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Insourcing Facts

InsourcingDefinition

The economic impact of U.S. subsidiaries of global companies investing in the American economy

Insourcing Facts 1
  • Jobs - Employ 5.3 million Americans, or 4.7 percent of private sector employment.  
    Insourcing Jobs by State Map

  • Payroll - Support an annual payroll of $408 billion, paying U.S. workers an average of $77,409 - more than 36 percent higher than the economy-wide average.
  • Output - Add $649.3 billion in value to the U.S. economy, or 5.8 percent of private sector GDP.
Insourcing Facts 2
  • Manufacturing - Provide approximately two million manufacturing jobs, accounting for over 17 percent of America's manufacturing workforce.
  • Manufacturing payroll - Pay an average salary of $85,211 to employees in the manufacturing sector, higher than the nation-wide manufacturing average of $74,534.

  • Exports - Produce nearly 18 percent of U.S. exports, providing $229.3 billion in American goods and services annually to customers around the world.

  • Supply Chains - Purchase goods and services worth hundreds of billions of dollars every year from local suppliers and small businesses across the United States.
Insourcing Facts 3
  • Research and Development - Spend $41.3 billion annually on U.S. research and development activities, or 14 percent of all R&D performed by U.S. companies.

  • Reinvested Earnings - Reinvest an annual $87.4 billion of their earnings into their U.S. operations.

  • Taxes - Pay 14 percent of U.S. federal corporate income taxes. Source: IRS
Insourcing Facts 4
  • Capital Investment - Invest an annual $149 billion on property, plant construction and new equipment, accounting for 14.4 percent of all non-residential capital investment made in the United States.
  • Unions - Employ a higher percentage of union workers than the national average. 12.4 percent of employees at U.S. subsidiaries are covered by a union collective bargaining agreement, compared to 8.2 percent at all U.S. businesses. Source: BEA November 2009 (updated every four years)
  • Industrial Footprint - Employ approximately 34 percent of the U.S. motor vehicle industry, 31 percent of the U.S. chemicals industry, and 24 percent of the U.S. primary metals industry.

All statistics unless otherwise noted are the latest data from the Department of Commerce's Bureau of Economic Analysis released August 2012 regarding the U.S. subsidiaries of internationally-headquartered companies.  They are compiled by Content First, LLC for the Organization for International Investment.

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