GDP (Million $) – 26.949.643 (IMF, 2023)
GDP Per Capita ($) – 80.412
Growth Rate (%) – 2,09
Total Area (km2) – 9.833.520
Population – 335.143.000
Capital – Washington DC
In the US economy, which is shown as the largest example of free market economies worldwide, a large part of production and services are consumed and provided by the private sector, and there is no other economy in the world where the weight of the public sector is so low.
The first of the two basic elements that play a structural role in the American economy is its rich natural resources and the other is its qualified workforce. The USA has a very suitable environment for economic growth with its fertile soil, rich mineral deposits, favorable climatic conditions and other natural resources. The USA also attaches great importance to the training of an “adaptable and skilled” workforce in the field of communication and information technologies. Bringing talented and intelligent young people educated in science and technology into the US economy, which is called "brain drain" all over the world, is seen as a key tool in solving the problems.
According to current prices, GDP, which is estimated to be 27 trillion dollars in 2023, is expected to be 28 trillion dollars in 2024. Also, the USA is the world's 1st largest economy among 196 countries as of 2023.
GDP, which is expected to grow by 2.1% at constant prices in 2023, is estimated to grow by 1.5% in 2024.
The USA is the world's largest goods importer with 3.3 trillion dollars of imports and the 2nd largest goods exporter after China with 2.0 trillion dollars of exports. The USA, which is the world's largest exporter and importer in services trade, is also the leader in total exports and imports (sum of services and goods trade).
In 2022, US exports increased by 17.6% and reached 2 trillion dollars. The main products exported in 2022 are; petroleum oils, crude oil, petroleum gases, automobiles, electronic integrated circuits, serum and vaccines, parts and components for road vehicles, gold, dosed drugs and soybeans. The main export countries are Canada, Mexico, China, Japan, England, Germany, Netherlands, S. Korea, Brazil and India. Türkiye ranks 26th with a share of 0.7%.
In 2022, US imports increased by 15% and reached 3.3 trillion dollars. The main products imported by the USA in 2022; crude oil, automobiles, telephone devices, computers, dosed drugs, parts and parts for road vehicles, petroleum oils, serum and vaccines, electronic integrated circuits and other furniture and their parts. The main import countries are China, Mexico, Canada, Japan, Germany, Vietnam, S. Korea, Taiwan, India and Ireland. Türkiye ranks 25th in the country's imports with a share of 0.6%.
MACHINERY INDUSTRY
The machinery sector, which constitutes 28.6% of the total imports of 3.2 trillion US dollars in 2022, ranks in the top two imports of the USA. The economic impact of machinery manufacturing extends throughout the U.S. economy. Machinery industries provide essential and highly sophisticated technology for many other manufacturing and service industries. Industrial process controls and other automation technologies enable end-users to maximize the productivity of their equipment. Sales of many types of machinery are accompanied by a variety of high-value services as well, including specialized architecture, engineering, and logistics.
Tens of thousands of companies manufacture machinery in the United States. A majority of these manufacturers are small and medium enterprises (SMEs), but there are also many large, public companies and iconic American brands that trade on a global scale. Machinery is manufactured in almost every state, but production is concentrated particularly in the industrial Midwest, California, and Texas.
Almost 1.1 million Americans are employed in the machinery manufacturing sector. These jobs are primarily in highly-skilled, well-compensated trades and professions. Leading employment categories include team assemblers, machinists, welders, tool-and-die makers, and mechanical and other engineers. Machinery manufacturing also supports the jobs of hundreds of thousands of Americans in a variety of other manufacturing and service industries.
45.8% of the machinery group imports, which amount to 928 billion USD, are realized by the states of California (190 billion USD), Texas (149 billion USD) and Illinois (86 billion USD). Turkey's exports in this sector are at the level of 2.2 billion US dollars. According to Trademap data for 2021, the USA ranks 4th among the countries that export the most machinery in the world, after China (1.4 trillion USD), Hong Kong (491 billion USD) and Germany (445 billion USD). Based on 2021 data, in the 84th and 85th chapters, the USA realizes 6.7% of world exports (World: 5.9 trillion USD) with exports of 395 billion USD.
AUTOMOTIVE INDUSTRY
After the agriculture and machinery sectors, the automotive sector is the third sector from which the USA imports the most. Imports worth 322 billion US dollars were realized in 2022, and US imports are concentrated in the states in the Northeast and Eastern regions, Texas in the South and California in the West (Michigan 75 billion US dollars, California 54 billion US dollars, Texas 38 billion US dollars US dollar). Turkey's exports to the USA were at the level of 1.4 billion US dollars (0.4% share) for the same year. In the vehicle and engine spare parts sector, US imports are 145 billion US dollars, and the total imports of Michigan, the capital of the automotive industry in the US, and the states of Ohio, Alabama, South Carolina and Tennessee, excluding Texas and California, are around 33.9 billion US dollars. The USA ranks 3rd among the top automotive exporting countries in the world, after Germany and Japan.
The U.S. has some of the biggest car manufacturers in the world. The likes of General Motors, Ford, and Chrysler were all founded and headquartered there. However, international brands such as Toyota, Hyundai, and Stellantis all have major operations in the U.S. but maintain their headquarters outside the country. There is another emerging player in the market: Tesla. With the growing adoption of electric vehicles and hybrid vehicles, Tesla has gained significant popularity with its audience.
In 2022, the U.S. automobile industry recorded sales for an estimated 13.75 million cars and light truck vehicles. The automotive industry accounts for 3% of the U.S. GDP.
In 2023, the total value of the U.S. car and auto manufacturing market stands at $104.1 billion. The automobile industry employs over 1.7 million people in total. Workers hold jobs in engineering, manufacturing, sales, and design. In March 2023, the average hourly pay of an automobile dealership employee was $25.76.
Electric and hybrid vehicles are already gaining popularity. S&P Global Mobility reported about 1.9 million electric vehicles on the road today. That number is expected to go up to 28.3 million by 2030.
Additionally, there are about 140,000 charging stations across the United States right now. And with the growing demand for electric vehicles, there is an imminent need to increase the number of charging stations.
CONSTRUCTION INDUSTRY
Construction is a major contributor to the U.S. economy. There were more than 919,000 construction establishments in the U.S. in the 1st quarter of 2023. The industry employs 8.0 million employees and creates nearly $2.1 trillion worth of structures each year. Construction is one of the largest customers for manufacturing, mining and a variety of services.
The largest and fastest-growing category in 2023, by far, was manufacturing construction, which soared by $81 billion, or 61 percent, from December 2022 to December 2023. Nearly $68 billion of this increase came from the subcategory the Census Bureau labels as “computer/electronic/electrical manufacturing”. That covers numerous semiconductor-fabrication plants, or “fabs”. Factories in Arizona, Texas and Ohio that broke ground before 2022 are still under construction. Plants in Kansas, Idaho and Utah have joined them.
Despite near-term challenges in certain construction sectors, medium to long term growth story in United States remains intact. The construction industry in United States is expected to grow steadily over the next four quarters. The growth momentum is expected to continue over the forecast period, recording a CAGR of 5.3% during 2023-2027. The construction output in the country is expected to reach USD 1,749,898.1 million by 2027.
AEROSPACE INDUSTRY
In 2023, the aerospace and defense (A&D) industry witnessed a revival in product demand. In the aerospace sector, domestic commercial aviation revenue passenger kilometers surpassed prepandemic levels in most countries. This surge in air travel led to an increased demand for new aircraft and aftermarket products and services. In the US defense sector, new geopolitical challenges, along with the prioritization of modernizing the military, drove robust demand in 2023, particularly for weapons and next-generation capabilities.
The demand for A&D products and services is expected to continue also in 2024. On the commercial side, travel is likely to continue its upward trajectory. In the defense segment, demand for products is expected to continue to increase as geopolitical instability grows. Furthermore, companies in emerging markets, such as advanced air mobility, are expected to advance testing and certification as they prepare for commercialization.
The aerospace sector, one of the largest and most powerful industries in the United States, supplies five markets: military aircraft, missiles, space, commercial airliners, and general aviation. The U.S. aerospace sector is considered the largest in the world and is the main supplier of both military and civil aerospace hardware to the rest of the world.
This sector directly employs about 509,000 workers in scientific and technical jobs and supports more than 700,000 jobs in related fields. Because of the great emphasis on research and development (R&D), about 25% of those who work in aerospace are engineers, scientists, and technicians. Aviation is one of the fastest-growing industries in the United States, and it has increased yearly at the rate of at least 14%.
FASTENER INDUSTRY
The U.S. industrial fastener market size exhibited steady growth in 2023 with revenue up 3.5% year-over-year. The market revenue was US$ 13.5 billion in 2019 and increased to US$ 15.5 billion in 2023.
Revenue from the sales of industrial fasteners in the United States has been projected at US$ 16.2 billion for 2024 and is forecasted to increase at a CAGR of 4.7% to end up at US$ 25.4 billion by 2034.
The U.S. is the fifth-largest importing country for fasteners. Rising domestic demand in the U.S. is creating a huge opportunity for industrial fastener manufacturers. These fasteners play a crucial role, especially in automotive and aircraft manufacturing.
According to the International Trade Administration, the U.S. is the second-largest vehicle producer. As such, the huge automotive sector in the country will drive the market for industrial fasteners over the coming years.
The U.S. industrial fasteners industry is highly competitive owing to the presence of a large number of manufacturers. Although fasteners account for a very tiny portion of total costs in the automotive or electrical & electronics industries, their prices play a significant impact in calculating replacement cost and replacement duration as they are consumed in large numbers.
Competition faced by the suppliers is primarily due to a large number of players across the U.S. To preserve their dominance in the industrial fasteners market, prominent suppliers are working on obtaining optimal operational costs, maximizing the efficiency of production facilities, achieving shorter lead times, and improving product quality.
In June 2023, Fastener Supply announced the acquisition of Northern States Supply to gain more market share. In addition, the acquisition is also expected to help the company provide high-quality products and services to various end-users such as automotive, construction, and industrial machinery. Some prominent players in the U.S. industrial fasteners market include: Arconic Fastening Systems and Rings, Hilti Corporation, Illinois Tool Works, Inc., Acument Global Technologies, Inc., ATF, Inc., MW Industries, Inc., Birmingham Fastener and Supply, Inc., SESCO Industries, Inc., Elgin Fastener Group LLC, Slidematic.
