Activity of U.S. companies increasing in emerging markets
U.S. companies are increasing their global footprints in emerging, high growth markets – due in large part to increasing confidence in the domestic economy.
U.S.-based companies increased mergers and acquisitions (M&A) activity in emerging and high-growth markets in the first half of 2013, according to a recent news release by KPMG International.
The release quoted Mark Barnes, national leader of KPMG’s U.S. High Growth Markets practice: “U.S. companies are exhibiting higher levels of confidence domestically and we’re starting to see this translate into increased acquisition activity in emerging markets.”
KPMG noted that the most popular geographic targets for U.S. companies in the first half of 2013 were Brazil, India, South American countries, South and East Asia, Central America and the Caribbean.
Those results certainly mirror responses to the quarterly “How’s Business” global aftermarket business survey by the AASA Overseas Automotive Council (OAC) of its regional directors and board of governors about their experiences in Q3 2013.
The OAC board of international aftermarket business executives also reports Brazil as their top growth market. The country’s economy is strong – and more economic growth is expected as the country prepares to host the 2014 Soccer World Cup and 2016 Summer Olympics. Brazil’s aftermarket infrastructure also is growing. AutoZone has located at least 10 stores in Brazil currently and has aggressive expansion plans to add more when those are established
As in the KPMG report, OAC members cited Latin America as a growth market, “Our Latin America Region is right on track with projections,” one respondent stated. While noting that Venezuelan business has declined, a survey participant added, “Other (Latin American) regions have picked up … Business in Mexico is going strong!” Another stated, “Business is steady in Mexico, the Middle East and South America.”
OAC survey respondents are cautiously optimistic about the Colombian market. Market performance had been on the decline, but members are watching efforts by the Colombian government to reactivate its economy through the trade agreements with the U.S., the European Union and other countries over the next two years.
In general, OAC Survey responses were positive and indicated that business was up. This was a typical response: “Business in our U.S. and international regions in the first seven months of 2013 has been excellent.”
The quarterly OAC “How’s Business” reports are available to Council members only. For more information about the OAC and its programs, visit www.oac-intl.org.
Dan Pike is the vice president of membership and member services at the Automotive Aftermarket Suppliers Association (AASA) and group executive of AASA’s international aftermarket council, the Overseas Automotive Council (OAC). OAC promotes the sale in foreign markets of automotive and heavy-duty products manufactured in North America. Those products include components, accessories, chemicals, hand and power tools, service maintenance and repair equipment, and paint and body supplies for both cars and trucks. OAC has more than 350 members in more than 40 countries.
AASA (www.aftermarketsuppliers.org) exclusively serves manufacturers of aftermarket components, tools and equipment, and related products. It is a recognized industry change agent – promoting a collaborative industry environment, providing a forum to address issues and serving as a valued resource for members.
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