The US firm KPMG today released the results of its independent investigation into global cost levels for business locations. Eindhoven found itself in second place for Western Europe as an attractive option for investors, with only Manchester having lower location costs.
The international KPMG Competitive Alternatives Index, which employs substantiated figures, only adds further lustre to the high Foreign Direct Investment (fDi) scores that the fDi magazine awarded to Brabant and Brainport Eindhoven in February.
fDi magazine called Brabant in the Netherlands the region with the best investment strategy in Western Europe and endorsed Eindhoven as one of the three most attractive European cities for investing. The KPMG study underscored these awards with its comparable objective conclusions.
‘We have come full circle’ says Eelko Brinkhoff, Director BOM Foreign Investments, which draws foreign companies to the province of Brabant in the Netherlands. ‘In the wake of excellent evaluations of Brabant and Eindhoven, we are now also showing that we are competitive in terms of costs.’
‘It is of course fantastic that Brainport Eindhoven is demonstrably attractive to investors, and now we have to capitalise on that and work harder than ever by joining forces to acquire foreign companies,’ says Brainport Development’s director Imke Carsouw
Eindhoven the second ‘cheapest’ location in Western Europe
Every two years KPMG conducts an independent study into the investment climate of over 100 cities in ten countries. The most important factor it takes into account is the location costs for labour, operating space, transport, energy and taxes, amongst other things. The Netherlands emerged from the study with the lowest average location costs in Western Europe, aided by Eindhoven, and Manchester was the only city in the region considered to be ‘cheaper’.
Competitive R&D costs
KPMG divided the location costs between the various subsectors, and so the relatively low R&D costs were primarily responsible for the excellent overall showing of the Netherlands, followed by those for high-tech manufacturing. This signifies a major competitive advantage for Brainport Eindhoven, which holds the greatest concentration of knowledge industry companies and related manufacturing industry companies in the country. This results in a picture of R&D costs where Eindhoven leaves most competitors in neighbouring countries trailing, including London, Paris, Berlin and Rome. The region moreover has excellent production opportunities.
Also to be taken into account is affordable access to ‘the smartest square kilometre in the Netherlands’: High Tech Campus Eindhoven. ‘If you’re smart you watch your costs,’ says Campus Managing Director Frans Schmetz. ‘But even more important is the added value offered by Brainport Region Eindhoven, with the High Tech Campus Eindhoven being the R&D hotspot – a unique ecosystem of high-quality multinational companies, SMEs, startups and leading international knowledge institutes. The Campus is the driving force behind open innovation, with knowledge being the fuel it feeds on. This combination of knowledge, expertise and R&D facilities enables companies to bring new technologies to market at an accelerated pace. We have demonstrated time after time that you get more for less money when you operate out of this location.’
At BOM Foreign Investments we believe that investing in Brabant, the Netherlands is the solution for foreign companies looking to optimally invest in Europe; and we strive to make it happen. We facilitate all aspects of foreign direct investment in Brabant by offering personalized guidance through the site selection process and providing relevant and up-to- date information and links to our extensive network; services we continue to provide to companies with an established presence in Brabant. BOM Foreign Investments is part of the Brabant Development Agency (BOM), established in 1983 and funded by the Dutch government and the province of Brabant.