Increasing Your Share of FDI in 2016

Today’s Speakers

Jeff Finkle, President, International Economic Development Council (IEDC)

Andy Levine, President Development Counsellors International (DCI)

About IEDCWorld's largest membership organization serving the ED profession with 4,700+ membersServiceso Conferenceso Professional Development Trainingso Certification and AEDOo Research and Advisory Serviceso Publications and Information Clearinghouseo Legislative Trackingo Resource Center and more

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About IEDCInternational Partners

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A Word About DCI

Corporate Executives – 75%Site Selection Consultants – 25%

“Winning Strategies in ED Marketing” PROFILE OF RESPONDENTS

91% M

9% F

356

Respondents Under 39 13%

40 – 49 25%

50 – 59 40%

60 and Over 22%

Age

Manufacturing– 51%Services– 49%

Less than $25 million 32%$25 - $49 million 15%$50 - $99 million 11%$100 - $249 million 11%$250 million - $499 million 8%$500 million and higher 23%

Gross Revenue

Corporate Executives | Site Selection Consultants

I am a single practitioner1-25 employees25+ employees

Size of Company

45%

47%

8%

Agenda

I. Key Trends in FDI (Jeff)

II. Increasing Your Share of FDI in 2016: Five Recommendations (Andy)

III. Q&A/Discussion

Key Trends in FDI

Trends in U.S. Investment

• Outbound and inbound investment continue to grow post-recession

• From 2013 to 2014, U.S. outbound investment grew 4.8% to $4,920.7 billion

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Outbound Investment 2013 & 2014

• U.S. leads in outflows

• Hong Kong saw dramatic growth in 2014, surpassing China

Source: UNCTAD 11

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Where is U.S. Investment Going?

Where is U.S. Investment Going?

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Mill

ions

of D

olla

rs

20052006

20072008

20092010

20112012

20132014

$0

$500,000

$1,000,000

$1,500,000

$2,000,000

$2,500,000

$3,000,000

EuropeLatin America and Other Western HemisphereAsia and PacificCanadaAfricaMiddle East

U.S. Direct Investment by Industry

Note: Holding Companies data not included. Source: U.S. Bureau of Analysis. 14

20042005

20062007

20082009

20102011

20122013

20140

100,000

200,000

300,000

400,000

500,000

600,000

700,000

800,000

900,000

Finance & InsuranceManufacturingWholesale TradeMiningInformationDepository InstitutionsProfessional, scientific, and technical servicesM

illio

ns o

f Dol

lars

U.S. Direct Investment

Finance and Insurance in 2014 (Millions of Dollars) (except depository institutions)1. United Kingdom - $152,424 2. United Kingdom Islands, Caribbean - $107,096 3. Japan - $54,001 4. Canada - $49,802 5. Bermuda - $39,156 6. Australia - $35,724 7. Netherlands - $35,106 8. Luxembourg - $30,809 9. Germany - $19,371 10. Singapore - $18,751

Source: U.S. Bureau of Analysis. 15

U.S. Direct Investment

Manufacturing in 2014 (Millions of Dollars)1. Canada - $109,446 2. Netherlands - $52,982 3. United Kingdom - $48,423 4. China - $34,552 5. Singapore - $31,925 6. Germany - $31,557 7. Mexico - $30,495 8. Ireland - $30,179 9. Switzerland - $29,116 10. Belgium - $26,698

Source: U.S. Bureau of Analysis. 16

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Source: SelectUSA – September 201518

EDO Trends in FDI

• IEDC Member Survey results: Between 2013 and 2014, American EDOs increased their FDI efforts by 26%

• EDOs using regional strategies, foreign trade zones, and EB-5 visa program to attract FDI and promote exports

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EDO Trends in FDIExports and foreign direct investment are inextricably linked

Economic clustering as a tool o boosts exports, which attracts FDI

Best way to boost both exports and FDI is by working with existing firms

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EDO Trends in FDIEDOs are creating more programs to address both exports and FDI equally

o Portland, Oregon: global strategy organized around a cycle in which innovation creates exporters, which in turn draws FDI, which in turn spurs increased innovation

o South Carolina: announced the creation of a new state International Strategy and Trade Division that will focus equally on exports and FDI

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Increasing Your Share of FDI in 2016

FIVE RECOMMENDATIONS

1. Engage a “Predictive Model” to Target Potential Investors

2. Turn Your Website into a Lead Generation Engine

3. Connect with the Multipliers4. Find Creative Ways to Stay on a Company’s

Radar5. Use Credible Third Parties to Generate

Interest in Your Location

1. ENGAGE A “PREDICTIVE MODEL” TO TARGET POTENTIAL INVESTORS

Identify Companies That Are Exhibiting “Changes” That Forecast a Site Location Need

Nine “Changes” That Forecast a Site Location Need

1. Executive Change (New CEO or CFO)2. Merger or Acquisition3. Increase in Sales (especially sales from your

country)4. Increase in Employment5. Recent Contract Win6. Venture Capital and Other Funding 7. New Product Launch 8. Regulatory Environment Change9. Recent Investment Outside of North America

USA’s Top Serial InvestorsSource: DCI and fDI Intelligence

100 200 300 400 500

Cargill

DuPont

United Parcel Services

Coca-Cola

Google

ProLogis

Ford

Amazon.com

Federal Express

General Motors

Citigroup

Hewlett-Packard

Microsoft

General Electric

IBM

Axis Title

Top 10 = 7.8% of Projects

2. TURN YOUR WEBSITE INTO A LEAD GENERATION ENGINE

0% 10% 20% 30% 40% 50% 60% 70%

Special events

Trade shows

Internet/Website

Planned visits to corporate executives

Media Relations/ Publicity

67%

64%

48%

Advertising

Direct mail

Telemarketing

1.

2.

3.

Media relations

Visits

Internet

The Rise of “Visitor ID” Software

• Identify “anonymous” website visitors

• Closely track “gold behavior”

• Selectively engage with target executives

Web to Leads Weekly ReportFebruary 1st – February 8th

Out of State (Business Attraction) Company Headquarters

67. West Chester, PA(54.) Warren, MI(65.) Kansas City, MO68. Nashville, TN69. Cuyahoga Falls, Ohio

Lead Assignments

In State (BR&E) Company Headquarters

50. Virginia, MN(30.) Charlotte, NC51. Arden Hills, MN

Consultants Company Office

35. Dallas, TX 36. St. Paul, MN37. Long Island, NY

(54.) Member Driven Technologies

HQ: Warren, MI | Visitor Location: Warren, MIIndustry: IT management for banks | Employees: 175 | Revenue: $35M

URL:

Consultants

35. HQ: Los Angeles, CA | Visitor Location: Dallas, TX

Industry: Commercial Real EstateEmployees: 52k | Revenue: $9B

URL:

3. CONNECT WITH THE MULTIPLIERS

Forty Percent of Executives Anticipate Outsourcing a Portion of Their Next Search

30% 26%

15%1%

19%

4. FIND CREATIVE WAYS TO STAY ON A COMPANY’S RADAR

Tactics to Stay in Touch:• Trade Show Attendance • E-Newsletter• Innovative Direct Mail• Special Events• Relevant News Articles• Book Club

5. USE CREDIBLE THIRD PARTIES TO GENERATE INTEREST IN YOUR LOCATION

Carrying Your Message:• C-Suite Execs with

Positive Experiences in Your Country

• News Media • Industry Experts

Leading Sources of InformationSource: DCI’s Winning Strategies Economic Development Marketing

Dialogue with industry peersNewspapers and magazines

Business travelMeetings with ED groups

Rankings / surveysOnline sourcesWord of mouthPersonal travel

OtherTV and radio

AdvertisingDirect mail

Social media

0% 10% 20% 30% 40% 50% 60%

55%44%

37%31%

24%

DIGITAL AMBASSADORS290+

AMBASSADORS

Summing It Up

1. Engage a “Predictive Model” to Target Potential Investors

2. Turn Your Website into a Lead Generation Engine

3. Connect with the Multipliers4. Find Creative Ways to Stay on a Company’s

Radar5. Use Credible Third Parties to Generate

Interest in Your Location

Q&A/Discussion