(L(o\. ^o'.n^K NewHampshire Exports *£ O^ - ■ SAS > 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 Hampshire's Export Highlights 2 Explanatory Notes 3 Table 1 - New Hampshire's Manufactured Exports, Production, and Employment, 1981 4 Table 2 - Growth in New Hampshire'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 Hampshire's Agricultural Exports 9 Table 5 - U.S. Agricultural Exports by State 10 Table 6 - New Hampshire's Manufactured Production, Export-Related Manufactures and Employment, 1981 11 Table 7 - Growth in New Hampshire'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 NewHampshire Export Highlights New Hampshire's exports of manufactured goods totaled $637 million in 1981, 120 percent above the 1977 level. They rose more than twice as fast as production. An estimated 9,900 jobs in New Hampshire were directly related to producing manufactured exports in 1981. Some 5,900 additional jobs were required to produce materials and parts for incorporation in products exported from the 50 states. Thus about 15,800 jobs in New Hampshire were dependent on exports of manufactured goods — about one of every seven manufacturing jobs in the state. Manufactured exports rose sharply New Hampshire's exports of manufactures totaled $637 million in 1981, an increase of 120 percent since 1977. The state, which ranked as the 38th largest exporter in the nation in 1977, moved up to 37th in 1981. Exports from New Hampshire firms rose much faster than the 80 percent increase in the state's output of manufactured goods from 1977 to 1981. Nonelectric machinery was the largest of New Hampshire's exports, accounting for 46 percent of the 1981 total. Sales to foreign customers of paper products, instruments, leather products, and elec- tric and electronic equipment were also sizable. Exports of nonelectrc machinery tripled in value after 1977 to reach $293 million in 1981. In the same period, the state's output of nonelectric machinery rose even faster, of which about 14 percent was generated by exports. Twenty three percent of the industry's work force, or an estimated 4,700 jobs, were directly related to exports in 1981, and nearly 15 percent of New Hampshire's output in this industry was shipped overseas. Since 1977, overseas sales of paper products climbed by 48 percent to total an estimated $75 million in 1981. Though the second largest export- ing industry in the state, exact data regarding pro- duction and employment were withheld to avoid disclosure of individual companies' data. The third largest export from New Hampshire in 1981 was instruments. Valued at $61 million, these shipments abroad accounted for 13.7 percent of industry production value. Though the production growth rate since 1977 was faster than that of exports, overseas sales growth was 12 percent of production expansion. About 1,000 jobs were related directly to these exports. The Census Bureau has estimated that the full impact of U.S. exports on New Hampshire's manu- facturing activity was 13.6 percent rather than the 8.8 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, 17 percent — or $1 out of every $6 — was due to export-related shipments. Fruit products exported New Hampshire's share of U.S. agricultural exports in FY 1982, including some manufactures of farm origin, totaled an estimated $4 million, double the FY 1977 level. Fruits and preparations, the princi- pal exports, were valued at $1 million. The growth in exports of agricultural products from FY 1977 to FY 1982 accounted for 9 percent of the rise in farm sales and added to the income of New Hampshire farmers. In this period, the export contribution to each dollar of the state's farm sales increased from 2 to 4 cents. Exporter of fish New Hampshire's exports of fishery products totaled $449,000 in 1981, virtually double the amount in 1977. (continued on back cover) U. 5. 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 Hampshire * 1976 291 10.5 12.0 15.1 4.4 1977 290 9.7 10.2 14.3 3.9 1980 598 14.8 13.8 23.0 5.4 1981 637 15.8 14.1 24.3 5.5 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 Hampshire's export-related manufactures were as follows in million dollars: 1976, 443; 1977, 455; 1980, 935; and 1981, 994. About 17 percent of the increase in New Hampshire's manufacturing production from 1977 to 1981 was generated by growth in export-related manufactures. TABLE 1 NewHampshire Manufactured Exports, Production, and Employment, 1981 • New Hampshire's leading manufactured exports were nonelectric machinery, paper and instruments. • These three industries accounted for 67 percent of New Hampshire's total exports of manufactures. Industry group Estimated Production exports (million dollars) Exports as percent ol production Estimated employment related to exports (thousands) Employment related to exports as percent of total employment Total 1 7,259 637 8.7 9.9 8.9 Machinery, except electric 2,002 293 14.6 4.7 23.4 Paper and allied products ( 1 ) 75* ~ ( 1 ) ~ Instruments and related products 443 61 13.7 1.0 12.3 Leather and leather products 324 60 18.6 0.7 8.4 Electric and electronic equipment 762 58 7.6 1.2 8.4 Rubber and plastic products 445 20 4.5 0.3 3.6 Fabricated metal products 348 17 4.9 0.2 3.2 Textile mill products 2 195 11 5.6 0.2 5.4 Stone, clay, and glass products 164 9 5.7 0.1 3.3 Primary metal industries 214 7 3.3 ( 3 ) ~ Transportation equipment 146 6 4.0 0.1 2.9 Misc. manufacturing industries 85 5 5.4 ( 3 ) ~ Lumber and wood products 311 4 1.4 0.1 2.4 Food and kindred products 501 2 0.4 ( 3 ) ~ Chemicals and allied products 123 1 1.1 ( 3 ) ~ Furniture and fixtures 141 1 0.8 ( 3 ) ~ Apparel and textile products 64 1 1.7 ( 3 ) — Printing and publishing 280 1 0.4 ( 3 ) — Petroleum and coal products 7 ( 4 ) — ( 3 ) ~ 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 1980. 3 Less than 50 employees. 4 Less than $500,000. ~ Not applicable. * Partly estimated. TABLE 2 NewHampshire Growth in Manufactured Exports • In 1981, New Hampshire's manufactured exports totaled $637 million, two and one-fifth times the 1977 value. • Over half the increase stemmed from growth in nonelectric machinery exports. Export value (million dollars) Percent increase from 1977 to 1981 Pro- Exports duction Export increase as percent of production Industry group 1960 1969 1972 1977 1981 increase 1977-81 Total 1 46 74 103 290 637 120 80 11 Machinery, except electric 19 24 32 95 293 208 272 14 Paper and allied products 4 5-10 27 51 75* 48* ( 2 ) ( 2 ) Instruments and related products ( 3 ) 1-5 /2\ 38 61 62 80 12 Leather and leather products 3 1-5 /2\ 5 60 1082 7 100 + Electric and electronic equipment 2 13 17 34 58 68 51 9 Rubber and plastic products ( 3 ) 1-5 I 2 ) 17 20 19 53 2 Fabricated metal products ( 2 ) 1-5 (2\ 5 17 240 84 8 Textile mill products 2 1-5 /2\ 6 11 4 88 5 -11 5 100 5 Stone, clay, and glass products ( 3 ) 0-1 /2\ 2 9 304 43 14 Primary metal industries ( 2 ) 0-1 /2\ 1 7 914 96 6 Transportation equipment H 0-1 /2\ 8 6 -25 80 Misc. manufacturing industries 2 1-5 /2\ 1 5 360 76 10 Lumber and wood products 1 1-5 /2\ 9 4 -53 54 Food and kindred products 1 1-5 /2\ 5 2 -60 49 Chemicals and allied products ( 2 ) 1-5 I 2 ) 12 -89 46 Furniture and fixtures ( 3 ) 0-1 ( 2 ) ( 3 ) 267 155 1 Apparel and textile products ( 3 ) 0-1 /2\ 1 57 32 3 Printing and publishing ( 3 ) 0-1 I 2 ) 1 67 62 ( 6 ) Petroleum and coal products ( 2 ) ( 2 ) (2\ ( 2 ) ( 3 ) — ~ — Totals for all years include values for industry groups which are not shown separately. 2 Not available. 3 Less than $500,000. 1980. 5 1977-1980. 6 Less than one-half of one percent -- Not applicable. * Partly estimated. 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 0) 26 96 265 2.7 2.3 New Mexico 48 16 18 37 64 73 2.0 0.9 Montana 49 14 ( 1 ) 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 0) o CO T3 5 1,000 T3 L- 500 100 Estimated Value of Exports of Manufactures, 1981 (in millions of dollars) 12,000,- 10,000 P ^ fjpj? 4* & # 4* # #J>