Pan Am profit plan: Drawing investment from soccer nations

The Pan Am Games aren't just about soccer for Hamilton. The city hopes to use the games as a chance to lure millions of businessinvestment, primarily from seven countries.

In one of the larger off-field activities of the games, Hamilton and Niagara have teamed up to draw executives of foreign nations away from Toronto, attempting to play matchmaker for industry leaders and the Hamilton-Niagara landscape.

Hamilton is focusing on seven countries, andMexico is their primary target for foreign direct investment (FDI).

The plan is to "highlight what the whole region has to offer," said Jennifer Patterson, a senior business development consultant for Hamilton's economic development program.

It's an opportunity we don't want to miss out (on).- Jennifer Patterson, senior business development consultant

An exhaustive study commissioned by the two regions and executed by Deloitte identified Mexico as the "preferred" option in a field of seven countries for FDI.

Leveraging sport and presence at the games, the initial study into what countries and what sectors to woo during the Pan Am Games highlighted strong soccer nations and three industries: agri-food, clean technologies and the information communication technology (ICT) sector.

Putting a business spin on sporting events is certainly not something new to international competitions.

$22.4 million in continual investment after Vancouver Olympics

A year after the 2010 Vancouver Winter Olympic Games, a report commissioned by the Metro Vancouver Commerce Olympic Business Program was touting $306million in economic impact from the games. Media reports scrutinized the number, which bundled in movie shoots, including $60million from the shooting of Mission: Impossible 4.

But there was one number that stayed consistent in the aftermath of the Olympics: $22.4 million was a reoccurring investment rent, wages and taxes that was brought in by the business-to-business (B2B) connections made while hosting the games.

Vancouver pulled off the figure with mountains and a modest budget for the program of $1.5 million. Hamilton and Niagara will use Niagara Falls to "bring some opportunities and eyes to this side of the lake," Patterson said. But it will have to do so on a budget of about roughly $50,000, which will cover the costs of TIARA Canada, a global business consultant firm.

They're very strong onagri-foodsand we're trying to develop that cluster here in Hamilton.- Mayor Fred Eisenberger

Another international sporting event, identified in the Deloitte study, showed Sydney's 2000 Olympic Games brought in $354 million of FDI.

"We already we know we have industries that have parent companies (at the games)," Patterson said, referring to the Mexican baking giant Grupo Bimbo. That company owns some 90 per cent of Canada Bread, which has a plant in Stoney Creek.

"It's an opportunity we don't want to miss out (on)," Patterson said.

7 target companies, 3 industries

The seven target countries are split into two tiers: Mexico, U.S., Brazil, Chile and Colombia make up the first tier, while Peru and Costa Rica round out the second tier.

In selecting what countries to focus their efforts on which would include tours, meals and networking opportunities the Hamilton-Niagara working group looked factors such as sector alignment, economy, visibility to key influences and existing trade relationships.

In Vancouver, the study showed more than 60 prospective groups. In Hamilton, Patterson said, they are still identifying a metric for success of the program, which may be in the range of 20 groups passing through tours of Hamilton. But she cautioned that some of those relationships need time to develop into direct investment in Hamilton.

Mayor Fred Eisenberger said with the connections of Hamilton's agri-food industry, the Pan Am subcommittee has already discussed looking at Brazil, which has become a recent powerhouse in the global agri-food industry.

"They're very strong on agri-foods and we're trying to develop that cluster here in Hamilton with Canada Bread, Maple Leafs Meats and Heimbecker at the port," Eisenberger said. "We're trying to grow that industry here in Hamilton."

The next step, Patterson said, is to create a "playbook" on how to execute the Pan Am business investment strategy. That would include what businesses to tour, what connections to help facilitate, and a framework on the off-field activities for the economic development wing of the city.

Those details, Patterson said, are due to be completed by the end of the month.