Posted at 1:58 PM
In connection with Made in America Week (July 17 – 21 2017), SelectUSA is proud to highlight the unique advantages of “Made in America” and the important role that foreign direct investment (FDI) plays in U.S. manufacturing.
Manufacturing in the United States is a significant driver of U.S. economic growth, featuring a higher gross output than any other private sector industry. The United States attracts innovative and industrious manufacturers from a wide variety of industries around the world. And U.S. affiliates of foreign-owned firms are playing a significant role in this production renaissance.
According to the latest available data from the U.S. Bureau of Economic Analysis, the total value (stock) of foreign direct investment (FDI) in manufacturing reached $1.2 trillion in 2015 – higher than any other sector – comprising nearly 40% of total FDI stock in the nation. Moreover, FDI in U.S. manufacturing is growing at an average annual rate of nearly nine percent, one of the fastest growth rates in the country.
There are many reasons why global manufacturers choose the United States. Made in America represents high-quality, reliability and service to increasingly demanding global consumers. Proximity to customers in the world’s largest market, access to raw materials, and independent, low-cost energy sources help U.S. manufacturers minimize supply chain risks and reduce costs. A thriving innovation ecosystem encourages game-changing product and process innovation. U.S. workers are among the most productive in the world – a key reason why more than 2.4 million U.S. jobs in manufacturing are supported by FDI. And for many, manufacturing in America is not only key to making it in America – but also to their global success.
Take German automaker BMW. The company’s Spartanburg, SC, plant encapsulates its commitment to manufacturing, selling and exporting U.S.-made cars. What began as a facility with a few hundred workers has blossomed into BMW’s largest manufacturing plant in its global network, employing nearly 10,000 U.S. workers.
Chinese chemical company Wanhua Chemical is building a $1.1 billion chemical manufacturing plant in St. James Parish, LA. The massive complex will lead to the creation of more than 1,100 jobs. When the plant is fully operational, it will produce a chemical found in numerous products from a variety of industries, including insulation foam, footwear and furniture.
LINAK U.S. Inc., a Danish linear actuator manufacturing company, recently announced it was doubling the size of its Louisville, KY, plant, which was established almost 20 years ago. The $33 million expansion will result in higher production efficiency, lower costs, and most importantly, more than 400 new jobs. When fully staffed, the facility will support over 700 U.S. jobs.
Stories like these show that when global companies choose the United States, it’s a win-win. When they select the USA, they’re tapping into a vast consumer market. Additionally, they are able to utilize one of the most competitive export platforms in the world. Put simply, “Made in America” is good for business, good for consumers and good for American workers.
To read more about the advantages of investing in the United States, please visit SelectUSA.gov.