Archive for the ‘SelectUSA’ Category

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The Intersection of Manufacturing & FDI: Job Creation

October 4, 2019

SelectUSA’s Investment Research Team works to create an environment where data inspires, supports, and informs investment policy and promotion.

This Manufacturing Day we are highlighting the positive impact of investors in manufacturing. Whether a business decides to expand existing operations in the United States, or a new international investor opens a manufacturing plant for the first time, U.S. communities reap rewards. These benefits can be seen in stories across the country.

Re-selecting the USA
Earlier this year, SelectUSA released a report titled Reinvesting in the USA: A Case Study of Reshoring and Expanding in the United States. It profiled six examples of U.S.-based businesses that chose to reshore or expand operations in the United States rather than abroad. Each of these companies had a positive impact on the U.S. workers they employed and the communities surrounding them – the kind of real-world details about manufacturing that can often get lost in macroeconomic analysis.

Companies such as Sherrill Manufacturing support U.S. jobs with their dedication to manufacturing in the United States. Between 2013 and 2014, Sherrill reshored its entire operation from Mexico to a facility in upstate New York. Sherrill’s “factory-to-table” model not only allows consumers to purchase directly from the manufacturer, but also enabled the company to more than double manufacturing employment at its New York facility. Today, Sherrill Manufacturing employs more than 50 workers.

Sherrill’s investment also supports a historic manufacturing community in upstate New York, ranging from suppliers who provide the company with U.S.-made steel to small businesses that serve manufacturing workers, such as the local pizza parlor. By choosing to reinvest in the United States, Sherrill Manufacturing has helped strengthen the local manufacturing industry, enhancing employment and the economic gains that accompany it.

The Bigger Picture: FDI in U.S. Manufacturing
It is also useful to look at the macroeconomic data on manufacturing investment in the United States. Our colleagues at the Bureau of Economic Analysis provide robust data on foreign direct investment (FDI) in the United States each year. In 2018, investment in the manufacturing sector represented 41 percent of the total FDI position in the United States, up from 32 percent in 2008. With a compound annual growth rate (CAGR) of 13 percent during the last five years, FDI in U.S. manufacturing is outpacing the all-industry comparable CAGR of 10 percent economy-wide growth. This increased representation of manufacturing in the U.S. FDI portfolio speaks to U.S. manufacturing competitiveness in the global economy.

FDI has an undeniable impact on the U.S. economy and U.S. workers. According to the latest available data, FDI directly supported nearly 2.5 million manufacturing jobs in 2016. This means that investment by foreign-owned firms in the United States was responsible for 20 percent of all U.S. manufacturing employment that year.

Of all source markets in 2016, Japan supported the largest number of jobs in the manufacturing industry (approximately 397,000), followed by Germany (287,800), the United Kingdom (275,600), and France (213,300). Of the FDI in manufacturing subsectors, transportation equipment supported the most jobs (509,900), followed by chemical manufacturing (364,400), and food manufacturing (301,000).

Where is manufacturing FDI going in the United States?
FDI in the manufacturing industry supports jobs in all U.S. states, territories, and the District of Columbia. Not surprisingly, the states with the highest levels of employment supported by manufacturing FDI are some of the most populous in the nation: California (where approximately 200,000 FDI manufacturing jobs are supported – the highest total of any state) and Texas (181,500).

In addition, manufacturing FDI is responsible for a significant component of overall employment resulting from FDI. In 10 states, the majority of FDI-supported jobs are in the manufacturing sector, with the highest percentage in South Dakota (66 percent of jobs supported by FDI resulting from the manufacturing sector), Michigan (64 percent), and Nebraska (63 percent).

Percentage of FDI Employment in Manufacturing 2016

Graphic for SUSA Mfg Blog 100219
Data Source: Bureau of Economic Analysis. Accessed 9/2019.

On a regional basis, the total employment resulting from FDI in manufacturing was highest in the Southeast (698,500) and the Great Lakes (590,900). However, the average employment level of a Great Lakes state resulting from manufacturing FDI was more than twice as high as that in a Southeast state (118,180 on average in a Great Lakes state compared to 58,208 in a Southeast state). As a result, more than 51 percent of all FDI-supported employment in the Great Lakes was in the manufacturing sector.

SelectUSA Loves Manufacturing in the United States
Whether you’re looking at a favorite local restaurant’s day-to-day business or state-level economies, domestic manufacturing’s contributions cannot be understated. Both the FDI of international companies in the United States and the reinvestment efforts of domestic firms provide this key support. On this Manufacturing Day, we’d like to applaud them and the hardworking U.S. workers they employ!

For more information
For more information on FDI in the United States, sign up for email updates from SelectUSA and visit SelectUSA.gov for resources such as FDI fact sheetsinteractive data tools, and informative reports. You can also follow and contribute to our #FDIintheUSA campaign on Twitter!

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Business Incentives Continue to Play a Key Role in U.S. FDI Leadership

September 17, 2019

SelectUSA is a program led by the U.S. Department of Commerce that facilitates and promotes job-creating business investment into the United States

Global companies are drawn to the United States for many reasons: a highly productive and educated workforce, low-cost supply of energy, direct access to the world’s most robust capital markets, and mucmoreBut how much of our nation’s continued success in this arena should be attributed to incentives given to businesses by state and local governments? They receive a great deal of attention, but how much do companies actually consider incentives when determining where to invest?

Business executives are quite forthcoming with answers to the question. Many of the companies that SelectUSA has assisted have made it clear: incentives are a very important consideration, but not the most important one. Companies consider a mix of variables and factors: costs, location, supply chains, ease of doing business, etc. Consistently, the United States stands out as the best place to do business.SelectUSA_FullColor-hires_575 (002)

The United States has topped the A.T. Kearney FDI Confidence Index seven years in a row. The Index, a survey of global CEOs’ confidence in the world’s markets, highlights the top factors considered in business expansion and how markets stack up. In 2019, pro-business regulations, competitive tax rates, and economic expansion helped lead to another year of U.S. leadership in international investment. But economic incentives were also ranked among the top of the list of considerations.

State and local governments create incentives packages for companies in order to attract investment and create job opportunities in their local areas. Often given on the basis of job creation or economic impact, incentives can include grants, loans, tax and job training subsidies. These incentive packages can sometimes total in the millions or billions of dollars, but their size is contingent on the magnitude of the proposed business project. The federal government also offers a wide array of incentives, from clean energy production tax credits to export credit insurance for small businesses.

The investment process itself can seem complicated, and many companies don’t know where to start. Luckily SelectUSA is here to help companies navigate the process and connect with the right resources and incentives at the local level. Visit selectusa.gov to learn more. The United States is open for your business.

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BEA’s New FDI Numbers Point to Sustained Economic Growth for the USA

August 23, 2019

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

Audrey Cheng is an intern for SelectUSA

Graphic stating: FDI IN THE USA, $4.34 TRILLION, 7.1 MILLION U.S. JOBS DIRECTLY SUPPORTEDThe data is in: the United States Bureau of Economic Analysis (BEA) released the most recent numbers for global foreign direct investment (FDI) into the United States, and they’re good news for the country’s continued prosperity. Total stock of FDI in the United States reached $4.34 trillion in value in 2018. This is an incredible $319.1 billion increase from 2017, when we had just surpassed $4 trillion in FDI.

Here is a breakdown:

  • The largest increases were in the industries of manufacturing, retail trade, and real estate.
  • Manufacturing accounted for 40.8 percent of the total FDI value in the United States, followed by 12.1 percent in finance and insurance.
  • Based on the country of the ultimate beneficial owner, five countries accounted for more than half of all the FDI in the United States. These countries aren’t just top sources of FDI – they represent the strongest economic relationships in the world. In order, they are: The United Kingdom, Canada, Japan, Germany, and Ireland.
  • Majority foreign-owned companies in the United States earned income of $208.1 billion on their cumulative investment in the United States. This is nearly 20 percent higher than in 2017.

To all of us at SelectUSA, this increase in investment is an assuring pat on the back but not a surprise. It reinforces what we know: America is the premier destination in the world for FDI.

As we look back at the BEA numbers of the past fiscal year, we are also looking toward a positive future. The 2019 A.T. Kearney Confidence Index ranked the United States as the nation likely to receive the most FDI in the coming three years. The World Bank’s Doing Business 2019 named us among the top nations globally for the ease of doing business—and number one among countries with populations more than 100 million.

This shows that the United States is doing all the right things to give companies the opportunities they need to be competitive. Businesses of all sizes have recognized that our huge consumer base, productive workforce, and pro-business policies here are unparalleled anywhere else in the world.

The U.S. economy is thriving and the continued increase in FDI will create even more career opportunities for hardworking Americans into the future. SelectUSA will continue to make sure that companies have all the resources they need to be successful in the United States.

To learn more about SelectUSA’s services, the U.S. business and investment climate, and how FDI benefits the U.S. economy, visit selectusa.gov and follow @SelectUSA on Twitter.

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The Next Investment Advisory Council is Here

August 13, 2019

Samuel Biddick is an intern at SelectUSA

Representatives from more than two dozen economic development organizations and business executives from across the United States will soon provide something invaluable to the federal government: their expertise on how the Administration can best attract and utilize the largest amount of foreign direct investment in the world. Today, Secretary of Commerce Wilbur Ross announced appointments to the department’s Investment Advisory Council (IAC). This group of 25 doesn’t only represents a diverse array of real-world business insight and experience; It represents the Department of Commerce’s continued commitment to American competitiveness.  

board meetingThe Council advises the Secretary of Commerce on strategies and proposals to ensure that the United States remains the world’s preeminent destination for foreign direct investment (FDI). This includes how policy should be developed, adapted, and expanded based on real market conditions. The diverse areas of expertise represented within the Council have allowed past appointees to make policy recommendations regarding issues including infrastructure investment priorities, improving U.S. workforce development initiatives, and creating/improving digital tools to support economic development – all to ensure that the United States remains the best place in the world to do business.

FDI is critically important to the nation’s continued economic growth and prosperity. It supports more than 14 million U.S. jobs and is responsible for $370 billion of U.S. goods exports. With a total FDI stock of $4.34 trillion, no other country attracts more business investment. The Department of Commerce aims to keep it that way. That’s why these 25 experts appointed to the IAC represent state and regional economic development teams, and global and domestic businesses from multiple industry sectors from across the United States. Their unique insight and recommendations will inform and strengthen the administration’s open-investment policy.

The new IAC will hold its first meeting soon, allowing new appointees to continue and build on the work of the first Council. We look forward to their recommendations and insight. For more information, including names and updates, please visit www.selectusa.gov/iac.

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Business Potential Met Business Opportunity at the 2019 SelectUSA Investment Summit

June 20, 2019

Brian Lenihan is the Executive Director of SelectUSA

The 2019 SelectUSA Investment Summit is over, but its impact is just beginning. Last week, thousands of people from all over the world converged on the Washington Hilton in Washington, D.C. to turn business potential into business opportunity. So much happened that I think it’s best to start with the numbers:

exhibition-hall

Exhibitors from the Economic Development Partnership of North Carolina greet attendees from the Indian delegation, June 12, 2019

  • More than 3,100 total attendees joined us, including 1,200 global business representatives from a record 79 international markets and over 700 economic development professionals and service providers from 49 states and territories.
  • Four Cabinet secretaries addressed the Investment Summit: Secretary of Commerce Wilbur Ross, Secretary of Housing and Urban Development Ben Carson, Secretary of the Treasury Steven Mnuchin, and Secretary of Energy Rick Perry – all of whom highlighted how each of their departments is working to keep the United States competitive and open for business.
  • More than 3,200 meetings were scheduled and confirmed through the online matchmaking app, meetings that may form the foundation of several investment deals.
  • Three international companies announced U.S. expansions, representing more than 125 new jobs and several million dollars in greenfield foreign direct investment (FDI) in Idaho, Ohio, and Colorado.
  • The Governor of Mississippi announced a $59 million investment by a California-based aerospace company in the Magnolia State.

Beyond the informative sessions, exciting news was made. Ivanka Trump, joined onstage by Secretary Wilbur Ross and Siemens USA CEO Barbara Humpton, announced that more than 65 global companies had committed to creating over 930,000 apprenticeship and training opportunities for U.S. workers as part of the White House’s Pledge to American Workers. “This is not only the right thing to do … it’s good business,” Trump said. “There is a positive return on investment for this continual investment in what is the best workforce in the world.”

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Secretary of Commerce Wilbur Ross moderates a fireside chat on workforce development with Advisor to the President Ivanka Trump and Siemens USA CEO Barbara Humpton, June 12, 2019

The SelectUSA Tech Startup Investment Spotlight was an exciting first for us, an intensive program of pitching sessions and networking designed to connect early-stage startups with U.S. investment opportunities. Forty companies made their pitch to U.S. incubators and accelerators, all with the goal of breaking into the world’s largest market. Three companies were chosen, all winning hours of legal consultations and media training by law firm Green & Spiegel and a business accelerator program in Silicon Valley. The winning companies are: Spanish artificial intelligence platform company Moonshot, Hungarian container manufacturing company Continest, and Israeli food-tech company DouxMatok.

Another first at the Investment Summit was Industry Row, where associations not only had the opportunity to exhibit and network with attendees, but to also present a 30-minute “State of the Industry” presentation for investors and EDOs alike.

Four different companies made news for another reason: investment projects valued at almost $100 million were announced in four states. Italian manufacturer Modula will invest $26 million in Franklin, Ohio to establish operations and create 100 jobs. Taiwan-based dairy product manufacturer Jetton Biochemistry Co., Ltd. chose Nampa, Idaho as the location of its next plant, a $2 million project that will create 25 jobs. Australian freight company MyFreight announced that it would invest $500,000 to establish operations in Denver, Colorado, part of an effort to duplicate its $40-million success from Down Under to the United States. Mississippi Governor Phil Bryant announced that California-based aerospace company Relativity Space will invest $59 million and create nearly 200 jobs at NASA’s Stennis Space Center in Hancock, Mississippi.

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Secretary of Commerce Wilbur Ross and Advisor to the President Ivanka Trump join more than 65 global companies to sign the Pledge to America’s Workers, June 12, 2019

It was an honor (and a thrill) to experience this international excitement firsthand. SelectUSA is the embodiment of the U.S. government’s commitment to creating an open, welcoming, and competitive business environment. It’s a program whose core mission is to promote job-creating FDI. The SelectUSA Investment Summit continuously delivers on that mission.

As I look back on another successful Investment Summit, I look forward to the American jobs that will be created as a result. To the world’s business investors, I say: The United States is open for your business, and SelectUSA is here to make sure you have the information and resources needed to invest and succeed here. To America’s hard-working economic developers, I say: Thank you for consistently—and expertly—driving investment into the United States – SelectUSA is here to assist you.

Thank you.

Learn more about SelectUSA and its services by visiting www.selectusa.gov. Stay in the SelectUSA know by signing up for email updates and following @SelectUSA on Twitter.

 

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US Senators Manchin and Capito Invite Global Business Leaders to Attend SelectUSA Investment Summit and Discover Why West Virginia is the Right Choice for Global Companies

June 7, 2019

This post is part of SelectUSA’s EDO Spotlight series, highlighting the work of EDOs around the country recruiting foreign direct investment, how that work supports jobs and economic growth across the United States, and how SelectUSA partners with EDOs to support economic development.This post contains external links. Please review our external linking policy.

Sara B. Dearing is the Executive Director of Discover the Real West Virginia Foundation

West Virginia is the premier location for global companies to expand and relocate. Companies that come to West Virginia are met with a thriving business climate, a dedicated and technically-trained workforce, low cost of doing business, an abundant and inexpensive supply of energy – and unending support from our local, state and federal leaders. manchin-capito_play-button

West Virginia’s U.S. senators not only play a hands-on role when it comes to attracting investment, they are dedicated to ensuring that companies that do invest in West Virginia, succeed.  This unwavering commitment to helping global companies find a home in the Mountain State is why Senators Joe Manchin and Shelley Moore Capito have teamed up to invite global executives to attend the SelectUSA Investment Summit and to join them at the West Virginia Booth (#714) for the State and Local Night Reception on June 11. Additionally, our senators invite business leaders to attend the West Virginia Spinoff Event, June 13-14, in Wheeling, West Virginia.

Here’s just a few reasons for global executives to choose West Virginia:

  • West Virginia is home to 136 global companies (including Toyota, Gestamp, Covestro, Novartis, TransCanada, Sogefi, Safran, and more) representing 30 countries from around the world with a diverse manufacturing base of industries including aerospace, automotive, chemical and polymers, energy, defense, and information technology, to name a few.
  • West Virginia has the strategic advantage of being in a region with the most cost-effective and abundant natural gas in the industrialized world. This region is right in the middle of half the U.S. market, and close to over two-thirds of U.S. polyethylene consumption.
  • West Virginia (located in Shale Crescent USA) is the most profitable place to locate petrochemical and other manufacturing plants. In fact, Yahoo Finance, the US Department of Energy, oilprice.com and others are calling this region “a second U.S. Petrochemical Hub”.
  • According to the American Chemistry Council, the Appalachian Region is uniquely positioned over the next decade to become a major petrochemical hub with the potential to attract $36 billion in new chemical and plastics industry investment.

It’s not just the aesthetic beauty of the state and its abundant natural resources that make West Virginia a great place to do business.  Deep down, it’s the people that make West Virginia a world-class location, and a state dedicated to providing the resources to elevate your company to the next level. Please come and meet our team, including Senators Manchin and Capito, at the SelectUSA Investment Summit, then join us in Wheeling for our spinoff event, and let’s get down to business.

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The 2019 SelectUSA Investment Summit: Ivanka Trump, Larry Kudlow, Tech Startups & More

June 6, 2019

Brian Lenihan is the Executive Director of SelectUSA

The SelectUSA Investment Summit brings global companies together with economic developers from across the United States, all for one purpose – to connect global business to local investment opportunities. I am honored and thrilled to say that this year’s Investment Summit will feature special guests from the White House. Advisor to the President Ivanka Trump and National Economic Council Director Larry Kudlow will provide keynote remarks to more than 3,000 attendees on June 11-12. Both will focus on how business investment and SelectUSA play key roles in America’s economic resurgence.susa graphic

Their inclusion in the program is further evidence of the Administration’s dedication to creating a pro-growth business environment where the world’s companies can flourish. It is also further evidence that the 2019 SelectUSA Investment Summit is the premier business investment event in the United States.

Global companies directly support more than seven million U.S. jobs, and SelectUSA is working to increase that number. But we are also dedicated to working with national and international stakeholders to ensure that American workers are equipped with the skills and education needed to succeed in the 21st century. That’s why Ivanka Trump will join Secretary of Commerce Wilbur Ross and Siemens’ U.S. CEO Barbara Humpton for a panel discussion on workforce development. Later that day, they will join several international business attendees for the signing of the Pledge to America’s Workers, a commitment to expand training and education for the U.S. workforce.

On Monday, the Investment Summit will commence with the Academy, a one-day series of educational panel discussions and presentations designed to get everyone up to speed with the latest trends in foreign direct investment (FDI). These in-depth sessions provide a foundation for attendees, giving them the tools, strategies, and information needed to turn business potential into business opportunity.

The following two days will offer an exciting mix of SelectUSA firsts and mainstage sessions on a wide array of topics: advanced manufacturing, artificial intelligence, workforce development, and more. Executives from Royal Dutch Shell, Siemens, Intel, SoftBank Group, and many more will share their experience and insight. New this year will be several industry-focused discussions between U.S. governors on how their states are working to attract, retain, and grow FDI. Of course, new investments will be announced in the Exhibition Hall as well.

The new features don’t stop there. The first-ever SelectUSA Tech Startup Investment Spotlight will feature dozens of early-stage tech startups eager to jump into the U.S. market. These companies will pitch their products and designs directly to U.S. investors, incubators, accelerators, and economic developers. In other words, it will be a match made in startup heaven.

The involvement of Ivanka Trump and Larry Kudlow and the addition of SelectUSA Tech promise to make this Investment Summit an incredible success. If you are unable to attend this year, I invite you to watch the livestream at SelectUSA.gov/newsroom and follow @SelectUSA on Twitter for on-the-ground updates.