Columbus 2020 Investor Update | January 2015 | Brad McDearman

Columbus Global Connect ReleaseJanuary 29, 2015

79% share of global economic growth occurring outside the U.S., 2013-2018

The Bulk of Economic Growth is Occurring Outside the U.S.

Source: World Economic Outlook, International Monetary Fund, 2014

Global Middle Class - 2009 | Share of Global Totals

18% North America

36% Europe 28%

Asia Pacific

Source: Kharas and Gertz, “The New Global Middle Class,” 2010

Global Middle Class - 2030 | Share of Global Totals

7% North America

14% Europe 66%

Asia Pacific

Source: Kharas and Gertz, “The New Global Middle Class,” 2010

Population

66%

Land Area

12%

Exports

65%

FDI Jobs

74%

Top 100 Metros Share of U.S. Totals

Patents

78% 94%

Venture Capital

College Degrees

74%

Metros Are the Market

Source: Census, Brookings

2013

11.7%

2003

7.8%

U.S. Export Share of GDP

2%

67%

share of exporters

Large Firms (500+ Employees)

share of export value

The U.S. Is Increasingly Export-Oriented, but Large Firms Dominate

Exports Share of Top 100 Metro GDP Growth

(2009-2012)

54%

Source: Brookings, Census

Though Volatile, Global Investment Flows Are Growing

1984 1999 2012

FDI Flows (Capital Investment) 1980-2012

$2 trillion

$1 trillion

Global

U.S.

Source: UNCTAD

The U.S. Is Capturing a Smaller Share of Global Investment

12 percent

26 percent

45 percent

1984 1999 2012

U.S. Share of Global FDI (Capital Investment) 1980-2012

Source: UNCTAD

FDI Bolsters Exports and Innovation

U.S. Manufacturing

Exports

U.S. Manufacturing Employment

2%

20%

Foreign-Owned Firms Goods-Producing Industries, 2011

U.S. Corporate R&D

U.S. Employment

5%

19%

Foreign-Owned Firms 2011

Source: Brookings, Metro FDI, 2014; Bureau of Economic Analysis

Alternate Forms of FDI Need to Be Managed and Mainstreamed

FDI Capital Inflows 1992-2008

87% M&A

13% Greenfield

Acquired in 2007; added jobs and made a global research hub

Maintains manufacturing and R&D facilities in MD

M&A: MedImmune Montgomery County, MD Investors searching for opportunities in

real estate, firms, public assets

How to manage, organize, discern which opportunities are legitimate?

Private Investment: Seattle-China

Private Investment

Sovereign Wealth Funds

EB-5 Immigrant Investor Visa

Infrastructure

Source: Brookings, Metro FDI, 2014; Bureau of Economic Analysis

Goal: Catalyze a shift in economic growth policy and practice that results in more globally competitive metropolitan areas, positioning them for high-quality growth and better jobs for more workers in the 21st century economy.

1. Research 2. Convenings 3. Exchange

GLOBAL CITIES INITIATIVE A Joint Project of Brookings and JPMorgan Chase

The Exchange Is 28 U.S. Metros at the Vanguard of Global Engagement

Exports: New Cohort Baltimore Fresno Houston Kansas City Philadelphia Salt Lake Seattle St. Louis

Exports: Current Atlanta Charleston Chicago Columbus Des Moines Indianapolis Jacksonville Louisville-Lexington Los Angeles Milwaukee Mpls-St. Paul Phoenix Portland Sacramento San Antonio San Diego Syracuse Tampa Bay Upstate SC Wichita

Columbus Mpls-St. Paul Portland San Antonio San Diego Seattle

FDI Pilot

Key Takeaways from Global Trade and Investment Plans

Specializations with Global Reach Clusters, talent, innovation, assets, connections

M&A Matters Majority of FDI, brings knowledge, cash infusion, export channels

Retention And Expansion Is Critical Understand and support the needs of existing firms

Middle Market Is the Sweet Spot Target threshold firms and under-exporters

Global Needs to Be a Mainstream Priority Long-term commitment from central players, part of every day practice

Columbus Global Connect ReleaseJanuary 29, 2015