Companies Worldwide are Optimistic about Future Trade Activity with the U.S., According to New Research from the Economist In...
August 16 2016 - 9:00AM
Business Wire
Forty-three percent expect trade to increase by
more than 10% over the next five years
Global companies are positive about plans for future trade
activity with the U.S., according to new research conducted by the
Economist Intelligence Unit on behalf of American Express. 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 research, entitled Terms of Trade: Understanding Trade
Dynamics in the U.S., 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 presents the
largest issue for companies, with more than four-in-ten respondents
(41%) citing this as a concern. Nearly one-third of respondents
cite transport costs and delays, trade-related infrastructure and
making payments as their top challenges (32%, each).
The survey catalogued payment-related challenges to
international trade, including: currency fluctuation (61%), which
caused the greatest challenge, process inefficiencies and limited
payment visibility (each, 52%), bank fees (51%), and limited or no
terms (50%) and banking hours (50%).
“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%)
Survey methodology:
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.
The survey sample is global, spanning Asia-Pacific (49%), Europe
(22%), North America (19%) and South America (9%). Nearly half of
those surveyed are C-level executives, and another 40% hold senior
executive positions (SVP, VP, director, head of business unit, head
of department). The firms in the survey are split almost evenly
between those with an annual revenue of US$250m-500m and those with
US$500m-1bn in annual revenue. Of the 23 sectors covered, the
best-represented are financial services, manufacturing, consumer
goods and services, IT and retail.
About The Economist Intelligence Unit
The Economist Intelligence Unit is the world leader in global
business intelligence. It is the business-to-business arm of The
Economist Group, which publishes The Economist newspaper. The
Economist Intelligence Unit helps executives make better decisions
by providing timely, reliable and impartial analysis on worldwide
market trends and business strategies. More information can be
found at www.eiu.com or www.twitter.com/theeiu.
About American Express Global Commercial Payments
Through its Global Commercial Payments division, American
Express (NYSE:AXP) offers a suite of payment and
lending products that help businesses and organizations of all
sizes gain financial savings, control and efficiency. Global
Commercial Payments provides solutions for travel and everyday
business spending, cross border payments, global currency
solutions, and business financing.
To learn more about Global Commercial Payments visit
business.americanexpress.com
About American Express
American Express is a global services company, providing
customers with access to products, insights and experiences that
enrich lives and build business success. Learn more
at americanexpress.com and connect with us
on facebook.com/americanexpress,
foursquare.com/americanexpress, linkedin.com/company/american-express,
twitter.com/americanexpress,
and youtube.com/americanexpress.
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version on businesswire.com: http://www.businesswire.com/news/home/20160816005199/en/
M BoothLauren Arthur, 212-539-3282laurena@mbooth.comAmerican
ExpressMelissa Filipek,
212-640-8658melissa.j.filipek@aexp.comEconomist Intelligence
UnitIrene Mia, 44-20-7576-8280irenemia@economist.com
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