Hervé Grella gives an insight into the UK Trade and Investment for EDHEC Business School
During the past six years, Hervé Grella, Head of PR and Marketing for UK Trade and Investment in France, dedicated his career to develop trade relations between the UK and France . He gave to EDHEC an insight of the UKTI outcomes.
What is the main role of UKTI?
Hervé Grella: UK Trade and Investment provides support to foreign companies looking to set up or expand in the UK and UK-based companies looking to trade internationally. Implementations projects are denominated as Fund Direct Investment (FDI) and could be expansions, acquisitions or new business settlements.
What are the 2008/2009 results in terms of investment?
HG: 2008/2009 has seen an unprecedented total of 1,744 Fund Direct Investment (FDI) projects from 53 countries in the UK, 11% increase on 2007/08 and on its fifth successive year of growth. For the investment projects, 47% were new investments, with the balance split equally between expansions and mergers, joint ventures and acquisitions.
In total, more than 78,000 jobs were created and safeguarded by the inward investment activity in 2008/09– approximately 35,000 newly created and 43,000 safeguarded. These figures, although down last year, are nonetheless encouraging especially given the prevailing economic climate.
Which sectors have been highlighted this year then?
HG: Investment performance was strong across a wide range of sectors, including ICT and life sciences. Significant increases were reported in creative industries, software & computer services and business services, reflecting the UK’s continuing excellence in these areas. Moreover, despite the current difficulties affecting the world’s banking industry; the UK’s financial services sector attracted 20% more investment projects than in 2007/08.
What about France?
HG: In France, the UKTI has implemented 101 projects this current year, which represents more than 2,500 jobs created. Overall, France has 2,000 companies settled in Great-Britain, with a total of 330,000 employees.
France replaced also Germany as the largest European supplier of FDI projects to the UK, with Italy and Switzerland also increasing their supply of FDI projects to the British market. Countries from across the European Union were once again sizeable investors for the UK, with many seeing it as a springboard to North America and global expansion to offset shrinking domestic market opportunity.
With global economic conditions affecting all markets, the acquisition in the North West of Aircelle UK by French company Safran created 150 new jobs and LVMH’s acquisition of Princess Yachts International in the South West safeguarded 1,700 jobs.
Why companies are targeting Great Britain?
HG: I think the UK is probably seen as springboard for global growth! Oftentimes, companies which are launching an international product or export it overseas are experimenting first on the British consumer/companies. Moreover, the UK represent an open door on the rest of the world, especially English speaking one, but not only.
And…regarding EDHEC readers, what is your selling point for investing currently in the UK ?
HG: As you know, the picture for investing in the UK was seen as an expensive bet… Real estate market was very high and had a massive impact on business plans. The economic downturn changed the investment perspective with the falling property price so European entrepreneurs are in a win position. I know for example, one French company which was planning to settle in the conurbation of London, but the crisis allowed to change plans and invest in Mayfair instead – right in the centre of London! Now, the UK is back in the game and still a perfect time to come over.
For more information: https://www.uktradeinvest.gov.uk
Written by Jean-Baptiste Damestoy
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