You have reached your limit of free articles this month.

Enjoy unlimited access to SpringfieldNewsSun.com

Starting at just 99¢ for 8 weeks.

GREAT REASONS TO SUBSCRIBE TODAY!

  • IN-DEPTH REPORTING
  • INTERACTIVE STORYTELLING
  • NEW TOPICS & COVERAGE
  • ePAPER
X

You have read of premium articles.

Get unlimited access to all of our breaking news, in-depth coverage and interactive features. Starting at just 99c for 8 weeks.

X

Welcome to SpringfieldNewsSun.com

Your source for Clark and Champaign counties’ hometown news. All readers have free access to a limited number of stories every month.

If you are a News-Sun subscriber, please take a moment to login for unlimited access.

breaking news

West Liberty shooting victim has shotgun pellet in his heart

Foreign firms fuel region’s job growth


Foreign-owned businesses are a “significant force” for employment in the Dayton region, representing more than 20,000 area jobs, according to a U.S. economy report released today.

The Dayton-Springfield metropolitan area ranks 53rd out of the top 100 largest in the U.S. for the total number of jobs in foreign-owned companies. However, the region has the nation’s 17th highest share of workers employed by foreign-owned companies at 6.4 percent, relative to the size of the local economy.

Foreign-direct investment into the U.S. is heavily directed toward manufacturing, which benefits the Dayton region, said Kenan Fikri, a Brookings Institution research analyst who co-authored the report on foreign investment.

Nationally, foreign-direct investment supports 2.2 million manufacturing workers, or nearly one-fifth of all manufacturing jobs in the country, the report said.

“You see Dayton emerging from the pack because of its orientation on manufacturing,” Fikri said.

The number of jobs at foreign-owned businesses in the Dayton region increased from 10,500 in 1991 to 20,070 in 2011. The region’s employment share increased over that period from 3.2 percent to 6.4 percent, which is ahead of the national average of 5 percent.

“In two decades of rapid globalization, Dayton was essentially on the map and it doubled its share, and it did that better than the national economy,” Fikri said.

Foreign-direct investment occurs when a foreign company invests in a U.S. business either by opening a new operation, or through a merger or acquisition. That investment plugs metros into the global economy and provides an infusion of capital that was outside the region or U.S., Fikri said.

The U.S. operations of foreign firms account for only 5 percent of total private sector employment, but represent 12 percent of the nation’s productivity growth, 15.2 percent of capital investment, 18.9 percent of corporate research and development, and 20.3 percent of goods exports, the report said.

Dayton Development Coalition officials are “encouraged” by the report, said Dave Burrows, vice president of development.

Burrows noted the report’s data only extends to 2011 and doesn’t include more recent examples of foreign-direct investment into the region, such as Chinese automotive glass manufacturer Fuyao’s $15 million purchase last month of a portion of the former General Motors Assembly plant in Moraine. Fuyao expects to employ about 800 people at the plant.

“We feel that in the next reporting cycle it will be even more positive,” Burrows said.

Auto parts production is the region’s leading jobs sector for foreign-owned companies, employing 4,000 area workers, or 19.8 percent of total foreign-owned business employment, in 2011, the report said.

German-owned MAHLE Behr Dayton, which makes heating ventilation and air-conditioning products and parts for automotive customers, employs 1,100 local workers and does about $650 million in annual business, said Rob Baker, manager of the plant at 1600 Webster Street.

Behr, a German company that purchased the facility in 2002 from Chrysler Corp., invests an average of $10 million annually into the plant, Baker said. Last year, German firm MAHLE GmbH took a majority ownership stake in Behr and has an option to purchase the Dayton facility, he said.

Mergers and acquisitions is the primary factor behind U.S. job growth in foreign-owned companies since 1991, the Brookings report said. However, 36 percent of 2011 jobs in foreign-owned businesses in the Dayton region came from new operations, compared to the national average of 26 percent.

“Dayton has actually seen more and larger openings than many other metropolitan areas,” Fikri said.

The Brookings report said England — home to defense and aerospace company BAE Systems, and LexisNexis parent company Reed Elsevier — is the top source country for foreign-owned business employment in the region, followed by Japan, Germany, France and the Netherlands.


Reader Comments ...


Next Up in News

West Liberty staff who stopped alleged school shooter among ‘heroes’
West Liberty staff who stopped alleged school shooter among ‘heroes’

The staff members who stopped the alleged shooter at West Liberty Salem High School last week before he might have harmed more students were identified Tuesday. Middle/High School Principal Greg Johnson and K-12 Assistant Principal Andy McGill were on top of Serna when Champaign County deputies arrived. “Everybody on that day was a hero in some...
West Liberty shooting victim has shotgun pellet in his heart
West Liberty shooting victim has shotgun pellet in his heart

Logan Cole, the victim of shooting at West Liberty-Salem High School last week, has a shotgun pellet lodged in his heart that might require surgery, his father said. RELATED: Classes resume at West Liberty with message from shooting victim “The awesome news is that it is on the right side,” his father Ryan Cole said in a Facebook post Tuesday...
Florida deputy accused of trying to kill elderly woman, sell her dog
Florida deputy accused of trying to kill elderly woman, sell her dog

A Florida deputy is accused of attempting to kill an elderly woman he had been defrauding, according to the Miami Herald. Deputy Frankie Eugene Bybee, 46, had befriended the 79-year-old woman in October after responding to a service call. The Herald reported that things got dicey when Bybee resold the woman's dog, named JJ, on Craigslist after...
Kansas man chooses jail over wife, robbing a bank to get away from her
Kansas man chooses jail over wife, robbing a bank to get away from her

A Kansas man has pleaded guilty to robbing a Kansas City bank last fall, in a strange case that has left authorities scratching their heads. Lawrence John Ripple, 70, told investigators that he robbed the bank, which is just a block away from police headquarters, after an argument with his wife because he “no longer wanted to be in that situation...
‘La La Land’ ties record number of Oscar nods with 14
‘La La Land’ ties record number of Oscar nods with 14

The romantic musical comedy “La La Land” has danced its way into film history, earning 14 Academy Award nominations Tuesday, tying the movies “All About Eve” and “Titanic” for the most nominations ever. The fantasy film was nominated for Best Picture and “La La Land’s” writer and director Damien...
More Stories