Summit Global Location May 12, 2016 Strategies GLS has assisted - PowerPoint PPT Presentation

Southwest Virginia Economic Development Prepared by: Summit Global Location May 12, 2016 Strategies

GLS has assisted corporations with $3.6 billion in announced Project Team projects since 2013 GLS Recent Diageo PLC Announcements Shelby County, KY $115 million investment 31 direct jobs International Announcements Procter and Gamble New Manufacturing Facility Martinsburg, WV Hexcel Corporation $400 million investment Roussillon, France $250 MM investment Constellium N.V. Joint venture with UACJ Corp. Bowling Green, KY $150 million investment 80 direct jobs Procter and Gamble 5 Distribution Centers: CA, GA, OH, PA, TX 1.5 MM sf – 2.0 MM sf Caesarstone Sdot-Yam $90-120 million investment Yuhuang Chemical Kemira Oyj Bryan County, GA 500-1000 jobs St. James Parish, LA Aberdeen, MS $100 million investment $1.3 billion investment $13.9 million investment 180 direct jobs 400 direct jobs | 2

Product Product The 4 P’s People Promotion The 5 P’s of of Economic Price Promotion Development Marketing Price Place Place

Product

Place

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• Virginia’s E -Region • Appalachian Heartland • Southwest Virginia • Appalachian Plateau Promotion

Price

• Capital Intensive $500 MM+ investment Manufacturing • 115 employees • 300,000 sq. ft. • 60 MW of Electricity @ 90% demand factor • 150 mcf per hour of natural gas • 1 MGD of water • 800,000 MGD of wastewater treatment • Operation runs 7 days per week, 24 hours per day | 11

International Annual Toronto is the least expensive North American city in the sample. All US cities are much more competitive than Western Cost Comparison European cities and many Asian cities due to inexpensive energy costs. Virginia locations are less expensive than Guadalajara, Mexico. Buenos Aires New Delhi Changzhou Toronto Hazard (KY) Pikeville (KY) Guadalajara Wytheville (VA) Abingdon (VA) Lynchburg (VA) Roanoke (VA) Hanoi Manchester Stuttgart Hong Kong Osaka Sacheon $0 $10,000,000 $20,000,000 $30,000,000 $40,000,000 $50,000,000 $60,000,000 $70,000,000 Labour costs Property costs Utility costs | 12 Source: fDi Benchmark from the Financial Times Ltd 2016

Wytheville and Abingdon are ranked 7 th and 8 th respectively for Domestic Annual lowest cost. There is only $3 MM difference annually between Cost Comparison the lowest (Hazard, KY) and the least expensive Virginia cities. Wytheville has the lowest labor costs of all cities in the study. Hazard (KY) Pikeville (KY) Birmingham (AL) Tupelo (MS) Columbia (SC) Chattanooga (TN) Wytheville (VA) Abingdon (VA) Richmond (VA) Lynchburg (VA) Roanoke (VA) Norfolk (VA) Columbus (OH) Cincinnati (OH) Charlotte (NC) Fairfax (VA) Pittsburgh (PA) Philadelphia (PA) $0 $10,000,000 $20,000,000 $30,000,000 $40,000,000 $50,000,000 $60,000,000 Labour costs Property costs Utility costs | 13 Source: fDi Benchmark from the Financial Times Ltd 2016

People- The 5 th “P”

E- Region Population 300,000 239,711 250,000 233,366 221,200 214,940 214,310 209,298 208,094 207,545 199,206 197,313 200,000 150,000 100,000 50,000 0 1970 1975 1980 1985 1990 1995 2000 2005 2010 2015 | 15 Source: US Census Bureau

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E-Region Population Pyramid 2016 .85 years and over .80 to 84 years .75 to 79 years .70 to 74 years .65 to 69 years .60 to 64 years .55 to 59 years .50 to 54 years .45 to 49 years .40 to 44 years .35 to 39 years .30 to 34 years .25 to 29 years .20 to 24 years .15 to 19 years .10 to 14 years .5 to 9 years Under 5 years -8000 -6000 -4000 -2000 0 2000 4000 6000 8000 Male Female | 17 Source: US Census Bureau

The “People” Factor | 18

Current Trends | 19

Emerging Trends | 20

Think Regionally, Act Locally