Does location still matter in 2015?

I work with a lot of businesses country-wide, but location still seems to play a crucial part in the decision-making process when people decide who to work with. Companies still choose agencies on locality even though it’s probably quicker to commute from Leeds to London for a meeting as opposed to across London in some cases (however, this will probably change with Crossrail).

The question is: when it comes to working with other businesses – such as an SEO company – should area be a primary consideration these days? As I currently work in London on a monthly if not weekly basis, do I need a secondary physical base in the capital to work with London businesses?

Are Big Businesses Leaving London?

In a time where many of the larger UK companies are choosing to base themselves outside of London, or at least expand elsewhere, I decided to take a look at the reasons behind this and weigh up the pros and cons of a business being London-based.

In 2013 the London Business Survey found that:

“More London firms plan to expand during [2014] but fewer intend to do so in the capital.”

The main reasons given for this move from the capital included high operating costs, housing issues and transport.

This trend has continued into 2015, with large, household names now making the move. Sky is setting up a new technical team and has chosen Leeds as the location for them – creating 300 jobs in the area (or poaching them from elsewhere in the region?) with Sky’s third biggest base. The broadcasting and telecommunications giant already has a Contact & Support Centre in Leeds also.

The news is currently full of coverage regards the ‘northern powerhouse’, and with plans for the HS2 in the pipeline, it seems the only way is up – literally – for businesses. Research by Axa found that most UK SME owners would like a business hub created outside of London; the cities of Birmingham and Manchester were the top suggestions, both of which would be served in Phase 2 of the HS2.

Those companies who are opting to stay in London, or to keep a base in London, are now settling for locations on the outskirts – such as Shoreditch, Holborn or Clerkenwell – due to being pushed out of the West End since the housing boom. This will be impacting on travel times, both for getting to work and for meetings with clients.

“There’s a trend being picked up that increasingly people are questioning whether they wouldn’t simply be better off seeking their fortunes elsewhere.”

– Simon Lambert on thisismoney.co.uk

With the changing tide of how people work day-to-day, should location still matter at all? After all, we successfully work with businesses around the world so, in comparison, London is just down the road.