Corporate Relocation Strategies
In a survey of 500 top executives of companies with an average turnover of £26 million,
about 110 said that their company was quite likely to relocate within the next 5 years. This survey
took place across 40 cities and more than a third of the executives interviewed cited business
expansion as a main reason for future relocations. This factor is proved in the survey to be nearly
twice as important as restructuring or reorganising the business.
There is a widely held view that relocation is a 7 year cycle and that another boom is shortly due in
the market, especially as the recession ends.
Recent research into 10,000 corporate moves organised by Black Horse Relocation shows that as
far as relocation is concerned, the public sector and financial services are the most mobile
businesses followed by energy, utilities, oil, consumer goods and food and drink companies.
The rapid advances in information and communications technology over the past few years have
dictated a change in the attitude towards working practices and employment patterns.
These factors have forced organisations to examine each area of their business. The examinations
have had a direct impact on decisions on relocation. Changes include flexible office layouts, etc.
Business Parks appear to be the obvious solution to this trend. The majority of business park lettings over the past year have been consolidations or relocations, and indeed many lettings
have been of premises purpose-built for their occupants. However, there are many other suitable
possibilities and a proper investigation into possible premises is essential.
Staff considerations have a considerable influence on corporate relocation strategy. Suitable
accommodation has to be found for staff when relocated often at considerable cost to the company.
Staff losses are also a significant factor. Staff often refuse to go with companies and whenever there
is a company move, no matter how short that move, the company is guaranteed to lose some staff.
Relocations can be a highly emotive subject for staff, and companies should recognise this and
include the proper management of this issue as a key part of their relocation strategy.
A truly effective relocation strategy incorporates a mix of strategies for the identification of suitable
property(ies), strategies for effective human resource management and of course the business aspect
of the relocation. Companies need to plan their strategies very carefully indeed using "on the
ground" specialists when they possibly can.
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Information Source: Insight Information Services Database
Programmers: First Computing Solutions