LocationUSA 2015 - For the Corporate Investor

Welcoming Others — An American Tradition

Key Business Issues to Consider

Trends Driving FDI in the U.S.

U.S. Labor Satisfying Investors’ Needs

For the Corporate Investor

LocationUSA

2015

visit us at www.LocationUSA.com

MADE IN THE USA P E R F E C T E D IN M I S S I S S I P P I mississippi.org/industries

OPPORTUNITY IS ABUNDANT IN MISSISSIPPI

Raspet Flight Laboratory, Mississippi State University — Starkville, Mississippi

A growing list of global companies call Mississippi home. Centrally positioned in the country’s fastest growing region, Mississippi provides industries with a strong competitive advantage, including a highly productive workforce, a welcoming business climate and a strong network of research university partnerships. The state’s robust infrastructure and available site inventory make Mississippi a prime location for today’s companies searching for tomorrow’s business solutions.

Opportunities await. Find out more at mississippi.org/industries.

© Mississippi Development Authority 2015

MISSISSIPPI RANKS

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TOP 5 STATES FOR SHIPBUILDING U.S. Department of Transportation MARAD Report, 2013

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LocationUSA TABLE OF CONTENTS

SPONSOR PROFILES/ADS KENTUCKY

4

Letter from Vinai Thummalapally, Executive Director, SelectUSA, U.S. Department of Commerce

25 Kentucky Is at the Center of the Global Economy C4 Kentucky Cabinet for Economic Development

5

Trends Driving FDI in the United States The United States provides foreign investors with a climate where ideas flourish and an environment where businesses succeed.

www.ThinkKentucky.com

10

www.OpportunityLouisiana.com/CustomFit

Key Business Issues to Consider When Making an International Location Decision Although each international firm and each project is unique, there are certain location and quality-of-life criteria they all must evaluate.

13

Welcoming Others Remains an American Tradition Global investors looking to expand in the U.S. will find an unrivaled consumer market; excellent education system; skilled, productive workforce; and transparent regulatory environment among other advantages.

16

Targeting Foreign Direct Investment State and regional economic development organizations are developing a variety of strategies to market their best assets, build relationships, and improve their business climates to attract FDI.

19

U.S. Labor Satisfying Foreign Investors’ Needs Although the labor environment varies from state to state, foreign companies choosing a U.S. location are finding competitive wage rates, quality training resources, and workers eager to join their labor forces.

22 Reshoring: Making All the Right Moves There’s more involved in successfully reshoring a foreign operation back to the U.S. than simple cost comparisons.

30

State-Designated Investment Officials

LOUISIANA

7, 31 Louisiana Economic Development MISSISSIPPI

26 Mississippi’s Success Stories Are Global C2 Mississippi Development Authority www.Mississippi.org NEW MEXICO

29 It’s Time to Take a Closer Look at New Mexico 15 New Mexico Economic Development Partnership www.nmpartnership.com NORTH DAKOTA

27 North Dakota’s Economic Growth Leads the United States 11 North Dakota Department Of Commerce www.ndbusiness.com TEXAS

28 Greenspoint District Strategically Positioned and Globally Connected in North Houston 9 Greenspoint District www.Greenspoint.org

29 San Antonio — Opportunity As Big As Texas 17 San Antonio Economic Development Foundation www.sanantonioedf.com

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LocationUSA

The past few years have been exciting ones for investment in the United States. The U.S. economy is growing and companies are expanding: as of February 2015, there have been 60 straight months of job growth. For the second year in row, A.T. Kearney’s Foreign Direct Investment Confidence Index put the United States on top. In 2014, the United States garnered the highest net positive rating in the 16-year history of the Index.

At the SelectUSA 2015 Investment Summit, President Barack Obama hosted a sold-out crowd of more than 2,500 people from more than 70 international markets and nearly every U.S. state and territory. President Obama, joined by Secretary of Commerce Penny Pritzker and five other members of his Cabinet, made it clear that the United States is open for business and warmly welcomes foreign investors.

Investments are made company by company, location by location. As you consider where and

4 LocationUSA

FOR FREE SITE INFORMATION, CALL

how to make your investment, please consider us to be at your service. SelectUSA is the U.S. federal government program to facilitate business investment by assisting companies and U.S. economic development organizations.

Housed within the U.S. Department of Commerce, SelectUSA coordinates across the U.S. government to serve as a single point of contact for information and connections. We act as an ombudsman, assisting investors to navigate the federal government and address regulatory questions.

To learn how we can help you, please visit www.SelectUSA.gov. We congratulate Area Development for another successful annual edition of LocationUSA. This publication has been a valuable resource for the economic development community, and we look forward to continuing our work together.

Sincerely,

Vinai Thummalapally Executive Director SelectUSA U.S. Department of Commerce

800-735-2732, EXT. 225, OR VISIT US ONLINE AT www.areadevelopment.com

FDI in the United States by Industry Food

The United States provides foreign investors with a climate where ideas flourish and an environment where businesses succeed.

5% Other er ng manufacturing

Electrical equipment, 5% appliances and components Primary and fabricated m metals 6%

28% %

Computers and electronic products

5% Machinery 9% M T Transportation E Equipment

112% Chemicals

30%

TRENDS DRIVING FDI in the United States The United States is home to more foreign direct investment (FDI) than any other country in the world, with a total stock valued at $2.8 trillion as of 2013, approximately 18 percent of U.S. gross domestic product. FDI flows into the United States are robust, totaling nearly $231 billion in 2013, up from $170 billion in 2012, according the U.S. Bureau of Economic Analysis (BEA). American leadership in FDI reflects both strong fundamentals for business growth and an incredible diversity of opportunity across the 50 states and territories. The federal government, along with state and local governments nationwide, remains committed to welcoming and facilitating international investment.

In mid-2014, the consulting firm A.T. Kearney unveiled the most recent edition of its Foreign Direct Investment Confidence Index, which captured the sentiments of C-level executives and regional and business heads from major companies. For the second year in a row, the United States was ranked as the top destination for international investment, but the survey report goes even further, stating, “The message here is crystal clear: the United States is back in the minds of global business leaders as the prime destination for their investment. Never in the 16-year history of this index has a country had such a positive net position.�1 What is driving this renewed confidence? The reasons are many, including a resurging U.S. economy, a strong domestic consumer market and enhanced access to other markets, stability and transparency, innovation, advanced manufacturing, an educated workforce, and low-cost energy.

Contributed by SelectUSA

Economic growth: Prospects for the U.S. economy continue to improve: during the course of 2013 through 2014, real GDP grew at a 2.8 percent annual pace.2 As of the writing of this article, the most recent monthly report issued by the U.S. Bureau of Labor Statistics in March 2015 revealed that the private sector continues a healthy expansion with the longest streak on record for job growth. During the past 60 months, the private sector has added 12 million jobs. During the previous 12 months, 3.2 million jobs were created, amounting to the largest 12-month increase since 1998.3 Access to markets: One of the most important reasons that investors choose to establish or expand businesses in the United States is to serve the massive domestic market. With 320 million diverse consumers, companies of all sizes with all manner of products and services can find their market here.

The economic recovery is driving an increase in consumer confidence and purchasing, and there is scope for further growth.

For example, real personal consumption expenditures grew at an annual rate of 4.2 percent in the fourth quarter of 2014, and households are spending a lower portion of their incomes on debt servicing than they have in more than three decades.4 By the end of 2014, the Reuters/University of Michigan Index of Consumer Sentiment and the Conference Board Consumer Confidence Index were both at levels not seen since 2007.5 Beyond the U.S. market, companies that manufacture in the United States also enjoy enhanced access to export markets through 14 free-trade agreements covering 20 markets. In 2013, the U.S. subsidiaries of multinational companies accounted for one fifth of U.S. goods exports. Products manufactured in the United States remain competitive: U.S. exports

visit us at www.LocationUSA.com

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LocationUSA reached a record-breaking $2.34 trillion in 2014.6

FDI in the United States LARGEST COUNTRY SOURCES OF FDI IN THE UNITED STATES BY 2013 STOCK POSITION

promote state-of-the-art workforce development techniques. For example, the Department of Labor is offering up to $100 million in grants to publicprivate partnerships to develop and implement innovative, high-quality registered apprenticeship programs.11

Stability and transparency: On top RANK MARKET % OF TOTAL STOCK MILLION USD of the economic funda($2.76 Trillion) mentals, the United States is well recognized for its 1 United 19.55% 540,489 business-friendly environKingdom ment. It is consistently 2 Japan 12.45% 344,143 ranked as the only nation 3 Canada 10.15% 280,536 with a population of more 4 Germany 10.07% 278,283 than 100 million among Low-cost energy: the top-10 markets in the The energy story in the 5 France 8.65% 238,977 World Bank’s annual reUnited States has been 6 Switzerland 5.071% 140,142 port on the ease of doing dominating headlines for 7 Netherlands 4.97% 137,333 business.7 the past few years. The 8 Ireland 4.24% 117,090 United States is now leadIn an interview with 9 Spain 1.88% 52,085 ing the world in oil and SelectUSA in February, 10 Australia 1.87% 51,709 natural gas production, Warren Buffett highlighted the predictability of the experiencing a 40 percent 11 Sweden 1.76% 48,582 U.S. market as a key factor drop in oil prices during 12 Norway 1.48% 40,986 in his success during his 50 the second half of 2014.

13 Italy 1.39% 38,445 years as CEO of Berkshire The Obama Administra14 Belgium 1.24% 34,260 Hathaway: “We know tion has been pursuing an 15 Mexico 1.19% 32,878 we’ll be treated fairly un“all-of-the-above” energy der the law. We know that strategy with solid results: Source: Department of Commerce, Bureau of Economic Analysis although there is bound since 2008, solar energy — FDI Position by Ultimate Beneficial Owner, 2013 to be a certain amount of has increased tenfold government regulation, it’s and wind energy has not of a smothering effect increased threefold.12 whatsoever. We have an awful lot of people in this country, Top Country Sources/Industries not only in business, but in government and all walks of life, With these factors in place, it is no wonder that FDI from a who want business to succeed.” range of countries is robust. According to the latest numbers for the U.S. Bureau of Economic Analysis, the top five country Innovation: Buffett also pointed out that “a climate in sources of FDI into the United States are the United Kingdom which ideas flourish” is essential to business success. This is ($540 billion in total stock), Japan ($344 billion), Canada ($281 certainly true in the United States, which is a world leader in billion), Germany ($278 billion), and France ($239 billion). research and development (R&D) and intellectual property proCombined, these markets account for 60.87 percent of the stock value of FDI in the United States, slightly down from tection, providing a fertile environment for innovation. More 61.45 percent in 2012. than 31 percent of total world R&D expenditures take place in In 2013, there were eight countries where the rate of the United States.8 Companies can increase their global comgrowth of FDI into the United States was more than 20 percent petitiveness by partnering with top-flight research institutions — in some cases well above that threshold. China led the pack and employing cutting-edge manufacturing techniques.9 again as the fastest-growing source, with a compound annual growth rate (CAGR) from 2009–2013 of 41.54 percent. ComWorkforce: The American workforce is highly educated, panies from Hungary (36.61 percent), Luxembourg (34.56 perwith the most productive workers in the world.10 Across the cent), India (29.34 percent), Norway (29.11 percent), Malaysia country, state and local governments, community colleges, (24.11 percent), South Korea (21.72 percent), and Switzerland and universities are eager to work with businesses to develop (20.83 percent) are also increasingly exploring the U.S. market. job-training programs that fit employer needs. The U.S. deThis incoming investment has found a home in a wide variety partments of Commerce and Labor are also working hard to

6 LocationUSA

© 2015 Louisiana Economic Development

CUSTOM TRAINING FACILITY State-of-the-art workforce training facility through a partnership with Bossier Parish Community College PRO-BUSINESS CLIMATE Lowest business taxes for new manufacturing operations in the U.S., according to the Tax Foundation and KPMG LED FASTSTART® Customized workforce recruitment and hands-on simulation training in company operations STRATEGIC LOCATION Ideal location at The Port of Caddo-Bossier plus state investments in site infrastructure and equipment improvements ROBUST INCENTIVES Tailored incentive package to meet specific project needs

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Benteler Steel/Tube, a division of Benteler Group specializing in manufacturing and processing of seamless steel tubes, utilized Louisiana’s custom-fit solutions to establish its 675-job hot-rolling tube mill in the U.S. What can Louisiana do for your business? Find out at OpportunityLouisiana.com/CustomFit.

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LocationUSA of industries within the U.S. economy, including information and telecommunications, professional and financial services, mining, and agriculture. However, the manufacturing industry attracts the largest share by far: more than one third (37.23 percent) of total FDI inflow, according to BEA. Key manufacturing sectors for incoming investment in 2013 alone included chemicals and pharmaceuticals ($22.91 billion), transportation equipment ($5.46 billion), machinery ($5.17 billion), food ($4.35 billion), medical equipment/ supplies ($3.29 billion), and many others.

FDI in the United States FASTEST-GROWING SOURCES OF FDI IN THE UNITED STATES

BY COMPOUND ANNUAL GROWTH RATE (CAGR) 2009–2013 RANK

1

MARKET

2013 STOCK (Million USD)

China

8,023

41.54%

2

Hungary

202

36.61%

3

Luxembourg

23,823

34.56%

4

India

11,040

29.34%

5

Norway

40,986

29.11%

2

“Economic Report of the President,” February 2015. http://www.whitehouse. gov/sites/default/files/docs/cea_2015_ erp.pdf

3 Furman, Jason, the President’s Council of Economic Advisers, “The Employment Situation in February,” March 6, 2015. http://www.whitehouse.gov/ blog/2015/03/06/employment-situationfebruary 4

Furman, Jason, the President’s Council of Economic Advisers, “Second Estimate of GDP for the Fourth Quarter of 2014.” http://www.whitehouse.gov/ blog/2015/02/27/second-estimate-gdpfourth-quarter-2014

6

Malaysia

1,540

24.11%

7

Korea, Republic of

31,520

21.72%

“Economic Report of the President,” February 2015. http://www.whitehouse. gov/sites/default/files/docs/cea_2015_ erp.pdf

8

Switzerland

140,142

20.83%

6

9

Brazil

14,852

19.55%

10

Malta

2

18.92%

5

Office of the United States Trade Representative, “The President’s Trade Agenda.” https://ustr.gov/sites/default/ files/2015-Presidents-Trade-Agenda_2.pdf

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Source: Department of Commerce, Bureau of Economic Analysis — FDI by Ultimate Beneficiary Owner

A Bright Future The future is looking bright for the U.S. economy, and the U.S. government’s commitment to facilitating international investment has never been stronger. For example, President Barack Obama recently hosted the 2015 SelectUSA Investment Summit in the Washington, D.C., area on March 23–24. The event was packed with more than 2,600 participants, including investors from more than 70 international markets as well as economic development organizations (EDOs) from every corner of the United States. The President was joined by Secretary of Commerce Penny Pritzker and five other Cabinet officials, three U.S. governors, and a host of global business leaders who spoke about investment trends and opportunities in the United States.

Outside of the Summit, the SelectUSA team is working every day of the year to assist investors as well as U.S. state, regional, and local EDOs. Housed within the Department of Commerce, SelectUSA’s role is to promote and facilitate business investment in the United States by serving as a single point of contact at the federal level for investors. SelectUSA assists U.S. state and local EDOs to compete globally for investment by providing information, a platform for international marketing, and high-level advocacy. SelectUSA also helps investors find the information they need to make decisions; connect to the right people at the local level; navigate the federal regulatory system; and find solutions to issues related to the federal government. ••

8 LocationUSA

CAGR

Notes: 1 AT Kearney, Foreign Direct Investment (FDI) Confidence Index, June 2014. http:// www.atkearney.com/research-studies/ foreign-direct-investment-confidenceindex

World Bank Group, “Doing Business 2015: Going Beyond Efficiency,” October 2014. http://www.doingbusiness. org/reports/global-reports/doingbusiness-2015

8

Batelle, 2014 Global R&D Funding Forecast, December 2013. http://www. battelle.org/docs/tpp/2014_global_rd_funding_forecast.pdf?sfvrsn=4 9

Times Higher Education World Reputation Rankings 2014–2015, October 2014. http://www. timeshighereducation.co.uk/world-university-rankings/2014-15/world-ranking (Note: 15 of the top 20 universities in the world are U.S. institutions.)

10

The Conference Board Total Economy DatabaseTM, January 2014. http://www.conference-board. org/data/economydatabase/

11

More information on apprenticeships and federal grants can be found at http://www.dol.gov/ apprenticeship/grants.htm.

12

Furman, Jason, the President’s Council of Economic Advisers, “The Economy in 2014,” http://www. whitehouse.gov/blog/2014/12/16/economy-2014

Click on to the world’s foremost economic development Website — and CLICK TO THE WORLD

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Location, Location, Location

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Although each international firm and each project is unique, there are certain location and quality-of-life criteria they all must evaluate.

KEY BUSINESS ISSUES TO CONSIDER When Making an International Location Decision International companies looking to invest in the United States have several important issues to consider during the site selection process. These issues range from operational to financial to cultural. In addition, not all international companies view the United States the same way. As an example, a firm from Asia may prioritize location factors somewhat differently than a firm based in Europe. This is not to say that one is right or wrong.

They are simply different.

The critical factors impacting site selection decisions vary somewhat in importance from project to project, but all international companies should consider these factors when deciding where to expand or locate facilities. The following list summarizes the key business issues that a company should evaluate prior to making a location decision: Location: A company must start the site selection process by identifying the potential geographic areas that could be suitable for the project. There is no point in considering a location if the business cannot serve clients or customers from the prospective area.

Workforce: A business must be confident that there is an ample supply of prospective team members with the necessary education and skill sets. Just as important, a company must be comfortable in its ability to attract, retain, and afford the people required for its operations.

Real estate: A company must evaluate potential real estate options in the locations under consideration for the project in order to ensure its requirements can be met. In most

By Larry Gigerich, Managing Director, Ginovus

10 LocationUSA

cases, several adequate real estate options exist for a project, but this should be verified.

Tax structure: A complete picture of the local, regional, and state tax environment must be obtained in order to make certain that the business can operate profitably. In several areas of the country, states have made changes to their tax structures, and it is important to understand how these changes negatively or positively impact a company’s project.

Infrastructure: There must be an adequate infrastructure in place to meet the project’s current and future requirements.

Transportation, telecommunications, and electronic infrastructure, to name just a few, are critical infrastructure factors to evaluate during the site selection process.

Incentives: A business must have a thorough understanding of what forms of local, regional, and/or state economic development incentives are available to help the company lower its project costs. Incentives should never drive site selection decisions, but they are important to ensure the economic feasibility of the project.

Regulatory environment: A company must understand how local, regional, and state governmental regulations will impact its business and project. Critical issues such as building plan approvals, environmental permits, utility connection approvals, and waste disposal permits can have a significant financial and timing impact on a company’s project.

Cost of living: The cost of living in a potential geographic area must be evaluated. In this way, the company can make certain it recognizes the economic impact on its team members who would be working in the selected community.

Unionization rates: A business should review unionization rates prior to making a site selection decision for a new or

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LocationUSA expanded facility. Clearly, unionization rates and right-to-work laws impact some industries more than others, but they are a factor that should be considered by all businesses.

Air Service: A company should look closely at the proximity of a potential location to an airport that provides one- or two-stop connections to where the company’s headquarters is located. It is important for business leaders to be able to efficiently travel to where their facilities are located.

“

Relationships built between the company’s team members, EDOs, and government entities become critical.

Quality-of-Life Issues Many international companies are also very interested in qualityof-life issues when considering where to locate a new facility. For almost every project, international companies will relocate a handful of key personnel to the United States to launch a new operation. As a result, it is critical for the business to ensure that the location works well from not only a business perspective, but also for the relocating families. The list below summarizes the most important quality-of-life factors our firm has seen in its work with international companies:

Low crime: It is very important for people to feel safe where they live and work. Anything that suggests an increased risk of safety will adversely impact how a community is viewed in the site selection process.

Quality of higher educational institutions: Businesses are all interested in the quality of higher educational institutions in proximity to an operation. These institutions not only impact future human capital, but can also help deliver training, certifications, and credentials to the company’s workforce.

Quality of K-12 public schools: Companies are also very interested in the quality of K-12 education. This is for some of the same reasons mentioned above, but also because it impacts families relocating to the area. For internationally based companies, the presence of international and/or foreign language schools is viewed very favorably.

Access to and quality of healthcare facilities: Excellent healthcare facilities in an area are critical for the employees of the company in the event of a workplace injury.

In addition, the families of employees also view access to excellent healthcare as an important community amenity.

12 LocationUSA

Cost and availability of housing: Relocating families of an international company need to have ample housing choices in various price ranges.

Weather: International businesses consider weather as a qualityof-life factor when deciding where to locate facilities. The weather impacts families living in the area and business operations. Sometimes, families seek weather similar to what they are used to, but for others, different and/or better weather is a draw.

Recreational amenities: Families of employees of international companies are usually very interested in recreational amenities in an area where a facility could be located. The desire of families to spend time at lakes, in the mountains, and on biking trails is important to deciding where to live and work.

Cultural and sports amenities: International companies’ employees are very interested in cultural and sports amenities in a geographic area. Cultural amenities tied to their native country and new experiences are of interest to families.

In addition, opportunities to participate in and watch sports are also a consideration for companies and their employees.

Commute times: Depending on where employees and families are coming from around the world, their experience with commute times may vary greatly. They may take a train, subway, car, bus, ferry or some other form of transportation in their native country. Locations that offer alternative modes of transportation are viewed more favorably.

Access to parks and public green space: Parks and public green space are viewed favorably by international companies. In particular, European-based companies’ employees are used to abundant parks and green space to enjoy with their families.

While additional factors may impact a company’s final decision regarding the location of a new facility, the aforementioned issues are usually on the list. These factors can be used quite effectively to eliminate potential locations from consideration. Once a business narrows its options to a few potential locations, the relationships built between the company’s team members, economic development organizations, and government entities become critical in selecting a location and successfully completing the project. ••

courtesy L’Oreal

Global investors looking to expand in the U.S. will find an unrivaled consumer market; excellent education system; skilled, productive workforce; and transparent regulatory environment among other advantages.

L’Oreal’s facility in North Little Rock, Arkansas

WELCOMING OTHERS Remains an American Tradition From her inception, America has always welcomed the best and brightest to her shores, and we now have the world’s largest economy to show for it. Similarly, foreign direct investment (FDI) is an essential driver of our economic growth, and now more than ever, the United States is pursuing policies intended to keep America competitive globally.

There is unprecedented recognition that FDI benefits America’s economy and local communities. Further, policymakers continue to pursue two key trade agreements that will facilitate more FDI in the United States. All of this is good news for global investors looking to expand in the United States.

Companies of all sizes depend on the interconnected nature of supply chains and the constant drive toward innovation that globalization inspires. This interchange of worldviews, products, ideas, and culture provides unprecedented opportunity for workers around the globe. It has the power to improve working conditions, promote peace in places best known for brutality, and accelerate a higher quality of life for people around the world.

History demonstrates the benefits that open societies provide, and there is no doubt that millions of Americans have prospered thanks to global investment. Yet, few fully appreciate the incredible contributions foreign companies have made to the U.S. economy.

Insourcing Companies Have an Outsized Impact on the U.S. Economy Insourcing companies — foreign companies that have

By Nancy McLernon, President & CEO, Organization for International Investment (OFII)

chosen to invest in the United States — are critical in supporting America’s economic strength. They account for less than 1 percent of all U.S. businesses, but they produce an astounding 21 percent of America’s exports and employ 5 percent of its private-sector workforce.

In fact, insourcing companies have helped drive America’s economic comeback. Nearly 2.2 million manufacturing jobs — practically 20 percent of all jobs in that sector — are supported by insourcing companies. Those workers earn an average salary of $85,807, higher than the national average of $76,863 in the manufacturing sector.

Since 2008, global employers have grown their research and development in the United States by nearly 20 percent.

Last year, insourcing companies spent nearly $50 billion on R&D, with 68 percent coming from the manufacturing sector.

More than 170,000 jobs at insourcing companies are supported by R&D activities.

Acquisitions and mergers play an important role in America’s economy. Over the past two decades, 84 percent of insourcing companies entered the United States through mergers with and acquisitions of U.S. companies. When foreign companies acquire U.S. companies, they tend to raise their industries’ economic performance, invest heavily in research and development, buy materials locally, establish innovative workforce training programs, and increase compensation and benefits for hardworking Americans by paying them at a premium 22 percent above the U.S. private-sector average.

Insourcing Companies Benefit Local Communities Beyond providing high-quality jobs, insourcing companies invest in their local communities with spillover effects that

visit us at www.LocationUSA.com

13

spur economic development and support jobs in the area.

Their investments in infrastructure bring goods to market, and training programs prepare the next generation of high-skilled manufacturing workers. These investments also help attract other businesses to local communities.

Take for example the U.K.-based energy firm National Grid.

Close to where the Buffalo River flows into Lake Erie in upstate New York, the rust-covered remains of the Republic Steel plant stood as an eyesore for 30 years. Today, following a decadelong ecological and economical transformation helped by National Grid, this 90-acre brownfield site has been restored, and now RiverBend is ready for new tenants. Thanks to National Grid’s efforts, SolarCity — the largest solar panel manufacturer in the Western Hemisphere — is building a million-square-foot factory at RiverBend. This facility will be powered by National Grid and it will create 5,000 jobs in the region.

Another example is Daimler, a world leader in the automotive industry. It manufactures and sells top-quality vehicles around the globe under prestigious brands, including Mercedes-Benz, Freightliner, Western Star, and Thomas Built Buses.

With approximately 21,000 employees in its 49 U.S.-based facilities, the company certainly owes a large part of its continuous success to its strong presence in America.

Daimler’s Mercedes-Benz U.S. International Inc. has partnered with Shelton State Community College in Vance, Alabama, to offer a mechatronics program at the college. Through this program, students have the chance to learn the advanced manufacturing skills they need to compete for quality jobs.

The program includes seven terms of in-class instruction and an additional 18 months of training at Mercedes-Benz. Upon completion, students earn an Associate of Applied Science degree in Industrial Electronics. Mercedes-Benz provides assistance for tuition and fees for all terms at Shelton State Community College. Even more impressive, a minimum of 75 percent of each class is offered a permanent full-time position at the Daimler facility.

Now more than ever, Americans are interested in working for companies that not only do well in business, but also make a difference in their local communities. Employees want a balanced, creative workplace that offers a dynamic experience, approachable leadership, and reasonable work-life balance.

They also want to be part of something that matters. Those are values shared by the global leader in beauty, L’Oreal; its U.S. subsidiary is serious about bettering American communities.

L’Oreal USA operates an impressive operations network across the country, including manufacturing in Arkansas, Kentucky, New Jersey, and Washington State, and 15 distribution centers across the nation. During its annual Volunteer Day, more than 300 volunteers from its Franklin, N.J., plant spent the day helping to restore Camp Jotoni, a camp for children and adults with intellectual and developmental disabilities.

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L’Oreal employees in North Little Rock, Arkansas, are heavily involved in the Make-A-Wish Foundation, Youth Home, the American Lung Association, and disaster relief. Annually, these employees contribute more than 3,000 hours of volunteer service.

In 2013, L’Oreal created Sharing Beauty With All, a comprehensive sustainability program that addresses the company’s entire value chain. By 2025, the company will innovate so that 100 percent of its products have an environmental or social benefit, as well as reduce its environmental footprint by 60 percent. All strategic suppliers will participate in L’Oreal’s supplier sustainability program, and the company will also provide access to healthcare, social protection, and training to all employees, wherever they are in the world.

Trade Agreements Mean More Jobs A great way to spur further foreign investment is by encouraging trade. Almost everyone cites the benefits from increased exports derived from trade agreements, but the untold strength that trade agreements provide is their ability to attract more global investment. Simply put, globally based employers are most successful when they can seamlessly move products, information, and resources across borders. Therefore, the more trade agreements a country has in place, the greater its competitive advantage in attracting foreign investment.

When the United States reaches an agreement on a robust Transatlantic Trade and Investment Partnership (TTIP) and TransPacific Partnership (TPP) with European and Asian countries, respectively, it will not only remove economic barriers, it will make America more desirable to large employers from other countries.

Although tariffs between the United States and partner countries are low on many products, TPP and TTIP could eliminate remaining tariffs. Further, these trade agreements will eliminate many of the regulatory challenges companies face when operating in more than one country.

It is easy for conversations about multilateral trade agreements to entail spreadsheets, graphs, and the dry oratory usually reserved for university lectures. At their essence, however, the value of trade agreements can be measured in much more than the bottom-line financial result for companies and countries. In the case of new medications, for example, trade can be measured in time — such as the time it takes to get new life-saving medications to patients around the world.

Harmonizing regulations in product safety, transport, and other areas will provide durability and predictability to insourcing companies’ operations. Research has shown that even modest reductions in these barriers can trigger significant cost savings and efficiency gains in complex global supply networks.

Indications from both Congress and the Administration have been increasingly positive that these deals can be realized

LocationUSA in the near term.

Insourcing companies also boost domestic exports by shipping finished goods from their U.S. facilities back to their parent companies. Sometimes they use the United States as part of their global supply chain, allowing them to sell to customers around the world. These exports increase demand for raw materials and other inputs, providing another positive lift to the U.S. economy. Foreign companies in the United States typically account for about one fifth of total U.S. merchandise exports. Successfully negotiated TPP and TTIP agreements offer the United States a chance to recapture its share of FDI and become an even bigger export platform.

America Remains a Great Place to Invest U.S. policymakers continue to improve the climate for foreign employers looking to expand in America, and the Organization for International Investment (OFII) remains committed to ensuring that foreign companies who choose to invest here are treated fairly.

For the second year in a row, A.T. Kearney’s FDI Confidence Index ranked the United States as the world’s top market in 2014. A 2014 survey of OFII’s CFOs showed more than two

thirds of these insourcing companies planned to increase investment in the U.S. in the next 12 months. It is not surprising then that more FDI dollars flowed to the United States last year than to any other single country in the world. International investment in the U.S. market topped other large markets, including China, Russia, Hong Kong, and Brazil. A survey released in January by PwC showed that the U.S. beat out China as the top investment destination, a first in the survey’s five-year history.

There are any number of reasons why foreign investors prefer the American economy. First, and perhaps most important, the United States has one of the most open markets and investment climates in the world. Other advantages attracting foreign companies include an unrivaled consumer market, an excellent education system, a skilled and productive workforce, an entrepreneurial culture of innovation and risk-taking, a transparent regulatory environment, and the largest venture capital and private equity market in the world. All of this is good news for global investors looking to expand in the United States.

Welcoming those from other countries to our shores — as symbolized by the Statue of Liberty — is an American tradition, and when insourcing companies invest in the United States, American workers prosper and local communities thrive. ••

It’s time to take a closer look at New Mexico.

New Mexico has improved its business climate more than any state in the West over the past four years. A study by Ernst & Young and the New Mexico Tax Research Institute determined that we’ve reduced tax rates for manufacturing by nearly 60%—the greatest drop, by far, in the western states studied. New Mexico’s aftercredit manufacturing rate is now at 3.3%—the best in the region.

Additionally, the nonpartisan Tax Foundation recognized New Mexico’s successful bipartisan approach between Governor Susana Martinez and the state legislature with its prestigious award for “Outstanding Achievement in State Tax Reform.”

These recent, significant improvements to the state’s business climate are only part of the reason why it’s time to take a closer look at New Mexico. To find out more about the increasing business advantages here, contact the New Mexico Partnership.

New Mexico. The smart move.

888 715 5293 | nmpartnership.com

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State and regional economic development organizations are developing a variety of strategies to market their best assets, build relationships, and improve their business climates to attract FDI.

TARGETING FOREIGN Direct Investment The United States is the largest recipient of foreign direct investment (FDI) in the world. FDI is a critical driver of economic growth and job creation and an increasingly attractive target for economic development agencies. Along with jobs and investment, foreign companies bring new products and technologies, organizational processes, and management talent. In 2013 alone, international firms invested $236 billion in the U.S. economy, a 35 percent increase from 2012, according to the Bureau of Economic Analysis. FDI is projected to continue gaining steam in 2015.

Traditional foreign investors include companies from the United Kingdom, Japan, Canada, Australia, South Korea, and European countries. Expert observers predict increasing growth in investment from China as manufacturing costs rise and Chinese companies look to add a “Made in America” label to their products. Still, China has a long way to go to catch up to more traditional sources of FDI. Today investment by China and emerging economies is still just a fraction of total FDI. Together, Brazil, Russia, India, China, and South Africa totaled just 1.5 percent of all foreign investment in 2013.

All sectors of the economy offer significant business opportunities for foreign companies, with manufacturing receiving the greatest share. Exceeding $900 billion in 2013, manufacturing accounted for one third of cumulative FDI per the Bureau of Economic Analysis. Within the manufacturing sector, the chemicals segment attracts the greatest investment as companies look to the U.S for top talent, research institutions,

By Tom Stringer, Principal, Ryan

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and strong intellectual property protections. After manufacturing, finance and insurance is the most attractive sector for foreign investors attracted to large, liquid financial markets.

Foreign companies, on a cumulative basis, have invested heavily in the U.S. finance and insurance industries, reaching $365 billion by year-end 2013. The finance and insurance sector is the fastest-growing area for FDI. The U.S. economy’s primary location advantages are its open markets and investment climate, the strongest in the world. Other advantages include vast consumer markets, world-renowned universities and research institutions, a skilled and productive workforce, entrepreneurial culture, and transparent regulatory environment. Once a company makes the decision to invest in the U.S., the location search progresses much like any other site selection project. International companies must identify the most important location factors for their particular businesses, and industries must analyze the differences in land prices, utility rates, tax rates, workforce, and business incentives among different U.S. locations.

How States Attract FDI State-level economic development agencies pursue a variety of strategies to attract FDI, including targeted marketing and business development campaigns, generous business incentives, and old-fashioned relationship-building through trade missions, operation of permanent offices abroad, and intense networking through their existing international business communities. Following are some examples: • South Carolina South Carolina aggressively pursues foreign investment,

LocationUSA and has successfully recruited many companies from overseas.

The state has permanent foreign offices in Shanghai, Tokyo, and Munich, and representatives from the Governor’s office regularly meet with Asian and European investors.

In 2012, South Carolina presented Michelin with an incentives package that persuaded the European tire company to both expand an existing tire plant in Greenville, and create a new facility in Starr. Michelin anticipated the creation of 500 new jobs and a $750 million investment in the area. The incentives package included $7.5 million from the South Carolina Department of Commerce, with an additional $325,000 from other state and local agencies. The state incentives were offered in part to offset costs of site preparation, such as clearing work and soil removal.

The Palmetto State has also welcomed several Chinese companies, which are drawn to the area for its lower costs for land purchases and utilities. In 2007, the state signed a Memorandum of Understanding with the Chinese government

that named South Carolina as a preferred location for Chinese businesses to establish an American presence.

• Florida Florida attracts international business through its seven state trade offices, and 15 international offices in 13 countries.

The state also attends and exhibits at niche events, such as MEDICA and Arab Health.

Embraer, a Brazilian aerospace company, recently expanded its Florida facilities. The Brazilian manufacturer opened its first overseas facility in Florida’s Space Coast in 2008. The company opened a new manufacturing facility at the Melbourne International Airport in October 2014.

The new center is expected to bring 600 new jobs to the area. Additionally, Embraer anticipates a $15 million capital investment. Florida expanded its partnership with Embraer to win the bid by offering a generous incentives package, potentially worth between $45 million and $50 million, in

OPPORTUNITY AS BIG AS TEXAS. Recognized by CNN Money as one of America’s fastest growing cities, San Antonio offers a central U.S. location, diverse culture, close proximity to Mexico, low business costs, and a skilled workforce. All this attracts investment from more than 30 countries around the world.

In San Antonio, you’ll find a supportive business community and a local government that create an inviting culture of business – one that values growth and eagerly assists new international businesses in succeeding here.

Call or go online to discover opportunity as big as TEXAS.

866.949.0357 | www.sanantonioedf.com © 2 0 1 5 S A N A N T O N I O E C O N O M I C D E V E LO P M E N T F O U N DAT I O N

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LocationUSA FDI in the U.S. Top-10 Investor Countries, 2013

addition to financial support from city and county agencies.

• Tennessee According to the • UNITED KINGDOM, “Global Trends Report” $41.9 billion from the IBM Institute for Business Value • LUXEMBOURG, $26.1 billion released in November 2014, Tennessee was • CANADA, ranked the number-one $23.3 billion state for FDI job com• SWITZERLAND, mitments in 2013. The $17.0 billion state’s top-10 countries • IRELAND, for FDI include Japan, $15.4 billion Germany, Canada, the • NETHERLANDS, United Kingdom, South $12.8 billion Korea, France, Italy, • GERMANY, Switzerland, Sweden, $11.9 billion and Belgium. Tennessee touts its infrastructure • NORWAY, $9.3 billion and logistics base as a strong selling point for • UK ISLANDS, overseas companies.

CARIBBEAN, Tennessee operates $8.8 billion offices in Japan and Source: Canada to promote the Bureau of Economic Analysis state and build relation(OFII 2014 Report) ships.

South Korean tire manufacturer Hankook Tire broke ground on its first U.S. manufacturing plant in 2014 in Clarksville, Tennessee. Hankook expected to create 1,850 new jobs over five years and invest $800 million in the region.

Hankook considered five other states, but was impressed with the Tennessee location’s extensive and convenient transportation system that includes rail, plane, highway, and waterway access. Hankook received an incentives package totaling up to $120 million. The state government presented $72 million in incentives, while the remainder was provided by the city and county. The state’s incentives package included funds for a training facility, employee training, and the development of a Korean cultural center in the Clarksville area.

• JAPAN, $44.9 billion

• California As the world’s ninth-largest global economy, California is a magnet for foreign investment. Despite higher business costs and a lack of strong discretionary incentives programs, California offers numerous advantages for foreign investors.

International business leaders seek California locations for their

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large consumer markets, workforce, financial and technology resources, ports, and Pacific location. According to GO-Biz, the state’s economic development agency, California is the most popular U.S. location for international companies and attracts more foreign direct investment than any other state.

Top investing countries are Japan, the United Kingdom, China, and the Netherlands. Foreign affiliate employment accounts for over 700,000 jobs in California.

• Ohio The automotive industry is the top segment for FDI employment in Ohio, where Honda employs 14,000 workers. The largest numbers of jobs created by foreign companies come from Japan, followed by Germany, the United Kingdom, Canada, France, and Switzerland. JobsOhio focuses its recruiting efforts on automotive, aerospace, and advanced materials, playing to the state’s historic strengths in manufacturing, as well as its strategic location within a one-day drive of 60 percent of the U.S. and Canadian populations.

• Virginia Virginia touts the state’s founding over 500 years ago as the very first example of FDI on the continent. According to the Virginia Economic Development Partnership, “The Commonwealth of Virginia was founded as a global business venture in 1607 when English colonists landed in Jamestown, Virginia — the first permanent English settlement in North America.”

Today there are more than 700 internationally owned companies located in Virginia, including Canon and Rolls-Royce.

Virginia’s top five sources of FDI are Germany, France, the UK, Japan, and Canada, while the Commonwealth is making a strong play for Chinese investment. Last year, Shandong Tranlin Paper Co., Ltd., a Chinese pulp and paper manufacturer, announced plans to invest $2 billion and create 2,000 jobs over five years to establish its first U.S. advanced manufacturing operation in Chesterfield County. The investment represents the largest Chinese greenfield project in the United States. The Governor’s Opportunity Fund will provide a $5 million grant to assist Chesterfield County with the project. The company may be eligible to receive a Major Employment and Investment performance grant, subject to approval by the state’s General Assembly.

Along with traditional hard assets like deepwater ports and interstate highway access, economic development officials credit investments in building and maintaining relationships as a major factor in attracting Chinese investment. Virginia has operated an office in China for more than 16 years, and Tranlin’s initial interest was the result of its chairman Jerry Peng’s personal ties to Virginia as an alumnus of the Darden School of Business at the University of Virginia. ••

Courtesy Kentucky Cabinet for Economic Development

Although the labor environment varies from state to state, foreign companies choosing a U.S. location are finding competitive wage rates, quality training resources, and workers eager to join their labor forces.

Germany-based Dr. Schneider Automotive Systems cut the ribbon on its $29 million, 155-employee parts manufacturing operation in Russell Springs, Kentucky, in April 2014.

U.S. LABOR Satisfying Foreign Investors’ Needs When many U.S. manufacturing jobs drifted to overseas sites during the past few decades, labor was an often-cited motivation. For a lot of companies, manufacturing elsewhere made financial sense at the time, thanks in large part to lower labor costs in those non-U.S. locations.

The tune is not exactly the same when non-U.S. companies seek American locations. Labor factors are not typically the primary drivers of foreign direct investment in the United States, admits Robert Hess, executive managing director of consulting with Newmark Grubb Knight Frank Global Corporate Services.

“They’re coming for market access. They’re coming here because they have to come here.”

“Companies are coming here because their market is substantially here,” agrees W. Lee Thuston, managing partner with Burr Forman and a veteran of foreign direct investment deals in the southeastern part of the United States. “It’s the primary driving force.”

“They see opportunities here in the States,” adds Dr. David Lewin, managing director and head of the Labor and Employment practice at Berkeley Research Group. “Otherwise it might not make sense to do foreign direct investment.”

Labor Due Diligence That said, even though the cost of labor might have been enough of a concern to shift jobs away from the U.S. in past years, labor issues need not be a barrier to success for in-

By Steve Stackhouse

ternational companies planning American operations. There are, in fact, labor advantages that go hand-in-hand with U.S. locations. But it’s critical that global companies really do their homework as they search for sites. The U.S. labor situation can be vastly different from what’s the norm in other countries, and some traditional ways of thinking aren’t always the most suitable options anymore.

For example, in the past, it has often made sense for companies to seek locations in the proximity of other companies with similar operations. Seeking clusters of likeminded employers certainly seems like a reasonable approach from a labor perspective, because such locations already are home to many qualified workers, but the “herding effect” can be dangerous.

Why? These days there can be too much competition.

“People in the U.S. have choices again,” Hess says. Job growth continues to recover following the Great Recession, which means job-seekers have increasing options and they’re more willing to look around for better situations. According to the U.S. Bureau of Labor Statistics, the unemployment rate in February was down to 5.5 percent nationally, more than a full percentage point below what it was a year earlier. Sector clusters have many advantages, but as the employment situation improves, the competition for labor can be increasingly troublesome.

“Companies need to do their due diligence,” Hess explains.

Careful examination has led many global players toward lesserknown points on the map — places where labor options are good but competition for workers not quite as fierce. “Tier 2 and Tier 3 cities have received some pretty decent foreign direct investment from some pretty significant companies,” he points out.

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LocationUSA Obviously, finding a “best-kept secret” kind of location isn’t the best option for everyone. Still, with careful research and a firm understanding of U.S. labor markets, regulations, and training opportunities, finding an adequate supply of skilled labor is eminently doable.

“Virtually all of the companies we’ve worked with here have not had trouble getting fresh labor as long as they can train them,” says Marcel Debruge, partner with Burr Forman.

“

Global players quickly find out that organized labor in the United States is quite a different thing than can be found elsewhere.

Unionization and Right-to-Work Laws That understanding begins with the acknowledgment that the United States is a collection of 50 states, with widely varying characteristics and regulatory environments. That’s not a bad thing, of course, because global site selectors have just as widely varying requirements. Consider the subject of unionization. “Some want to have an open shop, some like to have unions, and some are neutral and have to bring that neutrality here,” Thuston says.

Global players quickly find out that organized labor in the United States is quite a different thing than can be found elsewhere. As Lewin points out, such concepts as work councils and co-determination are a way of life in many European locations, but “we don’t have co-determination and we don’t have work councils.”

In fact, he points out, the U.S. doesn’t have nearly as many unionized workers as it used to. “If you’re coming into the U.S., you’re coming into a country with one of the lowest private-sector unionization rates in the world,” he says. As of 2014, the private-sector unionization rate was 6.6 percent, according to the U.S. Bureau of Labor Statistics, and the overall rate including both public- and private-sector employment was 11.1 percent.

That’s a far cry lower than it was as recently as the 1980s, when the waves of international auto manufacturing operations were beginning to hit American shores. “When they first started coming to the U.S., the unionization rate was on the order of 25 percent, and in the auto industry it was considerably higher,” Lewin says. “Now almost 94 percent of the private-sector workforce is nonunion.”

For companies that would prefer to avoid unionization, that would seem to simplify matters; but, in a way, says Lewin, it makes it all the more important to really pay attention to labor laws and regulations, which apply whether or not a union is in the picture. There are federal laws that are in force universally across U.S. sites, but there are also 50 sets of state laws governing selection, hiring, promotion, and a host of other labor topics, he observes. “There are a lot of specific things that you shouldn’t do

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and some specific things that you should do,” he says.

Among the differences between states is the concept of “right-to-work.” In many states, unions and employers may require all workers at a unionized facility to help pay for the collective bargaining and representation services provided by the union — union members and nonunion members alike. The rationale is that all workers, even those who have chosen not to join the union, benefit from the presence of the union.

About half the states, however, have enacted “rightto-work” laws that prohibit compulsory fees for nonunion members. In general, the “right-to-work” concept is most prevalent in the South, but as Debruge points out, “Wisconsin has recently become right-to-work, and Indiana and Michigan have become right-to-work.”

“Right-to-work” laws tend to drive down unionization rates, which may in turn lead to lower wage rates. Be that as it may, cheaper labor isn’t everything, he says. “What companies are looking for is not necessarily the lowest labor cost, but dependability and the capability of delivering quality.”

Lewin adds that while many companies — including many of the non-U.S. automakers that have sought U.S. sites in recent years — instinctively seek to avoid unionization, others feel less threatened by organized labor. “You can run a unionized operation and do very well in business.

In some industries the highest-performing companies are highly unionized.”

Training Resources The ability of workers to deliver quality has a lot to do with training. Resources supporting training can vary significantly from one U.S. site to another. Community colleges have opportunities that range from scheduled coursework to customized programs tailor-made for individual companies. “I think a lot of foreign companies don’t realize how these [programs] can supply them with competitive advantages,” says Hess, who adds that there’s “great diversity in the quality from one place to another.”

Many global companies will bring seasoned staff to new U.S. sites to lead training efforts, at least at the beginning.

Such efforts may be combined with community college resources and training-focused incentives from state governments. Thuston points out that site selectors must determine how much money states are going to give companies for training. “You’ve got to have the money and capability to do a

massive amount of training,” he explains.

That piece of the labor puzzle is big, and it has the attention of site selection consultants and economic development agencies across the U.S., according to Thuston. “The numberone issue is workforce development,” he says. “You’re got to have a basic level of understanding to train to make cars or aircraft or whatever you’re making.”

Even after a site is chosen, global players would be wise to choose human-resources leaders who are completely familiar with hiring and operating in U.S. locations, Thuston says.

Upper management in a U.S. outpost may move in from the home country, along with many of those involved in finance and the initial rounds of training. But as for HR, he says, “You have to hire experienced Americans who understand training and benefits and work performance.” Debruge concurs: “They need to find the right local management that’s going to be able to select and hire.”

Competitive Wage Rates Overall, non-U.S. companies are finding their way to U.S. sites in increasing numbers. The World Investment Report 2014 from the United Nations Conference on Trade and Development found that foreign direct investment in 2013 was up 10 percent globally over the year before, but was 17 percent higher in the United States. Foreign companies made $188 billion in U.S. investments in 2013. Among greenfield investments, the biggest U.S. recipients were California and Texas, according to the report.

Lewin points out that the international companies making these investments are finding wage rates are more competitive now than they have been in recent years. Those better labor deals that U.S. companies found elsewhere in the past are, in many cases, no longer what they used to be. “In 1960, my recollection is that Japanese manufacturing wages in relation to the U.S. were about 10 cents on the dollar,” he says. These days the rates are practically neck-and-neck, according to the Bureau of Labor Statistics. Manufacturing wages in Mexico remain lower, but the gap is narrowing, Lewin says.

Meanwhile, manufacturing wages are higher across much of Europe than they are in the United States, according to the Bureau of Labor Statistics, and the difference has increased in a number of locations. It would seem that those labor-cost arguments that in the past were part of the equation for moving jobs away from America are diminishing, and in some cases vanishing entirely.

Debruge adds that the international companies choosing U.S. locations are finding eager workers ready to join their labor force. “I’m in these plants all the time, and people are glad to have these jobs,” he says. “People want to learn, and they want to be part of a company that’s successful. There’s a lot of enthusiasm.” ••

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AVOIDING THE What the 54% of companies with over $1 billion in revenues that are PITFALLS OF considering reshoring* should do: RESHORING

There’s more involved in successfully reshoring a foreign operation back to the U.S. than simple cost comparisons.

Establish a project charter and work collaboratively across all function areas

Complete innovation and automation work

Develop an exit strategy for the foreign location

Plan for U.S. building configuration to accommodate installation of new equipment

Ensure access to skilled labor, as well as proximity to suppliers and markets at new U.S. location

RESHORING: Making All the Right Moves Reshoring is a hot topic in manufacturing. Many companies are already doing it, and according to a recent BCG study, 54 percent of companies with over $1 billion in revenues are now considering it.

Walmart has pledged to spend $250 billion over the next 10 years for U.S.-made goods to be sold in their stores, and this will drive even more companies to reshore. It’s good for America. It’s good for our future. But it’s a road full of potholes.

What the news articles and interviews rarely describe are the failures — the projects that went sour and the teams that failed. Reshoring is not a simple task of comparing costs in the U.S. versus some foreign location. Reshoring may also require a significant investment in the renewal and updating of aging factories in America. These “Bring Manufacturing Back” initiatives have many moving parts and require careful planning and execution and very skillful project management.

production lines, and developing products that will sell in local markets. So where should a company begin?

As professional consultants, we always recommend that the reshoring leader start with a project charter. This will give the reshoring team an opportunity to think through and write about the goals for the project, get a clear picture of the tasks ahead, and identify the pathway it will take to execute the work.

The charter should include considerations of the various stakeholder groups including finance, engineering, manufacturing, purchasing, marketing, facilities, IT, human resources, and government affairs. All of these functions will play a role in the project. The reshoring projects that have faltered have done so when some of the stakeholders were left out of the decision-making process, leaving blind spots in the plan. The reshoring team should be inclusive, not exclusive.

A Project Charter Those reshoring projects that have already failed have taken on more than they were prepared for, have neglected to include all of the people and internal departments affected by the decision, or were poorly planned and executed. Choosing the right U.S. location and the best facility for manufacturing are key components to the overall success of the program.

This is not a decision for the facilities engineers and managers alone. It will take a team to get it right because the successful reshoring decision involves rethinking products, re-engineering

Innovation and Automation Before a company selects a location for a new production facility, the initial innovation and automation work should be completed. This work will identify what new and innovative products will be produced in the new facility and how that production will be automated. Consideration for the new machinery required and the production floor layout will be essential information for facility selection and planning. Even though further work on product design and final recommendations on production machinery may come later, the basic requirements should be known after the initial steps are complete.

New types of machinery such as 5-axis milling, robots, and 3D printers require new thinking about production floor layouts. New machinery may require different spacing and access

By Rosemary Coates, President, Blue Silk Consulting; and Executive Director, The Reshoring Institute

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LocationUSA and dust-free areas for electronics. The reshoring team should work closely with facilities engineering to identify and plan for these special requirements.

costs. In this way, costs can be kept competitive with overseas factories. This automation will require investment in machinery and different line configurations. The new, automated factory may demand a different style of building from the current foreign location and careful planning and engineering before the move plans are announced.

Leaving China Leaving manufacturing sites in China or other foreign locations has its own set of considerations, such as ending foreign employment contracts, paying exit taxes, and obtaining government approvals to leave. In addition, it may be difficult to retrieve your molds and dies from a foreign factory that thinks it is entitled to keep them.

The overall exit and the logistics process in moving a factory must be carefully managed. The advice and experience of an expert or an international law firm may be crucial to a smooth and efficient exit process. Failure to consider all aspects of exiting from a foreign country can cause delays and unexpected costs. Failure to comply with all of the foreign exit requirements may ban a company from ever returning.

Most of the reshoring information available to U.S. companies focuses on cost comparisons and does not consider other aspects of extracting your manufacturing from a foreign country.

Be sure the reshoring team has considered all components of the move and timing before preparing a schedule for things to happen in the U.S.

An Example Consider Otis Elevator. Otis attempted a reshoring project, bringing production from Mexico to South Carolina. But Otis’ efforts did not go well. “I think we failed on both the planning and the execution side,” Robert McDonough, CEO of the United Technologies unit that includes Otis, told analysts in March 2014, according to The Wall Street Journal. The reshoring project cost Otis $60 million in 2013 and that figure continues to climb.

So what went wrong? Otis representatives say the company failed to consider the consequences of the new location and tried to do too much at once, including a supply chain software implementation. After they built their new plant they found that the U.S. location they had chosen didn’t have the skilled workers that they needed. They couldn’t staff the production line as expected. The SAP implementation took longer than planned and a realignment of products became a complication.

From and To Next, companies need to plan for what will happen when equipment arrives at the new U.S. factory location. Transferring a manufacturing line from one location back to the U.S. is a simple idea…but that is not what is happening in a reshoring project. It is not a straightforward process of packing everything up, moving to a new location, and setting up the exact same operation. Reshoring requires innovation, automation, and localization of products. It is not going to be a one-for-one direct transfer. The building configuration and requirements are likely to be drastically different, and so are the products to be manufactured and the markets served.

Extensive automation of the production lines is usually required to extract as much labor as possible from production

Finding Skilled Workers / Accessing Markets & Suppliers Your company may have identified a favorable and lowcost U.S. production area, where governments have offered attractive incentives, real estate costs are low, and communities are anxious to bring in new businesses. However, failure to account for the existing skills of workers in the geographic area may be a major disaster to your reshoring efforts.

As in the case of Otis Elevator, the skills required to support a specific production line may not be available in a small town or the outlying community, even though unemployment rates are high and there are many general applicants to choose from. A company’s human resources department needs to be closely involved with the reshoring effort and site selection to

“

Reshoring requires innovation, automation, and localization of products.

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LocationUSA

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validate a skillful existing workforce or some way of attracting new workers to the area. Another possibility is to partner with local community colleges for training programs that can train workers in the right skills for the jobs available. But this will take time, perhaps years, to accomplish.

The company’s supply base is another important consideration.

Locating in a low-cost area may appear to be the right decision, until the supply base is taken into consideration. Reshoring managers should work closely with purchasing to determine where suppliers are located, especially those suppliers producing long-lead-time items and strategic parts. The ability to closely manage these suppliers will be very important to keeping production on schedule. Of course, you must also consider where your customers are located. You want to be as close as possible to your markets to optimize logistics costs.

Avoiding Failure You can avoid mistakes and successfully reshore some or all of your production by following some simple rules: • Work in a collaborative team across all functional areas, and listen to the concerns of and input from your colleagues.

• Remember to account for the effort, costs, and time to leave your foreign location.

• Fully consider all aspects of the new location, including building configuration to accommodate new machinery and production layout.

• Consider the skills available for manufacturing in a new geographic area.

• Remember to evaluate your supplier locations and your customer locations, as well as their proximity to your manufacturing location.

• Get help from reshoring experts as appropriate. ••

Fully consider building configuration to accommodate new machinery and production layout.

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24 LocationUSA

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Kentucky Cabinet for Economic Development

KENTUCKY IS AT THE CENTER OF THE GLOBAL ECONOMY system. The Kentucky Skills Network, a new statewide workforce initiative, provides employers efficient, quality, and seamless workforce services and resources, all in one place. For companies, the network serves as a competent system that assists businesses in finding, training, and preparing its workforce. For employees, the network helps put individuals on a path to a career by providing training and retraining opportunities.

Kentucky remains a leader in attracting foreign direct investment, with nearly 30 percent of announced new investment in 2014 due to FDI activity. Today, more than 430 foreign-owned firms from 31 nations employ nearly 85,000 people in the state.

Companies such as iwis (Germany), Champion Petfoods (Canada), T.RAD (Japan), Diageo (United Kingdom), and Faurecia (France) have all made recent investments in the state, showing Kentucky can compete globally for jobs and investment.

Manufacturing Confidence Kentucky manufacturers are having great success and their numbers are growing, especially in the automotive industry.

Ford Motor Company recently started producing the Lincoln MKC at its Louisville Assembly Plant. Ford also is investing $80 million and creating 350 new jobs at its Kentucky Truck Plant to meet surging demand for F-Series Super Duty trucks.

Toyota is upgrading its facility in Georgetown, Ky., to be the first-ever U.S. production site for the Lexus ES 350 model, the top-selling Lexus sedan in the world. The first Lexus vehicles are expected to roll off the assembly line this fall.

The General Motors plant in

Bowling Green, Ky., produces the iconic Corvette. The plant recently underwent a $131 million upgrade, including $52 million for an all-new body shop.

Large on Logistics In addition to its manufacturing strength, Kentucky is a logistical paradise, located within 600 kilometers of 65 percent of the U.S. population. Five commercial airports and two top air cargo hubs (UPS and DHL) help rank Kentucky third in air cargo shipments. Kentucky also offers major rail and river ports, 19 interstates and major highways, and the most miles of navigable rivers in the lower 48 states.

Workforce Training While other states are creating programs to develop the workforce of the future, Kentucky is reinventing the

visit us at www.LocationUSA.com

Kentucky also puts a high priority on bringing industries and schools together to provide apprenticeship training. Apprenticeship is an industry-driven concept that focuses on on-the-job training and is supplemented by technical classroom instruction. This nationally recognized certification offers programs for a variety of careers and industries.

Come discover why so many global companies have found that Kentucky is a great place to build a business.

Mandy Lambert, Commissioner for Business Development Kentucky Cabinet for Economic Development Old Capitol Annex 300 West Broadway Frankfort, KY 40601 502-564-7140 ECONDEV@KY.GOV WWW.THINKKENTUCKY.COM

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Mississippi Development Authority

MISSISSIPPI’S SUCCESS STORIES ARE GLOBAL From aerospace to automotive, an increasing number of global leaders across industry sectors are discovering Mississippi’s competitive advantages.

The state’s strong business climate provides a fertile ground for location and expansion opportunities. Mississippi’s productive workforce and low energy costs combine with the state’s seamless one-stop permitting process and extensive transportation network to create a supportive business environment that spurs growth and prosperity.

Mississippians take pride in a job well done and serve a vital role equipping industries with the talent and skills needed for their continued success and longevity. Global companies like GE Aviation, Rolls-Royce, Nissan, Toyota, Chevron, and Airbus Helicopters rely on Mississippi’s workforce to produce some of the world’s best products.

Mississippi’s community college network and four research universities collaborate to offer workforce training solutions to meet the dynamic needs of today’s industries. Mississippi companies benefit from customized,

flexible workforce training programs and have access to world-class R&D initiatives, which provide the tools needed to succeed in today’s ondemand economy.

Additionally, Mississippi’s prime location and robust transportation infrastructure offer logistical advantages to the state’s businesses. Centrally located in the fastest-growing region of the U.S., Mississippi’s interstate and highway network was ranked eighth best in the U.S. in 2014. The state’s six interstate highways and 14 federal highways provide companies singleday roadway access to more than 55 percent of U.S. markets. Mississippi’s 15 ports, including two deepwater ports on the Gulf of Mexico, also offer companies quick, convenient access to both national and international markets for importing and exporting.

Last year, numerous global companies chose to locate or expand in Mississippi to capitalize on the state’s impressive list of business assets.

In January, German-owned vehicle supplier GRAMMER announced its decision to locate an automotive and seating systems manufacturing facility in Tupelo, Miss. This $30 million investment is adding 650 new jobs at the north Mississippi commercial vehicle facility, which also serves as the company’s U.S. headquarters.

German-owned ISA TanTec announced it was locating the company’s first U.S. tannery operations in Vicksburg, Miss., in May 2014. The $10.1 million investment project will create 366 new jobs. TanTec supplies leathers to globally recognized footwear brands such as Timberland, The North

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Face, New Balance, Clarks, Merrell, Sperry, and others. The company’s expanded footprint in the U.S. will provide for more domestic-driven leather production, with Mississippi being the central location for that effort.

In November, Nissan rolled out its 2015 Murano crossover SUV at its Mississippi assembly plant in Canton, adding 500 new jobs to support Murano production. This expansion brings employment at the site to more than 6,000. The rollout of the 2015 Murano marks the first time this vehicle has been produced in the U.S. This additional production line positions the Canton plant as the global hub for Murano production, creating export opportunities in more than 100 markets worldwide and expanding the Mississippi plant’s reach globally.

Mississippi is filled with global success stories. The state is steadfast in its commitment to maintaining a strong and welcoming business environment where sustainable growth is a top priority. To learn more about the advantages of locating and doing business in Mississippi, visit www.mississippi. org, or call 1-800-360-3323.

David Ramsey Global Business Division Director Mississippi Development Authority P.O. Box 849 Jackson, MS 39205 601-359-3155

DRAMSEY@MISSISSIPPI.ORG WWW.MISSISSIPPI.ORG

North Dakota

NORTH DAKOTA’S ECONOMIC GROWTH LEADS THE UNITED STATES North Dakota’s business climate has gained a reputation for supporting emerging businesses, entrepreneurs, and expansions. The state’s growing manufacturing, technology-based businesses, agricultural, and energy industries, enhanced with numerous incentives, are drawing some of the world’s most recognized companies into the state.

Leading the Nation For the past five out of six years, North Dakota’s economy has outpaced all other states according to the U.S. Bureau of Economic Analysis reports.

Factors driving the state’s robust economy include continued growth in economic production, new jobs, and increasing export sales, leading economic indicators show.

Business Friendly #1 Best States for Young Adults — Moneyrates.com #1 Best-Run State in the nation — Wall Street 24/7 #1 Best States for Creating Jobs — Gallup Job Creation Index #1 Growth Performer States Since 2000 — U.S. Chamber

#1 In State Competitiveness — Beacon Hill Institute #1 Best States for Entrepreneurship — University of Nebraska #2 Best States for Business — Forbes magazine #3 Top States for Business — CNBC Quality of Life North Dakota is an impressive state with rolling prairies, majestic badlands, and abundant wildlife. It is also a state with exciting cities, excellent fine dining, great places to stay, and casino nightlife. Water parks, amusement parks, and state parks offer endless entertainment for families and the young-at-heart.

International Investor Program The immigrant investor, or EB-5, program enables a foreign national to obtain permanent residence status in the U.S. Under federal law, immigrant visas are available to qualified individuals seeking permanent resident status on the basis of their engagement in a new commercial enterprise. The North Dakota/Northwest Minnesota EB-5 center located in Grand Forks, ND, can assist investors with identifying invest-

ment opportunities and accessing the EB-5 program.

Doing Business in North Dakota Business incentives, accessibility to government officials, and workforce performance, combined with North Dakota’s favorable position as one of the lowest cost states for operating a business, are driving top companies to establish operations in North Dakota, and investors to invest in North Dakota-based enterprises.

“North Dakota has successfully implemented a long-term strategy to create one of the best business climates in the nation,” Commerce Economic Development & Finance Division Director Paul Lucy said. “Our goal is to provide an environment for North Dakota-based businesses that strengthens their competitive position in the global marketplace.”

Combined with a legendary work ethic and a highly educated workforce, North Dakota has become a dynamic place to live, work and be in business.

For more information, please contact The North Dakota Department of Commerce at 701-328-5300 or visit its website at www.ndbusiness.com.

Paul Lucy Director, Economic Development & Finance North Dakota Department of Commerce 1600 E Century Ave, Suite 2 Bismarck, ND 58503 701-328-5300 Fax: 701-328-5320 PLUCY@ND.GOV WWW.NDBUSINESS.COM

visit us at www.LocationUSA.com

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Greenspoint District

GREENSPOINT DISTRICT STRATEGICALLY POSITIONED AND GLOBALLY CONNECTED IN NORTH HOUSTON

Houston’s Greenspoint District is strategically positioned and globally connected, providing domestic and international companies a convenient and cost-effective area to locate their business, as well as access to a highly trained workforce. The District’s proximity to the Gulf of Mexico and central U.S. location cut days and dollars in the movement of products and supplies. These benefits have attracted a diverse mix of companies to Greenspoint, including industry leaders in manufacturing, healthcare, energy, technology, logistics, and distribution.

Strategic Roadways Ease Drive Times Road infrastructure in the Greenspoint District is ideal for business. The area’s epicenter sits at the crossroads of Interstate 45 (extends north to Dallas) and the Sam Houston Parkway (runs east/ west and encircles Houston with a 92-mile loop). The Greenspoint District is convenient to other critical north-south corridors, including U.S. 290, Hardy Toll Road, Interstate 69, and State Highway 99.

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International Airport and Seaport Widen Market Area George Bush Intercontinental Airport (IAH) boasts 700 daily departures and is located six miles from the District. IAH provides nonstop services to 116 U.S. destinations and nearly 70 direct flights to international destinations. IAH offers more daily flights to Mexico than any other U.S. airport.

The Port of Houston is a key logistical asset located just 22 miles from the Greenspoint District via the Sam Houston Tollway. The Port of Houston is the first ranked U.S. port in terms of foreign tonnage, as well as the largest Texas port and the largest container port on the Gulf Coast of the United States.

Educated Professionals Call Houston Home With more than 9.1 million workers, Texas has the nation’s secondlargest civilian labor force, and Houston continues to lead the state in job growth. Situated on Houston’s north side, the Greenspoint District provides access to 1.2 million qualified job candidates within a 30-minute drive time. Sixty percent of that working population is between the

ages of 30 and 54; and 60 percent of current Greenspoint workers have attended college or received a degree, outpacing both Texas and the U.S. Strategic location and global connections make the Greenspoint District ideal when considering a U.S. location. District staff can offer site selection assistance and governmental guidance regarding incentives, taxes, permitting, and more. Additional support is available from the District’s International Advisory Council comprised of immigration attorneys, investors, and foreign nationals successfully doing business in Houston.

Contact the the Greenspoint District today to discuss how your business can thrive in the U.S.

Regina Lindsey Chief Development Officer and Vice President Greenspoint District 16945 Northchase, Suite 1900 Houston, TX 77060 Office: 281-874-2131 Direct: 281-874-2137 Fax: 281-874-2151 RLINDSEY@GREENSPOINT.ORG WWW.GREENSPOINT.ORG

New Mexico Partnership

IT’S TIME TO TAKE A CLOSER LOOK AT NEW MEXICO Now is a great time to invest in New Mexico. Recent changes to the state’s tax structure — which has further improved the state’s operating environment — along with a talented workforce and aggressive financial incentives make New Mexico an attractive location for long-term success.

A study by Ernst & Young and the New Mexico Tax Research Institute determined that New Mexico has reduced tax rates for manufacturing

by nearly 60 percent — the greatest drop, by far, in the western states studied. New Mexico’s after-credit manufacturing rate is now at 3.3 percent — the best in the region.

Additionally, the nonpartisan Tax Foundation recognized New Mexico’s successful bipartisan approach between Governor Susana Martinez and the state legislature with its prestigious award for “Outstanding Achievement in State Tax Reform.”

These recent, significant improvements to the state’s business climate are only part of the reason why it’s time to take a closer look at New Mexico.

To find out more about the increasing business advantages here, contact the New Mexico Partnership. We’re the economic development marketing

and business development agency for locating and expanding businesses.

We offer a coordinated approach and a formal network of economic developers throughout the state to simplify the site selection process by providing information and support regarding real estate sites and buildings, incentives, workforce training programs, logistics, and any other business needs.

Steve Vierck, CEcD, President & CEO New Mexico Partnership 1720 Louisiana Blvd NE, Suite 312 Albuquerque, NM 87110 505-247-8500/888-715-5293 WWW.NMPARTNERSHIP.COM

San Antonio EDF

SAN ANTONIO — OPPORTUNITY AS BIG AS TEXAS Recognized by Forbes as America’s new “Capitol of Influence” for its diverse and skilled workforce, central location, rich culture, and close proximity to Mexico, San Antonio, Texas, is one of the fastest-growing U.S. cities, offering low business costs and a pro-business economy that attracts investment from more than 30 countries around the world. The 15 colleges and universities in the area educate 160,000 students, providing a steady supply of skilled talent to the MSA’s workforce of more than one million.

Businesses of all sizes thrive here, from the 350 small companies growing at innovative technology incubators to larger operations representing industry sectors including aerospace, bioscience, and information technology.

Toyota, and many more.

In San Antonio, companies find a “Culture of Business” that fosters growth and supports diverse industries representing local, national, and foreign investments.

Businesses from around the world are welcomed to San Antonio to find opportunity as big as TEXAS itself.

San Antonio is a leader in cybersecurity and home to the largest concentration of cybersecurity resources outside of Washington, D.C. San Antonio is a forerunner in the “New Energy Economy,” in which 500 jobs and $808 million in economic impact have been realized here. The advanced manufacturing sector has experienced unprecedented growth and includes companies like Boeing, Lockheed Martin,

San Antonio Economic Development Foundation 602 E. Commerce St. San Antonio, Texas 78205 210-226-1394 EDF@SANANTONIOEDF.COM WWW.SANANTONIOEDF.COM

LocationUSA ALABAMA Hollie Pegg Alabama Development Office 401 Adams Avenue Montgomery, AL 36130 Tel. 1-334-242-0421 Fax: 1-334-242-5669 hollie.pegg@commerce. alabama.gov www.madeinalabama.com ALASKA Marcia Davis Anchorage Office of the Governor 550 West 7th Avenue, Suite 1700 Anchorage, AK 99501 Tel. 1-907-269-7450 Fax: 1-907-269-7461 marcia.davis@alaska.gov www.alaska.gov ARIZONA Sandra Watson Arizona Commerce Authority 333 North Central Avenue, Suite 1900 Phoenix, AZ 85004 Tel. 1-602-228-7593 Fax: 1-602-771-1200 sandraw@azcommerce.com www.azcommerce.com ARKANSAS Danny Games Arkansas Economic Development Commission 900 West Capitol Little Rock, AR 72201 Tel. 1-501-682-2052 Fax: 1-501-682-7394 dgames@arkansasedc.com www.arkansasedc.com CALIFORNIA Brian Peck California GO-BIZ 1325 J Street, Suite 1800 Sacramento, CA 95814 Tel. 1-916-319-9954 Fax: 1-916-322-0693 brian.peck@gov.ca.gov www.business.ca.gov COLORADO Sandi Moilanen International Investment & Initiatives 1625 Broadway, Suite 2700 Denver, CO 80202 Tel. 1-303-892-3857 Fax: 1-303-892-3848 sandi.moilanen@state.co.us www.advancecolorado.com CONNECTICUT Beatriz Gutierrez Connecticut Dept. of Economic and Community Development 505 Hudson Street Hartford, CT 06106 Tel. 1-860-270-8013 Fax: 1-860-270-8008 beatriz.gutierrez@ct.gov www.ct.gov/ecd/ DELAWARE Andrea Tinianow Department of State 820 N. French Street, 4th Fl. Wilmington, DE 19801 Tel. 1-302-577-8285 Fax: 1-302-577-2694 andrea.tinianow@state.de.us http://global.delaware.gov/ DISTRICT OF COLUMBIA Gizachew Andargeh Int’l. Business Manager 1350 Pennsylvania Ave, NW Suite 317 Washington, DC 20004 Tel. 1-202-727-6365 Fax: 1-202-727-6703 karima.woods@dc.gov http://dcbiz.dc.gov FLORIDA Manny Mencia Enterprise Florida 201 Alhambra Circle, Suite 610 Coral Gables, FL 33134 Tel. 1-305-808-3660 Fax: 1-305-808-3586 mmencia@eflorida.com www.enterpriseflorida.com

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GEORGIA Scott McMurray Georgia Department of Economic Development 75 Fifth Street N.W., Suite 1200 Atlanta, GA 30308 Tel. 1-404-962-4035 Fax: 1-404-962-4121 smcmurray@georgia.org www.georgia.org HAWAII Luis P. Salveria Dept. of Business, Economic Development and Tourism P.O. Box 2359 Honolulu, HI 96813 Tel. 1-808-586-2355 Fax: 1-808-586-2377 director@dbedt.hawaii.gov www.hawaii.gov/dbedt IDAHO Jennifer Verdon Economic Development Division 700 West State Street Boise, ID 83720 Tel. 1-208-334-2650 x2117 Fax: 1-208-334-2631 jennifer.verdon@commerce. idaho.gov www.idahoworks.com ILLINOIS Rob Ginsburg Illinois Office of Trade and Investment - DCEO 100 W. Randolph, Suite 3-400 Chicago, IL 60601 Tel. 1-312-814-4954 Fax: 1-312-814-6581 rob.ginsburg@illinois.gov www.illinois.gov/dceo INDIANA Kent Anderson Indiana Economic Development Corp.

One North Capitol Ave., 7th Floor Indianapolis, IN 46204 Tel. 1-812-390-4816 Fax: 1-317-232-4146 KeAnderson@iedc.in.gov www.iedc.in.gov

STATE-DESIGNATED INVESTMENT OFFICIALS SelectUSA • U.S. Department of Commerce • 1-202-482-6800 • info@selectusa.gov

MAINE Janine Bisaillon-Cary Maine International Trade Center 511 Congress Street, Suite 100 Portland, ME 04101 Tel. 1-207-541-7400 Fax: 1-207-541-7420 investinmaine@mitc.com www.mitc.com MARYLAND Robert Walker MD Dept. of Business and Economic Development 400 East Pratt Street, 15th Fl. Baltimore, MD 21202 Tel. 1-410-767-6302 Fax: 1-410-333-4302 rwalker@choosemaryland.org http:// business.maryland.gov/ MASSACHUSETTS C. Richard Elam MA Office of International Trade & Investment 212 Northern Avenue, E. Bldg 1, #300 Boston, MA 02210 Tel. 1-617-830-5401 Fax: 1-617-457-7851 richard.elam@state.ma.us www.mass.gov/moiti MICHIGAN Susan Novakoski Michigan Economic Development Corp.

300 N. Washington Square Lansing, MI 48913 Tel. 1-517-719-0393 Fax: 1-517-241-3683 novakoskis@michigan.org www.michiganbusiness.org MINNESOTA Laurence Reszetar Dept. of Employment and Economic Development 332 Minnesota Street, Suite E200 St. Paul, MN 55101 Tel. 1-651-259-7488 Fax: 651-296-3555 Laurence.Reszetar@ state.mn.us www.mn.gov/deed/invest

NEVADA Kristopher Sanchez Nevada Governor’s Office of Economic Development 808 W. Nye Lane Carson City, NV 89703 Tel. 1-702-306-3832 Fax: 1-702-486-2505 ksanchez@ diversifynevada.com www.diversifynevada.com NEW HAMPSHIRE Carmen Lorentz Dept. of Resources and Economic Development P.O. Box 1856 Concord, NH 03301 Tel. 1-603-271-2341 Fax: 1-603-271-6784 carmen.lorentz@dred.nh.gov www.nheconomy.com NEW JERSEY Lauren H. Moore, Jr. New Jersey Business Action Center 225 West State Street, 3rd Floor Trenton, NJ 08625 Tel. 1-609-292-3863 Fax: 1-609-292-5509 lauren.moore@sos.state.nj.us www.nj.gov/state/bac/ NEW MEXICO Edward Herrara New Mexico Economic Development Department 1100 St. Francis Drive Santa Fe, NM 87505 Tel. 1-505-827-0315 Fax: 1-505-827-0328 Edward.Herrara@state.nm.us http://gonm.biz/ NEW YORK Edward Kowalewski Empire State Development Corp.

95 Perry Street, Suite 500 Buffalo, NY 14203-3030 Tel. 1-716-846-8237 Fax: 1-212-803-2399 ekowalewski@esd.ny.gov www.esd.ny.gov

PENNSYLVANIA Wilfred Muskens Dept. of Community & Economic Development 400 North Street, 4th Floor Harrisburg, PA 17120 Tel. 1-717-214-5324 Fax: 1-717-772-5106 wmuskens@state.pa.us www.newpa.com

WASHINGTON Allison Clark Washington State Dept. of Commerce 2001 6th Avenue, Suite 2600 Seattle, WA 98121 Tel. 1-206-256-6124 Fax: 1-206-256-6158 allison.clark@commerce.wa.gov www.choosewashington.com

RHODE ISLAND Katherine Therieau Rhode Island Economic Development Corp.

315 Iron Horse Way, Suite 101 Providence, RI 02908 Tel. 1-401-278-9100 x139 Fax: 1-401-273-8270 ktherieau@riedc.com www.commerceri.com

WEST VIRGINIA Stephen Spence West Virginia Development Office State Capitol Charleston, WV 25305 Tel. 1-304-957-2067 Fax: 1-304-558-0449 stephen.e.spence@wv.gov www.wvcommerce.org

SOUTH CAROLINA W. Ford Graham South Carolina Department of Commerce Brienner Strasse 14 80333 Munich, Germany Tel. 011-49-8929-19170 Fax: 011-49-2919-19170 fgraham@sccommerce.com www.sccommerce.com

WISCONSIN Kelly Aschenbach Wisconsin Economic Development Corporation 201 W. Washington Avenue, 6th Floor Madison, WI 53703 Tel. 1-608-210-6856 Fax: 1-608-266-5551 kelly.aschenbach@wedc.org http://inwisconsin.com

SOUTH DAKOTA Steve Watson Governor’s Office of Economic Development 711 E. Wells Ave. Pierre, SD 57501 Tel. 1-605-367-4518 steve.watson@state.sd.us www.sdreadytowork.com TENNESSEE Leslee Alexander TN Dept. of Economic and Community Development 312 Eighth Avenue N., 11th Floor Nashville, TN 37243 Tel. 1-615-483-7293 Fax: 1-615-741-5829 leslee.alexander@tn.gov www.tnecd.com

IOWA Victoria Wazike IIowa Economic Development Authority 200 East Grand Avenue Des Moines, IA 50309 Tel. 1-515-725-3008 Fax: 1-515-725-3010 victoria.wazike@iowa.gov www.iowaeconomic development.com

MISSISSIPPI John Henry Jackson Mississippi Development Authority P.O. Box 849 Jackson, MS 39205 Tel. 1-601-359-3155 Fax: 1-601-359-4339 jjackson@mississippi.org www.mississippi.org

NORTH CAROLINA David Spratley Economic Development Partnership of North Carolina 1500 Weston Parkway Cary, NC 27513 Tel. 1-919-447-7736 Fax: 1-919-447-7736 David.Spratley@EDPNC.com www.thrivenc.com

TEXAS Jose Romano Office of the Governor P.O. Box 12428 Austin, TX 78711 Tel. 1-512-427-9057 Fax: 1-512-936-0080 Jose.Romano@governor. state.tx.us https:// texaswideopenforbusiness. com

KANSAS Randi Tveitaraas Jack Kansas Department of Commerce 1000 S.W. Jackson St., Suite 100 Topeka, KS 66612 Tel. 1-785-296-7868 Fax: 1-785-296-3490 rjack@kansascommerce.com www.kansascommerce.com

MISSOURI Dennis Pruitt Missouri Partnership 120 S. Central Avenue, Suite 1535 St. Louis, MO 63105 Tel. 1-314-725-0949 Fax: 1-314-725-0743 dennis@ missouripartnership.com www.missouripartnership. com

NORTH DAKOTA Zoe Wergeland North Dakota Department of Commerce 1600 East Century Avenue, Suite 2 Bismarck, ND 58502 Tel. 1-701-328-5300 Fax: 1-701-328-5320 plucy@nd.gov www.business.nd.gov

UTAH Brett W. Heimburger Governor’s Office of Economic Development 60 East South Temple, 3rd Floor Salt Lake City, UT 84222 Tel. 1-801-538-8651 Fax: 1-801-538-8651 bheimburger@utah.gov www.business.utah.gov

OHIO Mindy McLaughlin Jobs Ohio 41 S High Street, Suite 1500 Columbus, OH 43215 Tel. 1-614-300-1355 mclaughlin@jobs-ohio.com www.jobs-ohio.com

VERMONT Brent Raymond Department of Economic Development One National Life Drive, 6th Floor Montpelier, VT 05620 Tel. 1-802-828-1680 Fax: 1-802-828-5204 brent.raymond@state.vt.us http://accd.vermont.gov/

KENTUCKY Mandy Lambert Kentucky Cabinet for Economic Development 300 West Broadway Frankfort, KY 40601 Tel. 1-502-564-7140 Fax: 1-502-564-3256 Econdev@ky.gov www.thinkkentucky.com LOUISIANA Steven Grissom Department of Economic Development 1051 North Third Street Baton Rouge, LA 70802 Tel. 1-225-342-6524 Fax: 1-225-342-5349 sgrissom@la.gov www.opportunitylouisiana.com

MONTANA John Rogers Governor’s Office of Economic Development State Capitol P.O. Box 200801 Helena, MT 59620 Tel. 1-406-444-5634 Fax: 1-406-444-3674 johnrogers@mt.gov http://commerce.mt.gov NEBRASKA Joe Chapuran Department of Economic Development 301 Centennial Mall South, 4th Floor Lincoln, NE 68509 Tel. 1-402-658-1138 Fax: 1-402-471-3778 Joe.Chapuran@nebraska.gov www.neded.org

OKLAHOMA Jessika Leatherbury Oklahoma Department of Commerce 900 N. Stiles Avenue Oklahoma City, OK 73104 Tel. 1-405-815-5136 Fax: 1-405-605-2987 jessika_leatherbury@ okcommerce.gov www.new.okcommerce.gov OREGON Sean Robbins Business Oregon 775 Summer Street, NE Suite 200 Salem, OR 97301 Tel. 1-503-986-0106 Fax: 1-503-581-5115 sean.robbins@state.or.us www.oregon4biz.com

VIRGINIA Pandy Brazeau Virginia Economic Development Partnership P.O. Box 798 Richmond, VA 23218 Tel. 1-804-545-5760 Fax: 1-804-545-5751 pbrazeau@yesvirginia.org www.yesvirginia.org

WYOMING Ben Avery Wyoming Business Council 124 West 15th Street Cheyenne, WY 82002 Tel. 1-307-777-2863 Fax: 1-307-777-5411 ben.avery@wyo.gov http://wyomingbusiness.org TERRITORIES AMERICAN SAMOA Alex Zodiacal American Samoa Dept. of Commerce 2nd Floor EOB Utulei, AS 96799 Tel. 1-684-633-5155 Fax: 1-684-633-4195 alex.zodiacal@doc.as http://americansamoa.gov GUAM Carl Quinata Guam Economic Development Authority 590 S. Marine Corps Dr., Suite 511 Tamuning, GU 96913 Tel. 1-671-647-4332 x 113 Fax: 1-671-649-4146 cquinata@investguam.com www.investguam.com NORTHERN MARIANA ISLANDS Sixto K. Igisomar Department of Commerce Capitol Hill Saipan, MP 96950 Tel. 1-670-664-3077 Fax: 1-670-664-3067 sec.igisomar@ commerce.gov.mp www.commerce.gov.mp PUERTO RICO Alberto Bacó-Bagué Dept. of Economic Development and Commerce 355 F.D. Roosevelt Ave., Suite 401 Hato Rey, PR 00918 Tel. 1-787-765-2900 Fax: 1-787-753-4094 alberto.baco@ddec.pr.gov www.ddec.pr.gov VIRGIN ISLANDS Percival E. Clouden Economic Development Authority 5055 Norre Gade #5 P.O. Box 305038 St. Thomas, VI 00802 Tel. 1-340-714-1700 Fax: 1-340-774-0990 pclouden@usvieda.org www.usvieda.org

© 2015 Louisiana Economic Development

CUSTOM TRAINING FACILITY State-of-the-art workforce training facility through a partnership with Bossier Parish Community College PRO-BUSINESS CLIMATE Lowest business taxes for new manufacturing operations in the U.S., according to the Tax Foundation and KPMG LED FASTSTART® Customized workforce recruitment and hands-on simulation training in company operations STRATEGIC LOCATION Ideal location at The Port of Caddo-Bossier plus state investments in site infrastructure and equipment improvements ROBUST INCENTIVES Tailored incentive package to meet specific project needs

“Louisiana’s custom-fit solutions are enabling us to identify and train a highly qualified staff to meet our specific technology requirements.”

CORNÉ BUIJS | BENTELER STEEL/TUBE EXECUTIVE VICE PRESIDENT

Benteler Steel/Tube, a division of Benteler Group specializing in manufacturing and processing of seamless steel tubes, utilized Louisiana’s custom-fit solutions to establish its 675-job hot-rolling tube mill in the U.S. What can Louisiana do for your business? Find out at OpportunityLouisiana.com/CustomFit.

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Think advantages? Think Kentucky.

Need more reasons to locate your business in Kentucky? Let us work with you to check off all the boxes on your “needs” list. When you make the decision to choose Kentucky, we’re going to make you look good.

Give us a call today!

ThinkKentucky.com | (800) 626-2930

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