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FOREIGN DIRECT
INVESTMENT IN THE
CAROLINAS:
Challenges & Opportunities
Global Carolina Connections
August 21, 2019
FDI TRENDS
Global FDI Inflows – 2018
FDI in the US: 2008 - 2018
Source: UNCTAD
• 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?
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
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
WHAT ARE THE MOST IMPORTANT FACTORS OVERALL FOR WHERE TO MAKE INVESTMENTS?
2019 A.T. KEARNY FDI CONFIDENCE INDEX
2019 A.T. KEARNY FDI CONFIDENCE INDEX
WHICH FACTORS ARE MOST IMPORTANT FOR INCREASING FDI
2019 A.T. KEARNY FDI CONFIDENCE INDEX
TOP PROSPECTIVE HOST ECONOMIES
FDI investment PROJECTS into the US
by top source country 2014-2018
Source: fDimarkets
FDI investment PROJECTS into the US
by top industry 2014-2018
Source: fDimarkets
FDI projects into the Carolinas:
By Region 2013 – 2018 (by Number of projects)
Source: fDimarkets
FDI projects into the Carolinas:
By country 2014–2018
Source: fDimarkets
FDI PROJECTS INTO THE CAROLINAS:
BY INDUSTRY 2014–2018
Source: fDimarkets
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
International Investment Contributes to
North Carolina’s Economy
North Carolina vs. Its Neighbors
FDI jobs as a % of Total Employment
International Investment Contributes to
North Carolina’s Economy
North Carolina beats the
national average in its
portion of jobs supported
by international
investment.
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
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
International Investment Contributes to
South Carolina’s Economy
South Carolina vs. Its Neighbors
FDI jobs as a % of Total Employment
International Investment Contributes to
South Carolina’s Economy
South Carolina beats the
national average in its
portion of jobs supported
by international
investment.
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
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
US Business Climate & Employment
Expectations Slump
Trade Tensions, Skills Gap, Protectionism & Infrastructure of Greatest Concern
INTELLIGENT
LEADS
START HERE
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,
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.
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.
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.
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

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GCC Presentation by Steven Jast

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