Monday, March 17, 2008

Texas Takes Lead As Nations Top Exporter

Texas! Only steers and American exports come from Texas, Private Cowboy.

. .
From LAEDC :

Texas Takes Lead as Nation’s Top Exporter

The national export figures released on Friday by the Bureau of Economic Analysis (BEA) revealed a change in the top exporter. For the first time since the U.S. Principal Parties of Interest (USPPI) series has been in circulation (January 2006) California did NOT lead the nation in total exports. Instead, Texas ($11.688 billion) claimed that honor exporting $3.5 million more than California ($11.684 billion). California exports continued to grow, as year-over-year comparisons revealed an increase of +5.0%. Texas’ total exports increased by +13.5% during that same time. This reflects the national trend as total U.S. exports increased by +15.8% since January 2007. Texas was able to overtake California as top exporter by exporting significantly more manufactured goods. California ($8.2 billion) exported -7.8% fewer manufactured goods compared to a year earlier, while Texas ($9.7 billion) saw a +3.0% increase. Using the BEA’s Origin of Movement (OM) series, Texas again led the nation in January with $15.2 billion in total exports, a year-over-year increase of +14.5%. During that same period, California saw its total exports increase by 6.0% to $11.0 billion. The difference again came in the export of manufactured goods as Texas exported $4.6 billion more than California. California’s export of manufactured goods increased by +2.4% year-over-year to $7.8 billion, while Texas exploded over that same period with a +15.7% increase to $12.5 billion. Nationally, U.S. exports of manufactured goods decreased by -2.6%, while total exports decreased by -2.4%.
State export data by commodity are not available by USSPI. However, commodity data is available for OM state export figures. Both California and Texas exports benefited from high world prices for agricultural and energy-related products. Dairy and oil products reported the biggest year-over-year growth for California OM exports (increasing by +208.4% and +182.5% respectively), while aircraft had the largest negative impact (with a -25.3% decrease). Cereals, oil products, and optical & medical equipment contributed the most to the year-over-year growth in Texas OM exports (rising by +95.5%, +66.6%, and +42.3% respectively).The USPPI measure allocates export trade value according to the location of companies having the greatest economic interest in an international transaction, while OM measures trade values at the point where international shipments begin, often at consolidation points near border crossings or other ports of exit. With its long border with Mexico, Texas is home to numerous international border crossings and warehousing facilities, as well as major rail links between the United States and Mexico. Industry observers believe that many shipments originating in other states (including California) are credited with Texas exports to Mexico under the OM state export series. (April Lisonbee & Eduardo J. Martinez)

My Take:

Imports are a key source of growth for the Inland Empire and the Ports of Los Angeles / Long Beach is the entry point for imported Asian goods. Unfortunately, now is not a particularly attractive time to import goods into the United States.

The dollar is at a low point, it doesn't buy as much as it used to. This is good for exporters and bad for importers.

The economy isn't as strong as it used to be. As consumers cut back on their purchases it is likely to have a negative impact on importers.

For these reasons we can expect to see less activity at the ports and that will invariably have a trickle down effect for industrial space in the Inland Empire.

No comments: