Posts Tagged ‘FDI’

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America is Open for Investment

January 22, 2014

Vinai Thummalapally is the Executive Director of the SelectUSA Program. This post originally appeared on the Department of Commerce blog. 

Ambassador Vinai Thummalapally is the Executive Director of the SelectUSA Program.

Ambassador Vinai Thummalapally is the Executive Director of the SelectUSA Program.

In 2011, President Obama launched SelectUSA, the first-ever U.S. government-wide initiative to attract foreign direct investment (FDI) in the United States, with the hopes that the Department of Commerce would help facilitate both foreign and domestic business relationships and make FDI a diplomatic and foreign policy priority.

We took an enormous step forward three months ago, when the Commerce Department hosted the first-ever SelectUSA Investment Summit in Washington, DC. The summit was such a success that it sold out, and more than 1,300 business and government leaders from nearly 60 countries and economic development organizations from 48 states, the District of Columbia and three territories gathered to learn about the advantages of doing business in the United States and to explore investment opportunities. Perhaps most importantly, the Summit helped match potential investors with economic development organizations to help revitalize American communities and create new job opportunities.

Thankfully, we can continue to build upon the success of the Summit, now that the budget deal has been approved.  The agreement will allow up to $7 million to expand and enhance the program, and we at the Commerce Department are pleased to have this extra support to bring more companies to our shores.

In fact, the U.S. has welcomed investment to our shores for centuries. Our market has provided long-term stability and unmatched returns for investors. Today, the United States is the largest recipient of FDI in the world, and in 2012 alone, more than $160 billion dollars of FDI flowed here. Total foreign stock and assets are measured not in billions, but in the trillions of dollars. Clearly, FDI is an important contributor to our economy.

Update: Want more SelectUSA information?  Sign up for our newsletter!

But don’t take my word for it – SelectUSA has already helped bring jobs to the U.S. and foster many business relationships, both foreign and domestic.

For example, the Southern Idaho Economic Development Organization (SIEDO) approached SelectUSA for assistance as they worked with Frulact, a Portugal-based producer of fruit-based ingredients for food. SelectUSA advised SIEDO on the issues that would be critical for the company to consider, while also connecting them directly with our team on the ground in Portugal. After utilizing our advice, SIEDO and Frulact announced plans in October for a state-of-the-art 200,000 square foot facility in Rupert, Idaho, that is expected to employ at least 100 people.

We’re hearing plenty more success stories like this, and the SelectUSA program has proven to be a great “bang for the buck.”

We’re excited to continue enhancing SelectUSA with more congressional funding, and the Department of Commerce is ready to do all it can to connect investors with communities…and to open all avenues to guarantee that American is Open for Business.

After all, as President Obama said in his keynote address at the summit a few months ago, “When you bet on America, that bet pays off.”

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The SelectUSA Mission Continues

November 15, 2013
Secretary of Commerce Penny Pritzker reiterated her message that the United States is open for business.

Secretary of Commerce Penny Pritzker reiterated her message that the United States is open for business.

Ambassador Vinai Thummalapally is the Director of SelectUSA.

It’s now been two weeks since the SelectUSA 2013 Investment Summit, and we’re still catching our breath. There was incredible turnout for this first-ever national event, which brought together investors, business leaders, and economic development organizations to attract investment in the United States.

More than 1,300 participants packed the conference hall, coming from 60 international markets and across the United States.  Tickets sold out because people from all over the world believe in the stability, potential, and promise of the American market.

Thank you to all who came, all who expressed interest, and all of the partners and colleagues who made this event a reality.

You can relive some of what happened here in Washington, D.C., through our archived videos, but it’s important to remember that it’s the follow-up and the everyday hard work that will carry forward the SelectUSA mission. As President Obama said in his remarks at the event, the Summit was the starting point to strengthen and expand the program to attract more investment to the United States.

Update: Want more SelectUSA information?  Sign up for our newsletter!

We hope that the Summit was also a starting point for the types of new connections, new opportunities and new ideas that keep our economy moving forward.  More than 650 private, one-on-one meetings were set up through our online matchmaking system, and hundreds more took place on the tradeshow floor.

Through these discussions, federal, state, and local government officials received direct feedback from business leaders and investors on how to better meet their needs. Delegations from 48 states, three U.S.  territories, and the District of Columbia showed investors the numerous advantages to doing business in the United States.

This is where we begin the next phase.

Those connections can lead to the business deals that bring more investment and more American jobs. Our team is following up on inquiries, comments, and possibilities. We know that the investors, along with the state and local economic development organizations, are doing the same.  As you work on your follow-up, SelectUSA can serve as your convenient, single point of contact all year round.

The team at SelectUSA, as well as our colleagues across the United States and at U.S. embassies and consulates worldwide, look forward to taking our mission to the next level.  We hope to be in touch soon!

Thanks again for your interest. If you have questions, comments or you’d like to explore how we can assist you, please let us know.

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Bringing the #SelectUSA Investment Summit to You

October 30, 2013

Chris Higginbotham is a Communications Specialist in the International Trade Administration’s Office of Public Affairs.

Follow #SelectUSA to get live updates from the SelectUSA 2013 Investment Summit.

The SelectUSA 2013 Investment Summit is at capacity, but that doesn’t mean investors around the world who couldn’t register can’t be a part of the event.

If you haven’t heard, we’ll be pairing investors from around the world with federal and state leaders to find the best investment opportunities in the country. Economic development organizations (EDOs) representatives from 47 states, three U.S. territories, and Washington, D.C., will be there. Companies representing 60 worldwide markets will be in attendance.

President Obama has made attracting FDI a priority, and he will provide the keynote address, along with many senior officials from his administration and leaders from the private sector.

Update: Want more SelectUSA information?  Sign up for our newsletter!

We know it’s going to be an incredible event for any person, business, or organization with an interest in FDI into the United States.

That’s why we want to make sure that leaders and organizations around the world who can’t attend the event can still learn about FDI opportunities and trends. We want to spread the word far and wide that the United States is open for business, and there’s no better place in the world for companies to invest than right here in the United States.

It’ll be easy to keep up with updates from the Summit. We’ll be live-streaming all of the events in the main ballroom, thanks to support from our friends at the U.S. Patent and Trademark Office. Check out the official Summit agenda to find out which speeches and panel discussions are included.

We’ll be sharing real-time updates on Twitter from the @SelectUSA account. Event attendees and partner organizations will share information and opportunities using #SelectUSA.

Under Secretary of International Trade Francisco Sánchez will host a Twitter chat on Thursday, Oct. 31 at noon EST, where he will answer questions about the Summit, the importance of FDI, and what the United States is doing to attract more FDI. We encourage you to participate using #SelectUSA to ask your questions.

We’ll have posts here on our blog during and after the Summit, providing some crucial information about FDI and testimonials from Summit attendees.

The White House will stream President Obama’s address at http://www.whitehouse.gov/live.

If you’re interested in learning about new investment opportunities for your business, make sure to follow us as we share information from this important Summit.

FDI supports millions of jobs in the United States, and we think this Summit will help bring new companies, new jobs, and new partnerships to the United States.

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Investing in Our Economic Future: SelectUSA 2013 Investment Summit

August 15, 2013

This post contains external links. Please review our external linking policy.

Register now for the SelectUSA 2013 Investment Summit October 31 to November 1, 2013.

Registration for the Summit is now closed.

You don’t have to look far to find something in your life that is produced by an international company operating in the United States. It might be the dishwasher in your kitchen, the brake pads on your car, or the elevator in your apartment building.

You also won’t have to look far to find jobs supported by foreign direct investment (FDI) in the United States. There are more than five million of them throughout the country, covering every state in both rural and urban communities.

Those are five million reasons why FDI is an important ingredient in the recipe for continued economic growth in the United States.

President Obama has made it a priority to attract more FDI to the United States, helping support more jobs and economic growth. A key tool in his efforts is the upcoming SelectUSA Investment Summit.

Update: Want more SelectUSA information?  Sign up for our newsletter!

The Summit will connect global investors with U.S. leaders who are ready to showcase local investment projects. Economic development organizations from 15 states have already confirmed attendance at the event, offering myriad investment opportunities around the country.

Secretary of Commerce Penny Pritzker also announced an impressive lineup of government and business leaders to share important lessons about the advantages of investing in the United States – advantages ranging from our educated workforce, our relatively low energy costs, and the long history of ingenuity, innovation, and entrepreneurship that is synonymous with the “Made in America” label.

Private Sector Speakers include:

  • Andrew Liviris, President, Chairman, and CEO, Dow Chemical
  • Eric Spiegel, President and CEO, Siemens
  • William (Bill) Simon, President and CEO, Walmart U.S.
  • Daniel Doctoroff, President and CEO, Bloomberg L.P.
  • Laurence Fink, Chairman and CEO, BlackRock
  • Douglas Oberhelman, Chairman and CEO, Caterpillar, Inc.

U.S. Government Speakers include:

  • U.S Secretary of State Penny Pritzker
  • U.S. Secretary of State John Kerry
  • U.S. Secretary of the Treasury Jack Lew
  • U.S. Trade Representative Michael Froman

Keep up with additions to the SelectUSA Investment Summit’s lineup of speakers

The Summit will also include various informational breakout sessions, including the benefits of investing in the United States, opportunities for reshoring, business-related visa issues, and promoting and safeguarding innovation.

International and domestic businesses, global investors, economic development professionals, advisors and academics will all benefit from attending the Summit.

Pre-registration is now open for the nation’s premier investment event of 2013. The SelectUSA team is available to answer any questions you may have.

We hope to see you in October!

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Investments, Exports Create A Better Bargain for the United States

August 1, 2013

This post contains external links. Please review our external linking policy.

Francisco J. Sánchez is the Under Secretary of Commerce for International Trade.

President Obama wants to create “a national strategy to make sure that every single person who’s willing to work hard in this country has a chance to succeed in the 21st century economy.”

It’s a better bargain for the middle class.

At the International Trade Administration, we are proud that our mission is a key part this strategy. As President Obama pointed out in Chattanooga on Tuesday, foreign direct investment (FDI) and exports are key to supporting middle class jobs throughout the United States.

As we’ve noted previously, FDI in our country supports more than five million American jobs. The United States’ record-setting growth trend in exports supported nearly 10 million jobs nationwide in 2012.

The Obama Administration is hard at work to make sure that exports and investment grow – because their growth supports jobs at home. As part of the administration’s efforts,  I’m very excited that we are hosting  the upcoming SelectUSA 2013 Investment Summit. As the President said earlier this week, this conference will connect business leaders from around the world with local leaders “who are ready to prove there’s no better place to do business than right here in the United States of America.”

Pre-registration for the Summit is open now, and I know it will be the premier event for domestic and international investors looking to do business here.

President Obama has laid out his strategy to support economic growth and American jobs through FDI and export promotion. We are ready to support it and take it to the next level.

You can learn more about the SelectUSA Summit at selectusasummit.com.

For businesses looking to begin exporting or expand their current export portfolio, please contact your nearest Export Assistance Center for assistance.

Now, let’s get to work.

You can read the president’s entire speech as prepared for delivery. An excerpt is below: 

Number four, we’ve got to export more. We want to send American goods all around the world. A year ago, I signed a new trade agreement with Korea, because they were selling a lot of Hyundais here, but we weren’t selling a lot of GM cars over there. Since we signed that deal, our Big Three automakers are selling 18 percent more cars in Korea than they were.

So now we’ve got to help more of our businesses do the same thing. I’m asking Congress for the authority to negotiate the best trade deals possible for our workers, and combine it with robust training and assistance measures to make sure our workers have the support and the skills they need for this new global competition. And we’re going to have to sharpen our competitive edge in the global job marketplace.

Two years ago, we created something called SelectUSA. This is a coordinated effort to attract foreign companies looking to invest and create jobs here in the United States.  And today I’m directing my Cabinet to expand these efforts. And this October, I’m going to bring business leaders from around the world, and I’m going to connect them to state leaders and local leaders like your mayor who are ready to prove there’s no better place to do business than right here in the United States of America.

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The Sky is No Limit for U.S. Aerospace Manufacturing Exports

July 3, 2013

Chandra Brown is the Deputy Assistant Secretary for Manufacturing in the International Trade Administration.

Chandra Brown, center, joins members of the Commercial Alternative Aviation Fuels Initiative to cut the ribbon at the Alternative Aviation Fuels Pavilion at the Paris Air Show.

Chandra Brown, center, joins members of the global aviation industry to cut the ribbon at the Alternative Aviation Fuels Pavilion at the Paris Air Show.

I recently had the great pleasure of meeting many impressive US manufacturers, as well as former astronaut Buzz Aldrin, at the 50th International Paris Air Show at Le Bourget Field. Buzz is a key figure in American aerospace and was part of one of the United States’ greatest accomplishments—landing men on the moon. Meeting him was a reminder of America’s long tradition of leadership in aerospace manufacturing.

I was thrilled to see that legacy on full display at the U.S. International Pavilion in Paris. There were 264 American companies representing 34 states exhibiting in the Pavilion this year, and 75 of those companies had never been to the show before. During the week of the air show, these firms had the opportunity to meet with representatives from more than 2,000 companies from around the world, learn about new aircraft programs directly from major manufacturers, and mix with potential government customers from key aviation markets.

The International Trade Administration worked closely with Pavilion organizer Kallman Worldwide to help our exhibitors get the most out of the show. Industry experts and commercial specialists from around the world were on hand to counsel U.S. companies about their specific exporting needs. We organized a series of tours for foreign delegations interested in meeting with our firms. We worked with our colleagues at the Bureau of Industry and Security to provide the latest information on the Obama administration’s export control reform effort. We also met with representatives from both industry and government to promote foreign direct investment in the U.S. aerospace industry and the alternative jet fuels industry, and to advocate for U.S. companies competing for foreign government sales.

At the International Trade Administration, we know companies engaged in international business are stronger than those that are purely domestic. This is particularly true for the aerospace industry, which has the highest positive trade balance of any U.S. manufacturing industry.  My mission as the Deputy Assistant Secretary for Manufacturing is to make sure U.S. aerospace firms and other U.S. manufacturers are able to compete fairly on the global stage. ITA’s efforts at the Paris Air Show will help make that mission a success!

I hope all manufacturers will take advantage of trade missions to expand their business. You can find a list of upcoming missions here.

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United States Returns as the Global Capital for Global Capital Investment

June 28, 2013

Aaron S. Brickman is the Acting Executive Director of SelectUSA.The SelectUSA Investment Summit will be held )ctober 31 to November 1, 2013 in Washington DC. Details are available at SelectUSA.gov

Global investors are “rediscovering” the United States.

This week the consulting firm A.T. Kearney published its annual Foreign Direct Investment (FDI) Confidence Index. The Index surveys top executives from more than 300 leading global companies – representing more than $2 trillion in annual global revenue – on where they are directing their investment strategies. For the first time since 2001, the United States ranked #1 on this list, retaking the top spot!

The Department of Commerce’s SelectUSA program has seen this trend coming through the work we conduct on a daily basis. Companies both large and small increasingly understand that the United States is the destination of choice for capital, and an unparalleled place to invest and do business.

Markets such as Brazil, Canada, China, and Europe will continue to receive significant cross-border investment. However, the survey suggests that the resurgence of investment in American manufacturing is not just a temporary trend but the new reality.

A.T. Kearney’s survey reflects SelectUSA’s core mission: to assist U.S. economic development organizations (EDOs) in their efforts to attract global investment, and to work with companies throughout the world seeking to establish or expand operations in the United States.

On October 31st and November 1st, SelectUSA will host its inaugural SelectUSA 2013 Investment Summit in Washington, DC. The purpose of this unprecedented two-day event is to connect investors – both foreign and domestic – with U.S. EDOs at the state, regional, and local levels to help promote and facilitate business investment in the United States. The Summit will bring together top-level corporate executives and investors, EDO representatives from across the country, senior White House and Administration officials, industry experts and service providers.

The Summit is generating great interest in the business community, further bolstering what A.T. Kearney’s survey has told us:  the United States is open for business!

To pre-register for the SelectUSA Investment Summit, please go to www.selectusasummit.com.

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Why Companies Choose the United States: Beyond Incentives – Part 2

April 17, 2013

Rebecca Moudry is a Manager with SelectUSA, part of the International Trade Administration. This post is a follow-up to an earlier post published on the Tradeology blog. 

This chart shows that businesses are looking increasingly at proximity to markets, market growth potential, availability of skilled workers, and industry climate as reasons to choose a location to set up shop. Financial incentives matter less now than in the past, according to the study done by fDi Markets.

Based on data from fDi Markets.

In the SelectUSA session at the 2012 International Economic Development Council (IEDC) Annual Conference, Gene DePrez of Global Innovation Partners described the multiple tradeoffs companies consider as they make a global location decision. We discussed some of the considerations they make in an earlier post.

Sharing insights gained through over 30 years of experience advising businesses on global location strategy and site selection, DePrez concluded that incentives are just one factor among many that drive a transaction decision. According to DePrez, access to markets, talent, innovation, strong intellectual property rights, and key suppliers are among the critical fundamentals a company considers when determining where to invest. This jibes with data gathered by fDi Markets. They then weigh these against the costs and risks, and unique opportunities of each location.

In the end, there is not a uniform recipe for how or where a company decides to locate.

“The advantages of each candidate location will be traded against the one-time and long term costs and potential risks among other alternatives,” DePrez said. “Particularly when comparing global candidates, costs are just one piece, and incentives may be more or less important depending on the sector, type of operation, company culture and priorities of the CEO.

“Often they are important to offset one-time costs for training, or relocation, or to level the playing field through infrastructure improvements,” he added.

The Toshiba International Corporation is an example of the location decision process for a global firm. In 2011, this Japanese-based company began considering multiple locations to expand U.S. manufacturing to produce high-performance drive motors for hybrid electric and electric vehicles. Matthew Bates, a Plant Manager, says Toshiba’s motivating need was to be closer to their primary customer. A skilled and highly trained workforce was also critical, along with the need to maintain or reduce production costs.

After considering multiple locations and weighing tradeoffs, Toshiba settled on reconfiguring their existing Houston plant to accommodate the hybrid electric motor line. Their decision has paid off through:

  • Shorter lead times (from six weeks to four days)
  • Reduced currency risk
  • Decreased shipping costs
  • Decreased overall costs through eliminating duties, inventory holding and warehousing costs

“Not only are we saving money, but we have improved communication with suppliers, are more responsive to our customer, and have been able to preserve and even grow the Toshiba company culture in our Houston production site,” Bates said.

“Expanding in the U.S. has been a huge success for this product line and our company.”

SelectUSA is the government-wide initiative to promote and facilitate investment in the United States. Contact SelectUSA at http://www.SelectUSA.gov or +1-202-482-6800.

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Investing In The U.S. Is Good Business and Helps To Create Jobs

April 15, 2013

Aaron S. Brickman is the Deputy Executive Director of SelectUSAThe SelectUSA Investment Summit will be held )ctober 31 to November 1, 2013 in Washington DC. Details are available at SelectUSA.gov

U.S. Deputy Commerce Secretary Rebecca Blank just announced that the inaugural SelectUSA Investment Summit will be held in Washington, DC from Oct. 31 to Nov. 1, 2013.

The Summit will be the first of its kind, connecting businesses and investors from around the world with economic development organizations (EDOs) from across the country in an effort to promote investment in the United States and support the creation of American jobs. The two-day event will also amplify the work of SelectUSA in delivering on President Obama’s agenda to increase direct investment in the United States as a way to spur economic growth and create jobs.

UPDATE: Register For the Summit Online

The Summit will bring together international and domestic investors; national, regional, state and local economic development organizations (EDOs); senior Obama Administration officials; business leaders; and industry and technical experts, providing them with a unique opportunity to discover all the reasons why the U.S. is the ideal destination for companies that are weighing options for locating or expanding  their operations. During the two-day event, participants also will be able to explore potential investment opportunities in this country, as well as share best practices and build networks.

Our nation presents an unparalleled investment opportunity for domestic and foreign businesses. It benefits from sophisticated industry clusters, first class universities and research and development centers, access to global markets, strong intellectual property rights and a stable legal system and regulatory environment.

In 2012, nearly $168 billion in FDI flowed into the United States. Data from 2012, the latest figures available, indicate that affiliates of foreign firms employed more than 5.3 million U.S. workers at an average salary of nearly $70,000 per year.

These statistics are good, but we can do more to ensure that the U.S. share of global FDI grows even larger. That is why President Obama launched SelectUSA, and included $20 million in his fiscal year 2014 budget to support the program’s implementation.

Located within the International Trade Administration of the U.S. Department of Commerce, SelectUSA leads the federal government efforts to promote the United Sates as the premier global investment destination, and facilitates investment in the United States. The program provides information assistance to the global investment community, serves as an ombudsman for investors, and advocates for U.S. cities, states, and regions competing for global investment.

We look forward to broad participation in the SelectUSA Investment Summit─a not-to-be-missed opportunity for both  investors and EDOs. To learn more, please visit http://selectusa.commerce.gov/selectusa-investment-summit.

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Why Companies Choose the United States: Beyond Incentives

April 12, 2013

Rebecca Moudry is a Manager with SelectUSA, part of the International Trade Administration.

With the largest economy in This chart shows that businesses are looking increasingly at proximity to markets, market growth potential, availability of skilled workers, and industry climate as reasons to choose a location to set up shop. Financial incentives matter less now than in the past, according to the study done by fDi Markets.the world, the United States has always been a natural choice for companies from around the world to invest and grow. But with increasing global competition, what are the drivers that continue to rank the United States as the largest recipient of foreign investment in the world?

Reading many local U.S. news stories, it may sometimes appear that financial incentives are the decisive factor in many international or domestic business location decisions, but business location experts and companies themselves indicate that incentives, though important, are seldom the sole or even primary driver in a company’s strategic decision regarding where to locate operations.

According to information collected by fDi Markets, financial incentives (including tax or funding incentives) have played a minor role in company location decisions over the last nine years and are decreasingly important. Between 2003-2006 only about 10 percent of foreign companies that invested in the United States identified incentives as a primary motive or determinant for their U.S. investment decision. From 2007 through 2012, that number dropped to just below six percent of companies citing incentives as a motive for investment.

Proximity to customers and the growth potential of the U.S. market continue to be the most important motives cited by companies of why they invest in the U.S. In the last few years, the availability of a skilled workforce has grown as a critical determinant for company location; from 2003-2006 to 2007-2012, that factor grew by nearly 70 percent. In 2007, companies began citing a favorable business climate as a motive for investing in the U.S. some 152 percent more than in 2003-2006.

SelectUSA, located within the International Trade Administration of the U.S. Department of Commerce, leads the federal government efforts to promote the United Sates as the premier global investment destination and facilitates investment in the United States. SelectUSA provides information assistance to the global investment community, serves as an ombudsman for investors, and advocates for U.S. cities, states, and regions competing for global investment.

Contact SelectUSA at www.SelectUSA.gov or +1-202-482-6800.

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