Presentation on Foreign Direct Investment in the Carolinas

1. FOREIGN DIRECT
INVESTMENT IN THE
CAROLINAS:
Challenges & Opportunities
Global Carolina Connections
August 21, 2019

2. FDI TRENDS

3. Global FDI Inflows – 2018

4. FDI in the US: 2008 - 2018
Source: UNCTAD

5. • Us workers earn $81,000at global companies - 26% higher than
the economy–wide average
• 7.1 MILLIONUS workers are employed by international
companies.
• 2.5 million US workers at global companies earn their
living in the manufacturing sector – that’s 37% of all FDI jobs
FDI in the US: Why So Important?

6. FDI in the US: Why So Important?
• International companies supported 62%of the new manufacturing jobs
created in the past five years
• International companies spend more than $60 billion in the US R&D
activities, or 16% of all R&D performed by US companies
• US workers of international companies produce 25%of US exports,
shipping $370 billion in goods to customers around the world

7. FDI in the US: Why So Important?
• For every US job at an international company, three more are
supported in the US economy
• US workers at international companies have increased productivity by 33%
over the past decade

8. WHAT ARE THE MOST IMPORTANT FACTORS OVERALL FOR WHERE TO MAKE INVESTMENTS?
2019 A.T. KEARNY FDI CONFIDENCE INDEX

9. 2019 A.T. KEARNY FDI CONFIDENCE INDEX

10. WHICH FACTORS ARE MOST IMPORTANT FOR INCREASING FDI
2019 A.T. KEARNY FDI CONFIDENCE INDEX

11. TOP PROSPECTIVE HOST ECONOMIES

12. FDI investment PROJECTS into the US
by top source country 2014-2018
Source: fDimarkets

13. FDI investment PROJECTS into the US
by top industry 2014-2018
Source: fDimarkets

14. FDI projects into the Carolinas:
By Region 2013 – 2018 (by Number of projects)
Source: fDimarkets

15. FDI projects into the Carolinas:
By country 2014–2018
Source: fDimarkets

16. FDI PROJECTS INTO THE CAROLINAS:
BY INDUSTRY 2014–2018
Source: fDimarkets

17. FDI Projects Strengthens North
Carolina’s Economy
Q u a l i t y J o b s
M a n u f a c t u r i n g
G l o b a l l y C o n n e c t e d
M a n y E m p l o y e r s
260,400 workers in North Carolina are employed as a result of
international investment
119,500 workers in North Carolina - 46 percent of all FDI jobs
in the state - are in the manufacturing sector
Among all international employers, those from the UK,
Germany and Japan support the largest number of jobs in
North Carolina
More than 960 international employers have operations in
North Carolina

18. International Investment Contributes to
North Carolina’s Economy
North Carolina vs. Its Neighbors
FDI jobs as a % of Total Employment

19. International Investment Contributes to
North Carolina’s Economy
North Carolina beats the
national average in its
portion of jobs supported
by international
investment.

20. International Investment Contributes to
North Carolina’s Economy
28%
13%
In the past five years,
North Carolina’s
FDI employment is up
…while the state’s
overall private-sector
employment is up

21. FDI Strengthens
South Carolina’s Economy
Q u a l i t y J o b s
M a n u f a c t u r i n g
G l o b a l l y C o n n e c t e d
M a n y E m p l o y e r s
140,400 workers in South Carolina are employed as a result of
international investment
74,600 workers in South Carolina - 53 percent of all FDI jobs in
the state - are in the manufacturing sector
Among all international employers, those from Germany, France
and Japan support the largest number of jobs in South Carolina
More than 710 international employers have operations in
South Carolina

22. International Investment Contributes to
South Carolina’s Economy
South Carolina vs. Its Neighbors
FDI jobs as a % of Total Employment

23. International Investment Contributes to
South Carolina’s Economy
South Carolina beats the
national average in its
portion of jobs supported
by international
investment.

24. International Investment Contributes to
South Carolina’s Economy
21%
14%
In the past five years,
North Carolina’s
FDI employment is up
…while the state’s
overall private-sector
employment is up

25. US Business Climate & Employment
Expectations Slump
O F I I – O r g a n i z a t i o n f o r I n t e r n a t i o n a l I n v e s t m e n t

26. US Business Climate & Employment
Expectations Slump
Trade Tensions, Skills Gap, Protectionism & Infrastructure of Greatest Concern

27. INTELLIGENT
LEADS
START HERE

28. Global FDI Inflows
Top 20 destinations
• FDI flows to developed economies reached
their lowest point since 2004, declining by 27
per cent
• In Europe, a few important host countries,
such as Ireland and Switzerland, registered
negative inflows of -$66 billion and -$87
billion, respectively. FDI flows to the United
Kingdom also declined, by 36 per cent to $64
billion
• FDI flows to developing economies remained
stable, rising by 2 per cent to $706 billion,

29. FDI outflows
Top source Countries
• In 2018, MNEs from developed countries
reduced their investments abroad by 40 per
cent to $558 billion.
• Outflows from European MNEs rose by 11
per cent to $418 billion. French MNEs
invested more than 100 billion in 2018, all in
equity investment, becoming the third
largest investor country in the world.
• Outflows from the United Kingdom declined
to $50 billion from $118 billion in 2017
despite a significant rise in cross-border
M&As.

30. Global FDI PROJECTIONS 2016-18,
2019 • The projected increase of FDI flows is highest in
developed economies, with Europe expected to
see an increase of more than 60 per cent
• Projections for FDI in 2019 point to a 10 per cent
increase to almost $1.5 trillion – still below the
average of the last 10 years.

31. Global FDI Inflows
World Investment Outlook
• Inward FDI flows to developed
economies fell sharply, by 27%, lowest
point since 2004.
• Inflows to Europe halved to less than
$200 billion, due to negative inflows in a
few large host countries as a result of
funds repatriations and to a sizeable
drop in the United Kingdom. Inflows in
the United States also declined, by 9 per
cent to $252 billion
Source: UNCTAD
Global foreign direct
investment (FDI) flows fell
by 13 per cent to $1.3
trillion.

32. FDI into the US: Why So Important?
Total Foreign
Affiliate Employment
Manufacturing Foreign
Affiliate Employment
Total Private Employment
Manufacturing Employment
Index (2007=100)
Source: Bureau of Economic Analysis