This document summarizes a presentation on strategies for increasing foreign direct investment (FDI) in 2016. It discusses key trends in FDI, including continued growth in both outbound and inbound U.S. investment. Five recommendations are provided for economic development organizations to increase their share of FDI: 1) Engage a predictive model to target potential investors exhibiting changes that forecast site needs. 2) Turn the website into a lead generation engine through tools like visitor ID software. 3) Connect with consultants and other multipliers involved in site selection. 4) Find creative ways like events and newsletters to stay on companies' radars. 5) Leverage credible third parties like executives and media to generate interest in a location. The presentation then

1. Increasing Your Share of
FDI in 2016

2. Today’s Speakers
Jeff Finkle, President,
International Economic
Development Council (IEDC)
Andy Levine, President
Development Counsellors
International (DCI)

3. About IEDC
World's largest membership organization serving the
ED profession with 4,700+ members
Services
o Conferences
o Professional Development Trainings
o Certification and AEDO
o Research and Advisory Services
o Publications and Information Clearinghouse
o Legislative Tracking
o Resource Center and more
3

4. About IEDC
International Partners
4

5. A Word About DCI

6. Corporate Executives – 75%
Site Selection Consultants – 25%
“Winning Strategies in ED Marketing”
PROFILE OF RESPONDENTS
91% M
9% F
356 Respondents
Under 39 13%
40 – 49 25%
50 – 59 40%
60 and Over 22%
Age

7. Manufacturing– 51%
Services– 49%
Less than $25 million 32%
$25 - $49 million 15%
$50 - $99 million 11%
$100 - $249 million 11%
$250 million - $499 million 8%
$500 million and higher 23%
Gross Revenue
Corporate Executives | Site Selection Consultants
I am a single practitioner
1-25 employees
25+ employees
Size of Company
45%
47%
8%

8. Agenda
I. Key Trends in FDI (Jeff)
II. Increasing Your Share of FDI in 2016:
Five Recommendations (Andy)
III. Q&A/Discussion

9. Key Trends in FDI

10. Trends in U.S. Investment
• Outbound and inbound
investment continue to
grow post-recession
• From 2013 to 2014, U.S.
outbound investment
grew 4.8% to $4,920.7
billion
10

11. Outbound Investment
2013 & 2014
• U.S. leads in
outflows
• Hong Kong saw
dramatic growth in
2014, surpassing
China
Source: UNCTAD 11

12. 12
Where is U.S. Investment Going?

13. Where is U.S. Investment Going?
13
MillionsofDollars
$0
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
2005 2008 2011 2014
Europe
Latin America and Other
Western Hemisphere
Asia and Pacific
Canada
Africa
Middle East

14. U.S. Direct Investment by Industry
Note: Holding Companies data not included. Source: U.S. Bureau of Analysis. 14
0
100,000
200,000
300,000
400,000
500,000
600,000
700,000
800,000
900,000
2004 2006 2008 2010 2012 2014
MillionsofDollars
Finance & Insurance
Manufacturing
Wholesale Trade
Mining
Information
Depository Institutions
Professional, scientific, and
technical services

15. U.S. Direct Investment
Finance and Insurance in 2014 (Millions of Dollars)
(except depository institutions)
1. United Kingdom - $152,424
2. United Kingdom Islands, Caribbean - $107,096
3. Japan - $54,001
4. Canada - $49,802
5. Bermuda - $39,156
6. Australia - $35,724
7. Netherlands - $35,106
8. Luxembourg - $30,809
9. Germany - $19,371
10. Singapore - $18,751
Source: U.S. Bureau of Analysis. 15

16. U.S. Direct Investment
Manufacturing in 2014 (Millions of Dollars)
1. Canada - $109,446
2. Netherlands - $52,982
3. United Kingdom - $48,423
4. China - $34,552
5. Singapore - $31,925
6. Germany - $31,557
7. Mexico - $30,495
8. Ireland - $30,179
9. Switzerland - $29,116
10. Belgium - $26,698
Source: U.S. Bureau of Analysis. 16

17. 17

18. Source: SelectUSA – September 2015
18

19. EDO Trends in FDI
• IEDC Member Survey results: Between
2013 and 2014, American EDOs
increased their FDI efforts by 26%
• EDOs using regional strategies, foreign
trade zones, and EB-5 visa program to
attract FDI and promote exports
19

20. EDO Trends in FDI
Exports and foreign direct investment are inextricably
linked
Economic clustering as a tool
o boosts exports, which attracts FDI
Best way to boost both exports and FDI is by working
with existing firms
20

21. EDO Trends in FDI
EDOs are creating more programs to address both
exports and FDI equally
o Portland, Oregon: global strategy organized around a cycle
in which innovation creates exporters, which in turn draws
FDI, which in turn spurs increased innovation
o South Carolina: announced the creation of a new state
International Strategy and Trade Division that will focus
equally on exports and FDI
21

22. Increasing Your Share
of FDI in 2016

23. FIVE RECOMMENDATIONS
1. Engage a “Predictive Model” to Target
Potential Investors
2. Turn Your Website into a Lead Generation
Engine
3. Connect with the Multipliers
4. Find Creative Ways to Stay on a Company’s
Radar
5. Use Credible Third Parties to Generate
Interest in Your Location

24. 1. ENGAGE A “PREDICTIVE MODEL”
TO TARGET POTENTIAL INVESTORS
Identify Companies
That Are Exhibiting
“Changes” That
Forecast a Site Location
Need

25. Nine “Changes” That Forecast
a Site Location Need
1. Executive Change (New CEO or CFO)
2. Merger or Acquisition
3. Increase in Sales (especially sales from your
country)
4. Increase in Employment
5. Recent Contract Win
6. Venture Capital and Other Funding
7. New Product Launch
8. Regulatory Environment Change
9. Recent Investment Outside of North America

26. USA’s Top Serial Investors
Source: DCI and fDI Intelligence
50 100 150 200 250 300 350 400 450 500
Cargill
DuPont
United Parcel Services
Coca-Cola
Google
ProLogis
Ford
Amazon.com
Federal Express
General Motors
Citigroup
Hewlett-Packard
Microsoft
General Electric
IBM
Top 10 = 7.8% of Projects

27. 2. TURN YOUR WEBSITE INTO A LEAD
GENERATION ENGINE
0% 10% 20% 30% 40% 50% 60% 70%
Special events
Trade shows
Internet/Website
Planned visits to
corporate executives
Media Relations/
Publicity
67%
64%
48%
Advertising
Direct mail
Telemarketing
1.
2.
3.
Media relations
Visits
Internet

28. The Rise of “Visitor ID” Software
• Identify “anonymous”
website visitors
• Closely track “gold
behavior”
• Selectively engage
with target executives

29. Web to Leads Weekly Report
February 1st – February 8th

30. Out of State (Business Attraction)
Company Headquarters
67. West Chester, PA
(54.) Warren, MI
(65.) Kansas City, MO
68. Nashville, TN
69. Cuyahoga Falls, Ohio
Lead Assignments
In State (BR&E)
Company Headquarters
50. Virginia, MN
(30.) Charlotte, NC
51. Arden Hills, MN
Consultants
Company Office
35. Dallas, TX
36. St. Paul, MN
37. Long Island, NY

31. (54.) Member Driven Technologies
HQ: Warren, MI | Visitor Location: Warren, MI
Industry: IT management for banks | Employees: 175 | Revenue: $35M
URL:

32. Consultants
35.
HQ: Los Angeles, CA | Visitor Location: Dallas, TX
Industry: Commercial Real Estate
Employees: 52k | Revenue: $9B
URL:

33. 3. CONNECT WITH THE MULTIPLIERS
Forty Percent of
Executives Anticipate
Outsourcing a Portion
of Their Next Search
International
30% 26%
15%1%
19%

36. 4. FIND CREATIVE WAYS TO STAY ON A
COMPANY’S RADAR
Tactics to Stay in Touch:
• Trade Show Attendance
• E-Newsletter
• Innovative Direct Mail
• Special Events
• Relevant News Articles
• Book Club

37. 5. USE CREDIBLE THIRD PARTIES TO
GENERATE INTEREST IN YOUR LOCATION
Carrying Your Message:
• C-Suite Execs with
Positive Experiences in
Your Country
• News Media
• Industry Experts

38. Leading Sources of Information
Source: DCI’s Winning Strategies Economic Development Marketing
0% 10% 20% 30% 40% 50% 60%
Dialogue with industry peers
Newspapers and magazines
Business travel
Meetings with ED groups
Rankings / surveys
Online sources
Word of mouth
Personal travel
Other
TV and radio
Advertising
Direct mail
Social media
55%
44%
37%
31%
24%

39. DIGITAL AMBASSADORS
290+AMBASSADORS

42. Summing It Up
1. Engage a “Predictive Model” to Target
Potential Investors
2. Turn Your Website into a Lead Generation
Engine
3. Connect with the Multipliers
4. Find Creative Ways to Stay on a Company’s
Radar
5. Use Credible Third Parties to Generate
Interest in Your Location

43. Q&A/Discussion