NEW YORK, Oct. 17, 2011 /PRNewswire/ -- Responding to a recommendation by The Council on Jobs and Competitiveness for the launch of a National Investment Initiative, Robert Kimmitt, Independent Chairman of the Deloitte Center for Cross-Border Investment (DCCBI), welcomed the proposed initiative as further evidence of the nation's commitment to developing robust policies around investment.
"This initiative builds on the commendable efforts of Secretary Clinton to support open investment, as well as the forthright open investment policy statement President Obama issued in June," said Kimmitt. "These efforts send a clear signal that the United States welcomes the investment flows that can help spark exports, unleash job creation, and stimulate higher levels of economic growth. Job creation through investment has been supported by leaders from across the political spectrum, and the Obama Administration is continuing an important bipartisan tradition of support for open investment."
Cross-border investment influences growth by raising productivity and guaranteeing the more efficient use of resources. While this is true for all countries, the U.S. workforce has greatly benefited from investment in the United States. According to the most recent figures available from the U.S. Bureau of Economic Analysis (BEA), U.S. subsidiaries of global companies employed 5.3 million Americans in 2009 and the average annual compensation at these jobs was $77,597 - about one-third more than the economy-wide average. And more than 37 percent of these jobs were in manufacturing, a percentage far higher than manufacturing's 10.7 percent share of all jobs in the overall U.S. private sector today.
U.S. subsidiaries of global companies also contribute to the dynamic foundation of the U.S. economy. While they account for far less than 1 percent of all U.S. businesses, in 2009 these firms accounted for 4.7 percent of all U.S. private-sector jobs while undertaking 11.4 percent of all U.S. capital investment, conducting 14.3 percent of all U.S. private-sector research and development, and shipping 20.8 percent of all U.S. goods exports, according to the BEA. And U.S. subsidiaries of global companies have long had relatively high unionization rates. In 2007, 12.4 percent of these firms' U.S. employees were covered by collective bargaining - versus just 8.2 percent of all private-sector workers.
"The National Investment Initiative, coupled with other ongoing efforts, positions the United States to attract a growing share of investment from around the world," added Kimmitt. "This is critically important, given the challenging U.S. economic environment."
Commenting on the Initiative, Matthew J. Slaughter, Senior Adviser to the DCCBI, and Associate Dean for the MBA Program and the Signal Companies' Professor of Management at the Tuck School of Business at Dartmouth, said, "The call for a National Investment Initiative is important because there's more global competition to attract investment. Indeed, in first six months of 2011, new foreign direct investment inflows into the U.S. fell 11.7 percent, compared to the first six months of 2010."
About the Deloitte Center for Cross-Border Investment
The DCCBI was established in 2009 and is focused on promoting the benefits of the free flow of capital across borders. It serves as a connect point for organizations needing assistance related to significant commercial cross-border investment activities, such as mergers, acquisitions, divestitures, joint ventures, and Greenfield investments. For more information on the DCCBI, please contact Mark Garay, Executive Director.
About Deloitte
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Deloitte provides audit, tax, consulting, and financial advisory services to public and private clients spanning multiple industries. With a globally connected network of member firms in more than 150 countries, Deloitte brings world-class capabilities and high-quality service to clients, delivering the insights they need to address their most complex business challenges. Deloitte's approximately 182,000 professionals are committed to becoming the standard of excellence.
SOURCE Deloitte Touche Tohmatsu Limited
