What are we Exporting?

Typically, one-third of the State’s manufactured exports are machinery related. Oklahoma’s largest export sales in 2007 were in Liquid Pumps; Liquid Elevators; and Parts (HS 8413), totaling almost $253 million in sales and accounting for over 5% of all State exports. This was down from its 6.6% share in 2006. Still, Oklahoma ranked as the nation’s 7th largest exporter of liquid pumps.

Oklahoma sends most of its liquid pumps to Canada and Russia. Canada is the destination for a third of all exports of these products. In addition, Oklahoma accounted for an impressive 66% of all U.S. Liquid Pump exports to Russia.

The State’s second greatest exported product was Tires, with export sales of $222 million. Ninety percent of this went to Canada. It is unknown to what extent the closing of Oklahoma City’s Dayton plant will affect tire exports in the years to come. Still, with Goodyear and Michelin remaining, Oklahoma was the nation’s fifth largest exporter of tires with growth from the previous year exceeding 10%.

Correction to Daily Oklahoman article

I suppose this isn't exactly a correction to an article found in the Daily Oklahoman, but rather an addendum.

In the article "Oklahoma finds markets worldwide for its goods" (By Debbie Blossom, June 6, 2008) a small piece of information was excluded that could change the impression given to readers. The quote:

This is the sixth year for the report. Chamber official Mike Seney said it includes detailed statistics on Oklahoma's top exporting products and markets.

And while the numbers are impressive, the report is on the conservative side. It doesn't include products made here and then sent to other states to be assembled and shipped overseas...

Addendum: The Oklahoma Department of Commerce has been doing an international trade report for over 10 years. While the Chamber's piece is done on contract by a publishing agency in New York, the trade report done by the Oklahoma Department of Commerce is done with the cooperation of local researchers and is more detailed in trade data and the industry-specific trends preferred by economic developers. The state will also expand on the report at the request of companies for a customized analysis.

Although the state agency is cited in the article, the Oklahoma Export Report was released on the agency's website at least a week prior to the newspaper article. In fact, the Oklahoma Department of Commerce is usually first in releasing its report. However the Daily Oklahoman, typically waits until the Chamber is ready regardless of how much earlier the state report is released. The article- done every year- gives the impression that the State Chamber is the primary source of information for state international trade information.

The Daily Oklahoman has a reputation for ignoring technical contributions made by state agencies. For example, when major local investment is announced (a plant opening, new wharehouse, etc) the Daily Oklahoman will cite and interview local economic developers and attorneys when- in order to make these projects happen- the very same people lean heavily on state staff to do the bulk of the work. But we wouldn't want to distort the picture with facts.

To clarify, this blog addition isn't about the State Chamber or their information. The point I am attempting to make here is about the newspaper's ongoing practice of pretending that state government has nothing to say or no expertise. In fact, I am very familiar with the agency that produces the Chamber's report, Manzella Trade Communications, and I have nothing to say but good about their work. It is solid macro analysis and their staff is highly professional. I intend on promoting some of their upcoming media initiatives on this blog.

Download the Oklahoma Chamber's Report from this site.

Download the Oklahoma Export Report by the Oklahoma Department of Commerce from this site. If this report looks similar to some things on this blog, that's because I am one of the local analysts that puts it together.

Currency devaluation & State Exports

The last two years have seen a substantial decrease in the value of the U.S. Dollar relative to other currencies. This creates opportunities for U.S. exporters as the weak dollar works in our favor and U.S. products become more affordable for buyers in other countries.

This is good news for attracting foreign direct investment as well. It is generally accepted, although not a rule, that FDI increases as the host country’s currency devalues. Like exports, property and industrial equipment are more easily affordable. It remains to be seen exactly how exchange rates affect FDI into Oklahoma.

As the chart below shows, the growth in state exports was consistent across price and quantity until 2006 – 2007, when the value of the U.S. dollar began to drop. Oklahoma export sales increased 4%, while the quantity of state exports (in this case, kilograms) increased a dramatic 59%.

Oklahoma Exports- a quick glimpse

Low population states don't get much attention paid to their exports. However, exports are critical to the millions of workers and citizens in those states. Oklahoma exports highlights...