Cio i. 30 ' mife Montana Exports i - ■ ^^^6 U.S. DEPARTMENT OF COMMERCE ^^^^^ International Trade Administration An , TA 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 Montana's Export Highlights 2 Explanatory Notes 3 Table 1 - Montana's Manufactured Exports, Production, and Employment, 1981 4 Table 2 - Growth in Montana's Manufactured Exports 5 Table 3 - U.S. Manufactured Exports by State 6, 7 Map - U.S. Manufactured Exports by State 8 Table 4 - Montana's Agricultural Exports 9 Table 5 - U.S. Agricultural Exports by State 10 Table 6 - Montana's Manufactured Production, Export-Related Manufactures and Employment, 1981 11 Table 7 - Growth in Montana'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 Montana Export Highlights Montana's exports of manufactured goods totaled $61 million in 1981. These foreign sales were slightly greater than in 1977. An estimated 400 jobs in Montana 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, 1,700 jobs in Montana were dependent on exports of manufactured goods — about one of every thirteen manufacturing jobs in the state. Montana's share of U.S. agricultural exports totaled $559 million in FY 1982, one and three-fourths times the FY 1977 value. The state ranked sixth in foreign sales of wheat and flour. In Montana's farm sales, $1 of every $3 came from exports. Exports of copper concentrates were valued at $64 million in 1981. Manufactured exports rose Montana's exports of manufactures totaled $61 million in 1981, up slightly from the level in 1977. The state ranked 49th nationally in sales to foreign countries. The value of Montana's production of manufactures advanced 61 percent, much faster than the 4 percent growth in exports from 1977 to 1981. Lumber and wood products were the state's major export. These goods accounted for one-third of the 1981 total. Other exports from the state were pri- mary metals, chemicals, electric equipment, and manufactured food. Montana's overseas lumber and wood products shipments were valued at $20 million in 1981, dou- ble the 1977 value. Nearly all these sales were prod- ucts from saw mills and planing mills. The indus- try's exports provided about 200 jobs in the state. Montana's second ranked exporting industry was primary metals with overseas sales of about $12 million. The exact value of these exports is with- held, however, to avoid disclosure of individual com- panies' data. Chemicals exports were valued at $9 million, about 6.3 percent of this industry's value of production. The state's economy benefits from goods produced not only for direct shipment to foreign destinations but also from those for ultimate export through other states. Tables 6 to 8 show Montana's export figures for manufactures including the output of the supplying establishments that furnish parts and mate- rials to manufacturers producing goods in final form for export. Such indirect exports are particularly important in industries whose products require fur- ther processing such as primary metals, petroleum/ coal products, and chemicals, and also in those indus- tries whose products constitute components and parts for assembly into machinery, electric equipment, and transportation equipment. The Census Bureau has estimated that the full impact of U.S. exports on Montana's manufactur- ing activity was 7.6 percent rather than the 1.4 percent attributable to direct exports as shown in table 3. Thus, of the expanded manufacturing output generated between 1977 and 1981, 9 percent — or $1 out of every $11 — was due to export-related ship- ments. Wheat and flour led agricultural exports Montana's share of U.S. agricultural exports in FY 1982, which included some manufactures of farm origin, totaled $559 million, a 74 percent increase from the FY 1977 level. Wheat and flour valued at $445 million accounted for 80 percent of the total. Montana ranked as the sixth largest exporter of these products. Other commodities of substantial value shipped abroad were feed grains, meats, and (continued on back cover) I ' 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 Montana * 1976 44 1.6 7.4 4.8 1.3 1977 59 1.3 5.5 4.6 1.5 1980 55 1.9 7.8 7.7 2.1 1981 61 1.7 7.5 7.9 2.2 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 * Montana's export-related manufactures were as follows in million dollars: 1976, 204; 1977, 182; 1980, 415; and 1981, 327. About 9 percent Of the increase in Montana's manufacturing production from 1977 to 1981 was generated by growth in export-related manufactures. TABLE 1 Montana Manufactured Exports, Production, and Employment, 1981 • Montana's leading manufactured exports were lumber, primary metals, and chemicals. • These three industries accounted for 66 percent of Montana'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 1 4,290 61 1.4 0.4 1.8 Lumber and wood products 733 20 2.7 0.2 2.3 Primary metal industries ( 1 ) 12* - ( 1 ) — Chemicals and allied products 139 9 6.3 ( 2 ) — Electric and electronic equipment 36 8 23.5 0.1 20.0 Food and kindred products 615 7 1.2 ( 2 ) ~ Petroleum and coal products 1,866 0.1 H — Fabricated metal products 52 1.1 ( 2 ) — Misc. manufacturing industries 18 2.7 H — Machinery, except electric 14 3.5 ( 2 ) — Printing and publishing 94 /3\ 0.2 ( 2 ) — Stone, clay, and glass products 122 (3\ 0.1 ( 2 ) — Transportation equipment 4 /3\ 2.4 ( 2 ) — Furniture and fixtures 7 (»\ — ( 2 ) — Instruments and related products 5 (3\ — ( 2 ) — Rubber and plastic products 3 I 3 ) ~ ( 2 ) » Leather and leather products 2 /3\ ~ ( 2 ) — Apparel and textile products ( 3 ) /3\ — ( 2 ) ~ Paper and allied products o #1\ — ( 1 ) — Textile mill products ( 1 ) /1\ — ( 1 ) — 1 Total includes estimated exports, production values, and employment numbers which are withheld for certain industry groups to avoid disclosure of individual companies' data. 2 Less than 50 employees. 3 Less than $500,000. ~ Not applicable. * Partly estimated. TABLE 2 Montana Growth in Manufactured Exports • In 1981, Montana's manufactured exports totaled $61 million, almost 5 percent more than the 1977 value • Nearly all of the increase stemmed from growth in lumber exports. Export value (million dollars) Export Percent increase increase as from 1977 to 1981 percent of production Industry group 1960 1969 1972 1977 1981 Exports Pro- duction increase 1977-81 Total 1 8 14 ( 2 ) 59 61 4 61 ( 3 ) Lumber and wood products 2 5-10 ( 2 ) 10 20 104 19 9 Primary metal industries ( 1 ) 1-5 ( 2 ) ( 1 ) 12* ~ — Chemicals and allied products ( 1 ) ( 1 ) ( 2 ) 8 9 2 118 ( 3 ) Electric and electronic equipment ( 1 ) ( 1 ) ( 2 ) ( 1 ) 8 - - Food and kindred products 1 1-5 ( 2 ) 38 7 -81 57 Petroleum and coal products ( 1 ) ( 1 ) ( 2 ) (4 5) 1 - ~ Fabricated metal products ( 1 ) ( 1 ) ( 2 ) n 1 - - Misc. manufacturing industries ( 1 ) ( 1 ) ( 2 ) d 1 ~ - Machinery, except electric ( 1 ) ( 1 ) ( 2 ) ( 4 ) 1 67 -18 100 + Printing and publishing ( 1 ) 0-1 ( 2 ) ( 4 ) o 100 51 ( 3 ) Stone, clay, and glass products ( 1 ) 0-1 ( 2 ) ( 45 ) o ~ ~ Transportation equipment ( 1 ) ( 1 ) ( 2 ) 1 o -91 -56 - Furniture and fixtures ( 1 ) ( 1 ) ( 2 ) n o — — Instruments and related products ( 1 ) ( 1 ) ( 2 ) ( 45 ) o ~ - Rubber and plastic products ( 1 ) ( 1 ) ( 2 ) ( 1 ) o ~ — Leather and leather products ( 1 ) ( 1 ) ( 2 ) ( 45 ) ( 4 ) - — Apparel and textile products ( 1 ) ( 1 ) ( 2 ) n ( 4 ) - — Paper and allied products ( 1 ) 0-1 ( 2 ) ( 4 5) n - ~ Textile mill products ( 1 ) ( 1 ) ( 2 ) (4 5) n ~ ~ ' Totals include values for industry groups which are not shown separately, data. 3 Less than one half of one percent. ' Less than $500,000. 5 1976. * 2 Value withheld to avoid disclosure of individual Partly estimated -- Not applicable. companies' TABLE 3 United States Manufactured Exports by State California, Texas, Illinois, Ohio, and Michigan continued to be the top five exporters of manufactures in 1981. Manufactured exports totaled $2 billion or more for almost half of the 50 states. Employment Export value Percent Estimated related to (million dollars) increase exports as exports as Rank as from percent of percent of exporter 1977 to state state State in 1981 1969 1972 1977 1981 1981 production employment U.S., total — 29,210 36,608 85,796 164,283 91 8.1 7.3 California 1 2,721 2,809 9,116 18,775 106 9.8 9.7 Texas 2 1,468 1,982 5,386 11,687 117 6.5 7.2 Illinois 3 2,343 2,902 6,313 10,369 64 8.2 6.9 Ohio 4 2,338 3,054 6,028 10,353 72 8.5 7.9 Michigan 5 2,613 3,522 6,937 10,275 48 9.8 7.6 New York 6 2,296 2,795 5,833 10,155 74 8.5 6.5 Washington 7 954 1,781 2,805 9,023 222 24.5 21.9 Pennsylvania 8 1,902 2,351 4,714 8,129 72 7.1 6.9 Massachusetts 9 818 920 2,310 5,096 121 10.6 8.6 Indiana 10 998 1,404 2,942 5,008 70 7.1 7.0 North Carolina 11 739 705 2,291 4,682 104 7.5 5.0 New Jersey 12 1,114 1,328 2,881 4,469 55 6.1 5.8 Wisconsin 13 785 916 2,132 4,031 89 7.4 7.4 Louisiana 14 396 541 1,494 3,725 149 6.4 6.6 Florida 15 426 567 1,583 3,352 112 9.1 6.6 Virginia 16 581 716 1,573 3,344 113 9.3 6.7 Tennessee 17 472 679 1,501 3,285 119 8.0 5.6 Connecticut 18 659 848 1,662 3,083 85 10.2 8.2 Missouri 19 634 577 1,682 3,013 79 7.3 6.2 Minnesota 20 492 654 1,605 2,730 70 7.7 7.1 Iowa 21 412 590 1,578 2,705 71 8.1 8.2 Georgia 22 428 580 1,419 2,505 76 5.3 4.8 South Carolina 23 254 312 1,150 2,230 94 8.0 5.5 Alabama 24 318 287 895 1,936 116 6.3 5.5 Kentucky 25 345 451 1,354 1,935 43 6.4 5.1 Oregon 26 240 237 906 1,724 90 9.2 9.0 Arizona 27 157 266 680 1,639 141 13.1 15.4 Arkansas 28 204 320 626 1,604 156 8.7 6.1 Kansas 29 241 283 689 1,517 120 5.7 7.6 Oklahoma 30 158 252 639 1,515 137 6.0 7.3 Colorado 31 157 245 668 1,283 92 7.5 8.6 Maryland 32 362 314 634 1,219 92 5.7 5.3 West Virginia 33 235 295 438 1,199 174 10.0 6.1 Mississippi 34 181 236 718 1,159 61 5.9 4.6 Nebraska 35 100 134 328 945 188 6.1 6.3 Alaska 36 33-48 ( 1 ) 374 653 75 33.4 32.5 New Hampshire 37 74 103 290 637 120 8.8 8.9 Rhode Island 38 110 107 297 586 98 7.7 6.8 Maine 39 77 83 232 498 114 5.5 5.6 Idaho 40 35 27 246 460 87 9.2 6.8 Utah 41 48 127 173 449 159 4.6 5.8 Delaware 42 124 128 155 375 142 4.1 3.7 Vermont 43 52 52 183 229 25 6.3 6.0 South Dakota 44 13 ( 1 ) 95 185 96 6.3 4.5 North Dakota 45 7 14 73 156 114 6.6 7.9 Nevada 46 10-25 7 31 105 238 6.8 5.1 Hawaii 47 10-25 ( 1 ) 26 96 265 2.7 2.3 New Mexico 48 16 18 37 64 73 2.0 0.9 Montana 49 14 C) 59 61 4 1.4 1.8 Wyoming 50 1-5 ( 1 ) 6 18 192 0.6 ~ 1 U.S. total includes values withheld to avoid disclosure for individual companies or because estimate did not meet publication standards. - Not applicable. U.S. Manufactured Exports by State All 50 states shared in U.S. exports of manufactures. Exports accounted for varying percentages of domestic production Estimated Value of Exports of Manufactures, 1981 (in millions of dollars) 12,000,- 10,000 o T3 3 1,000 XI 500 100 r* <^<" f ^ # & # & & # 4* & 4* \* v# # # <& £ <$> <& J* A? x v A-" *<>? A7 v v xV vV # o<^ ^ o^ "JPJ & «S ^ *V & -^ &