Companies Worldwide are Optimistic about Future Trade Activity with the U.S.

Global companies are positive about plans for future trade activity with the U.S., according to new research report entitled Terms of Trade: Understanding Trade Dynamics in the U.S. The research found that two-thirds of survey respondents (66%) anticipate that their company’s trade with the U.S. will increase over the next five years and more than four-in-ten (43%) expect an increase of more than 10%.

“The confidence in the United States as an exporter of products bodes well for manufacturing companies,” said Brian Gallagher, Director of Marketing, with O’Neal, Inc., an integrated design and construction firm. “While there will  be challenges with international trade,  there are increasing opportunities for U.S.-based manufacturers to export goods.”

The research, conducted by the Economist Intelligence Unit on behalf of American Express, is a survey of 531 executives at companies worldwide examining global trading relationships, looking at how companies trade, the challenges they face and how they expect international trade with the U.S. to change based on recent trends.

While opportunities for trade abound, international trade is not without difficulties. Companies trading with the U.S. face a number of challenges to navigate. Exchange-rate volatility, transport costs and delays, trade-related infrastructure and making payments were identified as their top challenges.

“Optimism about the outlook for global trade presents opportunities for U.S. businesses looking to export internationally,” said Guillermo Brenes, Vice President of Global Currency Solutions at American Express. “The survey shows that a number of the challenges to international trade are within the span of a company’s control, so there are practical ways in which companies can improve upon their own trade experience.”

Quality of U.S. Trade-related Infrastructure Ranks High

 Survey respondents gave high marks on the overall quality of trade-related infrastructure in the U.S. Over two-thirds of survey respondents (69%) rate the U.S. infrastructure as “very good” or “excellent,” and only 2% consider it to be “poor.” The trade-related infrastructure companies rely on most includes:

•    Digital communication technology (42%)
•    Port facilities (31%)
•    Road network (26%)
•    Cold transport and storage facilities (25%)
•    Warehousing (26%)
•    Rail network (16%)
•    Air links (13%)
•    Other specialized transport and storage (7%)

The findings are based on an executive survey of 531 companies that trade with the US, conducted by The EIU in March and April 2016, as well as desk research and interviews with experts.