International companies trust ARCO Design/Build to navigate facility development from day one.
Foreign Direct Investment
You’re Planning a U.S. Facility. So Is Your Competition. Half of Them Will Fail.
Not because of construction problems. But because of choices made – or not made – long before breaking ground.
Here’s what actually happens:
- A company negotiates millions in tax incentives, then discovers their legal structure makes them ineligible
- Another selects the perfect site, then learns it can’t support their equipment’s power requirements
- A third brings their hometown attorney to set up their U.S. entity, creating massive tax problems nobody saw coming
These aren’t construction failures. They’re planning failures that add months of delays and millions in costs.
After hundreds of international projects, we know how interconnected these early decisions can be. That’s why we help our clients think holistically, pairing them with trusted local partners and ensuring their plans are aligned from the start.
Every decision you make today – your attorneys, your site, your entity structure – affects what’s possible tomorrow. We understand these connections because we’ve seen them play out hundreds of times.
Questions That Determine Success or Failure:
- Will the incentives you’re negotiating still be valid after you form your entity?
- Can your chosen site actually support your manufacturing process?
- Do your attorneys understand how U.S. tax law affects your industry?
- Are your consultants talking to each other, or working in silos?
If you answered “no” or “I don’t know” – you’re already at risk for the delays that derail half of FDI projects.
How We Help You Win
As the #1 industrial builder in the U.S., we do more than construct facilities:
✔️We understand your operation – your process, your equipment, your growth plans
✔️We spot problems early – avoiding months of delays before they happen
✔️We know who to call – the right attorney, tax specialist, or incentive consultant for your specific situation
✔️We build it right – guaranteed pricing through design-build, with single-team accountability from start to finish
We introduce you to independent legal, tax, and incentive specialists. They work for you, but we ensure they engage at the right time.
The result? A smoother path to breaking ground and a project built for long-term success.
ARCO by the Numbers
500+ Projects Worth of Lessons
500
international facility projects complete
30
countries of origin served
30
faster project delivery on average
5.2
annual construction volume (billions)
49
Offices Nationwide
Why ARCO Projects Succeed
Every international project comes with its own complexities. A Korean battery manufacturer expanding into the U.S. faces very different regulatory, logistical, and technical challenges than a German automotive supplier or global pharma brand.
ARCO understands those differences because we’ve lived them, partnering with companies across dozens of industries and regions to turn ambitious plans into operational facilities.
What sets us apart isn’t just construction expertise – it’s the way we connect every piece of the process. From concept through completion, one accountable team oversees your project, anticipating challenges before they surface and aligning design, cost, and delivery from the very beginning.
That’s why our clients don’t just complete their U.S. projects – they win with them.
What is foreign direct investment (FDI)?
Foreign direct investment, or FDI, happens when a company based in one country invests in and controls operations in another. For international manufacturers and industrial companies, that usually means putting real capital into a U.S. facility, equipment, and long-term operations instead of only exporting into the market.
In practical terms, FDI often looks like building a new plant, distribution center, or production facility in America. Those decisions trigger a chain of legal, tax, site, and construction choices, and the way you handle those early steps will have a direct impact on how successful your U.S. expansion becomes.
What is Greenfield FDI?
Greenfield FDI describes a foreign company building a brand new operation in another country from the ground up. Rather than taking over an existing facility, you are selecting land, planning infrastructure and utilities, and designing a building around your process and equipment.
For a U.S. expansion, a Greenfield project gives you the opportunity to create an operation that fits your manufacturing needs, growth plans, and logistics strategy. At the same time, it puts a spotlight on early decisions. Your site must support power and utility demands, your entity structure has to align with the incentives you negotiate, and your advisors need to be working together instead of in silos. Getting those pieces right up front helps create a smoother path to breaking ground.
What should foreign companies know about FDI in construction and manufacturing when planning new U.S. facilities?
The most serious problems with FDI construction projects usually show up long before anyone pours concrete. They are planning problems that quietly build up in the background, then turn into months of delay and unexpected cost.
A few key realities:
- Incentives and entity structure are connected. A company can negotiate millions in tax incentives, then find out the way they formed their U.S. entity makes them ineligible.
- Site selection is more than location. A site can look perfect on paper, then fail once you discover it cannot support your equipment’s power or process requirements.
- Familiar advisors may not know U.S. rules. A hometown attorney might be excellent in your home country but still create major U.S. tax problems without realizing it.
- Consultants must talk to each other. If your legal, tax, incentive, and construction teams are working in silos, small misalignments early can turn into big issues later.
After hundreds of international projects, ARCO Design/Build has seen how interconnected these decisions really are. Bringing a builder into the conversation early, and pairing that builder with trusted U.S. legal, tax, and incentive specialists, helps you avoid the planning failures that derail half of FDI projects.
What factors should foreign companies consider when choosing an FDI construction partner?
Choosing a construction partner for your U.S. facility is a strategic decision, not just a purchasing one. Foreign companies should look for a partner that:
- Has deep experience with international manufacturers and industrial users, and understands how different regions and industries approach expansion.
- Takes time to understand your operation, including your process, equipment, utilities, and long-term growth plans.
- Can spot problems early, before you finalize a site, entity structure, or incentive package, so you avoid costly surprises later.
Uses a design-build approach that connects design, pricing, and delivery from the beginning, with one accountable team guiding the project from concept through completion. - Has strong relationships with independent U.S. attorneys, tax advisors, and incentive consultants, and knows when to bring each of them into the conversation.
As the number one industrial builder in the U.S., ARCO Design/Build works holistically across these areas. We focus on understanding your operation, we help coordinate the right specialists at the right time, and we provide a clear, aligned path from early planning through construction so your facility is built for long-term success in the U.S. market.
What is the difference between Brownfield and Greenfield construction?
Greenfield construction means building on land that has not been developed with your type of facility before. You are starting with a clean site, planning infrastructure, utilities, and layout specifically around your operation and equipment. It gives you more control over how the facility functions, but it also demands careful early planning, since mistakes at this stage can be very expensive to fix later.
Brownfield construction involves reusing or redeveloping an existing site or facility. You might retrofit a former warehouse, plant, or distribution center for your needs. This can shorten the schedule in some cases, but it often comes with constraints, from power capacity and column spacing to environmental or permitting issues that need to be addressed.
In both cases, foreign companies benefit from a construction partner that can evaluate the true cost and risk of each option, connect those findings to your incentives and entity structure, and guide you toward the path that supports your operation for the long term.
Start Where You Are. We’ll Get You Where You Need to Be.
Whether you’re just exploring the U.S. market or ready to break ground, one conversation with us can identify your hidden risks.
