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Why Uncertainty — Not Demand — Is Slowing Foreign Investment in the U.S.

Area Development

  • Publications
  • Q1 2026

Nelson Lindsay wrote an article in Area Development on the latest trends in foreign direct investment (FDI) into the United States. 

"For many global manufacturers and suppliers, the long-term case for a U.S. presence remains strong," Nelson explained. "The market is here. Customers are here. Supply chains increasingly need a North American footprint."

"What has changed is not demand, but confidence," he continued. "In 2025, uncertainty around federal economic policy — particularly tariffs — has emerged as the single biggest factor slowing foreign investment decisions, especially among small and mid-sized, family-owned companies considering their first U.S. facility. These firms are not pulling back because the U.S. no longer makes sense. They are pausing because they cannot confidently model what their costs, timelines, and risks will look like one, three, or five years from now."

"That distinction matters," Nelson continued, "because it explains why so many project pipelines appear full, yet so many deals remain stuck in evaluation mode."

Click here to read the full article: Why Uncertainty — Not Demand — Is Slowing Foreign Investment in the U.S.

Area Development is a leading resource for corporate expansion and relocation strategy, serving an audience of C-suite executives, corporate real estate decision-makers, site location consultants, and business advisors.