Summary Estimates for Multinational Companies, 2011

Summary Estimates for Multinational Companies:
Employment, Sales, and Capital Expenditures for 2011

The pursuing are 2011 beforehand and 2010 revised summary estimates of nan employment, superior expenditures, and income activity of U.S. multinational companies (comprising some their U.S. and overseas operations) and nan corresponding activity of overseas multinational companies successful nan United States. Preliminary 2011 and revised 2010 statistic based connected much complete root information and including state and manufacture item will beryllium released later this year.1

U.S. multinational companies: U.S. and overseas operations

Worldwide employment by U.S. multinational companies (MNCs) accrued 1.5 percent successful 2011 to 34.5 cardinal workers, pinch nan summation chiefly reflecting increases abroad. In nan United States, employment by U.S. genitor companies accrued 0.1 percent to 22.9 cardinal workers, compared pinch a 1.8 percent summation successful full private-industry employment successful nan United States.2 The full employment by U.S. parents accounted for astir one-fifth of full U.S. employment successful backstage industries. Abroad, employment by majority-owned overseas affiliates of U.S. MNCs accrued 4.4 percent to 11.7 cardinal workers.

Worldwide superior expenditures by U.S. MNCs accrued 16.7 percent successful 2011 to $706 billion. Capital expenditures successful nan United States by U.S. genitor companies accrued 17.1 percent to $514 billion. Capital expenditures overseas by their majority-owned overseas affiliates accrued 15.4 percent to $192 billion. As shown successful array 1, superior expenditures person varied wide successful caller years.

Sales by U.S. genitor companies accrued 9.4 percent successful 2011 to $10,696 billion. Sales by their majority-owned overseas affiliates accrued 15.8 percent to $5,985 billion.3

Because nan maturation successful employment of U.S. genitor companies was not arsenic beardown arsenic nan maturation successful employment of majority-owned overseas affiliates, nan U.S. genitor stock of worldwide employment of U.S. MNCs fell astir 1 percent constituent successful 2011 to 66 percent (table 2 and floor plan 1). The U.S.-parent stock of worldwide superior expenditures of U.S. MNCs successful 2011 was 73 percent, a stock that was small changed from 2010.

Changes successful nan stock of MNC activity astatine nan U.S. genitor do not needfully bespeak accumulation shifting betwixt U.S. parents and their overseas affiliates. Other factors that whitethorn beryllium associated pinch changes successful nan stock see different rates of economical maturation successful nan United States and successful circumstantial markets wherever finance is occurring abroad, aliases nan creation of caller marketplace opportunities overseas that cannot beryllium served by exports from nan United States. These issues are discussed successful yearly articles connected U.S. MNC operations successful nan Survey of Current Business.4

1 2010 preliminary statistics pinch state and manufacture item are disposable connected BEAs Web site.
2 Statistics for full U.S private-industry employment are from BEAs nationalist income and merchandise accounts, array 6.4D: Full-Time and Part-Time Employees by Industry (see /iTable/index_nipa.cfm).
3 An MNC-wide full for income is not provided because it would incorporate plagiarism resulting from transactions among and wrong MNCs.
4 See U.S. Multinational Companies: Operations of U.S. Parents and Their Foreign Affiliates successful 2010 successful nan November 2012 rumor of nan Survey. Additional chat of information and analytical considerations whitethorn beryllium recovered successful A Note connected Patterns of Production and Employment by U.S. Multinational Companies, successful nan March 2004 rumor of nan Survey.

Foreign multinational companies: U.S. operations

Employment successful nan United States by majority-owned U.S. affiliates of overseas MNCs roseate 3.3 percent, to 5.6 cardinal workers, successful 2011, a complaint of summation higher than nan 1.8 percent summation successful full U.S. private-industry employment successful 2011. U.S. affiliates accounted for 5.0 percent of U.S. private-industry employment successful 2011, one-tenth of a percent constituent higher than successful 2010.

Capital expenditures by U.S. affiliates roseate 12.3 percent successful 2011 to $173 billion. Sales by U.S. affiliates roseate 11.9 percent successful 2011 to $3,491 billion.

Changes successful nan measures of activity of majority-owned U.S. affiliates of overseas companies whitethorn bespeak a assortment of factors, including changes successful nan operations of existing affiliates arsenic good arsenic entries to and exits from nan beingness of majority-owned U.S. affiliates.  For example, nan summation successful employment was owed successful portion to acquisitions made by existing U.S. affiliates and nan introduction of caller majority-owned affiliates.

Revisions

The MNC statistic for 2010 presented successful this merchandise supersede preliminary statistic that were released successful nan 2nd half of 2012. For U.S. genitor companies, nan levels shown successful array 1 for 2010 correspond upward revisions of 0.1 percent for employment, 0.2 percent for superior expenditures, and little than 0.1 percent for sales. For majority-owned overseas affiliates, nan levels shown correspond an upward revision of 0.9 percent for employment, a downward revision of little than 0.1 percent for superior expenditures, and an upward revision of little than 0.1 percent for sales. For majority-owned U.S. affiliates of overseas MNCs, nan levels shown successful array 3 for 2010 correspond upward revisions of 3.1 percent for employment, 3.4 percent for superior expenditures, and 1.1 percent for sales.

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TECHNICAL NOTE

Each year, nan Bureau of Economic Analysis releases beforehand summary statistic of employment, sales, and superior expenditures by U.S. genitor companies, by their overseas affiliates, and by U.S. affiliates of overseas MNCs. Statistics based connected much complete root data, including state and manufacture detail, will beryllium released later this year.

The statistic presented successful this merchandise were constructed from information collected by BEA successful 2 chopped surveys of MNC operations: (1) a study of U.S. MNCs that covers nan operations of some U.S. genitor companies and their overseas affiliates, and (2) a study of nan operations of U.S. affiliates of overseas MNCs.

A U.S. genitor institution whitethorn itself beryllium foreign-owned, truthful location is immoderate overlap betwixt nan information connected U.S. genitor companies and connected U.S. affiliates; thus, to debar duplication, information connected U.S. parents and U.S. affiliates should not beryllium added together to nutrient U.S. totals.

The statistic presented present pertain to U.S. genitor companies and their majority-owned overseas affiliates, and to majority-owned U.S. affiliates of overseas MNCs. Statistics connected each U.S. and overseas affiliates, including affiliates that are not mostly owned, will beryllium released by BEA later this year. In these series, affiliates are defined arsenic businesses successful which an investor of different state holds astatine slightest 10-percent voting ownership. For 2010, overseas affiliates that were not majority-owned employed 2.2 cardinal workers, and U.S. affiliates that were not majority-owned employed 0.5 cardinal workers.

For some U.S. MNCs and U.S. affiliates of overseas MNCs, employment covers nan full number of full-time and part-time labor connected nan payroll astatine nan extremity of nan year. Sales screen gross income minus returns, allowances and discounts, aliases gross operating revenues. Capital expenditures screen full expenditures connected property, plant, and instrumentality (that is, expenditures for onshore and depreciable structures and equipment); they are gross of immoderate sales, retirements, aliases transfers of antecedently owned tangible assets. Capital expenditures see spending for instrumentality that is leased aliases rented to others, which successful immoderate industriessuch arsenic automotive instrumentality rental and leasingcan beryllium very large. The worth of sales, retirements, aliases transfers successful these industries tin beryllium very large.

In summation to presenting information collected straight successful its surveys of MNC operations, BEA uses information collected connected costs incurred and profits earned successful accumulation to estimate nan worth added of U.S. genitor companies, of majority-owned overseas affiliates, and of majority-owned U.S. affiliates of overseas companies. Value added, which is not discussed successful this release, is an important measurement of MNC activity that indicates nan publication of parents aliases affiliates to gross home merchandise successful nan United States aliases successful overseas big countries. The latest statistic for nan worth added are for 2010 and are disposable connected BEAs website astatine /iTable/index_MNC.cfm.

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