Broome

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

•

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

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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)

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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

•

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)

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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?

•

•

•

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)

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$474.6 billion in export (2012)

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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

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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

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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

•

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

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Greater Phoenix Economic Council (Groups)