Portland's global business footprint
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Portland ranked 25th among the best U.S. cities for foreign companies to do business per a new analysis by the business news outlets the Financial Times and Nikkei.
Why it matters: Foreign investment — whether buying a local company or setting up something new — can create jobs and increase trade, putting money into the local economy and expanding the local tax base.
What they're saying: "Foreign direct investment has an outsized impact on our regional economy," Nick Triska, a business development manager with Greater Portland, tells Axios.
- That's because Portland's biggest industry clusters are computer electronics and athletic and outdoor gear.
- "If we drill into both of those supply chains, we will see a massive amount of foreign direct investment supplying those industries," Triska says.
Context: Oregon recently awarded $240 million to 15 companies — some foreign-owned — to expand semiconductor operations in the state.
- While that comes from local tax money, Triska says it may trigger an "entirely separate surge" of international investment to support chip-related research and manufacturing here.
By the numbers: Portland ranked high on the FT-Nikkei analysis because of its strength in categories measuring workforce talent and infrastructure supporting international businesses, including multilingual schools.
- Seattle ranked 10th in the index — outscoring Portland on diversity and investment trends.
- Japan is the single largest source of foreign direct investment in Oregon.
Of note: The FT-Nikkei ranking changed its methodology this year "to reflect investor preferences" and cautions that "this year's results cannot be directly compared" to last year's.
- Still, Portland dropped nine points this year.
Yes but: While the FT-Nikkei list focuses on attracting foreign investment to Portland, exports are "probably the most critical part" of international business here and "much larger than you would expect" for a state with a relatively small population, Derrick Olsen, president of WorldOregon, tells Axios.
- Oregon's exports have risen steadily over the past decade, driven by exporting electronic components to China.
- Per a U.S. Commercial Service analysis of states by the value of their exports per capita, Oregon ranked No. 3 nationally last year — though far behind the top two — oil producers Texas and Louisiana.
Zoom in: "If our local economy is hammering down, if you can go abroad that gives you a much stronger base as a local business," Russ Monk — who chairs the Oregon District Export Council and is co-founder of High Impact Technology — told Axios.
- His Tigard-based company designs and sells chemical coatings and other products to protect soldiers and critical infrastructure against fire and explosives.
- The company sells domestically and exports to a dozen countries, which keeps local jobs stable, he says.
Zoom out: In the FT-Nikkei ranking, Houston topped the chart and cities in Texas — which has what Monk calls a "juggernaut export development budget" — dominated the top 10 spots, winning half.
The bottom line: Per federal government data, foreign investment accounts for more than 70,000 jobs in Oregon