In the US, international deficit in goods and services increased to $617.7 billion in 2004 from $496.5 billion in 2003. The goods and services deficit in 2004 was $617.7 billion, the highest on record. As a percentage of U.S. gross domestic product, the goods and services deficit increased from 4.5 percent in 2003 to 5.3 percent in 2004. Exports increased $125.6 billion in 2004 to $1,146.1 billion. Goods were $807.6 billion and services were $338.6 billion
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Imports increased $246.9 billion in 2004 to $1,763.9 billion. Goods were $1,473.8 billion and services were $290.1 billion. For goods, the deficit was $666.2 billion in 2004, the highest on record. For services, the surplus was $48.5 billion in 2004, down from $51.0 billion in 2003.

For 2004, exports of goods were up $94.5 billion from 2003. The largest increases occurred in capital goods ($37.5 billion; primarily industrial machines, telecommunication equipment, electric apparatus, and control instruments); industrial supplies and materials ($30.5 billion); and consumer goods ($12.9 billion).

For 2004, imports of goods were up $213.1 billion from 2003. The largest increases occurred in industrial supplies and materials ($98.6 billion; primarily crude oil, iron and steel products, and other petroleum products); capital goods ($48.0 billion); and consumer goods ($39.3 billion).
* The goods deficit with China increased from $124.1 billion in 2003 to $162.0 billion in 2004. Exports increased $6.4 billion (primarily other industrial machines, raw cotton, industrial engines, semiconductors, and wheat) to $34.7 billion, while imports increased $44.3 billion (primarily computer accessories, computers, other household goods, textile apparel of nonwool or cotton, TV’s and VCR’s, and telecommunications equipment) to $196.7 billion.

The goods deficit with Japan increased from $66.0 billion in 2003 to $75.2 billion in 2004. Exports increased $2.4 billion (primarily other industrial machines, corn, organic chemicals, civilian aircraft, and metallurgical grade coal) to $54.4 billion, while imports increased $11.6 billion (primarily parts and accessories of vehicles; excavating machinery; other industrial machinery; and electric apparatus) to $129.6 billion.
* The goods deficit with the European Union (25) increased from $97.9 billion in 2003 to $110.0 billion in 2004. Exports increased $17.4 billion (primarily pharmaceutical preparations, civilian aircraft, engines of civilian aircraft, and telecommunications equipment) to $172.6 billion, while imports increased $29.5 billion (primarily other petroleum products; pharmaceutical preparations; medicinal equipment; iron and steel mill products; and other industrial machines) to $282.6 billion.

This is the background to the figures shown in our special trade statistics issue. Petroleum product and steel imports have increased substantially in value which is a reflection of prevailing world prices. The highlights are shown in the following pages of this issue of Brushwork Magazine. A full set of US import and export statistics relevant to our industry may be seen online at www.brushwork.com.

On particularly interesting fact is that between 2003 and 2004, the value and volume of bristle imports declined dramatically from $7.7 to $5.7 million, presumably a reflection of the even more dramatic increase in value and volume of paint, distemper and similar brushes from $44.8 to $62.5 million in the same time period.

It would be amazing to think that the overall market has increased so substantially. It is most likely that American brush makers are making less and imports are taking up an increasing market share.
In other areas such as brooms brushes and squeegees, a similar story can me told. Imports increased from $282.6 million to $332.8 million.

A particularly interesting phenomenon is observable in the area of Toothbrushes. Although volumes increased from 481.2 million pieces to 519.8 million, the value decreased from $187.4 million to $170.4 million. In the country by country details this shift to lower cost countries can be observed in detail. Most noticeably, China was exporting almost 50 million more brushes (a 25% increase) at less than the total cost of the previous year. ($32.3 million in 2003 versus 31.9 in 2004).