March 05, 2013
Meet America’s top three partners for the next two decades: Canada, Mexico and China, as forecast by HSBC Global Connections. You should get acquainted with them as they will underpin the recovery of the global economy. You should also familiarize yourself with Industrial Machinery, the predicted main player of U.S. export and import trade in the near and long-term future.
Industrial Machinery, which can include automated systems for printing processes, pharmaceutical machinery and large power generating equipment, is on course to form 21% of US export growth between 2013 and 2015, a substantial slice of the export pie.
Why is this predicted?
Regarding US exports, HSBC notes, “High technological dynamism in the long run underpins America’s exports of high value-added goods to fast-growing emerging markets.” Value-added, the hot topic for manufacturers in markets experiencing growth, is the key incentive for installing an automated system. Automation offers the manufacturer the opportunity to reposition labor to carry out different tasks, allows processes to continue in lights-out environments and removes the possible risks to employees during potentially dangerous processes.
Machinery will also be heavily imported, forming 25% of U.S. imports from 2013 to 2015. Despite falling to 22% from 2016 and 2020, and 23% from 2021 to 2030, industrial machinery will remain a top driver of growth. The graph below, presenting a sector by sector breakdown shows how industrial machinery will fare between now and 2030.
The Financial Times supports the outline of imported and exported products shown here, stating, “The US would continue to see strong export growth in industries such as machinery, motor vehicles, aircraft and aerospace equipment, and computers, where technological innovation plays a significant role.”
Read more on HSBC Global Connections.
Read more on Industry Market Trends.
Read more on Financial Times.