In Focus: FDI Will Signal Better Days
The value and impact of FDI will remain an important part of the economic recovery from the coronavirus pandemic.
Q2 2020
This is true in Ohio. Honda’s investment in the early 1980s changed the U.S. automotive industry and has become one of the most important economic drivers in the Columbus region four decades later. That investment — along with hundreds of others from around the world that have since joined Honda — has generated billions of dollars and stimulated thousands of jobs in Central Ohio and, in fact, throughout the country.
FDI as a Signal of Economic Health
While it is still too early to determine the full impact that COVID-19 will have on globalization, it will likely remain true that the value and impact of FDI will remain an important component of any recovery strategy. In fact, the return of foreign investments into the U.S. will signal that our economy is stable and growing. Investment into the United States is critical to create jobs and tax revenue locally, but it is also going to help ensure that our core supply chains are resilient and secure. Technology and know-how from around the world will help achieve this goal in the United States and in other markets around the world.
The U.S. will also benefit greatly from its own companies’ ability to create investment and jobs across the globe. Each time a company invests abroad, jobs are also created in their own country. Studies suggest that innovation is also enhanced through entering new markets.
Studies suggest that innovation is also enhanced through entering new markets. FDI as a Signal of Economic Competitiveness
For communities, there is a correlation between FDI in a region and overall competitiveness of the location. Foreign investments typically demand additional scrutiny by company management and by their boards because they are going into unknown territory. The ability of a location to secure such investments shows a location’s ability to control costs, reduce risk, and supply a talented, adaptable workforce. FDI also functions as a multiplier: if foreign investment is thriving in a location, other investments — both foreign and domestic — will soon follow to help support and enhance the foreign investment.
An initial investment like Honda’s also has the power to change perceptions of a location as an open and progressive place. From BrewDog beer to Magnanni shoes, many Columbus region residents not only make products made by foreign companies, but also consume and enjoy those products on a daily basis.
As we seek to recover and rebuild, foreign investment will be a highly sought-after prize — a sign that we’ve reached stable ground again and a necessary component for any regional economic strategy.
Project Announcements
Northern Ireland-Based Almac Group Expands Souderton, Pennsylvania, U.S. Headquarters
08/16/2022
Lineage Logistics Holdings Plans Grantsville, Utah, Facility
08/15/2022
STOBER Drives Expands Maysville, Kentucky, Manufacturing Complex
08/15/2022
Duluth Trading Company Plans Adairsville, Georgia, Distribution-Fulfillment Center
08/12/2022
Oldcastle APG Establishes Suffolk, Virginia, Manufacturing Complex
08/12/2022
Milwaukee Tool Opens West Bend, Wisconsin, Manufacturing Plant
08/12/2022
Most Read
-
In Focus: “Golden Age” of Spec Development
Q3 2022
-
Area Development’s 17th Annual Shovel Awards Recognize State and Local Economic Development Efforts — First Two Platinum Shovels Awarded
Q2 2022
-
The 2021 Top States for Doing Business Reflect Their Locational Advantages
Q3 2021
-
In Focus: Demand for Industrial Land Surges
Q2 2022
-
Explosive Growth of Life Sciences Sector Comes with Challenges
Q3 2022
-
36th Annual Corporate Survey: Executives Focus on Labor, Energy, Shipping Costs
Q1 2022
-
Using Robust Project Controls to Enhance Project Management
Q3 2022