> Why is Rhode Island lagging behind the nation in regard to growth in exporting? A study by the Massachusetts Institute for Social and Economic Research at UMass Amherst says the state’s major growth export has not been strong enough to carry the rest of the economy in recent years. Maureen Mezei, international trade director for the Rhode Island Economic Development Corporation, said the lack of growth is not limited to Rhode Island either. By Emilio DiSpirito IV License Partner | Engel & Völkers Oceanside Leader | The DiSpirito… ”We’re pretty well on a par with the Northeast region as a whole,” she said. “There has been more substantial growth if you look at the whole nation though. It also depends on what period of time you look at. If you look at the whole decade Rhode Island’s growth has matched the growth of the Northeast. But Rhode Island and the entire Northeast have been below the U.S. annual growth.” Rhode Island’s primary export is electronics and electrical equipment, excluding computers, which features such products as static converters, automatic data processing power supplies and digital integrated circuits using bipolar technology. From 1999 to 2000, the percent of exports within the electronics industry grew by almost 13 percent. According to local business databases there are about 60 businesses in that sector in the state. ”Electronics and electrical equipment have shown a really good growth,” said Mezei. “I think some of the other industries have been impacted by various factors of the world market. It’s a very intricate puzzle.” She said part of the intricate puzzle and part of the problem with electronics being the top export is that the U.S. is only one of many countries that manufacture products of that sort. ”There could be a global glut,” she said. “Too much capacity could be chasing too few customers.” The second highest number of exported goods from Rhode Island comes from the industrial machinery industry, which includes computers, ticketing machines, magnetic/optical readers, and printing machinery. This sector grew by nearly $70 million from 1999 to 2000. Mezei said several companies are responsible for this growth. “If you look at Vermont, they have one large IBM facility, and that one company can really affect Vermont’s exports in a positive or negative way. But in Rhode Island that’s not the case. We have a more diverse industry base,” she said. Transportation equipment is Rhode Island’s third largest export. There are about 50 companies in the state specializing in the field such as Electric Boat Corporation, New England Boatworks, Textron and Senesco. The places to which Rhode Island ships follow the pattern of export practiced throughout the country.. “Canada is by far the U.S.’s biggest trading partner,” said Mezei. “It dwarfs other relationships. Every day of every year $1.3 billion goes across the border from the U.S. to Canada, which is a huge trading relationship.” Mezei said proximity and shared economic and political systems are some of the reasons that Canada and the U.S. do so much trade. The proximity factor is especially useful for Rhode Island. Exports from Rhode Island to Canada increased 2.8 percent to $1.3 billion in 2000, an improvement after a 3.3 percent decline in 1999. The Massachusetts Institute for Social and Economic Research found that electronic and electronic equipment is the leading export by a small margin over scrap and waste. Nearly equal amounts of primary metals, industrial machinery and computers, and chemicals are the next largest exports. The report also found that the rate of Rhode Island export growth was even with national export growth to Canada over the decade. Rhode Island’s leading export to Mexico, the second largest export destination for the state at $119 million, is from the primary metals industry. The MISER report showed that increases in Rhode Island exports to Mexico lagged behind national increases throughout most of the decade but nearly equaled U.S. growth by 1999. Japan was the third largest export destination from Rhode Island by year-end 2000, although the shipments fell 11.6 percent to $70 million. Over the past decade Rhode Island surpassed the U.S. growth in exports to Japan over the decade. The main exports included machinery, chemicals and computers. Mezei said the top 10 export destinations often shift around within the list. “It’s always either Japan, Mexico or the United Kingdom near the top,” she said. “They all stay in the top 10, but shift positions.”
Rhode Island's Market Has Changed. Developers, Builders, Investors and Sellers Must Change With It.
R.I. exports match N.E., lag behind nation
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