Monday, October 7, 2013

US Export Industry and the Effects of Demand

Even with the great migration of companies to other countries for manufacturing, the United States has remained one of the world's largest exporters of goods. However, over the 20 years of this migration, many of the America's leading exported goods have changed. As stated in New York Times article The Kitchen-Table Industrialists, "Such is the state of American industry that waste paper is among the top 10 exports to China, behind nuclear equipment but far ahead of traditional mainstays like iron and steel." As of 2012, Iron and steel were still major exports to Canada and Mexico, which make up 18.9% and 14% of U.S. exports respectively. 

U.S. exports are an interesting example in Forecasting. For example, futures in various domestically developed crops are monitored on the stock exchange. According to the Wall Street Journal,"U.S. wheat futures settled at a 12-month low Monday, pressured by uncertainty about export demand and declines in corn prices." The uncertainty in the amount exported can have a serious impact on production and an organization's entire supply chain network. From October 2008 to February 2009 U.S. Exports saw a dramatic decline in conjunction with the global economic decline. Surprisingly, just as countries like China and America had sharp reductions total exports, Australia continued on its ascent and didn't appear to feel an effect on exports until January 2009. 

Based on the items below that we exports to our largest international partners, how do you think the U.S. exports effect demand?

America’s exports to Canada amounted to $291.7 billion or 18.9% of overall US exports.

  1. Vehicles: $50.1 billion 
  2. Machines, engines, pumps: $46.9 billion
  3. Electronic equipment: $27.2 billion 
  4. Oil: $18.4 billion
  5. Plastics: $12.9 billion
  6. Medical, technical equipment: $9.6 billion
  7. Iron or steel products: $7.9 billion
  8. Iron and steel: $6.6 billion
  9. Furniture, lighting, signs: $5.4 billion
10. Aircraft, spacecraft: $5.3 billion

America’s exports to Mexico amounted to $216.3 billion or 14% of overall US exports.

  1. Machines, engines, pumps: $36 billion
  2. Electronic equipment: $34 billion
  3. Oil: $23.8 billion
  4. Vehicles: $20.4 billion
  5. Plastics: $13.9 billion
  6. Organic chemicals: $7 billion
  7. Medical, technical equipment: $5.4 billion 
  8. Iron or steel products: $4.6 billion
  9. Cereals: $4.5 billion
10. Iron and steel: $4.2 billion

America’s exports to France amounted to $32 billion or 2.1% of overall US exports.

  1. Aircraft, spacecraft: $8.4 billion
  2. Oil: $4.4 billion 
  3. Machines, engines, pumps: $2.8 billion
  4. Medical, technical equipment: $2.2 billion
  5. Electronic equipment: $2 billion
  6. Pharmaceuticals: $1.2 billion 
  7. Organic chemicals: $1.7 billion
  8. Gems, precious metals, coins: $879 million
  9. Other chemical goods: $856.9 million 
10. Vehicles: $685.2 million 

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