Transcript Swedish FDI into the United States

Foreign Direct Investment
in the United States
Tazeem Pasha
SelectUSA
U.S. Department of Commerce
Washington, DC
SelectUSA.gov
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Swedish FDI into the United States
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Swedish FDI
$400
$350
Historical FDI Stock, in $billions USD
$300
$250
INBOUND
$200
OUTBOUND
$150
$100
$50
$0
1990
$70
1994
1998
2002
2006
2010
Capital Flows, in $billions USD
$60
$50
$40
INWARD
$30
OUTWARD
$20
$10
$0
1990
Source: UNCTAD
1994
1998
2002
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2006
2010
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FDI and the U.S. Economy
Top 10 FDI Positions in the United States, 2009
24% | $557.9b
11% | $259.6.1b
9% | $119b
11% | $251.2b
12% | $271.9b
5% | $119b
4% | $88.4b
2% | $47.5b
2% | $45.4b
2%|$48.4b
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FDI and the U.S. Economy
Top 10 FDI Growth Countries in the United States, 2009
38% | $45.4b
28% | $3.8b
51% | $47.5b
34% | $2.3b
43% | $11.6b
31% | $2.4b
35% | $5.5b
45% | $34.2b
63% | $24b
41% | $2.6b
Note: Numbers denote 5 year compound annual growth rate and total investment position in United States
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FDI and the U.S. Economy
Industry breakdown of total U.S. FDI stock ($2.3 trillion)
Professional
Food
&Technical
3%
services
Other
2%
22%
Manufacturing
34%
Chemicals
Other
26%
manufacturing
31%
Real Estate
2%
Finance and
Insurance
13%
Depository
Institutions Information
5%
6%
Primary
Wholesale
trade
Transportation
fabricated metals
14%
equipment
6%
Retail trade
12%
Machinery
2%
Source: Department of Commerce, Bureau of Economic Analysis
12%
Electrical
Computers,
equipment
electronics
3%
7%
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U.S. FDI Trends
European Direct Investment the United States
Average Annual Growth Rate of
FDI Positions by Stock
FDI Positions by Stock
Italy
Ireland Spain Belgium
2% Other 1%
3%
2%
5%
Sweden
3%
Luxembourg
8%
60%
50%
United
Kingdom
27%
40%
30%
20%
Switzerland
11%
10%
Netherlands
14%
France
11%
Total:
$1.4 Trillion
0%
Germany
13%
Source: Department of Commerce, Bureau of Economic Analysis – FDI by Ultimate Beneficiary Owner
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FDI and the U.S. Economy
5.3 million
Workers Employed by U.S. Affiliates of Foreign
Firms in the U.S. in 2009
$49 billion
Amount U.S. Affiliates of Foreign Firms spent on
R&D in the U.S. in 2009
$85 billion
Amount U.S. Affiliates of Foreign Firms Reinvested
into the U.S. Economy in 2010
$228 billion
$449 billion
Size of FDI Flows into the U.S. in 2010
Amount of Wages Paid to Employees of U.S.
Affiliates of Foreign Firms in 2009
25 percent
U.S. Affiliates of Foreign Firms Pay on Average 25
percent Higher Wages and Salaries than U.S.
Establishments
18 percent
U.S. Affiliates of Foreign Firms Generate 18 percent
of all U.S. Exports as of 2008
Source: Bureau of Economic Analysis, 2009
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FDI – Sweden to U.S.
172 thousand
$57 billion
$8 billion
Workers employed by U.S.
affiliates of Swedish firms
Asset value of U.S. affiliates of
Swedish firms
Annual wages paid to employees of
U.S. affiliates of Swedish firms
$4.15 billion
Exports by U.S. Affiliates of
Swedish firms in the U.S.
$508 million
R&D spending by U.S.
Affiliates of Swedish Firms
Source: U.S. Bureau of Economic Analysis , 2009
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Swedish FDI into the U.S.
Recent Announcements:
September 2011 - Atlas Copco opened its 13th US store in Pompano
Beach, Florida. It will support the large customer base already in southern
Florida and will respond to the many aftermarket requests for Atlas Copco
parts and services from the Miami area. The location will take advantage
of the strong road construction market in the area.
July 2011 – Home appliances manufacturer Electrolux is set to
expand its plant in Anderson County, South Carolina, creating 12 to
14 engineering jobs by 2016. The company plans to invest $48m in
its facility, which will enable it to enhance its products and
manufacturing operations in the refrigeration sector.
June 2011 – Single use surgical products supplier Molnlycke has
broken ground on a 7340 sq m research and production plant in
Brunswick, Maine. The new facility is expected to create more than 100
jobs and will be complete in June 2012. The Midcoast Regional
Development Authority is borrowing $13m to help build the plant, whilst
Molnlycke will invest $12m in equipment to stock the laboratories and
manufacturing lines.
Source: fDi Markets
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The U.S. Business Climate
#1
World Economic Forum’s 2010-2011 Global
Competitiveness rankings on Innovation
France: #19
Germany: #8
UK: #14
#1
IESE Business School’s 2009-2010 Venture Capital
and Private Equity Index
#2
AT Kearney’s 2010 FDI Confidence Index
#4
World Economic Forum’s 2010-2011 Global
Competitiveness rankings
France:
#14
France: # 13
France: #15
Germany: #10
Germany: #5
Germany: #5
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UK: #2
UK: #10
UK: #12
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The United States:
A Great Return on Investment
• Strategic Market & FTAs
Population of U.S. and FTAs is 610 million; U.S. 42% of Global Consumer Goods Market
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• Center for Global Innovation and Entrepreneurship
U.S. Responsible for 36% of Total World R&D Expenditures (EU-27 accounted for 24%);
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Average 558,000 new businesses created per month in 2009
• Strong Intellectual Property Right Protections
50.1%of the Patents Granted in 2009 by the U.S. Patent Office Originated from a Foreign Country
• A Leader in Higher Education
15 of the top 20 universities in the World (Europe has 4 of the top 20)
• Productive Workforce
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U.S. labor productivity grew 2.3% in 2009 (France: -1%, Germany: -2.3%, UK: -2.5%)
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• Open to People, Cultures, and Ideas
1. Office of the U.S. Trade Representative; Central Intelligence Agency – The World Factbook; and Credit Suisse survey; 2 National Science Foundation
Science and Engineering Indicators 2010; Kauffman Index of Entrepreneurial Activity 1996-2009; 3. U.S. Patent and Trademark Office; 4. The Times Higher
Education Report 2010-2011 (U.K.); 5. OECD Labor Productivity Statistics
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Strategic Market & FTAs
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About SelectUSA
SelectUSA was created by the
Executive Order of the President
of the United States in June 2011.
The Executive Order outlines:
1.
The Administration’s policy on
business investment
2.
The establishment and
functions of the SelectUSA
initiative
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My Administration is committed to ensuring that the
United States continues to be the most attractive
place for businesses to locate, invest, grow, and
create jobs. We encourage and support business
investment from sources both at home and abroad.
- President Barack Obama, June 20, 2011
Source: The White House Press Office, “Statement by the President on United States Commitment to Open Investment Policy” www.WhiteHouse.gov
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Thank you
Tazeem Pasha
SelectUSA
U.S. Department of Commerce
Washington, DC
Tel: 202-482-0648
Email: [email protected]
SelectUSA.gov
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