This document summarizes information from an investment and export promotion services company about opportunities in the US market. It discusses the strong growth of the US economy in recent years as well as growth forecasted for manufacturing. Specific sectors like aluminum and automotive are highlighted as experiencing high growth. The document also analyzes partnership strategies like distributors, sales representatives, and complementary manufacturers that could be pursued to access the US market. Finally, company contact information is provided.
2. Company Profile
Mission
Assisting and supporting international companies to
develop the US as an export market.
Based in Washington, D.C.
20 years of experience
7 employees
Ongoing industry relationships
5. US Economic Outlook
“Recovery is in Full Swing”
• US GDP 2015: $ 17.710 trillion (+ 2.4 %, 2014)
• Imports 2014: $ 2.37 trillion (+0.6 %, 2013)
• Exports 2014: $ 1.64 trillion (- 4.0 %, 2013)
• Forecasted imports 2015: $ 2.534 trillion
exports 2015: $ 1.711 trillion
• Expected growth in 2016: +2.50 %
2017: +2.40%
6. The Renaissance in US Manufacturing
Made in America
• A growing number of American companies are
bringing manufacturing back to the United States in
a trend known as "reshoring“.
• Companies planning to shift production to the US:
- Wal-Mart plans to shift at least $50 billion in
manufacturing to the United States.
- Generac Power Systems : from China to Milwaukee
- GE: from China to the U.S.
7. The Renaissance in the US Manufacturing Sector
Reasons
• Rise of production costs in Asia
• Cheap cost of the US energy
• Economic instability in Europe
Results
• US manufacturing production 2015: 3.7%
• Computer & Electronics 2015: 6.1 %
MAPI Forecast for Manufacturing Production
10. US Aluminum Sector
US Aluminum Market
• US industry sales 2014: $ 35 billion
• 3rd largest market in the world
• Over 300 production plants in 35 states
• Growth rate annually : 4.7%
overall : 30% (the last five years)
The US is experiencing sustained long-term growth
Source: The Aluminum Association/IBIS World Industry Report
11. US Aluminum Sector
North American Aluminum Supply
• Total consumption 2013 9.3 million metric tons
• Exports in 2013 1.7 million metric tons
• Extrusions in 2013 2.0 million metric tons
• Key sectors
– Transportation 30%
– Packaging 19%
– Construction 11%
Source: The Aluminum Association/IBIS World Industry Report
12. US Aluminum Sector
Demand – Producer Shipments plus Imports
▫ North America - Millions of metric tons
• Source: The Aluminum Association
Product Form 2013 % of Total
Sheet, Plate & Foil 4.8 43.9
Extrusions 2.0 18.3
Electrical Wire & Cable 0.4 3.5
Other 0.3 2.3
Total Mill Products 7.5 68.1
Ingot for Casting & Other 3.5 31.9
Total Demand 11.0 100
13. US Aluminum Sector
Consumption by Sector
▫ North America - Millions of metric tons
• Source: The Aluminum Association
Sector 2013 % of Total
Building & Construction 1.2 10.9
Transportation 3.4 30.6
Consumer Durables 0.7 6.4
Electrical 0.9 7.9
Machinery & Equipment 0.7 6.6
Containers & Packaging 2.1 19.0
Other 0.3 3.0
Domestic Total 9.3 84.3
Exports 1.7 15.7
Total Shipments 11.0 100
14. US Aluminum Sector
Key Sectors
• Key growth drivers:
– Automotive sector growth
▫ 8% 2015/4% 2016
– Aerospace sector
▫ 4% 2015/7% 2016
– Housing Starts
▫ 16% 2015/14% 2016
Demand for aluminum grew 21% in the automotive
sector in 2014
Source: The Aluminum Association/IBIS World Industry Report
16. US Aluminum Sector
US Offers Wide Range of Companies
• Alcoa, New York - $23 billion - among the world's
top producers of aluminum with operations in
bauxite mining, alumina refining and aluminum
smelting
• Empire Resources, New Jersey - $580 million -
distributes semi-finished aluminum products,
including sheet, foil, wire, plate, and coil
• Mandel Metals, Illinois - $30 million - family
owned and operated aluminum distributor, was
established in 1968
17. US Aluminum Sector
US Suppliers of Aluminum and Aluminum Products
Location by Region
• Region New York - 399
• Chicago/Midwest - 328
• Cleveland OH - 312
• California - 226
• Texas - 154
• Florida - 150
• Mid-Atlantic (Virginia) - 118
• South - 105
Source: Thomas Register
19. Partnership Strategies
Distributor
Advantages
• Can offer national coverage
• Offers warehouse and stocking ability
• Has capacity to manage large volumes
• Provides after-sales-service
Disadvantages
• Tend to be box “movers”
• Little capacity or desire to educate customers
• Controls distribution and end-user clients not
known
20. Partnership Strategies
Sales Representative or Agent
Advantages
• Works in close relation with manufacturer to
produce customized products
• Close relation to clients and clients are known
• Willing to educate clients about the product
• Especially desirable for technical, customized or
high end products
Disadvantages
• Usually small with 1-5 people
• Sales coverage only regional
• Rarely offers warehouse or after-sales-service
21. Partnership Strategies
Complementary Manufacturer
Advantages
• Offers warehouse, national coverage and after-
sales-service
• Often can work with technical and customized
products
Disadvantages
• Difficult to identify a good partner that is not a
competitor
• Often controls the complete marketing process
• Can demand to use their own brand name on
products
23. Overview
US Market
• US offers a large growing market
• The reshoring of manufacturing has been a driver in
the growth of aluminum sector
• Strong dollar offers significant opportunities to non-
US producers
• Significant number of distributors and agents exist -
with New York being the top region
24. AMERICAN WORLD SERVICES CORP.
1247 Wisconsin Avenue NW • Suite 201
Washington DC 20007, USA
Tel: 1.202.296.3523
www.awscorp.com
Steve Lanier
Director
t. 202.296.3755
slanier@awscorp.com