By Li-mei Hoang
LONDON (Reuters) - A British vote to leave the European Union would damage its ability to attract the best talent from around the world, the boss of industrial equipment hire group Ashtead (L:AHT) said.
Prime Minister David Cameron has promised a referendum by the end of 2017 on whether Britain should stay in the EU, whose policies in favour of the free movement of labour have allowed thousands of workers to come to Britain from less affluent countries such as Poland.
Ashtead chief Geoff Drabble told Reuters he thought a departure from the EU would be short sighted, as it would affect the talent pool that Britain attracts.
"We have an ageing population in a small nation that needs to have skills in order to be globally competitive," Drabble said. "And in a market that is becoming ever more global, I really struggle to see how increased isolation improves that situation."
Drabble, at the head of the FTSE 100 group for more than eight years, said he thought the broader economic consequences of Brexit would need to be thought through, but he did not see a great impact on its UK business.
A-Plant, its UK division, accounts of around 15 percent of group revenue. The other 85 percent comes from the Sunbelt business, which operates in the United States and Canada.
The company, which earlier this week raised its annual earnings forecast thanks to strong demand in the United States, has benefited over the past few years from a recovery in U.S. construction, which has allowed it to outperform peers with more exposure to the oil and gas sectors.
Drabble said the company would look to step up its international expansion in Canada, which it entered last year with a small acquisition, hoping to replicate the success it has had in the United States.
"We have some bigger acquisitions targets in mind in Canada," he said, aiming to have at least 100 locations, but without specifying a timeframe.
Drabble said he would also consider following customers into regions such as Latin America for project-based work, but only if requested. "People are looking to partner us on a range of opportunities. I think to go into more exotic geographies, initially it will be project-based."