The Russian occupation of Ukraine, the volatility in the energy market, and the delicate relationship between monetary and fiscal policy. United States of America The world’s most attractive destination market for exports. Despite interest rate hikes to prevent Inflation, of all indicators, places exports and internationalization in the United States as the most attractive on a world scale.
final report Market Expectation business association AMEC In order to identify where the opportunities will lie for Spanish industrial companies, he ranks the USA as the most interesting country in the world for Spanish companies due to “its market size, its resilience in the face of various crises and its resilience”. The comparative advantage offered by Spain in many of the analyzed sectors”. This is followed by the Netherlands as it is a very accessible market.
US economic policy focused on reducing inflation without reducing economic activity. Therefore, the increase in demand is also modulated by the gradual decline in savings levels and the end of aid and direct subsidies in various tax packages. AMEC CEO, Joan Tristany“Since 2021, the United States has been leading the ranking of the best place for foreign investment. Its resilience in the face of various crises and the comparative advantage offered by Spain in many sectors analyzed remains one of the few stable markets to do business in”. According to him, the United States will continue to rank highly, given its commitment to regenerate its industry and the significant investments it plans to undertake to foster it.” Joseph Louis Kaiserchief economic and trade adviser in Washington ICEXHe is of the opinion that “what is foreseeable is that if new incentives and aids are not approved, demand will remain at pre-pandemic levels and limit its contribution to price increase”.
Most North American companies has considered or is considering the convergence of supply sources and the reduction of value and logistics chains to avoid future disconnections, operating globally, driven by federal policies; phenomenon known as ‘near sourcing’. Establishing sources of supply of component and intermediate goods in the United States requires higher costs than their current location, so this phenomenon will have consequences for prices in the medium and long term. The provisions in the two big plans approved by Biden Management: Infrastructure Investment and Employment Act (IIJA); and the Inflation Reduction Act (IRA). The aid package is approximately 338,000 million euros. As a result of this legal drawing and general trend, the establishment of foreign companies in the USA is also an opportunity for foreign investments that want to establish a headquarters. The last company to admit that it is interested in further implementation in the US, railway. The intent to be listed on the New York Stock Exchange is a new approach to a market that has great business opportunities and requires a physical presence to take advantage of these growth options.
Like other companies Mango They have already announced that they will land in the US in 2022, first with flagship stores, as well as designing a logistics plan suitable for online sales-based expansion. The company, Spain’s second-largest fashion distribution group, recently reported that it signed an agreement with real estate giant Brookfield Properties to open seven new stores in malls in the United States. The company will open stores at its Brookfield complexes in Texas, California and Georgia with the goal of opening new stores next year. Mango’s goal is to have forty stores in the United States by 2024, thereby becoming one of its five largest markets in terms of turnover.
Another of the companies with interests in the USA Santander Bank. It has approximately 14,600 employees in the United States and is primarily located in the Northeast (headquartered in Boston and a significant presence in New York), Texas (headquartered in Dallas) and Florida (headquartered in Miami). The entity acknowledges that it does not perceive a negative impact on its operations as a result of recent trade disputes between the US, EU and China and is not particularly affected by supply issues or disruption of the value chain in that market. The United States is the world’s largest financial market, supported by a solid currency that increasingly weighs on Santander’s accounts and absorbs fluctuations in other geographies, primarily South America. Santander sources acknowledge that one of the biggest challenges is the need to become familiar with the sheer volume of existing regulations, with multiple agencies overseeing companies operating in the country.
legal framework
US law provides for a 60% increase in the contract value threshold for US-made products or components (effective October 25, 2022); a second increase to 65% in two years (effective between 2024 and 2028); and will reach the 75% threshold by 2029. Many companies that started to take place in the USA with these incentives will evaluate the possibility of producing for the USA market from their production facilities there. Other protectionist types of measures have been implemented in the US, so ICEX acknowledges that anything that “could be advisable to have a greater presence in the United States and would prefer to be established in the country” is accepted. However, the predictable increase should also be taken into account. In any case, in the medium term, the US market will remain the largest consumer market in the world, with high household purchasing power and positive growth prospects.”
And the prospects are particularly good. More than half of Spanish companies operating in North America or planning to operate in the future have recovered their pre-pandemic business levels, with one-third assured that this recovery will occur in 2023 and 12% will have to wait until 2023. 2024, according to a study conducted by the Famous Spanish Brands Forum (FMRE) in collaboration with ICEX Spain. The biggest challenge they think they will face is the entry of new competitors at 45.9%, followed by regulatory changes at 34.3%. On the other hand, the strongest aspects cited by the surveyed companies are the quality of the products offered (63%), the image and prestige of the brand (71%) and competitive price (67%).