West Virginia exported nearly $4 billion worth of products in 2007 - an apparent record high.
The state's exports totaled $3,972,153,000 last year - up 23 percent
from 2006, according to the U.S. Department of Commerce's Office of
Trade and Industry Information.
Steve Spence, executive director of the West Virginia Development
Office, said, "Everything we have indicates this is by far the biggest
year ever" for state exports.
Charleston Daily Mail - Monday, March 31, 2008
West Virginia exported nearly $4 billion worth of products in 2007 - an apparent record high.
The state's exports totaled $3,972,153,000 last year - up 23 percent from 2006, according to the U.S. Department of Commerce's Office of Trade and Industry Information.
Steve Spence, executive director of the West Virginia Development Office, said, "Everything we have indicates this is by far the biggest year ever" for state exports.
"And now, with the dollar buying only about 100 yen, 2008 will likely be another record year," he said. "There's an important message here for any United States or West Virginia company: If there's ever going to be an opportunity to export, it is now. It's very important for companies to evaluate their products and see if they have something they can sell abroad. This is the time."
Spence believes the weak dollar is a major factor behind the export gain.
A dollar, which bought as many as 123 Japanese yen within the past year, now buys only 100 yen. The dollar also has significantly weakened against the euro, the currency used by most European countries.
"The weak dollar clearly makes our products more affordable," Spence said. He noted that leading West Virginia exports, chemicals and coal, are commodities. "In these commodities of course you've got to have quality but price is the driver," he said.
"We're also seeing some positive effects of the global economy," he said. "We recognize that in some cases imports can eliminate U.S. jobs. But in other cases, there are opportunities in the global economy. Smart West Virginia companies are identifying market opportunities around the world and are pursuing those markets aggressively."
While West Virginia exports were up 23 percent in 2007, United States exports rose only 12 percent.
Spence believes West Virginia's exports grew faster because of the state's emphasis on commodities. "Also, we're a small state with a small population - we have to look for markets beyond our borders," he said. "I think that's part of it."
Exports by big companies are often driven by price "but small- and medium-size companies, the ones we typically work with, are aggressively going after opportunities," he said.
Trade missions like Gov. Joe Manchin's November trip to China help, Spence said. "If we take a mission with 15 companies to China, they may sell $1 million worth of equipment, which is a blip in the statistics. But I know we are having an impact. It raises companies' interest in exporting."
Spence noted Manchin has visited the state's top four export markets during his first three years in office - Japan in 2005, Germany and Italy in 2006, and Canada last fall. "That certainly directly helps those companies trying to sell in these markets," he said.
Also, Spence said he has seen companies that develop an Internet presence get interested in exporting when someone a world away finds their site and wants their products. "They may have never before thought of exporting," he said.
The Office of Trade and Industry Information said chemicals made up 36.6 percent of the state's exports last year, followed by mining at 20.8 percent, transportation equipment at 12 percent and machinery at 10.3 percent.
Government data does not reveal the names of exporting companies but some aren't hard to guess. Dow Chemical, DuPont and Bayer dominate the state's chemical industry. Transportation equipment exports likely include some engines and transmissions made at Toyota's factory at Buffalo, Putnam County. The company has said it ships some of those products to Canada.
Canada is West Virginia's largest export destination, followed by Japan, Belgium and China.
The West Virginia Development Office subscribes to Global Trade Information Services Inc., which supplies reports that shed additional light on exports.
Global Trade's reports show that the state's $1.16 billion in exports to Canada last year included $293 million worth of machinery, which includes products like engine parts; $236 million worth of vehicles, which could include auto parts; $166 million worth of plastics; $120 million worth of coal; and $119 million worth of aluminum.
Coal exports to Canada were up 29 percent and aluminum exports were up 42 percent, Spence said.
The state's $303.9 million in exports to Japan included plastics, $121 million; optical, medical instruments and other related products, $55 million; vehicles (which could include auto parts), $48 million; and organic chemicals, $24 million.
Spence said that viewing West Virginia's $289.2 million in exports to Belgium can be tricky. "When you see Belgium or The Netherlands, you have to remember these are big port areas and trans-shipment points," he said. "Products often go there but end up somewhere else in Europe."
Fifty-three percent of the state's exports to Belgium - $153 million worth - were plastics.
West Virginia exported $254.7 million worth of products to China last year, including $86 million worth of plastics; $50 million worth of machinery - up from $16 million the year before; $25 million worth of wood products; and $15 million worth of organic chemicals.
"Aluminum was No. 5," Spence said. "Our aluminum exports to China grew from $2 million in 2006 to $15 million last year, a 685 percent increase." Global Trade's reports show that most of those exports - $14.8 million worth - were in the form of aluminum plate, sheet and strips.
Spence said it is difficult to say how many West Virginia jobs rely on exports. "The U.S. Department of Commerce has used an estimate indicating that every $1 billion in exports creates 15,000 jobs," he said. But Spence has discussed this with his counterparts in other states and "no one feels comfortable with that figure," he said.
"The problem is that the link between jobs and exports varies widely among industries. For example, $1 billion of coal exports may create or retain a very different number of jobs than $1 billion in lumber exports. One is highly mechanized, the other is labor intensive."
Spence referred to an Office of Trade and Industry Information site that an estimated 22,500 West Virginia jobs were related to manufactured exports in 2005. "I'm not sure how they came up with this, but it is the only source I have been able to find that addresses the question," he said. Spence pointed out that the site is related to manufactured products only and does not include mining jobs.
Even though West Virginia's exports soared last year, the state ranked only 40th among the states. Texas, with $168.1 billion worth of exports, was the leader, followed by California, New York, Washington and Illinois.
Ohio ranked eighth with $42.3 billion worth of exports. Pennsylvania ranked 11th with $29.1 billion, Kentucky ranked 17th with $19.6 billion, Virginia ranked 22nd with $16.8 billion and Maryland ranked 30th with $8.9 billion
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