Israeli companies are playing an important role in helping the U.S. economy grow, create quality high paying jobs and remain on the cutting edge of the global economy.
According to the U.S. Department of Commerce Select USA initiative, in 2010, U.S. subsidiaries of Israeli-owned firms employed 23,600 U.S. workers, with compensation for those employees totaling $1.8 billion, and U.S. affiliates of Israeli-owned firms also contributed $256 million to U.S. exports.
In 2011, when foreign direct investments (FDI) in the U.S. are measured by the country of where the entity that ultimately owns or controls the U.S. affiliate is located (i.e. where its global headquarters is located), Israel ranks as the 18th largest source of FDI at $26.8 billion; ahead of China, India, Denmark, Finland, Saudi Arabia, and the United Arabs Emirates.
Between 2007 and 2011 Israeli FDI stock grew nearly 84% from $14.5 billion to $26.8 billion for a five year total of $97.8 billion. Despite the recent global economic downturn, Israeli FDI in the U.S. increased each of the last five years which demonstrates Israel’s strong commitment and belief in the strength of the U.S. economy.
An independent 2010 study by Stax, Inc. surveyed Israeli-founded businesses in Massachusetts, revealing that Israeli entrepreneurship is a significant driver of the Massachusetts economy. The study found that there are nearly 100 companies with Israeli founders or Israeli-licensed technologies in Massachusetts.
According to Stax Inc., in 2009 the impact of these companies included:
– $2.4 billion in direct revenue generated in Massachusetts.
– $7.8 billion in total revenue generated in Massachusetts by these companies and the firms which service them, including real estate, legal, financial and other corporations.
– Nearly 6,000 Massachusetts-based employees work in these companies, mostly in knowledge-worker positions requiring high-level skills and experience.
– More than 21,000 employees in total work in these companies and the firms which service them in Massachusetts.
Examples of Israeli companies expanding, investing and creating good paying jobs in the U.S. can be found throughout the country and across industries.
In September, 2012 Elbit Systems of America, a subsidiary of Elbit Systems, invested into the city of Layton, Utah in the Aerospace sector. The company has opened a new field office in the area, located to better support the United States Air Force.
Also in September, 2012 Israel Aerospace Industries’ ELTA North America subsidiary officially opened its headquarters and manufacturing facility in Fulton, Maryland and plans to hire 100 employees by 2016.
In July, 2012, Teva Pharmaceuticals commenced construction on a new facility that will provide office space for 350 employees in Oakland Park, Kansas. Completion of the project is scheduled for the third quarter of 2013.
In June, 2012, it was announced that Sabra Dipping Co. would expand its facility in Virginia to establish a Center of Excellence research and development facility. Sabra Dipping Co. was formed in 2008 through a joint venture between PepsiCo and the Strauss Group, an Israeli based global food company. The combined investment will bring $28 million and 90 new jobs to Virginia. For more information, click here.
In 2011 Teva Pharmaceutical acquired Cephlon for $6.8 billion after agreeing to conditions aimed at preserving competition in the market for the sleep disorder medicine Provigil and two other drugs.
In November 2011, Israel-based Arkal Plastics Products announced plans to open a new auto parts manufacturing facility in Alabama. The $7.2 million investment is expected to create 25 jobs.
In 2009, NILIT Ltd., an Israeli manufacturer of nylon yarns, purchased Nylstar, a nylon manufacturer in the Martinsville, Virginia where it employs 195 people as NILIT America, Inc. For more information, see here and here.
In 2008, The U.S. subsidiary of Israel-based Raval ACS, announced plans to invest $7 million in a new design, development and manufacturing facility in Michigan. The project is expected to create 65 jobs at the company and an additional 169 spin-off jobs.
In 2006 Oran Safety Glass, which is Israel’s leading flat and curved glass processing company and supplies bullet-proof glass for U.S. military vehicles, announced that it would invest $4.1 million to open its first U.S. facility in Virginia, creating 50 new jobs. For more information, click here. Since 1980, Israel was among the top ten countries investing in Virginia having invested nearly $286 billion and creating nearly 3,200 jobs. For more information, click here.
– If you would like more information about the U.S.-Israel bilateral commercial relationship, please contact Mr. Robert Maron at The Commercial Mission of the Embassy of Israel. Mr. Maron can be reached at (202) 364-5695 or Robert.Maron@israeltrade.gov.il.
– If you would like to learn more about investing in Israel or partnering with an Israeli company, please contact Mr. Gil Sela at The Commercial Mission of the Embassy of Israel. Mr. Sela can be reached at (202) 364-5695, Gil.Sela@israeltrade.gov.il, or fill out the form at the following website: http://itrade.gov.il/us-dc/contact/.
– For information about the Israel Commercial Mission, Embassy of Israel Washington, DC and the Israeli Foreign Trade Administration at the Ministry of Industry, Trade and Labor, please visit the following website: http://itrade.gov.il/us-dc/sample-page/.
– Statistics on bilateral trade in goods and agricultural products: http://dataweb.usitc.gov/
– Statistics on bilateral direct investment: http://www.bea.gov/international/direct_investment_multinational_companies_comprehensive_data.htm
– Information on U.S. FDI measures: http://www.bea.gov/faq/index.cfm?faq_id=1008&searchQuery=&start=0&cat_id=0
– Statistics on bilateral trade in services: http://www.bea.gov/international/direct_investment_multinational_companies_comprehensive_data.htm
– Information on U.S.-Israel Economic Cooperation can be found on the Jewish Virtual Library: http://www.jewishvirtuallibrary.org/jsource/US-Israel/econtoc.html