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10. CLYDE TEXAS Multimodal Access To The World 12. WENDY DUPLEY Attracting Foreign Direct Investment (FDI) To Empower Communities 16. RURAL GROWTH STRATEGIES LLC FDI Alliance International Speaks to Robert Harrington 20. FDI ALLIANCE INTERNATIONAL Transport - A Catalyst For Foreign Direct Investment 24. WETASKIWIN, ALBERTA, CANADA Leveraging The Urban Exodus 26. BOB SAGER Stop Fighting A Losing Battle 28. BERNADETTE FERNANDES Atlantic Canada’s Multimodal Access To The World 34. SIERRA VISTA ARIZONA Find Tech-Ready Workforce and Unmatched Lifestyle in Southeast Arizona 36. RONNIE L. BRYANT Unlocking Economic Growth: Go from Local to Global via Multimodal Access 38. ADVANCECT CONNECTICUT You Can’t Fly Without Connecticut 40. FDI ALLIANCE INTERNATIONAL The Power of Infrastructure 42. ROB O’BRIAN Logistics Across Three Nations: New Rail Connects North America 46. TREUTLEN COUNTY Our Site + Your Business = Perfect Partnership 48. BRUCE TAKEFMAN The Role Of Foreign-Trade Zones In Attracting Foreign Direct Investment 50. RUTH A. BUCHANAN, Florida: Gateway To The Americas And To The World 54. HUNTINGTON, INDIANA, USA FDI Alliance International Speaks to Mark Wickersham 58. BRAD THOMAS Embracing Transformational Opportunities 60. STATE OF KENTUCKY A Global Leader: Kentucky Leads The Way in U.S Logistics 62. ERRAN F. PERSLEY The Infrastructure Investment And Jobs Act Moving The Us Economy Forward 68. ALIA ABBAS Navigating New Frontiers 74. ERIE PENNSYLVANIA Connecting You To The World 76. C. PAIGE WEBSTER, CECD Infrastructure To Enhance Your Community - Certified Sites & Buildings 80. MYRTLE BEACH Industrial Parks In Horry County, South Carolina: A Booming Hub For Business 82. TODD KUCKKAHN Live2lead Develops Collaboration And Trusting Teams 88. TOMBALL TEXAS World-Class Culture, Commerce, and Connectivity 90. DICKINSON TEXAS Your Future Is In Dickinson 92. “SUPER” DAVE QUINN, CECD Multimodal Access To The World: Unlocking Business Potential In Texas 98. MOUNT ROGERS Virginia’s I-81 & I-77 Crossroads: Gateway to the Mount Rogers Region and the World 100.EDWIN COHEN Enabling Business Connections Across The World
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As the publisher of FDI Alliance International Magazine, I'm honoured to present our 2023 Autumn issue to the world. I feel truly blessed to share this issue of the magazine with you. I would like to recognise and thank our sponsor; The City of Clyde Texas, led by Christopher McGuire who has been phenomenal to work with in producing this issue. I would like to thank Mark Wickersham, Executive Director of Huntington County Economic Development Authority and also Robert Harrington, CEO of Rural Growth Strategies. It was great to share interviews with these two executives. FDI Alliance International has now partnered with over 168 foreign direct investment experts and communities from across the world. We have successfully built a large worldwide audience including corporate professionals, site selectors, business owners and C-level executives. We have continued to effectively utilise the world's most trusted social media platforms. FDI Alliance International is the leading magazine in this industry sector. Our outreach on LinkedIn via our international partners is over 500,000 with our annual digital reach of 2 million corporate executives. By showcasing the most lucrative business locations worldwide, we are very excited to continue to expand. Our expansion includes operations in North America, Europe, the Middle East, and China. With our proven track record of establishing long-term international business partnerships, these international connections will continue to expand our platform. FDI is happy to announce our North American new relationships with the City of Wetaskiwin in Canada, and Sean Register from Truetlen County Georgia. We are very privileged to have clients that have continued to support and work with us over the years. I would also like to recognise our expert contributors and international partners that continue to add significant value to our platform. In addition, I would like to thank our creative and production team led by Matthew Emmanuel. Matthew continues to play a key role in our growth and development. Lastly, I would also like to thank Shirar O'Connor-Mugler, who continues to add significant value to our international partnerships. I hope you enjoy this issue focusing on "Multimodal Access to the World" We will continue to serve the foreign direct investment industry and promote the most lucrative investment locations in the world. As we grow, you grow... Courtney Margetson CEO / Executive Publisher SPECIAL THANKS TO LEADERSHIP TEAM
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Well-designed transportation infrastructure facilitates economies of scale, reduces the cost of trade, and is central to the efficient movement of goods and services vital to development and economic growth. Multimodal access is the backbone of transportation infrastructure, which connects supply chains with logistical distribution that efficiently moves goods and services in the interconnected global economy. The State of Texas is a leader and gateway for international and domestic trade due to its transportation networks enabling reliable air, land, and sea access for commerce. Within the United States, Texas has more miles of public and highway road systems, foreign trade zones, freight railways, and airports than any other state. To facilitate international trade and economic development, the State of Texas has thirty-one ports of entry, including the Port of Laredo, the number one port of entry along the United States – Mexico border, and thirty-four Foreign Trade Zones. With over 380 airports across the state that include twenty-six commercial airports and two intermodal facilities, this robust access to markets allows for timely international access to import and export markets. According to the Organization for Economic Cooperation and Development, maritime transport accounts for nearly 90% of all traded goods. It is estimated that by 2050, maritime trade will increase threefold. The State of Texas is uniquely positioned as a leader in waterborne trade with nineteen seaports, including eleven deepwater ports. The Port of Houston is the largest container port on the Gulf Coast and leads the United States in maritime foreign trade. The State of Texas has over 314,000 miles of public roads and 3,233 miles of interstate highway systems that allow for cost-effective movement of goods across the state and connection to major interstate highway systems that serve as regional connectors for commerce. In addition to the expansive 10. FDI ALLIANCE INTERNATIONAL
roadway systems, the State of Texas also leads the nation in the miles of freight rail with over 10,500 miles. Major Class 1 Railroad companies include Union Pacific, Burlington Northern Santa Fe, and Canadian Pacific Kansas City. The City of Clyde is centrally located in Central West Texas, which provides direct access to the Southern United States and Mexico. The City of Clyde is within the Abilene Metropolitan Statistical Area, with a population of over 175K. Clyde is also within ten miles of the Abilene Regional Airport and 146 miles from the Dallas Fort Worth International Airport. The City of Clyde affords direct access to Interstate 20 and the Class-one Union Pacific rail line. Clyde’s location within the Abilene Metropolitan Statistical Area is ideal for regional, national, and international market access. With the City of Clyde investing over $33M in physical infrastructure and home to the The Clyde Independent School District an accredited school district with an A Superior rating and within fifteen miles of Abilene Christian University, Hardin-Simmons University, Patty Hanks Shelton School of Nursing, Texas Tech University Health Sciences Center, Cisco College, and Texas State Technical College, the City of Clyde presents great opporunites for foreign direct investment and economic development. Christopher McGuire City Administrator and Executive Director of Economic Development City of Clyde, Texas M PO Box 1155, 222 Oak Street | Clyde, Texas 79510 N Office: (325) 893-4234 Cell: (325) 899-2189 Fax: (325) 893-5010 E [email protected] D clyde-tx.gov 11. FDI ALLIANCE INTERNATIONAL
Foreign Direct Investment (FDI) plays a pivotal role in driving economic growth and fostering global interconnectedness. For communities seeking to thrive in the global economy, attracting FDI is a strategic imperative. On average, new investment from outside of a community or region accounts for about twenty percent of the economic growth in Canada. However, it’s a really important twenty percent, FDI can bring along with it innovation, new jobs, and additionally add to a community’s diversification. This article delves into some of the complex, multifaceted processes of FDI attraction, emphasizing the importance of strategic planning, comprehensive research, intergovernmental collaboration, and workforce retention. In the world of FDI attraction, to be effective be prepared, be strategic, targeted and focused. CRAFTING A STRATEGIC FDI ATTRACTION PLAN Developing a comprehensive strategy is the cornerstone of successful FDI attraction. Communities must conduct a thorough assessment of their strengths, weaknesses, opportunities, and threats. A strategic plan should align with the community’s economic development goals and prioritize sectors that leverage existing strengths. This involves identifying key industries, understanding market trends, and assessing the regulatory environment. Engaging in stakeholder consultations is crucial during the strategy development phase. Local businesses, government officials, and community leaders should collaborate to ensure that the FDI strategy reflects the collective vision and values of the community. This inclusivity fosters a sense of ownership and commitment among stakeholders, creating a foundation for sustained success. A broad approach can be expensive and difficult to measure. By identifying the type of investment your region needs and targeting those specific ATTRACTING FOREIGN DIRECT INVESTMENT (FDI) TO EMPOWER COMMUNITIES: A STRATEGIC APPROACH 12. FDI ALLIANCE INTERNATIONAL
industries and investors, you can use your resources more effectively and save time and money. Targeting the specific industries and companies that align with your strategy enables you to track and measure the performance and impact of your region’s approach. Monitoring the engagement from key decision makers on your campaigns and the conversion rates will help. You can then tweak, and adjust your approach where appropriate and re-measure. RESEARCH: THE FOUNDATION FOR INFORMED DECISION-MAKING In the realm of FDI attraction, knowledge is power. Thorough research is essential for identifying target markets, understanding investor preferences, understanding the target market business culture and evaluating global economic trends are important.. Communities should also invest in market intelligence that provides insights into the competitive landscape, potential investors, and emerging opportunities. Additionally, a robust understanding of regulatory frameworks and legal requirements is critical. This knowledge helps streamline the investment process, reducing red tape and making the community more attractive to potential investors. Research should extend to understanding the cultural nuances of the target investors, facilitating effective communication and relationship-building. A targeted well-research approach allows you to reach more relevant and interested investors. You can tailor your region’s pitch to suit different audiences, such as specific industry bodies, government agencies, particular investor groups, property and site selection agents, etc. INTERGOVERNMENTAL COLLABORATION: STRENGTHENING THE ECOSYSTEM Successful FDI attraction often requires seamless collaboration between various levels of government. Communities must work in sync with all levels of government to create a conducive, robust business environment. Working with the ‘boots on the ground’ in the target country be either provincial an/or federal resources will be necessary. These in-country resources are provided to be used as additional ‘tools in the toolbox’ to 13. FDI ALLIANCE INTERNATIONAL
support your strategic approach. This often involves aligning local policies with national economic goals, ensuring regulatory consistency, and providing a supportive infrastructure for prospective investors. Interagency coordination is vital in streamlining bureaucratic processes, leveraging incentives and eliminating barriers to investment. Establishing a dedicated FDI promotion unit, an ‘invest team’, that spans local and national government agencies can facilitate a more efficient and investorfriendly environment. Attracting FDI is definitely a team sport! Clear, consistent, communication channels and a unified approach demonstrate a commitment to creating a business-friendly ecosystem. RETENTION STRATEGIES: ENSURING LONG-TERM SUCCESS Attracting FDI is only the first step; retaining these investments is equally crucial for long-term economic growth. Communities must implement retention strategies that foster a favourable business climate, encourage reinvestment, support ongoing growth, and build long-lasting partnerships with foreign investors.. The key therefore, is to nurture those in-community business relationships, make systematic visitations and to make sure they’re connected to all the tools and resources they need to continue to be successful in your community. Investment aftercare services play a pivotal role in retention (it also helps with attraction as investors appreciate that you’ll be there to support on an ongoing basis). Statically, eighty percent of all economic growth will come from businesses already in the community. Providing ongoing support to investors, addressing concerns, and offering incentives for expansion whenever possible all contribute to a positive investment experience. Communities should also consider prioritizing infrastructure development, innovation hubs, and skills training as it will enhance tools and resources for local businesses to tap into, it will additionally enhance the overall attractiveness of the region as a competitive investment destination. 14. FDI ALLIANCE INTERNATIONAL
WORKFORCE DEVELOPMENT: THE HUMAN CAPITAL ADVANTAGE A skilled and adaptable workforce has become a key factor in attracting and retaining FDI. Communities should invest in education and training programs that align with the needs of targeted industries in your attraction strategy. Collaborations between all levels of educational institutions and businesses can help tailor curricula to meet the specific skill sets demanded by potential investors. As an added benefit, the triple-helix model of innovation occurs when academia, government and private sector interact to work on economic and social development, so it’s worth the investing the time in relationship-building. Moreover, promoting that you have a diverse and inclusive workforce enhances a community’s appeal to a broad range of investors. FDI often brings with it a demand for specialized skills, and a community’s economic development team that has close ties with its educational institutes and a community with a versatile and inclusive workforce is better positioned to meet these investor demands. CONCLUSION Communities that proactively engage in FDI attraction successfully leverage these key elements and position themselves as dynamic players in the global economy. As the world becomes increasingly interconnected, the ability to attract and retain foreign investment becomes a defining factor in the economic prosperity of communities. Finally, don’t be afraid to align resources and explore working collaboratively on FDI activities with neighbouring communities across regions, collaboration is always much stronger than competition! Ready to elevate your Region’s Investment Strategy? You need a professional experienced partner who can help you craft and refine your approach. As an Economic Development Consultant, I specialise in creating and optimizing targeted and effective Investment Strategies. I’ve helped many regions across the globe attract more investment and achieve their goals. Together, we can create a powerful tool for attracting investment, showcasing your region in a more appealing, efficient, and effective way. Let’s connect and start working on your attraction efforts. WENDY DUPLEY, EC.D FOUNDER AND PRINCIPAL, WEDU CONSULTING [email protected] www.WeDu-consulting.ca Tel: 902 774 3997 15. FDI ALLIANCE INTERNATIONAL
Robert where is Rural Growth Strategies located? What is the number one objective of this organization? Rural Growth Strategies, headquartered in Fort Scott, Kansas, is dedicated to raising awareness about the remarkable communities that span our nation's rural landscape, often overlooked in favor of their larger urban counterparts. Contrary to the prevailing notion of rural America as dwindling communities, these areas are brimming with untapped potential and business opportunities on a global scale. Boasting a skilled labor force, cost-effective business environments, and abundant land resources, rural America presents an ideal destination for international companies contemplating expansion within the American market. Briefly describe your holistic approach to economic development, how important it is to understand the unique challenges and opportunities faced by rural communities. RGS boasts over 16 years of experience in operating within rural American markets. During this extensive tenure, we have observed the challenges that foreign companies often encounter when seeking to establish a presence in these markets. We recognize that these communities possess unique expectations and demands from external entities, which may be unfamiliar to many. At RGS, we are well-equipped to facilitate the navigation of this gap by establishing and nurturing personal connections within these communities. We place significant emphasis on the cultivation of relationships, leveraging these connections to assist our clients in identifying optimal locations and ensuring that the community is receptive and prepared to welcome them as its newest member. How many years have you focused on rural America? How does your expertise help clients achieve their goals and create lasting positive change? Having spent the majority of my life residing and professionally engaging in rural America, I possess a profound and enduring appreciation for the inherent strength and resilience of rural communities. Drawing upon my extensive 16-year tenure dedicated to economic and community development within rural America, I am firmly convinced that our organization possesses the requisite expertise and knowledge essential for any enterprise seeking to expand into rural areas. We stand prepared to provide the guidance necessary to empower companies to make informed and confident decisions in this regard. Rob what strategies do you have in place to facilitate clients in attracting new business, retaining existing business and supporting entrepreneurship? As previously highlighted, our strategic approach revolves around immersing our team within the community and collaborating closely with our clients to facilitate judicious decisions for both their enterprises and 16. FDI ALLIANCE INTERNATIONAL
the chosen communities. It is imperative to acknowledge that in rural America, the decisions made hold a deeply personal dimension, influencing not only those directly employed by the company but also the lives of the residents residing within that locality. In our location evaluation process, we actively engage with local leaders, businesses, and residents, recognizing that these interactions yield invaluable insights not readily attainable through software programs alone. This information equips our clients with the depth of knowledge required to make well-informed decisions. While we fully acknowledge the significance of data in the site selection process, we firmly believe that our distinctive differentiator lies in the firsthand, on-theground intelligence our organization collects, setting us apart within our industry. Briefly outline your comprehensive and data driven approach to site selection. How does your team work closely with businesses to gain a deep understanding of their needs and goals to ensure success? At RGS, our initial approach involves a comprehensive consultation with our clients, wherein we seek to gain a holistic understanding of their organization. Beyond simply ascertaining the specific requirements for a site, we delve into the intricacies of their corporate culture. We explore facets such as the desired quality of life for their employees, the accommodations needed for their leadership team, and the top three pivotal factors that will dictate the site selection process in alignment with their company's culture. It is our firm conviction that, in the contemporary economic landscape, the aspirations of the workforce extend beyond mere remuneration. Factors such as quality of life have assumed greater significance in influencing the selection of a potential site, as these considerations impact the attractiveness of a location to prospective employees. We take pride in our personalized approach to each client's project, which ensures that nuanced aspects, occasionally obscured by raw data, are spotlighted and accorded due consideration. This approach empowers our clients to make well-informed decisions that not only address immediate needs but also factor in the dynamics of future growth within the chosen community. What range of tools and techniques have you implemented to evaluate potential investment locations? RGS employs a diverse range of tools and techniques to meticulously evaluate potential investment locations for its clients. These strategies are tailored to address the specific needs and objectives of each project and may include: 1. Site Selection Software: RGS utilizes advanced software tools that incorporate geographic information systems (GIS) and data analytics. These tools help identify potential sites based on a wide array of criteria, including proximity to suppliers and markets, transportation infrastructure, labor force availability, and more. 2. Demographic and Market Analysis: Conducting in-depth demographic and market analysis to understand the target audience, consumer behavior, and market trends. This information informs decisions about the suitability of a location. 3. Competitive Analysis: Evaluating the competitive landscape within a chosen location to understand existing market players, potential barriers to entry, and opportunities for differentiation. 4. Regulatory and Compliance Assessment: Thoroughly assessing local and regional regulations, tax incentives, zoning laws, and compliance requirements to ensure that the selected location aligns with the client's business goals and legal obligations. 5. Economic Impact Modeling: Developing economic models to project the potential impact of the investment on the local economy, including job creation, tax revenue generation, and community development. 6. Infrastructure and Accessibility Assessment: Evaluating the availability and adequacy of infrastructure, utilities, and transportation 17. FDI ALLIANCE INTERNATIONAL
networks to support the client's operations and logistics requirements. 7. Community Engagement and Stakeholder Interviews: Actively engaging with local leaders, businesses, and residents to gather qualitative insights, understand community expectations, and build positive relationships within the chosen location. 8. Quality of Life Assessment: Assessing the quality-of-life factors such as education, healthcare, housing, recreational amenities, and cultural offerings, which can influence the attractiveness of a location to potential employees. 9. Risk Analysis and Contingency Planning: Identifying potential risks and challenges associated with a location and developing contingency plans to mitigate these risks. 10. Environmental Impact Assessment: Evaluating the environmental impact of the investment and ensuring compliance with environmental regulations. This includes considerations for sustainability and green initiatives. 11. Financial Modeling: Developing detailed financial models to project the costs and potential returns associated with the investment in a particular location. 12. Customized Surveys and Research: Conducting surveys and custom research to gather specific data and insights relevant to the client's industry, business model, and goals. 13. Scenario Analysis: Exploring multiple scenarios to assess the flexibility and adaptability of the chosen location to various business strategies and market conditions. Can you explain why community development is such a key component in creating thriving and sustainable communitie Community development is a critical component in creating thriving and sustainable communities for several important reasons: 1. Economic Growth: Strong community development initiatives can stimulate local economic growth. When businesses invest in the community, they create job opportunities, increase tax revenue, and contribute to the overall economic wellbeing of the area. This, in turn, leads to increased economic stability and improved quality of life for residents. 2. Social Cohesion: Communit y development fosters social cohesion by bringing people together and encouraging collaboration. Building social networks and strong community ties can lead to a greater sense of belonging, reduced social isolation, and improved mental and emotional well-being among residents. 3. Infrastructure and Services: Community development often involves the improvement of essential infrastructure and services such as roads, schools, healthcare facilities, and recreational spaces. These investments enhance the overall quality of life, making the community more attractive for residents and businesses alike. 4. Education and Skill Development: Community development programs often include educational and skill-building initiatives. These programs empower residents with the knowledge and skills they need to access better employment opportunities, ultimately improving their economic prospects and overall wellbeing. 5. Environmental Sustainability: Sustainable community development focuses on responsible land use, conservation of natural resources, and the reduction of environmental impacts. It promotes practices that safeguard the environment for future generations, ensuring long-term sustainability. 6. Cultural Preservation: Many community development efforts aim to preserve and celebrate local culture, heritage, and traditions. This not only enriches the community's identity but also attracts tourists and promotes cultural exchange. 18. FDI ALLIANCE INTERNATIONAL
7. Equity and Inclusion: Effective community development strives to be inclusive and equitable. It addresses disparities in access to resources and opportunities, ensuring that marginalized or underserved populations have a voice and an opportunity to benefit from development initiatives. 8. Resilience: Building resilient communities that can withstand and recover from challenges, such as natural disasters or economic downturns, is a key aspect of community development. Resilience planning helps communities adapt to changing circumstances and bounce back from setbacks. 9. Community Pride and Engagement: Successful community development projects instill a sense of pride and ownership among residents. Engaged and empowered community members are more likely to take an active role in shaping the future of their community, leading to sustained positive outcomes. 10. Long-Term Viability: Sustainable community development takes a longterm perspective, aiming to create lasting positive impacts rather than short-term gains. By addressing the root causes of challenges and fostering a sense of shared responsibility, it helps ensure the viability and prosperity of communities for generations to come. Robert what can we expect to see from Rural Growth Strategies in the next 24 months? Can you disclose and significant projects we should be looking out for in rural America. Rural Growth Strategies (RGS) is committed to harnessing the multitude of growth opportunities that exist throughout rural America. Our mission extends beyond merely assisting companies in locating new homes; we are equally dedicated to helping these communities proactively prepare for the forthcoming opportunities. With a surge in companies reshoring to North America, it is imperative that we, as a nation and particularly in rural America, are well-prepared to accommodate this growth. Over the next 24 months, Rural Growth Strategies will actively engage with multiple communities across rural America, collaborating on multifaceted initiatives aimed at bolstering their readiness for growth. This comprehensive approach encompasses a range of critical endeavors, including: 1. Workforce Housing Studies: Conducting housing studies to facilitate workforce housing projects, ensuring that the communities have adequate housing solutions in place to accommodate incoming workers and their families. 2. Labor Studies: Undertaking labor studies to demonstrate that these communities possess access to the skilled and unskilled labor pools that prospective companies seek, thereby enhancing their attractiveness as investment destinations. 3. Quality of Life Assessments: Performing comprehensive quality of life assessments, encompassing retail studies and an indepth analysis of community amenities, to showcase the overall desirability and livability of these locales. 4. Community Certification: RGS is actively developing a community certification program that consolidates the outcomes of these various assessments into a single, cohesive document. This certification will serve as a compelling testament to a community's preparedness for growth. It can be readily presented to site selectors and expanding businesses, expediting the selection process and instilling confidence that these communities have undertaken the necessary groundwork to accommodate growth. We firmly believe that, akin to site certification, a community certification is the next logical step in advancing economic development in rural America. By streamlining the availability of essential data and insights sought by site selectors and businesses, Rural Growth Strategies is poised to empower these communities, expedite the decision-making process, and position rural America as an appealing destination for economic expansion. We are dedicated to fostering growth, sustainability, and prosperity within these communities, aligning with the broader resurgence of economic activity within the United States. ROBERT HARRINGTON Principal, Rural Growth Strategies LLC. M 1403 Horton St. Fort Scott, Kansas 66701 N 573-355-4366 E [email protected] D www.ruralgrowthstrategies.com 19. FDI ALLIANCE INTERNATIONAL
Transport infrastructure stands at the forefront of a nation's progress, serving as a critical driver for economic development and a determining factor in attracting foreign investment. The comprehensive nature of transport infrastructure, encompassing telecommunications, railways, airports, ports, and roads, plays a multifaceted role in shaping the economic landscape. This article explores how the availability and quality of these infrastructures contribute to reducing operational costs, minimizing tariffs, and facilitating access to new markets. Additionally, it delves into the implications of insufficient infrastructure, as highlighted in studies like Rehman et al. (2011), emphasizing its impact on limiting access to local and international markets and, consequently, hindering the growth of Foreign Direct Investment (FDI) in countries. Telecommunications Infrastructure: The Nervous System of the Global Economy Telecommunications infrastructure serves as the nervous system of the global economy, enabling instantaneous communication and data transfer across borders. In the realm of foreign investment, a robust telecommunications network is indispensable. It not only fosters efficient business operations by reducing communication costs but also facilitates cross-border coordination for multinational corporations. Improved telecommunication infrastructure enhances a country's competitiveness and positions it as an attractive destination for foreign investors seeking a technologically advanced and well-connected business environment. Railways: Connecting Industries and Markets. Railways are the veins that connect industries and markets, providing a cost-effective and efficient means of transportation for both goods and passengers. A well-developed railway network contributes significantly to reducing operational costs, especially in the manufacturing sector where the efficient movement of raw materials and finished products is paramount. Beyond cost savings, railways enhance domestic connectivity and, when integrated into global logistics networks, offer a competitive advantage by improving access to international markets. The presence of a reliable railway infrastructure often influences the investment decisions of industries relying on streamlined transportation. Airports: Gateways to Global Opportunities Airports serve as gateways to global opportunities, connecting regions and fostering international trade and investment. Well-designed and adequately equipped airports not only enhance the convenience of travel but also support the efficient transport of goods. The reduced lead times and operational costs associated with wellconnected airports make a country more attractive to foreign investors. Accessibility to global markets through modern and efficient air transport infrastructure is a critical factor that contributes to the economic vibrancy of a nation. Ports: Maritime Connectivity for Economic Prosperity. Ports are pivotal in facilitating maritime connectivity, acting as crucial nodes in the global supply chain. Countries with well-established and efficiently managed ports enjoy enhanced maritime connectivity, enabling the smooth flow of goods and reducing shipping costs. The strategic positioning of ports contributes to a nation's economic prosperity by facilitating international trade. For foreign investors, the availability of modern and efficient port 20. FDI ALLIANCE INTERNATIONAL
facilities is a key consideration when evaluating investment opportunities, particularly in industries reliant on global supply chains. Roads: Enabling Seamless Domestic Mobility Roads serve as the arteries that enable seamless domestic mobility, connecting urban and rural areas and facilitating the transportation of goods and people. A well-maintained and extensive road network contributes to economic development by reducing transportation costs for businesses. Foreign investors keen on efficient logistics and supply chain solutions consider the quality of road infrastructure a crucial factor in their location decisions. A well-connected road network enhances the ease of doing business and improves accessibility to local markets. Insufficient Infrastructure: A Barrier to FDI Growth While understanding the pivotal role of transport infrastructure, it is equally crucial to recognize the challenges posed by insufficient infrastructure. Studies, including Rehman et al. (2011), emphasize that inadequacies in infrastructure act as significant barriers to both local and international market access, ultimately impeding the growth of Foreign Direct Investment (FDI) in countries. The limitations of insufficient infrastructure are multifaceted: Operational Inefficiencies: Inadequate transport infrastructure leads to operational inefficiencies, causing delays and increasing costs for businesses. This makes it less attractive for foreign investors seeking streamlined operations and cost-effective solutions. Market Access Constraints: Limited infrastructure restricts a country's ability to connect with local and international markets efficiently. This constraint not only impacts the export capabilities of businesses but also hinders the inflow of FDI, as investors prioritize locations with robust connectivity. Logistical Challenges: Inefficient logistics due to insufficient infrastructure create logistical challenges for businesses, affecting the entire supply chain. Foreign investors consider a well-established logistical framework essential for successful operations and are deterred by regions lacking this critical infrastructure. Competitiveness Erosion: Nations with inadequate infrastructure risk erosion of their competitiveness on the global stage. The inability to offer efficient transportation and connectivity diminishes their appeal to foreign investors seeking locations with a competitive edge. Addressing Infrastructure Deficiencies: A Prerequisite for FDI Growth Recognizing the barriers posed by insufficient infrastructure, addressing these deficiencies becomes imperative for countries aspiring to attract foreign investment and foster economic growth. Strategies for overcoming infrastructure challenges include: Investment in Infrastructure Development: Governments should prioritize substantial investments in infrastructure development projects, addressing gaps in telecommunications, railways, airports, ports, and roads. This includes the construction and maintenance of modern and efficient facilities to meet the evolving needs of industries and investors. Public-Private Partnerships (PPPs): Collaboration between the public and private sectors through PPPs can accelerate infrastructure development. This approach combines the resources and expertise of both sectors, fostering innovation and efficiency in the execution of infrastructure projects. Policy Reforms: Governments should implement policy reforms aimed at streamlining regulatory processes and removing barriers to infrastructure development. Clear and investor-friendly policies encourage private investment and contribute to the timely completion of projects. Technology Integration: Leveraging technology in infrastructure development can enhance efficiency and effectiveness. Incorporating smart technologies in transportation systems, for instance, can improve the overall functionality and resilience of the infrastructure network. Capacity Building: Developing local capacity in construction, maintenance, and management of infrastructure is essential. This involves investing in skills development and training programs to ensure that the workforce possesses the expertise required for sustainable infrastructure development. Conclusion: A Connected Future Beckons In conclusion, the transformative power of transport infrastructure in shaping economic development and attracting foreign investment cannot be overstated. From the intricate networks of telecommunications to the expansive reach of railways, airports, ports, and roads, each component contributes to reducing operational costs, minimizing tariffs, and facilitating access to new markets. Conversely, insufficient infrastructure acts as a formidable barrier, limiting a country's potential to connect globally and hindering the growth of Foreign Direct Investment. As the world becomes increasingly interconnected, nations must recognize the pivotal role of transport infrastructure in securing their place in the global economy. Governments, in collaboration with the private sector, must embark on comprehensive strategies to address infrastructure deficiencies. Through strategic investments, policy reforms, and embracing technological advancements, countries can create an environment that not only attracts foreign investors but also propels them toward sustainable economic growth and prosperity. A connected future beckons for nations that prioritize and invest in the development of robust and efficient transport infrastructure. 21. FDI ALLIANCE INTERNATIONAL
Canada is a country located in the northern part of North America. The Prime Minister is Justin Trudeau. This is the second largest country by total area in the world. Just south of Canada is the border to the United States. The capital of this vast country is is Ottawa. Montreal, Toronto and Vancouver are the three largest metropolitan areas in the country. Nicknamed the Great White North, Canada is known for its cool climate and cold winters. They are known for their maple syrup which is drawn from the sap of maple trees. In fact, their flag even has a maple leaf on it. Many Canadians enjoy their love of the sport of hockey. With such an advanced economy, it is the 10th largest in the world. It is also one of the worlds top 10 trading nations and has a highly globalized economy. Canada has been noted as one of the least corrupt countries in the world. Manufacturing, mining and service sectors have transformed the economy into being more industrialized and urban. Utilizing the production of raw materials, such as farming, forestry, fishing and mining have proven successful. The two more prominent components are the forestry and petroleum industries. It is one of the world’s largest suppliers of agricultural products such a sweet, canola and other grains. There a leading exporter of aluminum, cadmium, coal, copper, gold, lead, nickel, zinc and uranium. Certain areas of Canada also export energy. Whether it’s natural gas, large oil and gas resources, they are one of the few developing nations to achieve this. The infrastructure in Canada is very highly developed. They have a state-of-the-art telephone system that’s supported by a satellite system an earth-based relay centers as well as international underwater cables. These cables stretch across the Atlantic and and the Pacific oceans. Their transportation system includes railways, highways, expressways, air travel as well as waterway travel. Canada has a very developed railway system which moves freight with ease. The trucking industry takes advantage of the many highways and expressways.There are 20 major ports with the busiest port being located in Vancouver on the West coast. Some of the smaller ships just travel on the great lakes but there is also access for vessels to sail from the Atlantic. Due to the close proximity to the United States, Canada is a desirable location for many businesses. With a stable banking system and one of the world’s lowest corporate tax rates, this country is able to become an investment dream. By continuing to lower the corporate tax rate, Canada is ideal for international companies. The rate is ever-changing and continually goes down. The Income Tax Treaty has the possibility to remove some of the responsibility for companies based in the United States. This is design for businesses that are headquartered outside of Canada. If your company does not have a permanent establishment then your operational profits are not subject to Canadian income tax. There are many cultural similarities between Canada and the United States. Many of the demographics are similar with close statistics in terms of ethnicities. The predominant language of English is the same language used in the United States. There are some exceptions where French is used such as Quebec. There is also a highly skilled Workforce. Many of the skilled workers rage in an age from 25 to 55 years old. Canada has the fifth largest Workforce in Artificial Intelligence. Some major corporations in Canada include, Brookfield Asset Management, Bank of Nova Scotia , Enbridge , Toronto-Dominion Bank, Alimentation CoucheTard, Royal Bank of Canada, George Weston, Magna International, Power Corp., and Manulife Financial. Canada is a premier location due to its trade freedom, investor protection, low corporate tax rates, and low corruption. There’s a steady growth projected for Canada which would make an ideal location for any business. PRIME MINISTER JUSTIN TRUDEAU CANADA 22. FDI ALLIANCE INTERNATIONAL
FORGE YOUR OWN PATH FORWARD. Feeding and fueling the world, Wetaskiwin’s rich agricultural sector and robust manufacturing industry drive the local economy and combine to create a wide range of opportunities for continued investment and growth in both sectors. Supported by strong connectivity via road, rail, and air to both domestic and international markets, Wetaskiwin’s competitive land prices, administrative ease, and real estate affordability all contribute to create an ideal location for business development and investment. • Competitive land pricing • Low development costs and a tax incentive program for commercial and industrial developments • No Machinery or Equipment Tax • No Provincial Sales Tax INVESTWETASKIWIN.CA OUR VALUE PROPOSITION
Over the past three years, companies have experienced one of the greatest periods of disruption in history. The wide adoption of remote working protocols has not only created new flexibility, but also encouraged people in their workplace to take stock of their lives and how their location plays a lesser role on the success of their careers. In large numbers, families are fleeing cities and the high cost of living in favor of affordable communities in surrounding rural areas like Wetaskiwin, Alberta, Canada. Situated 40 kilometres southeast of the Edmonton International Airport, Wetaskiwin, Alberta offers ease of convenience for business and pleasure travel as well as housing prices that are 39% lower than the neighboring metropolitan area. Wetaskiwin creates an attractive value proposition for families seeking an affordable lifestyle while still being able to seize commercial and career opportunities. Home to a bustling metal fabrication and manufacturing sector which primarily supports the agriculture and energy industries, Wetaskiwin sits on 300 acres of greenfield industrial lands available for immediate development, in addition to developable land at the community’s certified municipal airport. The logistical advantages of Wetaskiwin for market reach into the western half of North America have been realized by distribution centres for well-known Canadian retailers. Home Hardware’s distribution centre, supporting 118 stores in western Canada is situated here. At the centre of a trading area of more than 50,000 people, Wetaskiwin has proven to be advantageous to attract a regional workforce that has not yet been fully maximized. In the neighboring First Nations community of Maskwacis – a shared community which is home to Four Nations – the economic impact on Wetaskiwin is reflected in $58.6 Million annual spending. But more importantly, there are currently 4,000 Indigenous workers registered for jobs that have not yet been placed. Additionally, there are more than 100,000 students attending post-secondary studies within a one-hour radius of the City, including a local satellite campus for Norquest College which is located in Wetaskiwin. 24. FDI ALLIANCE INTERNATIONAL
Alberta’s bustling economy with diverse advantages in agriculture, energy, and plentiful access to resources create an ideal environment for value-added agriculture and food manufacturing as well as pharmaceuticals and emerging technology that advances the growth of the Province’s existing and emerging industries. “We have established our company in 1978 and has progressed into a world leader of manufacturing products here in Wetaskiwin,” says Frank Luebke, the CEO of Manluk Global Manufacturing Solutions. “We manufacture products for the petrochemical industry both for land-based and sub-sea and also for the mining industry. We are still looking at expanding. We recently opened a new manufacturing facility for the oil and gas industry and we are going to continue on that path. Also, agricultural now is becoming a larger part of our business." “Wetaskiwin’s central location, access to rail and our regional airport, in addition to being only 30 minutes away from an international airport has been a great advantage for us. Wetaskiwin has been a great place for us.” The strategic advantage presented by Wetaskiwin, Alberta begins with no machinery or equipment tax, low development costs, tax incentive program for commercial, industrial development, competitive land pricing, and no Provincial sales tax. International firms are discovering that investment in rural Canadian sites is affording them more direct attention from municipal and Provincial government officials and staff. The timing is perfect for your company to explore the advantages of the urban exodus and the benefits to your company by investing in Wetaskiwin, Alberta, Canada. Explore the rural Alberta advantage for your next project. Visit us at investwetaskiwin.ca Let’s start the conversation today. 25. FDI ALLIANCE INTERNATIONAL VERN MAY Economic Development Manager M Wetaskiwin City Hall (4705 50 Avenue) N 780-361-4450 E [email protected] d investwetaskiwin.ca
Unless you have massive scale, competing solely on price is a losing game that is no fun to play. Especially in competitive industries, if consumers perceive your offering as being no different than your competitors, you will be competing solely on price. To avoid playing in that hum-drum arena, you must amplify the perceived value of doing business with your company. This article will help. Recently, I rented a car from Enterprise Rent-A-Car. The experience led me to create several ideas for them, which I have permission to share. Note: Though these ideas were created with a rental car company in mind, they can certainly be used by companies in other industries. THE ANCHOR TERM METHOD One of the methods of Purposeful Creative Thinking that we teach, the Anchor Term method, is what I used to develop these ideas. This fabulous thinking tool will help you develop ideas that differentiate your marketplace offerings and thereby increase their perceived value. Those who have experienced our training are already familiar with this method. For those who have not, here is a quick overview of how it works and how to employ it. First, decide what you want new solutions to or ideas for. Use this as your anchor term. For example, let’s say I own or manage a car dealership and am looking for new ideas that will distinguish my dealership in the estimation of customers. I could use Car Sales as my Anchor Term. Next, build a list of ten random nouns to combine with your Anchor Term. For instance, we might combine the anchor term referenced above with the word, Coffee. Then, we let the power of our imagination create ideas from the combination of Car Sales + Coffee. It is crucial that the nouns we combine with our Anchor Term be completely random. Ensuring that they are awakens our imaginative faculty and forces it to discover new possibilities. Using the What’s The BIG Idea? creative thinking game I invented makes this easy. But, if you don’t own a copy of that game, you can choose any ten random nouns. A simple way to do this is to look around the room where you are and write down the first ten objects you see. Once you have a list of random nouns, mentally combine each with your Anchor Term. See what ideas occur to you as you make these combinations. Note: Ideas are fleeting. I strongly recommend that you write down or record an audio of each idea that occurs to you. This will make them easy to review later. THE IDEAS In developing ideas for Enterprise, I used the Anchor Term: Rental Car Sales. Below are five strategies I came up with. Each one shows the random noun chosen from the game + the Rental Car Sales Anchor Term followed by the idea they inspired. FILTER + RENTAL CAR SALES Build a fish tank filled with colorful, exotic fish and create a dedicated online stream showing this aquarium. Watching swimming fish and listening to STOP FIGHTING A LOSING BATTLE “The reason it seems that price is all your customers care about is that you haven’t given them anything else to care about.” - Seth Godin 26. FDI ALLIANCE INTERNATIONAL
the sound of the bubbles has a hypnotic allure and this live stream gives companies a way to enjoy the benefits of having an expensive saltwater tank in their office at no cost. Periodically, a subtle Enterprise Rent-A-Car logo floats by. From time to time, run a contest that challenges people to ‘spot the logo’. They will, thus, look at the aquarium live stream more often. Each time someone spots the Enterprise logo they go to X (formerly Twitter) and indicate what time they saw it. Develop a unique hashtag that must be shared with each the-time-I-saw-the-logo post and award prizes at random to those folks who post about spotting the logo. FARMER + RENTAL CAR SALES In each city the company serves, have a community garden that is sponsored by Enterprise. The company rents the garden space and provides the seeds and equipment to work the garden. Folks in the community come and volunteer their time to help raise the vegetables. When harvested, these vegetables are donated to local food banks or homeless shelters. Serve refreshments to the volunteers after each day’s work is done. Be sure the disposable drink cups have the Enterprise logo. While the refreshments are being served, record interviews with volunteers talking about why they have dedicated their time and effort to the vegetable garden. On social media, share videos of the work being done, progress of the garden and the volunteer interviews. This initiative positions Enterprise as a company that cares about the communities it serves. BALL + RENTAL CAR SALES A Limited Time Promotion In each office, have a mini-basketball hoop. Give each customer the opportunity to make an ‘impossible shot’ (ala those half or ¾ court shot promotions done at basketball games). If they make the shot, they get a discount on their car rental, one day free on a week or more rental or a day of insurance coverage on their rental car at no charge. Those who don’t win get their choice of cool consolation prizes just for playing. Share videos of both successful and non-successful shots on social media. BRAKE + RENTAL CAR SALES Sponsor a bank of massage chairs at each airport location. Passengers can enjoy a massage after they get off their flight. The use of these massage chairs should not be exclusively for Enterprise customers but should be available to everyone. Many business travelers fly into the same airports repeatedly. By ingratiating the company to them through this sensual - and, hence, emotionally significant - experience, when they need a rental car they are likely to choose Enterprise over a competitor. Possible Slogan: When you choose Enterprise you can relax. BREAKFAST + RENTAL CAR SALES Partner with experts in multiple fields to share a short success training lesson each weekday morning. These are posted on social media, YouTube and podcast platforms. These lessons could be widely varied. For example: • How to Get the Most Out of Using A.I. • Becoming More Emotionally Intelligent • Unlocking the Leadership Code • Ways You Can Become More Creative One approach would be to have these lessons be like a box of chocolates; meaning they would be completely random and about any area of personal or professional improvement. The mystery of not knowing what lesson is coming next would trigger the F.O.M.O. response in folks; thereby garnering more traffic. Another approach would be to do each training topic for a month at a time and label each month with an alliterative title to make it memorable. Such as: Jump Into January: A Month of Leadership Lessons These strategies will help companies in many industries compete on value rather than price. Which of these is your favorite? Can you use them in your organization? What ideas can you come up with using the Anchor Term method of Purposeful Creative Thinking? BOB SAGER FOUNDER, SPEARPOINT SOLUTIONS, LLC [email protected] www.spearpointonline.com 27. FDI ALLIANCE INTERNATIONAL
One of the key drivers for foreign direct investment (FDI) is efficient connectivity to global markets, and one of the most significant influences in a region’s attractiveness to FDI is its multimodal access. Foreign investors often prioritise locations with reliable and integrated transportation systems, and Atlantic Canada’s multimodal infrastructure positions itself favourably in this regard. Many foreign companies, multinationals such as IBM, Samsung, Siemens, Kvaerner, Tech Mahindra, and Michelin, have invested in and realised the operational and strategic advantages found in the four most Eastern provinces of Canada on the Atlantic Coast - New Brunswick, Newfoundland and Labrador, Nova Scotia, and Prince Edward Island (PEI). THE TRANSPORTATION INFRASTRUCTURE The “Atlantic Gateway” boasts a comprehensive road network connecting urban centres and rural areas, not only between the four provinces but across borders with the Province of Quebec to the west and the United States to the south. What is more important is the integration of road transport with other modes, enhancing the overall accessibility of the region, promoting economic growth and regional development. Across vast distances, the Canadian National Railway (CN) and the Canadian Pacific Railway (CP) have historically played a vital role in connecting Atlantic Canada internally and externally, instrumental in transporting goods and people. The well-developed rail and road networks play a crucial role in making the region more attractive for FDI. The seamless integration of air transportation with other modes, such as road and rail, ensures the quick and efficient movement of both cargo and passengers. This interconnectedness not only enhances accessibility for residents but also fosters economic opportunities by facilitating trade and tourism, as well as business operations and decision-making processes for foreign companies considering investments in Atlantic Canada. For global destinations, airports such as Halifax Stanfield International Airport not only serve as regional hubs connecting Atlantic Canada to the world but also act as gateways for international investors. The maritime provinces of Atlantic Canada rely heavily on their ports for both domestic and international trade. With one of the largest and deepest ATLANTIC CANADA’S MULTIMODAL ACCESS TO THE WORLD 28. FDI ALLIANCE INTERNATIONAL
ice-free natural harbours in the world, Atlantic Canada is positioned as a strategic gateway for shipping. The multimodal integration of sea and land routes has allowed goods to flow seamlessly, contributing to the economic development of the region. The ports at Saint John and Halifax have access not only to Eastern and Central Canada, but also to the coveted U.S. Midwestern market and the Eastern U.S. CN has access to both ports, while CP – with its recent acquisition of the Central Maine and Quebec Railway – has direct access to Port Saint John. The region’s reliance on maritime transportation has been significant, with its vast coastline and numerous ports serving as vital gateways to the Atlantic Ocean. The strategic maritime position of Atlantic Canada with two deep and ice-free ports, serves as a significant attraction for foreign investors. The multimodal integration of maritime transport with other modes ensures a reliable and cost-effective supply chain, encouraging businesses to establish or expand their operations in the region. NOVA SCOTIA As one of the fastest growing metropolitan regions in Canada, with one of the deepest and ice-free ports, and an air transportation hub for the Atlantic region, international investors have long chosen Nova Scotia as a strategic location for naval defence, ocean technology, and advanced manufacturing. French multinational, Michelin North America is the largest private manufacturer in Nova Scotia. The province is also the home to the Netherlands’ DSM Nutritional Products, the world’s #1 manufacturer of concentrated fish oils – an appropriate reflection of Nova Scotia’s maritime heritage and expertise in ocean industries. From seafood to marine transportation, tidal energy, and naval defence, ocean industries employ almost 35,000 Nova Scotian workers. The crowning jewel of the industry is the Centre for Ocean Ventures and Entrepreneurship (COVE) – a collaborative facility for applied innovation in the ocean sector that offers international investors a unique place for a ‘soft landing’ in the province. NEW BRUNSWICK Bordering Quebec and the US, there are 55 million consumers within a 1,000 KM radius of the province of New Brunswick. It also benefits from the fastest average download speeds in Canada with 140.35 Mbps. New Brunswick houses Canada’s National Centre for Cybersecurity in the Cyber Centre, with 96-hour post event resiliency, onsite back-up generation, redundant data connectivity, and Canada’s most advanced networking and internet fibre infrastructure. It offers investors and tenants security services with physical and biometric security layers and was specifically built for national security and defence-grade cybersecurity research and development. Combined with amazing infrastructure, access to talent, affordability, and a bilingual workforce, the province is attractive to leading multinational investors such as IBM with their major innovation hub for 29. FDI ALLIANCE INTERNATIONAL
tackling cybersecurity challenges, and Siemens Canada with their global centre for cybersecurity. With a local ecosystem of over 330 engaged organisations made up of business, academia, industry associations, and government, the province of New Brunswick also has what it takes to succeed when it comes to Digital Health Innovation. PRINCE EDWARD ISLAND Prince Edward Island is connected to the mainland, specifically New Brunswick, by The Confederation Bridge, an important part of the Atlantic Gateway where investments in infrastructure create jobs, growth and prosperity in Atlantic Canada. Known as Canada’s bioscience hotspot, PEI has attracted considerable international attention with its Bioscience Cluster, comprising more than 65 companies, several research institutions, and North America’s first business accelerator. Emergence – Atlantic Canada’s Bioscience Business Incubator and Natural Products Canada – is dedicated to the commercialization of products and technologies based on natural product chemistry. Multinationals who have invested in the Cluster include Japan-headquartered Sekisui Diagnostics (with its only Canadian location) and UK-based Croda International (with its International’s Centre of Innovation for Marine Biotechnology). NEWFOUNDLAND AND LABRADOR With deep-water exploration projects on the horizon, Newfoundland and Labrador has stepped up as a Deep-Water Centre of Excellence. Built on the energy industry’s significant advancement, it has a vibrant and diversified ocean economy – one of the largest in Canada. In fact, Canada’s Ocean Supercluster, one of Canada’s innovation initiatives, is headquartered in Newfoundland as a transformative cluster model that is driving cross-sectoral collaboration, accelerating innovation, and growing Canada’s ocean economy. Most recently, it has announced a collaborative partnership with Portugal’s Fórum Oceano to promote sustainable investment and growth of the blue economy pan-Atlantic, in regional and international networks.The industry is bolstered by strong research and development capabilities and an expertise for collaborating with industry. A significant portion of this research is conducted at The Fisheries and Marine Institute – Canada’s most comprehensive centre for education, training, applied research and industrial support for the ocean industries. The Institute is home to the world’s largest flume tank, two of only five full-motion ship’s bridge simulators in the world. Multinationals who have invested in the province include Kongsberg Maritime, Kvaerner, TechnipFMC, and Vale. 30. FDI ALLIANCE INTERNATIONAL
ECONOMIC IMPACT The multimodal transportation infrastructure in Atlantic Canada has a profound impact on the regional economy. Efficient connectivity facilitates trade, attracting investments and creating job opportunities. The transportation sector itself becomes a significant contributor to the gross domestic product (GDP), reflecting the economic vitality of the region. The economic impact of multimodal access directly correlates with the region’s stability and growth potential. Foreign investors seek locations with stable economies and a favourable business environment. The multimodal infrastructure in Atlantic Canada contributes to economic growth, creating a stable backdrop for foreign direct investment. TECHNOLOGICAL ADVANCEMENTS AND INNOVATION The adoption of technological advancements in transportation, such as real-time tracking systems and automation, not only improves efficiency but also showcases a commitment to innovation. Foreign investors are drawn to regions that embrace cutting-edge technologies, seeing them as indicators of a progressive business environment. Atlantic Canada’s incorporation of such technologies enhances its appeal to tech-oriented industries seeking strategic investment locations. ENVIRONMENTAL CONSIDERATIONS As the world increasingly focuses on sustainable development, the environmental impact of transportation cannot be overlooked. Atlantic Canada has been exploring eco-friendly alternatives, such as electrification of transportation and the integration of renewable energy sources, to minimise its carbon footprint and contribute to global environmental goals. As the global focus on environmental sustainability intensifies, foreign investors increasingly prioritise regions committed to eco-friendly practices. Atlantic Canada’s exploration of sustainable transportation alternatives aligns with these expectations. Foreign investors with a focus on corporate social responsibility find the region’s commitment to environmental sustainability appealing, enhancing its overall attractiveness. Looking ahead, the future of multimodal access in Atlantic Canada holds exciting possibilities. Continued investments in infrastructure, technological innovations, and collaborative efforts between public and private sectors, both regionally and internationally, can further enhance connectivity. Embracing sustainable practices will not only address environmental concerns but also ensure the long-term viability of the region’s transportation systems. CONCLUSION The impact of multimodal access to the world from Atlantic Canada is a dynamic and evolving landscape. The integration of maritime, air, rail, and road transportation modes has played a pivotal role in connecting this geographically diverse region to the global stage. While challenges persist, the region’s commitment to innovation and sustainability positions it for a future where multimodal access continues to be a driving force behind economic growth and development. The region’s well-integrated transportation infrastructure, strategic geographic advantages, commitment to innovation, and environmental sustainability collectively contribute to making it an attractive destination for foreign investors. As Atlantic Canada continues to evolve its multimodal capabilities, it solidifies its position on the global stage as a prime location for international businesses seeking to invest in a dynamic and connected economic landscape. BERNADETTE FERNANDES CEO OF THE VARANDA NETWORK [email protected] www.TheVarandaNetwork.com bernadettefernandes 31. FDI ALLIANCE INTERNATIONAL
Arizona’s premier business environment is attracting companies from all over the world. Since 2015, Arizona has successfully landed more than 165 expansions or attractions from international companies, which are projected to create nearly 25,000 new jobs and over $21 billion in capital investment. These include companies such as TSMC (Taiwan), HelloFresh (Germany), NXP Semiconductors (Netherlands), Leonardo (Italy), Zurich Insurance Group (Switzerland), MeyerBurger (Switzerland), Nestle (Switzerland), Infosys Technologies (India), ElectraMeccanica (Canada) and many more. These investments have made Arizona one of the top destinations in the world for foreign direct investment (FDI). Arizona led the U.S. in FDI in 2020, with more than $13.7 billion invested. Since 2016, FDI in Arizona has increased by more than 3,500%. When it comes to our quality of life, Arizona can’t be beat. From diverse arts and culture to year-round outdoor recreation, along with some of the top-ranked public K-12 schools in the U.S., Arizona offers limitless opportunities to achieve personal, family, and business goals. Speaking of business goals, Arizona’s modern infrastructure and strategic location has you covered. Situated in the southwest and with 130,000 miles of highway, Arizona provides access to more than 85 million consumers within a day’s drive. On top of that, the state offers access to six border ports of entry with Mexico, convenient access to air travel with 12 commercial and 71 reliever airports, and the Port of Tucson–a full-service inland port and rail yard offering more than 1.7 million square feet of amenities. Arizona also is the home of SkyBridge Arizona, the nation’s first air cargo hub to house both U.S. and Mexican customs officials. This first-of-its-kind service at Phoenix-Mesa Gateway Airport enables e-commerce companies and manufacturers to efficiently and cost-effectively transport goods between Mexico and Latin America. The state’s reliable climate also serves producers and distributors, with 300 days of sunshine a year, little exposure to natural disasters, and one of the nation’s most reliable electrical grids. Along with impeccable infrastructure, Arizona’s skilled workforce, which now includes more than 3.4 million people, is second to none. Recently, labor market analyst EMSI ranked Maricopa County no. 1 in its 2021 Talent Attraction Scorecard, the fourth time in the last six years. A key component of Arizona’s talent pipeline is the state’s top-ranked universities and community colleges. At Arizona State University, for example, nearly 27,000 students are enrolled in engineering programs – a 190% increase since 2010. With all these advantages, there simply is no better place in the country to test, launch and scale your business. GOVERNOR KATIE HOBBS STATE OF ARIZONA 32. FDI ALLIANCE INTERNATIONAL
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Steeped in the history of the old west, Sierra Vista has earned a new reputation for sitting on the cutting edge of technology with two of the nation’s top cybersecurity colleges and an Army post helping to chart our military’s future. Once known for stories of the bold people who pushed forward America’s frontier, Sierra Vista now beckons those seeking to innovate in business and technology in a setting fit for outdoor adventure. Established in 1877, Fort Huachuca is both one of Arizona’s oldest military installations and one of its most future-focused. Tucked in the foothills of the majestic Huachuca Mountains, Fort Huachuca and Sierra Vista boast extraordinary views and a unique environment perfect for tech-orientated military missions. This historic base known as the home of the Buffalo Soldier who helped secure the American frontier, now finds itself on the edge of a new frontier, poised to help solve some of today’s most pressing challenges. Fort Huachuca is the U.S. Army’s hub of technology, training, and testing. The operations at Fort Huachuca are supported by thousands of highly-educated and technologyfocused contractors. Soldiers trained there conduct key missions that are critical to national defense, including NETCOM, which operates and defends the Army’s worldwide networks; the nation’s largest unmanned aerial systems training facility; and the U.S. Army Intelligence Center of Excellence, focusing on myriad high-tech training to support the Army’s critical intel missions. Thanks to Sierra Vista’s high elevation (4,633 feet), surrounding mountain ranges, and pristine airspace, Fort Huachuca conducts highly technical training and testing, which cannot be achieved anywhere else in the United States. The 2,500 square-mile “high altitude bowl” of the Buffalo Soldier Electronic Test Range sets the stage for world-class electronic testing paired with an extraordinary workforce. A national treasure, Fort Huachuca is positioned to support the future warfare requirements for the defense of the nation. “About 600 highly-trained and educated soldiers transition through Fort Huachuca and enter the civilian workforce each year,” City of Sierra Vista Tourism & Economic Development Director Tony Boone says. “And that’s just the start of Sierra Vista’s expanding pipeline for a tech-ready workforce preparing people for the jobs of tomorrow.” 34. FDI ALLIANCE INTERNATIONAL
ࣿ Home of Nation-Leading Cyber Programs Sierra Vista boasts two of the nation’s top cyber programs thanks to the University of Arizona’s College of Applied Science & Technology (CAST) and Cochise College, one of the nation’s top community colleges. In 2022, Cochise College ramped up its already robust cyber program, earning validation by the National Security Agency, giving students job-ready cybersecurity skills using a hands-on approach, and putting Sierra Vista’s slate of educational offerings in the national spotlight. With the NSA validation achieved, Cochise College is well on its way to earning a designation as a National Center of Academic Excellence in Cybersecurity by the NSA. Ahead of the technology curve, Cochise College offers certificate programs in virtual reality. V/R is one of the fastest growing technologies and can be applied to nearly every industry, including entertainment, engineering, medical, and military. Cochise College is also at the forefront in providing training for today’s in-demand careers, such as medical and skilled trades. While the University of Arizona’s main campus is claimed by nearby Tucson, Sierra Vista-grown CAST is also a national leader in cybersecurity. In August 2021, CAST was lauded in Forbes for offering the best undergraduate program in the nation. CAST trains students using a unique online AI environment that grows exponentially to replicate the intricacies of today’s technologyreliant world by adding new twists to continually challenge students. CAST offers four-year degrees in cybersecurity, teaching both offensive and defensive cyber operations using a hands-on learning environment that duplicates real-world cyber activity. Like Cochise College, CAST’s cyber operations program is also designated as a Center of Academic Excellence by the National Security Agency, one of only 20 in the nation, and its intelligence education program is approved by the Defense Intelligence Agency. CAST is currently moving from the northeast side of town to the three-story Piazza San Lorenzo Complex, near the gate to Fort Huachuca. This new site will offer the room needed to accommodate CAST’s rapid growth. It also places the campus in the heart of Sierra Vista’s West End, where revitalization efforts are transforming the historic center into a downtown entertainment district. “Already a destination of choice for military retirees for its extraordinary climate and outdoor recreation, Sierra Vista now has more to offer to families and young professionals, earning it accolades as one of the nation’s best communities to call home,” Boone says. ࣿ An Unapparelled Lifestyle Sierra Vista’s extraordinary quality of life and affordability recently earned some national attention. In 2023, Forbes Health ranked Sierra Vista as the 25th best place for families to live in the U.S. and the top community in Arizona, after reviewing nearly 1,900 cities. As a center for education and defense, Sierra Vista enjoys a stable economy and fiscally conservative leadership. These key attributes contribute to the city’s low tax rate. Add that to the affordable cost of living and extraordinary lifestyle amenities to find a destination worth short-listing for business start-up, expansion, and relocation. Located about an hour southeast of Tucson International Airport, and just 30 minutes south of I-10, Sierra Vista offers the amenities of a large city without the traffic, crime, or commute. While the mountains and elevation are key to military operations, they also support Sierra Vista’s outdoor recreation. The Huachuca Mountains are part of the Sky Islands, a medley of soaring peaks that cup southeast Arizona and create one of the most diverse ecosystems in the world and blend tropical and temperate climates, riparian areas, and expansive forests. In town, paved multi-use paths wind through the community and invite walkers, runners, and cyclists to enjoy the rolling terrain. Open spaces, parks, and an indoor water park are the extra amenities that elevate Sierra Vista’s quality of life. Sierra Vista’s affordability and unparalleled lifestyle are the foundation of many of the community’s recognitions, including most affordable city in Arizona, best city for teleworking, best city for young families, and best city to retire to. Just in the last few years, the city has invested millions of dollars in sports facilities, providing soccer, softball, and football fields, plus a track, that are the envy of southeastern Arizona. Combined with a climate ideal for yearround play, the community’s residents enjoy uncommon access to world-class sporting opportunity, while sports organizations attract numerous tournaments from out of town. This has resulted in more than $5 million of economic impact to the community since 2019, as tournaments draw in visitors who spend their dollars in local stores, restaurants, and hotels. The City also hosts or is home to a variety of special events including the Wine, Beer, and Spirits Festival; Sky Island Tour; Tour de Zona; Summit Challenge; Art in the Park; Oktoberfest, and the Annual Tree Lighting and Holiday Market, bringing the excitement of large events with lower costs and ease of accessibility. All of these recent developments together have helped spark renewed interest in Sierra Vista, diversify its local economy, and open the door to exciting business opportunities. If you’re seeking a forward-thinking home for a tech-centric business where your employees would love to live, it’s time to look at Sierra Vista. TONY BOONE ECONOMIC DEVELOPMENT DIRECTOR M 1011 N. Coronado Drive Sierra Vista, AZ 85635 N (520) 439-2157 e [email protected] d www.SierraVistaAZBusiness.com 35. FDI ALLIANCE INTERNATIONAL
In a world where globalization is a driving force across businesses, governments, and society, ensuring smooth connectivity and efficient transportation infrastructures has become imperative for sustainable economic growth. As an economic development CEO based in North Carolina, I’ve seen the incredible impact made from creating and maintaining strong intermodal access. To be sure, in today’s global marketplace, it is not just a necessity, but a strategic advantage. Multimodal access, also referred to as Intermodal access, is the ability to connect different modes of transportation, such as highways, railways, airways, and ports, seamlessly and efficiently. It enables the movement of goods from one point to another, allowing businesses to effectively reach global markets. The key to success is to intelligently leverage multiple transportation modes to thereby reduce transportation costs, increase speed and reliability, improve supply chain resilience, and access new markets. More than ever before, multimodal access plays a crucial role in attracting and retaining businesses around the world. Companies, especially those engaged in global trade, prioritize the availability of efficient transportation infrastructure when selecting their location. From my perspective in the Southeast USA, our region relies more heavily than ever on seamless multimodal access to connect with national and international markets. The efficient integration of various transportation modes (road, rail, air, and water) to facilitate the movement of goods and people has become a growing priority. It plays a pivotal role in enhancing competitiveness, attracting investments, and promoting regional economic development. With a diverse economy encompassing industries like manufacturing, finance, technology, and agriculture, the greater Charlotte, North Carolina region is a prime example of an area that is successfully growing across various sectors due to strategically establishing the infrastructures needed for intermodal access and integration. As our world - our businesses, economies, governments, and societies evolve at warp speed in the expanding age of Artificial Intelligence, it is paramount for economic development authorities and governments to invest in the development and enhancement of transportation infrastructure. This includes the expansion of seaports, improvement of railway networks, advancement of roadways, and modernization of airports. Collaboration between public and private sectors will be ever-more important to encourage investment and ensure the effective integration of different modes of transport. Collaborating with neighboring states, industry associations, and research institutions can foster knowledge sharing, joint research, and initiatives aimed at improving intermodal access within the broader regional context. Further on the note of collaboration, it is crucial to recognize the significance of Foreign Trade Zones (FTZs) and their potential impact on global economic development. Here in the vibrant business landscape across North and South Carolina, USA there are several key FTZs that can provide substantial advantages to companies operating in the region and which are thriving due to broad collaborations. One of the notable FTZs near Charlotte is the FTZ 57, which covers multiple locations within North Carolina, including the Charlotte Douglas International Airport. This FTZ offers competitive advantages to businesses engaged in international trade by providing cost savings, streamlined customs procedures, and operational flexibility. Among the key aspects of operating in an FTZ: duty deferral, customs benefits, cost savings, logistics efficiency, and site selection advantages. Unlocking Economic Growth Go from Local to Global via Multimodal Access 36. FDI ALLIANCE INTERNATIONAL
RONNIE L. BRYANT PRINCIPAL | RONNIE L BRYANT, LLC [email protected] www.rlbryantllc.com As we consider an overarching view of the importance of multimodal access in building economic viability across regions, it’s vital to remember the importance of connecting rural and urban areas. Intermodal access serves as a bridge between the two, overcoming geographical barriers and creating new avenues for economic growth, providing development opportunities to remote regions, fostering job creation, and improving quality of life for local communities. Logistics and physical infrastructure also play fundamental roles in enabling and enhancing multimodal access to economic development. Prioritizing investments in and allocating resources to improve transportation infrastructure, particularly leveraging public-private partnerships, allows regions to expand and enhance connectivity between ports, airports, rail yards, and highways. That connectivity serves in reducing bottlenecks, increasing efficiency, and strengthening overall transportation systems. Investing in technologies and processes that enhance connectivity and efficiency will continue to be ever-more important. Adopting advanced technologies like real-time tracking, intelligent transportation systems, and data analytics can optimize intermodal operations. These innovations can lead to better traffic management, increased asset utilization, reduced emissions, and enhanced safety. Economic developers have a crucial role to play in advocating for and facilitating the development of robust logistics and physical infrastructure to open up greater multimodal access and drive economic prosperity. As we move at rocket speed into a redefined and reimaged global marketplace, establishing interagency coordination is a ‘must have’ for effective management among various governmental agencies and stakeholders involved in transportation planning, such as state transport departments, port authorities, rail operators, and private logistics providers. This collaborative approach is imperative in streamlining decision-making and ensuring an integrated approach to intermodal development. In our VUCA universe today – Volatile, Uncertain, Complex, and Ambiguouswe must all be more prepared for the unpredictable and rapidly changing nature of the world we live in. In short, we must ensure greater resilience across all sectors. Having multiple transportation modes and interconnected infrastructure enhances the resilience of the transportation network. In case of disruptions or emergencies, alternative routes and modes can be utilized to ensure the continuity of trade and economic activities. When it comes to the health of our planet, and thereby ourselves and our businesses, multimodal access contributes to sustainability and environmental conservation. Integrated transportation systems promote the use of more environmentally friendly modes of transportation, such as rail or water, which can reduce congestion on highways and minimize carbon emissions. This approach aligns with global efforts to mitigate climate change and reduce the ecological footprint associated with transportation activities. Multimodal access is about more than just transportation; it is a catalyst for economic development and growth. Leveraging intermodal access holds immense potential to attract investments, bolster regional competitiveness, and foster inclusive and diverse development. By prioritizing strategic, future forward looking infrastructure investment, enhancing cooperation, embracing innovation, and collaborating with key partners we can build and sustain a thriving global marketplace, unlocking boundless opportunities for economic prosperity. 37. FDI ALLIANCE INTERNATIONAL
On November 9th, the state of Connecticut announced that South Korean company Hanwha Aerospace selected Cheshire, Connecticut as the location for the headquarters of its International Engines Business. Hanwha’s strategy behind the decision focused on proximity to its key customers and access to a workforce with the skills the company requires to manufacture highly specialized aerospace components for commercial and military aviation. Hanwha already has four facilities and over 600 employees in Connecticut, and they are still growing. There is incredible demand for aerospace components and equipment, and the growth trajectory for the industry is predicted to continue for the next decade. Connecticut is a component state, producing more than 25% of all aircraft engines and engine components manufactured in the United States. The state’s aerospace mantra is You Can’t Fly Without Connecticut and with Connecticut-manufactured components in virtually every piece of flight equipment in the world, this statement rings true.. Connecticut is also home to OEMs such as Sikorsky, Pratt & Whitney, Collins Aerospace, and Kaman, so a big part of the state’s market is driven by its end-user manufacturers. This small state is a juggernaut in this industry on a growth track, and there is no end in sight as the pipeline of aerospace companies looking to set up operations in Connecticut continues to grow. “We have a great deal of interest from the global aerospace industry,” said John Bourdeaux, President and CEO of AdvanceCT, the state of Connecticut’s business recruitment organization. “Connecticut is seeing equipment replacement cycles shortening, which is creating more demand for components. When we speak to aerospace companies about what they look for in a location, there are typically five key factors that are non-negotiable for them, and Connecticut checks the box on all five of these factors and more.” FIVE KEY LOCATION FACTORS FOR AEROSPACE Access to Customers – Companies are looking to reduce their supply chain risk, so being close to your largest clients is mission critical. Ecosystem – Having a highly collaborative and networked aerospace community is important as companies look to fill skill technology gaps and collaborate with other companies. Workforce – Part of the ecosystem consideration extends to academic institutions that partner with aerospace companies for custom training solutions and to produce the next generation of skilled aerospace technicians. Supply Chain – Proximity to ports, highways, and rail links for ease of distribution and multi-modal options for global distribution is a key consideration for many aerospace companies. Performance Predictability – Wrapped into performance predictability is risk, a huge consideration that filters down to security from a physical and intellectual property perspective. Layered into this category is workforce, which is mitigated by locating operations in a collaborative and well-established community. “Predictability is a big factor,” said Paul Lavoie, Chief Manufacturing Officer for the state of Connecticut. “As more companies adopt 38. FDI ALLIANCE INTERNATIONAL
technologically advanced manufacturing techniques and leaner supply chains, reducing risk is top of mind. Looking at what happened during the pandemic, Connecticut did not shut down manufacturing, which enabled our manufacturing sector to continue to work. Risk comes in all forms, from governance in the jurisdictions these companies operate in, to developing the next generation of their workforce. These are complex and multifaceted decisions.” Industry analysts agree that global air traffic will continue to grow upwards of 5 percent per year, and global conflicts are fueling demand for military flight vehicles, further driving demand. “It is important to mention that not only is Connecticut seeing a new influx of inward investment from aerospace companies, but also we are also seeing a record number of expansions from our existing in-state companies,” added John Bourdeaux. “The industry is booming, and I am pleased to say that Connecticut’s technical schools, community colleges, and the engineering departments of our four-year schools are meeting the challenge of the demand for more highly skilled engineers, technicians, and high-value manufacturing talent.” “I will also add that having a supportive state administration is important. Our governor and the team at Connecticut’s Department of Economic and Community Development are extremely supportive of new aerospace investors and of our existing companies – all of these things work in concert to have a truly strong value proposition for aerospace companies operating in today’s environment.” SHIRAR O’CONNOR Vice President of Marketing, AdvanceCT M 470 James Street, Suite 9 New Haven, CT 06513 N 860-571-6213 E [email protected] D www.advancect.org 39. FDI ALLIANCE INTERNATIONAL
Foreign Direct Investment (FDI) serves as a beacon of hope for developing countries, providing the much-needed capital injection for economic growth and improved welfare. Let's explore the multifaceted relationship between infrastructure development and FDI, drawing insights from research, empirical studies, and the broader literature. FDI as a Global Economic Driver Foreign Direct Investment stands as a linchpin in the global economic system, capable of fostering financial stability, supporting economic development, and enhancing social welfare. For nations in SSA, unlocking the potential of FDI becomes imperative for sustainable growth. However, the realization of this potential is intricately tied to the development of robust infrastructure. Research Insights Studies conducted by Wheeler and Mody (1992) shed light on the significant impact of high-quality energy, communication, and transport infrastructures on FDI. Their research, analyzing US firms' investment decisions across 42 developing countries, revealed a positive correlation between infrastructure quality and investment volume. This sets the stage for understanding the pivotal role of infrastructure in shaping investment decisions. Similarly, Fung et al. (2005) examined the factors attracting FDI to China. The results emphasized the importance of both soft and hard infrastructures, with a notable emphasis on the significance of soft infrastructure in influencing investment decisions. Soft infrastructure, encompassing institutional and regulatory frameworks, emerged as a critical factor attracting foreign investors. Seetanah's study in Mauritius (2009) further nuanced the relationship, indicating that both non-transport and transportation infrastructures are crucial determinants of FDI inflow. Interestingly, the attention from investors varied across sectors, with manufacturing sector investors placing more emphasis on physical infrastructure, while services sector investors showed a relatively lower level of concern. Literature Consistency The consistency in literature demonstrates that investment decisions are intricately linked to the availability and quality of infrastructure. Improved infrastructure not only acts as a magnet for foreign investors but also reduces transaction costs and enhances the overall investment climate. The dimensions 40. FDI ALLIANCE INTERNATIONAL
of infrastructure - communication, energy, and transport - each play a unique role in shaping the attractiveness of a nation for FDI. Empirical Validation Empirical studies, such as M. Asim Faheem's work in 2011, reinforce the premise that nations with robust physical and technological infrastructure are better positioned to encourage foreign direct investment. This is a compelling validation of the theoretical foundations laid by earlier research. Behname's recommendations in 2012 underscore the positive influence of metropolitan infrastructure facilities on FDI. The call for governments to prioritize these variables reflects the practical implications of infrastructure development in fostering an investor-friendly environment. However, it's not only about what infrastructure presence entails but also about the absence. Villanger (2004) highlights the cautionary tale of unstructured macroeconomic policies and poor infrastructure, which can act as deterrents for foreign investors. This underlines the importance of not only building infrastructure but doing so in a well-coordinated and strategic manner. Panitchpakdi (2009) brings attention to the dual importance of technological and physical infrastructure. His suggestion to amend business governing rules to remove impediments in resource-rich countries underscores the need for a holistic approach in creating an environment conducive to foreign investment. Infrastructure's Broad Impact The influence of infrastructure goes beyond attracting FDI. It introduces new technologies, improves existing ones, brings financial resources to host countries, and facilitates access to international markets. This multifaceted impact is a testament to the transformative power of infrastructure in developing and strengthening host economies. The availability of infrastructures, including telecommunications, railways, airports, ports, and roads, becomes a critical enabler for businesses. It reduces operational costs, minimizes tariffs, and, most importantly, facilitates access to new markets. However, the absence of these elements, as highlighted in studies like Rehman et al. (2011), becomes a significant barrier. The limitations imposed by insufficient infrastructure create roadblocks to accessing both local and international markets, ultimately hindering the growth of FDI in SSA countries. Conclusion: A Holistic Approach to Development: In conclusion, the relationship between infrastructure development and Foreign Direct Investment is intricate and profound. FDI is not a spontaneous occurrence but a result of well-crafted national policies that encompass human capital development, macroeconomic stability, and crucially, infrastructure enhancement. The positive impact of infrastructure on attracting FDI is evident in research, empirical studies, and consistent findings across various sectors. For developing nations, a comprehensive strategy that prioritizes infrastructure development becomes imperative. The goal should not merely be the presence of infrastructure but its quality, strategic placement, and a forward-looking approach that anticipates the evolving needs of businesses and investors. By investing in infrastructure, nations can create an environment that not only attracts foreign investors but also paves the way for sustainable economic development. The transformative power of infrastructure is not just a catalyst for FDI; it is a cornerstone for building prosperous and resilient economies in the 21st century. 41. FDI ALLIANCE INTERNATIONAL
The drive to re-shore and/or near-shore prompted by the pandemic continues to gain momentum as companies look to both shorten and better secure supply chains. For North American companies looking at bringing overseas operations closer to home as well as for European and Asian firms seeking a location in North America, the heartland of the continent, from Mexico to the U.S. to Canada is an attractive option with established transportation and a new rail opportunity. For decades, the U.S. Interstate and national Mexican and Canadian highway systems have been interlinked from the vibrant industrial heart of Mexico through the middle of the U.S. and into the center of Canada. In fact, Joplin, MO-based trucking company Contract Freighters, Inc (now CFI), was one of the first transportation firms to take advantage of its midU.S. location. to provide three-nation service starting nearly forty years ago. Today, a number of trucking companies in all three countries are engaged in cross-border transportation across North America. While trucking among the three North American countries has become seamless, there is now a new option for companies expanding or locating in North America. Since April 2023, the newly established CPKC railroad is providing a single rail service that spans Mexico, Canada, and the central U.S. The CPKC came about with the US $31 billion acquisition of the Kansas City Southern railroad by the Canadian Pacific railway. The acquisition of the Kansas City Southern by the Canadian Pacific became official with the ceremonial driving of a ”final spike” where the two railroads join in Kansas City. With that, the new CPKC railroad became the first and only Class One railroad to offer seamless service across all three North American countries. At the event, CPKC President and CEO Keith Creel noted “the unmatched CKPC network will give our customers new options and expanded reach to more markets” with reliable rail service. The story of a true North American railroad began nearly 140 years ago, in the 1880’s, when both the Canadian Pacific Railway and Kansas City Southern Railroad started. The CP followed the same model of the U.S. transcontinental railroads, linking east to west joining eastern Canada with British Columbia. As CP continued to grow, it purchased smaller northern US railroads to provide access to adjoining Midwest and western states as well as access to the key U.S. rail hub of Chicago. Eventually, CP extended service to Kansas City. Kansas City Southern’s founder, Author Stillwell had a different vision. With every other U.S. railroad building east to west, he built from Kansas City to the Gulf of Mexico, providing the central part of the country with access to southern ports from New Orleans to Houston. That philosophy was continued in the 1990’s when KCS partnered with a Mexican rail operator to purchase a government owned rail from Laredo, TX to Mexico City and several Mexican ports. A decade later, KCS acquired the entire operation. With that, the foundation was in place for a rail line spanning all three countries. For companies that need rail service, the CPKC has nearly 20,000 miles (32,186 km) of rail across the three countries. The CPKC offers extraordinary multi-modal opportunities for global shipping including access to: • Six eastern ports • Three Great Lake ports • Eleven Gulf of Mexico ports and • Two west coast ports. These deep-water ports are Vancouver, CA and Lazaro Cardenas, MX. In terms of highway linkages, the CPKC rail generally parallels and compliments the Interstates 35, 49, 29 and 55 corridors north-south and LOGISTICS ACROSS THREE NATIONS NEW RAIL CONNECTS NORTH AMERICA 42. FDI ALLIANCE INTERNATIONAL
crosses eight east-west Interstates in the U.S., providing wide distribution opportunities across the middle third of the U.S. When it comes to the re-shoring / near-shoring movement, Mexico currently is seeing the greatest benefit. A recent Reuter’s article noted that Mexico had US $29 billion in new investment in the first six months of 2023, up six percent from the same period in 2022. The central area north of Mexico City has long been a hub of investment by global automakers. This El Bajio region, which includes Queretaro, Guanajuato, and Jalisco, is already seeing more manufacturing growth to serve the North American market. This region and most of the major auto plants there are served by the CPKC. Dean Barber, a U.S. corporate and community consultant, lives in Queretaro and is Chief Marketing Officer for Genera Softlanding, a Mexican site location firm. He notes the growth of the region is due to a skilled and low-cost workforce, a modern and reliable infrastructure and “a strategic geographic location that facilitates logistics.” In Canada, the CPKC provides access across the country. This includes the industrialized areas of Canada: Quebec and Ontario in the east and east-central part of the country and Alberta in the west. In addition, the abundant natural resources of western Canada, in particular, are accessed by CPKC. In a recent report the company emphasized opportunities for grain producers to export to new markets in Mexico. Heather Stromquist, Manager of Economic Development and Tourism for Lac La Biche County in Alberta noted the CPKC rail network offers long-term opportunities for Canada and her region, which is near the Alberta industrial corridor. She points out that Lac La Biche County is “a corridor for natural resource products including oil and natural gas, making it a good location for existing and new companies that can use those resources to ship out finished products across North America. Alberta and the adjoining province of Manitoba are also home to Canadian lithium mines, which are growing in importance as more battery makers locate in North American. The heartland of the U.S., from the northern states to the Gulf of Mexico, is a center of manufacturing and agriculture, along with a robust distribution sector and strong transportation network that includes rail, highway, ports, and air services. While the highway system, in particular, has been the backbone connecting this heartland to both Canada and Mexico, the now seamless rail connection across three countries creates more opportunities for companies to expand or locate and still reach all of the North American markets as well as having access to key ports on all three coasts. Travis Stephens, president of the Joplin Area Chamber of Commerce, points out that his region has a historic strong manufacturing and distribution base because of its central U.S. location and access to Interstates 44 and 49. While the KCS railroad was also a benefit in reaching Gulf and Mexican ports, the new CPKC connectivity to Canada can be a “game changer for manufacturing and distribution companies to reach all of North America from our location in the heart of the U.S.” The CPKC creates new opportunities for logistics, allowing companies to manufacture, distribute and/or supply across North America while also having a wide array of port options for overseas exports and imports. As eloquently stated by Barber, the CPKC “binds our three nations in a dance of commerce, culture, and shared aspirations. In short, in connects our destinies.” FOR ADDITIONAL INFORMATION: CPKC Limited. www.cpkcr.com/en/customer-resources/ Dean Barber. [email protected] Heather Stromquist. [email protected] Travis Stephens. [email protected] ROB O’BRIAN, CEcD O’Brian & Associates. Rob O’Brian served as President of the Joplin Area Chamber of Commerce for twenty-three years. Rob founded O’Brian and Associates in early 2018 to advise and assist communities on economic and workforce development. 417.438.0100 [email protected] www.obrianassociates.com 43. FDI ALLIANCE INTERNATIONAL
Georgia is known as the Peach State and is located in the Southeastern region of the United States. It is bordered by such states as Tennessee, North Carolina, South Carolina, Florida and Alabama. With an estimated population of almost 11 million, it is the 8th most populated state within the 50 United States. The Governor of Georgia is Brian Kemp and the capital of this state is Atlanta. Atlanta is the largest city in the state with regard to population. This city contains over 50% of the entire state’s population. Atlanta is a global city as it is generally considered to be important in the global economic system. Georgia was voted #1 for business by numerous business publications over the past 5 years. Benefits include low taxes, a skilled workforce, high state credit ratings and a reliable infrastructure. There are many Fortune 500 companies with their headquarters in the state of Georgia. Some of these include Home Depot, UPS, Coca-Cola, Aflac, Southern Company, Honeywell and SunTrust Banks. The state’s corporate tax is lower than before at a rate of 5.75%. Exhibiting strong fiscal discipline, it is required by law to balance the state budget. This helps to maintain one of the lowest debt-per-capita levels seen in the nation. Corporate tax is calculated on sales you make inside Georgia. Your sales made elsewhere won’t be thrown back for taxation. If your company increases imports or exports through one of the ports by 10% you may qualify Freeport tax credit bonus. There are four ports in total within the state. These include the port of Brunswick, Port Bainbridge, Port Columbus and the Port of Savannah. The Port of Savannah is the fourth largest seaport and the fastest growing container seaport in North America. Major companies such as Target, Ikea and Heineken operate distribution centers in close proximity to the Port of Savannah. Transportation and distribution include rail and interstate highways. From the Port of Savannah, rail transportation is the closest and fastest route to major populated cities within the Southeast. Georgia is ranked #3 in the nation for rail accessibility. Distribution benefits are increased with immediate access to interstate highways. Most manufacturing points can be reached within 1- 2 days by utilizing the two major interstate systems. Hartsfield-Jackson International Airport is the busiest airport in the world. It is located in the capital city of Atlanta. It is the hub for Delta airlines with domestic and international flights available. This airport provides 1,000 flights per day. The Atlanta airport moves over 650,000 tons of cargo annually. With a seven mile proximity to downtown Atlanta, it is also very accessible to business travelers as well as tourists. Agriculture is thriving with farms that produce peanuts, corn and soybeans across the middle and southern parts of Georgia. It should be noted that the state is also the number one producer of pecans in the world. This state is one of the top five blueberry producers in the United States. There’s also very strong poultry presence in Georgia. The city of Gainesville, Georgia touts self as the poultry capital of the world. There’s quite a textile industry in Rome, Columbus, Augusta and Macon. Industrial products include textiles and apparel, food processing, chemicals in products, electrical equipment, paper products and transportation equipment. Kia Motors started its first United States production plant in Georgia. GOVERNOR BRIAN KEMP STATE OF GEORGIA 44. FDI ALLIANCE INTERNATIONAL
Situated on Interstate 16 in east central Georgia, Treutlen County is strategically located between the Port of Savannah, the third busiest container port in the United States, and Atlanta, which boasts the world’s busiest international airport. The abundant land availability with a major interstate access allows businesses to take advantage of an affordable cost of doing business that is well below the national average. ࣿ Centrally Located for Easy Access Treutlen County has I-16 which facilitates transportation via truck and by rail-based transportation supplier Genesee Wyoming that serves a direct line into the Savannah Port. The region is also home to LanzaJet, a provider of renewable diesel and sustainable aviation fuel, which is currently in the final stages of building a facility that will open later in 2023, as well as Modutek International, LLC, a manufacturer of modular buildings and power systems. Korean automaker Hyundai also has a facility that is under construction 70 miles away. Treutlen County’s proximity to the Port of Savannah (largest container terminal in North America) presents a significant opportunity for companies locating in the region. While the Savannah Port land itself is pricey and becoming scarce, Treutlen County offers an ample amount of low-cost land that is attracting companies looking to expand both their domestic and International business sectors. ࣿ A Ready Workforce Today, the people of Treutlen County are looking for new employment opportunities close to home. Many of its residents find it necessary to leave the county for work but would prefer to work closer to their residence. These same workers are seeking more than just a job: they are looking for employment that helps build and enhance their communities, and they’re ready to reward the right businesses with their commitment to a high work ethic and loyalty to their employers. The region offers an established labor pool that does not compete with the labor pool in Savannah. In short, it’s far enough away to prevent competition with Savannah for labor resources, but close enough to take advantage of the trade generated by the port. Treutlen County offers the right location with a small Georgia town feel and a distinct cultural flair. The residents are friendly, community-minded and generous. For those looking for a more big-city feel for work or play, the county is situated close to interstate routes that enable fast access to the bright lights of the big city. ࣿ Educating the Workforce The region features a variety of high schools that offer a trade focus, so students already have skills when they graduate. The local school districts are willing and flexible to work 46. FDI ALLIANCE INTERNATIONAL
SEAN REGISTER Executive Director, Treutlen County Development Authority M 1830 MLK Jr Dr. Soperton, GA 30457 N 912 663 3047 E [email protected] d InvestInTreutlen.com with employers to help students attain the customized skills they need to succeed in the area via work-study programs and training. In addition, there are four technical colleges in the immediate area. Across the state, more than 37,000 students graduated from the 22 colleges of the Technical College System of Georgia last year, and 99 percent of these graduates are presently either employed or continuing their education. ࣿ The Georgia-16 Industrial Park and Containerplex / Treutlen County Industrial Park Expansion The Georgia-16 Industrial Park and Containerplex is located 160 miles southeast of Atlanta and 80 miles west of the Port of Savannah just off Interstate 16. Ideal for manufacturing, warehousing and trucking operations, the site consists of 672.12 acres and will feature a 500,000 gallon water tower, a container yard and multiple sites that can handle any size building. There are also plans for a full-service travel center on a corner of the site that can be scaled up to include hotels and restaurants. The site has been cleared and is pad-ready for new construction, with finalization underway for water and sewer services. The property offers a 1,500 gallon per minute water supply, and there is a main natural gas line courtesy of Atlanta Gas Light on the edge of the site as well as a substation for electricity nearby to ensure a ready supply of power. Companies locating on the site will have a choice of electric service providers for loads over 900 KV from two major suppliers. Treutlen County also has the Treutlen County Industrial Park Expansion that is a 150 acre cleared tract located on Highway 29 with city water & sewer already in place. It is also served by Genesee & Wyoming Railroad and connect with both CSX and Norfolk Southern. Both sites are centrally located to be convenient for workers: over 118 thousand potential workers live within a 30-minute drive of the site, and more than 228,000 live within a 60-minute drive, which offers companies a compelling labor pool from which to employ . ࣿ Foreign Trade Zone (FTZ) Status Treutlen County is located within the Foreign Trade Zone 104 service area, which offers significant financial benefits to companies engaging in importing. The FTZ program expedites and encourages foreign commerce by lowering the costs of U.S.-based operations engaged in international trade, thus providing a secure, efficient and profitable way to compete effectively in domestic and global markets. FTZs provide a competitive advantage for U.S.-based manufacturing and distribution operations. As a result, jobs that otherwise might be located abroad are created and retained in the United States. FTZs also eliminate duties on exported merchandise, allowing U.S.-based companies to remain competitive in export markets. These zones are also beneficial for multinational firms that wish to establish U.S. based operations, attracting foreign investment to U.S. soil and encouraging the use of American-made components, which in turn provides added stimulus to local and regional economies. ࣿ A Variety of Compelling Incentives Companies locating at the I-16 Industrial Park will have access to the State of Georgia’s full portfolio of incentives, including Georgia Quick Start, the state’s job training program, Georgia Economic Development Job Tax Credits and possible tax deferrals. Georgia’s Job Tax Credit provides companies locating in the state with a job tax credit ranging from $1,250 to $4,000 per year for five years for every new job created. In certain areas, the credit can also lower a company’s payroll withholding obligations. ࣿ An Unmatched Quality of Life In addition to a strong community feel, the region is highly affordable. Average home prices are very affordable and are significantly lower than the national or state average. The region offers proximity to state parks, golf courses, paddleboarding and kayaking on the Cypress River and space for hunting and fishing. Each November, the county hosts the Million Pines Arts and Crafts Festival, one of southeast Georgia’s most popular cultural events. Not only is Treutlen County a good place to live, but it’s also a good place to work and a good place to raise a family. The region features a temperate climate with favorable weather conditions all year long and is far enough away from the coast to minimize hurricane risks. Experience the difference in Treutlen County. Contact the local leaders with the Treutlen County Development Authority to learn more about the advantages of doing business in Treutlen County. 47. FDI ALLIANCE INTERNATIONAL
Established in 1934, Foreign-Trade Zones (FTZs) legally exist outside U.S. customs territory, although they physically function within the country. Their symbiotic relationship with Foreign Direct Investment (FDI) in today’s globalised economy goes beyond importing and exporting goods, significantly influencing FDI inflow. This article examines the increasing interrelation between FTZs and FDI in the U.S., backed by relevant data and diverse perspectives. A BRIEF LOOK AT FTZS Operated under U.S. Customs and Border Protection, FTZs are secure areas designed to promote business activities. They provide dynamic incentives to companies, facilitating competition, growth, and enhancing supply chain operations. While FTZs embark on unique customs procedures, they abide by all federal, state, and local laws. They differ from free-trade zones of other countries, where divergent labor or tax laws might apply. FTZS IN THE MODERN ECONOMY FTZs’ adaptability makes them vital in today’s changing market landscapes. They stimulate economic growth by simplifying customs procedures, offering tariff advantages, and incentivizing FDI. While retail usage is not permitted within the FTZs, most other standard business activities can prosper. The primary benefit remains the deferral of U.S. Customs entries until the goods move from the FTZ into the U.S. market, especially beneficial while handling high-value goods or high-duty rates. Furthermore, if these goods are exported, no entry is filed, and no duty is paid. FTZs become advantageous for distribution facilities serving other North American countries. Warehousing goods for U.S. sale allows the deferral of duties and shipping goods to other countries eliminates the need for any duty payment. Another considerable benefit is the ‘inverted tariff.’ If a component essential for manufacturing attracts a higher duty than the finished product itself, an FTZ-approved company can import such components, combine them with domestic goods, and pay duties based on the lower rate of the finished product. Further, the ‘production equipment benefit’ permits companies to import equipment for their manufacturing sites within FTZs without individual approval – a vital feature when enlarging existing plants or constructing new ones. SHIFTING GLOBAL ECONOMY AND THE ENHANCED ROLE OF FTZS In the changing landscape of the global economy, concepts such as reshoring are capturing investors’ attention more than ever. Herein lies an amplified role for Foreign-Trade Zones (FTZs) - they are not only critical in luring and nurturing Foreign Direct Investment (FDI) but also serve as potent catalysts for domestic economic growth and the strengthening of a country’s global competitiveness. • STRATEGIC USE OF FTZ ANCILLARY BENEFITS A key to unlocking substantial cost savings lies in the intelligent use of FTZ’s ancillary benefits. When integrated wisely into supply chain operations, these benefits can save companies millions. However, to gain paramount benefit, it’s imperative to discern the rules of FTZs. Consider an automotive manufacturer operating within an FTZ that purchases tires from another FTZ-operating tire supplier. This scenario allows the tire supplier to transfer tires in-bond from its FTZ to the auto manufacturer’s FTZ without any duty payment until the tires enter U.S. commerce. If these tires (or the car they are attached to) are eventually exported, no duty is owed – a boon for the participating enterprises. It might be just tires in this instance, but extrapolate the same advantage to hundreds of other components. The FTZ-based auto manufacturer can THE ROLE OF FOREIGN-TRADE ZONES IN ATTRACTING FOREIGN DIRECT INVESTMENT 48. FDI ALLIANCE INTERNATIONAL
thus provide its suppliers with a substantial cumulative cost advantage, accruing significant financial savings over time. Although the automotive sector is used as an example, other industries such as apparel, aerospace, electronics, pharmaceuticals, and technology harness FTZs’ advantages in parallel ways to create a competitive edge. • THE GIFT OF SUPPLY CHAIN VISIBILITY Operating within an FTZ demands strict reporting that requires businesses to keep meticulous supply chain records – from the origins of import countries and transportation companies to customs classifications, warehousing details, inventory processing, manufacturing incidents inside the FTZ, and export records. This meticulous record-keeping may seem cumbersome, but it bestows a hidden advantage: Profound visibility into end-to-end supply chain operations. This clear operational sight allows companies to discern further efficiencies, safeguard from potential disruptions, and gather valuable strategic data to guide future decisions. Automating these precise reporting requirements with innovative software solutions can further streamline this process, lowering the operational burden while retaining the benefits of improved visibility. THE FTZ - FDI SYNERGY Foreign Direct Investment (FDI) and Foreign-Trade Zones (FTZs) have seen an intertwined rise, with both shaping and supporting each other’s growth. Recent reports further underscore this relationship, reflecting how these two economic driving factors bolster each other. The National Association of Foreign-Trade Zones (NAFTZ) reports that FDI increase in FTZs has been considerable, with a 6.1% rise – the highest since 2006 – indicating the importance of FTZs in FDI attraction and enhancement in the U.S. The benefits of FTZs, driving the increase in FDI, span different industries, including traditional manufacturing and emerging sectors like technology and services. A turning point appeared for FTZs in the previous years, with policymakers across the globe increasingly embracing the benefits of creating FTZ programs. New initiatives from diverse international organizations further reinforce the rising importance of FTZs. However, the demand for FTZs is not just policy-driven; private sector interest in these zones has soared to new heights. In 2022, FDI into free zones worldwide reached a record high, with foreign investors announcing 591 FTZ projects representing an impressive total investment of $84.12 billion. This reflects a significant surge in demand since the Covid-19 pandemic, with FDI into FTZs over the last two and a half years exceeding the total FDI for the previous five years combined. The scale and value of these projects suggest that the onset of the pandemic has ushered in a new era for FTZ-based FDI. Data implies that FTZs have not only weathered the pandemic but also effectively capitalized on market disruptions triggered by it. With ready-made facilities, simplified business setup processes, and numerous economic incentives, FTZs are perfectly positioned to capitalize on the ongoing reshoring and nearshoring trends caused by disruptions to supply chains. The figures also underscore the increasing diversity in the range of industries and activities benefiting from these zones. While the green fuel sector dominated in 2022, a broader range of sectors, including metals, communications, and real estate, have raised their commitments in 2023. This could indicate that the advantages of FTZs are increasingly understood and utilized by a broader spectrum of industries. Despite potential challenges posed by global reforms like the proposed 15% global corporate minimum tax, FTZs’ resilience through the pandemic suggests a solid capacity to adapt. Given that investors primarily see the non-fiscal benefits as the most significant draw of FTZs, these zones’ ability to attract FDI seems set to persist. CONCLUSION FTZs are playing a critical role in boosting FDI in the current global economy. They foster foreign investment by crafting a favorable entrepreneurial environment, which in turn stimulates job creation and domestic economic growth. As they adjust to evolving business needs, their role in shaping the U.S.’s economic future becomes even more pivotal. BRUCE TAKEFMAN President & Founder at ResearchFDI Bruce Takefman, Founder & CEO of ResearchFDI is an award-winning, serial entrepreneur and philanthropist. A marketing firm specializing in investment attraction services for economic developers has helped secure over $5 billion USD in new capital investment. www.researchfdi.com [email protected] 49. FDI ALLIANCE INTERNATIONAL
Over the past decade or so Florida has solidified its trade position as the gateway to the Americas with its primary export markets comprising South and Central American countries. As the state economy continues to grow from its current size as the 15th largest economy in the world, its trade with Canada, Germany, UK, China, and Japan remains strong. While Florida’s dominance in tourism, hospitality, and agriculture is well recognized, the lesser-known fact is the state economy is balanced by its manufacturing activity, as illustrated by its top merchandise exports: civil aircraft engines and components, electric apparatus for line telephony, motor cars and vehicles. Furthermore, in terms of tonnage, fertilizers, food and other agricultural products are projected through 2045 to represent the bulk of exports. The future of Florida as a major exporter of high-value products remains bright, because its trade position is supported by a well-coordinated infrastructure system. A thorough analysis by the Florida Department of Transportation (FDOT) ranks the state’s cluster of logistics and distribution centers third densest in the US, with its foreign trade zone network rated second in the country, and its warehouse and distribution activity ranked third in the country for exports. Moreover, the American Society of Civil Engineers has graded Florida’s infrastructure #1 with ‘‘an expansive roadway and rail system as well as 15 major seaports, 20 commercial service airports and 2 spaceports.” FDOT has produced a study called Freight Mobility and Trade Plan, which provides a deeper look into the various pieces which make up Florida’s enviable infrastructure system. Recognizing how Florida’s strong economy is intertwined with its ability to create high value goods, which in turn is supported by its multi-modal infrastructure is what I hope to impart through this piece. The Sunshine State has a wide-ranging network of 140 airports, including 20 airports providing scheduled passenger service and general aviation services, 109 public-use airports and 11 private-use landing fields. Many of these airports are also capable of accommodating air cargo. In terms of air cargo lift operations Miami International Airport is the leader handling more than 9.6 million pounds of daily lift capacity, which represents 70% of the state’s daily air cargo, followed by Orlando International handling 12% of cargo lift operations, with Tampa International and Fort Lauderdale/Hollywood International ranking at third (6%) and fourth (5%), respectively. As for road feeder cargo service, the state processes 24 million pounds of cargo on a weekly basis, with Miami International handling the largest amount at 11 million pounds, followed by Orlando and Tampa. With over 3,800 miles of railroad including 2742 miles of mainline, Florida is ranked 23rd for the total number of railroads by the Association of American Railroads, and 24th for railroad mileage. CSX operates the most rail in the state controlling more than 50% of total rail mileage, followed by Florida East Coast. The Florida Department of Transportation is the third largest owner with most of its rail being operated by private operators. According to FDOT, a freight intensive area is a cluster or group of freight facilities which generates, distributes, or attracts large amounts of freight activities and Florida: Gateway to the Americas and to the World 50. FDI ALLIANCE INTERNATIONAL