At sporting events, people often hold up sponge hands with one finger pointing upward indicating that a particular team is Number One! In some cases, it’s only wishful thinking; in other situations it’s a validation of fact.
From 1845 until 1959, when Alaska joined the Union, Texas was the number one state in the US in terms of geographic size. Even though we no longer hold that title, there are still numerous areas in which Texas is the nation’s leader.
Right off the bat, you can probably think of several. Texas has the greatest amount of proven crude oil reserves, produces more natural gas than any other state, and is the nation’s largest wind energy generator.
And how about business expansions and relocations? Texas won the Governor’s Cup from Site Selection magazine in both 2005 and 2004 for being the top state in the number of new projects resulting in capital investment of at least $1 million.
Texas also has the most center-lane highway miles and ranks best in the nation in tort reform. There are many, many others I could mention, but let me get to the one about which this column is specifically focused—exports.
In 2002, Texas became the largest exporter in the US, surpassing California, the perennial leader up until that time. In 2002, Texas’ exports of $95.40 billion were 3.45% more than California. Every year since, the gap has widened.
During the first seven months of this year, Texas exports, which accounted for 14.40% of the total amount of US international trade, were 15.29% more than goods and services shipped from California.
In addition to being the top exporting state, Texas contains the nation’s busiest maritime international trade port (Houston) and the most active inland port (Laredo). Texas is also the nation’s largest exporter to Mexico (41.57% of the US total so far this year).
Texas exports to 218 foreign nations, and Mexico has been the Lone Star State’s largest trading partner for many years. Commerce with our southern neighbor continues to increase.
Data for the first two quarters of this year indicates that Mexico received 38.33% of Texas total exports. This reflects 14.56% more than that sent to Mexico for the same six-month period last year. The value of Texas products and services exported to Mexico thus far this year exceeds the total of the state’s shipments to the next top 13 nations.
About 7.9% of total private-sector employment in Texas is directly related to exports. That’s about one out of every 13 jobs in the state. Approximately 23% of all manufacturing jobs are associated with the exporting of goods. Some 28,300 companies ship products to foreign countries through Texas locations, and about 90% of these enterprises are small to medium-sized with less than 500 workers. About two-thirds of all new job creation in the state is tied in some way to international trade.
Texas’ top 10 exporting sectors in 2006 are computer and electronic products, chemicals, non-electric machinery, transportation equipment, petroleum and coal products, electrical equipment, primary metal manufacturing, fabricated metal products, agricultural products, and plastics and rubber products.
The Lone Star State’s second quarter export growth was 3.7% above the first and marked the third successive quarter of export expansion. As Texas continues to sustain the forward momentum of its international trade, it doesn’t appear that the Lone Star State will be relinquishing the export leadership title anytime soon. In an increasingly global economy, that is a very good thing.