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Blog Category: Foreign Direct Investment

2015 SelectUSA Investment Summit Off to a Roaring Start

Secretary Pritzker welcomes President Barack Obama to the 2015 SelectUSA Investment Summit

With more than 2,600 people from more than 70 markets, and economic development organizations from all corners of the United States, the 2015 SelectUSA Investment Summit has record attendance. In fact, it is more than twice as large as the inaugural 2013 event and reflects growing global interest in the United States as a place to launch and expand operations, invest in research and development, and create jobs.

Day One of the 2015 SelectUSA Investment Summit just concluded and what an exciting day it was. We were honored to have President Obama speak and announce some new initiatives to make investing and expanding within the United States even easier.

He announced that the U.S. Citizenship and Immigration Services will increase clarity around the adjudication of the L-1B non-immigrant visa that allows international companies to temporarily deploy workers with specialized knowledge to the United States when launching or conducting operations here. This long-anticipated policy guidance is of particular interest to global companies participating in today's SelectUSA Investment Summit.

Commerce Secretary Penny Pritzker will establish the first-ever federal advisory committee to solicit formal input on the development and implementation of strategies and programs to attract and retain foreign direct investment in the United States.

Finally, SelectUSA will continue to improve investment tools, enhance trainings for investors, and expand partnerships with state economic development organizations. A new partnership platform will improve state-federal coordination, inform SelectUSA services and programs, and promote high standards in investment-promotion activities across the country.

Innovation and Software are the Reasons to Select the USA

Eric A. Spiegel, President and CEO, Siemens USA

Guest blog post by Eric A. Spiegel, President and CEO, Siemens USA

Today, as part of the Select USA Investment Summit, I had the honor of joining an impressive group of business leaders, international investors and experts for an in-depth conversation about how innovation and R&D is helping to fuel private sector investment, and why the United States is poised for tremendous growth. 

I’d like to applaud U.S. Commerce Secretary Penny Pritzker for bringing together more than 2,500 participants representing 60 countries, drawing international attention to the U.S. as a premier country to invest in at such an optimal time.  International companies representing countries from around the globe, such as Germany, contribute largely to Federal Direct Investment (FDI) and find the U.S. an attractive place to invest.  And Siemens does too.

To give you a little bit of background, Siemens is one of the world’s oldest and biggest companies.  Having been in the U.S. for over 150 years, we currently employ nearly 50,000 people throughout all 50 states and Puerto Rico.  We have more than 70 manufacturing sites in the U.S. and invest more than $1 billion annually in R&D here. 

The U.S. has become an innovation engine for Siemens.  It is not only our largest market, but is also an extremely vital production location, one of our most important research centers and a key base from which we export to the rest of the world.  Siemens has invested over $35 billion in America over the past decade, including over $10 billion in the past year alone.

So why invest in the U.S.?  As a global company, when we are looking for a new location to invest or to manufacture, we consider many factors and there are several which are unique to the U.S. market, giving it a leg up on the competition.

  1. Strong ecosystem for innovation and R&D
  2. World-class colleges and universities
  3. Leadership in software and the digital economy

It’s clear that the primary trait that sets the U.S. apart as a unique and unrivaled place to invest is an undeniable spirit of innovation. The U.S. has an environment of innovation, collaboration and talent that is unmatched anywhere in the world. 

SelectUSA Works for Puerto Rico

Alejandro J. García-Padilla, Governor of the Commonwealth of Puerto Rico

Guest blog post by Alejandro J. García-Padilla, Governor of the Commonwealth of Puerto Rico

Almost a year after we announced that Lufthansa Technik would establish an aircraft maintenance, repair and overhaul (MRO) facility in Puerto Rico, we are getting ready to celebrate the 2015 SelectUSA Investment Summit.

With an estimated economic impact of $2.2 billion over a 30-year period, Lufthansa Technik’s decision to establish an MRO site in Puerto Rico is a major strategic advancement for the Commonwealth’s economic development plan. The facility is well under construction and has secured JetBlue and Spirit Airlines as customers. The MRO is expected to begin servicing customers later this year.

Since I took office in January 2013, I have sought to diversify Puerto Rico’s economy by attracting foreign direct investment like Lufthansa Technik, a leading manufacturer and independent provider of technical services for the aviation industry.

And make no mistake, investing in Puerto Rico is investing in the United States. That is why, with the help of the Commerce Department’s Select USA program, we sought out Lufthansa Technik to create jobs that capitalize on the highly skilled workforce that our Island’s university system trains.

The MRO facility is helping to grow Puerto Rico’s aerospace and aviation industry, create high-skilled jobs, and stimulate science, technology, engineering and math (STEM) education. By 2016, up to 400 highly skilled workers will be employed there. Puerto Rico now has the infrastructure to train new aircraft mechanics, with the brand new Aerospace and Aviation Institute of Puerto Rico under development.

This deal was just the beginning of an exciting partnership between Puerto Rico and SelectUSA.  The Lufthansa Technik site is causing a positive ripple effect in the economy, spurring the growth of MRO suppliers.

I also recently announced that business technology consulting firm Infosys BPO will open a new center in Puerto Rico to serve the Island’s growing aviation sector. This investment is another example of foreign direct investment brought on by the ripple effects of the Lufthansa MRO. Infosys will utilize this new center to deliver complex order-to-cash business processes for clients in the aviation industry and create over 200 jobs. The company is looking to further expand its footprint in the region to service clients in the federal government sector and the healthcare industry.

I commend the work of President Obama’s Administration, which was instrumental in bringing Lufthansa Technik to the United States and creating hundreds of well paid jobs in Puerto Rico. I also express my deep gratitude to Vice President Biden, Secretary Pritzker and the SelectUSA Program for making these investments a reality.

The investment from Lufthansa Technik and its impact in the economy are proof that SelectUSA works. We look forward to a long partnership with SelectUSA.  

SelectUSA 2015 Investment Summit Highlighting United States As Premier Investment Destination

There is no time like the present to invest in the United States. In fact, the U.S. is rated #1 in the latest A.T. Kearney Foreign Direct Investment Confidence Index for the second year in a row, with the highest net positive rating in the index’s 16-year history. 

With an incredibly attractive consumer market, a thriving culture of innovation, and the most productive workforce, the U.S. has shown itself to be an economic powerhouse. Companies of all sizes – big or small, startup or multinational– can benefit from the ideas, resources, and markets the U.S. offers in order to become a globally competitive nation. Because of these reasons, the U.S. proudly welcomes international investment. 

When deciding to invest in the U.S., firms can look at five factors: 

  1. Market: The U.S. is home to the most attractive consumer market and serves as a competitive export hub to the rest of the world. Free trade agreements with 20 nations give U.S.-based exporters better access to markets with more potential consumers.
  2. Economic Growth: During 2013 to 2014, Real GDP grew at a 2.8 percent annual pace. The private sector successfully expands with the longest streak on record for job growth.
  3. Business-Friendly Environment: The U.S. offers a transparent, fair and stable business environment and thriving capital markets to support developing companies.
  4. Innovation: As a world leader in research and development (R&D) and intellectual property protection, the U.S. provides a productive environment for innovation. Firms can improve their competitiveness by associating with research institutions and employing leading-edge manufacturing techniques.
  5. Resources: There is a manufacturing renaissance occurring due to the diversified resources, low cost energy and a well-educated workforce. 

These compelling factors and more will be on display at the 2015 SelectUSA Summit next week.   The two-day Summit, March 23-24, is the premier event for those considering an investment. The event will feature nearly 600 representatives from nearly every state and territory, providing ample opportunity for investors to find the information needed to make investment decisions and connect with the right people at the domestic level. Many states, territories, cities, and regions are also hosting booths in the Summit exhibition hall to connect directly with investors.

All year round, SelectUSA coordinates federal agencies to address investor concerns relating to federal regulations. This year, representatives from 20 federal agencies will be on-site at a U.S. Government Pavilion in the Summit exhibition hall to meet face to face with investors, as well as state and local representatives. 

The Summit is at capacity with more than 2,600 people registered from more than 70 markets, doubling the size of the inaugural event in 2013. President Barack Obama will give the keynote address on the first day.  Other Administration officials delivering remarks include Commerce Secretary Penny Pritzker, Secretary of State John Kerry, Secretary of the Treasury Jacob J. Lew, Secretary of Agriculture Thomas Vilsack, Secretary of Labor Thomas Perez and Secretary of Transportation Anthony Foxx. Some of the world's top CEOs will be there to discuss the advantages of investing in America and the jobs it creates. Among the executives speaking at the event will be Eric Schmidt, Executive Chairman of Google, and David Rubenstein, Co-Founder and Co-CEO of the Carlyle Group, the world’s largest equity firm.

North Carolina Attracts FDI in Manufacturing and Textiles

Under Secretary Stefan Selig (seond from left) participates in a ribbon cutting ceremony with North Carolina Governor Pat McCrory (left) PEDS Legwear President and CEO Michael Penner and Walmart Vice President of U.S. Manufacturing Cindi Marsiglio

Cross blog post by Stefan M. Selig, Under Secretary of Commerce for International Trade

On Wednesday afternoon, I delivered remarks in Hilderbran, North Carolina at a ribbon-cutting ceremony where we officially opened the new Canadian-based Peds® Legwear (PEDS) production facility. PEDS’ recent $16 million investment in the plant and new machinery has allowed the company to hire North Carolina factory workers who were previously laid off. By 2018, this new facility will bring more than 200 jobs to Hildebran, providing a lift to the local economy.

SelectUSA, our program to attract foreign direct investment (FDI), along with our Commercial Service Canada team, helped facilitate this deal. SelectUSA provided counseling to PEDS on how to navigate the federal regulatory process and also helped identify sources of federal funding. In addition to PEDS’ investment in the Hildebran facility, the company plans an additional $8 million venture, bringing their total investment in the United States to $24 million. In less than two weeks, similar FDI deals will be highlighted at this year’sSelectUSA Investment Summit, which will take place March 23-24.

In addition to ITA’s support, PEDS’ new investment is made possible because of a multi-year purchase order contract from Wal-Mart as part of the retailer’s commitment to buy domestically produced goods.

As I noted in my remarks—before an audience that included Michael Penner, president and CEO of Peds®Legwear; Cindi Marsiglio, Wal-Mart’s vice president of U.S. manufacturing; and North Carolina Governor Pat McCrory—PEDS’ investment in the facility shows our nation’s prowess to attract FDI.

Because the United States offers a transparent, fair, and stable business climate, as well as our second-to-none workforce, many global companies like PEDS are beginning to establish or expand operations here. In fact, in 2013, U.S. FDI inflows totaled $231 billion, of which $51 million was invested in U.S. textile and apparel manufacturing. In 2012, majority-owned U.S. affiliates of foreign firms accounted for $48 billion in R&D expenditures, exported $334 billion worth of U.S. goods exports, and employed nearly 6 million workers.

To keep the momentum, ITA will continue to develop opportunities for U.S. workers and businesses by promoting international trade, encouraging FDI, and working to foster a level playing field for American products and services.

San Antonio MBDA Business Center’s Export Strategies Support Foreign Direct Investment

Look South logo

The San Antonio MBDA Business Center’s specialty is helping minority businesses (MBEs) find exporting opportunities in Latin America. Aligning with White House initiatives such as Look South, the center has assisted numerous MBEs develop international market entry strategies that vary by sector, size, capabilities, targeted countries and regions

The MBDA Business Center’s San Antonio Global Pathways Initiative has proven to be a conduit of global opportunities for domestic MBE clients. As a result of this success, some clients have engaged in partnerships with foreign enterprises.

“One of the tasks associated with the services we offer MBE’s preparing to export is to assist them with business to business relationships,” said Orestes Hubbard, Director of the San Antonio MBDA Business Center. “This service creates a two way opportunity for our client that sometimes serves as a platform to bring foreign direct investment into the U.S.”

BBM Staffing, LLC, a Mexican staffing services company, is an example of the benefit of the business to business relationship concept. The center has helped BBM Staffing, LLC expand their presence in Texas by helping them gain access to markets and capital for their operations.

2015 Will Be the Biggest Year Yet for International Opportunities for Regional Economic Development

JoAnn Crary, CEcD, President of Saginaw Future, Inc. and 2015 Chair of the Board of Directors of the International Economic Development Council

Guest blog post by JoAnn Crary, CEcD, President of Saginaw Future, Inc. and 2015 Chair of the Board of Directors of the International Economic Development Council

2015 is off to a great start for International Economic Development Council (IEDC) and I am excited and honored to spend the next 12 months as the Chair of our Board of Directors. In this capacity, I will be traveling the globe and conferring with my fellow economic developers on many of the pressing issues and opportunities our profession is facing. One event I am particularly looking forward to attending is the 2nd SelectUSA Investment Summit. Having attended the first Investment Summit in 2013, I can personally attest to the value of coming to Washington to meet with colleagues from across the U.S., hundreds of international investors – I’m told this year’s summit will feature twice as many investors – and hear from a robust speaking program featuring top administration leaders in foreign direct investment attraction.

Foreign direct investment has proven to be a vital tool in the economic developer’s toolbox in the years following the Great Recession. In my own community, Saginaw, Michigan, it has contributed to the creation or retention of thousands of jobs over the past five years. One company, Nexteer, has invested hundreds of millions of dollars in expanding their operations in Saginaw, which has resulted in thousands of jobs being created or retained. As an economic developer, I cannot overstate the importance of the resources that SelectUSA has provided my organization and countless others within my profession. Simply put: SelectUSA brings clarity, focus and action to the role of the federal government in supporting FDI attraction at the local, regional and state level. They are an essential partner in the work of economic developers to create jobs and improve the quality of life in our communities. They are also a valued partner of IEDC in Washington and have played a key role in raising the profile of our profession over the past few years.

2015: The Year to Launch and Scale in the United States

SelectUSA Tech in Dublin – Legal, Visa, Insurance and Tax Considerations for U.S. Expansion (June 25, 2014)

By John D. Breidenstine, Minister Counselor for Commercial Affairs, U.S. Embassy, London

The United Kingdom and Ireland are both home to flourishing tech startups looking for the right opportunities to grow globally.  The United States is the logical target for their expansion, especially given its 320 million consumers, free trade agreements with 20 other markets, and massive market for technology purchases. 

Furthermore, there is plenty of precedent.  Companies from the UK and Ireland have outstanding track records of succeeding in our country. The UK is the largest source of foreign direct investment (FDI) in the United States, with $564.7 billion total stock as of 2013.  According to the Commerce Department’s Bureau of Economic Analysis, affiliates of UK companies in the United States are responsible for more than 962,900 American jobs.  Ireland is the eighth largest source of FDI, whose investors are responsible for more than $117 billion stock as of 2013 and 168,900 U.S. jobs as of 2012. 

Startups can also tap into the incredible resources available in the United States. Our entrepreneurial culture is the perfect business climate for startups to thrive. Just look at the numbers: According to the Kauffman Foundation’s Index of Entrepreneurial Activity, an average of 476,000 new businesses were created each month in 2013. The United States leads the world in innovation and intellectual property protection, accounting for roughly 30 percent of global research and development (R&D).  In 2012 alone, companies from the U.K. and Ireland combined spent nearly $9 billion on R&D in the United States, contributing significantly to the intellectual diversity of all three countries.

So how can SelectUSA, the U.S. government-wide program to facilitate investment into the United States, help even more companies to make the leap across the Atlantic?  SelectUSA provides information, connects businesses with the right people, and helps investors navigate the federal government (learn more about our full range of services).  In addition, the Commercial Service (CS) in the U.K. and Ireland launched a new initiative in 2014—SelectUSA Tech—to give early-stage technology companies the tools that they need to launch their businesses in the United States.

SelectUSA Tech’s 2014 “boot camp-style” events in London, Dublin, Edinburgh and Belfast brought together public and private-sector experts to address legal, tax, accounting, insurance, and visa/immigration issues, while also covering how tech entrepreneurs can access U.S. buyers, venture capital, debt financing, and general banking services. A final, key component of the events has been a “lessons learned” panel of local startups, who share their experiences launching and scaling stateside.  

For more information about SelectUSA Tech Seminars, check out the flyer from September’s Edinburgh event or the highlights reels from our London or Dublin events.  We also regularly participate in tech conferences and at incubator briefings. For example, over the course of a single week in October, CS UK held a SelectUSA Tech Seminar in Belfast, hosted a LDNY (London-New York Festival) #scaling2cities tech entrepreneur event at the U.S. Embassy, and co-sponsored “The Transatlantic Startup” event organized by the Global Innovation Forum

Startups can also learn more about the U.S. market at the 2015 SelectUSA Investment Summit coming up in March, which will enable entrepreneurs to meet with economic development offices from across the United States, all in one building.  The day before the Summit, we’ll also be holding a SelectUSA Academy to present the basics of investing and launching a business in the United States at a level of detail that will be particularly useful for startups and entrepreneurs.

To learn more about our SelectUSA Tech, please follow us on Twitter @SelectUSATech.

2015 SelectUSA Investment Summit is Now Open for Business

2015 SelectUSA Investment Summit is Now Open for Business

Guest blog post by Secretary Penny Pritzker 

In my first year as Secretary, one of my proudest moments was welcoming international investors to the 2013 SelectUSA Investment Summit. Alongside President Obama, Secretary of State John Kerry, Treasury Secretary Jack Lew, Labor Secretary Thomas Perez, and U.S. Trade Representative Michael Froman, we made it clear that America is “Open for Business.” 

As 2015 begins, we are moving full speed ahead with registration for the second SelectUSA Investment Summit, which will take place in the DC metro area on March 23-24, 2015. 

In November, the Bureau of Economic Analysis (BEA) released new data showing why efforts to attract international investment are so important. U.S. affiliates of foreign firms employed 5.8 million people in the United States in 2012. These companies spent $48 billion on U.S. research and development, and they exported nearly $344 billion worth of goods manufactured in the United States. In 2013, the United States attracted $231 billion in FDI, up from $170 billion in 2012. 

There has never been a better time to consider establishing or expanding operations in the United States, and it is clear that investors recognize the opportunities that America offers.  We are home to an attractive consumer market, a thriving culture of innovation, and a talented workforce.  The U.S. economic recovery is outshining others, and investors are increasingly confident.  In fact, A.T. Kearney’s 2014 Foreign Direct Investment (FDI) Confidence Index said, “the United States tops the index for the second year in a row,” with the highest net positive rating in the index’s 16-year history. 

The 2015 SelectUSA Investment Summit aims to build on the tremendous success of the inaugural event, which connected investors from 60 countries with representatives from nearly every U.S. state and territory.  At this year’s Summit, economic development organizations (EDOs) from across the United States will once again gather to showcase investment opportunities to companies from around the world. This event will bring together the tools, information, and connections companies need to grow their business here. The two-day summit will include many sessions with high-profile CEOs, breakout panels with practical tools for investors, one-on-one matchmaking meetings, and pitches on the trade show floor.  

2015 Promises More Data from BEA on Foreign Investment in the United States

Are you looking for statistics on new investment by foreign companies in the United States? The Bureau of Economic Analysis (BEA) has you covered. New statistics slated to be unveiled later this year will provide information on things like when a foreign company launches a new business in this country or expands an existing one by building a new plant.

The new data will give foreign entrepreneurs even more tools to make informed decisions about investing and hiring in the United States. The new statistics also will help guide national policy and state programs that aim to attract foreign direct investment and improve job opportunities in the United States.

The new statistics provide information on “greenfield” investment – investment that occurs when a foreign firm establishes a new U.S. business or expands an existing one by building a new plant or facility. The statistics also cover the acquisition of U.S. businesses by foreign companies.

BEA rolled out a new survey near the end of 2014 that lays the ground work to produce these new statistics. (BEA previously collected similar new investment information, but that survey was discontinued in 2008 due to budget constraints.)

Already, BEA is the go-to source for information about foreign direct investment in the United States:

  • In June, we released data showing that the cumulative value of foreign direct investment in the United States rose to $2.8 trillion in 2013, from $2.6 trillion in 2012.
  • In July, we released comprehensive data on direct investment, financial transactions, equity, debt instruments, reinvestment of earnings, and income for selected countries and industries. The statistics released in July also include direct investment positions, financial transactions, and income for all countries and industries.
  • In November, we released data on the activities of U.S. affiliates of foreign multinational companies in 2012, including employment, sales, R&D expenditures, capital expenditures, and more. 

BEA’s suite of investment statistics provides an important way for businesses and policymakers to track foreigners’ desire to invest and strengthen job opportunities in the United States.  Expanding the U.S. economy through inward foreign investment that leads to more and better American jobs is critical – and it is one of the Commerce Department’s strategic goals.

SelectUSA is the U.S. government-wide program, housed within the U.S. Department of Commerce, to facilitate such investment into the United States. SelectUSA is hosting the second SelectUSA Investment Summit in the Washington, D.C. area on March 23-24, 2015! Investors will find the practical tools, information and connections they need to establish or expand operations in the United States.