Successful Foreign Direct Investments in the US Greenfield Manufacturing Projects

Investment continues to grow in the United States. The foreign investors spent 5.3 billion dollars on the US greenfield manufacturing projects. The manufacturing industry is the largest beneficiary of foreign direct investment (FDI) in the United States.

US greenfield manufacturing projects attract foreign investment [Photo: NIST]

The Impact of FDI on Manufacturing in the US

The United States is an attractive destination for foreign investment because it always provided foreign investors with a stable and welcoming market. Foreign investors are willing to spend billions of dollars because of the large economy with diverse consumer markets, a skilled labor force, and offers a predictable and stable legal system in the United States. These are the reasons why the United States has been the world’s largest recipient of foreign direct investment for how many years.

The Bureau of Economic Analysis (BEA) showed that foreign direct investments in the US greenfield manufacturing projects which include both the establishment and expansion of US businesses hit 5.3 billion dollars in the American manufacturing sector. According to Mark Schmit, investments in manufacturing have powerful multiplier effects on the United States economy.

Every 1 dollar spent in manufacturing generates 1.35 dollars in additional economic activity. It strengthened both US manufacturing and individual manufacturers that can contribute to the growth of well-paying jobs, development of manufacturing communities, enhancement of American innovation, and global competitiveness.