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By Tim Monger on November 17, 2015
“The world is neither flat nor round.”
 
“From an economic perspective, the world is more like a Rubik’s Cube, with varying combinations of interdependent conditions and developments leading to different outcomes.” This is the opening statement in “Global Location Trends – 2015 Annual Report” produced by the IBM Global Business Services. The report outlines the latest trends in corporate location selection.
 
As global supply chains become increasingly complex a location’s unique competitive advantages become more important, especially for manufacturing activities. The report cites the emergence of the Internet of Things (IoT) and the changes associated with the Fourth Industrial Revolution as factors that will radically transform the global manufacturing landscape.
 
According to the Authors, “This transformation of industries will have significant ramifications for labor markets and corporate skills requirements, and public-sector leaders must improve alignment between supply and demand of skills and prioritize efforts to foster educational programs that better serve the skill requirements of industries.”
 
The report shows hat the U.S. remains the world’s top destination for Foreign Direct Investment. U.S. locations that offer a strong value proposition for foreign investment have a combination of three fundamental drivers: market, talent and cost efficiency.
 
According to the report, “Companies are increasingly looking to balance different objectives relating to market, talent, resources and costs.” The niche advantages companies are looking for include:
·      Increasing IT investment across industries – Locations with competitive advantage in non-IT sectors coupled with strong IT capabilities are attractive candidates for investment.
·      Internet of Things: data as the new source of value creation and economic growth – Known as the Fourth Industrial Revolution, the transformation of IoT-engaged industries is expected to usher in a new era of economic growth fueled by the power of data.
·      Skills and agility for competitive advantage – Skills and competences will emerge as the foundation of competitive advantage between locations.
·      Implications for corporate executives – Companies need to transform and optimize their operating models to respond to opportunities of the IoT and the Fourth Industrial Revolution.
 
So if companies are looking for locations with particular value propositions and competitive advantages in a combination of sectors and functions how do Hamilton County and the Indy region stack up? From an economic developers perspective we believe the region is taking steps that will position us as a preferred destination for companies to locate their facilities.
Categories: "Economic Development", "Hamilton County", Indiana