International Business Development Barry Broome, President & CEO Greater Phoenix Economic Council
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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
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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
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Position region as location of choice for global firms that can benefit from and reinforce area's science and technology assets
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Develop skills training program that can be rapidly deployed to support expanding export firms or in-bound foreign companies
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Why Increase FDI? Promote Quality Jobs and Exports •
Workers receive 30% higher pay than non-FDI supported jobs
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FDI responsible for 3.7 % of the state's total private-industry employment (2010)
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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
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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)
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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
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Primary Target: Canada Why Canada? •
784 greenfield projects in the US o $35 billion CAPEX o 68.2 thousand jobs
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230 projects in the Mountain west o o o o
Top investment clusters: ICT & Electronics Energy Professional Services
• •
20 projects in AZ High connectivity
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Established patterns of investment
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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)
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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
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Primary Targets: Germany and UK Why Germany?
Why UK?
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•
•
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
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5th largest economy - $3.25 trillion
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9th largest economy - $2.44 trillion
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$1.46 trillion in export (2012)
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$474.6 billion in export (2012)
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FDI abroad was $1.79 trillion in 2012
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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
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Secondary Markets •
Mexico • • •
Mapping manufacturers Facilitate trade and investment Sale missions
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France
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Japan
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Australia
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South Korea
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Italy
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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
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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
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Outreach to existing sources that serve as points of entry for foreign companies
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Social media
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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)