Perspectives
American exports are expected to rise faster than imports over the next five years, with exports to China expected to grow at an annual rate of 7.1% according to an HSBC Bank forecast. Imports from China are expected to grow at a rate of 4.3%.
Many cities and states are seeing exports grow at a much faster rate. As more regions recognize the economic benefits of exports and take steps to encourage global trade, those area will enjoy the steepest growth rates.
Companies in Illinois boosted export revenues by 29% last year according to the International Trade Administration. The state’s largest export category was machinery, which brought in $17.8 billion in revenues for 2011. The Chicago assembly plant of Ford Motor Company is just one of many beneficiaries of this increase in exports, which were mostly sold to buyers in Canada ($19.2 billion), Mexico ($5.7 billion) and China ($3.9 billion).
Texan exports rose by 21% last year, pulling ahead of all other US states. Texas export revenue totaled $249.9 billion. As with Illinois exports, most Texas exports were sold to buyers in Mexico, Canada and China. The Houston-Sugarland-Baytown area alone sold exports that totaled more than $65.8 billion in 2009.
Ohio is also among the states that have ramped up export revenues in recent months. According to the Dayton Business Journal, Ohio companies boosted their export revenue by about 12% last year. The Cincinnati-Middletown metropolitan area exported $15.5 billion worth of merchandise last year, nearly doubling the export revenues of the next best Ohio metropolitan area, Cleveland ($8 billion). Ohio’s exports went mostly to Canada, with Mexico and China trailing close behind.
Not only are US cities exporting a plethora of profitable merchandise, but companies across the country are exporting to essentially the same markets. If these impressive increases in export revenues show anything, it’s that these foreign markets are not saturated and have great potential for more American companies interested in exporting their products.
FURTHER READING:
US Export Growth to China Will Outpace Imports, Report Says
Illinois merchandise exports up 29%
Texas exports soar
Houston helps drive U.S. exports to record $1.48 trillion
Cincinnati exports totaled $15.5B in 2011
