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Foreign Direct Investment
in the United States
2014 Report
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
1 2 2 5 N I N E T E E N T H S T R E E T , N W , S U I T E 5 0 1
W A S H I N G T O N , D C 2 0 0 3 6
W W W . O F I I . O R G
2 0 2 . 6 5 9 . 1 9 0 3
Foreign Direct Investment in the United States - 2014 Report
1© Organization for International Investment 2014
About the Data
This report represents the latest avail-
able statistics on foreign direct invest-
ment in the United States at the time of
publication in October 2014. The United
States defines FDIUS (inward invest-
ment) as the ownership or control,
directly or indirectly, by one foreign enti-
ty of a 10 percent or more ownership
share of an incorporated or unincorpo-
rated U.S. business enterprise.
Note: Cumulative foreign direct investment in the United States is shown on a historical-cost basis in this report.
2013
2012
Debt
Instruments
Reinvestment
of Earnings
Equity
$126.9 B
$97.5 B
-$16.2 B
$93.9 B
$99.9 B
$9.4 B
$236.3 B
$175.2 B
Foreign Direct
Investment Flows to the
United States
2012-2013
Overview
Foreign direct investment in the United States known as FDIUS totaled nearly $2.8 tril-
lion through 2013 on a historical-cost basis. FDIUS is equivalent to about 16.5 percent of
U.S. gross domestic product. Each year foreign firms make new investments in the
United States and others grow their well-established U.S. operations, which benefit the
American economy in numerous ways. Foreign firms build new factories, fund research
and development, and employ millions of Americans in well-paying jobs.
In 2013 alone, international firms invested $236 billion in the U.S. economy, a 35 percent
increase from 2012. Last year was the third best year for inward direct investment over
the past decade. The illustration on the right shows that in 2013 equity drove much of
this increase up $33 billion over the previous year. Reinvestment of earnings rose slight-
ly. Debt instruments of $9.4 billion were positive last year.
Worldwide investment followed a similar, although a less robust, pattern. Globally, annu-
al foreign direct investment (FDI) inflows totaled $1.45 trillion in 2013, a nine percent
increase from 2012, according to the United Nations Conference on Trade and
Development (UNCTAD) World Investment Report 2014 (WIR).
Whether the United States will retain its status as the world’s most attractive investment
location depends largely on future macroeconomic and financial conditions. For the sec-
ond year in a row, A.T. Kearney’s FDI Confidence Index ranked the United States as the
world's top market in 2014. UNCTAD’s WIR predicts that global FDI could rise to $1.6 tril-
lion in 2014 and possibly reach $1.8 trillion by 2016. Cash holdings estimated at $4.5 tril-
lion also remain high among the world’s 5,000 largest multinational companies.
More foreign direct investment dollars flowed to the United States last year than to any
other single country in the world. International investment in the U.S. market topped
other large markets, including China, Russia, Hong Kong, and Brazil. However, the World
Investment Report shows foreign companies invested more in the larger European
Union (EU) market than in the United States in 2013.
Worldwide, cumulative foreign inward investment rose to $25.5 trillion through 2013.
The U.S. share dropped to less than one-fifth last year from more than a third in 2000
because competition for foreign investment dollars has increased, and multinational
companies have expanded their investments in faster growing developing markets. For
the fourth consecutive year, more than half of all foreign direct investment in 2013
flowed to developing and transition economies; in fact, developed countries now
account for only 39 percent of global FDI inflows.
UNCTAD’s WIR cites global economic fragility and policy uncertainty as underlying fac-
tors for a delayed recovery in worldwide investment. And while most nations are eager
to attract foreign investment dollars, many are also engaging in protectionist activities,
such as reinforcing the regulatory environment for foreign investment and tightly moni-
toring cross-border mergers and acquisitions.
Data for inward direct investment (foreign direct
investment in the United States) are shown on a
directional basis.
Source: Bureau of Economic Analysis
Cumulative FDIUS Climbs to $2.8 Trillion
Annual foreign direct investment inflows over the last
few years have pushed total foreign investment on a
historical-cost basis to $2.8 trillion through 2013.
Foreign companies invested more in the United States
than any other country in the world last year, whether
measured cumulatively or by 2013 investment. There
are any number of reasons why foreign investors prefer
the American economy. First, and perhaps most impor-
tant, the United States has one of the most open mar-
kets and investment climates in the world. Other advan-
tages attracting foreign companies include:
an unrivaled consumer market;
a world-class system of higher education;
a skilled and productive workforce;
an entrepreneurial culture of innovation and
risk taking;
a transparent regulatory environment; and,
the largest venture capital and private equity market
in the world.
20132012201120102009
$2.1 T
$2.3 T
$2.4 T
$2.6 T
$2.8 T
Cumulative Foreign Direct Investment in the
United States, 2009-2013
Data are shown on a historical-cost basis, or cost at time of investment.
Source: Bureau of Economic Analysis
2© Organization for International Investment 2014
Foreign Direct Investment in the United States - 2014 Report
United States Faces Increasing Competition
for Foreign Investment Dollars
While foreign direct investment is an important part of
the U.S. economy, the U.S. slice of worldwide FDI has
shrunk as competitors vie for investment dollars by
opening their economies to global investors. The
United States held only 19 percent of the world’s
inward FDI stock through 2013, an increase of 17 per-
cent from the previous year. In contrast, the U.S.
accounted for more than a third of the world’s foreign
investment stock at the beginning of the 21st
century.
The European Union’s share rose to 34 percent in 2013
from 31 percent in 2000.
Foreign companies are investing more in transition and
developing economies; nevertheless, the total stock of
inward investment in these markets is still lower than in
developed economies. Among the transition economies
of southern and eastern Europe and the Common-
wealth of Independent States, including the Russian
Federation, the stock of foreign investment increased
to four percent through 2013 from one percent in 2000.
Developing economies saw the largest gain, claiming a
third through 2013, with China at four percent and
Brazil holding three percent.
Transition Economies
1%
Developing
Economies
24%
Other Developed
Economies
7%
United States
37%
2000
European Union
31%
Other Developed
Economies
10%
Transition Economies
4%
2013
United States
19%
European Union
34%
Developing
Economies
33%
Worldwide Inward Stock of Foreign
Direct Investment, 2000 and 2013
Source: UNCTAD’s World Investment Report 2014
8. Luxembourg
$202 B
7. Germany
$209 B
6. Switzerland
$209 B
5. France
$226 B
4. Canada
$238 B
3. Netherlands
$274 B
2. Japan
$342 B
1. United Kingdom
$519 B
All Other
Countries
$545 B
Cumulative Foreign Direct Investment
in the United States by Country
Through 2013
Eight Countries Account for 80 Percent of
Foreign Direct Investment in the United
States
A handful of countries provided the lion’s share of the
$2.8 trillion in cumulative foreign direct investment in
the United States by year-end 2013. The United
Kingdom ranked as the single largest foreign investor
in the U.S. economy, constituting nearly one-fifth of all
cumulative foreign direct investment holdings. Japan’s
investment stock in the United States made up nearly
12 percent, followed by the Netherlands at 10 percent.
Eight countries accounted for 80 percent of the stock
of foreign direct investment in the United States
through 2013. More than 170 other countries repre-
sented the remainder.
3© Organization for International Investment 2014
Foreign Direct Investment in the United States - 2014 Report
Data are shown on a historical-cost basis, or cost at time of investment.
Source: Bureau of Economic Analysis
Foreign Direct Investment Inflows in 2013
Third Strongest Over Past Decade
Foreign companies invested $236 billion in the United
States last year, the third highest since 2003. Foreign
direct investment in the United States consists of rein-
vestment of earnings, equity other than reinvestment of
earnings investment, and debt instruments investment.
Over the past decade, foreign direct investment in the
United States peaked in 2008, reaching $310 billion.
The recent global economic recession had a direct
influence on inward direct investment transactions. In
the United States, foreigners dramatically reduced their
investment in 2009, which dropped more than half from
the prior year. Foreign investment in the United States
increased in 2010 and again in 2011, before dropping in
2012. Last year, foreign companies' confidence in the
U.S. market returned, and inward direct investment rose
35 percent.
$236 B
2012201120102009200820072006200520042003 2013
$64 B
$146 B
$113 B
$243 B
$221 B
$310 B
$150 B
$206 B
$236 B
$175 B
Foreign Direct Investment in the United States
2003-2013
Data for inward direct investment (foreign direct investment in the United States) are shown on a
directional basis.
Source: Bureau of Economic Analysis
4© Organization for International Investment 2014
SwitzerlandCanadaLuxembourgUnited KingdomJapan
2013
2012
2011
$17.1 B
$24.8 B
$44.9 B
$12.0 B
$8.7 B
$25.3 B
$41.9 B
$46.3 B
$26.1 B
$18.8 B
$15.3 B
$23.3 B
$19.9 B
-$2.4 B
$17.0 B
Top Five Countries by FDIUS Flows
2011-2013
Top Investing Countries Significantly
Increase FDIUS Flows Last Year
Each of the top five countries by foreign investment
inflows in 2013 increased their level of foreign invest-
ment spending in the United States over the previous
year. Japanese firms invested 80 percent more in 2013
than in 2012, and British investment rose by two-thirds.
Luxembourg invested three times more in the United
States in 2013 than a year earlier.
Canadian companies expanded their investments in the
United States by more than 50 percent between 2012
and 2013. Switzerland invested $17 billion in 2013, a
large turnaround following a disinvestment* by Swiss
companies of $2.4 billion in 2012.
Foreign Direct Investment in the United States - 2014 Report
Data by country are shown on a directional basis without current-cost adjustment.
Source: Bureau of Economic Analysis
**Disinvestment, or net negative financial inflows, occurs when flows from U.S. affiliates to
their parent companies are greater than flows from parents to affiliates. Net negative flows
may be due to reductions of equity (selloffs) in their affiliates by parents, distributions of
earnings by affiliates to their parents, or net loan payments from affiliates to parents.
10.
U.K.
Islands,
Caribbean
9.
Norway
8.
Germany
7.
Nether-
lands
6.
Ireland
5.
Switzer-
land
4.
Canada
3.
Luxem-
bourg
2.
United
Kingdom
1.
Japan
$44.9 B
$41.9 B
$26.1 B
$23.3 B
$17.0 B
$15.4 B
$12.8 B $11.9 B
$9.3 B $8.8 B
Top Countries by FDIUS Flows
2013
Japan Ranks as Largest Foreign Direct
Investor in the United States in 2013
Japan was the United States’ largest foreign investor in
2013 at nearly $45 billion. Japanese investment consti-
tuted nearly one-fifth of all foreign investment in the
United States last year. The United Kingdom, Luxem-
bourg, Canada, and Switzerland rounded out the top
five largest investors in the United States.
Ireland, the sixth largest investor, provided $15 billion,
followed by the Netherlands, which was the largest
investor in 2012. Germany, Norway, and the British
Caribbean Islands took the remaining top spots in 2013.
As a group, the top 10 investing countries represented
92 percent of all foreign direct investment in the United
States in 2013.
Data by country are shown on a directional basis without current-cost adjustment.
Source: Bureau of Economic Analysis
5© Organization for International Investment 2014
European Investors Dominate FDIUS
Cumulatively, Europe is the largest regional investor in
the United States. It provided more than two-thirds of
all foreign investment through 2013. These figures
include the 28 European Union countries and other
European nations with an investment stake in the
United States. For example, two non-EU member coun-
tries—Switzerland and Norway—accounted for more
than 10 percent of cumulative investment from Europe
by the end of 2013.
The Asia and Pacific region ranked second accounting
for 17 percent of FDIUS stock through 2013. Canada
held nine percent.
The Caribbean countries made up the fourth-largest
investment region at $74 billion as of year-end 2013.
The British Islands (British Virgin Islands, Cayman
Islands, Montserrat, and Turks and Caicos Islands)
ranked first in Caribbean investment.
The stock of direct investment from South and Central
America, the Middle East, and Africa remains tiny. By
the end of 2013, each represented less than one per-
cent.
Africa
$2 B
Middle East
$21 B
South & Central
America - $26 B
Caribbean
$74 B
Canada
$238 B
Asia & Pacific
$470 B
Europe
$1,934 B
(European Union: $1,685 B)
Cumulative Foreign Direct Investment in the
United States by Region, 2013
Foreign Direct Investment in the United States - 2014 Report
Data are shown on a historical-cost basis, or cost at time of investment.
Source: Bureau of Economic Analysis
Rank Country 2012 2013 Percent
Change
1. Japan $24,830 $44,861 81%
2. United Kingdom $25,250 $41,909 66%
3. Luxembourg $8,673 $26,101 201%
4. Canada $15,339 $23,336 52%
5. Switzerland -$2,439 $16,994 n/a
6. Ireland -$1,027 $15,351 n/a
7. Netherlands $36,009 $12,821 -64%
8. Germany $7,337 $11,859 62%
9. Norway $2,787 $9,256 232%
10. U.K. Islands, Caribbean $5,942 $8,801 48%
11. South Korea $5,616 $6,632 18%
12. France $22,882 $3,326 -85%
13. Mexico $2,035 $3,130 54%
14. China $3,491 $2,419 -31%
15. Denmark $119 $2,374 1,895%
16. Bermuda -$3,101 $2,310 n/a
17. Italy $2,226 $2,138 -4%
18. Sweden $2,066 $2,087 1%
19. Spain $1,654 $1,686 2%
20. Hong Kong $1,334 $1,390 4%
Inward Investment from Leading Countries,
2012-2013
(in millions of dollars)
Norway and Denmark Post Impressive
Growth Rates in FDIUS Between 2012 and
2013
Two Scandinavian countries substantially increased
their foreign direct investment positions in the United
States between 2012 and 2013. Norway more than
tripled its investment, and Denmark raised its stake
nearly twentyfold. Inward investment from sixth-ranked
Ireland totaled $15.4 billion in 2013 after a billion dollar
disinvestment in 2012.
By comparison, direct investment from the Netherlands
shrank 64 percent in 2013 from $36 billion in 2012.
French investment also dropped sharply, falling to $3.3
billion in 2013 from $22.9 billion the previous year.
Notably, Chinese direct investment flows fell in 2013
after rising every year since 2009. Italian investment
was down by four percent between 2012 and 2013. In
all, only four of the top 20 countries decreased their
investment holdings in the United States in 2013.
Data by country are shown on a directional basis without current-cost adjustment.
Source: Bureau of Economic Analysis
Manufacturing is Largest Industry for
Foreign Investors
All sectors of the U.S. economy represent significant
business opportunities for foreign companies.
Exceeding $900 billion in 2013, manufacturing account-
ed for one-third of cumulative foreign direct investment.
Because the United States has the world’s largest and
most liquid financial markets, foreign companies, on a
cumulative basis, have invested heavily in the U.S.
finance and insurance industries, reaching $365 billion
by year-end 2013. International companies have spent
more than $300 billion in wholesale trade over time.
Banking, information, and professional, scientific, and
technical services each received more than $100 billion
in cumulative foreign direct investment through 2013.
Other Industries
$590 B
Real Estate & Leasing - $51 B
Retail Trade - $60 B
Professional, Scientific
& Technical Services
$104 B
Banking
$181 B Wholesale
Trade
$329 B
Finance &
Insurance
$365 B
Manufacturing
$936 B
Information
$149 B
Cumulative FDIUS by Industry
2013
6© Organization for International Investment 2014
Foreign Direct Investment in the United States - 2014 Report
Data are shown on a historical-cost basis, or cost at time of investment.
Source: Bureau of Economic Analysis
ChinaIndiaRussiaBrazil South Africa
2013
2012
2011$3.7 B
$0.8 B
-$0.6 B -$0.2 B
$0.7 B
-$0.1 B
$1.2 B
$0.3 B
$0.7 B
$3.5 B
$0.1 B
$1.1 B
-$0.01 B
$0.5 B
$2.4 B
Inward Investment Flows from BRICS Countries
2011-2013
China Leads Again as Largest U.S. Investor
Among (BRICS) Countries in 2013
The large emerging economies of Brazil, Russia, India,
China, and South Africa are known collectively as the
BRICS. Despite their size, their combined investment in
the United States totaled just 1.5 percent of all foreign
investment in 2013. At $2.4 billion, China ranked as the
largest BRICS investor in 2013. Its investment tripled
from 2011 to 2012, but dropped to $2.4 billion in 2013.
South Africa’s investment more than tripled between
2012 and 2013 to $500 million. Russia invested nearly
$800 million in 2013 after a year of disinvestment.
In contrast, Brazil and India posted disinvestments in
2013. Brazil’s U.S. investment of $3.7 billion in 2011
outpaced the other BRICS over the past three years.
India’s investment in the United States has been mod-
est totaling less than $1.5 billion in 2011 and 2012.
Even as the BRICS invest more globally, their combined
investment in the United States remains small.
According to UNCTAD’s WIR, the BRICS represented 14
percent of total worldwide investment outflows in
2013. China and Russia led the BRICS in global invest-
ment.
Data by country are shown on a directional basis without current-cost adjustment.
Source: Bureau of Economic Analysis
7© Organization for International Investment 2014
Chemicals Top FDIUS Manufacturing Sector
International firms invest heavily in U.S. manufacturing.
Chemicals, with $280 billion in cumulative foreign direct
investment by the end of 2013, represented nearly a
third of cumulative foreign direct investment in U.S.
manufacturing. Foreign companies spend billions every
year in the U.S. chemicals industry because it boasts a
highly educated workforce, world-class research cen-
ters, strong intellectual property protections, and a
robust regulatory system.
Foreign investment in the transportation equipment
industry, which mostly covers auto and auto parts man-
ufacturing, totaled $110 billion through 2013. Inter-
national companies invested a total of $108 billion in
petroleum and coal products by 2013. Machinery
ranked fourth at $87 billion the same year. The non-
metallic minerals products industry, made up largely of
cement and concrete manufacturing, ranked fifth
receiving $55 billion in cumulative foreign direct invest-
ment through 2013.
Other
Manufacturing
$93 B
Food
$51 B
Electrical Equipment, Appliances,
& Components - $47 B
Primary & Fabricated
Metals - $53 B
Nonmetallic
Mineral Products
$55 B
Computers &
Electronic Products
$49 B
Machinery
$87 B
Transportation
Equipment
$110 B
Petroleum &
Coal Products
$108 B
Chemicals
$280 B
Cumulative FDIUS in Manufacturing
2013
Foreign Direct Investment in the United States - 2014 Report
Data are shown on a historical-cost basis, or cost at time of investment.
Source: Bureau of Economic Analysis
Finance and Insurance is Fastest Growing
Industry Segment
Foreign direct investment in finance and insurance rose
to $24.1 billion in 2013 from $4.7 billion in 2012, grow-
ing faster than foreign investment flows to other sec-
tors of the American economy. The information sector
attracted $26.3 billion in foreign direct investment in
2013, a fourfold increase over the previous year.
Foreign investment in U.S. wholesale trade grew nearly
50 percent to $31.7 billion in 2013.
Foreign direct investment shrank in just two sectors of
the U.S. economy last year. International firms lowered
their investment holdings in U.S. real estate and leasing
to $200 million in 2013. International companies
reduced investment in professional, scientific and tech-
nical services by nearly 50 percent between 2012 and
2013.
2012
2013
Retail Trade
Professional, Scientific,
& Technical Services
Information
Banking
Wholesale Trade
Finance & Insurance
Manufacturing
Real Estate & Leasing
$93.8 B
$95.0 B
$7.0 B
$5.4 B
$21.6 B
$31.7 B
$10.1 B
$4.0 B
-$0.8 B
$4.4 B
$5.8 B
$26.3 B
$4.7 B
$24.1 B
$2.4 B
$0.2 B
Inward Investment Flows by Industry
2012-2013
Data by industry are shown on a directional basis without current-cost adjustment.
Source: Bureau of Economic Analysis
Foreign Direct Investment in the United States - 2014 Report
8© Organization for International Investment 2014
Food Realizes Large Growth in FDIUS Last
Year
At nearly $95 billion, international investment in manu-
facturing provided more than 40 percent of total foreign
direct investment inflows in 2013. Chemicals manufac-
turing, dominated by pharmaceuticals and medicines,
received $56 billion in foreign investment in 2013, a 22
percent increase over 2012.
U.S. food manufacturing was another important sector
for foreign investors last year, with spending rising to
$13.2 billion, nearly quadrupling from $3.5 billion in
2012. Foreign investment in U.S. machinery manufactur-
ing grew to $12 billion in 2013.
Foreign investment dropped in two key U.S. manufac-
turing sectors. In transportation equipment, inward
investment flows fell below $1 billion in 2013 compared
to $6.9 billion in 2012. In electrical equipment, appli-
ances, and components manufacturing, foreign direct
investment shrank to $6.4 billion in 2013 from $23.1 bil-
lion the previous year.
Electrical Equipment,
Appliances, & Components
Food
Machinery
Transportation Equipment
Primary & Fabricated Metals
Chemicals
2012
2013
$46.4 B
$56.4 B
$6.9 B
$0.7 B
$8.5 B
$12.1 B
$6.4 B
$23.1 B
-$0.02 B
$2.0 B
$3.5 B
$13.2 B
Inward Investment Flows by Selected
Manufacturing Industries, 2012-2013
Data by industry are shown on a directional basis without current-cost adjustment.
Source: Bureau of Economic Analysis
FDIUS Flows
2009-2013
2013 2009 2010 2011 2012 2013 2009-2013
Europe $1,933,589 $99,073 $151,055 $128,687 $117,723 $138,393 40%
Austria $5,948 (D) $136 $177 $423 $568 n/a
Belgium $65,135 $13,262 $5,640 $10,284 $11,813 -$12,811 n/a
Cyprus $2,406 (D) -$173 (D) (D) (D) n/a
Denmark $10,076 $1,171 $1,472 $462 $119 $2,374 103%
Finland $7,597 (D) -$179 $660 -$214 $619 n/a
France $226,131 $25,369 $8,865 $795 $22,882 $3,326 -87%
Germany $208,841 $12,320 $18,760 $16,396 $7,337 $11,859 -4%
Hungary $20,116 $266 -$26,488 -$3,650 $2,569 -$162 n/a
Ireland $26,219 -$1,348 $5,417 -$1,696 -$1,027 $15,351 n/a
Italy $25,384 -$2,462 $1,304 $3,334 $2,226 $2,138 n/a
Luxembourg $201,603 $17,349 $29,461 $11,989 $8,673 $26,101 50%
Netherlands $273,884 $5,018 $20,772 $8,457 $36,009 $12,821 156%
Norway $26,075 $577 $885 $7,743 $2,787 $9,256 1504%
Russia $6,197 -$746 -$1,905 $693 -$220 $754 n/a
Spain $48,528 $4,569 $4,410 $5,923 $1,654 $1,686 -63%
Sweden $44,397 $1,381 $10,903 $2,779 $2,066 $2,087 51%
Switzerland $209,397 $10,710 $41,406 $19,894 -$2,439 $16,994 59%
United Kingdom $518,643 $18,373 $30,069 $46,316 $25,250 $41,909 128%
Asia and Pacific $469,610 $5,482 $26,875 $50,832 $31,922 $53,781 881%
Australia $44,742 -$3,850 $4,047 $21,163 -$6,209 -$3,079 n/a
China $8,073 $500 $1,037 $1,105 $3,491 $2,419 384%
Hong Kong $5,860 -$10 $271 $236 $1,334 $1,390 n/a
India $7,118 $490 $1,289 $1,241 $742 -$11 n/a
Japan $342,327 $6,544 $15,805 $17,077 $24,830 $44,861 586%
Singapore $19,760 $1,328 $1,496 $2,862 $2,082 $1,148 -14%
South Korea $32,456 $236 $2,245 $4,798 $5,616 $6,632 2710%
Taiwan $6,420 -$405 $726 $284 $476 $997 n/a
Canada $237,921 $30,366 $7,357 $18,790 $15,339 $23,336 -223%
Caribbean $73,549 $6,897 $10,599 $13,937 $2,810 $11,187 62%
Curacao* $3,168 -- -- $243 $478 -$39 n/a
United Kingdom Islands, Caribbean $80,106 $2,481 $5,627 $14,859 $5,942 $8,801 255%
South and Central America $26,152 $1,093 $2,824 $7,200 $1,427 $3,041 178%
Brazil $1,054 -$1,539 $2,718 $3,681 -$614 -$115 n/a
Mexico $17,610 $2,469 -$123 $2,432 $2,035 $3,130 27%
Panama $1,231 $144 -$553 $87 -$10 $75 -48%
Venezuela $4,718 $158 $420 $503 $576 $148 -6%
Middle East $21,166 $1,366 -$$1,747 $8,429 $180 $959 -330%
Israel $9,471 $1,166 $273 $6,202 $31 $134 -89%
Qatar $2,605 $174 (D) $19 $8 (D) n/a
United Arab Emirates $1,804 $151 -$1,669 $630 -$117 -$727 n/a
Africa $1,968 -$$672 $1,085 $1,988 $280 $70 n/a
South Africa $1,052 -$217 $126 $261 $146 $525 n/a
Other Areas
BRICS** $23,494 -$1,512 $3,265 $6,981 $3,545 $3,572 n/a
European Union (28) $1,685,337 $92,686 $110,758 $102,842 $118,587 $108,134 17%
Appendix A: FDIUS by Selected Countries
(millions of dollars)
Cumulative FDIUS
Through 2013
D Suppressed to avoid disclosure of individual companies.
*Prior to 2011, Curacao was included in the Netherlands Antilles (not shown here).
**BRICS countries are Brazil, Russia, India, China, and South Africa.
Source: Bureau of Economic Analysis
FDIUS Flows
2009-2013
2013 2009 2010 2011 2012 2013 2009-2013
Manufacturing $935,728 $53,416 $91,896 $83,627 $93,825 $94,973 78%
Food $50,983 $2,756 $14,545 -$1,127 $3,544 $13,230 380%
Chemicals $280,445 $12,299 $15,273 $42,689 $46,373 $56,367 358%
Basic chemicals $53,961 -$1,193 $10,467 $3,149 $15,741 $12,486 n/a
Pharmaceuticals & medicines $167,814 $12,868 $419 $36,840 $24,434 $37,384 191%
Primary & fabricated metals $52,989 $3,894 $4,816 $5,026 -$16 $2,035 -48%
Primary metals $30,631 $4,109 $2,963 $2,854 -$3,143 $267 -94%
Machinery $87,188 $5,402 $1,234 $1,805 $8,479 $12,079 124%
Engines, turbines, & power transmission equipment $27,867 $4,169 $531 (D) (D) $3,676 -12%
Computers & electronic products $49,352 -$3,974 $5,399 $3,385 $5,513 -$2,960 n/a
Semiconductors & other electronic components $28,395 -$780 $4,889 $3,580 $3,290 -$1,166 n/a
Electrical equipment, appliances, & components $47,310 $2,187 -$121 $2,562 $23,100 $6,410 193%
Transportation equipment $110,327 $16,035 $11,145 $6,431 $6,941 $706 -96%
Motor vehicles, bodies & trailers, & parts $74,371 $13,309 $10,260 $3,709 $5,907 $924 -93%
Aerospace products & parts $22,671 $1,007 $1,290 $2,468 $357 $457 -55%
Beverages & tobacco products $29,241 (D) (D) $2,095 -$1,590 $3,749 n/a
Petroleum & coal products $108,339 $8,068 $25,274 (D) $2,620 (D) n/a
Nonmetallic mineral products $55,461 $1,771 -$297 $480 -$3,899 $2,764 56%
Cement & concrete products $45,748 $2,207 -$315 -$308 -$4,334 $324 -85%
Medical equipment & supplies $29,216 $2,014 $6,527 (D) $1,406 (D) n/a
Wholesale trade $328,546 $11,628 $23,806 $26,548 $21,591 $31,733 173%
Motor vehicles & motor vehicle parts & supplies $59,731 -$1,955 -$302 $5,395 $2,763 $5,863 n/a
Electrical goods $51,539 $430 $461 $6,386 $6,611 $5,417 1160%
Petroleum & petroleum products $57,641 $9,140 $2,703 $15,805 $6,181 $7,282 -20%
Professional & commercial equipment & supplies $29,300 -$221 $1,254 $2,312 $1,470 -$36 n/a
Drugs & druggists’ sundries $29,258 $4,718 $10,910 -$5,840 $1,460 $4,466 -5%
Retail trade $59,870 $4,168 -$$1,445 $2,181 $4,422 $6,973 67%
Food & beverage stores $24,705 $3,850 $2,292 $366 $1,116 $1,555 -60%
Information $148,551 -$$7,876 -$$10,199 -$$5,301 $5,796 $26,283 n/a
Publishing industries $46,145 -$1,571 -$8,039 $293 $5,177 -$5,330 n/a
Software publishers $32,204 $31 $530 $110 $3,767 -$5,983 n/a
Telecommunications $55,603 -$934 $647 $3,376 $503 $18,721 n/a
Depository institutions (banking) $181,391 $16,586 $12,367 $26,049 -$$752 $4,008 -776%
Banks $151,678 $10,336 $6,864 $17,927 -$4,768 $3,465 -66%
Branches & agencies $29,713 $6,250 $5,504 $8,122 $4,016 $543 -91%
Finance (except depository institutions) & insurance $364,727 $28,483 $35,514 $16,719 $4,674 $24,075 -115%
Finance, except depository institutions $192,561 $14,971 $26,380 $24,262 $8,565 $12,156 -19%
Insurance carriers & related activities $172,165 $13,512 $9,134 -$7,543 -$3,891 $11,919 -12%
Real estate & rental & leasing $50,651 -$$1,021 -$$581 $630 $2,380 $245 n/a
Real estate $36,518 $692 $606 $91 $1,012 $147 -79%
Professional, scientific, & technical services $104,233 $2,412 $15,699 $4,951 $10,115 $5,446 126%
Computer systems design & related services $35,006 $572 $12,235 $1,306 $9,184 $953 67%
Advertising & related services $24,895 $1,995 $291 $23 $30 $593 -70%
Other industries $590,260 $35,808 $30,992 $74,458 $27,629 $37,032 3%
Mining $150,386 $7,591 $21,767 $50,064 $6,983 $10,632 40%
Utilities $67,441 $8,768 $1,068 $2,873 $4,185 $7,032 -20%
Electric power generation, transmission, & distribution $63,219 $9,880 $2,474 $2,570 $2,829 $6,105 -38%
Transportation & warehousing $47,776 $5,796 -$1,072 -$2,769 $1,276 $5,655 -2%
Pipeline transportation $22,370 $2,354 -$194 -$2,561 $1,457 (D) n/a
Holding companies (nonbank) $229,895 $6,999 $5,346 $15,485 $18,212 $4,348 -38%
Administrative & support services $30,173 (D) (D) $3,120 -$3,203 -$1,750 n/a
Addendum:
Petroleum* $307,588 (D) $49,413 $79,857 $15,174 $13,466 n/a
Appendix B: FDIUS by Selected Industries
(millions of dollars)
Cumulative FDIUS
Through 2013
D Suppressed to avoid disclosure of individual companies.
*Petroleum consists of oil and gas extraction; support activities for oil and gas extraction; petroleum and coal products manufacturing; petroleum and petroleum products wholesale trade; gasoline stations; petroleum tanker operations; pipeline trans-
portation of of crude oil, refined petroleum products, and natural gas; and petroleum storage for hire.
Source: Bureau of Economic Analysis
This report was prepared by Content First, a full-service public policy
research firm based in Washington, D.C. Content First provides trade associ-
ations, businesses, law firms, consulting firms and the public affairs commu-
nity with the data they need to make strategic decisions, build their reputa-
tions, and advocate for policy change more effectively.
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Foreign Direct Investment in the United States 2014 Report

  • 1. Foreign Direct Investment in the United States 2014 Report 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 1 2 2 5 N I N E T E E N T H S T R E E T , N W , S U I T E 5 0 1 W A S H I N G T O N , D C 2 0 0 3 6 W W W . O F I I . O R G 2 0 2 . 6 5 9 . 1 9 0 3
  • 2. Foreign Direct Investment in the United States - 2014 Report 1© Organization for International Investment 2014 About the Data This report represents the latest avail- able statistics on foreign direct invest- ment in the United States at the time of publication in October 2014. The United States defines FDIUS (inward invest- ment) as the ownership or control, directly or indirectly, by one foreign enti- ty of a 10 percent or more ownership share of an incorporated or unincorpo- rated U.S. business enterprise. Note: Cumulative foreign direct investment in the United States is shown on a historical-cost basis in this report. 2013 2012 Debt Instruments Reinvestment of Earnings Equity $126.9 B $97.5 B -$16.2 B $93.9 B $99.9 B $9.4 B $236.3 B $175.2 B Foreign Direct Investment Flows to the United States 2012-2013 Overview Foreign direct investment in the United States known as FDIUS totaled nearly $2.8 tril- lion through 2013 on a historical-cost basis. FDIUS is equivalent to about 16.5 percent of U.S. gross domestic product. Each year foreign firms make new investments in the United States and others grow their well-established U.S. operations, which benefit the American economy in numerous ways. Foreign firms build new factories, fund research and development, and employ millions of Americans in well-paying jobs. In 2013 alone, international firms invested $236 billion in the U.S. economy, a 35 percent increase from 2012. Last year was the third best year for inward direct investment over the past decade. The illustration on the right shows that in 2013 equity drove much of this increase up $33 billion over the previous year. Reinvestment of earnings rose slight- ly. Debt instruments of $9.4 billion were positive last year. Worldwide investment followed a similar, although a less robust, pattern. Globally, annu- al foreign direct investment (FDI) inflows totaled $1.45 trillion in 2013, a nine percent increase from 2012, according to the United Nations Conference on Trade and Development (UNCTAD) World Investment Report 2014 (WIR). Whether the United States will retain its status as the world’s most attractive investment location depends largely on future macroeconomic and financial conditions. For the sec- ond year in a row, A.T. Kearney’s FDI Confidence Index ranked the United States as the world's top market in 2014. UNCTAD’s WIR predicts that global FDI could rise to $1.6 tril- lion in 2014 and possibly reach $1.8 trillion by 2016. Cash holdings estimated at $4.5 tril- lion also remain high among the world’s 5,000 largest multinational companies. More foreign direct investment dollars flowed to the United States last year than to any other single country in the world. International investment in the U.S. market topped other large markets, including China, Russia, Hong Kong, and Brazil. However, the World Investment Report shows foreign companies invested more in the larger European Union (EU) market than in the United States in 2013. Worldwide, cumulative foreign inward investment rose to $25.5 trillion through 2013. The U.S. share dropped to less than one-fifth last year from more than a third in 2000 because competition for foreign investment dollars has increased, and multinational companies have expanded their investments in faster growing developing markets. For the fourth consecutive year, more than half of all foreign direct investment in 2013 flowed to developing and transition economies; in fact, developed countries now account for only 39 percent of global FDI inflows. UNCTAD’s WIR cites global economic fragility and policy uncertainty as underlying fac- tors for a delayed recovery in worldwide investment. And while most nations are eager to attract foreign investment dollars, many are also engaging in protectionist activities, such as reinforcing the regulatory environment for foreign investment and tightly moni- toring cross-border mergers and acquisitions. Data for inward direct investment (foreign direct investment in the United States) are shown on a directional basis. Source: Bureau of Economic Analysis
  • 3. Cumulative FDIUS Climbs to $2.8 Trillion Annual foreign direct investment inflows over the last few years have pushed total foreign investment on a historical-cost basis to $2.8 trillion through 2013. Foreign companies invested more in the United States than any other country in the world last year, whether measured cumulatively or by 2013 investment. There are any number of reasons why foreign investors prefer the American economy. First, and perhaps most impor- tant, the United States has one of the most open mar- kets and investment climates in the world. Other advan- tages attracting foreign companies include: an unrivaled consumer market; a world-class system of higher education; a skilled and productive workforce; an entrepreneurial culture of innovation and risk taking; a transparent regulatory environment; and, the largest venture capital and private equity market in the world. 20132012201120102009 $2.1 T $2.3 T $2.4 T $2.6 T $2.8 T Cumulative Foreign Direct Investment in the United States, 2009-2013 Data are shown on a historical-cost basis, or cost at time of investment. Source: Bureau of Economic Analysis 2© Organization for International Investment 2014 Foreign Direct Investment in the United States - 2014 Report United States Faces Increasing Competition for Foreign Investment Dollars While foreign direct investment is an important part of the U.S. economy, the U.S. slice of worldwide FDI has shrunk as competitors vie for investment dollars by opening their economies to global investors. The United States held only 19 percent of the world’s inward FDI stock through 2013, an increase of 17 per- cent from the previous year. In contrast, the U.S. accounted for more than a third of the world’s foreign investment stock at the beginning of the 21st century. The European Union’s share rose to 34 percent in 2013 from 31 percent in 2000. Foreign companies are investing more in transition and developing economies; nevertheless, the total stock of inward investment in these markets is still lower than in developed economies. Among the transition economies of southern and eastern Europe and the Common- wealth of Independent States, including the Russian Federation, the stock of foreign investment increased to four percent through 2013 from one percent in 2000. Developing economies saw the largest gain, claiming a third through 2013, with China at four percent and Brazil holding three percent. Transition Economies 1% Developing Economies 24% Other Developed Economies 7% United States 37% 2000 European Union 31% Other Developed Economies 10% Transition Economies 4% 2013 United States 19% European Union 34% Developing Economies 33% Worldwide Inward Stock of Foreign Direct Investment, 2000 and 2013 Source: UNCTAD’s World Investment Report 2014
  • 4. 8. Luxembourg $202 B 7. Germany $209 B 6. Switzerland $209 B 5. France $226 B 4. Canada $238 B 3. Netherlands $274 B 2. Japan $342 B 1. United Kingdom $519 B All Other Countries $545 B Cumulative Foreign Direct Investment in the United States by Country Through 2013 Eight Countries Account for 80 Percent of Foreign Direct Investment in the United States A handful of countries provided the lion’s share of the $2.8 trillion in cumulative foreign direct investment in the United States by year-end 2013. The United Kingdom ranked as the single largest foreign investor in the U.S. economy, constituting nearly one-fifth of all cumulative foreign direct investment holdings. Japan’s investment stock in the United States made up nearly 12 percent, followed by the Netherlands at 10 percent. Eight countries accounted for 80 percent of the stock of foreign direct investment in the United States through 2013. More than 170 other countries repre- sented the remainder. 3© Organization for International Investment 2014 Foreign Direct Investment in the United States - 2014 Report Data are shown on a historical-cost basis, or cost at time of investment. Source: Bureau of Economic Analysis Foreign Direct Investment Inflows in 2013 Third Strongest Over Past Decade Foreign companies invested $236 billion in the United States last year, the third highest since 2003. Foreign direct investment in the United States consists of rein- vestment of earnings, equity other than reinvestment of earnings investment, and debt instruments investment. Over the past decade, foreign direct investment in the United States peaked in 2008, reaching $310 billion. The recent global economic recession had a direct influence on inward direct investment transactions. In the United States, foreigners dramatically reduced their investment in 2009, which dropped more than half from the prior year. Foreign investment in the United States increased in 2010 and again in 2011, before dropping in 2012. Last year, foreign companies' confidence in the U.S. market returned, and inward direct investment rose 35 percent. $236 B 2012201120102009200820072006200520042003 2013 $64 B $146 B $113 B $243 B $221 B $310 B $150 B $206 B $236 B $175 B Foreign Direct Investment in the United States 2003-2013 Data for inward direct investment (foreign direct investment in the United States) are shown on a directional basis. Source: Bureau of Economic Analysis
  • 5. 4© Organization for International Investment 2014 SwitzerlandCanadaLuxembourgUnited KingdomJapan 2013 2012 2011 $17.1 B $24.8 B $44.9 B $12.0 B $8.7 B $25.3 B $41.9 B $46.3 B $26.1 B $18.8 B $15.3 B $23.3 B $19.9 B -$2.4 B $17.0 B Top Five Countries by FDIUS Flows 2011-2013 Top Investing Countries Significantly Increase FDIUS Flows Last Year Each of the top five countries by foreign investment inflows in 2013 increased their level of foreign invest- ment spending in the United States over the previous year. Japanese firms invested 80 percent more in 2013 than in 2012, and British investment rose by two-thirds. Luxembourg invested three times more in the United States in 2013 than a year earlier. Canadian companies expanded their investments in the United States by more than 50 percent between 2012 and 2013. Switzerland invested $17 billion in 2013, a large turnaround following a disinvestment* by Swiss companies of $2.4 billion in 2012. Foreign Direct Investment in the United States - 2014 Report Data by country are shown on a directional basis without current-cost adjustment. Source: Bureau of Economic Analysis **Disinvestment, or net negative financial inflows, occurs when flows from U.S. affiliates to their parent companies are greater than flows from parents to affiliates. Net negative flows may be due to reductions of equity (selloffs) in their affiliates by parents, distributions of earnings by affiliates to their parents, or net loan payments from affiliates to parents. 10. U.K. Islands, Caribbean 9. Norway 8. Germany 7. Nether- lands 6. Ireland 5. Switzer- land 4. Canada 3. Luxem- bourg 2. United Kingdom 1. Japan $44.9 B $41.9 B $26.1 B $23.3 B $17.0 B $15.4 B $12.8 B $11.9 B $9.3 B $8.8 B Top Countries by FDIUS Flows 2013 Japan Ranks as Largest Foreign Direct Investor in the United States in 2013 Japan was the United States’ largest foreign investor in 2013 at nearly $45 billion. Japanese investment consti- tuted nearly one-fifth of all foreign investment in the United States last year. The United Kingdom, Luxem- bourg, Canada, and Switzerland rounded out the top five largest investors in the United States. Ireland, the sixth largest investor, provided $15 billion, followed by the Netherlands, which was the largest investor in 2012. Germany, Norway, and the British Caribbean Islands took the remaining top spots in 2013. As a group, the top 10 investing countries represented 92 percent of all foreign direct investment in the United States in 2013. Data by country are shown on a directional basis without current-cost adjustment. Source: Bureau of Economic Analysis
  • 6. 5© Organization for International Investment 2014 European Investors Dominate FDIUS Cumulatively, Europe is the largest regional investor in the United States. It provided more than two-thirds of all foreign investment through 2013. These figures include the 28 European Union countries and other European nations with an investment stake in the United States. For example, two non-EU member coun- tries—Switzerland and Norway—accounted for more than 10 percent of cumulative investment from Europe by the end of 2013. The Asia and Pacific region ranked second accounting for 17 percent of FDIUS stock through 2013. Canada held nine percent. The Caribbean countries made up the fourth-largest investment region at $74 billion as of year-end 2013. The British Islands (British Virgin Islands, Cayman Islands, Montserrat, and Turks and Caicos Islands) ranked first in Caribbean investment. The stock of direct investment from South and Central America, the Middle East, and Africa remains tiny. By the end of 2013, each represented less than one per- cent. Africa $2 B Middle East $21 B South & Central America - $26 B Caribbean $74 B Canada $238 B Asia & Pacific $470 B Europe $1,934 B (European Union: $1,685 B) Cumulative Foreign Direct Investment in the United States by Region, 2013 Foreign Direct Investment in the United States - 2014 Report Data are shown on a historical-cost basis, or cost at time of investment. Source: Bureau of Economic Analysis Rank Country 2012 2013 Percent Change 1. Japan $24,830 $44,861 81% 2. United Kingdom $25,250 $41,909 66% 3. Luxembourg $8,673 $26,101 201% 4. Canada $15,339 $23,336 52% 5. Switzerland -$2,439 $16,994 n/a 6. Ireland -$1,027 $15,351 n/a 7. Netherlands $36,009 $12,821 -64% 8. Germany $7,337 $11,859 62% 9. Norway $2,787 $9,256 232% 10. U.K. Islands, Caribbean $5,942 $8,801 48% 11. South Korea $5,616 $6,632 18% 12. France $22,882 $3,326 -85% 13. Mexico $2,035 $3,130 54% 14. China $3,491 $2,419 -31% 15. Denmark $119 $2,374 1,895% 16. Bermuda -$3,101 $2,310 n/a 17. Italy $2,226 $2,138 -4% 18. Sweden $2,066 $2,087 1% 19. Spain $1,654 $1,686 2% 20. Hong Kong $1,334 $1,390 4% Inward Investment from Leading Countries, 2012-2013 (in millions of dollars) Norway and Denmark Post Impressive Growth Rates in FDIUS Between 2012 and 2013 Two Scandinavian countries substantially increased their foreign direct investment positions in the United States between 2012 and 2013. Norway more than tripled its investment, and Denmark raised its stake nearly twentyfold. Inward investment from sixth-ranked Ireland totaled $15.4 billion in 2013 after a billion dollar disinvestment in 2012. By comparison, direct investment from the Netherlands shrank 64 percent in 2013 from $36 billion in 2012. French investment also dropped sharply, falling to $3.3 billion in 2013 from $22.9 billion the previous year. Notably, Chinese direct investment flows fell in 2013 after rising every year since 2009. Italian investment was down by four percent between 2012 and 2013. In all, only four of the top 20 countries decreased their investment holdings in the United States in 2013. Data by country are shown on a directional basis without current-cost adjustment. Source: Bureau of Economic Analysis
  • 7. Manufacturing is Largest Industry for Foreign Investors All sectors of the U.S. economy represent significant business opportunities for foreign companies. Exceeding $900 billion in 2013, manufacturing account- ed for one-third of cumulative foreign direct investment. Because the United States has the world’s largest and most liquid financial markets, foreign companies, on a cumulative basis, have invested heavily in the U.S. finance and insurance industries, reaching $365 billion by year-end 2013. International companies have spent more than $300 billion in wholesale trade over time. Banking, information, and professional, scientific, and technical services each received more than $100 billion in cumulative foreign direct investment through 2013. Other Industries $590 B Real Estate & Leasing - $51 B Retail Trade - $60 B Professional, Scientific & Technical Services $104 B Banking $181 B Wholesale Trade $329 B Finance & Insurance $365 B Manufacturing $936 B Information $149 B Cumulative FDIUS by Industry 2013 6© Organization for International Investment 2014 Foreign Direct Investment in the United States - 2014 Report Data are shown on a historical-cost basis, or cost at time of investment. Source: Bureau of Economic Analysis ChinaIndiaRussiaBrazil South Africa 2013 2012 2011$3.7 B $0.8 B -$0.6 B -$0.2 B $0.7 B -$0.1 B $1.2 B $0.3 B $0.7 B $3.5 B $0.1 B $1.1 B -$0.01 B $0.5 B $2.4 B Inward Investment Flows from BRICS Countries 2011-2013 China Leads Again as Largest U.S. Investor Among (BRICS) Countries in 2013 The large emerging economies of Brazil, Russia, India, China, and South Africa are known collectively as the BRICS. Despite their size, their combined investment in the United States totaled just 1.5 percent of all foreign investment in 2013. At $2.4 billion, China ranked as the largest BRICS investor in 2013. Its investment tripled from 2011 to 2012, but dropped to $2.4 billion in 2013. South Africa’s investment more than tripled between 2012 and 2013 to $500 million. Russia invested nearly $800 million in 2013 after a year of disinvestment. In contrast, Brazil and India posted disinvestments in 2013. Brazil’s U.S. investment of $3.7 billion in 2011 outpaced the other BRICS over the past three years. India’s investment in the United States has been mod- est totaling less than $1.5 billion in 2011 and 2012. Even as the BRICS invest more globally, their combined investment in the United States remains small. According to UNCTAD’s WIR, the BRICS represented 14 percent of total worldwide investment outflows in 2013. China and Russia led the BRICS in global invest- ment. Data by country are shown on a directional basis without current-cost adjustment. Source: Bureau of Economic Analysis
  • 8. 7© Organization for International Investment 2014 Chemicals Top FDIUS Manufacturing Sector International firms invest heavily in U.S. manufacturing. Chemicals, with $280 billion in cumulative foreign direct investment by the end of 2013, represented nearly a third of cumulative foreign direct investment in U.S. manufacturing. Foreign companies spend billions every year in the U.S. chemicals industry because it boasts a highly educated workforce, world-class research cen- ters, strong intellectual property protections, and a robust regulatory system. Foreign investment in the transportation equipment industry, which mostly covers auto and auto parts man- ufacturing, totaled $110 billion through 2013. Inter- national companies invested a total of $108 billion in petroleum and coal products by 2013. Machinery ranked fourth at $87 billion the same year. The non- metallic minerals products industry, made up largely of cement and concrete manufacturing, ranked fifth receiving $55 billion in cumulative foreign direct invest- ment through 2013. Other Manufacturing $93 B Food $51 B Electrical Equipment, Appliances, & Components - $47 B Primary & Fabricated Metals - $53 B Nonmetallic Mineral Products $55 B Computers & Electronic Products $49 B Machinery $87 B Transportation Equipment $110 B Petroleum & Coal Products $108 B Chemicals $280 B Cumulative FDIUS in Manufacturing 2013 Foreign Direct Investment in the United States - 2014 Report Data are shown on a historical-cost basis, or cost at time of investment. Source: Bureau of Economic Analysis Finance and Insurance is Fastest Growing Industry Segment Foreign direct investment in finance and insurance rose to $24.1 billion in 2013 from $4.7 billion in 2012, grow- ing faster than foreign investment flows to other sec- tors of the American economy. The information sector attracted $26.3 billion in foreign direct investment in 2013, a fourfold increase over the previous year. Foreign investment in U.S. wholesale trade grew nearly 50 percent to $31.7 billion in 2013. Foreign direct investment shrank in just two sectors of the U.S. economy last year. International firms lowered their investment holdings in U.S. real estate and leasing to $200 million in 2013. International companies reduced investment in professional, scientific and tech- nical services by nearly 50 percent between 2012 and 2013. 2012 2013 Retail Trade Professional, Scientific, & Technical Services Information Banking Wholesale Trade Finance & Insurance Manufacturing Real Estate & Leasing $93.8 B $95.0 B $7.0 B $5.4 B $21.6 B $31.7 B $10.1 B $4.0 B -$0.8 B $4.4 B $5.8 B $26.3 B $4.7 B $24.1 B $2.4 B $0.2 B Inward Investment Flows by Industry 2012-2013 Data by industry are shown on a directional basis without current-cost adjustment. Source: Bureau of Economic Analysis
  • 9. Foreign Direct Investment in the United States - 2014 Report 8© Organization for International Investment 2014 Food Realizes Large Growth in FDIUS Last Year At nearly $95 billion, international investment in manu- facturing provided more than 40 percent of total foreign direct investment inflows in 2013. Chemicals manufac- turing, dominated by pharmaceuticals and medicines, received $56 billion in foreign investment in 2013, a 22 percent increase over 2012. U.S. food manufacturing was another important sector for foreign investors last year, with spending rising to $13.2 billion, nearly quadrupling from $3.5 billion in 2012. Foreign investment in U.S. machinery manufactur- ing grew to $12 billion in 2013. Foreign investment dropped in two key U.S. manufac- turing sectors. In transportation equipment, inward investment flows fell below $1 billion in 2013 compared to $6.9 billion in 2012. In electrical equipment, appli- ances, and components manufacturing, foreign direct investment shrank to $6.4 billion in 2013 from $23.1 bil- lion the previous year. Electrical Equipment, Appliances, & Components Food Machinery Transportation Equipment Primary & Fabricated Metals Chemicals 2012 2013 $46.4 B $56.4 B $6.9 B $0.7 B $8.5 B $12.1 B $6.4 B $23.1 B -$0.02 B $2.0 B $3.5 B $13.2 B Inward Investment Flows by Selected Manufacturing Industries, 2012-2013 Data by industry are shown on a directional basis without current-cost adjustment. Source: Bureau of Economic Analysis
  • 10. FDIUS Flows 2009-2013 2013 2009 2010 2011 2012 2013 2009-2013 Europe $1,933,589 $99,073 $151,055 $128,687 $117,723 $138,393 40% Austria $5,948 (D) $136 $177 $423 $568 n/a Belgium $65,135 $13,262 $5,640 $10,284 $11,813 -$12,811 n/a Cyprus $2,406 (D) -$173 (D) (D) (D) n/a Denmark $10,076 $1,171 $1,472 $462 $119 $2,374 103% Finland $7,597 (D) -$179 $660 -$214 $619 n/a France $226,131 $25,369 $8,865 $795 $22,882 $3,326 -87% Germany $208,841 $12,320 $18,760 $16,396 $7,337 $11,859 -4% Hungary $20,116 $266 -$26,488 -$3,650 $2,569 -$162 n/a Ireland $26,219 -$1,348 $5,417 -$1,696 -$1,027 $15,351 n/a Italy $25,384 -$2,462 $1,304 $3,334 $2,226 $2,138 n/a Luxembourg $201,603 $17,349 $29,461 $11,989 $8,673 $26,101 50% Netherlands $273,884 $5,018 $20,772 $8,457 $36,009 $12,821 156% Norway $26,075 $577 $885 $7,743 $2,787 $9,256 1504% Russia $6,197 -$746 -$1,905 $693 -$220 $754 n/a Spain $48,528 $4,569 $4,410 $5,923 $1,654 $1,686 -63% Sweden $44,397 $1,381 $10,903 $2,779 $2,066 $2,087 51% Switzerland $209,397 $10,710 $41,406 $19,894 -$2,439 $16,994 59% United Kingdom $518,643 $18,373 $30,069 $46,316 $25,250 $41,909 128% Asia and Pacific $469,610 $5,482 $26,875 $50,832 $31,922 $53,781 881% Australia $44,742 -$3,850 $4,047 $21,163 -$6,209 -$3,079 n/a China $8,073 $500 $1,037 $1,105 $3,491 $2,419 384% Hong Kong $5,860 -$10 $271 $236 $1,334 $1,390 n/a India $7,118 $490 $1,289 $1,241 $742 -$11 n/a Japan $342,327 $6,544 $15,805 $17,077 $24,830 $44,861 586% Singapore $19,760 $1,328 $1,496 $2,862 $2,082 $1,148 -14% South Korea $32,456 $236 $2,245 $4,798 $5,616 $6,632 2710% Taiwan $6,420 -$405 $726 $284 $476 $997 n/a Canada $237,921 $30,366 $7,357 $18,790 $15,339 $23,336 -223% Caribbean $73,549 $6,897 $10,599 $13,937 $2,810 $11,187 62% Curacao* $3,168 -- -- $243 $478 -$39 n/a United Kingdom Islands, Caribbean $80,106 $2,481 $5,627 $14,859 $5,942 $8,801 255% South and Central America $26,152 $1,093 $2,824 $7,200 $1,427 $3,041 178% Brazil $1,054 -$1,539 $2,718 $3,681 -$614 -$115 n/a Mexico $17,610 $2,469 -$123 $2,432 $2,035 $3,130 27% Panama $1,231 $144 -$553 $87 -$10 $75 -48% Venezuela $4,718 $158 $420 $503 $576 $148 -6% Middle East $21,166 $1,366 -$$1,747 $8,429 $180 $959 -330% Israel $9,471 $1,166 $273 $6,202 $31 $134 -89% Qatar $2,605 $174 (D) $19 $8 (D) n/a United Arab Emirates $1,804 $151 -$1,669 $630 -$117 -$727 n/a Africa $1,968 -$$672 $1,085 $1,988 $280 $70 n/a South Africa $1,052 -$217 $126 $261 $146 $525 n/a Other Areas BRICS** $23,494 -$1,512 $3,265 $6,981 $3,545 $3,572 n/a European Union (28) $1,685,337 $92,686 $110,758 $102,842 $118,587 $108,134 17% Appendix A: FDIUS by Selected Countries (millions of dollars) Cumulative FDIUS Through 2013 D Suppressed to avoid disclosure of individual companies. *Prior to 2011, Curacao was included in the Netherlands Antilles (not shown here). **BRICS countries are Brazil, Russia, India, China, and South Africa. Source: Bureau of Economic Analysis
  • 11. FDIUS Flows 2009-2013 2013 2009 2010 2011 2012 2013 2009-2013 Manufacturing $935,728 $53,416 $91,896 $83,627 $93,825 $94,973 78% Food $50,983 $2,756 $14,545 -$1,127 $3,544 $13,230 380% Chemicals $280,445 $12,299 $15,273 $42,689 $46,373 $56,367 358% Basic chemicals $53,961 -$1,193 $10,467 $3,149 $15,741 $12,486 n/a Pharmaceuticals & medicines $167,814 $12,868 $419 $36,840 $24,434 $37,384 191% Primary & fabricated metals $52,989 $3,894 $4,816 $5,026 -$16 $2,035 -48% Primary metals $30,631 $4,109 $2,963 $2,854 -$3,143 $267 -94% Machinery $87,188 $5,402 $1,234 $1,805 $8,479 $12,079 124% Engines, turbines, & power transmission equipment $27,867 $4,169 $531 (D) (D) $3,676 -12% Computers & electronic products $49,352 -$3,974 $5,399 $3,385 $5,513 -$2,960 n/a Semiconductors & other electronic components $28,395 -$780 $4,889 $3,580 $3,290 -$1,166 n/a Electrical equipment, appliances, & components $47,310 $2,187 -$121 $2,562 $23,100 $6,410 193% Transportation equipment $110,327 $16,035 $11,145 $6,431 $6,941 $706 -96% Motor vehicles, bodies & trailers, & parts $74,371 $13,309 $10,260 $3,709 $5,907 $924 -93% Aerospace products & parts $22,671 $1,007 $1,290 $2,468 $357 $457 -55% Beverages & tobacco products $29,241 (D) (D) $2,095 -$1,590 $3,749 n/a Petroleum & coal products $108,339 $8,068 $25,274 (D) $2,620 (D) n/a Nonmetallic mineral products $55,461 $1,771 -$297 $480 -$3,899 $2,764 56% Cement & concrete products $45,748 $2,207 -$315 -$308 -$4,334 $324 -85% Medical equipment & supplies $29,216 $2,014 $6,527 (D) $1,406 (D) n/a Wholesale trade $328,546 $11,628 $23,806 $26,548 $21,591 $31,733 173% Motor vehicles & motor vehicle parts & supplies $59,731 -$1,955 -$302 $5,395 $2,763 $5,863 n/a Electrical goods $51,539 $430 $461 $6,386 $6,611 $5,417 1160% Petroleum & petroleum products $57,641 $9,140 $2,703 $15,805 $6,181 $7,282 -20% Professional & commercial equipment & supplies $29,300 -$221 $1,254 $2,312 $1,470 -$36 n/a Drugs & druggists’ sundries $29,258 $4,718 $10,910 -$5,840 $1,460 $4,466 -5% Retail trade $59,870 $4,168 -$$1,445 $2,181 $4,422 $6,973 67% Food & beverage stores $24,705 $3,850 $2,292 $366 $1,116 $1,555 -60% Information $148,551 -$$7,876 -$$10,199 -$$5,301 $5,796 $26,283 n/a Publishing industries $46,145 -$1,571 -$8,039 $293 $5,177 -$5,330 n/a Software publishers $32,204 $31 $530 $110 $3,767 -$5,983 n/a Telecommunications $55,603 -$934 $647 $3,376 $503 $18,721 n/a Depository institutions (banking) $181,391 $16,586 $12,367 $26,049 -$$752 $4,008 -776% Banks $151,678 $10,336 $6,864 $17,927 -$4,768 $3,465 -66% Branches & agencies $29,713 $6,250 $5,504 $8,122 $4,016 $543 -91% Finance (except depository institutions) & insurance $364,727 $28,483 $35,514 $16,719 $4,674 $24,075 -115% Finance, except depository institutions $192,561 $14,971 $26,380 $24,262 $8,565 $12,156 -19% Insurance carriers & related activities $172,165 $13,512 $9,134 -$7,543 -$3,891 $11,919 -12% Real estate & rental & leasing $50,651 -$$1,021 -$$581 $630 $2,380 $245 n/a Real estate $36,518 $692 $606 $91 $1,012 $147 -79% Professional, scientific, & technical services $104,233 $2,412 $15,699 $4,951 $10,115 $5,446 126% Computer systems design & related services $35,006 $572 $12,235 $1,306 $9,184 $953 67% Advertising & related services $24,895 $1,995 $291 $23 $30 $593 -70% Other industries $590,260 $35,808 $30,992 $74,458 $27,629 $37,032 3% Mining $150,386 $7,591 $21,767 $50,064 $6,983 $10,632 40% Utilities $67,441 $8,768 $1,068 $2,873 $4,185 $7,032 -20% Electric power generation, transmission, & distribution $63,219 $9,880 $2,474 $2,570 $2,829 $6,105 -38% Transportation & warehousing $47,776 $5,796 -$1,072 -$2,769 $1,276 $5,655 -2% Pipeline transportation $22,370 $2,354 -$194 -$2,561 $1,457 (D) n/a Holding companies (nonbank) $229,895 $6,999 $5,346 $15,485 $18,212 $4,348 -38% Administrative & support services $30,173 (D) (D) $3,120 -$3,203 -$1,750 n/a Addendum: Petroleum* $307,588 (D) $49,413 $79,857 $15,174 $13,466 n/a Appendix B: FDIUS by Selected Industries (millions of dollars) Cumulative FDIUS Through 2013 D Suppressed to avoid disclosure of individual companies. *Petroleum consists of oil and gas extraction; support activities for oil and gas extraction; petroleum and coal products manufacturing; petroleum and petroleum products wholesale trade; gasoline stations; petroleum tanker operations; pipeline trans- portation of of crude oil, refined petroleum products, and natural gas; and petroleum storage for hire. Source: Bureau of Economic Analysis
  • 12. This report was prepared by Content First, a full-service public policy research firm based in Washington, D.C. Content First provides trade associ- ations, businesses, law firms, consulting firms and the public affairs commu- nity with the data they need to make strategic decisions, build their reputa- tions, and advocate for policy change more effectively. In today’s competitive, information-based economy, having the right content is key to success. At Content First, we help our clients reach their goals with public policy data, statistics, and research that are accurate, timely, and tar- geted. But we know that simply providing data isn’t enough. To be persuasive, infor- mation needs to be understandable. That’s why Content First makes the numbers meaningful and relevant, in reports that combine thoughtful analy- sis with easy-to-grasp presentation and clear calls to action. With research reports from Content First, our clients: Develop policies to support their advocacy goals Make informed business decisions Improve their competitive advantage and strengthen their reputations Satisfy their customers Save time and money Our clients include prominent national and international trade associations such as the U.S. Chamber of Commerce, the Embassy of Switzerland, Global Automakers, and the Confederation of British Industry. The Content First team has more than 40 years of experience in presenting industry research and public policy issues to government officials, business leaders and the press. For more information about Content First, or to work with us, please contact us at: Content First, LLC Washington, DC Phone: 202.423.4777 Fax: 202.318.0875 www.contentfirst.com info@contentfirst.com About Content First, LLC