In 2009, the global economic downturn continued to impact Japan and the United States. The 2009 survey of Japanese direct investment in ten Midwest States(1), conducted by the Consulate General of Japan at Chicago, is based upon data as of October 1, 2009. The results are as follows:

(1) Illinois, Indiana, Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota, South Dakota, and Wisconsin. Beginning in 2005, the study includes six new states (Iowa, Kansas, Missouri, Nebraska, North Dakota, and South Dakota), which were added to the Consulate’s jurisdiction in January of that year. Japanese-owned retail locations are excluded.

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Business Facilities and Employment

Note: Japanese business facilities include those which are ultimately 10% or more owned by a Japanese company or national.

Key results for the 10-state area are as follows:

1) Business Facility Number
In 2009, 1,159 Japanese business facilities were located in the 10-state area. The 4.8% decline was due to the economic slowdown worldwide. Illinois ranked first with 53% of the business facilities, followed by Indiana with 19%.

2) Total Employment
Total employment declined 9.5% to 93,710 positions. Indiana ranked first with 41% of the total employment, followed by Illinois with 37%.

3) Actual Manufacturing Employment
The 337 actual manufacturers accounted for nearly 30% of the total business facilities. They provided 49,770 high skilled, high paying jobs, or more than one-half of the total employment.

4) Share By Sector
Manufacturing continued to be the leading sector with 68% of the business facilities and 92% of the total employment. In manufacturing, the motor vehicles and parts sector accounted for 15% of the business facilities and 44% of the total employment.

                                                Business Facility Number By Sector Share


                                                    Total Employment By Sector Share

5) Japanese Companies Embrace the Midwest’s Strengths
From a long-term perspective, the Midwest remains particularly attractive to Japanese direct investment due to its central location, top quality workforce, strong transportation network, and favorable business environment. In return, Japanese business facilities provide jobs in both urban and rural areas, source components from U.S. companies, facilitate technology transfer, and furnish new revenue sources that help boost state and local economies.