Subscribe to our free, weekly email newsletter!


California exports take a slight drop

Probably the best news lately is that our single largest export market, Mexico, remains on a more stable economic footing
By Patrick Burnson, Executive Editor
June 11, 2012

As the Agricultural Transportation Coalition prepares to convene in San Francisco for their annual convention next week, comes news that California ag exports are in decline.

According to an analysis by Beacon Economics, California’s exports of manufactured goods in April nudged up a nominal 0.6 percent from $8.44 billion to $8.49 billion, while non-manufactured exports (chiefly raw materials and agricultural products) fell by 3.7 percent from $1.65 billion to $1.59 billion. Re-exports, meanwhile, rose by 5.5 percent from $2.79 billion to $2.95 billion.

At this time last year, Walter Kemmsies, chief economist for transportation engineering company Moffatt & Nichol, told the AgTC that “agriculture was the fastest-growing segment of the next business cycle.”

This projection was not challenged by Beacon, however.

“If anything is remarkable it’s that the April numbers were not worse, ” said Beacon economist, Jock O’Connell, “It’s hardly a secret that Europe is in grave distress, that China’s slowing down, and that major economies like Brazil and India have begun going wobbly.”

Compounding the challenge for the estimated 60,000 California companies that ship goods to customers around world, the crisis of the euro has driven up the value of the dollar, effectively making U.S. products more expensive for foreign buyers.

Beacon Economics’ Founding Partner Christopher Thornberg said that with more uncertainty abroad, foreign capital tends to flow to the U.S., as a safe haven, thereby increasing the value of the dollar and making U.S. exports less competitive on global markets.

“While this trend is not expected to be permanent, the dollar could rise more vis-a-vis the euro until their banking issues are dealt with,” said Thornberg. “This could make it somewhat difficult to maintain the pace of export growth that we’ve enjoyed thus far in the recovery.”

The news is not unrelentingly dismal, however.

“Probably the best news lately is that our single largest export market, Mexico, remains on a more stable economic footing,” O’Connell said, noting that Mexico’s central bank had just last month updated the country’s economic growth outlook for 2012 to a range of 3.25 percent to 4.25 percent.

About the Author

image
Patrick Burnson
Executive Editor

Patrick Burnson is executive editor for Logistics Management and Supply Chain Management Review magazines and web sites. Patrick is a widely-published writer and editor who has spent most of his career covering international trade, global logistics, and supply chain management. He lives and works in San Francisco, providing readers with a Pacific Rim perspective on industry trends and forecasts. You can reach him directly at .(JavaScript must be enabled to view this email address).


Subscribe to Logistics Management magazine

Subscribe today. It's FREE!
Get timely insider information that you can use to better manage your
entire logistics operation.
Start your FREE subscription today!

Recent Entries

Information abounds about the growing trend of electric lift trucks and the advantages and disadvantages of the electric solution. Amid all of the information from so many sources, what's the truth about electric lift trucks? This complimentary white paper breaks through the clutter to review why electric lift trucks are gaining in popularity and also to review their challenges, as well as their economic and environmental benefits.

Three weeks after initiating a coordinated series of slowdowns that have mired the major West Coast ports of Tacoma, Seattle, Oakland, Los Angeles and Long Beach, the ILWU has pushed away from the bargaining table.

DHL has released the third edition of its Global Connectedness Index (GCI), a detailed analysis of the state of globalization around the world.

The truck driver shortage is worsening, threatening the trucking industry’s ability to serve the nation’s supply chains. The shortage will almost certainly cause fleets’ costs to increase and shippers’ rate to continue to rise.

The Agriculture Transportation Coalition has asked the Administration to bring in a federal mediator to help resolve the negotiations, and if a strike or lockout occurs, the AgTC advocates the rarely-invoked Taft-Hartley Act.

Article Topics

News · Global · Transportation · Exports · All topics

Comments

Post a comment
Commenting is not available in this channel entry.


© Copyright 2013 Peerless Media LLC, a division of EH Publishing, Inc • 111 Speen Street, Ste 200, Framingham, MA 01701 USA