Manufacturing exports on the rise

by Mike Doyle, Iowa Department of Economic Development

The first shift is in the breakdown of products exported. As recently as the late 1980s, lowa" driven by raw agricultu export of manufactured the commodity exports. This is not a shill away from agricultural products but a shift to processed or value-added agricultural products. An excellent example of this shift can be seen in the Japanese market. Instead of buying live animals, the Japanese now purchase processed meat products. Indeed, much of Japan's $744 million of manufactured and processed product imports from lowa in 1996 were meat-related products.

The second fundamental shift is in the decreasing pereentage of lowa exports destined for Canada. Even though exports to Canada continue at an annualized double-digit pace, the rest of the world, especially the newly maturing economies of Asia and South America, is outpacing the growth with our northern neighbor. Countries such as Australia, Mexico, Argentina, Malaysia, and Brazil are becoming significant trading partners for lowa companies. These five countries, when combined, account for over 10 percent of lowa's 1996 exports of manufactured goods and were responsible for 16 percent of lowa's export growth from 1995 to 1996.

The International Division of the lowa Department of Economic Development performs many functions to strengthen lowa's presence in the international marketplace. Offices in Des Moines, Tokyo, Japan, and Frankfurt, Germany work together to promote lowa products and services overseas, attract foreign investment into the state, and educate lowa business people on topics related to doing business overseas. The IDED also has contractual relationships in Hong Kong, Mexico City, and Seoul, South Korea. Staff are available in each of the offices to counsel and assist lowa business people.

The primary goal of the International Division of the Iowa Department of Economic Development is to promote Iowa and assist lowa companies in promoting their products overseas. All Iowa companies are encouraged to take advantage of the Division's services and programs. For more information, contact the International Division at 515-242-4742 or by fax at 515-242-4918.

CIRAS News, Vol. 31, No. 4, Summer1997

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