Transcript Slide 1

ABOUT US
Real estate is a strategic asset. Each and every new location decision carries cost, workforce, and
other implications. We provide our clients with the insight needed to quickly build solutions which
are flexible enough to evolve with the company’s changing needs.
SERVICES
United States and
North America
CRE Strategies
Location Strategies
Supply Chain Optimization
Europe - Asia
Caribbean and
Latin America
Incentive Maximization
Implementation Support
TECHNOLOGIES
LocationSelector.com
ICAincentives.com
A New Generation in Strategy Consulting
© 2013, Investment Consulting Associates
0
INCENTIVES AS A MAJOR FACTOR??
New York Times Analysis on Incentive Trends
The front page of the Sunday, December 2, 2012,
edition of The New York Times featured an analysis
of US incentive deals based upon Investment
Consulting Associates (ICA)’s online incentive
tracking tool and database, ICAincentives.com.
While examining incentive trends across the 50
states, the article “As Companies Seek Tax Deals,
Governments Pay High Price” notes that many
state programs do not identify specific corporate
beneficiaries, nor do they measure explicit return
on investment.
A New Generation in Strategy Consulting
© 2013, Investment Consulting Associates
1
ROLE OF INCENTIVES
 Investment Incentives are part of a broader strategy that
encourages overall economic development in your targeted
sectors. They are given:
– Because there supposed to be benefits from giving them
– Because a country or city believes that it must offer incentives to
compete with rival countries for FDI
– Because potential investors “expect” to be provided with some form
of incentive.
By observing the incentives given by governments to corporates, priority sectors can be identified and
competition for investments intensified
A New Generation in Strategy Consulting
© 2013, Investment Consulting Associates
2
GLOBALIZATION RESULTING IN RE-SHORING?
 Competitive and low risk investment climate, with relatively stable
wage inflation, increased productivity levels and a skilled labor pool
in North America compared to rapid rising labor costs and
seemingly overheating economies in South East Asia are shifting the
global landscape of FDI
 The increased productivity in combination with the strong
competitive environment plays a big role in the current “reshoring”
movement
 A Reuters/MFG.com survey among US companies:
– 15% have repatriated production back into the US in the past 2 years
– 40% of North American manufacturers with off-shored production are
investigating bringing that work back within the next year.
A New Generation in Strategy Consulting
© 2013, Investment Consulting Associates
3
WORLD IS NOT EXACTLY FLAT…
 Developing markets are becoming developed
 Emerging consumer markets creating “hot spots” for demand
and market impacts as a consequence
 Transportation and energy becoming highly relevant to the
sourcing and production of goods
 Direct access and cultural awareness also resulting in some
pressure to re-regionalize
A New Generation in Strategy Consulting
© 2013, Investment Consulting Associates
4
…BUT NEITHER IS IT BACK TO THE WAY IT WAS
 National borders becoming increasingly irrelevant
 Need to compete as others do
A New Generation in Strategy Consulting
© 2013, Investment Consulting Associates
5