JULY 26, 2011 Page 1 of 22 5 a - CC Foreign Direct Investment (FDI) Strategic Planning Report to Middlesex County Council Tom Ticknor T icknor & Associates Eric Hochstein Highstone Associates, Inc. July 26, 2011
JULY 26, 2011 Page 2 of 22 5 a - CC Overview I. Situation II. Recommendations III. Budget & Critical Success Factors 2 FDI Strategy T icknor/Hochstein
JULY 26, 2011 Page 3 of 22 5 a - CC I. Situation 3 FDI Strategy T icknor/Hochstein
JULY 26, 2011 Page 4 of 22 5 a - CC The Assignment • Create 3-Year FDI Marketing Plan • Include foundations to be successful at domestic & foreign investment – Community preparedness – Staffing & budget – Website, information and communication basics – Business Retention and Expansion (BR&E) – Positioning and messaging – Response capabilities 4 FDI Strategy T icknor/Hochstein
JULY 26, 2011 Page 5 of 22 5 a - CC Why is FDI Important? • Basic sector development drives the local economy • Portion of local economy that generates wealth from outside • Differentiator in terms of wages, tax base, employment growth potential • Benefits – New jobs, higher wages – Net tax contributor – Fresh technologies, innovation, new business processes/practices – Drives “non-basic” sectors--local services, housing, etc. • Caveat I: Competition is keen • Caveat II: Site Selection is a process of elimination 5 FDI Strategy T icknor/Hochstein
JULY 26, 2011 Page 6 of 22 5 a - CC Project Inputs • Task Force – Team Briefing/Kickoff – Investment Seminar – Mid-Term Report • Local Meetings – Site visits, interviews with Task Force members, selected employers – Regular debriefs with Aileen and Steve and Sabrina • External Inputs – MEDT, OMAFRA, SWEA, SCOR – Best practices interviews & research – Interviews with Consulates General in US • Our Prior Experience – ED consulting, site location – Representing Ontario in the US 6 FDI Strategy T icknor/Hochstein
JULY 26, 2011 Page 7 of 22 5 a - CC What Investors Want 1. Attractive Communities – Population growth – Good transportation access – Quality shovel-ready sites Capable workforce in similar industries – 2. Prepared Communities – Solid information – Speedy response 3. A Regional Approach – More understandable geography – The labour market defines your location – Efficiency in site search 7 FDI Strategy T icknor/Hochstein
JULY 26, 2011 Page 8 of 22 5 a - CC Middlesex Strengths/Weaknesses • Strengths – Part of London region & labour market – Direct access to 3 border crossings via Highways 401 & 402 – Diverse economic base – Growth – Adequate present/developing shovel-ready sites at reasonable cost – Relatively low land and tax rates • Weaknesses – No identity (or ready way to build one) – No marketable sector “clusters” exist in the County – Weak alliance with London, which dominates in image, staff, budget – Weak regional ED (in current set up) – Part-time ED staff 8 FDI Strategy T icknor/Hochstein
JULY 26, 2011 Page 9 of 22 5 a - CC Middlesex Opportunities/Threats • Threats – Being reactive limits ED potential – Being too dominated by residential development • Opportunities through Countywide proactive ED – Employment-Based Land Absorption Analysis – Encouraging BR&E – Leveraging regional partnerships (with SW Ontario) – Better marketing fundamentals – Facilitating investor Requests for Information – Facilitating outside investor visits 9 FDI Strategy T icknor/Hochstein
JULY 26, 2011 Page 10 of 22 5 a - CC County ED Role • Advantages – Supports County-wide initiatives – Enables economies of scale • Web presence and development • Labour market information • Prospect response • Working with London, regional partners • Working with MEDT, OMAFRA & regional partners • Requirements – Local jurisdiction buy-in, trust – Recognition that rising tide raises all boats 10 FDI Strategy T icknor/Hochstein
JULY 26, 2011 Page 11 of 22 5 a - CC II. Recommendations 11 FDI Strategy T icknor/Hochstein
JULY 26, 2011 Page 12 of 22 5 a - CC FDI Recommendations 1) Strengthen Core ED Foundations 2) Targeted Proactive International Marketing – Relationships with government influencers with market access – Participate in, and support, initiatives of regional partnerships 3) Develop Investor Customer Service Excellence 12 FDI Strategy T icknor/Hochstein
JULY 26, 2011 Page 13 of 22 5 a - CC 1. Strengthen Core ED Functions A. Deepen ED Staff – Increase ED Manager time – ED professional training for ED & Planning Coordinator – Consider adding agricultural sector specialist B. Build from Existing Employer Base (BR&E) – Template for relationship building w/ key basic sector employers (top 20) • ID risks and opportunities, understand workforce, supply chain • Provide support and assistance where possible – Integrate into marketing • Proof sources/Business Ambassadors • Look to attract suppliers, partners, and consumers – Investigate whether to add agricultural specialist C. Capitalize on 2011 Initiatives - Employment Land Needs Analysis • Determine need for further shovel-ready sites • Assess demand for rail-served sites – EMOWP&DB Workforce Strategy Improves prospects for domestic investment and foreign. 13 FDI Strategy T icknor/Hochstein
JULY 26, 2011 Page 14 of 22 5 a - CC 2. Proactive International Marketing A. Cultivate Provincial & Federal Foreign Investment Intermediaries (who regularly see leads/recommend localities) – Visit nearby Consulates General of Canada and maintain contact – Host Familiarization tours, personal visits, and other direct contacts in Middlesex County Educate, inform and encourage intermediaries to identify and – share viable opportunities with Middlesex County 14 FDI Strategy T icknor/Hochstein
JULY 26, 2011 Page 15 of 22 5 a - CC 2. Proactive International Marketing B. Leverage Regional/Sector Partnerships Build stronger relationships with London EDC – Utilize SWEA – • Enables cost-effective international missions • But SWEA needs to grow into role – Strategies to leverage regional partnerships • Take a leadership role • Contribute financially • Advocate developing a SWEA FDI strategy – Sector programs offer targeted exposure & support • Ontario Food Corridor/Innovation Cluster • Monitor SCOR role, if any 15 FDI Strategy T icknor/Hochstein
JULY 26, 2011 Page 16 of 22 5 a - CC 3. Develop Investor Customer Service Excellence A. Continuously Improve the Website – Mapping and interactive search – More accessible major employer information Better functionality around shovel-ready properties – – Link to workforce info More substance to top ten reasons –add supporting links/pages – – Indication of Canadian health care advantages vs. US B. Improve Prospect response – RFI • 1 hour turnaround capability • References to specific local companies • Health care cost advantages • More about London • More specifics about Fanshawe capabilities • Request friendly feedback 16 FDI Strategy T icknor/Hochstein
JULY 26, 2011 Page 17 of 22 5 a - CC 3. Develop Investor Customer Service Excellence Prospect Visitation Excellence – • Maps & key site info, data • Prep marketing team ahead of time/practice • Know best companies to visit • Incorporate Fanshawe and UWO when appropriate • Respond to unmet info needs immediately C. Develop fast track regulatory permitting – Feature shovel-ready sites – Virtual permitting – ED and Planning advocacy/guidance 17 FDI Strategy T icknor/Hochstein
JULY 26, 2011 Page 18 of 22 5 a - CC III. Budget & Critical Success Factors 18 FDI Strategy T icknor/Hochstein
JULY 26, 2011 Page 19 of 22 5 a - CC County Budget Implications 2012 2013 2014 Foundations A. Deepen County ED Staff (not including possible Ag Specialist) $15,000 $18,000 $21,500 B. Retention & Expansion Launch/Administration $5,000 $4,000 $4,000 C. Capitalize on 2011 Initiatives $4,000 $4,500 $5,000 Proactive Marketing A. Cultivate Intermediaries Detroit, Buffalo, Boston (Chicago in 2011) $4,000 $4,500 New York, Dallas, Atlanta $6,000 Host intermediaries $8,000 $8,000 B. Leverage Regional/Sector Partners SWEA missions (+ Strategy share in 2012) $14,500 $10,000 $11,000 OMAFRA, Food Corridor $3,500 $5,500 London Joint Initiatives $3,000 $4,000 $5,000 Customer Service Excellence A. Improve Website/GIS (start in 2011) $20,000 $10,000 $15,000 B. Improve Prospect Response $6,500 $8,500 $10,500 C. Fast Track Permitting TBD TBD TBD Total Budget Initiatives $72,000 $76,500 $90,000
JULY 26, 2011 Page 20 of 22 5 a - CC Metrics • Develop Benchmarks – Personal Contacts with Influencers – Inquiries Received from International Prospects/Intermediaries – Total Inquiries Received – Number of New and Existing Investor Contacts – Proposals Requested – Proposals Delivered – Time from Request to Delivery of Proposal (Days) – Site Visits Made – Investments Made (# of companies, # of jobs created, $ invested) • Compile and report results on semi-annual basis • Track investments over long-term 20 FDI Strategy T icknor/Hochstein
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