Minnesota exports of agricultural, mining and manufactured products grew to US$20.3 billion in 2011.

• The state’s exports increased US$1.4 billion (or 7.3 percent) between 2010 and 2011, continuing their recovery from the economic downturn.
• The US$20.3 billion threshold is a record for Minnesota exports of goods, exceeding the previous record of US$19.2 billion in 2008.
• Minnesota moved up to 19th in exports among all states, as Kentucky dropped to 20th place.

• U.S. exports increased 15.8 percent. The two largest state exporters, Texas and California, had the largest gains in value among all states.

Most of Minnesota’s major industries increased exports between 2010 and 2011.
• Leading exporting industries were machinery (US$4 billion, up 1 percent), optics and medical instruments (US$2.8 billion, down 2 percent) and electrical machinery (US$2.7 billion, up 13 percent).

Exports increased by 10 percent or more to eight of the state’s 20 largest country markets in 2011.
• Minnesota’s top five export markets were Canada (US$5.8 billion), China (US$2.3 billion), Japan (US$1.3 billion), Mexico (US$1.2 billion) and Germany (US$734 million).

About 8,280 businesses throughout Minnesota exported goods and services in 2010, according to the U.S. Department of Commerce, an increase of more than 500 exporters since 2009. These exporters have an important impact on our economy, and their success on a global scale can mean new jobs in the state.

Exports are critical to the state economy.
• Manufactured exports are responsible for an estimated 114,900 jobs in Minnesota, ranking 15th largest among all states, according to the International Trade Administration of the U.S. Department of Commerce (based on 2009 data). About 57,100 of these export-related jobs are in manufacturing, while another 57,800 export-related jobs are in other industries such as marketing and sales, transportation, and logistics – key sectors in delivering goods to export markets.

The following sections provide more details on exports by industry, country markets and products.

Regional Export Markets

• Minnesota’s three main regional markets in 2011 were North America, Asia and the European Union.
• Compared with U.S. exporters, Minnesota exporters sell a greater share of goods to Asia (34 percent vs. 26 percent) but a smaller share to Central and South America (4 percent vs. 11 percent).

North America:
• Minnesota’s largest regional market was valued at US$7 billion in exports and accounted for 35 percent of state exports.
• The state’s exports to North America were up 10 percent between 2010 and 2011, compared with U.S. growth to this region of 16 percent.
• Largest gains: Canada (up US$397 million to US$5.8 billion), Mexico (up US$238 million to US$1.2 billion).

Asia:
• Minnesota exports were valued at US$6.9 billion and accounted for 34 percent of state exports.
• The state’s exports to Asia were up 11 percent between 2010 and 2011, slightly less than U.S. growth of 13 percent.
• Major markets: China, Japan, Korea, Singapore.
• Largest gains: China (up US$360 million to US$2.3 billion), Japan (up US$170 million to US$1.3 billion), South Korea (up US$73 million to US$702 million).

European Union (EU):
• Minnesota exports were valued at US$4 billion and accounted for 20 percent of state exports.
• The state’s exports to the EU were down 2 percent between 2010 and 2011, which is partly due to weak exports to Ireland and the Netherlands. U.S. export growth to the EU was 12 percent.
• Major markets: Germany, United Kingdom, Belgium, the Netherlands.
• Largest gains: Austria (up US$38 million to US$91 million), Italy (up US$37 million to US$268 million), Belgium (up US$32 million to US$623 million).
• Largest declines: Ireland (down US$99 million to US$334 million), the Netherlands (down US$60 million to US$393 million).

Central and South America:
• Minnesota exports were valued at US$892 million and accounted for 4 percent of state exports.
• The state’s exports to this region were up 3 percent between 2010 and 2011, less than the U.S. increase of 21 percent.
• Major markets: Brazil (US$309 million, up 9 percent), Argentina (US$89 million, up 28 percent), Chile (US$85 million, down 32 percent).

Top Country Markets
Minnesota increased exports to 15 of the state’s top 25 markets between 2010 and 2011.
• Few major changes in rank among top 25 markets. Largest changes: Finland (up to 24th from 28th), Australia (up to 12th from 14th), United Arab Emirates (up to 23rd from 25th).
• Minnesota accounts for relatively large shares of U.S. exports to the Philippines (6.8 percent), Ireland (4.4 percent), Finland (3.7 percent), Thailand (2.9 percent) and Sweden (2.8 percent), compared with the state’s overall share of U.S. exports (1.4 percent).

Canada (Rank: 1):
• Export value, 2011: US$5.8 billion.
• State trend, 2010-2011: up 7 percent.
• U.S. trend, 2010-2011: up 13 percent.
• Top three industries: machinery (US$863 million), mineral oil/fuel (US$420 million), electrical machinery (US$408 million).
• Largest gains: mineral oil/fuel (up US$217 million), beverages (up US$122 million to US$344 million).
• Largest declines: ores, slag, ash (down US$112 million to US$339 million), railway (down US$40 million to US$6 million), electrical machinery (down US$35 million to US$408 million).
• Minnesota is the primary U.S. source for snowmobile vehicles (HS 870310) to Canada, accounting for 72 percent of U.S. exports of these goods to Canada. The state sold US$172 million of these goods to Canada.

China (including Hong Kong) (2):
• Export value, 2011: US$2.3 billion.
• State trend, 2010-2011: up 18 percent.
• U.S. trend, 2010-2011: up 19 percent.
• Top three industries: machinery (US$565 million), optics, medical instruments (US$370 million), electrical machinery (US$338 million).
• Largest gains: machinery (up US$71 million), electrical machinery (up US$81 million).
• Largest declines: food waste (down US$27 million to US$16 million), miscellaneous grains (down US$21 million to US$20 million).

Japan (3):
• Export value, 2011: US$1.3 billion.
• State trend, 2010-2011: up 15 percent.
• U.S. trend, 2010-2011: up 9 percent.
• Top three industries: optics, medical instruments (US$314 million), cereals (US$238 million), electrical machinery (US$137 million).
• Largest gains: cereals (up US$126 million), precious stones/metals (up US$25 million to US$32 million), optics, medical instruments (up US$18 million). Exports of precious stones/metals mainly consist of waste and scrap of metals.
• Largest declines: organic chemicals (down US$22 million to US$11 million).

Mexico (4):
• Export value, 2011: US$1.2 billion.
• State trend, 2010-2011: up 24 percent.
• U.S. trend, 2010-2011: up 21 percent.
• Top three industries: machinery (US$213 million), electrical machinery (US$98 million), miscellaneous grains (US$97 million).
• Largest gains: cereals (up US$68 million to US$83 million), vehicles (up US$49 million to US$65 million), machinery (up US$41 million).
• Largest decline: miscellaneous grains (down US$21 million).

Germany (5):
• Export value, 2011: US$734 million.
• State trend, 2010-2011: down 6 percent.
• U.S. trend, 2010-2011: up 2 percent.
• Top three industries: optics, medical instruments (US$211 million), machinery (US$173 million), electrical machinery (US$136 million).
• Largest gains: optics, medical instruments (up US$20 million), machinery (up US$11 million).
• Largest declines: ores, slag, ash (down US$33 million to US$9,000), vehicles (down US$17 million to US$7 million), pharmaceutical (down US$17 million to US$26 million).
• Minnesota is the top U.S. source for exports of measuring medical instruments (HS 9026) to Germany. The state exported US$59 million of these goods to Germany, representing 26 percent of U.S. sales of these goods to Germany.

South Korea (6):
• Export value, 2011: US$702 million.
• State trend, 2010-2011: up 12 percent.
• U.S. trend, 2010-2011: up 12 percent.
• Top three industries: optics, medical instruments (US$154 million), machinery (US$106 million), meat (US$104 million).
• Largest gains: meat (up US$63 million), optics, medical instruments (up US$42 million), electrical machinery (up US$20 million to US$73 million).
• Largest declines: textile fabric (down US$26 million to US$3 million), machinery (down US$25 million).
• South Korea purchased 27 percent of Minnesota’s US$386 million in exports of meat. Together with China (US$112 million), these two markets account for more than half of the state’s meat exports.

Belgium (7):
• Export value, 2011: US$623 million.
• State trend, 2010-2011: up 5 percent.
• U.S. trend, 2010-2011: up 17 percent.
• Top three industries: optics, medical instruments (US$230 million), machinery (US$199 million), aircraft, spacecraft (US$47 million).
• Largest gain: aircraft (up US$47 million), precious stones/metal (up US$19 million to US$24 million).
• Largest declines: optics, medical instruments (down US$36 million), ores, slag, ash (down US$18 million to US$0).
• Minnesota is the second-largest exporter of dispersing machinery (HS 8424, e.g. spray guns) among all states, and the largest to Belgium (US$67 million). The state accounted for 74 percent of U.S. exports of this product to Belgium.

 

The United Kingdom (8):
• Export value, 2011: US$557 million.
• State trend, 2010-2011: down 5 percent.
• U.S. trend, 2010-2011: up 16 percent.
• Top three industries: machinery (US$121 million), electrical machinery (US$109 million), optics, medical instruments (US$86 million).
• Largest gains: electrical machinery (up US$11 million), aircraft, spacecraft (up US$10 million to US$42 million).
• Largest declines: pharmaceutical (down US$25 million to US$11 million), optics, medical instruments (down US$10 million).

Singapore (9):
• Export value, 2011: US$547 million.
• State trend, 2010-2011: up 10 percent.
• U.S. trend, 2010-2011: up 8 percent.
• Top three industries: machinery (US$128 million), plastic (US$108 million), optics, medical instruments (US$72 million).
• Largest gains: plastic (up US$41 million), machinery (up US$16 million).
• Largest declines: optics, medical instruments (down US$21 million).
• Minnesota accounted for almost 100 percent of U.S exports (valued at US$9.1 million) of multiple-walled insulating units of glass (HS 7008) that were sold to Singapore.

Philippines (10):
• Export value, 2011: US$524 million.
• State trend, 2010-2011: up 13 percent.
• U.S. trend, 2010-2011: up 4 percent.
• Top three industries: electrical machinery (US$431 million), miscellaneous grains (US$19 million), prepared meat (US$15 million).
• Largest gains: electrical machinery (up US$47 million). Electrical machinery accounts for 82 percent of state exports to the Philippines.
• Minnesota is the second-largest exporter of electronic integrated circuits (HS 8542) (US$395 million) and the largest exporter of printed circuits (HS 8534) (US$28 million) to the Philippines, among all states.
• Among U.S. markets, the Philippines is less prominent and is ranked 32nd.

Fastest-Growing Markets
Minnesota’s 10 fastest-growing country markets by growth rate (among those with at least US$50 million in exports) were located in a variety of regions.
• Austria (26) jumped from 40th in 2010, based on particularly strong demand for vehicles (up 80 percent to US$34 million) and optics/medical instruments (up 181 percent to US$21 million).

• United Arab Emirates (UAE) (23): The top three exported products generated the most growth: machinery (US$42 million, up 55 percent, and mostly centrifuges and filters) and vehicles (US$30 million, up 154 percent, mostly armored war vehicles), and arms and ammunition (US$13 million, up 883 percent).
• Vietnam (30) jumped up from 37th in 2010, with exports increasing 50 percent to US$84 million. The main growth segments were food waste (up 133 percent to US$21 million), miscellaneous grains – mainly soybeans (up 37 percent to US$13 million), and electrical machinery (up 201 percent to US$6 million).
• Finland (24): As in 2010, Finland remained one of Minnesota’s fastest growing markets, with sales of snowmobiles driving growth.
• Argentina (27). Exports increased by 28 percent to US$89 million, mainly driven by growth in machinery (especially poultry and agricultural equipment), which gained US$11 million to US$40 million.

Other Emerging Markets
• Brazil (17) State exports to Brazil increased 9 percent to US$309 million in 2011. Major export areas were machinery (US$118 million), optics/medical instruments (US$63 million), aircraft/spacecraft (US$36 million) and electrical machinery (US$35 million). Brazil is among the nation’s 10-largest export markets (ranked eighth). U.S. export to Brazil grew 21 percent between 2010 and 2011.
• India (20) Minnesota businesses sold close to US$204 million in goods to India in 2011, down 1 percent since 2010. The main products sold were machinery (US$78 million), optics/medical instruments (US$34 million), plastics (US$28 million) and electrical machinery (US$21 million).
• Saudi Arabia (28) Exports increased by 5 percent to US$88 million. The top exported products were machinery (US$28 million), electrical machinery (US$16 million) and optics/medical instruments (US$16 million).
• Turkey (38) State exports to Turkey were valued at US$70 million in 2011, up 12 percent since 2010. The main products sold were machinery (US$24 million), electrical machinery (US$15 million) and optics/medical instruments (US$13 million).

Export Logistics
Exports are shipped via multiple transport modes. Exports leave the country by air, ship or other modes, which includes road, rail and pipeline.

Air shipments were valued at US$7.6 billion. The main industries shipped by air – together accounting for 78 percent of air shipments – were optics, medical instruments (US$2.4 billion), electrical machinery (US$2 billion) and machinery (US$1.6 billion).

Shipments sent via other (land-based) modes were valued at US$7.4 billion. Vehicles (US$1.4 billion), machinery (US$1.2 billion) and electrical machinery (US$470 million) were leading products sent by land. Some food products such as beverages, fats and oils, baking goods and food waste are primarily shipped by these other modes.

Ships carried US$5.4 billion of goods overseas. The five largest industries exported by ship were machinery (US$1.1 billion), plastic (US$572 million), ores, slag, ash (US$395 million), cereals (US$331 million) and meat (US$315 million). They accounted for 51 percent of all state exports by ship.

Peer Performance
In 2011, Minnesota ranked 19th among all states, up one spot compared with 2010.

The top 10 states strongly contributed to the national increase in exports of 16 percent (or US$202 billion), gaining a combined US$138 billion in exports between 2010 and 2011. The top two states, Texas (up US$43 billion) and California (up US$16 billion), had the largest gains among all states.

During this period, annual exports fell only from Washington, D.C., (down 30 percent to US$1 billion) and New Hampshire (down 2 percent to US$4.3 billion).

Top Product Markets
Most of Minnesota’s top 20 major products (two-digit Harmonized Series) increased exports between 2010 and 2011. Some exceptions were optics and medical instruments (down 2 percent to US$2.8 billion), ores, slag, ash (down 30 percent to US$397 million) and miscellaneous grains (down 15 percent to US$310 million).

Minnesota ranked among the top 15 exporting states in some of its major products:
• Optics, medical instruments (seventh)
• Electrical machinery (13th)
• Food waste, animal feed (fifth)
• Cereals (11th)*
• Ores, slag and ash (seventh)
• Beverages (sixth)
• Miscellaneous grains (incl. soybeans) (11th)*

*For bulky agricultural commodities in particular, this data source may attribute exports to the U.S. port of exit, which often may be in a different state than the state of production. For these two products, Louisiana is ranked first. Using different methodology, the U.S. Department of Agriculture ranked Minnesota as the third-largest exporter of soybeans and related products and the sixth-largest exporter of wheat and related products, among all states in fiscal 2010.

84 Machinery (Rank: 1)
• Export value, 2011: US$4 billion.
• State trend, 2010-2011: up 1 percent.
• U.S. trend, 2010-2011: up 12 percent.
• Major country markets: Canada (US$863 million), China (US$565 million), Mexico (US$213 million).
• Largest gains: China (up US$71 million), Canada (up US$53 million), Mexico (up US$41 million).
• Largest declines: Malaysia (down US$85 million to US$95 million), Thailand (down US$72 million to US$113 million).

90 Optics, Medical Instruments (2)
• Export value, 2011: US$2.8 billion.
• State trend, 2010-2011: down 2 percent.
• U.S. trend, 2010-2011: up 7 percent.
• Major country markets: China (US$370 million), Japan (US$314 million), Canada (US$235 million).
• Largest gains: South Korea (up US$42 million to US$154 million), Canada (up US$30 million).
• Largest declines: Netherlands (down US$81 million to US$136 million), Ireland (down US$55 million to US$218 million).

85 Electrical Machinery (3)
• Export value, 2011: US$2.7 billion.
• State trend, 2010-2011: up 13 percent.
• U.S. trend, 2010-2011: up 5 percent.
• Major country markets: Philippines (US$431 million), Canada (US$408 million), China (US$338 million).
• Largest gains: China (up US$81 million), Malaysia (up US$56 million to US$101 million), Philippines (up US$47 million).
• Largest declines: Canada (down US$35 million), Ireland (down US$22 million to US$56 million).

87 Vehicles (4)
• Export value, 2011: US$1.7 billion.
• State trend, 2010-2011: up 10 percent.
• U.S. trend, 2010-2011: up 21 percent.
• Major country markets: Canada (US$1.1 billion), Finland (US$89 million), Italy (US$66 million).
• Largest gains: Mexico (up US$49 million to US$65 million), Finland (up US$31 million).
• Largest declines: Canada (down US$23 million), Germany (down US$17 million to US$7 million).

39 Plastic (5)
• Export value, 2011: US$1.1 billion.
• State trend, 2010-2011: up 3 percent.
• U.S. trend, 2010-2011: up 9 percent.
• Major country markets: China (US$256 million), Canada (US$115 million), Singapore (US$108 million).
• Largest gains: Singapore (up US$41 million), China (up US$15 million).
• Largest declines: Mexico (down US$11 million to US$84 million), South Korea (down US$10 million to US$74 million).

88 Aircraft, Spacecraft (6)
• Export value, 2011: US$502 million.
• State trend, 2010-2011: up 10 percent.
• U.S. trend, 2010-2011: up 10 percent.
• Major country markets: France (US$94 million), Singapore (US$52 million), Belgium (US$47 million).
• Largest gains: Belgium (up US$47 million), China (up US$18 million to US$25 million), Mexico (up US$12 million to US$18 million).
• Largest declines: Netherlands (down US$34 million to US$13 million), Taiwan (down US$24 million to US$455,000).

23 Food Waste, Animal Feed (7)
• Export value, 2011: US$483 million.
• State trend, 2010-2011: up 7 percent.
• U.S. trend, 2010-2011: up 2 percent.
• Major country markets: Canada (US$222 million), Mexico (US$67 million), Japan (US$25 million).
• Largest gains: Mexico (up US$31 million), Canada (up US$30 million).
• Largest declines: China (down US$27 million to US$16 million).

10 Cereals (8)
• Export value, 2011: US$433 million.
• State trend, 2010-2011: up 40 percent.
• U.S. trend, 2010-2011: up 41 percent.
• Major country markets: Japan (US$234 million), Mexico (US$83 million), Canada (US$30 million).
• Largest gains: Japan (up US$126 million), Mexico (up US$68 million).
• Corn accounts for 91 percent of cereals exports; 59 percent of corn is sold to Japan.

27 Mineral Fuel, Oil (9)
• Export value, 2011: US$427 million.
• State trend, 2010-2011: up 104 percent.
• U.S. trend, 2010-2011: up 59 percent.
• Major country markets: Canada (US$420 million).
• Largest gains: Canada (up US$217 million).
• Canada purchased 98 percent of Minnesota’s exports of these products.

26 Ores, Slag, Ash (10)
• Export value, 2011: US$397 million.
• State trend, 2010-2011: down 30 percent.
• U.S. trend, 2010-2011: up 38 percent.
• Major country markets: Canada (US$339 million), China (US$37 million).
• Largest declines: Canada (down US$112 million), France (down US$40 million to US$0).
• Canada accounted for 86 percent of the state’s exports of these products.

Fastest-Growing Export Products
Among four-digit products with exports of at least US$100 million, state export growth rates were highest between 2010 and 2011 for crude oil, pork, corn and other pharmaceutical products.

The Big Picture in Minnesota Exports
Minnesota’s exports from manufacturing, services and agricultural industries are estimated at US$31.2 billion (preliminary) for 2011.
• Manufactured exports (US$18.4 billion) accounted for 59 percent of the state’s total exports.
• Based on the Harmonized export data series in this report, non-manufactured goods (agriculture, forestry, mining, etc.) accounted for about US$1.9 billion in exports. (See below for another source of agricultural export estimates.)
• Exports of services cover transportation-related services, royalties and licenses, and other private services. No official comprehensive state-level export data for services are available. DEED estimated Minnesota exports of services at US$10.9 billion in 2011. 

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