From a record high of $17 billion in 2000, computer and electronic manufacturers reduced FDI to a mere $900 million in 2002. But global investments rebounded in 2003 to reach $4.6 billion as the technology sector continued to show signs of recovery. Similarly, foreign direct investment into electrical equipment, appliances and components grew to $460 million in 2003 from just $60 million the previous year. "Other manufacturing" increased 15 percent to $10.6 billion in 2003 from $9.3 billion in 2002.
The report pointed out that the ability to manage complexity and synchronize global networks is critical. "The globalization of U.S. manufacturing is at a crossroad as companies struggle to identify the best overseas investment strategies," said Kevin Gromley, a partner with Deloitte Consulting and consulting leader for Deloitte Touche Tohmatsu's Global Manufacturing Industry Group. "Companies that have the capabilities for mastering global complexity over the long run are likely to be much more successful than those that do not."
The complete Deloitte Research study "Globalization Divided? Global Investment Trends of U.S. Manufacturers" study and the related study, "Mastering Complexity in Global Manufacturing: Powering Profits and Growth through Value Chain Synchronization" are available www.deloitte.com/research. These studies were prepared for Deloitte Touche Tohmatsu's Global Manufacturing Industry Group, which is comprised of practitioners from various Deloitte Touche Tohmatsu member firms.
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