2011 3 16 int'l attraction

International Business Attraction

Update

March 16, 2011

Agenda

• Welcome

• About Team NEO

• International Business Attraction Update

• Cleveland Plus Europe Results & Plans

• What’s new in 2011

• Q & A

About Team NEO

Regional Business Attraction Agent

Our Brand

A collaboration of the business community, local chambers of commerce, government, non-

profits, and colleges and universities committed to advancing the economy of Northeast Ohio

Team NEO: Regional Business Attraction

The Sales Force for Northeast Ohio

Generate

Leads

Execute

Leads

Promote Regional

Teamwork

Team NEO’s Strategic Focus

Team NEO advances Northeast Ohio's economy by attracting

businesses worldwide to the 16-county Cleveland Plus region

Mission

7

Partners/Funders: The Greater Team

8

• International business attraction; a key strategic choice within

our 2009-2012 Team NEO Strategic Plan

• Proactive international business attraction effort funded by

grant provided by The Cleveland Foundation

• Crafted a 3-year International Business Plan

• Engaged Consulting Firm in Europe: “Cleveland Plus

Europe” in February 2010

• Retained International Business Attraction Director,

Bernardine van Kessel in May 2010


Team NEO Strategic Choice

Another Recent Win For The Region

Roechling

– Plastic injection molding plant for auto industry

– 123 jobs, $5.2 M payroll, $28.5 M capital investment

– Parent company – Mannheim, Germany

– Have existing facilities in US

– Company has operations (another division) in NEO

(Cleveland area)

Team NEO: Helping to Build the Business Case

Services Provided by Team NEO to Roechling:

– Regional site search

– Tax comparison denoting operating and balance sheet impacts

between the State of Ohio and Michigan

– Quantitative research depicting the existing workforce (depth,

location, commute patterns, training, compensation)

– Quantitative research depicting the current trends for organized

labor in the region

– Quantitative and qualitative (direct dialogue with local industry

leaders) story for the polymer and plastics industry

– Coordinated assembly of state incentives

– Assisted assembly of local incentives for Akron, Stow, Hudson

Many Contributors Help Make Success

• City of Akron (Congrats!)

• Cities of Stow and Hudson (making it a tough choice for

Roechling)

• Greater Akron Chamber

• Summit County

• State of Ohio

• University of Akron

• PolymerOhio

• NEOTEC

• Team NEO

11


Update

2010 Results

2011 Plan

Team NEO International Strategy

• Support and leverage existing international economic

development efforts in the region

• Leverage State of Ohio‟s 11 Trade & Investment Offices

worldwide

• Proactively promote Northeast Ohio in select international

markets while continuing to nurture opportunities that

come to us through traditional lead generators

Team NEO International Strategy

Target Industries:

• Consistent with domestic strategy:

– Medical Devices

– Advanced Energy

– Aerospace

– Polymers

– Adding “mechatronics” (instruments & controls, metalworking or: “advanced manufacturing”) in 2011

Target Geography:

• Europe: source of more than 60% of current FDI

• China: emerging, large market that cannot be ignored

• Canada: largest US trading partner and close proximity to Ohio

International Efforts in China

• Participated in the State of Ohio Business Development Mission to China (June 2010)

– Met with 8 companies (advanced energy, automotive)

– Generated 2 site visits

– One lead has located in NEO --- Boneng (Twinsburg)

• Participated in high-level, government-led China Delegation to Cincinnati (May 2010)

- Resulted in one lead

• Hosted Tianjin Province advanced energy mission to NEO (Aug. „10)


Results 2010

• FDI interest in Northeast Ohio is growing:

14 International leads in 2008

27 International leads in 2010 (+92%)

• Half of all 2010 Team NEO wins were foreign-owned

companies:

• Ambaflex (Netherlands)

• Genae (Denmark)

• Green Processing (Canada)

• Ni Medical (Israel)

• Boneng (China)

• Ardent (Taiwan)

Ambaflex: A Case Study

• A Dutch manufacturer of conveyor

belts for food & beverage industry

• Lead came to Team NEO from the

Ohio Brussels‟ Office – April 2010

• Company also contacted NOCC

• Met with company during NEO site

visit to determine needs

• Shared site information requests

with Team NEO partners

Ambaflex: A Case Study (continued)

• Visited Ambaflex Netherlands‟

headquarters – August 2010

• Specific requirement: Ambaflex

needed to co-locate with a wet-

coating company

• Stark Development Board

responded to region-wide inquiry

with suitable partner opportunity

• Ambaflex made partner selection

in fall of 2010

Ambaflex: A Case Study (continued)

• Currently employs 6 people and

is expanding

• Current investment: $600,000

• Projected employment in 3

years: 15-17 people

• Planning construction of 20,000

SF facility in Canton in 2012

• Sources most of its components

locally in NEO!

Ambaflex:

Welcome to Northeast Ohio!

March 2011

Investment Promotion Program

for

Northeast Ohio in Europe

Approach of CLE+ Europe

Creation of well-paid jobs

Attraction of new technologies

Filling gaps in Northeast Ohio`s local added value chain

Strengthening the industrial and service infrastructure in the

region

Diversification of existing industries

Leveraging technology and marketing synergies between

foreign and local companies

Potential for local universities and research institutes to

cooperate with foreign companies and research institutes

Qualitative growth for Northeast Ohio

Overall Objectives

ObjectivesThis we achieve through:

Identification and follow-up of corporate investment leads and projects.

Identification and follow-up of cooperation projects for companies.

Identification and follow-up of R&D cooperation from companies,

universities, and research institutes.

Networking with public and private officials.

Preparation of delegation trips from Europe to Northeast Ohio as well as

from Northeast Ohio to Europe.

Increase the image and awareness of Northeast Ohio as an attractive

investment target.

A long term CRM is the key success factor for investment

promotion

On average a mid-sized company invests every 5 years in new

subsidiaries.

Typical process of an investment decision (Example)

Strategy and Approach of CLE+ Europe

Careful identification of the companies to be approached.

Development of company individual business scenarios that

present a successful implementation in Northeast Ohio.

Repeated and systematic contact approach to the right

companies

and right people.

Follow-up of potential projects - very professional and

intensive is critical.

Direct marketing is key – integrated into a comprehensive

marketing program: trade shows, events, networking, etc.

Strategy and Approach of CLE+ Europe

Identification

of Investors

1. The Marketing Mix

Investment Promotion Program for Northeast Ohio in Europe

Direct Marketing

Trade Fair

Visits

Intermediaries

Networking

Northeast

Ohio/Ohio

Business

Delegation Visits

to Europe

European

Delegation Visits

to Northeast

Ohio/Ohio

Arranging

Meetings for

Northeast

Ohio/Ohio

Officials in

Europe

Cooperation

Matchmaking

1• Development of Company Lists

2• Individual Mailing

3• Telephone Follow-up

4• Sending Additional Information

5• In-house Presentations

6• Information fromTeam NEO

7• Proposal / Negotiations

SUCCESS

2. Direct Marketing

Identification of potential Investors through a systematic direct marketing

approach


Well-prepared visits at trade shows generate contacts to potential investors

CLE+ Europe identified most identified investment projects through

contacts at trade shows.

Hannover Fair 2010

PowTech 2010

Waste to Energy 2010

Intersolar 2010

ILA 2010

Husum WindEnergy 2010

K-Fair 2010

Medica 2010

SPS/IPS/Drives 2010

There are many trade shows in Europe related to the target

industries of Northeast Ohio. CLE+ Europe visited the following

trade fairs in 2010 and will visit in 2011:

BAU 2011

Ferroforma 2011

Hannover Fair 2011

Solarexpo – Greenbuilding 2011

Interpack 2011

EuroPCR 2011

Laser World of Photonics 2011

Intersolar Europe 2011

Salon de L‟Aéronautique et de l‟Espace

2011

…

5. Trade Fair Visits


CLE+ Europe has access to PM&P’s comprehensive network and data bank of

intermediaries in Europe

Intermediaries are a high-value source of contacts to FDI projects.

Location Consultants

Management Consultants

Human Resources Consultants

Real Estate Consultants

CONSULTANTS

Investment Banks

Other Banks

International Lawyers

Venture Capital companies

Auditors / Tax Advisory Companies

FINANCE / M&A

Industry Associations

Sector Experts / Consultants

Sector Journalists

Sector Magazines

Sector Event Organizers

SECTOR COMMUNITIES

Chambers of Commerce

Export Promotion Organisations

Business Clubs

Online Communities

Other IPAs

OTHER BUSINESS

COMMUNITIES

6. Intermediaries Networking


Type of cooperation projects

Distribution agreements

Production agreements

R&D agreements

Cross licensing

Financial investments

General Aspects of the Incoming as well as Outgoing

cooperation services:

Pro-active promotion of these services abroad is

essential

Concentrate on selected clusters

Individual search for each project

Go-between services necessary – e.g. exchange of

information, arranging meetings, first visit support,

etc.

Support tools: e.g. data bank, questionnaires,

standard letters, etc.

Companies from your region

targeting partnerships with

firms

in foreign markets

Foreign companies targeting

partnerships with firms from

your region

incoming

outgoing

3. Cooperation Matchmaking


March 2011

Investment Promotion Program

for

Northeast Ohio in Europe

Activities and Results of CLE+ Europe in 2010/2011

Results

March 2010 – January 2011

Number of generated investment projects

(Leads)

Number of cooperation projects identified

(Matchmaking Projects)

Number of companies in our active company portfolio

Number of companies contacted

Overall Results of our Activities

1

0

2

1

114

11

K

…which expect high growth rates

…which show already high investment levels in the US

…which benefit from the Northeast Ohio location

…which fit into the added value chain in Northeast Ohio

…which are strong in the target country of our investment

promotion

CLE+ Europe approached those Industry and Service Sectors …

Our Approach

In 2010, CLE+ Europe mainly focused

on the following sectors:

Target groups

Our Approach

AerospaceMedicalRubber

and Plastics

Alternative energy, with focus on

photovoltaic, bio- and wind

energy

Trade Fair Visits

Trade Fair Month

Hannover Fair 2010

Hannover Fair - the world‟s most important technology eventApril 23, 2010

PowTech 2010

International trade show for mechanical processing technologies

and instrumentation

April 29, 2010

Waste to Energy 2010International trade show for bioenergy

May 4, 2010

Intersolar 2010

International trade show for photovoltaicJune 09-11, 2010

ILA 2010

International trade show for aerospaceJune 10-11, 2010

Husum WindEnergy 2010

International trade show for wind energySeptember 22-24, 2010

K-Fair 2010

International trade show for rubber and plasticsOctober 27-29, 2010

Medica 2010

International trade show for medicalNovember 17-19, 2010

SPS/IPS/Drives

International trade show for automationNovember 23, 2010

BAU 2011

International trade show for architecture, material and systemsJanuary 17, 19-20, 2011

Our Approach

Personal meetings at the following trade fairs:

Federal Business Development Organizations

bw-i Baden-Wurttemberg International

wvib – Business Association of companies

Baden

Cluster and Network Organizations

Cyberforum (largest IT-Network in Germany)

Industry Associations

LVI – National Industry Association of the State

of Baden-Wurttemberg

Intermediary Networking

Our Approach

Example of the outcomes of

delegations and visits in 2010

August 2010 | Lucerne,

Switzerland

Cleveland Orchestra Event:

7 Companies

3 Multipliers

5 Leads

2 Site visits completed

2 Site visits scheduled

Our Approach

Delegations/Visits

Summary Results of Company Matchmaking

Our Approach

Companies identified

Team NEO Counties

21 completed

Questionnaires

248 total potential

partner companies

identified

Companies located in

14 Counties

In 2010, CLE+ Europe

created a portfolio of 114

companies which could

have the potential for

investments in Northeast

Ohio in the future.

CLE+ Europe will maintain

contacts to this group of

companies by tracking the

development of their

individual businesses.

Number of companies in our active company portfolio

Our Approach

Active

company

portfolio

Our ApproachIn 2011

Continued contact with high quality, new investment prospects

throughout Europe.

Follow up with existing leads and prospects.

Intensive networking with multipliers on a European level, Trade

Associations, Government Agencies and Economic Development

Agencies.

Continuous approach of existing target sectors throughout Europe, but

also additional sectors such as Mechanical Engineering.

Attending 10 trade shows throughout Europe.

Reception at Medica 2011 in Dusseldorf, Germany in cooperation with

State of Baden-Wurttemberg.

Marketing and Networking event with the Cleveland Orchestra in Baden-

Baden, Germany.

What’s new in 2011

What’s New in 2011

• Complete international updates to our Team NEO website

• Expand our European strategy to more countries

• Utilize Cleveland Plus Europe for US Domestic trade fairs

– MD&M- East -- NYC

– BIO 2011 -- Wash. DC

• Develop relationships with International Trade Development entities in

the US -- Multipliers

– GACC in Chicago – NFIA Chicago

– Flemish Trade & Invest. – Etc.

What’s New in 2011

• Attend the following International Trade Fairs:

– MD&M East – NYC – InterSolar, Germany

– Bio 2011 – Wash. DC – Off-Shore wind Fair, the Netherlands

– Medica 2011- Germany

• Cleveland Orchestra Event in Baden-Baden, Germany

• Canada Outreach:

– Invest in America Mission to Canada (Feb. 2011)

– Participate in OH Sales Partnership Mission to Canada (April 2011)

• Host in-bound trade mission from Antwerp, Belgium

• Host more international site visits

How you can help us…..

45

One Regional Brand

• Video

• Wallet Cards

• Northeast Ohio Marketing brochure

• Industry-specific 2-pagers:

– Medical Devices

– Polymers

– Advanced Energy

– Automotive

Marketing Support: Tools Available

Questions?

2011 3 16 int'l attraction

Education