Sept. 21 - State Exports Up 19 Percent in 2nd Quarter

ST. PAUL – Minnesota manufacturers exported $4.3 billion in goods in the second quarter of 2010, a 19 percent increase from the same period a year ago, according to figures released today by the Minnesota Department of Employment and Economic Development (DEED).

The agency said manufactured exports climbed $681 million in the second quarter from $3.6 billion during the same period last year. This year’s results nearly matched the all-time high for exports during the second quarter, which reached $4.4 billion in 2008.

Through the first six months of the year, Minnesota exports were up 18 percent from 2009, while U.S. exports climbed 22 percent in the first half of the year.

“Minnesota’s strong export showing in the second quarter is a healthy sign for the state economy,” said DEED Commissioner Dan McElroy. “The state’s manufacturing sector increasingly relies on strong foreign sales, with exports responsible for one in six jobs in the industry.”

Exports to nine of the state’s top 10 foreign markets climbed in the quarter, led by Canada, which purchased $1.1 billion worth of Minnesota-made products, an increase of 16 percent from a year ago.

Other top foreign customers were China ($448 million, up 36 percent), Japan ($222 million, up 36 percent), Mexico ($207 million, up 42 percent), Germany ($177 million, up 23 percent), South Korea ($160 million, up 11 percent), Belgium ($147 million, up 7 percent), Netherlands ($143 million, up 49 percent), United Kingdom ($142 million, down 3 percent), and Singapore ($137 million, up 58 percent).

By region, Minnesota exports jumped 36 percent to $1.4 billion in Asia and climbed 20 percent to $1.3 billion in North America.

Ireland was one of the state’s few export markets to show a large drop during the quarter, with sales declining 51 percent to $109 million, primarily because of lower demand for medical-related products.

Minnesota’s largest export sector is computers and electronics, which climbed 22 percent from a year ago to $1 billion.

Other top 10 categories are machinery ($796 million, up 16 percent), transportation equipment ($488 million, up 38 percent), miscellaneous products including medical ($405 million, down 12 percent), food products ($326 million, up 6 percent), chemicals ($275 million, up 37 percent), paper ($186 million, up 29 percent), electrical equipment ($163 million, up 7 percent), fabricated metal ($148 million, up 18 percent), and plastics and rubber ($134 million, up 22 percent).

“Computers and electronics performed particularly well in Asia, where sales climbed 448 percent in Thailand, 67 percent in the Philippines and 48 percent in China,” said Ed Dieter, acting director of the Minnesota Trade Office. “Asia also had a strong appetite for Minnesota-made machinery products, with sales up 39 percent in China and 82 percent in Singapore.”

Gov. Tim Pawlenty last week led a trade mission of business and agricultural leaders to China and Japan to further strengthen Minnesota’s ties to these leading markets.

A full report on second quarter exports can be found here.

DEED is the state’s principal economic development agency, promoting business recruitment, expansion and retention, workforce development, international trade and community development. For more details about the agency and our services, visit us at www.PositivelyMinnesota.com.

Upon request, the information in this news release is available in an alternative format such as Braille, large print, audiotape or computer disk.

Minnesota Department of Employment and Economic Development
Communications Office
Phone 651/259-7161 or 1-800-657-3858 ∙ TTY 1-800-657-3973
www.PositivelyMinnesota.com