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United States Inward Investing Guide

Location USA is a guide for international companies looking to invest or establish operations within the United States. Location USA provides practical advice and guidance about facilities deployment, labor force skills, taxes and incentives, and more. For specific information on all 50 states, utilize the State Resources links.

Why "Made in America" Makes Good Business Sense

Other countries can offer lower labor costs and less regulation, but the U.S. is still the number one place to make sophisticated, high-cost goods.

Richard H. Thompson, Managing Director and Americas Leader, Supply Chain & Logistics Solutions, Jones Lang Lasalle (Location USA 2012)

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Editors Picks

Other Concerns
Executives also raised concerns over other issues like inconsistent application of intellectual property laws, human rights issues, product quality-control deficiencies, and the lack of environmental regulation in developing countries, particularly China. "Now that oil and transportation prices have gone up, productivity gains are not as big as they were, and there are issues around risk in supply chains; companies are starting to go where the customers are," Accenture Managing Director Matt Riley says. Illinois has benefited from this trend. The state added more than 20,000 manufacturing jobs since January 2010, according to the U.S. Bureau of Labor Statistics .

Of course, major challenges still lie ahead. The World Bank says the U.S. has one of the top 10 infrastructures in the world - economic rivals like China, India, and Brazil didn't crack the top 25. Bolstering America's case is ocean accessibility on three sides, many large and expanding seaports, interior lakes, navigable rivers, and an extensive rail and highway network.

It's true that the country's supply chain infrastructure needs updating, if the United States is to retain its competitive advantage. With that in mind, President Obama has proposed creating an infrastructure bank in his 2012 budget as a centerpiece of a 10-year, $640 billion plan for upgrading and rebuilding 150,000 miles of roads, bridges, transit systems; reconstructing 150 miles of runways; and constructing and maintaining 4,000 miles of rail lines.

There is talk of private investment, too. The BNSF, one of the largest U.S. railroads, plans to invest $3.5 billion this year in infrastructure improvements including network upgrades and locomotives. U.S. ports are also contemplating improvements in anticipation of the Panama Canal expansion, which is expected to be completed in 2014.

The expanded canal will accommodate mega-container ships capable of carrying up to 12,600 twenty-foot equivalent unit (TEU) containers - approximately 50 percent more capacity than the typical container ship of today. This will increase economies of scale in reaching the East Coast of the United States - where two-thirds of the population lives.

The proposed investment shows the federal government and private industry understand how important manufacturing will be to the U.S. economy in the 21st century.

The Number-One Place To Be
Other countries can offer lower labor costs and less regulation, but the United States is still the number one place to make sophisticated, high-cost goods.

Though the U.S. dollar is relatively weak, American currency has a long, stable track record, and - if anything - the dollar's present off-peak status creates more incentive for foreign investment dollars. What's more, investing in the United States is a safer alternative to investing in developing countries, with their potential political and human rights problems and challenges to protecting products and information due to lack of regulation and inconsistent application of intellectual property laws.

China, for example, has been the origin for as much as 80 percent of counterfeit and pirated products seized by U.S. Customs, with confiscated goods valued at $158 billion. Given the significant investments that companies make in research and development and manufacturing techniques to gain competitive advantage, nobody wants to lose their "secret sauce" to theft or reverse engineering.

And while its stringent environmental and safety regulations may occasionally irk manufacturers, these help prevent the serious brand damage and potential liability generated by hazardous products from countries with less stringent laws.

As with any thoughtful business decision, there are many factors to weigh and trade-offs to consider. When evaluating manufacturing/sourcing site selection decisions, supply chain/operations executives must rely on an objective, fact-based approach to ensure they arrive at the most optimal and profitable, long-term solution. Taking all factors into consideration, it is clear that the United States stacks up well from a manufacturing standpoint. With its skilled labor pool, stable political environment, supply chain infrastructure, business incentives, real estate values, and large consumer base, the United States will continue to look more attractive for foreign companies looking to make their products on U.S. soil. "Made in America" simply makes good business sense.

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About the Author

Richard H. Thompson, Managing Director and Americas Leader, Supply Chain & Logistics Solutions, Jones Lang Lasalle
Rich Thompson is a Managing Director and is the Americas Leader for the Supply Chain & Logistics Solutions consulting team for Jones Lang LaSalle. Rich is a recognized supply chain veteran with over 20 years of combined consulting and industry experience. Prior to joining Jones Lang LaSalle, Rich was a Senior Vice President and Corporate Officer with Schreiber Foods, a $4 billion global food company, and a Partner in the global supply chain consulting practice at Ernst & Young. Rich has been an active member of the Council of Supply Chain Management Professionals (CSCMP) since 1989, the Warehouse Education Research Council (WERC), and serves on the Editorial Advisory Board for DC Velocity magazine. Rich was selected as one of DC Velocity's annual “Rainmakers” in 2010, recognizing his “lasting contributions to the supply chain management profession”. He has served as a consultant for over 100 corporations across the world. Rich holds a Bachelor’s degree in Marketing from Miami University (Ohio) and an M.B.A. degree in Finance and Marketing from The University of Chicago Graduate School of Business.

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United States Inward Investment Location Profiles

ARIZONA

Arizona - A Great Place For Business

Arizona is one of the fastest-growing, most dynamic economies in the United States. Both Fortune 500 and start-up technology companies call Arizona home, reaping the advantages of a competitive business climate and tax structure; a skilled, knowledge based work force; and world-class innovation, cultural, and scenic resources.

ARKANSAS

Your Success Story Starts In Arkansas

Arkansas's transportation network and central U.S. location define the state as a strategic distribution center. Midway between Mexico City and Montreal, Arkansas offers a valuable distribution advantage.

Little Rock, Arkansas: A Globally Recognized Brand

For two years in a row, the Little Rock region has been named "America's Fourth Strongest Economy" by the Brookings Institution's MetroMonitor. The Wall Street Journal calls it the nation's "Sixth Best Real Estate Market," while Forbes says it is America's "Seventh Best Place for Jobs."

KANSAS

Wichita, Kansas USA - Site of Choice for Advanced Manufacturing Enterprises

Wichita, better known as the Air Capital of the World, has also been ranked #1 U.S. metro for aviation manufacturing. Wichita has the highest concentration of aircraft and aircraft parts manufacturing employment (skills) in the United States.

KENTUCKY

Kentucky Is a Global Business Center

Kentucky remains a leader in attracting foreign direct investment, with nearly 35 percent of announced new investment in 2012 due to FDI activity. Today, about 420 foreign-owned firms from 30 nations employ nearly 80,000 people in the state.

NEW YORK

Think New York for Business Opportunity

When you hear "New York" you probably think of tall buildings and Wall Street — not cows, pastures, and a state whose leading industry is agriculture. In fact, we have both, and the world is taking notice of the abundant milk supply, sophisticated transportation system, and oneday access to almost 100,000,000 consumers.

OHIO

The Columbus Region Grows Increasingly Global Each Year

The Columbus Region is a thriving 11-county area located in Central Ohio. Home to 15 Fortune 1000 headquarters, with two million people and a population growth rate of 1.3 percent annually, the Columbus Region is one of the fastestgrowing major metropolitan areas in the Midwest, and is growing more and more global each year.

The New Ohio — A Leader in New Job Creation

Profitable. Diverse. Motivated. Strategic. Global. These are the words that describe the new Ohio and make us a leader in new job creation in the U.S.

OKLAHOMA

Tulsa - Where Business Grows

Home to more than 950,000, Tulsa, Oklahoma, perfectly balances convenience and affordability with the advantages of a highly skilled work force, a central location, a pro-business atmosphere, and an excellent quality of life. It is a dynamic, growing region that offers the fifth-lowest cost for doing business in the nation and is home to some of the nation's largest companies. These assets combine to make an ideal home for progressive companies competing in a global economy.

TENNESSEE

Select Tennessee for Your Next Investment

Tennessee's ideal location, strong transportation infrastructure, low costs of doing business, and high quality work force provide an attractive setting for investments from around the globe. With most major U.S. markets within a day's drive, Tennessee provides immediate access to eight interstate highways, an extensive network of railways and waterways, and the world's second-busiest freight airport in Memphis.

WEST VIRGINIA

Plastics - West Virginia's Multi-Billion Dollar Industry

Offering one of the highest concentrations of hightech, specialty, and engineering polymer production in the world; an abundance of necessary raw materials; a knowledgeable, highly trained and productive work force; and established transportation systems; it is no wonder West Virginia is home to a vibrant and growing plastics industry.

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