US SPOTLIGHT
to send assignees over the next few years. India, the UAE and Malaysia were other future relocation destinations. Brazil was listed as the top new location
that companies had been sending their assignees to over the past two years. Respondents also named it as the country they expected to present the biggest challenge for their company over the next two. The fact that Brazil’s currency fluctuations and the need for split payroll complicate administration for companies may be a factor in this. Another Latin American country,
Argentina, was in eighth place. For assignees, Brazil was rated the
third-most-challenging location, thanks to immigration issues, currency restrictions, housing, moving household goods through customs, and security. Says Chris Pardo, “This time last year, I told Re:locate
that the EMEA region had garnered the most volume that departs from the US. This year, the story is similar. We are still seeing typical European countries like Ireland, the UK, the Netherlands, Germany and France capturing the majority of volume, but Saudi Arabia and the UAE are on the rise, particularly with our mining and energy clients. “However, Asia Pacific has closed the gap in the last
12 months to within just a few percentage points. The top destinations there are Singapore, China, Australia, Japan, and India. “Latin America has increased in volume over the last year,
covered by the Information Technology Agreement’s zero-tariff, free-trade measures would open new global markets. “Right now,” she told me, “the primary up-and-coming
markets, or F7 frontier markets, include Bangladesh, Colombia, Morocco, Nigeria, Peru, the Philippines and Vietnam. These currently hold the greatest potential for a number of reasons, including the rapid growth of GDP per capita, which is predicted to accelerate by about 50 per cent over the next five years. “One of the key factors fuelling this trend will be a
significant population increase. In 2010, the F7 population was around 672 million, but, by 2020, it’s projected to be at 741 million, or about a tenth of the world’s consumers. “This group is also expected to have more disposable
income – more than $10,000 per household. In addition, annual spending on infrastructure is increasing (coming primarily from government and business investors) and is now at $9 trillion.”
Inbound relocation Moving on to inbound activity, Chris Pardo says that
the top ten departure countries are Canada, the UK, India, Australia, Ireland, Mexico, China, Germany, Switzerland, and Singapore. “The United States,” he explains, “remains the largest
international destination for our clients’ mobility activity, and, while the volume over the last 12 months is up slightly, the activity into the US is a smaller percentage of our overall client portfolio. “This highlights the reality that mobility activity going
to destinations other than the United States has seen more significant growth over the last 12 months.”
but not to the same degree as the other regions, and so, as a percentage, it still trails behind the other regions. Within Latin America, Mexico, Brazil, Argentina and Chile have led the way over these past 12 months. “Not surprisingly, Canada remains one of the most popular destinations for US outbound activity.”
F7 frontier markets I asked Cecilia Franchi, director of MSI Global Consulting
Services, whether she thought that the World Trade Organization’s agreement to add more than 200 products to the list of goods
Key trends My interviewees identif ied a number of mobility-related
trends, in areas that ranged from policy and assignment types to talent management and accommodation for relocating employees and international assignees. The recent depressed economic climate has led to
an increased emphasis on cost containment, says Kate DeFrancisco, director of Client Engagement at MSI. Although this is always a priority for many companies, she adds, the need to move people as cost-effectively as possible has never been greater.
26 | Re:locate | Autumn 2015
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