33% of US firms believe rising protectionism
has made them more competitive; 35% see international expansion as
the top driver of growth, according to HSBC Navigator survey of
business leaders in 35 markets
UK, France
rise, China slips as favored markets among US firms; US remains top
destination for expansion plans of foreign firms
American business leaders are steadfast in their bullish outlook
for growth, even as they acknowledge feeling the impact of
protectionism and geopolitical uncertainty.
In fact, optimism among US firms is far ahead of the global
average, and they attribute their upbeat outlook to the competitive
benefits of new technology, access to high-quality suppliers and
raw materials, bringing new products and services to market, and
international expansion, according to the latest HSBC “Navigator:
Now, Next and How” survey of business leaders in the United States
and 34 other countries and territories.
“American businesses are taking a can-do attitude to the
unsettled environment, even as they make a eyes-wide-open
assessment of the range of headwinds to growth and international
expansion,” said Patricia Gomes, head of Global Trade and
Receivables Finance for United States and Canada, HSBC. “They
understand that rising barriers to international trade and
investment, changes in global supply chains, and the adoption of
digital technology will lead to winners and losers. They are
determined to be winners.”
Two-thirds (67%) of US businesses are more optimistic than a
year ago, well ahead of the global average (47%), according to the
HSBC Navigator 2019: United States which summarizes survey results
of 500 American business leaders. Four out of five (80%) US
businesses expect sales to grow next year. The United States is
home to a significantly higher share (34%) of “high-growth
companies” that are exceptionally optimistic and expect sales to
rise 15 percent or more than in Europe (18%) or Asia Pacific
(19%).
Nearly three-quarters (73%) of US businesses feel that
protectionism is increasing in their key international markets, and
more than three-quarters (78%) say they feel the impact on their
operations of geopolitical changes.
Nonetheless, four in five US firms with international operations
(83%) expect international sales to grow in the next year, and more
than one-third (35%) see international expansion as a top driver of
growth. Almost nine in ten (89%) business leaders have a positive
outlook on international trade for their business, making Americans
more optimistic than the global average (81%).
Interestingly, rising protectionism is seen by American
businesses as providing a competitive advantage in their huge home
market, and this may outweigh the negative affects of more barriers
to imports and investment in international markets. One-third (33%)
of US firms say this protectionism has increased the
competitiveness of their business.
American businesses are focusing more on their business partners
in Europe, now and in the future. While Canada continues the top
trading partner, the United Kingdom has risen to the second spot
from fourth a year ago, while China fell to fifth from second.
American firms’ outlook on Asia is uneven. While the region as a
whole continues to be seen as a growth market, trade is down more
than a third to a quarter, almost entirely due to a cut in trade
with China from 20% to 11%.
For future expansion, US firms are looking increasingly to
Europe as well to North America. Canada and Mexico strengthened
their positions as the preferred markets for expansion in the next
three to five years. UK and France also rose in importance, and
China was the sixth most mentioned market for future expansion,
unchanged from 2018.
Global businesses overwhelming look to the United States for
future expansion, HSBC Navigator’s survey of more than 9,100
business leaders in 35 markets showed. In Asia Pacific, the US
market is identified as a top choice for future expansion by nearly
one out of five (16%) businesses, just ahead of China (14%). In
Europe, America is on par with Germany (13%), and in Germany
businesses give nearly the same importance to the United States
(9%) than to neighboring France (8%).
Note to editors:
HSBC Navigator: Now, next and how for business
HSBC’s Navigator report
comprises a global survey gauging business sentiment and
expectations on trade activity and business growth from 9,131
decision-makers in 35 markets. Research was conducted by Kantar for
HSBC between August and September 2019. HSBC’s Navigator helps
businesses capitalise on new opportunities and make informed
decisions for the future by understanding the outlook for
international trade.
The full report can be accessed here:
www.business.hsbc.com/trade-navigator
Interviews for the Navigator: Now, next and how survey were
conducted in Argentina, Australia, Bangladesh, Belgium, Brazil,
Canada, Egypt, France, Germany, Greece, Hong Kong, India,
Indonesia, Ireland, Italy, Japan, mainland China, Malaysia, Mexico,
the Netherlands, Poland, Russia, Saudi Arabia, Singapore, South
Africa, South Korea, Spain, Sweden, Switzerland, Thailand, Turkey,
the UAE, the UK, the USA and Vietnam.
Over 5,000 of the companies interviewed were SMEs making annual
sales of between US$5m and US$50m, with the remainder being larger
enterprises.
HSBC Commercial Banking
For over 150 years we have been where the growth is, connecting
customers to opportunities. Today, HSBC Commercial Banking serves
around 1.5 million customers across 53 markets, ranging from small
enterprises focused primarily on their home markets through to
corporates operating across borders. Whether it is working capital,
term loans, trade finance or payments and cash management
solutions, we provide the tools and expertise that businesses need
to thrive. As the cornerstone of the HSBC Group, we give businesses
access to a geographic network covering more than 90% of global
trade and capital flows.
For more information visit:
http://www.hsbc.com/about-hsbc/structure-and-network/commercial-banking
HSBC Holdings plc
HSBC Holdings plc, the parent company of the HSBC Group, is
headquartered in London. HSBC serves customers worldwide from
offices in 65 countries and territories in our geographical
regions: Europe, Asia, North America, Latin America, and Middle
East and North Africa. With assets of US$2.728bn at 30 September
2019, HSBC is one of the world’s largest banking and financial
services organizations.
HSBC Bank USA
HSBC Bank USA, National Association (HSBC Bank USA, N.A.) serves
customers through retail banking and wealth management, commercial
banking, private banking, and global banking and markets segments.
It operates bank branches in: California; Connecticut; Washington,
D.C.; Florida; Maryland; New Jersey; New York; Pennsylvania;
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subsidiary of HSBC USA Inc., a wholly-owned subsidiary of HSBC
North America Holdings Inc. HSBC Bank USA, N.A. is a Member of
FDIC. Investment and brokerage services are provided through HSBC
Securities (USA) Inc., (Member NYSE/FINRA/SIPC) and insurance
products are provided through HSBC Insurance Agency (USA) Inc.
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