Expenditures by foreign direct investors to acquire, establish, or expand U.S. businesses reached $148.8 billion in 2023, according to preliminary data from the U.S. Bureau of Economic Analysis. This marks a decrease of $57.4 billion, or 28 percent, from the revised figure of $206.2 billion in 2022 and falls below the annual average of $265.6 billion for the period from 2014 to 2022.
In 2023, most expenditures were directed towards acquisitions of existing U.S. businesses, totaling $136.5 billion. Meanwhile, expenditures for establishing new businesses amounted to $7.4 billion and for expanding existing foreign-owned businesses stood at $5.0 billion. Planned total expenditures, including both first-year and future expenses, were projected at $175.9 billion.
Employment figures at newly acquired, established, or expanded foreign-owned businesses in the United States reached 110,000 employees during the year.
By industry sector, transportation and warehousing saw significant investment; however, specific values are withheld due to confidentiality requirements. The manufacturing sector accounted for $42.9 billion or 28.8 percent of total expenditures with notable investments in chemical manufacturing ($17.8 billion) and electrical equipment ($6.6 billion). Professional services also attracted substantial investment with $16 billion.
Canada led foreign investment by country with expenditures totaling $53.4 billion followed by Japan at $14.6 billion and Sweden at $8.4 billion. European countries contributed to 33.8 percent of new investments.
Missouri was the leading state recipient of investments in 2023 though specific amounts remain confidential; California received the second-highest amount with $12.8 billion followed by New Jersey ($12.1 billion) and Texas ($10.1 billion).
Greenfield investments—expenditures for establishing new U.S.-based operations or expanding existing ones—totaled $12.4 billion last year with manufacturing again leading sectors at $8.9 billion largely driven by electrical equipment production including batteries.
Planned greenfield expenditure initiated in 2023 reached an estimated total value of approximately $39 .5billion across various industries particularly within manufacturing which accounted primarily through electrical components production again inclusive notably featuring battery technologies among others regions such as Asia-Pacific dominated planned commitments overall while Southeast US region attracted highest levels geographically speaking amongst domestic locales involved
Current employment levels within acquired enterprises reached around106100 positions while total planned employment inclusive operational expansions anticipates reaching up132500 jobs overall across diverse industrial categories especially prominent being food chemicals processing sectors where demand continues growing alongside Canadian UK German interests prominently represented respective workforce distributions
California recorded largest employment numbers stemming directly attributable newly invested ventures numbering12800 roles trailed closely behind Texas New York states each accounting significant shares employee bases resultant latest economic activity observed