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

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Presentation on theme: "NABE – Foreign Direct Investment a regional perspective Sieb Hoogstra, OCO Global 16 September 2009."— Presentation transcript:

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

2 2 Agenda 1.Introduction 2.Global FDI 3.USA regional FDI 4.How to respond?

3 3 Introduction Some facts Per year approximately 10, ,000 FDI projects A very competitive market Attracting FDI has many advantages – Higher paid jobs – Direct + indirect jobs – Cluster building and even outward FDI has positive effects

4 4 Global FDI OCO Global

5 5 Global FDI - Destinations Asia and Western Europe are large receivers of FDI North America attracts 8% of FDI, but is source of 25% of FDI

6 6 Global FDI - Destinations Over the last decade services have become more important in FDI Upcoming sectors such as Renewable Energy, Pharma/Biotech

7 7 Global FDI – Top destination cities 2008 Source : A New Investment Paradigm - OCO Global 2009

8 8 USA regional FDI OCO Global

9 9 Introduction Structural reasons to invest in USA : – Market (size of NA market, purchasing power, …) – Competitiveness (productivity, flexibility of labor market, world class universities & R&D, capability to attract international talent, …) – Innovation (technology/organization/commercial, …) Which make USA a must be location Economic reasons to invest in USA : – Globalization (technology and no expansion on home markets) – Conversion rates (US as low cost location)

10 10 Introduction Challenges: Economic crisis – Uncertainty about markets, financing,... – Protectionism Opportunities: Improved image USA USA taking lead on upcoming sectors USA first out of the recession....

11 11 Source : fDi Markets TM – OCO Global Top 10 destination states global FDI (2003-Q22009)

12 12 Source : fDi Markets TM – OCO Global Top 10 destination states by world region (2003-Q22009)

13 13 Source : fDi Markets TM – OCO Global High growth inward FDI to the USA Sector No of Projects 2003 No of Projects 2008 Percentage Increase Top 3 States for Sector (Number of Projects ) Real Estate California (11), Texas (10), New York (9) Alternative/Renewable energy Texas (14), California (11), Illinois (9) Communications California (42), Texas (24), New York(23) Industrial Machinery, Equipment & Tools North Carolina (24), Georgia (23), California (20) Financial Services New York (78), California (57), Texas (28) Transportation819138Texas (14), Florida (9), Illinois (7) Business Services New York (66), California (31), Illinois (23) Software & IT services California (127), New York (75), Texas (44) Textiles285079New York (83), California (41), Florida (18) Electronic Components173076California (19), Michigan (14), Texas (11)

14 14 Source : fDi Markets TM – OCO Global Top 10 source states global FDI (2003-Q22009)

15 15 Source : fDi Markets TM – OCO Global High growth outward FDI from the USA Sector No of Projects 2003 No of Projects 2008 Percentage Increase Top 3 States for Sector (Number of Projects ) Alternative/Renewable energy643616California (38), New York (20), Virginia (9) Real Estate Colorado (78), California (69), New York (53) Biotechnology California (67), Massachusetts (35), New Jersey (19) Transportation Tennessee (72), Georgia (62), California (50) Machinery, Equipment & Tools Texas (84), Connecticut (76), Illinois (63) Textiles California (105), North Carolina (70), New York (63) Aerospace Illinois (35), Connecticut (25), North Carolina (13) Beverages Georgia (92), New York (41), California (15) Communications California (298), New Jersey (81), Illinois (69) Financial Services New York (548), California (95), Illinois (68)

16 16 How to respond? OCO Global

17 17 Introduction Responses to the crisis by companies: – Postponement of expansion projects – Spreading risk – Risk averse market entry – More research and decision time – Tough negotiations

18 18 Introduction How to address the challenges? – Aftercare – More targeted positioning – Pro-active company approach – Enhance service offer – Improve investment environment

19 19 THANK YOU

20 20 Points of Contact Sieb Hoogstra Director T: +32 (0) E: OCO Global (Head office) 6 Citylink Business Park, Durham St, Belfast, BT12 4HB, Northern Ireland OCO Global 146 Fleet Street, London EC4A 2BU, UK OCO Global 45 Broadway 21st Floor, New York, USA OCO Global Avenue Louise 283/18, 1050 Brussels, Belgium OCO Software 10 West Beach – Cobh, Cork, Republic of Ireland OCO Global 65 Rue dAnjou, Paris, France


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