C(£)l. 3o.ri HZ ^vA NewMexico Exports Oc % <£?aECT\ot ^^i V^V U.S. DEPARTMENT OF COMMERCE ^^^^ International Trade Administration An ITA Washington, D.C. 20230 Publication AugUSt 1984 ■ ■ ■ EXPORTS . . . their importance to the United States economy Exports play an important role in our economy and in the increasingly interdependent world econ- omy. The United States is the world's largest exporter — currently selling $200 billion of U.S. goods abroad — and is the world's largest economy. With 5 percent of the world's population, our coun- try produces 24 percent of the world's industrial goods. Exporting provides a broader marketing base for U.S. firms and is considerably more important than many Americans realize. Exports currently account for 5 million jobs in the United States. On average, 25,000 jobs are generated per $1 billion of U.S. merchandise exports. Many jobs depend on exports Employment generated by exports is much great- er than the number actually employed in producing the final products shipped abroad. Exports create a large demand for employment that spreads throughout our economy. This includes all the jobs needed to produce goods and services supplied to export pro- ducers, the jobs needed by the export producers to produce exports, and the jobs needed to move prod- ucts to our ports or borders for transport to other countries. Most of the export-related jobs are in manufactur- ing and services. According to the latest estimates, 49 percent of the jobs are in manufacturing, 37 percent in services, and 14 percent in production of nonmanufactured goods. The importance of export employment varies among the industries. About one out of every eight Americans currently employed in manufacturing is dependent on exports of manufac- tured goods. About one out of every six jobs produc- ing nonmanufactured goods and one out of 24 jobs in services are export-related. Exports affect production and employment in all industries, not just in a few major export industries. For example, while the primary metals industries directly export about $6 billion of their products annually, an additional $21 billion of steel and other metals are exported in the form of American- made computers, aircraft, tractors, and other man- ufactured goods. Exports are of great importance to America's farm- ers as well. They account for $1 of every $4 of farm sales. Likewise, many jobs in the coal mining and mineral industries, as well as a considerable number in the fishing industry, are dependent on overseas sales. Exports also support employment in the truck- ing, rail transport, insurance, and other service industries. Exports essential But the basic importance of exports is that they are the principal means by which America pays for its purchases from foreign countries. The United States imports proportionately far less than other major countries, but imports have become increas- ingly important to the American standard of living — and they have to be paid for. The other major indus- trial nations generally cover the cost of the goods they import by their exports. Merchandise exports and imports each account for an average of about 20 percent of the gross national product in that group of countries. American exports, however, were only 5.9 percent of GNP in 1983, while the ratio of imports to GNP stood at*7.8 percent. This gap between exports and imports is the trade deficit, which amounted to $57.6 billion in 1983. The strength of our exports means a great deal to America. Exports are important to all the 50 states, and each state plays a significant role in meeting the need to export more. This report helps explain that role and shows the significance of exports in rela- tion to employment and production. CONTENTS Inside front Importance of Exports to U.S. Economy cover 1 New Mexico's Export Highlights 2 Explanatory Notes 3 Table 1 - New Mexico's Manufactured Exports, Production, and Employment, 1981 4 Table 2 - Growth in New Mexico's Manufactured Exports 5 Table 3 - U.S. Manufactured Exports by State 6, 7 Map - U.S. Manufactured Exports by State 8 Table 4 - New Mexico's Agricultural Exports 9 Table 5 - U.S. Agricultural Exports by State 10 Table 6 - New Mexico's Manufactured Production, Export-Related Manufactures and Employment, 1981 11 Table 7 - Growth in New Mexico's Export- Related Manufactures 12 Table 8 - Export-Related Manufactures and Employment by State Inside Chart - Exports of U.S. Manufacturing back Industries Related to Domestic cover Production NewMexico Export Highlights New Mexico's exports of manufactured goods totaled $64 million in 1981, up 73 percent from the 1977 value. They rose faster than production. An estimated 300 jobs in New Mexico were directly related to producing manufactured exports in 1981. About 1,300 additional jobs were required to produce materials and parts for incorporation in products exported from the 50 states. Thus, 1,600 jobs in New Mexico were dependent on exports of manufactured goods — about 1 of every 21 manufacturing jobs in the state. New Mexico's share of U.S. agricultural exports totaled $121 million in FY 1982, almost one and a half times the FY 1977 value. In New Mexico's farm sales, $1 of every $7 came from exports Manufactured exports rose New Mexico's exports of manufactures totaled $64 million in 1981, an increase of 73 percent over 1977. The state ranked 48th nationally in sales of these products to foreign countries. Exports from New Mexico firms rose faster than the 61 percent increase in the state's manufacturing output from 1977 to 1981. New Mexico's leading manufactured exports were nonelectric machinery, miscellaneous manufac- tures incfuding jewelry, and manufactured food prod- ucts. Together, these goods accounted for over one- half of the state's shipments to foreign destinations. The state exported $18 million worth of manufac- tures referred to as "miscellaneous," which, in the case of New Mexico, consisted almost entirely of jewelry and silverware. That total was nearly four times the 1977 value. Virtually unchanged from the 1977 value, export sales of manufactured food products were $8 mil- lion. About 11.2 percent of production in the state's industry was shipped overseas. New Mexico also sold abroad nonelectric machinery valued at $9 million. About 4 percent of the state's production of this type of machinery was sold overseas. The Census Bureau has estimated that the full impact of U.S. exports on New Mexico's manufac- turing activity was 7.2 percent rather than the 2.0 percent attributable to direct exports as shown in table 3. Estimates including supporting shipments of materials and parts for incorporation in products exported from 50 states are shown in tables 6 to 8. Thus, of the expanded manufacturing output gen- erated between 1977 and 1981, 10 percent — or $1 out of every $10 — was due to export-related shipments. Wheat led crop exports New Mexico's share of U.S. agricultural exports in FY 1982, including some manufactures of farm origin, totaled an estimated $121 million, up 48 percent from the FY 1977 level. Wheat and flour sales grew from $8 to $33 million and became the state's leading export crop. Feed grains overseas sales were up somewhat to $23 million. Cotton, which had been the second leading agricultural export in FY 1977, rose from $12 to $20 million in FY 1982, a 57 percent increase. The sharp growth in exports of agricultural prod- ucts from FY 1977 to FY 1982 accounted for 23 percent of the rise in farm sales and added substan- tially to the income of New Mexico farmers. In this period, the export contribution to each dollar of the state's farm sales increased from 11 to 14 cents. Leading exporter of potash New Mexico's exports of minerals consisted mostly of potash. Valued at $60 million in 1981, the state (continued on back cover) ij. 3. Depository Copy Explanatory Notes State export statistics presented in this report are esti- mates, in contrast to national export statistics, which are compiled from export documents prepared at the time goods leave the country. This note considers the reasons for, and consequences of, that difference. Export estimates for each state are needed in order to measure the relative impact throughout our nation of changes in goods sold abroad. National export data are compiled each month in detail by types of goods sold and summarized in large commodity aggregates and overall totals — but in order to measure exports by each state of origin, which is not identified in shippers' export docu- ments, special studies are necessary. This report — one in a series of reports for each state — brings together state export estimates from studies by various U.S. Government agencies on manufactured goods, agricultural products, fishery products, and selected miner- als. Overall totals for all goods exported from each state are not shown since these studies differ in methodology, frequency, export valuation, and U.S. geographic cover- age, and the manufactures and agricultural studies some- what overlap the products covered. Manufactured Exports in this report relate to manufac- tures as defined in the Standard Industrial Classification (SIC) and include manufactured food, mineral fuel prod- ucts, fats, oils, firearms, and ammunition not typically part of the Standard International Trade Classification (SITC) definition of manufactures. For the United States as a whole, exports of these additional products totaled $28.5 billion in 1981. Exports, normally valued at the port of exportation, are adjusted to f.o.b. plant values to make accurate comparisons with production (shipments) data. The state estimates for manufactured goods are based on surveys of manufacturers conducted by the Industry Division of the Bureau of the Census. These studies are for selected years; cover the continental United States, Alaska, and Hawaii; and present data classified by the 20 major SIC industry groups (2-digit). Tables 1 to 3 show the value of state exports and state production, and the number of workers employed in manufacturing plants producing the finished goods for direct shipment to for- eign destinations. State economies also benefit from manufactured goods produced for ultimate export through other states, and from jobs related to manufactured exports which are gen- erated in nonmanufacturing industries. In the table below, percentages show the full impact of export-related manufactures on state employment. Tables 6 to 8 show the percent of production and the value of state export- related manufactures — direct exports plus indirect exports or the value of materials and parts incorporated in prod- ucts exported from elsewhere in the nation — and the number of state export-related workers employed in manufactur- ing plants producing these goods. Table 8 also shows the total number of workers related to manufactured exports — in manufacturing plus the number in nonmanufacturing industries supporting manufactured exports by supplying materials or services such as forwarding, warehousing, transport, and other foreign trade-related services. Agricultural Exports relate to food products other than those from marine sources, unmanufactured tobacco, and other agricultural products simply processed such as fibers, raw hides and skins, fats and oils, wine and beverages other than distilled types. The state estimates for agricultural exports are from studies prepared by the U.S. Department of Agriculture. Exports reflect shares in national exports according to each state's production and sales data. Export values were obtained by multiplying each state's share of farm pro- duction by commodity times the total export value for each of the respective commodities. These annual studies are for fiscal years ending September 30 and for all states except Alaska, and show data classified by 18 commodity groups. Tables 4 and 5 show the value of state exports and the percent of farm sales. Other Exports — Fishery products, various minerals, and fuel export estimates shown in the Highlights on page 1 for selected states are from studies prepared by the National Oceanic and Atmospheric Administration (NOAA), the U.S. Department of Interior, and the U.S. Department of Energy, respectively. Exports generally reflect shares in national exports according to state production. Annual Exports and Employment Related to Manufactured Exports Manufactured exports Manufacturing employment Total employment, including nonmanufacturing employment (million dollars) (thousands) Percent of manufacturing employment (thousands) Percent of civilian employment New Mexico * 1976 69 1.8 6.0 5.7 1.4 1977 37 0.9 3.1 4.9 1.1 1980 84 1.5 4.5 8.8 1.7 1981 64 1.6 4.6 9.5 1.7 United States 1976 83,098 2,125.4 11.3 3,452.1 4.0 1977 85,796 1,990.2 10.2 3,258.2 3.6 . 1980 151,216 2,639.3 12.8 4,808.3 4.8 1981 164,283 2,603.8 12.8 4,794.0 4.7 * New Mexico's export-related manufactures were as follows In million dollars: 1976, 132; 1977, 109; 1980, 247; and 1981, 235. About 10 percent of the increase in New Mexico's manufacturing production from 1977 to 1981 was generated by growth In export-related manufactures. TABLE 1 New Mexico Manufactured Exports, Production, and Employment, 1981 • New Mexico's leading manufactured exports were jewelry/silverware, nonelectric machinery, and food products. • These three industries accounted for 55 percent of New Mexico's total exports of manufactures. Industry group Estimated Production exports (million dollars) Exports as percent of production Estimated employment related to exports (thousands) Employment related to exports as percent of total employment Total ' 3,230 64 2.0 0.3 0.9 Misc. manufacturing Industries ^ 83 18 22.3 {') ~ IVIachinery, except electric 220 9 4.0 0.1 3.6 Food and kindred products 526 8 1.5 {') ~ Electric and electronic equipment 258 6 2.4 e) ~ Fabricated metal products 103 5 4.5 {') ~ Instruments and related products 52 3 5.2 {') ■ — Transportation equipment 213 2 1.1 {') ~ Lumber and wood products 184 2 1.2 {') ~ Chemicals and allied products 65 2 3.1 f) — Apparel and textile products 99 2 1.8 {') — Petroleum and coal products 661 1 0.1 {') ~ Printing and publishing 130 0.2 {') ~ Stone, clay, and glass products 166 0.1 {') ~ Rubber and plastic products 10 ~ (') ~ Paper and allied products 6 — {') — Furniture and fixtures 4 — e) — Primary metal industries D — n — ' Total includes estimated exports, production values, and employment numbers which are withheld for certain industry groups to avoid disclosure of individual companies' data. ^ t\/lostly jewelry, silver, and plated ware. ^ Less than 50 employees. " Less than $500,000. - Not applicable. TABLE 2 New Mexico Growth in {Manufactured Exports • In 1981, New Mexico's manufactured exports totaled $64 million, nearly one and three-fourth times the 1977 value • Half the increase stemmed from the rise in value of miscellaneous industries exports. * Industry group 1960 Export value (million dollars) 1969 1972 1977 1981 Percent increase from 1977 to 1981 Exports Pro- duction Export increase as percent of production increase 1977-81 Total ' 23 16 18 37 64 73 61 2 Misc. manufacturing industries* 3 3 /2\ 5 18 278 45 53 Macliinery, except electric {') /2\ {') 8 2,100 253 5 Food and l> \» «,? V? ^\ \ r^? ijV r^ ^ ^ vO v^ o^* x,^ ^ <^ ^• ^' Estimated Exports as Percent of Production, 1981 (Indicated by shading) 0.6% to 4.9% 5.0% to 6.4% 6.5% to 9.9% 10% or more CD (in millions of dollars) 12,000 10,000 arm ^ .