Category Archives: business attraction

Why is Buffalo Niagara Attractive for FDI?

by Christopher Finn, Research Manager

Global Company Motives for Investing in the U.S.

Global Company Motives for Investing in the U.S.

Incentives are a common tool utilized by states and regions to leverage job creation and investment amount from business attraction projects. For certain companies/industries, incentives are critical to a project’s success; however, in others they play only a supporting role.  In a recent blog post from the International Trade Administration, (ITA),  they state that in regards to companies investing outside their home country via Foreign Direct Investment (FDI), “…financial incentives (including tax or funding incentives) have played a minor role in company location decisions over the last nine years and are decreasingly important.”

If incentives are not driving these FDI projects, what are the primary criteria used during the site selection process? Two of the top three are assets of the Buffalo Niagara region that we use to market Buffalo Niagara to the world – Proximity to Markets and Skilled Workforce Availability.

These two factors, plus the others listed in the report,  drove many of the 75 FDI projects BNE attracted to our region. The educated/skilled workforce and university system pumping out thousands of new workers every year, factored with the ability to reach over 125,000,000 people in a 10 hour drive, makes Buffalo Niagara an ideal location for FDI.

Click here to read the full ITA blog post.

Access U.S. – A Great Resource for Canadian Business Expansion

By Carolyn Powell, Business Development Manager, Buffalo Niagara Enterprise

Every month, BNE releases an e- newsletter, Access U.S., which provides information for Canadian businesses considering a U.S. business expansion. Below are the top three most popular articles published in Access U.S. since June 2012.

1. Collecting Receivables in the U.S. - July 2012

2. Part 2 – The Dos and Don’ts of Crossing the U.S. Border - September 2012

3. “Snowbird” Tax Info: Canadians Filing U.S. Tax Residency – April 2013

If you are interested in receiving our monthly e-newsletter, Access U.S., click here to sign up!

Click here to read more informational articles on cross border business.

New 2013 Buffalo Niagara Economic Guide

The team at BNE looks forward to updating this publication each year. Next to our relocation guide, its one of our most popular tools. For 2013, we expanded the publication and added information about incentives, workforce development programs, r&d expenditures, patents, and more.

Don’t hesitate to contact us if you have feedback or recommendations regarding how we can enhance and improve the information in the economic guide.

2013 Economic Guide - New Features!

Connecting Businesses with Skilled Trade Workers

by Carolyn Powell, Business Development Manager, Buffalo Niagara Enterprise

Canadian manufacturers that consider expanding their operations into the U.S. often inquire about 1) the availability of skilled trade workers, and 2) the affordability of those workers.

The Buffalo Niagara region maintains a strong infrastructure of workforce development initiatives to fill the needs for not only production line workers but also the skilled trades. Collaboration between the private-sector, educational institutions, non-profit initiatives and manufacturing associations are leading these efforts. Read more here about resources, funding and initiatives accelerating the workforce development delivery system in the region.

Workforce Development Highlight – connecting industry to skilled workers

While experienced workers are important, companies want assurance that local colleges and universities are continuing to educate students in the skilled trades to backfill the current aging workforce with new talent. Buffalo Niagara has several state and community colleges providing high quality and low-cost education, training and certificate programs.

For example, in a recent visit to Alfred State’s SUNY College of Technology I received a tour of the campus and the various degree programs offered.  During our tour, Craig Clark, P.E., Dean of the School of Applied Technologies explained that Alfred State provides a project-based learning experience that is the cornerstone of their culture.  Students work on real-world problems; thus they learn how to think, not simply what to think. As a result, Alfred State has a 99% employment and transfer rate.

Students can enroll in both Associate degree programs (2 years) and Bachelor degree programs (4 year) at the school.  Everything from Business Administration, Architecture to Applied Science and Occupational Studies (degree programs).

  • The Applied Sciences programs include: CAD/CAM, Electrical Engineering,  Electromechanical Engineering,  Mechanical Design Engineering, Mechanical Engineering
  • Their Occupational Studies program includes:, Air Conditioning and Heating, Drafting/CAD, Machine Tool, Masonry, Welding

Workforce Affordability – maintaining competitiveness in a global market

It is also important for Canadian companies to understand what they will be expected to pay potential employees in Buffalo Niagara.  According to the Economic Research Institute (ERI), employees with the same job titles in Alfred’s Applied Sciences and Occupations Studies program can be expected to be paid the following salaries:

AlfredChart-03_11_13 (2)

Canadian companies looking to expand to the U.S. can learn more on our website. To view of list of Canadian companies BNE has helped expand to the U.S., view our success stories.

Interview with Brandon Hoffman, VP, Graphic Controls

By Alan Rosenhoch, BNE Business Development Manager

Graphic Controls

Graphic Controls

Headquartered right here in Buffalo, NY, Graphic Controls is a global corporation with manufacturing operations and sales offices in the USA, Canada, Belgium, Germany, France and the UK.  With its Medical Division, Graphic Controls is the leading manufacturer of medical recording chart paper, offering the widest assortment of chart papers for all hospital departments – from cardiology to the blood bank.  They have recently introduced a new line of patient monitoring supplies and an Emergency Medicine product line.  Graphic Controls recently acquired an operation in Germany that specializes in standard and custom filtration products in the laboratory/diagnostic and pharmaceutical space.  They continue to expand that business in Europe and are introducing those products into North America.

Mr. Hoffman has been with Graphic Controls since 2001, overseeing various aspects of the business and as vice president for the last three years. He holds a BS Engineering degree and a MBA from the State University of New York at Buffalo. He also attended the Darden graduate School of Business Administration. Mr. Hoffman actively participates in the regional Medtech organization and in various events at the Buffalo Niagara Medical Campus. His personal time is well spent with his wife and two young daughters.

I had the opportunity to ask Mr. Hoffman a few questions:

Q. You have just announced a major expansion of your medical manufacturing division at your Buffalo headquarters location. Tell me a bit about what this expansion entails.

A. We have added staff, constructed a clean room within our Buffalo manufacturing facility and invested in additional production equipment to dramatically increase capacity for our filter business, which specializes in laboratory and pharmaceutical applications.  Customer demand had caused us to run well over 100% capacity in our German manufacturing facility last year.  Our Buffalo cleanroom provides a remedy for this capacity issue as well as enabling better service for the North American market.

Q. Graphic Controls has locations all around the world; what made Buffalo the ideal place for this significant investment?

A. Graphic Controls has a long tradition in the Buffalo area dating back the early 1900’s when it was located in the Larkin building.   We have made a concerted effort to establish Buffalo as our world-wide headquarters and flagship manufacturing plant because of this long time presence.  Our employees continue to provide us with a competitive advantage and we have a very good mix of new and experienced staff.  Average years of service for our employees is 16 years, and most notably in recent years we have been recognizing employees who have worked here for over 40 years.

Q. When did Graphic Controls enter the medical arena? How has your participation in this industry changed over the years?

A. We are what I like to call a new-old medical company.  Prior to the acquisition of Graphic Controls by Tyco Healthcare in 1998, we had a significant presence in medical devices specializing in disposables/consumables.  The Tyco integration took the medical business out of Buffalo and left behind our industrial division.  A few years after our buy back from Tyco in 2004 led by our CEO, Sam Heleba, we began to reinvent ourselves as a medical company.  The oldest part of the medical business is patient monitoring charts that we are now printing again in our Buffalo facility.  Aside from medical charts we continue to look to re-invent our business in the area of life sciences consumables and disposables.  We have recently launched a line of Emergency Medicine devices and supplies geared towards ambulance services and trauma centers, and of course our filtration line.  We are expanding the Buffalo manufacturing facility to accommodate its introduction into the North American market.

Q. Overall, what do you think are Buffalo Niagara’s greatest strengths and assets as they relate to the Life Sciences/Medical Device industry?

A. In recent years with the development of the downtown medical corridor and the renewed interest in entrepreneurship in Life Sciences the region has become much more exciting.  Our close proximity to the medical campus is a great asset and we look forward to access to new opportunities developing from that area.

Q. The medical sector of your company has experienced some major growth over the past three years; to what factors do you attribute this success?

A. We have grown significantly since our return to the medical market in 2008 and we continually strive to foster an entrepreneurial environment.  As most know, it isn’t easy to grow a business, but our employees and management team continue to learn, adapt and change in our pursuit of growth.  We have also been lucky to be associated with great investors who have shared our vision to grow.   While we have made our fair share of missteps, as every company does, in all we have been able to measure the percent growth of our medical division every year well into the double digits.

Q. Do you export to the Canadian market? If so, how does Buffalo’s location on the US/Canada border affect this international business?

A. Yes, we export to the Canadian market and are also incorporated in Canada.  We seamlessly ship across the border everyday accessing most points in Ontario within one to two business days.  Our proximity to the Canadian border has allowed us to service all of Canada at a very high level and it continues to be one of our best markets.

Q. What is your outlook for the growth of the Life Sciences industry, in Buffalo Niagara over the next 5-10 years?

A. In a period of what we all have come to know as economic uncertainty and add the dynamic nature of healthcare reform in the US we are measured but optimistic.  We have that we can grow our medical business rapidly and we look forward to continued expansion.

“My life works in Buffalo Niagara because as a native Western New Yorker I enjoy creating new business opportunities in my home town.” – Brandon Hoffman

To learn more about the medical device industry in Buffalo Niagara, visit our minisite or sign up to receive our monthly e-newsletter.

Private Sector Investment on the Buffalo Niagara Medical Campus

By Alan Rosenhoch, Business Development Manager

Conventus redering by Kideney Architects

Conventus redering by Kideney Architects

Conventus (Latin for “coming together”) is a brand new seven-story medical building being developed by Ciminelli Real Estate Corporation at the northern gateway of the Buffalo Niagara Medical Campus (BNMC). Designed to be a center for collaborative medicine, it will be anchored by Kaleida Health and UBMD. Ciminelli expects to open the building in the spring of 2015.

I had the opportunity to ask the President and CEO of Ciminelli Real Estate Corporation, Paul F. Ciminelli, a few questions:

Q: You recently began site preparation work on the Conventus project; what does this project represent for the BNMC and the region’s life sciences industry?

A: There are two aspects of this project that represent major milestones in the development of the Medical Campus. First of all, Conventus is the first significant private investment on the campus, which is indicative of our strong commitment to the BNMC and our belief in its vision. Private dollars send a strong message to our community and to other markets that the Campus is a viable initiative and worth the investment.

Secondly, Conventus’ adjacency and physical connections to the new Children’s Hospital and the new UB School of Medicine, is groundbreaking in its collaborative approach to the needs of the patients, physicians, researchers and students. Coupled with its location at the northern gateway to the Campus, Conventus facilitates a seamless connection among all of the major medical-related facilities at the northern end.

Q: How much space will be taken by the two anchor tenants, Kaleida and UBMD, and how much space will remain for future tenants?

A: Kaleida will occupy approximately 85,000 sq. ft. on the 2nd and 3rd floors, which are the floors where connections will be made to Children’s and the Medical School, as well space on the ground floor for their Blood Draw and Pharmacy. UBMD will occupy 60,000 sq. ft. on the 4th floor and a portion of the 5th floor. A major regional bank will occupy a portion of the ground floor as well. Based on the inquiries we have had to date, we expect to have tremendous interest in the remaining square footage, and that full occupancy will be achieved quickly.

Q: What types of tenants are you seeking for the balance of space? For what type of company would you consider Conventus to be ideal space?

A: As with all of our projects, we will identify potential tenants that are synchronous with the existing tenant base and with the overall vision of the Campus. We refer to Conventus as a “center for collaborative medicine” because of the multiple disciplines that will be housed in and facilitated by our physical connections to the Hospital and UB’s School of Medicine. We look forward to accommodating clinical, educational, practical and research components at Conventus, as well as other healthcare-related tenants.

Q: You are targeting LEED Gold Certification for this project; why is sustainable design, building elements and operation so important to Ciminelli?

A: In 2008, Ciminelli made a commitment to pursue LEED certification with all of our projects going forward because of our commitment to minimizing our environmental footprint and to developing high-performing buildings. From an ownership standpoint, it has a definite positive impact on the long-term operating efficiencies of the building. From a tenant’s perspective, LEED certification translates to a healthier, more efficiently run environment in which to work. It’s a win-win.

Q: Conventus is not planned to be a one-shot project for Ciminelli on the BNMC; what else do you have on the drawing board for the near and long-term future?

A: The core of our business is being able to see the big picture; the ability to put pieces of a puzzle together and create synergies within every development project we undertake. This is what our company does best, and why we are committed to supporting the BNMC’s vision. We have purchased additional property at 33 High Street directly across from Conventus and Children’s Hospital and adjacent to UB’s site for the Medical School in anticipation of continued growth. As things continue to evolve on the Campus and we see possibilities for future needs there, we will pursue strategic developments to support those needs.

Q: Plans call for Conventus to connect to the Allen Street NFTA Metro Rail station; how does this fit into your overall plan to connect different parts of the region?

A: Ciminelli is a strong proponent of transit-oriented development, as evidenced by our two current projects under construction: Bethune Lofts (Main Street and Hertel Avenue), and Conventus. Developing along our transit lines facilitates connectivity among vibrant areas of Buffalo Niagara such as the UB South Campus University District, the Hertel Avenue district, the Medical Campus and Canalside. As it stands today, the NFTA Metro Rail station will be connected to the new UB School of Medicine at Allen Street. It should be noted that, while there is a connection from that building to Conventus, its use will be somewhat restricted.

Q: Conventus represents the first significant for-profit private sector-led development on the BNMC; what makes your company so bullish on the future of the campus?

A: Ciminelli has owned property on the Campus for 20 years, so we’ve been a part of it since its early stages. We saw things begin to evolve as the plan was rolled out. We’ve seen similar models succeed in cities of comparable size and demographics to Buffalo, so we knew it could work here, especially with it being so close to our Central Business District and being on a main transit line. All of the components were there; all it needed to take it to the next level was significant private sector investment. We were the first, but we know we won’t be the only ones. Additional private sector support will happen on and around the Campus.

“My life works in Buffalo Niagara because of the tremendous quality of life we have in a relatively low-cost environment, the great educational institutions that supply a talented workforce, and because of the friendliness of its people. I love it here!”

- Paul F. Ciminelli

Comparing Cost of Living Among Metro Areas

by Matthew Hubacher, Research Specialist

Among the million reasons why Buffalo Niagara is “Where Life Works” is its affordable cost-of-living.  Numerous media outlets, including CNN-Money, Forbes Magazine and CNBC, have lauded Buffalo Niagara as a low-cost place to live and do business.  In fact, the cost of living in the region is routinely below the national average.  But what are these data based on and from where do these statistics originate?

The research department at Buffalo Niagara Enterprise is one of hundreds of academic institutions, chambers of commerce and economic research teams that participate in The Council for Community and Economic Research’s (C2ER) Cost of Living Index (COLI).  COLI data are recognized as the most reliable source for comparative consumer costs by the US Census Bureau, US Bureau of Labor Statistics and the President’s Council of Economic Advisors.  It is designed to provide the best possible means to compare cost of living differences among metro areas.

Participating researchers are provided a diverse list of nearly 60 goods and services, which range from doctor’s office visits to fast-food items, to price in their regions on specific dates.  The prices are compiled and transmitted to C2ER, whose researchers calculate the region’s cost of living index scores.

The overall index is comprised of six component indexes – housing, utilities, grocery items, transportation, health care and miscellaneous goods and services – and is the ratio of a metro area’s average price to the average price of the same item nationwide (the nation’s index score is 100.0).  The share of consumer spending on each category, as defined by the US Bureau of Labor Statistics’ 2004 Consumer Expenditure Survey, determines the category’s weight in the Index.  In Q3-2012, cost of living index score for the Buffalo-Niagara Falls MSA was 99.2 (0.8% below the national average).

Businesses that have questions on cost of living differences, or any other detailed comparative analysis needs, are encouraged to contact BNE’s Research Department.

Buffalo Niagara: A Manufacturing Moment?

Tom Kucharski, President & CEO, Buffalo Niagara Enterprise

An April 2012 report published by the Metropolitan Policy Program at Brookings examines a resurgence that some are calling the “manufacturing moment” from the standpoint of its staying power and geography.  Elements of that report, combined with BNE’s experience, reinforce my belief that the commitment of public and private resources in this sector will produce growth opportunities for our region.

As the Brookings report confirms there has been in recent years a re-shoring of manufacturing by U.S. companies, driven in part by growing wage scales in emerging countries.  Mid-western states in particular have seen an increase in machinery and auto manufacturing.  While the advanced manufacturing in our region has been very diversified, we have seen trends in steel and steel processing, packaging and opportunities for high tech manufacturing.

While the mid-west has experienced more of this re-shoring to date, northeastern states and regions have compelling assets and are developing tools that are growing their competitive advantage.  Consider some of these examples in our state and region:

  • Affordable & available real estate – our market has over six million square feet available and an average price per square foot that is $6.55 less than the U.S. average.  We also boast 10 shovel ready certified sites whose benefits are coveted by projects driven by speed to market.
  • With 10.8% of our total employment in the manufacturing sector, we offer a motivated and productive workforce, highly trained in engineering, physical sciences and the construction trades.
  • Buffalo Niagara is cross-border community with seven international ports, two of the largest Foreign Trade Zones in the U.S., an advanced transportation infrastructure, and easy access to major U.S. and Canadian markets.
  • Contrary to what many would think New York State has low taxes on high tech manufacturing.  The state is also home to multiple sites ideal for high-tech and Nano-tech manufacturing, one of them right here in Genesee County.
  • Manufacturing companies who invest in our region can be eligible for a wide array of valuable incentives, one of which can’t be offered by the majority of our competitors – clean, reliable, low-cost hydropower.

Our growing competitive advantages run much deeper and include our strong supply chain, work ethic and manufacturing heritage.  So if this manufacturing moment exists, as we think it does, what are we doing to take advantage of it?

Advanced manufacturing is one of six key strategies in Governor Andrew Cuomo’s billion dollar commitment to Buffalo.  It will be supported by the development of the state-of-the-art Buffalo Niagara Institute for Advanced Manufacturing Competitiveness.  The institute will focus on applied research services and workforce training while providing export assistance and services to develop process excellence.

In our current fiscal BNE anticipates spending in excess of $70,000 on a very targeted advanced manufacturing campaign consisting of advertising & public relations, direct mail, e-communications, events in Canada and the development of new advanced manufacturing mini-site hosted on our website.  Specific companies are being targeted based on their size, geographic location and product.

Our public partners across all eight counties continue to commit significant resources to the development of sites for us to market to our targets.  This is one of the most important contributions the public sector can make to the success of attracting manufacturing opportunities to our region.

Is the moment real and will these efforts be worthwhile?  Only time will tell.  Since our inception BNE has supported 89 advanced manufacturing project wins that have created and retained over 12,000 jobs while investing more than $1.4 billion in our region.  The direct and indirect economic impact from only 12 of these projects that have come to our community since 2010 is $607.9 million.  The potential that exists and the impact of the results have me convinced that manufacturing will be an important part of our future economic success.

BNE Looks Back at 2012

Matthew Hubacher, Research Specialist, Buffalo Niagara Enterprise

As we approach the end of another successful year here at Buffalo Niagara Enterprise, it is important to look back at the year’s activity to take account of what we accomplished in 2012 and forecast where we are headed in 2013.

Taken together, the eight project wins thus far in 2012 have an anticipated investment of over $260,000,000 with nearly 450 new and retained jobs pledged.  The eight wins spanned four of BNE’s target industries (Advanced Manufacturing, Advanced Business Services, Agribusiness, and Logistics/Distribution) and all were international companies (seven from Canada, one from Europe).  You can view all of BNE’s wins, either by year or target industry, at our Project Wins page.

In terms of overall activity in 2012, Buffalo Niagara Enterprise worked with companies in each of our seven target industries: Advanced Business Services, Advanced Manufacturing, Agribusiness, Cleantech, Life Sciences, Logistics/Distribution and Tourism.  We experienced the most activity among Advanced Manufacturing opportunities (42%), followed by those in Advanced Business Services (27%).  Over 40% of new opportunities in 2012 were with companies located outside of the United States.  Given our strategic location as a bi-national region, the majority of international companies BNE works with are Canadian, but our region also attracted interest from companies based in Europe, Asia, and Australia.

We continuously strive to make Buffalo Niagara a better place to live, work, and raise a family.  Looking ahead to 2013, we expect to continue our strong performance within each of the industry sectors we target for business expansion and relocation projects and remain a premier region for foreign direct investment.