WASHINGTON – Nancy McLernon, president and CEO of the Organization for International Investment (OFII), issued the following statement in releasing the organization’s new state-by-state data analysis, detailing the impact of international companies to the U.S. economy:
“International companies operating in the United States are a good measure of U.S. competitiveness. Today, 7.1 million U.S. workers are employed by international companies, earning an average of $81,000 in wages and benefits annually – 26 percent more than the private-sector average. What is even more interesting, however, is that international companies have created 62 percent of all new U.S. manufacturing jobs over the past five years, underscoring the importance of international companies to America’s economic well-being. In fact, international companies operating in states like Florida, Iowa, Michigan, North Carolina and Ohio have grown their manufacturing workforce by more than 20 percent over that period. As these government data show, international companies help diversify America’s economy, making it more resilient to downturns.”
Here is a national one-pager. Full state-by-state foreign direct investment (FDI) data are available at OFII’s website: https://ofii.org/in-your-state. It is a compilation of data released by the U.S. Bureau of Economic Analysis late last year. Below are a few key findings from this year’s release.
- Top Five States for FDI Jobs: California (769,200 jobs), Texas (596,900), New York (499,100), Florida (348,800) and Illinois (340,500). These five states account for 36 percent of all FDI jobs in the United States.
- Six States with the Highest Concentration of FDI Jobs (FDI jobs as a share of total private sector employment): New Jersey and South Carolina (tied at 8.2 percent), Kentucky (8.0 percent), New Hampshire (7.5 percent), and Connecticut and Indiana (tied at 7.2 percent). The national average is 5.6 percent.
- Ten States with the Fastest FDI Employment Growth Rate Over the Past Five Years: Utah (45.7 percent), Florida (43.8 percent), Tennessee (41.3 percent), Oregon (41.0 percent), Michigan (39.7 percent), Kentucky (37.1 percent), Mississippi (36.3 percent), South Dakota (36.0 percent), Missouri (35.0 percent) and Arizona (34.8 percent). The national average is 24.4 percent.
- Leading American Manufacturing: International companies were responsible for 62 percent of U.S. manufacturing job growth, contributing 377,200 of the 606,000 net manufacturing job gains made from 2011 to 2016 (latest available data). Ten states with the fastest FDI manufacturing growth rate include: Rhode Island, South Dakota, Oregon, Michigan, Kentucky, Nebraska, Iowa, Tennessee, Utah and Minnesota.
- Exporting American Made Goods: U.S. workers at international companies produce 25 percent of U.S. exports, shipping over a billion dollars in goods a day to customers around the world.
- Fueling American Innovation: American scientists and engineers employed by international companies are leading our nation’s innovation advantage. International employers spend $60 billion on U.S. research and development activities, or 16 percent of all R&D performed by U.S. companies.
