CFCE Blog

California's Merchandise Trade Weakens

By Loren Kaye
Posted 4/29/2008

A consequence of California’s changing industry mix - the decades-long shift from manufacturing and production to service jobs - is in our international trade profile.  Traded goods bring the most value to an economy – and usually create the best jobs.  According to figures from the International Trade Administration, California used to be the leading state in international trade – but no longer.

 

Until the collapse of the technology bubble in 2001, California was the nation’s leading merchandise exporter.  Since then, Texas has claimed bragging rights – and not just in the petrochemical industries.  California still leads the country in computer exports, but Texas is now the leading exporter of machinery, electrical equipment, plastics and fabricated metals.  And it is gaining fast in high tech exports.

 

California’s overall share of US exports has dropped from over 15 percent in 2000 to 11 percent last year.  During that same period, Texas’ share has increased to nearly 15 percent of the nation’s exports.  No other state has suffered the absolute decline in market share that California has.

 

Computer exports had been California’s golden goose.  According to the Public Policy Institute of California, manufactured information technology products in 2000 accounted for more than half of all California’s goods exports and almost 44 percent of the output of California IT manufacturers.  Today, computers account for less than a third of all goods exports from the state, and our market share of national computer exports has dropped from more than 30 percent in 2000 to 23 percent today.

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