Top Ten Companies Investing Billions in U.S. Expansion Due To Tax Reform
While the media focuses on minutiae, our economy is growing
Despite the Democrat and media “shutdown” fever, President Trump’s economic and tax policies are creating real change, change that is improving or soon will improve the lives of tens of thousands of Americans.
From over a hundred major companies providing “Trump tax” bonuses to major companies hiking employee pay to existing employees to major corporations announcing massive U. S. expansion and investment, the Trump economy is set to boom.
Since President Trump took office, dozens of American companies have announced that they will be expanding U. S.-based operations. There are so many, that I wanted to focus only on the ten that will be the most beneficial to American workers, local communities, and ultimately, to our nation’s economy.
Apple
The massive tech company is planning to repatriate billions to the U. S. and has announced plans to spend $350 million in the U. S. over the next five years. Apple plans to create 20,000 new jobs.
Apple on Wednesday made a slew of announcements about its investment in and contribution to the U.S. economy in part because of the new tax law.
The headline from Apple is that it will make a $350 billion “contribution” to the U.S. economy over the next five years, although it’s unclear exactly how the company came to that number.
The company also promised to create 20,000 new jobs and open a new campus.It said it expects to pay about $38 billion in taxes for the horde of cash it plans to bring back to the United States. This implies it will repatriate virtually all of its $250 billion in overseas cash.
AT&T
AT&T announced last month that it would be allocating $1 billion in spending in the U. S. and a $1,000 “special bonus” to 200,000 U. S.-based employees.
Once tax reform is signed into law, AT&T* plans to invest an additional $1 billion in the United States in 2018 and pay a special $1,000 bonus to more than 200,000 AT&T U.S. employees — all union-represented, non-management and front-line managers. If the President signs the bill before Christmas, employees will receive the bonus over the holidays.
“Congress, working closely with the President, took a monumental step to bring taxes paid by U.S. businesses in line with the rest of the industrialized world,” said Randall Stephenson, AT&T chairman and CEO. “This tax reform will drive economic growth and create good-paying jobs. In fact, we will increase our U.S. investment and pay a special bonus to our U.S. employees.”
General Motors
In January of last year, GM revealed its plans to invest an additional $1 billion in the U.S. and anticipates supporting 1,500 new and retained jobs.
General Motors (GM) said Tuesday it will move axle production from Mexico to Michigan, joining Hyundai in announcing billions of dollars in new U.S. manufacturing investments as President-elect Donald Trump turns up the heat on automakers.
GM plans to invest an additional $1 billion in new vehicles, technology and components. The nation’s largest seller of new vehicles said it will provide details of those projects at a later date. The company expects the move to support 1,500 new and retained jobs.
In an apparent nod to the incoming administration, GM also noted that it will begin insourcing axle production for its next generation of full-size pickup trucks. Some of that work is currently done in Mexico. Bringing production of truck axles to Michigan will create 450 jobs, GM said.
“As the U.S. manufacturing base increases its competitiveness, we are able to further increase our investment, resulting in more jobs for America and better results for our owners,” GM Chairman and CEO Mary Barra said in a statement. “The U.S. is our home market and we are committed to growth that is good for our employees, dealers, and suppliers and supports our continued effort to drive shareholder value.”
GM’s expansion in IT, engineering and technology, along with growth at GM Financial, will result in more than 5,000 new jobs over the next few years, Barra added. GM also confirmed that a supplier has committed to make parts for GM full-size pickups in the U.S., moving 100 jobs from Mexico to Michigan.
Hyundai
Hyundai has committed to spending $3.1 billion in manufacturing plants in Georgia and Alabama.
Fox News reported last January:
Hyundai Motor Group announced on Tuesday that its subsidiaries, including the Hyundai and Kia brands, have allocated $3.1 billion for supporting their factories in Georgia and Alabama. The investment, up from the $2.1 billion that Hyundai Motor Group spent during the previous five years, will be used for research and development as well.
The South Korean company also said it will look into building a new factory in America, citing Trump’s promise to spur job creation.
Walmart
Last summer, Walmart announced that it would be investing an additional $250 billion in products “made, assembled or grown in the U.S.”
[P]roviding affordable goods isn’t the only way we aim to make an impact. We’re also heavily invested in the communities we serve. One part of that is our commitment to source an additional $250 billion in products made, assembled or grown in the U.S.
Not only does manufacturing products domestically create jobs – in many cases, it’s more efficient. Manufacturing goods closest to the point of sale allows for quicker turnaround time from factory to shelf. It’s good for business, good for customers and good for our stores.
Amazon
Looking to expand in the U. S., Amazon has announced that it will be setting up a second headquarters (HQ2) in one of 20 American cities. The move would create 50,000 new jobs and bolster the local economy.
The 20 potential cities are Atlanta; Austin; Boston; Chicago; Columbus, Ohio; Dallas; Denver; Indianapolis; Los Angeles; Miami; Montgomery County, Maryland; Nashville; Newark; New York City; Northern Virginia; Philadelphia; Pittsburgh; Raleigh; Toronto and Washington, D.C.
. . . . Called HQ2, the new facility will cost at least $5 billion to construct and operate, and will create as many as 50,000 high-paying jobs.
. . . . Amazon said Thursday that it evaluated each of the bids based on the criteria it previously outlined, such as proximity to a major airport, ability to attract tech talent and a suburban or urban area with more than 1 million people.
In the coming months, the company said, it will work with each of the locations to “dive deeper” into their proposals, obtain more information and evaluate how the city could accommodate Amazon’s hiring plans and benefit its workers and the local community.
Fiat-Chrysler
Fiat-Chrysler announced plans to invest $1 billion in Michigan and Ohio plants.
CNBC reported last year:
FCA, the U.S. arm of automaker Fiat-Chrysler, announced on Sunday that it would invest a total $1 billion in plants in Michigan and Ohio, which will add 2000 new jobs in the United States.
. . . . “Consistent and combined with previously announced investments, FCA US is further demonstrating its commitment to strengthening its U.S. manufacturing base, and aligning U.S. capacity to extend the Jeep product lineup,” FCA said.
In a statement, FCA said it would retool and modernize its Warren Truck Assembly Plant to produce a new Jeep and Grand Wagoneers, while a facility in Toledo would build a new Jeep pickup truck. These plans will be in place by 2020, the company said.
The move “is a continuation of the efforts already underway to increase production capacity in the U.S.on trucks and SUVs to match demand,” the company said, adding that it would help solidify the U.S. as “a global manufacturing hub” for its flagship brands.
Intel
Intel announced last year that it will be investing $7 billion in Arizona and provide 3,000 new jobs.
CNBC reportedat the time:
Intel chief executive Brian Krzanich met with President Donald Trump on Wednesday, where the company announced it will invest $7 billion in a factory employing up to 3,000 people.
The factory will be in Chandler, Arizona, the company said, and over 10,000 people in the Arizona area will support the factory. Krzanich confirmed to CNBC that the investment over the next three to four years would be to complete a previous plant, Fab 42, that was started and then left vacant.
The 7 nanometer chips will be produced there will be “the most powerful computer chips on the planet,” Krzanich said in the Oval Office with the Trump administration. Most Intel manufacturing happens in the U.S., Krzanich said.
Boeing
Boeing announced that it will invest $300 million.
The aerospace and defense company immediately announced $300 million in investments after the bill passed, with $100 million toward corporate giving including employee gift-match programs, $100 million toward workforce development, training and education and $100 million toward enhancing Boeing’s workplaces.
“On behalf of all of our stakeholders, we applaud and thank Congress and the administration for their leadership in seizing this opportunity to unleash economic energy in the United States,” Boeing (BA) President and CEO Dennis Muilenburg said in a statement. “It’s the single-most important thing we can do to drive innovation, support quality jobs and accelerate capital investment in our country.”
From the Boeing announcement on its tentative plan to invest the $300 million:
While Boeing is still studying all of the provisions of the new legislation, Muilenburg announced immediate commitments for an additional $300 million in investments that will move forward as a result of the new tax law:
- $100 million for corporate giving, with funds used to support demand for employee gift-match programs and for investments in Boeing’s focus areas for charitable giving: in education, in our communities, and for veterans and military personnel.
- $100 million for workforce development in the form of training, education, and other capabilities development to meet the scale needed for rapidly evolving technologies and expanding markets.
- $100 million for “workplace of the future” facilities and infrastructure enhancements for Boeing employees.
“Each of these investments benefits Boeing’s most important strength – our employees – and reflects the real-time impact and economic benefit of the reforms,” said Muilenburg.
Delta Air Lines
Delta Air Lines announced last year that it intends to hire 25,000 more employees.
CBS46 reported at the time:
Delta Air Lines CEO Ed Bastian announced that his company plans to hire 25,000 more employees over the next five years. The announcement came after a group of airline chiefs met with President Trump.
The airline CEO said the meeting with Trump was “a positive discussion about many of the major issues facing U.S. travelers, airline employees and the aviation industry, which is a vital economic engine for America.”
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Comments
“a billion here, and a billion there, pretty soon your talking about real money”. Thus spake senator Everett of Illinois, back when that state had rational politicians.
Ms Slippers, thanx for the compilation.
There should be a dramatic multiplier effect on every local economy as a direct result of these investments. The new hires you listed are just the beginning of many more jobs and small businesses that will service this growth.
Everywhere but California which has decided to tax business profits as ‘windfall’ thereby ensuring that the beneficial aspects of the Trump tax cut don’t get spread to the citizens of California.
Revitalization. Rehabilitation. Reconciliation.
Crumbs. Those are mere crumbs, I say. It’s still the Apocalypse. (Paraphrase of Nancy Pelosi)
For them.
More proof big gov is in the way of realy economic progress.
Also…Delta Air Lines…three words. Even the quote uses the correct spelling!
Right you are, Ron, thanks. Fixed.
As an aside, would you like me to correct your spelling of the word “real”? I’m always happy to help a fellow grammar/spelling hound.
Touche’…thanks! Guess I’m at a real (see what I did there?) disadvantage as I don’t know how to edit my post. 🙂
Heh, no worries. I really do love fellow grammar/usage/spelling geeks, so I wasn’t (completely) kidding. 🙂
imRB…Click the preview button down below to proof read your comments.
Then you can make your corrections if needed! 🙂
No… your disadvantage is uncalled for picky BS.
This group seems to be updating their list with large & small companies – https://www.atr.org/list .
I don’t think that the requirement for companies with 50 FTEs or more have to provide health insurance has been eliminated. So, a lot of smaller companies can increase wages but they may not be able to increase hours or number of people. That needs to change before the smaller companies can really react to the opportunities that are growing.
I was thinking about that, too, Liz, and I also couldn’t find where Obama’s onerous 30-hour work week had been repealed (and it needs to be). Let me know if you saw something on that.
The 30 hour definition as a FTE as well as the 50 FTE requirement is in the law – https://www.law.cornell.edu/uscode/text/26/4980H .
There are articles about attempts to change the definition back to the 40 hour criteria, but it failed back in 2012-3 period. It might be a good time to bring up the topic again to our Congresscritters. I wonder if anyone will be in the offices on Monday?
Thanks, Liz! 🙂 Repealing the mandate is intended to crumble ObamaCare (and it will), but a full repeal would be so much cleaner and take care of these other issues that progressives love (punishing small business, shorter work weeks).
Also and little mentioned but very important was the government takeover of the student loan industry. That should never have happened (thus it being buried in a massive health care bill). People who would not ever consider a government loan for anything including college now find their private college loans are owned by the feds. That was the step toward “free” college for all, of course, but as it is, it’s hurting people in ways that never could happen in a depressed economy if the loans were private. Hopefully, Trump’s economic boom will kick in and help these people.
there is a fly in the ointment, looks like California is looking to ‘take’ some of the savings people/companies will receive from the tax cut.
Of course they are. It’s not only to line their pockets but to hide the benefits of Trump’s tax law. If people don’t feel it in their wallets, it didn’t happen. They won’t know that it was their own state taking from them; they’ll just assume the tax law didn’t help them.