Trade Creates Jobs for Oregon

Transcription

1 Trade Creates Jobs for Oregon Creating and preserving quality U.S. jobs is a goal shared by all Americans. With 95 percent of the world s consumers living outside of the United States, it makes sense for small and large businesses to partner to build stronger trade ties with countries seeking U.S. goods and services. Trade creates jobs for Oregon. Export growth increases jobs by generating new business for Oregon s manufacturers, services providers and farmers. Imports support jobs and keep costs low, helping Oregon businesses compete and saving Oregon families real dollars at the cash register. Foreign investment in Oregon creates good jobs across a range of sectors. 1 IN 5 OREGON JOBS DEPENDS ON TRADE Oregon workers need trade to maintain and create jobs. Today, 469,200 jobs in Oregon depend on trade. In 2008, 20.1 percent of jobs in Oregon depended on trade, up from 10.5 percent in Oregon s trade-related employment grew more than twice as fast as total employment from 2004 to Oregon Jobs Tied to Trade, 2008 Wholesale & Retail Trade 78,400 Prof., Sci., & Tech. Services 21,500 Finance & Insurance 18,700 Transp. & Warehousing 17,800 Information 12,800 Manufacturing 2,600 Small and Large Employers Partner to Export Small and medium-sized enterprises (SME) and workers in Oregon supply goods and services to large U.S. companies in and out of the State. Those bigger companies use the SME goods and services to make other products and services that they, in turn, export to customers around the world. Trade through Oregon s international ports has a significant impact on the State economy. The Port of Portland alone supports more than 30,000 direct and indirect jobs, $1.7 billion in personal income, $4.0 billion in business revenues, $435 million in local purchases, and $172 million in local and state taxes. Jobs in exporting plants pay on average up to 18 percent more than similar jobs in nonexporting plants. Newly exporting firms increase employment almost four times faster than non-exporting firms.

2 OREGON S INDUSTRIES, SMALL BUSINESSES AND FARMERS GROW WITH EXPORTS According to the U.S. Department of Commerce, Oregon ranked 20 th in the United States with total exports valued at $19.4 billion in Computers and electronics was Oregon s leading export category in 2008 accounting for 41.2 percent of total exports. One of the fastest growing export categories for Oregon is chemicals, increasing at an average annual rate of 26.6 percent since In 2008, Oregon companies sold their products in nearly 200 foreign markets. The top export market is Canada ($2.8 billion). Other leading markets include China ($2.5 billion) and the Japan ($2.0 billion). Malaysia is one of Oregon s fastest growing trading partners. In 2008, Oregon companies exported $2.0 billion worth of goods to Malaysia, an increase of 244 percent since In 2008, exports accounted for approximately 12.0 percent of Oregon s state gross domestic product (state GDP). Since 2002, exports have increased more than twice as fast as state GDP. Services exports are also important to Oregon, including port services, education of foreign students at Oregon colleges and universities, and spending by foreign visitors to tourist destinations in Oregon, including Crater Lake National Park, Mount Hood, and Portland. Services companies employ 1.6 million workers in Oregon. In 2008, 370,500 Oregon services jobs depended on trade. Oregon is a leading exporter of agricultural products. The State is the largest exporter of seeds in the United States, accounting for more than 23 percent of total U.S. seeds exports. Oregon s other important export products include wheat, tree nuts, fruits, vegetables and fruit and vegetable products. Key markets are Japan, Korea, the Philippines, Taiwan, and Canada. These exports directly benefit Oregon s farmers in regions like Hood River Valley and Willamette Valley.

3 OREGON S SMALL AND MEDIUM BUSINESSES PARTNER WITH LARGE BUSINESSES TO EXPORT Exports particularly benefit workers at Oregon s small- and mid-size companies. In 2007, 4, percent of Oregon s exporting companies were small- or mid-sized companies. Larger Oregon companies are also important exporters. For the United States generally, half of U.S. exports are generated by U.S. multinationals. Small and medium-sized Oregon companies also indirectly export when they supply goods and services to larger Oregon exporters. Every job at an Oregon worldwide company supports nearly two others at companies that are part of its supply chain. Leading Oregon Exporters Company Products Foreign Markets Carestream Health Inc. (White City) Health imaging products China, Brazil, Japan, Germany Columbia Grain International (Portland) Peas, lentils, wheat Korea, Sri Lanka, China Daimler Trucks, N. America (Portland) Freightliner trucks Australia, South Africa, Chile Evraz Inc. (Portland) Steel plates, coils China, India Vietnam North Pacific Group (Portland) Pine logs, lumber Peru, Panama Pacific Seafood Group (Clackamas) Frozen shrimp, sardines, hake China, Thailand Paper Products (Portland) Milk carton paper Taiwan, UK, China, Thailand Tilling Timber (Portland) Laminated veneer lumber Australia Vestas American Wind Tech. (Portland) Double stacked frames Taiwan, China, Denmark Zen NOH Grain Corp. (Portland) Barley, wheat, better pulp pellets Japan, Korea

4 MORE OF A GOOD THING FOR OREGON TRADE AGREEMENTS LEVEL THE PLAYING FIELD The United States has some of the lowest trade barriers in the world. Trade agreements level the playing field by lowering other nations trade barriers and opening up foreign markets to U.S. exports. Oregon has increased its exports to partner countries following the implementation of the U.S. bilateral and regional free trade agreements (FTAs). Exports to Morocco experienced the strongest growth, increasing by 395 percent since the FTA s implementation. Oregon s exports to FTA partners have increased by 110 percent since 2002, faster Oregon s exports to the world, which grew by 92 percent. Since the North American Free Trade Agreement went into effect in 1994, Oregon s exports to Canada have increased $1.9 billion (216 percent), while exports to Mexico have increased $626 million (518 percent). Oregon s exports of computers and electronics, the State s top export category, to FTA partners have increased by 121 percent since 2002, nearly twice as fast as Oregon s computers and electronics exports to the world. Since the passage of the Dominican Republic-Central America Free Trade Agreement (DR-CAFTA), exports of chemicals, one Oregon s fastest-growing export categories, to Nicaragua have increased by 627 percent, more than four times faster than chemicals exports to the world. The United States enjoys a trade surplus in manufactured goods with its FTA partners.* U.S. Trade Balance, 2008 Services Agricultural Products Manufactured Goods: 15 FTA Partners Oil Products Manufactured Goods: Other Countries $ billions * State-specific data are not available for imports, so this chart cannot be prepared for Oregon

5 FOREIGN INVESTMENT IN OREGON CREATES JOBS Foreign-owned companies invest significant amounts of capital to open or expand facilities in Oregon every year. These companies employ 44,000 workers, about 3 percent of all Oregon employees in the private sector. Foreign-owned manufacturing accounts for 11,600 jobs, representing nearly 6 percent of all manufacturing jobs in Oregon. U.S. subsidiaries of foreign companies pay an average compensation of $68,317 per year, 32 percent higher than U.S. companies. Selected Multinational Corporations Employing Workers in Oregon Company Industry Country Bridgestone Americas Rubber Products Japan Deutsche Telekom Telecommunications Germany GlaxoSmithKline Pharmaceuticals United Kingdom HSBC Financial Services United Kingdom Saint-Gobain Glass/Structural Materials France Siemens Machinery and Electrical Equipment Germany Smart & Final Inc. Retailing France Sodexho Food/Facilities Management France Toyota Transportation Equipment Japan OREGON COMPANIES AND WORKERS USE IMPORTS TO STAY COMPETITVE In 2008, 58.5 percent of the products we imported were used by U.S. workers to manufacture goods in the United States. Lower cost inputs keep U.S. manufacturing competitive in international markets. Imports frequently contain components (like cotton or semiconductors) and services (like design) sourced from U.S. companies and farmers, including companies and farmers in Oregon. Services, especially transportation from Oregon s ports, finance and insurance, marketing and legal services, are needed to bring imported goods to American manufacturers and households. These importing-related services industries are vital to Oregon s growth, and account for 35.4 percent of state GDP, nearly twice as much as manufacturing.

6 EXPORTS AND IMPORTS HELP OREGON FAMILIES ENJOY A HIGHER STANDARD OF LIVING Exports and imports support family incomes. Jobs in exporting plants pay on average up to 18 percent more than similar jobs in nonexporting plants. Imports help keep prices for Oregon families down while increasing their choices for goods and services. Prices for imported consumer goods tend to drop year after year. Imports Keep Inflation Low ( ) Price Change Toys -45% Clothing -10% Household Appliances -9% Footwear -3% JOBS Trade and investment liberalization policies are worth over $10,000 per year to an average Oregon family of four. SOURCES Laura Baughman and Joseph Francois, Trade Partnership Worldwide, LLC ( Port of Portland ( U.S. Department of Labor ( U.S. Department of Commerce ( ( ( EXPORTS U.S. Department of Agriculture ( U.S. Department of Commerce ( ( ( ( Andrew B. Bernard, J. Bradford Jensen, and Peter K. Schott ( PIERS Trade Intelligence database ( FOREIGN INVESTMENT Organization for International Investment ( IMPORTS U.S. Department of Labor ( U.S. Department of Commerce ( STANDARD OF LIVING Council of Economic Advisers ( U.S. Department of Labor ( U.S. Department of Commerce ( TRADE LIBERALIZATION U.S. Department of Commerce ( Contact: David Thomas Director, Public Policy Business Roundtable dthomas@businessroundtable.org January 2010