Idaho topped Washington by $300 million in high-tech merchandise exports last year, with both states cresting the $3 billion-a-year mark, according to a study released last month. Total U.S. high-tech exports fell by 3 percent, however, to $214 billion, the data showed.
The study, titled “Trade in the Cyberstates 2008,” looks at high-tech trade flows at the national level and tech-goods exports for all 50 states, the District of Columbia, and Puerto Rico. It was conducted by AeA, which claims to be the nation’s largest technology trade association, with 2,500 member companies representing all facets of the high-tech industry.
The study found that Idaho and Washington had $3.3 billion and $3 billion in high-tech exports last year, respectively, ranking 16th and 20th nationally. Idaho’s high-tech exports increased by $695 million, or 27 percent, over 2006, while Washington’s grew by $43 million, according to the data.
AeA notes, though, that 70 percent of all exports from Idaho are high-tech exports, the second-highest tech-export concentration in the nation, and the vast majority of those exports—$2.8 billion worth—are semiconductors. Just 5 percent of the exports from Washington are tech exports, ranking it 45th nationally.
The organization says 13,500 jobs in Idaho and 12,400 jobs in Washington are supported by tech exports.
“Idaho has a strong semiconductor industry that makes up the majority of the state’s exports,” and the jobs in the state that the industry supports pay well, says Terry Byington, executive director of AeA’s Lynwood, Wash.-based Washington Council, which represents Idaho.
Along with its high ranking for semiconductor exports, Idaho ranked 26th in exports of computers and peripherals, at $350 million, and 38th in industrial-electronics exports, at $84 million.
J.D. Hammerly, chairman of AeA’s Washington Council, says, “When most people think of Washington’s high-tech economy, they think of one thing—software, but tech manufacturing exports from Washington have been steadily growing for five straight years.” Altogether, they’ve increased 27 percent over that period, AeA says.
Last year, Washington ranked sixth nationally in consumer-electronics exports, at $269 million; 13th in electromedical equipment exports, at $344 million; and 14th in industrial electronics exports, at $794 million. Canada was the state’s top export destination, at $540 million, followed by The Netherlands, at $286 million, and Taiwan, at $255 million.
High-tech is the single largest merchandise export sector in the U.S., representing 18 percent of all U.S. exports to the world, AeA says.
Yet, while total U.S. high-tech exports fell 3 percent to $214 billion last year, high-tech imports rose by that same percentage to $333 billion, resulting in a high-tech trade deficit of some $120 billion, the organization’s study shows.
“Trade is critical for the U.S. high-tech industry and for every state’s economy,” says Christopher W. Hansen, the organization’s president and CEO. “The bad news is that U.S. tech exports declined slightly in 2007. The good news, however, is that tech exports rose in 29 states. These exports support nearly 900,000 American jobs—an often overlooked fact.”
Among the 29 states that saw tech export growth last year, Virginia, Florida, Idaho, New Jersey, and Utah had the highest percentage gains.
California was the leading high-tech export state with $48.2 billion in exports, followed by Texas with $35.9 billion. California, Texas, and Colorado had the largest decreases.
The largest overseas markets for U.S. high-tech exports last year were the European Union, $46.6 billion; Canada, $29.4 billion; Mexico, $26 billion; China, $14.5 billion; Japan, $11.9 billion; and Singapore, $9.2 billion.
The fastest-growing export markets having $1 billion or more in U.S. tech exports between 2006 and 2007 were Portugal, the Domin ican Republic, Belg ium, Colombia, and Argentina.
On the other side of the trade picture, the U.S. imported the most high-tech products from China, at $112.3 billion; Mexico, $51.3 billion; the European Union, $33.4 billion; Japan, $29.2 billion; and Malaysia, $25.1 billion.
High-tech was the second largest import sector, just behind energy products. The largest high-tech import subsectors last year were computers and peripheral equipment, $103.2 billion; communications equipment, $74.0 billion; and consumer electronics, $54.4 billion.
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