EIM Online reveals Europe's top cities and investors
EIM Online reveals Europe's top cities and investorsKeywords: Information management,Internet, Property investment
The picture of which companies are locating their business activities where– and why – across Europe could become much sharper with the aid of an online information service dedicated to the recording of inward investment projects across Europe.
The service was launched at MIPIM (the global real estate exhibition in Cannes, 14-17 March) by an Ernst & Young team which specialises in advising investors seeking locations and development agencies seeking investment. The firm says that the information service is the only one to combine the detail of individual projects (rather than mere financial flows) with objective, factual information on cities and regions. The service, called EIM Online,derives from an existing database (the "European Investment Monitor")started in 1997. An important tool for clients of Ernst & Young's location services team, EIM has covered around 9,500 investment projects to date.
Top cities for 2000
First cuts of the analysis using EIM Online reveals that last year's most popular cities for foreign direct investment projects remain London and Paris (in that order). Barcelona has jumped from fifth to third position and Amsterdam from eleventh to fourth. Dublin remained in the top five cities, all of which increased their number of projects on 1999's total. Budapest retains its eighth ranking overall and its position as Eastern Europe's most popular city. Stockholm enters the "top ten" for the first time as a result of growth in the software and electronics sector (see Table I).
A European "super league" of cities is now in evidence. The top five are: London; Paris; Barcelona; Amsterdam; and Dublin. Despite the threat of overheating (when infrastructure threatens to become overburdened or there are not enough workers to go round), 2000 figures show that the top five continue to receive an increased number of projects, especially in the four top-growth sectors of software, telecommunications, business and financial services. The top five cities increased their market share of investment projects from 14 per cent to 18 per cent last year.
Top investors for 2000
Siemens maintains its premier ranking in 2000 (as the previous three years),while General Electric, IBM and IKEA enter for the first time (see Table II). Established players in the new economy – Siemens, IBM, Philips, GEC, Sony,Colt Telecom and Deutsche Telekom – continue to increase their dominance of the top investor league (70 per cent of the top ten). The entry of Colt and Deutsche Telekom evidences the explosive nature of growth in the telecommunications sector. So-called old economy players are still there. Despite their woes, the automotive sector still retains three of the top ten investors: Ford, DaimlerChrysler and Volkswagen.
Ernst & Young location consultant, Mark Hughes, says that the on-line foreign direct investment facility will be invaluable to anyone wanting to make informed decisions on the location of headquarters, contact or shared service centres, manufacturing, logistics and research and development projects.
"Location planning can now take place based on a clear understanding of where specific industries or activities such as R & D facilities or call centres are locating. For the first time, companies will have the kind of information at their fingertips that will enable them to ask informed questions about where they should locate or expand. They may take another look at the viability of existing hot spots and move on to undiscovered areas that can service their needs just as effectively, and probably on better terms. EIM Online should empower decision makers to innovate rather than run with the crowd."
EIM Online will help development agencies reassess their "brand" values
Development agencies will also benefit significantly from the research facility. They will be able to identify emerging sector and activity trends,develop marketing strategies and undertake benchmarking and "lost project"analyses.
Says Tom McClean, a consultant within Ernst & Young's location team focusing on the regional development agency: "EIM Online shows project types clustering around a limited number of locations with discernable brand values."He cites Dublin's profile in shared services and software; Stockholm and the Cote d'Azur's in software and information and communications technology design;Ireland, Scotland and The Netherlands are the focal point for customer contact centres. The Czech Republic, Hungary and Eastern France bear the imprimatur of the automotive components' manufacturer. Says McClean: "EIM Online will help agencies discover what their brand values are, identify who the competition is and focus on key competitive positioning issues."
He says that regions should be realistic about what they are capable of being famous for. "There would be little point in, for example, Belfast or Bordeaux trying to attract European headquarters because they tend to go to London or Paris. There is every point, however, in such a city focusing on shared-service centres for the financial services industry." EIM Online shows that the key successful locations for financial services are the Republic of Ireland and UK regional locations, including Bristol, Manchester and Merseyside.
EIM stands for European Investment Monitor. Started in 1997, this comprehensive database of inward investment is the only source of data to combine information based on projects rather than financial flows with objective, factual information on cities and regions that eschews promotional hype.
Erns & Young's ILAS teams use EIM help investors seeking locations and regional development agencies seeking investment. It has covered, to date,around 9,500 projects.
For further information on EIM Online, please contact members of Ernst &Young's International Advisory Service steams:
Barry Bright, Director: +44 (0) 790 1518811 (or + 44 (0) 207 951 3038);E-mail: bbrlght@cc.ernsty.co.ukMark Hughes, Consultant: Tel: +44 (0) 7770 647948 (office Tel: + 44 20 7951 0015); E-mail: maito:mhughes2@cc.ernsty.co.ukTom McClean, Consultant: Tel: +44 (0) 207 951 6381; tmcclean@cc.ernsty.co.uk
