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Top Markets for U.S. Exports in Design and Construction Today’s Agenda. Trends/Numbers Market Growth Challenges Barriers to Exporting BUILD Act of 2018 Opportunities in China, Canada, and Mexico Assistance from the U.S. Commercial Service Contact wendy.d.peebles@census.gov
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Top Markets for U.S. Exports in Design and ConstructionToday’s Agenda • Trends/Numbers • Market Growth • Challenges • Barriers to Exporting • BUILD Act of 2018 • Opportunities in China, Canada, and Mexico • Assistance from the U.S. Commercial Service Contact wendy.d.peebles@census.gov www.census.gov/foreign-trade (U.S. Census Bureau-Export Trade inquiries) Contact Cody.Dietrich@trade.gov or visit www.export.gov
Trends/Numbers • IBISWorld reports that revenues in the global architecture services market increased through the entire 2011-16 period. • global architecture industry, revenues rose by 2.9 percent to $213.2 billion in 2016. • American firms accounted for the largest share of international design revenue in 2016 at 30.8 percent. • In 2016 U.S. cross border exports of Architecture and engineering services totaled $11.7 Billion Dollars, while imports were valued at $7.2 Billion Dollars
Market Growth • Construction output across the globe is expected to grow 85 percent by 2030, creating a $15.5trillion market by that date. • Rate of worldwide construction growth, projected at 3.9 percent per year to 2030, outpaces that of projected global GDP growth by more than 1 percent. • Nearly all countries across the globe are experiencing increasing urbanization. This global urbanization drives demand for both new buildings and reconstruction of existing building. • Drives an initiative to build “greener,” more sustainable buildings that conserve energy, water and other resources while supporting occupant safety, health and productivity.
Challenges • In non-FTA markets, tariffs remain a consistent barrier for all seven subsectors. • U.S. industry reports standards and conformity assessment issues (certification, inspection, sampling, testing and accreditation) as the most significant non-tariff barriers to trade for the building products sector. • U.S. exporters have reported instances in some international markets of counterfeit brand labels on building products as well as false performance claims on product labels.
Barriers to Infrastructure Exports to Africa • In Africa, spending on infrastructure falls $30 to $48 billion short of estimates of the spending needed for sustained inclusive economic growth. • Two-thirds of Africans lack access to electricity. A similar proportion lacks access to improved sanitation. • In Asia, service coverage is far from universal, but there are no reliable estimates of the gap in financing for infrastructure for the region as a whole. • In India, the estimated gap between investments needed to reach targets for growth and access, and identified financing sources is $26 billion a year.
BUILD Act of 2018 • The BUILD Act of 2018 Replaces OPIC With a New Entity With Significantly Increased Resources and Expanded Capabilities. • The BUILD Act overhauls the Overseas Private Investment Corporation (“OPIC”) and combines OPIC with the Development Credit Authority into a newly formed successor entity, the United States International Development Finance Corporation (“IDFC”). • The legislation provides IDFC with the authority to incur a maximum contingent liability of $60 billion—more than twice OPIC’s total authorized exposure limit of $29 billion.
Opportunities in China • China is expected to maintain its position as the world’s largest construction market Urbanization trends drive the Chinese government’s emphasis on increasing green building within its construction sector • National New-type Urbanization Plan, which envisions 60 percent of China’s population living in cities by 2020. • New commercial building (office, hotel, retail) is a market segment where 55 percent of Chinese respondents expect to undertake green building. • China is looking to invest 1 trillion dollars. Currently there are 267 airports being built or designed, 257 green data centers, and 500 smart city projects.
Opportunities in Canada • Construction sector is valued at US$92.3 billion, accounting for approximately 7% of Canada’s GDP. • Employing over 1.4 million Canadians, the sector purchases goods and services from every region of the country and every segment of the economy. • Categories of construction: New Home Building and Renovation (single and multi-family); Heavy Industrial; Commercial and Institutional; and Civil Engineering. • Government’s plan to invest US$16.8 billion in green infrastructure. • Starting in 2018-19, US$15.5 billion will be provided for public transit infrastructure construction and rehabilitation.
Opportunities in Mexico • The incoming López Obrador Administration will continue to focus on development projects that will in turn stimulate demand for construction materials and services. • From housing and commercial building construction—such as September 2017 earthquake reconstruction and urban development in marginalized communities—to large infrastructure projects such as the New International Airport of Mexico City. • Development of the Isthmus of Tehuantepec, the “Maya Train” on the Yucatan Peninsula, rural roads, and various sector-specific developments in oil and gas production, refinery development, agricultural production, and mines.
The U.S. Commercial Service Your link to Global Markets A global network providing customized solutions enabling companies to sell U.S. made products and services internationally Company Questionnaire • Helps organize, manage and drive more comprehensive engagements Country Commercial Guides/ Top Markets Report • Market conditions, opportunities, regulations, and business customs Initial Market Check (IMC) • Evaluates sales potential of a client’s specific product or service Gold Key Service (GKS): • Arrange business meetings (5-7) - one or more days Single Company Promotion (SCP): • Support & official sponsorship in a specific market (Embassy - Consulate) International Company Profile (ICP): • Background report on individual, foreign firms Trade Events • International Buyer Program, Trade Fair Certification, and Trade Missions Commercial Diplomacy • Advocacy in Foreign Tenders: USG Engagement with overseas governments Contact cody.Dietrich@trade.gov or visit www.export.gov