On a state-by-state basis, many of us in the manufacturing sector are keenly aware of the number of plants, jobs and investments that are coming from companies based outside of the U.S.
In February of this year, President Obama highlighted that fact by specifically visiting the BMW plant in Spartanburg, South Carolina. In that state alone 104,300 Americans are employed by the U.S. subsidiaries of global companies.
From a national standpoint, the numbers really stand out. From 2007 to 2012, foreign investment in U.S. manufacturing totaled $493 billion, compared with $270 billion the previous six years, according to the Organization for International Investment.
And the U.S. wants to keep this train moving forward. Just last week the House Committee on Energy and Commerce marked up the The Global Investment in American Jobs Act,which was introduced in the House of Representatives by Rep. Lee Terry (R-NE) and Rep. Jan Schakowsky (D - IL), and in the Senate by Sen. Bob Corker (R-TN) and Sen. Amy Klobuchar (D-MN).
The Global Investment in American Jobs Act directs the Secretary of Commerce to lead a comprehensive interagency review in order to develop a roadmap for Congress on ways to make the U.S. more attractive as a location for global companies to invest and expand. The interagency review will examine global economic trends; state, federal, and international best practices; and policies closely linked to recruiting foreign direct investment.
For an interesting analysis of both the pros and cons of foreign direct investment see “Discussing the Global Investment in American Jobs Act of 2013” by Martin Neil Baily, a senior fellow of Economics Studies at the Brookings Institute.
