Multimedia Design Report 2012 A cost/quality comparison (Based on information from the Financial...

Multimedia Design Report 2012A cost/quality comparison(Based on information from the Financial Times fDi Benchmark tool.)

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 Multi Media design

based on an analysis of over 55 quality factors and 10 cost factors

A key emphasis was placed on:

- Presence of industrial cluster

- General business environment

- Labour availability and quality

- Infrastructure and accessibility

Other factors including the living environment were also assessed

Benchmarking Study

Project Profile Overview

Weighting Model Overview Weight

Presence of an Industrial Cluster 35

Labour Availability and Quality 30

General Business Environment 15

Infrastructure and Accessibility 10

Living Environment 10

Employee Type Profile Head count

General Management

Business Unit Manager 1

Project Manager 2

Finance

Accountant 1

Marketing

Marketing Executive 3

Marketing Manager 1

Product Marketing Assistant 3

Product Marketing Executive 2

Sales

Sales Analyst 2

Sales Executive 4

Senior Sales Executive 2

Senior Sales Manager 1

Information Technology

Senior Designer 2

Senior Programmer 2

Senior Web Developer 2

Software Programmer 2

Systems Designer 2

Web Developer 6

Website Development Manager 1

Administration

Secretary 1

fDi Benchmark Matrix

The fDi Benchmark Matrix shows the trade off between cost and quality across the 8 selected locations for the Multi-Media Design Centre (NEW) 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 Multi-Media Design Centre (NEW) 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:Los Angeles and Paris offer higher quality at lower cost than the average of all the selected locations.London, New York City, and Tokyo offer higher quality but at higher costBerlin and the Scottish Central Belt offer lower cost, but at lower quality

The Operating Cost value is in GBP - United Kingdom Pound


Location Qualitative ScoreOperating Cost

IndexOperating Cost

Value

Berlin 76.4 86.4 2,907,905

London 109.8 108.4 3,646,403Los Angeles (CA) 104.5 87.8 2,955,095

New York City 118.2 111.4 3,746,450

Paris 108.4 99.6 3,349,941Scottish Central Belt 83.7 61.4 2,064,224

Sydney 67.2 104.9 3,529,763

Tokyo 131.8 140.1 4,713,610

Location Attractiveness Index

The location attractiveness index shows the overall attractiveness of the 8 selected locations for the Multi-Media Design Centre (NEW) profile. The ratio of quality to cost is 50:50


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 locations offering the highest quality for a given level of cost are the Scottish Central Belt and Los Angeles Los Angeles and Paris offer an above average level of quality and good value for money as there relative quality is higher

than their relative cost.


Cost Competitiveness

The annual operating cost calculation for Multi-Media Design Centre (NEW) is based on the following primary input costs: Labour Cost

The average cost across the selected locations for Multi-Media Design Centre (NEW) is GBP 3,364,173

The greatest cost saving between the selected locations is GBP 2,649,384 per annum

The values in the chart below are in GBP - United Kingdom Pound


Cost Competitiveness

The locations with the lowest operating costs are the Scottish Central Belt and Berlin

In terms of the individual cost factors, the locations with the lowest costs are: Labour Cost: the Scottish Central Belt and London Property: Berlin and Los Angeles (CA)

The values in the table below are in GBP - United Kingdom Pound


Location Labour Cost PropertyBerlin 2,707,621 200,283London 2,380,589 1,265,813Los Angeles (CA) 2,764,746 190,347New York City 3,353,853 392,597Paris 2,788,247 561,693Scottish Central Belt 1,734,086 330,138Sydney 3,109,592 420,170Tokyo 3,667,315 1,046,293


The quality competitiveness assessment is based on the weight model for the Multi-Media Design Centre (NEW) 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 locations with the highest quality scores are Tokyo and NYC



In terms of the individual quality factors, the locations with the highest scores are: General Business Environment: London and the Scottish Central Belt Labour Availability and Quality: Tokyo and New York City Presence of an Industrial Cluster: Tokyo and Paris Infrastructure and Accessibility: London and Paris Living Environment: the Scottish Central Belt and Los Angeles


LocationGeneral Business

EnvironmentLabour Availability

and QualityPresence of an

Industrial ClusterInfrastructure and

AccessibilityLiving

EnvironmentBerlin 11 18 26 11 11London 18 31 40 12 9Los Angeles (CA) 17 36 31 9 11New York City 17 46 35 10 10Paris 11 22 54 12 9Scottish Central Belt 18 23 24 8 12Sydney 15 25 9 7 11Tokyo 12 39 61 11 8


The quality competitiveness breakdown for General Business Environment for the Multi-Media Design Centre (NEW) profile is shown below

The locations with the highest overall scores for General Business Environment are London and the Scottish Central Belt



In terms of the individual quality criteria within General Business Environment, the locations with the highest scores are:

Economic growth and stability: Tokyo and New York City

Operating risk: London and the Scottish Central Belt

Taxation and incentives: London and the Scottish Central Belt

Access to finance: New York City and Los Angeles (CA)

Regulatory environment: Sydney and the Scottish Central Belt


Location

Economic growth and stability

Operating risk

Taxation and incentives

Access to finance

Regulatory environment

Berlin 0.27 2.82 3.89 2.08 2.38London 0.92 6.88 5.24 2.24 3.11Los Angeles (CA) 0.74 5.20 5.10 2.57 3.02New York City 1.03 5.20 4.96 2.57 3.02Paris 0.90 2.85 2.71 1.95 2.99Scottish Central Belt 0.26 6.88 5.24 2.24 3.11Sydney 0.31 3.61 5.06 2.29 4.04Tokyo 1.57 2.54 3.80 2.05 2.34


The quality competitiveness breakdown for Labour Availability and Quality for the Multi-Media Design Centre (NEW) profile is shown below

The locations with the highest overall scores for Labour Availability and Quality are Tokyo and New York City



In terms of the individual quality criteria within Labour Availability and Quality, the locations with the highest scores are:

Overall size of labour market: Tokyo and New York City

Tightness and competition for labour: Los Angeles (CA) and Berlin

Experienced industry-specific staff: Tokyo and New York City

Non-experienced staff: New York City and Paris

Flexibility of labour regulations: New York City and Los Angeles (CA)


Location

Overall size of labour market

Tightness and competition for

labour

Experienced industry-specific

staff

Non-experienced

staff

Flexibility of labour

regulations

Berlin 1.65 2.32 4.01 3.38 6.82London 4.17 1.64 6.38 5.94 12.86Los Angeles (CA) 5.52 1.90 4.15 6.25 18.61New York City 7.19 1.52 10.39 8.09 18.61Paris 3.67 1.47 3.89 6.85 5.96Scottish Central Belt

0.79 1.53 2.64 4.84 12.86

Sydney 1.39 0.84 5.90 6.67 9.86Tokyo 11.62 0.76 10.64 5.97 10.41


The quality competitiveness breakdown for Presence of an Industrial Cluster for the Multi-Media Design Centre (NEW) profile is shown below

The locations with the highest overall scores for Presence of an Industrial Cluster are Tokyo and Paris



In terms of the individual quality criteria within Presence of an Industrial Cluster, the locations with the highest scores are:

Size of industry: Tokyo and London

Track record: London and NYC

Research and Development Capabilities: Tokyo and New York City

Export competitiveness: New York City and Los Angeles (CA)

Industry Specialisation: Tokyo and Paris


Location

Size of industry

Track recordResearch and Development Capabilities

Export competitiveness

Industry Specialisation

Berlin 1.95 1.64 2.24 10.88 8.95London 5.31 9.67 2.09 10.21 12.53

Los Angeles (CA)1.84 2.43 6.10 15.91 5.13

New York City 2.53 5.10 7.81 15.91 4.00Paris 4.05 4.14 4.60 7.47 33.98Scottish Central Belt

1.55 0.54 1.30 10.21 10.13

Sydney 0.64 2.21 1.27 3.82 1.16Tokyo 10.13 2.28 16.59 9.59 22.12


The quality competitiveness breakdown for Infrastructure and Accessibility for the Multi-Media Design Centre (NEW) profile is shown below

The locations with the highest overall scores for Infrastructure and Accessibility are London and Paris



In terms of the individual quality criteria within Infrastructure and Accessibility, the locations with the highest scores are:

Access to major overseas markets: London and Paris

Quality of local infrastructure: Tokyo and New York City

Quality of utilities: Berlin and Tokyo

Quality of ICT infrastructure: Paris and Tokyo


LocationAccess to major

overseas marketsQuality of local infrastructure

Quality of utilitiesQuality of ICT infrastructure

Berlin 1.98 2.37 4.25 1.99London 4.00 2.02 3.27 2.27Los Angeles (CA) 1.10 3.06 3.29 1.56New York City 1.85 3.06 3.29 2.01Paris 3.20 2.57 3.51 2.97Scottish Central Belt 1.09 2.02 3.27 1.42Sydney 1.31 1.51 3.22 1.45Tokyo 1.48 3.39 3.90 2.34

Living Environment

The quality competitiveness breakdown for Living Environment for the Multi-Media Design Centre (NEW) profile is shown below

The locations with the highest overall scores for Living Environment are the Scottish Central Belt and Los Angeles


Living Environment

In terms of the individual quality criteria within Living Environment, the locations with the highest scores are: Cost of living: the Scottish Central Belt and Los Angeles

Attractiveness for international staff: London and Sydney


LocationCost of living

Attractiveness for international staff

Berlin 8.28 2.26

London 5.98 3.10

Los Angeles (CA) 8.90 2.15

New York City 7.33 2.69

Paris 6.39 2.25

Scottish Central Belt 9.94 1.84

Sydney 7.36 3.29

Tokyo 5.81 2.41

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

Worldwide offices in: Americas, Europe, Middle East, Africa and Asia Pacific

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