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 the latest figures from the International Trade Administration , California used to be the leading state in foreign goods 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
Bright spots for California trade: agriculture, food products, chemicals and – more recently – transportation.
Bolstered by a weak dollar and strong prices for farm goods, international trade helped maintain momentum for the California economy for much of 2008, until the recession spread worldwide. The bad news is that the slump in world trade from the current recession was only just beginning to be felt by the fourth quarter of 2008; the 2009 figures should bode much worse for California.