US Export Plan - Sector Report - Engineering and Advanced Manufacturing

This is one of 8 sector reports that outlines the background research and analysis prepared in support of the US Export Plan and looks to identify the key opportunities in the USA for Scottish companies in this sector.


Table: Top Priority States for Scotland in the Sector

The table below provides a summary of the top five priority states identified in the Matrix model, which have been cross-referenced with research, analysis and stakeholder engagement.

State: California

Strengths/opportunities:

  • Major ports
  • Investment in net zero
  • Home to Silicon Valley and tech clusters
  • Strong focus on technology-driven manufacturing
  • Highest volume of VC deals in Eng&AM
  • Highest number of Eng&AM firms (Orbis data)

Subsector opportunities for Scottish exporters:

  • Subsea engineering
  • Tidal/marine expertise and tech

State level risk/considerations for Scottish exporters:

  • Business structure restrictions for engineering companies (e.g LLC ban)
  • Uncertainty on renewable projects
  • Dual Certificates of Authorization for firms providing both engineering and land surveying services
  • Expensive

State: Texas

Strengths/opportunities:

  • Manufacturing powerhouse
  • 2nd highest number of Eng&AM firms (Orbis data)
  • UK-Texas MoU
  • Strong business environment
  • Tax credits and grants for aerospace and defence manufacturing

Subsector opportunities for Scottish exporters:

  • Semiconductors
  • Advanced materials
  • Precision engineering
  • Robotics and automation

State level risk/considerations for Scottish exporters:

  • Professional qualification requirements for engineers

State: Michigan

Strengths/opportunities:

  • Epicentre of the US automative industry
  • Growth in aerospace and defence
  • Home to major military vehicle manufacturers
  • ODAI offers grant assistance, proposal support, and ITAR/compliance guidance to facilitate market entry

Subsector opportunities for Scottish exporters:

  • Automotive systems and parts
  • Composite materials
  • Precision engineering
  • Dual-use technologies

State level risk/considerations for Scottish exporters:

  • Professional Engineers must hold a Michigan PE license - requiring an ABET/CEAB degree, FE and PE exams, 4+ years’ experience, and biennial renewal with 30 hours of Continuing Education
  • Engineering firms must employ a Michigan-licensed PE and satisfy ownership rules

State: North Carolina

Strengths/opportunities:

  • Rapid growth in EV battery plants, aerospace and advanced materials and is attracting big names in manufacturing.
  • Ranked no.1 on ‘Best states for manufacturing 2024’ (source: Site Selection Group)
  • UK-North Carolina MoU

Subsector opportunities for Scottish exporters:

  • Precision engineering
  • Automotive
  • Advanced materials

State level risk/considerations for Scottish exporters:

  • Individual Professional Engineers (PEs) must be licensed in North Carolina: requiring an ABET-accredited degree, FE & PE exams, 4 years of experience, and renewal with continuing education.
  • Firms offering engineering services must be licensed with the NC Board of Examiners (NCBELS)

State: Florida

Strengths/opportunities:

  • Very high GDP for Eng&AM
  • Aerospace/aviation cluster
  • UK-Florida MoU
  • Very high number of Eng&AM businesses
  • 2nd highest number of VC deals in the sector
  • Emerging semiconductor hub
  • Tax incentives for advanced manufacturing (e.g. exemptions for machinery)

Subsector opportunities for Scottish exporters:

  • Semiconductors
  • Precision engineering
  • Advanced materials
  • Engineering consultancy

State level risk/considerations for Scottish exporters:

  • Florida Board of Professional Engineers (FBPE) regulates professional engineers
  • Good Manufacturing Practices (GMP) Certificates required for certain products such as medical devices.

Contact

Email: William.Gray@gov.scot

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