International Trade and Diplomacy

Exports Driving Utah Growth

Utah’s export growth is among the strongest in the nation. Since 2004, Utah’s GDP has grown over 18%.1 Much of this growth is fueled by the enormous increase in Utah’s exports. In 2004 Utah companies exported about $4.7 billion in merchandise. 2007 saw an incredible increase in trade with over $7.8 billion in exports. January 2008 was the largest export month in Utah’s history, accounting for $1.02 billion to countries throughout the world.2

Focus Countries

In 2005 Governor Jon Huntsman designated four countries for trade missions. They are China, India, Mexico and Canada. These countries represent some of the state’s strongest trade partners, as well as some of the fastest expanding markets in the world. China and India are among the fastest growing economies and provide excellent opportunities for Utah companies to grow. Canada and Mexico have proven track records of success for Utah businesses. By focusing on these key regions, ITDO was able to assist Utah industries achieve tremendous export growth. Electronics exports accounted for 45% of the growth to China, while precious metals were responsible for nearly all growth to India.3

Utah Job Creation

Since 2005 exports have helped fuel Utah’s job creation, especially for small and medium-sized businesses. A total of 2,236 companies exported goods from Utah locations in 2006. Of those 1,906 (85 percent) were small and medium-sized enterprises (SMEs), with fewer than 500 employees. Export-supported jobs linked to manufacturing account for an estimated 4.1 percent of Utah’s total private-sector employment. Over one-seventh (14.8 percent) of all manufacturing workers in Utah depend on exports for their jobs.4 The Utah International Trade Office estimates that one job is created for every incremental $150,000 exported. As export figures grow, companies continue to expand and increase staff in order to manageably sustain development.

2007 At a Glance

Overall Merchandise Export Growth (’04-’07): 65.6% Utah GDP Growth (’04-’07): 18.8% Focus Country Growth (’04-’07): • China 214% • India 1,765% • Canada 9% • Mexico 83% Jobs Created (’04-’07): 20,621 Trade Delegation Visits: 36 Diplomatic Visits: 45 Companies Assisted: 317 Educational Seminars: 33 Trade Missions: 4 • China, Japan, Korea (Nov ’07) • Mexico (Jun ’07) • India (Oct ’07) • Europe (Jun ’08)

Incremental Jobs Created (’04-’07): 20,621

1U.S. Census Bureau 2 WISERTrade Database 3 WISERTrade Database 4U.S. Department of Commerce, International Trade Administration

INTERNATIONAL TRADE AND DIPLOMACY

Company Feedback

India Trade Mission

“Participating in the trade mission was a wonderful opportunity to define strategic alliances with Indian institutions of higher education as well as partnerships with entrepreneurs and small business owners. Without the coordinated effort of the ITDO at GOED, Salt Lake Community College would have missed identifying opportunities with groups such as WIT or would have had to expend additional institutional resources to identify a successful partnership.” —Karen Gunn, Dean, School of Professional and Economic Development, Salt Lake Community College

Governor Huntsman signs educational agreements during the 2008 India trade mission.

Korea Trade Mission

“All the meetings and networking activities were relevant and critical to our evaluation of the market...as a result we’ve just signed an agreement with a strong Korean partner we feel will help us grow our business.” —Mark Christensen, VP of Marketing, Corda Technologies, Lindon

Mexico Trade Mission

“[ITDO] did a remarkable job for us. They opened the door for us to meet wit the right companies. I am telling other companies that they too can do this. When is the next trip?” —Ruben Martinez, Director of Operations, Industrial Supply, Salt Lake City