London firms expanding overseas, not in the capital, finds CBI
29 July 2013
An increasing number of London firms are looking to expand, and casting aside last year’s recruitment freezes, but more are looking to go overseas with that expansion.
Mon, 29 Jul 2013An increasing number of London firms are looking to expand, and casting aside last year’s recruitment freezes, but more are looking to go overseas with that expansion.
The survey from the Confederation of British Industry (CBI), which spoke to 138 chief executives of leading companies in London, found that nearly two-thirds (62%) plan to grow next year, compared with 53% when questioned in December.
And the number of firms freezing recruitment is now 17%, its lowest level in two years, down from 31% at the end of last year and 51% a year ago.
While 68% of firms are still only hiring when essential, 48% of respondents said that they had already been increasing headcount and that they expect to continue to do so. Apprentice hiring has picked up slightly from 37% in December, to 39%.
When asked where they were looking to expand, just 29% of those growth-ready firms said they would do so in the nation’s capital, just over half the 54% previously, while the 45% of firms looking to grow overseas is up from 27%.
Sara Parker, CBI director for London, said: “This is a wake-up call – we need to make sure that London does not lose ground to global rivals.
“We urgently need to translate some of the good work that has been done on paper, in the Mayor’s 2020 vision, the Roads Task Force report and by the London Finance Commission, into action.”
As in the past two surveys, overall operating costs were cited as the city’s main weakness. Housing was highlighted as the second most significant weakness, rising from third place in December. Transport was ranked third.
London’s strengths stayed the same as in the last survey: the skills and talent pool, access to global markets and proximity to customers and clients.
The survey from the Confederation of British Industry (CBI), which spoke to 138 chief executives of leading companies in London, found that nearly two-thirds (62%) plan to grow next year, compared with 53% when questioned in December.
And the number of firms freezing recruitment is now 17%, its lowest level in two years, down from 31% at the end of last year and 51% a year ago.
While 68% of firms are still only hiring when essential, 48% of respondents said that they had already been increasing headcount and that they expect to continue to do so. Apprentice hiring has picked up slightly from 37% in December, to 39%.
When asked where they were looking to expand, just 29% of those growth-ready firms said they would do so in the nation’s capital, just over half the 54% previously, while the 45% of firms looking to grow overseas is up from 27%.
Sara Parker, CBI director for London, said: “This is a wake-up call – we need to make sure that London does not lose ground to global rivals.
“We urgently need to translate some of the good work that has been done on paper, in the Mayor’s 2020 vision, the Roads Task Force report and by the London Finance Commission, into action.”
As in the past two surveys, overall operating costs were cited as the city’s main weakness. Housing was highlighted as the second most significant weakness, rising from third place in December. Transport was ranked third.
London’s strengths stayed the same as in the last survey: the skills and talent pool, access to global markets and proximity to customers and clients.
