EY 2017 US Investment Monitor Shows Steady Number of Business Investment Projects Announced in 2016
Friday, February 09, 2018
An increase in the number of smaller investments will increase competition among states to attract mobile capital
WASHINGTON, Dec. 11, 2017 /PRNewswire/ -- US business investment projects accounted for $142 billion in capital investment in 2016, according to the EY 2017 US Investment Monitor (USIM), an annual report prepared by Ernst & Young LLP's Quantitative Economics and Statistics (QUEST) and Indirect Tax practices. Nearly 5,400 business investments were announced in 2016 and are expected to create or retain more than 358,000 jobs in the United States. Compared with last year, this is approximately the same number of project announcements but $23 billion lower in capital investments and 44,000 fewer jobs.
"These small, but numerous projects are important drivers of economic development in most states," said Andrew Phillips, Principal of Ernst & Young LLP. "Companies research and analyze the relative merits of different locations before deciding where to invest, and many factors, including the availability of state and local tax incentives, contribute to investment decisions. Mobile capital investments serve as indicators of a region's or state's long-term economic growth potential and competitiveness."
Data from the announced projects analyzed in the 2017 USIM points to longer-term trends shaping economic development both regionally and across industries. The USIM is a leading indicator showing where new investment spending and jobs can be expected over the next several years. The report focuses on US and foreign companies' mobile capital investments, which are not tied to specific markets or geographies. Mobile capital investments include headquarters facilities, data and call centers, manufacturing facilities, distribution centers, and research facilities, which have a wide range of location options. Companies continue to pursue locations with high supply chain potential, low input costs, strong business incentives, growing industry clusters, and advantageous state and local tax systems.