USA Major Business Sectors

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 2007. 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 2009. 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 2009. The IMF estimates that the GDP will decrease at almost 3% in 2009 and that there will be no growth (0%) in 2010. In the meantime, the outlook for Swiss exports to the USA looks bleak. Download from: www.osec.ch 1 / 9

Gross Domestic Product by Industry Period: 2007 % of GDP % Change % Change nominal Real GDP Billions USD Gross domestic product 100.0 4.8 2.0 13,807.5 Private industries 87.4 4.6 2.1 12,064.6 Agriculture, forestry, fishing, and hunting 1.2 38.1 6.9 167.9 Mining 2.0 4.8 0.1 275.0 Utilities 2.0 3.2 1.2 281.4 Construction 4.4-5.4-11.2 610.8 Manufacturing 11.7 2.5 2.9 1,616.8 Durable goods 6.7 2.5 4.8 922.0 Wood products 0.2-7.1 6.1 31.4 Nonmetallic mineral products 0.4-6.2-6.3 54.4 Primary metals 0.5-1.6-2.6 62.4 Fabricated metal products 1.0 6.7 2.8 140.4 Machinery 0.9 5.2 3.5 125.7 Computer and electronic products 1.1 1.3 19.9 146.3 Electrical equipment, appliances, and components 0.4 5.6-0.3 58.4 Motor vehicles, bodies and trailers, and parts 0.7 0.2 4.7 98.5 Other transportation equipment 0.7 9.6 8.6 96.1 Furniture and related products 0.3-3.3-6.1 35.4 Miscellaneous manufacturing 0.5 3.1 2.5 73.0 Nondurable goods 5.0 2.5 0.4 694.9 Food and beverage and tobacco products 1.3 9.1 9.0 174.7 Textile mills and textile product mills 0.1-8.8-7.2 19.8 Apparel and leather and allied products 0.1-3.6-4.3 16.1 Paper products 0.4-10.9-11.4 50.7 Printing and related support activities 0.3 0.8 1.8 47.9 Petroleum and coal products 0.5-4.3-17.5 70.4 Chemical products 1.8 5.6 3.3 249.2 Plastics and rubber products 0.5 1.2 3.7 66.2 Wholesale trade 5.8 4.2 0.8 805.3 Retail trade 6.5 3 4.5 892.5 Transportation and warehousing 2.9 5.1 2.5 407.2 Download from: www.osec.ch 2 / 9

Air transportation 0.4 9.7 10.7 55.2 Rail transportation 0.3 3.8-0.2 40.5 Water transportation 0.1-0.9 11.1 10.7 Truck transportation 0.9 4.2 3.4 127.6 Transit and ground passenger transportation 0.1 5.5 3.3 19.3 Pipeline transportation 0.1 5.3 1.0 12.0 Other transportation and support activities 0.7 3.8-2.9 101.5 Warehousing and storage 0.3 8 4.0 40.3 Information 4.2 4.8 8.1 586.3 Finance, insurance, real estate, rental, and leasing 20.4 4.7 2.0 2,811.2 Finance and insurance 7.9 2.9 0.1 1,091.4 Federal Reserve banks, credit intermediation, and related 3.7-2.8-4.9 504.4 activities Securities, commodity contracts, and investments 1.7 12.1 8.4 237.5 Insurance carriers and related activities 2.4 6.6 3.9 332.5 Funds, trusts, and other financial vehicles 0.1-8.1-22.4 17.0 Real estate and rental and leasing 12.5 5.8 3.3 1,719.8 Professional and business services 12.3 8.2 4.3 1,694.1 Professional, scientific, and technical services 7.3 8.3 7.1 1,007.8 Management of companies and enterprises 2.0 9.9-2.2 271.3 Administrative and waste management services 3.0 6.7 2.1 415.1 Educational services, health care, and social assistance 7.9 6 2.1 1,087.0 Educational services 0.9 6.9 3.2 129.5 Health care and social assistance 6.9 5.8 1.9 957.4 Arts, entertainment, recreation, accommodation, and food services 3.7 5.9 1.7 513.3 Arts, entertainment, and recreation 1.0 5.4 1.9 133.8 Accommodation and food services 2.7 6 1.7 379.5 Accommodation 0.9 6.3 0.8 120.9 Food services and drinking places 1.9 5.9 2.1 258.6 Other services, except government 2.3 5.4 0.4 315.6 Government 12.6 5.7 1.3 1,742.9 Federal 4.0 5 0.6 554.0 State and local 8.6 6 1.7 1,188.9 Source: http://www.bea.gov/industry/index.htm Download from: www.osec.ch 3 / 9

Imports Period: 2008 Business Sector % of imports change from previous year value in USD mill. Main Countries of Origin Imports of Goods and Services 100 170,932 2,516,915 Canada, China, Mexico, Japan, Goods 83.9 144,343 2,112,196 Germany, United Food, feeds, and beverages 3.5 7,323 8,006 Kingdom, Saudi Arabia, South Korea, Industrial supplies and 31.1 142,930 782,282 Venezuela, France materials Capital goods, except 18.0 9,407 453,895 (Switzerland: # 27) automotive Automotive vehicles, 9.3-25,374 233,546 parts, and engines Consumer goods 19.3 6,725 485,266 Adjustments 2.7 3,333 68,202 Services 16.1 26,589 404,719 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 8,669 153,044 Direct defense expenditures 1.5 3,722 36,542 U.S. Government misc. 0.2 212 4,396 services Source: http://www.bea.gov/newsreleases/international/trade/tradannnewsrelease.htm Download from: www.osec.ch 4 / 9

Exports Period: 2008 Business Sector % of exports change from previous year value in USD mill. Main Destination Countries Exports of goods and services 100 190,059 1,835,785 Canada, Mexico, China, Japan, Ger- Goods 70.3 142,890 1,291,371 many, United Kingdom, Nether- Foods, feeds, and beverages 5.9 24,155 108,419 lands, South Korea, Singapore, Belgium Industrial supplies and 21.1 70,941 387,302 materials Capital goods, except automotive 25.6 22,044 469,477 (Switzerland: #14) Automotive vehicles, 6.6-110 120,935 parts, and engines Consumer goods 8.8 15,083 161,185 Adjustments 2.4 10,777 44,053 Services 29.7 47,169 544,414 Travel 6.0 13,757 110,469 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 13.0 14,851 238,334 Transfers under US military 0.8-937 15,115 sales contracts U.S. Government misc. 0.1 27 1,239 services Source: http://www.bea.gov/newsreleases/international/trade/tradannnewsrelease.htm 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: www.osec.ch 5 / 9

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 1982. 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: http://www.autoalliance.org/index.cfm?objectid=3c965c83-1d09-317f-bb1f11ef5d59e091#top) For more information, please refer to The U.S. Market for Automotive Suppliers: Opportunities and Challenges for Swiss Companies : http://www.osec.ch/internet/osec/de/home/export/countries/us/export/economic_report.html Contact: Alliance of Automobile Manufacturers 1401 Eye St., N.W., # 900 Washington, DC 20005 Tel. (202) 326-5500 Fax (202) 326-5598 Website: www.autoalliance.org Battery Council International 401 North Michigan Ave, 24th Floor Chicago, IL 60611-4267 Tel. (312) 644-6610 Fax (312) 527-6640 www.batterycouncil.org 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 2008. 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 : http://www.osec.ch/internet/osec/de/home/export/countries/us/export/economic_report.html Download from: www.osec.ch 6 / 9

Contact: Advanced Medical Technology Association 701 Pennsylvania Ave., N.W., Suite 800 Washington, D.C. 20004-2654 Tel. (202) 783-8700 Fax (202) 783-8750 Website: www.advamed.org Centers for Disease Control and Prevention 1600 Clifton Rd. Atlanta, GA 30333 Tel. (800) 232-4636 Website: www.cdc.gov U.S. Food and Drug Administration 10903 New Hampshire Ave. Silver Spring, MD 20903 Tel. (888) 463-6332 Website: www.fda.gov MD&M East Medical Design & Manufacturing June 8-11, 2009 Jacob K. Javits Convention Center New York, NY Website: www.devicelink.com/expo/east09 MD&M West Medical Design & Manufacturing February 8-11, 2010 Anaheim Convention Center Anaheim, CA Website: www.devicelink.com/expo/west09 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: www.osec.ch 7 / 9

Contact: BIO Biotechnology Industry Organization 1201 Maryland Ave., S.W., Suite 900 Washington, D.C. 20024 Tel. (202) 962-9200 Fax (202) 488-6301 Website: www.bio.org BIO International Convention Atlanta, GA, May 18-21, 2009 Website: www.convention.bio.org U.S. Food and Drug Administration 10903 New Hampshire Ave. Silver Spring, MD 20903 Tel. (888) 463-6332 Website: www.fda.gov 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 2006. 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 : http://www.osec.ch/internet/osec/de/home/export/countries/us/export/economic_report.html Contact: The Food Institute American Institute of Food Distribution One Broadway Elmwood Park, NJ 07407 Tel. (201) 791-5570 Website: www.foodinstitute.com The Food Marketing Institute (FMI) 2345 Crystal Drive, Suite 800 Arlington, VA 22202 Tel. (202) 452-8444 Fax (202) 429-4519 Website: www.fmi.org U.S. Food and Drug Administration 10903 New Hampshire Ave. Silver Spring, MD 20903 Tel. (888) 463-6332 Website: www.fda.gov Download from: www.osec.ch 8 / 9

Energy In 2007, 4.157 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: http://www.eia.doe.gov/cneaf/electricity/epa/figes1.html http://www.whitehouse.gov/issues/energy_and_environment/) Contact U.S. Department of Energy 1000 Independence Ave., S.W. Washington, D.C. 20585 Tel. (800) dial-doe Fax (202) 586-4403 Website: www.energy.gov Solar Energy Industries Association SEIA 805 15th Street, N.W., Suite 510 Washington, D.C. 20005 Tel. (202) 682-0556 Website: www.seia.org American Wind Energy Association AWEA 1501 M Street, N.W., Suite 1000 Washington, D.C. 20005 Tel. (202) 383-2500 Fax (202) 383-2505 Website: www.awea.org 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. 20008 Tel. (202) 745-7900 Fax (202) 387-2564 E-mail: trade@eda.admin.ch Download from: www.osec.ch 9 / 9