USA Major Business Sectors

Transcription

1 USA Major Business Sectors Compiled by: Swiss Business Hub USA Washington D.C., May 2009 Overview and Trends The subprime crisis in the real estate business leading to the financial crisis resulted in a recession in the USA which affected the entire world. Real gross domestic product (GDP) declined around 6 percent in the fourth quarter of 2008 and in the first quarter of 2009 after declining 0.5 percent in the third quarter of 2008, according to estimates from the Bureau of Economic Analysis. The decrease in real GDP reflected a sharp downturn in exports, a continuing decline in consumer spending, a larger decrease in business investment, mainly in equipment and software, and a continuing decline in housing. In 2008, real GDP increased by 1.1 percent, compared with an increase of 2.0 percent in The slowdown in real GDP in 2008 primarily reflected a sharp deceleration in personal consumption expenditures, a downturn in equipment and software, and decelerations in exports and in state and local government spending that were partly offset by a sharp downturn in imports, an acceleration in federal government spending, and a smaller decrease in private inventory investment. In 2008, exports of goods and services increased by $197.2 billion to $1,843 billion, while the imports of goods and services increased by $144.6 billion to $2,520.1 billion resulting in a trade gap of $677.1 billion. In 2007, the trade gap was $700.3 billion. The unemployment rate rose from 5% at the end of 2007 to 8.9% in April The administration took several measures to fight the recession: the Stimulus Plan (American Recovery and Reinvestment Act ARRA) to support low income families through tax relief, the Troubled Asset Relief Program (TARP) to support the financial sector and to facilitate the flow of credit as well as the measures taken by the Federal Reserve. At this time, there are hopes that the government measures will be effective and that the economy will show signs of a rebound in the second half of The IMF estimates that the GDP will decrease at almost 3% in 2009 and that there will be no growth (0%) in In the meantime, the outlook for Swiss exports to the USA looks bleak. Download from: 1 / 9

2 Gross Domestic Product by Industry Period: 2007 % of GDP % Change % Change nominal Real GDP Billions USD Gross domestic product ,807.5 Private industries ,064.6 Agriculture, forestry, fishing, and hunting Mining Utilities Construction Manufacturing ,616.8 Durable goods Wood products Nonmetallic mineral products Primary metals Fabricated metal products Machinery Computer and electronic products Electrical equipment, appliances, and components Motor vehicles, bodies and trailers, and parts Other transportation equipment Furniture and related products Miscellaneous manufacturing Nondurable goods Food and beverage and tobacco products Textile mills and textile product mills Apparel and leather and allied products Paper products Printing and related support activities Petroleum and coal products Chemical products Plastics and rubber products Wholesale trade Retail trade Transportation and warehousing Download from: 2 / 9

3 Air transportation Rail transportation Water transportation Truck transportation Transit and ground passenger transportation Pipeline transportation Other transportation and support activities Warehousing and storage Information Finance, insurance, real estate, rental, and leasing ,811.2 Finance and insurance ,091.4 Federal Reserve banks, credit intermediation, and related activities Securities, commodity contracts, and investments Insurance carriers and related activities Funds, trusts, and other financial vehicles Real estate and rental and leasing ,719.8 Professional and business services ,694.1 Professional, scientific, and technical services ,007.8 Management of companies and enterprises Administrative and waste management services Educational services, health care, and social assistance ,087.0 Educational services Health care and social assistance Arts, entertainment, recreation, accommodation, and food services Arts, entertainment, and recreation Accommodation and food services Accommodation Food services and drinking places Other services, except government Government ,742.9 Federal State and local ,188.9 Source: Download from: 3 / 9

4 Imports Period: 2008 Business Sector % of imports change from previous year value in USD mill. Main Countries of Origin Imports of Goods and Services ,932 2,516,915 Canada, China, Mexico, Japan, Goods ,343 2,112,196 Germany, United Food, feeds, and beverages 3.5 7,323 8,006 Kingdom, Saudi Arabia, South Korea, Industrial supplies and , ,282 Venezuela, France materials Capital goods, except , ,895 (Switzerland: # 27) automotive Automotive vehicles, , ,546 parts, and engines Consumer goods , ,266 Adjustments 2.7 3,333 68,202 Services , ,719 Travel 3.2 3,833 80,000 Passenger fares 1.3 3,943 32,429 Other transportation 2.9 4,790 71,840 Royalties and license fees 1.1 1,420 26,468 Other private services 6.1 8, ,044 Direct defense expenditures 1.5 3,722 36,542 U.S. Government misc ,396 services Source: Download from: 4 / 9

5 Exports Period: 2008 Business Sector % of exports change from previous year value in USD mill. Main Destination Countries Exports of goods and services ,059 1,835,785 Canada, Mexico, China, Japan, Ger- Goods ,890 1,291,371 many, United Kingdom, Nether- Foods, feeds, and beverages , ,419 lands, South Korea, Singapore, Belgium Industrial supplies and , ,302 materials Capital goods, except automotive , ,477 (Switzerland: #14) Automotive vehicles, ,935 parts, and engines Consumer goods , ,185 Adjustments ,777 44,053 Services , ,414 Travel , ,469 Passenger fares 1.7 6,052 31,638 Other transportation 3.2 7,821 59,407 Royalties and license fees 4.8 5,598 88,212 Other private services , ,334 Transfers under US military ,115 sales contracts U.S. Government misc ,239 services Source: Promotion Opportunities The Swiss Business Hub USA and osec, Business Network Switzerland, coordinated the participation by numerous Swiss companies in the NANO, BIO as well as Medical Design and Manufacturing MD&M (West) Trade Shows. Those conferences and trade shows provide excellent promotion opportunities for Swiss exporters. Download from: 5 / 9

6 Further Information and Links Automotive: Automobiles represent the country s largest manufacturing base. Almost 4% of U.S. gross domestic product is auto-related. One out of every 10 U.S. jobs, or about 13 million, is auto-related, and auto workers receive $335 billion annually in compensation. The economic turmoil is affecting auto consumers and communities in many ways. February sales alone dropped 41% from a year ago to their lowest level since About 1,000 dealerships have shut down over the past year, which forced over 50,000 Americans out of work. Chrysler was forced into bankruptcy in early May and GM is struggling to survive. The automakers are frantically restructuring and competing to produce more fuel-efficient and more environmentally-friendly cars. In 2009, automakers are offering 25 models of hybrids, and new plug-in hybrids are being developed. (Source: For more information, please refer to The U.S. Market for Automotive Suppliers: Opportunities and Challenges for Swiss Companies : Contact: Alliance of Automobile Manufacturers 1401 Eye St., N.W., # 900 Washington, DC Tel. (202) Fax (202) Website: Battery Council International 401 North Michigan Ave, 24th Floor Chicago, IL Tel. (312) Fax (312) Medtech: The U.S. market for medical technology is the largest and most sophisticated in the world with about $86.5 billion in sales in It represents about half of the world market, while the European market represents about 25%. The U.S. population is aging. On average, older people are wealthier than younger people and they are spending more money on healthcare. The sharp increase in healthcare costs and the growing demand caused by an aging population exert great pressure on both insurers and healthcare providers. Healthcare providers will have to reduce costs, among other measures, by increasing productivity. This represents an important opportunity for the innovation-driven Swiss industry. For more information, please refer to The U.S. Market for Medical Devices: Opportunities and Challenges for Swiss Companies : Download from: 6 / 9

7 Contact: Advanced Medical Technology Association 701 Pennsylvania Ave., N.W., Suite 800 Washington, D.C Tel. (202) Fax (202) Website: Centers for Disease Control and Prevention 1600 Clifton Rd. Atlanta, GA Tel. (800) Website: U.S. Food and Drug Administration New Hampshire Ave. Silver Spring, MD Tel. (888) Website: MD&M East Medical Design & Manufacturing June 8-11, 2009 Jacob K. Javits Convention Center New York, NY Website: MD&M West Medical Design & Manufacturing February 8-11, 2010 Anaheim Convention Center Anaheim, CA Website: Biotech The global biotechnology industry turned in another impressive performance in 2007 as companies attracted unprecedented attention from financial and strategic investors. In the USA, revenues amounted to $65.8 billion or 77% of global revenues of the sector. R&D expenses reached $25.8 billion in 2007 or 81% of global R&D expenses. The sector accounted for 134,600 employees in the USA. U.S. demographics and disease trends favor the development of the biotech industry. Older people consume a disproportionate amount of all pharmaceutical output. In addition, disease trends clearly indicate that heart disease, cancers, strokes, and chronic respiratory diseases will remain the top causes of death in the U.S. Obesity and diabetes will remain major health concerns. (Source: Ernst&Young: Beyond Borders, Global biotechnology report 2008 and Swiss Business Hub USA: The U.S. Market for Biotechnology, 2006) Download from: 7 / 9

8 Contact: BIO Biotechnology Industry Organization 1201 Maryland Ave., S.W., Suite 900 Washington, D.C Tel. (202) Fax (202) Website: BIO International Convention Atlanta, GA, May 18-21, 2009 Website: U.S. Food and Drug Administration New Hampshire Ave. Silver Spring, MD Tel. (888) Website: Food Based on figures published by the U.S. Department of Agriculture, total food expenditure for all food consumed in the U.S. was $1.1 trillion in 2007, a 5.4% increase from Spending on food away from home was 49% and spending for food at home was 51%. Nationwide concerns over rising health issues, obesity and diabetes in particular, are paving the road to healthier eating habits. Natural and organic foods have been the fastest growing segment in food retail. For more information, please refer to The U.S. Food Industry: Opportunities and Challenges for Swiss Companies : Contact: The Food Institute American Institute of Food Distribution One Broadway Elmwood Park, NJ Tel. (201) Website: The Food Marketing Institute (FMI) 2345 Crystal Drive, Suite 800 Arlington, VA Tel. (202) Fax (202) Website: U.S. Food and Drug Administration New Hampshire Ave. Silver Spring, MD Tel. (888) Website: Download from: 8 / 9

9 Energy In 2007, billion kwh were produced in U.S. power plants. Energy sources for the generation of electricity were coal (48.5%), natural gas (21.6%), nuclear (19.4%), and other renewables (2.5%). The Obama administration wants to promote alternative energy and wants the country to become the world s leading exporter of renewable energy. The American Recovery and Reinvestment Act included more than $60 billion in clean energy investments that are supposed to jump-start the economy and build clean energy jobs. On Earth Day 2009 (April 22), President Obama unveiled a program to develop the renewable energy projects on the waters of the Outer Continental Shelf that produce electricity from wind, wave, and ocean currents. Such programs will create new business opportunities in the energy sector. (Source: Contact U.S. Department of Energy 1000 Independence Ave., S.W. Washington, D.C Tel. (800) dial-doe Fax (202) Website: Solar Energy Industries Association SEIA th Street, N.W., Suite 510 Washington, D.C Tel. (202) Website: American Wind Energy Association AWEA 1501 M Street, N.W., Suite 1000 Washington, D.C Tel. (202) Fax (202) Website: Date: May 18, 2009 Author: Author s address: Urs Brönnimann Swiss Business Hub USA c/o Embassy of Switzerland 2900 Cathedral Ave., N.W. Washington, D.C Tel. (202) Fax (202) trade@eda.admin.ch Download from: 9 / 9