Economically Speaking: International markets key to state's prosperity

Joseph L. Driskill is the director of the Missouri Department of Economic Development.

Our economy is becoming more global and competitive in nature. We are not only vying with neighboring states for new business, but we are also competing internationally. Our economic prosperity depends on our ability to tap these new international markets.

With Missouri's diversified economy, the international marketplace holds a lot of promise for our businesses and products. The global market has become smaller and less intimidating, thanks in part to increased technological advances, communication and networking. There are a multitude of possibilities in the global economy.

Many Missouri companies have already discovered these possibilities. We recently received results of our state's international trade in 2002 and were pleased to find that international sales were up. International sales rose by 10.1 percent to almost $6.8 billion last year, an increase from $6.2 billion in 2001.

Our department reviewed information compiled by the U.S. Census Bureau's Foreign Trade Division to produce the numbers. These findings were based on manufactured products alone, and do not include services or agricultural products. Federal statistics rank Missouri as 28th among the states in total export value.

Vehicles were Missouri's top export commodity last year, accounting for nearly 30 percent of total export value. Inter-national sales of passenger vehicles increased by 17 percent, and sales of motor vehicles for the transportation of goods increased 10 percent. Other leading exports are machinery, chemical products and electrical machinery.

Canada and Mexico remained as Missouri's top export destinations, but there were a few changes in the state's top 10 export recipients.

Italy, Ireland, Hong Kong and Australia replaced Belgium, Singapore, Brazil and Argentina. All of the top 10 countries increased their amount of Missouri purchases with the exception of Germany (minus 14.38 percent) and Australia (minus 1.96 percent).

The largest sales gains were to Hong Kong, which increased 47 percent; Sweden with a 94.25 percent increase, primarily for pharmaceuticals, organic chemicals, and electric machinery; and Korea with a 44.19 percent increase. Together, the top 10 export countries account for 79 percent of Missouri's total exports.

These are Missouri's top 10 export destinations, with the export values: Canada, $3.1 billion; Mexico, $693 million; United Kingdom, $336 million; Japan, $311 million; Germany, $242 million; Italy, $157 million; Ireland, $138 million; Hong Kong, $132 million; China, $130 million; and Australia, $126 million.

We are pleased with these numbers and believe we are seeing the positive results of some strong business relationships. A lot of our success overseas can be attributed to work done by the Missouri Office of International Marketing. Staff members have worked diligently with the U.S. Department of Commerce's Export Assistance Center in St. Louis to help Missouri businesses develop personal and business relationships around the world that increase globalization opportunities. They have helped remove barriers and helped small-business owners realize the importance of international marketing.

OIM operates offices throughout the world that partner with experts in marketing Missouri products and services. Missouri is represented from offices in Japan, Mexico, Ghana, South Africa, Germany, the United Kingdom, Korea, Israel, Brazil, Belgium, Nigeria and Taiwan.

Services provided by OIM are comprehensive. It acts as international sales consultant, offering advice on export marketing, provides assistance in locating distributors and agents for products, researches foreign markets and provide analysis, generating trade leads for Missouri clients and provides expertise in foreign relations and protocol.

If you would like more information about the Office of International Marketing and the services it provides, call 888-690-4855.