Brookings Metropolitan Policy Program: Global Cities Initiative, Columbus

@bruce_katz#globalcities Columbus, OH / May 9, 2012

More Jobs11.2 millionjobs needed

More Jobs

More Jobs & Better Jobs

1 2 3 A vision for the next 1 American economy

1 2 3 The next economy will be2 largely metropolitan

1 2 3 Metropolitan areas METRO3 are driving innovation INNOVATION

1 2 3 A vision for the next 1 American economy

Global GDP 21.0% BIC Countries 19.9% US 2009Source: International Monetary Fund, World Economic Outlook Database, April 2010

Global GDP 26.5% BIC Countries 17.9% US 2015Source: International Monetary Fund, World Economic Outlook Database, April 2010

Global Metro Population 50% 2009

Global Metro Population 60% 2030Source: UN Department of Economic-Social Affairs, World Urbanization Prospects, 2009

Economic Performance 2010-2011 Highest Performing Metros Lowest Performing MetrosSource: Brookings, Global MetroMonitor, January 2012

Exports Share of GDP 2010 30% 29% 22% 13% China Canada India 15% 15% United States Japan European UnionSource: Brookings analysis of WTO and EIU data, 2011

Transport Networks are Clogged and Congested

Can we get back into the export game?

11%US export growth2009-2010

46%exports share ofGDP growth2009-2011

$944 billionUS manufactured exports2010

Top Manufacturing Exporting Countries 2010, Billions $1477 $1091 $944 $680 $409 France Japan United States Germany ChinaSource: World Trade Organization, 2011

What the US makes The world takes

US Service Trade Billions, 2010 $518 $160 billion $358 trade surplus Service Service Imports ExportsSource: World Trade Organization, 2011 (Data reﬂect Commercial Services)

Service Exports Share of World Total, 2010 14.0% United States 6.3% GermanySource: Brookings, Export Nation 2012

“We set a new goal: We will double our exports over the next ﬁve years, an increase that will support two million jobs in America.” President Obama January 27, 2010Photo: Pete Souza, The White House

Can the U.S. play in thelow carbon revolution?

2.7 million clean economy jobsSources: Brookings-Battelle Clean Economy Database (2011)

2.7 million clean economy jobs 1.4 million biosciences jobs 2.4 million fossil fuel jobs 4.8 million IT jobsSources: Brookings-Battelle Clean Economy Database (2011), Brookings Analysis of Battelle, BLS, Moody’s Analytics data

$53.9 billion clean economy exportsSource: Brookings-Battelle Clean Economy Database (2011) and Moody’s Economy.com

Export Intensity Yearly Export Earnings per Job $20,124 $53.9 billion clean economy exports $10,392 National Clean Economy EconomySource: Brookings-Battelle Clean Economy Database (2011) and Moody’s Economy.com

35% manufacturing 68% manufacturing 90% manufacturing share of engineers share of R&D share of patentsSource: EOP “A Framework for Revitalizing AmericanManufacturing” (2009)Brookings “Accelerating Advanced Manufacturing with NewResearch Centers” (2011)

Can the U.S. be anInnovation Nation?

The En d of Cheap The coming US China ages mean boom and how Chinese w What d o soaring g? nufacturin for global ma shale gas will fuel it US Names China On Quake Dis May 10, 20 12 April 23, 2012 rupts Key ’s largest m anufacturin g Supply Ch China is the world ut put of televisions, Integs ual-Property in llect Ten years from today, the CEA and ains power. Its o nd other th s, steel pipes a Watchlist April 30, 20 smartphone your foot su rpassed ra Federal Reserve chairman will again 12 you can drop on w accounts fo celebrate a decade of unexpected stron 0. China no g Amer ica’s in 201 t s factories al manu facturing. I April hey 2012 t 30, growth. This time the credit will go to The earthquake t fifth of glob heaply that hat struck n de so much, so c s trading countrywide gains from the very low Japan Frida y forced shu ortheast have ma many of it tdowns acro d inflation in a may be energy prices found only in the US. broad spectr have curbe f cheap ChinChinas insufﬁcient protection of um of the co ss a ut the era o Low-cost energy will have spawned an industries, but the untrys partners. B a close. intellectual property rights remains a top bigger impa drawing to export surge in all sorts of goods, fro companies c ct f or U.S. trade policy, given the chem m ah ould come in priority for icals to tyres. ead as the d the weeks isruptions m "troubling" direction of recent government way through ake their the global su measures aimed at supporting domestic pply chain. The 8.9-mag innovation, the U.S. Trade Representatives nitude earth the largest o quake, one o ofﬁce said Monday. n record, ha f activity for n s crippled ow in a coun try that is aSource: Brookings analysis of Moody’s Economy.com data

d of Cheap The En The coming US China bh es Chinsa dah o e e w ge e n USaNaminosmaanmOn ow What do s o ring C nushale gas 38% facturing? Quake Dis for Inte wil u global mallectual-Property l fuel it r pts Key S April uppl Ma y 10Watchlist23, 2012 y Chains , 2012 ing manufactur ld’s largest is the worTe Apriisio0, , 01 China l fro f elev 3 n m r2t ay s s power. Aprilutput on tyears nd o2htodhin,gthe CEA and Its o 30, 2012 es a t e s, s Fe l pip teederal Reservsschairman will smartphone The o rtrpae ed yourratetasuhquake ts for a again manufacturing share of fo e you can dr op on leb ce a cade nof at st cted Chinas 010. JapannFdeaccionofrunexpeck nostrong t ou th China ow 2insufﬁcient protectfacto ies ru rthe America’s in growthturinisitime orcecredit will go to as rIs g. dtay f the d fac . Thrights remains shutdown manu b f globaltual unroady e eply t mt they a top s across economic growth propert h c fifth ointellec couchtrywispagaruhafro m in, so c de t ins given the very low oam e count f ding th the a priorityo en tion in manpolicy,t s have made for ergyustries, bf its tr d trade U.S. pr y o ut ices p Chnd onaigbe r imUS. rys curb ed infla c h m ly in fou ina e b y ge the have "troubling" directioniof recent government pact for partn drawin oa p chea the ermofa n er co will o ers. But Low-cost enes gy uld chave in awned an d supporting domestsp me measureslosaheaat rgethe allssortsio gothe weeks e. g to a c aimedsu as in di rupt export ic 2009 Q3 - 2011 Q4 way t ods,of ns mak from innovation, the U.S.to gh the globentatives e their chemicahroTrade Repres al s ls u tyres. upply chain. ofﬁce said The 8.9- Monday. m agnitude ear the largest o th quake, on n record, ha e of activity for n s crippled ow in a coun try that is aSource: Brookings analysis of Moody’s Economy.com data

11% wage premium in exporting ﬁrms Greater likelihood of health and retirement beneﬁts in export-intense industriesSource: Istrate, Rothwell & Katz, Export Nation (2010)

The U.S. must get smart... fast

Educational Attainment Associate’s Degree or Higher 56% 36% 39% 25% 19% United Asians Non-Hispanic African Hispanics States Whites AmericansSource: US Census Bureau, 2010 American Community Survey

Educational Attainment Associate’s Degree or Higher 25% 19% African Hispanics AmericansSource: US Census Bureau, 2010 American Community Survey

1 2 3 The next economy will be 2 largely metropolitan

Source: Brookings analysis of US Bureau of Economic Analysis data

OhioAkron, Cincinnati, Cleveland, Columbus Dayton, Toledo, Youngstown 71% 78% Population GDP

Ohio Akron, Cincinnati, Cleveland, Columbus Dayton, Toledo, YoungstownCanton, Springﬁeld, Mansﬁeld, Lima, Sandusky, Wheeling, Weirton, Huntington, Parkersburg 81% 86% Population GDP

Top 100 Metro Exports Share of U.S. Totals 75% 66% 63% Population Service Manufacturing Exports ExportsSource: Brookings, ExportNation 2012

Top 100 Metro Exports Share of U.S. Totals 76% 78% 66% 68% Population Chemical Business/ Computer/ Products Professional Electronic Services ProductsSource: Brookings, ExportNation 2012

Top 100 Metro Trade Logistics Share of U.S. Totals 88% 92% 66% 82% Population U.S. Air Foreign Airline Cargo Waterborne Boardings Weight Cargo WeightSource: Brookings analysis of US Census Bureau, FAA, and PIERS data (2009)

Aerial imagery: © DigitalGlobe, GeoEye, Sanborn, USGS, USDA FSA

Columbus, OH Metro Export Dashboard Goods & Services Exports Export Volume $7.9 B 38.9% 61.1% services share goods share of Export Jobs of exports exports 55,500 Top Services Sectors Top Manufacturing Sectors Export Intensity Business & Transportation 9.8% Professional Services 11.2% Equipment 18.9% 8.9% Travel & Tourism 8.8% Chemicals 14.2% Top 100 Columbus Financial Services 7.9% Machinery 11.3% Metros MetroSource: Brookings, ExportNation 2012

Locating American ManufacGuring: of Production t eography Trends in the l1 y Kru eger, and Howard Wia Susan Helper, Timoth ents engaged Findings of business establishm gs, and the number employment, earnin Analysis of data on g finds that: l metropolitan coun- in U.S. manufacturin itan areas and centra ally large metropol y high-technology Metro politan areas, especi g job s and nearly all ver ty of manufacturin in general ties, con tain the great majori vid e to manufacturing“Different regions manufacturing jobs, reflecting the advantages they pro g in particular. In 201 0, me tropolitan areas con - nology manufacturin ly high-technology and very high-tech 6 percent of moderate of the country, tained 79.5 percent of all manufacturing jobs, 78. chnology manufacturin g jobs. cent of very high-te g since manufact uring jobs, and 95 per cia lized in manufacturin ome increasingly spe different met- U.S. metropol itan areas have bec nufacturing activit ies and focuses. Nearly all me t- 1980 but they var y widely in their ma g indust ry even if they do not st one manufacturin ropolitan areas, ropolitan areas special ize strongly in at lea manufact uring as a whole. patterns of specialize strongly in or more of six broad itan areas follows one and even dif- Manufacturin g in most metropol anchored in high spe cial izations in computers and n- industry clustering . These patterns are ries, chemicals, machi manufacturing indust ferent counties electronics, transpo rtation equipment, low -wage tion. ’s 100 largest ery, and food produc areas. In the nation among metropolitan within the same Manufacturin g wages vary widely acturing earnings are hig hest in San Jose, at about metropolitan are as, the average manuf about $35,000. metropolitan $145,000 per year, and lowest in McAllen, at ly small but vary wid ely in size among g plants are relative 57.4 employ- politan manufacturin ma nufacturing plant had area differ greatly Metro average metropolitan areas. In 2009, the an City, NJ. metropolitan , TN, to a low of 9.1 in Oce of 203.6 in Kingsport t ees, a figure tha t ranged from a high cam e to a halt in the firs s toward the South in their manufac- The long-term shift of manufacturing job west had the fastest manufact uring job gains century, while the Mid h the Midwest and the South lost about decade of the 21st turing industries, over the last two years. Betwee n 2000 and 2010 bot s, while between the firs t quarter of 2010 and the fourth saw a 34 percent of the ir manufacturing job per cent while the South uring job gain of 5.2 technology lev- quarter of 2011 the Mid west saw a manufact shifts of manu- gain of 2.2 percent. tinuation of long-term els, wages, and The ear ly 21st century saw a resumption or con tral metropolitan countie s. Between politan areas and cen ee or more counties lost facturing job s away from metro thr tropolitan areas with plant sizes.” 2000 and 2010 the central counties of me while the outlying counties of those metropolitan manufacturing jobs s at a slower rate 33.9 percent of their lost manufacturing job h metropolitan areas s gained areas lost 29.3 percent. Althoug 0, non metropolitan countie ween 2000 and 201 than nonme tropolitan counties bet ing the past two years. tropolitan areas dur more rapidly than me manufacturing jobs an- and productivity adv ance the innovation lic policy should enh ntives for In view of these findings, pub acturers, while elim inating artificial ince itan areas offer manuf so much regional var iation in tages that metropol s. Because there is rts, manufacturers to see k low-wage location l, and metropolitan effo e a pla tform for state, loca policy should provid 1 ma nufacturing, federal d to regional nee ds. which can April 2012 BROOKINGS |formu late policies to respon www.brookings.edu/USmfg

Ohio Metro Manufacturing Specialties Cleveland Fabricated Metal Products Toledo Motor Vehicles & Youngstown Parts Primary Metals Akron Plastics & Rubber Dayton Machinery Columbus Motor Vehicles & Cincinnati Parts AerospaceSource: Brookings, Locating American Manufacturing 2012

Columbus, OH Metro Export Dashboard Top Manufacturing Sectors Manufacturing Jobs 63,154 Manufacturing Manufacturing Intensity Growth 2010 Q1 - 2011 Q4 8.5% 6.9% 3.3% 2.7% Motor Vehicles & Parts 18.9% Food 14.2% Fabricated Metals 11.3% Columbus Columbus US Metro US Machinery 10.2% Metro Nonmineral Mineral Products 6.8%Source: Brookings, Locating American Manufacturing 2012

1 2 3 Metropolitan areas METRO 3 are driving innovation INNOVATION

Innovate Locally

Market Assessment Metropolitan Business Planning Economic Profile Target Sectors 15% 12% 8% 9% 12% 13% 9%Seattle Establish Goals & Strategies SyracusePortland Double exports Support key sectors Minneapols- Increase global ﬂuency Boost SME exports Saint Paul Northeast OhioLos Angeles Collaborate to Compete Firms Universities Governments Philanthropy

Target industries: aerospace, Metropolitan Business Planning computer and electronic products, pharmaceuticals, professional services, ﬁlm and television Grow Los Angeles metropolitan exports Los Angeles Regional Export Council City of Los AngelesLos Angeles University of University of Southern California Los California Angeles

Key manufacturing growth sectors:Metropolitan Business Planning fuel cells, electric vehicles, organic electronics Retool manufacturing and retrain industrial workers Northeast Ohio Case Western The University John Glenn Reserve of Akron Research Center

www.columbuswor ldaffairs.org A catalog of interna tional assets in Gre ater ColumbusWith Support From : Columbus2020!, MORPC, and The Research By: Com Columbus Foundation munity Research Part ners

Innovate Locally Advocate Nationally

PennsylvaniaState Governments Center for Trade & Development 22 foreign trade offices firms assisted with 1,350 exports new exports from $483 m assisted firms, 2010 Florida Enterprise Florida 12 international offices state GDP added from export $3 b assistance & business development in 2011

State Governments

OhioState Governments Third Frontier to foster innovation $700 m ecosystem in Ohio 2010-2016

OhioState Governments Third Frontier to foster innovation $700 m ecosystem in Ohio 2010-2016 Edison Technology Centers regional centers providing innovation & 7 commercialization services JobsOhio Attracting foreign direct investment Empowering regional economic development

Federal Government port-Imp ort BankEx Reautho rization MAP-21 Moving Ah ead for Progress i n the 21st Centu ry

Federal GovernmentFree TradeAgreemee t ra Fr en T d Agreemene ra d e tFree TAgreement Modernize Trade Open Markets Protect Innovation Corridors

Federal GovernmentFree TradeAgreemee t ra Fr en T d Agreemene US Trade Representative ra d e tFree T Intellectual PropertyAgreement Enforcement Coordinator US Patent & Trademark Ofﬁce Modernize Trade Open Markets Protect Innovation Corridors

EXECUTIVE OFFICE OF THE PRESIDENT Council of Economic Advisors Council on Environmental Quality National Security Council Office of Administration Office of Management & Budget Office of Nat’l Drug Control Policy Office of Policy Development Office of Science & Technology Policy Office of the US Trade Representative CABINET AGENCIES Department of Agriculture Department of Commerce Department of Defense Department of Education Department of Energy Department of Health & Human Department of Homeland Security Department of Housing & Urban Department of the Interior Department of Justice Services Development Department of Labor Department of State Department of Transportation Department of Treasury Department of Veterans Affairs INDEPENDENT ESTABLISHMENTS AND GOVERNMENT CORPORATIONS Corporation for Equal EmploymentAfrican Development Central Intelligence Commodity Futures Consumer Product Defense Nuclear Environmental Export-Import Bank of National and Opportunity Foundation Agency Trading Commission Safety Commission Facilities Safety Board Protection Agency the United States Community Service Commission Federal Federal Mine Safety & Farm Credit Federal Deposit Federal Election Federal Housing Federal Labor Federal Maritime Federal Mediation and Communications Health Review Administration Insurance Corporation Commission Finance Board Relations Authority Commission Conciliation Service Commission Commission Federal Retirement National Aeronautics National Archives and Federal Reserve Federal Trade General Services Inter-American Merit Systems National Capital Thrift Investment and Space Records System Commission Administration Foundation Protection Board Planning Commission Board Administration Administration National Foundation National Railroad National Occupational Safety &National Credit Union National Labor National Mediation National Science Nuclear Regulatory on the Arts and Passenger Corporation Transportation Safety Health Review Administration Relations Board Board Foundation Commission Humanities (AMTRAK) Board Commission Overseas PrivateOffice of Government Office of Personnel Office of Special Pension Benefit Postal Rate Railroad Retirement Securities and Investment Peace Corps Ethics Management Council Guaranty Corporation Commission Board Exchange Commission Corporation US Agency for Selective Service Small Business Social Security Tennessee Valley Trade & Development US Commission on US International Trade International US Postal Service System Administration Administration Authority Agency Civil Rights Commission Development

PROPOSED “BUSINESS USA” REORGANIZATIONOfﬁce of the US Trade Representative Export-Import Bank of the United States Department of Commerce Overseas Private International Trade Administration US Census Investment National Technical Information Service Corporation Select USA Bureau of Industry & Security Small Business National Institute of Standards & Technology Minority Business Development Agency Administration

Ofﬁce of the US Trade Representative Export-Import Bank of the United States Department of Commerce Overseas Private International Trade Administration US Census Investment National Technical Information Service Corporation Select USA Bureau of Industry & Security Small Business National Institute of Standards & Technology Minority Business Development Agency Administration Federal Government State GovernmentINTEGRATED METROPOLITAN Universities Firms EXPORT PROMOTION Philanthropy Local Governments

Innovate Locally Advocate Nationally Network Globally

Toronto London Frankfurt New York Paris Tokyo Shanghai Lagos Sao Paulo Sydney

Detroit CologneMonterrey Chongqing Bogota Hanoi Chennai Johannesburg

Rotterdam HamburgLosAngeles Tianjin Dubai Seoul Singapore Durbin Buenos Aires

Antioch SamarkandTyre Baghdad Tehran Lanzhou Xi’an Delhi

@bruce_katz#globalcities Columbus, OH / May 9, 2012

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Brookings Metropolitan Policy Program: Global Cities Initiative, Columbus

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