Press Contact: Nancy McLernon
(202) 659.1903
nmclernon@ofii.org
FOR IMMEDIATE RELEASE:
October 19, 2004
North Carolina Ranks 9th in the Nation by "Insourced" Jobs
Benefits of Insourcing Lost in Outsourcing Debate
Washington, DC - October 19, 2004 - North Carolina ranks 9th in the nation in terms of the total number of "insourced" jobs - jobs supported by the U.S. subsidiaries of foreign companies. Insourcing companies employ 212,700 North Carolinians. The benefits of insourcing have been lost in the outsourcing debate, according to a study released today by an economics professor at Tuck School of Business at Dartmouth. The study details the increasing importance of 'insourcing' jobs.
The study, titled "Insourcing Jobs: Making the Global Economy Work for America," examines the national impact of foreign direct investment. "What has been almost entirely absent from this discussion about outsourcing is the converse dimension of globalization," said Professor Slaughter. "This process is called 'insourcing,' i.e., the expansion into the United States by foreign-headquartered multinational firms." The report uses the latest government statistics and trends on insourcing at the national and state levels.
"U.S. subsidiaries insource jobs to every state in the country, attracted by the world's best, brightest, and most creative workforce," said Todd Malan, Executive Director of the Organization for International Investment. "For example, Thomas Built Buses, a U.S. subsidiary of Germany's DaimlerChrysler, will open a new, $40 million, state-of-the art plant in High Point. The facility will employ over 1,100 employees and produce the new Thomas Built Buses Saf-T-Liner school bus," Malan added.
North Carolina "Insourcing" Job Facts
- North Carolina ranks 9th in the nation in terms of the number of workers employed by U.S. subsidiaries of foreign firms, with a total of 212,700 - about 7 percent of its private sector workforce;
- · North Carolina also ranks 5th in the nation by the number of its insourced manufacturing jobs, with a total of 91,400;
- North Carolina's insourced jobs grew by 17,100 over five years, an increase of about 9 percent;
- Insourcing companies in North Carolina include: Akzo Nobel Inc.; BSH Home Appliances Corporation; Degussa Corporation; GKN Automotive; Freightliner; Honda; Infineon Technologies North America Corporation; Michelin North America, Inc.; Saint-Gobain Corporation; Sodexho Inc.; Thomas Built Buses; Tomkins Industries; Unilever United States, Inc.; and Volvo Group North America, Inc.; and,
- Nationally, average compensation at U.S. subsidiaries is $56,667 - approximately 31 percent more than all U.S. companies.
The top 20 states in terms of the number of insourced jobs - 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 over 5.4 million Americans.
For a full copy of the report, more state-specific information on "insourcing" 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).
About the Organization for International Investment (OFII)
OFII is a Washington, DC based trade association, representing the U.S. subsidiaries of international companies. These companies are some of the largest employers in the United States. OFII is dedicated to ensuring that U.S. subsidiaries receive nondiscriminatory treatment under U.S. federal and state law.
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