Spanish companies warn against US protectionism (CSR clients and products):: CSR commitment

However, companies are cautious in their future prospects regarding this type of measures, as they believe that the entry of new competitors is their main challenge, followed by organizational changes, and they consider that their biggest strengths are the quality of their goods and services, and alliances with other partners.

These are some of the report’s conclusions The Spanish Company in the United States: Prospects and Challenges. Implemented by the Forum of Famous Spanish Brands (FMRE) in collaboration with ICEX España Exportación e Inversiones. This study aims to analyze the performance and business opportunities of our companies in the North American country to provide a perspective of what are the challenges that our companies face in a market that, in this context characterized by recovery after the pandemic, the war in Ukraine, energy market volatility, inflation and protectionism is a priority.

This report was carried out through a survey of 143 Spanish companies operating there (130) or interested in it (12), through the opinion of a group of experts in the said market, and the testimonies of some Spanish multinational companies. They have years of experience in this country as Acesur, ADEX, CAF, Cosentino, GMV, Mapfre, Santander and SENER.

From the survey results, it can be seen that 55% of the companies in the sample mention that in 2022 they have restored the level of business before the epidemic, 33% indicate that 2023 will be the year they will return. to levels prior to the health crisis and only 12% consider a recovery to occur from 2024 onwards, with this recovery in billing levels becoming more apparent for the more solid companies in said market.

What is the impact of protectionist measures?

Almost 30% of firms surveyed indicate that the protectionist trade policy implemented by the United States has had an impact on their exports to that country, and 36% of firms in the industrial sector acknowledge that this type of measure has had a significant or very significant impact. important in their strategy, and only 5% of the sample of companies stated that they have been affected by NAFTA reform.

Regarding their future perspective regarding this type of measure, more than half (53.5%) indicate that it could have a moderate impact and even 22% consider that it could have a significant or very important impact. By sectors, the industry with nearly a third (31%) of those surveyed believing that protectionist measures would be very important or very important to open up new opportunities in the US.

What are the drivers, challenges and strengths

For 78% of companies, the amount of business they get in this market is an important or very important factor in their decision to operate in this country. Other aspects such as image and prestige (80%) or possibilities of contacting partners are also highly valued (78%). For companies in industrial sectors, the factor of innovation and technology is indicated and is also seen as very important.

Spanish companies define a series of challenges Looking to the future, the most important of which is the entry of new competitors. Thus, 45.9% considered the entry of new competitors to be the biggest challenge they face, followed by organizational changes (34.3%). how strength pointCompanies cite the quality of the products offered (63%), the brand’s image and positioning (71%), and the competitive price (67%). Alliances with other partners are considered a success factor by more than 80% of companies. In general, a very high percentage of companies consider the most important factors for success in the United States to be the quality of products, services and alliances with other partners.

Hispanic ancestry is cited by 61% as a strength, while this ancestry is another 39% as a detracting weakness. by sectors, It is the food and beverage sector where the Spanish brand is most appreciated (76%) However, this percentage drops to 50% in the industrial sector.

Given the challenges facing Hispanic businesses in the United States, what kind of support do they need from management and other institutions? 62% of companies consider it very important Identify job opportunities. The same goes for identifying partners and promoting the Spanish brand, because more than 40% of companies will need support in these two areas.

Trade relations with Spain

Spain imported €17.089m worth of goods from the United States, while Spanish exports to that market amounted to €14.769m in 2021, representing a trade deficit of €2,320m and a coverage rate of 86.42%.

By sectors, machinery and mechanical devices are the most exported products followed by fuel and mineral oils, electrical appliances and materials, cars and motor vehicles, and pharmaceutical products. Spanish imports from the United States are, by sector, primarily fuels and mineral oils, followed by pharmaceutical products, mechanical machinery and devices, optical devices and materials, and electrical devices and materials.

With regard to the services sector, imports from the United States amounted to 4,464 million euros, and exports 7,454 million euros, which represents a Spanish surplus of 2,990 million euros in 2021.

Bilateral investment flows show that the investment in Spain by the United States amounted to 4,293 million euros while the Spanish investment in the American market amounted to 5,145 million. Spain ranks 11th in direct investment in this country.