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COLUMBUS GLOBAL CONNECT GLOBAL TRADE AND INVESTMENT January 29, 2015
§ Position the Columbus Region to be an integral part of global trade and investment flows
§ Help make the Region’s businesses and workforce more competitive in a globalized economy
§ Support the Columbus 2020 Regional Growth Strategy
RATIONALE FOR TRADE AND FDI PLAN
RATIONALE FOR TRADE AND FDI PLAN
New projects pipeline Projects announced with 50+ jobs created or $1M+ investment
0
20
40
60
80
100
120
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Domestic International
0% 10% 20% 30% 40% 50% 60% 70% 80%
Jul-1
1 O
ct-1
1 Ja
n-12
A
pr-1
2 Ju
l-12
Oct
-12
Jan-
13
Apr
-13
Jul-1
3 O
ct-1
3 Ja
n-14
A
pr-1
4 Ju
l-14
Oct
-14
Domestic International
WHY THE COLUMBUS REGION?
§ Businesses view Columbus at a regional level
§ National and global trends and policies become reality at the regional level
§ Columbus Region partners and networks: § International companies with local operations § Service providers § Local, state, and federal government agencies § ED organizations at local, regional, and state
levels § Contacts in foreign markets
Global Cities Exchange: FDI Pilot Metros
Seattle Portland
San Diego
San Antonio
Minneapolis-St. Paul
Columbus
MARKET ASSESSMENT
§ Detailed market assessments for exports and FDI
§ Methodology § Data from Brookings, Columbus 2020 and other sources
§ Online survey of 135 current or potential exporters
§ In-person interviews with 28 foreign-owned companies
§ Most key findings applied to both exports and FDI
§ Key findings provide the basis for Columbus Global Connect objectives and strategies
KEY FINDINGS
1 Exports and FDI support high-quality job creation
$47,190
$65,049 $76,914
Columbus Region average
FDI economic base
Export-oriented economic base
Columbus Region average annual wages, 2014
Source: Columbus 2020 analysis of EMSI data
KEY FINDINGS
2 Columbus Region has underperformed in exports and FDI
Source: Brookings Institution
8.9%
4.8%
11.3%
5.4%
Export value share of output
FDI share of employment
Columbus metro U.S.
KEY FINDINGS
3 Regional exports and FDI are concentrated by both market and industry
Source: Columbus 2020
69% automotive industry share of Japanese firm employment in Columbus Region 96% Japanese share of Region’s FDI employment in automotive industry
KEY FINDINGS
4 M&A is a major source of FDI
M&A since 1991
Openings since 1991 Pre-1991 stock
1991 2011
Source: Brookings Institution
58% M&A share of the Columbus Region’s employment growth in foreign-owned firms since 1991
KEY FINDINGS
5 Networks and relationships matter
Reasons for selection of export markets
Source: Columbus 2020 exporter survey
34
25
24
Buyer reached out to us
Distributors in countries
Previous experience
11
8
8
Similar business environment
Political/economic stability
Proximity to U.S.
KEY FINDINGS
6 Exporters and FDI companies face a range of business challenges
Source: Columbus 2020 exporter survey, FDI company interviews
EXPORTERS § Transportation costs
§ Foreign regulations
§ Knowledge of markets
§ Language and cultural barriers
§ IP and payment concerns
FDI § Workforce
§ Business methods
§ Immigration/visa issues
§ Passenger air service
KEY FINDINGS
7 Fragmented service delivery limits export growth
More than 2 out of 5 respondents have not used export assistance...
Source: Columbus 2020 exporter survey
Yes 59%
No 41%
…but those who have rate it positively.
State government
agency
Federal government
agency
Nonprofit association or organization
Private sector
Poor Good Very Good Excellent
KEY FINDINGS
8 FDI leads to exports in the long term
14 12
6
Customer
Market access
Other
REASON FOR INVESTING IN U.S.
82%
CURRENT EXPORT ACTIVITY
Source: Columbus 2020 FDI company interviews
KEY FINDINGS
9 Companies are willing to engage around issues related to growth and competitiveness
TRADITIONAL OUTREACH
§ Job retention, hiring/layoffs
§ General business conditions
§ Reactive/Responsive
GLOBAL CONNECT
§ Business opportunities
§ Global context, industry and supply chain intelligence
§ Proactive/Predictive
GOALS AND OBJECTIVES
COLUMBUS REGION ECONOMIC GROWTH GOALS Generate 150,000 net new jobs Increase per capita income by 30%
Attract $8 billion capital investment Become a national ED leader
GLOBAL CONNECT OBJECTIVES EXPORTS FDI
Top 25 metro in export value 50% FDI share of pipeline
50 referrals to export-related services Diversify FDI to 55% non-Japanese
STRATEGIES AND TACTICS GLOBAL CONNECT STRATEGIES
STRATEGY TACTIC 1. Reorient BRE activity Focus on business growth and competitiveness
2. Strengthen and diversify geographic markets
Shore up base and extend opportunities across Europe and Asia and across industries
3. Activate existing global networks Leverage influencers: Region’s multinational corporations and institutions, consultants, service providers, foreign agencies
4. Cultivate the next generation of global companies
Target emerging middle-market and fast-growing companies ready to export or invest
5. Create a more global business environment
Enhance awareness and fluency around global business opportunities
IMPLEMENTATION PARTNERS
Local ED organizations
Private sector § Exporters, foreign-owned companies § Industry associations, trade groups § Providers of trade- or FDI-related
services
REGIONAL STATE NATIONAL
Columbus 2020 150 S. Front St., Suite 200
Columbus, OH 43215
columbusregion.com | 614-225-6063
THANK YOU Jung Kim