Source: http://worldcityweb.com/home/MIA/publications/magazine/5/626/

Booting up

by Mary Dempsey

Miami has tapped into the global computer craze, shipping more than $1 billion-worth of computers and components in the first six months of 2005. The tech upturn helped South Florida post more than $16 billion in exports in the first six months of the year, a 12.4 percent jump from the same period in 2004.

Computers and computer parts continue to dominate exports, with total value of the two combined reaching $2 billion in the first six months of 2005. Computer exports were up 34 percent for the first half of the year, to push it ahead of computer parts exports, which remained flat. Cell phone transmission systems and electronic integrated systems came in third and fourth, respectively, among exports.

South Florida’s tech bounty, an additional $260 million in computer- related shipments from January to June 2005 when compared to the first six months of last year, reflects its ability to take advantage of a global trend. Gartner, a technology industry research company, predicts that worldwide PC shipments will grow 12.7 percent to total nearly 207 million units this year. The Boston-based company says the upswing is buoyed by strong mobile PC shipments. Falling prices on laptops and growing access to wireless Internet are making computers more attractive around the world and that includes the region with which South Florida does the bulk of its trade: Latin America.

“In general, year-over-year growth rates of laptops are actually higher in Latin America than the United States. That is because the number of laptops already in the region is relatively small,” says Mikako Kitagawa, a principal analyst at Gartner.

While South Florida was shipping out more computers, it was also bringing in more than it did in the first half of 2005. Computer imports went up 31 percent to make them the 10th most valuable import. Kitagawa says U.S. computer demand is extremely vibrant right now.

Elsewhere, exports of electric equipment for line telephony also went up, as did aircraft parts. South Florida’s No. 26 export, heavy construction machinery, also grew, jumping 88 percent to value $104 million. Last year, construction machinery sat in the No. 49 position. At the same time, tractor exports also swelled, by 91%, to reach nearly $41 million and make tractors the 66th most important export. In 2004, they were in the No. 121 spot.

But it was artwork that posted the biggest jump up the list of Miami’s top exports. In June of 2004, artwork was ranked as Miami’s 117th export product. By June of this year, it has jumped into the 20th spot, worth nearly $117 million. That’s boost of 421 percent.

In recent years, Miami has won an international reputation as a fledging art center. Edgy exhibits at art museums and galleries in South Florida, the migration of wealthy art collectors and artists who want to retire in sunnier climes and, perhaps most importantly, the annual Art Basel extravaganza has helped foster the reputation.

During Art Basel, art aficionados from around the world descend on Miami for the international art show. Last year, more than 180 galleries and more than 1,000 artists from around the world took part in the juried event. During Art Basel 2005, slated for December, the works of some 2,000 artists will be showcased.

The strong improvements in export traffic pushed Miami to a $1.1 billion trade surplus, but economic analysts say the momentum may not continue beyond 2005. “We may be reaching the peak for the growth side of exports [from Miami],” says Tony Villamil, CEO of Washington Economics Group, an economics consulting company in Coral Gables. “But for the rest of the year, we’ll continue to grow, perhaps at a slower pace.”