October News Update
I wanted to share with you some insourcing news from OFII, its members and others who are interested in growing foreign direct investment in the United States. If you have a good news story for us to share, please send it our way!
- Nancy McLernon
President & CEO, OFII
Kentucky produces another thoroughbred
For the past two and a half years, Toyota's Kentucky plant has been gearing up to make the ES 350, Lexus’ best-selling sedan in the United States. Earlier this week, the first ES 350 rolled off the line.
In all, $360 million was invested toward a new dedicated assembly line, adding 750 new jobs. Total capacity for the new line will be 50,000 vehicles, making the Kentucky facility Toyota's largest in the world.
TPP could create 233,000 FDI-related US jobs
Earlier this month, the Administration announced the conclusion of negotiations for the Trans-Pacific Partnership (TPP). Given that nearly 20 percent of America’s foreign direct investment (FDI) flows from TPP countries, there is no doubt that this news was an important economic milestone. Our analysis shows that TPP has the potential to unleash $20 billion in new global investment and create 233,000 FDI-related U.S. jobs. As we review the details of the negotiated agreement, OFII is hopeful that TPP will help America regain its global competitiveness.
OFII presents at CATO TTIP conference
Last week, Nancy McLernon, joined Susan Danger of the American Chamber of Commerce to the European Union (AmCham EU) and Dan Ikenson of the Cato Institute for a discussion on what the Transatlantic Trade and Investment Partnership will mean for FDI flows.
BEPS, CONGRESS & TAX REFORM
BEPS Action Plan is not a substitute for good tax policy
Recently, the Organization for Economic Cooperation and Development (OECD) released its Base Erosion and Profit Shifting (BEPS) action plan proposals. As a senior U.S. official involved in the BEPS negotiations highlighted: ignoring the link between good tax policy and the importance for economic growth and global investment is dangerous. For more than a decade, other countries have modernized their tax system, and as a result, become more competitive in attracting global investment and the high-quality jobs it supports.
As policymakers examine ways to modernize the international tax system, OFII commissioned the economics group within Ernst & Young (EY) to examine the effects that further limitations on interest expense would have on the U.S. economy. The results: Even with a rate reduction, additional limits to interest expense will lead to lost economic output and fewer U.S. jobs.
FDI Frontlines Coalition releases new resource for economic developers
As you may know, OFII launched the FDI Frontlines Coalition in March. It provides state, regional, and local economic development organizations (EDOs) with the opportunity to enhance their global investment IQ by providing research and business insight on ways America can attract more foreign direct investment.
Last week, we released a new resource for EDOs to help them grow FDI in their regions. Understanding Aftercare provides a wealth of information on how economic developers can work with existing insourcing companies to help them succeed and expand.
Yesterday, Frank Ervin of Magna International, Jim Fraser of Thales USA and John Steele of Tyco led a webinar on what quality aftercare means for insourcing companies.
Magna adding 153 jobs in SC expansion
Canada-based Magna International plans to move into a new 165,000 sqf facility in June of next year.
Alcon to add 300 jobs in $250 Million Atlanta expansion
Alcon, a division of Switzerland-based Novartis, is investing $250 million into an expansion of its Atlanta-area facility that will add more than 300 jobs.