In the face of economic weakness, manufactured exports continue their record growth.
Despite difficult economic times, the continued growth in Minnesota’s exports is welcome news. Exports to Canada and the Philippines gained the most in value, while machinery and computers and electronics products fueled the state’s export growth trend from the industry perspective.
Minnesota ranked second in value among Midwest states, after Wisconsin (US$5.0 billion) in the third quarter of 2008.
- Strong Growth from Top Five Markets
Exports grew strongly to the state’s top five markets and Belgium (ranked ninth) in the third quarter of 2008.
- Increased exports of computers and electronics, and machinery to Canada helped offset decreases in sales of transportation equipment products. Exports of refined petroleum/oil products and food products also grew.
- Mexico was Minnesota’s fourth largest market, based on strong export performances in machinery (up 67 percent to US$32 million) and food (up 19 percent to US$68 million).
- State exports to Belgium – ranked ninth among the state’s top 10 markets – jumped 38 percent to US$162 million based on strong sales of machinery (mainly liquid-dispersing equipment and liquid pumps).
Most Industries Experienced Export Growth
- Machinery turned in the strongest performance among manufacturing industries, posting a gain of US$110 million between the third quarters of 2007 and 2008. Belgium and Canada contributed most of these gains.
- The Philippines was largely responsible for the overall increase in the state’s exports of computer and electronics products; exports of these goods to this country jumped 109 percent to US$182 million in the third quarter. Canada (up US$31 million to US$139 million) and China (up US$21 million to US$105 million) – the second and third largest markets for these goods – were the next strongest performers in exports in this industry.
- Plummeting sales of transportation goods to Russia (down by US$139 million or 99 percent) largely influenced the overall export drop in these goods of 24 percent. Most of that decline, however, was related to an unusual increase of US$139 million in Minnesota-made aircraft-related products that were sold to Russia in the third quarter last year.
Integrated Circuits, Refined Petroleum and Medical Devices Contributed the Most to Growth
- Gains in sales of integrated circuits (up 105 percent to US$236 million) contributed significantly to the state’s overall export growth. The Philippines accounted for almost three-quarters of exports of these products.
- Increased demand in Canada accounted for much of the growth in Minnesota’s exports of refined petroleum (non-crude) oil products (such as fuel oils and lubricating-hydraulic-transmission oils).
- Exports of medical products such as orthopedic/artificial body parts make up the state’s largest product group (as defined by four-digit Harmonized Tariff System products) and were valued at US$277 million. Carried or worn medical devices exported to Ireland primarily accounted for the gains in the third quarter.
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.