COLUMBUS GLOBAL CONNECT GLOBAL TRADE AND INVESTMENT January 29, 2015

§  Position the Columbus Region to be an integral part of global trade and investment flows

§  Help make the Region’s businesses and workforce more competitive in a globalized economy

§  Support the Columbus 2020 Regional Growth Strategy

RATIONALE FOR TRADE AND FDI PLAN

RATIONALE FOR TRADE AND FDI PLAN

New projects pipeline Projects announced with 50+ jobs created or $1M+ investment

0

20

40

60

80

100

120

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Domestic International

0% 10% 20% 30% 40% 50% 60% 70% 80%

Jul-1

1 O

ct-1

1 Ja

n-12

A

pr-1

2 Ju

l-12

Oct

-12

Jan-

13

Apr

-13

Jul-1

3 O

ct-1

3 Ja

n-14

A

pr-1

4 Ju

l-14

Oct

-14

Domestic International

WHY THE COLUMBUS REGION?

§  Businesses view Columbus at a regional level

§  National and global trends and policies become reality at the regional level

§  Columbus Region partners and networks: §  International companies with local operations §  Service providers §  Local, state, and federal government agencies §  ED organizations at local, regional, and state

levels §  Contacts in foreign markets

Global Cities Exchange: FDI Pilot Metros

Seattle Portland

San Diego

San Antonio

Minneapolis-St. Paul

Columbus

MARKET ASSESSMENT

§  Detailed market assessments for exports and FDI

§  Methodology §  Data from Brookings, Columbus 2020 and other sources

§  Online survey of 135 current or potential exporters

§  In-person interviews with 28 foreign-owned companies

§  Most key findings applied to both exports and FDI

§  Key findings provide the basis for Columbus Global Connect objectives and strategies

KEY FINDINGS

1 Exports and FDI support high-quality job creation

$47,190

$65,049 $76,914

Columbus Region average

FDI economic base

Export-oriented economic base

Columbus Region average annual wages, 2014

Source: Columbus 2020 analysis of EMSI data

KEY FINDINGS

2 Columbus Region has underperformed in exports and FDI

Source: Brookings Institution

8.9%

4.8%

11.3%

5.4%

Export value share of output

FDI share of employment

Columbus metro U.S.

KEY FINDINGS

3 Regional exports and FDI are concentrated by both market and industry

Source: Columbus 2020

69% automotive industry share of Japanese firm employment in Columbus Region 96% Japanese share of Region’s FDI employment in automotive industry

KEY FINDINGS

4 M&A is a major source of FDI

M&A since 1991

Openings since 1991 Pre-1991 stock

1991 2011

Source: Brookings Institution

58% M&A share of the Columbus Region’s employment growth in foreign-owned firms since 1991

KEY FINDINGS

5 Networks and relationships matter

Reasons for selection of export markets

Source: Columbus 2020 exporter survey

34

25

24

Buyer reached out to us

Distributors in countries

Previous experience

11

8

8

Similar business environment

Political/economic stability

Proximity to U.S.

KEY FINDINGS

6 Exporters and FDI companies face a range of business challenges

Source: Columbus 2020 exporter survey, FDI company interviews

EXPORTERS §  Transportation costs

§  Foreign regulations

§  Knowledge of markets

§  Language and cultural barriers

§  IP and payment concerns

FDI §  Workforce

§  Business methods

§  Immigration/visa issues

§  Passenger air service

KEY FINDINGS

7 Fragmented service delivery limits export growth

More than 2 out of 5 respondents have not used export assistance...

Source: Columbus 2020 exporter survey

Yes 59%

No 41%

…but those who have rate it positively.

State government

agency

Federal government

agency

Nonprofit association or organization

Private sector

Poor Good Very Good Excellent

KEY FINDINGS

8 FDI leads to exports in the long term

14 12

6

Customer

Market access

Other

REASON FOR INVESTING IN U.S.  

82%

CURRENT EXPORT ACTIVITY  

Source: Columbus 2020 FDI company interviews

KEY FINDINGS

9 Companies are willing to engage around issues related to growth and competitiveness

TRADITIONAL OUTREACH

§  Job retention, hiring/layoffs

§  General business conditions

§  Reactive/Responsive

GLOBAL CONNECT

§  Business opportunities

§  Global context, industry and supply chain intelligence

§  Proactive/Predictive

GOALS AND OBJECTIVES

COLUMBUS REGION ECONOMIC GROWTH GOALS Generate 150,000 net new jobs Increase per capita income by 30%

Attract $8 billion capital investment Become a national ED leader

GLOBAL CONNECT OBJECTIVES EXPORTS FDI

Top 25 metro in export value 50% FDI share of pipeline

50 referrals to export-related services Diversify FDI to 55% non-Japanese

STRATEGIES AND TACTICS GLOBAL CONNECT STRATEGIES

STRATEGY TACTIC 1.  Reorient BRE activity Focus on business growth and competitiveness

2. Strengthen and diversify geographic markets

Shore up base and extend opportunities across Europe and Asia and across industries

3. Activate existing global networks Leverage influencers: Region’s multinational corporations and institutions, consultants, service providers, foreign agencies

4. Cultivate the next generation of global companies

Target emerging middle-market and fast-growing companies ready to export or invest

5. Create a more global business environment

Enhance awareness and fluency around global business opportunities

IMPLEMENTATION PARTNERS

Local ED organizations

Private sector §  Exporters, foreign-owned companies §  Industry associations, trade groups §  Providers of trade- or FDI-related

services

REGIONAL STATE NATIONAL

Columbus 2020 150 S. Front St., Suite 200

Columbus, OH 43215

columbusregion.com | 614-225-6063

THANK YOU Jung Kim