Archive for the ‘Export Data’ Category

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Small and Medium-Sized Enterprises Reaching New Markets

May 1, 2017

Natalie Soroka is an Economist in the Office of Trade and Economic Analysis

Top SME Exporter Markets, 2015. Mexico $75.7 billion, Canada $52.9 billion, China $33.8 billion, Japan $20.3 billion, United Kingdom $19.8 billion.As we kick off Small Business Week, the Census Bureau released its “Profile of U.S. Importing and Exporting Companies, 2014-2015.” A joint project of the Census Bureau and International Trade Administration, this series details the characteristics of U.S. companies that imported or exported goods in 2014 and 2015, including information on company size, industry, geographic composition, and trading partners. When we look at the trade data, small and medium sized enterprises play a huge role in economic growth and job creation.

In 2015, nearly 408,000 companies in the United States traded goods internationally, with nearly 295,000 companies exporting goods and almost 197,000 companies importing goods from abroad. The majority of these companies were “small and medium-sized enterprises,” or SMEs, with fewer than 500 employees. In 2015, SMEs accounted for 98 percent of goods exporters and 97 percent of goods importers. However, in terms of known dollar value, large companies account for a larger share of trade, with SMEs only accounting for about a third of U.S. goods trade.

In 2015, the value of “known” U.S. goods exports (export transactions that can be linked to a specific exporter) fell by 7.7 percent from the prior year, so it doesn’t come as a surprise that the number of goods exporters in 2015 was also lower than 2014, falling by 3.4 percent. This drop is attributed to fewer small company exporters with fewer than 100 employees, as the number of medium-sized (250-499 employees) and large exporters increased slightly.

With regard to markets, the number of exporters selling goods to Canada decreased the most, with most of those losses being very small companies with fewer than 20 employees. However, large firms accounted for most of the decrease in known export value to Canada. SME exports increased to several of the top 25 U.S. markets: Belgium, Switzerland, India, and Chile. While overall exports to most of these partners fell, higher exports from SMEs to India offset lower exports from large companies to result in an overall increase in U.S. known goods exports to India in 2015. The value of exports from large companies rose to the United Kingdom, Saudi Arabia, United Arab Emirates, and Germany.

While many companies solely export or solely import, about a fifth of these companies engage in both directions of trade, exporting and importing merchandise. These companies are also responsible for the majority of the known trade value, accounting for 85 percent of known goods exports and 93 percent of known goods imports in 2015.

Similarly, while most companies only engage with one trading partner, those companies selling to partners in multiple countries account for most of exports, by value. For example, the 7 percent of SMEs who exported to 10 or more countries in 2015, accounted for more than half of total SME export value. This is even truer for large companies, where the 44 percent of large companies that exported to 10 or more countries accounted for 96 percent of the overall value of exports from large firms.

The data in this report show that many small and medium-sized companies could expand their export sales to additional markets. The International Trade Administration offers many services to help U.S. companies begin exporting or increase their sales. Businesses of any size can contact their nearest Export Assistance Center to find out more about our programs and resources.

For more information regarding U.S. importers and exporters in 2015, see ITA’s fact sheet or read the full Profile.

Join us in the conversation on social media using #SmallBusinessWeek. Tag us on Twitter using @TradeGov and share the success of your small business.

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U.S. Businesses in Metro Areas are Tapping into Markets Abroad

September 14, 2016

Ken Hyatt is the Acting Under Secretary for the International Trade Administration, Department of Commerce.

Now more than ever, U.S. businesses know how important it is to take advantage of export opportunities around the world. From coast to coast, businesses are selling their world-class goods to the more than 95 percent of potential customers who live outside our borders. The 2015 Metropolitan Area Export Overview  is a clear indicator of this movement, as many cities have increased exports or even set records. And along with the nation’s largest metropolitan areas sending out more American goods, many smaller areas have also set trade records.

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2015 Metro Exports

Now to the numbers: U.S. metropolitan area goods exports exceeded 1.3 trillion in 2015, and accounted for 89 percent of goods exported from the United States. There were 156 metro areas that exported more than $1 billion of goods to consumers around the world. There were 14 metro areas that exported more than $20 billion of goods in 2015.

Let’s look at a couple examples: Seattle-Tacoma-Bellevue, Washington; and El Paso Texas, both of which set records in 2015, have experienced impressive growth from 2009 to 2015. The Seattle area was ranked in the top five for 2015, while El Paso, Texas ranked in the top 20.

El Paso registered double-digit export growth in 2015, shipping $24 billion in goods abroad. El Paso has made impressive increases since 2009; this year representing a 22 percent increase from 2014, and a 217 percent increase from 2009. The city’s largest export goods categories included computers and electronic products; electrical equipment, appliances; and transportation equipment. Exceptionally, El Paso area sent 93.5 percent of its goods exported to markets where the United States has trade agreements enforced.

The Seattle area sent more than 25 percent of its goods exports to markets where the United States has trade agreements. Their exporting categories ranged from transportation equipment to computer & electronic products to fishing, hunting, and trapping goods.

It’s clear that both Seattle and El Paso, among the nation’s many metro areas, large and small, are making developments towards a more globalized market.

The Department of Commerce and the Obama Administration continue to focus on supporting U.S. jobs and raising wages. This includes efforts to sign high-standard agreements such as the Trans-Pacific Partnership. Accessibility for U.S. exporters to the largest and most competitive markets has become top priority over the duration of the Administration. In fact, markets with Free Trade Agreements in force accounted for more than half of the total goods exports for 195 metropolitan areas.

For more information on the contributions of metro areas to U.S. exports, download your free copy of fact sheets for the top 50 exporting metro areas.

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Mexico’s Release of its National Cluster Map: a Testament to the Strength of the U.S.-Mexico Partnership

July 28, 2016

Leslie Wilson is the Mexico Desk Officer for the U.S. Department of Commerce

A neighbor, an ally, and our third-largest trading partner: Mexico – and its relationship with the U.S. – has never been more important. As part of the ongoing work to reinforce that relationship, Mexico has published a new and innovative National Cluster Map, which identifies areas for investment and job creation and enhances regional economic development between the United States and Mexico.

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Mexico-US flag

On July 22, 2016, in conjunction with Mexican President Enrique Peña Nieto’s visit to Washington, D.C., the Mexican government released the map as a free, open website available to the public around the world. During his visit, President Peña Nieto met with U.S. President Barack Obama and Department of Commerce Secretary Penny Pritzker, among others, to discuss ways to continue strengthening the U.S.-Mexico relationship. For example, as Mexico is the United States’ third largest trading partner, $1.5 billion in trade crosses our border every day.

The site, a key milestone of both governments’ efforts to increase North American competitiveness, is a component of the U.S.-Mexico High Level Economic Dialogue (HLED). Through the HLED, the Innovation Cluster Subcommittee of the Mexico-U.S. Entrepreneurship and Innovation Council (MUSEIC) – in collaboration with Mexico’s National Entrepreneurship Institute (INADEM) and the U.S. Department of Commerce’s Economic Development Administration (EDA) and International Trade Administration (ITA) – has worked to develop binational, compatible cluster maps that identify geographic concentrations of interconnected companies, suppliers, service providers, and associated institutions that are present in the United States and Mexico.

The U.S. and Mexican maps can be used to enhance regional economic development by identifying an area’s assets and creating important connections between the public and private sectors. They can also be used by innovators working in similar sectors and spaces to share best practices, identify opportunities for public investment, and serve as a framework for understanding drivers of private investment and job creation.

Cluster Mapping as a Tool for Regional Integration                                     

According to U.S. Assistant Secretary of Commerce for Economic Development Jay Williams, “The Mexico National Cluster Map is essential for understanding the competitive landscape of North America and facilitating regional collaboration. The U.S. and Mexican maps will help regions work together to capitalize on assets and discuss best practices in economic development, policy, and innovation.”

To further the goal of regional integration, President Obama, President Peña Nieto, and Canadian Prime Minister Justin Trudeau committed to establishing a broader North American Cluster Map at the most recent North American Leaders’ Summit held in June to best display synergies among the major regional economies. The development of Canada’s cluster map will be the next step in achieving this goal.

EDA, in partnership with Harvard University, runs the U.S. Cluster Mapping website, which offers a member directory that profiles cluster initiatives throughout the country and provides statistical and visual data that assess business environment characteristics.

How Mexico Created Its Map

Mexico’s cluster map was developed by Mexico’s Statistics Agency (INEGI) based on 2014 census data, the latest cluster definitions  by Michael Porter, Scott Stern, and Mercedes Delgado (also used in the U.S. map) and the location quotients of the country’s 32 states. It combines the Porter, Stern, and Delgado methodology using employment and occupation data, and the Monterrey Institute of Technology and Innovation (Tec de Monterrey) methodology adopted by INADEM to identify strategic sectors in Mexico. Mexico has undertaken a data alignment and cluster definition matching exercise so the data can be used and analyzed in a binational fashion, ensuring the compatibility of the information provided in the U.S. and Mexican maps.

“Mexico has convened key stakeholders of government, academia, and private industry to develop its Cluster Map and a global strategy for Cluster Development,” said Enrique Jacob, President of INADEM. “The map helps to identify smart specializations, promote private industry investment, support new public policies in innovation, and foster global value chains.”

Dynamic initiatives such as the U.S.-Mexico binational cluster mapping project offer a powerful knowledge-based tool that can generate clear, positive outcomes for government, industry, academia, civil society, and entrepreneurs. Specifically, the U.S and Mexican cluster maps provide reliable data essential to foster regional and global value chains, support investment decisions, and enforce data-oriented public policy. In fact, a full 40 percent of the content of Mexican exports is comprised of U.S. inputs. This means that of all the products Americans purchase that are manufactured in Mexico, about 40 percent of those products’ value-added components are made here in the United States. This reflects the highly integrated nature of our bilateral value chains.

The compatibility of the U.S. and Mexican maps is also a critical step toward the development of cross-border  economic development strategies that can help drive the sustainable, long-term economic vitality of urban and rural communities along the U.S.-Mexico border.  And most importantly, these maps underscore the importance of using innovative tools to best leverage our connections to create jobs in both countries and across the region.

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ITA Releases Smart Cities Guide

July 14, 2016

Vinay Vijay Singh, Senior Advisor, Global Markets, Urbanization & Infrastructure

A successful economy lays the foundation for a successful city, but the city must be able to keep up with an evolving economy to maintain overall success. Global trends show the world is spending far less on infrastructure than is required to contend with the rapid pace of economic development. A Smart Cities movement has risen to address the forces of urbanization around the world.  The International Trade Administration’s (ITA) newly released Smart Cities, Regions & Communities Export Opportunities Guide highlights potential business opportunities for U.S. companies along with insights from other Commerce bureaus.

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The Smart Cities initiative was created to target federal resources to meet the needs of local communities.

Cities have been the center for commerce since bartering and trade first began. Smart Cities is a development mission aiming to monitor and promote urban sustainability, environmental cleanliness, citizen engagement, governance and critical needs in education and healthcare. The growth of a city places demand on its municipal government to address urban challenges in sectors such as water, energy, transportation and connectivity. Each of these industries represents opportunities to foster business partnerships and bolster prosperity.

The recent $160 million investment in federal research by the White House is aimed to help local communities establish solutions to key problems faced, including traffic congestion, fueling economic growth, managing effects from climate change, fighting crime and improvement of city delivery systems. This initiative is part of the President’s commitment to target federal resources to meet local needs and by providing leadership at a national level, this initiative is just one example of a Smart Cities vision and a huge business opportunity. The ITA continues the Obama Administration’s level of engagement by offering The Smart Cities Guide as another tool for U.S. companies to help make these connections and further expand their global export solutions.

The Smart Cities Guide incorporates Department of Commerce intra-agency smart city initiatives by combining in-depth information for export opportunities into four main categories: Access to Capital, Trade Promotion, Industry Sectors and Internet of Things (IoT). Many bureaus in Commerce are lending their thought leadership to help U.S. cities and businesses find unique solutions to global urbanization issues. ITA’s primary focus in the Guide is to serve as a trade promotion resource for U.S. companies looking to interface with local partners and government officials in markets with export opportunities.

This is the first edition of The Smart Cities Guide and as the U.S. government synthesizes its efforts to continue to elevate U.S. industry leading capabilities in this space, the ITA will look to publish its second edition later this year.  Come join our global teams at Discover Global Markets: Building Smart Cities in Chicago, November 1-3, 2016, to further explore opportunities in the smart city space.  For more information on the U.S. government smart city initiatives or services offered by the ITA, please email the team at smartcities@trade.gov and follow me @SmartCitySingh.

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Jobs Supported by Exports 2014: Product and Industry

July 13, 2016

Chris Rasmussen, a Senior International Economist in the Office of Trade and Economic Analysis, is the Team Lead for Quantitative Analysis and the author of several publications on jobs supported by exports.

The International Trade Administration has released a report detailing the jobs supported by exports by specific product and also within individual industries. This report joins earlier work estimating total U.S. jobs supported by exports, jobs supported by state goods exports, and jobs supported by exports by destination.

When thinking about the relationship between exports and jobs the natural tendency is to focus on the workers employed in the industry that produces the final product that is exported.  For example, a statistic for U.S. exports of chemical products may conjure up images of workers employed in chemical plants wearing hardhats and other protective gear.

However, products are not produced in isolation from beginning to end in a single industry, with the production of any product generally requiring the use of inputs from other industries.   As a result of these interrelationships between industries in the production process, the export of a product will impact employment in multiple industries in addition to the industry that produced the export.

In the chemical products example, the production and export of those products will not only affect employment in the chemical industry but also employment in industries such as petroleum and coal products, transportation and other services whose products are used by the chemical industry.

By the same token, production and employment in the chemical industry will be impacted not only by the export of chemical products but also by the export of agricultural products and products made of plastic and rubber that use products from the chemical industry as inputs in their production.

This report uses data capturing these interrelationships to look at the impact of exports on employment throughout the supply chain.  This report finds that as a group, manufacturing industries have the highest share, 26 percent, of their employment supported by exports. The report further finds that although 59 percent of all export-supported jobs are supported by the export of goods, 68 percent of all export-supported jobs are jobs located within service industries.  In fact, the report indicates that for every job within manufacturing industries supported by the export of manufactured products there is there is also a job supported in service industries by the export of those manufactured products.

To read the entire report and other jobs-supported by exports materials, visit the OTEA website: http://www.trade.gov/mas/ian/employment.

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Just in Time for Hannover: Seven Top Markets Reports Released

April 14, 2016

Marcus Jadotte is ITA’s Assistant Secretary of Commerce for Industry & Analysis.

Earlier today, the International Trade Administration (ITA) released seven new Top Markets Reports to provide the latest assessment of export opportunities for U.S. companies that attend the world’s largest annual trade show for industrial technology: Hannover Messe 2016.

The Top Markets series is a collection of sector-specific reports that are designed to help U.S. exporters compare markets across borders, using market intelligence and data to inform decision-making. Providing new market intelligence, the reports related to the Hannover Messe pavilions and themes are:

Each Top Markets Report includes commentary on opportunities, trends, and challenges facing U.S. exporters in the largest potential markets. The reports combine the unique expertise of ITA’s sector leads in Industry & Analysis with economic data and the views of our staff stationed around the world. In addition to these seven new reports, more than a dozen other sector-specific reports are currently available on our top markets webpage. .New versions of these reports will be released later this year. The Top Markets Reports released today provide valuable market intelligence about future export opportunities, including Germany. Germany is ranked as a top 10 export market for industrial automation, manufacturing technology, cloud computing, aircraft parts, and automotive parts. Each of these reports has a separate case study devoted to the opportunities and challenges of exporting to Germany.

We hope you find these tools beneficial as you prepare for Hannover Messe. Once at the fair, our sector and country experts, including many of the authors of these reports, will be on the ground ready to speak with you about this market intelligence and connect you with buyer delegations and foreign attendees.

For the first time in the trade show’s history, the United States is the Partner Country at Hannover Messe. The more than 425 companies, economic development organizations, and U.S. universities, comprise the largest U.S. exhibitor delegation to Hannover. The show, which takes place April 25-29, 2016, typically hosts more than 200,000 attendees from 70 countries, and more than 2,500 members of the media. President Obama will be the first sitting U.S. President to participate in Hannover Messe, proving that support for the event comes from the highest levels of our government. We look forward to seeing you in two weeks!

Note: ITA will live tweet from the event. Follow us @TradeGov and join the conversation using #HM16USA.

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Jobs Supported by Exports 2015: An Update

April 8, 2016

Ellen Hughes-Cromwick is Chief Economist for the Department of Commerce 

Today, the International Trade Administration released its report titled “Jobs Supported by Exports 2015: An Update”, which found that the number of U.S. jobs supported by exports declined slightly in the face of significant headwinds from the global economic growth slowdown overseas.

However, exports continued to play an important role in supporting employment in the United States in 2015. Exports supported an estimated 11.5 million jobs in 2015, down less than 50,000 from the nearly 11.6 million jobs supported by exports in 2014.

Despite the decrease in export-supported employment last year, the number of jobs supported by exports is up 1.9 million since 2009, an increase of 19.8 percent.  The modest decline in export-related employment was largely associated with the decline in goods exports.  The BEA reported that in 2015, current dollar exports of goods and services fell slightly – from $2.34 trillion in 2014, to $2.22 trillion in 2015. However, employment related to services exports ticked up, increasing by more than 2,000 jobs as compared to 2014.

The report also indicates that the number of jobs supported by $1 billion in exports increased last year.  In 2015, every $1 billion in U.S. goods exports supported 5,279 jobs, up from 4,969 jobs in 2014. The number of jobs supported per $1 billion of services exports remained nearly constant in 2015.