Image credit – Richard Townshend Photography
In the 12 months since UK and Ireland law firm Browne Jacobson opened an office in Cardiff, several national and international professional services businesses have also increased their presence in the city. Laura Hughes, the firm’s executive lead for Wales, explains why this is positive news.
When we opened our Cardiff office on 5 July 2023, we spoke about how it was a very exciting time for Wales amid a series of significant energy and regeneration projects, a recently announced freeport scheme, and big inward investment ambitions.
This belief has only been strengthened and supported by evidence of some major professional services firms also moving into the city or expanding their presence here during our first year.
PwC announced an eight-figure investment programme in its Cardiff office in October last year, adding a new workspace to its recently revamped One Kingsway base. Having already more than doubled its headcount to 500 in the previous 18 months, it will create more than 1,000 high-skilled jobs over the next five years, with a particular focus on digital and technology.
This news was followed by global insurance group Howden opening an office at Cardiff Gate Business Park in April, building on the launch of its Swansea branch at the beginning of this year.
Fellow international broker Lockton has also begun to build business here with a small team and several commercial partnerships, while KPMG, another giant of the professional services world that employs 100 people in Cardiff Bay, has placed on record its ambition to grow its presence in Wales.
At the same time, our conversations in the market suggest that household name banks are committed to further expansion here, while there are strong rumours of other national law firms – and potentially even some big City hitters – wanting to expand into Wales.
Image credit – Richard Townshend Photography
Not just a west-shoring exercise
It’s clear this isn’t just a case of London-based firms ‘west-shoring’ by moving operations into the region to reduce overheads; these firms have identified a real momentum behind Wales, and a value to investing in Cardiff specifically.
My firm sensed it when, after working with public sector clients here for more than 25 years, there was a growing demand for commercial legal services in the private sector.
Once built upon coal, iron and shipbuilding, Cardiff is now a modern industrial hub with a science and technology sector predicted to grow by 6.6% over the next five years, according to a report by real estate firm Avison Young that identified it as the fastest-growing core city in the UK.
The 7.2% boost to its economic output and 20% population growth by 2028 is attributed to the city’s three universities, which attract up to 70,000 students per year.
This economic success story is complemented by a series of large-scale regeneration projects on the horizon, including enhanced rail links and capacity via Cardiff Crossrail and Cardiff Parkway, housing developments at Central Quay and Atlantic Wharf, and new premier office accommodation at Central Square.
But as the capital city of a devolved nation, Cardiff is also reaping the benefits of the Welsh Government’s investment into sectors of national strategic importance, including offshore renewable energy, semiconductor manufacturing and fintech.
The Celtic Freeport – which will create a green energy technology cluster in Pembrokeshire and Neath Port Talbot, with a vision to attract up to £5.5bn of new investment – was described by a Government minister as the UK’s most important freeport.
Wales has stolen a march on the rest of the UK in some of the key sectors that will power future British prosperity.
Image credit – Richard Townshend Photography
Investing in Wales’ future
Behind all these projects are professional services firms advising on everything from contracts and financing to real estate and procurement.
Cardiff has always had a strong professional services market, but some of the biggest players have previously felt they could service the market from Bristol, London or elsewhere in England.
This is now changing, with businesses recognising they need to be located in Wales both to secure a piece of the significant investments planned for the future; and also to contribute more widely to the Welsh economy and society.
This has to be a good thing in terms of job creation for the people of Wales, particularly in the context of the continued uncertainty surrounding Tata Steel, for example. Wales has long needed more high-skilled, higher-wage jobs in a wide range of sectors to tackle social inequality and increase social mobility.
There will also be upskilling and reskilling opportunities as these emerging sectors – along with the professional services industry as a key investor and partner – require a pipeline of talent to fill the new jobs being created. We’re proud to be investing in Wales at a time of such strong ambition in the business community.
Image Credit – Richard Townshend Photography
Find out more about the firm’s work at brownejacobson.com
