Business Investment in the United States Presenter s Name Andrea Rosa Presenter s Title Commercial Specialist Referente per SelectUSA in Italia Event Name Roadshow/Italy Date October 22-26, 2012
The U.S. Business Climate #1 IESE Business School s 2012 Venture Capital and Private Equity Index UK: #3 France: #15 Germany: #9 #4 #4 #7 World Bank s Ease of Doing Business 2012 ranking UK: #7 France: #29 Germany: #19 AT Kearney s 2012 FDI Confidence Index UK: #8 France: # 17 Germany: #5 World Economic Forum s 2012-2013 Global Competitiveness rankings UK: #8 France: #21 Germany: #6 Ease of Doing Business Rank Country 1 Singapore 2 Hong Kong 3 New Zealand 4 United States 5 Denmark 6 Norway 7 United Kingdom 8 South Korea 9 Iceland 10 Ireland Source: World Bank, Ease of Doing Business Report 2012 2
The U.S. Business Climate Strategic Market & FTAs Population of U.S. and FTAs is 695 million; U.S. 42% of Global Consumer Goods Market 1 Center for Global Innovation and Entrepreneurship U.S. Responsible for 36% of Total World R&D Expenditures (EU-27 accounted for 24%); Average 558,000 new businesses created per month in 2009 2 Strong Intellectual Property Right Protections 50.1% of the Patents Granted in 2009 by the U.S. Patent Office Originated from a Foreign Country 3 A Leader in Higher Education 15 of the top 20 universities in the World (Europe has 4 of the top 20) 4 35% 30% 25% 20% 15% 10% 5% Distribution of Worldwide R&D Expenditures, 2010 Productive Workforce U.S. labor productivity grew 2.3% in 2009 (France: -1%, Germany: -2.3%, UK: -2.5%) 5 Open to People, Cultures, and Ideas U.S. has more Irish than Ireland, Filipinos than Manila, Chinese than Hangzhou* and Poles than Warsaw 6 0% US Asia Europe Other Source: National Science Foundation Science and Engineering Indicators 2010 1. Office of the U.S. Trade Representative; Central Intelligence Agency The World Factbook; and Credit Suisse survey; 2 National Science Foundation Science and Engineering Indicators 2010; Kauffman Index of Entrepreneurial Activity 1996-2009; 3. U.S. Patent and Trademark Office; 4. The Times Higher Education Report 2010-2011 (U.K.); 5. OECD Labor Productivity Statistics; 6. U.S. Census Bureau, *Hangzhou city proper 3
Entrepreneurship and Opportunities The U.S. ranks 5 th in entrepreneurship and opportunities. A strong entrepreneurial climate in which citizens can pursue new ideas and opportunities for improving their lives can lead to higher levels of income and well-being. Source: The 2011 Legatum Prosperity Index 4
U.S. FDI Trends Top 15 FDI Stock Positions, 2011 10% $244.6b 1% $29.1b 2% $38.6b 21% $527.8b 10% $265.4b 8% $201.9b 12% $293.8b Rank 2011 FDI Position in the United States Billion USD 1 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 11 Spain 48 12 Sweden 38.6 13 Italy 31.8 14 Norway 29.1 15 Mexico 27.9 1% $27.9b 5% $132.5b 4% $98.2b 2% $53.1 5% $126.1b 1% $31.8b 2% $48b 2% $58.6b Source: Department of Commerce, Bureau of Economic Analysis FDI by Ultimate Beneficiary Owner 5
U.S. FDI Trends Industry breakdown of total U.S. FDI stock ($2.5 trillion) Professional Scientific, and Technical Services 3.5% Real Estate 1.9% Other Industries 21% Finance & Insurance 14.8% Depository Institutions 6% Total Manufacturing 32.9% Retail Trade 2% Information 5.8% Transportation Equipment 11% Other Manufacturing 35% Electrical Equipment, Appliances, and Components, 0.9% Food 5.1% Chemicals 24.1% Machinery 8.9% Computers & Electronic Products, 7.8% Primary & Fabricated Metals, 5.3% Source: Department of Commerce, Bureau of Economic Analysis 6
FDI and the U.S. Economy Top 10 FDI Growth Sectors in the United States (Compound annual growth rate in FDI position between 2006 and 2011 on a historical cost basis) professional, scientific, and technical services machinery *other manufacturing retail trade other industries chemicals total manufacturing transportation equipment computers & electronic products finance & insurance 0% 2% 4% 6% 8% 10% 12% 14% * Other Manufacturing does not include food, chemicals, primary and fabricated metals, machinery, computers and electronic products, electrical equipment, appliances and components, and transportation equipment. Source: Department of Commerce, Bureau of Economic Analysis 7
Strategic Market & FTAs The United States has Implemented or Entered into Force 19 Free Trade Agreements With a Combined Population of Over 695 Million Consumers and a Combined GDP of $7 Trillion Dollars Source: USTR; CIA Factbook Free Trade Agreement Bilateral Investment Treaty Both 8
FDI from Italy to the U.S. 13 th $31.8 billion 82,300 $425 million $1 billion $3.3 billion $3.2 billion Italy is the thirteenth largest source of FDI in the U.S. The total stock of FDI from Italy to the U.S. in 2011 Employment by U.S. affiliates of Italian firms in 2010 R&D expenditures by U.S. affiliates of Italian firms in 2010 Reinvested Earnings by U.S. affiliates of Italian firms in 2011 Size of FDI Flows from Italy into the U.S. in 2011 Value of exports by U.S. subsidiaries of Italian firms in 2010 Rank 2011 FDI Position in the United States Billion USD 1 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 11 Spain 48 12 Sweden 38.6 13 Italy 31.8 14 Norway 29.1 Source: United States Department of Commerce, Bureau of Economic Analysis 15 Mexico 27.9 9
FDI from Italy to the U.S. Italian FDI into the United States (By Industry Source; In Millions of U.S. Dollars) $16,228 Total Manufacturing $3,458 Primary & Fabricated Metals $3,090 Machinery $4,523 Other Manufacturing $2,578 Wholesale Trade $1,430 Finance and Insurance $8,095 Other Distribution of Italian FDI into the U.S. Manufacturing Sector (2011) 37% 16% 2% 5% 19% 21% Food Chemicals Metals Machinery Wholesale Trade Other Withheld Depository Institutions Source: Bureau of Economic Analysis 10
FDI from Italy to the U.S. Recent Announcements: June 2012 Oli, a subsidiary of Wamgroup, has opened a new assembly operation at its facility in Duluth, Georgia. The $1.2 million investment is expected to create 15 new jobs by 2015, and allows the facility s focus to shift towards both assembly and distribution in the North American market. April 2012 Allevard Springs, an automotive components supplier and subsidiary of Compagnie Industriali Riunite, has announced plans to expand its manufacturing facility in Prichard, West Virginia. The $5.5 million investment is expected to create 45 jobs. January 2012 Genport, a developer of high-energy electric generators and batteries, has announced plans to establish its North American headquarters at the Purdue Research Park in West Lafayette, Indiana. The $2 million investment is expected to create up to 20 high wage jobs by 2015. Source: fdi Markets 11
About SelectUSA SelectUSA s mission is to facilitate business investment in the United States in order to support job creation, spur economic growth, and promote American competitiveness. 12
SelectUSA FY13 Focus Markets Nearly 90 percent of FDI in the United States (2011 FDI Stock) Australia $58.6 billion Germany * $265.4 billion Mexico* $27.9 billion Spain * $48.0 billion Belgium $53.1 billion India * $9.8 billion Netherlands $132.5 billion Sweden $38.6 billion Brazil* $14.7 billion Ireland $98.1 billion Russia * $7.8 billion Switzerland $126.1 billion Canada * $244.6 billion Israel $26.7 billion Saudi Arabia $11.6 billion Taiwan $7.8 billion China and Hong Kong* $9.5 billion $10.9 billion Italy $31.8 billion Singapore $22.4 billion UAE $17.4 billion Finland $9.6 billion Japan $293.8 billion South Korea * $18.3 billion UK $527.8 billion France* $202.0 billion (*) denotes FY12 pilot market Source: U.S. Bureau of Economic Analysis 13
SelectUSA Can Help Our mission is to encourage, facilitate, and accelerate business investment to create jobs, spur economic growth, and promote American competitiveness Geographically neutral in the United States Engage in international and domestic business investment What we do: 1. Facilitate Business Inquiries 2. Act as Ombudsman and Advocate 3. Connect Investors with State/Local EDOs and Provide Guidance to EDOs 4. Conduct Investor Outreach and Educate Investors 5. Lead and Coordinate an Interagency Working Group 14
SelectUSA Services: Information Services SelectUSA provides actionable information to international firms to help them Incorporate a business in the U.S. Understand basic U.S. tax and legal concepts Learn about incentives available to businesses in the U.S. Connect with U.S. state, city, or regional economic development offices to learn about investment opportunities Apply for a business-related visa International investors can communicate with SelectUSA by phone or email in Washington, DC, or meet with members of the U.S. Commercial Service at American Embassies and Consulates. 15
SelectUSA Services: Information Services Sample Resources for Federal Assistance: - SelectUSA Database of Federal Programs and Incentives for Business Grants.gov a Government-wide database of grant programs GSA.gov The U.S. General Services Administration (GSA) procures services on behalf of the U.S. Government 16
SelectUSA Services: Information Services Sample Resources for State and Local Assistance - - SelectUSA Interactive Map to Economic Development Organizations and Contacts for all U.S. States and Territories - Business.gov/States - Guide to starting and registering a business, public finance, and other information - State and Local Economic Development Organizations 17
SelectUSA Services: Information Services Sample Non-Government Resources for Information Free Publications KPMG Study: 2012 Competitive Alternatives (competitivealternatives.com) Location Directory on Business Facilities Magazine (businessfacilities.com) Site Selection Magazine 2010 Guide to State Incentives (siteselection.com) Area Development Magazine (areadevelopmentonline.com) Subscriptions Consulting Services Other Resources 18
SelectUSA Services: Ombudsman Assistance SelectUSA works across the federal government on a case-bycase basis to: Address international investor concerns and issues Connect with a federal agency/ office to seek insight into a specific case Offer direct communication between the relevant federal agency and the client Identify federal regulations or processes to U.S. policy makers, that may negatively impact the U.S. business climate Federal Agency Client The SelectUSA Ombudsman function is considered business sensitive and administered strictly by the SelectUSA HQ 19
SelectUSA Services: Ombudsman Assistance 20
The U.S. Commercial Service in Italy The U.S. Commercial Service (CS) is the trade promotion arm of the U.S. Department of Commerce s International Trade Administration. CS trade professionals both domestically and overseas help U.S. companies get started in exporting or increase sales to new global markets. Our Mission: To promote the export of goods & services from the United States, particularly by small and medium-sized businesses To represent U.S. business interests internationally To help U.S. businesses find qualified international partners To assist foreign direct investors via SelectUSA services. 21
Italian-language Content http://www.buyusa.gov/italy 22
Thank You Dott. Andrea Rosa andrea.rosa@trade.gov Tel. 02 6268 8523 U.S. Commercial Service Consolato Generale Americano Via Principe Amedeo, 2-20121 Milano office.milan@trade.gov www.buyusa.gov/italy/selectusa/