Ensuring Pennsylvania s Global Competitiveness

Transcription

1 Ensuring Pennsylvania s Global Competitiveness April 25, 2017 Evan Hoffman, Organization for International Investment (OFII) David Briel, PA DCED Office of International Business Development (OIBD) Suchit Bachalli, Unilog Content @Unilog1

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3 Educate Advocate Connect

4 Number of Americans who work for an insourcing company. Wage premium insourcing workers earn over economy-wide average. Percentage of U.S. exports produced by insourcing companies, valued at $425 billion Increase in corporate charitable giving from 2000 to 2010 compared to economy contraction of 5 percent

5 Industry Breakdown R&D Spending Other $7.4B Other Industries $812 B Manufacturing $1.23 T Wholesale Trade $8.4B Chemical Manufacturing $22.4B Wholesale Trade $367 B Finance & Insurance $388 B Other Manufacturing $12.4B Transportation Manufacturing $6.3B

6 Worldwide Exports Exports to Europe Middle East & Africa $4.5B Asia & Pacific $117B Latin America $57B Canada $13B Europe $228B Other $47B U.K. $73B France $23B Germany $45B Netherlands $19B Switzerland $21B

7 Pennsylvania ranks 4 th nationally in the number of paychecks supported directly and indirectly by global investment at 971,800

8 FDI Inflows in Billions USD U.S. Percentage of Global FDI

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10 What matters most between competing states? - Proximity to customers - Having the right workforce - State/local incentives

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12 Understanding current and future industry clusters Mapping out international assets, worldwide connections, workforce capabilities, and educational networks Creating effective aftercare for existing investors Understanding and responding appropriately to mergers and acquisitions Ensuring nondiscrimination in policy and regulation

13 Tax reform lower rate, non-discrimination, interest deductibility Section 385 Treasury Regulations Tax treaties Extraterritorial double taxation at state level Procurement and domestic content requirements Equal participation in the U.S. political process M&A Environment - Committee on Foreign Investment in the U.S. (CFIUS) Federal advisory committees Extraterritorial application of U.S. law and courts State sanctions policies

14 Speaker Paul Ryan (R-WI) and Ways & Means Chairman Kevin Brady (R-TX) are proponents of the Blueprint, which has come under a lot of fire Border Adjustment Tax (BAT) Denies the deduction for cost of imported goods, exempts income generated from exports Ardent opposition from retailers, importers, Senate Territorial tax system Removes net interest deduction and gives full expensing Latest The White House and Senate Finance have both publicly parted with the Blueprint and both stated they want to drive tax reform forward House GOP plans to hold hearings on the Blueprint, including the BAT, after Easter recess

15 Trump s stated motto is Buy American, Hire American Unique position of GOP President taking a traditionally Dem position A recent presidential memo directed that pipelines should use materials and equipment produced in the United States, to the maximum extent possible and to the extent permitted by law" This is unique in its directive to a private company We re focused on Buy America in appropriations bills, especially if the bipartisan infrastructure idea becomes live

16 Evan Hoffman Organization for International Investment OFII.org

17 OFFICE OF INTERNATIONAL BUSINESS DEVELOPMENT PEDA Spring Conference Ensuring Pennsylvania is Globally Competitive April 25,

18 OUR MISSION The Office of International Business Development (OIBD) is committed to helping Pennsylvania companies increase their export sales and to encouraging foreign companies to invest in Pennsylvania. 18

19 OFFICE OF INTERNATIONAL BUSINESS DEVELOPMENT With one of the largest network of overseas offices of any state in the U.S., Pennsylvania s Office of International Business Development (OIBD) is committed to supporting Pennsylvania companies by working with them to increase their export sales and encourage foreign companies to invest in Pennsylvania. 19

20 OUR INVESTMENT SERVICES Aiding companies in setting up U.S. entities Providing information on Pennsylvania s labor, average wages, business tax structure, and more Coordinating site and building searches with regional partners Work with the Governor s Action Team to vet projects for business assistance programs Networking with potential partners, including: Suppliers Colleges & universities Law firms Accounting firms Banks Real estate professionals Construction & engineering firms 20

21 JOINT VENTURE PARTNERSHIP PROGRAM Pennsylvania regularly receives economic development lead opportunities for companies interested in: locating in investing in trading with contracting with or partnering with businesses located in Pennsylvania. 21

22 PENNSYLVANIA ECONOMY 22 Pittsburgh, PA

23 PENNSYLVANIA S ECONOMY 19th largest economy in the world A GDP of Pennsylvania is located in a region that is so prosperous that, if the area within a 320-km radius of Philadelphia was considered to be a single economy, its GDP would be greater than France, the 6 th largest economy in the world. $709B USD 23

24 PENNSYLVANIA S ECONOMY We are the 19 th Largest Economy in the World Pennsylvania s Gross Domestic Product USD $709 billion USD $2,418 billion USD $709.0 billion USD $646.0 billion USD $370.2 billion USD $295.1 billion France Pennsylvania Saudi Arabia UAE Denmark Source: BEA Regional Data, GDP by State, GDP in Current Dollars, 2015 (2016 is not available yet) Source: The World Bank, GDP Ranking, updated

25 PENNSYLVANIA ECONOMY population residents employed unemployment rate 12.8 million 5.9 million 5.8% Jobs added since , Source: US Bureau of Economic Analysis, Dept of Commerce, US Bureau of Labor Statistics

26 PENNSYLVANIA S ASSETS Stable Economy Large, growing and diverse economy Comprehensive Infrastructure Transportation, water resource, energy Strategic Location Central to U.S and Canadian businesses and consumers Modern Workforce Well-educated, highly skilled Diversified Industries Highly diversified with a strong manufacturing base World-class Education Hundreds of world-class institutions of higher education Game-changing Resources Supply and demand, Marcellus Shale, manufacturing 26

27 PENNSYLVANIA S INFRASTRUCTURE 3 ports to the Atlantic Ocean, Gulf of Mexico & Great Lakes 6 international airports 4 Class 1 railroads 8 Foreign Trade Zones 27

28 ACCESS TO TALENT AT WORLD-CLASS UNIVERSITIES PA UNIVERSITIES ARE LEADERS IN ENGINEERING, LIFE SCIENCES, APPLIED TECHNOLOGY EDUCATION, PLASTICS, FINANCE, AND MORE. 28

29 MAJOR MULTI NATIONALS IN PENNSYLVANIA 29

30 PENNSYLVANIA STAYING RELEVANT PEOPLE READY INCLUSIVE EXTENSIVE We offer a ready-made market opportunity. Our workforce is ready for you. We welcome international businesses. Large to small, we have it all. 12 million+ consumers 6.5 million workers 6,100+ foreign-owned businesses 334,500+ employees 30

31 PENNSYLVANIA FOREIGN DIRECT INVESTMENT 31 Philadelphia, Pittsburgh, PA PA

32 FDI IMPACT 6,107 Foreign Owned Locations in PA 334,871 Employed by Foreign Owned Businesses Foreign Owned Business Locations Employees of Foreign Owned Businesses Service 3,011 49% Manufacturing 3,096 51% Service 148,662 44% Manufacturing 186,209 56% 32 Source: Dun & Bradstreet, July 2016

33 FDI TRENDS FOR PA SOURCE MARKETS 33 Source: FDI Markets, Data is Jan 2003 through Jan 2017

34 FDI TRENDS FOR PA - INDUSTRY 34 Source: FDI Markets, Data is Jan 2003 through Jan 2017

35 FDI TRENDS FOR PA PROJECT TYPE 35 Source: FDI Markets, Data is Jan 2003 through Jan 2017

36 FDI TRENDS FOR PA BUSINESS ACTIVITY 36 Source: FDI Markets, Data is Jan 2003 through Jan 2017

37 WHY PENNSYLVANIA? 37 Source: FDI Markets, Data is Jan 2003 through Jan 2017

38 PENNSYLVANIA STAYING RELEVANT 38 Appalachian Trail on Peters Mountain, PA

39 IMPACT MARKETS High potential Growing population Growing entrepreneurial class Increased ability & interest to invest abroad Growing wealth Safe harbor for investments 39 Presque Isle lighthouse- Erie, PA

40 MANAGEABLE MARKETS PA already has existing relationships Sister Cities Chambers of Commerce Cultural/Ancestral Connections Government relationships & contacts Entrepreneurship Strong education culture Money to invest 40 City Hall, Philadelphia, PA

41 MEDIA 41

42 RELATIONSHIPS Be in the Market PA Representative Business Missions Develop Local & International Resources Chambers Embassies Educational institutions Ambassador programs Engaging existing international companies 42

43 WORKFORCE DEVELOPMENT Train for the future Engage students at younger ages Less gender specific career paths Redefine manufacturing training Perceptions can mean lost potential 43

44 PLANNING FOR THE FUTURE 44 Lancaster, PA

45 PLANNING FOR THE FUTURE Assess their location s capabilities and competencies in areas of growth, resulting in a wish to be closer to market or leverage the latest technological improvements. emerging services competence centers new types of manufacturing facilities, Ensure that their locations align skills supply and demand in key target sectors. 45

46 PLANNING FOR THE FUTURE Ensure that people obtain skills that are relevant for industries targeted for growth. Review the performance of their organization (along with local government, stakeholders, etc) to ensure that activities are aligned with the wider economic development strategy. Widen the mandate beyond traditional investment promotion activities to include cluster development, focusing on key target sectors and clusters and involve a number of activities to foster innovation, skills development, partnerships and entrepreneurship among indigenous and foreign companies. 46

47 CONTACT US David Briel Executive Director, Investment Office of International Business Development Pennsylvania Department of Community & Economic Development

48 Thank you! York, PA dced.pa.gov/invest

49 Mr. Suchit Bachalli CEO Unilog Content Solutions

50 Q & A Ensuring Pennsylvania s Global Competitiveness Evan Hoffman, Organization for International Investment (OFII) David Briel, PA DCED Office of International Business Development (OIBD) Suchit Bachalli, Unilog Content @Unilog1