You are an American manufacturer of a terrific widget. So terrific, in fact, that customers in Europe clamor for you to get the widget to them faster.
Two options confront you: Continue taking what sales you can get from Europe, or set up a distribution facility there and really go after the market.
For many American companies, locating near a European airport is the easiest way to establish an effective European presence.
There are numerous reasons why locating near an airport may be a smart move for your company. Some of them are obvious, while others aren't understood until you take a closer look at Europe's airports.
First and foremost is transportation. Need to hop on a plane to fix a crisis back in the U.S.? No problem. By the end of that business day, you can be to just about anywhere in the states from a European airport.
Want to be in operation to service U.S. customers with a time difference of 7-10 hours? Europe's airports are set up to handle a 24-hour work force.
Want to have quick access to European markets by truck? Most of Europe can be reached from any of the airports within one day's drive.
Need rail service? Again Europe delivers. Europeans rely heavily on rail and public transportation to move goods and workers. Many of Europe's airports have direct rail access. Would you like to be in a major European city, but not at those downtown prices? Rent at Europe's airports generally costs less than in the central business districts.
So, even if you aren't involved in distribution, an airport might be the ideal location for your expanding operation.
Airport sites: a boon for business
Another advantage of locating near a European airport is the proximity not just to forms of transportation, but to everything that a business and its employees could need.
Amsterdam Airport Schiphol is one of Europe's busiest airports, moving 34 million passengers and 1.2 million tons of cargo in 1998. Major companies located at or near the airport include Yamaha, Ricoh, Seagate, Honda, Heineken and Benckiser.
"It's really an airport city," said Ton van Weers, director of marketing for the Amsterdam Airport Area. "People can do a lot of their daily activity here. The restaurants, banks and shops are all open 24 hours."
The 24-hour mentality is a plus for businesses that need to interact with U.S. companies. Schiphol is a mini-city, with 15,000 people working in and around the airport.
"Schiphol is really more than an airport," said van Weers. "It's a city, and everything a business could want is here.
"You can have workers here late who handle calls with the U.S., and the workers can still get their daily activities done before or after work."
The majority of Amsterdam's work force speaks English, a plus for call center companies that handle calls from the United States.
| "Schiphol is really more than an airport. It's a city, and everything a business could want is here."
-- Ton van Weers, director of marketing, Amsterdam Airport Area |
"There are fiber optics ready in all of our facilities," said van Weers. "Much of the work force has the ability to speak other languages, as well."
At France's Roissy-Charles de Gaulle Airport, near Paris, Le Dome is another mini-city. The 500,000 square foot office complex offers businesses and employees a variety of amenities, with restaurants and shops within the facility.
For quick start-up time, Le Dome has fully furnished office space. Companies already at Le Dome include Federal Express, Bally France, Dayco, Regus, KLM Cargo and Novadigm.
Le Dome is located just 20 minutes from downtown Paris. A shuttle connects the complex to the airport terminals and the high-speed train station. A shuttle arrives at Le Dome every 36 seconds.
Schiphol, in Amsterdam, also has the advantage of a nearby water port -- another distribution option for a company located in the area.
Airports expand to serve business
As your company grows overseas, you want the capability to expand. When it's time to move
more cargo through Europe, you want to be able to act quickly.
Many of Europe's airports are expanding to meet the needs of their business customers, and some brand new airports are popping up to handle growth.
In Frankfurt, the busiest airport in Europe, a new AIRail terminal opened in May. The terminal provides high-speed train service connecting the different parts of the airport. The airport handled 1.4 million tons of freight in 1997, and that number is expected to increase to almost 3 million tons in 2010.
In addition, work will start in 2000 on a 525,000 square foot office complex. This project meets a need at the airport, since two other office complexes are 98 percent occupied. Companies already at the Frankfurt Airport include Hoescht AG group, Beckman Industries and Airbus.
The airport also offers businesses excellent transportation links, with rail lines that connect the facility with the European railway network.
| Europeans rely heavily on rail and public transportation to move goods and workers. Many of Europe's airports have direct rail access. |
Copenhagen Airport is undergoing growth to serve the business community in Denmark. In September, a new train link will open to serve all areas of the airport. More than 15,000 people commute to the airport for work every day, and the train will reduce auto traffic around the facility.
A new, multistory parking garage is also under construction, and a shopping center will be added between two of the terminals at the airport. Employees can do their shopping and errands without leaving the premises.
At the Amsterdam Airport, a fifth runway is planned for completion for 2003. By the end of this year, an air terminal expansion should be finished, which will add gates and business spaces.
"The fifth runway will diminish the inconvenience for those who live near the airport by reducing the amount of noise," said van Weers. "The new runway is surrounded by a less populated area of the city."
To the west of the airport, a light rail system is being extended to serve residents coming and going to and from the airport.
"That will reduce the number of cars driving to the airport every day," said van Weers. "A lot of people who work at the airport live in that part of the city."
In addition, the business parks of Schiphol are all undergoing expansions to accommodate more firms. Avioport, in Schiphol Center, is a seven-floor building under construction. The facility, just a 10-minute walk from the airport terminal, is slated to be finished later this year.
Early this year, construction started on the Constellation Building at Schiphol East. Schiphol East served as the airport terminal until 1967. It is now being redeveloped as a business park.
Columbus 1, a glass-walled office building, is planned for Schiphol Southeast, the newest cargo area in the airport.
In Munich, the existing terminal is expanding and a new terminal is being built. The airport, which is a hub of aerospace research, will have the new terminal by 2003.
London's Heathrow, the world's second-busiest cargo airport, is planning to add office space at the World Trade Center. Shuttle buses currently run from the office area to the terminal and the railroad connection.
At Heathrow, expansion is occurring, but at a controlled rate. Because available land in and around Heathrow is scarce, a board decides what companies can locate at the airport.
"Obviously, certain companies have to be very near the airport," said Richard Watkins, head of business development for BAA Lynton, a real estate group that manages space at seven airports, including Heathrow. "Aircraft maintenance, the airport companies themselves, they have to be there.
"The more non-essential companies are a little further away."
There are a number of office buildings within a couple of miles of the airport. All the office space in and around the airport features flexible leasing terms and can be rented already furnished.
New airports increase business options
In the next two years, two new airports will add even more options for businesses looking to expand into Europe.
The Athens International Airport is scheduled to open March 1, 2001, in Greece, and will be located about 15 miles east of the city.
A six-lane highway will run from the airport to Athens, and there are plans for a railroad to run through the airport.
One of the biggest pluses for the airport is the area's new pro-business zoning laws.
"Until now, businesses could build most anything in a random manner," said Constantine Constatinides, manager of real estate and international development for Athens International Airport. "Now, there is planning and proper thought to make a good business atmosphere."
FACT
Business parks at Amsterdam Airport Schiphol are expanding to make room for more firms. Multiple office building projects are underway in the airport area, which offers a 24-hour business environment.
FACT
The Le Dome office complex at Rossy-Charles de Gaulle Airport, located 20 minutes from downtown Paris, offers 500,000 square feet of space for businesses and includes restaurants, shops and business services.
FACT
Copenhagen Airport is building a new train link to assist businesses and the 15,000 employees who work at the airport.
FACT
At Frankfurt's airport, plans are in place for a 525,000 square foot office complex to be constructed. The airport's other two office facilities are 98 percent occupied.
FACT
Central France's Europort Vatry airport, expected to open in late December, is dedicated to cargo shipments. New highway and rail connections will serve the facility, which offers hundreds of acres for development.
|
Infrastructure for telecommunications and Internet service are already in place. The airport's administrative staff is already set up in a 45,000 square foot office complex.
For years, officials in Athens discussed building a new airport. The completion date of 2001 is well ahead of 2004, when Athens will host the Olympics.
France's Europort Vatry airport, located in central France, is expected to open in late December. It will act as a sort of relay for companies moving cargo through Europe. Vatry is about 100 miles east of Paris and is dedicated solely to transporting cargo.
A new railroad and highway system will serve Vatry, which offers warehouse sites and space for offices, hotels and retail services. There are 465 acres available for development, with more available in 2000.
Companies already located at the site include Air Liquide Welding, a French firm that opened a facility in September of 1998. The company stores and distributes welding equipment from its facility, which serves all of Europe.
Not surprisingly, logistics companies are up and running at Europort Vatry. JCH and Associates, which warehouses and transports toys and textiles for a large retailer, started operations at the site in December of 1998.
JCH's warehouse is connected to the airport's rail line. When the air portion of the airport opens late this year, JCH will employ 52 people at the 14-acre site.
Other companies already in operation at the site include: Vatinel, a French company that handles customs operations for a retailer; Transports Vertusiens, a transport company specializing in package delivery and transportation of food; and Vatry Poids Lourds, a forklift repair company.
More than a flight connection
The greatest strength of Europe's airports is that they're more than a site for takeoffs and landings.
They're a site for comprehensive business services. Industrial parks, office complexes, road, rail and even seaport connections make many of these airports some of Europe's prime business sites.
Why Airports Are In
|
Advantages |
Explanations |
|
Quick access to air travel |
Getting back to U.S. is just a flight away |
|
Cost |
Rents are often lower than downtown |
|
Access to roads |
Highways run directly to airport |
|
Rail access |
Europe is highly train connected |
|
Room to grow |
Many Euro airports are expanding |
|
Public transportation |
Rail and bus connect airport to city |
|
24-hour mentality |
Can call U.S. customers easily |
|
Technology infrastructure |
Telephone, Internet access available |
Lance Yoder is a senior writer for Expansion Management Magazine.
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