investmentinward paul wookey chief executive locate in kent
TRANSCRIPT
Attracting inw
ard investm
ent
Paul WookeyChief ExecutiveLocate in Kent
Content
Context – what is inward investment?Methodology- is there one?Locate in Kent’s experience The future
Inward
Investment
Attracting new investment to an area– FDI = Foreign Direct Investment– Indigenous = UK
Supporting existing businesses to expand and make further rounds of investment
UK Structure
UKTI
RDA
Sub-regional or county
UKTI - FDI only
-DTI
-Embassies
-Consulates
SEEDA- FDI only
- Network of overseas offices
Locate in Kent -FDI and UK
Why?
• Developing a competitive national/local economy in a globalmarket place
• Aims• Attract high value mobile investment• to attract quality jobs and higher earnings• R & D, higher productivity• Multipliers Microsoft Europe estimate 1 direct job = 30
indirect jobs• Main objective is to attract new investment and
create/safeguard jobs in key sectors
Where from
? 0
50
100
150
200
250
300
350
400
450
500
2002/03 2003/4 2004/05 2005/06
US
Canada
Germany
France
India
Japan
China
UK Inward Investment Projects By Country
Source: UK Trade & Investment Note: Years to end March
By category 2001/2 -
2005/6 (UK) 0
200
400
600
800
1000
1200
1400
2001-02 2002-03 2003-04 2004-05 2005-06
New Expansion M&A (Inc JVS)
By operation 2005-2006
(UK)
Services - 486
Manufacturing - 288
R&D - 164
Headquarters - 151
Distribution - 95
Contact Centres - 21
E-Commerce - 15
Global/UK Trends
Manufacturing projects are being lost to Far East, East Europe and IndiaServices projects also being lost to India etcBut, an increase in projects from India and JapanAmerica (US & Canada) ‘up and down’China an opportunity and threatGermany and France main European sources despite their economies
Locate in Kent
Company Ltd.by G’teeBoard of DirectorsEstablished in 1997Budget £1.5m Private/public partnership-wide range of funders15 staff-key skill sets - research, marketing, business developmentBrokerage/partnership to win investmentProblem solving, influencing productAftercare
Achievements
1997-2006
330 successes (companies assisted)16,600 direct jobs created23,200 direct and indirect jobs created7,000 jobs retained2005-6, cost per job £588,successes per employee 4.2, the highest everAnnual benchmarking and Impact analysis
Context
Achievements
1997-2006
0
10
20
30
40
50
60
97-98 98-99 99-00 00-01 01-02 02-03 03-04 04-05 05-06
No. o
f Suc
cess
es
0
250
500
750
1000
1250
1500
1750
2000
2250
No. o
f Job
s cr
eate
dSuccessesJobs
Job creation
Number of Jobs Created and Retained per Year
0
500
1000
1500
2000
2500
97-98 98-99 99-00 00-01 01-02 02-03 03-04 04-05 05-06
Num
ber
Jobs CreatedJobs Retained
Sector
Successes by Sector, April 97 - July 2006
15%12%
12%12%
8%7%
7%6%6%
3%3%
7%3%
0 10 20 30 40 50 60
Other*
Creative Industries
Food & Agriculture
Life Sciences
Construction & Property
Retail & Wholesale
Paper, Printing & Publishing
Transport & Logistics
Engineering
Financial Services
Manufacturing
Business Services
ICT
Number
Origin
Successes by Country, April 1997 - July 2006
3% 4%9%
3%
5%
13%63%
Rest of the WorldAsia and SE AsiaRest of EuropeGermanyFranceUSAUnited Kingdom
Methodology
‘To market to every company would require amassive resource and be an incrediblewaste of time and effort. Resources have tobe focused on companies with the highestpotential for investment in a particularlocation’Oco Consulting
Methodology
Market/sectorresearch
Lead Generation
Lead validation
Meeting prospects
Proposals & Business case
Negotiations
Decision
Aftercare
To develop strategic position
Target companies/investors
Introduce proposition
Implementation
Aftercare – best leads are often existing investors
How?
Hot spot campaign
Advertising
Direct mail
Commuter mailing
website
Case study
Abbott Laboratories
Case study
7,000 employees worldwide, 5,400 in R & D135 facilities worldwide-60 countriesAbbott Murex, Dartford, employed 285 in R & D and manufacture of diagnostic kitsPurchased 2.5a site, £39m investment, doubled size of plant125+ new scientists bringing total employment to 410 - 80% graduates
Evolving Kent
New communities-growing populationNew quality commercial developmentsFast new train services to LondonNew International Station and services to EuropeOlympics 2012
Ebbsfleet International
Station
Eastern Quarry
Ebbsfleet Valley
Domestic
services
Growth areas
115,000 new homes over 10 years 100,000 new jobs over 15 yearsNew sustainable communities in North Kent (Thames Gateway) and AshfordRegeneration in East Kent
Conclusion
Increasing globalisation and competition Competition from emerging countries-Latin America, India, ChinaSmaller projects/more services projectsPotentially greater merger of trade development and Investor development at national levelCan any area afford not to make efforts to attract investment?