Foreign investment has become critical to job creation in the region, with state and local development officials expecting more companies from other countries to open or expand operations here.

Honda of America’s Ohio plants triggered much investment by Japan, the single largest foreign investor in the state and the area. But the Dayton-Springfield area’s rich manufacturing heritage and key location have also attracted companies from other countries, said Scott Koorndyk, executive vice president, economic development and operations for Dayton Development Coalition.

Moreover, local auto suppliers say Dayton and Springfield are good locations to serve multiple automakers in Ohio and surrounding states.

Foreign investment is “a huge piece of our work force,” Koorndyk said. “It’s really driven by our strength in manufacturing.”

The Dayton area has about 175 foreign-owned businesses from 21 countries with more than 28,000 jobs, Koorndyk said. Nearly 50 local Japanese-owned businesses employ approximately 12,000 people, according to data provided by the coalition.

Germany is the second largest local foreign investor by jobs and number of businesses in the region. France is third.

Honda is the state’s single largest foreign employer of 13,500 people, according to Ohio Department of Development research.

The highways in the Miami Valley provide easy access to Honda auto plants in Ohio, Indiana, Michigan and Kentucky, say local auto suppliers.

“The Midwest, either Ohio, Indiana or Kentucky, is well known for its character of being what they call the crossroads of America. It’s conveniently situated ... for the manufacturer centers in the U.S.,” said Mikio Nishizu, an attorney for Frost Brown Todd, whose clients are Japanese companies operating in the U.S. He also is secretary of Japan America Society of Greater Cincinnati.

Japanese parts suppliers often follow their major customers, Nishizu said.

“It’s dictated by these major companies telling them either you come to the U.S. and locate near us and provide the products, or we can go somewhere else,” he said.

Japanese investment in the area is increasing. Minster Machine Co. of Auglaize County said in March it was acquired by Nidec-Shimpo, a division of Japanese firm Nidec Corp. Motoman Robotics relocated from West Carrollton to Miamisburg and opened in 2011 a new $20 million facility. And Honda said in February it plans to invest $98 million in its Anna engine plant and create about 50 jobs.

Fukuvi USA is a Japanese-owned plastics manufacturer that opened in Huber Heights in 1997. Fukuvi first entered the U.S. market to supply Mitsubishi, but it chose its Huber Heights location mainly because of interstate access, the manufacturing industry cluster and the community.

Company president Kyozaburo Takagi said Dayton is a similar in size to its Japanese headquarters city.

Its parent company is the largest maker of plastic extrusion products in Japan. The company’s philosophy has been to partner with local companies here to grow, such as its line of Victory Bear building products developed in partnership with Miller-Valentine, said Takagi.

“We wanted to grow up as an American company,” Takagi said.

Fukuvi supplies the construction and electrical industries with plastic parts for window frames, television frames and building materials, for example, Takagi said.

Mark Kvamme, interim chief investment officer and president of JobsOhio, said Honda’s locating in Ohio was key to attracting more Japanese investment in the state. The state job creation agency is pursuing more opportunities in nine key industries internationally, targeting Japan, Germany and Israel, Kvamme said.

He sees more investment in Ohio by international companies, especially from industrialized nations looking to lower transportation and shipping costs and get closer to their customer markets.

“The cost of logistics is continuing to increase as a percent of the cost of the product,” he said. “We have great infrastructure and location capabilities to be partners with these countries.”

Staff Writer Tom Gnau contributed to this report. Contact this reporter at (513) 705-2551 or clevingston@coxohio.com.