September 8, 2011

U.S. Operations of Global Companies Already At Work Creating Jobs for Americans

 Washington, DC-The following statements can be attributed to Nancy McLernon, President and CEO of the Organization for International Investment:

 “With jobs at the forefront of tonight’s Presidential speech, it’s worth noting the vital role foreign direct investment plays in the U.S. economy and its potential to further provide an engine for job creation during these difficult times.”

 “The U.S. subsidiaries of foreign companies employ more than five million Americans.  We can insource even more good-paying jobs by actively working to attract greater cross border investment - something the President acknowledged in June when he issued an open investment policy statement.  This move was a good start, but a focused initiative to incentivize more globally headquartered companies to choose the U.S. as a place to grow their world-wide business is needed to compete with other countries trying to do the same thing.” 

 Facts about U.S. subsidiaries of global companies:

Jobs: U.S. subsidiaries of global companies employ 5.6 million Americans;
Payroll: U.S. subsidiaries support an annual payroll of $408.5 billion;
Manufacturing: U.S. subsidiaries heavily invest in the American manufacturing sector; nearly 38 percent of American jobs at U.S. subsidiaries are in manufacturing;
Exports: U.S. subsidiaries manufacture in America to export goods around the world — accounting for more than 18 percent of all U.S. exports, or $232.4 billion;
Reinvestment:  U.S. subsidiaries reinvest an annual $93.1 billion in their U.S. operations.
Taxes:  U.S. subsidiaries pay $38 billion in annual U.S. corporate taxes, nearly 17 percent of total U.S. corporate tax payments.

 Local stories of U.S. subsidiaries creating jobs for Americans:

“Pa., W.Va., Ohio Vie For Huge New Shell Gas Plant,” Associated Press
“Tata Steel an example of job creation in USA through FDI,” CNBC Money
“Electrolux to Expand," The Tennessean
“Indian outsourcers now 'insourcing' jobs to Silicon Valley,” San Jose Mercury News
“Crain's list of Largest Foreign-Owned Companies,” Crain’s Ohio

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The Organization for International Investment is a Washington-based business association representing U.S. subsidiaries of global companies. For additional information, see OFII’s web site at www.ofii.org.