Economically Speaking: Missouri sales gaining momentum overseas

|tab|

Kelvin Simmons is director of the Missouri Department of Economic Development.|ret||ret||tab|

|ret||ret||tab|

The effects of recent recessions in the United States, Japan and elsewhere had temporarily slowed growth in the global marketplace. But according to the U.S. Department of Commerce's Office of Trade and Economic Analysis, most of the major economies around the world, including the United States, were gaining momentum by the end of 2003. That momentum is expected to continue, with world economic growth forecasted to accelerate to a rate of approximately 4 percent in 2004. |ret||ret||tab|

Improving economic conditions around the globe are certainly good news for Missouri companies and our economy because it means an increased demand for Missouri-made products, as well as more good paying jobs for our work force. |ret||ret||tab|

The latest statistics on exports show that sales of our state's products abroad have indeed increased. This news is yet another important indicator that Missouri's economy has turned the corner on the national recession. |ret||ret||tab|

Statistics recently released by the foreign trade unit of the Massachusetts Institute for Social and Economic Research show that Missouri exports increased by 6.5 percent to $7.23 billion in 2003 compared to $6.79 billion the previous year. In fact, the growth of export sales in Missouri outpaced the national average of 4.4 percent. With the latest surge in sales, Missouri exports appear to be returning to the level attained prior to the recession, when, in 2000, they had reached a high of $7.93 billion. |ret||ret||tab|

In 2003, four of Missouri's top 10 export categories saw double-digit gains: chemicals rose 24 percent; plastics and rubber rose nearly 20 percent; leather products increased 11 percent; and electrical equipment, appliances and components rose by 10 percent. Another four of the top 10 categories saw smaller gains: machinery, computer and electronic products, fabricated metal products and primary metal manufacturing. |ret||ret||tab|

Transportation equipment was Missouri's top export commodity in 2003, with nearly $2.2 billion in sales, but industry sales actually declined by 4.51 percent. Food and kindred products was the only other industry in the top 10 to experience slumping sales of -1.03 percent. |ret||ret||tab|

Missouri's top 10 trading partners in 2003 were Canada, Mexico, Japan, the United Kingdom, China, Germany, Italy, Hong Kong, Belgium and Australia. Canada and Mexico remained Missouri's top export recipients. |ret||ret||tab|

Canada imported $3.08 billion worth of Missouri goods, a decrease of 1.16 percent. Sales to Mexico increased by nearly 8 percent to $748 million. |ret||ret||tab|

Beyond increasing sales of Missouri goods, exporting also generates good paying jobs for Missouri citizens. Last year, 75,010 Missouri jobs were directly tied to industries exporting to other countries. Furthermore, within the state's top 10 exporting industries, workers earned an annual average wage of $41,894, nearly 25 percent more than the statewide average wage of $33,600. |ret||ret||tab|

New technologies, advances in telecommunications and the development of e-commerce have forever changed traditional business practices, making globalization a reality that businesses must embrace if they are to remain competitive in the 21st century. |ret||ret||tab|

Under my leadership, the department will continue to build upon the important international business relationships we have developed over the years, and we will continue to place a critical emphasis on helping Missouri businesses penetrate international markets. |ret||ret||tab|

[[In-content Ad]]