FTNB Live: The best US cities for foreign investment
Nov 11, 2023
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Peter Spiegel, Amanda Chu, Jacopo Dettoni, and Chris Knight discuss the FT's ranking of best US cities for foreign investment. They explore Houston's rise as a top destination, Miami's drop in rankings, the role of talent and hybrid working, and factors contributing to high cost of living in certain cities.
Houston, Texas secures the top spot for foreign investment due to its industrial transformation and favorable business environment.
Miami remains a highly attractive destination for foreign direct investment despite slipping in the rankings, and its consistent popularity and significant construction activity indicate enduring appeal for investors.
Deep dives
Houston tops the ranking as the friendliest city for foreign investors
Houston, Texas has emerged as the top-ranking city for foreign investors to park their money, surpassing last year's winner, Miami. Houston's success can be attributed to its industrial and molecular transformation, driven by historic industrial policies that support production in semiconductors and clean energy. The city offers a friendly business environment with low taxes and favorable labor laws, while also being an affordable place to live. Houston excels in categories like foreign business needs, boasting one of the busiest airports and seaports in the US, and a strong working-age and college-educated population.
Reasons behind Miami's decline and its ongoing appeal to foreign investors
Miami has slipped in the rankings from first to sixth place due to higher costs of housing, office space, and new climate risk variables. However, the city remains a highly attractive destination for foreign direct investment, particularly in securing inward investment. Miami's investment trends category demonstrates its ongoing magnetism for foreign businesses. It offers a robust business environment and continues to be a major player in the market. While challenges related to housing costs impact Miami's quality of life ranking, the city's consistent popularity and significant construction activity indicate its enduring appeal for investors.
The importance of talent and workforce availability for attracting investment
The rankings highlight the significance of talent and workforce availability for attracting foreign investments. Cities that score highly consistently excel in these areas. The presence of a skilled workforce, both in high-end industries like IT and programming, as well as lower-skilled sectors, plays a crucial role in attracting investors. The evolving employment landscape, including the rise of hybrid working, has led to a paradigm shift, with companies increasingly chasing workers rather than workers chasing companies. Economic developers need to understand the data and continuously assess their rankings in order to attract investment and adapt to the evolving needs of businesses.
We’re bringing you a special live conversation from the FT’s Investing in America conference in Miami. Marc is joined on stage by FT US managing editor Peter Spiegel, FT energy reporter Amanda Chu, fDi Intelligence editor Jacopo Dettoni, and fDi managing director Chris Knight to discuss which city won the top spot on the FT’s ranking of best US cities for foreign investment.