Business

Monday March 2, 2009
State-made products set record for exports
Advertiser

CHARLESTON, W.Va. -- West Virginia exported $5.6 billion worth of products and commodities last year - up an astonishing 41 percent from 2007, according to the U.S. Department of Commerce.

Tom Hindman
Barges await loading at the Quincy Dock in eastern Kanawha County. West Virginia exported $5.6 billion worth of products and commodities last year — up 41 percent from 2007.
Gov. Joe Manchin mentioned the record exports in his State of the State speech. "We're shipping more West Virginia-made products around the globe than ever," he said, noting that the state's 41 percent increase far outpaced the national growth rate of 12 percent.

Most of last year's increase was coal, said Debra Martin, the state development office's manager of international trade. West Virginia exported coal valued at $2.2 billion last year, up 155 percent from the $910 million worth of coal exported in 2007. "Coal is easily at an all-time high," she said.

Companies around the world paid record prices last year for the state's metallurgical coal, which is used in steelmaking.

The state's top five markets for coal last year, in order of sales volume: India, France, Brazil, Egypt and the United Kingdom.

"Coal accounts for 39 percent of our exports, which is a big chunk but is not the majority by any stretch," Martin said. Plastics account for another 17 percent, or $981 million; machinery is 12 percent or $664 million; and chemical products (organic chemicals plus miscellaneous chemical products) are 6 percent or $355 million. Coal is dominant but our economy is pretty diverse."

Coal wasn't the only export star last year. Machinery exports were up 32 percent, to $664 million. The state's top markets were Canada, Germany, Australia, South Africa and China. "Note that Australia, South Africa and China are top mining countries - not only coal mining but all kinds of mineral mining," Martin said.

The Commerce Department's coding makes it almost impossible to tell exactly what kinds of machinery were exported although "when I break it down it tells me piston engines, internal combustion," Martin said. "The second category is engine parts. The third category is gas turbines. The fourth is 'other moving machines.' When I break that down I see coal/rock cutters; other moving and grading machines; mineral-sorting equipment; weighing and weights; pumps."

It is difficult to say how many West Virginia jobs rely on exports. The U.S. Department of Commerce has estimated that every $1 billion in exports creates 15,000 jobs.

Martin said the number of jobs created may vary widely by industry. "We don't know if $1 billion of coal exports relates to the same number of jobs as $1 billion of a manufactured product would," she said.

Also, the numbers are imperfect, Martin said. That's because they're based on the paperwork companies fill out when they sell their product. "A company might be selling their product to a buyer in Virginia and that company exports it," Martin said. "That doesn't count as a West Virginia export, even though it is.

"We find that what often happens with wood products companies is, instead of having an agent in China or Vietnam, the agent will be in the United States. The agent buys the West Virginia product, consolidates it in a port and then exports it. That doesn't get counted as a West Virginia export either. There's no way to know how much is under- and over-reported."

Plastics, which were the state's top export in 2007, were down slightly to $981 million last year. Chemicals were up 6 percent. Aluminum was down 8 percent, to $162 million.

NOTICE TO ALL USERS:
We value your comments, but we're changing the way we allow comments to be posted on our site. Rather than allowing comments to flow onto the site unfiltered, we are going to check the comments first for approval. So, readers who use the comments function may experience a lag before actually seeing the comment on our site. Personal attacks, remarks in poor taste or those overly critical will not be published. We believe the result will be a more thoughtful, civil website.
Posted By: Grouse (5:58pm 03-02-2009)
Report Abuse
Yes, Wv exported millions in coal. Trouble is, the cost to the envronment is twice that not to mention the human cost. The state would have been better of if it didn't have any coal. Think what our streams, mountains, and forests would be like.
Posted By: morning sick... (5:43am 03-02-2009)
Report Abuse
Kind of a misleading headline don't you think? The only real export this state has is coal and the state or anyone else did'nt make it. It laready here we just dug it up.
Advertiser
Sandy Thompson: Independent Avon Representative and Unit Leader
AVON is fun and exciting. Sandy loves helping new representatives get their businesses started. T...