This October, Swiss multinational flavour and fragrance manufacturer Givaudan broke ground on a new $215mn production facility on the outskirts of Cincinnati, Ohio.
Gilles Andrier, Givaudan chief executive, said the site, the company’s largest investment in North America this century, demonstrated “the importance of the market” and was “a tangible example” of its long-term strategy to access customers in high-growth areas.
The city — already home to large companies including Procter & Gamble, Kroger and GE Aerospace — was fifth in this year’s FT-Nikkei Investing in America ranking of the best US cities for foreign multinationals to do business, climbing 42 places from 2024.
It was propelled upwards by strong investment interest from domestic and foreign companies, as well as a competitive business environment, supported by state-backed incentives and tax breaks.
“Some of the appeal is just the good fortune of our geography,” says Michael Jones, an economics professor at the University of Cincinnati. He notes that the Midwestern city is located within a day’s drive of more than half of the US population, making it “a great place for companies looking to get a good foothold in the market”.
But location alone is not enough. “The state of Ohio has also been pretty aggressive at lowering the cost of doing business in the region,” Jones adds. JobsOhio, the state’s non-profit economic development corporation, offers grants, loans and tax credits to help and encourage companies looking to locate or expand in the region.
The non-profit, which also offers customised recruitment support, introduced a new programme this August offering employers $15,000 for each qualified STEM or technical hire who relocates from outside of Ohio. Businesses can direct these funds however they wish, whether towards relocation fees, signing bonuses or recruitment drives.
Attracting new workers will be crucial. Despite a recent uptick, Cincinnati’s population growth still trails similarly sized cities elsewhere in Ohio and in the wider US.
Kimm Lauterbach, president of local non-profit economic development organisation REDI Cincinnati, which markets the region and advises foreign companies considering a relocation or expansion, says her pitch highlights Cincinnati’s strategic location and comparatively lower cost of living.
“When you think of the east and west coasts, you see how hard it is to find a location, to compete in that economy, and then how hard it is to have an affordable lifestyle,” Lauterbach says. “Cincinnati then becomes a really logical choice.”
Elsewhere, other mid-sized cities across the US have also been trying to court global investors by positioning themselves as affordable and accessible alternatives to the big coastal cities such as New York, San Francisco and Los Angeles.
Tampa, Florida, which claimed the top spot in this year’s rankings, was spurred, like Cincinnati, by its competitive business environment — including city-backed incentive and grant programmes. The state also offers tax credits for businesses investing in what is already a relatively low-tax region. The Sunshine State has no state income tax and its corporate tax rate is just 5.5 per cent.
For Seattle, Washington, which placed second in the rankings, the pitch for courting foreign investment includes an array of infrastructure developments designed to boost business confidence and make the city more appealing for skilled and mobile workers.
Improving public transport is a key part of that strategy, according to Lars Erickson, a senior vice-president at the Seattle Chamber of Commerce. The first segment of the 2 Line, a significant light-rail expansion project, opened in April 2024. The full line, which will connect the suburbs of Bellevue and Redmond to the business district of Seattle is due to open in 2026.
These connections will “provide fast, reliable access between major job centres, spur new housing development, and unlock opportunities for transit-oriented growth”, says Erickson.
The city has also been upgrading its central area, which suffered a sluggish rebound in foot traffic, alongside heightened public safety concerns, following the pandemic. The 8ha Waterfront Park, which replaced an old highway and wharf, opened in September, while the new Seattle Aquarium Ocean Pavilion started welcoming guests last year.
Projects like these, alongside streetscape improvements and public safety investments, “are restoring confidence among employers and workers who rely on a vibrant downtown”, says Erikson. Weekday footfall from workers climbed to an average of 157,000 in July, the highest since early 2020, but still just slightly more than two-thirds of levels in 2019, according to the Downtown Seattle Association.
Improving the appeal of the city’s urban core has also been key to attracting investment to Raleigh, North Carolina, says Kyle Touchstone, director of Raleigh Economic Development. The city’s new Gipson Play Plaza at Dorothea Dix Park — which includes playgrounds, gardens, and water features — opened in June.
The city has also enjoyed a post-pandemic construction boom, bringing its supply of multi-family residences to a record high. “That’s bringing more density and vibrancy to our city and drawing in workers who can find affordable housing,” says Touchstone.
More important than infrastructure, the ability to access a highly skilled workforce is key to Raleigh’s marketing to overseas investors. Advocates say the city’s location in North Carolina’s so-called Research Triangle, anchored by three major research universities, offers a dense concentration of experienced scientists and engineers.
“Our secret sauce is always our talent,” says Touchstone.
