Foreign investment in South Carolina supports more than 120,000 jobs

Columbia, SC–South Carolina ranks #2 in the nation in terms of the percentage of its private workforce employed by job-creating foreign investment, or jobs supported by U.S. subsidiaries of foreign companies. Of the state’s private sector workers, 8.1% are employed by job-creating foreign investment.

The Palmetto State ranks 16th in the nation in terms of total jobs created by foreign investment. U.S. subsidiaries of foreign companies employ 123,400 South Carolinians, according to a recent study released by economics professor Matt Slaughter at Tuck School of Business at Dartmouth.

The study, titled “Insourcing Jobs: Making the Global Economy Work for America,” examines the national impact of foreign direct investment. The report uses the latest government statistics and trends on job-creating foreign investment at the national and state levels.

U.S. subsidiaries have created jobs in every state in the country because they are “attracted by the world’s best, brightest and most creative workforce,” said Todd Malan, Executive Director of the Organization for International Investment.

“Obviously this is one of those fronts where we’re very competitive as a state,” said Governor Mark Sanford. “The more investment we can bring into South Carolina and stimulate from within South Carolina, the more jobs we’re going to create, period. With either of those efforts, though, the key to sustaining growth is creating a more business-friendly climate. We’re going to continue pushing for reforms like income tax relief that improve that underlying climate and open the door for additional job growth and investment in our state.”

“These numbers prove what we’ve been saying all along–that our state is extremely attractive to international investment,” said Commerce Secretary Bob Faith. “What’s more, the strong international presence in South Carolina will help us recruit even more global investors, as they recognize what foreign firms who have located here already know: our state has the ideal combination of superior infrastructure, skilled workers, and unbeatable quality of life. There is simply no better place on earth to invest than South Carolina!”

Job-Creating Foreign Investment: South Carolina Facts

South Carolina ranks 16th in the nation in terms of the total number of workers employed by U.S. subsidiaries of foreign firms, with a total of 123,400 – about 8 percent of its total private sector workforce.

South Carolina also ranks 13th in the nation in terms of the number of its manufacturing jobs created by U.S. subsidiaries of foreign firms, with a total of 62,400.

The number of jobs created by U.S. subsidiaries of foreign firms in South Carolina grew by 12,000 over five years, an increase of about 11 percent.

Foreign companies with subsidiaries in South Carolina include BASF; Beneteau; BMW; Freightliner; Fuji; GlaxoSmithKline; Honda; Inergy Automotive Systems; Michelin; Nestlé USA; Roche Consulting; Ryobi Ltd.; Square D Company; and Westinghouse.

The top 20 states in terms of the number of jobs created by U.S. subsidiaries of foreign companies – ranked in order – are California, New York, Texas, Illinois, Florida, Pennsylvania, New Jersey, Ohio, North Carolina, Michigan, Massachusetts, Georgia, Virginia, Indiana, Tennessee, South Carolina, Connecticut, Wisconsin, Maryland and Missouri. Nationally, U.S. subsidiaries of foreign companies employ more than 5.4 million Americans.

For a full copy of the report, more state-specific information, and the overall economic impact of U.S. subsidiaries of foreign companies, visit www.ofii.org.

This data, released by the Bureau of Economic Analysis in August 2004, represents the most recent available (for calendar year 2002).

The Organization for International Investment (OFII) is a Washington, DC based trade association, representing the U.S. subsidiaries of international companies.