Despite facing challenges at the domestic level along with a rapidly transforming global landscape, the U.S. economy is still the largest and most important in the world. The U.S. economy represents about 20% of total global output, and is still larger than that of China. Moreover, according to the IMF, the U.S. has the sixth highest per capita GDP (PPP). The U.S. economy features a highly-developed and technologically-advanced services sector, which accounts for about 80% of its output. The U.S. economy is dominated by services-oriented companies in areas such as technology, financial services, healthcare and retail. Large U.S. corporations also play a major role on the global stage, with more than a fifth of companies on the Fortune Global 500 coming from the United States. 

 

Even though the services sector is the main engine of the economy, the U.S. also has an important manufacturing base, which represents roughly 15% of output. The U.S. is the second largest manufacturer in the world and a leader in higher-value industries such as automobiles, aerospace, machinery, telecommunications and chemicals. Meanwhile, agriculture represents less than 2% of output. However, large amounts of arable land, advanced farming technology and generous government subsidies make the U.S. a net exporter of food and the largest agricultural exporting country in the world. 

 

The U.S. economy maintains its powerhouse status through a combination of characteristics. The country has access to abundant natural resources and a sophisticated physical infrastructure. It also has a large, well-educated and productive workforce. Moreover, the physical and human capital is fully leveraged in a free-market and business-oriented environment. The government and the people of the United States both contribute to this unique economic environment. The government provides political stability, a functional legal system, and a regulatory structure that allow the economy to flourish. The general population, including a diversity of immigrants, brings a solid work ethic, as well as a sense of entrepreneurship and risk taking to the mix. Economic growth in the United States is constantly being driven forward by ongoing innovation, research and development as well as capital investment. 

 

While the labor market has recovered significantly and employment has returned to pre-crisis levels, there is still widespread debate regarding the health of the U.S. economy. In addition, even though the worst effects of the recession are now fading, the economy still faces a variety of significant challenges going forward. Deteriorating infrastructure, wage stagnation, rising income inequality, elevated pension and medical costs, as well as large current account and government budget deficits, are all issues facing the US economy. 

 

 

 

The U.S. is the 2nd leading exporter of goods and services in the world and the number one leading importer. The U.S. has consistently run a trade deficit, mainly due to the dependence on foreign oil to meet its energy needs and high domestic demand for consumer goods produced abroad, however thanks to advances in domestic oil production, the energy gap is closing. The main trading partners of the U.S. are Canada, China, Mexico and Japan. Canada is the main destination for U.S. exports, whereas China is the main source of imports. 

 

The U.S. plays a major role in the international trade system and is generally seen as a proponent of reduced trade barriers and free trade agreements. The United States currently has more than a dozen free trade agreements in place. Among them are the North American Free Trade Agreement (NAFTA), which was created in conjunction with Canada and Mexico in 1994. The United States is also an active member of the World Trade Organization (WTO). 

 

 

Although the United States has lost some of its competitive edge in recent decades, material goods still represent two thirds of its total exports. The United States mainly exports high-value capital goods and manufactured products, including industrial machinery, airplanes, motor vehicles and chemicals. In 2015, the U.S. exported USD 1.510 trillion in goods. 

 

The United States is the world’s leading exporter of services. This includes financial and professional business services as well as other knowledge-intensive services. Travel, transportation and tourism services are also a major export. Services represent about one third of total exports. 

 

 

More 80% of total imports brought to the United States from abroad are goods. Roughly 15% of these imports are in the form crude oil, fuel oil and petroleum products. Industrial machinery, supplies and equipment represent another 15% of imported goods. Almost 25% of imported goods are capital goods, such as computers, computer accessories, electronics, medical equipment, and telecommunications equipment. Consumer goods represent another 25% of imported goods. Cellphones, pharmaceuticals, toys, household equipment, textiles, apparel, televisions, and footwear are the main types of consumer goods imported to the United States. An additional 15% of imported goods are automotive vehicles, parts, and engines. Food and beverages represent only about 5% of imported goods. Services represent only 20% of total imports, and are primarily financial services, as well as travel and transportation. 

 

 

U.S. manufacturing produces 18.2 percent of the world's goods. That's more than the entire economic output of Canada, Korea, or Mexico. But America's leadership position is threatened by high operating costs. That gives a competitive edge to other countries. First among these is China. Its low-cost factories manufacture 17.6 percent of the world's products.

 

In 1970, China was the world's fifth largest manufacturer. It took the No.1 spot in 2010, replacing the United States. Japan is third, at 10 percent. It's followed by Germany at 7 percent, South Korea at 4 percent, and India at 3 percent. China produces 20 percent of the world's goods, according to a Brookings Institute report. The United States produces 18 percent, and Japan produces 10 percent.

 

 

The United States is the world’s largest steel importer, according to the American Iron and Steel Institute, labor productivity has seen a five-fold increase since the early 1980s, going from an average of 10.1 man-hours per finished ton to an average of 1.9 man-hours per finished ton of steel in 2015. In addition, the North American steel industry is committed to the highest safety and health standards. Since 2005, U.S. steel producers have achieved a 70 percent reduction in both the total OSHA recordable injury and illness and lost workday case rates. 

 

Steel Production in the United States decreased to 6896 thousand tonnes in February from 7647 thousand tonnes in January of 2019. Steel Production in the United States averaged 7907.02 thousand tonnes from 1969 until 2019, reaching an all time high of 11951 thousand tonnes in May of 1973 and a record low of 3799 thousand tonnes in April of 2009.

 

The evolution of advanced high-strength steels (AHSS) continues to grow in application, notably in the automotive industry. New advanced steel grades are the lightweight automotive material that best addresses society’s need for reduced greenhouse gas emissions, without compromising safety, performance, or affordability. These new steel types are already being used to improve the performance of vehicles on the road and emerging grades will be increasingly employed. Each year, new car models are introduced using lighter-weight, higher-strength steel components that provide a cost-effective answer to the demand for increased safety and fuel economy. Studies show that AHSS steel grades are growing faster in new automotive applications than aluminum and plastic—steel’s main competitors.

 

 

Automakers drive the U.S. economy. 

 

Automakers and their suppliers are America’s largest manufacturing sector, responsible for 3% of America’s GDP. They are also America’s largest exporters. In fact, over the past five years, automakers have exported more than $692 billion in vehicles and parts – nearly $50 billion more than the next largest exporter (aerospace). Not only are they America’s largest exporters, they also buy hundreds of billions of dollars worth of American steel, glass, rubber, iron, and semiconductors each year.They are also among America’s largest investors in R&D. The auto sector ranks third out of the forty largest industries, on a global basis, in R&D spending.

 

U.S. auto sales have increased by more than 67% since the 2009 financial crisis (from 10.4 million to 17.4 million last year). CAR projects sales will exceed 16.8 million vehicles per year through 2025. Meanwhile, U.S. auto production has more than doubled during that same period (from 5.6 million vehicles in 2009 to 11.3 million vehicles in 2017). U.S. auto production is expected to exceed 11.5 million vehicles per year through 2021 – and reach 12 million by 2025. Automaker and auto supplier employment in the U.S. increased by nearly 50% from 2011 through 2017, adding nearly 130,000 U.S. jobs. 

 

 

 

 

U.S. aerospace manufacturers are very competitive internationally. In 2017, the industry contributed $143 billion in export sales to the U.S. economy. Its positive trade balance of nearly $85 billion that year was the largest trade surplus of any manufacturing industry, supporting high-wage jobs for hundreds of thousands of American workers. At the end of 2017, inward stock of foreign direct investment (FDI) into the U.S. aerospace manufacturing industry totaled more than $21 billion.

 

The U.S. aerospace industry is the largest in the world and offers a skilled and educated workforce, extensive distribution systems, diverse offerings, and strong support at the local and national level for policy and promotion. The U.S. aerospace industry directly employs about 485,000 workers in scientific and technical jobs across the nation and supports more than 700,000 jobs in related fields. Investment in the U.S. aerospace industry is facilitated by a large pool of well-trained machinists, aerospace engineers, and other highly-skilled workers with experience in the aerospace industry.

 

 

 

The United States is a leader in the production and supply of energy, and is one of the world’s largest energy consumers. U.S. energy companies produce oil, natural gas, coal, renewable fuels, as well as electricity from clean energy sources such as wind, solar, and nuclear power. U.S. energy companies further transmit, distribute, and store energy through complex infrastructure networks that are supported by emerging products and services such as smart grid technologies. Growing consumer demand and world class innovation – combined with a competitive workforce and supply chain capable of building, installing, and servicing all energy technologies – make the United States one of the world’s most attractive markets with total investment in the U.S. energy sector at $276 billion in 2016 (the second-largest in the world).

 

Sources: Focus-economics, Bureau of Economic Analysis U.S Department of Commerce, AAPC, selectusa.gov

 

 

United States of America's imports represent 13.4% of world imports for fasteners and its ranking in world imports is 1.

 

Unit:US Dollar thousand, product 7813