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Export spree boosts Miami trade

August 2nd, 2006

*Export spree boosts Miami trade *

Tech products, aviation equipment, construction machinery and consumer goods lead South Florida’s export flurry.

The Miami Customs District exported more than $34 billion in goods last year, principally to Latin America, as South Florida enjoyed a robust year of international trade.

Export spikes directed at key trade partners, notably Venezuela and Argentina, handed the Miami Customs District the largest trade surplus of any major Customs district: $2.2 billion. Only Anchorage, Alaska, had a bigger positive trade balance and it came as a result of the rising global price of oil, a key export from that district.

The trade imbalance with Venezuela alone helped South Florida add nearly $1 billion to its trade coffers. A steadily growing economy and greater access to credit have boosted consumer confidence in that South American country. As a result, the demand for goods like cell phone components and computers leaped in 2005. At the same time, a flood of government infrastructure projects created the need for more construction-related equipment and South Florida happily worked to supply it.

Venezuela ’s energetic construction sector the country’s single-biggest employer expanded 20 percent in 2005, according to the country’s construction chamber. Total construction activity was valued $9 billion last year. Among public-sector undertakings, Venezuelan President Hugo Ch vez had vowed to build new homes, roadways, dams and subway systems in the cities of Valencia and Maracaibo.

Among all products exported from South Florida to all countries last year, self-propelled heavy construction machinery was the biggest gainer, rising nearly 83 percent to total $247 million. The jump nudged construction equipment into the list of top 20 exports.

Overall, South Florida exports to Venezuela its second most important trade partner grew 31.7 percent.

Computers and computer parts traditionally lead Miami’s export roster and 2005 was no exception. The $2.2 billion in computer exports reflected a 33 percent increase from 2004 while computer parts rose 17 percent to close the year worth $2.1 billion. Computers and computer parts remained at the top of the list in WorldCity’s analysis of first quarter 2006 trade results although they swapped positions.

South Florida shipped nearly $694 million-worth of computer parts in the first three months of the year, a nearly 52 percent jump from the same period in 2005. Brazil alone accounted for nearly $248 million of the computer part shipments, a threefold increase from last year. But it was Costa Rica that saw computer part shipments skyrocket. South Florida sends nearly $84 million in shipments to Costa Rica in January, February and March 2005. That compared with less than $15 million-worth a year earlier.

Venezuela continued as a strong market, and Colombia joined it. South Florida sent $67 million in computer parts to Venezuela, up from $55.5 million, and nearly $65 million to Colombia, an increase from $37.5 million in early 2005.

When it came to computers in the first quarter of 2006, their value jumped 25 percent to nearly $607 million.

In 2005, computers were Miami’s top commodity bound for Argentina one of the fastest growing destinations for South Florida exports. Those computer shipments jumped nearly 54 percent from a year earlier to total $170 million. In addition, exports of computer parts climbed almost 60 percent to $146.5 million. Argentina was just a hair behind Venezuela when it came to the pace of South Florida’s export growth to the South American nation. It gained 31.6 percent.

Argentina ’s imports were not atypical in a year in which South Florida air and sea cargo operators were busy shipping technology and value-added products, including computer chips, aircraft parts and electric equipment for line telephony.

The Miami Customs District posted export gains with every one of its Top 10

trade partners. Brazil, the most important trade partner for South Florida overall, as well as the biggest recipient of South Florida exports, as measured by value, received $5.6 billion in goods from Miami in 2005, an increase of 11.8 percent.

In addition to Venezuela, other countries among the Top 10 trade partners also saw double-digit gains. Exports to Colombia rose more than 21.2 percent to reach $2.2 billion while those to Chile rose 27.9 percent, ending 2005 at $1.4 billion.

Exports to the Caribbean also flourished. South Florida shipped 86 percent more cargo to the Turks and Caicos, 58 percent more to the Cayman Islands and 51 percent more to the Bahamas.

The 2005 results were no flash in the pan. First quarter 2006 trade results pointed to continuing export growth. In the first three months of 2006, the Miami Customs District exported $9.3 billion-worth of goods. The leading destination was Brazil at $1.5 billion, up 25 percent from the same period last year. Venezuela followed at $856 million, a gain of 24 percent, and Costa Rica was the third, taking in nearly $634 million in goods a 42 percent hike.

South Florida’s exports to China grew by the greatest percentage of any Miami’s top trade partners rising more than 90 percent but they were still small when it came to value: South Florida shipped only $179 million in cargo to China. By contrast, South Florida imported $3.4 billion in goods from China.