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USA:Machinery exports up in 2004 |
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2005-3-21
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The year 2004 was good for US machinery producers, for a change recorded 16 percent increase in machinery shipments, to $294 billion.
With domestic economy expanding, corporates ringing in profits, prevailing attractive interest rates , the “bonus depreciation” provisions of the 2001 and 2003 tax bills, matched up with overseas sales. Domestic spending on machinery and equipment also rose 16 percent, to about $296 billion. US manufacturers saw their domestic sales rise by 13 percent, to $201.6 billion, while sales of imported machinery jumped 22 percent, to $94.4 billion. Imports captured 32 percent of the domestic market last year.
However, it was exports that played a larger role in the rebound of the machinery industry last year—increasing 22 percent, to $92.7 billion. Exports accounted for 31 percent of US machinery sales. Sales to the top-ten export markets—Canada, Mexico, Japan, China, Taiwan, United Kingdom, South Korea, Germany, Singapore, and Australia—represented 66.5 percent of total US exports and totaled $61.5 billion, an increase of almost 24 percent from the previous year.
Surprisingly, the United States'' two largest trading partners, Canada and Mexico, did not lead the pack in terms of export market growth. Machinery sales to Canada and Mexico increased only 11 percent and 18 percent, respectively, tallying $30.5 billion. The United Kingdom and Germany had similar increases, with machinery exports rising 10 percent and 12 percent, respectively. But Australia, number ten on the list of major US trading partners, was the shining star last year, registering a 40 percent-plus jump. Indeed, exports to Asia were particularly strong. Japan remained the largest market in the region while China closed in, with sales around $5.0 billion for both markets. US machinery exports to Taiwan, South Korea, and Singapore also surged ahead, totaling $11.1 billion. Exports to these five countries represented 23 percent of all overseas machinery sales, up from around 18 percent in 2003.
Over the next few years, Global Insight expects to see some further weakening of the dollar, as well as decent growth in key foreign markets, which should help US exports of machinery and equipment gain additional ground. Still, we are unlikely to see anything approaching a repeat of last year''s dramatic export gains to Asia and Australia.
Moreover, no other major market should step up to the plate and fill the void. With this as a backdrop, look for the growth rate in US machinery exports to taper off considerably from last year''s 20 percent-plus pace. |
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| GLOBAL INSIGHT |
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