U.S. Loses No. 1 Rank in Many Industries

Despite making gains against traditional rivals such as Japan and Germany, The United States is losing its number one ranking in many industries, according to a report by the McIlvaine Company (www.mcilvainecompany.com). The study, titled World Market for Your Products, says the U.S. is no longer the leading producer of pulp and paper, cement, mined metal, steel, and other so called "smoke stack industry" products. It is also losing or has lost leadership in disk drives, flat panel displays, and semiconductors. On the other hand, it continues to dominate in pharmaceuticals, HVAC, and information technology.

China Market as a Percent of U.S.
2002 2005 2009
Cement 866 1,072 1,426
Chemical 32 38 56
Pharmaceutical 6 8 14
Municipal Wastewater 24 52 80

China has long been the world leader in cement. Its production in 2002 was more than eight times that of the United States. This will increase to a multiple of 14 by 2009, according to the McIlvaine Company. However, its pharmaceutical industry will remain far behind the United States for the foreseeable future. And while municipal wastewater treatment expenditures are growing at double-digit rates in China, these expenditures will still be only 80 percent of those in the U.S. in 2009 despite the much larger population.

Australia Market as a Percent of U.S.
2002 2005 2009
Food Processing 8 9 11
Transportation 3 4 4
Mining 120 137 151
Hospital 1 1 1

Australia is an example of a small country with one sector which is larger than the United States, according to the McIlvaine Company. Mining output was larger in 2002 and will be 150 percent that of the United States by 2009.

Thailand Market as a Percent of U.S.
2002 2005 2009
Disk Drive 411 701 1,200
Aerospace 0 0 0
Municipal Drinking Water 7 7 7
Metalworking 3 3 4

Several Asian countries account for the majority of disk drive production. By 2009, disk drive production in Thailand will be 12 times that of the United States, according to the McIlvaine Company.

Taiwan Market as a Percent of U.S.
2002 2005 2009
Semiconductor 63 99 117
Refinery 5 6 6
Flat Panel 897 1,873 2,165
Surface Coating 6 7 7

Taiwan will be a larger producer of semiconductors by 2009 than the U.S. It already is a much larger producer of flat panel displays. By 2009 its flat panel display production will be 21 times that of the United States, according to the McIlvaine Company By contrast, its production in many other areas is less than 7 percent of that of the United States.