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Statistics on U.S. Affiliates of Foreign Multinational Enterprises Now Available for 2014; Data for 2013 Updated

New statistics detailing the activities of U.S. affiliates of foreign multinational enterprises (MNEs) are now available from the U.S. Bureau of Economic Analysis. The statistics, which include the first information for 2014 and updated data for 2013, offer details on the finances and operations of U.S. affiliates of foreign MNEs, including their employment and compensation, sales, value added, capital expenditures, trade in goods, and expenditures for research and development.

With the release of statistics for 2014, BEA is reinstating several state-level data items that were available prior to 2008. The newly released statistics now include state-level data on the gross book value of property, plant, and equipment; commercial property; and manufacturing employment. These statistics complement the other state-level statistics BEA produces on the activities of U.S. affiliates: U.S. affiliate employment and number of affiliates by state.

Some highlights from the statistics on majority-owned U.S. affiliates (those with foreign ownership of more than 50 percent):

  • The current-dollar value added of majority-owned U.S. affiliates, a measure of their direct contribution to U.S. gross domestic product, totaled $869.1 billion in 2014. That’s an increase of $26.9 billion, or 3.2 percent, from 2013. The affiliates accounted for 6.4 percent of total U.S. private industry value added in 2014 compared with 6.5 percent in 2013.
  • Affiliates with ultimate beneficial owners in seven countries— the United Kingdom, Japan, Canada, Germany, Switzerland, France, and the Netherlands —accounted for nearly three-fourths of the value added by all majority-owned U.S. affiliates in 2014.
  • Majority-owned U.S. affiliates employed 6.4 million workers, up 3.1 percent in 2014, following a 5.0 percent increase in 2013. These affiliates accounted for 5.2 percent of all U.S. private industry employment, the same share as in 2013.
  • The states with the largest shares of total private industry employment accounted for by these affiliates in 2014 were South Carolina (8.2 percent), New Hampshire (7.6 percent), and Delaware (7.6 percent).
  • Exports of goods by affiliates rose in 2014 by $29.5 billion, or 7.5 percent, and imports rose by $19.2 billion, or 2.7 percent.
  • Research and development performed by affiliates rose by $2.8 billion, or 5.2 percent, in 2014.

For more information read the full article, which will be available in the August Survey of Current Business.

Statistics on the Activities of U.S. Affiliates of Foreign Multinational Enterprises Now Available for 2013; Updated Data Available for 2012

Statistics detailing the activities of U.S. affiliates of foreign multinational enterprises (MNEs) are now available from the U.S. Bureau of Economic Analysis.  The statistics, which provide information for the first time for 2013 as well as updated data for 2012, offer details on the finances and operations of U.S. affiliates of foreign MNEs, including their employment and compensation, sales, value added, capital expenditures, trade in goods, and expenditures for research and development.

Here are some highlights from the statistics:

  • The current-dollar value added of majority-owned U.S. affiliates, a measure of their direct contribution to U.S. gross domestic product, totaled $835.6 billion in 2013. That’s an increase of $43.3 billion, or 5.5 percent, from 2012. Value added by affiliates rose at a faster pace than total U.S. private industry value added. As a result, affiliates’ share of U.S. private industry value added increased to 6.4 percent in 2013, from 6.3 percent in 2012.
  • Affiliates with ultimate beneficial  owners in  seven  countries— the United Kingdom, Japan, Germany, Canada, Switzerland, France, and the Netherlands —accounted for nearly three-fourths of the value added by all majority-owned U.S. affiliates in 2013.
  • Majority-owned U.S. affiliates employed 6.1 million workers, rising 3.6 percent in 2013, following a 3.3 percent increase in 2012. The share of U.S. private industry employment accounted for by U.S. affiliates of foreign multinational enterprises was 5.2 percent, up from 5.1 percent in 2012.
  • The states with the largest shares of total private industry employment accounted for by U.S. affiliates in 2013 were South Carolina (8.1 percent), New Hampshire (7.4 percent), and Delaware (7.1 percent).
  • Exports of goods by affiliates rose by $10.5 billion, or 3 percent, and imports rose by $16.3 billion, or 2.5 percent, in 2013.
  • Research and development performed by affiliates rose by $2.7 billion, or 5.4 percent, in 2013.

For more information, read the full article in the November Survey of Current Business.

In August 2015, BEA released statistics on the activities of U.S. multinational enterprises (including U.S. parent companies and their foreign affiliates).

 

A New Look at State-Level R&D by Multinational Companies

The amount of research and development (R&D) generated by multinational companies varies widely across U.S. states.

A new examination of data shows that the R&D performed by foreign-owned U.S. affiliates in 2007 ranged from $1 million in South Dakota to $5.3 billion in California. In addition to California, the R&D of U.S. affiliates was higher than $2.5 billion in three other states: New Jersey, Pennsylvania, and Michigan.chart 1_0920

The R&D performed by U.S. parents of foreign affiliates ranged from $8 million in Wyoming to $43 billion in California.  In nine other states—Massachusetts, Michigan, New Jersey, Washington, Texas, Illinois, Pennsylvania, Connecticut, and New York—the R&D of U.S. parents was higher than $5 billion.

chart 2_0920

The state-level data recently became available through an interagency project that linked information from the Bureau of Economic Analysis’ annual surveys of multinational companies to information from the Survey of Industrial Research and Development conducted by the Census Bureau for the National Science Foundation.

The new research shows that states with the highest levels of R&D performed by multinationals tend to be the states that also have the highest levels of R&D generated by all U.S. businesses.

There are, however, significant differences among these states in terms of the relative importance of R&D performed by U.S. affiliates.table 1_0920

California, the top-ranking state for R&D performed by both U.S. affiliates and all U.S. businesses, accounts for 24 percent of the total R&D performed by all U.S. businesses but for only 16 percent of the total R&D performed by U.S. affiliates.  Reflecting this disparity, the share of California’s gross domestic product (GDP) (adjusted to count R&D expenditures as investment) accounted for by all-U.S.-business R&D is 3.3 percent, but the share accounted for by affiliate R&D is only 0.3 percent.

In contrast, New Jersey, which ranks second in terms of R&D performed by U.S. affiliates and third in terms of R&D performed by all U.S. businesses, accounts for 14 percent of the total R&D of affiliates but for only 7 percent of the R&D of all U.S. businesses.  The share of GDP in New Jersey accounted for by affiliate R&D (1.0 percent) is much closer to the share accounted for by R&D by all U.S. businesses (3.6 percent) than is the case for California.

In addition to New Jersey, the state shares of affiliate R&D are relatively large in Pennsylvania and North Carolina.  A common characteristic of these states is a high concentration of R&D activity in the chemicals industry (mainly pharmaceuticals).

For U.S. parent companies, the state shares of total R&D more closely match the state shares of R&D performed by all U.S. businesses.table 2_0920

For California, New Jersey, and North Carolina, the state shares of total parent R&D are almost identical to the state shares of total R&D for all U.S. businesses.  The variation across states in the percentage of state GDP accounted for by parent R&D closely tracks that for the percentage accounted for by all-U.S.-business R&D.

To learn more about the state distribution of R&D performed by U.S. affiliates and U.S. parent companies, read the full report.

 

 


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