European attractiveness survey
Plan B … for Brexit

The lines of Europe's FDI map are starting to shift: Germany is the UK’s main challenger for the top spot, while France, Ireland and the Netherlands are more distant competitors. But it is not just a competition between countries: European cities are increasingly competing to attract cross-border investment.

Seventy-one percent of foreign investors have already felt some impact of the EU referendum results across their European operations on at least one area of their business, most commonly on operating margins, cost of purchases, and sales.

The referendum and its potential consequences have a knock-on effect on companies, especially in three business areas that are likely to be vital to the economic future of Europe and of the UK: financial services, high technology, and medium-sized companies.

Just 4% of senior executives said they were well-prepared for Brexit, and 1 in 10 companies have no plans at the moment.

If the UK leaves the European single market, foreign investors will need to focus on the short-term consequences for their supply chains and growth perspectives.

Our research suggest that companies and governments in Europe may need to manage their future in an increasingly volatile environment, prepare for creeping protectionism, redesign their location strategies in Europe, tackle the talent conundrum and bridge the finance and innovation gaps.

European instability is the boardroom's number-one cause for risk: Global economic volatility (highlighted by 37% of our respondents) and the fragmentation of Europe (32%) are the biggest worries for the continent's investors.

Brexit is third on the list of concerns but it's a much bigger worry for foreign companies established in the UK (33%). For those not established in the UK, geopolitical, EU instability and the slowdown in trade flows are more urgent concerns.

86% of international companies active in the UK say they plan to stay. The UK's attractiveness will be affected by Brexit, but its competitive advantages remain strong and may strengthen somewhat if the Government improves incentives in key areas.

The lines of Europe's FDI map are starting to shift: Germany is the UK’s main challenger for the top spot, while France, Ireland and the Netherlands are more distant competitors. But it is not just a competition between countries: European cities are increasingly competing to attract cross-border investment.

Seventy-one percent of foreign investors have already felt some impact of the EU referendum results across their European operations on at least one area of their business, most commonly on operating margins, cost of purchases, and sales.

The referendum and its potential consequences have a knock-on effect on companies, especially in three business areas that are likely to be vital to the economic future of Europe and of the UK: financial services, high technology, and medium-sized companies.

Just 4% of senior executives said they were well-prepared for Brexit, and 1 in 10 companies have no plans at the moment.

If the UK leaves the European single market, foreign investors will need to focus on the short-term consequences for their supply chains and growth perspectives.

Our research suggest that companies and governments in Europe may need to manage their future in an increasingly volatile environment, prepare for creeping protectionism, redesign their location strategies in Europe, tackle the talent conundrum and bridge the finance and innovation gaps.