FDI Alliance International - Issue 2 - Winter 2015

THE ULTIMATE MAGAZINE FOR SITE SELECTORS, RELOCATION & INTERNATIONAL TRADEWinter Issue 2015 | www.fdiallianceint.com DETROIT’S INVESTMENT POTENTIAL. Newly appointed President & CEO of the DEGC discusses Detroit’s bright future and his plans to help ensure the city’s sustainable growth. PLUS: PRACTICAL ADVICE • LOCATION SPOTLIGHT • WORKFORCE INCENTIVES • FOSTERING FDI IN THE U.S

TEXASPort Arthur2 FDI Alliance FDI Alliance | Winter Issue 2015

FDI Alliance 3“Firstly I would like to thank everyone who has supported Courtney Margetsonthis platform in making it the success it is today. A specialthanks to the International Economic Development Council CEO - Executive Publisherand Select USA for fully supporting the new Internationalmagazine. FDI ALLIANCEI’d also like to thank my family and close friends for theirsupport The Ultimate Platform for Site Selection, Relocation & After visiting the last annual IEDC conference in FortWorth Texas I was very encouraged to actually see and International Trademeet economic development directors and understand theexcellent work these special people are doing to attractnew business to there communities and also the strategiesthey have to ensure current business continue to expandand be retained.FDI Alliance has a mission to be the ultimate platform forsite selection, relocation and international trade in the UKand Europe. Our first issue can be found in first class andbusiness class of some of the leading airports and hotelsand will produce this magazine four times a year andcontinue to showcase the most lucrative opportunities forbusiness in North America and Canada to a very specialaudience in the UK and Europe.I feel very fortunate to be working in this industry as Ihave connected with some great people from America andCanada. I look forward to seeing you all at the next annualInternational Economic Development Council conferencein Alaska.”“Anything worth having doesn’t come easy, Anything wedo in life do it with a purpose.” FDI Alliance | Winter Issue 2015

4 FDI AllianceWelcome to Fayetteville &Cumberland County, North CarolinaSeeking an area with extensive resources, a ready 77pool of skilled, disciplined workers, and easy access to 95everywhere you need to be? Welcome to Fayettevilleand Cumberland County, North Carolina, where you’ll 85find everything you need. 85 40 Raleigh 40 85 95 77 40 26 Fayetteville 85 Charlotte 73 485 74 95 40The Fayetteville and Cumberland County area welcomesnearly all types of industries, but our assets and resources make us ideal for companiesin defense, manufacturing, food, logistics, and business and financial services.When you consider the skills of our highly educated, enthusiastic workforce, our sitesand buildings, the capacity of our utility partners, and all the benefits of doing businessin North Carolina, we perfectly meet the needs of these industries.If you do business in one of these industries, see what the Fayetteville and CumberlandCounty area has to offer. 1019 Hay Street, Fayetteville, North Carolina 28305 P: 910.433.6772 F: 910.483.0263 W: www.TheNCAlliance.comFDI Alliance | Winter Issue 2015

FDI Alliance 5CONTENTS» p.12 » p.32 6 IEDC» p.40 PRESIDENT OF THE IEDC - JEFF FINKLE DISCUSSES THE LINCHPIN TO FOSTERING FOREIGN DIRECT INVESTMENT. 8 SELECT USA OPENING THE DOORS TO INVESTMENT IN THE USA. 10 BILLION DOLLAR VISION PAUL WILLIES OULTINES JEFF VINKS PLANS FOR TAMPA BAY FLORIDA. 24 DETROIT OUTLOOK 2015 RODRICK MILLER DISCUSSES HIS NEW ROLE AS CEO AND PRESIDENT OF THE DEGC AND THE FUTURE OF DETROIT. 30 WELCOME TO KANSAS 38 WORKFORCE LABOR SHED 50 SOUTH FULTON COUNTY» p.16designed and edited by Gareth Julien - omgfxdesign.com FDI Alliance | Winter Issue 2015

6 FDI AllianceU.S. Economic Developers:The Linchpin to FosteringForeign Direct InvestmentJeffrey A. Finkle, President & CEO,International Economic Development CouncilOver the past fifteen years, the global economy has become ever for International Investment, and on a regional level, Europe wasmore complex, and businesses and communities of all sizes have the largest regional investor in U.S. in 2012, accounting for 71% ofbeen coping with shifting global roles, demographic changes, and all inbound direct investment.advances in technology that have provided both opportunities andchallenges. The economic development field was significantly While manufacturing has traditionally been the most favoredimpacted by globalization, and just like business leaders around industry among foreign investors, foreign firms also investedthe world, economic development professionals had to learn how heavily in the U.S. finance and insurance market, reaching $366to better balance global challenges in order to better serve their billion by the end of 2012, and investments in the scientific andlocality. The Great Recession further increased pressure on the technical services more than tripled in 2012 over 2011, reachingeconomic developers, stimulating them to place more emphasis $11 billion. Furthermore, in the wake of the Great Recession,on holistic strategies that tie in with foreign investment. growth of energy production in the U.S. has become a game changer, drawing more firms and investment to U.S. shores.As President and CEO of the largest membership organizationin the world for economic development professionals - the American-based companies additionally benefit from accessInternational Economic Development Council, or IEDC - I am well to almost 700 million consumers worldwide, based on the 20aware of how the budget limitations and economic disruptions free trade agreements secured with several locations aroundover the past few years interfered with the ability of our nation’s the world. The nation’s proximity to major markets east, west,economic development organizations (EDOs) to promote north and south allows for easy passage to global markets andthemselves internationally. And yet, despite these constraints, the forthcoming expansion of the Panama Canal – scheduled toforeign direct investment (FDI) in the U.S. increased by 3% in be completed by December 2015 – cannot be understated. With2008, even as the recession was in full force! Moreover, in both a new lane doubling the canal’s capacity, trade with Asia will be2009 and 2010 the U.S. attracted more FDI projects than any other enhanced and the entire U.S. port system anticipates an increasecountry, as global firms like Siemens, BMW, LG, Volkswagen, in operational efficiency.Mitsubishi and JBS increased their manufacturing presence inU.S. communities. By 2012, net U.S. assets of foreign affiliates These positive findings lead me to the conclusion that despitetotaled $3.9 trillion, and 2013 FDI inflows totaled $193 billion, a challenges, the U.S. remains a nation that knows how to adaptbump up from 2012’s $166 billion figure. and innovate through difficult periods. Significantly, economic development professionals in the U.S. have played a pivotal role inBrand America’s Assets maintaining a competitive environment that continues to attract investment, tourists and talent.The “AT Kearney 2013 FDI Confidence Index”, further demonstratesthat the U.S. soared ahead of BRIC nations - like China, Braziland India - to become the country with the top FDI prospectsglobally, as ranked by 302 companies representing 28 countriesand various industry sectors. Unequivocally, the U.S. market isstill a safer bet than many emerging economies when it comesto investments and the U.S. maintains a competitive advantage interms of intellectual property rights.Consistently ranking as one of the top destinations in the worldfor FDI today, the World Economic Forum places the U.S. as 3rdamong the top ten competitive countries, based on the positiveviews of the U.S. business climate, innovation capacity, and thestrength of the nation’s public and private institutions. The UnitedKingdom, the Netherlands, Japan, Canada, and France were thetop five investing countries in the U.S according to the OrganizationFDI Alliance | Winter Issue 2015

FDI Alliance 7 With the need for economic development professionals to be more innovative and versatile than ever before, we at IEDC are helping our 4,400 members to stay abreast of current events in the FDI-market. This know-how enables them to update their economic development toolboxes with cutting-edge strategies that they can use to create vibrant and healthy communities. IEDC disseminates best practice information to our members via professional development courses, networking, and advisory services, as well though newsletters and publications, so that the economic development community can learn from and emulate the successful initiatives of their peers. We collaborate with Federal agencies and programs, such as SelectUSA - which provides valuable information to firms who wish to locate to the U.S. - and think-tanks like the Brookings Institution that is helping U.S. based firms to increase their export capabilities.The Prowess of U.S. EDOs Economic developers are team-builders, strategists and deal- makers. Their capacity for change and reinvention has beenSuccessful and forward-thinking EDOs across the nation are vital to stimulating the U.S. economic recovery, and while everyapplying lessons learned from the past 15 years, and are vigorously company’s demands are different, EDOs remain the linchpin torevising and enhancing their incentive programs, particularly balancing business needs within a community. I remain confidentthose aimed at the foreign investor. Notably, as corporate leaders in America’s strength in the global marketplace, and reaching outcontinue to view their businesses globally, U.S. communities and to local EDOs is the best way to determine how to make a U.S.regions are striving to develop the most productive global supply relocation work for you.chains possible - from research and development, to distribution,to marketing and selling, to a quality workforce – in order toprovide businesses with a resilient local economic base.Today, many U.S. economic development organizations have Jeff Finkle - President & CEOincentives “toolboxes” that are designed to meet the demandsand expectations of targeted industries and businesses. These IEDCincentives may include cash grants and tax burden reductions,infrastructure improvement, as well as services like employee About IEDCrecruiting support and training, or the provision of temporary The International Economic Development Council (IEDC)space during start-up that can facilitate the implementation is a non-profit membership organization serving economicprocess for companies that are new to the U.S. market. developers. With more than 4,400 members, IEDC aims to spur economic wealth and well-being for individuals,In communities nationwide, U.S. EDOs are working in partnership businesses, and communities throughout the world bywith existing international companies, chambers of commerce, providing exemplary programs and services. From publicand local governments - as well as with universities for to private, rural to urban, and local to international, IEDC’scollaborative R & D and commercial development - to provide afertile environment for investment. Progressive high-performing members are engaged in the full range of economicEDOs are also incorporating sustainability into their economic development experience.development strategies, focusing on emerging industries likerenewable energy and recycling. Many EDOs are embracing For more information about IEDC see:innovative approaches such as Foreign Trade Zones (FTZs) and http://www.iedconline.orgthe EB-5 Investor Visa Program, as additional mechanisms forattracting foreign investment. FDI Alliance | Winter Issue 2015

8 FDI AllianceSelectUSA:OpeningtheDoorto InvestingintheUnitedStatesIn 2014, the United States was ranked location it needs to be successful. For investors considering the U.S.first for the second year in a row in A.T. market, SelectUSA is the single pointKearney’s Foreign Direct Investment Many companies from the United of contact at the national-level toConfidence index. According to A.T. Kingdom have already entered the provide information and data, respondKearney’s report: “The message here U.S. market – the stock of foreign to questions involving federal rules andis crystal clear: the United States is direct investment (FDI) in the United regulations, and help make connectionsback in the minds of global business States from the United Kingdom is far with state and local governments. Sinceleaders as the prime destination for larger than from any other country – President Barack Obama launchedtheir investment. Never in the 16-year standing at approximately $540.5 billion the program in 2011, SelectUSAhistory of this index has a country had in 2013. If you are an entrepreneur or has continued to work through U.S.such a positive net position.” an established company of any size – embassies and consulates around the large or small – and you’re ready to take world to assist – and warmly welcomeCompanies of all sizes can take the leap into the United States, this is – investors.advantages of the opportunities a great time to begin your exploration.the United States offers, including SelectUSA provides three key servicesaccess to 317 million consumers, a When approaching an investment for international investors. The firstbusiness-friendly climate, and a fertile decision, entrepreneurs need answers. is information counseling. We relayenvironment for innovation. Low energy For example – where do you find information on the competitive andcosts and the world’s most productive high-quality data about industries regulatory landscape, investmentworkforce are driving manufacturing and locations? How do you gather trends, and options for establishingcompetitiveness. Access to data and information from 50 states? What kinds and operating a business in the Unitedadvanced manufacturing techniques of service providers can help? Where States. SelectUSA can guide investorsare rewarding companies that locate are the right innovation resources? Or to resources on business incentives,production, along with research and suppliers? Or workers? Or incentives? grants, loans, and other programs.development, close to markets. World- How about incorporation, permits,class universities collaborate with the intellectual property protection? It SelectUSA also offers an ombudsmanprivate sector to create previously sounds overwhelming, but it does not service to help investors addressunimaginable technologies. Free trade need to be. SelectUSA is a responsive questions or issues involving federalagreements have enhanced access to resource that can provide guidance to rules or regulations concerning existingover 425 million more people. The size help investors find their way in the U.S. or potential investments. As part of theand diversity of the United States means business environment. SelectUSA program, President Obamathat nearly any company can find the created the Interagency InvestmentFDI Alliance | Winter Issue 2015

FDI Alliance 9Working Group, through which insurance, visas/immigration), as well At the SelectUSA 2013 InvestmentSelectUSA works across the federal as topics especially dear to the hearts of Summit, U.S. Secretary of Commercegovernment to coordinate investment- entrepreneurs, such as venture capital Penny Pritzker said, “We want to openrelated resources and ensure that and financing for expansion. that first door to making an investmentinvestors get answers in a timely and here in the United States. Clearly, ourtransparent manner. But investors don’t have to wait for an investment climate is strong. America event. SelectUSA team members can is open for business.”Finally, SelectUSA helps make be contacted through the nearest U.S.connections between investors and embassy or consulate, the SelectUSA For more information, visit:locations. Given the size and diversity call center, or www.SelectUSA.gov. Weof the U.S. market, combined with handle a broad range of inquiries fromthe federal structure of the U.S. investors, from complicated questionsgovernment, investors need to work about the nuances of a sector in awith state and local authorities. We specific location to a simple “how do Ican help you find the right people in invest in the United States?” However,economic development organizations there are certain subjects that come up(EDOs) across the nation, and we quite often.frequently organize events to bringEDOs and investors together.In March 2015, investors can explore For example, many investors are unclear www.SelectUSA.govopportunities from all corners of the about how to navigate the 50 states, theUnited States conveniently in one District of Columbia (Washington, D.C.), and follow us on Twitter atconference near Washington, D.C. The and the five U.S. Territories (Puerto @SelectUSA and @SelectUSATech.2015 SelectUSA Investment Summit Rico, Guam, the U.S. Virgin Islands,will build on the success of the sold- the Northern Mariana Islands, andout 2013 Summit – doubling the size American Samoa), which each have theirand increasing the opportunities for own regulations concerning businesslearning and connections. Registration conducted within their jurisdictions, aswill open in November. well as special incentives. SelectUSA can help investors understand theInvestors in the UK can also attend system and connect them with state,events hosted by the U.S. Embassy regional, and local officials, who areand consulates. For example, the happy to guide investors through theU.S. Embassy recently launched a local landscape.series of SelectUSA Tech seminars inLondon and Edinburgh, with Belfast There is one thing SelectUSA doesn’t do:coming soon on October 21. These charge investors fees for informationseminars focus on assisting tech start- or ombudsman assistance. As part ofups that have the potential to expand our effort to welcome investment andand benefit from the advantages of grow the economy, SelectUSA assistsboth the U.K. and U.S. markets. They investors as they consider the U.S.cover key practical issues (legal, tax, market. FDI Alliance | Winter Issue 2015

10 F D I A l l i a n ceJmTaeamffrkpVsaina’siknu’serbwbailenlirocanof-ordero. llar vision By Paul Willies Senior Commercial Real Estate AppraiserTampa, FL – Jeffery Vinik, The 55 year old Reportedly his biggest public relationstransplant from Boston Massachusetts hurdle in moving to Tampa was convincingswopped into Tampa on the west coast his wife of 27 years, Penny and four children;of Florida five years ago snapping up the Danny, Jared, Kyra and Joshua, to relocate!National Hockey League (NHL) TampaBay Lightning for a reported $110 million “It was a very hard decision, and I really dodollars – spending another $60 million in miss the markets,” Vinik said in a recentimprovements to the then named 19,205 article. “But I had the opportunity to reinventseat Tampa Bay Times Arena in Downtown myself and become a sports team owner.Tampa. That has evolved into buying a lot of land and now becoming a real estate developer. I had no idea I was going to move in this Previously The St. Petersburg Times, now direction, but the last five years has been known as the Tampa Bay Times bought the the most fun in my life.” naming rights to what was formerly the “Ice Palace” in 2002 under a 12-year deal valued Last year the arena was renamed the at about $30 million. Amalie Arena. Neither Vinik nor Amalie Oil’s Presdient Harry Barkett would discuss terms of the deal except to indicate it was for multiple years and, in Barkett’s words, cost a “substantial” amount.Vinik, acquired his wealth as a mutual fund Barkett joked about the company’s In December, Vinik amazed themanager in Boston at the helm of Fidelity anonymity, telling a packed audience on the city again by announcing a billion-Magellan in the 1990s, the largest fund unveiling of the name “I know what you’re dollar redevelopment of 40 acresanywhere in the world at the time. Later, thinking. You’re thinking, ‘Who is this guy? surrounding the arena in themoving down the street from Fidelity to Who is Amalie?’ “ Channelside District – droppingstart his own big, widely followed hedge the name Bill Gates as a leadingfund – Vinik Asset Management. It was Founded in 1903, Amalie Oil has been located partner. Well, not exactly Bill Gates,known for the aggressive trading style of on 30 acres in Port Tampa Bay since 1977 but Cascade Investments LLC,its manager. He made investors 93.8% in and has 250 employees. The family-owned controlled by Gates.his first 11 months and approximately 50% enterprise supplies motor oil and industriala year for the next three years. At the end lubricants to international oil companies,of 2000, Vinik returned investors $4.2 billion automotive retailers, distributors, retailers,and focused on managing his own portfolio. mass merchandisers and private label customers in 50 states and more than 100 countries.FDI Alliance | Winter Issue 2015

F D I A l l i a n ce 11Over the past two years, Cascade Besides the raw land, Vinik also bought the “You are, as they say, all in,” CityInvestments LLC has been purchasing Tampa Marriott Waterside Hotel & Marina, Councilwoman Yvonne Yolie Capin said tofarmland in northern Florida under the next to the arena, for $150 million. He bid Vinik on the approval of the plan. “And thatname of Lakelands Sands Florida, a more than $7 million in a bankruptcy auction makes all the difference.”subsidiary of Cascade. It recently bought to take over the troubled Channelside Baymore than 4,500 acres in Suwanee County Plaza, which he hopes to restore as a food A key element of the ultimate plan hinges onfor $27.96 million, the CNHI News Service and entertainment destination in the style of convincing a company — ideally a Fortunesaid. Gates’ company has also purchased the giant L.A. Live near the Staples Center 500 company — that it should relocate itsnumerous other properties in other areas in Los Angeles. headquarters to the area. He has plenty ofof Suwanee County, Hamilton and Madison land for a build-to-suit corporate campus,counties since 2012. and he’s ready to deal.Vinik, since his purchase of the Lightening Vinik has also offered to give an acre of his Mention this part of the plan and VinikTeam had been quietly acquiring property to the University of South Florida will launch into his pitch about business-surrounding property – with the value so it can move its medical school into a new friendly Florida and the great quality ofdropping by more than 50% between 2008 building. (Another donor has pledged $20 life in Tampa. “It’s not fully appreciated byand 2010 – Vinik saw an opportunity to million help construct it.) others,” he said. “I’m going to spend a lotsnap up the adjoining vacant land that had of my 2015 trying to spread that message.”previously been earmarked for a variety of Stepping up to the plate, Mayor Bobprojects that had gone south with the 2008 Buckhorn and the Tampa City Council Vinik still maintains a few connections torecession. recently approved to reimburse up to $30 his old life. He continues to trade his own million for the infrastructure of the area investment account, he said, but only a little.Vinik’s vision for – reconfiguring the street grid connecting He has held onto his limited-partnershipTampa’s urban core downtown with the Channelside district interest in the Red Sox.was born. to the east of the project, installing new underground water and sewer lines and In the meanwhile, Jeff and his wife PennyThe vision - nearly 3 million square feet of major utilities. The money will be paid have broken ground on new digs at St.commercial space on 30 acres (40 acres from downtown Tampa’s Community Armands Circle in Sarasota, just southwith the arena), encompassing a new hotel, Redevelopment Area funds. CRAs have a of Tampa, the Vinik’s will have, whenretail, office, residential element, parking state designation that allows them to use completed, a home valued at roughly $11.5and a collaboration with the University of locally generated money to fund projects million including land costs — and one justSouth Florida (USF) to relocate the medical within the CRA. The city would reimburse 59 miles from their $9.2 million (paid forschool downtown, the entire project to be half the costs from its share of the CRA; in 2012) 10,000-square-foot estate andbuilt over the next five to seven years, the other half is expected to come from residence overlooking the Palma Ceia Golfon the land that surround Amalie Arena. Hillsborough County’s share of the CRA and Country Club in south Tampa.Development costs will total more than $1 revenue.billion. Paul Willies is the owner and Senior The city will contribute no more than 20 Commercial Real Estate Appraiser forAerial rendering of the proposed percent of its CRA money into Vinik’s plans, Appraisal Development Internationaldevelopment. according to the agreement. (www.appraisaldevelopment.com) in Tampa, Florida – (Florida State-Certified General Real Estate Appraiser RZ 2762) his company appraises commercial real estate throughout the state of Florida and beyond. Appraisal Development International, Inc PO Box 1212 Tampa, FL 33601 Tel: 01 (813) 258-5827 FDI Alliance | Winter Issue 2015

12 F D I A l l i a n ce TEXAS The Lone Star StateIf Texas seems laser focused on creating jobs, it’s because The Lone Star State is top ranked for business climatethe Lone Star State loves to compete. and job growth, earning honors from national outlets like Forbes and MSNBC for economic strength and business-Without a doubt, Texas has been crushing the competition friendly policies. Chief Executive Magazine ranked Texasin the high stakes battle for jobs for more than a decade. the “Best State for Business” for the tenth straight year inTexas is home to just eight percent of the U.S. population, 2014. Texas consistently attracts employers from aroundbut 35 percent of all new private sector jobs in America since the country and world seeking a better place to start or2000. For the last fourteen years, Texas has been led by expand their businesses. A combination of low taxes, aGovernor Rick Perry, the longest serving governor in state smart and predictable regulatory structure, a fair courthistory. Under his leadership, the state has become the system, excellent business climate, strong infrastructurenation’s second-largest economy and top job creator. With and logistics network, relatively low production costs, anda GDP estimated at $1.48 trillion, the Texas economy would competitive incentive funding provides a stable base forhave been the 12th-largest in the world in 2013 if it were a the Texas economy, while the state’s skilled workforce isstand-alone nation, ahead of countries such as Australia and prepared to meet any need an employer can present. 2014South Korea. In an economy still recovering from recession, marks the 12th consecutive year Texas has led the nation inthe downturn has barely touched Texas, which has seen exports. In January, the state surpassed California, homecontinued overall economic and employment growth. Over of Silicon Valley, to become the country’s top exporter ofthe past ten years, Texas created over 2 million jobs, far technology. A key factor in that success is the state’s highexceeding any state in the nation. quality infrastructure, ranked #1 in 2014 by publications like Business Facilities.IMAGE: ECONOMY INFOGRAPHIC- SEPT 2014.PDF Texas is also a leading global destination for foreign direct investment (FDI). Due in part to the state’s strong economy, competitive business climate and central location within North America, more than 1,400 foreign corporations have ongoing operations in the state. Between 2009 and 2013, 475 foreign companies announced more than 600 separate business openings or expansions in Texas. When all of these projects are fully operational, they are forecast to generate 59,000 jobs and $43 billion in combined capital investment. Comparing U.S. states, Texas ranked No. 3 after only California and New York for total new FDI projects. However, in certain industries, like energy and chemicals, Texas led the nation in attracting foreign projects.FDI Alliance | Winter Issue 2015

F D I A l l i a n ce 13Incentives & • The Texas Enterprise Zone Program, which assistsSignature Legislation economically distressed areas of the state by enabling local communities to partner with the State to promoteTexas is investing in its future by offering competitive job creation and significant private investment. Approvedincentives to companies creating jobs and driving innovation projects are eligible to apply for state sales and use taxin the state. These state-level programs provide opportunities refunds on certain expenditures, with the level and amountto companies moving to or relocating within Texas for of the refund related to capital investment and jobs createdworkforce development programs, tax incentives, and grants, at the qualified business site.in addition to incentive opportunities at the local level. Underthe leadership of Gov. Rick Perry, the Texas Legislature has • Manufacturing companies can qualify for significantcreated and maintained this strong economic climate for tax exemptions, including state sales and use tax exemptionsTexas businesses and industries through measures such as: available to taxpayers who manufacture, fabricate or process tangible property for sale. Texas manufacturing companies may also be exempt from paying state sales and use tax on electricity and natural gas used in the manufacturing process.• The Texas Enterprise Fund, a “deal closing” fund • The Texas Economic Development Act, also knownthat is the largest of its kind in the nation. When a single as Chapter 313, which allows an appraised value limitationTexas site is competing against viable out-of-state options, to be extended to a taxpayer who agrees to build or installthe TEF provides a financial incentive to bring home projects property and create jobs in exchange for an eight-yearthat offer significant job creation and capital investment. To limitation on the taxable value of the property. The valuedate, the program has awarded $555.32 million in grants, limitation applies to the local school district maintenanceannounced 73,846 direct jobs, and generated more than and operations tax portion of the property tax and a tax credit.$23.95 billion in capital investment.• The Texas Emerging Technology Fund, which Texas Enterprise Fund (TEF)helps early-stage tech companies grow their ideas fromthe laboratory into the marketplace and helps recruit top IMTEhnAetGelraEpr:rgiesINestCF“udEneNdalTi-scIuVlosEseiSdngt–of2ua0nttd1r”a4co.tDf niOtesCwkijnodbsinatnhdeinnvaetisotnm, ethnet Texastalent to Texas universities, keeping Texas at the forefront to theof new technologies. To date, the TETF has allocated morethan $205 million to 144 early stage companies and $221 state. The fund is a financial incentive tool when a single Texas site ismillion to Texas universities. competing with another viable out-of-state option. To date, the TEF• Establishing the Cancer Prevention & ResearchInstitute of Texas (CPRIT) in 2007. Texans voted to authorize has brought more than 73,846 new jobs to the state and generated$3 billion in general obligation bonds to provide $300 millionin grants annually to fund cancer research, making CPRIT more than $23.9 billion in capital investment.the nation’s second largest source of biomedical funding. Texas Emerging Technology Fund (TETF)• Passing medical and lawsuit tort reforms to limit The Texas Emerging Technology Fund was created to advance thefrivolous lawsuits, provide greater access to healthcare, commercialization of new technologies and to help recruit toplower costs, and increase the fairness of the state’s legal research talent to Texas universities. The TETF has allocated nearlysystem. $205 million to 143 early stage companies, and nearly $220 million in grant matching and research superiority funds to Texas universities.• The R&D Tax Credit, reinstated this year, provides Additionally, since the inception of the TETF, more than $2.2 billion infranchise tax credits for Texas companies conducting additional investment from other non-state sources has followed onqualified research activities. to the TETF investment, more than quadrupling the amount invested by the TETF.• The state’s 2013 enactment of a version of theUniform Trade Secrets Act (UTSA), which expands the Skills Development Funddefinition of trade secrets and limits Texas businesses’ The Texas Workforce Commission administers the Skills Developmentlitigation costs. Fund, the state’s premier job-training program. The Fund awards grants to community and technical colleges who partner with busi- nesses to train new workers or upgrade the skills of their existing workforce. Texas Enterprise Zone Program Through the Texas Enterprise Zone Program, local communities partner with the State to promote job creation and significant private investment in economically distressed areas. Approved projects are eligible to apply for state sales and use tax refunds on qualified expenditures. FDI Alliance | Winter Issue 2015

14 F D I A l l i a n ce>>> Toyota established a new industry benchmark with a network of 21 parts and components suppliers integrated on site inINDUSTRY CLUSTERS & RECENT SIGNATURE PROJECTS San Antonio, in order to achieve quality and environmental improvements. In early 2014, two Toyota suppliers filedA key ingredient to Texas’ success is its comprehensive plans to invest a combined total of over $21 million buildingjob creation strategy focused on six key industry clusters: new manufacturing facilities at Toyota’s San Antonio plant.Advanced Technology and Manufacturing; Aerospace, Toyotetsu Texas (TT), an existing TMMTX supplier, is investingAviation, and Defense; Biotechnology and Life Sciences; $4.7 million to add manufacturing space to its existing facility.Information and Computer Technology; Petroleum Refining Arvin Sango Inc. (ASI), an Illinois-based mufflers supplier,and Chemical Products; and Energy. As a result of focusing plans to spend $16.6 million to build a new manufacturingstate economic development efforts on these areas, Texas facility at TMMTX and create at least 45 new jobs in Texas.has successfully expanded these industries and affiliated The ASI and TT projects should be completed by Januaryjob growth. Some recent significant industry cluster-related 2015.and other projects follow. AEROSPACE, AVIATION, AND DEFENSEADVANCED TECHNOLOGY AND MANUFACTURING Aerospace innovation continues to evolve in Texas since NASAToyota’s San Antonio truck assembly plant celebrated its commercialized space exploration, creating a new dynamic10th anniversary and its one millionth truck built in Texas in the industry. In early August 2014, the state of Texasin October 2013. In 2003, Toyota officials announced San announced a $2.3 million TEF award to Space ExplorationAntonio was selected as the site of the newest Toyota truck Technologies (SpaceX), which designs and manufacturesassembly plant and a $133 million state incentive package advanced rockets and space capsules, to bring the company’swas extended to the company. The $1.28 billion Toyota Motor commercial rocket launch facility to the Brownsville area.Manufacturing, Texas (TMMTX) plant officially opened and Contingent upon final approvals and required permits, thisbegan production of its Tundra full-sized pickups in 2006. facility will create 300 new jobs, pump $85 million in capitalToyota consolidated all Tundra truck production in Texas investment into the local economy, and serve as the nation’sin 2009 and Tacoma pickup production in 2010, meaning first commercial rocket launch facility.Toyota’s entire U.S. pickup truck production now takes placein San Antonio. In April 2014, Toyota Motor North America IMAGE: 2014-09-22-Brownsville-SpaceX-1(N.A.) announced plans to consolidate its three separateN.A. headquarters (HQ) for manufacturing (Kentucky),sales (California), and marketing and corporate operations(New York) to a new, state-of-the-art campus in Plano. A$40 million investment from the Texas Enterprise Fund willcreate nearly 4,000 new jobs and over $300 million in capitalinvestment. In addition, in April 2014, California-based ToyotaFinancial Services separately announced plans to move itsHQ to Plano.In April 2014, Gov. Perry announced Toyota moving North American State incentives bringing SpaceX Commercial Launch Facility, 300 Headquarters to Plano, generating 4,000 jobs. Jobs to the Brownsville Area. Biotech and Life Sciences Innovative and growing biotechnology companies continue to select Texas as a prime spot to locate or expand their businesses. In early 2014, Germany-based prosthetics firm, Ottobock, announced plans to relocate its North American headquarters to Austin. Also in 2014, California-based specialty pharmaceuticals giant, Allergan, a Fortune 500 company, celebrated 25 years of manufacturing in Waco with its third major expansion.FDI Alliance | Winter Issue 2015

F D I A l l i a n ce 15INFORMATION & COMPUTER TECHNOLOGY The largest single capital investment commitment for a TEF project is a multi-year refinery expansion by Motiva in PortApple and Facebook, two of the best known high-tech Arthur, announced in 2006. Saudi Refining, Inc. (a subsidiarycompanies in the world, have expanded major operations of Saudi Arabia’s Saudi Aramco) and Shell Oil Company (anin Texas as a result of the Texas Enterprise Fund. Facebook affiliate of the Netherlands’ Royal Dutch Shell) completedopened its Austin office in 2010 and doubled the facility’s their joint venture project in 2012, making the Motiva Portsize in 2011. The Austin office represents Facebook’s first Arthur Refinery (PAR) the largest refinery in the nation.major U.S. expansion and is its largest operations office inNorth America outside of its California headquarters. In ENERGY2012, Apple announced it was investing $304 million in anew campus in Austin that will create over 3,600 jobs. The Major energy companies operating in Texas includecampus will more than double the size of Apple’s workforce ExxonMobil, ConocoPhillips, Marathon Oil, and Bakerin Texas over the next decade, supporting the company’s Hughes. The natural gas industry boom in Texas has attractedgrowing operations in the Americas with expanded customer even more industry leaders. In February 2014, California-support, sales, and accounting functions for the region. In based Occidental Petroleum (Oxy) announced plans to moveApril 2013, Google announced that Austin was selected as its headquarters to Houston. Oxy also broke ground on a newthe third U.S. city to receive Google’s ultra-high-speed Fiber office complex in Midland in August 2014, which will servenetwork. And in 2014, TEF awards were extended to Fortune as its center for oil and gas operations in the Permian Basin.500 company Oracle, as well as Dropbox and Websense, allhigh-tech California-based companies expanding into or IMAGE: 2014-08-26-Midland-OxyGroundBreaking-2relocating to Texas.IMAGE: 2013-04-09-Austin-GoogleFiber-1 Governor Perry helps break ground on Occidental Petroleum Complex in Midland, Texas. Governor Perry joined Google Inc. in an announcement regarding the FINANCIAL SERVICES installment of Google Fiber in Austin, Texas. In July 2014, two TEF investments totaling $5.95 millionPETROLEUM REFINING AND CHEMICAL PRODUCTS were announced for The Charles Schwab Corporation (CSC), which is opening a new operations center in El Paso andTexas is home to 33 energy-related companies on the strengthening its presence in Austin. Combined, the projectsFortune 1000 list, including ExxonMobil, Phillips 66, Valero, will create more than 1,200 jobs and over $230 million inand BP. Houston, “The Energy Capital of the World,” is home capital investment. California-based CSC is a financialto more than 5,000 energy-related firms and accounts for services giant and Fortune 500 company.over 40 percent of the nation’s base petrochemical capacity.Top chemical companies operating in Texas include Dow From energy and financial services to commercial spaceChemical, Celanese, BASF, and Lyondellbasell. In the past innovation and automotive manufacturing, Texas is a landfew years, TEF awards have been extended to chemical of opportunity across many industries. Toyota, SpaceX,manufacturers Natgasoline, Dow Chemical, Kuraray Occidental Petroleum, and Charles Schwab are just aAmerica, and Ascend Performing Materials. few of the major companies that have come to Texas and benefited from the state’s award-winning business climate and principled leadership. These companies, and thousands more, understand that Texas really is Wide Open for Business. FDI Alliance | Winter Issue 2015

L1o6caFteDdI A1l9limaniclee s inland from the Gulf of Mexico, and less than 2 hours fromsea buoy to dock, is North America’s premier break-bulk and bulk terminal. Port ArthurThePortofWhether you are in town for business or traveling with “Port Arthur is in the early stages of a modern day economicfamily, you will appreciate and enjoy Port Arthur’s boom with several large projects involving the energyproximity to the Gulf and Louisiana. It is Port Arthur’s infrastructure are underway or proposed, the two largeststrategic location on the Texas/Louisiana border that being the Golden Pass and Sabine Pass LNG terminals.makes it a driving economic force in the region. Over the past several years, many companies have decidedThroughout history, Port Arthur and Sabine Lake has been to build in the community and call Port Arthur their home.an avenue for trade. Since its founding in 1895, the town was Reliable Polymer Services (RPS), SETPOINT, Lockwoodenvisioned as a center for trade and tourism. By 1957, Port International, PENTAIR, Team Fabricators, Tyco Wilfire, MPWArthur was known as the center of the world’s prosperous Industrial Water Services, JZ Russell Industries, Triangleoil refining facilities. Waste Solutions, Bio Medical Waste, Dashiell Dacon, just to name a few.Today, the Port Arthur Economic Development Corporationand industry leaders work together to promote economicgrowth and quality of life in Port Arthur.John C. Maxwell, entrepreneur and author of various bookson the topic of leadership, stated, “A leader is one whoknows the way, goes the way and shows the way. “Thesetraits are embodied in the PAEDC Board of Directors andits CEO, Floyd Batiste.“The Board encompasses business owners, business The staff and leadership of Port Arthur Economicmanagers, educators, and residents, whose common goal Development Corporation are available to assist you withis to boost and enable positive economic growth and a better economic incentives and hard work to make every effort toquality of life for all citizens of our community” says Batiste. help your business grow.“As CEO, I work closely with our Board to maintain a vigorousline of communication with businesses. For more information go to www.portarthuredc.org.“Port Arthur’s distinct history includes the petrochemical Port Arthur’s proximity to the Gulf not only makes it oneindustry, oil and gas companies, pipe fabrication, steel of Texas’ leading seaports, it also makes it a mecca formaking, warehousing, distribution, manufacturing, and outdoor adventure. Nature lovers and sportsmen can headgovernment services. “Our community has a diversified and to the beaches, wetlands or waterways for fun or sometalented workforce, and this makes us an attractive location of the best fishing and hunting in the region. Other areafor potential commercial businesses” according to Batiste. attractions include the Museum of the Gulf Coast with its“When you connect these factors with the City Planning and Jurassic to Joplin depiction of the history of the area. AsZoning Board’s willingness to expedite land development well as several historic homes, the Queen of Peace Shrineapplications, an exceptional transportation network and and Gardens and Pleasure Island.a utility infrastructure that is always being improved; itgives Port Arthur an upper hand when competing in the With a mild climate and a supercharged businessmarketplace for new business. atmosphere, Port Arthur can help you attain your goals and enjoy life while doing it.FDI Alliance | Winter Issue 2015

F D I A l l i a n ce 17The Port of Port Arthur is positioned to efficiently and effectively handle anytype of cargo from forest products, steel, project, and military to name a few.The Port of Port Arthur is the ultimate direct transfer facility for internationalcargo shipping and in the year 2000 an expansion that included all theoperating features demanded by the maritime industry.Less than two hours from sea to transit, the Port of Port Flloyd BaptisteArthur is North America’s ultimate direct transfer facility CEOpositioned on the Gulf of Mexico to competitively handleany type of commodity.The forest products industry wanted and got the finest transit shed to RoNoda McClain-Lee Marketing Directorprotect newsprint, linerboard, wood pulp, paperboard, plywood and lumber.To give them what they wanted, we not only duplicated the superior quality of Total Dock Length:our existing shed – we added extra-large hanger type doors (36 ft. wide X 24 ft. 3,102 feet (946 meters)high); state of the art lighting for ’round-the-clock safe traffic; an enclosed railand truck apron for all-weather operations; and a storm water drain system 2 Berth Dock Length:throughout the apron dock that includes 36 ft. X 12 ft. door gratings. 1,390 (424 meters)The metals industry wanted more open storage and rail accommodations. 3 Berth Dock Length: 1,712 (522 meters)What they got was an extension of the existing 50 car dockside capacity to 150rail cars for direct transfer; and asphalt surfaced open storage up to 18 acres. Apron Width: 100 feet (31 meters)Need RoRo capability? You’ve got it – 80 ft. wide with direct rail transferif needed. When you are tallying up all our assets, remember to include highsecurity that is built into the system that makes the Port of Port Arthur theultimate direct transfer facility and finest forest products transit terminal inNorth America.Truck Transportation: Convenient access to interstate highways. Ro/Ro Dock Width: 80 feet (24.39 meters)Port Equipment: The Port is equipped to handle any type breakbulk general Total Shed Storage:cargo, including, but not limited to: forest products; iron and steel products; 518,400 sq. feet (48,159 sq. meters)dry bulk cargoes; project and military cargo; and bagged and bailed goods. Open Storage:The Port is connected to the KCS Railroad providing 17 acres asphalt surfacedirect intermodal service to and from major markets ofthe United States and Canada. (68,795 sq. meters) Security: Fenced 3 sides and lighted beyond perimeter Port Rail System: 3 wharf tracks with up to 150 car capacityCall us for your cargo needs to and from all major markets in 2 shed tracks with up to 80 car capacity America, Canada and Mexico. 6 track storage yard with up to 140 car capacityFDI Alliance | Winter Issue 2015

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F D I A l l i a n ce 19homeWe’re theof your nextbig move.This is TexAmericas Center –an expansive business and industry resource.• 2,000 development-ready acres• 1,500,000 sq. ft. of industrial and commercial product• Abundant natural and human resources• Low utility costs• Multi-modal transportation network• Pro-Business communityKansas City St. LouisWichita Nas Tulsa MemphisOklahoma City Little RockDallasAustin ShreveportSan AntonioHouston www.texamericascenter.coFmD I A l l i a n c e | W i n t e r I s s u e 2 0 1 5107 Chapel Lane • New Boston, TX 75570 USA For more information, call 903.223.9841.

20 F D I A l l i a n ceLooking to expand operations to themid-south of the United States?Take a look at TexAmericas Center. Global industries in need of high valuespace turn to the innovative, value-driven real estate solutions offered byTexAmericas Center to meet changing market conditions and facilityrequirements. We have compiled the short list of key reasons your companyneeds to call TexAmericas Center its home.ACCESSIBILITY – KEY LOGISTICS CORRIDORSTexAmericas Center owns and operates one of the largest mixed use industrial parks in the United States,boasting more than 2,000 development ready acres of land and roughly 1.5 million square feet of commercialand industrial product, including more than 425,000 square feet of move-in ready buildings—all located withina free trade zone managed by TexAmericas Center. Located within 500 miles of 18 majorcommunities, at the crossroads of the Union Pacific and Kansas City Southernrail systems, and just off the Interstate 30 corridor and its connection withInterstates 49 and 69 – one of the fastest growing and most heavily Kansas City Nashvilltraveled passageways in the United States – TexAmericas Center ishighly accessible. Wichita Tulsa Memphis Oklahoma City Little RockTEXAMERICAS CENTER – FASTER MARKET ENTRYTexAmericas Center has the operating capabilities of a municipality, Austin Shreveportbut functions more like a traditional real estate developmentcompany. From controlling its own zoning and permitting processes San Antonioto sustaining the life cycle of public infrastructure on the complex,TexAmericas Center has the capability to lease, build-to-suite, or Houstonfacilitate Greenfield owner-constructed projects in a timely and efficientmanner. Leasing is streamlined. Government development processesare managed through a single point of contact. Customers benefit fromfaster market entry by resolving zoning, permitting, inspection, and state andlocal incentive programs through a single contact at TexAmericas Center.FDI Alliance | Winter Issue 2015 Kansas City St. Louis Wichita Nashville Tulsa Memphis Little Rock Oklahoma City

F D I A l l i a n ce 21 TEXAS – UNIQUE TO THE WORLD Fiercely entrepreneurial, pro-business, and pro-environment – it’s a reality for those doing business in the great state of Texas. Ranked by Forbes as having the #1 economic climate in the United States and #2 for continued growth aspects, Texas offers many advantages to firms seeking to establish a presence in a “right- to-work” state. Overall, Texas is ranked as a top 10 destination for business investment by Forbes and Site Selection Magazine due to its superior regulatory environment, lower overall cost of doing business and excellent quality of life. The Lone Star State is not slowing down: for the tenth consecutive year, as part of a CEO survey by ChiefExecutive.net, CEOs rated Texas the #1 American state in which to do business. TEXARKANA – A COMMUNITY TO WHICH YOU CAN BELONG TexAmericas Center is proud to call the Texarkana metro area its home. Convenient to population centers from the Midwest to the Gulf Coast – while separated from the over-developed and over-taxed areas where business growth is impacted, commerce can succeed with the strong support of the entire region. You will find a diverse community that is home to a skilled and motivated labor force of more than 400,000 value-centered citizens, invested in seeing their communities prosper. The surroundings are breathtaking, simultaneously peaceful and energizing. Exceptional cultural and recreational opportunities, coupled with a relatively low cost of living, contribute to high quality of life. Together, the area is a win-win for those in search of it all: work, play, learn, raise a family, and grow a business.le TexAmericas Center is committed to delivering enhanced efficiencies and reduced operating costs so businesses can grow margins and market share. Learn more at www.TexAmericasCenter.com or by contacting Eric Voyles at (903) 223-9841 and [email protected] FDI Alliance | Winter Issue 2015

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Detroit24 FDI Alliance Outlook 2015    ARTICLE                                    Rodrick Miller, the new president and CEO of the Detroit Economic Growth Corporation (DEGC) relishes the key role he is playing in the most dramatic turnaround of a U.S. city since New York City narrowly escaped bankruptcy in 1975. But as recently as seven months ago, he never dreamed he’d be in this position. I was the chief economic development agent for New Orleans, Louisiana when I learned that Detroit had an opening for a new leader at DEGC. I was very skeptical until I visited and saw what was going on and felt the tremendous energy here. Suddenly the job that ‘I would never want’ became the job ‘I had to get...’ FDI Alliance | Winter Issue 2015

F D I A l l i a n ce 25Miller arrived in Detroit as orange 15,000 new jobs, available apartments built in 1930 by Albert Kahn, and aconstruction barrels began marking are essentially all full, and office modern glass and granite structurethree major milestones Downtown: occupancy rates are climbing. nicknamed “The Cube.”•• The Thfienaflinaplhapsheaseofofa a $$227799 In 2009 Quicken Loans Chairman Gilbert’s aggressive marketing of hismmililliioonn rreennoovvaattiioonn of tthhee rriivveerrffrroonntt Dan Gilbert decided to build his properties, seeded by employees ofccoonnvveenntitoionncecenntetrer corporate headquarters in the heart companies he controls, has brought of downtown Detroit. A year later, thousands of young, casually dressed,•• The fTirhset pfihrsatsephoaf sae noefwa, $n1e4w0, impatient that market conditions were professionals downtown. A non-profit$m14il0liomnil,li6o.n5, 6k.m5 k(m4 (m4 im.)i.t)rtarmamlilninee not right to finance new construction, business association, the Downtownccoonnnnecetcintigntghetcheentcraelnbturasilnebsussdinisetrsicst Gilbert started moving executive staff Detroit Partnership has launchedtdoisttwrioctottohtewrokoetyhedrekveylodpemveelnotpmareenats into available space in Compuware’s “placemaking” strategies, such asaalornegasDeatrlooint’sg pDrimetarroyitt’hsorpourgimhfaarey, global headquarters building. Now he entertainment, food trucks at lunchWthooordowuagrhdfaArvee,nWueoodward Avenue owns that building, as well as 60 other and an artificial beach at Campus Downtown properties encompassing Martius Park, complete with canvas•• The coTnhsetrcuocntisotnruocftaio$n65o0f ma il$li6o5n0 836,000 sq. meters (9 million sq. ft.). beach chairs and occasional volleyballmspilolirotns asnpdoretns tearntdainemnteenrttadiinsmtreicntt As Gilbert describes it, he has simply matches. Visitors Downtown find thedaisntcrhicotraendcbhyorae2d0b,y00a02s0e,0a0t0asreantaatrheanta taken advantage of “a fire sale of streets full of pedestrians after work,twhailtlwbiell tbheethneewnehwohmome oefotfhtheeDDeetrtrooitit skyscrapers.” Gilbert has been filling too, when sports or entertainment drawRReeddWWininggsshhoockcekyeytetaemam. . those buildings with more than 10,000 people to 10 performance venues of employees from Quicken Loans and various sizes, from Ford Field, home ofThese big-ticket items are not the other businesses he owns or that the Detroit Lions Football team, to thebeginning of a transformation of rent space in his properties. Among intimate cabaret-style Gem Theatre.Detroit’s commercial and cultural the signature structures under thecenter, they are the culmination of a Gilbert-controlled Bedrock banner is Professional sports and pizza are theprocess that started slowly ten years One Woodward, which was designed pillars of the business empire of Mikeago and has been accelerating rapidly by Minoru Yamasaki, the architect of Ilitch and his family. Business entitiesin the last four years. In that time the former World Trade Center in New controlled by the Ilitches own Littleframe, companies moving to Downtown York City. Other gems include The First Caesar’s pizza, one of the top fiveor expanding there have added close to National Building, a limestone classic pizza companies in the country, the FDI Alliance | Winter Issue 2015

26 F D I A l l i a n ce Detroit Tigers Major League Baseball • Midtown — an area defined team, and the Detroit Red Wings b•y WayneMiSdttaotwenU—naivnearsreitay,deDfeinterodit National Hockey League team. The MbeydiWcaalyCnenStetartaenUdnaivheorstityo,f Dceutltruorital Ilitch family is driving the development inMsteidtuictiaolnsC,enintcelrudaindg tahehoDset troofit of the new entertainment district that IncsutiltutrealofinAsrttistutions, including the will surround the new multi-purpose event center and home for the Red Detroit Institute of Arts Wings. In all, the family is committed • New Center — an area north to investing close to $500 million in of•M idtowNn ewwithCaemnitxeorf t—echasntaartruepas, the arena and residential, retail and SntaotrethgofveMrindmtoewnnt woiftfhicaesmaixndofHteecnhry office buildings within a 45-block area. FosrtadrHtuopssp,itSatlate government offices Public investments will bring the total to $650 million. When it is completed, and Henry Ford Hospital Downtown Detroit is likely to have • Eastern Market — a historic the world’s greatest concentration di•s trict anEcahsorteedrnby aMfarrmkerts m—arkaet of sports and entertainment capacity anhdisctormicmedricsitarlicfot oadnpcrhooceressdorbsyaand within a walkable urban district, with difsatrrmibeurtosrsmarket and commercial a total of 144,000 seats and standing room in 10 venues. The district itself food processors and distributors will also bridge the gap between the • Corktown — Detroit’s oldest central business district and Midtown. re•s identiCalordkisttorwicnts —thatDentorwoith’sas aolddievsetrsresimdeinxtioalf deisnttrricetptrheantenuorwial With these two major investors cohmasmaedricviearlsaenmd irxeotafiel natcrteivpirtyeneurial committed to Downtown, dozens of other developers are successfully reactivating commercial and retail activity vintage buildings for office, residential • East Riverfront — an area in the and retail uses. One is building new pr•o cess oEfatsrat nRsifvoerrmfrionngtf—romanmaoresatly apartments on top of a parking deck ininduthsterpiarlotcoesrsecorfetaratinosnfaolr,mreinsgidferonmtial next to the recently renovated Westin anmdocsotmly minedrucisatlrdiaelvetolopremcernetational, Book Cadillac Hotel. Condo, loft and apartment housing in the Downtown residential and commercial and Midtown are essentially sold-out development – reflecting the growing popularity of Detroit as a destination residential Meanwhile, retail investments are also locale. 97% of Downtown and 95% of beginning to trend positive as a major Midtown apartments are occupied. regional chain superstore, Meijer Young professionals with bachelor’s opened a 17,650 sq. meter (190,000 sq. degrees living in downtown Detroit have ft.) $20 million store as the anchor to increased by 59% since 2000. the Gateway Marketplace, a $72 million shopping center, nearly 95% leased out The interest in the central business by national retailers. district has also sparked new development in five surrounding areas According to a recent real estate report, which are often referred to as Greater Detroit’s retail rental rates average Downtown, but each having a distinct $0.94 per sq. meter ($10.10 per sq. ft.), character: while office space rents at an average of $1.64 per sq. meter ($17.6 per sq. ft.), and industrial spaces are renting at an average of $0.32 per sq. meter ($3.40 per sq. ft.). For years, news media reports have focused on Detroit’s blight, crime and municipal fiscal woes. And it is true that the city of Detroit lost more than half its population since it peaked in the early 1950s. That has created a significant number of vacant lotsFDI Alliance | Winter Issue 2015

F D I A l l i a n ce 27or blighted houses across Detroit’s international river way, and a historyarea of 360 sq. km (139 sq. mi.). Huge of innovation in urban development.industrial buildings were left behind We are tapping into that to reshape andas manufacturing jobs dispersed to redefine what we call Detroit.”other parts of the U.S. and the world.And the city has just emerged from the Detroit Future City projected that thebiggest municipal bankruptcy in U.S. economic redevelopment of the city willhistory. These are significant issues, focus on seven primary employmentand to address them, a collaboration of districts that it identified within the cityorganizations led by Detroit Economic limits. Miller described the situationGrowth Corporation (DEGC) assembled this way,a team of experts to create a long-termguide for the city’s civic, business and “When you look at the city closely youcommunity leaders. They conducted can see where we have these areastwo years of research, collecting that are very likely to be generating thethe thoughts of thousands of Detroit majority of jobs going forward — someresidents, and published a report and areas are suited to manufacturing orplanning framework called Detroit logistics or global trade because ofFuture City (www.detroitfuturecity.org). their transportation links, others, like Downtown are going to concentrateRainy Hamilton is a partner in the service, professional and governmentDetroit-based architectural firm workers. Others will grow aroundHamilton Anderson Associates, which existing educational institutions andhas 20 years’ experience working in the health care facilities — ‘meds and ed’city and was part of the Detroit Future we call them.”City technical team. “What’s happeningin Detroit right now is completely >>>unique in the U.S. It is neither a simplerebuilding of what once was, nor isit starting from a blank slate,” saidHamilton. “Detroit has very strongassets in its land, its location on an FDI Alliance | Winter Issue 2015

28 F D I A l l i a n ceThe Mt. Elliot Employment District isthe single largest industrial districtby employment. A total of 1,700businesses in the district employmore than 10,000 people, morethan half of them in manufacturing,wholesale trade, and transportation/warehousing.SIZE (sq. km/acres) 12.9/3,203VACANCY (sq. km/acres) 1.7/423UNDERUTILIZED (sq. km/acres) 0.73/181VACANT & PUBLICLY OWNED2 10%INFRASTRUCTURE ASSETS This strategic approach to economic It is important to note that DetroitI-94, Detroit North Rail Yard and development is delivering results. is the hub of a state that hasFreight Rail, Coleman A. Young Faurecia, the Nanterre, France-based more transportation research andInternational Airport automotive supplier bet big in 2012 development than anywhere else in when it invested in a joint venture with the world, and European and AsianPLANNED INFRASTRUCTURE a local, woman-owned business. Its $29 companies are important players inINVESTMENTS Coleman A. Young million dollar facility will make parts the automotive sector here:International Airport expansion, for Ford Motor Company. It now holds aI-94 widening. reported $700 million contract with the • Michigan is home to 375 automotive automaker and is in the midst of hiring R&D centers, 120 of them are up to 500 total assembly workers. foreign-owned. Chrysler-Fiat is another company • Michigan has 419 foreign-owned building on its existing manufacturing motor vehicle or motor vehicle parts assets in Detroit. Two years ago it manufacturers invested $190 million in a Detroit plant to start building V-6 engines. It has also • According to the Center for Automotive moved its Great Lakes Business Center Research, between 2010 and July 2014, and some executive offices into the top automakers and suppliers invested two stories of a 100-year-old renovated $16.3 billion in Michigan, nearly $2.8 Neo-classical structure Downtown and billion of which came from 76 foreign renamed it Chrysler House. automotive firms from 20 different countries. In all, the global automaker has four manufacturing complexes in • Detroit is at the center of a the city employing 5,465 people and concentration of 315,000 companies encompassing 512,000 sq. meters. It and 5.3 million people within a radius is also strong in the region, with 13 of approximately 120 km. manufacturing facilities within 120 kilometers of Detroit.FDI Alliance | Winter Issue 2015

F D I A l l i a n ce 29• Within that circle are the headquarters 1. Plan. Detroit needs a detailed As Miller puts it, “Detroit can andof General Motors, Chrysler, Ford strategic plan to drive investment. Detroit should be a leader in the global nextMotors and 60 of the top 100 automotive Future City gave us a framework, and we economy. Using the key building blockssuppliers to North America. have to focus within that framework on of committed business leadership, strengthening and broadening targeted political will, and community“Michigan is recognized as the industries such as automotive, logistics, engagement, we can ensure theautomotive capital of the world for defense, renewable energy, IT, and strong economy that the people ofmany good reasons. Toyota is pleased to food processing. Detroit deserve. At DEGC we work hardconduct its North American engineering every day recruiting new businessesand research activities where the action 2. Partnerships. While DEGC and promoting the growth of existingis”, said Simon Nagata, President and primarily focuses on growing the businesses — not just for their own sakeCEO, Toyota Motor Engineering and economic base of the city of Detroit, there — but to create jobs and opportunitiesManufacturing N.A., Inc., speaking are 3 million people in the region, and for Detroiters, increase City revenues,to MICHAuto, a Michigan automotive our successes are all linked. That makes and improve the quality of City servicesindustry trade group. partnerships among governmental, and the quality of life for people who business, educational and cultural live, work or visit here.”There is no doubt that the rebound of organizations within the region essential.the U.S. automotive industry over thelast four years has given Detroit andthe surrounding region a significanteconomic boost, but that is not thewhole story.• Employment in manufacturing, 3. People. Detroit residents stilland the associated fields of suffer from poverty in numbers that aretransportation and warehousing completely unacceptable: 38% of adultsaccount for 36,000 jobs in the city — and 58% of children live below povertyabout 15% of the total workforce. levels. Unemployment at 27% cannot be sustained, either. The successful• The region has the highest strategies we’ve had in a few key areas ofemployment rate in six years, with the city have to be adapted and applied to2.3 million people employed in the 10 neighborhoods, so no one is left behindcounties within 120 km of Detroit. in Detroit’s resurgence.• Manufacturing labor rates are 4. Publish and Post. Detroit hascompetitive with other parts of the a great story to tell, and we need to owncountry, as CNC machine programmers it. We have to respect history, but lookearn an average of $24.52 per hour and towards the future as we let the worldgeneral manufacturing production in on one of the best-kept secrets ofworkers earn an average of $18.83. economic revival in the world.• R a t e s fo r i n fo r m a t i o n 5. Population. Detroit has room fortechnology talent also compare well a lot more people, and it really needs thewith national averages, with software tax revenue from a larger population todevelopers earning an average of support the level of service people expect.$44.60 per hour. Our goal in economic development is to create jobs and amenities that bringMiller is enthusiastic about Detroit’s people back to the city.potential for investment, and hedescribed what he calls “The Five Ps”that are necessary for a sustainablerecovery: FDI Alliance | Winter Issue 2015

30 F D I A l l i a n ceWelcome to Kansasthe Sunflower StateLocated in America’s heartland, Kansas is a great place Strategic Locationfor business. With a friendly tax structure, a skilledand educated workforce, outstanding infrastructure, Kansas has inherent advantages that stem from a locationlow operating costs and superb quality of life, the in the center of the U.S., which gives businesses convenientSunflower State has a business environment that access to nearly every major market domestically andsupports growth. Thanks to these advantages, a internationally. Recognizing that this location must begrowing number of companies are calling Kansas supported by quality infrastructure, Kansas has built ahome and hiring and investing in the state. system of roads and railways that is unmatched.Pro-Growth Environment Kansas ranks third in the U.S. in total road mileage, including major transportation arteries such as Interstates 70 and 35,Kansas has focused on building one of the most pro-growth which allow the state to connect with the North America Freebusiness environments in the United States. In order to Trade Agreement corridor. The state also boasts many milesencourage the growth of small businesses, which are the of outstanding highways connecting Kansas communitiesengines of the state’s economy, Kansas recently eliminated and businesses.income taxes for limited liability companies, limitedliability partnerships, Subchapter-S Corporations and sole Companies that need to ship freight quickly to clients inproprietorships. This helps reduce operating costs, giving markets around the world will find an excellent railroadsmall businesses in Kansas increased ability to invest in new system in Kansas. The state’s 4,776 miles of track accountequipment and technology and hire more skilled workers. for 2.23 percent of all U.S. railroad miles. More than 15 rail carriers provide freight service to virtually anywhere in theIn addition, Kansas offers a payroll withholding tax retention state. Together with the highway system, Kansas’ qualityprogram and sales tax exemptions and recently lowered railroads ensure that businesses in the state have next-daypersonal income taxes. The state has no franchise tax, freight delivery to nearly 70 percent of the U.S.inventory tax or personal property tax and is a right-to-workstate. BNSF Railway recently opened on of the largest intermodal facilities in the country near Kansas City. A business park at the facility has ample warehouse space for manufacturers who require immediate access to this state of the art intermodal.FDI Alliance | Winter Issue 2015

F D I A l l i a n ce 31 Diverse Industries Kansas is widely recognized as an agricultural leader, but the state has a wide array of thriving industries. Key sectors experiencing rapid growth include alternative energy, distribution, bioscience, advanced manufacturing and value- added agriculture and food processing.Skilled Workforce Advanced manufacturing has long been a strength for Kansas. Wichita, known as the “Air Capital of the World” forOne of Kansas’ most valuable assets is its workforce. its prowess in aviation manufacturing, leads the way in thisKansans have a reputation as hard workers, and thanks to industry. With more than 70 percent of the world’s embeddedexcellent schools, they are also recognized for their skills. aviation fleet manufactured in Wichita, the city is also home toThe educational system includes seven major universities the National Institute for Aviation Research where 70 percentand 26 community and technical colleges, which enjoy strong of all Federal Aviation Administration composites research ispartnerships with industry in the state. conducted. That research has helped develop manufacturing expertise benefitting companies in a number of industries such as plastics, agricultural equipment manufacturing and equipment for the energy sector. With plentiful natural resources, Kansas has become a leader of the wind energy industry in the U.S. The state ranks third in the country for the percentage of in-state electricity generation from wind power and has one of the most rapidly growing wind energy sectors of any state. In addition, biofuel and biomass companies are leveraging the state’s agricultural background to expand in KansasAn initiative called Workforce Aligned with Industry Demand Bioscience is another growing sector, particularly aroundallows employers to help design training programs at the Animal Health Corridor, which runs through the hearttechnical colleges to ensure that graduates have the skills of the state. This corridor includes international researchrequired to succeed in the workplace. The program links organizations and companies, and accounts for more thangraduates who obtain industry recognized credentials with 30 percent of total sales in the global animal health market.job opportunities at participating companies. Food processing companies have found that Kansas’ extensive agricultural industry provides convenient access to raw materials. These businesses also gain a competitive advantage from the numerous respected research organizations in the state dedicated to studying the food supply. With industry leaders such as Unilever, Mars, Hostess and Cargill recently opening or expanding plants in the state, Kansas continues to enjoy strong growth in this sector. Building upon Success Many other initiatives to develop human capital have Businesses find that Kansas has the entrepreneurial spirit,earned Kansas national recognition. A Career and Technical friendly business climate and high caliber workforce neededEducation initiative allows high school students to take to spur innovation and growth. It is no wonder then that manypostsecondary technical education classes at no cost. Other successful companies, from small businesses to some ofworkforce development programs include an engineering the largest corporations in the world, call Kansas home.initiative to increase the number of engineering graduates These businesses and their employees have found that thefrom Kansas universities. Sunflower State is an ideal place to live and work. FDI Alliance | Winter Issue 2015

32 F D I A l l i a n ceCentrally located on theI-70 St. Louis to Denvercorridor just two hoursfrom Kansas City, inthe heart of the scenicFlint Hills, Junction City,Kansas has been of thefastest growing areas inthe state.The area offers a diversepopulation with a richhistorical and culturalbackground. Fromits ornate limestonedowntown and west loreand to abundant naturalresources, Junction Cityis a great place to liveand do business.FDI Alliance | Winter Issue 2015

F D I A l l i a n ce 33The town’s history and diversity comes from its partnership withneighboring Fort Riley home of the Army’s First Infantry Division,the Big Red One and the Combat Aviation Brigade, the most wellequipped air combat force in the nation.Junction City’s population is 26,000 with an additional 13,000 inGeary County. That figure does not include the 55,000 militarypersonnel, families and civilians at Fort Riley that have a nearly$2 billion annual impact on business in the area as well as beinga source for recruiting disciplined and highly efficient employees.Junction City is easily accessible for logistics, manufacturing anddistribution operations with exits on 1-70 and U.S. highway 77.Manhattan Regional Airport with daily flights to Dallas and Chicagois a short 12 miles away. The area is rail served by both UnionPacific and BNSF. Junction City is a logical choice for ancillarybusinesses related to the National Bio-Agricultural DefenseFacility, NBAF soon to be built in neighboring Manhattan.For more information about relocatingyour business to Junction City, [email protected] or call 785-762-2632. FDI Alliance | Winter Issue 2015

FIVE-STAR34 FDI AllianceLOCATION.In Topeka, Kansas, you’ll find everything your company hungers for. Our central location inAmerica’s breadbasket makes access to raw materials convenient and distribution of your final producta piece of cake. The icing on the cake is 500 of acres of shovel-ready available sites in commerce parks.Topeka also has the talent. Our highly skilled workforce already has experience in the food processingsector, saving you time and money in training and education. We think you’ll find our menu of servicesand benefits has something to satisfy everyone.To find out more, contact GO Topeka at 785.234.2644 or visit www.GoTopeka.comFDI Alliance | Winter Issue 2015 TOPEKA, KANSAS, USA

F D I A l l i a n ce 35OHIO:Optimism& StabilityJohn R. Kasich was sworn in as Ohio’s 69th he helped companies secure the resources they needed to succeed and create jobs. Hegovernor on January 10, 2011. In his inaugural was also a commentator for FOX News and aaddress he called on Ohioans to come together Presidential Fellow at his alma mater, The Ohioto make the Buckeye State stronger and more State University.prosperous for all.As Governor, John Kasich’s top priority is to Kasich is the author of three New York Timescreate a jobs-friendly climate so Ohioans can best-sellers: Courage is Contagious; Stand forget back to work. By closing an $8 billion budget Something: The Battle for America’s Soul; andshortfall without a tax increase, reducing taxes by Every Other Monday, which was published inmore than $3 billion, cutting wasteful spending 2010 and focuses on the importance of faith inand eliminating red tape, Ohio is getting back making both everyday choices and life-changingon track. Unemployment is going down, more decisions.Ohioans are finding work, and all three credit Known for being straightforward, optimisticrating agencies now give Ohio a “stable” credit and energetic, Kasich brings a commonsense,outlook. results-oriented focus to the Governor’s Office.Kasich is no stranger to taking on and solving His Lt. Governor is Mary Taylor, a CPA and thebig problems. He served as a member of former Ohio Auditor of State, who reinforces thisCongress from central Ohio for 18 years and, as outlook and mission.the chairman of the House Budget Committee, Kasich, 62, is a 1974 graduate of The Ohio Statehe led the effort to balance the federal budget University and lives in Westerville with hisfor the first time since 1969 and helped enact wife, Karen Waldbillig Kasich, and their twinhistoric welfare reform.After leaving Congress in daughters, Emma and Reese.2000 and running for President, Kasich workedas a managing director in the InvestmentBanking Division of Lehman Brothers, where FDI Alliance | Winter Issue 2015

36 F D I A l l i a n ce AccelerAte your success in licking county, ohioLicking county offers the most comprehensive growLickingcounty.orgcoLLection of business growth resources fornew and deveLoping businesses in the midwest. with a diverse workforce, accessible transportation, exciting financial incentives, an exceptional quality of life and pro-business attitude, it’s easy to do business in Licking county, ohio. we take a truly collaborative approach to economic development, bringing multiple organizations and individuals together to accelerate your success. the grow Licking county cic provides a single, comprehensive resource to help businesses expand or relocate to our area. we are the front door of the community—welcoming development, connectingdan evers resources and increasing opportunities.740.345.9757 ext. 3 we invite you to learn more about our pro-business community,50 west Locust street diverse inventory of available facilities and our attractive job-F D I A l l i a nnecwear|k,Woihniot e43r 0I5s5s u e 2 0 1 5 and shovel-ready sites.

F D I A l l i a n ce 37Licking County, Ohio has an impressive story to tell International Appealto, and about, its business community. A story oftalent, accessibility, affordability, and collaboration These factors, and many others, position the communitythat is making a difference for area businesses based favorably with international firms considering expansiondomestically and internationally. in North America. Licking County is home to companies engaged in manufacturing and applied technology that areLong a center of innovation, manufacturing, and technology, headquartered in the countries of Germany, the UnitedLicking County never wavered in its commitment to these key Kingdom, Italy, and the Netherlands. Japanese and Canadiansectors. Accordingly, the county has seen substantial foreign firms also have significant operations in the community.and domestic investment activity over the past two years, Additionally, Licking County businesses have active tradingas its resources remained focused to provide a competitive partnerships – both export and import - with companiesadvantage to companies poised for growth. Licking throughout Europe, Asia, the Middle East, and beyond.County is increasingly recognized as a premier location Many of these organizations have operated in Lickingfor manufacturing and technology-enabled development. County for many years. Two international firms – Ohio MetalNumerous factors contribute to this, including: Technologies and THK – recently expanded manufacturing operations.• An extraordinary, diverse workforce. New andexisting Licking County businesses consistently comment After an extensive multi-state review process, xperion Energyon the quality and work ethic of the community’s employees, & Environment, a company within the Avanco Group, selectedand the innovative, collaborative training and recruitment Licking County for its new, 50,000-square-foot facility inresources available. These resources include customized Heath’s Central Ohio Aerospace & Technology Center. Thistraining programs and protocols developed in partnership investment marks the organization’s first North Americanwith Career Technical Education Center of Licking County, manufacturing and sales presence. The facility will produceCentral Ohio Technical College, and The Ohio State University composite automotive tanks for the compressed natural gas– Newark branch. Each of these entities enjoys on-going market, and will begin production this spring.collaborative partnerships with employers throughoutLicking County;• A location in the center of the Greater Columbus,Ohio region with 10-hour truck access to nearly 50% of theU.S. population and markets as well 33% of the Canadianmarket. The community offers exceptional access to majormarkets. A transportation network including direct accessto interstates, multi-lane state routes, air and rail serviceenhance transporting both people and product;• Cost-effective sites, facilities, and development Roland Schillo, who will lead the new Licking Countyoptions offered by innovative, collaborative development manufacturer, noted that this is “…an ideal location forfirms. These varied location options are further enhanced our new U.S. facility because of its strong reputation inby creative state and local incentives and financing options. the manufacturing sector, and also its proximity to key automotive customers,…We look forward to growing ourThe community has committed to coordinating access to, operations and workforce in Licking County.”and deployment of, these and other resources for businessessuccess through GROW Licking County Community Over $300 million has been invested by international andImprovement Corporation. This public-private partnership domestic firms within the community, over the past twoprovides a single point of contact for all development-related years. These commitments represent tangible marketassistance, simplifying the process and maximizing local validation of a growing realization. Licking County, Ohio is aand regional resources. The organization facilitates client’s location of choice, committed to simplifying success for itssite selection processes and provides on-going support to business partners.community businesses, at no charge to the companies withinLicking County. FDI Alliance | Winter Issue 2015

38 F D I A l l i a n ceMSAs Don’tTell theWhole StoryExpanding firms often say skilled labor is one of themost important factors determining where they locatetheir next operations. Although most firms know theyneed accurate labor data, they often don’t consider theimportance of using an accurate labor shed that defineswhere they will be drawing workers. Bowling Green 45 Minute Drive-time* Bowling Green, KY MSAPopulation 427,576 125,953 Median Age2 37.4 33.5 Labor Force Size (Age 16+)3 209,028 66,040 Armed Forces Labor Force3 445 62 Veterans, Age 18-643 17,739 5,167 Median Household Income2,3 $43,662 $43,504 Mean Commute Time (minutes)3 23.9 19.8 No High School Diploma3 32,709 7,480 High School Graduate3 84,031 20,141 Some College, No Degree3 47,181 12,855 Associate’s Degree3 16,874 4,942 Bachelor’s Degree3 27,961 11,625 Postgraduate Degree3 15,481 6,742 Source: JobsEQ®1. Census 2010, unless noted otherwise2. Medianvalues for certain aggregate regions (such as MSAs) may be estimated as the weighted averages of the median values from the composing regional units.3. ACS 2009-2013* This region contains any ZCTA (zip code tabulation area) partially or fully within the drive-time threshold.FDI Alliance | Winter Issue 2015

Both metropolitan statistical areas (MSA) and a specified F D I A l l i a n ce 39mile radius around a location can be inaccurate, leading tocostly worker shortages or excluding a location that may FDI Alliance | Winter Issue 2015be ideal. A drive-time analysis, such as that available inChmura Economics & Analytics’ JobsEQ® tool, is neededto prevent such problems.Three examples illustrate the need to use drivetimes to measure a labor shed.A firm located in the center of Isle of Wight County, Virginiawould overstate the talent it could draw if they used theVirginia Beach-Norfolk-Newport News MSA or a 50-mileradius to define its labor pool. Almost 2,100 machinistswork in the MSA and nearly 2,300 work within a 50-mileradius of the firm location. However, the presence of theChesapeake Bay, its tunnels, and the James River limitthe number of workers available within a 45-minute com-mute—only 620 machinists work within that drive time.Similar shortages are found with most occupations. About900 structural metal fabricators and fitters work in theMSA and nearly 960 are within a 50-mile radius, but lessthan 300 work within a 45-minute drive time.The opposite problem occurs for a firm located in thecenter of the Akron MSA in Northeast Ohio. Almost 2,000machinists work in the Akron MSA. Because this MSA isclose to the Cleveland MSA, a 60-minute drive time for afirm located in the center of the MSA identifies a muchlarger pool of nearly 11,000 machinists. The larger laborpool is true for all occupations. About 1,400 applicationsoftware developers work in the Akron MSA but nearly7,000 work within a 60-minute drive time. Nearly 4,000bookkeeping and audit clerks work in the Akron MSA andover 21,000 work within a 60-minute drive time.In this third example, it is important to measure the fulllabor shed rather than stopping at state boundaries. A45-minute drive time from a location in the businessdistrict of Bowling Green, Kentucky flows into Tennessee.As a result, the labor force jumps from 66,040 to 209,028and the number of people with a bachelor’s degree morethan doubles from 11,624 to 27,691 (see the accompanyingtable).The bottom line is that drive-time analysis is crucial forexpanding firms to ensure that their labor force needs willbe met.

40 F D I A l l i a n ce Oklahoma: The State of SuccessGovernor Mary FallinLocated in the center of the U.S., Oklahoma is where it all The hard work is paying off. Here are just a few recentcomes together – where a pro-business governor, great headlines:quality of life, low cost of doing business, business-friendlypolicies and more unite to brand the state as a global • Boeing recently announced plans to consolidate crossroads. the majority of its defense services and support work in Oklahoma City, bringing 900 new jobs to the state. This The Oklahoma of today is woven from the heritage and marks the third time in four years that the company history that launched this great state. More than 100 years has relocated jobs to Oklahoma.ago, individuals came from across the U.S. to start a new lifeon the Great Plains. They did not come because it would be • GE is under construction on a $110 million easy – they came because there was vast opportunity. That Global Research Center that will be dedicated tostory is still being told by the businesses that operate within advancements in the oil and gas sector. The project will our state of success. result in the creation of 125- high-tech engineering jobs.Since taking office in January 2011, Oklahoma GovernorMary Fallin has led the charge for pro-business policies • Multiple pro-business policies have been – creating even greater opportunities for success. In that signed into law, including an overhaul of the workers’ time, Oklahoma has ranked among the leading states in GDP compensation system from a judicial-based to an growth – quickly outpacing the nation and reaching 4.2% administrative process, dramatically reducing the (2012-2013), compared to 1.8% nationally. Pair the rising costs to businesses. In less than two years since it per capita income with the creation of more than 100,000 was passed, Oklahoma employers have been more jobs since 2011 and Oklahoma is cementing itself as the than $200 million in cost savings.place for business. • Oilfield services company Baker Hughes “We’re a little bit like Batman. He became a superhero announces plans to open two manufacturing centers, by choice, by strengthening himself, by preparing himself creating 675 jobs in Oklahoma City and Claremore, and by doing the right things. Oklahoma is the same way,” Okla.said Oklahoma Secretary of Commerce, Larry V. Parman.“We have no superpowers – no great lakes, no oceans, no • Belgian aerospace company, ASCO, is making beaches and no Rocky Mountains – so we’ve taken steps to a $60 million investment and bringing 250 jobs to strengthen ourselves, prepare ourselves and be extremely Stillwater, Okla.competitive in this marketplace.”FDI Alliance | Winter Issue 2015

F D I A l l i a n ce 41The state focuses its economic development efforts onfive major ecosystems – Aerospace, Agriculture andBioscience, Energy, Information and Financial Services, andTransportation and Distribution.Oklahoma is Soaring: Aerospace & DefenseThe state is home to many research institutions in areas suchas military training, unmanned aerial systems, mechanicalengineering, and radar and sensor research. Oklahoma hasmore than 120,000 workers employed in the aerospace &defense ecosystem, and STEM jobs are expected to increaseby 22 percent by 2017.“Oklahoma stands apart for many reasons. Number one, ithas a governor who is incredibly supportive. She has comeup with an economic development plan for the state andhas identified aerospace as one of the five ecosystems, soshe’s putting up a lot of personal political capital, backed bythe Legislature, and giving a lot of attention to our industry,”said Steve Hendrickson, Director of Government Relations,Boeing. “Several of my fellow executives have said thatOklahoma may be the most business-friendly environmentin which we operate.”Oklahoma is Fertile Ground: Agriculture & BiosciencesOklahoma’s agriculture and bioscience workforce growthis higher than the national average. This is a result of ourlow cost of doing business, with business-friendly tax laws,a skilled labor force, well-established infrastructure andabundant natural resources.The state has more than 500 bioscience-related organizationsand is a major research hub. Research organizations locatedin Oklahoma include the National Weather Service, theOklahoma Medical Research Foundation, the UniversityResearch Park and the Samuel Roberts Noble Foundation. >>> FDI Alliance | Winter Issue 2015

42 F D I A l l i a n ce “You have to have talent. You have to have to have people who know IT, cooling infrastructure and power infrastructure ” said Mike Wooten, Operations Manager, Google Inc. “The career tech infrastructure in Oklahoma is robust and works well. The state can tune the workforce to the needs of industry through the framework of its career tech schools.” Oklahoma is on the Move: Transportation & DistributionOklahoma is Full of Energy: Energy As home to the intersection of I-35, I-40 and I-44, Oklahoma is the crossroads of America. We are home to three majorOklahoma is the best place on earth for oil and natural gas inland ports, extensive railways, 149 public-use airports andinvestments, according to the 2012 Global Petroleum Survey a growing metropolitan transit system. With nearly 115,000conducted by the Fraser Institute. Many of the world’s largest miles of public roads and 150 miles of inland waterway, it’scompanies already call Oklahoma home: Devon Energy, no wonder transportation and distributions companies likeChesapeake Energy, GE, Sandridge Energy, Continental BNSF Railway, Melton Truck Lines and many top airlines,Resources and Baker Hughes. including American and Southwest, operate in Oklahoma.Oklahoma is powering the world with industry-changing “We are makinginnovation. The state is expected to see an increase of 31,000 connections andenergy-related jobs by 2017 and is on track to be the second-largest wind energy generator by 2030.“Collaboration is key to leading the unconventional resource going beyond.”revolution. In Gov. Fallin and the people of Oklahoma, we’vefound excellent partners,” said Jeff Immelt, Chairman &CEO, GE.Oklahoma is Plugged In: Information & Financial ServicesOklahoma’s economy and business-friendly economicpolicies allow financial services companies to thrive.Combine that with the fact that power costs in Oklahoma are20 to 30 percent lower than the national average and it’s easyto see why information and financial services companiesoperating in Oklahoma include Farmers Insurance, Bankof Oklahoma, Arvest Bank, Blue Cross Blue Shield, StateFarm, Verizon, Google, Hewlett-Packard, Dell and others.FDI Alliance | Winter Issue 2015

F D I A l l i a n ce 43The State of Motivation“Locating in Oklahoma is one of the best decisions you “If there’s a movecan make for your company. Just ask industry leaders or expansion inwho have chosen to become part of our community, likeGoogle, General Electric, Dell, Goodyear, Macy’s, andKoch Industries,” said Gov. Fallin. “All of these globallyrecognized brands are benefitting from their work in astate that values their business and is working hard toproduce an economic climate conducive to their growthand success.”Expanding or relocating an international business to a your company’snew market demands speed and flexibility. Oklahoma’s future, considerunique Foreign Direct Investment Team specializesin expediting the site selection process and providingconfidential one-stop assistance.Our services include: Oklahoma,”• Expert, global business professionals encourages Gov• Personalized, coordinated site visits Fallin. “It will• Customized incentive analysis be one of the• Visa assistance best business• No-cost/low-cost training assistance decisions you’ve• State and local partnerships ever made.”• Export assistance• Supplier/partner identification• Workforce recruitment and hiring• Regulatory and permitting assistance• Foreign entrepreneur support FDI Alliance | Winter Issue 2015

44 F D I A l l i a n ceFDI Alliance | Winter Issue 2015

Economic and Community DevelopmenFDtIDAlilriaencceto45r- Jim MasonWyohuaat icmoutontaritetrsaacntdintaerlgkectitinyd?ustries do panhandle, with a downtown full of unique shops and only a 7% vacancy rate. Elk City is the fastestOur target countries are: England, Ireland, France, growing micropolitian in Oklahoma, 7th fastestGermany, Belgium, and Norway as well as Canada growing micropolitian in America, with a 7.8% growth rate in the last three years.and Latin America. What makes elk city the perfect placeWhere do you see the most international in Oklahoma for international trade?investment coming from?Elk City is located in the Heart of the Anadarko Oil Elk City, Oklahoma is located in the middle of Americaand Gas Basin with over 140 oil and gas companies on Interstate 40, a main East/ West Federal four lanedhaving a presence in our community. Most of our Highway and West of Interstate 35 which is a major fourinternational investments are associated with oil laned Federal North/South Highway. While quite inlandand gas exploration, production and servicing. we are only 5 hours by highway from America’s mostWe also have a logistics distribution center (Bar-S inland water Port at Catoosa near Tulsa Oklahoma.Foods) located in Elk City that is headquartered Elk City is only 18 minutes from the Oklahoma SpaceMexico. Elk City has a Solar Pump and Supply Port and 90 minutes West of Will Rogers Internationalcompany that has additional offices in Central Airport. Thus we are well situated for logisticsAmerica. Superior Fabrication Incorporated is a companies, manufacturers and distribution centers.local manufacturer of pressure vessels that hasthree operations in Elk City and ships internationally.bWehttaetrstthraeteeglkiecsitdyocyoomumhuanvietyininpl2a0c1e5t?oAs our two established industrial parks are full, weare just putting the finishing touches on our newest,the Big Elk Industrial Park, which has 130 acrescomplete will all utilities with immediate access torail and Interstate 40. Elk City is located in an ideallocation for wind energy production and is hometo Elk City I and Elk City II Wind Energy Centerswith 100 turbines producing 200 megawatts ofpower which has facilitated Elk City working withWind Energy industries and seeking to locate windturbine and component manufacturing companies.Elk City is developing expertise with UnmannedAerial Systems and Precision Agriculture and thestate of Oklahoma offers a Quality Jobs Cash BackFinancial Incentive for manufacturing companiesthat locate in our state. Oklahoma also offers nocost customized workforce training for companiesthat locate in our state, through Western TechnologyCenter which has a campus in Elk City.Elk City is the Retail Shopping Center of WesternOklahoma and the eastern part of the Texas FDI Alliance | Winter Issue 2015

46 F D I A l l i a n ceThere comes a time when you know you have to stop, leave the office demandsbehind and retreat. For many ‘A’ type personalities the addictive energy ofachieving and maintaining success will supersede any annual sojournersunless they are planned in advance or they are at breaking point.Thankfully there is a lifestyle trend that is emerging around corporations - aslow shift that recognises that we can achieve our goals with less struggle,more fun and balance in our lives. The smart executive is doing less butachieving more.In the fashion world there is a common adage of ‘less is more’ when creating aneye catching fashion statement. This philosophy is moving into the corporateworld as it to recognise the need to achieve results but not at the expense ofoverstressed burnout executives.With more and more A-listers including Angelia Jolie, Victoria Beckham andOprah Winfrey revealing how lifestyle choices such as mindfulness, meditation,crystal wearing and retreats are an integral part of their life. The stereotypicalvision of a hippy is a thing of the past and with corporate heads of HuffingtonPost, Arrington Huffington and business magnate Rupert Murdoch coming‘out’ and proclaiming this less struggle, achieve more mantra - an esteemedmovement has begun.It’s official this lifestyle preference is synonymous with success and fortune.For those who need some help to kick-start this lifestyle rebrand, Holidaysto Feed your Soul, bespoke lifestyle travel consultants, are at hand to craftunique Caribbean breaks. With a careful selection of hotels and experiencesto help executives and leaders unwind, relax and renew their mind and body.Creating lasting experiences and making travel dreams come true is a creativeprocess for their in-house lifestyle experts at Holidays To Feed Your Soul. Theysay ‘each client’s needs are unique’ and our ‘objective is to use our imaginationwhen creating lasting memories’ FDI Alliance | Winter Issue 2015

F D I A l l i a n ce 47What Feeds Your Soul? Creating bespokeCaribbean escapes that rejuvenate,recharge and refocuses executives cantake on a variety of forms. When designingthese exclusive breaks the question - whatis it that makes you come back alive? – isat the centre of the design process.• If it’s a love of music - then let yourhair down and join the outdoor MusicFestival in St Kitts• If getting active is the best way torelease your tensions then a soft adventureitinerary in the British Virgin Islands is theanswer• Could it be a need to getaway fromcity life? Then experience rural living ona luxury Eco farm in St Kitts whilst youconnect with nature• Joining a wellbeing retreat on thespice island of Grenada will rebalance themind and body• If technology is taking over your lifethen experience a ‘digital detox’ in PetiteSt VincentWith their carefully crafted itineraries withyour needs in mind, the old paradigm ofworking around the clock will slowly driftaway as you watch the sunset go down.By Jackie G Michaels - Modern Lifestyle Expert, TV panellist,entrepreneur and fun enthusiast Holidays To Feed Your Soul A luxury lifestyle tour operator that creates exclusive Caribbean themed escapes with you in mind. All air holidays are ATOL protected by the Civil Aviation Authority t: 020 8357 0648 e: [email protected] FDI Alliance | Winter Issue 2015

48 F D I A l l i a n ceGEORGIA:no.1 state forbusinessGeorgia’s international investment team offers confidential continues to aggressively pursue opportunities thanks to Theand no-cost services to companies looking to establish Georgia Competitiveness Initiative, a business-governmentor expand business operations in the United States. In partnership developing a blueprint for 21st century growth.addition, we make international business partnerships asolid two-way street by connecting the world’s key markets Georgia has the infrastructure to speed access to domesticto Georgia. Whether you are looking for investment or trade and international markets. Atlanta’s Hartsfield-Jacksonopportunities, we have 11 markets located throughout International Airport simplifies travel to more than 75Europe, the Middle East, Asia and the Americas, each staffed countries and 150 U.S. cities daily. Four major U.S. interstateswith a team of experienced business professionals to serve allow you to reach 80 percent of U.S. markets in two daysyou. or less.Georgia consistently receives high marks for its business Georgia’s two deepwater ports, Savannah and Brunswick,climate, with Site Selection magazine ranking Georgia serve all major ocean carriers and 100-plus truckingNo. 1 in 2013 and 2014. Georgia consistently stands out in companies. The state’s extensive rail systems also integratelife sciences, entrepreneurship and technology, earning with Savannah, the largest intermodal hub in the Southeast.countless accolades in the past few years. Georgia values education. The state’s universities, collegesIt’s no surprise that 17 Fortune 500 headquarters and 31 and technical colleges produce 50,000-plus future employeesFortune 1000 companies call Georgia home. Georgia makes each year. Georgia’s university system is one of the largest init easy for firms to grow while keeping costs low. Companies the U.S.; moreover, colleges and universities in the Atlantahere enjoy a low corporate tax rate (6 percent) that applies to region rank in the top 10 in enrollment, degrees conferredincome earned in state. They can earn tax credits for creating and 20 other measures of educational strength. The technicaljobs, upgrading or expanding, research and more, as well as college system also offers Quick Start, one of the nation’stax exemptions for purchases and inventory. The state also top-ranked workforce training programs.has incentives to encourage the creation of small businessesand entrepreneurial ventures.Georgia’s Department of Economic Development has on-staff Georgia has an abundance of high-quality, affordable labor.experts in more than a dozen industries who can advise on The state’s hourly manufacturing wage in 2010 was nearly 11expansion strategies and provide information on wages, tax percent lower than the national average. As a right-to-workbreaks, incentives and business costs. Georgia’s Centers of state, Georgia also has the second-lowest union membershipInnovation provide growing companies access to university rate in the U.S.research, commercialization resources, matching grantsand potential investors in six industry clusters. The stateFDI Alliance | Winter Issue 2015

F D I A l l i a n ce 49KEY INDUSTRIES IN GEORGIA Georgia welcomes international business. Enfinity Corporation, KIA Motors and Porsche Cars North America • AEROSPACE are among the more than 3,500 international firms that own • AGRIBUSINESS and maintain facilities and offices in the state. And 65-plus • ARTS nations operate consulates, trade offices and bi-national • AUTOMOTIVE chambers of commerce in Georgia. • CONTACT CENTERS • DATA CENTERS With offices located throughout Asia, Europe, the Middle • DEFENSE East and the Americas, Georgia’s Department of Economic • ENERGY & ENVIRONMENT Development has relationships with corporate and • ENTERTAINMENT government leaders around the world. Trade representatives • FINANCIAL SERVICES can help companies build valuable partnerships to ensure • FOOD PROCESSING companies succeed in a global marketplace. • HEADQUARTERS • INFORMATION TECHNOLOGY Georgia has a lifestyle and standard of living that’s hard • LIFE SCIENCES to beat. Its low cost of living makes it very affordable for • LOGISTICS companies and their employees to relocate. Georgia’s • MANUFACTURING relatively moderate climate – including its four well-defined • TOURISM seasons – is as diverse as its landscape. Georgia offers something for everyone. Outdoor enthusiasts enjoy pristine beaches, wondrous forests, majestic mountains and magnificent rivers and streams. Sports fans support six professional sports franchises, as well as the University of Georgia, Georgia Tech and other school teams. Creative organizations comprise the state’s fifth- largest industry sector, and Georgia’s arts scene ranges from the comprehensive Woodruff Arts Center in Atlanta to award-winning regional theatre, museums and orchestras in communities throughout the state. FDI Alliance | Winter Issue 2015

50 F D I A l l i a n ce South FultonUnincorporated Economic Development Initiative A New Era UnfoldsA tough-minded, team approach locate near other satisfied firms. Our Focusto economic development New business attractions willis spreading optimism and want to seek out local businesses Services of the Unincorporatedopportunity in unincorporated to get their feedback on the area;” South Fulton County Economicsouth Fulton County. says Art Brown, Special Projects Development Initiative include Coordinator and responsible for business retention and expansion,All around south Fulton County Retention and Expansion. attraction and recruitment, businessare opportunities for economic development, and connections todevelopment. Lock in some This all-embracing approach is strategic partners. This umbrellaallies along the way. That is the working. Within its first two years, includes everything from providingessence of a winning economic the Initiative’s efforts spurred customized site selection analysisdevelopment strategy that has investment exceeding $102.5 and fast tracking permitting andmade unincorporated south Fulton million, 61% of it linked to new zoning, to technology transferCounty a continuing success story. projects or companies and 39% and helping companies pursue representing growth and expansion procurement opportunities.“Having attractive assets and among existing businesses. Totalresources is critical to promoting jobs created or retained: 583. Based on the area’s historicaleconomic growth, no question,” strengths, projected growthsays Edward A. Nelson, Jr. (CEcD, factors and committed resources,FM, HLM). “Experience also teaches the Initiative has set its sights onus that with economic development, these industries and commercialwinning often hinges on building targets: advanced manufacturing,business and community support logistics and transportation,for resolving the uncomfortable, renewable energy, entertainment,sometimes unspoken issues.” medical research and technology, automotive, aviation, equestrian,Nelson is director of the restaurants and retail, hospitality,Unincorporated South Fulton County family oriented entertainment andEconomic Development Initiative; a cultural options, and knowledge-Fulton County sponsored effort to based entrepreneurs.promote investment in areas thatlie outside the borders of southFulton’s eight municipalities.“Having a successful or satisfiedexisting industry is paramount tocreating a successful recruitingstrategy. New businesses want toFDI Alliance | Winter Issue 2015