< PreviousTop Cities 1 Suzhou Metro Area, China 2 Shanghai Metro Area, China 3 Chengdu, China 4 Eastern Seabord Region, Thailand 5 Mumbai Metro Area, India 5 Singapore, SingaporeCompany Metro Area Country Inv. US $Million JobsLotte Chemical Titan Nusantara, Pt Jakarta - Jabodetabek Indonesia 4,000 Air Products And Chemicals, Inc. Yulin China 3,500 Zhejiang Hengyi Group Co., Ltd. Pulau Muara Besar Brunei 3,500 Shandong Jinling Group Co., Ltd. Huai'an China 2,954 3,000Xianda Seawater Resources Development Co. Ltd. Tianjin China 2,500 Selected Corporate Facilities Investments, 2015-2017CHEMICALS & PLASTICSASIA PACIFIC Two leading chemicals and plastics countries were united in July 2018 by the signing in Berlin of an MOU to explore the possibility of a new $10-billion integrated site from BASF in the Chinese province of Guangdong. Other BASF Verbund (“interconnected” or “collaborative”) sites include Ludwigshafen, Germany; Antwerp, Belgium; Freeport, Texas; Geismar, Louisiana; Kuantan, Malaysia; and Nanjing, China.38 2018 W O R L D ’ S M O S T C O M P E T I T I V E C I T I E SSHANGHAICHINAPHOTO: GETTY IMAGESSECTOR LEADER IN:hanghai is hinas commercial epicentera magnet for a key logistical hub and the ideal entry point into the world’s second largest economy. e city in 2017 achieved record-breaking GDP growth — 6.9 percent year-on-year — in a $471-billion economy only slightly smaller than Belgium's. e booming services sector accounts for more than two-thirds of total GDP, and is set to drive future growth.FDI in Shanghai in 2017 amounted to $17 billion, or 13 percent of China’s total. While much manufacturing is moving to neighboring cities such as Suzhou, Tesla in summer 2018 announced its fi rst manufacturing facility in Shanghai. By 2020, Gigafactory 3 is expected to total $5 billion in investment and aims to produce 500,000 electric vehicles annually for the China market. Foreign fi rms have benefi ted greatly from the Shanghai government’s drive to establish the city as both a headquarters and R&D center by off ering incentives such as tax breaks, offi ce space discounts, and streamlined customs clearance for companies. As of 2017, Shanghai is the location of choice for 625 regional corporate headquarters and 426 R&D centers for multinationals. Shanghai is the undisputed fi nancial capital of China. By the end of 2016, Shanghai had 1,473 fi nancial institutions, 242 of which were foreign invested. Many of them have established offi ces in Lujiazui Finance and Trade Zone, which is set to play an even larger role in the nation’s economic growth following the central government’s April 2018 announcement to further open China’s fi nancial markets to foreign investment. e Shanghai Pilot Free Trade Zone, which launched in 2013, by 2016 accounted for 25 percent of Shanghai’s GDP. e government is planning a free-trade port that seeks to rival those of Hong Kong and Singapore, will be integrated into the existing Shanghai Pilot FTZ, and will capitalize on the new Nationwide Customs Integration System, which foreign fi rms note has already drastically reduced processing times.While the city’s average annual salary is slightly lower than Beijing’s ($22,363 compared to $24,628), the wealth of opportunities make the city an ideal location for career advancement. Shanghai’s large number of foreign fi rms also attract droves of talent, and the government’s new visa policy for foreign workers, which took eff ect in April 2017, intends to facilitate this trend. e Shanghai government has plans to quadruple the number of expats living in Shanghai to 800,000 by 2035, a refl ection of its ambition to become a truly international city. Herminio AndresTractus Asia Ltd31.2222° N121.4481° Eelev. 13ft.CSTUTC+83rd1st2nd5th5th 2018 W O R L D ’ S M O S T C O M P E T I T I V E C I T I E S 39NORTHAMERICACHEMICALS & PLASTICSTop Cities 1 Chicago-Naperville-Elgin, IL-IN-WI, USA 2 Houston-The Woodlands-Sugar Land, TX, USA 3 Detroit-Warren-Dearborn, MI, USA 4 Philadelphia-Camden-Wilmington, PA-NJ-DE-MD, USA 5 Baton Rouge, LA, USACompany Metro Area Country Inv. US $Million JobsG2 LLNG Lake Charles, LA United States 23,000 700Tellurian Investments Inc. Lake Charles, LA United States 11,843 551Lake Charles LNG/BG Lake Charles, LA United States 10,000 250Formosa Petrochemical Corp. New Orleans-Metairie, LA United States 9,400 1,200SCT&E Lake Charles, LA United States 9,250 200Selected Corporate Facilities Investments, 2015-2017“Since 2010, more than $185 billion in new chemical investment has been announced … A second wave of investment is expected through the early 2020s as more global companies make the U.S. a destination for chemica l manufacturing … the chemical industry accounted for a full 48 percent of all manufacturing construction spending in 2016, outpacing even transportation and healthcare.” — Cal Dooley, President and CEO, American Chemistry Council, 2017 Elements of the Business of Chemistry report40 2018 W O R L D ’ S M O S T C O M P E T I T I V E C I T I E SLATIN AMERICA & CARIBBEANCHEMICALS & PLASTICSTop Cities 1 Campinas Metro Area, Brazil 2 Monterrey Metro Area, Mexico 3 Bogotá Metro Area, Colombia 4 São Paulo Metro Area, Brazil 4 Lima Metro Area, PeruCompany Metro Area Country Inv. US $Million JobsNova Chemicals Corp. Lacombe County Brazil 1,000 Enirgi Group Corp. Departamento de Los Andes Argentina 720 Synthos Porto Alegre Brazil 640 Michelin Queretaro Mexico 510 Goodyear Tire & Rubber Co. San Luis Potosi Mexico 500 Selected Corporate Facilities Investments, 2015-2017Led by giants such as Odebrecht’s Braskem, Brazil’s chemical industry has annual net sales from domestic production of US$113.5B and is the nation’s No. 3 industrial sector, representing 10% of industrial GDP and supporting 400,000 direct jobs and 2 million jobs in the chemicals value chain. Source: Global Business Reports and Abiquim, Brazil’s chemical industry trade association 2018 W O R L D ’ S M O S T C O M P E T I T I V E C I T I E S 41CHEMICALS & PLASTICSAFRICA & MIDDLE EASTTop Cities 1 Dubai-Sharjah-Ajman Metro Area, UAE 2 Abu Dhabi, UAE 3 Dammam Metro Area, Saudi Arabia 3 Cairo Metro Area, Egypt 5 Casablanca Metro Area, Morocco 5 Suez, Egypt 5 Manama, Bahrain 5 Sanandaj, IranCompanyMetro AreaCountryInv. US $MillionJobsPan-Asia Pet Resin (Guangzhou) Co. Jizan Saudi Arabia 3,800 Brass Fertilizer Co. Ltd. / Haldor Topsøe Brass Nigeria 3,500 Al-Jubail Petrochemical Company (Kemya) Al Jubayl Saudi Arabia 3,400 Bawabet Al Kuwait Holding Company S.A.K. Suez Egypt 3,000 Groupe Office Cherifien Des Phosphates SA Dire Dawa Ethiopia 2,700 Selected Corporate Facilities Investments, 2015-2017“The UAE chemical industry’s contribution was the highest among all GCC [Gulf Cooperation Council] states, accounting for 52% of manufacturing revenue … the UAE almost doubled its share in overall regional capacity from 4.7% in 2006 to 8.5% in 2016.” — Gulf Petrochemicals and Chemicals Association (GPCA) report, November 201742 2018 W O R L D ’ S M O S T C O M P E T I T I V E C I T I E SELE CTRONICSn this sector as in so many others ingapore shines n electronics manufacturing contributed percentto ingapores GDP, accounting for close to S$90 billion (US$65 billion) in manufacturing out-put, and employing about 70,000 workers. e city-state only fi gures to grow brighter with the recent introduction by the Singapore Ministry of Trade and Industry of the Electronics Industry Transformation Map, part of a strategy to add 2,100 more jobs and S$22.2 billion in value.In recent analysis in Site Selection, experts from Intralink China extolled the longtime electronics leadership of Shenzhen (not ranked here this year), but noted, “What’s happening in Shenzhen won’t appeal to all. Higher wages have still driven some manufacturers out of the area — including compa-nies such as Huawei, Foxconn and HP, which have set up in in Chengdu,” this year’s No. 2 metro area in the Asia Pacifi c.“Growth in China, fueled by its rising middle class, is a major contributor to strong global demand for consumer goods, including electronics,” says Oxford Economics’ Dan Levine. “As the market moves upstream and expands, the Chinese govern-ment is implementing policies that support domestic producers, and just as importantly, local producers know the Chinese consumer better and are more adept at leveraging complex distribution channels within the country.”Supply chain infrastructure and talent may help North America No. 1 Greater Chicago gain a further leg up. e region’s offi cial core-based statistical area extends into neighboring Wisconsin just short of Mount Pleasant, part of the Greater Milwaukee area, where Foxconn’s massive electronics manufacturing complex is taking shape. e economies of both metro regions are sure to benefi t. ree of the top four spots in our Latin America rankings go to Mexican cities, led by Tijuana, where more than 120 electronics companies such as Sam-sung, Foxconn, Kyocera and Plantronics have been operating for decades. As for Eastern Europe, “In the Krakow area you have a large pool of very well-ed-ucated engineers,” said AMS Technologies CEO Jan Meise when the fi rm opened a design center in our No. 1 city in 2017. Meanwhile, could Harare’s rank here in our Africa and Middle East be part of the economic revival that new Zimbabwe President Emmerson Mnangagwa envisions as pivotal in order to shift from fi scal crisis to a middle-class country by 2030? It’s a start, though many more basic economic and fi scal realities must be dealt with there after two decades of Robert Mugabe’s rule.“International trade and global supply chains are at the heart of the electronics industry, which sources components around the globe and divvies up production steps in many diff erent countries,” writes Dan Levine. “Industry leaders must work together with governments and other players to reduce trade barriers, and increase effi ciencies. Fostering greater global trade can ignite job growth, create effi cient and competitive markets, and put the global economy on the path of stable growth. While simply lowering tariff s can stimulate trade, that pales in comparison to the economic growth that can be created when supply chain-related limitations are reduced or eliminated.” 2018 W O R L D ’ S M O S T C O M P E T I T I V E C I T I E S 43Company Metro Area Country Inv. US $Million JobsAselsan Golbasi Turkey 157 Arcelik Anonim Sirketi Gaesti Romania 120 Arctic SA Gaesti Romania 109 Ekuna Szolgaltato-Gyarto-Kereskedelmi Korlatolt Felelossegu Tarsasag Devavanya Hungary 100 83Mabuchi Motor Co., Ltd. Krakow Poland 90 400Selected Corporate Facilities Investments, 2015-2017ELECTRONICSTop Cities 1 Krakow Metro Area, Poland 2 Budapest Metro Area, Hungary 3 Gaesti, Romania 4 Manisa, Turkey 4 Veszprem, Hungary 4 Lodz Metro Area, Poland 4 Brno Metro Area, Czech Republic 4 Lipetsk, RussiaEASTERN EUROPE & CENTRAL ASIA“In the Krakow area you have a large pool of very well-educated engineers. And we especially benefi t from a distinct know-how in thermal management and electronics design.”— AMS Technologies CEO Jan Meise, April 2017, on the decision to establish a design center in Krakow, one of many metro areas in Poland contributing to a national cluster of automotive electronics and electromobility firms44 2018 W O R L D ’ S M O S T C O M P E T I T I V E C I T I E SCompany Metro Area Country Inv. US $Million JobsStmicroelectronics SA Crolles France 1,000 Dyson James Ltd. Malmesbury United Kingdom 313 Ypsomed AG Schwerin Germany 118 150Sew-Usocome Alsace Germany 76 Comet AG Flamatt Switzerland 62 250Selected Corporate Facilities Investments, 2015-2017Top Cities 1 Berlin/Brandenburg Metro Area, Germany 2 Dublin Metro Area, Ireland 2 Limerick, Ireland 4 Munich, Germany 5 Leeds City Region, UK 5 Frankfurt Rhine-Main Metro Area, GermanyWESTERN EUROPEELECTRONICSBerlin ranked No. 1 for City Buzz & Wellness and No. 4 in Real Estate Costs in a 2018 survey of global tech cities by Savills. 2018 W O R L D ’ S M O S T C O M P E T I T I V E C I T I E S 45ASIA PACIFICTop Cities 1 Singapore, Singapore 2 Chengdu, China 3 Suzhou Metro Area, China 4 Shanghai Metro Area, China 5 Ho Chi Minh City Metro Area, VietnamELECTRONICSCompanyMetro AreaCountryInv. US $MillionJobsSamsung Electronics Co., Ltd. Seoul South Korea 14,700 Twinstar Display Technologies Pune India 10,000 Sakai Display Products Corp. Guangzhou China 8,846 Shenzhen China Star Optoelectronics Technology Co., Ltd. Shenzhen China 7,800 BOE Technology Group Co., Ltd. Hefei China 6,031 Selected Corporate Facilities Investments, 2015-2017Where are the Leading Smart CitiesTop 20 Smart Cities that are Giving Time Back to Their Citizens1. Singapore2. London3. New York4. San Francisco5. Chicago6. Seoul7. Berlin8. Tokyo9. Barcelona10. Melbourne11. Dubai12. Portland13. Nice14. San Diego15. Rio de Janeiro16. Mexico City17. Wuxi18. Yinchuan19. Bhunbaneswar20. HangzhouSOURCE: JUNIPER RESEARCH 46 2018 W O R L D ’ S M O S T C O M P E T I T I V E C I T I E SCHENGDUPHOTO: GETTY IMAGESSECTOR LEADER IN:ith a diversifi ed manufacturing base, Chengdu continues to be a focal point for development in western China. e region has attracted signifi cant foreign direct investment (FDI) and benefi ts from Chinese national policy. In 2017, based on its phenomenal job growth over the previous one and fi ve years, the region earned the top spot on the Milken Institute’s Best-Performing Cities China index. e rising labor and real estate costs in coastal parts of China and the ongoing Belt and Road Initiative being pursued by the national government both contribute to Chengdu’s ongoing economic strength. Attracted by economic development zones like the Chengdu Hi-Tech Industrial Development Zone, established in 1988, and numerous industrial parks, international companies have been investing in Chengdu for decades.Many major manufacturing fi rms have facilities in the region where they have created higher-wage jobs. ese include auto-manufacturer Volvo, and the Commercial Aircraft Corporation of China, Ltd. (COMAC), China’s fi rst passenger jet company. Well known for its strength in consumer electronics, Chengdu continues to attract signifi cant FDI. To broaden its economic base, Chengdu hosts a range of high-tech and R&D incubators as part of the Tianfu Entrepreneurship initiative. Many of these incubators, including SBC China Innovation Space, involve international partners, while others, like the Tianfu Software Park, are state-sponsored. ey aim to foster innovation and entrepreneurship and off er space and funding for startup fi rms.Investments in transportation infrastructure will bolster Chengdu’s international connections and tie it more closely into global supply chains. As part of the Belt and Road Initiative, the new Tianfu International Airport is due to begin operations as Chengdu’s second international airport in 2020. Ambitious rail investments will link Chengdu to a growing number of markets within China, to its neighbors, and to Europe. ese connections will also benefi t the tourist industry, anchored by the Chengdu Research Base of Giant Panda Breeding. is analysis draws on the report Best-Performing Cities China 2017, Milken Institute.Minoli RatnatungaMilken InstituteCHINA30.6667° N 104.0667° Eelev. 1,240 ft.CSTUTC+82nd3rd2nd2nd3rd5th4th 2018 W O R L D ’ S M O S T C O M P E T I T I V E C I T I E S 47Next >