is anything but a ‘unique’ selling point. More than 30 locations from Scotland to the South Coast describe themselves with the dreaded ‘C-word’:

“fantastic central location at the heart of Scotland” – Stirling

“centrally located on the East Coast main rail line” – North East England

“centrally located in the UK, giving relatively good access to most population centres” – Barrow-in-Furness

“the area’s strategic position - centrally located in the UK” – York

“an enviably central location in the UK” – Merseyside

“offers a great central location” – Chesterfield

“central location on the east coast of England” – North Lincolnshire

“centrally located within the UK” – Leeds

 "has a good central location” – Kirklees

“because of its central location and good communications links” – South Yorkshire

“central location” - Sheffield

“central location with excellent transport links” – Derby

“central location, excellent connectivity” – Nottingham

“our central location” – Stoke-on-Trent

“with a central location, unrivalled communications infrastructure” – Stafford

“a central Location” – Marches

“central location, excellent connectivity” – Coventry & Warwickshire

“attractive location for businesses because of its central location” – East Midlands

“key strengths across sectors include the central location within the UK” – Birmingham

“our area enjoys a central location in the UK with excellent transport links” – Leicester and Leicestershire

“its central location, good transport links…” - Northamptonshire

“central location with good rail and air links” – South Oxfordshire

“with its strategic central location” – Milton Keynes

“central location within the UK” – Cherwell

“our central location and excellent road and rail…” – Swindon

“good central location” - Wycombe

“use our central location to attract some inward investment” – Cheltenham

“offers a central location, good transport links” – Lambeth

“enjoys a central location in the South West region” – Somerset

“central location - just perfect for business” – Cornwall

The phrase has been so misused that it ceases to mean anything to potential investors. By the way, here’s a list of places that are NOT “centrally located” that seem to do quite well: London, Edinburgh, New York, Barcelona, Silicon Valley, Shanghai, Hong Kong and Cape Town.

Sometimes being in the centre is great but you have to say why. This is about articulating a clear business proposition, not simple lines on a map. Proximity and access to suppliers and customers is a key driver for most inward investment projects, but it’s so much more than just being ‘central’.

The Scottish Question

As usual, inward investment has been dragged into the middle of a fierce political debate with both sides claiming that the other “threatens inward investment”. This time it’s the question of Scottish independence. At Westminster this week, David Mundell, the only Conservative MP in Scotland, argued that an independent Scotland would suffer economically and suggested there was a worry among potential inward investors over the uncertainty north of the border.

 

Undoubtedly, for every foreign investor who might be ‘concerned’, Scottish Development International will wheel out a dozen ‘satisfied’ investors who continue to expand in Scotland and may even support independence.  There will be plenty of ‘he says, she says’ in the run up to a referendum, but there are a few interesting inward investment angles to consider that probably won’t get as much airtime:

 

- If Scotland became independent, all the English firms with a Scottish office would become ‘inward investors’ overnight… hence ‘boosting inward investment’

- Conversely, all the Scottish headquartered businesses would become ‘inward investors’ in the rest of the UK… ‘boosting inward investment’ in England too!

- Presumably, an independent Scotland would no longer be part of UK Trade & Investment? Good job then that SDI already has so many overseas offices.

- Will UKTI staff in Glasgow be the first job casualties of an independent Scotland or will they take on consular duties for English tourists that lose passports during Hogmanay?

 

If there is a breakaway, there will be millions of awkward questions… but for inward investors, the key issues will always be ‘where can I make a good profit?’, ‘how much will I get taxed’ and ‘can I get good people’… the colour of the flag that flies in the car park is far less important.

 

2011 Crackers and Turkeys

Yes, it’s time for the 2011 ‘Crackers and Turkeys’ awards for the inward investment community, so ‘in no particular order’, the winners are:

Firstly, the Crackers:

- Best UK Inward Investment Initiative – Tech City (www.techcityuk.com)

The drive to market East London as the Digital Capital of Europe is a fantastic example of using new tools (like the Tech City Map which shows real-time digital relationships between local firms).

- Best UK Inward Investment Project – New JLR Engine Plant, Black Country/Staffordshire

With 750 jobs, £355m investment and thousands of supply-chain spin-offs, the new JLR plant is a major boost for the whole of UK manufacturing.

- Best UK Inward Investment Agency – Scottish Development International

While other parts of the UK try to reconfigure and reorganise, SDI relentlessly talks up Scotland and pursues every sniff of a lead in every corner of the world with great success.

And now the Turkeys:

- Worst Inward Investment Decision by a Company – BAE Systems, Lancashire and Yorkshire

The thousands of defence jobs that will be lost in parts of the UK that really need advanced manufacturing is a devastating blow.

- Worst Inward Investment Decision by a Location - Staines-Upon-Thames

The much-maligned town is to be renamed ‘Staines-Upon-Thames’ in a move that “could boost inward investment”. Really? Opponents have said the name “sounds like river pollution”!

- Worst Inward Investment Decision by a Politician – Multiple Winners

This award is shared between those self-fulfilling prophets of doom that have talked down the UK’s inward investment potential post-riots and EU-rows this year – you know who you are.

(Note: in the interests of fair play we’ve tried to avoid mentioning any agencies that we’ve been involved with this year, who, of course, are all exceptional and would be otherwise worthy crackers!)

 

Christmas Charity – Claire House Children’s Hospice, Wirral

Instead of sending corporate Christmas cards, each December we choose a charity to support from one of the areas that we have been working in recently. This year we are supporting the amazing Claire House Children’s Hospice, Wirral, which cares for children and young people with life-limiting, life-threatening conditions from across Merseyside, Cheshire, North Wales and the Isle of Man. Their work is incredible and we are proud to support them.

www.claire-house.org.uk

 

Happy Christmas to all of our clients, friends and families!