Food and Beverages Manufacturing PlantA cost/quality comparison(Based on information from the Financial Times fDi Benchmark tool – May 2012)
Competitiveness of Scotland
Value for Money
Overall Attractiveness
Quality of the Location
Annual Operating Costs
Quality Competitiveness
General Business Environment
Labour Availability and Quality
Presence of an Industrial Cluster
Infrastructure and Accessibility
Living Environment
Contents
The following analysis is based on fDi Benchmark, an online location benchmarking tool provided by
the Financial Times (FT)
fDi Benchmark compared the Scottish Central Belt with the leading locations globally for a Food and Beverages
manufacturing plant based on an analysis of over 55 quality factors and 10 cost factors
A key emphasis was placed on:
- Presence of industrial cluster
- Labour availability and quality
- Infrastructure and accessibility
Other factors including the general business environment and living environment were also
assessed
Benchmarking Study
Project Profile Overview
Cost Factor Usage Amount
Property Total Occupancy cost (industrial rent) 33,000 m²Total Occupancy cost (in town office rent) 1,000 m²Utilities Electricity 48,000 100kWhWater 170,000 m³Industrial Gas 1,800,000 m³
Weighting Model Overview Weight
Presence of an Industrial Cluster 45
Labour Availability and Quality 25
Infrastructure and Accessibility 15
General Business Environment 10
Living Environment 5
Employee Type Profile Head count
Manufacturing
Head of Manufacturing 1
Production Manager 7
Production Operative (Highly Skilled) 15
Production Operative (Skilled) 67
Production Operative (Unskilled) 95
Administration
Facilities/Office Services Specialist 12
Secretary 3
fDi Benchmark Matrix
The fDi Benchmark Matrix shows the trade off between cost and quality across the 5 selected locations for the Food & beverages manufacturing plant profile. The average cost and quality score is 100 for the selected locations.
Source: fDi Intelligence, from the Financial Times Ltd
The ‘ideal’ quadrant is the
top left
(high quality/lower operating costs)
fDi Benchmark Matrix
• The matrix is based on the weighting and cost model for the Food & beverages manufacturing plant profile. The weighting model identifies the key location criteria for the project and the cost model shows the primary cost inputs for the operation. The cost and quality scores are calculated using real data on all the location requirements and cost inputs.
• The results indicate the different location solutions for the investor as follows: the Scottish Central Belt and Barcelona
offer higher quality at lower cost than the average of all the selected locations
New York City offer higher quality but at higher cost
Montreal offer lower cost, but at lower quality
The Operating Cost value is in GBP - United Kingdom Pound
Location Qualitative ScoreOperating Cost
IndexOperating Cost
Value
Barcelona 112.6 94.5 7,959,071
Lyon 72.3 101.1 8,511,616
Montreal 72.5 98.9 8,326,333
New York City (NY) 115.1 109.3 9,206,066
Scottish Central Belt 127.5 96.3 8,106,190
Source: fDi Intelligence, from the Financial Times Ltd
Location Attractiveness Index
The location attractiveness index shows the overall attractiveness of the 5 selected locations for the Food & beverages manufacturing plant profile. The ratio of quality to cost is 50:50
Source: fDi Intelligence, from the Financial Times Ltd
Cost Quality Competitiveness
The cost quality competitiveness uses the results of the fDi Benchmark Matrix to show the value for money of each location option. The graph shows that:
The top location offering the highest quality for a given level of cost is the Scottish Central Belt the Scottish Central Belt also offers an above average level of quality and good value for money as its relative quality is
higher than its relative cost
Source: fDi Intelligence, from the Financial Times Ltd
Cost Competitiveness
The annual operating cost calculation for Food & beverages manufacturing plant is based on the following primary input costs: Labour Cost, Property and Utilities
The average cost across the selected locations for Food & beverages manufacturing plant is GBP 8,421,854
The greatest cost saving between the selected locations is GBP 1,246, 994 per annum The values in the chart below are in GBP - United Kingdom Pound
Source: fDi Intelligence, from the Financial Times Ltd
Cost Competitiveness
Location Labour Cost Property Utilities
Barcelona 4,253,539 2,649,003 1,056,528
Lyon 5,130,684 2,455,161 925,770
Montreal 5,354,792 2,097,775 873,764
New York City (NY) 6,829,775 1,961,164 415,125
Scottish Central Belt 3,692,327 3,139,578 1,274,284
The location with the lowest operating costs is Montreal
In terms of the individual cost factors, the location with the lowest costs is:
Labour Cost: the Scottish Central Belt Property: New York City Utilities: New York City
The values in the table below are in GBP - United Kingdom Pound
Source: fDi Intelligence, from the Financial Times Ltd
Quality Competitiveness
The quality competitiveness assessment is based on the weight model for the Food & beverages manufacturing plant profile which assesses each location across the following location factors: General Business Environment, Labour Availability and Quality, Presence of an Industrial Cluster, Infrastructure and Accessibility and Living Environment. The average score for the selected locations is 100.
The location with the highest quality score is the Scottish Central Belt
Source: fDi Intelligence, from the Financial Times Ltd
Quality Competitiveness
Location
General Business
Environment
Labour Availability and
QualityPresence of an
Industrial ClusterInfrastructure
and AccessibilityLiving
Environment
Barcelona 10 29 58 12 4
Lyon 10 16 31 10 5
Montreal 17 20 20 9 6
New York City (NY) 22 41 37 11 5
Scottish Central Belt 16 20 78 8 5
In terms of the individual quality factors, the location with the highest score is:
General Business Environment: New York City Labour Availability and Quality: New York City Presence of an Industrial Cluster: the Scottish Central Belt Infrastructure and Accessibility: Barcelona Living Environment: Montreal
Source: fDi Intelligence, from the Financial Times Ltd
General Business Environment
The quality competitiveness breakdown for General Business Environment for the Food & beverages manufacturing plant profile is shown below
The location with the highest overall score for General Business Environment is New York City
Source: fDi Intelligence, from the Financial Times Ltd
General Business Environment
Location
Economic growth and stability
Operating riskTaxation and
incentivesRegulatory
environment
Barcelona 1.90 2.52 2.56 2.72
Lyon 1.38 2.88 1.67 4.31
Montreal 1.54 4.75 4.38 6.49
New York City (NY) 8.97 5.31 3.11 4.43
Scottish Central Belt 1.21 7.03 3.28 4.55
In terms of the individual quality criteria within General Business Environment, the location with the highest score is: Economic growth and stability: New York City Operating risk: the Scottish Central Belt Taxation and incentives: Montreal Regulatory environment: Montreal
Source: fDi Intelligence, from the Financial Times Ltd
Labour Availability and Quality
The quality competitiveness breakdown for Labour Availability and Quality for the Food & beverages manufacturing plant profile is shown below
The location with the highest overall score for Labour Availability and Quality is New York City
Source: fDi Intelligence, from the Financial Times Ltd
Labour Availability and Quality
Location
Overall size of labour market
Tightness and competition for
labour
Flexibility of labour regulations
Barcelona 4.27 21.16 3.60
Lyon 1.57 9.91 4.05
Montreal 3.29 9.91 6.78
New York City (NY) 19.92 10.73 9.98
Scottish Central Belt 2.20 10.80 6.84
In terms of the individual quality criteria within Labour Availability and Quality, the location with the highest score is: Overall size of labour market: New York City Tightness and competition for labour: Barcelona Flexibility of labour regulations: New York City
Source: fDi Intelligence, from the Financial Times Ltd
Presence of an Industrial Cluster
The quality competitiveness breakdown for Presence of an Industrial Cluster for the Food & beverages manufacturing plant profile is shown below
The location with the highest overall score for Presence of an Industrial Cluster is the Scottish Central Belt
Source: fDi Intelligence, from the Financial Times Ltd
Presence of an Industrial Cluster
Location Size of industry Track recordIndustry
Specialisation
Barcelona 24.50 21.43 12.08
Lyon 15.51 4.02 11.95
Montreal 10.89 6.70 2.50
New York City (NY) 24.93 9.38 2.63
Scottish Central Belt 47.92 14.73 15.84
In terms of the individual quality criteria within Presence of an Industrial Cluster, the location with the highest score is: Size of industry: the Scottish Central Belt Track record: Barcelona Industry Specialisation: the Scottish Central Belt
Source: fDi Intelligence, from the Financial Times Ltd
Infrastructure and Accessibility
The quality competitiveness breakdown for Infrastructure and Accessibility for the Food & beverages manufacturing plant profile is shown below
The location with the highest overall score for Infrastructure and Accessibility is Barcelona
Source: fDi Intelligence, from the Financial Times Ltd
Infrastructure and Accessibility
Location
Access to major overseas markets
Quality of utilitiesQuality of ICT infrastructure
Barcelona 3.81 5.18 2.51
Lyon 2.42 3.95 3.94
Montreal 2.60 3.50 2.66
New York City (NY) 3.75 3.69 3.52
Scottish Central Belt 2.42 3.68 2.36
In terms of the individual quality criteria within Infrastructure and Accessibility, the location with the highest score is: Access to major overseas markets: Barcelona Quality of utilities: Barcelona Quality of ICT infrastructure: Lyon
Source: fDi Intelligence, from the Financial Times Ltd
Living Environment
The quality competitiveness breakdown for Living Environment for the Food & beverages manufacturing plant profile is shown below
The location with the highest overall score for Living Environment is Montreal
Source: fDi Intelligence, from the Financial Times Ltd
Living Environment
Location
Cost of livingAttractiveness for international staff
Barcelona 2.07 2.29
Lyon 2.77 1.97
Montreal 2.90 3.58
New York City (NY) 2.01 2.73
Scottish Central Belt 2.74 1.93
In terms of the individual quality criteria within Living Environment, the location with the highest score is: Cost of living: Montreal Attractiveness for international staff: Montreal
Source: fDi Intelligence, from the Financial Times Ltd
To realise the potential,please contact:
Scottish Development International150 Broomielaw, Atlantic Quay Glasgow G2 8LU Scotland, UK T +44 141 228 2828F +44 141 228 2089www.sdi.co.uk
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