Affected by the ups and downs of the crisis

Foreign companies are showing great interest in the Brabant region, with investments from abroad reaching around € 230 million euros last year and creating some 1,900 new jobs. In the first months of this year, as Brabant catches the eye of even more foreign companies wanting to set up shop, the region seems to benefiting as the global economy recovers. Brabant is feeling the ups and not just the downs the economic crisis.

According to BOM Foreign Investments, 2009 was a reasonably good year for foreign investments, despite the crisis. With the aid of BOM and the Netherlands Foreign Investment Agency (NFIA), 34 foreign businesses opened in Brabant with the total sum of investments reaching € 80 million. The figures represent branches of foreign concerns settling here as a result of autonomous economic developments. In addition, 35 foreign companies already established in the Netherlands relocated their operations to Brabant in 2008; this figure includes a number of takeovers. This “wave of reorganizations” resulted in € 150 million euros worth of investments and created another 950 jobs in Brabant. The total amount of foreign investments in Brabant in 2009 comes to € 230 million, with 1,875 new jobs.

Benefiting from the global economy recovery
Although it’s too early to say that the crisis in Brabant is behind us, the province seems to be benefiting as the global economy recovers. By 2009, it was already clear that, besides the American interest in Brabant, Asian countries such as China and India, with their expanding economies, are showing interest too. That interest is not just limited to optimistic signs observed by the BOM at the seminars held in India, China, Japan and Taiwan in 2009, - it has generated actual investments such as that of the Indian conglomerate Tata Consultancy, which opened its High Tech Center in Eindhoven, and the work that began in Oosterhout on a huge distribution center for the Korean-based LG Logistics. Other highs in foreign investments include Coca-Cola’s expansion in Dongen: a completely new production line – this American investment alone mounts to € 14 million.

Interest from abroad continues to rise in the first months of this year. The number of orientation visits by foreign businesses (fact-finding trips) to this region has reached 46 and rising – as many as in 2009 altogether. The recovering global economy seems to have effected a run on Brabant

The considerable rise in foreign investments in the Brabant economy seems to be caused, on the one hand, by autonomous developments. Thanks to its excellent business conditions, Brabant leads in the “new globalization” in which the emerging nations, new to the global economy, play major parts. In particular, more and more capital-intensive enterprises in the high-tech industry are discovering Brabant. Brabant, having its geographical situation, its efficient infrastructure, its work climate and pleasant living environment to its advantage, also has its innovative setting as one of its new selling points, which explains the high proportion of R&D among the new foreign businesses settling in the region.

Growing shares in a shrinking market
On the other hand, many jobs have been lost in Brabant’s manufacturing industry, one of the unfortunate consequences of the economic crisis. Nevertheless, that development is partially offset by the large number of foreign companies that relocated their operations from other parts of the Netherlands to Brabant in 2009. The relocations or takeovers were often due to reorganizations in the companies in question as a result of the crisis. So despite its shrinking market, Brabant appears to be profiting from the growing stakes. The crisis is not all bad news as despite the losses as the region is also managing to reap some benefits.

Just over a year ago, the BOM claimed that the amount of foreign investments in Brabant would remain more or less the same, despite the crisis. A year on and this optimistic view from early 2009 has been proved to be more than true, while the forecasts for this year are nothing less than splendid. The high number of fact-finding trips in the first months alone has given every reason for these hopes and besides, there are several projects in the pipeline that could lead to quite a few companies setting up business here, bringing corresponding investments from abroad. For instance, it is becoming very likely that the American plans for the construction of a power plant in Moerdijk will be materialized and we can expect other foreign investors to be making some decisions in our favor fairly soon. 2010 could very well be the year of even greater investments and even more new jobs for Brabant.