Manufacturing projects into the US have increased over the past seven years, with the most impressive growth coming from Indiana.
According to fDi Markets data, the US has seen the number of manufacturing projects between 2008 and 2009 increase by 26.7% – in 2009, 611 new projects were created, compared with 251 projects in 2003. There was a total of 2614 new projects created over the 2003 to 2009 period.
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Among the US’s 50 states, North Carolina remains the main investment destination, with 196 projects recorded between 2003 and 2009, while Indiana has experienced the most substantial rise in project numbers. Despite a drop between 2007 and 2008, the state fought its way back, with a 72.97% rise in 2009 on 2008 figures.
Starting from a low base, Indiana recorded an increase in projects of more than 600% between 2003 and 2009. In total, 180 projects have been launched to date. The mid-western state has been successful in attracting substantial sources of investment; for example, the automobile giant Toyota Motor plans to spend about $500m to upgrade its Princeton, Indiana, SUV-assembly plant.
Some other states also managed to draw in more manufacturing projects after the financial turmoil. Texas recorded 42 projects in 2009 compared with 27 in 2008, while Ohio’s project numbers jumped from 18 to 30 over the same two years, and California’s rose from 11 to 28 during the same period.
However, it is not all good news – Alabama is among the states where project numbers did not rise between 2008 and 2009. In both years, 15 manufacturing projects were launched in Alabama. However, there is a ray of light in terms of greenfield manufacturing jobs – AdduXi, which specialises in high-precision insert moulding of automotive electronics, has announced that it will open a moulding facility in Elkmont, Alabama, within the next two years.
Only a few states have experienced a drop in project numbers since 2008. South Carolina saw its number of manufacturing projects decrease by 25% in 2009 and Tennessee saw a drop from 28 to 20 projects. Overall, the US’s performance for the manufacturing sector in 2009 bucked the downward FDI trend faced the previous year.
Cecile Sourbes