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 the report.
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 for HSBC.
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.