1 in 20 firms have recently moved some business activities abroad

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In 2021-2023, over 5 percent of larger or medium-sized firms in the Netherlands moved some of their operational activities abroad. This is a similar proportion to the previous period. Reducing costs is a major driver. In most cases, activities remain within the EU after relocation. Statistics Netherlands (CBS) reports this on the basis of new research.

Firms with at least 50 employees active in the industrial, energy, and commercial services sectors were surveyed. Those that had left the Netherlands entirely were not included in this study, only those that moved part of their operations abroad.

In addition to the 600 or so firms that had moved operations abroad (over 5 percent), another 200 or so firms (nearly 2 percent) were considering doing so. The main factors for relocation were reducing labour costs, achieving other cost savings or a strategic decision made by a parent company. These were also the most frequently cited factors in previous years. A shortage of suitable workers in the Netherlands remains a major reason for relocation. Sanctions against Russia, Covid and environmental policies were mentioned less frequently by businesses as reasons for relocating.


Meanwhile, frequently cited reasons for not moving activities abroad were legal and administrative obstacles, and uncertainty about the quality of products or services provided abroad.

Administrative and management activities most likely to be relocated

Firms may relocate one or more activities to one or multiple destinations. Administration and management activities are the most likely to be relocated abroad. Positions in the production of goods and products, in marketing, sales and customer service, and in ICT services are also more likely than average to be moved abroad.

Most relocation occurs within EU

Firms were most likely to choose another country within the European Union to relocate their operations to, as in previous periods. In the case of the UK, it is mainly management and administrative activities are the most likely to be moved, as well as marketing, sales and customer services. In the case of China, it is mainly production activities, and in the case of India administrative and management activities and ICT services.

Relocations more likely in ICT sector

Firms in the ICT sector are the most likely to relocate activities abroad (14 percent), followed by companies in manufacturing (7 percent). In absolute numbers, the most firms relocating were in manufacturing (165) and wholesale and retail trade (120), followed by the ICT sector (115). In mining and quarrying, energy, water, waste management and construction, not many firms relocated their activities abroad.

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