Vehicle Shipments Overseas Sizzle

Alabama Exports Decline Slightly in 2015

April 2016
By David Zaslawsky 
Photography by Robert Fouts  

The Alabama Department of Commerce has scheduled a trade mission to Mexico, the third-largest importer of state products.

Exports to Mexico were nearly $2.9 billion in 2015, which was about 24 percent more than 2014. In 2013, exports to Mexico were about $2.2 billion. Mexico is just one of four countries which imported more than $1 billion worth of goods in 2015. Canada remains the state’s largest export market at $4 billion; China is second at $3.2 billion and Germany is fourth at $2.5 billion.

That trade mission is Sept. 5-10 and also includes a stop in Chile, which ranks 24th on the list of the state’s top exporting markets. Exports to Chile increased 3.1 percent last year to $95.2 million. Vehicle shipments to Chile jumped 46 percent last year.

Another trade mission was scheduled in March to Spain and Morocco. Spain was the state’s No. 25 export market last year at $95.1 million while Morocco was No. 78 at $9.4 million.

Alabama will have a presence at the June 6-9 Bio International in San Francisco.

“The trade and business development missions we undertake each year are a key component of our international strategy,” Hilda Lockhart, director of the Commerce Department’s International Trade Office, said in a statement. “For Alabama companies, the opportunities far outweigh the challenges when you have our agency along with the Export Alabama Alliance providing assistance in every nuance of international trade.”

The state’s exports were flat last year – declining 0.4 percent to about $19.3 billion. The difference was about $70.1 million and that was attributed to a slowdown in China and a slump in coal shipments. Exports to China fell 4.7 percent from 2014 to 2015. That was a $200 million decline.

Shipments of minerals and ores – mostly coal – dropped 37.8 percent last year from about $1.1 billion in 2014 to $705.8 million last year. Mineral exports were more than $2.2 billion in 2011.

“Alabama’s exports remained vital last year in spite of turbulence in the global economy, which includes a collapse in oil prices and a slowdown in China,” Alabama Commerce Secretary Greg Canfield said in a statement.

Transportation equipment remains the state’s top export - $9.3 billion in 2015 for an increase of 7.5 percent. It has been the top category since 1998. Back in 2012, transportation equipment accounted for $5.4 billion of the state’s total exports. Motor vehicle exports increased 18 percent last year to $1.2 billion.

Alabama auto exports accounted for more than $7 billion in 2015, which was a record-setting amount and was a healthy increase of 5.8 percent from 2014. China has become the state’s top export market for vehicles after increasing 9 percent to $2 billion last year. The top 10 export markets (in order) are China, Canada, Germany, Mexico, United Kingdom, Australia, United Arab Emirates, South Africa, Korea and Chile.

“Alabama’s auto industry has become an exporting powerhouse with vehicles produced in the state finding markets around the world,” Canfield told al.com. “This creates jobs in our state and solidifies the position of the Alabama auto assembly plants in a global business.”

Alabama now ranks third in automobile shipments overseas behind Michigan and South Carolina.

The Hyundai Motor Manufacturing Alabama facility in Montgomery produced nearly 38,000 vehicles that were sent to Canada last year. About 20,500 Elantras were exported to Canada from the plant along with about 17,300 Sonatas.

“Exports of Alabama-made vehicles and parts continue to expand, underscoring the state’s status as a major player in this international industry, while there were also meaningful gains in exports of aerospace parts, machinery and paper,” Canfield said.

Aerospace parts exports grew 16 percent last year to $868 million; machinery exports last year rose 24.8 percent to top $1 billion; and paper shipments were up 19 percent to about $805.4 million.

“Alabama companies operating in a global economy through exports continue to be one of the state’s most powerful growth engines,” Alabama Gov. Robert Bentley said in a statement. “By trading Alabama-made products overseas, these companies support Alabama communities and create well-paying jobs for citizens across our state. We want to continue helping Alabama companies reach new customers around the globe because their exporting activities pay significant benefits here at home.”

Alabama exports have topped $19 billion the past four years with a record $19.6 billion in 2012.