"Western Europe Is Still The Most Attractive Region For Foreign Investment"
Ernst & Young European Attractiveness survey, June 2005
With its massive market and impressive spending power, Western Europe remains the world’s most attractive economic zone for 63% of investors. That is according to the latest Ernst & Young European Attractiveness survey. The survey also confirmed that Europe is standing up to the dual challenge of the United States and China in attracting foreign investors.
Whilst Central and Eastern Europe is often seen as a low cost competitor to China, it lags Western Europe on the global scale of attractiveness with a score of 55%. As James Turley, Chairman and CEO of Ernst & Young stresses:
“What makes Europe remain the most attractive destination for investment is the flexibility and the diversity of markets present in the region. Knowledge is also a key factor drawing investors to Western Europe.”
Other key findings of the research in Western Europe include:
- The automotive and hi-tech sectors are the most dynamic in Europe. They represent 11.6% and 10.9% of international investment in Europe respectively.
- Decision makers overwhelmingly view the service and software sectors as the future drivers of the Western European economy.
- In contrast, Central and Eastern Europe is seen as a viable alternative to China for the automotive, consumer goods and heavy industry sectors due to competitive labour costs.
So, Western Europe is still Number 1 and that’s positive news. However, there is no room for complacency. China’s growth has been impressive and Central and Eastern European countries are developing from low cost workshops to markets with significant potential. Indeed, the Ernst & Young survey stresses that:
“Investors would like to see an easing of regulatory and fiscal policies to encourage investment in Europe.”
But where to go? Here are 5 reasons to invest in the Netherlands
The Netherlands, long Europe's trading crossroads, is an obvious choice when it comes to finding the best place to locate a pan-European operation. The country's pro-business environment creates a gateway to Europe that helps North American companies succeed throughout the continent. A wealth of world-class business partners are firmly engrained in its culture - corporations, universities and research institutes, labour force and government organizations who know how to deal with business challenges in today's economy.
Strategic location in Europe
The Netherlands provides a strategic location to serve and service markets within the European Union as well as central and Eastern Europe, the Middle East and Africa. The central geographical position of the Netherlands combined with a good accessibility and excellent infrastructure are only some of the reasons why numerous European, American and Asian companies have established their facilities in the Netherlands.
International business environment
The Netherlands, long Europe's trading crossroads, is an obvious choice to locate a pan-European operation, whether it is a European headquarters, a Shared Services Centre, a Customer Care Centre, a distribution and logistics operation, or an R&D facility.
The country's pro-business environment creates a gateway to Europe that helps international companies succeed throughout the continent. An international outlook and openness to foreign investment is firmly engrained in the Dutch culture, and this has yielded a wealth of world-class business partners who know how to deal with global business challenges in today's economy.
Superior logistics and technology infrastructure
The Netherlands is with the port of Rotterdam, still ranked as the world's largest seaport while Schiphol Airport is recognised as one of the major business hubs in Europe and has claimed over 100 international awards over the last years.
The Netherlands is also classified as one of the most "wired" countries in the world, a dynamic force in electronic commerce, communications and outsourcing. More than a decade of investment in high-speed Internet, cable and digital communication systems and the rapid adoption of state-of-the-art computer and mobile phone technology has created an ideal base for companies seeking to take advantage of the modern technology.
Highly educated, multilingual & flexible workforce
The Netherlands features one of the most highly educated, flexible and motivated workforces in Europe. Dutch professionals are also among the most multilingual in the world, enabling them to successfully operate in companies across any industry serving customers throughout the continent.
Quality of life
The Netherlands is proud to have a high standard of living. The costs of living, housing, education and cultural activities are lower than in most Western-European countries.