Tom Still: Foreign direct investment plays growing role in Wisconsin’s economy

This is an excerpt from a column posted at BizOpinion.

Waupaca Foundry can trace its roots in Wisconsin to 1871, when the Rosche family opened the company on the banks of the Waupaca River. Today, the firm still operates three foundries in Waupaca and another in Marinette, but its ownership has turned to the east … the Far East.

The $1.3 billion purchase of Waupaca Foundry by Japan’s Hitachi Metals Ltd., part of a larger global conglomerate, will likely mean even more growth for a company that already describes itself as the world’s largest supplier of iron castings.

Last month’s announced deal is the latest example of how foreign direct investment is globalizing Wisconsin’s state’s economy in ways that create jobs, expand supply chains, open the doors to new markets and provide needed investment dollars.

Foreign direct investment is investment by foreign-owned companies in Wisconsin companies, often for the purpose of cracking into North American markets. Between 2010 and 2012, 37 foreign direct investment deals were reported in Wisconsin, a figure that lagged most Midwest states but nonetheless contributed significantly to the state’s economy.

Exports and foreign direct investments are flip sides of the same coin. They represent Wisconsin’s ability to build, produce and grow what the world needs – and to attract investment from other markets that understand Wisconsin’s strengths.

Read the full column