The economic development team here at Commerce Lexington is always working to attract companies to the region and to help existing companies grow. In fact, we regularly meet with 160 businesses each year that fall into our strategic targets. International companies are a large part of that effort, and we’re proud to announce that Lexington has ranked #7 Top Small American City of the Future 2017/18 for FDI Strategy by fDi Intelligence!
The fDi Intelligence team collected data for over 420 locations under five categories:
- Economic Potential – including factors such as population, population growth, GDP, unemployment, patents, outward FDI (a domestic firm expanding operations to a foreign country), inward FDI (a foreign company investing in or purchasing a local company), FDI in research and development, and FDI in advanced manufacturing.
- Business Friendliness – including factors such as advanced manufacturing companies, hi-tech companies, knowledge-based sector companies, jobs created by inward and outward FDI, and expansion projects.
- Human Capital and Lifestyle – including factors such as institutions of higher education, literacy, physicians, and life expectancy.
- Cost Effectiveness – including factors such as average annual salaries for a variety of skill levels, annual rent per office and industrial space, and other costs associated with establishing a business.
- Connectivity – including factors such as internet speed, airports and international destinations, and proximity of ports.
A sixth strategy, FDI Strategy, was qualitative in nature. Over 70 locations discussed their strategy for promoting FDI. Commerce Lexington submitted an application on behalf of Lexington, highlighting our commitment to establishing and maintaining relationships with companies and investments in our community.
One example is the Lexington-based biotech company Allylix. This company, founded in 2002, develops terpene products and their derivatives for the flavor and fragrance, food ingredient, pharmaceutical, agricultural, and biofuels markets. In 2014, Allylix was acquired by Swiss-based Evolva. Since the acquisition, Commerce Lexington has established strong relationships with the Evolva leadership team and meets with them as part of our existing business retention and expansion program.
Another is Coldstream Laboratories. Over the past decade, Commerce Lexington has maintained a strong relationship with Coldstream Laboratories, a specialty pharmaceutical contract manufacturer that spun out from the University of Kentucky. In January 2015, Coldstream Laboratories was acquired by India-based Piramal Enterprises. As with other mergers and acquisitions, our team met with the new owners as soon as possible to make them aware of how we may assist them. Over the last two years, Commerce Lexington has cultivated that relationship with the company as they have grown. Out team partnered with the Kentucky Cabinet for Economic Development on an expansion project for Piramal. The company announced in February of 2016 that they would invest $10 million and add 40 new jobs to the Lexington operation.
Foreign direct investment (FDI) has long been an important part of the economic growth of the region, due to the presence of major corporations such as Lexmark (China), Toyota (Japan), Webasto (Germany), Sumitomo Electric Wiring Systems (Japan), and many others.
Kentucky is home to hundreds of international companies with operations around the state, and the Bluegrass Region has particularly benefited from foreign direct investment. According to the Kentucky Cabinet for Economic Development, there are 484 foreign-owned facilities employed nearly 106,000 people in Kentucky (as of April 4, 2017). The eight counties of the Bluegrass are home to 21% of these facilities (that’s 99 facilities) and 23% of the employees (nearly 24,000 people).
Check back next week for more about international companies in Lexington and the Bluegrass Region.
For more Bluegrass Rankings, click here.