Global Trends in Location Selection Final results for 2005

Transcription

1 Global Business Services Plant Location International Global Trends in Location Selection Final results for 2005 September, 2006

2 Global Business Services Plant Location International 1. Global Overview 2. Africa 3. Asia-Pacific 4. Europe 5. Latin America 6. North America 7. Conclusions and Implications

3 GILD Global Investment Locations Database GILD is a unique database of IBM-PLI that records investment project announcements around the world on an ongoing basis, with the objective to monitor the location decisions that corporate executives are making GILD monitors corporate investments at the project level. It records announcements of new (greenfield) and expansion projects by companies globally. M&As and other forms of investment are not included, except if they lead to a new or expansion project For each investment project announcement we try to capture details on the investor, origin, location of investment, (sub-)sector and cluster, type of investment, jobs created, capital invested, etc. GILD is used to inform corporate investors where recent investment is going, and as such provides key input for identifying location options GILD allows very detailed analysis of recent investment trends by sub-sector, and activity, identifying location s market share in attracting cross border investment, monitoring target countries, and so forth 3

4 Remarks on Today s Presented Results Data focus on foreign investment projects For USA and Canada, state-to-state investment is included as well Focus on contestable investment; retail, sales offices and such are excluded 4

5 - Slight decrease of global investment in ,000 Evolution of number of projects 2,500 2,000 1,500 1, Q03 2Q03 3Q03 4Q03 1Q04 2Q04 3Q04 4Q04 1Q05 2Q05 3Q05 4Q Projects 8,069 8,429 8,076 5

6 - Developed countries reclaim market share Share of projects by destination region 2004 Africa, 2% 2005 Africa, 2% North America, 17% Oceania, 1% Asia (Developed), 4% North America, 18% Oceania, 1% Asia (Developed), 4% Middle East, 2% Latin America & Caribbean, 8% Asia (Developing), 31% Middle East, 2% Latin America & Caribbean, 6% Asia (Developing), 27% Europe (W), 22% Europe (E), 13% Europe (W), 26% Europe (E), 13% 6

7 - Top 15 countries account for 70% of overall recorded investment - Most developed countries show increase - Strong years for France, Poland and Vietnam Top ranking destination countries by number of projects ,000 1,200 1,400 United States United Kingdom France Brazil Russia Czech Republic Canada Hong Kong Spain Hungary Sweden Viet Nam Germany United States United Kingdom France Canada Poland Singapore Russia Viet Nam Czech Republic Germany Brazil Hungary United Arab Emirates 7

8 - Most projects generated by US and European companies Share of projects by origin region Oceania, 1% Africa, 0.4% Asia (Developed), 12% Oceania, 2% Africa, 0.4% Asia (Developed), 10% North America, 35% Asia (Developing), 9% Europe (E), 2% North America, 38% Asia (Developing), 9% Europe (E), 2% Middle East, 1% Latin America & Caribbean, 2% Europe (W), 36% Middle East, 1% Latin America & Caribbean, 1% Europe (W), 36% 8

9 - USA still by far largest generator of cross border investment - Developed economies relatively stable Top ranking origin countries by number of projects ,200 1,600 2,000 2,400 2, ,200 1,600 2,000 2,400 2,800 United States Japan Germany United Kingdom France Canada Switzerland Netherlands Korea Italy Austria Sweden Taiwan United States Germany Japan United Kingdom France Canada Netherlands Italy Korea Switzerland Sweden Spain Australia 9

10 Destination countries by number of projects of selected emerging outward investors United Kingdom United Arab Emirates United States Singapore Germany Malaysia 2005 Sri Lanka Canada Australia Malaysia Thailand 0 United States United Kingdom Hong Kong Singapore France Czech Republic Russia 2005 Russia Malaysia Viet Nam Indonesia Ukraine Kazakstan Lithuania United States Turkey Tajikistan South Africa Brazil Latvia 10

11 - Business Services gain further importance - Industry sectors show decrease in foreign investment - Overall, same sectors remain in top 15 Top ranking sectors by number of projects ,000 1,200 1,400 1,600 1, ,000 1,200 1,400 1,600 1,800 Business services Business services Chemicals Motor vehicles Financial intermediation Chemicals Transport, storage and communications Motor vehicles Electronics Transport, storage and communications Food and beverages Machinery and equipment (n.e.c.) Other sectors Basic metals Rubber and plastics products Electronics Financial intermediation Machinery and equipment (n.e.c.) Food and beverages Other sectors Rubber and plastics products Basic metals 11

12 - Investment in new manufacturing plants is decreasing - R&D investment is fairly stable 1,600 Number of projects R&D Manufacturing 1,400 1,200 1, Q03 2Q03 3Q03 4Q03 1Q04 2Q04 3Q04 4Q04 1Q05 2Q05 3Q05 4Q05 12

13 - continues to lead though shows decrease - Increase of manufacturing projects in France,, Poland, UK, Canada, Viet Nam and Slovakia United States France Poland United Kingdom Manufacturing Canada Viet Nam Czech Republic Brazil Russia Hungary Thailand Slovakia Germany Top ranking destination countries by number of manufacturing projects 13

14 - and continue to lead although number of R&D projects decreasing - USA and UK performing relatively well in R&D investment United States United Kingdom France Singapore R&D Canada Germany Denmark Ireland Australia Poland Japan Sweden Hungary Top ranking destination countries by number of R&D projects 14

15 - Morocco leads but slightly less projects - Tunisia, Kenya and Uganda perform better in Egypt and South Africa keep path Africa Morocco Egypt South Africa Tunisia Algeria Nigeria Kenya Uganda Angola Other Destination countries by number of projects 15

16 - decreases whereas keeps similar path - Other Asian countries gaining share, particularly Singapore and Viet Nam Asia-Pacific Singapore Viet Nam Hong Kong Thailand Australia Philippines Malaysia Japan Korea Indonesia Taiwan Pakistan New Zealand Other Destination countries by number of projects 16

17 - attracts majority of manufacturing into Asia Asia-Pacific, 2005 Taiwan, 2% Korea, 2% Australia, 2% Indonesia, 3% Malaysia, 3% Philippines, 3% Other, 5% Singapore, 4% Thailand, 5%, 48% Viet Nam, 9%, 16% Share of manufacturing projects by destination country 17

18 - attracts half of R&D into Asia; approximately a third Asia-Pacific, 2005 Taiwan, 1% Other, 4% Korea, 2% Malaysia, 2% Japan, 3% Australia, 3% Singapore, 8%, 48%, 29% Share of R&D projects by destination country 18

19 - UK remains on top, but is challenged by France - Eastern Europe reinforcing its position Europe United Kingdom France Poland Russia Czech Republic Germany Hungary Romania Spain Slovakia Belgium Netherlands Ireland Denmark Bulgaria Sweden Switzerland Italy Other Destination countries by number of projects 19

20 - Eastern Europe attracts most manufacturing, but France leads Europe Other, 12% Ireland, 1% Austria, 1% Belgium, 2% Turkey, 2% Bulgaria, 3% Spain, 3% Romania, 4% Germany, 4% France, 21% Poland, 12% Slovakia, 5% Hungary, 6% Russian Federation, 6% Czech Republic, 7% United Kingdom, 11% Share of manufacturing projects by destination country 20

21 - Main economies attract most R&D, but Eastern Europe quickly increasing its share Europe Other, 9% Ukraine, 2% Romania, 2% Belgium, 3% Italy, 3% United Kingdom, 26% Russia, 3% Czech Republic, 3% Hungary, 4% Sweden, 4% Poland, 5% France, 19% Ireland, 5% Denmark, 6% Germany, 6% Share of R&D projects by destination country 21

22 - Decreasing trend across most countries in the region - Brazil leading, as other main markets perform best Latin America Brazil Chile Mexico Argentina Colombia Costa Rica Puerto Rico El Salvador Venezuela Other Destination countries by number of projects 22

23 - Brazil attracts most manufacturing followed by Mexico Other, 7% Uruguay, 2% Venezuela, 3% Colombia, 3% Latin America Puerto Rico, 6% Brazil, 37% Costa Rica, 6% Chile, 7% Argentina, 9% Mexico, 21% Share of manufacturing projects by destination country 23

24 - Brazil attracted 7 out of 18 registered R&D projects Latin America Puerto Rico, 6% Argentina, 6% Peru, 6% Chile, 11% Brazil, 39% Costa Rica, 11% Mexico, 22% Share of R&D projects by destination country 24

25 Pennsylvania California North Carolina Texas Ontario New York IBM-Plant Location International - Intense competition among states in North America - Pennsylvania boosts its performance North America Virginia Quebec Florida South Carolina Michigan Georgia Ohio Illinois Alberta Top destination states by number of projects

26 - East Coast states generally more successful in attracting manufacturing North America Pennsylvania, 10% Other USA, 27% North Carolina, 9% South Carolina, 6% Other Canada, 4% Nevada, 2% Oklahoma, 2% Arizona, 2% Michigan, 2% Alabama, 2% Ohio, 3% Tennessee, 3% Quebec, 6% Ontario, 5% Texas, 4% Virginia, 4% Georgia, 4% Alberta, 4% Share of manufacturing projects by destination state 26

27 - Michigan and California leading for R&D, but decreasing number of projects overall North America Michigan, 10% California, 9% Other USA, 38% Ontario, 7% North Carolina, 7% Texas, 6% Other Canada, 6% South Carolina, 3% Quebec, 4% Pennsylvania, 5% Mississippi, 5% Share of R&D projects by destination state 27

28 - USA, and hold top positions in most key sectors - France and UK also good top 5 performers Top recipient countries in strongest FDI sectors, 2005 Business services Financial services Motor vehicles (incl. Accessories) Electronics USA UK France USA UK Russia USA Poland France USA France UK ICT Food and beverages Pharmaceuticals Base chemicals UK USA France USA France UK USA France UK USA France Brazil 28