International commerce offers consumers access to diverse goods and allows healthy competition to emerge in the market. This wouldn’t be possible without exports, which offer many benefits such as job creation, increased sales, and bigger profits. Business owners who want to gain a better understanding of the economy should understand exports, including the following six industries that dominate exports around the world.
1. Oil and Gas
Oil and gas products are the most common exports around the world. According to statistics from the Energy Information Administration, the U.S. exports about 8.54 million barrels of petroleum per day. This oil is shipped to countries around the world, and the U.S. also imports some oil, too. Some of the benefits of exporting oil include:
- Ability to reinvest profits into U.S. economy
- Lowering prices on other U.S. imports
- Promotion of economic development abroad
It is economically advantageous to import oil that U.S. refineries are suited to process while exporting oil that is not cost-effective to process.
2. Building Materials
Building materials are another product that the U.S. commonly exports. While countries such as China, Japan, and South Korea dominate this market, the U.S. is still a major player in this field. Some of the businesses that rely on this export include construction companies, commercial developers, and construction material retailers.
If you own one of these businesses, though, you know that supply chain issues can interrupt access to this export. Partnering with a trusted building materials exporter is the best way to ensure that your company has access to the products it needs. A dedicated exporter will understand how to overcome challenges and deliver the materials you need.
The pharmaceutical export industry may not seem relevant to you if your business specializes in construction. Surprisingly, though, this sector may indeed have an impact on your business. This is because pharmaceutical exports are highly regulated, and some of these regulations may extend to the export of other materials, too. The Department of Justice has implemented stricter laws around declarations, for example, which apply to pharmaceutical exports and some other types of exports, too.
There are tens of millions of new cars manufactured every year, and many of these vehicles are exported from other countries. The automotive export industry is one of the biggest contributors to the international economy, and it also has a major impact on the export industry as a whole. In 2020, the Department of Homeland Security declared that auto sales are an essential service, indicating that auto exports may be prioritized above shipments of other products — including building materials.
Unfortunately, there are millions of tons of textile waste produced every year. Despite this fact, apparel continues to be a pillar of the international economy and a major source of export goods, too. Countries such as China, Germany, and Bangladesh are the top contributors to apparel exports.
Like many other types of exports, the apparel industry may not seem relevant to your business, but its role in the international economy impacts nearly every other sector. Its domination of export resources has a major effect on the supply chain, and in turn, exporters in every other industry.
6. Plastic and Packaging
Finally, the plastic and packaging sector must not be overlooked when considering the top export industries. This sector is important, too, because construction material suppliers often rely on plastic and packaging products. If your business uses plastic materials, you should be aware of the Environmental Protection Agency’s new standards regarding the international shipment of these materials.
Plastic and packaging are often challenging materials to export because some types of scraps may be hazardous to transport. If the plastic in question is contaminated, for example, it may require special handling that can increase the costs of exportation.
Regardless of what sector you work in, the international economy has an impact. Learning about common exports and the supply chain can help you better understand the variables that may influence your business.