columbus 2020 investor update | january 2015 | brad mcdearman
TRANSCRIPT
79% share of global economic growth occurring outside the U.S., 2013-2018
The Bulk of Economic Growth is Occurring Outside the U.S.
Source: World Economic Outlook, International Monetary Fund, 2014
Global Middle Class - 2009 | Share of Global Totals
18% North America
36% Europe 28%
Asia Pacific
Source: Kharas and Gertz, “The New Global Middle Class,” 2010
Global Middle Class - 2030 | Share of Global Totals
7% North America
14% Europe 66%
Asia Pacific
Source: Kharas and Gertz, “The New Global Middle Class,” 2010
Population
66%
Land Area
12%
Exports
65%
FDI Jobs
74%
Top 100 Metros Share of U.S. Totals
Patents
78% 94%
Venture Capital
College Degrees
74%
Metros Are the Market
Source: Census, Brookings
2013
11.7%
2003
7.8%
U.S. Export Share of GDP
2%
67%
share of exporters
Large Firms (500+ Employees)
share of export value
The U.S. Is Increasingly Export-Oriented, but Large Firms Dominate
Exports Share of Top 100 Metro GDP Growth
(2009-2012)
54%
Source: Brookings, Census
Though Volatile, Global Investment Flows Are Growing
1984 1999 2012
FDI Flows (Capital Investment) 1980-2012
$2 trillion
$1 trillion
Global
U.S.
Source: UNCTAD
The U.S. Is Capturing a Smaller Share of Global Investment
12 percent
26 percent
45 percent
1984 1999 2012
U.S. Share of Global FDI (Capital Investment) 1980-2012
Source: UNCTAD
FDI Bolsters Exports and Innovation
U.S. Manufacturing
Exports
U.S. Manufacturing Employment
2%
20%
Foreign-Owned Firms Goods-Producing Industries, 2011
U.S. Corporate R&D
U.S. Employment
5%
19%
Foreign-Owned Firms 2011
Source: Brookings, Metro FDI, 2014; Bureau of Economic Analysis
Alternate Forms of FDI Need to Be Managed and Mainstreamed
FDI Capital Inflows 1992-2008
87% M&A
13% Greenfield
Acquired in 2007; added jobs and made a global research hub
Maintains manufacturing and R&D facilities in MD
M&A: MedImmune Montgomery County, MD Investors searching for opportunities in
real estate, firms, public assets
How to manage, organize, discern which opportunities are legitimate?
Private Investment: Seattle-China
Private Investment
Sovereign Wealth Funds
EB-5 Immigrant Investor Visa
Infrastructure
Source: Brookings, Metro FDI, 2014; Bureau of Economic Analysis
Goal: Catalyze a shift in economic growth policy and practice that results in more globally competitive metropolitan areas, positioning them for high-quality growth and better jobs for more workers in the 21st century economy.
1. Research 2. Convenings 3. Exchange
GLOBAL CITIES INITIATIVE A Joint Project of Brookings and JPMorgan Chase
The Exchange Is 28 U.S. Metros at the Vanguard of Global Engagement
Exports: New Cohort Baltimore Fresno Houston Kansas City Philadelphia Salt Lake Seattle St. Louis
Exports: Current Atlanta Charleston Chicago Columbus Des Moines Indianapolis Jacksonville Louisville-Lexington Los Angeles Milwaukee Mpls-St. Paul Phoenix Portland Sacramento San Antonio San Diego Syracuse Tampa Bay Upstate SC Wichita
Columbus Mpls-St. Paul Portland San Antonio San Diego Seattle
FDI Pilot
Key Takeaways from Global Trade and Investment Plans
Specializations with Global Reach Clusters, talent, innovation, assets, connections
M&A Matters Majority of FDI, brings knowledge, cash infusion, export channels
Retention And Expansion Is Critical Understand and support the needs of existing firms
Middle Market Is the Sweet Spot Target threshold firms and under-exporters
Global Needs to Be a Mainstream Priority Long-term commitment from central players, part of every day practice