Post on 29-Jun-2020
Best Practices in Operating a Regional FDI Organization
2018 IEDC Leadership Summit
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Moderator:
Moderator
Gene DePrez, Managing Partner, Global Innovation Partners, Sparta, NJ
Speakers
John D. Tennant, Managing Partner, W2N2 Partnership, Kitchener, Waterloo Region, ON, Canada Jerry Mallot, President, JAXUSA Partnership, Jacksonville, FL Barbara McKenzie, Executive Director, Leduc-Nisku Economic Development Association, Leduc, Canada
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© 2017 IBM Corporation © 2017 IBM Corporation 4
© 2017 IBM Corporation
Global Location Trends report 2017 IBM-Plant Location International
Search: IBM Global Location Trends 2017
© 2017 IBM Corporation
Global Location Trends Growth, disruption and opportunities Uncertainties, political rhetoric, disruptive technologies Opportunities to access international markets and leveraging supply chains
© 2017 IBM Corporation © 2017 IBM Corporation
Job creation through foreign investment increased 10% in 2016 Three continuous years of growth after much volatility post-crisis
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0
200,000
400,000
600,000
800,000
1,000,000
1,200,000
1,400,000
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Jobs New foreign investment activity in 2007-2016: Job creation
Source: IBM-PLI Global Location Trends report, 2017
© 2017 IBM Corporation © 2017 IBM Corporation
India and Mexico continue recent strong performance Big 3 become Big 4
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0 20,000 40,000 60,000 80,000 100,000 120,000
India
United States
Mexico
China
Thailand
United Kingdom
Vietnam
Brazil
Russia
Germany
Poland
Philippines
Serbia
Morocco
Hungary
Czech Republic
Ethiopia
Romania
Canada
Saudi Arabia
2015 2016
Top ranking destination countries by estimated jobs – 2016 (15)
Source: IBM-PLI Global Location Trends report, 2017
© 2017 IBM Corporation © 2017 IBM Corporation
India and Mexico continue recent strong performance Big 3 become Big 4
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0 20,000 40,000 60,000 80,000 100,000 120,000
India
United States
Mexico
China
Thailand
United Kingdom
Vietnam
Brazil
Russia
Germany
Poland
Philippines
Serbia
Morocco
Hungary
Czech Republic
Ethiopia
Romania
Canada
Saudi Arabia
2015 2016
Top ranking destination countries by estimated jobs – 2016 (15)
Source: IBM-PLI Global Location Trends report, 2017
India: • 30+% growth! • Diversifying from
pure services
© 2017 IBM Corporation © 2017 IBM Corporation
India and Mexico continue recent strong performance Big 3 become Big 4
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0 20,000 40,000 60,000 80,000 100,000 120,000
India
United States
Mexico
China
Thailand
United Kingdom
Vietnam
Brazil
Russia
Germany
Poland
Philippines
Serbia
Morocco
Hungary
Czech Republic
Ethiopia
Romania
Canada
Saudi Arabia
2015 2016
Top ranking destination countries by estimated jobs – 2016 (15)
Source: IBM-PLI Global Location Trends report, 2017
Mexico: • 24% growth • Heavily dominated by
automotive (>50%)
© 2017 IBM Corporation © 2017 IBM Corporation
India and Mexico continue recent strong performance Big 3 become Big 4
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0 20,000 40,000 60,000 80,000 100,000 120,000
India
United States
Mexico
China
Thailand
United Kingdom
Vietnam
Brazil
Russia
Germany
Poland
Philippines
Serbia
Morocco
Hungary
Czech Republic
Ethiopia
Romania
Canada
Saudi Arabia
2015 2016
Top ranking destination countries by estimated jobs – 2016 (15)
Source: IBM-PLI Global Location Trends report, 2017
USA: • Drop in FDI • Domestic investment up
© 2017 IBM Corporation © 2017 IBM Corporation
Global FDI growth mostly driven by strongest mature economies USA and Germany, and fast runner up China. UK companies hesitate
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0 50,000 100,000 150,000 200,000 250,000 300,000 350,000
United States
Germany
Japan
China
France
United Kingdom
South Korea
Netherlands
Switzerland
Canada
Hong Kong
Singapore
India
Taiwan
Spain
2015 2016
Top ranking origin countries by estimated jobs – 2016 (15)
Source: IBM-PLI Global Location Trends report, 2017
© 2017 IBM Corporation © 2017 IBM Corporation 13
Automotive and hotels are strongest job creators Information and Communications Technology shows strong increase
0 50,000 100,000 150,000 200,000 250,000
Industrial Machinery & Equipment
Wholesale & Retail
Food, Beverages & Tobacco
Textiles & Clothing
Electronics
Business Services
Chemicals
ICT
Tourism
Transport Equipment
2016 2015 2014 Source: IBM-PLI Global Location Trends report, 2017
Top ranking sectors by estimated jobs – 2016 (2014/2015)
© 2017 IBM Corporation © 2017 IBM Corporation
Global Region Profile: North America
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Trend in foreign investment projects and jobs
0
500
1,000
1,500
2,000
0
50,000
100,000
150,000
200,000
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Jobs Projects
© 2017 IBM Corporation © 2017 IBM Corporation
Global Region Profile: North America
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Top investing sectors (in ‘000 jobs)
20.2
15.4
10.5
10.0
6.9
6.1
5.8
5.6
5.4
4.5
0 5 10 15 20 25 30 35
Transport Equipment
Chemicals
ICT
Business Services
Pharma, Medical &Healthcare
Industrial Machinery &Equipment
Financial Services
Wholesale & Retail
Tourism
Food, Beverages &Tobacco
2015 2016
© 2017 IBM Corporation © 2017 IBM Corporation
Global Region Profile: North America
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Top investing countries (in ‘000 jobs)
16.8
14.7
11.7
11.4
9.5
7.3
6.0
5.0
3.8
3.0
0 5 10 15 20
Germany
United Kingdom
United States
Japan
Canada
France
China
Netherlands
Ireland
Switzerland
2015 2016
© 2017 IBM Corporation © 2017 IBM Corporation 17
Global Region Profile: North America
By jobs created (in ‘000 jobs)
Top destination regions
9.5
9.0
8.0
6.3
6.1
5.6
5.4
5.3
5.3
4.2
0 2 4 6 8 10 12
Ontario
Illinois
Georgia
Texas
North Carolina
Kentucky
California
Tennessee
South Carolina
Arizona
2015 2016
© 2017 IBM Corporation © 2017 IBM Corporation 18
Global Region Profile: North America
By jobs created (in ‘000 jobs)
Top destination metropolitan areas
7.1
5.8
4.1
3.0
2.3
1.7
1.6
1.5
1.5
1.5
0 1 2 3 4 5 6 7 8
Chicago
Toronto
Phoenix
Atlanta
Montreal
New York City
San Jose
Dallas
Houston
Boston
2015 2016
© 2017 IBM Corporation
• Safe and secure digital infrastructure • Digital skills, e.g. Data Scientists
• Partner eco-system
• Automation and total operating costs
• Physical infrastructure • Sector/functional skills
• Supplier base • Competitive labour costs
New emphasis Traditional emphasis
Outlook: Location requirements will change
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Moderator:
Topics:
How to organize a regional FDI attraction strategy, best practices?
How have some of the best results been achieved?
How can smaller communities benefit and participate?