What is the US top service export?

The Unsung Hero of US Exports: “Other Business Services”

When we think of American exports, images of gleaming automobiles, advanced technology, or agricultural commodities often spring to mind. However, a deeper dive into the data reveals a different story. The true champion of US exports isn’t a tangible product, but a broad category known as “other business services,” which dominated the commercial services export landscape in 2022, representing over 73% of the total.

This dominance highlights a significant shift in the global economy towards intangible assets and specialized expertise. While sectors like travel and transportation still hold substantial shares of the US services export pie, the sheer scale of “other business services” underscores the growing importance of this often overlooked sector. So, what exactly falls under this umbrella term?

“Other business services” encompasses a wide array of professional, technical, and financial activities. This includes crucial areas such as:

• Research and development: American expertise in scientific and technological innovation is a globally sought-after commodity. This includes contract research, development of new technologies, and intellectual property licensing.
• Professional and management consulting: US firms provide expertise across diverse fields, from strategic business planning and operational efficiency to legal and financial advice. This expertise is highly valued by businesses worldwide seeking to improve performance and navigate complex global markets.
• Telecommunications, computer, and information services: This rapidly expanding sector includes cloud computing, data processing, software development, and other IT-related services, reflecting the growing digitalization of the global economy.
• Financial services: Wall Street’s influence extends beyond US borders. Exporting financial expertise includes services like investment banking, asset management, and insurance.
• Architectural, engineering, and other technical services: American expertise in these fields contributes to infrastructure projects and industrial development across the globe.

The dominance of “other business services” speaks volumes about the evolving nature of international trade. It signifies a shift away from solely tangible goods towards the export of knowledge, expertise, and specialized skills. Furthermore, it highlights the competitive advantage the US holds in these high-value-added sectors.

While goods-related services play a relatively minor role in the current export landscape, the continued growth of “other business services” is likely to shape the future of US trade. Understanding this trend is crucial for policymakers, businesses, and individuals seeking to navigate the evolving global marketplace. The unsung hero of US exports isn’t a product you can hold in your hand, but rather the intellectual capital and expertise that drives global innovation and growth.