Top Commodities, Challenges & Opportunities for U.S. Exporters

Top Commodities, Challenges & Opportunities for U.S. Exporters

US-ExportsOverview. 2016 business reports show that U.S. exporters exported $2.2 trillion worth of goods and services. This was about 12% of total economic output in GDP terms. Keep in mind that only 1% of American businesses export their products. Based on the report, the U.S. is the 3rd largest exporter in the world right behind China and the EU, with Germany coming in at fourth place. This is a slight drop in total U.S. market share both in actual terms and as a percentage of global exports. Most of America’s exports are goods as well as service sector based products. The intangible nature of services makes them harder to export across countries and regions.

Top U.S. Exports

$1.46 of the $2.21 trillion exported items comprised of goods and items. This means two-thirds of what America exported were commodities. The products fall into seven categories. These are capital goods, industrial supplies & equipment, consumer goods, automobiles, agricultural products, and services.

  1. Capital Goods. A little over $500 billion worth of capital goods were exported mostly from 6 broad categories. These are Industrial machines ($51 billion), Commercial Aircraft ($121 billion), and Medical equipment ($35 billion). The others are telecommunications ($41 billion), semiconductors ($44 billion), and Electric apparatus ($42 billion).
  2. Industrial supplies and equipment. In 2016 the U.S. exported $398 billion worth of materials used. Most of these are oil and oil-based products. Chemicals topped the list followed by fuel oil, then petroleum products, and plastic. Non-monetary gold closed this list at $20 billion.
  3. Consumer goods. These constitutes 13% of the goods exported valued at about $200 billion. The breakdown is pharmaceuticals ($53 billion), cell phones ($24 billion) and gem diamonds ($21 billion). Consumer spending is influenced by disposable income, income per capita, living wage, household debt, consumer expectations and inflation rates
  4. Automobiles. These constitute 10% of the exported goods and services averaging about $150 billion. GM, Chrysler, and Ford are the largest cars manufacturers. There are a few smaller ones also in the market. The output has been growing significantly after taking a dip during the 2008 financial crisis.
  5. Agricultural products. At $131 billion this is one of the largest products exported from the U.S. markets. They tend to be generally cheaper since they receive lots of government subsidies. Bioengineering and chemical additives have helped to boost production and supply of agricultural products. Soybeans ($24B), Meat and poultry ($17B) and Corn ($11B) are the top three exported goods.
  6. Services. This constitutes one-third of U.S. export to global markets. It totals about $750 billion. Most of the exported services in the exported commodities and items. The largest service export is aircraft services ($293B), Computer & Related services ($178B), Intellectual property and royalties ($120B) and banking ($113B) as well as defense ($20B).

Challenges Facing the United States Exporting Sector

The United States export market has shrunk globally due to the emergence of developing industrial economies like Brazil, India, China, and Indonesia. These countries have developed industrial units that manufacture most of the goods for the local market which in turn lowers demand for American products.

  • Secondly is standards of living. These countries have lower standards of living. This allows them to produce goods at a cheaper rate. The lower standards of living enable them to erode America’s competitive and comparative advantages across lots of industries. When it comes to automobiles Japanese, and European car makers producers better quality and cheaper cars that are well suited for global markets.
  • Third, is the issue of oil. America is both a huge producer and importer of oil. That’s because they produce a lot yet their demand is even hired. Keep in mind that some of the oil that they produce does not meet their consumption standards, so they export it to Africa. Most of the oil produced is shale oil. America therefore still spends much more on buying oil abroad.
  • American Trade Deficit. American trade deficit as of 2016 stood at $500 billion. We imported $2.7 trillion worth of goods and services while exporting $2.2 trillion. This is about $25 billion higher than 2013. This can mostly be attributed to the strengthening of the dollar by 25% between 2013 and 2016. Even then this deficit is $200 billion less than 2006 meaning, the value is on a general upward trend. The primary drivers of this deficit are consumer products (-$397B) and automobile (-200B) deficit.
  • The deficit with Major Trading Partners. America’s top trading partners are China ($580B), Canada ($545), Mexico ($525B). The deficit with China stands at about $347B making them responsible for 70% of our deficit. This deficit significantly weakens the economy since the economy ends up being financed by debt which has to be paid back with interest. The dollar is said to have declined 40% between 2001 and 2007. This in turn weakness America’s competitiveness on the global stage.

Opportunities for U.S. Exporters

Despite the challenges, it’s not all gloom and doom. America has certain old and emerging opportunities on the export front. The U.S. exported $2.209 trillion worth of exports in 2016. America has a lot of potential given that this constitutes export from
1% of American firms only.

  1. The U.S. Dollar Is King. American competitiveness is still pegged on the good fortune of having the dollar as the world reserve currency. This minimizes the shocks that the economy might have to take in the short and medium term. The dollar still accounted for 62% of global bank reserves still ahead of the pond, Euro, Yen, and Yuan. This I good news for small time exporters in the market.
  2. African Renaissance. The growth and rise of African economies have created a middle class (est. 15% of pop) that has an increasing demand for American goods. Any small or medium-sized exporter who targets this market will greatly benefit. The purchasing power of African consumers haves been on a general upward trend over the past 15 years. Economies of Kenya, Nigeria, South Africa, Ethiopia, Egypt, and Congo continue to prove versatile in the face of internal challenges and shocks. They also have massive infrastructural spending that lifts the nation’s ease of doing business.
  3. Investors and Technology. The U.S. continues to lead as the most attractive market for investors especially from the developing Asian economies. That’s why the U.S. continues to get hundreds of billions in capital inflows. The Foreign Direct Investment inflows stood at $736B in 2016. That accounts for 15% of the global totals or $1 in every $6. Additionally, people still flock to the U.S. as tech innovators and inventors. It’s still the home to major social players and towers in spending levels.

Ready to start exporting? Have questions or need a reliable logistics partner? The export specialists at Logistics Plus are ready to help.

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LP Completes Phase 2 Installation for WeWork Merchant’s Row

LP Completes Phase 2 Installation for WeWork Merchant’s Row

The Logistics Plus (LP) S.W.A.T. team recently completed “Phase 2” of the WeWork Merchant’s Row office installation in Detroit, MI. WeWork Merchant’s Row features seven unique floors of office space in a restored historic building. Those who move into this coveted address right on Woodward Avenue will gain direct access to the heart of downtown’s renaissance. WeWork Merchant’s Row blends co-working spaces with private offices, common areas with conference rooms, and historical details with modern decor. Teams of any size in industries like design, tech, and marketing will appreciate the space and community that make this location like no other.

Logistics Plus Recognizes 2016 National and Regional LTL Carriers

Logistics Plus Recognizes 2016 National and Regional LTL Carriers

FOR IMMEDIATE RELEASE

Logistics Plus Recognizes 2016 National and Regional LTL Carriers of the Year

FedEx Freight Presented with National Award and Dayton Freight Presented with Regional Award.

FedEx 2017 National Carrier of the Year Presentation

The LP team presents Monica Fronzaglio, worldwide account manager for FedEx Services, with its National LTL Carrier Award

ERIE, PA (March 2, 2017) – Logistics Plus Inc., a leading worldwide provider of transportation, logistics and supply chain solutions, recently recognized two of its less-than-truckload (LTL) carriers for superior results and performance in 2016. The annual awards were presented to the following carriers in each of two categories:

  • FedEx Freight was named the 2016 Logistics Plus National LTL Carrier of the Year (Estes Express and UPS Freight were both runners up in this category)
  • Dayton Freight Lines was named the 2016 Logistics Plus Regional LTL Carrier of the Year (Ward Transport & Logistics and New Penn Motor Express were both runners up in this category)
Dayton 2017 Regional Carrier of the Year Presentation

The LP team presents Patty Ash, corporate account manager for Dayton Freight, with its Regional LTL Carrier Award

Performing as a top North American freight brokerage firm, Logistics Plus LTL services are delivered through its proprietary eShipPlus™ transportation management system (TMS) – a complimentary online platform made available to all of its LTL customers. Its annual LTL carrier awards are based on internal and external assessments of the following performance criteria:

  • Annual Share of Business and Growth
  • Price Competitiveness
  • Service Performance
  • Billing Accuracy
  • Customer Service
  • Account Representation

Logistics Plus has been buying, managing, and delivering LTL services to our many customers for 20 years. Although today we provide many other logistics solutions, LTL remains one of our core offerings,” said Scott Frederick, vice president of marketing and LTL carrier relations for Logistics Plus. “Having great, cooperative LTL carrier partners is critical to our LTL services program. We looked at annual performance reports, we polled our internal operations and accounting stakeholders, and we surveyed our end customers; and FedEx Freight and Dayton Freight both came out on top. I am grateful for the support we receive from all of our LTL carrier partners, but I would especially like to thank and congratulate FedEx Freight and Dayton Freight for their excellent performance in 2016.

About FedEx Freight
FedEx Freight is the largest LTL carrier in North America with service throughout the U.S., Canada, Mexico and Puerto Rico, and to the U.S. Virgin Islands. FedEx Freight offers two reliable options: FedEx Freight® Priority, with the fastest published transit times of any nationwide less-than-truckload (LTL) service, and FedEx Freight® Economy for basic LTL freight shipping needs.

FedEx Freight 2016 Award

 

About Dayton Freight Lines
Founded in 1981, Dayton Freight is a private LTL freight carrier headquartered in Dayton, Ohio. With 50 Service Centers in the Midwest region, Dayton Freight offers shippers 1 or 2 day service to thousands of points throughout a 13 state area. With our Strategic Alliance Network, we can serve all of the United States, Canada, Mexico, Puerto Rico and Guam.

Dayton 2016 Award

 

About Logistics Plus Inc.
Logistics Plus Inc. provides freight transportation, warehousing, global logistics, and supply chain management solutions through a worldwide network of talented and caring professionals. Founded in Erie, PA by local entrepreneur, Jim Berlin, 20 years ago, Logistics Plus is a fast-growing and award-winning transportation and logistics company. With a strong passion for excellence, its 400+ employees put the “Plus” in logistics by doing the big things properly, and the countless little things, that together ensure complete customer satisfaction and success.

The Logistics Plus® network includes offices located in Erie, PA; Alma, AR; Little Rock, AR; Los Angeles, CA; Riverside, CA; San Francisco, CA; Visalia, CA; Atlanta, GA; Chicago, IL; Detroit, MI; Kansas City, MO; Charlotte, NC; Lexington, NC; Buffalo, NY; Cleveland, OH; Charleston, SC; Greenville, SC; Nashville, TN; Dallas, TX; Fort Worth, TX; Houston, TX; Laredo, TX; Madison, WI; Bahrain; Belgium; Canada; Chile; China; Colombia; Egypt; France; Germany; India; Indonesia; Kazakhstan; Kenya; Libya; Mexico; Poland; Saudi Arabia; South Sudan; Turkey; UAE; and Uganda; with additional agents around the world. For more information, visit www.logisticsplus.com or follow @LogisticsPlus on Twitter.

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Media Contact:
Scott G. Frederick
Vice President, Marketing
Logistics Plus Inc.
(814) 240-6881
scott.frederick@logisticsplus.com

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LP Completes Phase 2 Installation for WeWork Merchant’s Row

LP Completes Phase 2 Installation for WeWork London Fields

The Logistics Plus (LP) S.W.A.T. team recently completed “Phase 2” of the WeWork London Fields office installation. Situated at the epicenter of East London’s creative hotbed Hackney, this is London office space with a twist. Steps from the park, WeWork London Fields spans four stories of co-working space, with plenty of private offices and common areas, not to mention a private roof terrace. Blocks away from neighborhood gourmet hub Broadway Market, the London Fields Overground stop, coffee shops, and galleries, establish your company with East London at your fingertips. Perfect for startups and creatives, as well as established businesses, WeWork London Fields is a true breath of fresh air.

LON18-P2-Finished-WeWork-London

LP Completes Phase 2 Installation for WeWork Merchant’s Row

New LP Installation for WeWork Office in Boston

The Logistics Plus (LP) dedicated S.W.A.T. team continues to manage the logistics for installations of new co-working office spaces all around the world in support of the WeWork global supply chain. Looking for a business address right in the heart of things? WeWork St. James offers 3 floors of Boston office space in a historic building that spans the full block between Arlington and Berkeley Streets. Originally completed in 1922, this grand building now houses French, Turkish, Spanish, Portuguese, and Colombian consulates. Larger companies appreciate this central co-working space, with its access to the Financial District, and abundance of commuting options—one block from the Green Line, two blocks from Back Bay Station, close to 90 and 93, and steps from a bike share station. Impress your clients with Boston’s finest hotels, restaurants, and shops in the area, or take things more quaint with the farmers market across the street in Copley Square. Put your company in the center of the action at WeWork St. James.

BOS04-Completed-St-James-Boston-MA

Project Cargo: Recent Projects & Photos

Project Cargo: Recent Projects & Photos

The Logistics Plus Project Cargo Team continues to be busy helping our customers move their big, bad, and ugly cargo shipments. Here are some recent projects completed by the team:

  • Dismantle, truck and ship four complete V66 vestas turbines from site in Wieringerwerf to Uddevalla, Sweden. Towers and hubs via Amsterdam, nacelles and blades by trailer direct.
  • Deliver extremely wide skid and parts from factory in Jiaxing to shipyard on Zhoushan island by truck and coastal vessel.
  • Deliver two identical shipments each comprising of two deck tanks, platforms and foundations, from Shanghai direct to Hanjin Heavy Industry Shipyard in Busan.

The animated image below contains a short slideshow of photographs from these three projects.

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