Miami leads the way in FT-Nikkei ranking of best U.S. cities for foreign companies
Miami has won the top spot in the first-ever “Investing in America” ranking produced by the Financial Times (FT) and Nikkei. The ranking measured best U.S. cities for foreign businesses and foreign investment in the U.S. The Florida city has been selected the best city in the U.S. for foreign multinationals to do business in. Florida has three of the top 10 cities in the FT-Nikkei ranking, while Texas and North Carolina each have two cities in the top 10 list.
Miami topped the list, in part, because in 2021 it enticed the most foreign direct investment (FDI) per-capita of any community in the ranking. The seaside hot spot also scored high among cities due to its two large shipping ports and its international airport that provides non-stop service to many overseas destinations.
The FT-Nikkei ranking measured cities across more than 30 weighted metrics including workforce and talent, openness, business environment, foreign business needs, and quality of life.
Another criteria used in the ranking was “aftercare.” This category measured how well cities supported companies once they have been established in the community. A quarter of all previously undeveloped (greenfield) FDI projects in the U.S. last year were expansions of existing investments.
Yes, Miami has grown into a global hub and a place that has attracted investments from overseas firms. “We are welcoming, and we want the best and the brightest, and the best-capitalized people here. Why? Because it’s going to strengthen us,” says Miami Mayor Francis Suarez.
According to a Greater Miami Chamber of Commerce statement, the United Kingdom, Panama and Spain are at the top of the list among countries whose companies contribute the most FDI monies to the South Florida metropolis. Another factor that may contribute to Miami’s high ranking: more than 50 percent of Miami’s residents are foreign born, the highest proportion of any large U.S. metro area.
Jacksonville, Fla., which finished number eight among U.S. cities in the FT-Nikkei ranking in FDI, has a lot to offer, says Aundra Wallace, president of JAXUSA Partnership, a private, nonprofit division of the JAX Chamber. It is Jacksonville’s regional economic development initiative overseeing the efforts of the seven counties of Northeast Florida.
“Our geographic location in particular plays a significant role in our attractiveness for foreign investment; the region’s infrastructure is built for global access, offering same-day reach to more than 98 million consumers,” Wallace tells American City & County. “The Jacksonville Port Authority (JAXPORT) is home to FTZ No. 64, Florida’s largest foreign trade zone and is the only U.S. East Coast port to offer on-dock and near-dock LNG fueling capabilities, a preferred environmentally friendly fuel source for the maritime industry.”
Wallace notes that leading enterprises are setting up shop in his community. “Internationally based companies like Medtronic, Deutsche Bank, Jinko Solar and Pilot Pen are thriving in the region given our lower costs to doing business, access to skilled talent and exceptional quality of life.”
Yes, FDI is a good thing, Wallace explains. “Foreign direct investment creates competitive advantages for communities. From reduced production and business costs to accessing new markets, these advantages add up and help to provide prosperity to residents and existing businesses. Foreign direct investment is propelling growth in communities across America, creating a better understanding of the world and its people for both the citizens of a city and those from foreign nations.”
Victor Hoskins, president and CEO of the Fairfax County Economic Development Authority (FCEDA), says that sizable foreign direct investment in a community is a sign that foreign multinationals have great confidence in a particular city or region. “Well, they say if you want to know what someone believes in, just look at their checkbook. Foreign investors want to put their money in an environment where there is predictability, and this is one of the main reasons why they invest in many of the U.S. metropolitan areas like the Greater Washington, D.C. region—the predictability of our markets. In turn, this investment behavior makes the environment in these markets even more predictable because they bring capital in from the outside, which gives the local economy strength. So, it is almost a self-fulfilling prophecy.”
The Columbus, Ohio area is home to 302 foreign establishments with more than 60,000 employees. A recent triumph in the region took place when Honda Motor Co. Ltd.—the Japanese manufacturer of automobiles, motorcycles and power equipment—recently announced a $700 million investment to refurbish three Ohio Honda production factories and add 300 new jobs.
Kenny McDonald, president and CEO of the Columbus Partnership, says various measures motivate overseas businesses when they consider expanding into the United States. The Columbus Partnership is a nonprofit organization of CEOs from Columbus’ leading businesses and institutions.
“When looking for a location, international businesses consider numerous factors, from skilled labor and cost of doing business, to connectivity and overall market strength. In the Columbus, Ohio, region, international businesses benefit from no corporate income or personal property taxes, Triple-A bond rating in a fiscally stable state and a highly diverse economy, with no industry making up more than 18 percent of employment,” McDonald tells American City & County. “Ultimately, if a city can secure international investments, it shows a location is fiscally competitive, stable and able to attract and retain a steady supply of talented workers.” He adds that the Columbus region scores No. 1 for population, job and GDP growth among the Midwest’s 10 largest metros.
The gallery above is based on results from the FT-Nikkei ranking of best U.S. cities for foreign businesses.
Michael Keating is senior editor for American City & County. Contact him at [email protected].
