Statistics detailing the amount and type of new investment made in the United States by foreign direct investors to acquire, establish, or expand U.S. businesses are now available from the Bureau of Economic Analysis. The statistics cover new investments initiated in 2014 and offer details on these investments, including the countries from which the new investment originates, the U.S. industries that are drawing new investments, and U.S. states where new investments are located.
BEA previously collected and published similar information on acquisitions and establishments but discontinued the series with survey year 2008 because of budget constraints. The reinstated statistics now include expansions of existing U.S. businesses in an effort to more fully capture “greenfield” investments. Greenfield investment includes establishments of new companies by foreign investors and expansions of existing companies.
Here are some highlights from the statistics:
- Expenditures by foreign direct investors for new investment totaled $241.3 billion in 2014.
- Expenditures for acquisitions were $224.7 billion—93% of the total expenditures for new investment. Expenditures to establish new U.S. businesses totaled $13.8 billion, and expenditures to expand existing foreign-owned U.S. businesses totaled $2.8 billion.
- Greenfield investments by foreign direct investors totaled $16.6 billion in 2014.
- Total expenditures in manufacturing were $139.1 billion in 2014, the largest among major industries. Within the manufacturing sector, pharmaceuticals and medicines accounted for the largest share of expenditures with $75.9 billion.
- By country of ultimate beneficial owner (UBO), the largest source country was Ireland, with first-year expenditures of $42.5 billion.
- By U.S. state, the largest expenditures, $48.9 billion, were for U.S. businesses in California. The four U.S. states with the largest expenditures by foreign direct investors—California, New Jersey, New York, and Texas—together received over half of all new investment.
For more information, see the November 30th press release and data tables. Statistics for 2015 and revised statistics for 2014 will be released in the summer of 2016.