More American companies consider expanding business globally
An increasing number of middle market American businesses may be looking to improve their global reach, which could require an expansion of their existing corporate relocation management strategies. A report from the KPMG Global Enterprise Institute showed that international growth is becoming more important for many U.S.-based companies.
Despite the slow economic recovery seen in some locations the world, four in five corporate executives felt that their expansion beyond U.S. borders in the past two years has been a success, according to KPMG’s Mid Market Global Expansion Survey. This was far higher than the report released in 2009, when only 50 percent felt this way, and 2007, when 43 percent responded positively.
Nearly three-quarters of those surveyed explained that their company’s leaders have prioritized creating additional markets for their business in international areas. The survey found another 75 percent that said expanding globally is vital for their company. All of the responses favoring global expansion showed a marked increase over the previous surveys conducted in 2009 and in 2007.
“Our earlier surveys found that international expansion was a piece of the growth puzzle for middle market companies,” said Jerry Jolly, KPMG partner and leader of the Mid-Market practice. “And today, despite the state of the global economy, our survey cements the fact that mid market companies are turning to different geographic markets to foster the growth they are looking for. Those mid market companies conducting business overseas are seeking to build on the momentum they’ve generated.”
Close to 80 percent stressed that their plan is to improve non-domestic revenue from their foreign interests and consumers. KPMG also noted that close to 75 percent aim to increase their company’s facilities and space over the next several years It is important for any company considering relocating offices and/or employees internationally to evaluate all the financial ramifications. Global relocation consulting firms can be of great assistance in providing detailed cost estimates for these types of projects.
The report added that more than 70 percent of companies surveyed want to increase their overseas employee base, which could mean a spike in transferees. One of the main drivers for improving workforces and spaces overseas was the fact that 58 percent felt that the American economy has taken a step back this year while markets are improving elsewhere.