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Massachusetts Exports on the Rise; State Figures Surpass U.S. Average

Massachusetts export shipments out-paced the national average in the third quarter of 1999 and registered positive growth for the second quarter in a row, according to figures released by Massport.

Bay State companies enjoyed a 3.6 percent increase in exports over the same period last year -- exceeding the national average of only 0.7 percent growth. Among the top 15 exporting states, only Michigan outperformed Massachusetts in export sales. The current quarterly figures are also a solid improvement over the states second quarters export rise of 0.6 percent. The export data was compiled by the Massachusetts Institute of Social and Economic Research (MISER).

"Every day, Massport helps Massachusetts companies compete and win in the international marketplace," said Massport Executive Director and CEO Virginia Buckingham.

Electronic and electric equipment, excluding computers, has taken over as the states export leader, a position held until the first quarter of this year by industrial machinery, including computers. Since 1988 electronic and electrical equipment has gradually increased its share of the states total exports from a 10 percent share to a 25 percent share today. Another fast-growing major export sector is instruments and related products, including medical devices.

Exports of medical devices from the port of Boston rose 68 percent from $215.5 million to $424.1 million, between 1995 and 1998. The national average exports of medical devices rose only by 29 percent, according to the U.S. Department of Commerce.

The medical device/medical technology industry is the single largest concentration of client company services and programs by Massports International Marketing Trade Development unit. Last year, 12 percent of Massachusetts medical device production was exported. The Commonwealth is rapidly gaining an international reputation as the leading provider of medical devices and technology. In November, Massport trade representatives led 17 New England companies, including l5 manufacturers, to attend MEDICA, the worlds premier medical/medical device trade show, Dusseldorf, Germany. Massport has recruited and led local companies to attend MEDICA since 1992.

Purchases of all Massachusetts products by Korea, Malaysia, Thailand, and Singapore -- Asian countries that had been hit hardest by economic downturns in 1997 and 1998 -- all marked double digit growth in the third quarter. The increases ranged from 20.9 percent for Thailand to 56.2 percent for Korea. China exports were also strong at 34.6 percent, but down considerably from the remarkable 103 percent growth registered in 1998.

"The China economy is stalled right now," said Charles Yelen, Massports managing director of international marketing. "If Chinas ascension to the WTO is ratified next year, look to see another boost in export growth," he continued. "The market for Massachusetts high tech industrial products should be particularly promising as China retools its industry to improve its productivity and competitiveness."

Japans still sputtering economic recovery continued to stymie local exporters and sales to that important market remained down for the third consecutive quarter -- this time by slightly more than 10 percent.

Sales growth to most of Massachusetts major trading partners in the European Union were strong: UK, 6 percent; Netherlands, 36 percent; France, 17.2 percent; Ireland, 20 percent; Italy, 9.1 percent. The one notable exception to the positive trend in Europe was Germany. Exports to the German market were off 14.6 percent at the end of the last quarter and like Japan were in the negative growth column for the third consecutive quarter.

"Germany has been experiencing sluggish domestic demand for the past couple of years, but things should pick up next year," said Yelen. "Economists in Germany are forecasting growth of 2.7 percent in 2000 and a drop in unemployment levels which should lead to a jump in imports overall."

Another slow market for local exporters was Canada. Although still the Commonwealths number one international market, exports to our northern neighbor continued a negative growth slide that began last year. Third quarter export figures were down 8.1 percent.

On the brighter side, our other NAFTA partner, Mexico, was a standout performer for Massachusetts companies in Latin America in the third quarter with export sales expanding more than 35 percent.

"Overall the states export picture is very strong," commented Buckingham, "and we expect the trend to continue into 2000."