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Available this release:  Full Release: PDF (229 kb),  Tables: XLS (148 kb)
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Ray Mataloni: (202) 606-9867 BEA 05-15
Summary Estimates for Multinational Companies:
Employment, Sales, and Capital Expenditures for 2003
U.S. multinational companies (MNCs) employed 30.1 million workers worldwide
in 2003, of which 21.8 million were employed in the United States by U.S. parent
companies and 8.4 million were employed abroad by majority-owned foreign affiliates.
The employment of U.S. parents accounted for about one-fifth of total U.S. employment
in private industries. Capital expenditures by U.S. MNCs totaled $435.7 billion; U.S.
parents accounted for $319.3 billion and majority-owned foreign affiliates accounted for
$116.4 billion. Sales by U.S. parent companies totaled $6,614.3 billion, and those by
majority-owned foreign affiliates totaled $2,948.5 billion.
Majority-owned U.S. affiliates of foreign MNCs employed 5.2 million workers in
2003, accounting for 5 percent of total U.S. employment in private industries. Capital
expenditures by these affiliates totaled $109.0 billion and their sales totaled $2,130.7
billion.
For both U.S. MNCs and the majority-owned U.S. affiliates of foreign MNCs,
employment decreased for the third consecutive year in 2003. Employment by U.S.
MNCs decreased 1.2 percent in 2003, following a 1.9-percent decrease in 2002 and a 3.0-
percent decrease in 2001. U.S. parent companies more than accounted for the decreases
in all three years; their employment decreased 2.1 percent in 2003, following a 3.0-
percent decrease in 2002 and a 4.1-percent decrease in 2001. Employment by
majority-owned foreign affiliates of U.S. MNCs increased 1.2 percent in 2003, following
a 1.0-percent increase in 2002 and a 0.1-percent increase in 2001. Employment by
majority-owned U.S. affiliates of foreign MNCs decreased 3.5 percent in 2003, following
a 3.0-percent decrease in 2002 and a 1.1-percent decrease in 2001. During the same
period, total U.S. employment in private industries decreased 0.4 percent in 2003,
following decreases of 1.3 percent in 2002 and 0.4 percent in 2001.
Note: This news release is available on BEA's Web site at www.bea.gov/newsreleases/rels.htm.
Capital expenditures of U.S. MNCs and majority-owned U.S. affiliates also
decreased in 2003: Those of U.S. MNCs decreased 2.1 percent (following a 16.5-percent
decrease in 2002) and those of majority-owned U.S. affiliates decreased 2.1 percent
(following an 8.5-percent decrease in 2002). For U.S. MNCs, the decrease in capital
spending in 2003 was more than accounted for by a 4.4-percent decrease in spending by
U.S. parent companies; capital expenditures by majority-owned foreign affiliates of U.S.
MNCs increased 4.8 percent. Sales by both U.S. MNCs and majority-owned U.S.
affiliates increased in 2003, following decreases in 2002.
U.S. parent companies accounted for 72 percent of the worldwide employment of
U.S. MNCs in 2003, compared to shares of 73 percent in 2002 and 74 percent in 2001.
The U.S.-parent share of the worldwide capital expenditures of U.S. MNCs in 2003 was
73 percent, compared to shares of 75 percent in 2002 and 79 percent in 2001. The U.S.-
parent share of MNC activity can change for a number of reasons, and the changes do not
uniformly correspond to either additions to, or subtractions from, employment and capital
expenditures in the United States. Examples of factors that might be associated with a
change in the parent and affiliate shares of MNC activity include different rates of
economic growth in the United States and in specific markets where investment is
occurring abroad, the creation of new market opportunities abroad that cannot be served
by exports from the United States, and changes in the foreign-currency value of the U.S.
dollar. Additional discussion of data and analytical considerations may be found in an
article published in the March 2004 issue of the Survey of Current Business.
Revisions.--The MNC estimates for 2002 presented in this release supercede
preliminary estimates that were released in the summer of 2004. For U.S. parent
companies, the estimates of employment were revised down 0.9 percent, the estimates of
capital expenditures were revised down 2.1 percent, and the estimates of sales were
revised down 1.1 percent. For majority-owned foreign affiliates, the estimates of
employment were revised up 1.0 percent, the estimates of capital expenditures were
revised down 1.8 percent, and the estimates of sales were revised down 0.9 percent. For
majority-owned U.S. affiliates of foreign MNCs, the estimates of employment were
revised up 0.1 percent, the estimates of capital expenditures were revised down 0.4
percent, and the estimates of sales were revised down 0.6 percent.
* * *
Advance MNC Estimates
For the second consecutive year, the Bureau of Economic Analysis is releasing advance
summary estimates of employment, sales, and capital expenditures by U.S. parent
companies, by their foreign affiliates, and by U.S. affiliates of foreign MNCs. Estimates
based on more complete source data, including country and industry detail, will be
released later this year.
* * *
TECHNICAL NOTE
The estimates presented in this release were constructed from data collected by
BEA in two distinct surveys of MNC operations: (1) a survey of U.S. MNCs that covers
the operations of both U.S. parent companies and their foreign affiliates, and (2) a survey
of the operations of U.S. affiliates of foreign MNCs. Because a U.S. parent company
may itself be foreign-owned, there is some duplication between the data on U.S. parent
companies and on U.S. affiliates; thus, to avoid duplication, data on U.S. parents and U.S.
affiliates should not be added together to produce U.S. totals.
The estimates presented here pertain to nonbank U.S. parent companies and their
majority-owned nonbank foreign affiliates, and to majority-owned nonbank U.S.
affiliates of foreign MNCs. Data on all nonbank U.S. and foreign affiliates, including
affiliates that are not majority-owned, will be presented in the Survey of Current Business
later this year. The most recent data show that nonbank foreign affiliates that were not
majority-owned employed 1.5 million workers, and nonbank U.S. affiliates that were not
majority-owned employed 0.5 million workers, in 2002. Data on banks are collected
only in benchmark years. The most recent data on U.S. parents and foreign affiliates in
banking were presented in U.S. Direct Investment Abroad: Final Results from the 1999
Benchmark Survey. These data show that U.S. bank parents employed 1.0 million
workers, and that bank and nonbank foreign affiliates of U.S. bank parents, plus bank
affiliates of U.S. nonbank parents, together employed 0.2 million workers in 1999. The
most recent data on U.S. affiliates in banking were presented in Foreign Direct
Investment in the United States: Preliminary Results from the 2002 Benchmark Survey.
These data show that U.S. affiliates that were banks employed 0.1 million workers in
2002. Final results from the 2002 benchmark survey of foreign direct investment in the
United States are scheduled to be released later this year. For both U.S. bank affiliates of
foreign companies and foreign bank affiliates of U.S. companies, almost all of the
employment was by majority-owned affiliates.
In addition to presenting data collected directly in its surveys of MNC operations,
BEA uses data collected on costs incurred and profits earned in production to estimate the
value added of U.S. parent companies, of majority-owned foreign affiliates, and of
majority-owned U.S. affiliates of foreign companies. Value added estimates indicate the
contribution of parents or affiliates to gross domestic product in the United States or in
foreign host countries. The latest estimates of the value added of U.S. parent companies
and majority-owned foreign affiliates, which cover the year 2002, are presented in "U.S.
Multinational Companies: Operations in 2002," in the July 2004 issue of the Survey of
Current Business. The latest estimates of the value added of majority-owned U.S.
affiliates of foreign companies, which also cover 2002, are presented in "Operations of
U.S. Affiliates of Foreign Companies: Preliminary Results from the 2002 Benchmark
Survey," in the August 2004 issue of the Survey.
* * *
BEA's national, regional, international, and industry estimates, the Survey
of Current Business, and BEA news releases are available on BEA's Web site at
www.bea.gov. By visiting the site, you can also subscribe to receive free e-mail
summaries of BEA releases and announcements.
Summary BEA estimates are available on recorded messages at the time of public
release at the following telephone numbers:
(202) 606-5306 Gross domestic product
(202) 606-5303 Personal income and outlays
(202) 606-5362 U.S. international transactions
* * *
Table 1. Employment, Capital Expenditures, and Sales by Nonbank U.S. Multinational Companies, 1988-2003
---------------------------------------------------------------------------------------------------------
Thousands of employees Millions of dollars
----------------------------------- ----------------------------------------------------------
Capital expenditures/1/ Sales/2/
U.S. U.S. Majority- ------------------------------------ --------------------
multinational parents owned U.S. U.S. Majority- U.S. Majority-
companies foreign multinational parents owned parents owned
affiliates companies foreign foreign
affiliates affiliates
1988 ...... 22,498.1 17,737.6 4,760.5 223,814 177,203 46,611 2,828,209 927,886
1989 ...... 23,879.4 18,765.4 5,114.0 260,488 201,808 58,680 3,136,837 1,019,966
1990 ...... 23,785.7 18,429.7 5,356.0 274,614 213,079 61,535 3,243,721 1,208,349
1991 ...... 23,345.4 17,958.9 5,386.5 269,221 206,290 62,931 3,252,534 1,242,635
1992 ...... 22,812.0 17,529.6 5,282.4 272,049 208,834 63,215 3,330,886 1,291,649
1993 ...... 22,760.2 17,536.9 5,223.3 271,661 207,437 64,224 3,480,778 1,275,775
1994 ...... 24,272.5 18,565.4 5,707.1 303,364 231,917 71,447 3,990,013 1,435,901
1995 ...... 24,499.7 18,576.2 5,923.5 323,616 248,017 75,599 4,235,578 1,693,836
1996 ...... 24,867.0 18,790.0 6,077.0 340,510 260,048 80,462 4,478,970 1,868,588
1997 ...... 26,358.0 19,878.0 6,480.0 398,037 309,247 88,790 4,886,330 1,972,515
1998 ...... 26,592.9 19,819.8 6,773.1 411,155 317,184 93,971 4,970,138 1,971,909
1999/3/ ... 30,772.6 23,006.8 7,765.8 483,032 369,728 113,304 5,975,478 2,218,945
2000 ...... 32,056.6 23,885.2 8,171.4 506,950 396,313 110,637 6,695,166 2,507,433
2001 ...... 31,087.9 22,907.0 8,180.9 533,325 422,303 111,022 6,786,610 2,614,080
2002/4/ ... 30,486.1 22,221.8 8,264.3 445,204 334,093 111,111 6,358,984 2,526,620
2003/5/ ... 30,129.7 21,765.8 8,363.9 435,711 319,318 116,393 6,614,315 2,948,543
Percent change at
annual rates:
1988-2000 .. 3.0 2.5 4.6 7.1 6.9 7.5 7.4 8.6
2000-2001 .. -3.0 -4.1 0.1 5.2 6.6 0.3 1.4 4.3
2001-2002 .. -1.9 -3.0 1.0 -16.5 -20.9 0.1 -6.3 -3.3
2002-2003 .. -1.2 -2.1 1.2 -2.1 -4.4 4.8 4.0 16.7
---------------------------------------------------------------------------------------------------------------
1. Total expenditures for property, plant, and equipment.
2. An MNC-wide total for sales is not provided because transactions among and within MNCs
would be duplicated.
3. Break-in-series. (See the technical note on page 121 of the December 2002 issue of the Survey of
Current Business for details.)
4. These estimates update those published in the July 2004 issue of the Survey of Current Business.
(Those estimates, in turn, updated the advance summary estimates released on April 16, 2004.) Revised
estimates based on more complete source data are scheduled to be released later this year.
5. Advance estimates. Preliminary estimates based on more complete source data are
scheduled to be released later this year.
NOTE: The data presented in this table cover nonbank U.S. MNCs only. Bank parents and
affiliates are not required to report in BEA's annual surveys of the operations of U.S. MNCs.
Some limited data on the operations of bank parents and affiliates (including employment and sales)
are reported in benchmark surveys of U.S. direct investment abroad conducted by BEA every five years.
The latest benchmark survey results cover the year 1999.
The first year of a consistent annual time series of data on the operations of both U.S. MNCs and
majority-owned U.S. affiliates of foreign MNCs is 1988; prior to that year, annual data on
majority-owned U.S. affiliates was unavailable.
Table 2. U.S.-Parent Share of Selected Measures of the Operations
of Nonbank U.S. Multinational Companies
[Percent]
--------------------------------------------------------------
Employment Capital
expenditures
--------------------------------------------------------------
1988 ............ 78.8 79.2
1989 ............ 78.6 77.5
1990 ............ 77.5 77.6
1991 ............ 76.9 76.6
1992 ............ 76.8 76.8
1993 ............ 77.1 76.4
1994 ............ 76.5 76.4
1995 ............ 75.8 76.6
1996 ............ 75.6 76.4
1997 ............ 75.4 77.7
1998 ............ 74.5 77.1
1999 ............ 74.8 76.5
2000 ............ 74.5 78.2
2001 ............ 73.7 79.2
2002/1/ ......... 72.9 75.0
2003/2/ ......... 72.2 73.3
--------------------------------------------
1. These estimates update those published in the July 2004 issue of
the Survey of Current Business. (Those estimates, in turn, updated
the advance summary estimates released on April 16, 2004.)
Revised estimates based on more complete source data are
scheduled to be released later this year.
2. Advance estimates. Preliminary estimates based on more complete
source data are scheduled to be released later this year.
Table 3. Employment, Capital Expenditures, and Sales by Majority-Owned
Nonbank U.S. Affiliates of Foreign Companies, 1988-2003
----------------------------------------------------------------------------
Thousands Millions of dollars
of -------------------------------------
employees Capital Sales
Expenditures/1/
-----------------------------------------------------------------------------
1988 ....................... 3,119.0 42,355 739,128
1989 ....................... 3,573.4 51,490 863,538
1990 ....................... 3,841.7 61,812 995,013
1991 ....................... 3,991.3 60,097 1,008,388
1992 ....................... 3,903.9 52,787 1,049,942
1993 ....................... 3,851.7 53,371 1,112,693
1994 ....................... 3,954.0 60,317 1,210,837
1995 ....................... 4,022.6 64,778 1,311,210
1996 ....................... 4,155.6 77,890 1,423,715
1997 ....................... 4,269.1 88,313 1,478,221
1998 ....................... 4,669.5 109,365 1,622,946
1999 ....................... 5,064.3 114,767 1,792,520
2000 ....................... 5,656.5 112,986 2,051,878
2001 ....................... 5,594.3 121,665 2,070,234
2002/2/ .................... 5,425.4 111,373 2,030,962
2003/3/ .................... 5,234.6 109,016 2,130,716
Percent change at
annual rates:
1988-2000 .................. 5.1 8.5 8.9
2000-2001 .................. -1.1 7.7 0.9
2001-2002 .................. -3.0 -8.5 -1.9
2002-2003 .................. -3.5 -2.1 4.9
---------------------------------------------------------------------------
1. Total expenditures for property, plant, and equipment.
2. These estimates update those published in the August 2004 issue of the Survey of Current Business.
(Those estimates, in turn, updated the advance summary estimates released on April 16, 2004.) Final
estimates for 2002 are scheduled to be released later this year.
3. Advance estimates. Preliminary estimates based on more complete source data are scheduled to
be released later this year.
NOTES: The data presented in this table cover nonbank affiliates only. Bank affiliates
are not required to report in BEA's annual surveys of the operations of U.S. affiliates of
foreign companies. Some limited data on the operations of bank affiliates (including
employment and sales) are reported in benchmark surveys conducted by BEA every five years.
Selected data on bank affiliates from the 2002 benchmark survey were published in the August 2004
issue of the Survey of Current Business.
In contrast to the presentation in Table 1 for U.S. multinational companies (which includes
data for U.S. parent companies), this table does not include data on foreign parent companies
or totals for foreign multinational companies, because they are not covered in BEA's surveys.
The first year of a consistent annual time series of data on the operations of both U.S. MNCs and
majority-owned U.S. affiliates of foreign MNCs is 1988; prior to that year, annual data on
majority-owned U.S. affiliates was unavailable.
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