Foreign Investment in Texas Report

An Expert's View about Main Industry Investment Targets in the United Kingdom

Posted on: 31 May 2012

A break down of Foreign Direct Investors in Texas. The UK ranks #1 as Foreign Investor and Employer

Foreign Investment in Texas The Industries and Countries Leading Current Growth 2 0 1 1 Office of the Governor | Economic Development & Tourism Foreign Direct Investment in Texas 2005-2010 Texas is a top-ranked global destination for 407 foreign direct investment (FDI). The state’s FDI projects established in Texas since 2005 strong economy, competitive business climate, and central location with5in N8orth America have 3 Texas cities rank among the top 10 foreign attracted more than 2,000 foreign multination- als to establish locations here. investment markets in the U.S. 33 This report analyzes data compiled by the con- 60% sulting firm FDI Intelligence between the years Of all FDI projects in Texas are Europe-based 2005-2010. During this six-year period, Texas was the destination for more FDI projects than 30 150 independent countries, including Chile, T O P F D I I N V E S T M E N T S E C T O R S Denmark, and New Zealand. Between 2005-2010, 337 non-U.S. companies planted more than 400 separate business expan- Software & IT 29 sions in Texas. Business Services On a national level, between 2005-2010, Texas Communications 29 was selected as the destination for: 1 in every 21 foreign Software & IT pro- Coal, Oil, & Gas jects locating in the U.S. Industrial 1 in every 9 foreign Coal, Oil, & Natural Machinery 0 20 Ga4s p0rojects locating in the U.S6. 0 80 As well as: 67 1 in every 14 U.K. FDI projects locating in the U.S. 1 4in ev8ery 15 German FDI projects locat- T O P ing in the U.S. S O U R C E C O U N T R I E S F O R F D I P R O J E C T S 38Despite the global recession, foreign invest- ment has continued to grow in Texas. During United the two year period 2009-2010, more FDI pro- Kingdom 35jects were recorded in Texas than in all four Germany previous years combined. France 34 The top three Texas destination cities for in- Japan ward foreign investment are Houston, Dallas, and Austin capturing 26%, 14%, and 12% of Canada the state’s investment projects respectively. 0 20 40 60 80 These three cities also rank among the top 10 FDI destination markets in the U.S. Texas is the only state with three cities in the top 10. Foreign Investment in Texas Top Foreign Direct Investment (FDI) Sectors in Texas Foreign Investment in Texas Software & Information Technology #1 FDI sector in Texas I n v e s t m e n t S o u r c e C o u n t r i e s 14% of all FDI projects in Texas Country Software & IT Total TX Projects, Projects in TX All Sectors 1 United Kingdom 12 67 2 Canada 10 34 3 France 6 38 4 Netherlands 4 17 5 Australia 3 12 Software & IT is Texas’ top jects locating in Texas were in the More than 80% of the state’s 58 sector for attracting foreign invest- Software & IT category. Software & IT investment projects ment projects. Since 2005, 58 located in three cities: Austin (18), investments in this sector have While both U.K. and Canadian Dallas (15), and Houston (13). been recorded representing 14% of companies made recent invest- the state’s total FDI projects. ments in Texas (more than half of On a national level, Texas was the all U.K. and Canadian investments destination for 1 in every 21 for- The U.K., Canada, and France led occurred since mid-2008), all eign Software & IT projects locat- the field in this sector. More than French investments in this sector ing in the U.S. 18% of all U.K., 29% of all Cana- happened prior to 2008. dian, and 15% of all French pro- R e c e n t P r o j e c t s f r o m T o p S o u r c e C o u n t r i e s Aveva CGI Group Triangle Studios United Kingdom Canada Netherlands U.K.-based AVEVA, Inc. recently in- In 2007, Canada-based CGI Group, Inc. Triangle Studios, a Dutch vested significantly in U.S. facilities and announced the opening of a Center of developer of applications and games for infrastructure, constructing a state-of- Excellence in San Antonio, Texas, in Nintendo DS, Wii, iPhone, and Play- the- art visualization center in Houston, addition to the company’s existing San station 3, leased 3,000 square-feet of Texas. The AVEVA Business Perform- Antonio U.S. Service Desk Operations. office space in Dallas , Texas, in 2010. ance Centre is equipped to display global design, engineering, construc- CGI and its affiliated companies staff The Dallas location was created as part tion, and operation solutions. over 125 offices in more than 20 coun- of the company’s strategic plan to lo- tries. In Texas, CGI employs more than cate closer to its U.S. customers and From its Houston headquarters, 500 workers across multiple metropoli- promote growth on an international AVEVA’s North American operations tan areas. The company currently scale. Triangle Studios began hiring provide the marine, oil & gas, power, maintains offices in Dallas, Ft. Worth, Dallas-based employees in 2010. and process industries with integrated Bedford, Austin, San Antonio, and Hous- engineering design and information ton providing IT and business process management solutions. Established in services to a wide range of clients in the 1985, the Houston office is staffed by Oil & Gas, Manufacturing, Insurance, approximately 40 employees. and Financial Services sectors. Foreign Investment in Texas Business Services #2 FDI sector in Texas I n v e s t m e n t S o u r c e C o u n t r i e s 8% of all FDI projects in Texas Country Business Services Total TX Projects, Projects in TX All Sectors 1 United Kingdom 8 67 2 Norway 6 13 3 Germany 3 48 4 India 2 12 Business Services is Texas’ sec- nearly half of that country’s total Of the state’s 33 Business Services ond largest sector for attracting FDI in Texas. Additionally, all projects more than 70% located in foreign investment. Since 2005, Norwegian investments made three cities: Houston (13), Dallas 33 investments in this sector have within this sector in Texas were (7), and San Antonio (4). been recorded representing 8% of located in Houston. the state’s total FDI projects. On a national level, Texas was the During 2009 and 2010, more for- destination for 1 in every 46 for- While the U.K. was the source of eign Business Services projects set eign Business Services projects the most Business Services pro- up shop in Texas than in all four locating in the U.S. jects (8), Norway’s six investment previous years combined. projects in this sector represented R e c e n t P r o j e c t s f r o m T o p S o u r c e C o u n t r i e s OilCareers.com Det Norske Veritas Siemens United Kingdom Norway Germany Oil Careers Ltd. opened an office in In 2009, Det Norske Veritas (DNV) In 2008, as part of a logistics, distribu- Houston, Texas in 2010. The Houston moved to a new 90,000 square-foot tion, and transportation project, Sie- office, designed to serve the U.S. and office in Katy, Texas. In addition to the mens Government Services, a wholly Canadian markets, is the company’s $21 million capital investment by the owned subsidiary of Siemens AG, an- first in North America. building owner, DNV invested $6 million nounced its lease of a 115,000 square- in capital improvements through local foot facility in Richardson, Texas. Based in the U.K., OilCareers.com is a contractors to achieve a LEED gold cer- web recruitment portal for the Oil and tification for the facility. With 62 Texas locations, multiple Sie- Gas industry. mens business units are represented Based in Oslo, Norway, DNV provides within the state, including Siemens risk management services through a Corporation, Energy, Healthcare, Indus- network of 300 offices in 100 countries. try, Financial Services, and IT Solutions In the U.S., DNV has more than 700 and Services. Together, these units employees, of which about employ more than 5,350 Texans. half are based at DNV’s La Porte, Texas, fuel testing laboratory and its divisional headquarters in Katy. Foreign Investment in Texas Communication #3 FDI sector in Texas I n v e s t m e n t S o u r c e C o u n t r i e s 7% of all FDI projects in Texas Country Business Services Total TX Projects, Projects in TX All Sectors 1 China 6 12 2 France 4 38 3 Japan 3 35 4 United Kingdom 3 67 Communication is Texas’ third Of the state’s 30 Communication jects located in Richardson, China largest sector for attracting foreign projects, more than 60% located in located three of its five invest- investment. Since 2005, 30 in- three cities: Dallas (7), Richardson ments in Richardson and one in vestments in this sector have been (7), and Austin (4). Dallas, and France located two of recorded representing 7% of the its four investment projects in Dal- state’s total FDI projects. The Dallas-Ft. Worth Metroplex, las. which includes Richardson, is China led this sector in the number home to more than 70% of the On a national level, Texas was the of projects. Half (50%) of all Chi- state’s Communication sector FDI. destination for 1 of every 24 for- nese projects locating in Texas All three of Japan’s Texas Com- eign Communication-sector pro- were in the Communication sector. munication sector investment pro- jects locating in the U.S. R e c e n t P r o j e c t s f r o m T o p S o u r c e C o u n t r i e s Huawei Technologies Alcatel-Lucent Fujitsu Network China France Communications Japan Huawei Technologies U.S.A., headquar- In 2006, Paris-based Alcatel-Lucent In 2009, Fujitsu Network Communica- tered in Plano, Texas, is a unit of the invested in the city of Plano, Texas, with tions (FNC) announced the expansion of Chinese-based Huawei Technologies the construction of its IP Transforma- existing laboratory facilities at its Co., Ltd., a global telecommunications tion Center. Today, Alcatel-Lucent Richardson, Texas headquarters to sup- company. In 2010, Huawei expanded employs more than 2,000 people in the port next-generation wireless technolo- its Plano facility to include a customer Dallas-Ft. Worth area working in the gies. The R&D center will serve as the demonstration center, test lab, and a areas of: microwave radio systems, focal point for long term evolution technical assistance center. applications software, optical technol- trials in the U.S., in addition to perform- ogy, and sales and network services. ing interoperability and verification Huawei has created more than 1,000 activities to fully support North Ameri- jobs in the U.S., approximately 600 of Plano is home to the company’s leading can operator needs. which are based in Plano. According to Executive Briefing Center and Proof of the company, over the next three years, Concept Lab, where Alcatel-Lucent Located on a 143-acre campus with Huawei plans to add several hundred showcases the latest innovations in LTE, more than 1,000 employees, Fujitsu is new jobs in the Plano IPTV, augmented reality, and enterprise one of the top ten-largest employers in area. applications. Richardson. Foreign Investment in Texas Coal, Oil & Natural Gas #4 FDI sector in Texas I n v e s t m e n t S o u r c e C o u n t r i e s 7% of all FDI projects in Texas Country Coal, Oil & Gas Total TX Projects, Projects in TX All Sectors 1 Canada 6 34 2 United Kingdom 4 67 3 Australia 3 12 4 France 3 38 5 Netherlands 3 17 Coal, Oil & Natural Gas is Texas’ Since 2005, the largest single for- new permanent jobs. fourth largest sector for attracting eign direct investment project in foreign investment. Since 2005, Texas was within the Coal, Oil, & On a national level, Texas was the 29 investments in this sector have Natural Gas sector. Saudi Ara- destination for 1 of every 9 foreign been recorded representing 7% of bia’s Saudi Aramco and the Neth- Coal, Oil, and Natural Gas pro- the state’s total FDI projects. erlands’ Royal Dutch Shell PLC, jects locating in the U.S. committed to a multi-year expan- More than 17% of all Canadian sion of the Motiva refinery in Port projects locating in Texas were in Arthur. When completed, the re- the Coal, Oil, & Natural Gas sec- finery will be the largest in the tor. nation, creating more than 300 R e c e n t P r o j e c t s f r o m T o p S o u r c e C o u n t r i e s Lynden Energy BP America TOTAL S.A. Canada United Kingdom France Lynden Energy Corp. is a Canadian- In 2006, BP announced plans to expand In 2008, TOTAL S.A. announced a $2.2 based oil and natural gas company en- its Houston, Texas operations. The total billion capital investment to upgrade its gaged in the acquisition, development, investment of the three-phase expan- Port Arthur refinery, the only such facil- and exploration of oil and natural gas sion was estimated to be $1 billion. ity the French-based oil company has in properties. Lynden’s 2009 capital in- North America. vestment in the state included its Wolf- The greater Houston area is the U.S. berry and Mitchell Ranch oil and gas headquarters for BP America and home According to the company, over the leases in the Permian Basin and West to the largest concentration of BP em- next 25 years the project is expected to Texas regions of the state. ployees and assets in the world. Key BP generate more than $23.2 billion in business units located in the area in- economic impact in Jefferson County clude: Exploration and Production, Gas and the Golden Triangle of Southeast and Power, Integrated Supply and Trad- Texas. Additionally, post-construction, ing, Alternative Energy, and the Texas about 300 permanent direct and indi- City Refinery, BP’s largest. rect jobs are expected to Together, these units em- be created. ploy an estimated 7,000 Texans. Foreign Investment in Texas Industrial Machinery, Equipment, & Tools #5 FDI sector in Texas I N V E S T M E N T S O U R C E C O U N T R I E S 7% of all FDI projects in Texas Country Industrial Mach. Total TX Projects, Projects in TX All Sectors 1 United Kingdom 8 67 2 Germany 4 48 3 Japan 3 35 4 Sweden 3 10 Industrial Machinery is Texas’ top investments in Texas’ Industrial Seven of the U.K.’s eight sector sector for attracting foreign invest- Machinery sector. investments located in the Houston ment projects. Since 2005, 29 area, while Japan and Germany investments in this sector have During 2009 and 2010, more for- both located two of their respec- been recorded representing 7% of eign Industrial Machinery projects tive sector projects in the metro the state’s total FDI projects. were recorded in Texas than in all area. four previous years combined. The UK led the field in this sector On a national level, Texas was the with eight recorded project invest- Of the state’s 29 Industrial Ma- destination for 1 in every 23 for- ments in Texas. Germany fol- chinery projects, nearly half (48%) eign Industrial Machinery projects lowed with four recorded project located in the Houston area. locating in the U.S. R E C E N T P R O J E C T S F R O M T O P S O U R C E C O U N T R I E S Wood Group Logging Bosch Elof United Kingdom Germany Sweden Wood Group Logging Services (WGLS), Bosch Rexroth AG, part of the German In 2009 the Swedish-based Elof AB, part of the U.K.-based international Bosch Group, announced the opening designer and manufacturer of indoor energy services company John Wood of a 14,000 square-foot Dallas Regional vehicles for heavy loads, established its Group PLC , opened a new 2.5-acre Service Center in 2009. The following U.S. subsidiary near the Dallas-Fort facility in Weimar, Texas in 2009. The year the facility added field service for Worth International Airport in Irving, facility was designed for technology industrial and mobile hydraulics cus- Texas. Elof’s Irving facility provides development, testing and demonstra- tomers. sales and service support for the U.S. tions, and to conduct hands-on well and Canada. logging training for the company’s log- The Bosch Group has approximately ging operators and engineers. 140 workers in Texas. Besides the Dal- las location, Bosch business units in the WGLS has operated in Texas for over 15 state include: Bosch Rexroth Sales Of- years and currently has 13 locations in fice (San Antonio), Bosch Aftermarket the state. (El Paso), Bosch Power Tools (Farmers Branch), Robert Bosch North America (Laredo), and BSH Home Appliances Corp. (Houston). Foreign Investment in Texas Top Source Countries for Foreign Direct Investment (FDI) Projects in Texas Foreign Investment in Texas United Kingdom #1 Source country for FDI projects in Texas The U.K. is the #1 Of Texas’ top five sec- 16% source country for FDI tors for attracting FDI, of all FDI projects in Texas are U.K.-based projects in Texas. the U.K. was the #1 investment source Since 2005, 67 U.K. country in three sec- FDI projects have been tors: Software & IT, recorded within the Business Services, and State of Texas, repre- Industrial Equipment. senting 16% of the state’s total FDI pro- More than 62% of U.K. jects. -based FDI projects in Texas were located in T o p U . K . I n v e s t m e n t S e c t o r s For the years 2009- three Texas metros: Sector Sector Projects Sector Projects 2010, the number of Houston (27), Dallas in Texas in the U.S. investment projects (7), and Austin (7). 1 made by U.K.-based Software & IT 12 139 companies in Texas On a national level, 2 Business Services 8 140 was greater than the Texas was the destina- 3 Financial Services 8 108 total number projects tion for 1in every 14 4 in the four preceding U.K. FDI projects lo- Industrial 8 39 Machinery years combined. cating in the U.S. 5 Real Estate 5 54 M a j o r U . K . C o m p a n i e s i n T e x a s El Paso, TX Wilmer, TX Austin, TX Houston, TX San Antonio, TX Weimar, TX Foreign Investment in Texas Germany #2 Source country for FDI projects in Texas Germany is the #2 Fresenius, Aldi Group, 12% source country for FDI BASF, and E.On. of all FDI projects in Texas are German projects in Texas. More than 36% of Ger- Since 2005, 48 German man FDI projects in FDI projects have been Texas were located in recorded within the one of three Texas met- State of Texas, repre- ros: Dallas (7), Hous- senting 12% of the ton (6), or Austin (4). state’s total FDI pro- jects. On a national level, Texas was the destina- T o p G e r m a n I n v e s t m e n t S e c t o r s Since 2005, a total of tion for 1 in every 15 Sector Sector Projects Sector Projects 33 German companies German FDI projects in Texas in the U.S. made recorded invest- locating in the U.S. 1 ments in Texas. The Chemicals 6 45 top 10 companies ac- 2 Healthcare 6 9 counted for more than 3 Food & Tobacco 4 35 50% of all German FDI 4 projects in Texas. Industrial 4 95 Machinery Among the top 10 5 companies were Plastics 4 34 M a j o r G e r m a n C o m p a n i e s i n T e x a s Richardson, TX Amarillo, TX Dallas, TX Roscoe, TX Baytown, TX Uvalde, TX Pasadena, TX Foreign Investment in Texas France #3 Source country for FDI projects in Texas France is the #3 source More than 55% of country for FDI pro- French FDI projects in 9% of all FDI projects in Texas are French jects in Texas. Texas were located in three Texas metros: Since 2005, 38 French Dallas (8), Houston FDI projects have been (7), and Austin (5). recorded within the State of Texas repre- On a national level, senting 9% of the Texas was the destina- state’s total FDI pro- tion for 1 in every 13 jects. French FDI projects locating in the U.S. T o p F r e n c h I n v e s t m e n t S e c t o r s Since 2005, a total of 29 French companies Sector Sector Projects Sector Projects in Texas in the U.S. made recorded invest- ments in Texas. The 1 Software & IT 6 79 top 10 companies ac- 2 Communications 4 17 counted for 50% of all 3 French FDI projects in Chemicals 3 29 the state. 4 Coal, Oil, & Gas 3 6 5 Consumer Products 3 55 M a j o r F r e n c h C o m p a n i e s i n T e x a s Amarillo, TX Plano, TX Grand Prairie, TX Port Arthur, TX Houston, TX San Marcos, TX Foreign Investment in Texas Japan #4 Source country for FDI projects in Texas Japan is the #4 source Since 2005, Japanese country for FDI pro- companies invested in 9% of all FDI projects in Texas are Japanese jects in Texas. more Texas FDI pro- jects than those from Since 2005, 35 Japa- China, Korea, and Tai- nese FDI projects have wan combined. been recorded within the State of Texas, rep- More than 45% of resenting 9% of the Japanese FDI projects state’s total FDI pro- in Texas were located jects. in three Texas metros: Houston (6), Dallas T o p J a p a n e s e I n v e s t m e n t S e c t o r s For the years 2009- (5), and San Antonio Sector Sector Projects Sector Projects 2010, the number of (4). in Texas in the U.S. investment projects 1 from Japanese compa- On a national level, Chemicals 5 31 nies in the state of Texas was the destina- 2 Automotive OEM 4 60 Texas was greater than tion for 1 in every 18 3 Communications 3 19 the combined total Japanese FDI projects 4 number projects of the locating in the U.S. Electronic 3 36 Components four preceding years. 5 Financial Services 3 21 M a j o r J a p a n e s e C o m p a n i e s i n T e x a s Richardson, TX Dallas, TX Houston, TX San Antonio, TX Mc Allen, TX Foreign Investment in Texas Canada #5 Source country for FDI projects in Texas Canada is the #5 source nies made recorded country for FDI pro- investments in Texas. 8% of all FDI projects in Texas are Canadian jects in Texas. The top 10 companies accounted for more Since 2005, 34 Cana- than 40% of all Cana- dian FDI projects have dian FDI projects in the been recorded in the state. State of Texas, repre- senting 8% of the More than 60% of Ca- state’s total FDI pro- nadian-based FDI pro- jects. jects in Texas were located in three Texas T o p C a n a d i a n I n v e s t m e n t S e c t o r s Of all Canadian FDI metros: Houston (9), Sector Sector Projects Sector Projects projects in Texas since Dallas (6), and Austin in Texas in the U.S. 2005, nearly 30% were (6). 1 in the Software and IT Software & IT 10 51 sector, while 18% were On a national level, 2 Coal, Oil, & Gas 6 21 in the Coal, Oil, & Gas Texas was the destina- 3 Industrial 3 27 sector. tion for 1 in every 14 Machinery Canadian FDI projects 4 Transportation 3 23 Since 2005, a total of locating in the U.S. 5 Financial Services 2 35 30 Canadian compa- M a j o r C a n a d i a n C o m p a n i e s i n T e x a s Wichita Falls, TX Midland, TX Irving, TX Austin, TX Houston, TX Marfa, TX Houston, TX San Antonio, TX Foreign Investment in Texas Office of the Governor Economic Development and Tourism PO Box 12428, Austin, TX 78711 512-936-0101 www.TexasWideOpenForBusiness.com www.governor.state.tx.us/divisions/ecodev
Posted: 31 May 2012