Lexington Mayor Jim Gray and Louisville Mayor Greg Fischer released a new plan this week aimed at growing foreign direct investment in the region.
The Bluegrass Economic Advancement Movement (BEAM) region’s Global trade and Investment Plan outlines key findings on the area’s foreign direct investment (FDI) and proposes strategies and action items to cultivate more in the future. The key focus areas of the plan include:
- Harnessing business retention and expansion efforts for best merger and acquisition outcomes among existing foreign and domestic companies, particularly in the middle market,
- Increasing export activity among middle market firms,
- Expanding foreign direct investment in traditionally strong manufacturing sectors, and
- Cultivating FDI from emerging economies in Asia and Latin America.
Mayors Gray and Fischer also accepted a $220,000 grant from JPMorgan Chase, Brookings’ partner in the Global Cities Initiative, which will support the region’s global engagement efforts. The funds will be used to provide export grants to businesses, assist metropolitan-level efforts to build relationships in and recruit FDI from best prospect markets, and bring thought leadership on international trade and investment to the BEAM region.
“We know that an intentional focus on foreign direct investment pays dividends, so I’m proud that the BEAM team is putting our shoulders against this new challenge,” Gray said in a media release. “We’re starting from a strong position, with our clusters of advanced industries providing the leverage for future growth.”
Kentucky has experienced five years of record-breaking export growth, with 2015 exports totaling more than $28 billion. Foreign firms employ about five percent of the private sector in large metropolitan areas, but they account for 7 percent of compensation, 12 percent of productivity growth, nearly 19 percent of corporate research and development, and more than 20 percent of exports.
The BEAM Global Trade and Investment Plan is the second plan released in collaboration with the Brookings Global Cities Initiative. BEAM was selected to develop these plans to increase the region’s international engagement in support of its broad economic development goals. The BEAM Regional Export Plan was released in 2013.
BEAM was launched by Gray and Fischer in 2011. Bringing together the 22 counties that include and surround Lexington and Louisville, this strategic partnership implements a regional economic development approach for the Commonwealth’s two largest metropolitan areas.
To learn more about the 22-county BEAM region, check online at http://www.lexingtonky.gov/BEAM.