FAQ
1. Why do international companies choose to do business in Los Angeles, California?
Los Angeles offers a strategic location for international companies because its infrastructure and geographical position serves as a gateway for trade and business activities. In 2023, the twin ports of Los Angeles (L.A.) and Long Beach handled approximately 17 million cargo containers and managed over 40% of all inbound containers for the entire United States. Los Angeles International Airport (LAX), which ranks as the fifth-busiest airport globally, processed over two million tons of air cargo valued at nearly $153.13 billion, ranking eighth in the world and fifth in the U.S. in air cargo tonnage. The Burlington Northern Santa Fe and Union Pacific railroads utilize the Alameda Corridor, a 20-mile-long rail cargo expressway linking the ports of Long Beach and Los Angeles to the transcontinental rail network, ensuring efficient cargo transportation.
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https://laedc.org/industry-cluster-development/trade-logistics/
https://www.brandla.org/post/los-angeles-best-place-for-international-trade
https://polb.com/business/port-statistics/#yearly-teus
https://www.portoflosangeles.org/references/2024-news-releases/news_011624_jan_cargo
https://www.portoflosangeles.org/business/statistics/facts-and-figures
https://www.lawa.org/news-releases/2023/news-release-039
https://www.lawa.org/lax-cargo/lax-cargo-news
https://www.lawa.org/lax-cargo
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2. What makes Los Angeles an attractive business destination for international companies?
Los Angeles boasts a diverse and dynamic economy, with thriving industries such as entertainment, technology, aerospace, and fashion. In 2022, the GDP for the Los Angeles metro area amounted to about 1.06 trillion U.S. dollars across these sectors. This diversity provides ample opportunities for international companies to tap into various sectors.
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3. How does the business-friendly environment in Los Angeles contribute to its appeal for international companies?
The city has implemented business-friendly policies, tax incentives, and infrastructure developments that create a conducive environment for international companies. For instance, A $15-billion capital improvement project is underway at Los Angeles International Airport (LAX) to improve efficiency and sustainability. The Los Angeles area has also adopted a number of state incentives including the Advanced Transportation and Manufacturing Sales and Use Tax Exemption, Sales and Use Tax Exemption for Manufacturing, and the California Infrastructure and Economic Development Bank (IBank) CLEEN Center, and many more. Business-friendly policies, tax incentives, and infrastructure developments encourage investment and growth in various industries across the L.A. region.
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https://business.ca.gov/advantages/international-trade-and-investment/
https://calosba.ca.gov/funding-grants-incentives/financial-incentives/incentives-by-industry/
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4. How does the talent pool in Los Angeles attract international companies?
The city is home to a highly skilled and diverse workforce, particularly in creative industries like film, television, and technology. International companies often choose Los Angeles for its access to a talented labor pool and innovative professionals. International companies can tap into Los Angeles’ highly skilled and diverse workforce by leveraging Los Angeles County Economic Development Corporation’s partnership with the Center For A Competitive Work Force that connects the 19 community colleges to industry work-based learning and job opportunities.
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https://laedc.org/workforce-development/
https://ccw.losangelesrc.org/workforce-education-partner-portal/
https://www.ajcc.lacounty.gov/businesses/economic-development
https://www.ajcc.lacounty.gov/businesses
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5. Are there specific industries that draw international companies to Los Angeles?
Yes, industries such as entertainment, technology, tourism, and aerospace are major attractions. The city's dominance in the global entertainment industry and its status as a technology hub make it particularly appealing.
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6. How does the cultural diversity of Los Angeles impact international businesses?
The city's rich cultural diversity allows international companies to connect with a broad range of consumers and markets. It provides a unique opportunity to understand and cater to the preferences of a globalized consumer base.
Here is a breakdown of the racial groups in L.A. County:
American Indian and Alaska Native: 163,464
Asian: 1,499,984
Black or African American: 794,364
Hispanic or Latino: 4,804,793
Native Hawaiian and Pacific Islander: 24,522
White: 3,259,427
According to the data, Hispanics and Latinos are also the largest ethnic group statewide.
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7. What role does the infrastructure play in attracting international businesses to Los Angeles?
Los Angeles offers a strategic location for international companies because its infrastructure and geographical position serves as a gateway for trade and business activities. Los Angeles has a well-developed infrastructure, including world-class ports, airports, and transportation networks. This facilitates efficient logistics and supply chain management for international companies engaged in import and export activities.
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https://laedc.org/industry-cluster-development/trade-logistics/
https://www.brandla.org/post/los-angeles-best-place-for-international-trade
https://polb.com/business/port-statistics/#yearly-teus
https://www.portoflosangeles.org/references/2024-news-releases/news_011624_jan_cargo
https://www.portoflosangeles.org/business/statistics/facts-and-figures
https://www.lawa.org/news-releases/2023/news-release-039
https://www.lawa.org/lax-cargo/lax-cargo-news
https://www.lawa.org/lax-cargo
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8. How does the presence of trade organizations and consulates support international businesses in Los Angeles?
The city hosts numerous trade organizations, consulates, and chambers of commerce that provide valuable resources, networking opportunities, and assistance to international companies navigating the local business landscape.
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https://www.trade.gov/let-our-experts-help-0
https://foreigntradeassociation.com/
https://www.trade.gov/los-angeles-contact-us
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9. Are there any government initiatives or programs that encourage international businesses to set up in Los Angeles?
Yes, the city and state government often introduce initiatives and programs, such as tax incentives, to attract and retain international businesses. These measures aim to stimulate economic growth and create a favorable business environment.
https://business.ca.gov/advantages/international-trade-and-investment/
https://calosba.ca.gov/funding-grants-incentives/financial-incentives/incentives-by-industry/
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10. What are the key advantages for international companies establishing a presence in Los Angeles over other cities?
The combination of strategic location, diverse industries, a skilled workforce, business-friendly policies, and cultural richness makes Los Angeles a compelling choice for international companies seeking a competitive edge in the global marketplace.