Automotive Insourcing Investments on the Rise; Global Companies Announce Record Number of Greenfield projects in 2010

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The U.S. operations of global companies announced or opened more than 1,300 new Greenfield projects in 2010, which created nearly 123,000 new, American jobs. Of those jobs, 22,000 are in the automotive sector, all due to the surge in Greenfield investments by global auto companies such as Toyota,Hyundai, Nissan, Volkswagen and Daimler.

A new OFII report issued today shows a surge in automotive Greenfield investments by the U.S. operations of global companies. In fact, one in ten Greenfield projects by these companies in 2010 was directly linked to the automotive sector; projects which generated an estimated $7.5 billion in capital investment last year and created more than 22,000 new jobs in areas such as car assembly factories, automotive components plants, and a variety of other projects directly linked to the final production of automobiles. Insourcing Greenfield Investments are brand new investments in facilities, manufacturing plants, offices or other company related structures by global companies.

The OFII report shows global companies made more than 1,300 new Greenfield investments in 2010—representing an estimated $55 billion in total investments and creating nearly 123,000 new jobs across 39 sectors. This marks the largest number of planned projects since fDi Markets began tracking Greenfield projects in 2003.

“The explosion of investment by global auto companies over the last year tells a vibrant story,” said Nancy McLernon, OFII President & CEO. “Companies, like Toyota, Hyundai, Honda and Volkswagen have all announced significant Greenfield projects in 2010—which are creating thousands of direct and indirect jobs in communities nationwide.”

“Many of these companies have a long-standing relationship with the U.S. and have been investing and creating jobs here for decades. That commitment continues, as evidenced by this latest report,” McLernon added.

Greenfield Report Key Findings, 2010

Jobs: Greenfield insourcing projects created nearly 123,000 American jobs.

Manufacturing Jobs: Greenfield jobs in the manufacturing industry totaled nearly 65,000 jobs.

Automotive Jobs on the Rise: Greenfield insourcing projects in the automotive sector alone created more than 22,000 jobs in the U.S., up 20 percent from 2009.

Green Energy Auto Jobs Play a Major Role: More than one-quarter of all auto employment – or 6,000 jobs – were tied to green energy projects, with investments totaling $2.5 billion.

To view the full report click [here.

To view the report addendum click [here.

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