Alongside traffic and coffee, news radio is a staple of my morning commute. As I flip through the stations, I’ll sometimes hear a pundit lament that
Nothing is made in America anymore.
In reality, there are nearly 13 million manufacturing workers in the United States, including thousands in North Carolina. Some of these folks are employed by U.S.-based firms. Many others work for companies headquartered abroad.
These international companies employ more than 260,000 North Carolinians. That includes 119,500 employees in manufacturing jobs -or nearly 46 percent of all North Carolina jobs created by international companies.
According to the latest government data, the number of North Carolina jobs created by international companies jumped by 28 percent over the past five years. For comparison, the number of private-sector jobs overall in North Carolina increased by 13 percent.
North Carolina isn’t an anomaly. International companies created 62 percent of new manufacturing jobs in the United States over the past five years, according to the latest available government data. More than 960 different international companies employ North Carolina workers. Many of them are household names, including BP, DHL, and IKEA.
International firms pay better. Americans who work for global companies earn 26 percent more compensation than the average worker in the same geographic area, according to a new analysis from the National Bureau of Economic Research.
International companies benefit all workers, not just the ones they employ directly. When an international firm sets up a manufacturing plant and creates 1,000 new jobs in America, workers in that geographic area at domestic firms experience a collective $16 million boost in wages. So for every local job that an international firm creates, the wage pool for employees in the area increases to the tune of 16,000 annually.
International companies also benefit U.S. small businesses. Over the past decade and a half, international companies increased the amount of business they do with U.S. suppliers by nearly 30 percent -jumping from 1.5 trillion to 2.4 trillion, after adjusting for inflation.
In the manufacturing sector, business between international companies and domestic suppliers rose by nearly 70 during that same period. That is more than 14 times greater than the overall growth rate achieved by all U.S. businesses.
As we celebrate local manufacturers statewide, let’s recognize how international companies catalyze local economic growth -giving a whole new meaning to
made in North Carolina.