Reviews businss opportunities and legal requirements for French and other foreign aerospace suppliers selling to Rolls Royce, Boeing, Gulstream and now AIRBUS in the Southeast U.S.

1. The New Southeast Aerospace
Cluster
1

2. THE NEW
AEROSPACE
CLUSTER IN THE
SOUTHEAST USA
Eliot NormanEliot Norman
Williams MullenWilliams Mullen
www.williamsmullen.comwww.williamsmullen.com
enorman@williamsmullen.comenorman@williamsmullen.com
001/804.420.6000001/804.420.6000
Washington, DC USAWashington, DC USA
John Elink-Schuurman
Managing Director-Europe
Business Attraction
Virginia Economic Development Partnership
Phone: 804-545-5756
Mobile: 804-305-1756
jelink-schuurman@yesvirginia.org
www.yesvirginia.org
2

3. Part I: Introduction
3

4. Des notions essentielles :
exemples des journaux
• Walll Street Journal: Observation d’un
Belge
(Olivier Legrain, CEO , Ion Beam
applications) (proton therapy): « the
entreprenurial spirit—to me, is part of
the DNA of America)
• Le Figaro: Gaz de Schiste (USA)
4

5. 5

6. La Carte
6

7. 7

8. 8

9. 9

10. THE NEW
AEROSPACE
CLUSTER IN THE
SOUTHEAST USA
Part 2: Les NouvellesPart 2: Les Nouvelles
OpportunitésOpportunités
10

11. • Mobile, AL (Airbus)
• Melbourne, FL (Embr)
• Savannah, GA (Gulfstream-General Dynamics)
• Charleston, SC (Boeing)
• Greensboro, NC (Hondajet)
• Durham, NC (GE Aviation)
• Prince George, VA (Rolls-Royce) 11

12. INVESTMENTS
• Gulfstream – Savannah, GA
– Announced in 1966 and has grown since
– By 1982, 2,500 employees
– 2006: $400 million 7-year plan to expand
manufacturing and service facilities (additional
1,100 jobs)
– Research and Development Center – 750
employees
– 2007: additional manufacturing and engineering
buildings
– 2010: $500 million 7-year expansion (additional
1,000 employees)
12

13. INVESTMENTS
• Hondajet – Greensboro, NC
– $60 million/300 jobs for HQ
– $80 million/419 jobs for manufacturing
plant
– Announced February, 2007
– World headquarters and Maintenance
Repair and Overhaul (MRO) and
component parts manufacturing plant
– 500,000 square feet on 80 acres
13

14. INVESTMENTS
• GE Aviation – Durham, NC
– 320 jobs
– Announced in 1993 and has grown since
– 500,000 square feet on 500 acres
– Aircraft engines (GE90 and GEnx)
– Expansion into South Carolina: turbine
blades and airfoils
14

15. The Big 3
• Rolls Royce
• Boeing
• Airbus
15

16. INVESTMENTS
• Rolls-Royce – Prince George, VA
– $500 million/500 jobs
– Announced November, 2007
– 1,100 acre site with “supplier park”
– First factory - $170 million / 150 jobs (180,000 s.f.)
– Manufactures turbine disc components for
Dreamliner (Boeing 787) and Airbus 380
– Second plant to be announced in 2012:
– Third factory: in near future
– Founder: Commonwealth Center for Advanced
Manufacturing (CCAM)
16

17. South Carolina
17

18. INVESTMENTS
• Boeing – Charleston, SC
– $750 million/3,800 jobs (some expect
greater than 6,000 jobs by 2016)
– Announced October, 2009
– 787 Dreamliner final assembly and
delivery line: deliveries began April
2012. now manufacturing interior
components
– 1.2 million square foot facility 18

19. INVESTMENTS
• Airbus - Mobile, AL
– $600 million/1,000 jobs
– Announced July, 2012
– A320 family jetliner final assembly line
– Only site in Western Hemisphere to
assemble Airbus aircraft
– Airbus and parent EADS North
American Headquarters are in Northern
Virginia
19

20. •
•Alabama
•Welcome, Airbus!
•The future home of Airbus’ U.S. A320 Family final assembly line is strategically positioned to benefit from water, road, rail and air links –
facilitating the company’s first-ever production of jetliners on American soil.
•This production facility will comprise 53 acres of buildings, aprons and roadways contained within a 116 acre site – with the option for
future expansion. The location at Mobile, Alabama’s Brookley Aeroplex places it in the middle of the Gulf Coast aerospace cluster, between
Mississippi and the Florida Panhandle.
•Being situated on Mobile Bay adjacent to the Port of Mobile will enable Airbus to deliver fully-equipped aircraft sections from the
European continent to Brookley Aeroplex via standard freight container ships.
•Some U.S.-origin parts for jetliners built at Brookley Aeroplex will be supplied directly to the facility using the Class 1 network of
railroads and interstate road system that serve the region.
•Flight testing and customer delivery of A320 Family aircraft from the U.S. final assembly line will be made at Mobile Downtown Airport,
located within the Brookley Aeroplex, which has two existing runways with lengths of 9,600 ft. and 7,800 ft.
•Airbus’ Alabama Location •Airbus Assembly Line View
•Location: Mobile, Alabama
•Announced: July 2, 2012
•Production Start: 2015
•Products: A319, A320, and A321
•aircraft
•Investment: $600 million
•Job Creation: 1,000 jobs within the
•production facility
•“The time is right for Airbus to expand
in America. Mobile is now becoming
part of Airbus’ global production
network, joining our successful and
growing assembly lines in Hamburg,
Toulouse and Tianjin.”
•- Airbus President & CEO Fabrice Bregier
• Economic Development Partnership of
Alabama www.edpa.org

21. THE NEW
AEROSPACE
CLUSTER IN THE
SOUTHEAST USA
Part 3: Les OpportunitésPart 3: Les Opportunités
SupplémentairesSupplémentaires
• Government Business
• HQ for U.S. Operations
• Space Sector
• Using Southeast as
Manufacturing
Center for Worldwide
Exports 21

22. Its not just about Commercial
Business
• Department of Defense Dollars and Military
• Orientation of Boeing, EADS, Government sales
• Virginia $56+ Billion #1 among 50 States, 5,000 Defense
Contractors in Virginia
– Defense Contractors HQ Northern Virginia:
General Dynamics, Northrup Grumman, Boeing
SAIC, Booz Allen, CACI, CSC, Raytheon, Thales,etc.
• So Locate where the decisions are made
• South Carolina $3 Billion
• Alabama $10 Billion Alabama : Huntsville
Aerospace/Defense Community Huntsville Marshall Space Flight
Center
• Consider State Government Business (50 Customers)
22

23. Headquarters HQ
• Solution: la banlieue virginienne de
Washington DC
23

24. HQ: Fairfax County (Va)
Location
• Prime US east coast
location.
• Washington, D.C. metro
area
• 60% of the U.S.
population within one to
two-hour flight of Fairfax
County:
• Washington-Baltimore-
Northern Virginia area is
4th largest US market
• Immediate ACCESS to
U.S. Government and
Dept. of Defense
• (Population 8.7 million)
24

25. ;
25

26. Foreign-owned Firms (395)
26

27. European Companies
Sources: Fairfax County Economic Development Authority, Dun & Bradstreet
27

28. .. of which are Aerospace Firms
28

29. SPACE Business
• Strong in the Southeast
29

30. Case Example: Huntsville
Alabama
• Marshall Space Flight Center
– Responsable for launch vehicles, propulsion
systems, space station programs
– Heritage: Werner Von Braun and Redstone
Arsenal (U.S. Army): Saturn V Rocket, Apollo
4, rocket boosters for Space Shuttles
– 400 aerospace/defense companies
– Boeing, Lockheed Martin, SAIC, Northrup
Grumman, Raytheon, Teledyne Brown
30

31. Case Example: Space in
Virginia and NASA
• Space launches from NASA Wallops Flight Facility –
Mid-Atlantic Regional Spaceport (MARS)
• $145 investment in launch pad by Virginia
Government
• Orbital: 10 Missions with Antares Rockets to
International Space Station Begin April 2013
• Space systems integration expertise at
NASA Langley Research Center
• Orbital Sciences Corporation manufactures
satellites near Dulles Airport, Virginia
31

32. Aerospace Exports from the United States:
Another Reason to Manufacture “ dans la Zone
Dollar”?
• A growth opportunity
• Comment y participer?
• Size of U.S. Aerospace Exports Market: $85
Billion
• 72% of all civil aircraft and component
production: exported from the USA
• 42% of all U.S. aerospace production is exported
• Positive Trade Balance: $44 Billion for U.S.
Aerospace Industry
• Southeast mirrors national figures
32

33. Aerospace Exports from U.S.
• Alabama:
•
ALABAMA
33

34. Southeast: Center for Exports
• Supply Chain Logistics
• Volatility of Currency Exchange Rates
– Dollars against the Euro
• Contracts: in Dollars
• Lower Production Costs than EU
• Government Incentives favoring
Exports
– Foreign Trade Zones (FTZ)
– Export-Import Bank www.exim.gov 34

35. IC DISC Structure
Summary of Benefits
1. IC DISC can be paid commissions
• Statutory formula – not required to be Arms
Length
• Greater of - 4% of gross export sales from the
USA, or 50% of taxable income on those sales
2. Can get Rate Arbitrage
• Commission deduction – up to 40% benefit (Fed &
States)
• Payment from IC DISC to Qualified Foreign Co –
likely zero Withholding Tax.
• Replaces dividends from fully taxed income of
ABC Aerospace, Inc. (USA) with deductible
commissions followed by Dividend from IC-DISC
3. IC DISC may also be used for export finance
• May receive factoring fees of 2-3%
• Additional Commission $3M for $100M export
sales, resulting in additional $1.2M tax savings
Issues
1. Need to structure properly to get rate benefit
ABC Aerospace SA
(Toulouse)
ABC Aerospace USA
Inc. (South Carolina)
(deducts Commissions)
IC DISC (ABC Exports, Inc.
Non-taxable
(South Carolina)
Commissions
Dividends
Bottom Line: Reduce U.S. Taxes on Exports by 35% to 40%.

36. IC DISC Structure – Illustrative Example
Summary of Calculation
1. IC DISC calculates commissions
• Determines Export Sales and related COGS
• Assumed 25% Gross profit here
• Allocates and Apportions SG&A
• Assumed 10% SG&A on export sales
2. IC DISC receives commissions
• 50% of taxable income on export sales
3. IC-DISC may also receive factoring Income
4. IC-DISC is not taxed on its profits
5. IC DISC pays dividend to foreign owner
• Payment from IC DISC to Qualified Foreign Co –
likely five percent or zero Withholding Tax.
Issues
1. Maximization of benefits needs to be calculated correctly
IC-DISC
12/31/2012
TAX IMPACT OF DISC
No detail considered - 25% Gross Profit
Sales 100,000,000
COGS (75,000,000)
Gross profit 25,000,000
S.G.& A. * (10,000,000)
Net income 15,000,000
Commission calculation:
4% of sales 1 4,000,000
50% of profits 2 7,500,000
Commission (greater of 1 or 2) 7,500,000
= Taxable income of IC-DISC
Tax benefit C-Corp 40.0% 3,000,000
Dividend withholding tax ** 5.0% (375,000)
Tax savings Fed & states 2,625,000
(Based on 0% Dividend W/H Rate)
* SG&A on export sales generally less as exclusions apply
Assumed overall net profit achievable on exports 15%.
** Based on 5% withholding Tax
For Illustration Purposes only

37. • IC DISC provisions have been in US tax code since 1971
• IC DISC is nontaxable and can be owned by a non-US company
• If IC DISC owner is owned by a shareholder who has a treaty with the USA that
was ratified after 1984 the tax treaty would control the taxation of the dividend paid
from the IC DISC to its parent – last in time rule
• Under certain circumstances the US / Denmark treaty the withholding tax rate is
zero
How an IC-DISC works:
• IC DISC ABC Exports, Inc. is formed as a sister company to ABC Aerospace
USA , Inc.
• ABC Aerospace USA, Inc. pays IC-DISC ABC Exports, Inc. a commissionon on
exports
• ABC Aerospaced USA , Inc. deducts commission from ordinary income taxed at
35 percent federal tax (possibly it is also deductible for state tax purposes)
• IC-DISC ABC Exports, Inc. pays no tax on the commissions on exports
• IC DISC can pay a dividend to ABC Aerospace SA, Toulouse, France, effectively
repatriating 50% of the profits on Exports to France
• Result is 35 – 40% percent tax savings on commissions and substantial subsidy
to finance exports or other operations of ABC Aerospace USA, Inc. in the United
States.
Summary of IC DISC “Incitations Fiscales”

38. Conclusion : Les Opportunites
dans le Sud-Est des USA
1. Boeing, Embraer, Rolls Royce, Airbus, General
Dynamics, GE/Honda, GE, etc.
2. Defense Department Business & 50 States
3. Establish an HQ for commercial and government
business near Washington D.C.
4. Worldwide Manufacturing Center for Exports
« avec les incitations fiscales du gouvernement
federal »
5. Space and Aerospace
6. Multiple Customer Market:
38

39. PART 4: WHY THE SOUTHEAST?
Answer: The 50 States:
are not all the same.
No Accident: New Aerospace
Cluster Is in the Southeast
39

40. WHY THE SOUTHEAST?
• Quality of Life
– low crime rate
– availability/quality of
health care
– cost of living
– recreational opportunities
– cultural opportunities
– quality of education (K-12 & universities)
– housing opportunities and costs 40

41. THE NEW
AEROSPACE
CLUSTER IN THE
SOUTHEAST USA
Part 4: Pourquoi LePart 4: Pourquoi Le
Southeast?Southeast?
John-Elink SchuurmanJohn-Elink Schuurman
Directeur,Directeur,
Virginia Economic DevelopmentVirginia Economic Development
PartnershipPartnership
41

42. WHY THE SOUTHEAST?
Top states for business(Virginia)
Forbes.com CNBC Pollina Corporate Real Estate, Inc.
#2 Best States for Business #3 Top States for Business #2 Most Business Friendly State
Forbes.com
•Business costs
•Labor Supply
•Regulatory Environment
•Economic Climate
•Growth Prospects
•Quality of Life
CNBC
•Cost of Doing Business
•Workforce
•Quality of Life
•Economy
•Transportation & Infrastructure
•Technology & Innovation
•Education
•Business Friendliness
Pollina
•19 business climate categories including
taxes, human resources, right-to-work
legislation, energy costs, infrastructure
spending, worker compensation
legislation, and jobs lost or gained
•13 state government-controlled factors
such as financial incentive programs and
state economic development department
evaluations
42

43. 43
WHY THE
SOUTHEAST?

44. WHY THE SOUTHEAST?
Resources:
Transportation
Sites
Infrastructure
44

45. WHY THE SOUTHEAST?
• Sites
– availability of sites, including airport
sites
– need large sites
– under control
– engineered, etc.
– all utilities
– rail access, etc.
45

46. WHY THE SOUTHEAST?
• Lower operating costs
– electricity costs 5.9
cents per KW Hour (SC)
6.15 cents per KW Hour (VA)
California (9.2 cents) New York (12.49 cents)
– lower taxes
– land costs (often donated)
– lower workers’ compensation rates
– lower unemployment insurance rates 46

47. Why the Southeast
• Transportation assets: Southeast may be
#1in USA
– Ports: Norfolk, Charleston, Mobile,
Savannah : deep water, supply chain
advantages. Panamax at Norfolk
– Airports:
• VA: 9 commercial, 57 general aviation, 47 FAA repair
facilities, MRO firms employ 1400 persons
• Dulles International: 34% lower costs for air cargo
than JFK in NY, next day service to Southeast
• Alabama: airports important for Airbus and MRO:
(Mobile 6,000 ft and 7,000 ft runways)
– Roads I-55, I-95, I-85 I-77 (multiple interstates)
– Rail (Norfolk Southern and CSX) 47

48. A look at the Map
48
SAME DAY DELIVERIES THROUGHOUT
THE SOUTHEAST

49. WHY THE
SOUTHEAST?
Government = pro-
business
Yes, there are variations among theYes, there are variations among the
states in terms ofstates in terms of
• regulation of businessregulation of business
• encouraging businessencouraging business
49

50. WHY THE SOUTHEAST?
• Pro-business regulatory environment
– taxation
– environmental
– OSHA
– government “attitude” is friendly toward
manufacturing
– Legal issues (to discuss later)
50

51. WHY THE SOUTHEAST?
• Right to work States
– important consideration
– Union penetration 2% to 4%
– all Southeastern US states have right to
work laws
51

52. WHY THE SOUTHEAST?
• Workforce
– skilled trades
– training programs
– community colleges
– availability of workers
52

53. WHY THE SOUTHEAST?
• Wages plus Qualite de Vie
– Makes
Southeast
competitive
53

54. Workforce Advantages :
Example of South Carolina
• Right to work state
• Rate of unionization in manufacturing: 1.6%: 2nd
lowest in USA
• Low cost business-friendly climate
• 180 related aerospace companies,
– 20,000 workers
• South Carolina a été classé No.1 à l’échelon national pour
sa part de main-d’œuvre employée par des entreprises
étrangères. En 2009, les investissements étrangers
représentaient 19% du capital d’investissement et 13% des
emplois totaux créés.
54

55. Workforce Advantages:
Example of Virginia
• Right to Work State
• 8,900 people in Virginia make aerospace
products
• 4,000 people in Virginia make composite
products
• 5,300 people in Virginia work in machine
shops
• TOTAL AEROSPACE Workforce: 29,200 at
230 firms 55

56. WHY THE SOUTHEAST?
• Large Number of Graduates from
University Engineering Programs
• NASA (provides a highly qualified
aerospace engineering pool)
– NASA Langley (VA)
– NASA Stennis (AL)
– NASA Melbourne (FL) 56

57. Part Five: What
Methodology and
Analysis Should
Apply to a Decision
to Locate within the
Southeast Aerospace
Cluster ?
Key Factors:Key Factors:
Long-term not short-term;Long-term not short-term;
Can you be competitive?Can you be competitive?
Innovation and R&D;Innovation and R&D;
Avoid dependence on 1 customer;Avoid dependence on 1 customer;
Multiple Markets and Customers:Multiple Markets and Customers:
Government &, Commercial;Government &, Commercial;
Incentives and Long-Term BusinessIncentives and Long-Term Business
CostsCosts 57

58. VIRGINIA’S COMPETITIVE COST OF DOING BUSINESS
USE THIS CHART FOR OTHER STATES: ALABAMA,
SC, NC, GEORGIA
Virginia
Right-to-Work Yes
6.00%
Single Sales Factor Apportionment Yes
Sales and Use Tax 5.00%
Average Workers’ Compensation Insurance for Manufacturers
(VA 44% lower than National Avg., 4th
lowest in Nation)
(Loss cost portion for code 4484—companies engaged in composites and related
manufacturing is $1.65)
$2.09
Unemployment Insurance Tax Per Employee (VA 32% lower than National
Avg., 3rd
lowest in Nation)
$155
Average Industrial Electric Rate (cents per kilowatt hour--8% lower than national
average)
6.15
Average Price of Natural Gas Delivered to Industrial Customers
(dollars per thousand cubic feet)
6.68
State Corporate Income Tax
58

59. VIRGINIA’S AEROSPACE STRENGTHS : COMPARE
WITH OTHER STATES USING SAME CRITERIA: SOUTH
CAROLINA, ALABAMA, NC, GEORGIA, ETC.
Military
R&D
Space
Airports
MFG
59

60. INVESTMENTS
• Rolls-Royce – Prince George, VA
– $500 million/500 jobs
– Announced November, 2007
– 1,100 acre site
– First factory- $170 million / 150 jobs (180,000 s.f.)
– Manufactures discs for Dreamliner (Boeing 787);
A380.
– Second factory to be announced soon:
– Founder: Commonwealth Center for Advanced
Manufacturing (CCAM)
60
Clusters and Mini-Clusters

61. South Carolina Mini Clusters
• Aerospace Manufacturing
• More than Boeing and its direct suppliers
• 2009 GE aviation: turbine airfoils &
blades
• BAE: electronics engineering
• GKN: all composite fuselage for HondaJet light
business jet . (HondaJet is in North Carolina)
• Honeywell International
• Message: diversification of opportunities
61

62. 62

63. Innovation Decision
Factors
R&DR&D
University Research CentersUniversity Research Centers
Government Research CentersGovernment Research Centers
Consortium: Business & Universities forConsortium: Business & Universities for
Advanced ManufacturingAdvanced Manufacturing
63

64. VIRGINIA’S R&D ASSETS
Defense Advanced Research
Projects Agency—directs and
conducts military research
NASA conducts aerospace
research at its Langley Research
Center and Wallops Flight
Facility
National Institute for Aerospace
—conducts research and awards
advanced degrees in aerospace
engineering through a partnership
with nine universities: Airbus
contracts with the Institute
Commonwealth Center for
Aerospace Propulsion Systems
—a joint UVA-Virginia Tech—
Rolls-Royce research effort
Virginia Modeling and
Simulation Center—applies
simulation techniques to solve
problems and provide training for
industry, military and
governments
National Center for Hypersonic
Combined Cycle Propulsion—
advances understanding of critical
mode transitions and
supersonic/hypervelocity flow
regimes of combined cycle
propulsion
The Naval Surface Warfare
Center Dahlgren Division—the
premier research and
development center for advanced
weapons system integration
64

65. R&D Alabama and Virginia
• Huntsville Cummings Research Park: 2nd
largest R&D Technology Park in USA
• National Institute of Aerospace (Virginia):
has R&D contract with AIRBUS
• Center for Aerospace Propulsion Systems:
Univ. Of Virginia, Va Tech & Rolls Royce
• NASA Research: Langley Research
Center, Wallops Flight Facility, (Boron
nitrate nanotubes, etc)
65

66. Best-in-class manufacturers & Virginia’s flagship
universities
Delivering “production-ready” manufacturing solutions while combining
the speed & ROI expectations of business with the intellectual rigor and
innovation of universities.
CCAM (Virginia)
66

67. • A global Center of Excellence in
advanced manufacturing research
– Manufacturing Systems
– Surface Engineering
• Focus on translation research
– Accelerate new technologies into
commercialization
– Reduce cost and improve quality
– Complement with workforce training
efforts
• CCAM growth in 5-10 years to:
– 10 year business plan & financial model
complete
– ~60 Employees (49 PhD Researchers)
– 35 graduate research assistants resident
at CCAM
– 35 undergraduate interns resident at
CCAM
– More than 30 Industry Members
– $15-20 Million annual research budget
Aerospace
Energy
Shipbuilding
Transportation
Electronics
Automotive
Defense
Vision
CCAM
67

68. AEROSPACE IN VIRGINIA: USE THIS TYPE OF
CHART FOR OTHER STATES: ALABAMA, SC, NC,
GEORGIA
68

69. Incentives
(Les Incitations
Fiscales)
Are they the whole story?Are they the whole story?
69

70. Incentives
• Incentives: Different types
– tax credits
– cash grants / closing funds
– payroll tax rebates
– donation of land
– special legislation performance grants
(Aerospace)
– job training funds
– Enterprise Zones
– collaboration with universities 70

71. COMPARABLE PROJECTS
Project Name Why Virginia Won the Deal
Rolls-Royce Crosspointe
($501.4 million/642 jobs)
•1,000+ acre, publically-owned site zoned industrial
•Proximity to U.S. headquarters, transportation, and deep labor base
•Creativity in solving higher education & workforce development needs
•Performance grants to encourage aerospace cluster development
Canon
($623.5 million/1,032 jobs)
•Long-term relationship with the locality
•Creation of a workforce development plan heavily influenced by the
company’s needs
RTI International Metals
($100.0 million/150 jobs)
•Publically-owned, partially constructed building with expansion potential
•Ample labor force in a non-union environment
•Financial solution lowering upfront costs
Orbital
($45.0 million/125 jobs)
•Long-term relationship with the Mid-Atlantic Regional Spaceport (MARS)
•Wallops Island location allowed for a shared political support between
Virginia and Maryland
•Structured bond response
Merck
($250.0 million/70 jobs)
•Demonstrated productivity of existing workforce
•Company desire to diversify asset locations
•Virginia’s positive regulatory environment and strong relationship with
local government
71

72. Why is a State a Top state for business?
Incentives are only one consideration.
Forbes.com CNBC Pollina Corporate Real Estate, Inc.
#2 Best States for Business #3 Top States for Business #2 Most Business Friendly State
Forbes.com
•Business costs
•Labor Supply
•Regulatory Environment
•Economic Climate
•Growth Prospects
•Quality of Life
CNBC
•Cost of Doing Business
•Workforce
•Quality of Life
•Economy
•Transportation & Infrastructure
•Technology & Innovation
•Education
•Business Friendliness
Pollina
•19 business climate categories including
taxes, human resources, right-to-work
legislation, energy costs, infrastructure
spending, worker compensation
legislation, and jobs lost or gained
•13 state government-controlled factors
such as financial incentive programs and
state economic development department
evaluations
72

73. Part 6: What
Preparation and
Assistance is
Required if your
company decides to
Locate in the
Southeast?
73

74. Your Economic Development
Team
• Can assist with preparation of business plans, analysis,
using multidisciplinary experts: site selection
consultants/engineers, accountants, investment bankers,
• Choose advisors who have played key roles in major
economic development projects
• Negotiate packages of incentives for foreign multinationals
– Contract formalities
– Le diable se trouve dans les details, les garanties de nouveaux
emplois , etc., les “Performance-Based Grants”
• Evaluate competitive offers from different states, regions
and clusters
• Can assist with finding financing from Private Equity,
Commercial Lenders, or advising on M&A as strategy for
entry into the U.S. market 74

75. Your Legal Team:
Services Essentielles
• Government relations, federal, state, local
• Commercial supply contracts, subcontracts
• Government supply contracts, subcontracts
• Visas/Immigration
• Real estate, land use, environmental permits
• Corporate and tax law,
• M&A, raising capital from private equity, debt/mezzazine
financing
• Advice on imports/exports, including IC Disc for exports
• Export Controls compliance , including consultants & legal
• Supply chain logistics: international trade issues ( ALENA
ou NAFTA options)
• Labor, employment, benefits
• Intellectual Property 75

76. Conclusion
Lets look again at The Maps
76

77. Conclusion
• Southeast cluster can be more than
simply another local market
• It can be your center for innovation,
R&D, networking within the cluster and
your base for worldwide exports—
subsidized by U.S. government (IC
DISC)
• With the right team to plan your start-up
and guide your business expansion,
you can participate and compete in the
dollar zone 77

78. 78
Thank You
Eliot Norman, Esq.
enorman@williamsmullen.com
www.williamsmullen.com
001/804.420.6000
Washington, DC USA

79. 79
Questions?Questions?
Eliot Norman, Esq.
enorman@williamsmullen.com
Williams Mullen
1666 K Street NW Suite 1200
Washington DC 20006
Direct Dial: 804.420.6000
www.williamsmullen.com
•John Elink-Schuurman
•Managing Director-Europe
•Business Attraction
•Virginia Economic Development Partnership
•Phone: 804-545-5756
•Mobile: 804-305-1756
•jelink-schuurman@yesvirginia.org
•www.yesvirginia.org