FDI in flux: Lessons from the fDi Institute Live Workshop

From data to decisions: How global agencies are rethinking FDI in turbulent times

Last month, our Financial Times HQ became a hub of investment attraction strategy, insight, and connection. Over two immersive days, the fDi Institute Live Workshop brought together more than 50 economic developers, IPA leaders, site selection consultants, and corporate strategists from around the world to tackle one big question:

How do leading economic development and investment promotion agencies step-up their foreign direct investment (FDI) strategies to stay ahead in a turbulent world?

Chris Knight, Managing Director of FT Locations, speaking during his session called “FDI in a Changing World: Exploring the Latest Trends That Will Influence FDI in 2025” at fDi Institute Live Workshop

The backdrop: FDI in flux

2024 marked a turbulent year for global investments — as presented in the “FDI in a Changing World” session by Chris Knight, Managing Director of FT Locations. Greenfield FDI flows shifted toward the Middle East, North America, and Asia, while Europe saw declines driven by investor uncertainty and waning competitiveness.

India and the UAE surged ahead in global rankings. Even as investor signals slowed in early 2025, demand remained strong — particularly in sectors like software, renewables, medtech, and high-tech manufacturing.

What sets leading IPAs apart?

Achim Hartig, Managing Director of Germany Trade & Invest (GTAI) reminded us: proactive beats reactive. In a fast-evolving policy environment, they’re not waiting on regulations — they’re “storming the ministries”, embedding themselves in policymaking before the ink dries. Their evolving strategy blends structured data with seasoned instinct and continuously realigns with emerging priorities — like quantum computing, health innovation, and the circular economy.

Key takeaways:

• Don’t wait — shape smart policy through early engagement and informed research.
• SMEs are the engine — support them with scalable global access and partnerships.
• Digital tools matter — modernize your site selection and investor engagement.
• Strategy = data + experience — use both intentionally.
• Review foreign office roles and impact annually — adapt or fade.

Manufacturers navigate the fog

In manufacturing, companies are split. Some are pausing expansion, while others are accelerating. What’s driving this divergence? Risk — geopolitical tension, talent shortages, and fragile supply chains.

Johan Beukema from BCI Global laid it out clearly: uncertainty is here to stay. Their “DE-5” strategy — Decouple, De-risk, De-single source, Decentralize, Decarbonize — is fast becoming the global playbook. And it’s not just about reshoring; it’s about placing operations closer to customers and increasing resilience.

Key takeaways:

• “Just-in-case” beats “just-in-time” — resilience matters more than efficiency.
• Decentralization is rising — not just reshoring, but localizing near key markets.
• India and the U.S. are hot. China? Less so for export-focused plays.
• ROI on decentralization is long-term — EDOs/IPAs must help justify that journey.

Corporate insight: Philips & the talent equation

Mario Hernandez Garcia, Talent Intelligence Manager at Philips brought a refreshing perspective: Talent Intelligence (TI) isn’t just helpful — it’s essential. Rather than chasing the cheapest labor markets, they align site selection with talent depth, cultural nuance, and local regulatory realities.

Key takeaways:

• Talent Intelligence (TI) is essential — know the talent landscape before selecting a location.
• Cultural and regulatory context must not be overlooked in your value propositions and strategies.
• Often, scaling existing hubs beats opening new ones from scratch.
• Philips doesn’t just follow data — they pressure test it with local context.

The site selection panel: Relationships still matter

In a world of dashboards and AI, this panel reinforced a timeless truth: data gets you on the list, but relationships win the project. Agencies that are responsive, credible, and differentiated in their value proposition stand out.

Key takeaways:

• For data centres: power is everything. For manufacturers: workforce is king.
• ESG is emerging, but not yet a primary driver — especially in mid-market deals.
• Small Markets need to be more visible: They need to identify project opportunities and companies that have the highest potential to invest in their locations.
• Golden truth: “Data gets you in the door. Trust seals the deal.”
• Agencies need to be ready with data, build relationships, and market themselves harder than before.

Innovative regional strategies: Local answers to global challenges

This diverse panel from Hartford to Sturgeon County — showcased creative, regional approaches to economic growth and FDI attraction. Each brought a unique model tailored to their community’s assets.

Key takeaways:

Hartford, CT – Insurtech Corridor Vision:

• Built a soft-landing zone for UK insurtech firms — 20 in the pipeline, 6 landed.
• Leveraged low-cost office space and proximity to NYC/Boston.
• Maintained high retention through active, relationship-based engagement.

Cincinnati, OH – Tier 2 FDI Targeting:

• Shifted from relying on Fortune 500 ties to focused European tier 2 city outreach.
• Pre-qualifies FDI leads digitally — quality over quantity.
• Matches sectors like aerospace, chemicals, and F&B to cities with high ROI potential.

McKinney, TX – Startups Over Smokestacks:

• Provides $50K–$500K grants to startups — no equity, no clawbacks.
• Partners with Plug and Play to run global innovation sprints.
• Uses a master lease model to lower risk and speed relocation.

Sturgeon County, AB – Energy & Green Transition:

• Evolving from traditional oil/gas to CCUS, hydrogen, and data centres.
• Canada’s largest gas processing facility meets a growing green tech sector.
• Combines large-scale infrastructure with value-added innovation.

Lesson across all regions:

• Success is driven by specificity, creativity, and relentless execution.
• Funding innovation, whether through liquor sales or sales tax — can give smaller cities a bold edge.

Keynote lunch: From auto to air with MANN+HUMMEL CEO Kurk Wilks

Kurk Wilks, CEO of MANN+HUMMEL, offered a behind-the-scenes look at how one of the world’s leading filtration firms is adapting its global investment strategy.

What resonated? A shift from automotive-dominant thinking to clean air innovation and resilient expansion, with flexibility and data guiding their moves.

Key takeaways:

• CEOs are recalibrating for resilience over reach.
• De-risking and flexible, data-informed expansion is the new standard.
• The private sector is moving fast in the digital space to make their work more efficient and productive — EDOs must match their pace with trust and insight.

Digital readiness: More than a buzzword

In my session: From Tech-Savvy to Tech-Driven, we explored why digital readiness is foundational to modern FDI competitiveness. While 80% of successful FDI projects now stem from targeted campaigns, less than 40% of IPAs deploy sector-specific digital strategies.

Leading agencies from Greater Phoenix to Invest Estonia, are building ecosystems powered by AI, immersive content, and self-service tools. But digital transformation isn’t about tech stacks — it’s about systems thinking and executional discipline.

Key takeaways:

• Digital readiness is now a core FDI differentiator — most IPAs still lag.
• 80% of successful FDI projects come from targeted campaigns.
• Winning agencies shift from tools to ecosystems: Data → insight → engagement → investment.
• Being tech-savvy isn’t enough — become tech-driven.
• Tools like AI chatbots and virtual site tours amplify human teams — not replace them.
• Digital transformation is a marathon — requiring leadership, training, and consistency.

Carla Sones of Consultant Connect speaking at fDi Institute Live Workshop

Final thought: Human and tech = the future of FDI

Carla Sones, President of Consultant Connect closed the event with a powerful reminder: “Business is still human.” Tech scales. Data guides. But at the end of the day, people seal the deal. If all else is equal — data, incentives, infrastructure — trust is the differentiator.

Key takeaways:

• Data drive strategies and emotional intelligence = sustainable advantage.
• Human connection builds investor confidence in ways data alone can’t.
• Tech should accelerate trust—not replace it.
• The most future-ready IPAs blend insight, instinct, data, relationships, tech, and trust.

Looking ahead

The world of FDI isn’t standing still. From boardrooms in Stuttgart to site tours in Texas, leaders are recalibrating quickly. The regions and agencies that thrive in this new era will be those who are digitally enabled, globally connected, and deeply human.

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