GLOBAL MANUFACTURERS · U.S. MARKET ENTRY

Foreign Direct Investment (FDI) in the U.S.

Global ambition.
American foundation.

Build a U.S. operating base that fits your production, people, supply chain, and future growth. WorldPoint connects your global expansion strategy with the evidence behind a confident location decision.

Global manufacturing strategy connected to a U.S. operating baseA conceptual globe and connection routes show manufacturers in Europe, Asia, and other global markets converging on a U.S. facility. Routes are illustrative. EuropeAsiaGlobal marketsThe destinationU.S. operating basePeople · infrastructure · long-term fitGlobal strategy / local execution

Conceptual investment network · illustrative routes

Strategy → location → executionA practical guide to manufacturing FDI

01 / UNDERSTAND THE INVESTMENT

FDI begins with a long-term operating decision.

Foreign direct investment (FDI) is a cross-border investment that creates a lasting business interest and influence over an enterprise in another country. For a manufacturer, that can mean a new U.S. plant, an acquired operation, or a jointly owned facility.

The country decision is only the beginning. Your state, region, community, and site shape hiring, utility capacity, freight performance, operating costs, and the ability to expand.

WorldPoint Site Selection helps international manufacturers turn these connected decisions into a practical U.S. expansion plan.

BUSINESS OPERATIONS

Direct investment

A lasting stake in an enterprise and its operating performance: facilities, people, management influence, and supply chains.

U.S. statistical reporting uses a threshold of 10% or more of voting ownership (or an equivalent interest). This threshold does not mean that every direct investor has majority control.

Read the BEA definition ↗

FINANCIAL HOLDINGS

Portfolio investment

Holdings in securities such as stocks or bonds that do not meet the direct-investment relationship. The focus is a financial position rather than establishing a manufacturing operating base.

Why do manufacturers consider the United States?

The appeal is a combination of market access and operating capabilities. Each advantage still needs to be tested in the locations your project is considering.

  • Customers & marketsProximity to consumers, major OEMs, and industrial buyers.
  • Manufacturing talentRegional pools of production, engineering, and skilled trades.
  • Transport networksHighway, rail, port, airport, and intermodal connections.
  • Energy optionsA diverse energy system; capacity and pricing vary by site.
  • Business frameworkEstablished ownership, contract, and dispute-resolution systems.
  • Technical educationCommunity colleges, training partners, and universities.
  • Innovation & IPEngineering, automation, research, and intellectual-property protections.
  • North American reachConnections to Canadian and Mexican customer and supply networks.

02 / CHOOSE YOUR ENTRY PATH

Four ways to establish a U.S. presence.

The right approach depends on your production model, capital plan, schedule, and appetite for integration or development risk.

01

Greenfield

Build a new facility around your production and growth requirements.

The opportunity
Control over layout, technology, and future expansion.

What to validate
Land readiness, utility delivery, permitting, construction, and commissioning.

02

Brownfield

Reuse, expand, or redevelop an existing industrial site or building.

The opportunity
An established location and potentially usable infrastructure.

What to validate
Environmental history, building condition, process fit, and expansion constraints.

03

Acquisition

Buy a U.S. company or operating facility and integrate it into your network.

The opportunity
Access to an existing workforce, suppliers, customers, and systems.

What to validate
Valuation, inherited obligations, cultural fit, and operational integration.

04

Joint venture

Partner with another business to share ownership and operating responsibility.

The opportunity
Local knowledge, complementary capabilities, and shared investment.

What to validate
Governance, decision rights, partner alignment, and responsibilities.

Two connected choices: greenfield and brownfield describe the facility approach; acquisition and joint venture describe ownership or transaction structures. They can overlap. A joint venture, for example, may build a greenfield plant.

Regional headquarters, engineering and R&D centers, and logistics hubs can also support a manufacturer’s U.S. network. Align their locations with the wider operating strategy.

03 / EVALUATE THE OPERATING FOUNDATION

The eight factors behind a durable U.S. investment.

Use the same evaluation framework for every candidate. Weight it around your operation, and identify requirements that a location must meet before a strong overall score can count.

Workforce & skills

Test the labor shed, relevant occupations, wages, benefits, competing employers, hiring pace, and training partners.

Supply chain & freight

Model customer and supplier access, inbound and outbound freight, ports, highways, rail, airports, and route resilience.

Utilities & capacity

Confirm power, water, wastewater, gas, fiber, reliability, delivery timing, costs, and future capacity with providers.

Property & readiness

Review building fit, zoning, site conditions, environmental history, infrastructure, development timing, and expansion land.

Total operating cost

Compare labor, energy, taxes, insurance, occupancy, construction, logistics, and the assumptions behind long-term costs.

Business climate & risk

Assess permitting, local support, regulatory conditions, weather exposure, community fit, and implementation uncertainty. For a practical review of local operating factors, see U.S. site selection for international manufacturers.

Incentives & commitments

Evaluate support against eligibility, payment timing, capital and job commitments, and continuing obligations.

Room for future growth

Check additional land, building flexibility, utility headroom, future hiring capacity, and phased expansion options.

Go deeper with the manufacturing location scorecard and facility location risk analysis.

Four levels of a U.S. location decisionA national search narrows to a suitable region, then a community and finally an individual site. Every level requires more specific operational evidence.Your operationSiteCommunityRegionU.S. searchMake the map more specific.National screen → local evidence

Schematic decision layers · tailored to each project

ZOOM IN UNTIL THE EVIDENCE IS SPECIFIC

There is no universal “best” state for manufacturing FDI.

A strong state-level story can conceal a weak local fit. A low-cost building can sit in a constrained labor market. A promising industrial park can still lack the power your process needs.

  1. National fitDefine customer reach, supplier relationships, production requirements, and the broad regions worth screening.
  2. Regional fitCompare industry clusters, labor markets, logistics corridors, energy conditions, and operating costs.
  3. Community fitTest hiring competition, training partnerships, infrastructure, quality of life, and local execution support.
  4. Site fitValidate the specific property, utilities, environmental conditions, permits, schedule, and room to expand.

Explore how manufacturers compare U.S. location options.

INDUSTRY REQUIREMENTS CHANGE THE MAP

Start with what your facility actually needs.

Manufacturing sectors bring different location priorities. Use them to define the search criteria, then verify capacity and availability locally. Data centers are included here as an infrastructure-intensive investment category.

Illustrative operating priorities by industry
Project typeLocation priorities to investigate
Automotive & electric vehiclesOEM and supplier proximity, maintenance and engineering talent, component logistics, and distribution.
Batteries & semiconductorsPower availability and reliability, process water and wastewater, materials supply, specialist skills, and permitting.
Electronics & medical devicesPrecision skills, engineering support, quality systems, suitable production environments, and supplier networks.
Food processing & chemicalsInputs and feedstocks, cold-chain or specialized freight, water needs, safety, and environmental approvals.
Industrial equipment & aerospaceMachining, assembly, skilled trades, industrial buyers, and access to relevant supplier clusters.
Advanced manufacturing & data centersAutomation and technical talent for manufacturing; substantial power, fiber, reliability, and connectivity for data centers.

Explore manufacturing feasibility studies and manufacturing infrastructure and site readiness.

04 / MOVE FROM STRATEGY TO A DECISION

A structured search.
A clear operating case.

Five connected stages bring the original project requirements into a decision leadership can evaluate. The scope and pace depend on your project’s complexity and the evidence still needed.

Start before a property commitment, final facility design, or major capital decision limits your options.

  1. Define the business case

    Clarify products, capacity, customers served, facility size, investment, workforce, utility loads, logistics, timing, and future phases. Set non-negotiable requirements and evaluation weights.

    Output: an agreed project brief and comparison criteria.

  2. Screen states, regions & communities

    Use workforce, industrial clusters, transport access, costs, and business conditions to narrow the national search. Examine suitable existing buildings, greenfield sites, and build-to-suit options.

    Output: a shortlist of credible markets and sites.

  3. Validate the operating environment

    Analyze labor supply and competition. Confirm utilities with providers. Review transportation, environmental and property conditions, site readiness, and development constraints. Organize focused site visits.

    Output: evidence of feasibility and a register of open questions.

  4. Compare costs, risks & incentives

    Build capital and operating cost scenarios using consistent assumptions. Evaluate incentives and their commitments alongside schedule, execution risk, utility needs, and expansion plans.

    Output: a comparable business case for the finalists.

  5. Make the decision & coordinate implementation

    Provide executive recommendations and document the trade-offs. Coordinate early implementation, permitting discussions, economic development engagement, and the transition toward U.S. operations.

    Output: a defensible location decision and practical next steps.

05 / PUT INCENTIVES IN CONTEXT

Incentives should strengthen a sound location decision.

A strong site makes an incentive valuable.

Support can improve the business case, but it cannot create a missing labor force or make unavailable power arrive on time. Compare the fundamentals first, then evaluate the incentive package against your investment plan.

Explore incentives advisory services ↗

  • Eligibility & timingWhich activities qualify, when must applications be made, and when is support available?
  • Commitments & conditionsWhat employment, wages, investment, reporting, and continued-performance obligations apply?
  • Financial value & riskHow does support affect the cash-flow model, and what changes if commitments are not met?

State programsTax credits, grants, or rebates tied to qualifying investment and jobs.

Local supportProperty tax abatements, local grants, or other eligible community support.

Infrastructure assistancePotential support for roads, rail, utilities, or site preparation.

Training supportRecruitment and customized workforce training assistance.

Federal opportunitiesIndustry-, technology-, or location-specific programs where eligible.

Permitting coordinationHelp understanding approval steps and improving project coordination.

COMPARE THE COMPLETE INVESTMENT

The property price is only one part of the cost.

A low acquisition cost can be offset by retrofit work, long freight routes, higher operating expenses, or a delayed start. Model both the initial investment and the operating years that follow.

Four views of the manufacturing investment case
Cost or risk lensWhat belongs in the model
Capital requirementsLand or building, construction or retrofit, process equipment, infrastructure connections, engineering, and commissioning.
Recurring operating costsLabor and benefits, energy, water, taxes, insurance, occupancy, maintenance, transportation, and logistics.
Schedule & execution exposureUtility lead times, approvals, construction conditions, hiring and training, integration, and the production ramp.
Future phasesExpansion land, additional equipment and floor space, utility growth, supplier development, and workforce capacity.

Use manufacturing cost analysis to compare scenarios and the manufacturing expansion costs guide to frame budget questions.

AVOID THE COMMON FDI PITFALLS

Resolve the questions before the capital is committed.

Leading with incentives

Screen operational fit first. A headline package is useful only when the site supports the production, workforce, and schedule requirements.

Underestimating hiring or utility needs

Test labor supply and competing employers. Confirm present and future utility capacity, provider commitments, and delivery dates.

Accepting the first available property

Compare viable alternatives, examine environmental and building conditions, and plan room for future phases.

Looking only at wages or purchase price

Model total capital and operating costs, including logistics, taxes, insurance, energy, and the effect of future changes.

Overlooking suppliers, customers, or community fit

Test freight networks, supplier proximity, local workforce expectations, support partners, and permitting conditions.

Leaving risk and expansion until later

Review weather and supply-chain exposure, development uncertainties, and the capacity to grow before making a commitment.

HOW WORLDPOINT SUPPORTS YOUR U.S. INVESTMENT

From global strategy to local execution.

WorldPoint Site Selection focuses on industrial and manufacturing location strategy in the United States. We support international companies entering the country for the first time and businesses expanding their existing U.S. operations.

Location strategy

Compare U.S. regions, states, communities, and candidate sites against the manufacturing brief.

Location strategy services ↗

Feasibility & cost

Evaluate operating economics, workforce, utilities, freight, real estate, and development assumptions.

Manufacturing feasibility studies ↗

Incentives & decision support

Coordinate state and local partners, compare incentive commitments, and present clear executive recommendations.

Incentives advisory services ↗

Implementation & landing

Connect the location decision with early project coordination, partner introductions, and the transition to U.S. operations.

U.S. landing services ↗

The work brings discovery, national screening, state comparison, community evaluation, financial modeling, utility due diligence, workforce analysis, site visits, incentive negotiations, and executive recommendations into a coordinated process. Early implementation support helps carry the decision into action.

For country-specific expansion needs, explore international manufacturing expansion to the U.S..

QUESTIONS FROM GLOBAL MANUFACTURERS

Foreign direct investment FAQs.

Clear answers to the questions behind a U.S. manufacturing investment.

What is foreign direct investment (FDI)?

FDI is a cross-border investment that establishes a lasting business interest and management influence. In the United States, the statistical threshold is generally 10% or more of voting ownership, or an equivalent interest. A U.S. manufacturing subsidiary, acquisition, or jointly owned facility can be part of that relationship.

How does FDI differ from portfolio investment?

FDI involves a lasting direct-investment relationship with an enterprise. Portfolio investment involves financial securities without that relationship. For manufacturers, FDI is closely connected to facilities, workforce, supply chains, and ongoing operating performance.

Why do companies invest in the United States?

Companies may seek access to U.S. customers, proximity to major industrial buyers, manufacturing skills, transportation networks, technical education, innovation partners, and a North American operating platform. The value of each advantage depends on the specific location and project.

Which industries use manufacturing FDI site selection?

Automotive, electric vehicles, batteries, semiconductors, electronics, medical devices, food processing, chemicals, industrial equipment, advanced manufacturing, and aerospace bring different workforce and infrastructure requirements. Data center investment also requires detailed location and infrastructure evaluation.

What is a greenfield investment?

A greenfield project builds a new facility on an undeveloped or lightly developed site. It can provide flexibility over plant design and expansion, while requiring careful planning for utilities, permits, construction, commissioning, and capital costs.

What is a brownfield investment?

A brownfield approach reuses, redevelops, or expands an existing industrial site or facility. It may offer an established location and infrastructure, but environmental history, building condition, production fit, and expansion constraints require due diligence.

How do greenfield and brownfield investments compare?

Greenfield projects provide more design flexibility. Brownfield projects may use existing facilities and infrastructure. Neither approach is always faster or cheaper: utility work, environmental conditions, retrofits, approvals, and the production process can change the comparison.

How do foreign manufacturers choose a U.S. location?

They define the operating brief, screen states and regions, analyze workforce and utilities, review logistics and properties, compare costs and risks, evaluate incentives, and validate finalists through due diligence and site visits. See the manufacturing site selection process.

Which factors should be evaluated before investing?

Workforce, supply chain and transportation, utilities, industrial real estate, site readiness, operating costs, business climate, incentives, risk, and future expansion capacity. Critical requirements should be confirmed before a final property or capital commitment.

What incentives may be available to foreign companies?

Depending on eligibility, companies may consider state and local tax credits, grants, abatements, infrastructure assistance, training support, or certain federal programs. Availability, application timing, job and investment commitments, and ongoing obligations differ by program and project.

Which U.S. state is best for manufacturing FDI?

There is no single best state for every project. Industry clusters, labor markets, utility capacity, logistics, costs, and development conditions should be compared against your requirements. The final decision needs evidence about the community and specific property as well as the state.

How long does manufacturing site selection take?

Timing varies with the geographic search, decision process, available buildings or land, data needs, utility requirements, incentives work, and the depth of due diligence. The evaluation may take several months or longer; the schedule should reflect the confirmations the project requires.

How much does a U.S. manufacturing facility cost?

Costs depend on industry, size, production processes, automation, property type, construction or retrofit needs, infrastructure, location, and timing. A project-specific feasibility study and capital and operating cost model provide a more useful answer than a generic cost estimate.

Can foreign companies own U.S. manufacturing facilities?

Yes, foreign-owned companies can establish U.S. manufacturing operations, subject to applicable requirements and any transaction-, sector-, or location-specific restrictions. Ownership, reporting, legal, and tax questions should be reviewed with the appropriate qualified advisors. The SelectUSA Investor Guide is a starting resource.

Why is site selection important for foreign direct investment?

The location shapes hiring, utility availability, freight performance, cost structure, development timing, risk, and future growth. A structured comparison connects the investment strategy with the operating conditions that the business will rely on after launch.

KEEP BUILDING YOUR U.S. PLAN

Related guides and services.

YOUR NEXT U.S. LOCATION DECISION

Build the foundation for your U.S. future.

Tell us about your products, facility needs, workforce, utilities, logistics, and timeline. WorldPoint will help identify the location questions that need answers before you move forward.

Have your production requirements and target schedule ready? Start with the planning checklist.

Definition reference: U.S. Bureau of Economic Analysis. U.S. investment background: SelectUSA Investor Guide. Graphics are conceptual illustrations; project analysis is tailored to your requirements.

Scroll to Top