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Business Investment in the United States

© International Trade Administration 2012

Presenter’s Name Andrea Rosa

Presenter’s Title Commercial Specialist Referente per SelectUSA in Italia

Event Name Roadshow/Italy

Date October 22-26, 2012

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The U.S. Business Climate

World Economic Forum’s 2012-2013 Global Competitiveness rankings UK: #8 France: #21 Germany: #6

AT Kearney’s 2012 FDI Confidence Index UK: #8 France: # 17 Germany: #5

#4

#7

#4

IESE Business School’s 2012 Venture Capital and Private Equity Index UK: #3 France: #15 Germany: #9

World Bank’s Ease of Doing Business 2012 ranking UK: #7 France: #29 Germany: #19

#1

© International Trade Administration 2012

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

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The U.S. Business Climate

© International Trade Administration 2012

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

Source: National Science Foundation Science and Engineering Indicators 2010

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

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%

5%

10%

15%

20%

25%

30%

35%

US Asia Europe Other

Distribution of Worldwide R&D Expenditures, 2010

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Entrepreneurship and Opportunities

The U.S. ranks 5th 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

© International Trade Administration 2012 4

SelectUSA.gov

10% | $244.6b

2%| $58.6b

1% | $29.1b

2% | $38.6b

21% | $527.8b

10% | $265.4b

8% | $201.9b

12% | $293.8b

U.S. FDI Trends Top 15 FDI Stock Positions, 2011

Source: Department of Commerce, Bureau of Economic Analysis – FDI by Ultimate Beneficiary Owner

© International Trade Administration 2012

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

5% | $132.5b

4% | $98.2b

2% | $53.1

5% | $126.1b

1% | $31.8b

2% | $48b

1% | $27.9b

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Industry breakdown of total U.S. FDI stock ($2.5 trillion)

Source: Department of Commerce, Bureau of Economic Analysis

U.S. FDI Trends

© International Trade Administration 2012

Total Manu-facturing

32.9%

Retail Trade 2%

Information 5.8%

Depository Institutions

6%

Finance & Insurance

14.8% Real Estate

1.9%

Professional Scientific,

and Technical Services

3.5%

Other Industries

21%

Food 5.1%

Chemicals 24.1%

Primary & Fabricated

Metals, 5.3% Machinery

8.9%

Computers & Electronic

Products, 7.8%

Electrical Equipment, Appliances,

and Components,

0.9%

Transportation Equipment

11%

Other Manufacturing

35%

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Source: Department of Commerce, Bureau of Economic Analysis © International Trade Administration 2012

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)

* “Other Manufacturing” does not include food, chemicals, primary and fabricated metals, machinery, computers and

electronic products, electrical equipment, appliances and components, and transportation equipment.

0% 2% 4% 6% 8% 10% 12% 14%

finance & insurance

computers & electronic products

transportation equipment

total manufacturing

chemicals

other industries

retail trade

*other manufacturing

machinery

professional, scientific, and technical services

7 SelectUSA.gov

Strategic Market & FTAs

Free Trade Agreement

Bilateral Investment Treaty

Both

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

© International Trade Administration 2012 8

SelectUSA.gov

FDI from Italy to the U.S.

13th

$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

Source: United States Department of Commerce, Bureau of Economic Analysis

© International Trade Administration 2012

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

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Source: Bureau of Economic Analysis

© International Trade Administration 2012

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

Withheld Depository Institutions

2%

5%

21%

19%

16%

37%

Distribution of Italian FDI into the U.S. – Manufacturing Sector (2011)

Food

Chemicals

Metals

Machinery

Wholesale Trade

Other

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11

Recent Announcements:

Source: fDi Markets

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.

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.

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.

FDI from Italy to the U.S.

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About SelectUSA

SelectUSA.gov 12

© International Trade Administration 2012

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.

SelectUSA FY13 Focus Markets

© International Trade Administration 2012

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 $9.5 billion Hong Kong* $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.gov

SelectUSA Can Help

SelectUSA.gov

• 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 © International Trade Administration 2012

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.

© International Trade Administration 2012 15

SelectUSA.gov

SelectUSA.gov 16

Sample Resources for Federal Assistance: SelectUSA.gov - SelectUSA Database of Federal Programs and Incentives for Business

GSA.gov – The U.S. General Services Administration (GSA) procures services on behalf of the U.S. Government

Grants.gov – a Government-wide database of grant programs

© International Trade Administration 2012

SelectUSA Services:

Information Services

SelectUSA.gov 17

Sample Resources for State and Local Assistance - SelectUSA.gov - 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

© International Trade Administration 2012

SelectUSA Services:

Information Services

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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

© International Trade Administration 2012

SelectUSA Services:

Information Services

Client

Federal

Agency

SelectUSA Services:

Ombudsman Assistance

SelectUSA works across the federal government on a case-by-case 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 The SelectUSA Ombudsman function is considered business sensitive and administered strictly by the SelectUSA HQ

© International Trade Administration 2012 19

SelectUSA.gov

© International Trade Administration 2012 20

SelectUSA Services:

Ombudsman Assistance

SelectUSA.gov

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.

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.

The U.S. Commercial Service in Italy

21 © International Trade Administration 2012

Italian-language Content

http://www.buyusa.gov/italy

22 © International Trade Administration 2012

Thank You

© International Trade Administration 2012

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/

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