Columbus, OH / May 9, 2012@bruce_katz #globalcities

11.2 millionjobs needed

More Jobs

More Jobs

More Jobs & Better Jobs

A vision for the next American economy

1 2 3

1

2 3

The next economy will be largely metropolitan

1 2 31

2

3

1 2 31 2

3 Metropolitan areas are driving innovation

METROINNOVATION

A vision for the next American economy

1 2 3

1

2 3

2009

Global GDP

19.9%US

21.0%BIC Countries

Source: International Monetary Fund, World Economic Outlook Database, April 2010

2015

Global GDP

26.5%BIC Countries

17.9%US

Source: International Monetary Fund, World Economic Outlook Database, April 2010

Global Metro Population

2009

50%

Global Metro Population

2030

60%

Source: UN Department of Economic-Social Affairs, World Urbanization Prospects, 2009

Economic Performance2010-2011

Highest Performing MetrosLowest Performing Metros

Source: Brookings, Global MetroMonitor, January 2012

Exports Share of GDP2010

13%

United States

29% 22%

15%

30%

Japan

China Canada India

European Union

15%

Source: Brookings analysis of WTO and EIU data, 2011

Transport Networks are Clogged and Congested

Can we get back into the export game?

11%US export growth2009-2010

46%exports share of GDP growth2009-2011

billionUS manufactured exports 2010

$944

Japan

$680$944

United States GermanyFrance

$409

China

$1477

$1091

Top Manufacturing Exporting Countries2010, Billions

Source: World Trade Organization, 2011

What the US makesThe world takes

$358

ServiceImports

ServiceExports

$518

US Service TradeBillions, 2010

$160 billiontrade surplus

Source: World Trade Organization, 2011 (Data reflect Commercial Services)

Service ExportsShare of World Total, 2010

14.0%United States

6.3%Germany

Source: Brookings, Export Nation 2012

“We set a new goal: We will double our exports over the next five years, an increase that will support two million jobs in America.”

President ObamaJanuary 27, 2010

Photo: Pete Souza, The White House

Can the U.S. play in thelow carbon revolution?

Sources: Brookings-Battelle Clean Economy Database (2011)

2.7 millionclean economy jobs

1.4 millionbiosciences jobs

4.8 millionIT jobs

2.4 millionfossil fuel jobs

2.7 millionclean economy jobs

Sources: Brookings-Battelle Clean Economy Database (2011), Brookings Analysis of Battelle, BLS, Moody’s Analytics data

$53.9 billionclean economy exports

Source: Brookings-Battelle Clean Economy Database (2011) and Moody’s Economy.com

$53.9 billionclean economy exports

NationalEconomy

$10,392

Export IntensityYearly Export Earnings per Job

$20,124

Clean Economy

Source: Brookings-Battelle Clean Economy Database (2011) and Moody’s Economy.com

Source: EOP “A Framework for Revitalizing American Manufacturing” (2009)Brookings “Accelerating Advanced Manufacturing with New Research Centers” (2011)

90%manufacturing share of patents

68%manufacturing share of R&D

35%manufacturingshare of engineers

Can the U.S. be anInnovation Nation?

What do soaring Chinese wages mean

for global manufacturing?

May 10, 2012

China is the world’s largest manufacturing

power. Its output of televisions,

smartphones, steel pipes and other things

you can drop on your foot surpassed

America’s in 2010. China now accounts for a

fifth of global manufacturing. Its factories

have made so much, so cheaply that they

have curbed inflation in many of its trading

partners. But the era of cheap China may be

drawing to a close.

The End of Cheap

China

US Names China On Intellectual-Property Watchlist

April 30, 2012

China's insufficient protection of intellectual property rights remains a top priority for U.S. trade policy, given the "troubling" direction of recent government measures aimed at supporting domestic innovation, the U.S. Trade Representative's office said Monday.

The coming US boom and howshale gas will fuel itApril 23, 2012

Ten years from today, the CEA and Federal Reserve chairman will again celebrate a decade of unexpected strong growth. This time the credit will go to countrywide gains from the very low energy prices found only in the US. Low-cost energy will have spawned an export surge in all sorts of goods, from chemicals to tyres.

Quake Disrupts Key Supply ChainsApril 30, 2012

The earthquake that struck northeast Japan Friday forced shutdowns across a broad spectrum of the country's industries, but the bigger impact for companies could come in the weeks ahead as the disruptions make their way through the global supply chain.The 8.9-magnitude earth quake, one of the largest on record, has crippled activity for now in a country that is a

Source: Brookings analysis of Moody’s Economy.com data

What do soaring Chinese wages mean

for global manufacturing?

May 10, 2012

China is the world’s largest manufacturing

power. Its output of televisions,

smartphones, steel pipes and other things

you can drop on your foot surpassed

America’s in 2010. China now accounts for a

fifth of global manufacturing. Its factories

have made so much, so cheaply that they

have curbed inflation in many of its trading

partners. But the era of cheap China may be

drawing to a close.

The End of Cheap

ChinaUS Names China On Intellectual-Property Watchlist

April 30, 2012

China's insufficient protection of intellectual property rights remains a top priority for U.S. trade policy, given the "troubling" direction of recent government measures aimed at supporting domestic innovation, the U.S. Trade Representative's office said Monday.

The coming US boom and howshale gas will fuel itApril 23, 2012

Ten years from today, the CEA and Federal Reserve chairman will again celebrate a decade of unexpected strong growth. This time the credit will go to countrywide gains from the very low energy prices found only in the US. Low-cost energy will have spawned an export surge in all sorts of goods, from chemicals to tyres.

Quake Disrupts Key Supply ChainsApril 30, 2012

The earthquake that struck northeast Japan Friday forced shutdowns across a broad spectrum of the country's industries, but the bigger impact for companies could come in the weeks ahead as the disruptions make their way through the global supply chain.The 8.9-magnitude earth quake, one of the largest on record, has crippled activity for now in a country that is a

38%manufacturing share of economic growth2009 Q3 - 2011 Q4

Source: Brookings analysis of Moody’s Economy.com data

11%wage premiumin exporting firms

Source: Istrate, Rothwell & Katz, Export Nation (2010)

Greater likelihood of health and retirement benefits in export-intense industries

The U.S. must get smart...

fast

Source: US Census Bureau, 2010 American Community Survey

Hispanics

19%

African Americans

Non-Hispanic Whites

Asians

25%39%

56%

Educational AttainmentAssociate’s Degree or Higher

United States

36%

Source: US Census Bureau, 2010 American Community Survey

Hispanics

19%

African Americans

25%

Educational AttainmentAssociate’s Degree or Higher

The next economy will be largely metropolitan

1 2 31

2

3

Source: Brookings analysis of US Bureau of Economic Analysis data

OhioAkron, Cincinnati, Cleveland, Columbus

Dayton, Toledo, Youngstown

Population GDP

71% 78%

OhioAkron, Cincinnati, Cleveland, Columbus

Dayton, Toledo, Youngstown

Population GDP

Canton, Springfield, Mansfield, Lima, Sandusky, Wheeling, Weirton, Huntington, Parkersburg

81% 86%

Service Exports

75%63%

Manufacturing Exports

Population

66%

Top 100 Metro ExportsShare of U.S. Totals

Source: Brookings, ExportNation 2012

Top 100 Metro Exports

Chemical Products

68% 76%

Business/Professional

Services

Computer/Electronic Products

78%

Population

66%

Share of U.S. Totals

Source: Brookings, ExportNation 2012

Top 100 Metro Trade Logistics

U.S. Air Cargo Weight

82% 88%

Foreign Waterborne

Cargo Weight

Airline Boardings

92%

Population

66%

Share of U.S. Totals

Source: Brookings analysis of US Census Bureau, FAA, and PIERS data (2009)

Aerial imagery: © DigitalGlobe, GeoEye, Sanborn, USGS, USDA FSA

Aerial imagery: © DigitalGlobe, GeoEye, Sanborn, USGS, USDA FSA

$7.9 B

Top 100Metros

ColumbusMetro

Export Intensity

9.8% 8.9%

Export VolumeGoods & Services Exports

61.1%goods share of exports

Columbus, OH Metro Export Dashboard

55,500Export Jobs

38.9%services share

of exports

Top Services SectorsTop Services SectorsBusiness & Professional Services 11.2%

Travel & Tourism 8.8%

Financial Services 7.9%

Top Manufacturing SectorsTop Manufacturing SectorsTransportation Equipment 18.9%

Chemicals 14.2%

Machinery 11.3%

Source: Brookings, ExportNation 2012

BROOKINGS | April 2012

1

Locating American

Manufacturing: Trends in the Geography of Production

Susan Helper, Timothy Krueger, and Howard Wial1

“ Different regions

of the country,

different met-

ropolitan areas,

and even dif-

ferent counties

within the same

metropolitan

area differ greatly

in their manufac-

turing industries,

technology lev-

els, wages, and

plant sizes.”

FindingsAnalysis of data on employment, earnings, and the number of business establishments engaged

in U.S. manufacturing finds that:

Q��Metropolitan areas, especially large metropolitan areas and central metropolitan coun-

ties, contain the great majority of manufacturing jobs and nearly all very high-technology

manufacturing jobs, reflecting the advantages they provide to manufacturing in general

and very high-technology manufacturing in particular. In 2010, metropolitan areas con-

tained 79.5 percent of all manufacturing jobs, 78.6 percent of moderately high-technology

manufacturing jobs, and 95 percent of very high-technology manufacturing jobs.

Q��U.S. metropolitan areas have become increasingly specialized in manufacturing since

1980 but they vary widely in their manufacturing activities and focuses. Nearly all met-

ropolitan areas specialize strongly in at least one manufacturing industry even if they do not

specialize strongly in manufacturing as a whole.

Q��Manufacturing in most metropolitan areas follows one or more of six broad patterns of

industry clustering. These patterns are anchored in high specializations in computers and

electronics, transportation equipment, low-wage manufacturing industries, chemicals, machin-

ery, and food production.

Q��Manufacturing wages vary widely among metropolitan areas. In the nation’s 100 largest

metropolitan areas, the average manufacturing earnings are highest in San Jose, at about

$145,000 per year, and lowest in McAllen, at about $35,000.

Q��Metropolitan manufacturing plants are relatively small but vary widely in size among

metropolitan areas. In 2009, the average metropolitan manufacturing plant had 57.4 employ-

ees, a figure that ranged from a high of 203.6 in Kingsport, TN, to a low of 9.1 in Ocean City, NJ.

Q��The long-term shift of manufacturing jobs toward the South came to a halt in the first

decade of the 21st century, while the Midwest had the fastest manufacturing job gains

over the last two years. Between 2000 and 2010 both the Midwest and the South lost about

34 percent of their manufacturing jobs, while between the first quarter of 2010 and the fourth

quarter of 2011 the Midwest saw a manufacturing job gain of 5.2 percent while the South saw a

gain of 2.2 percent.

Q� The early 21st century saw a resumption or continuation of long-term shifts of manu-

facturing jobs away from metropolitan areas and central metropolitan counties. Between

2000 and 2010 the central counties of metropolitan areas with three or more counties lost

33.9 percent of their manufacturing jobs while the outlying counties of those metropolitan

areas lost 29.3 percent. Although metropolitan areas lost manufacturing jobs at a slower rate

than nonmetropolitan counties between 2000 and 2010, nonmetropolitan counties gained

manufacturing jobs more rapidly than metropolitan areas during the past two years.

In view of these findings, public policy should enhance the innovation and productivity advan-

tages that metropolitan areas offer manufacturers, while eliminating artificial incentives for

manufacturers to seek low-wage locations. Because there is so much regional variation in

manufacturing, federal policy should provide a platform for state, local, and metropolitan efforts,

which can formulate policies to respond to regional needs.

www.brookings.edu/USmfg

CincinnatiAerospace

DaytonMachinery

ToledoMotor Vehicles & Parts

ClevelandFabricated Metal Products

AkronPlastics & Rubber

YoungstownPrimary Metals

ColumbusMotor Vehicles & Parts

Ohio Metro Manufacturing Specialties

Source: Brookings, Locating American Manufacturing 2012

63,154

US ColumbusMetro

ManufacturingIntensity

8.5%6.9%

Manufacturing JobsTop Manufacturing Sectors

Columbus, OH Metro Export Dashboard

Motor Vehicles & Parts 18.9%Food 14.2%Fabricated Metals 11.3%Machinery 10.2%Nonmineral Mineral Products 6.8%

US ColumbusMetro

Manufacturing Growth

2010 Q1 - 2011 Q4

2.7%3.3%

Source: Brookings, Locating American Manufacturing 2012

1 2 31 2

3 Metropolitan areas are driving innovation

METROINNOVATION

Innovate Locally

Market AssessmentTarget Sectors

8% 9%12%

Economic Profile

15%

12%

13%

9%

Establish Goals & Strategies

Boost SME exportsIncrease global fluency

Double exports Support key sectors

Governments

Philanthropy

Firms

Universities

Collaborate to CompeteLos Angeles

Seattle

Minneapols-Saint Paul

Portland

Northeast Ohio

Syracuse

Metropolitan Business Planning

Target industries: aerospace, computer and electronic products, pharmaceuticals, professional services, film and television

University ofSouthern California

University of California Los Angeles

City ofLos Angeles

Grow Los Angeles metropolitan exports

Los Angeles Regional Export Council

Los Angeles

Metropolitan Business Planning

Northeast Ohio

Metropolitan Business Planning Key manufacturing growth sectors: fuel cells, electric vehicles, organic electronics

Retool manufacturing and retrain industrial workers

Case WesternReserve

The Universityof Akron

John GlennResearch Center

3XEOLVKHG�%\��WKH�&ROXPEXV�&RXQFLO�RQ�:RUOG�$IIDLUVWith Support From: Columbus2020!, MORPC, and The Columbus FoundationResearch By: Community Research Partners

A catalog of international assets in Greater Columbus6XPPDU\

www.columbusworldaffairs.org

Innovate Locally Advocate Nationally

PennsylvaniaCenter for Trade & DevelopmentState Governments

22 foreign tradeoffices

firms assisted with exports1,350

new exports from assisted firms, 2010$483 m

FloridaEnterprise Florida

12 internationaloffices

$3 b state GDP added from export assistance & business development in 2011

State Governments

OhioState Governments

to foster innovation ecosystem in Ohio 2010-2016

$700 m Third Frontier

OhioState Governments

7 regional centers providing innovation & commercialization services

to foster innovation ecosystem in Ohio 2010-2016

$700 m Third Frontier

Edison Technology Centers

JobsOhio

Attracting foreign direct investment

Empowering regional economic development

Federal Government

MAP-21Moving Ahead for Progress in the 21st Century

Export-Import Bank

Reauthorization

Protect InnovationOpen Markets

Free Trade

AgreementFree Trade AgreementFree Trade

Agreement

Federal Government

Modernize Trade Corridors

Protect InnovationOpen Markets

Free Trade

AgreementFree Trade AgreementFree Trade

Agreement

Federal Government

US Patent & Trademark Office

US Trade RepresentativeIntellectual Property

Enforcement Coordinator

Modernize Trade Corridors

Protect InnovationOpen Markets

Free Trade

AgreementFree Trade AgreementFree Trade

Agreement

Federal Government

US Patent & Trademark Office

US Trade RepresentativeIntellectual Property

Enforcement Coordinator

Modernize Trade Corridors

Council of Economic Advisors Council on Environmental Quality National Security Council

Office of Administration Office of Management & Budget Office of Nat’l Drug Control Policy

Office of Policy Development Office of Science & Technology Policy Office of the US Trade Representative

Department of Agriculture Department of Commerce Department of Defense Department of Education Department of Energy

Department of Health & Human Services Department of Homeland Security Department of Housing & Urban

Development Department of the Interior Department of Justice

Department of Labor Department of State Department of Transportation Department of Treasury Department of Veterans Affairs

African Development Foundation

Central Intelligence Agency

Commodity Futures Trading Commission

Consumer Product Safety Commission

Corporation for National and

Community ServiceDefense Nuclear

Facilities Safety BoardEnvironmental

Protection AgencyEqual Employment

Opportunity Commission

Export-Import Bank of the United States

Farm Credit Administration

Federal Communications

CommissionFederal Deposit

Insurance CorporationFederal Election

CommissionFederal Housing Finance Board

Federal Labor Relations Authority

Federal Maritime Commission

Federal Mediation and Conciliation Service

Federal Mine Safety & Health Review Commission

Federal Reserve System

Federal Retirement Thrift Investment

BoardFederal Trade Commission

General Services Administration

Inter-American Foundation

Merit Systems Protection Board

National Aeronautics and Space

Administration

National Archives and Records

AdministrationNational Capital

Planning Commission

National Credit Union Administration

National Foundation on the Arts and

HumanitiesNational Labor

Relations BoardNational Mediation

BoardNational Railroad

Passenger Corporation (AMTRAK)

National Science Foundation

National Transportation Safety

BoardNuclear Regulatory

CommissionOccupational Safety &

Health Review Commission

Office of Government Ethics

Office of Personnel Management

Office of Special Council

Overseas Private Investment Corporation

Peace Corps Pension Benefit Guaranty Corporation

Postal Rate Commission

Railroad Retirement Board

Securities and Exchange Commission

Selective Service System

Small Business Administration

Social Security Administration

Tennessee Valley Authority

Trade & Development Agency

US Agency for International Development

US Commission on Civil Rights

US International Trade Commission US Postal Service

EXECUTIVE OFFICE OF THE PRESIDENT

CABINET AGENCIES

INDEPENDENT ESTABLISHMENTS AND GOVERNMENT CORPORATIONS

Office of the US Trade Representative

Export-Import Bank of the United States

Overseas Private Investment Corporation

Department of Commerce

Small Business Administration

PROPOSED “BUSINESS USA” REORGANIZATION

Export-Import Bank of the United States

Department of CommerceOverseas Private

InvestmentCorporation

Office of the US Trade Representative

Small Business Administration

International Trade AdministrationUS Census

National Technical Information ServiceSelect USA

Bureau of Industry & SecurityNational Institute of Standards & Technology

Minority Business Development Agency

Export-Import Bank of the United States

Department of CommerceOverseas Private

InvestmentCorporation

Office of the US Trade Representative

Small Business Administration

International Trade AdministrationUS Census

National Technical Information ServiceSelect USA

Bureau of Industry & SecurityNational Institute of Standards & Technology

Minority Business Development Agency

INTEGRATED METROPOLITAN EXPORT PROMOTION

Local GovernmentsPhilanthropy

FirmsUniversities

State GovernmentFederal Government

Innovate Locally Network GloballyAdvocate Nationally

New York

Sao Paulo

Toronto

Lagos

Sydney

Tokyo

Shanghai

London

ParisFrankfurt

Detroit

Monterrey

Bogota

Johannesburg

Cologne

ChennaiHanoi

Chongqing

Los Angeles

Buenos Aires Durbin

Dubai

Singapore

Seoul

Tianjin

HamburgRotterdam

Xi’anDelhi

Antioch

Tyre

Samarkand

Lanzhou

Baghdad Tehran

Xi’anDelhi

Antioch

Tyre

Samarkand

Lanzhou

Baghdad Tehran

Columbus, OH / May 9, 2012@bruce_katz #globalcities