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REPORT: HOOSIER EXPORTS INCREASE AS NATIONAL NUMBERS FALL
INDIANAPOLIS -- Indiana experienced a record-breaking period of international exports in the first quarter of 1998, with sales totaling $3.47 billion. This is an all-time high quarter for Hoosier exports and represents a $136 million increase since the final quarter of 1997. Over the course of a year, this would equate to a 16.4 percent rise in exports.
The figures are from a report prepared by the Global Business Information Network (GBIN) at Indiana University's Kelley School of Business.
"Indiana's strong economy is reflected in these first quarter figures," said Gov. Frank O'Bannon. "Our businesses are taking advantage of growing market opportunities around the world. That's good business sense and good Hoosier common sense."
Lt. Gov. Joe Kernan, who leads the state's economic development efforts, said this success is even more impressive considering what is happening at the national level. For the first quarter of 1998, U.S. exports decreased by more than 16 percent. Much of that decrease was attributable to weakened Asian economies.
Although Indiana's Asian exports decreased as a whole, the state still realized gains in Taiwan, Hong Kong and Japan. Its overall performance was strengthened, however, by its balance and diversity of trade.
"We are better able to weather the problems in Asia because our companies continue to ship more products to more destinations," said Kernan.
"The Asian crisis affected Indiana," said Larry Davidson, GBIN director and IU professor of business economics and public policy, "but not as noticeably as it affected the rest of the country. Whatever losses Indiana suffered in some Asian markets, it was able to combat by impressive increases in other markets."
Exports to Canada -- the largest buyer of Indiana goods -- rose by $209 million over the first quarter. Indiana also realized large increases in Germany, Austria, Belgium and the United Kingdom, which resulted in European exports increasing by $54 million. Exports to Mexico dropped, but remained higher than they were a year ago.
Indiana's largest increase came through the export of transportation equipment, which rose by $99 million in the first quarter. Other large increases included fabricated metals, sophisticated instruments, chemicals and agricultural crops.
"This report serves as a snapshot of the current international trade situation," said Kernan. "That picture is a good one for Hoosiers. Still, this story is best told when we look at it over a longer period of time."
Since 1988, Indiana has averaged a 19.5 percent yearly growth in exports, while the national growth has averaged 13.3 percent. Last year, Indiana's aggregate exports totaled $13.1 billion, marking a 9.1 percent increase from the previous year. That increase accounted for 11,000 new jobs for Hoosiers in the international trade industry.
For more information on this study and Indiana's exports, call Kevin Waltman at the International Trade Division of the Indiana Department of Commerce, 317-232-2464.
GBIN serves as an information center where business people, scholars and other internationalists can obtain quick and reliable answers to questions on global business issues. For more information on GBIN and its services, call 812-855-5463.
(George Vlahakis, Office of Communications and Marketing, 812-855-0846, gvlahaki@indiana.edu)