Interstate investment into Texas on the decline

Greenfield investment monitor fDi Markets has recorded a year-on-year decline in FDI into Texas from the remaining US states between 2013 and 2015.

Texas is consistently receives the most interstate investment in the US, accounting for 9.71% of capital investment in the 2013 to 2015 period, and 12.9% for the first seven months of 2016. During 2013, 375 investment projects from the rest of the US into Texas were recorded, a figure which fell by 1.6% in 2014. The trend continued in 2015 when 294 projects were recorded (a decrease of 20.33% on 2014 figures).

The three most attractive destinations in Texas during the period were Houston, Austin and Dallas, which together attracted 55.78% of investment projects into the state. Between 2013 and 2015, the number of projects into these destinations declined by 13.43%.

Intrastate capital investment into Texas has also declined during this period. In this case, $12.33bn was invested during 2013. This subsequently decreased year-on-year with 2015 recording a value that was 23.49% lower than that recorded in 2013. Jobs created by intrastate investment in Texas follow the same trend. Here, it witnessed a decrease of 26.8%, falling from 32,216 jobs created in 2013 to 23,581 in 2015.

Looking at the first seven months of 2016 suggests that this downward trend is set to continue. In the January to July 2015 period, 172 projects in Texas from the rest of the US were recorded. This fell to 150 for the same period in 2016. Similarly, capital investment has witnessed a decrease of 14.43% when comparing the two periods. However, on a more positive note, jobs created have risen by 4.17% year-on-year for the first seven months of 2016.