Global Sales Report – It's Not Just Jobs

Posted by: Howard Silverblatt on July 14, 2009

For the full report click here

I just released my annual S&P 500 Global sales report, and as has become the custom, the annual reports are full of nice glossy pictures, the text professes globalization, but the actual tabular tables of data are few to be had. One new finding this year - it’s not just jobs being exported anymore. U.S. companies sent more money abroad for income taxes in 2008 than they sent to Washington.


• Of the reporting issues, 47.9% of all sales were produced and sold outside of the United States, up from 45.8% in 2007 and 43.6% in 2006.
• In 2008 S&P 500 foreign sales increased 8.5%, while domestic sales decreased 0.3%.
• European sales represented 27.7% of foreign sales, with 9.3% coming from Canada. Asian sales decreased to 13.2% from 16.8% in 2007.
• It’s not just jobs exported - more income taxes were paid abroad than were paid to the U.S. government.
• Foreign income taxes increased US$ 11.5 billion or 9.3%, as U.S. federal income taxes declined US$ 43.9 billion, or 29.1%.

While the current recession has had significant impacts on local markets, the overall trend has not significantly changed. Growth outside of the United States is expected to be greater than that of the growth within the U.S.

The shift of labor, capital, and resources are expected to continue outside of the U.S. where a growing worldwide middle-class is emerging, even as the U.S. is viewed with much higher political stability.

The shift of labor, capital, and resources are expected to continue outside of the U.S. where a growing worldwide middle-class is emerging, even as the U.S. is viewed with much higher political stability.

It’s no longer jobs that we’re exporting, now it taxes - Foreign income taxes paid increased $11.5 billion in 2008 while those paid to the U.S. government declined $43.9 billion, with Financials paying 16 times more abroad than domestically. Taxes paid to the U.S. now represent a minority of income taxes paid by U.S. companies.

http://www2.standardandpoors.com/spf/pdf/index/SP500_GLOBAL_SALES_2008.pdf

Reader Comments

vik

July 14, 2009 4:45 PM

Isn't this interesting... this happening when the US budget deficit is at a record high of a trillion and expected to get much higher. So large US companies are taking advantage of international growth at the detriment of the US. Haven't these companies run this country for too long now? When will government reclaim its right to govern?

Ronald Albany

July 14, 2009 11:49 PM

It's interesting to see that the countries we have outsourced our jobs to are not buying our products. Not only have US job losses increased, but sales to countries like India and China are dropping. It looks like these emerging markets are not going to be the markets for US business they were promised to be. There is a clear exchange of wealth, on an epic scale, going on.

Gaurav Sharma

July 15, 2009 5:46 AM

nice stuff

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About

Bloomberg Businessweek’s Ben Steverman focuses on the latest moves in financial markets and emerging trends in stocks, bonds, and funds, always with an eye toward giving readers a better understanding of the sometimes confusing and often chaotic world of money. Standard & Poor’s senior index analyst Howard Silverblatt will also provide his take on companies’ finances and the markets. Voted one of the “Top 100 Finance Blogs” in 2007.

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