|[February 26, 2013]
Industrial Machinery Will Be Top Growth Area for U.S. Exports and Imports, HSBC Trade Report Shows
NEW YORK --(Business Wire)--
Industrial machinery is expected to be the top driver of U.S. export and
import trade now and in the next decade, according to the latest HSBC
Commercial Banking Trade Forecast.
According to the report, U.S. industrial machinery exports, which can
include large power generating machinery to small parts for domestic
electrical items, are expected to account for 21 percent of U.S. export
growth this year through 2015, making it the biggest sector contributor
to overall U.S. merchandise export growth through 2015. Further out,
industrial machinery is expected to rise to 25 percent of U.S. export
growth in 2016 to 2020, and to 26 percent in 2021 to 2030, according to
At the same time, industrial machinery is expected to account for 25
percent of U.S. import growth this year through 2015, according to the
report. The report predicts that industrial machinery will decline to 22
percent of U.S. import growth in 2016 to 2020 before inching up again to
23 percent in 2021 to 2030.
"For businesses looking to expand internationally, understanding which
countries are set to increase imports in the sector in which they
operate may provide new opportunities to deliver significant growth,"
said Prabhat Vira, U.S. Regional Head of Trade and Receivables Finance
U.S. Sector Trends: Transport, Medical and Measuring Sectors Driving
U.S. Export Growth
In addition to industrial machinery, other higher value added sectors
including transport, medical and measuring equipment, are also set to be
big contributors to U.S. export growth. In fact, these sectors together
with industrial machinery are expected to contribute to half of the
increase of U.S. exports in 2021 to 2030, according to the report.
The report shows that U.S. transport equipment exports, including motor
vehicles and aircrafts, are expected to account for 17 percent of U.S.
export growth this year through 2015, making it the second biggest
sector contributor to U.S. export. The sector's growth is expected to
account for slightly less, 14 percent, of overall U.S. export growth in
2016 to 2030, but will still remain the second largest contributor to
overall U.S. exports in the next decade and beyond.
And while medical and measuring equipment, which can include instruments
for medical, surgical, dental or veterinary purposes, as well as meters
and counters, are expected to make up about seven percent of U.S. export
growth this year through 2015, making it the fourth biggest sector
contributor to U.S. export growth, the sector is anticipated to increase
its share of U.S. export growth to 10 percent in 2021 to 2030. During
that decade, it will become the third largest sector contributor to
overall U.S. export growth.
"China and other emerging markets are expanding their operations into
new, higher value sectors, which is prompting the more developed
markets, including the U.S., to specialize and diversify," said HSBC's
Vira. "U.S. companies looking to expand globally may want investigate
the resources, relationships and finances needed to maximize any
U.S. Trade Trends: Canada, Mexico, China Remain op U.S. Trade Markets
According to the report, U.S. exports will increasingly find their way
to rapidly growing consumer markets in developing economies, as growth
prospects for industrialized nations remain subdued. And while U.S.
exports to the United Arab Emirates, India, and Vietnam are expected to
increase the most over the next several years, the top three markets for
U.S. exports continue to be Canada, Mexico and China, according to the
report. The first two are perennial top destinations for U.S. exports as
a result of free trade agreements and proximity to the U.S. The report
indicates that China's strong role in U.S. exports and imports activity
reflects some of the overall shift in global manufacturing to China over
the past two decades, but also forward-looking demand from China for
U.S. high valued-added products as the country's consumption share
"Emerging markets are developing at a phenomenal pace and are set to
reshape world trade patterns over the next 20 years," said James Emmett,
HSBC's Global Head of Trade and Receivables Finance. "Understanding
which sectors are growing in which markets, delivers huge opportunities
In fact, a related HSBC report issued last month showed how some U.S.
companies have benefitted from global expansion and export trends. The
report, "Spotlight on U.S. Trade," the first in a series of reports
analyzing publicly-traded companies in key regions around the U.S.,
showed that global businesses based in Upstate New York achieved almost
three times the growth rates and earned over 10 per cent more in revenue
than their domestic peers in the region between 2007-2011. The report
included global expansion stories from companies such as Columbus
McKinnon, Constellation Brands, Ecology and Environment, Inc., and Moog.
Regarding overall export growth for the U.S., the report anticipates
growth to slow to 2.2 percent in 2013 before increasing moderately to
3.9 percent in 2014. Similarly, U.S. imports will slow to 1.3 percent in
2013 before increasing somewhat to 2.7 percent in 2014.
Global Trade Trends: Emerging Markets Add Value to Supply Chain
Globally, the report notes the shift towards the production of higher
value goods is particularly evident in Asia, with a clear pattern
emerging as Chinese export growth in information and communications
technology and industrial machinery gathers pace. This balances a
declining rate of growth in sectors such as textiles, giving rise to
opportunities for companies in the smaller, faster growing countries
around the region to win contracts to produce these more basic goods.
Additionally, industrial machinery is the world's top sector for goods
traded and will encompass around 25 percent of goods exported among the
top 25 trading nations by 2030, and contribute over a third of the
growth in total merchandise exports from 2013, according to the forecast.
For a copy of the global report and further information, visit: http://www.globalconnections.hsbc.com/
Notes to editors:
About the HSBC Trade Forecast - Modeled by Oxford Economics
Oxford Economics has tailored a unique service for HSBC which forecasts
bilateral trade for total exports/imports of goods, based on HSBC's own
analysis and forecasts of the world economy to generate a full bilateral
set of trade flows for total imports and exports of goods.
Oxford Economics produces a global report for HSBC, plus regional
reports and country specific reports on the following 23 countries: Hong
Kong, China, Australia, Indonesia, Malaysia, India, Singapore, Vietnam,
Bangladesh, Canada, USA, Brazil, Mexico, Argentina, UK, France, Turkey,
Germany, Poland, Ireland, UAE, Saudi Arabia, and Egypt.
About HSBC Commercial Banking
Commercial Banking, a division of HSBC Bank USA, N.A, together with the
other members of the HSBC Group, serve more than 3.5 million customers
worldwide, from small enterprises to large multinationals, in over 60
developed and emerging markets around the world. Whether it is working
capital, trade finance or payments and cash management solutions, we
provide the tools and expertise that businesses need to thrive. With a
heritage stretching back nearly 150 years, and a global network covering
three quarters of global commerce, it makes HSBC the world's leading
international trade and business bank.
For more information visit: www.hsbc.com/1/2/business-and-commercial
About HSBC Bank USA, N.A.
HSBC Bank USA, National Association, with total assets of $196bn as of
30 September 2012 (US GAAP), serves 3 million customers through retail
banking and wealth management, commercial banking, private banking,
asset management, and global banking and markets segments. It operates
more than 250 bank branches throughout the United States. There are over
165 in New York State as well as branches in: California; Connecticut;
Delaware; Washington, D.C.; Florida; Maryland; New Jersey; Pennsylvania;
Oregon; Virginia; and Washington State. HSBC Bank USA, N.A. is the
principal subsidiary of HSBC USA Inc., an indirect, wholly-owned
subsidiary of HSBC North America Holdings Inc. HSBC Bank USA, N.A. is a
member of the FDIC.
About HSBC Holdings plc
HSBC Holdings plc, the parent company of the HSBC Group, is
headquartered in London. The Group serves customers worldwide from
around 6,900 offices in over 80 countries and territories in Europe, the
Asia-Pacific region, North and Latin America, and the Middle East and
North Africa. With assets of US$2,721bn at 30 September 2012, the HSBC
Group is one of the world's largest banking and financial services
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