Why America is country of Opportunity: Diving into the World largest Market
America is a land of opportunity, where anyone may achieve financial freedom with enough effort. Despite making up less than 5% of the global population, Americans produce and earn more than 20% of global GDP. The US is the world’s largest trader and has the strongest national economy.
The Peterson Institute for International Economics estimates that since the Second World War, trade liberalisation initiatives have resulted in 9% greater real incomes in the United States than they otherwise would have. That 9% translates into an additional $1.5 trillion in American revenue for the U.S. economy in 2013. Manufacturing can be moved to the most competitive areas of the economy, which increases the pay of the typical American worker and boosts productivity. Our growing export sectors promote investment due to their capacity to service a worldwide market, and the increasing volume of output lowers average production costs.
According to the IMF’s fresh-off-the-press World Economic Outlook, the United States’ GDP expanded by 2.5% in 2023, the fastest growth rate among the G7 (Japan came in second at 1.9%). High interest rates needed to mitigate post-pandemic inflation were issues that all nations were facing. But despite such challenges, the United States was nevertheless able to prosper gradually. One reason was the country’s robust labour force growth, which was brought about by a rise in immigration as well as more Americans deciding to enter the workforce. Strong productivity growth was also witnessed in the United States, driven by a creative business sector. These results contribute to the acceleration of the US economy.
Which industries have the greatest possibilities for business growth?
Possessing a significant, healthy, and extremely diverse economy, the United States offers business prospects in almost every industry. The US economy is multisectoral rather than being focused on just one or two industries. This fosters an atmosphere that is advantageous for companies seeking to grow. Two of the top five industries that drew in foreign investment the most in 2021 were manufacturing ($2.1 trillion in FDI) and scientific and technological services ($222 billion).
It is unexpected that manufacturing is the industry receiving the most foreign direct investment (FDI) in the United States, given the established trend over the previous 20 years of looking for low-cost manufacturing centres. Chemical manufacturing, which includes drugs and pharmaceuticals at $821 billion is one of the leading manufacturing sector attracting foreign direct investment. The United States of America boasts a world-class entrepreneurial ecosystem and an unmatched consumer market.
An Overview of American Life Sciences
According to Statista, the pharmaceutical business is expected to generate US$1.156 trillion in revenue by 2024. Over half of the estimated income, or up to US$636 billion, is expected to come from the US alone. In fact, the country’s improved investment outlook is what will put the world industry on a growth trajectory that is favourable by 2024.
In 2023, rising interest rates, persistent geopolitical uncertainty, and several biotech stocks hitting their lowest points were all present. In addition to declining valuations and a recovering industry, a difficult regulatory environment seemed to be endangering research and development.
A 34% increase in life sciences M&A expenditure was reported by EY in 2023. The urgency of big pharma’s dealmaking abilities was increased by patent cliffs and the large quantity of resources that needed to be deployed. With the US$43 billion acquisition of Seagen completed in December, Pfizer now owns nine cancer treatments with the potential to become blockbusters. This serves as an unsettling reminder that oncology and antibody-drug conjugates (ADCs) continue to be major value-creating therapeutic areas. There is no doubt that the United States will continue to be the worldwide industry leader.
Major factors governing the growth of the Life Sciences industry
The Biotechnology Innovation Organisation (BIO) estimates that in 2021, the average annual salary for biosciences workers in the United States was close to $126,000. This is 85% more than what their competitors in the private sector as a whole made. According to overall output, the biosciences sector had a $2.9 trillion economic influence on the US economy in 2021.
Funding is also coming from a wider range of organisations, including the National Institutes of Health (NIH) and venture capital organisations. The need for lab space rises as companies receive greater financing for their research. Over the previous five years, the total inventory of lab/research and development space in nine main markets has increased by 48%, or around 59 million square feet.
States, cities, and municipalities are promoting their access to people and resources in an effort to attract these organisations, which vary from cutting-edge startups to established enterprises.
These are various reasons for scientific businesses to select the US:
- US offers a remarkable workforce, with individuals holding advanced degrees. Additionally, Maryland boasts one of the greatest concentrations of STEM occupations in the nation as well as one of the highest numbers of doctoral degrees.
- International leaders are already present. Investing $300 million in a state-of-the-art manufacturing facility will enable AstraZeneca to introduce life-saving cell therapy platforms in the United States. In order to develop a significant organ production plant, United Therapeutics announced a $100 million expansion in Silver Spring. After spending $28 billion to buy Horizon Therapeutics, Amgen is currently constructing its North American technological centre in Rockville.
- Companies can find unmatched tech-transfer prospects at the many federal labs. These resources assist companies wishing to collaborate on R&D and technological innovations with federal laboratories.
Conclusion
The USA has a lot to offer, including a world-class entrepreneurial ecosystem and an unmatched consumer market. The US offers much more than just stability and security, from ease of conducting business to a skilled and productive workforce. In addition, it leads the globe in a number of important sectors, including technology and financial services. Not to mention the ensuing cash rewards and international market access.