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Foreign Direct Investment in the US on the Rise

March 7, 2023 Karen Meier

Foreign Direct Investment in the US on the RiseDespite some negative headlines about declines in capital spending among corporations, year-end foreign direct investment (FDI) numbers for 2022 show there is strong interest in expansion within the United States, with Japan, Germany, Canada, the United Kingdom, Ireland, and France topping the list of investing countries.

Investing in the United States is attractive to international companies of all sizes for a number of different reasons:

  • overall positive business climates
  • availability of diverse workforce and higher education programs
  • reasonable regulatory environments and business-friendly tax structures
  • efficient freight options and solid transportation infrastructures
  • access to a strong and robust consumer market
  • strong concentration of industry clusters

For Some Companies, Solutions to Supply Chain Problems May Lay in the US

We’ve all read about supply chain disruptions brought on by global events including the COVID-19 pandemic (think lockdowns, labor shortages, and factory closures), Brexit, US tensions with China, and the Russia-Ukraine war, which created significant backlogs across several industries.

Camoin Associates’ engagement professionals speak daily with executives across the globe. Many of the decision makers we’ve spoken to who have plans to invest in the United States, either for the first time or to expand their US footprint, tell us they are doing so because of better proximity to their customers and to overcome current supply chain and logistics issues.

A graphic shows the locations and types of supply chain disruptions being experienced across the world. Source: https://www.morningstar.com

Source: https://www.morningstar.com/articles/1096095/where-does-the-supply-chain-crisis-stand-now

As companies figure out how to best address these issues, along with the ongoing demand for goods and services, it is likely that FDI in the United States will remain strong.

Continued increases in FDI announcements could also help communities struggling with workforce concerns. As expanding companies provide numbers and details on their labor needs, many of which will likely require specialized skills, this will help create more opportunities in higher education and technical skills, workforce training and certification programs.

Attracting Foreign Direct Investment to Your Community

International trade missions, targeted conferences, and communications that highlight regional advantages and incentives continue to be effective tools for attracting FDI. Economic development organizations that incorporate international prospecting strategies into their budget – like attending the SelectUSA Investment Summit – will be better positioned to identify companies that are looking to invest in the United States. Camoin Associates’ Lead Generation and Business Relationship Services Team can help. Contact us to learn more.

Discover your next investment opportunity at the 2023 SelectUSA Investment Summit, May 1-4The SelectUSA Investment Summit is the top event in the United States for FDI promotion, connecting investors, companies, economic development organizations (EDOs), and industry experts to seize every opportunity available to make investment deals happen through US investment. The 2023 Summit returns to National Harbor, MD, from May 1-4, 2023.

Recent Examples of Foreign Direct Investment in the US

Here is a small sampling of some of the announcements we’ve seen so far in 2023 from international companies planning to locate or expand in the United States, many of which are first time Investments:

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