With many recent shifts in the global economy, American exporters are left wondering what is in store in the New Year. Fortunately, there are many exporting opportunities on the horizon.
In this article, we will discuss economic prospects and exporting opportunities in the United States for 2023. We’ll also review a few major exports in the U.S. for this coming year. To wrap things up, we will discuss how a B2B e-commerce platform can help wholesalers explore foreign markets.
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Like many counties, the United States has experienced a lot of economic evolution since the start of the pandemic.
The American economy has seen many ups and downs, and many predict that there will be a recession soon. Fortunately, the United States government has stepped in to alleviate some of the economic distress in hopes of avoiding an unfavorable outcome.
Here are a few current indicators that U.S. exporters should be aware of to develop a better understanding of the current state of the American economy.
The United States has seen significant inflation in the past two years. From gas prices to groceries, Americans have seen the cost of living creep up at a rate that is higher than what is considered healthy.
Fortunately, inflation is expected to slow to 3.4% in 2023, which is less than half of the 7.7% inflation the United States saw in 2022.1
In September 2022, the U.S. Federal Reserve announced that it was increasing the federal funds rate in order to combat inflation.
What this does is raise interest rates which essentially increases the cost of borrowing money. The idea is that higher interest rates reduce the circulation of money and bring down aggregate demand, thus lowering the prices of many things in the market.2
As you can deduce from the positive forecast for inflation in 2023, economists seem confident in the effectiveness of this move.
Although the Fed rate is designed to have a direct impact on the American economy, it has a global effect. That is because the U.S. dollar (USD) is considered the global currency by many organizations and institutions.
We’ve already seen the value of the USD increase significantly, in some cases achieving a record strength against other global currencies.3
This is very important for American exporters to keep in mind because it means that some of their foreign trade partners’ currencies will not go as far as they did before. We will talk more about global demand trends later on in this article.
The gross domestic product (GDP) in the United States has grown considerably in recent years. However, economists predict that this growth will slow considerably in 2023.4
The growth of the GDP is a quantification of economic health, so the slowing of the growth may strike some traders as problematic. However, this should not discourage exporters, but it is certainly something they should be aware of.
Although the American economy is currently experiencing some ups and downs, there are several factors at play that are creating exporting opportunities for the United States. These include growth in international trade, a thriving B2B e-commerce market, a rising global demand, and favorable international trade parties.
Let’s take a moment to explore each of these opportunities in more detail.
As we’ve discussed, the U.S. economy has fluctuated significantly in recent years and will likely continue to fluctuate into 2023. Throughout the uncertainty of the past few years, e-commerce has proven itself valuable time and time again. In the United States, B2B e-commerce has been particularly significant.
The B2B e-commerce market in the United States is absolutely booming. In fact, it is forecasted to reach US $2 trillion in 2023 and US $3 trillion in the next five years.5 Considering the entire B2B industry in the United States is worth US $16.273 trillion, there is still so much room for growth in the online sector.6
The bulk of the American B2B e-commerce market is focused on four industries: groceries, electronics, vehicles, and vehicle parts.7 There is a significant overlap between these industries and the biggest American exports, but we will dive further into the industries that are most relevant to exporters later on in this post.
Despite the possible challenges presented by the current economic landscape, the United States is on track to $2.05 trillion in exports by the end of 2022. That is a 16.9% year-over-year increase.8 With that sort of growth in mind, American wholesalers are wise to explore options in foreign markets.
Some of the top ten trade partners of the United States include China, Canada, Mexico, Japan, Germany, South Korea, the United Kingdom, France, and India. Some other rising partners to consider are Italy, Brazil, Switzerland, Ireland, and Vietnam.9
Although these markets are amongst the most popular, it is worth exploring less popular partners, as well. For example, laying the foundation for trade with nations that are on the brink of economic growth can pay off in the long run.
The pandemic brought demand shifts, supply chain disruptions, and other disruptions that ultimately caused a global rise in demand in the post-pandemic era. The growth in global demand has been an expected next step after pushing through the bottlenecks caused by the pandemic.
Although global demand has trended upwards in the post-pandemic era, it is important to keep in mind the points we discussed before about the strengthening of the USD and its effects on global currency values.
Nations whose currencies have weakened compared to the U.S. dollar may have a lesser demand for American goods in the short-term future. This is because American products have become more expensive in their local currencies.
Favorable trade policies are also creating opportunities for American exporters.
In fact, the United States is currently a partner in free trade agreements (FTAs) that span across twenty different nations.10 The United States is also part of dozens of Trade and Investment Framework Agreements (TIFAs).11
Each of these alliances, partnerships, and treaties opens more doors for exporters in the United States to do business with organizations in other countries.
The United States has many significant exports, but there are some major B2B e-commerce exports on the rise. Here are a few major U.S. exports to consider as we move into 2023.12
Mineral fuels are currently the number one export from the United States. The American mineral fuels exports are worth US $239.8 billion, which accounts for 13.7% of the nation’s total exports. This includes petroleum oils, petroleum gasses, coal, other carbon products, and more.13
The mineral fuels export industry is currently particularly valuable from a global perspective since Europe is currently experiencing an energy crisis, and rising energy prices have affected B2B trade on a global scale. As these two situations play out, the demand for American mineral fuels could very likely increase.
Machinery, including computers, comes in as a close second to mineral fuels. This industry makes up 11.9% of the United States’ total exports, with a value of US $209.3 billion.14 The United States is among the top ten machinery exporters in the entire world.15
The top buyers of American machinery exports are Canada, the EU, Mexico, China, and the United Kingdom.
Electrical equipment is another major export from the United States, bringing in US $185.4 billion. This accounts for 10.6% of U.S. exports.16
The top buyers of electrical machinery and equipment in the U.S. are Mexico, Canada, China, Japan, and Germany. The United States had an increase of 49.7% in electrical equipment exports to China this year, which is quite significant.17
Vehicles account for 7% of American exports, with a market value of US $122.2 billion.18
Like machinery, the top destinations of U.S. vehicle exports are Canada, the EU, Mexico, China, and the United Kingdom.19
The United States is a major exporter of medical apparatus, coming in second to Sweden as the top medical supplier in the world.20 This includes both optical and technical apparatus, as well.
The medical apparatus industry is expected to reach an export market value of US $106.9 billion next year.21
This is a particularly impressive feat since medical technology is highly tariffed by many countries throughout the world. Being able to break through the confines of trade regulation speaks highly of the American medical industry.
A B2B e-commerce platform, like Alibaba.com, is a great tool for those who want to grow their wholesale businesses or expand into a foreign market.
Alibaba.com offers all the tools B2B sellers need to find buyers both near and far. These include Trade Assurance, customizable Minisites, product promotion with ads, smart listing tools, and more.
Open a seller account on Alibaba.com to expand your exporting business in no time at all.
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