COLUMBUS REGION Overvie · through outreach to growing companies around the world • Create the environment needed for high-growth companies, entrepreneurs and technology commercialization

COLUMBUS REGION Overview

3 COLUMBUS REGION OVERVIEW

Alex R. Fischer, ChairmanPresident and Chief Executive Officer, The Columbus Partnership

Eric Phillips, SecretaryExecutive Director, Union County Economic Development Partnership

Marilyn BrownCounty Commissioner, Franklin County Board of Commissioners

Michael B. ColemanMayor, City of Columbus

Michael KellerExecutive Vice President and Chief Information Officer, Nationwide

Michael W. LougeExecutive Vice President and Chief Operating Officer, OhioHealth

Gregory R. OvermyerChief Executive Officer, Overmyer Hall Associates

Ellen PowerDirector, Boeing Guidance Repair Center Heath OhioStrategic Missile Defense SystemsNetwork Space & Security Systems Division, Boeing Defense Systems (BDS)

Tom ShoupeExecutive Vice President and Chief Operating OfficerHonda of America Mfg., Inc.

Dr. Mark SmithPresident, Ohio Christian University

Mark SmolikVice President, General Counsel and Secretary, and Chief Compliance OfficerExel Inc.

Kristi TannerManaging Director,JobsOhio

Pablo A. VegasPresident and Chief Operating Officer,AEP Ohio, American Electric Power

Dr. David Williams, Ph.D., Sc.D.Dean and Presidential Professor, College of Engineering The Ohio State University

EX-OFFICIO

Patrick Cornelius Partner,Squire Patton Boggs

Sean Grant Chief Financial Officer,Columbus 2020

Kenny McDonald, CEcD, President and Chief Economic Officer,Columbus 2020

BOARD OF DIRECTORS

COLUMBUS 2020Founded in 2010, Columbus 2020 serves as the economic development organization for the 11-county Columbus Region. The organization’s mission is to generate opportunity and build capacity for economic growth throughout Central Ohio.

Columbus 2020 operates as a regional network partner of JobsOhio, the private, nonprofit organization that promotes job creation and economic development for the state of Ohio. The JobsOhio Network is comprised of six geographic regions with specific industry strengths and resources, including the Columbus Region.

JobsOhio and Columbus 2020 work closely with state and local government to serve growing companies.

In addition to JobsOhio and state government, Columbus 2020 works with its regional partners to:

• Conduct outreach to existing businesses in the 11-county Columbus Region to gather information, better understand the economic base and seek opportunities to help organizations expand their operations

4

• Attract new employers to the Columbus Region through outreach to growing companies around the world

• Create the environment needed for high-growth companies, entrepreneurs and technology commercialization to thrive

Columbus 2020’s services include:

• Customized location analysis - For companies considering expanding in or relocating to the Columbus Region, Columbus 2020 provides customized research, locally generated data, and the expertise required to navigate state and local networks and programs that can assist expanding businesses. Services include customized site and building tours, workforce analysis, peer to peer interviews with similar companies, and the facilitation of meetings with local and state officials who administer tax and business incentive programs.

• International business services - Columbus 2020’s dedicated professionals work with international companies, both existing and prospective, to help navigate the process of operating a foreign-owned enterprise. Columbus 2020 guides international business executives through a myriad of issues and considerations that are specific to foreign-owned enterprises.

Columbus 2020 is a private, nonprofit entity incorporated as both a 501c(6) and a 501c(3) with the express mission of economic development. Funding is received from more than 350 private organizations, public partners and JobsOhio.

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THE COLUMBUS REGION


Consistently ranked as one of the top states in the U.S. for doing business, Ohio offers a large and educated workforce, central location and strong transportation infrastructure, and a top ten tax climate in the country for new capital and new labor-intensive manufacturing operations.

CENTER OF U.S. MANUFACTURING SUPPLY CHAIN

Ohio is the third largest manufacturing state in the U.S. and led the nation in manufacturing job growth between December 2012 and June 2013.

�•�No. 1 state for consumer products

�•�No. 1 state for polymers

�•�No. 1 supplier to Airbus

�•�No. 2 supplier to Boeing

�•�No. 2 state for automotive jobs

�•�No. 5 state for automotive manufacturing

Chicago

Detroit

Pittsburgh

PhiladelphiaNew York

Cleveland

Cincinnati

Pittsburgh

PhiladelphiaNew YorkYY

d

OHIO

MOST

23 FORTUNE 500

55 FORTUNE 1000

LOWEST EFFECTIVE TAX RATE FOR NEWDISTRIBUTION CENTERS

LOWEST EFFECTIVE TAX RATE FOR NEWMANUFACTURING OPERATIONS

#

4

71

71

70 70

270

COLUMBUSFranklin County

Licking County

Knox County

Fairfield County

PickawayCounty

Union County

Marion County

Logan County

DelawareCounty

MorrowCounty

MadisonCounty

THE COLUMBUS REGIONLocated in the center of Ohio, the Columbus Region is expanding at an exciting rate and boasts some of the best business resources available.

The Columbus Region is home to an extremely capable, educated workforce growing at a rate substantially above the national average. Employees have access to many professional development tools and have the ability to further their education at any of the Region’s 63 college and university campuses or technical schools.

The Columbus Region is located within a 10–hour drive of 47 percent of the U.S. population and is in a prime location for international dealings. The transportation networks provided by Port ColumbusInternational Airport, Rickenbacker International Airport and multiple rail terminals fuel these opportunities and grow with the area’s ever-changing demands.

KEY MARKET STATS

• 2.1 million people

• Home to the fastest growing city in the Midwest

• 15 Fortune 1000 headquarters, including four Fortune 500

• More than 450 international firms

• Diversified economy where no industry accounts for more than 18 percent of employment

• More than 60 college and university locations enroll nearly 140,000 students

• No. 4 in metro gross domestic product (GDP) growth between 2008-2013

6

REGION COMPANIES

More than 500 company announcements have resulted in more than 40,000 new jobs and over $6 billion in capital investment since 2010.

RECENT COMPANY ANNOUNCEMENTS

FORTUNE 1000 HEADQUARTERS

MAJOR PRIVATE SECTOR EMPLOYERS


MAJOR SECTORS

MANUFACTURING

• Home to 1,700 manufacturing operations

• More than 85,000 employed in manufacturing

• Columbus Region manufacturers experienced a 48% increase in productivity between 2001 and 2014 (output per worker)

• 3.1% private unionization rate, well below the 6.6% for the U.S.

SCIENCE & TECHNOLOGY

• More than 2,000 science and technology establishments

• Ranked most intelligent community in the world of 2015

• 40% of the Region’s population holds an associate degree or higher

• Lowest effective tax rate for new R&D facilities

• Home to several of the world’s foremost research institutions

• Battelle and OSU spend annually a combined $6B in research

7

8

HEADQUARTERS & BUSINESS SERVICES

• Home to 15 Fortune 1000 headquarters—seventh among major metros

• Office space is 53% cheaper than Chicago and 75% less than New York

• More than 13,200 are employed in apparel retail company office and distribution headquarters

• In 2012, headquarters and business services accounted for $23.8 billion in economic output—nearly a quarter of the regional economy

INTERNATIONAL BUSINESS

• Home to more than 450 international firms employing 54,000 workers

• Japan, United Kingdom and Canada are the largest foreign investors

• Within 10 hours of 47% of the U.S. population and 34% of Canadian population

• $11.3 billion in goods and services exported in 2013, a 61% increase from 2003

LOGISTICS

• Ranked No. 1 among inland and coastal ports in population concentration within a one-day drive

• KPMG ranks Ohio No. 2 in effective tax rate for new logistics operations

• FedEx Air, FedEx Ground, UPS and UPS Supply Chain Solutions have operations in the Region

• The Norfolk Southern Heartland Corridor and CSX Gateway link the Region to multiple deep-water east coast ports

• CSX intermodal allows goods to bypass Chicago

8


DYNAMIC INDUSTRIES

RETAIL AND APPAREL

The headquarters of global brands including Victoria’s Secret, Abercrombie & Fitch and Express anchor the Columbus Region’s retail and apparel industry, complemented by an impressive roster of service providers specializing in IT, sales and marketing, design, packaging and more.

AUTOMOTIVE

In addition to being the home of Honda and hundreds of its suppliers, the Columbus Region boasts the Transportation Research Center, a world-leading provider of vehicular testing services and R&D, and The Ohio State University’s Center for Automotive Research, which is refining technology for electric cars, lightweight structures and materials. The Sports Pavilion and Automotive Research Complex will include a half-mile race track and an innovation center for automotive design.

PERSONAL CARE AND BEAUTY

To decrease costs and production time, several companies came together to form the International Beauty Campus. Dubbed the “Silicon Valley of the beauty industry,” the campus houses specialized packaging companies and personal care manufacturers, offering proximity advantages that reduce costs of logistics and materials.

BACK OFFICE AND CALL CENTERS

With one of the largest concentrations of college students in the nation and one of the highest numbers of Fortune 1000 headquarters, the Columbus Region has a strong ecosystem of back office talent across all levels and all industries.

9

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FOOD AND BEVERAGE

Ohio ranks among the top five U.S. producers of bakery, dairy, snacks, spices, soft drinks, beer, wine and spirits, and within the Columbus Region there are more than 175 food and beverage manufacturing establishments with more than 9,000 employees. Employers note proximity to a high concentration of food businesses and farms as major advantages.

FINANCE AND INSURANCE

The Columbus Region is a finance and insurance powerhouse. Insurance companies employ nearly 27,000 people in the Columbus Region, while the financial services industry generates more than $23 billion in economic output. Columbus is home to the headquarters of Huntington, Nationwide and others, and JPMorgan Chase alone employs more than 20,000 in the Region.

BIOSCIENCE

More than 600 bioscience establishments in the Columbus Region employ more than 19,000 people. The Region is also home to Battelle, the world’s largest nonprofit contract research organization, which spends $5 billion on research annually.

INFORMATION TECHNOLOGY

Named the Most Favorable Metro for IT Staffing Potential and home to more than 2,000 science and technology establishments, the Columbus Region is emerging as a magnet for IT operations and talent. New Geography noted that the critical fuel for tech growth, educated labor, is now expanding faster in places like Columbus than in Boston, San Jose and San Francisco.

BIG DATA

The Columbus Region data analytics landscape encompasses dozens of firms across multiple industries. Global leader IBM operates the first-of-its-kind Analytics Solutions Lab from the Columbus Region, and seven companies have come together to found the multi-million dollar Columbus Collaboratory, an advanced technology company that will build deep expertise in advanced analytics and cyber security.

DISTRIBUTION AND E-COMMERCE FULFILLMENT

Growing retailers such as zulily, Gwynnie Bee and lululemon have chosen the Columbus Region for its market access—the best in the nation—and its talent pool that includes 140,000 college students providing surge labor and logistics workers trained at a variety of levels from vocational to PhD.

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Location

The Columbus Region is the most favorable business

location with accessibility to the American market

(Three Scale Research, June 2013).

The Region is within a 10 hour drive of:

• 47 percent of the U.S. population

• 44 percent of the U.S. manufacturing capacity

• 48 percent of all U.S. headquarters operations

• 34 percent of the Canadian population

CLEVELAND

DETROITNEW YORK

PHILADELPHIA

BALTIMORE

WASHINGTON, D.C.INDIANAPOLIS

CHICAGO

LOUISVILLE

PITTSBURGH

CHARLOTTE

RALEIGH

ATLANTA

MEMPHIS

NASHVILLE

NORFOLKST. LOUIS

COLUMBUS

MILWAUKEE

250 miles 400 km

500 miles 800 km

TORONTO

HARRISBURG

COUNTRIES WITH INVESTMENT IN THE COLUMBUS REGION

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• Enhanced freight rail connections to east coast ports as well as to Central Mexico

• Four intermodal terminals allow access to world markets and seaports

• Rickenbacker International Airport handled over 158 million pounds of air cargo in 2014

• Foreign Trade Zone #138 at Rickenbacker moved $6.3 billion worth of merchandise in 2013, making it the 7th largest FTZ

• Port Columbus International Airport has 140+ daily flights to more than 30 destination airports

• Cathay Pacific Airways and Cargolux each operate multiple freighter flights a week between Rickenbacker and Hong Kong while Emirates SkyCargo operates weekly freighter flights between Rickenbacker and Dubai.

Toronto

New York, NY

Charleston, SC

by Airby Seaby Railby Road

Los Angeles, CA

Norfolk, VA

Chicago, IL

Seattle, WA

Mexico City3.5-4 days9 days

COLUMBUS

Atlanta, GA

500 Mi/805 Km

HONG KONG

3.5-4 days9 days

4 days9 days

1 day2-3 days

1 day1-2 days

1 day1 day

ALL ACCESS PASS TO THE GLOBAL MARKET

“The ability of our Columbus location to reach a large part of the country so quickly has been invaluable. Not only do we have the logistics capabilities in the Region, but we have the proximity to our key markets. This is a huge benefit to us, and more importantly, to our customers.”

BRAD GARRISON, DIRECTOR, VSPOne COLUMBUS

ACCESS


TALENT

POPULATION CHANGE (MSA), 2000-2014

MEDIAN AGE (MSA), 2013 EDUCATIONAL ATTAINMENT (MSA)

The Columbus Region is brimming with top-notch talent. Defined by our Midwest work ethic and pride in our community, we boast a potential workforce of one million people. With a median age of 35.7, we’re more than two years younger than the national average. The Region reflects the youthful and progressive nature that 140,000 college students bring to the area. And we’re growing. The Columbus Region is the fastest growing major metropolitan area in the Midwest.

Associate Degree

Bachelor’s Degree & Higher

Indianapolis

Kansas City

Louisville

Milwaukee

Nashville

Pittsburgh

U.S. average

18.5%

18.6%

13.9%

13.0%

13.0%

4.6%

29.2%

- 3.0%

35.7 36.0 36.6 38.9 37.2 36.1

42.837.5

Indianapolis

Kansas City

Louisville

Milwaukee

Nashville

Pittsburgh

U.S.

30.8%38.5%

33.7%41.2%

27.0%35.0%

33.2%41.8%

32.3%39.0%

32.2%41.7%

29.6%37.7%

33.7%40.7%

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EDUCATIONAL RESOURCES

Dozens of vocational schools and multiple top-ranked universities provide ample educational opportunities in the Columbus Region. Whether it’s obtaining a GED or a PhD, the Region is constantly preparing a highly skilled workforce. Notable institutions include:

The Ohio State University • One of the largest universities in the U.S. with enrollment over 57,000 including more than 6,000 international students

• 175 undergraduate majors and more than 250 master’s, doctoral and professional degree programs

Columbus State Community College

• 25,000 students

• Offers associate degrees in automotive technology, aviation

maintenance, business management, civil engineering, information

technology, electro-mechanical engineering, electrical engineering

and numerous other business and engineering fields

Robotics & Advanced Manufacturing Technology Education Collaborative (RAMTEC)

• Provides advanced manufacturing skills, training and industrial

robotics applications

• Partners directly with businesses, such as Honda and Whirlpool,

providing training and apprenticeship programs

WORKFORCE DEVELOPMENT RESOURCES • Columbus is ranked No. 1 in the nation for training and networking

programs (Thumbtack, July 2014)

• Dozens of technical schools as well as workforce development grants and programs are available

“The location of this facility is in the midst of one of the greatest collections of engineering and production talent in the world.”

Hidenobu Iwata, Retired President and CEO, Honda North America Services, LLC

“Thanks to the various colleges and training programs, Central Ohio has a high-quality and dedicated workforce.”

David Pigion, Circleville Plant Site Manager, DuPont

WORKFORCE COSTSPRIVATE SECTOR WORKFORCE UNIONIZATION RATE

NUMBERS OF WORKERS AND AVERAGE HOURLY WAGES IN SCIENCE, ENGINEERING

AND IT OCCUPATIONS

METRO WORKERSAVERAGE HOURLY WAGE

Pittsburgh 63,823 $34.79 USD

61,823 $35.89 USD

Raleigh 50,053 $37.64 USD

Austin 85,094 $38.11 USD

Chicago 221,564 $38.44 USD

Boston 216,838 $44.77 USD

Seattle 191,198 $47.35 USD

San Francisco 216,943 $48.45

NUMBERS OF WORKERS AND AVERAGE HOURLY WAGES IN TRANSPORTATION AND

MATERIAL MOVING OCCUPATIONS


75,522 $14.70 USD

Memphis 87,379 $15.58 USD

Indianapolis 91,581 $16.44 USD

Los Angeles 380,587 $16.56 USD

Pittsburgh 67,982 $16.60 USD

Chicago 351,078 $17.23 USD

Louisville 61,571 $17.38 USD

Atlanta 207,777 $17.69 USD

Source: EMSI Analyst, 2015

NUMBER OF WORKERS AND AVERAGE HOURLY WAGES IN PRODUCTION

OCCUPATIONS


Atlanta 133,321 $15.56 USD


Charlotte 78,285 $16.66 USD

Nashville 67,483 $16.76 USD

57,884 $16.99 USD

Chicago 311,670 $17.22 USD

Louisville 62,652 $17.46 USD

Detroit 198,358 $18.43 USD

NUMBER OF WORKERS AND AVERAGE HOURLY WAGES IN MANAGEMENT, BUSINESS

AND OFFICE SUPPORT OCCUPATIONS


220,232 $24.81 USD

Nashville 203,655 $25.16 USD


Dallas 743,721 $25.82 USD

Atlanta 543,715 $28.00 USD

Charlotte 226,843 $28.83 USD

Chicago 952,821 $29.08 USD

New York 1,996,590 $32.51 USD

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Mem

phis

Om

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Den

ver

Min

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Los Ang

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Chica

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Det

roit

St. Lo

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Seattle

4.56.2

7.37.9

8.29.6

10.3 10.4

11.7

2.83.1 3.1

Loui

sville

15

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PRO-BUSINESS TAX STRUCTURE

“Columbus was an important strategic selection. We wanted to definitely have our location be very cost-effective but also have access to the right kind of talent.”

RANGA PURANIK, GLOBAL SALES AND BUSINESS DEVELOPMENT LEADER, PERSISTENT SYSTEMS

“The critical fuel for tech growth, educated labor, is now expanding faster in places like Columbus than in Boston, San Jose and San Francisco.”

NEW GEOGRAPHY

In addition to tax savings, state and local governments offer tax incentives, credits, loans and grantsto new businesses and expanding companies.

STATE AND LOCAL TAX STRUCTURE

CORPORATE INCOME / FRANCHISE TAX

INVENTORY TAX

COMMERCIAL ACTIVITY TAX (applies only to income where point of sale is Ohio)

REAL PROPERTY TAX (Commercial/Industrial)

UNEMPLOYMENT INSURANCE, EMPLOYER CONTRIBUTION AS % OF

TOTAL WAGES (USDOL 2014)

PERSONAL INCOME TAX (tax on employee)

SALES TAX

PAYROLL TAX ON EMPLOYER

WORKERS' COMPENSATION (OREGON DEPARTMENT OF CONSUMER

AND BUSINESS SERVICES 2014)

Income tax rates apply to net profits. Approximate average rate of 2.0% across Columbus Region. Apportionment:

property, payroll, sales.

•Flat fee of $150 on the first $1 million in taxable Ohio gross receipts for business exceeding $150,000.

•Tax rate of 0.26% on income >$1 million:-Plus $800 if taxable Ohio gross receipts between $1 million and $2 million

-Plus $2,100 if taxable Ohio gross receipts between $2 million and $4 million

-Plus $2,600 if taxable Ohio gross receipts over $4 million

Collected at local level. Median effective rate among Columbus Region tax districts is 1.80% (average effective rate 2.03%).

State average of 0.67%

Brackets from 0.495% on first $5,200 to 4.997% on income above $208,500. $2,200 personal exemption and, if incomes under $30,000,

$20 credit.

Effective rate on $35K (1 exemption, no joint filing): 1.96%

Effective rate on $75K (1 exemption, no joint filing): 2.77%

Rate depends on municipality of employment and residence. Approxi-mate average rate of 2.0% across Columbus Region.

5.75%

None

State average of 1.74%

County average: 1.36%

None

None

None

Local

State

Local

State

Local

State

Local

State

Local

State


REAL ESTATE

UTILITIES

OFFICE REAL ESTATE

BUILDINGS IN DATABASE 4,905

INVENTORY SQUARE METERS 9,415,485

VACANCY RATE 8.5%

ASKING DIRECT LEASE RATE$161.57 / sq.

meter$15.01 / sq. foot

INDUSTRIAL REAL ESTATE

BUILDINGS IN DATABASE 5,228

INVENTORY SQUARE METERS 26,913,471

VACANCY RATE 6.2%

ASKING DIRECT LEASE RATE$37.57 / sq.

meter$3.49 / sq. foot

Electric and Gas Deregulation = Energy Choice Ohio Energy Choice Ohio enables many of Ohio’s commercial, industrial and residential energy consumers the opportunity to shop for energy options from a diverse group of competitive electricity and natural gas suppliers certified by the Public Utilities Commission of Ohio (PUCO). The electric or gas supplier you choose will work with your local utility company, who will continue to deliver your energy, handle your billing and provide maintenance and emergency services.

Source: Xceligent, as of 08/14/2015

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LOW COST OF LIVING

St. Louis

Salt Lake City

Austin

Charlotte

Detroit

Phoenix

Pittsburgh

Atlanta

Cleveland

Denver

Minneapolis

Baltimore

Chicago

Los Angeles

Boston

New York

San Francisco

COST OF LIVING INDEX (METRO; U.S. = 100)

PERCENT HOMES AFFORDABLE FOR MEDIAN INCOME (METRO)

• No. 1 opportunity city in the U.S.

• No. 4 most budget-friendly metro in the U.S.

• No. 6 most affordable housing market for the middle class in the U.S.

• No. 7 most affordable housing market for Millennials in the U.S.

90.2

93.7

94.4

94.6

95.0

95.1

96.2

96.4

99.6

100.9

107.5

107.9

109.5

116.7

135.1

137.7

161.3

167.5

68.3% 63.3%

DENVER

75.4%

ATLANTA

64.6%

AUSTIN

69.5%

CHICAGO

14.1%

SAN FRANCISCO

19 COLUMBUS REGION OVERVIEW19

Ohio State Buckeyes Football Columbus Pride

Red, White and BOOM Fireworks Columbus Commons

Columbus Crew SCWexner Center for the Arts

Memorial Golf Tournament

2020

Columbus’ top-ranked location, educated workforce and vibrant cultural scene make it the perfect place to locate, whether you’re looking to grow a business, a career or a family. With a lively arts and entertainment scene, great shopping and professional sports, fun is never hard to come by in Ohio’s capital city. Four of Columbus’ top entertainment areas surround downtown, each packed with restaurants, shops and clubs—meaning you don’t have to venture far to have a great time. Columbus’ Short North Arts District offers a vast collection of galleries, boutiques and restaurants, and distinguishes Columbus as one of the Best Big Cities for Art by American Style magazine. The Short North hosts the popular Gallery Hop and HighBall Halloween events that attract thousands of people to celebrate the sights, sounds and cosmopolitan fun of the arts. Columbus has grown into one of the country’s most innovative foodie capitals. Experts from all over the country are discovering our amazing food scene, with the Washington Post calling Columbus “A Certified Food Lovers’ Town.” Enjoy a unique dining experience at the more than 50 locally owned member restaurants in Dine Originals Columbus. The one-of-a-kind shops in the Short North are a big reason that Forbes Magazine calls Columbus the No. 4 Best City for Shopping in America. Easton Town Center and Polaris Fashion Place also offer hundreds of specialty stores, excellent restaurants and entertainment. Columbus also features world-class cultural attractions such as the Wexner Center for the Arts, the Columbus Museum of Art and the Thurber House, as well as unique entertainment options like Shadowbox Live, Available Light Theatre and MadLab Theatre and Gallery. Our embrace of freethinking isn’t found just in the business community. Our love of new ideas and the people who have them can be found in the critically acclaimed attractions you’ll find in every corner of the city. In fact, independent rankings have cited Columbus for having the No. 1 zoo (Columbus Zoo and Aquarium), the No. 1 public library (Columbus Metropolitan Library), the No. 1 science center (COSI) and even the No. 1 ice cream (Jeni’s Splendid Ice Creams).

QUALITY OF LIFE

Columbus Zoo and Aquarium

German Village

Columbus Arts Festival


NOTES

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NOTES

columbusregion.com

Columbus 2020150 S. Front St., Suite 200Columbus, OH 43215614-225-6063

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Documents

COLUMBUS REGION Overvie · through outreach to growing companies around the world • Create the environment needed for high-growth companies, entrepreneurs and technology commercialization