Alabama team showcases state for foreign investment at SelectUSA
Alabama’s business recruiters were in the nation’s capital last week, selling the state’s diverse and growing business scene to potential investors from around the world. The 2018 SelectUSA Investment Summit in Washington, D.C., is the premier foreign direct investment (FDI) event in the U.S. Alabama already attracts significant numbers of jobs and amounts of investments from international companies in a broad range of industries, including automotive, aerospace, biotech and beyond. Last year alone, the state’s FDI came from 16 different countries, totaling more than $1.2 billion in investment and 3,391 new and future jobs. Since 2013, Alabama has attracted more than $8 billion in FDI, according to data from the Alabama Department of Commerce. Last week, recruiters were looking to build on those past successes, said Vincent Perez, a project manager for the Alabama Department of Commerce. “This summit is always a great opportunity for us to show off the advantages of doing business in Alabama,” he said. “A lot of the companies that will be at SelectUSA are those that don’t have a presence in the U.S. and also those that haven’t done business in the U.S. through trade.” The 2017 Select USA Investment Summit saw a record 2,800 participants from 60 international markets. (SelectUSA) Seeking opportunities A new feature from the Alabama team this year was a booth operated by the Port of Mobile. Alabama’s export business is strong, with shipments that reached a record $21.7 billion last year. Port officials were able to address trade questions from summit attendees who see that as a first step toward doing business in the U.S., Perez said. “They may not be ready for an investment in a new facility in the U.S., but they may be ready to sell products here,” he said. Meanwhile, the Commerce Department shared a booth with the Economic Development Partnership of Alabama, North Alabama Industrial Development Association, PowerSouth and Alabama Power. In addition to capitalizing on Alabama’s booming export activity, recruiters also aimed to build on strong ties to Japan. Honda and Toyota, along with their extensive supplier networks, have a long history of successful operation in the state. “And with the announcement of the new Toyota-Mazda plant in Huntsville this year, that’s another place where we can reach out and keep that momentum going,” Perez said. State commerce officials meet with international business representatives at the Alabama booth at last year’s SelectUSA Investment Summit. (SelectUSA) ‘Open for business’ Likewise, there was a focus on continued investment in the automotive sector, particularly in advanced technology research and manufacturing. Last year, Mercedes-Benz U.S. International announced plans to launch electric vehicle production in Alabama as part of a $1 billion project. “We’re focused on job creation and getting new investment into the state,” Perez said. “We have positioned ourselves well, through Governor Kay Ivey’s leadership, to be one of the best places in the country for FDI, and we want to make sure everybody knows Alabama is open for business.” The U.S. is home to more FDI than any other country in the world, with an estimated $3.7 trillion at the end of 2016, according to the latest SelectUSA data. FDI also supports nearly 13 million direct and indirect U.S. jobs. Last year, the summit set attendance records with more than 3,000 participants, including 1,200 business representatives and economic development organizations from 52 U.S. states and territories. The theme for the 2018 event was “Invest Here. Grow Here. Succeed Here.” Speakers included key government and industry leaders from across the country who discussed opportunities in areas including infrastructure, energy and advanced manufacturing. This story originally appeared on the Alabama Department of Commerce’s Made in Alabama website. Republished with permission from the Alabama NewsCenter.
Alabama foreign investment tops $1.5 billion in 2016, creating 3,250 jobs
Businesses based in countries around the globe continue to find a welcoming home in Alabama, as the state’s foreign direct investment (FDI) reached $1.57 billion last year, driving job growth in several industries. Expansions accounted for the vast majority of the 79 FDI projects announced by companies in 17 different countries. But there were notable new projects, too. A total of 3,254 new jobs were tied to the overall investment, according to the 2016 New and Expanding Industry Report, which was released last month by Gov. Kay Ivey and the Alabama Department of Commerce. Overall, the state landed nearly $4.2 billion in capital investment and more than 14,700 new jobs. “The success of the companies operating in Alabama is a story that’s being told around the world,” said Greg Canfield, secretary of the Alabama Department of Commerce. “Here at home, that’s meant significant new investments and lucrative jobs for communities across the state.” FDI has represented a powerful growth engine for Alabama, with foreign companies announcing $7 billion in new capital investment in the state since the beginning of 2013, according to Commerce data. Top FDI sources Austria led the way in FDI during 2016, with a total investment of $666.1 million. That was due mostly to two major expansions of existing companies in the state. Kronospan, a leading manufacturer of wood-based panel products, announced plans to invest $362 million in its Calhoun County operations and add 160 jobs. Another Austrian firm, Lenzing AG, said it would spend $293 million to expand production of an eco-friendly, botanic fiber at its Mobile County plant. The project is also creating 163 jobs. A third Austrian firm, auto supplier voestalpine, announced plans for an $11 million manufacturing facility in Jefferson County with 42 jobs. Other countries that were in the top five for FDI were: Germany — $213.5 million South Korea — $155 million Canada — $145 million Spain — $131.7 million In terms of new jobs, German companies announced the largest overall total for Alabama last year, with 1,187. Those projects included a new plant in Bibb County for automotive supplier MollerTech USA LLC, which plans a $46.3 million investment and 222 jobs. There was also an expansion in St. Clair County for Eissmann Automotive North America Inc., an automotive supplier that is adding $14.5 million and 200 jobs. Other top countries for total jobs were: Canada — 527 jobs Austria — 365 jobs South Korea — 347 jobs France — 333 jobs FDI and jobs also came from companies in other countries, including Australia, Belgium, Finland, Israel, Italy, Japan, Mexico, Switzerland, Taiwan, Thailand and the United Kingdom. Canfield recently led a trade mission to Canada, the state’s top international trade partner. Auto driver Auto industry projects dominated the entire list of FDI activity. Another major expansion in this sector was in Jefferson County, where Spain’s Gestamp announced plans to invest $131 million in its metal stamping operations. Alabama Commerce Secretary Greg Canfield, left, presents MollerTech leaders with an Alabama seal at a groundbreaking ceremony. (Made in Alabama) In addition, other suppliers for automakers Mercedes-Benz, Honda, Hyundai and Toyota –- and in some cases, the manufacturers themselves –- took steps to expand their Alabama facilities. Foreign direct investment plays a key role in the U.S. economy, according to SelectUSA, which works to facilitate job-creating business investment in the United States. About 6.4 million U.S. workers were employed by U.S. affiliates of majority foreign-owned firms in 2014, the latest data available. In addition, these companies account for $57 billion in research-and-development spending, and their total contribution to U.S. exports is estimated at $425 billion. In Alabama alone, 92,700 jobs are directly supported by majority foreign-owned affiliates, SelectUSA figures show. From July 2007 to June 2016, a total of 221 greenfield, or new, FDI projects were announced in the state. Nearly a quarter of them were by companies based in Germany, which is no surprise, since that’s the corporate home of Mercedes. Japan, home to Honda and Toyota, and South Korea, home to Hyundai, trailed close behind at 18 percent and 17 percent, respectively. Republished with permission of Alabama NewsCenter.
