As U.S. Welding and Soldering Equipment Exports Marginally Decreased, the U.S. Turned from a Constant Trade Surplus to a Slight Trade Deficit in 2015

Power-Driven Hand Tools June 21, 2016
Author: Sergey Avramenko
Head of Global Markets Research Team

Photo: © HalfPoint / Bigstockphoto

The U.S. takes third place in global welding and soldering equipment exports (with a 14% share, based on USD), following China and Germany (14% each). In 2015, the U.S. exported 1,382 million USD, 14% below the previous year's figure.

U.S. exports of welding and soldering equipment showed mixed dynamics from 2007 to 2015. A significant drop in 2009 was followed by a recovery over the next two years, until the growth stalled. Exports remained relatively stable from 2012 to 2014, followed by a steeper decline in 2015.

In 2014, U.S. welding and soldering equipment exports surpassed the pre-recession level of 2008. However, the decline of 2015 led to a level significantly below that of 2008.

A post-crisis recovery and further stability improved industry performance in the recent years; however, due to declining exports and the strong dollar, exports should not be considered a major driving force for the welding and soldering equipment industry.

In 2015, Canada (401 million USD) and Mexico (297 million USD) were the main destinations of U.S. welding and soldering equipment exports, together comprising 50% of U.S. exports. Mexico became the fastest growing country of destination. Average annual growth rate of exports of welding and soldering equipment into this country stood at +10.3% from 2007 to 2015.

China came in third in this ranking with a 6% share, followed by Brazil and the Republic of Korea (3% each).

While the shares of Canada (+7 percentage points) and Mexico (+12 percentage points) increased, the shares of the other leaders remained relatively stable throughout the analyzed period.

From 2007 to 2015, the U.S. was a net exporter of welding and soldering equipment. During this period, exports consistently exceeded imports in value terms. However, imports displayed strong growth in 2015, while exports decreased, which resulted in a trade deficit of 74.6 million USD.

Source: U.S. Welding And Soldering Equipment Market. Analysis And Forecast to 2020