Creating Jobs and Supporting the U.S. Economy Swiss Direct Investment in the United States Report 2014 Contents
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Creating Jobs and Supporting the U.S. Economy Swiss Direct Investment in the United States Report 2014 Contents Ambassador’s Foreword 3 Quick Facts 4 Guest Forewords 5 Swiss Direct Investment Abroad in 2012 6 Switzerland’s Impact on the U S Economy 7 Company Profiles 16 2 Ambassador‘s Foreword The people of Switzerland and the United States have Swiss companies and their American affiliates have always based their nations on the foundations of been among the leading direct investors in the U S for democracy, federalism, and a free-market economy many years As borne out by all current statistics, they They derive their strength from the shared values of remain committed to their endeavors in the U S with personal freedoms, the rule of law, and solidarity cumulative direct investment totaling $204 billion In creating our first constitution, Swiss leaders sought Furthermore, Swiss businesses today support nearly inspiration and guidance from the U S Constitution 450,000 jobs throughout the U S From 2009 to 2011, From those earliest days to the present, Swiss immi- they added jobs in 36 states with gains of 100% or grants and their descendants have contributed to the more in Mississippi, North Dakota, Louisiana, New American dream of opportunity and success Mexico, Wyoming and the District of Columbia U S affiliates of Swiss companies even rank first with re- Some of the most prominent Swiss-Americans include: gard to two important indicators: expenditures for research and development (R&D) and average annual › Albert Gallatin, fourth U S Secretary of the Trea- salaries of their employees: just below $100,000 sury › Louis-Joseph Chevrolet, founder of the Chevrolet With its small population of 8 million, Switzerland Motor Car Company punches well above its weight in the U S economy › Othmar Ammann, engineer and bridge builder and, given its world leadership in competitiveness and (George Washington Bridge, N Y ) innovation, will continue to be a reliable partner of › Robert Portman, current U S Senator and Co-Chair the United States in dealing with the economic and of the Friends of Switzerland Caucus political challenges of our times › Amy Klobuchar, current U S Senator and Co-Chair of the Friends of Switzerland Caucus Swiss businesses have operated in the U S for over a hundred years Their success is rooted in their firm Martin Dahinden belief in entrepreneurship and innovation Ambassador of Switzerland to the United States of America 3 Quick Facts Punching way above its weight: Switzerland’s impact on U S jobs and the U S economy is very significant 450,000 DIRECT JOBS FINANCE & JOB INSURANCE—58,000 FooD—55,000 160% GROWTH in PARTNERS CHEMICAlS—51,000 R&D—23,000 15 STATES oTHER—263,000 2009–2011 VENDoRS GROWTH SUPPLIERS f O 16% % 1.8 MILLIoN # INDIRECT JOBS JoBS IN All 1 50 STATES AVERAGE SAlARy 100,000 SWITZERLAND’S IMPACT on U.S. Jobs & Economy 8.9 BIllIoN R&D SPENDING #5 #7 206 # 62 BILLIoN 1 BILLIoN in SAlES +in VAlUE ADDED+ # 204 6 BILLIoN CUMUlATIVE INVESTMENT #4 1.4 ASSETS TRILLIoN TRILLIONS BILLIONS THOUSANDS HUNDREDS 4 Guest Forewords This year’s numbers demonstrate once more the excel- to work together on innovation and competitiveness lent economic ties between Switzerland and the Unit- It is not by coincidence that Switzerland and the USA ed States Data on foreign direct investment of Swiss are both ranked the most innovative and most com- affiliates in the U S tell the great success story of our petitive countries in the world business relationships In the years since the financial crisis, trade has gone from record to record–in both In the following, you will read the story of a small, directions! Over a two-year period, 2012-2013, Swiss landlocked country in the Alps that has an astonish- exports to the USA grew nearly 20% and Swiss im- ing footprint in the largest economy in the world and ports from the USA grew 25% And all this in a rather beats many countries boxing in a much higher weight anemic business environment! class Foreign direct investments, which due to their long- term effects are an even better characterization of our mutual trust and appreciation, also went from record Martin Naville levels to new record levels We take pride in our joint CEO success And we need to find even more opportunities Swiss-American Chamber of Commerce Foreign direct investment (FDI) in the United States Switzerland and the United States have numerous has played an important role throughout our nation’s close ties to one another, including historical, finan- history The United States is proud of its robust entre- cial, and familial Not least among these ties are the preneurial spirit, innovative mindset, and diversity The robust business relationships that exist between our United States is also proud of its investment regime, two countries The United States places great value which is open, transparent, and nondiscriminatory on our continued engagement and cooperation with our Swiss counterparts Switzerland is the eighth larg- Today, foreign direct investment contributes to the est source of direct investment in the United States U S economy across industry sectors and business ac- by country of ultimate beneficial owner (UBO) and tivities in all 50 states In 2012 alone, the United States the sixth largest investor by country of foreign parent attracted $160 1 billion of foreign direct investment group The total stock of FDI in the U S economy is valued at nearly $2 7 trillion, making it the largest recipient That is a remarkable position, and one that I am proud of FDI in the world U S operations of foreign-owned to encourage other potential Swiss investors to ex- firms support about 5 6 million jobs, and generate plore more closely through this report over one-fifth of U S annual exports Aaron S. Brickman Deputy Executive Director, SelectUSA U S Department of Commerce 5 Swiss Direct Investment Abroad in 2012 In 2012, almost one-fifth of all Swiss direct investment abroad went to the U S , more than twice as much as to Luxembourg, the second largest country desti- nation, and more than thirteen times as much as to China Overall, Switzerland has the fifth highest rate of foreign direct investment outflows of all OECD coun- tries, ahead of countries such as France, South Korea, Norway and Sweden The main areas of investment are the financial and insurance sector (39 05%), chem- icals and plastics (24 44%), other manufacturing and construction (10 01%), as well as electronics, energy, optical equipment and watchmaking (7 05%) Germany, 4.8% Rest of the World, 14.6% France, 2.9% Italy, 2.4% Brazil, 2.1% Luxembourg, 9.3% Central & South American Netherlands, 5.7% Financial Centers**, 12.1% Australia, 1.7% UK, 7.7% Singapore, 1.8% Japan, 1.3% China, 1.4% European Financial Centers*, 3.2% United States, 18.8% Rest of EU, 6.7% Canada, 3.5% Swiss Direct Investment Abroad in 2012 by country * Gibraltar, Guernsey, Jersey and the Isle of Man ** Anguilla, Bahamas, Barbados, Bermuda, Virgin Islands (British), Curaçao, Cayman Islands, Montserrat, Panama, Saint Kitts and Nev- is, Saint Martin; as of 2000, including Virgin Islands (U S ), Antigua and Barbuda, Belize, Dominica, Grenada, Saint Lucia, Saint Vincent and the Grenadines, Turks and Caicos Islands; as of 2011, including Aruba, excluding Bonaire, Saint Eustatius and Saba, Jamaica Sources: Swiss National Bank, Statistics 2012, Swiss Direct Investment Abroad–by Country and Swiss Direct Investment Abroad-by Eco- nomic Activity OECD, FDI in Figures, April 2014 6 Switzerland’s Impact on the U.S. Economy The information presented here reveals the presence and strength of Swiss affiliates operating in the U S through various indicators such as their investments and job creation The statistics show that Switzerland has a notable impact on the U S economy and adds to its growth across a range of sectors Swiss Cumulative Direct Investment Tops $200 Billion Swiss companies have a long history of investing in All Others 1. United Kingdom the large and diversified U S economy that offers $541 B $487 B extraordinary business opportunities State and local economic development agencies vie for Swiss invest- ment because it brings skilled, and often highly paid, 8. Germany 2. Japan jobs to their communities $199 B $308 B Switzerland is the sixth largest investing country in the 7. Luxembourg United States By the end of 2012, Switzerland had $202 B 3. Netherlands invested $204 billion, accounting for eight percent of $275 B the $2 7 trillion in foreign direct investment (FDI) stock 6. Switzerland in the United States Switzerland and seven other 4. Canada $204 B countries make up the overwhelming majority of FDI 5. France $225 B in the United States $209 B Cumulative Foreign Direct Investment in the United States by Country through 2012 Swiss Direct Investment Flows Peak in 2008 $45.7 B $41.4 B Over the past decade, investment flows from Swit- zerland were exceptionally robust in 2008 and 2010, reaching $45 7 billion and $41 4 billion, respectively A couple of notable years of disinvestment occurred $19.9 B in 2003 and 2007 $12.6 B $10.7 B $10.0 B $6.6 B Even though the U S government only disclosed Swiss -$3.1 B $1.2 B -$4.3B $0.3 B investment data for two quarters in 2013, estimates 2004 2005 2006 2008 2009 2010 2011 2012 2013 2003 (est.) *Foreign (Swiss in this instance) indicate that Swiss affiliates invested $10 billion in 2007 direct investment in the United the United States for the entire year Based on that Swiss Direct Investment in the United States* 2003–2013 States measures equity