Relocation special: Home of the brave

Good things come in small packages, so they say. Judging by Scotland’s commercial success, it might be true. Scotland is a relatively small country in European terms, with an even smaller population. Its five million citizens, two-thirds the population of London, live in an area two-and-a-half times the size of Belgium. There are only four cities with more than 100,000 inhabitants and Edinburgh is about the same size as Liverpool. Not much, you would think, on which to build a thriving economy.

But the Scots have never let mere statistics hold them back. The traditional strengths of Scotland – coalmining, steel-making, shipbuilding and heavy engineering – may be shadows of their former selves, but in their place have risen a cluster of industries in which the country can truly claim to be world class. Combined with the wide open spaces, beautiful landscapes and low cost of living, it’s proving to be an increasingly attractive location for growing businesses. Throw in cheaper housing costs, with an average house price of £134,000, compared to almost £193,000 as the average for England and Wales, and the picture gets even rosier.

‘Scotland is recognised as having a strong international profile and reputation in business terms, one that belies its size. In some sectors, such as financial services and life sciences, its reputation is arguably stronger outside the UK than it is inside,’ says Paul Nunn, director of East West Locations, a site location and inward investment consultancy.

In a recent survey by financial careers job site eFinancialCareers.com, more than ten per cent of financial professionals working in London said they would move to Edinburgh if they could. They’d be in good company: 53,000 people migrated north over Hadrian’s Wall in 2005, more than made the corresponding journey south. Nor should they have any trouble finding jobs on the other side. A report in April 2006 by employment specialists Manpower showed that Scotland is the second most optimistic region in the UK in terms of recruitment intentions: 27 per cent of businesses said they intended taking on new staff in the next three months, compared to a UK average of 13 per cent.

From Silicon Valley to Silicon Glen
One of the fast-growing businesses that will be doing the hiring in 2006 is Vortis Technologies, a wireless antenna technology company based just outside Glasgow. Currently with a staff of ten, CEO Jim Johnson expects to add another 40 or 50 jobs as the business develops. Vortis has been in Scotland since 2005 and Johnson is a great proponent of the benefits of doing business north of the border. His words carry more weight than most: Vortis Technologies was actually founded in Silicon Valley, California, in 2000, but last year Johnson took the momentous decision to relocate the business 5,000 miles to Scotland.

‘Our business didn’t fit with the standard Silicon Valley growth model and the UK was the obvious alternative,’ says Johnson. ‘The decision came down to London or Scotland. We went with Scotland for a number of reasons. First, there’s a strong electronics sector here, so we could hook into a good supply base of local design and manufacture. Secondly, the overheads are lower, and thirdly, because it is a smaller market, it is easier for us to stand out and build a higher profile.’

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