Foreign Direct Investment in the Carolinas

1. Global Carolina Connections
August 22, 2018

2. Us workers earn $80,000at global companies - 24% higher than
the economy–wide average
6.8 MILLIONUS workers are employed by global investment,
producing 23% of all US exports
2.5 million US workers at global companies earn their
living in the manufacturing sector – that’s 37% of all FDI jobs

3. Total Foreign
Affiliate Employment
Manufacturing Foreign
Affiliate Employment
Total Private Employment
Manufacturing Employment
Index (2007=100)
Source: Bureau of Economic Analysis

4. What are the most important factors overall for where to make investments?

6. Globally, inward FDI fell by 23% to 1.43 trillion in 2017
from the previous year (UNCTAD)
US retained its #1 position in the world as a destination for FDI
UNCTAD projects that global FDI in 2018 will increase by 10%,
remaining well below the average over the past several years
$292 billion FDI in the US in 2017. 4th strongest year over the
past decade

7. Projections for global FDI in 2018 show fragile growth. Global flows are forecast to increase
marginally, by up to 10 per cent, but remain well below the average over the past 10 years.

8. Japan
China
Germany
UK
Canada
France
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
18,000
2013 2014 2015 2016 2017
US$mill.
Source: fDimarkets

9. Source: fDimarkets
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
9,000
10,000
2013 2014 2015 2016 2017
US$mill.
Real Estate
Chemicals
Alternative/Renewable Energy
Automotive Components
Automotive OEM
Software & IT Services

10. 384,800 workers in the Carolinas are employed as a result of global
investment
194,500 workers in the Carolinas – more than 50% of FDI jobs in the
2 states – are in the manufacturing sector
More than 1,700 global employers have operations in the Carolinas
Top global employers include:
• Germany
• France
• Japan
• UK

11. At 8% of total employment, South Carolina is 2nd in the US in the
percentage of its workforce supported by global investment
In the past 5 years South Carolina’s FDI employment has increased by
22.7% while the state’s overall private sector employment rose by
12.4%

12. At 7% of total employment, North Carolina beats the national average in its
share of the workforce supported by global investment
In the past 5 years South Carolina’s FDI employment has increased by
29.3% while the state’s overall private sector employment rose by
11.6%

13. Source: fDimarkets
Western Europe
Canada
Asia Pacific
Middle East
Latin America & Caribbean
Emerging Europe

14. $0
$200
$400
$600
$800
$1,000
$1,200
$1,400
$1,600
2013 2014 2015 2016 2017
By Investment ($ mill)
0
5
10
15
20
25
30
35
40
2013 2014 2015 2016 2017
By Project
Germany UK Canada Japan Italy Germany China Japan Denmark Switzerland
Source: fDimarkets

15. Source: fDimarkets
$0
$200
$400
$600
$800
$1,000
$1,200
$1,400
2013 2014 2015 2016 2017
By Investment ($mill)
0
5
10
15
20
25
2013 2014 2015 2016 2017
By Project
Industrial Machinery
Plastics
Chemicals
Automotive Components
Metals
Pharmaceuticals
Rubber
Pharmaceuticals
Consumer Electronics
Automotive Components
Plastics
Metals

16. 10 is highest performance
relative to peers, 1 is lowest
Peer states:
GA, KY, TN, AL, PA, MA
Sources: CNBC, Forbes, Tax Foundation, Milken Institute
0
2
4
6
8
10
Overall Economic Strength
Business Environment
Business CostsHuman Capital
Technology & Innovation
Carolinas Peer Average