Courtesy of the New Mexico Economic Development Department
SANTA FE – The International Trade Administration (ITA) recently announced new export data that shows New Mexico merchandise exports increased 63 percent in the first half of 2012 compared to the same period in 2011, growing from $944 million to $1.5 billion. This percentage growth topped the 7 percent national average for merchandise export growth for the same period. According to official U.S. Department of Commerce estimates, it is calculated that for every $1 billion in exports up to 6,250 jobs are created or supported.
“Though roughly one-seventh of New Mexico manufactures export and a total of 921 companies export from a New Mexico location, we are working hard to increase both numbers,” Governor Susana Martinez said. “Not only through our international trade efforts but through improving the tax and regulatory environment and offering a steady stream of job training funds, we are making the state an excellent place for businesses to produce the goods and services that can be exported around the world.”
In New Mexico, small and medium-sized enterprises with fewer than 500 employees accounted for 777 or 84 percent of the companies exporting from New Mexico. Small and medium-sized enterprises generated over 46 percent of total exports from New Mexico.
“This administration is focused on getting New Mexico companies to realize the potential of expanding their markets to other countries,” said Economic Development Secretary Jon Barela. “As the national economy remains sluggish there are great opportunities for New Mexico companies worldwide, that is why the Economic Development Department’s Office of International Trade has organized international trade missions, export workshops and established export offices in key markets.”
New Mexico’s first half 2012 merchandise export sales outpaced the 2011 figures for the same period in many top destinations, including Israel (up 606 percent), Saudi Arabia (224 percent), Chile (126 percent), Brazil (125 percent) and France (72 percent). Key merchandise export categories include computer and electronic products, fabricated metal products, machinery manufactures, food and kindred products, and transportation equipment.
Trade to Mexico increased 68 percent, going from $216, 962,230 to $317,410,764, in two years. Mexico is a target trade country for the Martinez Administration. “Though the expanded ports of entry at the border and a focus on making the border area more friendly to transportation, manufacturing and logistics companies strong growth in respect to those industries,” Secretary Barela added.
For the six month period that just ended, the top five in export growth were D.C. with 162 percent; New Mexico 63 percent, Nevada 39 percent; Arkansas 36 percent and West Virginia 31percent.
In the U.S., less than 1 percent of America’s 30 million companies export, a figure that is substantially lower than all the other developed economies. Of the U.S companies that do export, close to 58 percent export to only one country and have not diversified to other export markets; this in spite of the fact that 95 percent of consumers reside outside the U.S.
The Office of International Trade (OIT) at the New Mexico Economic Development Department was created to promote New Mexico exports around the globe by helping companies identify new markets and locate distribution partners in promising markets. OIT maintains a network of international trade offices serving the Greater China, Middle East and Brazil to support New Mexico businesses and facilitate trade opportunities. OIT has been awarded an SBA STEP Grant which is being utilized by the department to pay for company participation in foreign trade shows and in matchmaking services like the U.S. Department of Commerce Gold Key Service. OIT conducts frequent seminars and workshops spotlighting on doing business in specific markets or regions, also on the fundamentals of exporting such as export marketing, establishing and managing foreign distribution networks, export financing and letters-of-credit; shipping and logistics and cross cultural communications.
