London has seen a major increase in the number of international companies making new investments in the capital, according to the city’s official promotional organisation.
London & Partners helped 260 international companies establish their businesses in London in the 2013/14 financial year, 16% more than the 224 companies it assisted in 2012/13, according to new figures released by the organisation today.
The figures include a record number of technology companies, with 90 tech firms seen arriving in London in the 2013/14 financial year, up on the previous high of 88 in 2012/13. London & Partners also assisted record numbers of firms in the business services (40) and creative industries (33) sectors in 2013/14.
The new arrivals are creating jobs in London across a variety of industries – including technology, life sciences, retail, financial services and construction – leading to greater economic prosperity in the capital. According to London & Partners, the new 2013/14 arrivals will create 4,407 new jobs in London after their first year of operation, and 9,141 new jobs after three years.
The year saw a significant increase in the number of companies arriving from the US and China, highlighting the appeal of being in London to firms seeking access to European markets and talent pools. In addition, the number of companies coming to London from Europe also increased, particularly in the tech and business services sectors, with many European firms viewing London as a launch pad for them to better reach global markets.
From the US, 54 companies set up operations in London – up from 49 in 2012/13 – with more US tech firms (32) arriving than ever before, including household names such as LinkedIn. Since the launch of the Tech City initiative in 2010, London & Partners has helped 89 US tech firms to set up in the capital, boosting growth in the sector and contributing to the regeneration of East London.
Lee Schuneman, Studio Head of Lift London – a studio set up in London by Microsoft Studios – said: “Being based in London is central to our studio’s identity, sharing a spirit of diversity, energy and creativity. It also helps us attract the best talent from around the world who are drawn by London’s cultural diversity and status as a truly global city. There’s no better place in the world from which to create 21st Century entertainment experiences for global audiences.”
London & Partners also helped to secure considerable new overseas investment into London’s major regeneration projects, which will result in new housing and major infrastructure improvements for Londoners. Current investments from overseas companies – worth around £3 billion in total – include plans by Chinese company ABP to develop the Royal Albert Dock project into a new business district, and the construction by China’s Dalian Wanda of a new £700m hotel at Nine Elms.
In total, 24 companies from China – including firms from the business services, creative industries and tech sectors – arrived in London in 2013/14, up from 22 in 2012/13. London & Partners expects the new Chinese companies will create 1,138 jobs in the city after three years of operation.
Mr Lizhou Zhang, General Manager of Wanda (UK), said: “We are extremely excited to be operating in London. The city is one of the main business and financial hubs in the world, and it is the perfect place for us to be in order to develop our major new project, all while reaching new markets and helping us to achieve our international ambitions. London has been extremely welcoming to us and is an exceptional place to do business, and London & Partners was of great assistance in helping us begin operations here. We look forward to being in London for many years to come.”
From Europe, London & Partners helped 92 companies arrive over the business year, up from 59 in 2012/13, with the increase in part due to a rise in the number of European tech companies seeking to access London’s talent base and to better reach international markets. In the tech sector, 40 European companies – including major French digital marketing firm Solocal – set up in London over the year, against 30 in 2012/13.
Bruno Berthezene, Solocal Group UK Country Manager, said: “London was a natural place for Solocal to expand into as we seek to reach new markets and develop new international opportunities. By being in London we are able to access more brands and partners to work with, in a city with great digital and retail ecosystems.”
Gordon Innes, CEO of London & Partners, said: “London has experienced a stellar year, in which the city has attracted excellent companies from around the world to invest, develop and grow their businesses here. London has many outstanding attributes that are recognised worldwide, including a deep pool of talent, superb access to markets and financial backing, and a well-earned reputation for innovation and creativity. I am proud that London & Partners has been able to showcase these strengths to the outside world, not only helping as many companies as possible to come to our city, but also creating new jobs and economic growth that will benefit both London and the UK.”
David Slater, Director of International Business Development at London & Partners, said: “We are seeing more and more companies from around the world look to London as the natural place for them to expand internationally, particularly in the city’s tech sector, which has boomed in the past two years. Companies from the US and China see London as the ideal springboard from which to reach UK and European markets, and European companies also see that they will be more able to reach global partners and customers if they have a presence in London. We expect to help even more international firms come to London and be successful in 2014/2015.”
In total, London & Partners estimates that its work in encouraging companies to invest in the capital had a positive economic impact worth £100m, up from £95m in 2012/13.
