Recent export numbers provided a glimmer of hope that both the global and Colorado economies are slowly improving. As reported by Rita Wold in the November 12th issue of the Denver Post , Colorado exports through the first 8 months of the 2010 are about 10% higher than for the same period last year. This growth was driven by gains in the top agriculture category and each of the top four manufacturing groups.
Colorado exports, as calculated by WISER , peaked at almost $8.0 billion in 2006, followed by a series of declines to $5.9 billion last year. Total exports in the neighborhood of $6.5 billion are on tap for 2010.
The top agricultural export is, “Meat of Bovine Animal, Fresh or Chilled;” as beef sales are Colorado’s top meat export. In 2005, meat exports bottomed out at about $152 million as fears of Mad Cow disease caused many of the state’s trading partners to block sales of beef imports.. As concerns about the disease subsided, the markets for Colorado beef and other meats increased over the next several years to $400 million in 2008. Demand has declined with the global recession and Colorado meat exports should exceed $330 million this year.
On the manufacturing side of the equation, the top export category is electronic integrated circuits and microassembly parts. In 2006, exports in this category totaled $1.3 billion, and accounted for 16% of the state total. In 2010, this category will account for about 6% of total exports, or $430 million. The loss of the Intel plant in Colorado Springs several years ago, along with the restructuring of the computer storage industry brought about the precipitous decline in Colorado manufacturing exports and employment.
The increase in Colorado manufacturing exports bodes well for the recovery of the Colorado economy, however, it is not likely to drive a strong short-term increase in employment. Over the past decade, manufacturers have increased productivity and output at the expense of a larger work force.
The Colorado Office of Economic Development and International Trade and the World Trade Center provide a variety of programs and assistance to Colorado exporters. Many of these services are particularly valuable to first-time exporters or to business exporting to countries for the first time.
©Copyright 2011 by CBER.