AMERICANCITIESOFTHEFUTURE AmericanCitiesof ......2016 –the highestnumber of all locationsin this...
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30 REGIONS AMERICAN CITIES OF THE FUTURE www.fDiIntelligence.com April/May 2017 NEW YORK HAS ONCE AGAIN BEEN NAMED fDi’S AMERICAN CITY OF THE FUTURE, TOPPING THE 2017/18 RANKINGS, WHILE SAN FRANCISCO HAS HELD ON TO ITS SECOND POSITION WITH HOUSTON THIRD. MEANWHILE, CANADIAN CITIES HAVE SHOWN MOST NOTABLE MOVEMENT IN THE LIST, AS CATHY MULLAN REPORTS American Cities of the Future 2017/18 Winners T he bright lights of New York have again outshone every other city on either American continent. The metropolis attracted 819 FDI projects between 2012 and 2016 – the highest number of all locations in this study. Most investment in the city was derived from companies from western Europe (68.6%), followed by Asia-Pacific (14.8%) and North America (6.7%). New York also enjoys the highest GDP of all locations in the rankings. São Paulo received the second highest number of inward FDI pro- jects (470) and was the only Latin American city to rank among the Top 10 American Cities of the Future. The biggest movement in this year’s rank- ing is seen among Canadian locations. Toronto has risen from sixth to fourth place, Montreal enters the top 10 at five and Vancouver has risen from eighth place in the 2015/16 ranking to take sixth place in 2017/18. Toronto holds steady Toronto’s share of total Canadian FDI has held relatively steady at about one-third of all invest- ment. The lion’s share of investment in the city is in sales, marketing and support and business service activities (together accounting for 72% of Toronto’s inward FDI). Montreal has become a more important Canadian FDI hub in recent years. Its share of Canadian FDI has increased from 6% in 2012 to just over 13% in 2016. However, its share peaked in 2014 when the city attracted nearly 17% of Canada’s FDI. French companies were the biggest source of Montreal’s inward FDI Top of the heap: New York attracted the most FDI projects between 2012 and 2016, and boasts the highest GDP in the rankings
Transcript of AMERICANCITIESOFTHEFUTURE AmericanCitiesof ......2016 –the highestnumber of all locationsin this...
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REGIONSAMERICAN CITIES OF THE FUTURE
www.fDiIntelligence.com April/May 2017
NEW YORK HAS ONCE AGAIN BEEN NAMED fDi’SAMERICAN CITY OF THE FUTURE, TOPPING THE 2017/18RANKINGS, WHILE SAN FRANCISCO HAS HELD ON TO ITSSECOND POSITION WITH HOUSTON THIRD. MEANWHILE,CANADIAN CITIES HAVE SHOWNMOST NOTABLEMOVEMENT IN THE LIST, AS CATHYMULLAN REPORTS
American Cities ofthe Future 2017/18Winners
T he bright lights of New York have againoutshone every other city on eitherAmerican continent. The metropolis
attracted 819 FDI projects between 2012 and2016 – the highest number of all locations inthis study. Most investment in the city wasderived from companies from western Europe(68.6%), followed by Asia-Pacific (14.8%) andNorth America (6.7%).
New York also enjoys the highest GDP of alllocations in the rankings. São Paulo receivedthe second highest number of inward FDI pro-jects (470) and was the only Latin American cityto rank among the Top 10 American Cities ofthe Future.
The biggest movement in this year’s rank-ing is seen among Canadian locations. Torontohas risen from sixth to fourth place, Montreal
enters the top 10 at five and Vancouver hasrisen from eighth place in the 2015/16 rankingto take sixth place in 2017/18.
Torontoholds steadyToronto’s share of total Canadian FDI has heldrelatively steady at about one-third of all invest-ment. The lion’s share of investment in the cityis in sales, marketing and support and businessservice activities (together accounting for 72%of Toronto’s inward FDI).
Montreal has become a more importantCanadian FDI hub in recent years. Its share ofCanadian FDI has increased from 6% in 2012to just over 13% in 2016. However, its sharepeaked in 2014 when the city attracted nearly17% of Canada’s FDI. French companies werethe biggest source of Montreal’s inward FDI
Top of the heap: New York attracted the most FDI projects between 2012 and 2016, and boasts the highest GDP in the rankings
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REGIONSAMERICAN CITIES OF THE FUTURE
TOP10 OVERALL AMERICAN CITIES OF THE FUTURE 2017/18RANK CITY STATE COUNTRY1 New York New York US2 San Francisco California US3 Houston Texas US4 Toronto Ontario Canada5 Montreal Quebec Canada6 Vancouver British Columbia Canada7 Boston Massachusetts US8 Atlanta Georgia US9 São Paulo São Paulo Brazil10 Sunnyvale California US
TOP10 OVERALL NORTH AMERICAN CITIES OF THE FUTURE 2017/18RANK CITY STATE COUNTRY1 New York New York US2 San Francisco California US3 Houston Texas US4 Toronto Ontario Canada5 Montreal Quebec Canada6 Vancouver British Columbia Canada7 Boston Massachusetts US8 Atlanta Georgia US9 Sunnyvale California US10 Seattle Washington US
TOP10 OVERALL LATIN AMERICAN CITIES OF THE FUTURE 2017/18RANK CITY STATE COUNTRY1 São Paulo São Paulo Brazil2 Querétaro Querétaro Mexico3 Mexico City Distrito Federal Mexico4 Santiago Chile Chile5 Bogotá Cundinamarca Colombia6 Buenos Aires Buenos Aires Argentina7 San Luis Potosí San Luis Potosí Mexico8 Monterrey Nuevo Leon Mexico9 San Jose Costa Rica Costa Rica10 Panamá City Panama Panama
between 2012 and 2016, accounting for 60projects. By comparison, companies from theUS invested in 50 projects.
Historically, France and the US have beenMontreal’s biggest source markets for FDI. Abilateral Canada-France joint action plan wassigned for 2012-13, with the aim of strengthen-ing trade and economic relations and theimpact on FDI has been notable. Between 2013and 2015, France was Montreal’s largest sourcemarket for FDI by a considerable margin. How-ever, in 2016 the US overtook France once again.But a more protectionist and anti-globalistWhite House being in charge of US trade andinvestment policy could lead to a continuationof this rollercoaster pattern.
Vancouver tech attractionVancouver, on Canada’s west coast, is fDi’sLarge American City of the Future for 2017/18.The city tops the rankings in Economic Poten-tial and Business Friendliness in the LargeCity category. Vancouver has a healthy econ-omy, with a high GDP per capita and an unem-ployment rate of 4.9%. The city welcomed 99FDI projects between 2012 and 2016, nearlyone-third of which was in the software and ITservices sector.
Software FDI in the city has been increas-ing, with major investments from IT giantsincluding Amazon, Microsoft and Hewlett-Packard. In June 2016, US-based Microsoft cre-ated 450 jobs in Vancouver with the establish-ment of a new engineering centre, bringing itsheadcount in the city to 750. Vancouver hasdeveloped a reputation as a strong location forinvestment in the software sector, with China-based Hanhai Zhiye choosing to launch itsclean tech innovation centre there, citing
TOP 10 AMERICAN CITIES FOR INWARD FDI BY PROJECTNUMBERS, 2012-2016
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TOP10MAJOR AMERICAN CITIES OF THE FUTURE 2017/18 –OVERALLRANK CITY STATE COUNTRY1 New York New York US2 San Francisco California US3 Houston Texas US4 Toronto Ontario Canada5 Montreal Quebec Canada6 Boston Massachusetts US7 Atlanta Georgia US8 São Paulo São Paulo Brazil9 Austin Texas US10 Miami Florida US
TOP10MAJOR AMERICAN CITIES OF THE FUTURE 2017/18 –ECONOMIC POTENTIALRANK CITY STATE COUNTRY1 San Francisco California US2 New York New York US3 Toronto Ontario Canada4 São Paulo São Paulo Brazil5 Houston Texas US6 Montreal Quebec Canada7 Atlanta Georgia US8 Boston Massachusetts US9 Miami Florida US10 Austin Texas US
TOP10MAJOR AMERICAN CITIES OF THE FUTURE 2017/18 –HUMAN CAPITAL AND LIFESTYLERANK CITY STATE COUNTRY1 New York New York US2 Chicago Illinois US3 Houston Texas US4 Austin Texas US5 Los Angeles California US6 San Diego California US7 Boston Massachusetts US8 Montreal Quebec Canada9 Washington, DC District of Columbia US10 Toronto Ontario Canada
TOP10MAJOR AMERICAN CITIES OF THE FUTURE 2017/18 –COST EFFECTIVENESSRANK CITY STATE COUNTRY1 Guayaquil Guayas Ecuador2 Guatemala City Guatemala Guatemala3 Santiago Chile Chile4 Quito Pichincha Ecuador5 Lima Peru Peru6 Belem Pará Brazil7 Barranquilla Atlántico Colombia8 Fortaleza Ceará Brazil9 Manaus Amazonas Brazil10 Cali Valle del Cauca Colombia
MAJOR AMERICAN CITIES OF THE FUTURE
the “impressive technology sector and focus oninnovation and the environment”.
Mississauga, part of Ontario’s GreaterToronto Area, tops the ranking of fDi’s Mid-Sized American Cities of the Future 2017/18,also topping the Business Friendliness rankingin this classification. The city recorded thehighest number of advanced manufacturingcompanies of all locations, with almost one-fifth of all FDI into the city between 2012 and2016 in the industrial machinery, equipmentand tools sector.
Cementing its reputation as a hub foradvanced manufacturing, Mississauga is hometo the Canadian Manufacturing Tech Show,which isheld at the InternationalCentre facility,and the Advanced Manufacturing Canada Con-ference, which is being held at the show in 2017.
Sunnyvale reignsSunnyvale, in California’s Silicon Valley, isplaced first in the Small Cities classification,and 10th in the overall ranking. The city is atech hub, with more than one-third of invest-ment into the software and IT services sector,and over one-fifth into the communicationssector. Germany’s FEV, which specialises inengine components, established an office inthe city, citing its talented resources and cul-ture of innovation and new technology as rea-sons for investing.
Sunnyvale tops the Economic Potentialranking for Small Cities, helped by its strongrecord for patents granted, which amounted tomore than 34,000 in the decade to 2015. Thecity’s library is an official Patent and TrademarkResource Center, one of only seven inCalifornia.
Wilmington, on the banks of the DelawareRiver, is the leading American City of theFuture in the Micro City classification. It wasthe source city for 71 FDI projects between 2012and 2016, and has the highest number of out-ward FDI projects per 100,000 people of all loca-tions studied, helping it top the ranking forMicro Cities in the Economic Potential cate-gory. The city has seven ports within 100 kilo-metres, and connections to 30 internationaldestinations from Philadelphia InternationalAirport, just over 30 kilometres from the city.■
“We are committedto securing Surrey’sposition asa top destination forinvestors with ourbusiness friendlyapproach and state-of-the-artmoderninfrastructure”Linda Hepner, mayor, Surrey
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TOP 10 MAJOR AMERICAN CITIES OF THE FUTURE 2017/18 –CONNECTIVITYRANK CITY STATE COUNTRY1 New York New York US2 San Francisco California US3 Houston Texas US4 Los Angeles California US5 Boston Massachusetts US6 Miami Florida US7 Philadelphia Pennsylvania US8 Washington, DC District of Columbia US9 Chicago Illinois US10 Austin Texas US
TOP 10 LARGE AMERICAN CITIES OF THE FUTURE 2017/18 –ECONOMIC POTENTIALRANK CITY STATE COUNTRY1 Vancouver British Columbia Canada2 Seattle Washington US3 San Jose California US4 Querétaro Querétaro Mexico5 San Luis Potosí San Luis Potosí Mexico6 Tijuana Baja California Mexico7 Denver Colorado US8 Minneapolis Minnesota US9 Cincinnati Ohio US10 Portland Oregon US
TOP 10 LARGE AMERICAN CITIES OF THE FUTURE 2017/18 –OVERALLRANK CITY STATE COUNTRY1 Vancouver British Columbia Canada2 Seattle Washington US3 San Jose California US4 Querétaro Querétaro Mexico5 San Luis Potosí San Luis Potosí Mexico6 Cincinnati Ohio US7 Denver Colorado US8 Calgary Alberta Canada9 St Louis Missouri US10 Orlando Florida US
LARGE AMERICAN CITIES OF THE FUTURE
TOP 10 MAJOR AMERICAN CITIES OF THE FUTURE 2017/18 –BUSINESS FRIENDLINESSRANK CITY STATE COUNTRY1 New York New York US2 Houston Texas US3 Toronto Ontario Canada4 Montreal Quebec Canada5 San Francisco California US6 São Paulo São Paulo Brazil7 Atlanta Georgia US8 Austin Texas US9 Mexico City Distrito Federal Mexico10 Miami Florida US
“We salute our entire economic development team for helping to achieve this high recognition”Colin Read, mayor, Plattsburgh
“Investments are being made in our downtown, arts, entertainment, and heritage to foster a culture of vibrancy, creativity and entrepreneurship” Kapil Lakhotia, President and CEO, London Economic Development Corporation (Ontario)
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TOP 10 LARGE AMERICAN CITIES OF THE FUTURE 2017/18 –HUMAN CAPITAL AND LIFESTYLERANK CITY STATE COUNTRY1 Edmonton Alberta Canada2 Orlando Florida US3 Minneapolis Minnesota US4 Portland Oregon US5 Denver Colorado US6 Seattle Washington US7 Saint Paul Minnesota US8 Columbus Ohio US9 Nashville Tennessee US10 Pittsburgh Pennsylvania US
TOP 10 LARGE AMERICAN CITIES OF THE FUTURE 2017/18 –COST EFFECTIVENESSRANK CITY STATE COUNTRY1 Asunción Gran Asunción Paraguay2 Panama City Panama Panama3 Santa Cruz Bolivia Bolivia4 San Pedro Sula Honduras Honduras5 Tegucigalpa Honduras Honduras6 La Paz Bolivia Bolivia7 Londrina Paraná Brazil8 Managua Nicaragua Nicaragua9 São Luis Maranhão Brazil10 Sorocaba São Paulo Brazil
TOP 10 LARGE AMERICAN CITIES OF THE FUTURE 2017/18 –BUSINESS FRIENDLINESSRANK CITY STATE COUNTRY1 Vancouver British Columbia Canada2 Querétaro Querétaro Mexico3 Calgary Alberta Canada4 Edmonton Alberta Canada5 San Luis Potosí San Luis Potosí Mexico6 Seattle Washington US7 Ottawa Ontario Canada8 Cincinnati Ohio US9 Tijuana Baja California Mexico10 Columbus Ohio US
TOP 10 LARGE AMERICAN CITIES OF THE FUTURE 2017/18 –
TOP 10 LARGE AMERICAN CITIES OF THE FUTURE 2017/18 –CONNECTIVITYRANK CITY STATE COUNTRY1 San José California US2 Seattle Washington US3 Kansas Kansas US4 Kansas City Missouri US5 Vancouver British Columbia Canada6 Panamá City Panama Panama7 Baltimore Maryland US8 Orlando Florida US9 Sacramento California US10 Tampa Florida US
“We continue tocement our reputationas a destinationbusinesses choose toinvest, innovate, createjobs and remain aheadof the competition”Bonnie Crombie, mayor,Mississauga
“As a growingcommunity that’s hometo strong internationalcompanies, a highlyeducatedworkforceand prime developableland, Franklin is the idealplace for investmentand corporate growth”SteveOlson,mayor, Franklin
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TOP 10 MID-SIZED AMERICAN CITIES OF THE FUTURE 2017/18 –ECONOMIC POTENTIALRANK CITY STATE COUNTRY1 San Jose Costa Rica Costa Rica2 Aguascalientes Aguascalientes Mexico3 Richmond Virginia US4 Chihuahua Chihuahua Mexico5 Raleigh North Carolina US6 Apodaca Nuevo León Mexico7 Quebec Quebec Canada8 Saltillo Coahuila Mexico9 Mississauga Ontario Canada10 Birmingham Alabama US
TOP 10 MID-SIZED AMERICAN CITIES OF THE FUTURE 2017/18 –HUMAN CAPITAL AND LIFESTYLERANK CITY STATE COUNTRY1 Colorado Springs Colorado US2 Aurora Colorado US3 Honolulu Hawaii US4 Quebec Quebec Canada5 Anaheim California US6 Arlington Texas US7 Halifax Nova Scotia Canada8 Oakland California US9 Long Beach California US10 Omaha Nebraska US
TOP 10 MID-SIZED AMERICAN CITIES OF THE FUTURE 2017/18 –
TOP 10 MID-SIZED AMERICAN CITIES OF THE FUTURE 2017/18 –OVERALLRANK CITY STATE COUNTRY1 Mississauga Ontario Canada2 San Jose Costa Rica Costa Rica3 Richmond Virginia US4 Raleigh North Carolina US5 Quebec Quebec Canada6 Oakland California US7 Anaheim California US8 Hamilton Ontario Canada9 Long Beach California US10 Brampton Ontario Canada
MID-SIZED AMERICAN CITIES OF THE FUTURE
TOP 10 MID-SIZED AMERICAN CITIES OF THE FUTURE 2017/18 –COST EFFECTIVENESSRANK CITY STATE COUNTRY1 Cuenca Azuay Ecuador2 Piura Peru Peru3 Alajuela Costa Rica Costa Rica4 Valparaíso Chile Chile5 Trujillo Peru Peru6 Antofagasta Chile Chile7 San Salvador El Salvador El Salvador8 Arequipa Peru Peru9 Pereira Risaralda Colombia10 Ibagué Tolima Colombia
“Our diverse economyand proximity toglobalmarkets offeropportunities you can’tfind anywhere else”Kevin Faulconer, mayor, San Diego
“Ourmomentumcontinues to buildas we implementour global trade andinvestment strategy”Ivy Taylor, mayor, San Antonio
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REGIONSAMERICAN CITIES OF THE FUTURE
TOP10 SMALL AMERICAN CITIES OF THE FUTURE 2017/18 –ECONOMIC POTENTIALRANK CITY STATE COUNTRY1 Sunnyvale California US2 Bellevue Washington US3 Fremont California US4 Irvine California US5 Cary North Carolina US6 Ann Arbor Michigan US7 Waterloo Ontario Canada8 Plano Texas US9 Stamford Connecticut US10 Chattanooga Tennessee US
SMALL AMERICAN CITIES OF THE FUTURETOP10 SMALL AMERICAN CITIES OF THE FUTURE 2017/18 –OVERALLRANK CITY STATE COUNTRY1 Sunnyvale California US2 Irvine California US3 Fremont California US4 Bellevue Washington US5 Ann Arbor Michigan US6 Fort Lauderdale Florida US7 Stamford Connecticut US8 Cary North Carolina US9 Plano Texas US10 Guelph Ontario Canada
“Richardson has adistinguished trackrecord as a hub forinnovative, globallyoriented businessactivity in technologyand other key sectors”Paul Voelker, mayor, Richardson
“We are disruptingthe status quo inBrampton, andproviding businessesthe tools necessaryto compete in theglobalmarket”Linda Jeffrey, mayor, Brampton
TOP10MID-SIZED AMERICAN CITIES OF THE FUTURE 2017/18 –CONNECTIVITYRANK CITY STATE COUNTRY1 Oakland California US2 Long Beach California US3 Anaheim California US4 Brampton Ontario Canada5 Mississauga Ontario Canada6 Hamilton Ontario Canada7 New Orleans Louisiana US8 Surrey British Columbia Canada9 Arlington Texas US10 Honolulu Hawaii US
TOP10MID-SIZED AMERICAN CITIES OF THE FUTURE 2017/18 –BUSINESS FRIENDLINESSRANK CITY STATE COUNTRY1 Mississauga Ontario Canada2 Brampton Ontario Canada3 Quebec Quebec Canada4 Hamilton Ontario Canada5 San Jose Costa Rica Costa Rica6 London Ontario Canada7 Richmond Virginia US8 Laval Quebec Canada9 Surrey British Columbia Canada10 Winnipeg Manitoba Canada
TOP 10 SMALL AMERICAN CITIES OF THE FUTURE 2017/18 –HUMAN CAPITAL AND LIFESTYLERANK CITY STATE COUNTRY1 Tempe Arizona US2 Denton Texas US3 Athens Georgia US4 Guelph Ontario Canada5 Pasadena California US6 Kingston Ontario Canada7 Arlington Virginia US8 Irvine California US9 Lincoln Nebraska US10 Gainesville Florida US
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TOP 10 SMALL AMERICAN CITIES OF THE FUTURE 2017/18 –CONNECTIVITYRANK CITY STATE COUNTRY1 Jersey New Jersey US2 Stamford Connecticut US3 Newark New Jersey US4 Yonkers New York US5 Paterson New Jersey US6 Elizabeth New Jersey US7 Sunnyvale California US8 Hayward California US9 Fremont California US10 Vallejo California US
TOP 10 SMALL AMERICAN CITIES OF THE FUTURE 2017/18 –BUSINESS FRIENDLINESSRANK CITY STATE COUNTRY1 Windsor Ontario Canada2 Chattanooga Tennessee US3 Plano Texas US4 Heredia Costa Rica Costa Rica5 Oakville Ontario Canada6 Cambridge Ontario Canada7 Markham Ontario Canada8 Guelph Ontario Canada9 Waterloo Ontario Canada10 Burlington Ontario Canada
“We’re proud to bea business-friendlyenvironment forbusinesses of allsizes and in a hugerange of industry”Jim Coppinger, mayor,Hamilton County
“Chattanoogansfrom all walks of lifehelp contribute toour city being a placewhere people wantto do business”Andy Berke, mayor, Chattanooga
TOP 10 MICRO AMERICAN CITIES OF THE FUTURE 2017/18 –OVERALLRANK CITY STATE COUNTRY1 Wilmington Delaware US2 Langley British Columbia Canada3 Greenville South Carolina US4 Santa Fe Springs California US5 North Vancouver British Columbia Canada6 Poughkeepsie New York US7 Fredericton New Brunswick Canada8 Plattsburgh New York US9 Brantford Ontario Canada10 Gahanna Ohio US
MICRO AMERICAN CITIES OF THE FUTURE
TOP 10 SMALL AMERICAN CITIES OF THE FUTURE 2017/18
TOP 10 SMALL AMERICAN CITIES OF THE FUTURE 2017/18 –COST EFFECTIVENESSRANK CITY STATE COUNTRY1 Potosí Potosí Bolivia2 Sobral Ceará Brazil3 Heredia Costa Rica Costa Rica4 Sete Lagoas Minas Gerais Brazil5 Maracanaú Ceará Brazil6 Neiva Huila Colombia7 Praia Grande São Paulo Brazil8 Taubaté São Paulo Brazil9 Jaragua do Sul Santa Catarina Brazil10 Sumare São Paulo Brazil
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TOP10MICRO AMERICAN CITIES OF THE FUTURE 2017/18 –ECONOMIC POTENTIALRANK CITY STATE COUNTRY1 Wilmington Delaware US2 Greenville South Carolina US3 Plattsburgh New York US4 Santa Fe Springs California US5 Langley British Columbia Canada6 Poughkeepsie New York US7 Meridian Idaho US8 Danville Virginia US9 Santa Ana Costa Rica Costa Rica10 Bismarck North Dakota US
REGIONSAMERICAN CITIES OF THE FUTURE
“Quebec City’seconomicdevelopment strategysets forth a cohesivevision and gets alldecision-makers andthe entrepreneurialcommunity on thesame page”Régis Labeaume,mayor, Quebec City
TOP10MICRO AMERICAN CITIES OF THE FUTURE 2017/18 –HUMAN CAPITAL AND LIFESTYLERANK CITY STATE COUNTRY1 Fredericton New Brunswick Canada2 Langley British Columbia Canada3 North Vancouver British Columbia Canada4 Poughkeepsie New York US5 Santa Fe Springs California US6 Gahanna Ohio US7 Oroville California US8 Greenville North Carolina US9 Wilmington Delaware US10 Meridian Idaho USTOP10MICRO AMERICAN CITIES OF THE FUTURE 2017/18 –COST EFFECTIVENESSRANK CITY STATE COUNTRY1 Santa Ana Costa Rica Costa Rica2 Itatiaia Rio de Janeiro Brazil3 Atlacomulco Mexico Mexico4 Rocky Mount North Carolina US5 Pocatello Idaho US6 Greenville North Carolina US7 Ogden Utah US8 Yuma Arizona US9 Idaho Falls Idaho US10 Lyons Kansas USTOP10MICRO AMERICAN CITIES OF THE FUTURE 2017/18 –CONNECTIVITYRANK CITY STATE COUNTRY1 Wilmington Delaware US2 South Gate California US3 Santa Fe Springs California US4 Pickering Ontario Canada5 Langley British Columbia Canada6 North Vancouver British Columbia Canada7 Franklin Wisconsin US8 Ogden Utah US9 Repentigny Quebec Canada10 Gahanna Ohio USTOP10MICRO AMERICAN CITIES OF THE FUTURE 2017/18 –BUSINESS FRIENDLINESSRANK CITY STATE COUNTRY1 Brantford Ontario Canada2 Langley British Columbia Canada3 Niagara Falls Ontario Canada4 North Vancouver British Columbia Canada5 Fredericton New Brunswick Canada6 Pickering Ontario Canada7 Chatham Ontario Canada8 Sarnia Ontario Canada9 Nanaimo British Columbia Canada10 Sudbury Ontario Canada
CHICAGO, ILLINOISMajor CitywinnerAmong the top North American des-tinations for inward FDI, Chicago hasproved its FDI Strategy is a winningone. Named first for FDI Strategy inthe Major City category, up fromthird last time, World Business Chi-cago (WBC) has seen some majordevelopments in recent years. Staffnumbers at the organisation havedoubled since 2012, while fundinghas tripled.
The outward-looking agency hasworked hard to put Chicago on theworldmap, signing amemorandumof understanding with China to bethe official gateway city for FDIcoming from a number of Chinesecities, including Beijing, Shanghaiand Tianjin. Joint conferences andtrade missions have followed sincethe agreement was signed in Decem-ber 2013.
The city enjoys a sister relation-ship with 28 cities across the world,alongside agreements with London,Mexico, Paris and Toronto, whichstrengthen bilateral ties and bolstertrade and investment. The organisa-tion also works closely with thestate of Illinois, which has repre-sentative offices in nine cities onfive continents.
Chicago offers reimbursementcosts of up to 50% for very large com-pany headquarter investments – justone of a host of financial incentives.The organisation’s website hosts asite-selection app that gives prospec-tive investors a bird’s eye view ofavailable Chicago real estate, servicesand incentives.
CARTAGENA, COLOMBIALargeCitywinnerA port city on Colombia’s northcoast, Cartagena has a heavy indus-trial focus. Invest in Cartagena, thecity’s investment promotion body,says it is the country’smain producerof petrochemical products and hometo Latin America’s most modern oilrefinery. A metal mechanic shipyardis among the most important in thecountry, and the port infrastructurehas connections to 614 ports, 140countries and 25 shipping lines.
Investors can benefit from prefer-ential tax rates in Cartagena’s freezones (with income tax rates reducedto 15%) and exemption of value-addedtax from raw materials, inputs andfinished goods. There is an aftercareprogramme to assist investors whowish to expand or set up supplychains in the city.
HAMILTON,ONTARIOMid-sizedCitywinnerHamilton, located 70 kilometressouth-west of Toronto, is the winnerfor FDI Strategy in the Mid-sizedCity category. The city puts a focuson research, life sciences andadvanced manufacturing, sup-ported by the recent establishmentof the new McMaster UniversityFraunhofer Project Centre for Bio-medical Engineering and AdvancedManufacturing, which is dedicatedto the development of new technol-ogies for cell therapy and point-of-care diagnostics.
The city has an active online pres-ence onmost socialmedia platforms,including Facebook, Twitter and You-Tube, as well as an Invest TV channel,which produces short video clips fea-turing good economic news storiesfrom the city. The ‘Hamilton Calling’aftercare programme aims to visit100 companies in the city each year,assisting with any resources theymight need and ensuring they arewell settled. A customer relationshipmanagement system is used to keepcompanies up to datewith any eventsor additional programmes on offer.
KINGSTON,ONTARIOSmall CitywinnerKingston Economic DevelopmentCorporation is responsible for attract-ing foreign investors to Kingston, onthe southern shores of Canada’sOntario province. The organisationboasts a multilingual website, whichis considered to have been instru-mental in attracting more thanC$240m ($179.6m) of investmentfrom Chinese and Portuguese inves-tors. Agency staff are studying lan-guages in an effort to better accessinvestors in non-Anglophone mar-kets. A rebranding of the agency’s
website is scheduled for 2017, and therebooted page will feature infograph-ics and sophisticated visualisationtechnology.
On the ground in Kingston,C$16m has been allocated for an air-port expansion,with additional infra-structure upgrades including C$20mfor a new ferry to Amherst Island anda C$2m upgrade to the local VIA railstation. Investors can benefit fromaccess to funding in amounts fromC$5000 to more than C$1.5m,depending on the project. A new seedfunding programme is scheduled for2017, which will be available to com-panies with 10 or more employees tohelp with expansion.
FREDERICTON,NEWBRUNSWICKMicroCitywinnerThe capital of New Brunswick, Fred-ericton has been named fDi Maga-zine’s winner for FDI Strategy in theMicro City category. Ignite Frederic-ton was established as part of theCanadian city’s Vision 2020 eco-nomic development strategy, andthe agency is responsible for the pro-motion of Fredericton and forattracting investment.
The agency focuses on the devel-opment of knowledge-based invest-ment, and its Innovation District ishome tomore than 60 R&D organisa-tions. It also contains the knowledgepark and the University of New Brun-swick, and investors are eligible forR&D credits of up to 15% – one ofmany financial incentives available.Others include a small businessinvestor tax credit (a 50% income taxcredit up to C$125,000 ($93,318) peryear) and the provincial New Brun-swick sales tax rebate of 15% on busi-ness inputs and purchases.
New Brunswick’s chamber ofcommerce runs a business immi-grant mentorship programme andthe Hive programme, an immigrantincubator programme, boostingefforts to lead the province in immi-gration. Ignite Fredericton has goodrelationships with local educationinstitutions, which have helped tocreate a workforce with the capa-bilities and experience that inves-tors need. ■
FDI Strategy
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fDiMAGAZINE INVITED PROMOTION AGENCIES IN THE AMERICAS TO TELL USABOUT THEIR FDI STRATEGIES. OUR JUDGES THEN NOMINATED CITIES ACROSSFIVE CLASSIFICATIONS THAT ARE GETTING IT RIGHT. CATHYMULLAN REPORTS
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REGIONSAMERICAN CITIES OF THE FUTURE
TOP 10 SMALL AMERICAN CITIES OF THE FUTURE 2017/18 –FDI STRATEGYRANK CITY STATE COUNTRY1 Kingston Ontario Canada2 Oshawa Ontario Canada3 Mobile Alabama US4 Santa Clarita California US5 Lafayette Louisiana US6 Spokane Washington US7 Lexington Kentucky US8 Frisco Texas US9 Richardson Texas US10 Richmond British Columbia Canada
TOP LARGE AMERICAN CITIES OF THE FUTURE 2017/18 –FDI STRATEGYRANK CITY STATE COUNTRY1 Cartagena Bolivar Colombia2 Ottawa Ontario Canada3 Orlando Florida US4 Cincinnati Ohio US5 Las Vegas Nevada US6 Nashville Tennessee US7 La Paz La Paz Bolivia
Note: List restricted due to shortage of suitable entries.
TOP 10 MID-SIZED AMERICAN CITIES OF THE FUTURE 2017/18 –FDI STRATEGYRANK CITY STATE COUNTRY1 Hamilton Ontario Canada2 Brampton Ontario Canada3 San Salvador El Salvador El Salvador4 Quebec Quebec Canada5 Joinville Santa Catarina Brazil6 London Ontario Canada7 Mississauga Ontario Canada8 Pereira Risaralda Colombia9 New Orleans Louisiana US10 Colorado Springs Colorado US
TOP 10 MAJOR AMERICAN CITIES OF THE FUTURE 2017/18 –FDI STRATEGYRANK CITY STATE COUNTRY1 Chicago Illinois US2 New York New York US3 Montreal Quebec Canada4 Los Angeles California US5 Miami Florida US6 Bogotá Cundinamarca Colombia7 Cali Valle del Cauca Colombia8 São Paulo São Paulo Brazil9 Medellín Antioquia Colombia10 San Antonio Texas US
TOP MICRO AMERICAN CITIES OF THE FUTURE 2017/18 –FDI STRATEGYRANK CITY STATE COUNTRY1 Fredericton New Brunswick Canada2 Plattsburgh New York US3 Guasave Sinaloa Mexico4 Wooster Ohio US5 Lins São Paulo Brazil6 Yuma Arizona US
Note: List restricted due to shortage of suitable entries.
At the summit: Chicago wins the Major Cities FDI Strategy award
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LISTOFDATAPOINTS
To create a shortlist for fDi’sAmerican Cities of theFuture2017/18, the fDi Intel-ligence division of TheFinancial Times collecteddata using the specialistonline tools fDiMarkets andfDiBenchmark. In total, 421locations were analysed forthe study.Datawas then col-lected for these 428 loca-tions under five categories:Economic Potential, Busi-ness Friendliness, HumanCapital and Lifestyle, CostEffectiveness andConnectiv-ity. Locations scored up to amaximum of 10 points for
each datapoint, which wereweighted by importance tothe FDI decision-makingprocess in order to compileboth the subcategory rank-ings as well as the overallAmerican Cities of theFuture2017/18 ranking.
In addition, surveyswere collectedunder a sixthcategory, FDI Strategy. Thiscategory is the only qualita-tive category, and does notfeed into the overall result.For this category therewere74 submissions. Locationssubmitted details abouttheir strategy forpromoting
FDI, which was then scoredby fDi’s judging panel.
Cities in the study werecategorised according topopulation. Those loca-tions with immediate citypopulations below 100,000were categorised as ‘Micro’locations, of which therewere 39. ‘Small’ locations(209 locations) had imme-diate city populations ofbetween 100,000 and350,000. ‘Mid-sized’ loca-tions (of which there were75 locations) had an imme-diate city population morethan 200,000 and a wider
Larger Urban Zone (LUZ) ofmore than 750,000 people,or an immediate city popu-lation of more than350,000 people. Therewere56 ‘Large’ locations, withimmediate city popula-tions of more than 500,000and an LUZ population ofmore than 1,000,000, or anLUZ of more than2,000,000. ‘Major’ loca-tions (49) had an immedi-ate city population ofmorethan 750,000 and an LUZof more than 2,000,000, oran LUZ of more than4,000,000 people. ■
METHODOLOGY
American Cities of the Future 2017/18
ECONOMICPOTENTIAL• Population• Average annual population growth (%,2011-2015)
• GDP (at purchasing power parity, $m)• GDP per capita (at purchasing powerparity)
• Average annual growth in GDP, 2011-2015
• Average annual forecasted GDP growth,2016-2020
• Inflation rate• Unemployment rate• Outward FDI, 2012-2016• Outward FDI per 100,000 people, 2012-2016
• Inward FDI, 2012-2016• Inward FDI per 100,000 people, 2012-2016
• FDI in research and development (R&D),and design, development and testing,2012-2016
• FDI in advancedmanufacturing, 2012-2016
• Number ofmegaprojects by capex (over$100m) including estimates, 2012-2016
• Number ofmegaprojects by capex (over$100m) per 100,000 people includingestimates, 2012-2016
• Number ofmegaprojects by jobs (over1000 jobs) including estimates, 2012-2016
• Number ofmegaprojects by jobs (over1000 jobs) per 100,000 peopleincluding estimates, 2012-2016
• Capital expenditure on R&D and design,development and testing projects, $,2012-2016
• Number of patents, 2006-2015• Number of patents per 100,000 people,2006-2015
HUMANCAPITALANDLIFESTYLE• Number of students• Number of higher education institutions• Number of higher education institutionsper 100,000 people
• Number of top 500 universities, 2015• Number of top 500 universities per100,000 people
• Number of business schools in GlobalMBA rankings, 2015
• Number of International Baccalaureateschools
• Number of International Baccalaureateschools per 100,000 people
• Labour force as percentage ofpopulation aged 15 and over
• Ability to attract and retain talent• Literacy rate, %• Tertiary enrollment rate, %• Third-level students as percentage ofpopulation
• Number of physicians per 1000 people• Life expectancy• Education expenditure as percentage ofof gross national income
• Social Progress Index 2016
COSTEFFECTIVENESS• Average annual salary for an unskilledworker, $
• Average annual salary for an semi-skilledworker, $
• Average annual salary for an skilledworker, $
• Annual rent for prime grade A officespace, $ per squaremetre
• Annual rent for prime grade A industrialspace, $ per squaremetre
• Petrol prices, $ per litre• Electricity, $ per kwH• 4*/5* hotel in city centre, $ per night• Cost of registering a property (absolutevalue using gross national income)
• Minimumwage, $ per hour• Cost of construction permits, % ofwarehouse value
• Cost of establishing a business (absolutevalue using gross national income)
• Cost of establishing an electricityconnection (absolute value using grossnational income)
• Total tax rate, % of profit• Corporation tax rate, %• Common indirect tax/VAT• Country purchasing power parity/exchange rate
CONNECTIVITY• Upload speed (kb/s)• Download speed (kb/s)• Number of airports within 80kmof city• Number of international destinationsserved
• Number of ports (medium-sized) within100km
• Number of ports (large) within 100km• Number of ports (very large) within100km
• Number of ports (medium-sized orlarger) within 100km
• Cargo volume through local port(tonnes)
• Container traffic through local port,20-foot equivalent unit
• Logistics Performance Index, 2016• Networked Readiness Index, 2016• Environmental Performance Index, 2016• Liner shipping connectivity index, 2015• Mobile phone subscribers per 100people, 2015
• Quality of overall infrastructure• Distance to nearest internationalairport, km
• Percentage increase in number ofmobile phone subscribers
BUSINESS FRIENDLINESS• Total number of companies withinadvancedmanufacturing sector, 2015
• Total number of companies withinhi-tech service sector, 2015
• Total number of companies within theknowledge-based sector, 2015
• Proportion of companies withinadvancedmanufacturing sector ,2015
• Proportion of companies within hi-techservice sector, 2015
• Proportion of companies within theknowledge-based sector, 2015
• Number of companies within advancedmanufacturing sector per 100,000people, 2015
• Number of companies within hi-techservice sector per 100,000 people,2015
• Number of companies within theknowledge-based sector per 100,000people, 2015
• Number of jobs created by all inwardFDI, 2012-2016
• Number of jobs created by all inward FDIper 100,000 people, 2012-2016
• Number of expansion/colocationprojects, 2012-2016
• Top 1000World Banks 2015• Corporation tax rate, %• Days taken to start a business• Firing costs• Ease of Doing Business Ranking 2015• Index of Economic Freedom2016• Corruption Perceptions Index 2015• Strength of Investor Protection Index• Credit rating (Standard & Poors)• FT Global 500 companies, 2015• Fragile States Index 2015• Country risk score
