Mansfield mfg & fdi presentation

EMBRY-RIDDLE

Aeronautical University

W O R L D W I D E

Robert E. Mansfield, Jr., Brig Gen, USAF (RET)Executive Director

Center for Aviation and Aerospace Leadership

Foreign Direct Investments in the U.S. and the

U.S. Aerospace Manufacturing Industry

Foreign Direct Investment into the U.S.

EMBRY-RIDDLE


W O R L D W I D E

Overview

Background

Key Drivers of Foreign Direct Investment

AT Kearney 2013 Confidence Index

Foreign Direct Investment and GDP Growth in the United States

Size and Scope of Foreign Direct Investment in the United States

Foreign Direct Investment in the United States by Industry

Foreign Direct Investment in the United States by Region

Foreign Direct Investment in the United States and the Aerospace Industry by– Position– Inflows– Income

Foreign Direct Investment Benefits for the U.S.

Major Foreign Aerospace & Defense Manufacturers

2Foreign Direct Investment in the U.S 2014

EMBRY-RIDDLE


W O R L D W I D E

Background

Foreign direct investment plays an important role in the U.S. economy– Job creation– An increase in wealth and living standards – Growth and innovation that drive U.S. economic competitiveness.

The U.S. has been the world’s largest recipient of FDI since 2006.

Countries have confidence in the United States


Note: The Bureau of Economic Analysis defines Foreign Direct Investment in the U.S. (inward direct investment) as ownership by a foreign investor of at least 10 percent of a U.S. business.Note: The Bureau of Economic Analysis defines Foreign Direct Investment in the U.S. (inward direct investment) as ownership by a foreign investor of at least 10 percent of a U.S. business.

EMBRY-RIDDLE


W O R L D W I D E

Key Drivers of FDI into the U.S.

Open investment environment

Large economy with big and diverse consumer markets

Huge skilled labor force

Excellent schools and community colleges

World’s top research universities

Predictable regulatory history with appropriate intellectual property protections

Robust infrastructure

Stable and growing energy sector with new sources of energy


EMBRY-RIDDLE


W O R L D W I D E

AT Kearney 2013 Confidence Index

5

Foreign Direct Investment in the U.S 2014

Note: Confidence measured on a scale from 0 (no confidence) to 3 (high confidence)

EMBRY-RIDDLE


W O R L D W I D E

GDP Growth and FDI


EMBRY-RIDDLE


W O R L D W I D E

Size and Scope of FDI into the United States

The U.S. consistently ranks as one of the top destinations in the world for FDI.

As of 1 January 2013, FDI inflows totaled $187.5 billion

The U.S. manufacturing sector draws a considerable share of FDI, led by pharmaceuticals, petroleum, coal, and aerospace products.

Since 2010, Japan, Canada, Australia, and seven European countries have accounted for more than 80 percent of new FDI.

However, small flows from emerging economies like China and Brazil are growing rapidly


Source: New Report: Foreign Direct Investment In the United States. Retrieved from http://www.whitehouse.gov/the-press-office/2013/10/31/new-report-foreign-direct-investment-united-states

EMBRY-RIDDLE


W O R L D W I D E

Top Investor Countries 2010-2012 Average


EMBRY-RIDDLE


W O R L D W I D E

Trends in Top U.S. Aerospace Export Markets

9

Millions of U.S. Dollars

Source: U.S. Department of Commerce, International Trade Administration, TradeStats Express.

EMBRY-RIDDLE


W O R L D W I D E

Trends in U.S. Aerospace Imports by Country

10

Source: U.S. Department of Commerce, International Trade Administration, TradeStats Express,

EMBRY-RIDDLE


W O R L D W I D E

Trade Balance in Selected Products 2012

11

*Due to non-disclosure requirements, certain commodity classifications are subject to suppression and require a change in aggregation. For additional information see www.census.gov/ft900.

Source: U.S. Bureau of Economic Analysis

EMBRY-RIDDLE


W O R L D W I D E

Aerospace Exports to World by State 2013

12

Rank State 2009 2010 2011 2012 20132012 to 2013 (%

Change)

1 Washington 26,479 23,322 27,163 37,111 43,711 18

2 California 6,683 6,100 6,798 7,995 10,073 263 Connecticut 6,241 6,813 6,654 6,982 7,809 124 Georgia 3,442 4,499 5,929 5,639 6,753 205 Kentucky 4,721 3,560 3,522 3,835 5,631 476 Texas 4,893 4,484 5,145 5,636 5,612 07 Florida 3,977 4,471 4,989 5,736 5,272 -88 Ohio 4,118 4,698 5,427 5,663 5,063 -119 Arizona 2,148 1,987 2,373 2,603 3,095 19

10 New York 2,701 2,428 2,590 2,512 2,085 -1711 Kansas 2,868 2,124 2,127 2,101 1,858 -1212 Arkansas 1,679 585 490 1,867 1,843 -1

Millions of U.S. Dollars

Source: TradeStats Express, International Trade Administration, U.S. Department of Commerce, February 2014.

EMBRY-RIDDLE


W O R L D W I D E

Economic Activities of US Affiliates of Foreign Companies


EMBRY-RIDDLE


W O R L D W I D E

FDI Position in U.S. by Industry 2012


Source: Bureau of Economic Analysis

EMBRY-RIDDLE


W O R L D W I D E

FDI Position in U.S. by Region 2012



EMBRY-RIDDLE


W O R L D W I D E

FDI Position: All Industries



EMBRY-RIDDLE


W O R L D W I D E

FDI Position: Manufacturing and Aerospace



EMBRY-RIDDLE


W O R L D W I D E

FDI Financial Inflows: All Industries



EMBRY-RIDDLE


W O R L D W I D E

FDI Financial Inflows: Manufacturing and Aerospace



EMBRY-RIDDLE


W O R L D W I D E

FDI Income: All Industries



EMBRY-RIDDLE


W O R L D W I D E

FDI Income: Manufacturing and Aerospace



EMBRY-RIDDLE


W O R L D W I D E

Top Foreign Aerospace & Defense Manufacturers

Industry Week 1000 Rank (2013/2012)* Company Name Country

Revenue (Millions of Dollars)

Revenue Growth

52 / 59 Airbus Netherlands $ 74,694 14.45

167 / 158 BAE Systems PLC United Kingdom $ 27,036 -6.26

184 / 187 Finmeccanica SpA Italy $ 24,550 1.11

234 / 256 Rolls Royce Holdings PLC United Kingdom $ 19,655 8.94

654 / 702 Embraer SA Brazil $ 6,135 9.92

740 / 727 Dassault Aviation SA France $ 5,195 -3.83

780 / 823 Smiths Group PLC United Kingdom $ 4,884 6.62

818 / 925 Zodiac Aerospace France $ 4,548 25.65

828 / 888 MTU Aero Engines Holdings AG Germany $ 4,461 15.2

928 / 943 Saab AB Sweden $ 3,735 2.79

954 / 822 Gamesa Corporacion Tecnologica SA Spain $ 3,571 -20.19

*Rank based on 2012 Revenue Source: Industry Week


EMBRY-RIDDLE


W O R L D W I D E

Boeing’s Estimate of New Deliveries by 2031

23Arkansas Aerospace Summit 2014

Source: Boeing. Current Market Outlook 2012–2031.

EMBRY-RIDDLE


W O R L D W I D E

Projected Worldwide RPK Growth 2012–2031


Source: Japan Aircraft Development Corporation. Worldwide Market Forecast for Commercial Air Transport, 2012–2031.

EMBRY-RIDDLE


W O R L D W I D E

Boeing Air Freighter Forecast


Source: Boeing. Current Market Outlook 2012–2031.

EMBRY-RIDDLE


W O R L D W I D E

Summary

FDI supports a host of benefits in the United States, notably good jobs and innovation led by research and development investment.

Industrial countries are the primary source of FDI to the United States, however,

Emerging markets are becoming a bigger source of FDI and their share should be expected to increase as institutional and structural barriers in those countries decline.

About one-third of jobs at U.S. affiliates are in the manufacturing sector.

FDI into the U.S. aerospace industry has increased over the past five years.

Expect growth in global aerospace product and service demand.


EMBRY-RIDDLE


W O R L D W I D E

Aerospace Industry Report , 3rd Edition

The third edition of the Aerospace Industry Report provides a comprehensive industry outlook with:

11 Chapters

408 Pages

174 Figures

28 Tables

86 Pages of Additional Facts, Figures and data

4th Edition in Work – Fall 2014

27

Science

Mansfield mfg & fdi presentation