Foreign Companies to Expand Presence in U.S.

Plans are starting to formulate for international companies to locate some of their factories in the United States in order to avoid President Trump’s proposed import tax on goods coming into the country. While building and maintaining facilities in the U.S. tends to be much more expensive than other countries, some companies are weighing the cost of not doing as much business with the U.S. if they try to ship goods from abroad. Here are a few of the companies building facilities in the U.S.A. or heavily considering that approach.

LG, the South Korean-based electronics giant, recently announced they will build a $250M facility located near Clarksville, TN. The facility plans to open in 2019 and produce washing machines with the ability to expand the facility to produce other appliances.

Samsung, one of LG’s top competitors, has been heavily considering another U.S.-based plant. The company already has facilities in the country, but this new one would focus on home appliance manufacturing. No plans have been finalized, but it’s looking more and more likely to come to fruition in the next few years.

Although an American company, Hasbro has not located its Play-Doh factories in the United States for nearly 15 years, instead relying on factories in China and Turkey. Starting in 2018, Play-Doh will be produced in a Massachusetts-based factory.

Sonnen, a German-based battery company, is consolidating all of their U.S.-based departments in Atlanta, GA, to rapidly scale up their production as their U.S. market grows. The company designs battery systems that work with solar panel arrays to regulate energy consumption throughout your household.

NTK Precision Axle Corporation, a Japan-based auto parts company, plans to open a $100M facility in Anderson, IN, to produce, among other things, automobile axles in the Hoosier state. The state government plans to offer $1M in tax credits to encourage more jobs to be added by the company over the next few years.

Internationally based companies investing in housing operations in the U.S. signals a focus on reaching the most of their markets with the lowest sunk costs. Several American-based companies are further investing or reinvesting in domestic plants, including Intel opening a plant in Arizona that could hire upwards of 3,000 workers and Life Fitness. What industries do you think will reinvest in U.S.-based factories?

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