American Companies and Global Supply Networks Driving U.S. Economic Growth and Jobs by Connecting with the World Matthew J. Slaughter
JANUARY 2013 About Business Roundtable Business Roundtable (BRT) is an association of chief executive officers of leading U.S. companies with more than $7.3 trillion in annual revenues and nearly 16 million employees. BRT member companies comprise nearly a third of the total value of the U.S. stock market and invest more than $150 billion annually in research and development — equal to 61 percent of U.S. private R&D spending. Our companies pay $182 billion in dividends to shareholders and generate nearly $500 billion in sales for small and medium-sized businesses annually. BRT companies give more than $9 billion a year in combined charitable contributions. More at www.brt.org.
About the United States Council for International Business The United States Council for International Business promotes open markets, competitiveness and innovation, sustainable development and corporate responsibility, supported by international engagement and regulatory coherence. Its members include U.S.-based global companies and professional services firms from every sector of our economy, with operations in every region of the world. With a unique global network encompassing leading international business organizations, USCIB provides business views to policy makers and regulatory authorities worldwide, and works to facilitate international trade and investment. More at www.uscib.org.
About the United States Council Foundation The United States Council Foundation, Inc. is a private 501(c)(3) organization affiliated with the United States Council for International Business. It undertakes educational activities to promote the benefits of a free market economy, demonstrate and document the role of the corporate private sector in economic growth and social development, and advance sustainability in environmental management. Additional information is available at www.uscouncilfoundation.org. American Companies and Global Supply Networks Driving U.S. Economic Growth and Jobs by Connecting with the World
Matthew J. Slaughter January 2013
This report was sponsored and published by Business Roundtable, the United States Council for International Business and the United States Council Foundation. The views expressed in this report are those of the author.
© 2013 Matthew J. Slaughter
Table of Contents
Executive Summary 3
Key Facts 5
I. Introduction: 7 The Competitiveness Challenge of Building American Jobs Connected to the World
II. Globally Engaged U.S. Companies Are 9 Fundamentally American
III. Companies in America Must Venture Abroad 21 To Sell to New Customers
IV. Companies in America Must Venture Abroad 31 To Produce in New Ways
V. Globally Engaged U.S. Companies Create 41 American Jobs That Are Connected to the World
VI. Conclusions 51
Appendix: Data Definitions 53
References 55
Endnotes 57
American Companies and Global Supply Networks: Driving U.S. Economic Growth and Jobs by Connecting with the World
1
Executive Summary
America today sits at an economic crossroads, unsure of what path to take to confront its competitiveness challenge of too little economic growth and too few jobs. The good news is there is a future in which America can create millions of good jobs and strengthen its economic growth by seeking opportunities in global markets via international trade and investment. Doing so will require thoughtful U.S. policies that promote U.S. competitiveness and are based on a sound understanding that the success of American companies, and of the U.S. workers they employ, increasingly hinges on their success as globally engaged companies.
This report aims to provide that understanding by explaining what American companies must do to succeed in today’s dynamic global economy: an explanation — based on current statistics, academic and policy research, and case studies — of the mindset, goals and methods that create success in innovative, forward-looking companies. The report makes three main points about globally engaged U.S. companies.