New version of Toledo Talk


    April 23, 2007

Toledo rated most business friendly - "London-based fDi magazine — Foreign Direct Investment — ranked Toledo 10th among 44 cities in the large-city category overall and the "most business friendly" among large cities. Toledo was judged in the population category of 500,000 to 2 million people, based on its metropolitan population."

"The magazine is a bi-monthly publication of the Financial Times group. Founded in 2001, fDi bills itself as "the single most trusted source of information on foreign direct investment." It claims an audited circulation of 15,000 and a readership of 45,000. It says many of its readers are senior-level executives of companies throughout the world. A one-year subscription is $361."

"The rankings were based on more than 60 criteria, ranging from a city’s cost-effectiveness and transportation infrastructure to human resources. The magazine says the methodology was designed to identify "those cities with the basics in place to flourish in the next few years by attracting high levels of inward investment." "

"The questions included inquiries on local tax rates, the cost per square-foot for office space, salary levels, job creation, and the SAT and ACT scores of the state’s high school students, among other queries."



Excerpts from the Summary of Top 10 Overall rankings, and Top 5 rankings for the seven weighted selection criteria

Top 10 Overall - Large Cities 500,000 - 2 million:

• 1. Juarez, Chihuahua, Mexico
• 2. El Paso, Texas
• 3. Columbus
• 4. Edmonton, Alberta, Canada
• 5. Charlotte
• 6. Satiago de Queretaro, Queretaro, Mexico
• 7. Austin
• 8. Philadelphia
• 9. Nuevo Laredo, Tamaulipas, Mexico
• 10. Toledo

Top 5 most business friendly - Large Cites:

• 1. Toledo
• 2. Austin
• 3. Orlando, Fla.
• 4. Columbus
• 5. Nashville


Ohio cities making other rankings:

Large cities - most cost effective:
• 4. Columbus

Micro cities - most business friendly:
• 2. Blue Ash


Michigan cities making the rankings: None.


From fDI magazine :

"The shortlists are created by asking cities to provide data and qualitative information in much the same way investors approach locations during the screening process used to decide which are suitable for capital investment projects."

"In the second half of 2006, fDi magazine invited key cities across North America to answer more than 60 questions in the seven broad categories listed below."



Cities of the Future criteria

Economic potential

* Percentage of the population under 25
* Adult unemployment level in 2005
* Change in adult unemployment 2003 to 2005
* Average annual earnings of employees in 2005
* Average annual earnings growth 2004 to 2005
* Fiscal balance 2005
* Fiscal balance 2004
* FDI stock per capita at the city level
* FDI stock per capita at the state/province level
* Foreign direct investment in 2005
* Number of foreign investment deals signed in 2005
* Three most significant inward investment projects


Cost effectiveness

* Town centre office rental costs
* Out of town office rental costs
* Factory/industrial premises rental costs
* Warehouse rental costs
* Town centre office purchase costs
* Out of town office purchase costs
* Factory/industrial premises purchase costs
* Warehouse purchase costs
* Secretarial salaries
* Entry level manager salaries
* Middle manager salaries
* Senior manager salaries
* Manual worker wages
* Electricity tariffs for business/industrial users
* Water tariffs for business/industrial users
* Gas tariff for business/industrial users
* Unleaded fuel costs
* Diesel fuel costs


Human resources

* Number of university-level educational institutions in the city
* Number of university-level educational institutions in the state/province
* Leading university and research institutions in the city
* Leading university and research institutions in the state/province
* Number of student graduates in 2005
* Percentage of the city population with a university-level degree
* Number of “World top-200” universities
* Government-sponsored worker training programs


Quality of life

* Best housing areas
* Average residential property purchase price
* Average residential rental costs
* Public and private healthcare facilities
* Leading schools
* Leading international schools
* Cultural and environmental heritage
* Incidents of crime per thousand people


Infrastructure

* Strategic transport links
* Mobile phone ownership (% of adult population)
* Internet connection speeds (maximum available bandwidth)


Business friendliness

* Basic level of corporate taxation
* Business-related taxes at the city level
* Business-related taxes at the state/province level
* Property transaction tax
* Number of out-of-state companies in the city
* Number of out-of-state companies in the state/province
* Number of jobs created by out of state investment in the past year
* Mandatory employer contributions, eg welfare taxes, healthcare benefits etc.


FDI promotion strategy

* Sectors targeted for inward investment
* Financial support available to investors
* Non-financial investment support available to investors
* Major infrastructure and urban planning projects
* Environmental strategies and grants


Possibly related to this topic :

Via the Northwest Ohio Science & Technology Corridor Web site, excerpts from an article (PDF) that appeared in the March 2007 issue of Toledo Business Journal titled "China's Economic Boom and Toledo: What is our Strategy?"

"Some of China’s exports are products we manufacture here in Northwest Ohio. We are in a new competitive global economy where we have not been before. Not only does this new global economy require business and economic adjustments on our part, there are important psychological and sociological adjustments we must now face that neither we nor our parents or grandparents had to face. Clearly, this is a “real world” test of our ability to be creative and innovative as a society and as a community."

"The fact is China’s development and its opening up to the global economy have benefited the United States in significant ways, according to Federal Reserve Board Chairman, Ben Bernanke. China is now the second-largest source of U.S. imports and that results in a boost to our real incomes “by allowing U.S. households to purchase consumption goods … at a lower cost.” Equally important, China is a rapidly growing market for U.S. investment. (Bernanke, 2006)"

"Northwest Ohio could well benefit from a long-term strategy that linked our interests and assets with China’s rapidly growing economy. Such a strategy, however, must be based on solid information and knowledge of the dynamics of our respective economies and interests. It is in this arena where our colleges and universities could play an important role. The University of Toledo is taking steps to bring such information and knowledge to our region."

"We know, for example, there are at least 58 companies in Toledo doing business in China. We also know there are many more that would like to explore business possibilities in China."

"To further explore a “Toledo/China Economic Development Strategy” and to share information on “Doing Business in China” the UT Office of Global Initiatives and the Northwest Ohio Science and Technology Corridor are co-hosting a symposium and workshop for interested individuals, companies and organizations. The date of the symposium/workshop is April 26-27."

posted by jr to business at 3:56 P.M. EST     (18 Comments)


Comments ...


I'd really like to see what answers were given that represent Toledo. I like Toledo, but even with my optimism I don't see it in the top 10 list.
posted by jshriver at 04:41 P.M. EST on Mon Apr 23, 2007     #



For giggles, some past ranking-related postings at Toledo Talk:

March 17, 2003 - Toledo may not be attractive to 'new economy' - A study was conducted to see what the requirements were to bring the high-spirited, entrepreneurial 24-to-40-year-olds that make up the "new economy" to Michigan. "The Toledo area shares many of the characteristics the younger workers cited as reasons they would not want to relocate to Michigan. The Midwest’s cold weather was cited often as the potential 'deal breaker' when considering a job move."


July 17, 2003 - Toledo doesn't rank well in reading habits - "A study profiled America's 64 largest cities for literacy habits, and it ranked Toledo 54th. Minneapolis is number one, Cincy is 10. In this study, "the Toledo-Lucas County Public Library system was middle-of-the-road." Another study last year had our library system ranked 8th out of 90 libraries."


November 5, 2003 - The dreaded 'brain drain' hammering Toledo - "The figures, released this week, rank metro Toledo - which is Lucas, Wood, and Fulton counties - as 207th out of 276 metro areas across the country. They’re young, single, college-educated, and coveted by leaders across the country for helping revitalize regions - and they’re leaving the Toledo area in droves. Metropolitan Toledo continues to lose twice as many residents in that demographic than it gains, often called "brain drain." "


November 11, 2003 - Toledo library still in the Top-10 - "The Toledo-Lucas County Public Library has kept its place among the top-10 ranked libraries among cities of similar size, marking the fourth consecutive year it has been recognized by the national rating index."


December 9, 2003 - Toledo ranks low in 'sleep' - "A recent survey on the best and worst cities for sleep ranks Toledo 82nd on the top 100 list."


January 21, 2004 - Toledo no longer tops in smoking - "[Toledo] has lost the dubious distinction of having the country's highest percentage of cigarette smokers, according to new federal data. A 2002 survey by the U.S. Centers for Disease control and Prevention found that 20.8 % of Toledo-area residents smoke. That's a big drop from 2000, when the same survey showed that 31.2 % of Toledoans smoked."


March 4, 2004 - Toledo is entrepreneur-friendly - "One important piece of evidence is Entrepreneur magazine's ranking of Toledo as the sixth best in its listing of "best cities for entrepreneurs" among midsized Midwest cities for 2003. Overall, Toledo ranked 40th out of 84 midsized cities in the survey. Toledo did very well, based on a blend of entrepreneurial activity (start-ups over a five-year period), small-business growth, job growth in the last three years, and risk (as judged by failure rates)."


January 21, 2005 - 'Is your city stupid?' - "Once again, one of those men's magazines has produced a goofy study. In the current issue, the mag ranked 101 cities based on the number of bachelor's degrees per capita, the number of universities, SAT scores and more. Toledo is ranked 85. In October, Men's Health ranked the 101 best cities for men to live in. In that ranking, Fort Wayne was 73 and Toledo 65."


February 10, 2005 - Ohio's job losses - "Ohio has now set an all-time record 106 consecutive months when its job growth performance has been below the United States national average. Three of the top twenty poorest cities in the United States are now located in Ohio. Cleveland ranks #1 as the USA's poorest city, while Cincinnati ranks #15, and Toledo ranks #20."


June 7, 2005 - Toledo unwired - "This is a good thing ... Seattle and San Francisco are the most "unwired cities" in America — top spots for computer junkies who send e-mail and surf the Web at restaurants, libraries or public plazas. Also in the top 10: Austin, Texas; Portland, Ore.; Toledo, Ohio; Atlanta; Denver; the Research Triangle area of North Carolina; Minneapolis; and Orange County, Calif."


August 26, 2005 - Top-paying jobs flee Lucas Co, Census reports. 5-year loss: 1,140 positions - "Toledo's home county, Lucas, is the only one of Ohio's major urban counties to lose private-sector professional, scientific, and technical services jobs over the latest five-year period. The five-year period is from 1998-2003."


September 3, 2005 - U.S. poverty rankings - "[T]he Census Bureau released 2004 data about income, poverty, and health insurance coverage. Detroit has the highest poverty rate at 33.6%. Cleveland the former No. 1 fell to No. 12 in the latest rankings. Blade op-ed says Toledo fell from 20th to 40th with a total of 16.5 percent of Toledoans living in poverty last year."


November 13, 2005 - Business-friendly scale - "Ohio fares poorly and Michigan fares well. In the latest rankings in the Small Business Survival Index published by the Small Business & Entrepreneurial Council, in Washington, Ohio was unchanged at 40th among the states and Michigan moved up a notch to fifth from sixth most "business-friendly" state." Local entrepreneurs and business owners say they're not surprised, given high utility costs, high taxes, and lots of other things wrong in Ohio. Still, they say they are expanding, making money, and coping."


January 23, 2006 - Job Postings Per Capita


February 23, 2006 - Metro Toledo ranks near last for job growth - "Fifth from the bottom. That's how Toledo ranked in the latest national study of job growth among the 200 major metropolitan areas. The No. 196 ranking was worse than the previous report more than a year ago by the Milken Institute, a California think tank. Toledo's showing highlights the metro area's poor job creation performance over a number of years compared to cities nationwide and demonstrates the area's weak level of adding high-technology jobs."


June 21, 2006 - Toledo & Ohio Shrink; When Will Our Government? - "After dropping 1.1% last year, Toledo nearly dipped below 300000 people. Toledo shrinks 13th-fastest of U.S. cities, census says."


August 15, 2006 - How Angry is Toledo - "A study conducted by Men's Health magazine has found that Orlando, Fla., ranks No. 1 on a list of the angriest cities in the nation. Toledo comes in at number 59 on the list."


October 27, 2006 - UT Law ties for first among Ohio's nine law schools for 1st time bar takers - "The University of Toledo College of Law tied for first with Cincinnati for first time Ohio bar exam takers with a 93% passage rating. In the state, 85% of first time takers passed."


November 28, 2006 - kudos are in order - "Toledo-Lucas County Public Library Rated 8th Best in Nation by National Survey."


January 25, 2007 - Toledo supports its young people - "The organization, “America’s Promise” just released it’s 100 best communities for young people and Toledo, Ohio made the list. "Toledo is one of the 100 Best Communities for Young People, in part, because of "Building for Success,” the single largest building project in the history of the Toledo."


February 6, 2007 - Men's Health mag ranks Toledo near the bottom - "Our sixth annual ranking of the Best & Worst Cities for Men ... by crunching the numbers in 24 categories, including life-and-death data on cancer, heart disease, and stroke. We also looked at lifestyle issues, such as annual income and daily commute, crime rates and college graduation rates. Lastly, we ran a sweat check, looking at how often, how long, and how intensely men exercise." Toledo ranked 98 out of 100.


February 23, 2007 - 'Toledo 4th in nation in home affordability' - "Only Indianapolis, Youngstown, Detroit, and Buffalo, N.Y., were more affordable among large areas. Eighty-six percent of homes in metro Toledo were within the means of people earning the median income of $58,900, the [NAHB] study said. The median price of a home was $105,000."

posted by jr at 05:32 P.M. EST on Mon Apr 23, 2007     #



I'm guessing that some of the major expansions (like the GM powertrain plant) had a significant impact on our ranking. We've got a lot of colleges and universities, but very low population of college-degreed people. Our housing prices are very affordable, and even our electricity/water/gas is reasonable from a national/international perspective.

But considering that the answers were provided by the politicians, I'd really like to see the response.

posted by MaggieThurber at 05:50 P.M. EST on Mon Apr 23, 2007     #



It seems like most of the economic development is happening outside Toledo, in the suburbs (except for Powertrain). So the award is misleading.
posted by toledojim at 08:31 P.M. EST on Mon Apr 23, 2007     #



I read with interest the story the Blade published on April 8, 2007 on Toledo's bleak dating scene for educated singles and the possible indirect effect it may have on the city's economy.As a single young professional who has recently relocated from Toledo (which ranked at the bottom of Men's Health best places to meet single women) to the DC area (ranked the best place to meet single women) I can attest to this making a measurable difference on the abstract aura of excitement in the area. The DC/Arlington area has this strange collegiate atmosphere to it from the constant revolving door of young professionals that move into the vicinity to work, gain experience, make connections and possibly find romance. As a result, nothing is permanent and there is a sense of endless possibilities with both work and love. The closest experience that I have to this is your first day of college or the beginning of a new semester when everything/everyone is new and anything seems possible. I think this is what the Toledo area is missing that causes young people to seek greener pastures and not the number of bars, lack of bike paths, cultural experiences etc., those are a result of a lively youth population not the cause of one. For many young Toledoans they see, by staying, that their lives won't be measurably different then their parents or grandparents; not always a bad thing but not what many young pros are seeking. How does Toledo change this perception? I'm not really sure. Because of cultural make-up of the area (large quantity of blue collar manufacturing jobs and labor unions) it has a deep resentment to change that is in bedded within the community. http://toledotattler.blogspot.com/
posted by mholdri at 08:32 P.M. EST on Mon Apr 23, 2007     #



Forbes - Toledo 189 out of 190 - Best Places For Business And Careers
Inc. - Toledo 336 out of 393 (-2 from 06) - The Best Cities for Doing Business

http://swampbubbles.com/battle_of_the_best_places_to_do_business_rankings

posted by chrismyers at 09:14 P.M. EST on Mon Apr 23, 2007     #



Toledo 500,000 to 2 million inhabitants? Sounds like Lake Erie West!

Let's face it, regional data was fed to fDi, and this deserves a first place finish. And, as a region, our story is much more powerful overseas, where it is normal to think in regional terms.

Maybe we will land the North American Headquarters of some foreign firms doing business on the North American Continent. With our four International Airports within a one hour's drive of one another, we look pretty attractive.

posted by lew at 09:35 P.M. EST on Mon Apr 23, 2007     #



How in the bejeezus do Inc. and Forbes come to such differing conclusions from the FDI survey?

However, I'm game.

Hola, Bonjour, Pryvet, and Ni Hau, investors!

I work long hours for you only 10 dollars American per hour, OK? No benefits required. Please send contract ASAP, I will sign. University-educated!

This is not really sarcasm, by the way.

posted by jmleong at 05:03 A.M. EST on Tue Apr 24, 2007     #



This is not really sarcasm, by the way.

jmleong are you a programmer by chance? lol

posted by jshriver at 10:33 A.M. EST on Tue Apr 24, 2007     #



Are we sure Toledo wasn't chosen for its charitable contributions in tax abatement and loans? I can think of one company, Convergeys that found out.
posted by ToledoLatina at 11:29 A.M. EST on Tue Apr 24, 2007     #



I think part of this was that Inc. and Forbes don't send out a survey to the political leaders to provide the data. This current one did.

There's a lot of attractiveness to foreign investors in this area - that's true and good for us! But such attractiveness to outsiders is offset by the ability to grow our small businesses that are already here. Many of them would not call Toledo 'business-friendly.'

posted by MaggieThurber at 01:01 P.M. EST on Tue Apr 24, 2007     #



If this is true, it makes you wonder why Toledo isn't attracting more investment. Maybe it's because the mayor is a boob who can't effectively sell the city to potential investors? He can hardly eat out at a local restraunt without starting a fight with the owner.
posted by paddington at 05:41 P.M. EST on Tue Apr 24, 2007     #



"It seems like most of the economic development is happening outside Toledo, in the suburbs (except for Powertrain). So the award is misleading."

The growth in Toledo's suburbs are barely enough to offset the city's losses. There hasn't been any real growth in Toledo's metro area since the 1960's I believe. Toledo's suburbs have performed about average by American standards, as suburbs all over boomed after WWII. But the city of Toledo has been a real laggard dragging down the whole region.

posted by paddington at 05:44 P.M. EST on Tue Apr 24, 2007     #



"Maybe we will land the North American Headquarters of some foreign firms doing business on the North American Continent."

We can be China's Western branch office.

April 23, 2007 Blade commentary by Ben Konop about his trip to Toledo's sister city in China.

"Growth opportunities abound for Lucas County in China. ... Environmental concerns at the factories I visited seemed secondary at best and totally unaccounted for at worst. While this could be tragedy in the making for the Chinese people, it also presents opportunity for our community to help solve a potential environmental catastrophe and, in the process, create jobs and economic growth right here in Lucas County."

"Lucas County is positioned to be a shipping center for Chinese goods throughout America. And our location, coupled with the intermodal transportation network that continues to develop, must be linked to the flood of Chinese goods entering our country."


We know China will soon be selling vehicles to the U.S. market. Maybe Toledo can become home to a Chinese automobile assembly plant. Jeep and Geely, baby. Has a nice ring to it.

From the February 2007 ReUrbanism meeting, I learned that Jim Jackson has business developments in Qinhuangdao, China, or he's planning to have business projects there. Jackson cannot get his steam plant redevelopment project in downtown Toledo going, but he will somehow have a development project in China.

When your back is up against the wall, and you've run out of options, sell your soul to the dark side.

The two key ingredients for Toledo's economic future are:

1. Cozy up to China as much as possible.

2. Exploit imminent domain as much as possible. Steal private land for private development.

With Carty opposing freedom of the press and stealing private business, Toledo is starting to adopt some of China's anti-freedom government policies. Can't wait for Czarty to start outlawing local Web sites and jailing dissidents.

The big rail hub kiboshed across the line in Michigan will probably get built in Lucas County, which means some rural residents will lose their homes or farms to this project. But remember, it's for the good of the People's Republic of Toledo County. As Mr. Spock said: "The needs of the many outweigh the needs of the few."



Need to add three more stars to represent the county commissioners.

I one-hundred percent support a Chinese invasion because large, successful Chinese investments into the Toledo empire will ultimately mean our taxes will be lowered.

posted by jr at 09:30 P.M. EST on Tue Apr 24, 2007     #



Well the nice thing is - if China buys Toledo - folks will surely get their gun control laws, smoking bans and the whole deal.
posted by katie82640 at 09:35 P.M. EST on Tue Apr 24, 2007     #



I can't help but be reminded of the Blade ads talking about China...did they know something ahead of the rest of us?
posted by MaggieThurber at 08:41 A.M. EST on Wed Apr 25, 2007     #



one-hundred percent support a Chinese invasion because large, successful Chinese investments into the Toledo empire will ultimately mean our taxes will be lowered.


I'd even be willing to change the name of the city to Toredo for ease of pronounciation...

posted by billy at 10:44 A.M. EST on Wed Apr 25, 2007     #



jmleong are you a programmer by chance? lol

Yes living in Bangalore!

(That WAS sarcasm.

Nah, no, I'm not a programmer.)

posted by jmleong at 02:50 A.M. EST on Thu Apr 26, 2007     #



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