State Commerce Department wins President’s ‘E’ Award for supporting Alabama exports
U.S. Secretary of Commerce Wilbur Ross today presented the Alabama Department of Commerce with the President’s “E” Award for Export Service, the highest recognition an organization can receive for contributing to the expansion of U.S. exports. At a ceremony in the nation’s capital, Ross said the Alabama Department of Commerce has demonstrated a sustained commitment to increasing exports. “The ‘E’ Awards Committee was very impressed with the department’s formation of the Export Alabama Alliance,” he noted. “The department’s contributions to the export growth of Alabama companies through international trade missions were also particularly notable. “The Alabama Department of Commerce’s achievements have undoubtedly contributed to national export efforts that support the U.S. economy and create American jobs,” he added. Alabama companies exported a record $21.7 billion in goods and services during 2017, led by shipments of motor vehicles, chemicals, primary metals, minerals, aircraft components and paper products to 189 foreign countries. Alabama’s exports have surged 21 percent since 2011 and 50 percent over a decade, reflecting a long-term growth trend. “We are extremely honored to receive the President’s ‘E’ Award,” Alabama Commerce Secretary Greg Canfield said. “Alabama companies are creating good-paying jobs as a result of exporting their products throughout the world, and exports of goods and services continue to be an economic engine that spurs job creation and economic investment.” Finding markets The Alabama Department of Commerce’s Office of International Trade helps businesses across the state identify and penetrate foreign markets for their homegrown products. Over many years, the office has staged a series of trade and business development missions to countries around the globe, most recently to Argentina and Ecuador in April. “The Alabama International Trade program has proven to be a tremendous resource for the state’s small and medium-sized companies,” said Hilda Lockhart, director of Commerce’s Office of International Trade. “Assisting them in finding international markets for Alabama-made products is the key to growing exports and jobs at home. “Receiving this prestigious award validates the hard work that all members of the Export Alabama Alliance have accomplished since it was formed in 2004,” she added. The Export Alabama Alliance is a seamless network of international trade agencies with the fundamental objective of helping Alabama companies expand their business internationally. Lockhart and Beau Lore, an international trade specialist in the Office of International Trade, were on hand at the U.S. Department of Commerce’s Herbert C. Hoover building on Constitution Avenue to receive the award. Supporting jobs In total, Ross honored 43 U.S. companies and organizations from across the country with the President’s “E” Award for their role in strengthening the U.S. economy by sharing American ingenuity in foreign markets. U.S. companies are nominated for the “E” Awards through the U.S. Commercial Service, part of the department’s International Trade Administration (ITA). With offices across the United States and in embassies and consulates around the world, the ITA lends its expertise at every stage of the exporting process. U.S. exports totaled $2.33 trillion in 2017, accounting for 12 percent of U.S. gross domestic product. Exports supported an estimated 10.7 million jobs nationwide in 2016, according to the most recent ITA statistics. Republished with the permission of the Alabama Newscenter.
Alabama exports surging in unexpected corners of the world
It’s clear that 2016 was a stellar year for Alabama exports, with rising shipments in a number of markets worldwide, signaling even more optimism for the future. The top five destinations for state goods and services – Canada, China, Germany, Mexico and the United Kingdom – remained relatively unchanged from 2015 and most showed year-over-year growth. Overall, Alabama-made goods were shipped to 189 countries. A number of them, while not among the top five, showed significant growth in 2016, including Kuwait, Russia, Taiwan and the United Arab Emirates. The Alabama Department of Commerce is always studying trade trends among state businesses and manufacturers, using the information to plan seminars and trips aimed at helping companies boost their export business, said Hilda Lockhart, director of Commerce’s Office of International Trade. Economic engine With Alabama’s 2016 exports reaching a record $20.55 billion, increasing 6.4 percent from the previous year, officials are looking to build on that momentum, Lockhart said. “We know rising exports for Alabama companies in overseas markets means greater potential for new jobs and investment back home,” Lockhart said. “International trade is truly a local economic engine, and Alabama workers and communities benefit from the growth.” U.S. Commerce Department figures show the state’s exports have risen 15 percent since 2011 and 48 percent since 2006. Vehicles are the state’s top export, by a large margin. Other key categories include chemicals, primary metals, paper products and non-electrical machinery, a category that includes combustion engines, agricultural machinery, metalworking machine tools and much more. Lockhart offered a closer look at some of the fastest-growing markets for Alabama exports, and what’s driving them: KUWAIT: Alabama’s exports to the Persian Gulf country increased to $104.9 million in 2016, a 285 percent spike from the previous year. The largest increases were in fabricated metal products, chemicals and paper. “This year Alabama was Kuwait’s No. 1 trading partner in the nation for fabricated metal products, perhaps due to the country’s recent expenditures on various hydrocarbon and petrochemical refineries, such as the $10 billion Olefins 3 plant,” Lockhart said. Currently in the pre-execution phase, the Olefins 3 plant will produce 1.4 million tons of ethylene a year when it is completed. The petrochemical is commonly used in the manufacturing process. RUSSIA: Shipments of state exports to Russia rebounded in 2016 to $102.1 million, after a poor showing the previous year, with major increases in the export of non-electrical machinery, chemicals and paper. Alabama was Russia’s No. 5 trading partner among U.S. states for non-electrical machinery products.Russia’s demand for machinery is “driven by the government’s strategy to modernize Russian industry across several sectors, including power generation, transportation, defense, automotive and aerospace,” according to the U.S. Foreign Commercial Service. Lockhart said the drop in exports in 2015 likely occurred because of the contraction in the price of oil that year, which caused a recession in Russia and other oil-producing countries. TAIWAN: Exports from Alabama to Taiwan nearly doubled in 2016, increasing to approximately $200 million. The largest gains were in chemicals, computer and electronic products, and paper. “Chemical exports alone accounted for more than half of the 2016 total, showing a two-year increase from $19.6 million in 2014 to $102.7 million in 2016,” Lockhart said. The state was Taiwan’s No. 6 trading partner in the nation for chemicals, predominantly in the category of basic chemicals, which include industrial gases used in the semiconductor production process. Lockhart said the semiconductor industry, including manufacturing, design and packaging, is a cornerstone of the Taiwanese IT economy, so it is likely that the increased exports are feeding into this sector. UAE: Alabama firms shipped $467.8 million in exports to the United Arab Emirates in 2016, an increase of more than 100 percent compared to exports just two years earlier. Much of the growth took place in the categories of transportation equipment, non-electrical machinery and chemicals. The state was the UAE’s No. 5 trading partner in the U.S. for transportation equipment, with this category alone accounting for $396.2 million of the export total for the year. “Aerospace products make up the bulk of these transportation equipment exports as the UAE develops its burgeoning satellite and Mars mission programs, expands its military and increases investment in the commercial airline industry,” Lockhart said. Meanwhile, other up and coming markets have shown significant growth over the past five years, and they could be potential targets of new, increased efforts to fuel trade, Lockhart said. The countries include Vietnam, Oman, the Bahamas, Denmark, Finland, Kenya, Liberia, Hungary and Bosnia-Herzegovina. This story originally appeared on the Alabama Department of Commerce’s Made in Alabama website. Republished with permission of Alabama NewsCenter.
