“CFOs are uniquely positioned within companies to offer insights regarding future investment and expansion decisions,” said Nancy McLernon, president and CEO of OFII. “The findings in this year’s Insourcing Survey indicate that the U.S. business climate for foreign investment has improved drastically. Policymakers at the state and federal level can unleash even more job-creating investment by modernizing tax policies and supporting public-private educational partnerships to ensure students are prepared for future workforce needs.”
This marks the third time PwC – the assurance, tax and advisory services firm that is a member of the PwC network of firms in 157 countries with more than 184,000 people – has partnered with OFII on the Insourcing Survey.
“The survey gauges how the United States is perceived as a location for foreign investment as compared to other nations,” said Joel Walters, U.S. Inbound Tax Services leader at PwC. “In just about every industry sector, insourcing CFOs are growing more confident in the U.S. economy – up 20 percent from 2011. More than 70 percent of insourcing manufacturers expect to increase output over the next five years, and 60 percent of exporters plan to increase exports over that period.”
This year, the Insourcing Survey results are being released at events in Seattle, WA and Detroit, MI to draw attention to the critical role foreign direct investment plays in states across the country and to highlight the work of Governors Inslee and Snyder in attracting more global investment to their states, notes McLernon.
In Washington, at least one in three jobs is related to international trade, and earlier this year, the Evergreen State set a new record for exports – producing $81.9 billion in products and services for international customers. Nearly one third of the 96,000 insourcing jobs in Washington is in the manufacturing sector.
Foreign companies employ 177,500 Michigan workers, accounting for more than five percent of the Great Lakes State’s private sector workforce. More than 60 percent of these jobs are in manufacturing. In fact, Michigan added twice as many insourcing jobs in 2011 compared to any other state, some 32,000 new jobs.
Other Key Findings
Increased Confidence Means More Investment and Employment
Nearly two-thirds of CFOs anticipate increased investment in the United States within the next 12 months, and more than half expect to increase employment over that same period.
Among Advanced Economies, America Offers a Better Business Environment
The percentage of insourcing CFOs who say America offers a better business environment compared to other advanced countries has increased dramatically, climbing 35 percentage points since 2011 (from 23 percent to 58 percent).
Tax and Regulatory Reform are Important
With CFOs identifying the U.S. corporate income tax as the least competitive among other advanced countries, it is no surprise that the most important area for the United States to improve to increase foreign direct investment was the U.S. tax system. Among tax policies, 54 percent of CFOs say the corporate tax rate was the factor that impacted their business the most.
Ensuring Fair Treatment of Insourcing Companies Is Critical
Four in 10 insourcing companies say unfair tax treatment has negatively impacted their U.S. business operations and more than a quarter have faced discrimination in bidding on government contracts.
The full findings of the survey are available at OFII.org/CFOSurvey.
Created more than two decades ago, the Organization for International Investment (OFII) is a non-profit business association in Washington, D.C. representing the U.S. operations of many of the world's leading global companies, which insource millions of American jobs. OFII works to ensure the United States remains the top location for global investment. As such, OFII advocates for fair, non-discriminatory treatment of foreign-based companies and promotes policies that will encourage them to establish U.S. operations, increase American employment, and boost U.S. economic growth. For more information, please visit www.OFII.org.
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