Transcript Document

Attracting FDI
Sustaining Competitiveness – the West Midlands
economy in a global contest
6th July 2012
Glenn Barklie
Head of Location Benchmarking
fDi Intelligence
Financial Times Ltd
Overcoming imperfect information
• Track record in the industry
• Economic characteristics (cost v quality)
• Key advantages
• Facilitation
Based on: Harding and Javorick, ‘Roll out the red carpet and they will come: Investment promotion and FDI
inflows’, Columbia FDI Perspectives, No. 72, June 18, 2012
WM accounts for 6% of UK Regional FDI
2533
South East
876
697
North West
498
385
297
272
266
265
242
239
238
Northern Ireland
South West
North East
East Midlands
0
500
1000
1500
2000
No. of FDI projects
2500
3000
Source: fDi Markets from the Financial Times Ltd January 2003 - May 2012 (www.fdimarkets.com)
Sector
Industrial Machinery,
Equipment & tools
Software & IT services
Financial Services
Transportation
Automotive OEM
Automotive Components
Business Services
Hotels & Tourism
Electronic Components
Plastics
Avg
No. Projects Capex (£, Avg Jobs
Mn)
Companies
40
4
37
36
30
29
23
19
17
17
15
15
14
7
20
44
63
8
7
51
5
11
63
28
121
216
95
68
99
22
41
27
22
23
12
16
17
8
13
13
Source: fDi Markets from the Financial Times Ltd January 2003 - May 2012 (www.fdimarkets.com)
Automotive OEM manufacturing plant: Quality/Cost matrix
200
High Quality, high Cost
High Quality, low Cost
Q
u
a
l
i
t
y
West Midlands
South East
South West
East of England
Scotland
East Midlands
Wales
Northern Ireland
100
Low Quality, low Cost
Low Quality, high Cost
0
0
Cost
100
200
Source: fDi Benchmark, from the Financial Times Ltd (2012)
General
business
environment
Labour
availability &
quality
Costs
Investor
Living
environment
Industry
cluster
Infrastructure
Investment promotion
• Understand the market
• How investors perceive your location
• How investors should perceive your location
• Marketing materials
• Enquiry handling
• Devotion