Report Finds Foreign Investment in NH Spread Across the State

Plymouth State University Economics Professor Chen Wu, left, and Professor of Management, Roxana Wright, present key findings from at the fifth annual Foreign Direct Investment (FDI) Forum. Photo: Scott Merrill

In 2022, nearly 180 foreign companies headquartered in 23 foreign countries had over 360 subsidiaries operating in each of the 10 counties in NH, across 50 industries. The plurality of foreign-owned subsidiaries (28%) is in the finance and insurance industry. While about 75% of these companies are operating in the state’s most populous counties in the south, Hillsborough and Rockingham, There is potential for growth in foreign manufacturing investment in the North Country.

Those were among the findings discussed by business leaders and academics who gathered at Plymouth State University (PSU) on Feb. 16 for the fifth annual Foreign Direct Investment (FDI) Forum. The forum explored a report on FDI in NH. The event was a partnership between PSU, the NH Department of Business and Economic Affairs and the World Affairs Council of NH.

“New Hampshire’s low taxes, skilled workforce, and proximity to domestic and foreign markets are advantages few states can offer to companies poised for international growth. These data and findings will be useful in our efforts to attract businesses to New Hampshire and create high paying jobs for years to come,” says BEA Commissioner Taylor Caswell

First introduced in 2018, the NH FDI Report is updated annually by PSU professors Roxana Wright and Chen Wu. The report provides a picture of foreign business presence in NH and analysis of the countries of origin of foreign subsidiaries represented across the state’s counties and industries. 

Wright and Wu say there found a range of foreign companies across industry sectors and sub-sectors operating in NH. “International business permeates most parts of the state’s business and economic development,” the report states.

According to the latest available data from the U.S. Bureau of Economic Analysis, foreign subsidiaries employed 50,700 people in NH in 2020, which is 8% of the state’s overall private-sector employment, higher than the national average of 6%. In their research, Wright and Wu found more than 60% of the foreign subsidiaries in NH are small businesses that have under 20 employees.

The United Kingdom is one of the major sources of foreign direct investment in NH. Kirsten Chambers-Taylor, regional director for the United Kingdom’s Department for Business and Trade, says U.K. companies employ Americans in about a million jobs in the U.S. and about the same number of U.S. workers in the U.K. Chambers-Taylor, who helps connect U.K. investors with companies in the U.S., works with life sciences companies with a focus on green energy. She emphasizes the importance of trading relationships and says there is $250 billion in annual trade and $1.5 billion invested in FDI between the two countries.

Kirsten Chambers-Taylor, center, regional director for the United Kingdom’s Department for Business and Trade, fields a question during a panel discussion at the fifth annual Foreign Direct Investment Forum. Panle members include PSU Professor of Economics Chen Wu, left, and BEA Business Development Manager Mark Laliberte, right.

“Foreign direct investment and international connections touch many of the industry segments and all key supply chain activities in New Hampshire,” Wright says.

BEA Business Development Manager Mark Laliberte says the ability for foreign investors to connect with key players in the state in order to form business relationships is an important advantage that foreign investors find in NH.  “It’s the ability to get a phone call or email response quickly… being able to talk with the governor,” he says.

Ray Brousseau, vice president and deputy general manager of BAE Systems' Electronic Systems (ES) sector

Among the British companies finding success in NH is BAE Systems. Ray Brousseau, vice president and deputy general manager of BAE Systems' Electronic Systems sector, which has 6,000 employees in the state, says NH is a good place to grow investment in manufacturing and that “It starts with people.”

“I look at the workforce and the talent pool, the education, and our hourly workers on the line coming out of voc-tech and community colleges. The talent pool is tremendous and allows us to draw workforce we need,” he says.  “And you can’t beat quality of life you find in New Hampshire.”