On the face of it, Swansea lies some way off the beaten track. Located to the west of Cardiff, it is some distance away from the great conurbations (and markets) of the North, Midlands and South of England, but that hasn’t prevented the City and its surrounding area from attracting businesses of all sizes.
The latest big name to arrive is Amazon, which has recently set up its fourth UK distribution centre in the Swansea Bay area. According to Fiona Rees, executive director of the Swansea Bay Futures development organisation, the area ticked all the boxes required by the US company. “We had the communications, a loyal and willing workforce and we (the local agencies) were able to give Amazon a lot of support in setting up.”
Amazon isn’t the only major company to locate in Swansea. HSBC, BT, Admiral Insurance and Virgin Media are also operating in and around the city but there are plenty of young, fast-growing companies too. Indeed, according to recent research by KDB, Swansea is one of the entrepreneurial hotspots of Wales.
Various factors have contributed to the City’s success. As Fiona Rees stresses, Swansea Bay is served with very good communications links. “We’re on the motorway network and we are also served by a mainline rail link, so there is good access to the rest of the UK mainland.” Meanwhile, for international travellers, Cardiff International Airport is just down the road. “Many people prefer it to the London airports,” says Rees.
There is also a plentiful supply of labour.At the higher end of the market,the City boasts two universities,which ensure that a steady stream of graduates is available to local businesses. More generally, the area falling within the remit of Swansea Bay futures has a working population of around 1.5 million people within driving distance. “And they tend to be very loyal,” says Rees. “There is a very low employee turnover rate around here.”
It was the presence of a skilled and willing labour force that was instrumental in keeping gym and fitness equipment exporter Escalade International in the area. As export manager Anita Wood explains, after the company was saved by a management buyout there wasa plan to move the business to Yorkshire. “It soon became apparent that wasn’t going to happen,” she says. “The area offered too many advantages in terms of the skills of the labour force and also the support offered to local businesses.”
Support for business takes many forms, including grants to companies who locate in the region. However, in the case of Escalade, the most valuable help has been non financial in nature. “We have received a lot of support from International Business Wales – mostly in terms of the expertise they can provide,” says Wood. For instance, as an exporter of sports and gym equipment, Escalade has benefitted both from trade missions organised by International Business Wales and the research on overseas markets that the organisation provides.
Like many other British Cities, Swansea is pressing ahead with the redevelopment necessary to establish its position as a business hub for the 21st century. There are new offices and units around the old docks area and innovative projects such as the Ethos Building which will sell rather than rent space to incoming businesses. And asFiona Rees points out. “Most of the developments are close to the coastline and offer access to the countryside.”
And that’s a surprisingly important factor.Quality of life is a major consideration for companies relocating to the Swansea area and local agencies and developers have been anxious to provide not only good office and factory space, but also an attractive environment. Anita Wood says the area offers the best of both worlds. “We are surrounded by unspoilt countryside and wonderful beaches, but there sitting beside a bustling cosmopolitan city.”