North Dakota is outpacing all other states in the international marketplace. The state’s exporters increased their international sales by 34 percent last year – more than any other state and nearly three times the national average of 12 percent, the U.S. Department of Commerce reports.
For the first time in North Dakota’s history, the value of its merchandise exports has topped $2 billion, an increase of $513 million from 2006. Not included in the data are the state’s exports of bulk agriculture commodities or services.
“I am extremely excited to see 34 percent growth,” said Dr. Won Koo, an economics professor at North Dakota State University and director of the school’s Center for Agriculture Policy and Trade Studies.
Last year’s merchandise exports generated about $5 billion in indirect economic activity in North Dakota, Koo said.
“The growth in exports is having a significant impact on the state’s economy,” he said. “It’s creating jobs and generating revenue.”
About one in every seven manufacturing workers in North Dakota depend on exports for their jobs, the U.S. Department of Commerce, International Trade Administration reports.
“Our success in the international marketplace is a testament to the ingenuity and drive of North Dakota’s manufacturers and processors,” Geib said. “North Dakota companies are known around the world for producing high-quality goods and services which plays a major roll in our continuing export expansion.”
North Dakota exported to 144 foreign destinations in 2007. The state's leading manufactured export category is machinery manufactures, which alone accounted for $929 million, or 46 percent of North Dakota's total export shipments in 2007. Processed foods and value-added crops rounded out the top three export categories with a combined value of about $617 million.
“North Dakota is diversifying its economy and our growth in the international marketplace is a big part of that,” North Dakota Executive Director Susan Geib said.
North Dakota’s top export destinations in 2007 included Canada with $999 million in purchases representing 49 percent of North Dakota’s export market. Other high-demand markets include Mexico, Russia, Ukraine, Australia and Germany.
Driving North Dakota’s international success are exporters who have earned a reputation for unmatched expertise and products.
“We certainly have a competitive advantage in manufacturing agriculture equipment and in producing value-added crops,” Koo said. “You’re seeing that reflected in the export growth.”
Other factors playing a role in the state’s export growth are the lower-value dollar, increased sales to high-growth emerging economies, the effects of free trade agreements and a concerted effort in North Dakota to take advantage of high-demand markets throughout the world, said Heather Ranck, International Trade Specialist with the U.S. Commercial Service in Fargo.
Since 2005, the Trade Office and U.S. Commercial Service have coordinated eight trade missions and two “reverse” trade missions including last year’s Big Iron International Visitors Program. About 130 foreign buyers took part in the farm show’s international program and efforts are underway to improve on last year’s success, said Joe Delvo, the Trade Office’s global equipment sales manager.
The Trade Office and U.S. Commercial Service also work with companies on a daily basis researching foreign markets, identifying qualified distributors, assisting in export documentation and providing other services.
