global michigan

GLOBAL MICHIGAN Opportunity

Upper Peninsula – Region 1

Marquette May 24, 2012

Fastest Growing Cities – IT Sector

Detroit: 101%Cincinnati: 75%Cleveland: 62%Columbus: 57%

Seattle: 54%Pittsburgh: 45%

Miami: 43%Jacksonville: 41%

Chicago: 40%Silicon Valley: 40%

Share of All High Tech Firms Started by Immigrants

From 1995-2005, researchers found the following:

National Rate = 25.3%Silicon Valley Rate = 52.4%Michigan Rate = 32.8%

Michigan ranked #3 in the country, behind only California and New Jersey.

Global Michigan Vision“We will establish an exciting new initiative to encourage immigrants with advanced college degrees to come to Michigan to live and work. . . Immigration made us a great state and country. It is time we embrace this concept again as a way to speed our reinvention.”

--Governor Rick Snyder State of the State Address January 19, 2011

Global Economy

• Foreign Direct Investment

• Talent

Job Growth• Export

and Trade

Creating Prosperity

“The richest regions are those with the highest proportion of immigrants.”

President’s Commission on Immigration, 1953

Great Lakes Movementand Global Initiative

• Global Pittsburgh• Global Cleveland• Welcome Dayton• Chicago Council

Global Affairs’ Midwest Immigrat. Task Force

• North Dakota / NW Minnesota EB-5 Regional Center

• Iowa Immigration Education Coalition

• Idaho Project 60• Global St. Louis

Great Lakes Movementand Global Initiative – Iowa

• CJ (Korea) invested $325M in Ft. Dodge corn processing facility resulting in 200 jobs

• In 2011, Iowa exported over $13B in global exports products

• Machinery - $3.8B and Agriculture - $2.9B are top export products

Great Lakes Movementand Global Initiative – Iowa

Great Lakes Movementand Global Initiatives – Dayton, OH

• 2011 Welcome Dayton plan spearheaded by City of Dayton’s Human Relations Council.

• Goal to officially make Dayton an “immigrant friendly” city.

• Strategy to inventory and coordinate in-place efforts through city-endorsed Welcome Dayton Committee.

www.globaldetroit.com

Global Detroit

Roadmap

I. Global Michigan Menu1. Business Attraction and

Retention2. Quality of Place3. Talent Attraction/Retention

II. “American Success Stories”

Global Michigan Menu

I. Business Attraction/Retention: Attract international investment and businesses that create jobs.

– EB-5 Investor Visa Programs– Nearshoring– Homeshoring

EB-5 Individual Investors• In order to obtain an EB-5 green card, investor

must:– invest $1,000,000. Alternatively; and– create or preserve at least 10 jobs for U.S. workers.

• Investment can be in new or existing "Troubled Business“, which is an enterprise that has been in existence for at least two years and has incurred a net loss during a two year period—must be at least 20 % of its net worth.

EB-5 Regional Centers• Connecting existing EB-5 regional centers

to Upper Peninsula investment opportunities.

• Identify Targeted Employment Areas (TEAs) in Upper Peninsula.

• Other Rural Models to emulate:– Vermont– Idaho

EB-5 Rural Models – Vermont

• Jay Peak resort secured $250M of foreign equity capital to transform struggling ski-only facility to year round resort.

• Investment represented 330 investors from 55 countries.

• 3,000 direct and indirect jobs through life of the program.

EB-5 Rural Models – Idaho• Idaho has access to a global

market for a variety of industries, including: – Agriculture/food processing,

wood products, machinery, chemicals, electronics manufacturing, silver and other mining.

– High tech outfits include Micron, Sun Microsystems and Hewlett-Packard.

Nearshoring Opportunity in the Upper Peninsula?

• Nearshoring = Hiring of international talent in a nearby country

• Microsoft 2007• Sault St. Marie• Logistics, healthcare,

IT, shipping?

Homeshoring• Homeshoring = New

or returning manufacturing or service sector jobs that were or would otherwise be located overseas.

• Michigan is uniquely positioned.

Global Michigan Menu

II. Quality of Place: Make the region more welcoming to immigrants and foreign investment.

– Cultural Ambassadors– Welcoming America/Michigan– Welcome Mat– Exporting

Cultural Ambassadors

• Modeled after program developed by Ann Arbor SPARK

• Goal - to leverage existing international populace to attract international talent and businesses, and promote integration

Marquette County Ambassadors

• Government relations arm of Lake Superior Community Partnership

• Group of business and community leaders from Marquette

• Dedicated to advancing the basic principles upon which the United States was founded, establishing the equality and dignity of all people, including immigrants.

• Creating opportunities for neighbors to get together and learn about each other.

• Use of mass communications, as well as targeting receiving communities.

Welcoming America Campaigns

Immigrant Impact on Exports• 10% increase in immigrant population from a

specific country was linked to a 6% increase in exports to home country.

• Immigrants lower transaction costs by removing cultural and communication barriers. Exporters can make global connections locally, rather than having to travel abroad or rely upon overseas contacts.

State Trade Export Promotion (STEP)

• Eligible companies can request up to $25k in assistance to expand export operations

• Funds can be used for – Overseas trade missions and trade show

participation– Foreign market sales trips– Foreign language translation services for

marketing materials

Upper Peninsula Market

• Recent 2012 MSU Center for Community and Economic Development study found majority of Eastern UP small/medium enterprises wanted to expand exports

• Lack of market knowledge and financial barriers most common reason for failure to export

Export Strategy

• Utilizing Cultural Ambassadors and cultivating international student retention

• Taking advantage of STEP and similar programs

Global Michigan Menu

III. Talent Retention: Keep international student talent in the region.

– International Student Retention– Other Welcoming Efforts

• Cultural Ambassadors• Welcoming Michigan• Connecting with Leadership Programs• Welcome Mat

Rank in US TotalFOREIGN STUDENTS IN MICHIGAN #8 24,668

(up 3.3%)ESTIMATED FOREIGN STUDENTS EXPENDITURE IN MICHIGAN (in millions of dollars)

--- $705.7

Intl. Students in Michigan, National Rank and Economic Impact

Institution City Total

University of Michigan Ann Arbor 5,995Michigan State University East Lansing 5,748

Wayne State University Detroit 2,263Western Michigan University Kalamazoo 1,390

Michigan Tech. University Houghton 1,114

Michigan Institutions with the Highest Number of Foreign Students

Percent of Michigan’s Foreign Students in STEM Fields of Study: 38.4%Percent of U.S. Undergraduate Students in STEM Fields of Study: 13.7%

International Students in the U.P.

• Northern Michigan University: 119 (2011-2012)

• Michigan Technological University: 1,114 (2010-2011)

• Lake Superior State University: 359 (2005-2006)

In the U.P. Alone: International Student Economic Contribution

Institution Tuition & Fees Living Expenses

U.S. Support Total

Northern Michigan U.

$1,159,100 $1,695,600 ($379,900) $2,474,800

Michigan Tech $23,140,600 $18,511,800 ($12,911,100) $28,741,300

*LSSU $4,229,400 $5,394,900 ($22,378,700) $7,315,600

Community Colleges

$30,600 $86,200 ($5,300) $111,400

TOTAL: $38,643,100

International Students at Michigan Tech:

Bachelors

International StudentsDomestic Students

MastersInternational StudentsDomestic Students

PhDInternational StudentsDomestic Students

A123 Systems

Immigrant Founded Companies

Kanwal Rekhi – MTU, MS ‘69

Tom Friedman – “World is Flat”

“Dear America, please remember how you got to be the wealthiest country in history.

…the formula was very simple: build this really flexible, really open economy, tolerate creative destruction so dead capital is quickly redeployed to better ideas and companies,

Pour into it the most diverse, smart and energetic immigrants from every corner of the world and then stir and repeat, stir and repeat, stir and repeat.”

Global Michigan MenuEB-5

NearshoringHomeshoring

Cultural AmbassadorsWelcoming America/Michigan

Welcome MatExport

International Student Retention