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Blog Category: Stefan Selig

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.

Increased Exports and the Jobs Supported by Exports Are Keys to Heightened Economic Confidence

Increased Exports and the Jobs Supported by Exports Are Keys to Heightened Economic Confidence

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

When we look back at 2014, it will be seen as the year our country regained its economic confidence, symbolized by the nearly 3 million jobs our economy created in 2014.

While this feat extended the longest streak of job growth in American history, we should not overlook the role our exports and our exporters played in regaining that economic confidence.

U.S. exports of goods and services tallied a record $2.35 trillion in 2014. That was the fifth consecutive year we achieved record exports. This is a clear validation of the Administration’s commitment to a robust trade and investment agenda.

In fact, there are three ways that our exports played an important role in the breakthrough year our economy produced.

First, at the same time that we were experiencing the longest streak of job growth, we also experienced a record year when it came to export-supported jobs: more than 11.7 million.  This number includes the 2.8 million jobs supported by the exports to our North American Free Trade Agreement partners Canada and Mexico. And we know those export supported jobs pay 13 to 18% higher wages than non-export supported jobs.  

Second, U.S. exporters reaped the benefits of a record year of exports with our 20 free trade partners – with a total of $765 billion in goods sent to these markets. That record included increases in exports to Colombia (up 10.5%), South Korea (up 6.8%) and the Central America Free Trade Agreement-Dominican Republic partners (up 5.7%).  Overall, these 20 countries purchase nearly half of all U.S. exports today – 47% to be exact.

Third, a major driver of our export growth came from our Latin American free trade partners, such as Chile, Colombia, Mexico, Panama, and Peru. Exports to these 11 countries alone represented more than a third of our entire year-over-year increase in exports. The region is a major destination for U.S. petroleum and coal, computers and electronics, chemicals, and transportation equipment.

So 2014 was clearly a breakthrough year for our exports and for our economy in general. Now, we need the tools that will allow us to carry that momentum into 2015 and beyond.

That is why passing trade promotion legislation is even more crucial, particularly as we work to finalize the historic Trans-Pacific Partnership agreement (TPP).