Business Weekly - Cambridge, UK

East of England International chief executive, David Riches (2nd left, front row) and the inward investment teams

Chief executive David Riches said that in every high growth region in Europe and the United States there was “at least one highly effective international airport that is easy to get to and has super reach to key markets that business people want to trade with.”

From the East of England, the top five export destinations are the US, France, Germany, Spain and Ireland. Stansted’s reach across Europe is unrivalled and despite the withdrawal of American carriers caused by the credit crunch BAA officials have high hopes that 2009 will see normal service restored on the transatlantic front as well.

Riches said: “Stansted is part of the vital mix that makes the East of England a competitive location for business. There is no doubt that the growth of the airport and its connections with the rest of the world is a powerful proposition for companies relocating to the region and for local businesses trading internationally.

“Its growth underpins our own economy: Stansted’s success breeds our region’s success. The 2,000-plus overseas-owned businesses located here not only gain access to the UK’s most innovative region but also to major trade centres throughout Europe.

“Stansted boasts more European destinations than any other airport in the world, which ensures that businesses here are truly European operations.”

Research by EEI also shows that being close to Stansted can have a positive impact on the bottom line.

Riches said: “A quick comparison between comparable office premises shows that those near Stansted are at least 25 per cent less expensive than a location near Heathrow; staff cost is also lower.

“And there are other benefits to a Stansted location: Travel times into the City of London are similar but with Stansted you also get the quick access to the East of England’s R & D excellence, proximity to major international ports – Harwich and Felixstowe – and businesses are also on the main logistics routes north.

“For North American and Asian companies setting up in the UK, these factors ensure that they are able to build a truly European operation from a base here.”

EEI is a powerful ally as BAA fights for the right to grow Stansted with a second runway and ancillary facilities. Last year, EEI successes resulted in a total of 1,450 jobs created or safeguarded, with a cumulative estimated salary value of £38.7 million. The cumulative value to the regional economy is estimated to be in excess of £120 million.

David Riches said: “Foreign direct investment is crucial to the continuing growth of the regional economy. In terms of country of origin, the US is the largest single source of investment. However Asia Pacific (including Australia, New Zealand, China, Japan, Korea, all of South-East Asia and India) and Europe (all European countries) both produced a similar number of successes.

“For European companies setting up in the UK, locating within easy access to Stansted is a natural decision – some make it a requirement.”
That was certainly the case for a Dutch agricultural supplies firm; Stansted Airport was the absolute clincher in setting up its UK operation in the East of England.

Schippers UK Ltd’s parent is a long established family firm headquartered in Eindhoven that is one of the largest service suppliers for intensive stock breeders in Holland. Hans Jensema, who was brought in to head up the new UK operation in Peterborough, insisted on proximity to Stansted and was indebted to East of England International’s help in identifying the prime location.

He said: “We were put in touch with East of England International in Cambridge, which was a great help to us in setting up the UK business.
“They put us in touch with Barker Storey Matthews in Peterborough to help us find suitable premises.”

EEI’s brief was that the new HQ had to be within an hour of Stansted Airport and  have proximity to the ports of Harwich and Felixstowe, given the nature of Schippers’ business.

Targeting the farming communities of East Anglia and Yorkshire made an A1 corridor location ideal and Peterborough studded perfectly into the business strategy.

With the fast A1/M motorway link it is only an hour from Stansted Airport – a prime requisite for Schippers UK director Harrie Schippers who can fly in and out with ease from Eindhoven.