Transcript Building Products Spotlight [PowerPoint]

Industry & Analysis’
Spotlight on
Building Products
November 13, 2013
I&A: Office of Materials Industries
GM: CS Global Design & Construction Team
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U.S. Building Products
$84+ Billion Annual Exports (2012)1
670,216 Jobs (2011)2
HVAC
Annual Exports: $19 billion
Appliances, Lighting, Electric
Annual Exports: $22 billion
Non-ferrous Metal Products
Annual Exports: $14.5 billion
Iron & Steel
Annual Exports: $9.8 billion
Paint & Adhesives
Annual Exports: $4.3 billion
Wood
Annual Exports: $8.1 billion
Plumbing
Annual Exports: $1.4 billion
Insulation
Annual Exports: $979 million
Concrete, Tile, Plasterboard
Annual Exports: $1 billion
Glass
Annual Exports: $1 billion
Doors & Windows
Annual Exports: $824 million
Cement & Asphalt
Annual Exports: $581 million
Stone
Annual Exports: $220 million
Miscellaneous Other
Annual Exports: $757 million
Sources: 1 Data - U.S. Department of Commerce, Bureau of Census
2 Employment - Annual Survey of Manufacturers, Bureau of the Census
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Economic Impact: Building Products
(2012)
Total Employment:
Total Exports:
Balance of Trade:
Percent of World Exports:
Total World Trade:
670,216 jobs (2011)
$84.3 billion
-$35.9 billion
14%
$593 billion
Total U.S. sector exports grew from $42 billion in 2002
to $84 billion in 2012,
a Compound Annual Growth Rate (CAGR) of 7%
Sources: 1 Data - U.S. Department of Commerce, Bureau of Census
2 Employment - Annual Survey of Manufacturers, Bureau of the Census
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U.S. Competitiveness in Building Products
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On a level playing field, U.S. building products
are highly competitive globally based on:
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Excellent reputation of “Made in U.S.A”
Quality
Price
Strong, well-known brands
U.S. products are competitive in both developed
and developing markets
U.S. manufacturers have competitive strength in
products suited to Green Building, a highgrowth market segment
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HVAC
Lighting
Windows and doors, glass
Insulation
Plumbing
Top 10 U.S. Export Markets
Canada
Mexico
China
Japan
Germany
UK
Korea
Brazil
Saudi Arabia
74%
of sector exports
go to the
Top 10 markets
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Globally Competitive
Leading Markets and Total U.S. Building Product Exports (2012)
Top Developed Economies
Top Developing Economies
Canada
$26.2 billion
Mexico
$18.6 billion
EU
$8.4 billion
China
$5.3 billion
Japan
$2.2 billion
Brazil
$1.6 billion
Australia
$1.4 billion
Saudi Arabia
$1.5 billion
India
$872 million
Total:
$27.9 billion
Total:
$38.2 billion
Source: U.S. Department of Commerce, Bureau of Census
In 2012, the U.S. Building Products sector exported $84 billion of products
to a highly diverse range of international markets.
46% of sector exports went to the leading developed markets,
33% went to the top developing markets
On a level playing field, the sector is competitive in developed, emerging,
or any other international market.
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Strategic Priorities
Implement MDCP programs with an emphasis on sustainable construction materials and building products
in high-growth market segments (Green Building, wood, plumbing) and markets (China, Indonesia).
Prevent Green Building-related technical barriers to trade (TBTs) before they occur in APEC economies,
which absorb 74% of U.S. sector exports annually and are growing rapidly.
Advance work in multilateral (APEC) and bilateral (U.S.-China, U.S.-Indonesia) fora to combat illegal logging,
which suppresses > $460 million in U.S. wood products export value annually.
Engage high-growth sub-sector exporters on ITA programmatic opportunities (trade shows, IBP, trade
missions & MDCP) and market-specific export priorities.
Reduce sector tariffs and non-tariff barriers via negotiation and implementation of the Trans-Pacific
Partnership (TPP)and Trans-Atlantic Trade and Investment Partnership (TTIP) agreements.
Educate sector exporters to reap the advantages of FTAs with Korea, Colombia and Panama.
Pillars of Export Competitiveness
“Made in U.S.A.”
Excellent global reputation.
Competitive in both developed
and developing economies.
Strong, well-known brands.
On a level playing field, U.S.
products compete well on quality
and price.
Particularly competitive in energy
efficient and other resource
conserving products well suited to
high-growth Green Building
markets.
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Trade Promotion
MDCPs
U.S.-China Build
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Successful partnership with Evergreen
Building Products Association since 2001
Current MDCP is 3rd grant
ROI $408:1
Focus: energy efficient building materials,
senior housing
Standards work facilitation
International Buyer
Program
World of Concrete
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Partnership with Hanley Wood, IBP team,
Global Design & Const. Team, and OMI for
over a decade, and I&A’s Office of
Transportation & Machinery since 2013
Focus: trade promotion for U.S. suppliers
of building products & related heavy
machinery
International Builders Show – NAHB
International Association of Plumbing &
Mechanical Officials
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New award for FY14
Goal: assist Indonesia in developing a
plumbing code
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Partnership with National Association of
Home Builders, IBP team, Global Design &
Construction Team, and OMI for over two
decades
Focus: trade promotion and
differentiation of high quality U.S. building
products
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Global Design & Construction Team
Who are we?
We are a group of individuals within all three units of ITA (Global Markets,
Industry & Analysis, and Enforcement & Compliance) and industry associations
(AIA, EBPA, ACEC, AEM) that coordinate export promotion activities for US
companies in the following industry sectors:
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Architecture/construction/engineering services
Building products
Construction equipment
Greenbuild & sustainable development
Interior design
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Global Design & Construction Team
What do we do?
– Monthly conference call with team members to connect, plan, and
implement activities in our relevant industry sectors
– Create strategies for promoting export opportunities to US companies
via webinars, IBPs, TFCs, Trade Missions, and other creative solutions
for clients
– Seek input from team members (including USEACs, overseas post, and
HQ), industry partners, and clients
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Global Design & Construction Team
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Coordination between all three units on trade missions, IBPs, TFC,
webinars, industry training and other outreach activities
Examples of Coordination between units:
- MDCP: Evergreen Building Products Association (EBPA) China Build
Program, American Institute of Architects (AIA)
- IBPs: World of Concrete, International Builders Show, GreenBuild Expo,
ConExpo/ConAgg, AIA Convention
- TFC: Guangzhou International Lighting Exhibition, Mosbuild, Kazbuild
- Trade Missions: India, 3Cs (Chennai, Cochin, and Colomobo(Sri
Lanka)), Mexico Infrastructure
- Workshops: AIA International Practice workshops (NY, DC, Denver, LA),
OPIC, USTDA, MCC, Multi-lateral Development Banks, etc.
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Global Design & Construction Team
Looking ahead to 2014 and beyond for the team…
• Pilot project for assisting architectural design services
• 1st edition resource guide highlighting market opportunities for
architectural design services
• Implement and support activities at IBPs, TFCs, TMs, and webinars
• Continue to provide innovative solutions for clients in design &
construction related industries
• Provide training opportunities for team members to be able to effectively
and efficiently council US companies about international opportunities
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Trade Policy
 Trans-Pacific Partnership (TPP)
 Transatlantic Trade & Investment Partnership (TTIP)
 Industry Trade Advisory Committees (ITACs)
“Industry’s voice in the trade policymaking process.”
 ITAC 12 Steel
 ITAC 9 Non-Ferrous Metals & Building Materials
 ITAC 7 Forest Products
 Illegal Logging – At least $460 million in lost U.S. wood product export value
annually
 APEC Experts Group on Illegal Logging & Associated Trade
 U.S.-China MOU to Combat Illegal Logging & Associated Trade
 U.S.-Indonesia MOU to Combat Illegal Logging & Associated Trade
 Key provisions in TPP and TTIP Environment chapters
 Private Sector Dialogue program elements are key to all of the above
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Preventing NTBs
APEC Green Building Standards
Goal: Advance Green Building in a manner that facilitates trade,
creating opportunities for U.S. exporters
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APEC economies import 74% of U.S. building products
Green Building is a high-growth market, and regulations are evolving
ITA-led Green Building work in APEC began in 2011
Ongoing standards-focused multi-year project pursues industry-identified priorities for
preventing non-tariff barriers to trade as APEC economies work to expand and regulate
Green Building
Examples of NTBs include:
2013-2014 project elements:
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standards, certifications, lab testing
Green Building codes
requirements, labeling, ratings
Building Information Modeling (BIM) to advance Green Building
 BIM supports a full digital model of a building
 BIM allows trial and building performance testing in the design stage, and carries design
benefits through building commissioning and into the operational stage of the building
Building envelope product testing and rating (energy efficient products)
Non-tariff barriers to trade in ceiling and flooring products (focus on lab testing requirements)
Strong collaboration within ITA
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I&A Office of Standards and Investment Policy + I&A Office of Materials Industries
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Opportunities
 Strong global construction growth
Global Industry Trends
• Construction accounts for 11% of global GDP.
• Projected growth in construction output of 67%
over next decade, from $7.2T (2010) to $12T
(2020), 5.2% per annum, outpacing global GDP
growth.
• China and India projected to account for 38% of
increase.
• Construction spending will shift to Asia and
other emerging markets.
• Construction spending in developed countries
will be constrained.
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Source: Global Construction 2020, Global Construction Perspectives,
Oxford Economics.
China’s growing construction market became worlds largest in 2010.
By 2020 emerging markets will account for 55% of global construction, up from 46% today.
Construction will make up 16.5% of GDP in those markets by 2020.
In total China, India, the U.S., Indonesia, Canada, Russia, and Australia will account for 65% of
growth in global construction by 2020.
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Opportunities (continued)
• Strong Green Building Growth in Asia-Pacific – Governments in the region are
strongly backing sustainable construction trends; best practices that foster a level
playing field provide practical references for economies looking to accelerate Green
Building.
• Promotion
• MDCP program expansion
• Multiple annual IBPs within the sector (International Builders Show/National
Association of Home Builders, World of Concrete, U.S. Green Building Council
GreenBuild)
• NEI sector stakeholder outreach and presentations
• Private Sector Engagement - provides insights and helps set priorities
• Industry Trade Advisory Committees (ITACs)
• Green Building project-specific Advisory Groups
• Regular participation in industry events
• Collaboration – strong working relationships within ITA; particularly well facilitated
through the Global Design and Construction team – global team training 2/2013.
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Opportunities: Inward Investment
Current Environment
Some positive signs for foreign building
products companies considering direct
investment:
 U.S. housing market recovery has begun
 Easing of credit market for qualified
developers
Sector Historic FDI Success Stories
 Steel
 Cement
Outlook
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The U.S. operating environment continues to
reflect an increasing number of housing
starts and improving house values
Pick-up in repair and remodeling activity
becoming apparent
The company is continuing with its plan to
invest in capacity expansions through recommissioning of idled facilities in future
periods
Example: Foreign-owned building products company
with multiple U.S. manufacturing facilities. Excerpt from
investor presentation (October 2013)
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Risks and Issues
• Tariffs
– High tariff rates have significant
impact on low-margin products
– Escalating tariffs are common
• NTBs
– Particularly in standards and
regulatory coherence
– Of consequence in high-growth
Green Building product segments
• Availability of financing for Green
Building projects
Brazil
China
India
Saudi Arabia
Flat-Rolled Steel
14%
7%
6.3%
5%
HVAC Units
23%
20%
10%
8.5%
Plywood
10%
12%
10%
5%
Ceramic Sinks
18%
10%
10%
12%
Doors & Windows
14%
10%
10%
5%
Paints
14%
10%
10%
8.5%
Light Bulbs
18%
10%
10%
5%
Insulation
16%
10%
10%
6.5%
2012 Tariff Rates
Source: WTO Tariff Database
– Improved metrics are needed to
make a consistent business case
• Global economic conditions
– Construction market growth
depends on overall economic
growth
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Examples of ITA and Interagency Activities
ITA
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MDCPs
Global Design & Construction Team
Industry Trade Advisory Committees advise Administration on trade
policy: steel, forest products, non-ferrous metals and building materials.
APEC Green Building
Interagency
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Illegal logging (APEC Experts Group, U.S.-China and U.S.-Indonesia MOUs)
U.S.-Canada-Mexico Green Building Construction Task Force under the
NAFTA Commission on Environmental Cooperation (USTR, EPA)
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Analytical Products
1.
Promoting Green Building while preventing non-tariff barriers to
trade
 APEC Building Codes, Regulations & Standards
 Study on regulatory pathways economies may utilize to enhance
building performance; detailed chapters for 21 APEC economies plus
best practice guidelines.
 E-published August 2013 (450+ hits to date)
 Building Information Modeling (BIM) Start-Up Guide for
Policymakers
 Guide to concrete steps policymakers can take to increase BIM
uptake and benefits.
 Under collaborative development with bimSCORE, Inc. for epublication expected November 2013.
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Providing U.S. Industry with Up-To-Date Market Information
 International Metals Study Group Databases, Forecasting and
Directories
 International Copper Study Group/International Lead and Zinc Study
Group bi-annual metals production/consumption forecasts
 ICSG/ILZSG Directory of Producers, Mines, Plants and Smelters
 Study Group Annual Words Metals Factbooks
 Annual Industry Snapshots
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Building Products Team Staff
Gary Stanley; Building Products Team Leader, U.S. China Build MDCP Lead
[email protected]; 202-482-0376
Joanne Littlefair; APEC Green Building Standards, Illegal Logging, Forest Products, CEC Green
Building Construction Task Force
[email protected]; 202-482-4855
Brian Ledgerwood; DFO ITAC-7 Forest Products, Green Building, Forest Products, Precious
Metals
[email protected]; 202-482-3836
Salim Bhabhrawala; ITAC-9 Non-ferrous Metals & Building Materials, IAPMO MDCP Lead
[email protected]; 202-482-1784
Bob Shaw; ITAC-12 Steel
[email protected]; 202-482-0606
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Global Design & Construction Team
Want more information about the Global Design & Construction Team?
Contact Us
Terri Batch, Team Leader
[email protected]
Tel: 310-235-7212
Michael Marangell, Deputy Team Leader
[email protected]
Tel: 312-353-5097
Or visit our Export.gov page
http://export.gov/industry/architecture/
http://export.gov/industry/construction/
Or connect with us on our LinkedIn Group
Global Design and Construction Trade Leads from US Commercial Service
Currently 247 members, only US companies are approved for membership
Individuals with trade.gov email automatically added to the group
Or Join our Team!
Send an email to Terri Batch asking to be added to the team’s distribution list and start participating in
our monthly calls
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