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

Southwest Virginia Economic Development Summit

May 12, 2016

Prepared by: Global Location Strategies

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GLS has assisted corporations with $3.6 billion in announced projects since 2013

Project Team GLS Recent Announcements

Yuhuang Chemical

• St. James Parish, LA

$1.3 billion investment 400 direct jobs Diageo PLC Shelby County, KY $115 million investment 31 direct jobs Constellium N.V. Joint venture with UACJ Corp. Bowling Green, KY $150 million investment 80 direct jobs Caesarstone Sdot-Yam Bryan County, GA $100 million investment 180 direct jobs Kemira Oyj Aberdeen, MS $13.9 million investment Hexcel Corporation Roussillon, France $250 MM investment

International Announcements

Procter and Gamble 5 Distribution Centers: CA, GA, OH, PA, TX 1.5 MM sf – 2.0 MM sf $90-120 million investment 500-1000 jobs Procter and Gamble New Manufacturing Facility Martinsburg, WV $400 million investment

The 4 P’s

• f

Marketing

Product Promotion Place Price

The 5 P’s of Economic Development

Product Promotion Place Price People

Product

Place

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Promotion

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

Price

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Capital Intensive Manufacturing

• $500 MM+ investment
• 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

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International Annual Cost Comparison

Toronto is the least expensive North American city in the

• sample. All US cities are much more competitive than Western

European cities and many Asian cities due to inexpensive energy

• costs. Virginia locations are less expensive than Guadalajara,

Mexico.

$0 $10,000,000 $20,000,000 $30,000,000 $40,000,000 $50,000,000 $60,000,000 $70,000,000 Sacheon Osaka Hong Kong Stuttgart Manchester Hanoi Roanoke (VA) Lynchburg (VA) Abingdon (VA) Wytheville (VA) Guadalajara Pikeville (KY) Hazard (KY) Toronto Changzhou New Delhi Buenos Aires Labour costs Property costs Utility costs Source: fDi Benchmark from the Financial Times Ltd 2016

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Domestic Annual Cost Comparison

Wytheville and Abingdon are ranked 7th and 8th respectively for lowest cost. There is only $3 MM difference annually between the lowest (Hazard, KY) and the least expensive Virginia cities. Wytheville has the lowest labor costs of all cities in the study.

$0 $10,000,000 $20,000,000 $30,000,000 $40,000,000 $50,000,000 $60,000,000 Philadelphia (PA) Pittsburgh (PA) Fairfax (VA) Charlotte (NC) Cincinnati (OH) Columbus (OH) Norfolk (VA) Roanoke (VA) Lynchburg (VA) Richmond (VA) Abingdon (VA) Wytheville (VA) Chattanooga (TN) Columbia (SC) Tupelo (MS) Birmingham (AL) Pikeville (KY) Hazard (KY) Labour costs Property costs Utility costs Source: fDi Benchmark from the Financial Times Ltd 2016

People- The 5th “P”

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197,313 221,200 239,711 233,366 214,310 214,940 209,298 207,545 208,094 199,206 50,000 100,000 150,000 200,000 250,000 300,000

1970 1975 1980 1985 1990 1995 2000 2005 2010 2015

E- Region Population

Source: US Census Bureau

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Source: US Census Bureau

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• 8000
• 6000
• 4000
• 2000

2000 4000 6000 8000

Under 5 years .5 to 9 years .10 to 14 years .15 to 19 years .20 to 24 years .25 to 29 years .30 to 34 years .35 to 39 years .40 to 44 years .45 to 49 years .50 to 54 years .55 to 59 years .60 to 64 years .65 to 69 years .70 to 74 years .75 to 79 years .80 to 84 years .85 years and over

E-Region Population Pyramid 2016

Male Female

Source: US Census Bureau

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The “People” Factor

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Current Trends

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Emerging Trends

Think Regionally, Act Locally