The year 2016 has been a year of change, and very often not in the direction most pundits had predicted. The United States has proved no exception. Regardless of this, however, the U.S. economy’s fundamental needs have not changed. American businesses, workers and consumers will continue to require better jobs, modernized infrastructure and more efficient markets. We must wait to see how the incoming Trump administration’s pledges translate into concrete action in areas such economic growth, streamlining regulation and upgrading America’s infrastructure.
In many ways, the time for investing in the United States has never been better and non-U.S. firms can play an important role in that. The U.S. market provides a level of stability that is unimaginable in many parts of the world. The combination of a balanced political system, transparent regulations and, above all, a dynamic and vibrant civil society ensures that the country and its strong economy will remain a premier destination for capital.
In the United States, foreign companies employ a work force of nearly 6 million people, most of which are Americans, translating to about 3.5 percent of the domestic economy. Equally relevant, global firms help to support the 27 million small businesses that exemplify the entrepreneurial backbone of the American economy.
The investments required to making America’s energy infrastructure more efficient, reliable, secure, and green will require investment of some $2 trillion over 25 years in the power sector alone, according to the International Energy Agency. As the leader of a global electric utility company with a presence in Europe and the Americas, this supports our view of the United States as a key growth market for clean power generation and networks.
The global reaction to President-elect Trump’s commitment to rebuilding the country’s infrastructure has been positive in this respect. To achieve this, the United States will need the capital and know-how of industry’s top firms – both domestic and foreign – in order to meet current and future needs. For example, over the next five years Avangrid, a U.S.-listed company that conducts Iberdrola’s business activities in America, will invest over $9 billion into America’s energy infrastructure to continue developing a cleaner, stronger, and smarter power grid. Avangrid also purchases goods and services worth $2.5 billion every year from more than 5,000 domestic suppliers. These investments will provide jobs for American workers and help lower energy costs for American consumers.
Energy infrastructure is just one of the industries that can benefit – manufacturing, telecommunications, technology, transportation, and agriculture are among the many other sectors in which significant investments from global firms are an important source of job growth and economic benefits for America.
In order to achieve this, the United States will need to maintain policies that encourage global firms to establish themselves and invest in the right opportunities.
I am confident that President-elect Donald Trump’s administration will be open to business for foreign firms, providing ample opportunities to grow their businesses while creating jobs and wealth for Americans. Not all foreign companies will be able to deploy considerable amounts of capital, but the cumulative investment of numerous firms will have a meaningful impact. The relationship between global companies and the United States has historically proven to be highly successful and mutually beneficial. As we move into 2017, we should remain confident that the partnerships between America and the world’s leading companies will continue to thrive so that they can play their part in helping to grow the U.S. economy in years to come.