Impact of Delocalisation on SMEs

1
Impact of Delocalisation on SMEs

• Danny Van Assche
• UEAPME/UNIZO

2
Delocalisation

• Ugly duck
• sometimes becomes a Swan
• Regions can be winners and losers at the same
  time
• So
• To avoid is futile
• Better to predict and to guide

3
Whos moving?

• Multinational (big) companies
• Labour intensive companies
• Innovative companies
• No SMEs?
• Foreign investment
• Hardly delocalisation

4
Case Renault Industries Belgique

• 1995 Restructuring of the Renault group
• Plant at Vilvorde 3100 employees of which 2700
  lose their job
• National crisis!
• Restructuring cell
• Aid for the 2700 redundancies
• Investment aid on the Renault site

5
Case Renault Industries Belgique

• What about aid for the sub-contractors and
  suppliers of Renault-Vilvorde?
• Another 2500 workers lost their job in SMEs no
  special treatment!
• What about SMEs that have economic difficulties?
  Case Renault Industries Belgique

6
SMEs and delocalisation

• Active
• Not able to organize delocalisation
• Rather bankruptcy than delocalisation
• Passive
• Information too little, too late
• Lack of political attention

7
What do SMEs need?

• Competitive economy
• Innovative context
• Diversification
• Investment in human capital
• Same efforts for SMEs as for MNCs
• Social plans
• rescue plans
• Investment aid

8
What can Europe do?

• No European coordination is necessary
• Structural funds Focus on the Lisbon Strategy
• Industrial and Enterprise policy, with SME
  attention
• State aid to SMEs when affected by restructuring
• Research