UEDA Summit 2012: Assets and Costs Everywhere, Grow Investment Here (Moudry & Velasquez)
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www.SelectUSA.gov SelectUSA: Your Federal Partner to Attract, Retain, and Expand Investment UEDA Annual Summit October 23, 2012 Rebecca Moudry Manager, SelectUSA 1
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There has been positive news recently about reshoring and the accompanying expansion of American jobs. In order to support this trend, economic developers must be fluent in the diverse costs and other risks companies need to assess when deciding where to produce, source, or locate. SelectUSA, the federal initiative to promote investment in the United States, will lead a discussion with University-Economic Development partners to highlight important considerations for companies in deciding whether to locate, expand, or return to the U.S. Additionally, the Trade Adjustment Assistance for Firms program is another resource available to businesses seeking to regain their competitiveness against foreign-owned companies. Local economic developers interested in supporting their manufacturing base can assist local firms to access this federal program which offers a multitude of options including investment strategies intending to sustain and expand the U.S. job base.
Transcript of UEDA Summit 2012: Assets and Costs Everywhere, Grow Investment Here (Moudry & Velasquez)
www.SelectUSA.gov
SelectUSA: Your Federal Partner to Attract, Retain, and Expand Investment
UEDA Annual Summit October 23, 2012
Rebecca MoudryManager, SelectUSA
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www.SelectUSA.gov
• SelectUSA Mission: to facilitate business investment in the United States in order to support job creation, spur economic growth, and promote American competitiveness.
• Primary U.S. government-wide initiative to promote and facilitate business investment in the United States
• Housed in the International Trade Administration at the U.S. Department of Commerce - leverages staff in 72 markets around the world
• Geographically neutral in the United States
SelectUSA: Promoting Investment in the United States
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www.SelectUSA.gov3
FDI and the U.S. Economy$227 billion
5.3 million
33%
17%
$41 billion
18%
Size of FDI Flows into the U.S. in 2011
Workers Employed by U.S. Affiliates of Foreign Firms in the U.S. in 2010
U.S. Affiliates of Foreign Firms on average Pay 33% More than the economy-wide average in 2009
Percent of U.S. Manufacturing jobs from U.S. Affiliated of Foreign Firms in the U.S. in 2010
Amount U.S. Affiliates of Foreign Firms spent on R&D in the U.S. in 2010
Percent of all U.S. exports come from U.S. affiliates of foreign firms in 2010
Source: Bureau of Economic Analysis © International Trade Administration 2012
www.SelectUSA.gov
Share of Global FDI Flows Captured by the United States
Source: UN Conference on Trade and Development (UNCTAD)
U.S. FDI Trends
© International Trade Administration 2012
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www.SelectUSA.gov5
Figures in USD MillionsSource: Bureau of Economic Analysis
U.S. FDI Trends
© International Trade Administration 2012
www.SelectUSA.gov6
U.S. FDI Source Markets & Growth
Largest Sources of FDI in the United Statesby 2011 FDI Total Stock
Total Stock Rank Country Total Stock in U.S.
Billion USD1 United Kingdom 527.8
2 Japan 293.8
3 Germany 265.4
4 Canada 244.6
5 France 201.9
6 Netherlands 132.5
7 Switzerland 126.1
8 Ireland 98.2
9 Australia 58.6
10 Belgium 53.1
Fastest Growing Sources of FDI in the United States, by Compound Annual Growth Rate
(2006-2011)
Growth Rank Country Growth Rate
Total Stock in U.S.
Billion USD1 Israel 78.59% 26.82 China 71.25% 9.53 New Zealand 56.14% 64 India 40.81% 9.85 Ireland 38.58% 98.16 Belgium 33.40% 53.17 Singapore 28.84% 22.48 Spain 25.57% 48
9 United Arab Emirates 23.38% 17.4
10 Norway 22.4 29.1
© International Trade Administration 2012
Note: Numbers denote 5 year compound annual growth rate (2007-2011) of the stock FDI position and the total stock of FDI in the United States
Source: Department of Commerce, Bureau of Economic Analysis – FDI by Ultimate Beneficiary Owner
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Investment Motives & Determinants
Source: FDI Markets
Shifts in Global Company Motives for Investing in the United States
© International Trade Administration 2012
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University – Led InvestmentIsofoton (Spain) + University of Toledo•Solar module assembly plant in Napolean, Ohio •$30 million investment, anticipates 120 new hires•Has an R&D and economic cooperation agreement with the University of Toledo.
Honam Petrochemical (South Korea) + Auburn University•Manufacturing facility for polypropylene resin materials in Auburn, Alabama •$9.25 million initial investment, 40 new jobs•Relationship with Engineering School at Auburn University – R&D projects and opportunities for students
www.SelectUSA.gov9
SelectUSA Can Help
Business Solutions: Help identify federal programs and services available to firms, provide information and establish connections.
Ombudsman Assistance: Address questions involving Federal regulations or programs, or activities related to investment
Economic Development Organization Counseling: As subject-Matter experts, SelectUSA staff can help recruit and retain investment
Advocacy for U.S. Cities, States and Regions: SelectUSA helps level the playing field for U.S. EDOs competing with foreign locations
Investment Events and Facilitated Missions: Leverage the Foreign Commercial Service network across 72 countries
www.SelectUSA.gov10
Building A Solid Investment Strategy
1. Build on existing relationships, expand your networks
2. Be realistic and specific about opportunities
3. Prioritize Potential & Existing Investor Care
4. Leverage partners/resources to reach potential investors and demonstrate leadership
www.SelectUSA.gov
For Example:
• Promotion event for State of Louisiana (e.g. presentation by FDI practitioners or a match-making reception)
• One-on-one meetings between Louisiana and Chinese government representatives
• Meetings with Chinese companies that Louisiana has identified
Single Location Promotion (SLP) Tailor-made events developed collaboratively, promoting individual U.S. jurisdictions as FDI destinations.
Help U.S. EDOs in FDI Promotion
SHANGHAI
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www.SelectUSA.gov12
Upcoming Events
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Thank You
Rebecca MoudryManager, SelectUSAU.S. Department of CommerceTel: [email protected]
www.SelectUSA.gov
Southwest Trade Adjustment Assistance CenterSouthwest Trade Adjustment Assistance Center
• Trade Act of 1974
• Funded by the Economic Development Administration, U.S. Dept. of Commerce
• Employees of The University of Texas at San Antonio
• 11 TAAC offices nationwide
• SWTAAC territory: Texas, Oklahoma, and Louisiana
Program ObjectiveProgram Objective
• To assist U.S. manufacturing and service firms hurt by foreign investment to regain profitable growth by
providing outside consulting services
• Consulting services can be provided in the areas of: - Marketing - Manufacturing - Engineering - Finance- Employee Training - And other areas- New Product Development - Information Management Systems
What is the Cost Share for the Company?What is the Cost Share for the Company?
• Cost-Share Categories– Up to $30,000
• Client pays 25% of all projects incurred• SWTAAC pays 75% of all projects incurred
– Up to $150,000• Client pays 50% of all projects incurred• SWTAAC pays 50% of all projects incurred
Examples of Eligible Consulting ProjectsExamples of Eligible Consulting Projects
• Website Development
• MIS Updates• Quality Systems (ISOs, Six Sigma)• Safety Consulting and Training• Other Training (Software, Trade Specific, Office
Skills, etc.)• Lean Manufacturing• Supply Chain Solutions• Industrial Marketing & Market Research
Program PhasesProgram Phases
1. Certification• No cost to company
2. Diagnostic Analysis/Adjustment Proposal• Company is responsible for 25% of diagnostic
costs– Estimated between $1,200 to $1,900
3. Project Implementation• Company is responsible for 25% up to 50% of
the project costs
GAO ANALYSISGAO ANALYSIS
• Participating Firms Sales Rose 3 – 6% Annually
• Participating Firms Had 4% annual Increases in Productivity
• Participating Firms Performed Higher in Growing Markets – Suggests Ability to Leverage Market Expansion
GAO ANALYSISGAO ANALYSIS
• 75% of Firms Surveyed Were Very Satisfied with Participation in TAAF Program
• 73% of Firms Surveyed Reported TAAF Can Be Associated with Increased Profitability
•57% of Firms Surveyed Reported TAAF Aided in Hiring Additional Employees
EFFECTIVENESS REPORTEFFECTIVENESS REPORT
• Over 77,000 jobs Impacted Nationally• EDA Investment $925/job• ROI over 1,300%
• Participating Firms Reported $3.4 Billion Increase in Sales• Participating Firms Reported 3,100 New Jobs
Thank You!Thank You!
For more information, please contact:
Robert VelasquezDirector
(800) 344-8872
All companies are exempt from the Freedom of Information Act.
