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Foreign Direct Investment in the U.S. Rises

Expenditures by foreign direct investors to acquire, establish, or expand U.S. businesses totaled $296.4 billion…

  • July 16, 2019

Expenditures by foreign direct investors to acquire, establish, or expand U.S. businesses totaled $296.4 billion (preliminary) in 2018.

This was up 8.7 percent from $272.8 billion (revised) in 2017 but were below the annual average of $338.1 billion for 2014–2017.

As in previous years, acquisitions of existing businesses accounted for a large majority of total expenditures.

In 2018, expenditures for acquisitions were $287.3 billion, expenditures to establish new U.S. businesses were $5.3 billion, and expenditures to expand existing foreign-owned businesses were $3.8 billion.

Planned total expenditures, which include both first-year and planned future expenditures, were $318.1 billion.

In 2018, employment at newly acquired, established, or expanded foreign-owned businesses in the United States was 430,600 employees. Current employment of acquired enterprises was 426,400.

And Here’s Why It Matters:

Total planned employment, which includes the current employment of acquired enterprises, the planned employment of newly established business enterprises when fully operational, and the planned employment associated with expansions, was 469,800.

By industry, manufacturing accounted for the largest number of employees (209,000), followed by retail trade (62,500). By country of UBO, Canada accounted for the largest number of employees (84,300), followed by the United Kingdom (68,900), and Ireland (68,300).

By U.S. state, California had the largest employment (102,000), followed by New York (55,300) and Texas (45,500). Employment for an acquired entity that operated in multiple states is attributed to the state in which it had the greatest number of employees.