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HAGERSTOWN, MDTreasury Secretary John Snow visited Volvo Powertrain North America today to talk with employees and company managers about the American economy and the role of investment, including investment from abroad, in creating good jobs.
The facility visited by Snow today was purchased by Volvo a Swedish truck manufacturer in 1999 to produce the Volvo product in conjunction with the Mack truck engines that were already being produced. Volvo retained the facility's highly-skilled local workers and has since invested $150 million to upgrade the facility and construct a state-of-the-art Engine Development Laboratory that employs hundreds of engineers who work on more advanced, cleaner-running engines. Today, Volvo Powertrain North America's Hagerstown location employs 1,750 workers producing hundreds of Volvo and Mack engines and transmissions each day.
We know that investment in America lies at the heart of creating good jobs. This facility is a great example of the good that can come of global investment in the United States, Snow said. Thanks to the Volvo investment, Hagerstown has retained and gained good jobs and tax revenue, and the research and technology being developed here will ultimately benefit all Americans.
Indeed, 5.3 million U.S. workers alone are directly employed by U.S. affiliates of international companies, Snow said. That's the equivalent of 4.8 percent of total private non-agricultural employment. These tend to be well-paying jobs, too, Snow pointed out. International companies support an annual U.S. payroll of $318 billion, with the salary for employees averaging nearly $60,000. And this doesn't count the multiplier effect as all that spending moves through other businesses in local communities.
Snow went on to say that the success of the American economy including a growth rate of around 3.5 percent and the creation of nearly five million new jobs over the past three years is the result of a strong foundation, including sound monetary policy, lower tax rates, an outstanding workforce, an embrace of entrepreneurship and ongoing openness to trade and investment.
The American economy was in trouble a few years ago, and there can be no question today that well-timed tax relief, combined with responsible leadership from the Federal Reserve Board, created an environment in which entrepreneurs and workers could bring our economy back from that weakened state, he said.
Investment in the United States has been another essential ingredient behind our outstanding economic recovery, largely due to the jobs it creates and sustains. That is why it is essential for Congress to make the President's jobs and growth tax relief permanent, especially to act right now to extend job creating dividends and capital gains tax relief for as long as possible.
Snow concluded his visit by congratulating plant employees and managers on a successful merger. Thank you for the work you do for your industry, and for the advancement of clean-engine technology. It's great to see to companies from two countries join together for the greater good.