Mechanical Engineering: the Market Potential of the American States
USA as the top market for worldwide sales of this industry. Which States have the greatest potential?
Published by Marcello Antonioni. .
Marketselection Metal industry United States of America American States International marketing
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The 2023 data at world trade level, available in the ExportPlanning Information System, allow to document the centrality of the US market for global exports of Mechanical Engineering: with around 95 billion euros (equal to 15.1 percent of the total), last year the USA represented by far the main destination for worldwide sales in the industry1.
Furthermore, with a cumulative growth of almost 17 billion euros, in the period 2020-2023 the United States was largely the first market for absolute increases in imports of Mechanical Engineering2.
The application of the analysis model of the ExportPlanning Market Selection tool to trade data abroad available at the level of American States can allow to build a ranking of market potential for Mechanical Engineering exports.
In particular, for the purposes of this analysis, the following potential indicators were considered for the "F2-industrial tools and equipment" and "F5-industrial plant engineering" macro-sectors of the ExportPlanning classification and for each American State:- value of imports 2023: indicates the relevance of the market;
- change in imports in the period 2020-2023 in value: indicates the growth capacity (measured in absolute terms) of the market;
- change in imports in the period 2020-2023 as a percentage: indicates the growth capacity (measured in relative terms) of the market.
In the analysis process of the Market Selection model, the aforementioned indicators were normalized, on a scale of 0-100, in order to contribute to the calculation of a synthetic indicator of potential3.
Industrial Tools and Equipment
The United States is, with 71.1 billion euros in 2023, the main import market for industrial tools and equipment, largely ahead of China and Germany.
In the period 2020-2023 the US market was also driving the global demand for industrial tools and equipment, with a overall increase of almost 14 billion euros (compared to the 4.8 billion of the British market and the 4.4 billion euros of the German market).
The application of the Market Selection model
to the trade data of the American States
highlights Wisconsin, Georgia and Texas
at the top of the ranking for Industrial Tools and Equipment
The table below highlights the main American States in terms of levels of potential for Industrial Tools and Equipment, with the values recorded by each state for the different indicators considered in the Market Selection.
Export of Industrial Tools and Equipment:
ranking of potential at the level of American States
| Potential Index | Imports 2023 | Delta Imports 2023/2019 | CAGR Imports 2023/2019 | |
| State | (0-100) | (Bn $) | (Mn $) | (% in $) |
| Wisconsin | 99.2 | 3.1 | +1 527 | +18.8 |
|---|---|---|---|---|
| Georgia | 99.1 | 3.8 | +1 524 | +13.6 |
| Texas | 93.2 | 9.0 | +1 810 | + 5.8 |
| Massachusetts | 92.9 | 2.9 | + 547 | + 8.5 |
| Florida | 92.3 | 2.0 | + 528 | + 8.0 |
| Maryland | 86.5 | 1.1 | + 360 | +10.5 |
| California | 85.1 | 9.4 | + 698 | + 1.9 |
| Michigan | 82.8 | 4.1 | + 381 | + 2.5 |
Source: ExportPlanning processing on US Census Bureau data
Industrial Plant Engineering
The United States is also the main import market for industrial plant engineering, with a 2023 value of 23.5 billion euros ( preceding - also in this case - China and Germany).
In the period 2020-2023 the US market was also driving the global demand for industrial plant engineering, with an overall increase of over 3 billions of euros (preceding, in order, Turkey, Germany and Saudi Arabia).
The application of the Market Selection model
to the trade data of the American States
highlights Texas, Minnesota and California
at the top of the ranking for Industrial Plant Engineering
The table below highlights the main American States in terms of levels of potential for Industrial Plant Engineering, with the values recorded by each state for the different indicators considered in the Market Selection.
Export of Industrial Plant Engineering:
ranking of potential at the level of American States
| Potential Index | Imports 2023 | Delta Imports 2023/2019 | CAGR Imports 2023/2019 | |
| State | (0-100) | (Bn $) | (Mn $) | (% in $) |
| Texas | 92.4 | 3.3 | + 675 | + 5.9 |
|---|---|---|---|---|
| Minnesota | 81.2 | 0.8 | + 274 | +11.2 |
| California | 81.2 | 1.6 | + 288 | + 5.0 |
| Georgia | 79.6 | 1.4 | + 261 | + 5.5 |
| Iowa | 77.4 | 0.7 | + 224 | + 9.7 |
| Missouri | 70.7 | 0.4 | + 182 | +15.0 |
| Ohio | 68.5 | 1.1 | + 149 | + 3.8 |
Source: ExportPlanning processing on US Census Bureau data
Mechanical Engineering Exports: top potential American States
Georgia
The Georgia market, in fifth place in terms of value of imports of Mechanical Engineering in 2023 (with 5.2 billion dollars), was characterized by a growth rate in the period 2020-2023 at two percentage figures: CAGR (Compound Annual Growth Rate) equal to +11.1%, for an overall increase of +1.8 billion dollars.
In particular, this market is positioned in second place in the ranking of potential for industrial tools and equipment and in fourth place in that for industrial plant engineering.
South Korea, China, Germany, Mexico and Japan are the main market partner countries; in particular, South Korea is the leader in the industrial tools and equipment segment, while Japan is the leader in the industrial plant engineering segment.
Wisconsin
The Wisconsin market was characterized in the period 2020-2023 by a particularly accelerated pace of growth in imports of Mechanical Engineering: CAGR equal to +14.9%, for an overall increase of + 1.6 billion dollars.
In particular, this market ranks first overall in the ranking of potential for industrial tools and equipment (while it appears in 17th position for industrial plant engineering).
Vietnam, China, Germany, Mexico and Canada are the main ones market partner countries; in particular, Vietnam is the leader in the industrial tools and equipment segment, ahead of China and Germany.
Texas
The Texas market, in first place overall for imports of Mechanical Engineering in 2023 (for a total of 12.3 billion dollars) and grew in the period 2020-2023 by +2.5 billion dollars (CAGR of +5.8%) expresses the greatest potential in the industrial plant engineering segment (1st place overall in the ranking) and ranks third in the ranking of industrial tools and equipment.
Mexico, China, Canada and Germany are the main partner countries on the market; in particular, Mexico is the market leader both in the industrial plant engineering segment and in the industrial tools and equipment segment.
Florida
The Florida market highlighted an overall increase in imports of Various and Related Mechanics of 635 million dollars in the period 2020-2023 (CAGR of +6.9%).
In particular, this market is positioned in fifth place in the ranking of potential for tools and equipment for industry (while it appears in 12th position for industrial plant engineering).
Germany, France, China and Canada are the main partner countries on the market; in particular, Germany is a leader both in the tools and equipment for industry and in the industrial plant engineering segment.
Massachusetts
The Massachusetts market highlighted a rather lively growth rate of imports of Mechanical Engineering in the period 2020-2023: CAGR of +8.6%, equal to +622 million dollars.
In particular, this market is positioned in fourth place overall in the ranking of potential for industrial tools and equipment (while it appears in 16th position for industrial plant engineering).
Mexico, Ireland, Germany and UK are the main partner countries on the market; in particular, Mexico is a leader both in the industrial tools and equipment segment and in the industrial plant engineering segment.
California
The California market, in second place overall for imports of Mechanical Engineering in 2023 (for a total of 11.1 billion dollars) and grew in the period 2020-2023 by almost 1 billion dollars (CAGR of +2.4%) expresses the greatest potential in the industrial plant engineering segment (3rd place overall in the ranking), while it is placed in 8th position in the ranking of industrial tools and equipment.
China, Mexico, Taiwan, Japan and Germany are the main ones market partner countries; in particular, China is the market leader in the industrial plant engineering segment, while Mexico is the market leader in the industrial tools and equipment segment.
Minnesota
The Minnesota market highlighted a rather lively growth rate of imports of Mechanical Engineering in the period 2020-2023: CAGR of +6.9%, equal to +430 million dollars.
In particular, this market ranks second overall in the ranking of potential for industrial plant engineering (while it only appears in 19th position for industrial tools and equipment).
Mexico, Germany, China, UK, Canada and Italy are the main partner countries on the market; in particular, Mexico is a leader both in the industrial tools and equipment segment and in the industrial plant engineering segment.
1) In particular, the United States is the first destination for world exports in 2023 in the following sectors of Mechanical Engineering:
- Lifting and handling
- Tanks, reservoirs and containers of metal
- Pumps and filters
- Signalling equipment
- Electromechanical tools
- Tools and molds
- Fire extinguishers, spray guns and machines for liquids and powders
- Measuring instruments
- Valves and pressure reducing valves
- Boilers, turbines and motors
- Pumps and compressors
- Heat exchangers.
2) Note how, behind the USA, the main markets for absolute increases in imports 2020-2023 of Mechanical Engineering - in order Netherlands, UK and Germany - stopped at 5 (or less than 5) billion euros.
3) The index of potential was calculated as the weighted average of the scores associated with the indicators considered, with the following weighting scheme:
- value of imports 2023: 50%;
- change in imports in the period 2020-2023 in value: 30%;
- change in imports in the period 2020-2023 in percentage: 20%.
