ADDING MULTIMEDIA Industrial Machinery Will Be Top Growth Area for U.S. Exports and Imports, HSBC Trade Report Shows

  ADDING MULTIMEDIA Industrial Machinery Will Be Top Growth Area for U.S.
  Exports and Imports, HSBC Trade Report Shows

Other Higher Value Added Sectors—Transport, Medical and Measuring Equipment –
 Also Driving U.S. Exports, Expected to Make Up Half of the Increase of U.S.
                          Exports Beginning in 2021

Business Wire

NEW YORK -- February 26, 2013

Industrial machinery is expected to be the top driver of U.S. export and
import trade now and in the next decade, according to the latest HSBC
Commercial Banking Trade Forecast.

According to the report, U.S. industrial machinery exports, which can include
large power generating machinery to small parts for domestic electrical items,
are expected to account for 21 percent of U.S. export growth this year through
2015, making it the biggest sector contributor to overall U.S. merchandise
export growth through 2015. Further out, industrial machinery is expected to
rise to 25 percent of U.S. export growth in 2016 to 2020, and to 26 percent in
2021 to 2030, according to the report.

At the same time, industrial machinery is expected to account for 25 percent
of U.S. import growth this year through 2015, according to the report. The
report predicts that industrial machinery will decline to 22 percent of U.S.
import growth in 2016 to 2020 before inching up again to 23 percent in 2021 to

“For businesses looking to expand internationally, understanding which
countries are set to increase imports in the sector in which they operate may
provide new opportunities to deliver significant growth,” said Prabhat Vira,
U.S. Regional Head of Trade and Receivables Finance for HSBC.

U.S. Sector Trends: Transport, Medical and Measuring Sectors Driving U.S.
Export Growth

In addition to industrial machinery, other higher value added sectors
including transport, medical and measuring equipment, are also set to be big
contributors to U.S. export growth. In fact, these sectors together with
industrial machinery are expected to contribute to half of the increase of
U.S. exports in 2021 to 2030, according to the report.

The report shows that U.S. transport equipment exports, including motor
vehicles and aircrafts, are expected to account for 17 percent of U.S. export
growth this year through 2015, making it the second biggest sector contributor
to U.S. export. The sector’s growth is expected to account for slightly less,
14 percent, of overall U.S. export growth in 2016 to 2030, but will still
remain the second largest contributor to overall U.S. exports in the next
decade and beyond.

And while medical and measuring equipment, which can include instruments for
medical, surgical, dental or veterinary purposes, as well as meters and
counters, are expected to make up about seven percent of U.S. export growth
this year through 2015, making it the fourth biggest sector contributor to
U.S. export growth, the sector is anticipated to increase its share of U.S.
export growth to 10 percent in 2021 to 2030. During that decade, it will
become the third largest sector contributor to overall U.S. export growth.

“China and other emerging markets are expanding their operations into new,
higher value sectors, which is prompting the more developed markets, including
the U.S., to specialize and diversify,” said HSBC’s Vira. “U.S. companies
looking to expand globally may want investigate the resources, relationships
and finances needed to maximize any potential opportunities.”

U.S. Trade Trends: Canada, Mexico, China Remain Top U.S. Trade Markets

According to the report, U.S. exports will increasingly find their way to
rapidly growing consumer markets in developing economies, as growth prospects
for industrialized nations remain subdued. And while U.S. exports to the
United Arab Emirates, India, and Vietnam are expected to increase the most
over the next several years, the top three markets for U.S. exports continue
to be Canada, Mexico and China, according to the report. The first two are
perennial top destinations for U.S. exports as a result of free trade
agreements and proximity to the U.S. The report indicates that China’s strong
role in U.S. exports and imports activity reflects some of the overall shift
in global manufacturing to China over the past two decades, but also
forward-looking demand from China for U.S. high valued-added products as the
country’s consumption share increases.

“Emerging markets are developing at a phenomenal pace and are set to reshape
world trade patterns over the next 20 years,” said James Emmett, HSBC’s Global
Head of Trade and Receivables Finance. “Understanding which sectors are
growing in which markets, delivers huge opportunities for businesses.”

In fact, a related HSBC report issued last month showed how some U.S.
companies have benefitted from global expansion and export trends. The report,
“Spotlight on U.S. Trade,” the first in a series of reports analyzing
publicly-traded companies in key regions around the U.S., showed that global
businesses based in Upstate New York achieved almost three times the growth
rates and earned over 10 per cent more in revenue than their domestic peers in
the region between 2007-2011. The report included global expansion stories
from companies such as Columbus McKinnon, Constellation Brands, Ecology and
Environment, Inc., and Moog.

Regarding overall export growth for the U.S., the report anticipates growth to
slow to 2.2 percent in 2013 before increasing moderately to 3.9 percent in
2014. Similarly, U.S. imports will slow to 1.3 percent in 2013 before
increasing somewhat to 2.7 percent in 2014.

Global Trade Trends: Emerging Markets Add Value to Supply Chain

Globally, the report notes the shift towards the production of higher value
goods is particularly evident in Asia, with a clear pattern emerging as
Chinese export growth in information and communications technology and
industrial machinery gathers pace. This balances a declining rate of growth in
sectors such as textiles, giving rise to opportunities for companies in the
smaller, faster growing countries around the region to win contracts to
produce these more basic goods.

Additionally, industrial machinery is the world’s top sector for goods traded
and will encompass around 25 percent of goods exported among the top 25
trading nations by 2030, and contribute over a third of the growth in total
merchandise exports from 2013, according to the forecast.

For a copy of the global report and further information, visit:

Notes to editors:

About the HSBC Trade Forecast - Modeled by Oxford Economics

Oxford Economics has tailored a unique service for HSBC which forecasts
bilateral trade for total exports/imports of goods, based on HSBC’s own
analysis and forecasts of the world economy to generate a full bilateral set
of trade flows for total imports and exports of goods.

Oxford Economics produces a global report for HSBC, plus regional reports and
country specific reports on the following 23 countries: Hong Kong, China,
Australia, Indonesia, Malaysia, India, Singapore, Vietnam, Bangladesh, Canada,
USA, Brazil, Mexico, Argentina, UK, France, Turkey, Germany, Poland, Ireland,
UAE, Saudi Arabia, and Egypt.

About HSBC Commercial Banking

Commercial Banking, a division of HSBC Bank USA, N.A, together with the other
members of the HSBC Group, serve more than 3.5 million customers worldwide,
from small enterprises to large multinationals, in over 60 developed and
emerging markets around the world. Whether it is working capital, trade
finance or payments and cash management solutions, we provide the tools and
expertise that businesses need to thrive. With a heritage stretching back
nearly 150 years, and a global network covering three quarters of global
commerce, it makes HSBC the world’s leading international trade and business

For more information visit:

About HSBC Bank USA, N.A.

HSBC Bank USA, National Association, with total assets of $196bn as of 30
September 2012 (US GAAP), serves 3 million customers through retail banking
and wealth management, commercial banking, private banking, asset management,
and global banking and markets segments. It operates more than 250 bank
branches throughout the United States. There are over 165 in New York State as
well as branches in: California; Connecticut; Delaware; Washington, D.C.;
Florida; Maryland; New Jersey; Pennsylvania; Oregon; Virginia; and Washington
State. HSBC Bank USA, N.A. is the principal subsidiary of HSBC USA Inc., an
indirect, wholly-owned subsidiary of HSBC North America Holdings Inc. HSBC
Bank USA, N.A. is a member of the FDIC.

About HSBC Holdings plc

HSBC Holdings plc, the parent company of the HSBC Group, is headquartered in
London. The Group serves customers worldwide from around 6,900 offices in over
80 countries and territories in Europe, the Asia-Pacific region, North and
Latin America, and the Middle East and North Africa. With assets of US$2,721bn
at 30 September 2012, the HSBC Group is one of the world’s largest banking and
financial services organisations.

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