investmentinward paul wookey chief executive locate in kent

Attracting inw

ard investm

ent

Paul WookeyChief ExecutiveLocate in Kent

Content

Context – what is inward investment?Methodology- is there one?Locate in Kent’s experience The future

Inward

Investment

Attracting new investment to an area– FDI = Foreign Direct Investment– Indigenous = UK

Supporting existing businesses to expand and make further rounds of investment

UK Structure

UKTI

RDA

Sub-regional or county

UKTI - FDI only

-DTI

-Embassies

-Consulates

SEEDA- FDI only

- Network of overseas offices

Locate in Kent -FDI and UK

Why?

• Developing a competitive national/local economy in a globalmarket place

• Aims• Attract high value mobile investment• to attract quality jobs and higher earnings• R & D, higher productivity• Multipliers Microsoft Europe estimate 1 direct job = 30

indirect jobs• Main objective is to attract new investment and

create/safeguard jobs in key sectors

Where from

? 0

50

100

150

200

250

300

350

400

450

500

2002/03 2003/4 2004/05 2005/06

US

Canada

Germany

France

India

Japan

China

UK Inward Investment Projects By Country

Source: UK Trade & Investment Note: Years to end March

By category 2001/2 -

2005/6 (UK) 0

200

400

600

800

1000

1200

1400

2001-02 2002-03 2003-04 2004-05 2005-06

New Expansion M&A (Inc JVS)

By operation 2005-2006

(UK)

Services - 486

Manufacturing - 288

R&D - 164

Headquarters - 151

Distribution - 95

Contact Centres - 21

E-Commerce - 15

Global/UK Trends

Manufacturing projects are being lost to Far East, East Europe and IndiaServices projects also being lost to India etcBut, an increase in projects from India and JapanAmerica (US & Canada) ‘up and down’China an opportunity and threatGermany and France main European sources despite their economies

Locate in Kent

Company Ltd.by G’teeBoard of DirectorsEstablished in 1997Budget £1.5m Private/public partnership-wide range of funders15 staff-key skill sets - research, marketing, business developmentBrokerage/partnership to win investmentProblem solving, influencing productAftercare

Achievements

1997-2006

330 successes (companies assisted)16,600 direct jobs created23,200 direct and indirect jobs created7,000 jobs retained2005-6, cost per job £588,successes per employee 4.2, the highest everAnnual benchmarking and Impact analysis

Context

Achievements

1997-2006

0

10

20

30

40

50

60

97-98 98-99 99-00 00-01 01-02 02-03 03-04 04-05 05-06

No. o

f Suc

cess

es

0

250

500

750

1000

1250

1500

1750

2000

2250

No. o

f Job

s cr

eate

dSuccessesJobs

Job creation

Number of Jobs Created and Retained per Year

0

500

1000

1500

2000

2500

97-98 98-99 99-00 00-01 01-02 02-03 03-04 04-05 05-06

Num

ber

Jobs CreatedJobs Retained

Sector

Successes by Sector, April 97 - July 2006

15%12%

12%12%

8%7%

7%6%6%

3%3%

7%3%

0 10 20 30 40 50 60

Other*

Creative Industries

Food & Agriculture

Life Sciences

Construction & Property

Retail & Wholesale

Paper, Printing & Publishing

Transport & Logistics

Engineering

Financial Services

Manufacturing

Business Services

ICT

Number

Origin

Successes by Country, April 1997 - July 2006

3% 4%9%

3%

5%

13%63%

Rest of the WorldAsia and SE AsiaRest of EuropeGermanyFranceUSAUnited Kingdom

Methodology

‘To market to every company would require amassive resource and be an incrediblewaste of time and effort. Resources have tobe focused on companies with the highestpotential for investment in a particularlocation’Oco Consulting

Methodology

Market/sectorresearch

Lead Generation

Lead validation

Meeting prospects

Proposals & Business case

Negotiations

Decision

Aftercare

To develop strategic position

Target companies/investors

Introduce proposition

Implementation

Aftercare – best leads are often existing investors

How?

Hot spot campaign

Advertising

Direct mail

Commuter mailing

website

Case study

Abbott Laboratories

Case study

7,000 employees worldwide, 5,400 in R & D135 facilities worldwide-60 countriesAbbott Murex, Dartford, employed 285 in R & D and manufacture of diagnostic kitsPurchased 2.5a site, £39m investment, doubled size of plant125+ new scientists bringing total employment to 410 - 80% graduates

Evolving Kent

New communities-growing populationNew quality commercial developmentsFast new train services to LondonNew International Station and services to EuropeOlympics 2012

Ebbsfleet International

Station

Eastern Quarry

Ebbsfleet Valley

Domestic

services

Growth areas

115,000 new homes over 10 years 100,000 new jobs over 15 yearsNew sustainable communities in North Kent (Thames Gateway) and AshfordRegeneration in East Kent

Conclusion

Increasing globalisation and competition Competition from emerging countries-Latin America, India, ChinaSmaller projects/more services projectsPotentially greater merger of trade development and Investor development at national levelCan any area afford not to make efforts to attract investment?