Vocollect establish new EMEA HQ in London.
BY GEORGE HYDE, ICIS
ENCOURAGED by continued strong sales growth in both US based multinationals and major European companies, Vocollect, the world leader in providing voice-directed distribution systems, first announced plans to establish a European subsidiary in May, 2002 and appointed Greg Tanner as managing director of European operations. "We have established our market leadership position through the efforts of our superior pan-European reseller network", said President and CEO, Jack LeVan. "In order to enhance our support services to our channel partners and to large multinational customers, we needed to establish an 'on-the-ground' presence in Europe."

Tanner has been a leader in the automatic identification community in Europe for the past 20 years, most recently as director of channel sales for Datalogic S.p.A., the Italy-based manufacturer and European leader in bar code scanners and portable computers. Tanner also served as managing director of Zebra Technologies Europe, the Chicago-based bar code printer manufacturer. He opened Zebra's first European facility in 1991 and grew it to nearly $100 million in sales by 2000. The subsidiary employed more than 250 people in the U.K., France, Germany, Italy and Sweden.

According to Greg Tanner, "Even in a relatively flat economy, businesses that invest in voice are gaining real savings and tangible return on investment. My challenge will be to build on Vocollect's strong and growing position in Europe, Middle East and Africa (EMEA) and extend our commitment of excellence to our reseller partners and customers as the premier voice provider."

Based on extensive personal experience, Tanner decided on Stockley Park Business Centre, Uxbridge, for the location of the new operation. Situated within the Hayes-West Drayton corridor just 10 minutes from London Heathrow it is, according to local Hillingdon Authority, one of Europe's most successful business parks. On the 400 acre site Vocollect will be rubbing shoulders with the likes of Adobe Systems, Apple Computers, BT, GlaxoSmithKline, Marks & Spencer and Matsushita Electric, as well as a number of other pharmaceutical, IT and telecommunications companies.

Tanner's decision was influenced by the primary operational requirements of the project. "Since it is really a question of the functions that we need to recruit for in the UK, which are sales, marketing and technical support, these are best found in the South East because of the concentration of technology companies in the area". And he's in good company, two other notable US companies in residence are Motorola and Cisco who have chosen Stockley Park to locate their joint venture, "Invisix" 3G technology infrastructure research centre.

"If we wanted a European manufacturing plant or distribution centre at this point", he goes on, "then there may have been influences to put those functions either elsewhere in the UK or on the continent. However, I would still favour the London area as a location for the EMEA sales, marketing, support HQ".

Like other companies in the region, the proximity to London Heathrow and the access it provides to target markets was another influential factor. "Heathrow is a major air hub for travel out to our customers and potential customers throughout the EMEA" notes Tanner, "and is also an easy airport for any of those customers to reach from their home cities."

Whilst Mr Tanner accepts that his ultimate decision may have fallen on any number of locations bounded by Heathrow, Reading, High Wycombe and Hemel Hempstead, he cites a number of reasons for specifically avoiding Central London. "The cost of office accommodation, travel, parking, even road access; the congestion and the poor state of public transport, the risk of crime, the pollution etc all make Central London unattractive for me as a business location". And he makes this rather severe assessment despite his sincere love for the area as, "a cultural, historic and entertainment centre of the world."

The Chancellor and Mr Blair would no doubt be encouraged to learn that Mr Tanner's decision to locate in the UK was partly influenced by its non-participation in the Euro. In his opinion, "Being located outside the Euro-zone is still potentially beneficial while the new currency is still in its infancy." Other contributing factors include the generally good British work ethic and the flexibility of the workforce that comes at a comparatively lower price than other parts of Europe.

As an American subsidiary, commonality in language and a familiar culture are an obvious draw. "The UK is an easy place for American companies to establish a European base" says Tanner, who also notes that any cultural differences in the workplace and in working practices are less difficult to overcome than those that are typical across Europe. "In short, the UK is more easily regarded as a 'home from home' for US companies establishing their first subsidiaries abroad."

However, one particular difference in the business culture is the cause of some frustration. As a privately held American company, Vocollect faces no requirement to disclose its financial results when dealing with financial institutions. Not so in the UK; "Banks and Finance companies do not seem to be able to work with companies who have a foreign parent that doesn't wish to disclose its financial results", says Tanner. "We have no need to disclose in the US, so don't wish to do so here, since it opens our affairs to the eyes, potentially, of competitors."

Vocollect's strong position in the US market and impressive EMEA track record thus far provided the impetus to establish a firmer footing in this region. "We are seeing huge uptake in the technology by major retail, logistics and warehousing customers", says Tanner. "The time is here to better serve the European market with the opportunity to benefit from the same business improvements that our US customers see".

With much of the corporate infrastructure able to 'dove-tail' with requirements in the UK coupled with Tanner's personal experience with running this kind of operation, there has been little requirement to involve the UK inward investment community. By choosing Stockley Park as a base of operations, Tanner was able to meet the primary requirements of the project and position the operation in an environment conducive to growth with a wealth of local logistical support. "I am delighted that we have the chance to base our operation in the London area and know that it will serve us well as a base for European development".

Vocollect is the global leader in wearable computers employing speech synthesis and speech recognition technology for warehousing and industrial applications.