Foreign Investments Boost U.S. Industrial Manufacturing, with Auto Companies Leading the Way

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Researched by Industrial Info Resources (Sugar Land, Texas)--Since the end of the recession, direct foreign investment has played an increasingly important role in the U.S. Industrial Manufacturing Industry, in sectors ranging from heavy manufacturing to plastics to automotive production. So far this year, the industry has seen about $13 billion of direct foreign investment in projects that are being planned, developed or engineered, or are under construction. David Pickering, Industrial Info's Vice President of global research for the Industrial Manufacturing Industry, discussed these projects in a presentation.

Click on the video below to listen to Pickering discuss direct foreign investment in the U.S. Industrial Manufacturing Industry.


Not surprisingly, the automotive-related sectors account for a majority of the growth. Pickering said that the number of foreign-based automakers with facilities in the U.S. has grown with the influx of European companies, such as BMW, Mercedes-Benz and Volkswagen. This, in turn, has drawn tier suppliers from Europe to the U.S., boosting overall automotive spending by $7.4 billion in 2015 and $3.5 billion to date in 2016.

Geographically, the strongest investment growth can be found in the Great Lakes, Mid-Atlantic and Southeast regions. In particular, the Southeast has become the destination of choice for foreign investors looking to build auto-manufacturing plants, given its generally lower tax rates and non-union policies.

In addition, tier suppliers often set up shop in neighboring states, further boosting investments and spurring a positive ripple effect, Pickering said.

Not surprisingly, automotive-related companies account for the bulk of active projects in the Industrial Manufacturing Industry that are from foreign-based investors: Toyota, Honda, Fiat, Bridgestone and Daimler, to name a few.

But when looking at the dollar value of foreign-based investments, the other sectors, such as railroads and semiconductors, play a significant role. In particular, AMS AG's (Styria, Austria) $2 billion in investments are attributed to a single semiconductor plant.

Other non-automotive sectors in the Industrial Manufacturing Industry that are spending big include those for heavy manufacturing; distribution and warehousing; plastic and rubber products; fabricated metal products; and housing and building projects and furniture.

Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, five offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle™, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com/.