Global Design & Construction Market Insights

1. Top Markets for U.S. Exports in Design and ConstructionToday’s Agenda • Trends/Numbers • Market Growth • Challenges • Barriers to Exporting • BUILD Act of 2018 • Opportunities in China, Canada, and Mexico • Assistance from the U.S. Commercial Service Contact wendy.d.peebles@census.gov www.census.gov/foreign-trade (U.S. Census Bureau-Export Trade inquiries) Contact Cody.Dietrich@trade.gov or visit www.export.gov

2. Trends/Numbers • IBISWorld reports that revenues in the global architecture services market increased through the entire 2011-16 period. • global architecture industry, revenues rose by 2.9 percent to $213.2 billion in 2016. • American firms accounted for the largest share of international design revenue in 2016 at 30.8 percent. • In 2016 U.S. cross border exports of Architecture and engineering services totaled $11.7 Billion Dollars, while imports were valued at $7.2 Billion Dollars

3. Market Growth • Construction output across the globe is expected to grow 85 percent by 2030, creating a $15.5trillion market by that date. • Rate of worldwide construction growth, projected at 3.9 percent per year to 2030, outpaces that of projected global GDP growth by more than 1 percent. • Nearly all countries across the globe are experiencing increasing urbanization. This global urbanization drives demand for both new buildings and reconstruction of existing building. • Drives an initiative to build “greener,” more sustainable buildings that conserve energy, water and other resources while supporting occupant safety, health and productivity.

4. Challenges • In non-FTA markets, tariffs remain a consistent barrier for all seven subsectors. • U.S. industry reports standards and conformity assessment issues (certification, inspection, sampling, testing and accreditation) as the most significant non-tariff barriers to trade for the building products sector. • U.S. exporters have reported instances in some international markets of counterfeit brand labels on building products as well as false performance claims on product labels.

5. Barriers to Infrastructure Exports to Africa • In Africa, spending on infrastructure falls $30 to $48 billion short of estimates of the spending needed for sustained inclusive economic growth. • Two-thirds of Africans lack access to electricity. A similar proportion lacks access to improved sanitation. • In Asia, service coverage is far from universal, but there are no reliable estimates of the gap in financing for infrastructure for the region as a whole. • In India, the estimated gap between investments needed to reach targets for growth and access, and identified financing sources is $26 billion a year.

6. BUILD Act of 2018 • The BUILD Act of 2018 Replaces OPIC With a New Entity With Significantly Increased Resources and Expanded Capabilities. • The BUILD Act overhauls the Overseas Private Investment Corporation (“OPIC”) and combines OPIC with the Development Credit Authority into a newly formed successor entity, the United States International Development Finance Corporation (“IDFC”). • The legislation provides IDFC with the authority to incur a maximum contingent liability of $60 billion—more than twice OPIC’s total authorized exposure limit of $29 billion.

7. Opportunities in China • China is expected to maintain its position as the world’s largest construction market Urbanization trends drive the Chinese government’s emphasis on increasing green building within its construction sector • National New-type Urbanization Plan, which envisions 60 percent of China’s population living in cities by 2020. • New commercial building (office, hotel, retail) is a market segment where 55 percent of Chinese respondents expect to undertake green building. • China is looking to invest 1 trillion dollars. Currently there are 267 airports being built or designed, 257 green data centers, and 500 smart city projects.

8. Opportunities in Canada • Construction sector is valued at US$92.3 billion, accounting for approximately 7% of Canada’s GDP. • Employing over 1.4 million Canadians, the sector purchases goods and services from every region of the country and every segment of the economy. • Categories of construction: New Home Building and Renovation (single and multi-family); Heavy Industrial; Commercial and Institutional; and Civil Engineering. • Government’s plan to invest US$16.8 billion in green infrastructure. • Starting in 2018-19, US$15.5 billion will be provided for public transit infrastructure construction and rehabilitation.

9. Opportunities in Mexico • The incoming López Obrador Administration will continue to focus on development projects that will in turn stimulate demand for construction materials and services. • From housing and commercial building construction—such as September 2017 earthquake reconstruction and urban development in marginalized communities—to large infrastructure projects such as the New International Airport of Mexico City. • Development of the Isthmus of Tehuantepec, the “Maya Train” on the Yucatan Peninsula, rural roads, and various sector-specific developments in oil and gas production, refinery development, agricultural production, and mines.

10. The U.S. Commercial Service Your link to Global Markets A global network providing customized solutions enabling companies to sell U.S. made products and services internationally Company Questionnaire • Helps organize, manage and drive more comprehensive engagements Country Commercial Guides/ Top Markets Report • Market conditions, opportunities, regulations, and business customs Initial Market Check (IMC) • Evaluates sales potential of a client’s specific product or service Gold Key Service (GKS): • Arrange business meetings (5-7) - one or more days Single Company Promotion (SCP): • Support & official sponsorship in a specific market (Embassy - Consulate) International Company Profile (ICP): • Background report on individual, foreign firms Trade Events • International Buyer Program, Trade Fair Certification, and Trade Missions Commercial Diplomacy • Advocacy in Foreign Tenders: USG Engagement with overseas governments Contact cody.Dietrich@trade.gov or visit www.export.gov