WorldCity Business Magazine

(4) Miami Trade 2007: 3rd Quarter Report – PC Power

by WC

Over the last five years, South Florida has risen to the top nationally in computer exports and landline phone exports but fallen in jet imports.

Five years ago, San Francisco led the nation in the export of computers. Today, the Miami Customs district is No. 1. In fact, a lot has changed in the South Florida international trade
landscape over the last five years, when examining the most recent statistics released by the U.S. Census department.

Five years ago, Venezuela was the No. 6-ranked trade partner with South Florida. Today, it is No. 2.

Five years ago, South Florida was the No. 2 importer of aircraft. Today, it is No. 5.

Five years ago, South Florida ranked No. 9 in the import value of refined petroleum products. Through September of this year, the most recent statistics available, South Florida now ranks No. 6.

Five years ago, San Francisco led the nation in the export of landline phone equipment. Today, Miami does. Fast on Miamis heels are Dallas, which had ranked No. 9 and is now No. 2 as well
as Houston, which was No. 11 and is now No. 3.

Five years ago, South Floridas hold on Latin America trade was a lock. Today, it is still the dominant gateway to the nations of Central and South America, just less so.

Miamis trade with its top trade partner, Brazil, is up 37.4 percent since 2002 but Brazils total trade with the United States is up 61.5 percent. While Venezuelas trade with South Florida has risen 147.1 percent to move to the second ranking, it has risen an almost identical 145.6 percent with the nation as a whole. Chile, which has a free trade agreement with the U.S., has seen its Miami trade increase 84.2 percent over the last five years but its U.S. trade increase 153.1 in that
same time period.

Amidst these changes, South Floridas overall trade continues to increase at roughly the national rate. Through the first nine months of the year, South Floridas trade stood at $57.8 billion, more than the entire year of 2004, a 58.1 percent increase since 2002 but only an 8.7 percent increase over the same nine-month period of 2006. U.S. trade is growing even more slowly since last year, up 6.4 percent.

South Floridas trade surplus stood at $8.2 billion, one of the few in the nation and second only to Seattle, which had an $11.5 billion surplus through the first nine months of the year. For both Customs districts, that is nearly double the surplus for the same period of 2006. Seattles surplus is due to Boeings foreign shipments; South Floridas is due to its key role with most Latin American nations.

Five years ago, South Floridas trade surplus stood at $3.1 billion through the first nine months of the year. The surplus for the Miami Customs district, which runs from Palm Beach in the north to the Florida Keys in the south, is growing because of the continued and essentially unprecedented multi-year strength and stability of the leading Latin American economies as well as the weakness of the U.S. dollar.

That combination means more affordable exports from Miami of many commodities, including landline phone equipment, now the No. 3-ranked export from South Florida. Compared to the first nine months of 2006, those exports have risen 189.4 percent, including 169 percent to Brazil, 1,396 percent to Ecuador, 352 percent to Peru and 810 percent to El Salvador.

Computer exports, meanwhile, are up 30 percent in 2007 alone, led by a 112 percent increase to Brazil, South Floridas No. 1 overall trade partner, 48.2 percent to oil-rich Venezuela, 41.7 percent to Colombia and 38.7 percent to Argentina.

On the import side, Miami has failed to keep pace in aircraft. In 2002, it was second only to St. Albans, Vermont, which is where the Canadian regional jet manufacturer Bombardier clears Customs; the Brazilian manufacturer Embraer clear in Miami.

While St. Albans remains the No. 1-ranked Customs district, South Florida has fallen behind New Orleans, Portland, Maine, and Minneapolis.

There are other influences in the South Florida trade picture beyond Latin America, of course. That includes China but it also includes France and Germany.

China was South Floridas No. 10-ranked trade partner in 2002, becoming the first Asian nation to crack to the Top 10 when it did so that year. It was No. 4 in imports. Through the first nine months of 2007, it is the No. 5 overall partner and No. 1 for imports.

South Floridas trade with France is up sharply also, led by imports from the European nation, which topped $1 billion through just nine months of 2007, a first. Overall, Miami two-way trade with France is up 38 percent year over year and 146 percent since 2002. Frances trade with the United States is up at a fraction of those rates 12.2 percent when compared to 2006 and 31 percent when compared to the first nine months of 2002.

Germany has shown similar strength with South Florida, with two-way trade increasing 27.4 percent since the first nine months of 2006 and 127.9 since 2002. On the national level, Germanys trade has increased 10.7 percent since 2006 and 49.6 percent since 2002.

Top exports: our competitors, our markets

A closer look at Miami’s top three exports reveals significant changes since 2002

The chart to the right shows the South Florida Customs districts Top 25 export markets through September, with their rank for the same period in 2002 and the five-year growth in percentage. Argentina is overwhelmingly the fastest-growing, up almost 350 percent and clearly on the path to recovering from the tremendous losses suffered during its debilitating financial crisis earlier this decade.

The charts below and on Page 26 take a closer look at South Floridas three top exports in 2007, reveal the leading Customs districts for those exports and then show the top five markets for South Floridas exports of that particular commodity. For example, South Floridas leading export is computers, and it also leads the nation in those exports. In 2002, San Francisco led the nation. Brazil is Miamis leading export destination, with sales up more than 112 percent year over year.

Top imports: our competiros, our markets

A closer look at Miami’s top three imports reveals one up, one unchanged and one down

As the charts below and on Page 30 show, South Florida is
now the sixth-largest importer of refined petroleum
products, up from No. 9 in 2002, but it has slipped in aircraft
from No. 2 to No. 5 over the same five-year period. In
sweater imports, South Florida remains third behind Los Angeles and New York. Over the same five-year stretch, Chinas ascent to the top importer from No. 4 is easy to notice but imports from France, Venezuela, the Netherlands and Mexico have all grown at a faster rate. The United Kingdom and South Korea are not far behind. Imports from Brazil, Costa Rica, Guatemala and El Salvador have declined since 2002.