Foreign Direct Investment

It is no secret that the U.S. is making a push for more foreign investment. With the economy making a slow recovery from the hardships of the past six years, and the current slump in European markets, insourcing appears to be the low hanging fruit capable of sparking a U.S. market surge. While the United States drew $166 billion in direct investment dollars in 2012, more than any other country, the U.S. share of foreign direct investment has fallen to 17 percent from more than a third in 2000. This is due in part to the volatility of the U.S. market since that time. However, JP Morgan anticipates the U.S. market to grow above the world's pace due to the uncertaintly in the European market.

The U.S. has also failed to market itself aggressively and has lagged Europe in attracting investment from developing nations. - Nancy McLernon, President | Organization for International Investment.

Karl Segura, Economic Development for Entergy-Texas, recently participated in SelectUSA, a conference designed to promote foreign U.S. investment. The 2013 conference welcomed over 1200 executives from 60 countries. Attendance at events such as this has allowed Southeast Texas the opportunity to capitalize on the interest in investing in the U.S. market.

Texas has a long history of welcoming direct investment, with nearly 500 projects locating to the Lone Star State since 2008, and while it is common to assume the projects are oil and gas related, the largest industry sector is software and information technology. However, the growth in Southeast Texas holds true to the norm. Manufacturing, as it relates to the oil and gas industry, is still the leading growth sector.

Since 2008, the largest single foreign direct investment project in Texas has been within the oil, gas and mining sector. Saudi Arabia's Saudi Aramco and the Netherlands' Royal Dutch Shell PLC, conducted a multi-year expansion of the Motiva Enterprises refinery in Port Arthur, Texas. Completed in 2012, the refinery is the largest in the nation and has created approximately 300 new permanent jobs. Report

Southeast Texas continues to see foreign interest from Singapore, Egypt, China, Korea, Germany, Turkey and South America. Many of the projects visiting the region are considering their first direct investment in the States. Cheap natural gas is driving much of the growth, but there has also been considerable interest from wood pellet manufacturers pursuing the Piney Woods of East Texas. German Pellets recently began production in Woodville, Texas, where it will produce up to 578,000 tons per year, and will export the majority of product from the Port of Port Arthur.

The resources of Southeast Texas draw the foreign investment to the region. Infrastructure and an environment friendly to business keeps them here.