Wed Jul 3, 2019
Author: RV News
Spending by foreign direct investors to acquire, establish, or expand U.S. businesses totaled $296.4 billion in 2018, preliminary data released today by the Bureau of Economic Analysis shows.
Indiana Wheel Corporation, a startup manufacturing company that produces and distributes steel wheels, is bringing its manufacturing operations for the trailer and RV industries to north central Indiana.
The RV manufacturing industry benefited from those foreign investments. For instance, the startup Indiana Wheel Corporation recently announced the China-based Jingu Company Limited invest nearly $23 million to purchase, renovate and equip a 300,000-square-foot factory in Plymouth, Indiana.
The newly released federal data shows foreign expenditures were up 8.7 percent from $272.8 billion in 2017 but fell short of the annual average of $338.1 billion for 2014 to 2017. As in previous years, acquisitions of existing businesses accounted for a large majority of the total.
In 2018, expenditures for acquisitions totaled $287.3 billion. About $5.3 billion was spent to establish new U.S. businesses. Another $3.8 billion went into expanding established foreign-owned businesses.
Planned total expenditures, which include both first-year and expected future spending, was $318.1 billion.
Expenditures for new direct investment were mainly concentrated in manufacturing, which accounted for 67.4 percent of the $199.7 billion total. Within manufacturing, expenditures were the largest in chemical manufacturing at $142.3 billion. Spending in real estate, rental, and leasing totaled $22.1 billion. Investments in information were at $16.3 billion.
By U.S. state, Missouri received the largest investment, but its value is suppressed due to confidentiality requirements. New York ($63.0 billion), Texas ($31.1 billion), and California ($27.3 billion) also received significant investment.
In 2018, 430,600 employees worked at newly acquired, established, or expanded foreign-owned businesses in the U.S. Current employment of acquired enterprises was 426,400.
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