Minnesota’s manufactured exports totaled US$3.6 billion in the second quarter of 2009. The state’s exports decreased 19 percent between the second quarters of 2008 and 2009. U.S. exports fell by 26 percent in the same period. Minnesota’s manufactured exports totaled US$3.6 billion in the second quarter of 2009. The state’s exports decreased 19 percent between the second quarters of 2008 and 2009. U.S. exports fell by 26 percent in the same period.

Exports from most Minnesota manufacturing industries declined significantly, with three of the top four largest industries suffering the largest declines: computers and electronics, transportation equipment and machinery. Exports to all regions declined.

The most severe declines were to North America (down 25 percent to US$1.1 billion) and the European Union (down 24 percent to US$961 million).

During the first six months of 2009, Minnesota exports dropped 19.2 percent compared to 24.1 percent nationally.

Exports Increase to Two of the State’s Top 10 Markets
* Among the state’s top 10 country markets, only China and Korea experienced an increase in Minnesota exports during this period.
* Malaysia (Minnesota’s 11th largest export market) and Saudi Arabia (19th largest) posted the largest gains in value during this period. Exports to Malaysia jumped US$44 million to US$93 million, while those to Saudi Arabia jumped US$16 million to US$36 million.
* Strong sales of machinery, food and fabricated metals to China helped to mitigate declines in computers and electronics, chemicals and primary metals.
* Exports to Korea increased by 9 percent, driven by strong demand for machinery (up 102 percent to US$50 million). Machinery was the dominant export and accounted for 35 percent of the state’s exports to this market.

Export Growth Was Limited to Selected Industries and Countries
* Although exports from three of Minnesota’s top four manufacturing industries computers and electronics (down US$188 million), transportation equipment (down US$187 million) and machinery (down US$89 million) – fell sharply between the second quarters of 2008 and 2009, some markets for these industries grew strongly.
* Strong gains in sales of computer and electronics products to Malaysia, Saudi Arabia and Ireland helped to offset substantially weaker demand in the Philippines (down 65 percent to US$53 million), multiple countries in the European Union and Canada.
* Demand for Minnesota’s machinery products increased strongly in Korea, China, Malaysia and Taiwan. In contrast, sales of these products to Canada and Belgium (two of the top three markets) dropped significantly.
* Petroleum and coal products was Minnesota’s only manufacturing industry that had increased exports during this period. Exports grew 184 percent to almost US$23 million and were virtually all shipped to Canada.

Machinery, Electrical Machinery and Transportation Products Suffer Large Export Declines
* Machinery:
In Belgium, sales of the state’s machinery products (notably, centrifuges and filters; and liquid- and sand-dispersing equipment) plunged 52 percent to US$42 million. Sales to Canada and the U.K. were also down (by about US$33 million each), mainly for lifting equipment (Canada), spark-ignition engines (Canada) and computer-related parts (U.K.).
* Optics, Medical Instruments: Strong growth in sales of optic fiber products to Korea (up 652 percent to US$28 million) and Japan (up 107 percent to US$27 million), and of navigational products to the United Arab Emirates (from US$34,600 to US$10 million) and the United Kingdom (up 332 percent to US$5 million) helped offset lower sales of orthopedic/artificial body parts and calibration instruments.
* Electrical Machinery: The fall in exports of integrated circuits by 58 percent to US$83 million largely contributed to the drop in exports of electrical machinery. The Philippines accounted for most of that drop.

Minnesota Quarterly Export Statistics is the most current resource available for tracking the state’s manufactured export trends and is prepared for the Minnesota Trade Office (MTO) by the Department of Employment and Economic Development’s (DEED) Analysis and Evaluation Office (Thu-Mai Ho-Kim, 651-259-7180). Past issues may be viewed at www.exportminnesota.com/itradestats.htm and results from manufacturing conditions surveys are located at www.deed.state.mn.us/facts/manufacturing.htm on DEED’s Web site.

 Industry-level export data based on North American Industry Classification System industries (NAICS) are collected by the U.S. Department of Commerce (USDOC) and are distributed by the World Institute of Social and Economic Research (WISER). Product-level export data based on the Harmonized Tariff System (Schedule B) are collected by the USDOC and are distributed by the Global Trade Information Services. Product-level export data provide additional information and insights on the industry-level export data.

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