Current Conditions
Illinois’ Exports & Foreign Direct Investment
ECONOMIC IMPACT:
ILLINOIS’ EXPORTS & FOREIGN DIRECT INVESTMENT
Exporting is a significant portion of Illinois’ Economy
• Since 2002, Illinois Exports have grown $16.4 billion, a 64% increase
• Illinois exports totaled more than $42.08 billion in 2006, an increase of 17.3% from 2005
• Illinois became the 5th largest exporting state in the US in 2006, its highest ranking ever
• Direct exports were approximately 6.4% of the Gross State Product (GSP) in 2005
• 448,400 Illinois jobs are supported by exports
Foreign Direct Investment*
• Illinois ranks #1 in the Midwest as a destination for foreign investment
• Illinois has attracted 1,406 foreign firms with 4,669 locations
• These firms employ over 207,672 Illinois residents
Illinois and NAFTA
• Illinois has realized significant benefits from NAFTA related trade
• Canada and Mexico are Illinois’ two largest trading partners importing approximately 37% of Illinois’ total exports
• Illinois exports totaled more than $15 billion to NAFTA country partners in 2006
Top 5 Industries for Illinois’ Exports:**
- Machinery(Except Electrical),
- Computers, Electronics, Products & Equipment,
- Chemicals,
- Transportation Equipment,
- Agricultural, Food & Kindred Products
*Foreign Direct Investment Data Source: Dunn & Bradstreet
* *Export Data Source: WISER Origin of Movement Series
ECONOMIC IMPACT:
MISSOURI’S EXPORTS & FOREIGN DIRECT INVESTMENT
Missouri’s exports for 2007 were up 5 percent compared to 2006 according to World Institute for Strategic Economic Research (WISER).
Through the end of December 2007, exports by Missouri companies totaled $13.4 billion, compared to $12.8 billion in 2006.
Fifteen Missouri product categories each topped $100 million in export sales through the end of 2007, including:
- transportation equipment,
- chemicals,
- machinery,
- food and kindred products,
- electrical equipment,
- agricultural products,
- computer and electronic products,
- fabricated metal products,
- minerals and ores,
- primary metal manufacturing,
- waste and scrap,
- plastics and rubber,
- printing, publishing and similar products,
- miscellaneous manufactured,
- leather and allied products
Thirteen of Missouri’s top fifteen export product categories increased global sales in 2007.
Missouri's top ten export recipients during the year included Canada, Mexico, South Korea, China, Japan, Belgium, United Kingdom, Germany, Brazil, and Australia.
These ten countries accounted for 80 percent of the state's export revenues.
Brazil is new to Missouri's top ten replacing Netherlands from the previous year's list.
INTERNATIONAL MARKET POTENTIAL
International Trade Demand Trends
Current U.S. economic and market conditions have increased the demand for export services. Manufacturers are faced with declining market opportunities with many products in the maturity or decline stage of the product life cycle. However, certain products considered technologically obsolete in the domestic market often represent high technology in the markets of Eastern and Central Europe and other foreign markets.
Foreign sales can help small manufacturers achieve economies of scale by increasing production and reducing per unit production costs resulting in higher profitability overall. The fall in the value of the dollar has also made U.S. exports more competitive. U.S. products are relatively cheaper when compared with similar foreign goods.
*Humphrey Legal Services, P.C. (HLSPC) is a registered, licensed vendor of legal services in the State of Illinois. Humphrey Legal Services, P.C. DOES NOT and WILL NOT represent your company in a legal capacity in domestic or international transactions.