Special Report

Ten Cities Where Foreign Companies Create the Most Jobs

5. Houston-Sugar Land-Baytown, Texas
> Pct. employees at foreign companies: 8.0%
> Total employment by foreign businesses: 178,005 (4th highest)
> 2009-2012 annual export growth: 13.6% (7th highest)
> 2012 total exports: $77.8 billion (3rd highest)

More than 178,000 Houston area workers were employed by foreign-owned companies as of 2011, more than in all but three other cities. Just over half of all employment by foreign-owned businesses came from companies that entered the Detroit economy through mergers and acquisitions since 1991, the fourth highest such rate in the country. Much of the foreign investment in Houston is likely related to the area’s energy cluster, which includes a number of the world’s major energy companies. Houston demonstrates many of the benefits of foreign investment. Houston area employees were among the most productive in the nation, with a GDP per worker of nearly $125,000 in 2011. Additionally, Houston was both a large and growing exporter. The area had $77.8 billion in exports in 2012, more than all but two other metro areas. Between 2009 and 2012, exports grew at an annualized rate of 13.6%, among the highest rates in the nation.

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4. El Paso, Texas
> Pct. employees at foreign companies: 8.8%
> Total employment by foreign businesses: 18,540 (47th lowest)
> 2009-2012 annual export growth: 12.1% (11th highest)
> 2012 total exports: $3.3 billion (19th lowest)

Few metro areas have experienced as much growth as El Paso in recent years. Between 2003 and 2012, the area’s economy expanded at an annualized pace of 2.7% per year, better than most of the nation’s 100 largest metro areas. Exports, too, rose considerably, growing at an annualized rate of 6.4% in that time. This growth has especially picked up following the recession. Between 2009 and 2012, exports grew by 12.1% per year, among the highest rates in the U.S. Major foreign-owned employers in the area include data and call centers, as well as automotive manufacturing companies. According to the BorderPlex Alliance, a local nonprofit promoting business investment in the region, the area is home to facilities for numerous major automotive suppliers. However, many of these businesses likely provide supplies for U.S. based companies because 2012 manufacturing export totals were relatively low, at just more than $2.2 billion.

3. Worcester, Mass.
> Pct. employees at foreign companies: 9.0%
> Total employment by foreign businesses: 24,624 (44th highest)
> 2009-2012 annual export growth: 8.7% (28th highest)
> 2012 total exports: $4.9 billion (39th lowest)

According to the Worcester Executive Office of Economic Development, Worcester has turned away from its manufacturing roots in recent decades to become a leader in information technology, biotech, and healthcare. With more than 13 colleges and universities in the area, a young, educated workforce is the hallmark of this metro area. More than 33% of the area’s population had a bachelor’s degree as of 2011, while nearly 13% had a degree in science, technology, engineering or math, both higher than the vast majority of metro areas. Between 1991 and 2011, the share of employment by foreign businesses rose by 4 percentage points. Much of this was due to expansion, as 60% of area workers in foreign-owned businesses were employed by companies that entered the market prior to 1991.

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2. Greensboro-High Point, N.C.
> Pct. employees at foreign companies: 9.0%
> Total employment by foreign businesses: 27,036 (40th highest)
> 2009-2012 annual export growth: 5.2% (35th lowest)
> 2012 total exports: $7.9 billion (46th highest)

The Greensboro metro area has developed a vibrant economy that entices both foreign and domestic investment, attracting Ralph Lauren manufacturing centers, APAC Customer Services, Volvo, and the Mack Truck headquarters, among other businesses. Between 1991 and 2011, job in foreign-owned businesses grew from 5.2% to 9.0% of total employment. Unlike many other major metro areas, newer businesses accounted for an especially large share of employment by foreign-owned businesses. Just 29% of employment by foreign businesses was by companies that first entered the area market before 1991, less than in most of the nation’s largest metro areas.

1. Bridgeport-Stamford-Norwalk, Conn.
> Pct. employees at foreign companies: 13.6%
> Total employment by foreign businesses: 50,694 (19th highest)
> 2009-2012 annual export growth: 3.2% (11th lowest)
> 2012 total exports: $8.1 billion (44th highest)

Unlike other regions on this list, the Bridgeport metro area recorded some of the lower export growth rates in the country, despite foreign-owned establishments accounting for nearly 14% of private employment in 2011, a roughly 6 percentage point increase from 20 years earlier. However, the Bridgeport metro area is one of the nation’s leaders in productivity, with GDP per worker of $132,000 as of 2011. Major foreign-owned companies in the area include large investment banks UBS AG and the Royal Bank of Scotland, as well as financial news and data firm Thomson Reuters. Such businesses likely continue to attract foreign investment to the area.The area’s high concentration of investment firms may also explain the region’s large number of IPOs, for which the region was ranked fifth nationally.

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