Purdue News
Purdue News
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October 6, 2000 Expert says Indiana exports benefit HoosiersWEST LAFAYETTE, Ind. – Each year Indiana exports more and more products to foreign markets, a trend that provides Hoosiers many benefits, says a Purdue University agricultural economist. Last year, Indiana's exports grew to almost $14 billion, according to Indiana Department of Commerce figures. Export sales represent more than 8 percent of the almost $162 billion of the state's industrial output. Philip Paarlberg, Purdue Extension international trade specialist, says increasing export trade offers several benefits to the Hoosier economy. "Statistics show that export industries tend to have higher paying jobs," he says. "And, in principle, a state with a good share of exports should be better able to survive fluctuations in the U.S. economy." Charles Johnson, Indiana trade specialist for the Indiana Department of Commerce, says, "We have experienced eleven consecutive years of export sales growth, from about $4.7 billion to almost $14 billion. Indiana is the 15th largest export state, and we are growing." Johnson says there has been a very concerted effort to support Indiana manufacturers who are new to exports. For example, the Indiana Department of Commerce provides export assistance to Indiana manufacturers at no charge. Interested parties should contact the International Trade Division at (317) 233-3762. Future growth in exports will be enhanced if communities take stock of their natural advantages. Paarlberg suggests taking an inventory of what the community does best. "A community should look at its resources, such as production capabilities, labor availability, transportation and education. Then they can look for natural ways – ways that do not need to be subsidized – to enhance export capabilities," he says. Paarlberg notes that Indiana is certainly great at production. It is a leading agricultural state and it is one of the most manufacturing-intense states in the nation. And, because of the Great Lakes, Ohio River and a decent rail system, the state has good access to international markets, he says. "Our airport capacity within the state is limited, but we have excellent access to Chicago, Cincinnati, Detroit and Louisville airports," he adds. On the need-to-improve side, Paarlberg says, "If Indiana wants to be in the global market, we need to ask if we have the right infrastructure, specifically roads, and if we have a properly trained and educated workforce. That includes the future workforce. How Indiana high-school students perform nationally and internationally will have an impact on Indiana's ability to compete." Paarlberg warns that the changing economy will make education more and more important. "The days a student could get a 'C' in high school and then go out and get a great job are gone," he says. But, he says he holds hope because of recent progress. "The long-term process of upgrading our educational system is encouraging," he says. He suggests that community leaders who want to improve their abilities to tap into the international market should consider the basics. "Many people who want to help their communities participate in export markets are turning to business colleges and universities for basic business classes. These help them understand the fundamentals and learn ways to conquer the obstacles of foreign trade," he says. Paarlberg also says the emphasis should be on seeking markets, not just exports. "If you have a natural market, whether it is in Chicago or Indonesia, then develop it. But realize the barriers for international trade make it much more difficult to place a product in Indonesia than Chicago," he says. While exports have grown in recent years due to state programs and growth in the world and local economies, exports are not new to Indiana, according to Shawn Reynolds of the Indiana University International Resource Center. "The first Indiana export was ginseng, which was sold to China around the 1820s," he says. But today, Indiana's leading foreign trade partners are closer to home. Canada gobbles up 54 percent of Indiana's exports, next are Mexico and the United Kingdom with 6 percent each. After that, Japan, France, Germany, Netherlands, Brazil, Australia and Italy round out the top ten foreign buyers of Hoosier products. Sources: Philip Paarlberg, (765) 494-4251 Charles Johnson, (812) 349-3434 Writer: Steve Cain, (765) 494-8410 Other sources: Shawn Reynolds, (812) 856-5861 Purdue News Service: (765) 494-2096; purduenews@purdue.edu
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