Where the world’s largest organisations want to be

Our analysis shows that the UK continues to be by far the most popular destination for global businesses with a European HQ to base their headquarters.

Of the 2018 global Fortune 500 organisations that aren’t European, over half of those with a European HQ base it in the UK (114 out of 201). Germany comes second with 14%, Switzerland is third with 7% and the Netherlands and Belgium, are joint fourth with 5%.

Regional growth

Regional UK cities have played an increasing role in attracting European HQs and supporting growth for a number of reasons. 

In 2013, we analysed the Top 250 Fortune 500 companies according to their choice of European headquarter location. While the number of European HQs in London has declined over the last five years, the number of European HQs in regional cities has dramatically increased. Now, a quarter of the European HQs in the UK are based outside of London, spread around various locations, compared to only 4% in 2013.

The strength of the UK university system - for example Cambridge, Leeds, Manchester and Oxford being examples here - creates deep talent pools across the UK. This is combined with a lower cost of operations (premises, staff and running cost) in UK regions compared to London. Manchester’s Inward Investment Agency (MIDAS) estimates that its’ almost a third cheaper for businesses to operate outside of London.

Easy rail access to London is also helping bolster UK regions. And international connectivity is also key for foreign investors. Direct flights from Manchester to China and India have been launched in the last three years and are predicted to make significant contributions to driving economic, cultural and academic exchange between the North of England and China and India.