U.S. Manufacturing Offers Foreign Direct Investment Opportunity, Statistics Show
The Bureau of Economic Analysis has released statistics on two key foreign direct investment methods that suggest the U.S. is a primary choice for FDI opportunities.
Acquisitions accounted for the majority of new FDI expenditures in 2014, totaling $224.7 billion, followed by $13.8 billion to establish new U.S. businesses and $2.8 billion to expand existing foreign-owned U.S. businesses. Investment in the U.S. manufacturing sector was particularly high, totaling $139.1 billion, including $75.9 in pharmaceuticals and medicines.
The data reported by BEA also includes for the first time statistics on greenfield investments, which are those to expand either a new U.S. business or an existing foreign-owned U.S. business. Greenfield investment expenditures exceeded $16.5 billion in 2014, led by real estate at $4.7 billion and manufacturing (particularly primary and fabricated metals and chemicals) at $2.8 billion.