Report on FDI Forum
I attended the FDI (Foreign Direct Investment) Forum in St. Louis earlier this week. I have attended several previous Forums on a variety of topics.
The host, Area Development magazine, invites ten site selectors with
expertise in the topic at hand to present information to economic development
officials from around the US. In addition to the presentations, there are opportunities to network with the site
consultants about current or potential projects. Here are some key takeaways
from the Forum:
Global FDI reached $2 Trillion prior to the
financial crisis and has rebounded back to about $1.6 Trillion annually.
The United States has been the top recipient of inbound
FDI every year since the statistics have been kept. Inbound FDI to the US totaled
$150 Billion in 2012, which was a down year.
The panelists all forecast an uptick in 2013 and a strong uptick in
Europe is by far (70%) the biggest source of FDI
into the US. Less than 2% comes from China, although that number is growing.
Over 75% of inbound FDI into the US comes from
eight countries -- six in Western Europe, Canada and Japan. The EDC maintains relationships
with our peers and government officials in all of them, and particularly strong
relationships in all of them except Japan. They are a growing source of leads
for our Prospect Management system.
The Netherlands and France (our top two inbound
target countries) ranked #1 and #2 in overall FDI into the US in 2012, although
the rankings often fluctuate pending significant individual investments in any
Inbound FDI has increased 800% since 1980. The
total stock of FDI in the US is almost $3 Trillion. That represents 6.4% of GDP
and has doubled in the timeframe.
Manufacturing is consistently the largest sector
for inbound FDI, but IT is the fastest growing. These two sectors are the EDC’s
top two priorities.
FDI accounts for over 5 million jobs, 1/3 of
them in manufacturing, and supports wages (average $76,000) significantly
higher than for US companies in the same field.
The EDC made connections between potential
inbound European investors and 20 local companies in Q1 2013.
For more information about the Forum or the EDC’s inbound
investment program (foreign or domestic), please contact Michael Graney at
413-755-1300 or email@example.com.