Exports in Missouri could top record

DVD cases made in Scott City can be found in Florida, New Jersey -- even Canada. Railcar parts assembled in Jackson are shipped to states across the country and into the southern reaches of Mexico. And custom fabric products produced in Cape Girardeau sit on store racks in Australia and in the Caribbean.

Just because a product is manufactured in Missouri doesn't mean it stays here. In fact, many area plant managers say if they could only sell their goods here in the Show Me State, they'd probably be forced to shut their doors.

"That would severely limit our ability to do business," said Mike Edwards, vice president of RM Coco, the Cape Girardeau custom fabrics manufacturer that does 90 percent of its business outside the state.

Selling outside the state -- and beyond the country's borders -- is an increasingly good way to do business. While numbers on out-of-state commerce are difficult to track, Missouri exports outside the United States could set a new record this year.

Missouri exports through the second quarter of 2006 were up by nearly 19 percent compared to the same period in 2005, according to the World Institute for Strategic Economic Research. Through June, exports by Missouri companies topped $6 billion, compared to just over $5 billion after the second quarter 2005, an 18.6 percent increase. This is particularly good news for the state's businesses, economic development officials said, because Missouri set a state record for exports in 2005 with $10.5 billion in total global sales. Second quarter 2006 figures put the state on track to top that mark this year.

Twelve Missouri product categories topped $100 million in export sales in the second quarter, including transportation equipment, chemicals, machinery, food, electrical equipment, computers, fabricated metal products, waste and scrap, minerals and ores, primary metal manufacturing, plastics and rubber products and agricultural products.

"It's not too surprising," said Dr. Bruce Domazlicky, director of Southeast Missouri State University's Center for Economic Research. "I know that nationwide that has been the case, that exports are growing faster than had been expected."

Domazlicky said countries like China, where economic growth has picked up as incomes rise, tend to import more goods. "Naturally some of those are going to be from us," he said.

Also, the value of the U.S. dollar has leveled off after being in decline for awhile, the economist said, meaning U.S. goods are cheaper in terms of other currencies.

John Mehner, Cape Girardeau Chamber of Commerce president and CEO, said Southeast Missouri participates in an increasingly global marketplace. "It's just expanding your markets," Mehner said. "When you deal with the world instead of just the U.S. it makes you more recession proof, stronger and all that."

Many of the big companies in Southeast Missouri -- Procter & Gamble, BioKyowa, Dana Corp. and Buzzi Unicem USA, formerly Lone Star Industries -- do business out of state and abroad. But several smaller companies do, too.

American Railcar, with 110 employees on Lenco Avenue in Jackson, makes train tank car valves and other railcar parts. Plant manager Brian Blankenship said 10 percent of the company's business is outside the U.S. in Canada and Mexico, and 90 percent of the product is sent outside Missouri.

He attributes part of the increased business to higher gas prices, which is making rail transportation more appealing. "More people are looking to rail," he said. "It's a very inexpensive alternative to transportation as long as the customer has the time. And the state of Missouri is very conducive for industry."

At Rubbermaid in Jackson, 3 to 4 percent of the wire shelving product goes outside the U.S to Australia and Mexico, said director of operations Bill Cofield. "Every state in the country, including Hawaii and Alaska, has our products," he said.

Blair Packaging in Scott City ships 70 percent of the CD and DVD cases it makes to other states like New Jersey, Illinois, Florida and Texas, said Joe Bullock, director of marketing. Less than 5 percent goes outside the country to Canada.

"But that's a 5 percent we don't want to give up," Bullock said. "There's a lot of manufacturing going on in this state. It doesn't surprise me that customers want our product across the country and in other countries."

And that the vast majority of red clay pots made at Ceramo Co. in Jackson go outside Missouri, though none leaves the country, said company president Vernon Kasten Jr. He estimates that 95 percent of the company's product is shipped outside the state. "You walk into a Lowe's or Home Depot in any state, and you'll probably see one of our products," he said.

smoyers@semissourian.com

335-6611, extension 137

Top exporters

Twelve Missouri product categories topped $100 million in export sales in the second quarter 2006. Here's a breakdown:

* transportation equipment -- nearly $2.2 billion

* chemicals -- $998.5 million

* machinery -- $567.5 million

* food and kindred products -- $345 million

* electrical equipment, appliances and components -- $286.1 million

* computers and electronic products -- $252.4 million

* fabricated metal products -- $207 million

* waste and scrap -- $158.5 million

* minerals and ores -- $143 million

* primary metal manufacturing -- $139.9 million

* plastics and rubber products -- $115.1 million

* agricultural products -- $106.7 million

Source: World Institute for Strategic Economic Research