Mansfield mfg & fdi presentation

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Mansfield mfg & fdi presentation

  1. 1. EMBRY-RIDDLE W O R L D W I D E Robert E. Mansfield, Jr., Brig Gen, USAF (RET) Executive Director Center for Aviation and Aerospace Leadership Foreign Direct Investments in the U.S. and the U.S. Aerospace Manufacturing Industry Foreign Direct Investment into the U.S.
  2. 2. EMBRY-RIDDLE W O R L D W I D E Overview Background Key Drivers of Foreign Direct Investment AT Kearney 2013 Confidence Index Foreign Direct Investment and GDP Growth in the United States Size and Scope of Foreign Direct Investment in the United States Foreign Direct Investment in the United States by Industry Foreign Direct Investment in the United States by Region Foreign Direct Investment in the United States and the Aerospace Industry by – Position – Inflows – Income Foreign Direct Investment Benefits for the U.S. Major Foreign Aerospace & Defense Manufacturers 2Foreign Direct Investment in the U.S 2014
  3. 3. EMBRY-RIDDLE W O R L D W I D E Background Foreign direct investment plays an important role in the U.S. economy – Job creation – An increase in wealth and living standards – Growth and innovation that drive U.S. economic competitiveness. The U.S. has been the world’s largest recipient of FDI since 2006. Countries have confidence in the United States 3Foreign Direct Investment in the U.S 2014 Note: The Bureau of Economic Analysis defines Foreign Direct Investment in the U.S. (inward direct investment) as ownership by a foreign investor of at least 10 percent of a U.S. business. Note: The Bureau of Economic Analysis defines Foreign Direct Investment in the U.S. (inward direct investment) as ownership by a foreign investor of at least 10 percent of a U.S. business.
  4. 4. EMBRY-RIDDLE W O R L D W I D E Key Drivers of FDI into the U.S. Open investment environment Large economy with big and diverse consumer markets Huge skilled labor force Excellent schools and community colleges World’s top research universities Predictable regulatory history with appropriate intellectual property protections Robust infrastructure Stable and growing energy sector with new sources of energy 4Foreign Direct Investment in the U.S 2014
  5. 5. EMBRY-RIDDLE W O R L D W I D E AT Kearney 2013 Confidence Index 5 Foreign Direct Investment in the U.S 2014 Note: Confidence measured on a scale from 0 (no confidence) to 3 (high confidence)
  6. 6. EMBRY-RIDDLE W O R L D W I D E GDP Growth and FDI 6Foreign Direct Investment in the U.S 2014
  7. 7. EMBRY-RIDDLE W O R L D W I D E Size and Scope of FDI into the United States The U.S. consistently ranks as one of the top destinations in the world for FDI. As of 1 January 2013, FDI inflows totaled $187.5 billion The U.S. manufacturing sector draws a considerable share of FDI, led by pharmaceuticals, petroleum, coal, and aerospace products. Since 2010, Japan, Canada, Australia, and seven European countries have accounted for more than 80 percent of new FDI. However, small flows from emerging economies like China and Brazil are growing rapidly 7Foreign Direct Investment in the U.S 2014 Source: New Report: Foreign Direct Investment In the United States. Retrieved from http://www.whitehouse.gov/the-press-office/2013/10/31/new-report- foreign-direct-investment-united-states
  8. 8. EMBRY-RIDDLE W O R L D W I D E Top Investor Countries 2010-2012 Average 8Foreign Direct Investment in the U.S 2014
  9. 9. EMBRY-RIDDLE W O R L D W I D E Trends in Top U.S. Aerospace Export Markets 9 Millions of U.S. Dollars Source: U.S. Department of Commerce, International Trade Administration, TradeStats Express.
  10. 10. EMBRY-RIDDLE W O R L D W I D E Trends in U.S. Aerospace Imports by Country 10 Source: U.S. Department of Commerce, International Trade Administration, TradeStats Express,
  11. 11. EMBRY-RIDDLE W O R L D W I D E Trade Balance in Selected Products 2012 11 *Due to non-disclosure requirements, certain commodity classifications are subject to suppression and require a change in aggregation. For additional information see www.census.gov/ft900. Source: U.S. Bureau of Economic Analysis
  12. 12. EMBRY-RIDDLE W O R L D W I D E Aerospace Exports to World by State 2013 12 Rank State 2009 2010 2011 2012 2013 2012 to 2013 (% Change) 1 Washington 26,479 23,322 27,163 37,111 43,711 18 2 California 6,683 6,100 6,798 7,995 10,073 26 3 Connecticut 6,241 6,813 6,654 6,982 7,809 12 4 Georgia 3,442 4,499 5,929 5,639 6,753 20 5 Kentucky 4,721 3,560 3,522 3,835 5,631 47 6 Texas 4,893 4,484 5,145 5,636 5,612 0 7 Florida 3,977 4,471 4,989 5,736 5,272 -8 8 Ohio 4,118 4,698 5,427 5,663 5,063 -11 9 Arizona 2,148 1,987 2,373 2,603 3,095 19 10 New York 2,701 2,428 2,590 2,512 2,085 -17 11 Kansas 2,868 2,124 2,127 2,101 1,858 -12 12 Arkansas 1,679 585 490 1,867 1,843 -1 Millions of U.S. Dollars Source: TradeStats Express, International Trade Administration, U.S. Department of Commerce, February 2014.
  13. 13. EMBRY-RIDDLE W O R L D W I D E Economic Activities of US Affiliates of Foreign Companies 13Foreign Direct Investment in the U.S 2014
  14. 14. EMBRY-RIDDLE W O R L D W I D E FDI Position in U.S. by Industry 2012 14Foreign Direct Investment in the U.S 2014 Source: Bureau of Economic Analysis
  15. 15. EMBRY-RIDDLE W O R L D W I D E FDI Position in U.S. by Region 2012 15Foreign Direct Investment in the U.S 2014 Source: Bureau of Economic Analysis
  16. 16. EMBRY-RIDDLE W O R L D W I D E FDI Position: All Industries 16Foreign Direct Investment in the U.S 2014 Source: Bureau of Economic Analysis
  17. 17. EMBRY-RIDDLE W O R L D W I D E FDI Position: Manufacturing and Aerospace 17Foreign Direct Investment in the U.S 2014 Source: Bureau of Economic Analysis
  18. 18. EMBRY-RIDDLE W O R L D W I D E FDI Financial Inflows: All Industries 18Foreign Direct Investment in the U.S 2014 Source: Bureau of Economic Analysis
  19. 19. EMBRY-RIDDLE W O R L D W I D E FDI Financial Inflows: Manufacturing and Aerospace 19Foreign Direct Investment in the U.S 2014 Source: Bureau of Economic Analysis
  20. 20. EMBRY-RIDDLE W O R L D W I D E FDI Income: All Industries 20Foreign Direct Investment in the U.S 2014 Source: Bureau of Economic Analysis
  21. 21. EMBRY-RIDDLE W O R L D W I D E FDI Income: Manufacturing and Aerospace 21Foreign Direct Investment in the U.S 2014 Source: Bureau of Economic Analysis
  22. 22. EMBRY-RIDDLE W O R L D W I D E Top Foreign Aerospace & Defense Manufacturers Industry Week 1000 Rank (2013/2012)* Company Name Country Revenue (Millions of Dollars) Revenue Growth 52 / 59 Airbus Netherlands $ 74,694 14.45 167 / 158 BAE Systems PLC United Kingdom $ 27,036 -6.26 184 / 187 Finmeccanica SpA Italy $ 24,550 1.11 234 / 256 Rolls Royce Holdings PLC United Kingdom $ 19,655 8.94 654 / 702 Embraer SA Brazil $ 6,135 9.92 740 / 727 Dassault Aviation SA France $ 5,195 -3.83 780 / 823 Smiths Group PLC United Kingdom $ 4,884 6.62 818 / 925 Zodiac Aerospace France $ 4,548 25.65 828 / 888 MTU Aero Engines Holdings AG Germany $ 4,461 15.2 928 / 943 Saab AB Sweden $ 3,735 2.79 954 / 822 Gamesa Corporacion Tecnologica SA Spain $ 3,571 -20.19 *Rank based on 2012 Revenue Source: Industry Week 22Foreign Direct Investment in the U.S 2014
  23. 23. EMBRY-RIDDLE W O R L D W I D E Boeing’s Estimate of New Deliveries by 2031 23Arkansas Aerospace Summit 2014 Source: Boeing. Current Market Outlook 2012–2031.
  24. 24. EMBRY-RIDDLE W O R L D W I D E Projected Worldwide RPK Growth 2012–2031 24Arkansas Aerospace Summit 2014 Source: Japan Aircraft Development Corporation. Worldwide Market Forecast for Commercial Air Transport, 2012–2031.
  25. 25. EMBRY-RIDDLE W O R L D W I D E Boeing Air Freighter Forecast 25Arkansas Aerospace Summit 2014 Source: Boeing. Current Market Outlook 2012–2031.
  26. 26. EMBRY-RIDDLE W O R L D W I D E Summary FDI supports a host of benefits in the United States, notably good jobs and innovation led by research and development investment. Industrial countries are the primary source of FDI to the United States, however, Emerging markets are becoming a bigger source of FDI and their share should be expected to increase as institutional and structural barriers in those countries decline. About one-third of jobs at U.S. affiliates are in the manufacturing sector. FDI into the U.S. aerospace industry has increased over the past five years. Expect growth in global aerospace product and service demand. 26Foreign Direct Investment in the U.S 2014
  27. 27. EMBRY-RIDDLE W O R L D W I D E Aerospace Industry Report , 3rd Edition The third edition of the Aerospace Industry Report provides a comprehensive industry outlook with: 11 Chapters 408 Pages 174 Figures 28 Tables 86 Pages of Additional Facts, Figures and data 4th Edition in Work – Fall 2014 27

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