American British Business 2006/7

ABB 2006/7 | State Profiles | North Atlantic region | New York State

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New York State

Powerful prospects

National Grid has joined thousands of foreign-owned firms setting up a solid base in New York

Investing in upstate New York is something that London-based National Grid plc, one of the world’s largest utility companies, knows something about. National Grid’s acquisition of Niagara Mohawk Power Corporation in 2002 was the largest single UK investment in New York history. National Grid has an upstate team of economic development specialists who can help you establish operations in New York.

Marilyn Higgins, Vice-President of Economic Development for National Grid in New York, says: “National Grid and our local and statewide economic development partners have extensive experience helping overseas companies grow.” New York State is home to more than 4,000 foreign operations representing virtually every industry. The state is third in the nation in foreign direct investment with the UK being the number one foreign investor.

National Grid’s economic development team, in collaboration with state and local partners, has helped many foreign companies expand into upstate New York including:

FAGE Dairy, a leading dairy company based in Athens, Greece, is constructing its first North American yogurt manufacturing facility in the Johnstown Industrial Park, near Albany, NY.
SEPSA Corp. of Madrid, Spain, an electric train equipment manufacturer, has set up its North American headquarters in Schenectady, NY.
Nestle Purina of Vevey, Switzerland, has invested approximately $70m to expand its Dunkirk, NY manufacturing facility.
Barilla of Parma, Italy, one of the world’s largest pasta producers’ is now building its newest production operation and distribution centre in Avon, New York.

These projects, along with a planned $3.2bn fabrication plant at the Luther Forest Technology Campus in Saratoga County, NY by Advanced Micro Devices Inc’s, the Sunnyvale California-based computer chip manufacturer, are credited to the following:

Access to the growing US market

Companies with established US operations have huge advantages in finding and securing new North American business. Currency fluctuations, warranty concerns, and shipping delays are avoided by being here.

Reduced operational costs

Recent changes in currency exchange rates, competitive wages, and Empire Zone Tax Credits (which allow new companies or companies increasing employment to operate on an almost “tax-free” basis for up to 10 years, among other benefits) can work for you.

Proximity to existing markets

Upstate New York’s comprehensive, multimodal transportation system provides access to a huge industrial market. Within a 750-mile radius of upstate New York resides about half the combined population of the US and Canada. This market represents half of the personal income, wholesale sales, and value of US and Canadian manufacturing shipments.

An innovative, high-quality labour force

More than 100 higher education institutions, including some of the world’s finest colleges and universities’ are located in upstate New York. New York ranks ninth in the US in the key economic category of worker productivity – with workers generating a value of more than $6 for every dollar earned.

Marilyn Higgins advises companies considering the jump across the Atlantic, “Your first step should be to go to National Grid’s economic development website at www.ShovelReady.com, for the resources and contact information to support your business expansion needs. ShovelReady.com’s comprehensive Sites and Buildings database has more than 200 listings of available properties.

“You will also find information on state and local economic development organisations, New York State incentives and a synopsis of programmes and services available from National Grid.”

National Grid is an international energy delivery business with principal activities in the regulated electricity and natural gas industries. In the US, it delivers electricity to approximately 3.4 million customers across 29,000 square miles of upstate New York and New England. The company also distributes natural gas to 810,000 customers.

For more information, visit: www.shovelready.com

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