Forget the outrage about Dyson’s HQ move - we need to learn from it

This move illustrates an uncomfortable truth of modern global business, writes Chris Blackhurst – today’s businesses can base themselves pretty much anywhere, and in Dyson's case, Singapore ticks all the boxes

Howls of outrage have greeted Sir James Dyson’s decision to relocate his company headquarters from Wiltshire to Singapore.

Apparently, he should remain loyal to the UK, preferring to stay here. The fact he is a Brexiteer means he is also a total hypocrite. There he is, fighting to come out of the EU, flying the flag of independence, when we will be dependent more than ever, on new trade deals and inward investment. But what does this patriot do? Within weeks of the date to leave, he only goes and jumps ship. How dare he?

I’ve got some sympathy with that argument. But what his move really illustrates is an uncomfortable truth of modern global business, one that in these islands we’ve been reluctant to confront. It is that today’s businesses can base themselves pretty much anywhere; and that vastly improved transport connections and technology mean that nowhere has a claim over any enterprise.

What managements are looking for is a skilled workforce, friendly tax regime, low bureaucracy, super-fast communications, the ability to build the premises they need, a high standard of living with good schools for their children, easy international access with links to the rest of the world.

Add to that, proximity to their main markets, and you have a checklist for determining where they site themselves.

In Dyson’s case, Singapore ticks all those boxes. The UK does not. Employers complain we do not have enough highly-skilled workers, that our tax system is the most complex in the world, our red tape is punitive, our digital communications provision is mixed, and our land is tight and building is difficult and slow. Only on living standards, education and air travel do we match the slickest places elsewhere.

The fact that Asia is where Dyson is selling most of its domestic appliances and is to be the location for the building of its new electric car and the launch market – a development that will transform the company – and the decision to switch the head office to Singapore becomes a no-brainer.

Dyson will still situate its research and development arm in the UK, and will continue to employ 4,800 people, possibly more, in the years ahead. That, though, is not enough to pacify the critics for whom the inventor and head of the firm, once a homegrown star of British commerce and innovation, is a traitor.

Clearly, the timing of his “desertion” adds to the fury. But what his shift highlights is that emotion on its own is not sufficient; that businesses don’t do sentiment. It makes sense for Dyson to base himself in Singapore, so off he goes, without a moment to lose. He’s not going to hang around and wait for Brexit. His mind is made up, he wants out, that’s it. Whether we’re members of the EU or we’re out is not in his thinking.

In reality, there isn’t a good juncture at which to make his announcement. He could have waited, but for how long? Whenever he said he was going to be off, the reaction would have been the same – perhaps not as vitriolic, although that would not be so if by then our economy had slumped. Then it might have been even worse.

Instead of focusing on Dyson’s lack of patriotism and why he is choosing to quit now, we should concentrate on the main lesson – that we must work harder to retain the businesses we have, and to attract new ones.

Unless we do more to secure more ticked boxes, other enterprises will follow suit. Brexit won’t be a factor; it will be more about whether the UK can match what is available in other parts of the world – a world that is much smaller, and more competitive than it used to be.

We should be asking ourselves why does Dyson believe the Asian market will be so keen and ready to accept his electric vehicle? Britain and Europe, whether we’re in the EU or removed, were not regarded by him as so attractive a launch-pad. In Asia he’s got a hungry-for-new technology, broad-minded and adaptable, increasingly rich, audience.

It’s no coincidence that the marketability of many new devices, including the world’s mobile phone developments, were first tried in Asia. Then they go to the US and Europe. The people in Asia are more willing to give it a go, to spend on something new. Their governments and regulators, too, are keener to make it happen. And they have a better support network, with suppliers more anxious to feed the new business, to adapt and to do whatever is required.

Dyson is merely following that same path. Rather than moan, we should be concentrating on how to create an environment that is just as appealing.

We can no longer expect businesses to root here just because they started here; we’ve got no right to success; we have to earn it. We should view Dyson as a wake-up call. He’s a Brit, a “Sir”, and he is going. To be fair, he effectively warned us when he previously chose to transfer his appliances factory to Asia. Now, he’s followed that with his electric car manufacturing, and latterly himself and his senior colleagues.

Kicking and screaming about his disloyalty will not make him change his mind, nor will it prevent more defections. Neither will it persuade companies to come here. We need to examine why, exactly, Dyson is moving – and ensure Britain becomes equally desirable. And we must do it quickly. As Dyson also emphasises there is no time like the present, no point in hanging around.

Chris Blackhurst is a former editor of The Independent, and director of C|T|F Partners, the campaigns, strategic, crisis and reputational, communications advisory firm