Ensuring Pennsylvania’s Global Competitiveness Evan Hoffman, Organization for International Investment (OFII) David Briel, PA DCED Office of International Business Development (OIBD) Suchit Bachalli, Unilog Content Solutions #PEDAspring17 April 25, 2017 @InsourceJobsUSA @InvestPA @Unilog1
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Ensuring Pennsylvania’s Global Competitiveness
Evan Hoffman, Organization for International Investment (OFII)
David Briel, PA DCED Office of International Business Development (OIBD)
Suchit Bachalli, Unilog Content Solutions
#PEDAspring17
April 25, 2017
@InsourceJobsUSA @InvestPA @Unilog1
Educate | Advocate | Connect
Number of Americans who work for an insourcing company.
Wage premium insourcing workers earn over economy-wide average.
Percentage of U.S. exports produced by insourcing companies, valued at $425 billion
Increase in corporate charitable giving from 2000 to 2010 compared to economy contraction of 5 percent
Industry Breakdown
Manufacturing$1.23 T
Finance & Insurance
$388 B
Whole-sale Trade
$367 B
Other Industries$812 B
R&D Spending
Chemical Manufacturing $22.4B
Transportation Manufacturing $6.3B
Other Manufacturing $12.4B
Other $7.4B
Wholesale Trade $8.4B
Worldwide Exports
Europe $228B
Asia & Pacific $117B
Latin America $57B
Canada $13B
Middle East & Africa $4.5B
Exports to Europe
U.K. $73B
Other $47B
France $23B
Germany $45B
Netherlands $19B
Switzerland $21B
Pennsylvania ranks 4th nationally in the number of paychecks supported directly and indirectly by global investment at 971,800
What matters most between competing states?- Proximity to customers- Having the right workforce- State/local incentives
Understanding current and future industry clusters
Mapping out international assets, worldwide connections, workforce capabilities, and educational networks
Creating effective aftercare for existing investors
Understanding and responding appropriately to mergers and acquisitions
Ensuring nondiscrimination in policy and regulation
• Tax reform – lower rate, non-discrimination, interest deductibility • Section 385 Treasury Regulations• Tax treaties• Extraterritorial double taxation at state level• Procurement and domestic content requirements • Equal participation in the U.S. political process• M&A Environment - Committee on Foreign Investment in the U.S. (CFIUS)• Federal advisory committees• Extraterritorial application of U.S. law and courts• State sanctions policies
Speaker Paul Ryan (R-WI) and Ways & Means Chairman Kevin Brady (R-TX) are proponents of the Blueprint, which has come under a lot of fire
• Border Adjustment Tax (BAT)• Denies the deduction for cost of imported goods, exempts income generated from exports• Ardent opposition from retailers, importers, Senate
• Territorial tax system
• Removes net interest deduction and gives full expensing
Latest—
• The White House and Senate Finance have both publicly parted with the Blueprint and both stated they want to drive tax reform forward
• House GOP plans to hold hearings on the Blueprint, including the BAT, after Easter recess
Trump’s stated motto is “Buy American, Hire American”
Unique position of GOP President taking a traditionally Dem position
A recent presidential memo directed that pipelines should “use materials and equipment produced in the United States, to the maximum extent possible and to the extent permitted by law"
This is unique in its directive to a private company
We’re focused on “Buy America” in appropriations bills, especially if the bipartisan infrastructure idea becomes live
Evan HoffmanOrganization for International [email protected] 202.659.1903OFII.org
April 25, 2017
OFFICE OF INTERNATIONAL BUSINESS DEVELOPMENT
PEDA Spring Conference
Ensuring Pennsylvania is
Globally Competitive
#PEDAspring17 @investPA @PEDAtweets
OUR MISSION
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The Office of International Business Development (OIBD) is committed to helping
Pennsylvania companies increase their export sales and to encouraging foreign
companies to invest in Pennsylvania.
OFFICE OF INTERNATIONAL BUSINESS DEVELOPMENT
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With one of the largest
network of overseas offices of
any state in the U.S.,
Pennsylvania’s Office of
International Business
Development (OIBD) is
committed to supporting
Pennsylvania companies by
working with them to increase
their export sales and
encourage foreign companies
to invest in Pennsylvania.
OUR INVESTMENT SERVICES
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Networking with potential partners, including:
Aiding companies in setting up U.S. entities
Providing information on Pennsylvania’s labor,
average wages, business tax structure, and more
Coordinating site and building searches
with regional partners
Work with the Governor’s Action
Team to vet projects for business assistance
programs
• Suppliers• Colleges & universities• Law firms• Accounting firms
• Banks• Real estate professionals• Construction &
engineering firms
JOINT VENTURE PARTNERSHIP PROGRAM
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Pennsylvania regularly receives economic
development lead opportunities for companies
interested in:
• locating in
• investing in
• trading with
• contracting with or
• partnering with
businesses located in Pennsylvania.
PENNSYLVANIA ECONOMY
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Pittsburgh, PA
PENNSYLVANIA’S ECONOMY
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largest economy in the world
19th
A GDP of
$709B USD
Pennsylvania is located in a region that is so prosperous that, if the area within a 320-km radius of Philadelphia was considered to be a single economy, its GDP would be greater than France, the 6th
Source: FDI Markets, Data is Jan 2003 through Jan 2017
FDI TRENDS FOR PA - INDUSTRY
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Source: FDI Markets, Data is Jan 2003 through Jan 2017
FDI TRENDS FOR PA – PROJECT TYPE
35
Source: FDI Markets, Data is Jan 2003 through Jan 2017
FDI TRENDS FOR PA – BUSINESS ACTIVITY
36
Source: FDI Markets, Data is Jan 2003 through Jan 2017
WHY PENNSYLVANIA?
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Source: FDI Markets, Data is Jan 2003 through Jan 2017
38
PENNSYLVANIA –
STAYING RELEVANT
Appalachian Trail on Peters Mountain, PA
IMPACT MARKETS
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• High potential
• Growing population
• Growing entrepreneurial class
• Increased ability & interest to invest abroad
• Growing wealth
• Safe harbor for investments
Presque Isle lighthouse-Erie, PA
MANAGEABLE MARKETS
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• PA already has existing relationships
• Sister Cities
• Chambers of Commerce
• Cultural/Ancestral Connections
• Government relationships & contacts
• Entrepreneurship
• Strong education culture
• Money to invest
City Hall, Philadelphia, PA
MEDIA
41
RELATIONSHIPS
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• Be in the Market• PA Representative
• Business Missions
• Develop Local & International Resources
• Chambers
• Embassies
• Educational institutions
• Ambassador programs
• Engaging existing international companies
WORKFORCE DEVELOPMENT
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• Train for the future
• Engage students at younger ages
• Less gender specific career paths
• Redefine manufacturing training
• Perceptions can mean lost potential
PLANNING FOR THE FUTURE
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Lancaster, PA
PLANNING FOR THE FUTURE
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• Assess their location’s capabilities and competencies in areas of growth,
resulting in a wish to be closer to market or leverage the latest technological
improvements.
• emerging services
• competence centers
• new types of manufacturing facilities,
• Ensure that their locations align skills supply and demand in key target
sectors.
PLANNING FOR THE FUTURE
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• Ensure that people obtain skills that are relevant for industries targeted
for growth.
• Review the performance of their organization (along with local
government, stakeholders, etc) to ensure that activities are aligned with the
wider economic development strategy.
• Widen the mandate beyond traditional investment promotion activities to
include cluster development, focusing on key target sectors and clusters
and involve a number of activities to foster innovation, skills development,
partnerships and entrepreneurship among indigenous and foreign
companies.
CONTACT US
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David BrielExecutive Director, InvestmentOffice of International Business DevelopmentPennsylvania Department of Community & Economic [email protected]://dced.pa.gov/invest