By Brandon Moseley
Alabama Political Reporter
Alabama Gov. Kay Ivey announced on Thursday that Alabama exports reached a record $21.7 billion in 2017, powered by rising overseas shipments of products such as automobiles, aircraft components, chemicals, paper and minerals.
New government trade figures show that exports of Alabama-made goods and services increased more than 6 percent from 2016’s total of $20.5 billion, the state’s previous annual record. The gain reflects a long-term trend, as Alabama exports have surged 21 percent since 2011, and 50 percent in a decade, figures indicate.
“We’ve seen Alabama exports continue to expand in recent years, strengthening our economy at home and creating more opportunities for our citizens,” Ivey said. “The companies sending Alabama-made products to markets across the world are not just large, multinational companies, but also small and medium-sized companies located in communities across the state.”
“Setting a new annual export record is just another example of the economic success that Alabama is enjoying right now,” Ivey added.
In 2017, Alabama businesses exported goods and services to 189 countries. The Top 5 markets were: Canada – $4.14 billion, China – $3.62 billion, Germany – $2.94 billion, Mexico – $2.9 billion, and Japan – $682.6 million. Exports to China and Mexico both grew by 10 percent, while shipments to Japan jumped 30 percent, the figures show.
“Exporting is a fundamental economic pillar that supports growth in our state, and increasing demand for Alabama-made products around the globe underscores the success of our dynamic manufacturing sector,” said Alabama Commerce Secretary Greg Canfield. “Growing export activity contributes economic vitality and spurs job creation across the state.”
Transportation equipment remained Alabama’s number one export category, rising nearly two percent to $10.9 billion in 2017. Motor vehicles represent the largest part of Alabama exports in this category, but the total also includes overseas shipments of auto parts and aircraft and spacecraft components.
Other top Alabama exports in 2017, included chemicals – $2.3 billion, primary metals – $1.9 billion, minerals and ore – $1.3 billion, and paper – $1.1 billion, according to trade figures. Exports of minerals, primarily coal, rose 158 percent last year, while primary metals and paper each rose about 28 percent.
“With much of the world’s purchasing power located outside the U.S., Alabama companies are looking at markets beyond our borders for growth opportunities,” said Hilda Lockhart, director of the Commerce Department’s Office of International Trade. “Exports enhance the quality of life for all Alabamians and elevate prosperity in the state. Creating jobs through exports for the state’s citizens is key to accelerating Alabama globally.”
Alabama ranked number 22 among the states in export volume in 2017, moving up one spot from the previous year, Lockhart said. Alabama’s increase of 6.3 percent last year was in line with the overall U.S. gain of 6.6 percent.
The U.S. shipped $1.547 trillion worth of goods around the globe in 2017. That amount represents a 6.6 increase from 2016 to 2017 but is still a two percent decrease since 2013. That $1.547 trillions in exports translates into $4,700 in export revenue for every U.S. resident.
The top ten categories of American exports are:
- Machinery including computers: $201.7 billion
- Electrical machinery, equipment: $174.2 billion
- Mineral fuels including oil: $138 billion
- Aircraft, spacecraft: $131.2 billion
- Vehicles: $130.1 billion
- Optical, technical, medical apparatus: $83.6 billion
- Plastics, plastic articles: $61.5 billion
- Gems, precious metals: $60.4 billion
- Pharmaceuticals: $45.1 billion
- Organic chemicals: $36.2 billion
The biggest increases were in mineral oils and organic chemicals in 2017.
America’s top 10 exports accounted for over two-thirds–69.2 percent–of the overall value of its global shipments.
America’s unemployment rate was 4.1 percent as of Jan. 2018, which is an improvement from the 4.8 percent jobless rate a year ago. Alabama’s unemployment rate in December was a record low at 3.5 percent.
