fDi Markets Newswire:

Home / News / US manufacturing sector enjoys rising FDI

Contrary to popular perceptions, FDI into US manufacturing has been going up over the past decade, at an average 9% per year. Timothy Conley reports.

Despite claims by US president Donald Trump, FDI in the US manufacturing sector has been steadily increasing since 2006.

As both a candidate and now as president, Mr Trump has criticised foreign firms for “stealing” US manufacturing jobs, most notably through the use of multilateral trade deals, such as the North American Free Trade Agreement and the Trans-Pacific Partnership. 

During a Pennsylvania campaign rally in June 2016, Mr Trump claimed that US politicians “have aggressively pursued a policy of globalisation, moving our jobs, our wealth and our factories to Mexico and overseas”.

Yet his consistent attacks on globalisation overlook the importance and growing presence of FDI within the US manufacturing sector. In fact, the sector has attracted more FDI in the past decade than any other, including $1200bn in 2015, according to a report released by SelectUSA, the investment promotion agency of the US Department of Commerce.

During the past decade, FDI in US manufacturing has increased at an average rate of 9% per year, with an average FDI inflow of $132.9bn over the past five years (2011-15), according to US Bureau of Economic Analysis data as per the report.

The top source markets for US manufacturing by total FDI share are the UK (17%), Ireland (14%), Germany (11%), and Japan (10%). Most notably, the total share of Irish FDI in the US manufacturing sector has increased from 1.5% in 2006 to 14% by the end of 2015, as recorded by the US Department of Commerce.

The US manufacturing sector includes several underlying industries, such as food, transportation and computer electronics. By the end of 2015, the chemicals industry received 39% ($475.7bn) of all manufacturing FDI, making it the largest FDI recipient within the sector.

Foreign-owned affiliate companies were responsible for the creation of 2.4 million manufacturing jobs nationwide in 2014. California was the largest employer of FDI-supported manufacturing jobs in 2014 with 209,500, according to the Department of Commerce. The state’s largest source of greenfield foreign investment is the chemicals industry, according to data compiled by crossborder investment monitor fDi Markets.

Foreign investors consider the US as an ideal manufacturing destination, based on its “skilled workforce availability” and “close proximity to markets or customers”, fDi Markets found.

This article is sourced from fDi Magazine
fDi Magazine

fDi Markets - request a demo

fDi Markets

Crossborder investment monitor

fDi Markets - Cross border investment monitor

fDi Markets is the only online database tracking crossborder greenfield investment covering all sectors and countries worldwide. It provides real-time monitoring of investment projects, capital investment and job creation with powerful tools to track and profile companies investing overseas.

Click here to find out more about fDi Markets

Corporate location benchmarking tool

fDi Benchmark is the only online tool to benchmark the competitiveness of countries and cities in over 50 sectors. Its comprehensive location data series covers the main cost and quality competitiveness indicators for over 300 locations around the world.

Click here to find out more about fDi Benchmark

Research report

fDi Intelligence provides customised reports and data research which deliver vital business intelligence to corporations, investment promotion agencies, economic development organisations, consulting firms and research institutions.

Find out more.
Follow us on Twitter

By continuing to use this site you consent to the use of cookies on your device as described in our cookie policy unless you have disabled them. You can change your cookie settings at any time but parts of our site will not function correctly without them.