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International Business Development Barry Broome, President & CEO Greater Phoenix Economic Council


I n t e r n a t i o n a l

B u s i n e s s

D e v e l o p m e n t

Foreign Direct Investment & Export Strategy Greater Phoenix Metropolitan Business Plan (MBP) MBP Mission: To accelerate and transform the greater phoenix economy into a global force for innovation and technology by 2025. Strategies: 1. Become a top 10 market for innovation and product commercialization 2. Create a world-class delivery system that brings together the region’s resources, assets, and supports for entrepreneurs and early-stage firms 3. Become a global FDI and trade leader 4. Enhance spatial density and connectivity to facilitate innovation


I n t e r n a t i o n a l

B u s i n e s s

D e v e l o p m e n t

FDI & Export Strategy Implementation of GPEC’s International Business Development tactics and new Export Strategy will enhance the region’s competitiveness for FDI and trade by: •

Helping firms in key industries (e.g. computer electronics, business services) tap into North American and other international markets

Position region as location of choice for global firms that can benefit from and reinforce area's science and technology assets

Develop skills training program that can be rapidly deployed to support expanding export firms or in-bound foreign companies


I n t e r n a t i o n a l

B u s i n e s s

D e v e l o p m e n t

Why Increase FDI? Promote Quality Jobs and Exports •

Workers receive 30% higher pay than non-FDI supported jobs

FDI responsible for 3.7 % of the state's total private-industry employment (2010)

In 2010, $78 billion of FDI (41%) was spent on the manufacturing sector •

More than a quarter (25.6 percent) of all manufacturing workers in Arizona depend on exports for their jobs

If we improve our FDI position, the job-creation potential would be:

25th 73,100 Jobs

15th

102,325 Jobs

10th 141,479 Jobs

Source: U.S. Department of Commerce, ESA; National Association of Manufacturers; International Trade Administration (July ,2013); Brookings Institute, U.S. Bureau of Economic Analysis (2008-2012)


I n t e r n a t i o n a l

B u s i n e s s

D e v e l o p m e n t

Arizona: FDI Results 115 greenfield deals occurred in AZ between 2007 and 2012 totaling 12 thousand jobs

and $6.5 billion in greenfield capital investment Rank

Country

Deals

Jobs

CAPEX

1

Canada

20

916

1,413

2

Germany

16

662.3

1,761

3

UK

14

390.1

1,944

4

Spain

11

2,665.0

675

5

France

6

127.9

864

6

Switzerland

6

217.2

654

7

Japan

6

154.6

417

8

Australia

5

141.4

948

9

Ireland

3

281.2

137

10

China

3

88.9

453

Source: FDI Intelligence (2013)


GPEC: FDI Results • 102 declared international prospects since FY 2011 and 19 locates • 18% locate rate

Source: Greater Phoenix Economic Council


I n t e r n a t i o n a l

B u s i n e s s

D e v e l o p m e n t

Primary Target: Canada Why Canada? •

784 greenfield projects in the US o $35 billion CAPEX o 68.2 thousand jobs

230 projects in the Mountain west o o o o

Top investment clusters: ICT & Electronics Energy Professional Services

• •

20 projects in AZ High connectivity

Established patterns of investment

Tourism & Home ownership

Focus: Western Canada •

Vancouver & Alberta o Target industries: o ICT & Electronics o Environmental Technology o Financial Services o Industrial

Source: U.S. Department of Commerce, ESA; National Association of Manufacturers; International Trade Administration (July ,2013); Brookings Institute, U.S. Bureau of Economic Analysis (2008-2012)


I n t e r n a t i o n a l

B u s i n e s s

D e v e l o p m e n t

Primary Target: China • Joint venture between Arizona State University, Arizona Commerce Authority and Greater Phoenix Economic Council Key Results • In its first year, the China-Arizona Alliance met with more than 200 companies and developed qualified contacts in Shanghai, Jiangsu and Zhejiang • Created more than 500 million media impressions and produces regular progress and market intelligence reports FY14 Goals • Will elevate its profile by expanding into strategically-identified markets and continue hosting investment forums • Create strategic partnerships with Center of American States and leverage existing relationships with groups like ChinaGoAbroad • Launch the China-Arizona Alliance website, listing resources and investor benefits


I n t e r n a t i o n a l

B u s i n e s s

D e v e l o p m e n t

Primary Targets: Germany and UK Why Germany?

Why UK?

1,067 greenfield projects in the US

1,430 greenfield projects in the US

o $41 billion CAPEX

o $38 billion CAPEX

o 109.8 thousand jobs

o 100 thousand jobs

248 in Mountain west o o o o

435 projects in Mountain West • o o o

Top investment clusters: Environmental Technology ICT & Electronics Transport Equipment

Top investment clusters: Creative Industries ICT & Electronics Professional Services

5th largest economy - $3.25 trillion

9th largest economy - $2.44 trillion

$1.46 trillion in export (2012)

$474.6 billion in export (2012)

FDI abroad was $1.79 trillion in 2012

FDI abroad was $1.80 trillion in 2012

Source: U.S. Department of Commerce, ESA; National Association of Manufacturers; International Trade Administration (July ,2013); U.S. Bureau of Economic Analysis (2008-2012) ; FDI intelligence


I n t e r n a t i o n a l

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D e v e l o p m e n t

Secondary Markets •

Mexico • • •

Mapping manufacturers Facilitate trade and investment Sale missions

France

Japan

Australia

South Korea

Italy

Secondary Markets: Top 3 FDI Industries with Arizona Industry # Deals CAPEX Job Financial Services 6 99.8 839 Retail Trade 4 55 409 Transport Equipment 3 51.9 225 Overall Jobs 26 1,031.7 2,763

Secondary Markets: Top 5 FDI Industries with MW Cluster

# Deals

CAPEX

Jobs

ICT & Electronics

143

11,950

12,489

Retail Trade

134

2,627

24,665

Netherlands

Financial Services

74

1,029

3,739

Sweden

Creative Industries

61

593

2,729

Switzerland

Transport Equipment

56

1,682

6,167

Overall Jobs

979

56,457

81,928

Source: U.S. Department of Commerce, ESA; National Association of Manufacturers; International Trade Administration (July ,2013); U.S. Bureau of Economic Analysis (2008-2012) ; FDI intelligence


I n t e r n a t i o n a l

B u s i n e s s

D e v e l o p m e n t

International Marketing Strategy Combination of both digital and grassroots, and implemented in two phases, GPEC’s marketing efforts will focus on four areas: •

Regional marketing efforts: Create relationships and regional awareness with organizations to promote GPEC

Outreach to existing sources that serve as points of entry for foreign companies

Social media

Future entrepreneurs with Arizona ties: incorporate Arizona educational institutions

with a presence in the key geographic markets


G L O B A L

C O N N E C T

Questions? Thank you! 602.256.7700 | www.gpec.org

@GPEC

/GPEC4JOBS /gpecgreaterphoenix

Greater Phoenix Economic Council (Groups)


Broome