Foreign direct investment has always been integral to economic growth in the United States. We’ve seen foreign companies bring not just capital but innovation, opportunity, and good jobs to our local communities and industries across the country.
As global competition continues to intensify, it’s imperative that we continue to attract and sustain this kind of investment. Foreign-owned firms employ nearly 8 million Americans, and foreign countries have invested more than $5 trillion in American companies.
My old congressional district in Pennsylvania’s Lehigh Valley embraced foreign investment, and in my time in the state legislature and Congress, I had a front-row seat to the tangible benefits in action. Two great examples in the medical technology sector are Olympus, the Japanese optical and digital precision technology manufacturer, and B. Braun, the German medical device and pharmaceutical company. Both companies established their American headquarters in the Lehigh Valley within a few miles of each other and are some of the largest employers in the region.
Pennsylvania is deeply integrated with foreign direct investment and has been for decades. Mack Trucks, for example, is now part of the Swedish company Volvo. Mack’s Pennsylvania assembly plant employs about 2,400 people, reinforcing the state’s legacy as a hub for heavy-duty vehicle manufacturing.
Then there’s Bosch Rexroth, a subsidiary of the German multinational Bosch, which has been operating in Bethlehem, Pennsylvania, for decades and provides hundreds of jobs advancing automation and energy-efficient technologies.
And thanks to Lafarge, Heidelberg Cement, Buzzi Unicem, and F.L. Smidth, all of which are owned by European-based companies, the Lehigh Valley is one of the largest producers of cement in the country. Those who do not understand the significant ties our state has to foreign direct investment clearly do not understand Pennsylvania at all.
The success stories expand beyond Pennsylvania. In South Carolina, German car manufacturer BMW employs more than 11,000 people at their Spartanburg Group Plant, contributing more than $26.7 billion to the state’s economy every year. Tenaris, the Luxembourg-owned steel pipe producer, opened its first U.S.-based greenfield project in Bay City, Texas, in 2013. Since then, Tenaris has employed nearly 1,000 employees on-site and has invested more than $3.5 million into the surrounding community.
Even national American chains such as 7-Eleven and Burger King are products of foreign direct investment. These companies are integrating our communities into global supply chains and boosting our local economies while doing so. It’s a win for all involved.
The next great foreign direct investment success story could be Nippon Steel and U.S. Steel. While U.S. Steel has struggled in recent years with fluctuating demand, rising costs, and tough competition, Nippon Steel, a global powerhouse in the steel industry, brings the promise of fresh capital, steady jobs, and cutting-edge technology that can reinvigorate a declining operation. A recent economic impact analysis shows the deal would generate a nearly $1 billion economic impact in Pennsylvania, bringing in more than $38 million in taxes and creating more than 5,000 jobs across the state.
This deal represents more than just an acquisition; it’s an opportunity to reinforce steelmaking as a key pillar of both the regional economy and the U.S. manufacturing sector. With foreign direct investment playing a crucial role in strengthening Pennsylvania’s industrial base, this partnership could exemplify the positive impact of global investment on local communities.
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I witnessed firsthand the consequences of missing critical opportunities such as this when Bethlehem Steel, the company my father worked for, went bankrupt and shut down in 2003. Negotiations between British Steel, which wanted to support the continuation of the Bethlehem Steel facility, and the United Steel Workers union failed, kickstarting the company’s fall. Turning their backs on foreign investment cost this industry thousands of jobs and devastated the local community.
To overlook the tremendous benefits foreign direct investment has brought to Pennsylvania and throughout the country would be malpractice. The proposed Nippon Steel and U.S. Steel deal represents a critical moment for both Pennsylvania and the American manufacturing sector, one that is essential to safeguarding thousands of jobs, protecting our local economies, and maintaining our competitive edge in the global marketplace. We ought to recognize foreign investment for what it truly is — a vital lifeline for our economy.
Charlie Dent served as a U.S. representative for Pennsylvania from 2005 to 2018.