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Industry & Analysis Spotlight

Maureen HinmanEnvironmental Technologies

Office of Energy & Enviro. Industries

Jessica DulkadirTeam Leader

Global Environmental Team

Environmental Technologies

Professional Services

Rufino HurtadoProfessional Services

Office of Supply Chain, Prof. and Business Services

Barb RawdonDirector

Professional Services & Education Team

Environmental Technology in a nutshell…

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Products you use EVERYDAY…

Delivered by cutting edge technologies and services…

Global Environmental Technology Market Drivers: Regulation, Scarcity, and Climate Change

• End-of-Pipe addresses the need to regulate or treat existing pollution.

• Pollution Prevention prevents pollution from occurring and encourages or mandates cleaner production methods.

Example:• Mineral /metal scarcity

drives demand for waste recovery and recycling technologies.

• Climate vulnerability including natural disasters create demand for advanced early detection systems, facility retrofits, and post disaster remediation.

Environmental Laws & Regulation

Resource Scarcity Climate Change

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The U.S. ET Manufacturing and Services Industry 2011: $215.4 Billion*

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Total $215.4 Billion

Manufacturing (inside circle)

$61.5

Services(outside

circle)$153.9

Services:

Manufacturing:

*Utilities and resource recovery, $76.8B, excluded. Data provided by Environmental Business International Inc.

2005 2006 2007 2008 2009 2010 20110.0

100.0

200.0

300.0

400.0

500.0

600.0

700.0

800.0

$649.0$679.7

$711.0 $719.6$697.4

$719.4$735.0

US Imports US Industry Share of US Market US Exports US Export Potential Global Market

US$

Billi

on

U.S. Imports: $26.9 Billion

Export Potential:$423.1 Billion Non-U.S. Global Market

The U.S. ET Export Imperative, U.S. Billion

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Current Exports:$45.1 Billion

U.S. Industry Share of Domestic Market:$239.8 Billion

*DOC analysis based on data provided by Environmental Business International Inc.

The International Trade Administration & Water

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The Environmental Export Initiative

Recognizing the unique challenges and opportunities environmental companies face in the global market, leaders from the Environmental Protection Agency, U.S. Trade Representative, and Departments of Commerce and Agriculture developed a targeted initiative for the environmental industry under the NEI.

The International Trade Administration & Water

ETTAC

ETWG

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The Environmental Export Initiative: Pillars and Priorities

1. Targeting the markets of greatest policy and commercial opportunity through collaborative, data driven research and program coordination.

2. Creating a one-stop-shop for environmental businesses.

3. Illustrating the value of the U.S. environmental protection model and industry to the world.

The International Trade Administration & WaterExport Market Plans: An Interagency Road Map for Market Development

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U.S. EPA Best Technology Prospects Analysis

• Brazil• China• India• Indonesia• Saudi Arabia

The International Trade Administration & WaterEnvironmental Solutions Exporter Portal: www.export.gov/envirotech

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Explore the

Exporter Resource

Guide

Connect to a specialist

Learn about

upcoming events

and programs

The International Trade Administration & Water

Program Services Program Sponsoring Agencies

Export Promotion

Export Counseling Business Matchmaking Trade Missions Market Research Advocacy

Trade Policy and

Enforcement

Commercial Diplomacy Trade Negotiations Report a Trade Barrier

Trade & ProjectFinance

Export Finance Project Finance Insurance

Market / Project

Development

Technical Assistance Pilot Projects

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Exporter Resource Guide

The International Trade Administration & WaterU.S. Environmental Solutions Toolkit

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www.new.export.gov/envirotech/toolkit

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About the Global Environmental Technology Team

Team Mission: Serve the client by creating the environment for the Team’s volunteer members to be a valuable resource for clients, networks, offices, foreign posts, internal and external partners, other team members and all units of the ITA

• 70 ODO Members• 25 HQ and Agency Members• 90+ OIO Members (including

partner posts)

Truly Global

Sectors Covered• Water- Wastewater Treatment• Air Pollution Control• Solid Waste and Recycling

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Global Environmental TeamProven Results – 2012-2013

Metric 2012-2013 ResultsExport Success Credits 127

Value of ESs $29.1 million

Revenue Generated-Cost Recovery-In Kind

$40,000

New Clients Generated 50

Number of clients participating in Services/Programs

355

Supported activities in 2013 25

Show Time Appts Arranged 300+

Foreign Buyer Matchmaking Mtgs Arranged

500+

Strategic Partners with ET Team -2013

2+

Foreign Buying Delegations- all IBP’s 37

Quarterly client outreach distribution 3,000

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Environmental Technologies Team Staff

Maureen Hinman; Environmental TechnologiesMaureen.Hinman@trade.gov; 202-482-0627

Catherine Vial; Environmental Technologies and Renewable EnergyCatherine.Vial@trade.gov; 202-482-2823

Adam O’Malley; Office Director, Office of Energy and Environmental IndustriesAdam.O’Malley@trade.gov; 202-482-4850

Jessica Dulkadir; Global Environmental Team Leader Jessica.Dulkadir@trade.gov; (216) 522-2026

ITA Global Environmental Team:

http://trade.gov/mas/manufacturing/envirotech/index.asp

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Industry and AnalysisSpotlight on

Professional Services

January 7, 2014Prepared by

Office of Supply Chain, Professional and Business Services

U.S. is the largest services exporter in the world, both in overall commercial services and in most major services categories

20Source: UNCTAD

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THE UNITED STATES LEADS THE WORLD IN SERVICES TRADE

Source: WTO, International Trade Statistics 2012

0.0%

5.0%

10.0%

15.0%

World Services Exports by Selected Countries (2012)

United StatesUnited KingdomGermanyFranceChinaJapanIndiaSpainNetherlandsHong Kong, ChinaPe

rcen

tage

Sha

re o

f Mar

ket

0.0%1.0%2.0%3.0%4.0%5.0%6.0%7.0%8.0%9.0%

10.0%

World Services Imports by Se-lected Countries (2012)

United StatesGermanyChinaJapanUnited KingdomFranceIndiaNetherlandsSingaporeIrelandPe

rcen

tage

Sha

re o

f Mar

ket

CountryVALUE (USD

Billions)% CHANGE FROM

2011 GLOBAL SHARE

World $4,349.9 2.2% 100.0%

United States $621.2 5.5% 14.3%

United Kingdom $280.0 -3.4% 6.4%

Germany $257.2 -1.1% 5.9%

France $210.7 -5.7% 4.8%

China $190.4 8.4% 4.4%

Japan $142.4 -0.1% 3.3%

India $140.7 2.6% 3.2%

Spain $135.8 -3.8% 3.1%

Netherlands $131.2 -3.2% 3.0%

Hong Kong, China $123.4 4.5% 2.8%

CountryVALUE (USD

Billions)% CHANGE FROM

2011 GLOBAL SHARE

World $4,152.3 2.7% 100.0%

United States $411.1 4.1% 9.9%

Germany $293.4 -0.6% 7.1%

China $280.2 18.2% 6.7%

Japan $174.8 5.4% 4.2%

United Kingdom $173.9 -0.4% 4.2%

France $172.1 -9.4% 4.1%

India $127.5 3.0% 3.1%

Netherlands $119.2 -1.4% 2.9%

Singapore $117.7 2.8% 2.8%

Ireland $112.1 -3.1% 2.7%

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Business, Professional and Technical Services:

• Legal Services• Accounting• Management, Scientific and Technical Consulting• Scientific R&D• Advertising• Architecture/Engineering

– (will be the focus of a Spotlight)• Computer and Information Systems

– For the purposes of this Spotlight, focus on Legal, Accounting, and Management Consulting services.

All otherprivate services

$475.0

Management, consulting, and pub-lic relations services

$37.0

Research, development, and test -ing services

$26.7

Computer and information services

$17.3

Operational leasing$8.3

Installation, maintenance, and repair of equipment

$15.2

Construction, architectural, and engineering, services

$11.5

Legal Services$7.8

Advertising$7.0

Industrial engineering$6.5

Other business, professional, and technical services $14.8

Business, professional, and technical services exports totaled $153.1 billion in 2012, led by management and consulting services

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Pie chart dollar values presented in billions of US dollars

Source: Bureau of Economic Analysis, U.S. International Services, Table 1

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U.S. Exports – 2006-2012(In Billions USD)

2006 2007 2008 2009 2010 2011 20120

20

40

60

80

100

120

140

160

180

5.3 6.4 7.3 7.3 7.2 8.1 8.721.4 27.6 29.7 29.9 33 35.1 37

59.367.8

75.6 79.687.2

97.8107.4

Legal Services Management Consulting Other Business Services

$ Bi

llion

s

Impact on the U.S. Economy, 2012

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Revenue: $1.5 trillionLegal: $270 billion, Accounting/Bookkeeping: $132.0 billion

Employment: 7.8 millionExports: $153.1 billion

Mgmt Consulting: $37 billion

Legal: $8.7 billionAccounting: $1.2 billion

(Legal: $7.8 billion)Trade Surplus: $136.9 billion Trade Surplus in Legal Services: $6.4 billion

CAGR (2007-2012) Revenue: 2.26%

CAGR (2007-2012) Exports: 8.5%

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LEADING TRADING PARTNERS FOR U.S. SERVICES

Source: BEA, Survey of Current Business, “International Services,” updated June 14, 2013

0.0

10.0

20.0

30.0

40.0

50.0

60.0

70.0

Top 10 Export Markets of U.S. Services (2012 U.S. Billions)

CanadaUnited KingdomJapanChinaMexicoGermanyBrazilFranceSouth KoreaAustralia

0.0

5.0

10.0

15.0

20.0

25.0

30.0

35.0

40.0

45.0

50.0

Top 10 Sources of U.S. Services Imports (2012 U.S. Billions)

United Kingdom

Germany

Canada

Japan

India

Mexico

France

China

South Korea

Netherlands

COUNTRY VALUE (Billions of USD)

Canada 61.4

United Kingdom 58.7

Japan 47.0

China 30.3

Mexico 27.7

Germany 26.7

Brazil 24.1

France 18.7

South Korea 18.4

Australia 17.5

COUNTRY VALUE (Billions of USD)

United Kingdom 47.4

Germany 32.3

Canada 30.1

Japan 29.7

India 18.6

Mexico 15.3

France 15.2

China 13.1

South Korea 11.9

Netherlands 9.1

Exports to Target Markets: (2012, Value in $ Millions)

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Source: Bureau of Economic Analysis

U.S. Business, Professional and Technical Services

Canada $12,306Switzerland $11,625Ireland $11,621Japan $9,743Germany $6,536Netherlands $5,226 China $5,137Mexico $5,104France $5,042

Legal Services

United Kingdom $1,394Japan $1,181Canada $774Germany $684France $423S. Korea $390Switzerland $332China $270Netherlands $235

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U.S. PRIVATE SERVICES FOREIGN AFFILIATE SALES AND CROSS BORDER EXPORTS*

**Affiliate sales are defined here as sales to foreign persons by non-bank, majority owned foreign affiliates of U.S companies; Source: BEA U.S. International Services, “Table 1: Trade in Services”

1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004*

2005 2006 2007 2008 2009 2010 2011 20120

200

400

600

800

1000

1200

1400

U.S. Services Exports Sales abroad by foreign affiliates of U.S. companies

2011 U.S. Services Ex-ports: $596 Billion

2011 Sales Through Foreign Affiliates of U.S. Companies: $1.3 Trillion

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New Sectors, New Interests

• Industrial organization– Unusual structure: Many small firms, but an arena dominated

by the larger firms in int’l business– Major international competition from giant UK firms or locally

dominant practices

• Focus on market access – early stages now

– Barriers are: who can practice, how firm can organize– Locally powerful interests in target markets – national bar

associations and professional societies– Often national/state/local authorities control

• New trade promotion opportunities

Opportunities• Continuing globalization and trade• Conclusion of ongoing free trade agreements• Emerging technologies and trade promotion

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Risks and Issues• Protectionism (largely from established domestic interests) /

market access barriers• New competitors in emerging markets• “Behind-the-border” regulations

Examples of ITA and Interagency Activities• Trade Agreements: TTIP, TPP, and TiSA

– I&A participates in development of policy positions on cross border trade of services negotiations

– Ongoing research on relevant U.S.-EU trade issues for use by DOC, USTR and other USG decision-makers

• Industry expertise and collaboration with major industry and professional associations, and ITAC 10

• Legal Services Trade Mission to China– Collaboration with Commerce OGC– Commercial Service / Global Markets, and– American Bar Association

• Involvement with Association of Management Consulting Firms’ annual Awards Program for Services Provided in Developing Markets

• Collaborate with Global Markets on U.S.-Brazil Commercial Dialogue legal services-related issues

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Professional Services Team Staff

Rufino Hurtado; Professional ServicesRufino.Hurtado@trade.gov; 202-482-2991

Barb Rawdon; Director, Professional Services & Education TeamBarb.Rawdon@trade.gov; 202-482-0474

David Long; Office Director, Office of Supply Chain, Professional & Business ServicesDavid.Long@trade.gov; 202-482-0344

http://trade.gov/mas/manufacturing/envirotech/index.asp