ED Now

IEDC’s recent Investment in Attraction in 2022 webinar discussed ways EDOs can strategize to attract more investment to their communities, highlighting emerging trends in our post-pandemic world. The webinar began by outlining where the economy is headed in terms of globalization. There is a corrosion of globalization happening with heightened protectionist policies. All the while much of our business is shifting to become more digital, and remote working is increasing. Combine that with workforce shortages, inflation, higher interest rates, and a possible recession, and investments can become very confusing to navigate. Nadine Jeserich, PhD, vice president of analytics for Gazelle.ai, touched on ways in which EDOs can promote ...

IEDC has lost three past board chairs in 2021: Harry Foden, Don Dunshee, and Victor Grgas. ED Now remembers their accomplishments and contributions to IEDC and economic development.

The pandemic has forced government officials, policymakers, and economics professionals around the world to confront a chicken-or-egg dilemma: Which comes first, health or the economy? With countries worldwide experiencing a vicious cycle of lockdowns, reopenings, Covid surges, and more lockdowns, should officials pursue policies to stabilize (or stimulate) the economy first or combat the pandemic first?

The Organisation for Economic Co-operation and Development’s recent webinar on the internationalization of smart specialization provided a clear link between innovation and internationalization, both crucial components of economic development. The presentations provided reports on systems already in place, as well as policy recommendations for the implementation of such systems elsewhere. In Europe, an ideal system promotes innovative economic transformation, with good governance as the most important factor. This system would offer traditional internationalization support, such as financial and investment support, counseling, and support for participating in international research projects. Done well, this will scale up innovation ...

The emergency of covid-19 has spurred a sudden struggle by governments, businesses and individual consumers around the world to produce and acquire basic products and materials, exposing the fragility of the modern global supply chain. While the crisis rages on, the need to design smarter, stronger and more diverse supply chains has become collectively obvious. The pandemic has driven the business world to rethink the value of menial everyday things — such as walking comfortably down the street or shaking someone’s hand — and has struck the global trade and investment market at an unprecedented speed and scale. It would not be hyperbole to declare that covid-19’s ripple effects have resulted in the world’s most difficult economic situation since World War II.

Well before the Trump administration launched a trade war with China and the covid-19 outbreak emerged there in December, globalization had decelerated due to increased government scrutiny of takeovers by foreign companies, barriers to trade in services, a less favorable investment climate and, more recently, slowing growth around the world. International trade had been an engine for growth since the 1960s, with globalization taking off in the 1980s as companies ramped up overseas operations, shifting jobs and activities abroad. But while there is a pervasive belief that the world is becoming increasingly global, the truth is globalization peaked in the mid-2000s, and growth in foreign direct investment since then has been weak.

In a blow to its plan to build a global network of highly automated factories, Adidas has announced it will close its “Speedfactories” in Atlanta and Ansbach, Germany by April. The state-of-the-art automation offered by the Speedfactories, which have only opened within the last few years, promised to shorten Adidas’ supply chain, make production faster, and speed shoes onto American and European store shelves. The factories are more flexible, allowing the manufacturer to create small batches of customized shoes. They are limited in the types of shoes they can produce, however, with the German factory set up to make only running shoes and not leather shoes. Adidas has decided to refocus its Speedfactory technology and ...

Economists are speculating as to how much the nearly 50,000-worker GM strike will affect the economy, agreeing that a prolonged strike would create large impacts. GM’s workforce is smaller than it used to be, and its market share is only around 17 percent, compared with around 30 percent 20 years ago, The Wall Street Journal points out. Still, workers are already feeling the impacts, reports The Detroit News. Local trucking has halted as drivers can’t get past picket lines to unload parts and GM began canceling deliveries. GM Canada has temporarily laid off 1,200 employees at an assembly plant in Ontario because of unavailable truck components due to the UAW strike. The strike could start a recession in the Midwest, ...