Transcript NABE – Foreign Direct Investment a regional perspective Sieb Hoogstra, OCO Global 16 September 2009

NABE –
Foreign Direct Investment a regional perspective
Sieb Hoogstra, OCO Global
16 September 2009
Agenda
1. Introduction
2. Global FDI
3. USA regional FDI
4. How to respond?
2
Introduction
Some facts
Per year approximately 10,000- 15,000 FDI projects
A very competitive market
Attracting FDI has many advantages
–
Higher paid jobs
–
Direct + indirect jobs
–
Cluster building
and even outward FDI has positive effects ...........
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Global FDI
OCO Global
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Global FDI - Destinations
Global FDI
6%
6%
7%
34%
Asia-Pacific
Western Europe
Rest of Europe
8%
North America
Latin America & Caribbean
Middle East
Africa
16%
24%
Asia and Western Europe are large receivers of FDI
North America attracts 8% of FDI, but is source of 25% of FDI
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Global FDI - Destinations
FDI by Sector
1592
Financial Services
Software & IT services
1493
5432
Business Services
Real Estate
Machinery, Equipment & Tools
1164
Metals
Communications
Hotels & Tourism
880
Transportation
Coal, Oil and Natural Gas
793
534
548
552
563
Other
580
Over the last decade services have become more important in FDI
Upcoming sectors such as Renewable Energy, Pharma/Biotech
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Global FDI – Top destination cities 2008
Source : A New Investment Paradigm - OCO Global 2009
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USA regional FDI
OCO Global
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Introduction
Structural reasons to invest in USA :
–
Market (size of NA market, purchasing power, …)
–
Competitiveness (productivity, flexibility of labor market, world class universities
& R&D, capability to attract international talent, …)
–
Innovation (technology/organization/commercial, …)
Which make USA a “must be” location
Economic reasons to invest in USA :
–
Globalization (technology and no expansion on home markets)
–
Conversion rates (US as “low cost“ location)
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Introduction
Challenges:
Economic crisis
–
Uncertainty about markets, financing, ...
–
Protectionism
Opportunities:
Improved image USA
USA taking lead on upcoming sectors
USA first out of the recession ....
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Top 10 destination states global FDI
(2003-Q22009)
Source : fDi MarketsTM – OCO Global
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Top 10 destination states by world region
(2003-Q22009)
Source : fDi MarketsTM – OCO Global
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High growth inward FDI to the USA 2003 - 2008
No of Projects
2003
No of Projects
2008
Percentage
Increase
Real Estate
2
23
1050
California (11), Texas (10), New York (9)
Alternative/Renewable energy
4
45
1025
Texas (14), California (11), Illinois (9)
Communications
14
42
200
California (42), Texas (24), New York(23)
Industrial Machinery, Equipment & Tools
21
61
190
North Carolina (24), Georgia (23), California (20)
Financial Services
28
81
189
New York (78), California (57), Texas (28)
Transportation
8
19
138
Texas (14), Florida (9), Illinois (7)
Business Services
20
47
135
New York (66), California (31), Illinois (23)
Software & IT services
51
103
102
California (127), New York (75), Texas (44)
Textiles
28
50
79
New York (83), California (41), Florida (18)
Electronic Components
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30
76
California (19), Michigan (14), Texas (11)
Sector
Top 3 States for Sector (Number of Projects
2003-2008)
Source : fDi MarketsTM – OCO Global
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Top 10 source states global FDI (2003-Q22009)
Source : fDi MarketsTM – OCO Global
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High growth outward FDI from the USA 2003 -2008
No of Projects
2003
No of Projects
2008
Percentage
Increase
Alternative/Renewable energy
6
43
616
California (38), New York (20), Virginia (9)
Real Estate
31
151
387
Colorado (78), California (69), New York (53)
Biotechnology
14
44
214
California (67), Massachusetts (35), New Jersey (19)
Transportation
33
85
158
Tennessee (72), Georgia (62), California (50)
Machinery, Equipment & Tools
49
126
157
Texas (84), Connecticut (76), Illinois (63)
Textiles
43
105
144
California (105), North Carolina (70), New York (63)
Aerospace
20
25
125
Illinois (35), Connecticut (25), North Carolina (13)
Beverages
22
49
123
Georgia (92), New York (41), California (15)
Communications
76
169
122
California (298), New Jersey (81), Illinois (69)
Financial Services
113
249
120
New York (548), California (95), Illinois (68)
Sector
Top 3 States for Sector (Number of Projects 20032008)
Source : fDi MarketsTM – OCO Global
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How to respond?
OCO Global
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Introduction
Responses to the crisis by companies:
–
Postponement of expansion projects
–
Spreading risk
–
Risk averse market entry
–
More research and decision time
–
Tough negotiations
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Introduction
How to address the challenges?
–
Aftercare
–
More targeted positioning
–
Pro-active company approach
–
Enhance service offer
–
Improve investment environment
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THANK YOU
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Points of Contact
OCO Global (Head office)
6 Citylink Business Park, Durham St,
Belfast, BT12 4HB, Northern Ireland
OCO Global
146 Fleet Street,
London EC4A 2BU, UK
OCO Global
65 Rue d’Anjou,
75008 Paris, France
Sieb Hoogstra
Director
T: +32 (0) 2 554 1251
E: [email protected]
OCO Global
Avenue Louise 283/18, 1050 Brussels,
Belgium
OCO Software
10 West Beach – Cobh, Cork,
Republic of Ireland
OCO Global
45 Broadway 21st Floor,
10008 New York, USA
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