American Exports

I received this from Agricel and Jack Schultz at Boomtown. Their glass is usually half full and on this wet, dreary, cold day. That is a good thing.His point is: there are still things Americans are good at, there are opportunities to excel and ship products around the world. Competition is not a bad thing, you need to play to your strengths and against your weaknesses. That is what we are attempting to do in Stokes County. To build an economy based on our positive attributes, of which there are many: The natural beauty of the area, the river, a vibrant farming community, our location (near many of the population centers of NC and the east coast) and our determination to not be left behind in a changing world. Hope you enjoy this blog:

America: Export Nation?by: Dave Forest

There's some interesting data emerging on the world trade situation. One of the surprising things is the U.S. export market is actually fairing reasonably well. People often pan America for having no exports. It's a common complaint the U.S. doesn't produce anything the rest of the world wants. This is untrue. These critics latch onto the fact the U.S. produces almost no consumer goods. America doesn't make t-shirts and CD players. It's just not cost effective for these low-end products. American export value peaked in early 2007 at just under $340 billion quarterly. Of that, only $40 billion came from consumer products. What America does produce is capital goods. Engines, boilers and factory components. High-value products that are used by developing countries to make lower-value things. America gets 40% of its export revenue here. And even with the global crisis, the capital goods market has remained relatively firm. Exports peaked in Q2 2008 at $118 billion for the quarter. In the first quarter of 2009, as the crisis broke, they fell to $95 billion. But capital exports held fast at these levels through the second and third quarters of 2009. We'll get the fourth quarter numbers soon, and see if the trend keeps up. Although this is a 20% decline, it's quite shallow in the big scheme of things. Exports today are at the same level as in 2006. Still 35% above 2003 levels. Signaling that high-value products might be a good place to be. There are still factories being built globally. And there aren't many places builders can get the components. America may hold a strong niche. One reason not to write the U.S. off in the economic order. Here's to doing your thing. To sign up for Dave Forest's ezine, visit here.